You are on page 1of 77

Dharmsinh Desai University

Summer Training Project Report on


STUDY ON VARIOUS POLICIES OF PEPSI TOWARD
RETAILERS AND SURVEY ON DISPLAY
EFFECTIVENESS
Submitted By:
ISHAN RAINA
Submitted To:
JAI BEVERAGES PVT LTD.

JUNE, 2015

CENTRE FOR MANAGEMENT STUDIES


DHARAMSINH DESAI UNIVERSITY
Center For Management Studies Dharmsinh Desai University

Page 1

Dharmsinh Desai University


NADIAD

CERTIFICATE

This is to certify that Mr. Ishan Raina has completed his summer internship from
6st May 2015 to 27th June 2015 and prepared a project report titled "Study on
various policies of Pepsi toward retailers and survey on display effectiveness"
under my supervision and guidance.

SIGNATURE

SIGNATAURE

Dr.
HEAD OF DEPARTMENT

Prof.
INTERNAL GUIDE

DATE:

PLACE:

Center For Management Studies Dharmsinh Desai University

Page 2

Dharmsinh Desai University

DECLARATION
I, the undersigned, hereby declare that the Project Report entitled "STUDY ON VARIOUS
POLICIES OF PEPSI TOWARD RETAILERS AND SURVEY ON DISPLAY
EFFECTIVENESS AT JAI BEVERAGES PVT.LTD". written and submitted by me to the
Dharamsinh Desai University in partial fulfillment of the requirement for the award of degree
of Master of Business Administration under the guidance of Prof. ------------ is my original work
and the conclusions drawn therein are based on the material collected by myself.

Ishan Raina
3rd semester
CMS DDU, NADIAD

Center For Management Studies Dharmsinh Desai University

Page 3

Dharmsinh Desai University

ACKNOWLEDGEMENT
The making of any report calls for contribution and cooperation from many others besides the
individual alone. It is the result of meticulous effort put in by many minds that contribute to the
final report submission and this work too is not an exception.
Thus, one of the best parts of writing this report is the opportunity to thank those who have
contributed towards it.
First and foremost, I would like to take the opportunity to express my sincere gratitude to Prof.
Neeraj Yajnik for his valued insights, suggestions and continuous support, without which this
project would not have reached successful completion.
I express our thanks to Jai Beverages pvt ltd. for granting me the permission to work with the
esteem organization. I am also thankful to Mr. Vijay Khazanchi for his timely support and
guidance.

I would like to thank all the respondents who took time out of their busy schedule to fill out the
questionnaires and have interaction with me. All the above, made considerable contribution to
which these few lines can hardly do justice to their patience and generous support.
Last but not the least, i would like to thanks my friends , my family.

Center For Management Studies Dharmsinh Desai University

Page 4

Dharmsinh Desai University

PREFACE
Theoretical knowledge is of no use, until and unless it is applied into some practical aspect. We
must lay stress on the proper implementation of what we have learned in class at real life
incidents to obtain optimum output.
Thus to apply all theoretical knowledge gained so far onto the practical field, The submission of
this project report is the part of the curriculum of MBA course.
This Summer Project has provided me with the full-fledged experience about the business arena
of wholesome Indian beverage industry. It gave me complete training about practice of
marketing strategies in the real life industry and helped me gain the first-hand experience of my
future career in marketing.
This project shows the various steps and activities performed in order to study VARIOUS
POLICIES OF PEPSI TOWARD RETAILERS AND SURVEY ON DISPLAY
EFFECTIVENESS AT JAI BEVERAGES PVT.LTD

Center For Management Studies Dharmsinh Desai University

Page 5

Dharmsinh Desai University


EXECUTIVE SUMMARY
As marketing is a process, which starts with customer and ends with customer. But in between
this process retailer plays an important role in affecting the buying decision of customer, which is
indirectly affecting the sale. So my intension is to find out the percentage by which retailer can
be satisfied to maximum extent. So that sales and brand image of company can be increased.
Previously the manufacture used to make a product and sell it to the customer without giving any
importance to retailers. In case of beverage industry also the scenario has totally changed. There
is much competition. After that competition is increased. Then company realize the importance
of retailer and his needs and what he except from the company product. Company has begun to
invest on research to understand and what is the perception of retailer about various policies by
company.
Further, A personal interview with each retailer with the help of questionnaire was selected as the
method of collecting information regarding my objectives of the study. I have collected the
information regarding various policies and the display of the product in visi-cooler from PepsiCo
retailers that how they are performing the task about the display of the product. Whether they are
following the company guidelines or setting their own standard while putting soft drink visible to
the consumer in the premise of their outlet as a part visual merchandising.
These information were collected through the questionnaire method which included questions on
finding out information related to Planogram, status of visi-charging, impact of prime location of
Visi-cooler on sale & display of the products in the premise of outlet as a part of merchandising.

Center For Management Studies Dharmsinh Desai University

Page 6

Dharmsinh Desai University

TABLE OF CONTENT

Center For Management Studies Dharmsinh Desai University

Page 7

CHAPTERS

PAGE
S

Dharmsinh Desai University


1. INTRODUCTION.........................................................................
.
1.1 Markets Overview....................................................................
2. MARKETING STRATEGY..................................

