CHAPTER-1

INTRODUCTION TO
STUDY

1.1. Introduction
Good marketing is no accident, but a result of careful planning and
execution. Marketing practices are continually being refined and reformed in
virtually all industries to increase the chances of success. Marketing
excellence is rare and difficult to achieve. Marketing is both art and
science there is constant tension between the formulated side of
marketing and the creative side.
India with a population of more the 105 crore is potentially one of the largest
consumer markets in the world with urbanization and development of
economy, tastes and interests of the people changes according to the advance
nation.
Beverage industry is one of the fast growing industries in India. It can be
divided into two sections i.e. carbonated and non-carbonated. The
carbonated drinks can be further classified into Cola, Lemon, Orange,
Cloudy-Lemon segments etc.
Marketing includes all the activities like promotion, distribution, advertising
etc. to fulfill the demands of all segments of consumers. Marketing is also
convert social needs into profitable opportunities. So this topic provides all
the essentials to the theoretical knowledge with practical knowledge and to
inculcate the efficiency. It is also a requirement for the company to improve
its service and product quality to achieve the ultimate goal.
Marketing is about winning this new environment. It is about understanding
what consumers wants a supplying its more efficiency and more
conveniently.
India where more than 50% of the total population exists below poverty line
the consumer cant afford such high price for soft drinks. As a result the
trading activities of the soft drinks industry are concentrated in and around

big cities and town where the purchasing power of population is considered
comparatively high.
Soft drinks industries in India has annual sale of about 5000crores, with per
capita consumption of soft drinks at a low of eight bottles per annum is due
to price factor.
So, marketing is both philosophy and technology. It is technology because it
suggests ways and means for effective production and distribution of goods
and services in the market to give maximum satisfaction to the consumer.
In this regard the marketing management with have to apply to marketing
technology in the conceptual philosophy of a system. It is the process of
system analysis in the marketing management for effective research and can
be defined, systematic objective and exhaustive study of tasks relevant to
any problem in the field of marketing.

1.2. OBJECTIVE OF STUDY

Our main objective of the study on this project was to To compare the
stock keeping unit (SKU) of PepsiCo with its competitor Coco-cola.
Following are the some of the main objective of our report:
To test the effectiveness of the distribution network.
Comparative study of PepsiCo product availabilities in the market
with its main competitors.
To find out the market share of the different competing Brands in
the Beverage industry.
To know the importance of availability & visibility of product and
chiller.
To check the capacity of chiller of Pepsi and its competitors.
To check the Distribution of SKUs of PepsiCo and its competitors.
Selling and Monitor distribution of Beverages.
To provide the useful information to the PepsiCo regarding its
competitors.
Conduct Every Dealer Survey of the assigned Market.
To know other promotional measures that would be effective in
increase share.
To know the suggestive steps that would be beneficial to PepsiCo
in order to improve its distribution network.
Marketing of PepsiCo Products.
Looking to the problem of retailers regarding PepsiCo products

1.3. JOB ASSIGNED

To visit every dealers and retailers store where there is dealing of
soft drinks.
To know how many carats of Pepsi and Coke are been used by
each dealers and retailers.
To know SKUs of each dealers and retailers.
To take order of product from retailer.
To check the capacity of chiller of Pepsi and its competitors.
To know type and size of VISI Coolers used by retailers and
dealers.
To know their grievances, if any.

KEY RESPONSIBILITIES
Key responsibility is to take care of my account under my assigned
area.
Persuade retailer to sell PepsiCo product.
Convince retailer to transform the Visi- cooler as per his
requirement.
To have proper check on their SKU.
To take orders of soft drinks on behalf of PepsiCo.
Delivering the order on time.
Proper distribution of product.

1.4. Importance of study

Cold drinks were started with the idea of quenching the thirst of the
persons traveling. It was also felt that reliable good water was not
available everywhere. So people would really on their packed bottle and
with this idea its makers made these drinks available mostly, at those
places where water was not available i.e. on highways and long distance
trains.
But slowly and slowly with its beautiful taste these become very popular
and now they are available not only in the market and street corners, but
also people have started keeping it in their house.
The credit of popularizing the soft drink goes to Coca Cola. This was the
drink which is liked by all ladies, gents and children. Now days soft
drinks are quenching thirst looks more often; they are taken due to habits.
Gold Sport is considered as the first branded soft drinks, all empowering
Coca Cola faced competitions and its euphoric image built up in the
western countries helped it get ready clientele and clamor. Parle Export
Pvt. Ltd. Is regarded as the first Indian Company introducing Limca a
leman drink complementary to it this has also introduced Cola Pep one
which was withdrawn in the face of tough competition from Coca Cola.
When Coca Cola bid a Farwell in 1977, Indian market was open for
various new forward publishing different brands in the markets. This is
Indian market where there was no competition and high voltage
advertising was on each one was trying their best to become number one
company with A class product in the field of Soft Drink business. Now
after a long gap government of India had given permission to Coca Cola,
which joined with Parle to do business in India. They are trying their best
to regain prestige which it had before. The much rival of Parle is Pepsi an

American concern. It started business on the Indian soil just a few years
ago.
Now Pepsi is going all out to prove that they are the best.

1.5. Scope
The geographical scope of my study is confined to Patna.
The bulls eye is to have a cognizance of the level of satisfaction
regarding the distribution network of PepsiCo product to the depot
and retailer.

Limitations

Retailers are reluctant to provide the information regarding the

sales volume and stock.
Some retailers in were not co-operative in their approach.
Retailers are not fully aware of the new schemes offered by the
Company.
Lack of time duration for the proper administration of research as
time duration of 60 days was not sufficient for the research.
Lack of financial resources as the researcher has to find his study
by his own financial sources.
Insufficient research experience.
Indifferent behavior of the retailers exhibited at times.

CHAPTER-2

OVERVIEW OF
INDUSTRY

2.1. History of PepsiCo

PepsiCo is a USA based company having its headquarters at New York
with the net worth of $30-40 million. The average sales of the company
are approx. 90 million bottles per month. Pepsi made it first international
move in Russia in 1959. During the Khrushchev era, within 32 years
Pepsi emerged as the biggest competitor for Coca Cola. Pepsi is available
in 155 countries.
In any soft drink, on the globe Pepsi food is one of the largest soft drink
companies in the world with its headquarters in New York. It was
invented by Pharmacist Culab D. Baradham in 1898 to cure the disease
Dyspepsia. It is from this word that its name was related to Pepsi. Soon
it entered the American market as soft drink, which at that time mostly
dominated by Coca Cola, but soon Pepsi able to dominate the Cola
market, and there after it never looked back. Pepsi and Coca Cola are
engaged in ferocious cola war that has taken the whole world by storm.
Pepsi entered the Indian soft drink in Kanpur in 1988 and began its
production in May 1990 and soon it was giving the local contenders run
for their money in soft drink market. It comes out with dazzling
marketing innovation that rocked the cola market, like selling the product
through function Pepsi outlets. Its advertisement agency was Hindustan
Thomson Association (HTA). Its advertisement budget for 1995-1996
was valued at Rs. 24 crores which is likely to be increased manifold in
coming years.
Pepsi food is one of the largest and best foreign investments in India. Till
today it has invested Rs. 500 crores in India to develop the local market.
Pepsi has distributed exclusive franchises in India to bottle its total
product. There are 28 bottling plant of Pepsi in India. Some are directly
controlled by Pepsi and rest is under various franchisees.