2.1 Generic Strategy.

5-7

2.2 Grand Strategy

7-9

2.3 Formulating Market Strategy.

9-11

3. DISTRIBUTION NETWORK.
3.1 Distribution System
3.2 Policies

12-13
13
13-17

3.3 Product Portfolio.


18-20

4. SALES AND MARKETING


4.1 Market survey of retailers on display effectiveness
4.2 Conceptual background...

21-22
23-29
30-35

4.3 Limitations......
36
5. OBJECTIVE & RESEARCH METHADOLOGY,
5.1 Objective
5.2 Sampling
5.3 Research Design
5.4 Sample Design...
5.5 Size Of Sample..
5.6 Research Tool

37
39
39
39
39
40-41

6. DATA ANALYSIS AND INTERPRETATION


6.1 Cross tabulation..

42-57
58-61

Center For Management Studies Dharmsinh Desai University

Page 8
62-64

7. FINDINGS , SUGGESTIONS & CONCLUSION

Dharmsinh Desai University


INTRODUCTION
To the domestic carbonated beverages market
The 50-bn-rupee soft drink industry is growing now at 6 to 7% annually. In India, Coke and
Pepsi have a combined market share of around 95% directly or through franchisees. Campa Cola
has a 1% share, and the rest is divided among local players. Industry watchers say, fake products
also account for a good share of the balance. There are about 110 soft drink producing units
(60% being owned by Indian bottlers) in the country, employing about 125,000 people. There
are two distinct segments of the market, cola and non-cola drinks. The cola segment claims a
share of 62%, while the non-cola segment includes soda, clear lime, cloudy lime and drinks with
orange and mango flavours.
The per capita consumption of soft drinks in India is around 5 to 6 bottles (same as Nepal's)
compared to Pakistan's 17 bottles, Sri Lanka's 21, Thailand's 73, the Philippines 173 and Mexico
605. The industry contributes over Rs 12 bn to the exchequer and exports goods worth Rs 2 bn. It
also supports growth of industries like glass, refrigeration, transportation, paper and sugar. The
Department of Food Processing Industries had stipulated that 'contains-no-fruit-juice' labels be
pasted on returnable glass bottles. About 85% of the soft drinks are currently sold in returnable
bottles. There was a floating stock of about 1000 MN bottles valued at Rs 6 bn. If the industry
were to abide by the new guidelines, it would have to invest in new bottles, resulting in a cost
outgo of Rs 5 bn. Neither Coke nor Pepsi is in a position to invest such a large amount.
Around 400,000 tons of raw materials would be required to replace the existing stock of bottles.
Instead, the soft drink industry suggested that a seven-year moratorium be extended to the
industry so that it can incorporate the change in a phased manner. There is no such mandatory
requirement anywhere in the world to specifically label the glass surface of returnable bottles.
The government has decided to extend the date for replacing the bottles to end-march 2006. In
the meantime, the producers have shifted substantially to the use of PET bottles.
Soft and aerated drinks were considered products for the middle class and the affluent. That
segregation is no more valid. Soft and aerated drinks are consumed by all except those who
cannot afford to buy any drink. An NCAER study says that 91% soft drink sales are made to the
Center For Management Studies Dharmsinh Desai University

Page 9

Dharmsinh Desai University


lower, middle and upper middle classes. The soft drink industry has been urging the
government to categories aerated waters (soft drinks) equitably with other consumer products of
mass consumption and remove special excise duty.
The industry estimates that the beverage market should grow at twice the rate of GDP growth.
The Indian market should have, therefore, grown by atleast 12%. However, it has been growing
at a rate of about 6%. In contrast, the Chinese market grew by 16% a year, while the Russian
market expanded at almost four times the rate of growth of the Indian market.
It may be recalled that Coca-Cola, the world's number one player, was present in India for a long
time in collaboration with an Indian producer but was thrown out in the late 1970s. It reappeared
in India following the economic liberalization era - but after its rival, world's number two, had
already entered in a big way following a long and tough fight against the opposition from the
domestic producers. When Coca-Cola re-entered, it installed a new milestone. It acquired the
well flourishing India's top player, Parle. Since then it is basically a fight between the two
American giants. Others are playing a peripheral role, as adjuncts to the two MNCs. World's
third biggest player, Cadbury Schweppes, had also made an entry but was gobbled up by CocaCola. When Coca-Cola acquired Parle brands, it was, in fact, buying the bottling facilities, the
marketing network, and the established consumer preference during the market build-up. The
brands were a drag on the global brand. Since Coca-Cola was not interested in brands (like
Thumps Up), it did not promote them. The result, at least, in the short run was a loss of the
market to the competitor. Coca-Cola decided to market more effectively the Parle brands. It had
in its armoury Coke, Thumps Up, Limca and Fanta. The latest to enter market was Parles
erstwhile Rimzim, alongside Portello, a black currant flavoured drink, very popular in Srilanka.
Coca-Cola operates through 35 plants and 16 franchisees throughout the country, while PepsiCo
has 20 plants, but it has 7 more franchisees at 23 to 16 of its rival. Coca-Cola claims a market
share of 51%, while Pepsi has a share of 46%. The claims, however, remain disputed. The other
smaller players like Pure Drinks Ltd claim the rest of the market. The shares of the two lead
players are consolidated figures, which include the respective bottlers. Coca-Cola had
approached the government for a five year extension for divesting 49% equity in its bottling
subsidiary, Hindustan Coca-Cola Holdings. It had set up the marketing subsidiary as part of its
Center For Management Studies Dharmsinh Desai University

Page 10

Dharmsinh Desai University


strategy to integrate all its bottling operations, both company-owned and franchisee bottlers,
apparently keeping in line with its global policy. Altogether, it had bought initially over 38
franchisee bottlers.
In India, beverages form an important part of the lives of people. It is an industry, in which
the players constantly innovate, in order to come up with better products to gain more consumers
and satisfy the existing consumers.

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

Alcoholic, non-alcoholic and sports beverages


Natural and Synthetic beverages
In-home consumption and out of home on premises consumption.
Age wise segmentation i.e. beverages for kids, for adults and for senior citizens
Segmentation based on the amount of consumption i.e. high levels of consumption and
low levels of consumption.

If the behavioral patterns of consumers in India are closely noticed, it could be observed that
consumers perceive beverages in two different ways i.e. beverages are a luxury and
that beverages have to be consumed occasionally. These two perceptions are the biggest
challenges faced by the beverage industry. In order to leverage the beverage industry, it is
important to address this issue so as to encourage regular consumption as well as and to make the
industry more affordable.
Four strong strategic elements to increase consumption of the products of the beverage industry
in India are:

The quality and the consistency of beverages needs to be enhanced so that consumers are

satisfied and they enjoy consuming beverages.


The credibility and trust needs to be built so that there is a very strong and safe feeling
that the consumers have while consuming the beverages.

Center For Management Studies Dharmsinh Desai University

Page 11

Dharmsinh Desai University

Consumer education is a must to bring out benefits of beverage consumption whether in


terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige

relevant to the category.


Communication should be relevant and trendy so that consumers are able to find an
appeal to go out, purchase and consume.

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

MARKETING STRATEGY
It is complete and an unbeatable plan designed specifically for attaining the marketing objective
of a firm. The marketing objective indicates what the firm want to achieve. The marketing
strategy provides the design for achieving them the linkage between marketing strategies and

Center For Management Studies Dharmsinh Desai University

Page 12

Dharmsinh Desai University


overall corporate success is indeed direct and vital. Realizing the marketing objectives is the
purpose of two Strategies:
A Generic Strategy.
B Grand strategy.
GENERIC STRATEGY:
Generic strategies require specific skills, organizational arrangements, and resources in order for
a successful implementation for the business. Starting a business requires a lot of research, and
examples along with notes. Small businesses are looking to keep the costs low but also keeping
the quality of the products in tacked for the customer. Even for a aqua phonics greenhouse there
is countless research materials that have to be looked at to determine if the business can survive
with these types of strategies. Low cost and differentiation are what businesses are looking for
when they think about generic and grand strategies. Generic strategy models are perhaps the
most prevalent conceptual approach to competitive strategy today. Generic strategy is further
classified in three types:

Center For Management Studies Dharmsinh Desai University

Page 13

Dharmsinh Desai University

FIGURE-1
1

Cost Leadership Strategy:


Cost Leadership is a strategy where "a firm sets out to become the low-cost producer in
its industry. A firm with this strategy sets as a goal to produce or provide a service for a
lower operating cost than the competitors. This enables the firm to sell goods or services
at the same selling price as the competitors and make a larger profit. Also, the firm could
lower the selling price to under bid the competitors and still make a profit. The emphasis
is on lower costs, not on low selling prices. "Cost leadership requires aggressive
construction of efficient-scale facilities, vigorous pursuit of cost reductions from
experience, tight cost and overhead control, avoidance of marginal customer accounts,

and cost minimization in areas like R&D.


Differentiation strategy:
The second generic business strategy is differentiation: being different than every other
firm. Grant states this is an "emphasis on branding advertising, design, service, quality,
and new product development. The firm adopting this strategy seeks to be unique in the

Center For Management Studies Dharmsinh Desai University

Page 14

Dharmsinh Desai University


industry. This uniqueness must be a feature for which customers will pay a premium
price. This differentiation does not have to be anything outlandish. It can be as simple as
the best customer service in the industry. Differentiation can also be speed in filling
orders. The point of differentiation only has to be something that customers will be
willing to pay a larger selling price than that of the cost leader.
3

Focus strategy:
The focus strategy ignores most of a product or service market and focuses upon a
particular niche. The niche could be "a particular buyer group, segment of the product
line, or geographic market." For example in the automobile industry there are companies
that specialize in selling vehicles for disabled people. These firms do not compete with
the dealerships because these firms have a special vehicle the dealerships do not carry in
inventory. The focus is to serve a very special group of customers.

GRAND STRATEGY:
Grand strategy is a strategy that provides a basic direction for the specific strategic and
functional tactics of the business. Some of the grand strategies are used so that the
business can reinforce each other. These grand strategies are also called strategic thrusts
companies can address quality, price of the products, and they need to value the
customers regarding issues that they might incur. Grand strategies concentrate on
increasing sales of the current products or services that they offer with the current
distribution channels that they have in place for their business. If the economy or
environment is unstable this would increase the risks for that business. An example of a
business that uses the grand strategy would be McDonalds. when it comes to marketing
businesss will market the current products or services that they offer by changing the
advertising or promotions that they offer their customers. With the example of
McDonalds they send out coupons to all residences that offer some of their products to
the consumer at a discounted price or some buy one get one free to entice the customer to
come in and spend their money. Listening to the customers and what they want or need
from your business is the key to having a successful business. It is classified into
following:

Stability Strategy

Center For Management Studies Dharmsinh Desai University

Page 15

Dharmsinh Desai University

Growth Strategy

Retrenchment Strategy

Combination Strategy

Stability strategy:
A strategy is stability strategy when a firm attempts to maintain its status-quo with
existing levels of efforts and it is satisfied with only incremental
growth/improvement by marginally changing the business and concentrates its
resources where it has or can develop rapidly meaningful competitive advantages

in the narrowest possible product market scope.


Growth strategy:
Growth Strategies are means by which an organization plans to achieve the
increased level of objective that is much higher than its past achievement level.
Organizations may select a growth strategy:
To increase their profits, sales or market share.
To reduce cost of production per unit.
increase in performance objectives
Growth strategy is taken up because of managerial motivation to do so. Managers
with high degree of achievement and recognition always prefer to grow. The
needs on the part of managers push them to think as to how they can achieve their
need satisfaction. The answer lies in the continuous growth of the organization or
the group of organizations as a whole.

Retrenchment strategy:
It is a defensive strategy in which a firm having declining performance decides to
improve its performance through contraction in these activities i.e. reducing the
scope of its business by total or partial withdrawal from present business.
focusing on functional improvement with special emphasis on cost

reduction or
reducing the number of functions it performs, by being a captive firm or
reducing the no. of products, markets, customer functions etc. or
Liquidation of business (as a last alternative) or combinations of above.