Pepsi stands 51st position among the fortune 500 companies of the world.
Its total capital is approx. $3000 crores and total sales annually is worth
$37 crores. Its total profit in the year 1996-97 was worth Rs. 458 crores
approx. The total number of employees engaged in the business is 45.25
lakhs globally.

2.2. LUMBINI BEVERAGE PVT. LTD.

Lumbini Beverages Pvt. Ltd is franchisee of PepsiCo. India. Lumbini
Beverages Pvt. Ltd, a rupees 25crores unit was promoted by the family of
KHILANI in the year 1996 with the proper infrastructure approved by
PepsiCo Headquarter and the unit went into production, subsequent and
marketing operation from 1997. Mr. Ravi Khilani is MD of this company
the plant has 57 production staff 30 executives and 32 team members
within marketing and seller functions during the pick session i.e.
Between April- July, the no. of production staff at times is increased to
take care of increased production functions.
The unit has capacity of bottling 400-600 bottles per minute or3000
crates of 24 bottles on a daily basis, i.e. when production schedule is on
through out the day with three shift production system. The plant follows
international quality audit standard for the purpose of maintaining quality
controls in the quality of the product because the quality control function,
by far is the most important criteria for purpose of competing in terms of
quality in the contest of the market competition.
This bottling unit at Hajipur has created a source of employment for a
large no. of population residing in the Bihar and has also come out with
quality/treated water resources, which is now being thought of diverting
in to nearby agriculture sector as an ongoing source to facilitate of
management. This unit in the year to come should one of the most

10

important industrial zones in this part of the country and this reality
manufacturing and marketing unit should be a set of attraction as far as
commercial activity are concerned.

Profile of LBPL
Company land area

: 12 acres

Location and authority

: EPIP, Industrial Area, Hajipur

Name of Managing Director

: Mr. Charan Khilani

Name of the Directors

: Mr. Ravi Khilani & Mr.Manoj Khilani

Name of Executive Director

: Mr.Ashok Salaria

Name of CEO

: Mr. G.P Singh

Name of FM

: Mr. V.Mahesh

Name of HR manager

: Mr. Bhupendra singh

Industrial license no.

: Regn. No. - H 12475(c)

Factory license no. 66750/VLI
Date: 16.08.1997
F.P.O. License no. -10607/97

Capacity

: 1500 bottles per minute

Nature of product

: Soft drinks, Pepsi, Mirinda, Soda,

Slice, Aquafina

No. of employees

: 200 +150 (max) seasonal labors

Control board

: No. 1877. Date 07.04.1997

11

2.3. MISSION AND VISION OF PEPSICO

PepsiCos mission is to be the world premier consumer Products
Company focused on convenient food 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 everythings wed, we strive for
honesty, fairness ail,
At PepsiCo, we believe that as a corporate citizen, we have a
responsibility to contribute to the quality of life in our communities. This
philosophy is expressed in our sustainability vision which states: PepsiCos responsibility is to continually improve all aspects of the
world in us operate environmental, social, and economicalcreating a
better tomorrow than today.
Our vision is put into action through programs and focus on
environmental stewardship, activities to benefit society, and a
commitment to build shareholder value by making PepsiCo a truly
sustainable Company.

12

2.4. OVERVIEW OF THE INDUSTRY

2.4.1. History of Pepsi-Cola industry
The Pepsi-Cola story itself begins with a drugstore in
New Bern, North Carolina, and a pharmacist named
Caleb Bradham. Bradham's aim was to create a
fountain drink that was both delicious and healthful in
aiding digestion and boosting energy. It would be free
of the impurities found in many bottled health tonics, and it would contain
none of the stronger narcotics often added to popular fountain drinks.
As most pharmacies in 1896, Bradham's drugstore housed soda fountain
where the small-town clientele would meet to socialize.

Bradham's

establishment even featured a kind of primitive jukebox, which for a nickel

would entertain the listener with the latest musical selections rendered by
violin or piano or both It was at such convivial gatherings that Bradham
would offer his latest concoction. Over time, one of his recipes became
known as Brad's Drink. A member of the press declared,
"It has sparkle and just enough acidity to make it
pleasant." Soon its popularity would exceed the
boundaries of New Bern. The cellar of Bradham's
drugstore served as the original site of Pepsi-Cola syrup
manufacturing. Electing to start his new business on a
small, manageable scale, Bradham based his operation on familiar territory.
Ingredients were hauled downstairs to cramped quarters where they were
mixed together and then cooked in a large kettle. The syrup was
subsequently poured into one-gallon jugs and five-gallon kegs to be shipped
to customers. By 1902, the demand from surrounding drugstores increased
so dramatically it dawned on Bradham that Pepsi-Cola was something
special. On December 24, 1902, he filed incorporation papers with the state

13

of North Carolina; in these, he indicated his plans for corporate branches in

Virginia, Maryland, Pennsylvania, and New York.

PepsiCo, Inc. is

currently one of the most successful consumer products company in the

world with annual revenues exceeding $30 billion and has more than
480,000 employees.

PepsiCo, Inc. began as a successor to a company

incorporated in 1931, known as Loft Inc. Once known as PepsiCo Cola,

the company expanded its business and adopted its current name, PepsiCo,
after a merger with Frito-Lay in 1965. This merger dramatically increased
PepsiCo's market potential and set the foundation for the company's
tremendous growth. PepsiCos products are recognized and are most
respected all around the globe. Currently, PepsiCo divisions operate in three
major US and international businesses: beverages, snack foods, and
restaurants. In each of these businesses, PepsiCo has attained a leadership
position as being the world leader in soft drink bottling g, the world largest
snack chip producer, and the world largest franchised and company operated
restaurant system. The corporations increasing success has been based on
high standards of performance, marketing strategies, competitiveness,
determination, commitment, and the personal and professional integrity of
their people, products and business practices. PepsiCo's overall mission is to
increase the value of our shareholders' investments through sales growth,
investments and financial activities. PepsiCo believes their success depends
upon the quality and value of their products by providing a safe, whole
some, economically efficient and a healthy environment for their customers;
and by providing a fair return to their investors while maintaining the
highest standards of integrity.