Combination strategy:

Center For Management Studies Dharmsinh Desai University

Page 16

Dharmsinh Desai University


Combination strategy is not an independent classification but it is a combination
of different strategies stability, growth, retrenchment in various forms. Thus
the possible combinations of strategies may be:
Stability in some businesses and growth in other businesses
Stability in some businesses and retrenchment in other businesses
Growth in some businesses and retrenchment in other businesses
Stability, growth and retrenchment in different businesses
FORMULATING THE MARKETING STRATEGYFormulating the marketing strategy consists of two main steps1- Selecting the target marketIt does not fully bring out the import of the inseparable linkage between the two. When the
selection of the target market is over an important part of the marketing strategy of the firm is
already determined, defined and expressed.
2-Assembling the marketing mixAssembling the marketing mix means assembling the four Ps of marketing in the right
combination.
The firm has to find out how it can generate the best sales and profit. It plans different marketing
mixes with varying levels of expenditure on each element and tries to figure out the effectiveness
of each combination in terms of the possible sales and profit.

Pepsi Company is using wonderful slogan


PYASS HAI BADI
Center For Management Studies Dharmsinh Desai University

Page 17

Dharmsinh Desai University


YE DIL MANGE MORE
HAVE A PEPSI DAY
THE GENERATION NEXT
PEPSI NOTHING OFFICAL ABOUT IT.
NOW ITS PEPSI, FOR THOSE WHO THINK YOUNG
THE CHOICE OF NEW GENERATION
YOU GOT OF THE RIGHT ONE BABY
A GENERATION AHEAD.
NOTHING ELSE IS A PEPSI
OH YES ABHI

A Tale of PepsiCos Strategy and Structure:


Pepsi and the Coca-Cola Company are to of the largest and oldest arch-rivals in the carbonated
soft drinks industry. The war between the soda giants, also known as the cola wars, initiated in
the 1960s when Coca-Cola dominance was being increasingly challenged by Pepsi-Cola. The
competitive environment between the rivals was intense and well publicized, forcing the Pepsi
Company to continuously establish and implement strategic changes as a means to create a
competitive advantage. Furthermore both Pepsi and coke offered a limited number of products
that looked the same, tasted the same, and bubble into foam the same thus, questioning
whether further substantial growth in sales was possible.
Rather than succumbing to the impending maturation of its domestic market, the Pepsi company
as a leader, fostered by the competitive intensity, launched new strategies, such as product
modifications, new forms of pricing and promotion, and fundamental changes in its distribution
system, that have led to rapid and continued expansion of the companys domestic sales. By
forecasting and responding to changes in the economic, political, social, and technological
Center For Management Studies Dharmsinh Desai University

Page 18

Dharmsinh Desai University


environment, Pepsi has successfully innovated in marketing, distribution, and product
development. The soda rivalry also initiated Pepsi Company to seek international markets and
diversification strategies in order to increase its sales growth.

DISTRIBUTION NETWORK

Center For Management Studies Dharmsinh Desai University

Page 19

Dharmsinh Desai University


JBPL has a wide and well managed network of salesmen appointed for taking up the
responsibility of distribution of products to diverse parts of the cities. The distribution channels
are constructed in such a way that the demand of customers is fulfilled at the right place and the
right time when it is needed by them.
A typical distribution chain at JBPL would be:
Production Plant Warehouse Depot Warehouse Distribution WarehouseRetail
StockRetail Shell Consumer

The customers of the Company are divided into different categories and different routes, and
every salesman is assigned to one particular route, which is to be followed by him on a daily
basis. A detailed and well organized distribution system contributes to the efficiency of the
salesmen. It also leads to low costs, higher sales and higher efficiency, thereby leading to higher
profits to the firm.
The various routes formulated by JBPL for distribution of products are as follows:

Key Accounts: The customers in this category collectively contribute a large chunk of
total sales of the Company. It basically consists of organizations that buy large
quantities of a product in one single transaction. The Company provides goods to these
customers on credit, payments being made by them after a certain period of time i.e
either a month or half a month.
Examples: Clubs, fine dines restaurants, hotels, corporate houses, etc.
Future Consumption: This route consists of outlets of Pepsi products, wherein a
considerable amount of stock is kept in order to use for future consumption. The stock
does not exhaust within a day or two, instead as and when required stocks are stacked
up by them so as to avoid shortage or non-availability of product.
Examples: Departmental stores, Super markets etc.
Immediate Consumption: The outlets in this route are those which require stocks on
a daily basis. The stocks of products in these outlets are not stored for future use
Center For Management Studies Dharmsinh Desai University

Page 20

Dharmsinh Desai University


instead, are exhausted on the same day and might run a little into the next day i.e the
products are consumed at fast pace.
Examples: Small sized restaurants, educational institutions etc.
General: Under this route, all the outlets that come in a particular area or an area

along with its neighbouring areas are catered to. The consumption period is not taken
into consideration in this particular route.
DISTRIBUTION SYSTEM
Direct Distribution: In direct distribution, the bottling unit or the bottler partner has a
direct control over the activities of sales, delivery, and merchandising and local
account management at the store level.
Indirect Distribution: In indirect distribution, an organization which is not a part of
pepsi system has control on one or more of the distribution elements ( Sales, delivery,
merchandising and local account management)
Merchandising: Merchandising means communication with the consumer at the point
of purchase to convey product benefit, value and quality. Sales people and delivery
personnel both have this responsibility. In certain locations special teams who go into
business locations to specifically merchandise our products

Center For Management Studies Dharmsinh Desai University

Page 21

Dharmsinh Desai University


VARIOUS POLICIES OF PEPSI TOWARDS RETAILERS
There are various policies that Pepsi has adopted to improve their sale and increase their share in
a particular market. Various techniques are followed to implement policies in a market. The basic
and ground level policy of Pepsi is To reach each and every possible corner of a market.
Both, city and upcountry market have different policies associated with them:
IN CITY
A) OBGTM- Order based go to market
Order based go to market is an essential policy that pepsi performs. Earlier distributers used to
deliver products directly to the retailers in haphazard manner. Therefore they could not track the
amount of sale being executed at a particular outlet.
Hence, the principle of OBGTM was to keep the record of the market by measuring the amount
of sales at particular outlet via distributers. A PSR (pilot sales representative ) is assigned to a
distributers who does this work.

A PSR has a ROUTE BOOK known as BIBLE . Route book is a book in which the order
of a particular Outlet/Retailer is taken. Rout book helps in:

Provides day to day information about the market and retailers choice and
purchasing capacity.

Center For Management Studies Dharmsinh Desai University

Page 22

Dharmsinh Desai University

It also shows the report of sales and performance of a particular retailer in a


market.

When the order is taken from the market , PSR submits it to the distributer and distributer than
delivers the products as per the scheduled order.
B) VISI COOLER TRACKING
Visi cooler tracking is the another technique to determine the share at particular outlet by
keeping track on visi cooler purity and percentage of visi charging at regular interval. Visi cooler
tracking helps in:
Determining the amount of work a retailer is performing.
Comparing , what percentage of sale is presently being executed at an outlet as compared
to previous year.

FIGURE-2

Visi cooler tracking is done on regular interval on daily basis. Figure above shows that how
tracking is done and recorded on daily basis every week.
C) TSB - Territory score board

Center For Management Studies Dharmsinh Desai University

Page 23

Dharmsinh Desai University


Territory score board is the another major technique used to measure the possible and effective
way of market. It includes:

a)

Tracking Sheet
Cancellation Sheet
Discount Sheet
Cancellation Sheet:

Cancellation sheet is a tracking sheet which provides information about the cancelled order from
the retailers. It also specifies the reason about cancellation.
b) Discount sheet:
Discount sheet shows the amount of discount the retailer is getting. PSR records the discount
provided to the retailers.

FIGURE-3

c) Productivity analysis:

Center For Management Studies Dharmsinh Desai University

Page 24

Dharmsinh Desai University


Productivity is computed as on the basis of number of scheduled call and number of completed
calls. Productivity analysis gives rate ie. Strike Rate, the rate at which the sales are taking place
at an outlet. It is calculated as:
Strike Rate(%) = ( Cases Sold Order Booked ) 100
IN UP-COUNTRY
Up country market has some different policies as compared to city. The basic business model in
these areas is HUB & SPOKE. Company establishes a hub that stocks the products. At these
places market are scattered and it becomes difficult for the company to establish a stable market
over there. Thats why the hub is created and buyers come to hub to take their order.

Introduction about brands


Center For Management Studies Dharmsinh Desai University

Page 25

Dharmsinh Desai University


PEPSICO INDIAS EXPANSIVE
PORTFOLIO
Refreshment beverages

FIGURE-4

Sports drinks

FIGURE-5

100% natural fruit juices and juice based drinks


Center For Management Studies Dharmsinh Desai University

Page 26

Dharmsinh Desai University

FIGURE-6

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

Center For Management Studies Dharmsinh Desai University

Page 27

Dharmsinh Desai University


PEPSICO SKUs

FIGURE-7

Center For Management Studies Dharmsinh Desai University

Page 28

Dharmsinh Desai University


SALES AND MARKETING
HIERARCHY OF
PEPSICO INDIA

FIGURE-8

MUM Marketing Unit Manager: In charge of specific zones (e.g. north, south, east, west)
and report to the corporate Office.
UM - Unit Manager: In charge of day to day operations and supervision of all the functions
within the organizations including operations, logistics, sales and distribution, marketing. The
Unit Manager reports to the MUM.

Center For Management Studies Dharmsinh Desai University

Page 29

Dharmsinh Desai University


TDM - Territory Development Manager: TDM is the in charge of the sales and distribution
network of a particular territory within a zone. Responsible for the daily, monthly and annual
sales within the territory decides the daily schemes for products and incentives for salespersons.
He is also responsible for cost effectiveness, profit generation and profit maximization within the
territory.
ADC - Area Development Coordinator: Reports to the TDM, and is in charge of a C & F
center and the distributor point in the area. He is directly responsible for any issues in the area
and is supposed to ensure the smooth functioning of the entire sales and distribution network in
the area. ADC is responsible for timely disposal of any issue faced by the retailers. He decides
and approves the boards, displays and hoardings in the area.
CE - Customer Executive: Reports to the ADC and is in charge of the salespersons. He is
required to visit the market and accompany every salesperson as frequently as possible. He is the
first person to get information about the market / area and is the first contact if the salespersons
or retailers face issue. Responsible for assigning and achieving daily sales target given to the
salespersons.
PSR Pre-sales Representative: They are the most important asset for the company as they are
the ones who sell the products, are responsible for acquiring new customers, and retain the old
ones. Their work also includes informing the retailers about the promotions and any new scheme
launched. They are also required to push for the sale of any new product launched in the market
and make sure that the retailers are following the company guidelines regarding the launch and
the maintenance of Visi coolers. They report to the CE.
DA Delivery Agent: These are the people who are responsible for delivering the PepsiCo
products to the retailers at their outlet with the help of delivery van. Their duty is to supply the
products on the basis of invoice issued by the company.

Market survey of PepsiCo Retailers on display


Center For Management Studies Dharmsinh Desai University

Page 30

Dharmsinh Desai University


Effectiveness
The display of the products plays a very significant role in marketing of cold - drinks.
Display can be termed as the orderly, systematic, logical & intelligent way of putting stock on
the floor. It has several aspects and involves SKU planning, store windows & floor dis plays,
signs, space design, fixture & hardware, props and mannequins. As retailing becomes
increasingly complex, creating the right atmosphere in the store and presenting the merchandise
in the right manner becomes more & more important.
To produce good display, it is vital to understand the product and the customer. Good display
means a selling space that is neat, easy to see, follow and shop. It means merchandise arranged
in a manner that enables the customer to buy quickly, efficiently and comfortably.
PLANOGRAM
A Planogram is a tool used by the retailer that helps determine the location of merchandise
within a department. It is a diagram that visually communicates how merchandise and props
physically fit onto a store fixture or window, to allow for pro per visibility and price point
options. A Planogram is created after taking into account factors like product sales, the
movement of the products within the product category and the space required for various
products. They usually list the exact number of square feet used for the various products and the
exact number of products to be displayed in a particular.