14

2.4.2. PepsiCo headquarter

PepsiCo world headquarters is located in purchase, New York,
approximately 45 minutes from New York City. Edward Durrell stone, one
of Americas 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 august Rodin,
henrys Laurens, Henry Moore, Alexander Calder, Alberta Giacometti,
Renaldo pomander and Claes Oldenburg focus the collection of works on
major twentieth century art, and features works. The gardens originally were
designed by the world famous garden planner, Russell page, and have been
extended by Franois goffinet1. The grounds are open to the public, and a
visitor's booth is in operation during the spring and summer.1990 saw the
coming of the multinational company Pepsi entering the Indian market. 11
years after the exit of coca cola. It had name, fame and edge of being one of
the best in the game and it also offered stiff competition to parley and coke.
Pepsi Cola Company founded by ClebBadham in 1890 at north Crolina in
USA now it is ked 86th (1998) in the world with the asset of around $25000
million, having its head quarter at Atlanta. Its CEO is roger enrico and Pepsi
co. India holding chairman is Mr. Rajiv Baksi. Pepsi co. Indias is at
gurgaon. Presently is operating in 196 countries. In India it has 34 bottling
plant of them 8 are cobo and 26 are fobo of which one in Trity Drinks Pvt
Ltd.

15

2.4.3. SOFT DRINK INDUSTRIES IN INDIA

A soft drink is a non-alcoholic beverage. It is artificially flavored and
contains no fruit or pulp. India with population of more than 100 crores is
potentially one of the largest consumer markets in the world after China.
The consumer market can be defined as the market for products and services
that are purchased by individuals as households goods for their personal
consumption. Soft drink is a typical consumer product purchased by
individuals to quench thirst and secondly for refreshment. Searching for the
point of Indian soft drinks we first document on Gold Spot, this was the first
brand soft drink in India. It was introduced by PARLE during later part of
40s.
Cola giant, Coca-Cola was the first foreign soft drink to be introduced in
India in 1965, Coca-Cola make a very good beginning and dominated the
whole scheme right from the word go. It (Coca-Cola) faced no competition
at that time. COCA COLA entered India in the year 1993 in collaboration
with PARLE INDIA LTD.
The marketing people did not even receive to publicize Coca-Cola for it sold
first like probability not-cakes. This extraordinary success of soft drinks can
be attributed to the following factors: Absence of contemporary competitive brand.
Euphoric image built up in the Western countries proceeded the entry
into Indian Market; and
Indians are very found by nature of foreign goods, services etc. due to
prolonged foreign rules.
Parle Exports (P) Ltd, later in 1970 introduced Limca, Lemony Soft drinks.
Before Limca introduce, they had tentatively introduced Cola, Pepino, which
they had to soon withdraw in the face of battering confrontation with CocaCola.

16

Three of four groups of Indians companies who had the required production
capacity started their own brands of Cola, Lemon, Orange, but failed to
achieve their goal on a national basis. India always has love and hate
relationship with MNCs which gave a significant opportunities to soft drink
industries in India when Coca-Cola decided to windup its operation in 1977
rather than bowing to the Indian government insisting on: Dilution of equity, as the government felt that lots of foreign currency
was being wasted.
Manufacturing of the top-secret concentration in India.
Disclose of the chemical composition of the essence.
This left a large vacuum in the popular soft drink market, and a vista was
opened to any company with the requisite, technical, marketing and
organizational skills.
The exit of Coca-Cola from India in 1977 accelerated the growth of several
Indian Soft Drink. New soft drink in the form of Tetra pack entered the
market among Frooti, Jump-In and Treetop were the prominent once. Till
1977 their equipped bottling plants and the distribution network a longing to
be of no use. It took them one year to develop new formula to survive and
gradually came up with Campa, Lemon, Orange and Cola that order.
However Parle, the pioneer in the soft drinks, blazed its way to national
prominence with their product Thumps Up bearing the slogan Happy
Days Are Here Again. This particular slogan helped to win over the
loyalists or addicts to Coca-Cola, who was in the state of Cola Shock or
Cola Depression. Soon the Indian Soft drink industry started at a
phenomenal rate, and all Parle Products Gold Spot, Limca and Thumps Up
became the brand leader in their own segment.
In spite of all these, the drink market still has large gap, as claim by soft
drink manufacturers. To fill these gaps there are many soft drinks

17

concentrate and squashes flooded the market. The Indian soft markets
basically offered three flavours i.e. Orange, Lemon and Cola.

PEPSI The Indian Experience

Previously there were two ads. Tags Yehi Hai Right Choice Baby,
Nothing Official about It & Yeh Dil mange More, which immediately
ring a Bell its to be a Pepsi. But today this ad. Tag has been changed and
now its "Yeh hai Youngistaan MeriJaan!"
Pepsi is a short span of its operations in India has found a place in hearts and
minds of the Indian Consumers. The success has primarily been due to the
innovative and passionate Indian team which has been built over the years.
Pepsi is a trendsetter managed and run by Indians, where important
decisions are taken locally.
Pepsi started its operations in India in 1989 and since Pepsi Co. has set up a
fully integrated operation India viz.
development,

marketing,

distribution

manufacturing, research and

and

franchising

covering

fruit/vegetable processing, export, snack foods and beverages. In 1993 Pepsi

Co. set up a hold company to further accelerate growth the future through
new initiatives and joint ventures. Pepsi Co. fully committed to India and the
national objective of development of technology and accelerating exports
and employment. It has brought in over $500 million in foreign exchange as
well as technology, which is used for its global network by way of royalty,
know-how of dividends.
Pepsi Co. has a turnover $25 billion, half of which comes from beverages
and the other half from the snacks foods divisions. The beverages arm of the
Pepsi Co. is Pepsi Cola Company and the snacks foods company is called
Frito Lay Inc. The year 1998 is the centennial year of Pepsi.

18

Beverages:
Pepsi has set up a concentrate plant in 1989 at Channo, District Sangpur,
Punjab, with an investment of $ 5 million the state of the art Plant houses a
world class laboratory where soft drinks from all over the world are tested.
This concentrate plant supplies Pepsi, 7Up, Team, Miranda, Orange,
Apple & Lemon flavors to all the Pepsi Bottling plant in South Asia.
Pepsi has 40 Bottling plant in India, out of which 16 are company owned
and 24 are owned by Indian franchisees, Pepsi Co. has invested heavily on
up gradation of these bottling plants and has put 5 green fields projects in
backward areas such as Jainpur and Bazpur in U.P. Bharuch in Gujarat,
Sonarpur in West Bengal and Naclamangala in Karnataka.
New project are coming up in Maharastra and Tamilnadu. In addition to the
Companys own Bottling Operations (COBO), Pepsi has 24 Franchisee
Owned Bottling Units in India. These franchisee manufacturers are also
planning to install substantial additional capacities. Pepsi Co.s franchisees
are amongst the best in the Pepsi world and the 1998 two Indian Franchisees
were chosen for being the Bottler of the Year amongst all International
Bottlers.