Center For Management Studies Dharmsinh Desai University

Page 31

Dharmsinh Desai University


FIGURE-9

The various tools adopted by the company for improving display effectiveness are as
follows:
Center For Management Studies Dharmsinh Desai University

Page 32

Dharmsinh Desai University

DISPLAY ADVERTISMENT
Display advertising is a type of advertising that typically contains text (i.e. copy), logos,
photographs or other images, location maps, and similar items. In periodicals, display
advertising can appear on the same page as, or on the page adjacent to, general editorial content.
In contrast, classified advertising generally appears in a distinct section, was traditionally textonly, and was available in a limited selection of typefaces.
Display advertisements are not required to contain images, audio, or video: Textual
advertisements are also used where text may be more appropriate or more effective. An example
of textual advertisements is commercial messages sent to mobile device users. One common
form of display advertising involves billboards.

FIGURE-10

ADVERTISMENT
Center For Management Studies Dharmsinh Desai University

Page 33

Dharmsinh Desai University


Advertising is a form of communication used in helping sell products and services. Typically it
communicates a message including the name of the product or service and how that product or
service could potentially benefit the consumer. Advertising often attempts to persuade potential
customers to purchase or to consume more of a particular brand of product or service. Modern
advertising developed with the rise of mass production in the late 19th and early 20th centuries.
Many advertisements are designed to generate increased consumption of those products and
services through the creation and reinvention of the "brand image". For these purposes,
advertisements sometimes embed their persuasive message with factual information. There are
many media used to deliver these messages, including traditional media such as television, radio,
cinema, magazines, newspapers, video games, the carrier bags, billboards, mail or post and
Internet marketing. Today, new media such as digital signage is growing as a major new mass

media. Advertising is often placed by an advertising agency on behalf of a company or other


organization.
Organizations that frequently spend large sums of money on advertising that sells what is not,
strictly speaking, a product or service include political parties, interest groups, religious
organizations, and military recruiters. Non-profit organizations are not typical advertising clients,
and may rely on free modes of persuasion, such as public service announcements.
Money spent on advertising has increased dramatically in recent years. In 2007, spending on
advertising has been estimated at over $150 billion in the United States and $385 billion
worldwide, and the latter to exceed $450 billion by 2015.
While advertising can be seen as necessary for economic growth, it is not without social costs.
Unsolicited Commercial Email and other forms of spam have become so prevalent as to have

become a major nuisance to users of these services, as well as being a financial burden on
internet service providers. Advertising is increasingly invading public spaces, such as schools,

which some critics argue is a form of child exploitation. In addition, advertising frequently uses
psychological pressure (for example, appealing to feelings of inadequacy) on the intended
consumer, which may be harmful.
Center For Management Studies Dharmsinh Desai University

Page 34

Dharmsinh Desai University


BANNER
A banner is a flag or other piece of cloth bearing a symbol, logo, slogan or other message.
Banner-making is an ancient craft.

ADVERTISING BANNER
These are often made commercially on a plastic background. The banner industry has been
evolving from the traditional cut-vinyl banners to banners printed with large format & wide
format inkjet printers on various vinyl and fabric materials using solvent inks and up-curable inks.
BILLBOARD
A billboard is a large outdoor advertising structure (a billing board), typically found in high traffic
areas such as alongside busy roads. Billboards present large advertisements to passing pedestrians
and drivers. Typically showing large, ostensibly witty slogans, and distinctive visuals, billboards
are highly visible in the top designated market areas. Bulletins are the largest, most impactful
standard-size billboards. Located primarily on major highways, expressways or principal
arterials, they command high-density consumer exposure (mostly to vehicular traffic). Bulletins
afford greatest visibility due not only to their size, but because they allow creative "customizing"
through extensions and embellishments. Billboards are a great place to advertise business
because rather than you having to find your customers, your customers will find your
advertising.

Center For Management Studies Dharmsinh Desai University

Page 35

Dharmsinh Desai University

FIGURE-11.

POSTER
A poster is any piece of printed paper designed to be attached to a wall or vertical surface.
Typically posters include both textual and graphic elements, although a poster may be either
wholly graphical or wholly textual. Posters are designed to be both eye-catching and convey
information. Posters may be used for many purposes, and they are a frequent tool of advertisers
(particularly of events, musicians and films), propagandists, protestors and other groups trying to
Center For Management Studies Dharmsinh Desai University

Page 36

Dharmsinh Desai University


communicate a message. Posters are also used for reproductions of artwork, particularly famous
works, and are generally low-cost compared to original artwork. Another type of poster is
educational posters, which may be about a particular subject for educational purposes. Many
people also collect posters, and some famous posters have themselves become quite valuable,
collectors and vintage posters are usually framed and matted. Posters may be any size.
SIGNAGE
Signage is any kind of visual graphics created to display information to a particular audience.
This is typically manifested in the form of way finding information in places such as streets or
inside/outside of buildings.
Types of signage:
Oil Stock sign - massive signage for Oil Stockade.
Street signage - signs stamped out of metal with lettering embossed or printed (or both).
Neon signage - Electric lighting
Modular signage - A signage system that consists of pre designed elementary units.
Custom-made signage - Signs that are built from scratch to suit a specific requirement
presented by a client or a specific project.
MCFT (Modular Curved Frame Technology) A contemporary fusion between
custom-made signage and modular sign systems that features a curved profile.
LED sign (light-emitting diodes technology) LED lighting
Architectural Signage/Way finding Systems - A unified system of signs for a single facility that
aid in way finding and identification of specific destinations within the facility. Signs include
building and room identification signs, directional and informational signs and regulatory signs.
In the US, all such systems must comply with the ADA.