Juices:
Pepsi Co. plans to launch juices in a bog way in India, there by helping the
farmers in fruit procurement. Pepsi Co. Agriculture Scientists has
undertaken research on Mango, Guava and Oranges and these fruits would
be the priority area for the juice launch in India. Presently Pepsi has one
juice brands Slice, which are presently mango juice brands. Pepsi Co. also
has bottling lines in most of the plants.
.

19

Marketing mix followed by Pepsi:

The tools of marketing mix are combined in such a manner that they give
maximum mileage to the product from the factory to the consumers hand.
Product
Price
Place
Promotion
Position
Probing
Perpetual Mapping
The soft drink being a FMCG has a wider and scattered market. Thus to
enable concentrated effort of marketing activities in different scattered
market, for effectively setting the entire market is broken down into the
following segments.
Route market
Home market
At work market
Route market:
Outlet in this market caters to those people who are engaged in shopping,
eating outgoing to and from work, in amusement center etc.
Home market:
Outlets in this market cater to people buying predominantly for home
consumption, either by case or loose bottles.
At work markets:
Outlets in this market cater to people working in offices, factories etc. an
attempt is always made to make soft drinks readily and conveniently
available all day long while people are actively working.

20

2.4.4. Market growth rate and demand trend

The Soft Drink industry was estimated at 7.5bn bottles in FY10. Volumes
have been growing at 14-15% pa in the last two years. Per capita
consumption in India is among the lowest in the World at 6 bottles as against
17 in Pakistan and 21 in China and Sri Lanka. Growth has slowed down in
the current year to 8%, despite the low level of per capita consumption and
the industry is expected to register sales of 8.5bn bottles in FY12.
The demand for soft drinks is highly price sensitive. A study conducted by
NCAER has shown that a 10% increase in soft drink prices, leads to a
demand reduction of over 17%. Given the cutthroat competition, price
changes by any one player induce similar price adjustment by other players
too. Sales growth of the two large players have been driven by a high level
of promotions and price wars and increasing investments being made in
expansion of the distribution infrastructure. Both the leading players are yet
to make profits. The industry has received the largest amount of Foreign
Direct Investment in the country of almost Rs5.7bn (US$1.2bn). The
industry employs more than 125,000 people directly and indirectly.
Additional investment of Rs20bn in expected over the next three years, with
a potential to create additional 95,000 jobs directly over the periods of
marketing.

21

Logo change over years

22

CHAPTER-3

PRODUCTION PROCESS

23

3.1. Production process

The process of manufacture of Aerated water (soft drink) like Pepsi brand
product is divided into mainly five parts such as
1. Water Treatment
2. Syrup Making
3. Bottle Washing
4. Filling
5. Testing of Product

1. Water Treatment: - Water treatment is very essential in soft drinks

plants as the nature and quality of water varies from place to place. To set
uniform and standard water the process of treatment is carried on. The
water taken out from bore well by the help of motor pump and pipe line
are collected in storage tank where is pre chlorinated by chlorinators and
by the help of pipe lines comes to treatment tank called coagulation tank
where to this water solutions of different strength of bleaching powder,
ferrous sulphate, hydrated lime are added through dosing pump to reduce
alkalinity, hardness, kill the bacteria .The chemical are mixed by
mechanical stripper and then the suspend mattress settle down as sludge
and clear water passes to retention tank. From this tank, the water passes
through sand filter containing fine sand and pebbles and carbon filter
containing granular carbon and finely through water polisher, micron
filter, and UV lamp to ensure clear and sanitary water for use. Further
water used in bottle washer and boiler need softening .for this purpose
,the water from storage tank ,after passing through two filter beds contain
fine sand and granular carbon respectively comes to pass through bad
resin were it is softened .this soft water is essential to use in and bottle
washer to reduce scale formation inside the machines.

24

2. Syrup Making:- For syrup making of particular brand, calculate

quantity of sugar water activated carbon and high flow super cell known
as filter aid taken in to sugar to enter steam and also filled by a motor
with agitator. Sugar syrup called raw-syrup is prepared by dissolving the
sugar with continuous stirring and heating by steam supplied by fired
boiler. This hot syrup by the help of pump is filtered through a filter press
attached with a series of quality filter paper to separate out carbon
particles. Clear hot syrup by the help of SS pipe lines passes through
water P.H.E. for cooling and the then another P.H.E. circulated by glycol
for further cooling. The chilled syrup comes to a mixing tank to use
calculating of sugar quantity by Brix Hydrometer, concentrate added and
mix thoroughly by a mechanical Stirrer fitted to the tank. This syrup is
now finished syrup ready for use. The concentrate mainly, the liquid part
are kept in a cold store, the temperature of finished syrup is also
maintained by air-conditioner. All the containers used for syrup making
are cleaned and sanitized by Soda-Bi-Crab, strong chlorine solution and
hot caustic soda solution.

3. Bottle Washing: Bottle washing is an important part in soft drink

plant. The empty durable and returnable bottle used are returned from
market in plastic carats are fed to a bottle washing machine (washer). The
machine has double end system with circular chain to carry the bottles.
Caustic soda Tri-Sodium Phosphate, Sodium Glausonate is adding to the
caustic by the supplied. The Caustic tank filled in with water heated by
steam supplied by the boiler. The empty bottles enter to the hot Caustic
tank in one end and after being cleaned by hot Caustic solution and
finally washed with water through spray jets fitted are discharged in other
end. The washed bottle proper inspections are SU 319 and SU 853 used

25

for conveyor cleaned and smooth running of chain carrying bottles. SU

260 and SU 773 is used for bottle cleaning, shining, and mold removing.

4. Filling: - Finished syrup and treated water lime are commixed to a

dosing pump which mixes syrup and water with ratio of 1:5 and the syrup
mixed with water enters to carbonator tank to mix CO 2 gas, which is
preserved in cylinder for use. The cylinders are connected through CO2
manifold to tank to use requisite quantity of gas. To control CO 2 pressure
and temperature of liquid; we used recording control (Taylor). The syrup
passed through a P.H.E. which is called itself by circulation of chilled
glycol supplied chilling F-22 gas used. The syrup being chilled easily
mixed with CO2 gas and enters to filter for bottling. The filter is
connected with filling valves and lift cylinders. The lift cylinder functions
by pressure of air supplied by an air composer. The syrup is known as
beverage in this stage is filled in the cleaned bottles which are durable in
nature and returnable by buyer filling machine (filter) by a counter
pressure of carbon dioxide gas. After beverage filled in bottle it goes to
the crowner where with the help of crown crocks the bottles are sealed
(crowned) to project the carbonation, flavor, outside contamination and
spoilage. The finished products are coded by a coding machine and
inspected properly by inspection light while passing through the conveyor
where finished product are accumulated enters to carat washer machine
and it is washed moves through the conveyor where finished product are
accumulated.
Then the products are kept in plastic carats which are durable in nature
and returnable by buyer, put on palates and sent to shipping for shipment.
The entire container in contact with syrup are properly cleaned and
sanitized by Soda-Bi-Carbonate, hot water, caustic soda solution and
strong chlorine does.