Center For Management Studies Dharmsinh Desai University

Page 37

Dharmsinh Desai University


CONCEPTUAL BACKGROUND
As marketing is a process, which starts with customer and ends with customer. But in between
this process retailer plays an important role in affecting the buying decision of customer, which is
indirectly affecting the sale. So my intension is to find out the percentage by which retailer can
be satisfied to maximum extent. So that sales and brand image of company can be increased.
Previously the manufacture used to make a product and sell it to the customer without giving any
importance to retailers. In case of beverage industry also the scenario has totally changed. There
is much competition. After that competition is increased. Then company realize the importance
of retailer and his needs and what he except from the company product. Company has begun to
invest on research to understand and what is the perception of retailer about various policies by
company.
Utility of the project:
To know the expectation of the retailers among the Pepsi products.
To know the average sale of Pepsi products.
To know the company promotional activities.
To know the retailers satisfaction level towards the Pepsi product.
To know the retailers complaints regarding the price and availability of Pepsi
products.
Next,
A personal interview with each retailer with the help of questionnaire was selected as the method
of collecting information regarding my objectives of the study. The questionnaire was used in
Jammu to facilitate tabulation and analysis of data was designed for segment retailers.
I have collected the information regarding the display of the product in visi-cooler from PepsiCo
retailers that how they are performing the task about the display of the product. Whether they are
following the company guidelines or setting their own standard while putting soft drink visible to
the consumer in the premise of their outlet as a part visual merchandising.

Center For Management Studies Dharmsinh Desai University

Page 38

Dharmsinh Desai University


The questionnaire was prepared by me and I was also filled questionnaire myself while
interviewing the retailers. I used to go every outlet which is given by company and these outlets
were not performing up to the mark of PepsiCos guideline. For interview as far as those
languages were used which they can understand clearly; such as Hindi, Dogri & English. This is
a comprehensive master plan of the study undertaken, given a general statement of the method
used and procedure followed.
These information were collected through the questionnaire method which included questions on
finding out information related to Planogram, status of visi-charging, impact of prime location of
Visi-cooler on sale & display of the products in the premise of outlet as a part of merchandising.
MARKETING MIX
Product
Quality
Features
Options
Designs
Styles
Brand Name
Packaging
Size, Color, Service
Guarantee
Warranties

Center For Management Studies Dharmsinh Desai University

Page 39

Dharmsinh Desai University

Place
Channels
Coverage
Locations
Inventory
Transport

Price
List Price
Discount
Payment Period
Credit terms
Promotion
Advertising
Personal selling
Sales Promotion
Publicity

Center For Management Studies Dharmsinh Desai University

Page 40

Dharmsinh Desai University

FOUR PS OF PEPSI COMPANY


Management of the company must design a marketing mix the combination product,
place, price and promotion. These four elements must together satisfy the needs of the
organization target market and at the same time, achieve its marketing objectives.
1

PRODUCT:
There are 2 main product types in which Pepsi is present in India.

Beverages:
Soft drinks 7up, Dukes, Mirinda, Mountain dew, Nimbooz, Pepsi, Slice, Tropicana,
Mineral Bottled water Aquafina
Sports Drink Gatorade
Food Products:
Snacks Cheetos, Kurkure, Lays, Lehar, Uncle chipps
Breakfast Quaker oats
Pepsi company product information:
Pepsi Company as a Multinational Company has got enormous number of products since
from its beginning it has got a list of thousand together products in its basket. But it is not
operating in all the countries with all the products. Because all Pepsi product may not be suitable
for the people of every country so by keeping this in mind the jai Beverages Pvt. Ltd , Jammu
manufacturing only some products namely: Pepsi ,Blue Pepsi, Mirinda orange , Mirinda Lemon,
Mountain Dew ,Slice , 7-up, Lehar-soda.
But the Pepsi companys present leading brands are Pepsi,7-up, Mirinda orange. In India
it is manufacturing only some products viz.
SEGMENT

PRODUCTS

COLA

PEPSI

ORANGE

MIRINDA

Center For Management Studies Dharmsinh Desai University

Page 41

Dharmsinh Desai University


CLEAR LEMON

7UP, MOUNTAIN

CLOUDY LEMON

DEW

MANGO

TEEM MIRINDA

SODA

SLICE
EVERVESS

The above products are available in different bottles sizes and pet packs i. e , 200ml ,
300ml,500ml,1liter,2liter.
Since from the launch of 200ml(mini ) Pepsi products in the market it is moving very fast
in the market place than any other quantity bottles and pet jars , even it has over taken the sales
of 300ml bottles as forecasted.

2. PRICE:
Pepsi is in an industry which is dominated by the two biggies Coca cola and Pepsi. Thus
the pricing of Pepsi is competitive. In a war between Coca cola and pepsi, neither of the
brands can win if they enter a price war. This is because the cost of manufacturing and
transportation is huge. Thus, these companies are likely to enter a brand war rather than enter
a price war.
Pepsi is known to give promotional discounts as well as discounts on bulk buying. For
customers, as the container size rises, the discounts also rise. Thus a 2 litre bottle of Pepsi will be
relatively cheaper per 100ml as compared to a 250 ml pack. For distributors, the discount is
based on the quantity as well as the payment terms. The better the payment terms or the higher
the quantity, the more is the discount given thereby keeping the distributor motivated.
However, Pepsi has to lower its price for the top retailers and bulk buyers. For example Indian
retailers like Big Bazaar, Reliance fresh, as well as hypercity are bulk buyers. Similarly fast food
chains like Mcdonalds, KFC are also bulk buyers. These bulk buyers negotiate with the soft
drink brands on the basis of price and sell their products in huge quantities. Thus, pepsi has to
Center For Management Studies Dharmsinh Desai University

Page 42

Dharmsinh Desai University


drop prices in these places which affects the operating margin of the brand. The margins of the
company are better through the distributors and lesser through bulk buyers. However, the sales of
the company are higher to bulk buyers as compared to distributors.