26

5. Testing of product:-Finally the finished syrup during bottle is

tested in laboratory to meet the parameters and also to get a standard and
quality products to maintain the standard and information and uniformity
in products the sugar contents and carbonation in the bottle are checked in
regular intervals by Brix-hydrometers, Refrectometer and pressure gauge.
The dead weight tested is used to calculate pressure gauge to know the
correct pressure. TA &Ph are tested by digital Ph meter. Electronic digital
balanced is used to weight chemical to conduct test in lab. The purity of
CO2 is checked by CO2 purity tester. The chlorine comparators. The
microbiology test of the product and water used in syrup making and
production are also done to ensure that the product is free from any
bacteriological contamination. To conduct the micro test hot sterilizer
incubator, autoclave, pads filter membranes, media are produced and
used.

3.2. The steps involved in the production process are First the fork lift supplies the empty bottles which are collected
from the distributions.
Then depalletising is done i.e. separating cases filled or empty
bottles from the wooden planks.
Uncasing is done by separating empty bottles from the cases/carats.
Empty bottles are then fed into the bottle washer where stream with
some chemical is used for washing.
Washed bottles are then send to the filler where premix (Composed
of syrup, treated water bulk CO2) is filled in it.
The whole concentrated is chilled with glycol before filling and
then crowning is done.

27

 The filled bottles are passed through inkjet coder for printing price
and date.
Then again the filled bottles are send for final light inspection and
from there they are collected on a table.
Lastly the filled bottles are arranged in the crates (casing) and then
palletizing is done for storing it in the warehouse.

PREPARATION OF SYRUP
Treated water + Sugar + Flavor = soft-drink

3.3. Raw material used

A soft drink bottling plant the following things as a raw materials: Sugar
Flavor
Water
Carbon di oxide
Crown cork
Glass bottle
Plastic crate.
Sugar
High purity crystal sugar is required to produce the sugar syrup for soft
drink. The main supplier of sugar for Lumbini beverages Pvt. Ltd. is M/s
KCP Ltd. chennai. The usual requirement of sugar is around 800 gm par
carat for all flavors.
Flavor
Pepsi food Ltd. is supplying all essence of flavor for Lumbini Beverages
Pvt. Ltd. from their plant Chennai, Bhavnagar (Punjab).

28

Water
The required water of Lumbini Beverages Pvt. Ltd. is being met from the
high yielding deep boring well with pumps. Adding softening plant &
DM Plant so as to meet the required quality of water then treats the raw
water taken out from these well. Water quality is being strictly adhered
through regular sampling & analysis.
Carbon dioxide
Carbon di oxide gas of required purity is being carried on from Hindustan
Gas India Ltd. and also from IOC Patna and Barauni, as per requirement
of flavor. The usual consumption of carbon di oxide is 1 kg per 10 carats
in case of Pepsi, 1 kg per 5 carats of Soda water and the rest flavor 1 kg
per 114 carats.
Crown Cork
Lumbini Beverages Pvt. Ltd. takes crown cork from Manksic Crown Ltd.,
Bhopal and Ghaziabad respectively.
Glass Bottle
Lumbini Beverages Pvt. Ltd. takes flint and green glass bottle from
Hindustan National Glass Ltd. Tapovan (Hrishikesh).
Plastic carats
Lumbini Beverages Pvt. Ltd. takes plastic crates from Neelkamal Plastic
Ltd., Nasik and Supreme Industries Ltd., Nasik

29

3.4. Product manufactured

The product manufactured by Lumbini Beverages Pvt. Ltd. are very limited
ranges as it is not independent to diversity its products. It is a unit of Pepsi
food Pvt. Ltd. which supplies concentrates for drinks. They are:-

Products

Quantity

Colour

Flavour

Pepsi

300 ml, 200ml

Brunt sugar

Cola

Mirinda

300 ml, 200ml

Sun-set

Orange

Mirinda

300 ml, 200ml

Tetrazine

Lime

Mirinda

300 ml, 200ml

Tetrazine

Mango

7 Up

300 ml, 200ml

Colorless

Lemon

Mountain Dew

300 ml, 200ml

Colorless

Lemon

Slice

300 ml

Sunset

Mango

Lehar soda

300 ml

Tetrazine

Lemon

Pet

1.5 lt.

Brunt sugar

Cola

Pet

2 lt.

Brunt sugar

Cola

Can

330 ml

Brunt sugar

Cola

Aquafina

1 lt.

Colorless

White

(Mineral Water)

30

CHAPTER-4

ORGANIZATIONAL
STRUCTURE OF L.B.P.L.

31

Organizational structure of L.B.P.L.

An ideal organizational structure facilities management and the operation of
the enterprise and it help the organization in achieving its goal. In a simple
term in various parts or component are interrelated or interconnected and
this way it is the established pattern or relationship among various function
of the organization in the established manner.
The managing director holds the top position. At present, the managing
director of Lumbini Beverages Pvt. Ltd. is Mr. Charan Khilani. But the
overall policies regarding management decisions and all executives function
or performance look after by the day to day decision and general
administration as well as management. The MD has given the power of
attorney and authority to director Mr. Ravi Khilani. Mr. Ravi Khilani who is
well advised by the MD.
The director Mr. Ravi Khilani looks after all functional departments that
sales production, account, personnel and purchase. Though the manager all
the functional departments has specially designated as head of personnel
department.
Every department has to report directly to the managing director and is
responsible to his only for working in spite of this all departments is under
the control of the director Mr. Ravi Khilani. Because he is the Chief
Executive of the company cited earlier. The overall organizational structure
can be shown as:

32

BOARD OF DIRECTOR

MANAGING DIRECTOR

EXECUTIVR DIRECTOR

FINANCE
MANAGER
MANAGER

A/C
ASSISTANT
EXECUTIVE

A/C CLERK
ASSISTANT
ASSIS.

PLANT
MANAGER

P.A.M.

SHIFT ENGINEER

WORKER /
OPERATOR

H.R.

SHIPPING
COORDINATOR

H.R.

H.R.
CLERK

HOS

T.D.M.

M.D.M

A.D.C.

General Manager

C.E.

33

The marketing manager is in charge of all marketing activities i.e. sales

promotion, publicity and advertisement, marketing study and shipping. But
the main function of the marketing is to exercise the control over the channel
of distribution.
The marketing manager is assisted by sales executives, city sales executives
and rural sales executives and sales executive of shipping department as
follows:DIRECTOR

MANAGING DIRECTOR

HEAD OF SALES

T.D.M

CITY SALES

A.S.M

EXECUTIVES

Management
Trainee

34

SALES
EXECUTIVES

SALES
SUPERVISOR

CHAPTER-5

MARKETING MIX OF
L.B.P.L.

35

Marketing mix of L.B.P.L.

1. Product: -Product means the good and service combination of the
company offered to the target market. Company changes the sizes, variety,
flavor brand name of the product after one or two year.

2. Price: -Price is the amount of money which customers have to pay to

obtain the product calculates suggested retail prices that its dealers might
charge for sources. But dealers rarely charge the full sticker price.

3. Place:-They are mostly available in all place but easily available in the
Urban Market but not frequently found in Rural Market.

4. Promotion: -Promotion means activities that communicate the merit of

the product and persuade target customers to buy it. The measurement factor
to promote the Pepsi product is to increase good transportation in rural
market. If the Pepsi is available to capture the rural market then it is certain
that it will occupy first position of soft drinks industry.

36

5.1. Products manufacture by L.B.P.L.

Brand

Pep

7up

si

Mirin Mountai Laha Slic

Nimb

Aqu

Tro

da

uj

pi

fina

cana

n dew

soda
200ml

250ml

300ml

350ml

500ml
600ml

1lit.

1.2lit.
2lit.

Tetrapack

200ml

Tetrapack
1lit.

Water
Carbonated product

Juice based
drink

37

Juice

Comparative Products

SL

Major CSD Brands

No.

Flavor

PCI

1.

Cola

Pepsi

Clear

7Up,

Lime

Dew

2.

3.
4.

Cloudy
Lime
Orange

CCI
Coca-Cola,
Thums Up
Mountain

Sprite

Mirinda-Lime

Limca

Mirinda

Fanta

In above table, I have shown product target in the market. Both

companies try to substitute each-others product in the market. When a
company doesnt fulfill the demand of market then other companies
substitute that product with their own product. In the market, offen it seen
that consumer demands a product according to his desire, but due to lack
of supply he switch over to substitute product. So, companies always
want to come out with substitute product for enlarging their market share.
Here, Thums Up and Coca-Cola is substitute for Pepsi, Sprit is
substitute for 7UP and Mountain Dew, Fanta is substitute for Mirinda
& Limca is substitute for Mirinda Lime.

38

5.2. Price list of L.B.P.L

MRP

PRICE TO
RETAIL

200 ML

10.00

212.00

200 ML

8.00

168.00

300 ML

12.00

258.00

300 ML SODA

6.00

130.00

600 ML

25.00

560.00

600 ML

27.00

606.00

600 ML

29.00

654.00

SODA 500 ML / 600 ML

12.00

264.00

1 LIT

35.00

376.00

1 LIT

38.00

420.00

2 LIT

53.00

441.00

2 LIT

59.00

491.00

2 LIT

65.00

543.00

CAN 250 ML

15.00

330.00

CAN 250 ML

18.00

402.00

CAN 330 ML

50.00

900.00

SLICE 200 ML

10.00

216.00

SLICE 250 ML

12.00

258.00

SLICE 500 ML

25.00

564.00

SLICE 500 ML

28.00

630.00

SLICE 1200 ML

55.00

612.00

SLICE TETRA 200 ML

12.00

328.00

SLICE 350 ML

22.00

498.00

NIMBOOZ 350 ML

18.00

402.00

16

152.00

PACK

CARBONATED SOFT DRINKS (CSD)

JUICE BASED DRINKS (JBD)

WATER
AQUAFINA 1 LIT

39

5.3. Distribution channel of L.B.P.L.

To make its products available at the right places at the right time in the market,
the sales department of the company pays major attention on controlling the
channels of distribution.
Single type of markets channel is maintained by the company right from its
pioneering stage. The nature of the channel is as follows:-

Company

Distributor

Deopt

Rural Distribution
Center

Interior Distribution
Center

Retailer

Consumers
At first the soft drinks supplied to the distributors directly. Retailers or owners of
any outlet cannot take the delivery from company. They have to take the products
from their respective or nearest distributor.
There are about 50 distributors and innumerable number of retail outlets operating
with the company in its entire market areas which contains total Bihar. In all the
important places of entire territory this company has its distributors.

40

These distributors selected on the basis of assurance given by them regarding the
minimum sales which they have to maintain annually. The selection is also done
on the basis of the financial position and reputation of distributor in the market. As
for example in appointing a distributor first engaged in soft drink business second
priority is given to those people who are in cigarette selling business. Depending
upon the market, each distributor in the initial stage has to deposit some security
money.
The retailers are selected by the distributor fixed criteria for the selection or
appointment or retailers from the side of the distributor. Any one like Panwala,
Cigarettewala or any other shopkeeper can have the stall for the sale of soft drinks
and they are called retailers or outlet owners. They have to give assurance to the
concerning distributor for better sale and at the time of taking delivery they have to
deposit the security i.e. the charges if the empty bottles with specified retailers
purchasing price. The charges if the empty bottles with specified retailers
purchasing price. The distributor at first has to seek the permission of sales
department for the number of cases of soft drinks required by them. After getting
the proper authority from sales department paying the requisite amount either cash
or demand draft.

Distributors:At first, soft drink is supplied to distributors. Retailers cannot take the delivery
directly from the company. They have to take it from their respective or nearest
distributors. The distributors selected on the basis of assurance given by them
regarding minimum sales, which they have to maintain annually. The selection is
also done on the financial position and reputation of distribution in the market. As
for example, first priority is given to those people who are in cigarette business.
Depending upon market, each distributor in its initial stage, deposit some security
money. This amount varies between five thousands to the thousand. The
41

distributors, at first have to seek the permission of the sales department for the
number of cases of soft required by them. After getting the proper authority from
the sales department, they take the delivery from the shipping department paying
the requisite either in cash or as demand draft.
The distributors can be dropped if they fail to achieve the required target to sales.
They can be also dropped when they dont follow the instructions given by the
company or when they charge high price or when they are engaged in black
marketing, loading etc. But the company has not dropped any of its distributors till
now.
The supply of soft drinks to the distributors depends upon the ups and downs in the
sales. But, in the initial stages, the distributors have to sell up to a minimum target
set by the company or as decided by an agreement between the company and the
distributors. In the last stages soft drink is supplied as and when demanded by the
distributors.

Retailers:The distributors select the retailers. There is no relation between the company and
its retailers. On the other hand there are no definite and fixed criteria for the
selection for appointment of retailers from the side of distributors. Any one like
Panwala, Cigarette shop or any other shopkeeper can have the stall for the
sale of soft drinks and they are called or dealers. They have to give assurance to the
concerning distributors for better sales and at the time of taking delivery they have
to deposit the security that is the change for the empty bottles with specified
purchasing price.
There is compulsion on the part of distributors to provide the transportation
facilities to their retailers IRRESPECTIVE OF SIZE OF MARKET. The
distributors and retailers are independent to sell as they want but are controlled to
some extent by the company also, as they have to give some assurance regarding
42

minimum sale. It happens so because they are given some incentives also. They are
fully independent to gear up the market, as they want.
The Retailers are categorized into three segments:
Grocers
Eatery
Convenience

5.4. Promotion
For increasing the market share and beating the competitors company provides
different schemes on different time. The schemes are of two types one for
Consumers and other for retailers.
Free Flavors sample to Retailers:Company offers few bottle flavors free to retailers on purchase of one carat of
flavor on some specific days. The free flavors scheme varies from one bottle to
many bottles.
Display Rack Scheme:This scheme is only for retailers. In this scheme company provides a Pepsi rack to
retailer. The rack is filled with different bottles of Pepsi. The retailers are
instructed that if they will maintain their racks in the same condition as it was
when it was purchased. After completion of one-month different gift packs are
distributed to the retailers.

43

CHAPTER-6

RESEARCH
METHODOLOGY

44

Research methodology
Achieving accuracy in any research requires in depth study regarding the subject.
As the prime objective of the project is to know stock keeping unit available
in market and how market share of PepsiCo in Patna in term of quantities with the
existing competitors in the market and the impact on Pepsi product. The research
methodology adopted is basically based on primary data via which the most recent
and accurate piece of first hand information could be collected. Secondary data has
been used to support primary data wherever needed.
Primary data was collected using the following technique
Questionnaire Method
Observation Method

Procedure of research methodology

Target geographic area was Patna ( NIT More, Mhendhru, Gya
Ghat, Tripolia, Nanmuniya More,Sultangang, Shar Sha Road
Finally the collected data and information was analyzed and
compiled to arrive at the conclusion.

Sources of secondary data

Used to obtain information on, PepsiCo and its competitor history, current issues,
policies, procedures etc, wherever required.
Internet
Magazines
Newspaper

45

CHAPTER-7

DATA ANALYSIS AND

FINDINGS

46

Data analysis and finding

SAMPLE SIZE

100 RETAILERS

LOCATION

Patna
( NIT More, Mhendhru, Gya Ghat,
Tripolia, Nanmuniya More,
Sultangang, Shar Sha Road )

In this data interpretation, opening stock is when I have visited first time to take
survey and closing stock is survey taken at the end of project. In middle period of
time 60days I have take order from retailer and delivering the product to retailer.
So that market share of PepsiCo is increase.

47

DATA INTERPRETATION

(1) Market share of PepsiCo products and Coco-cola products.

Brand
Coco-cola
PepsiCo

Opening stock in
quantities (case)
578
338

Closing stock in Total stock

quantities (case)
672
1250
486
824

Market share

PepsiCo
40%

Coco-cola
60%

From above table and pie-chat, I found that Coco-cola was 60% market share in
Patna whereas PepsiCo 40%.
This was calculated on the basis of total stock availabilities on opening stock that
mean first outlet survey and closing stock availabilities last outlet survey.

48

(2) Change in market share from opening to closing stock in 8 week.

Brand
Coco-cola
PepsiCo

Opening stock in
quantities (case)
578
338

Closing stock in
quantities (case)
672
486

Percentage
growth
16.26%
43.78%

700

600

500

400

Opening stock
Closing stock

300

200

100

Coco-cola

PepsiCo

In 2 months internship period, PepsiCo stock was increased by 44% whereas cococola increased by only 16%. This huge increase due to taking order from retailer
and delivering the product in time.
If company takes order from retailer and deliver product on dailies basis then
automatically market share will increase.

49

(3) From 2nd question table, market share of PepsiCo at opening and closing stock.

Market share at openingn stock

PepsiCo
37%

Coco-cola
63%

At the opening stock market share of PepsiCo was 37% and coco-cola 63%.

Market share at closing stock

PepsiCo
42%

Coco-cola
58%

At closing stock market share of PepsiCo was 42% whereas Coco-cola 58%. This
increased in market share of PepsiCo due to delivering product on time.

50

(4) Change in stock keeping unit (SKU) in 8week.

Brand
Coco-Cola
PepsiCo

Opening SKU
520
389

Closing SKU
674
538

% increase in SKU
29.6%
38.3%

Change in SKU
800

700

600

500

Opening SKU

400

Closing SKU
300

200

100

Coco-cola

PepsiCo

From above table, I found that Stock Keeping Units (SKU) of PepsiCo increased
by 38.6% whereas Coco-cola increased only by 29.6% in 2 months.

51

(5) Stock keeping unit availabilities (SKU) of Pepsi and coco-cola in market on
closing date of project.
Brand
Coco-cola
PepsiCo

Closing SKU
674
538

Average SKU per outlet

6.74
5.38

Actually coco-cola is producing 38 types of pack product and PepsiCo is

producing 32 types of pack product.
Brand
Coco-cola
PepsiCo

Average SKU per Number of SKUs

outlet
6.74
38
5.38
32

Percentage
availabilities
17.7%
16.8%

PepsiCo has been 16.8% of SKUs Distributed against that available for
Distribution whereas Coco-cola has been 17.7% SKUs Distributed in market.
For both the companies there has been opportunity to grow their business by
increasing SKU availability in the market. PepsiCo has opportunities to increase
83.2% of its SKUs.

pepsico, 5.38

coco-cola, 6.74

From the above graph and table it was clear that the availability of SKU and
Chilled Stocks of PepsiCo was 44% and coco-cola 56%. Actually L.B.P.L. is
producing 32 types of product stock but its having only 5.4 types of stock on an
average of per retailer outlet.

52

of

(6) SKU availabilities carbonated soft drink (CSD) on basis of flavor.

PepsiCo Product
Flavor

Product

total SKU

Number of
packs
6

% of
availabilities
24.16%

Cola

Pepsi

145

Clear Lime

7Up,Mountain Dew 234

12

19.50%

Orange

Mirinda

7.66%

46

Coco-cola Product
237

Number of
packs
12

% of
availabilities
19.75%

182

30.33%

Cloudy Lime Limca

35

5.83%

Orange

56

9.33%

Flavor
Cola
Clear Lime

Product

total SKU

Coca-Cola,
Thums- Up
Sprite

Fanta

From survey I had found that stock keeping unit in cola flavor of Coco-cola
product was more than PepsiCo product. But Coco-cola has two type of product in
cola flavor which was coco-cola and thums-up whereas PepsCo has only one
product pepsi.
Percentage of availabilities =
Opportunities mean every outlet has at least one unit product of each packs.
Percentage of opportunities = 100- percentage of availabilities
From above table I found that cola flavor of PepsiCo has availabilities 24.16%
whereas Coco-cola19.75%. Cola flavor of PepsiCo has opportunities 75.84%

53

market. PepsiCo can increase availabilities up to 100% by working on

opportunities 75.84% cola flavor market.

Chart Title
0.35

0.3

0.25

0.2
Coco-cola
PepsiCo

0.15

0.1

0.05

0
Cola

Clear Lime

Orange

Cloudy Lime

From data interpretation, cola flavor of PepsiCo was 22.36% more than cola flavor
of Coco-cola. But at the same time clear lime of Coco-cola was 55.55% more than
PepsiCo clear lime product. In orange flavor coco-cola was 21.73% more than
PepsiCo.
Cloudy lime is not manufacture by L.B.P.L. therefore in these flavor 100%
opportunities.

54

(7) Number of companys cooler available in market.

Brand
Coco-cola
PepsiCo

Number of cooler
38
51

Number of cooler
60
50

51

40
38
Coco-cola

30

Pepsico
20
10
0

Coco-cola

Pepsico

Out of 100 retailer outlet, I have found that number of cooler of PepsiCo was 51
whereas coco-cola 38. PepsiCo had been 34% more cooler than coco-cola.

55

(8) Total cooler capacities available in market.

Brand
Coco-cola
Pepsico

Total cooler capacities

18690
16100

Percantage of cooler capacities

PepsiCo
46%
Coco-cola
54%

Actually I have earlier found that PepsiCo has more cooler in compare of Cococola. But here coco-cola has more capacities of cooler in compare of PepsiCo.
Coco-cola had 54% total cooling capacities whereas PepsiCo46%.
In capacities wise, coco-cola had 16% more cooling capacities then PepsiCo.

56

(9) Market share of carbonated soft drink (CSD) and juice base drink (JBD) in
Patna.
Market

Opening stock
quantities in case

Closing stock
quantities in case

Total stock in case

CSD

774

897

1671

JBD

114

202

316

Market share of CSD and JBD

JBD
16%

CSD
84%

From above data interpretation I found that carbonated soft drink market share was
84% and juice base drink market share was 16%.
CSD product of coco-cola is coco-cola, sprite, thums-up, fanta, limica and soda.
CSD product of PepsiCo is pepsi, 7up, mountain dew, mrinda, soda.

57

(10) Market share of PepsiCo and coco-cola carbonated soft drink (CSD) in Patna.

Brand

Average quantities in Percentage of market

case per outlet

PepsiCo

3.50

42%

Coco-cola

4.85

58%

PepsiCo, 3.5
Coco-cola, 4.85

Market share of carbonated soft drink (CSD) in Patna was 84% in which coco-cola
had 58% market whereas PepsiCo 42% market shares in Patna.

58

(11) Market share of Juice base drink in Patna.

Brand

Average quantities in case Percentage of JBD

per outlet
Market

Coco-cola

1.20

85%

PepsiCo

0.38

15%

Market share of JBD

PepsiCo
24%

Coco-cola
76%

Market share of Juice base drink (JBD) in Patna was 16% in which coco-cola has
been 76% and PepsiCo 24% juice base market share.
JBD product of coco-cola is maaza and mint mind.
JBD product of PepsiCo is slice and nimbuj.

59

CHAPTER-8

CONCLUSION AND
RECOMMENDATIONS

60

Conclusion
From above analysis it is evident that there are only two companies dominating in
the soft drinks market - PepsiCo & Coca - Cola. There is neck-to-neck
competition between these two companies. After visiting 100 outlets in Patna
region it was found that the market share of PepsiCo was 40% and that of Cococola 60%. Average availability of quantities per outlet in case of PepsiCo was
6.72cases per outlet and Coco-cola 4.86cases per outlet in this area. It was
observed that when number of coolers was compared, PepsiCo had 34% more
cooler than Coca cola limited but when total capacity is compared Coca cola had
16% more capacity than PepsiCo. Beverage industry is categorized into two
categories- CSD and JBD. Carbonated soft drink (CSD) had 84% market share and
juice base drink (JBD) 16%.
The study also focuses on retailer satisfaction and it was found that majority of the
retailers were selling coco-cola products and some of the retailers werent satisfied
with the distribution of PepsiCo products. There were complaints from retailers for
late delivery of product and less stock supply due to shortage.
Coca-cola has covered more market share because they provide better supply, and
has better provision of refrigerator supply to the retailer. Distribution of - coolers
and display of Glow Signs board was better than PepsiCo. So, more investment is
needed to break the brand establishment of Coco-cola product.

61

Recommendations
Coco-cola is the only competitor of PepsiCo. It is better to track every information
about Coco-cola i.e. price, scheme, policy etc so that it will always help in
Decision making. Company should prepare future plan for maintaining its market
share as competitor can increase and can capture the market. Now a day with the
introduction of tetra packs such as fruity, Tree Top etc Lumbini Beverages Pvt.
Ltd. should think of introducing such packs of its various flavors product.
It was observed that some retailers keep other companies products in the PepsiCo
fridge. Company should make a special department to check such activities and
inspect every shop 3 to 4 times in a month to check fridges. If it is found that
retailer dont keep other companies product in PepsiCo fridge then they should
provide special scheme or incentive to retailers which may help in increasing
market share of PepsiCo.
A complaint Register should be assigned by the company to every distributor in
every route so that, retailers can write their problems. The complaint register
should be checked by Customer Executive (CE) and depot in-charge time to time.
Customer Executives should take the feedback from the salesman and the
distributors for solving retailer problem.
Retailers expect Computer generated bills from distributors where it was found that
the competitor is successful in providing this but Pepsi had not yet implemented
the same system, so it should be implemented. It was also found that number of
outlets is more. So it is required to short the route and extra vehicles/tricycles
provide in this route.
The above recommendations may help the company Lumbini Beverages Pvt. Ltd
to assess in a better way.

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APPENDIX

63

Bibliography
Internet site
www.pepsico.com
www.cocacocla.com
www.pepsicoindia.com
www.wikipedia.com
www.ask.com
Magazine
Business today
Business and economy
Book
Marketing Management by Philip Kotler
Marketing Management by V.S. Ramaswamy
Business Statistics by S.P. Gupta

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