3)

PLACE OR DISTRIUTION:

Pepsi has a huge distribution network in India. It has to be huge because the brand needs to be
present in every nook and corner of the country to increase its sales. The primary mode of
distribution is through distributors who in turn give it to retailers, restaurants, and convenience
stores. The secondary mode of distribution is directly through the company to bulk buyers and
major retailers who buy directly from the company.
Thus distribution channel is as follows:
1) Company > Distributor > Small retailers / Small buyers > End customer
2) Company > Bulk buyers > End customer
4) PROMOTION
One of the strongest reason Pepsi retains its brand image is its promotions. Pepsi targets mainly
youngsters through various Brand ambassadors. In India, the brand ambassadors have been the
best celebrities as well as sports person of the country including Sachin tendulkar, M S Dhoni,
Amitabh Bacchan, Ranbir kapoor and others.
Mountain dew has a message of Darr ke age jeet hai which is again focused on adventure
sports thereby targeting youngsters. Gatorade targets only sports as it is a sports drink.

LIMITATIONS

Since the product under study was consumer goods, which requires a large sample to
have a correct study, a sample size of 100 Respondents was too small for it. But time &

Center For Management Studies Dharmsinh Desai University

Page 43

Dharmsinh Desai University


money did not allow Researcher to have a large sample.

Mostly stress was given on primary data, as it was difficult to collect Secondary data
from organization & distributors.

Some of the respondents were not co-operative and many of them seem to be having no
interest.

It is impossible to find out the problem faced by the PepsiCo in a time span of two
months.

Area was specified.

It is extremely difficult to persuade retailer to respond to questionnaire.

The retailer knows us as people from Pepsi there by the responses could have been
biased.
The time allowed for the project was short. It was impossible to study deeply in that short
period.

OBJECTIVE OF THE PROJECT:


1

To know the expectation of the retailers among the Pepsi products.

Center For Management Studies Dharmsinh Desai University

Page 44

Dharmsinh Desai University


2

To know the companys marketing mix.

To know the retailers complaints regarding the price and availability of Pepsi
products.

To find out the most popular brand of PepsiCo & satisfaction level of its retailers.

To check the Planogram (POG) norms, whether retailers followed it properly or


not.

To find the proper merchandizing and product display in the outlet & relation
between company & its retailers.

RESEARCH METHODOLOGY
Definition of Research:
Center For Management Studies Dharmsinh Desai University

Page 45

Dharmsinh Desai University


The word research is derived from the Latin word meaning to know. It is a systematic and a
replicable process which identifies and defines problems, within specified boundaries. It employs
well designed method to collect the data and analyses the results. It disseminates the findings to
contribute to generalize able knowledge.
The five characteristics of research are:
I

Systematic problem solving which identifies variables and tests relationships between

II
III
IV

them
Logical, so procedures can be duplicated or understood by others
Empirical, so decisions are based on data collected
Reductive, so it investigates a small sample which can be generalized to a larger

population
Replicable, so others may test the findings by repeating it

Research Methodology:The research conducted is Discriptive Research and this type of research is Qualitative and
Quantitative.
Qualitative refers to the characters of the data or process by which the data are gathered.
The research process consists of a series of closely related activities. Why a research study has
been undertaken. Why a research study has been undertaken, how the research problem has been
defined, in what way and why the hypothesis has been formulated, what data has been collected
and what particular method has been adopted and a host of similar other question are usually
answered when we talk of research methodology concerning a research problem or study.

SAMPLING:The data was to be collected only from the Consumers. A questionnaire was prepared and
interviewing with Consumers.
Center For Management Studies Dharmsinh Desai University

Page 46

Dharmsinh Desai University


A decision has to be taken concerning a sample unit before selecting the number of samples. It
may be geographical as well as individual.
RESEARCH DESIGN :
The research design which has been used in the project report is descriptive in nature.
SAMPLE DESIGN:
The sample design which has been use in this project report is simple random sampling.
SIZE OF SAMPLE:This refers the number of items (Retailers) to be selected from the finite universe to constitute a
sample size. The survey was conducted of 100 Retailers in Jammu
RESEARCH DESIGN
MEANING OF RESEARCH DESIGN:
The formidable problem that follows the task of defining the research problem is the preparation
of the design of the research project, popularly known as the research design. Decisions
regarding what, where, when, how much by what means concerning an inquiry or a research
study constitute a research design. A research design is the arrangement of conditions for
collection and analysis of data in manner that aims to combine relevance to the research purpose
with economy in procedure. In fact, the research design is the conceptual structure within which
research is conducted; it constitutes the blueprint for the collection, measurement and analysis of
data. As such the design includes on outline of what the researcher will do from writing the
hypothesis and its operational implications to the final analysis of data. More explicitly, the
design decisions happen to be in respect of :
1
2
3
4
5
6
7
8

What is the study about ?


Why is the study being made ?
Where will the study be carried out ?
What type of data is required ?
Where can the required data be found ?
What periods of time will the study include ?
What will be the sample design ?
What techniques of data collection will be used ?

Center For Management Studies Dharmsinh Desai University

Page 47

Dharmsinh Desai University


9 How will the data analysed ?
10 In what style will the report be prepared ?
TOOLS AND INSTRUMENTS USED FOR THE STUDY
It is necessary for a researcher to define conceptual structure which research would be
conducted. The function of research design is to provide for the collection of relevant evidence
with minimal expenditure of efforts, time and money.
The means of obtaining the information is through :
a) Primary data like questionnaire and mock interview.
b) Secondary data like magazines, newspaper and internet etc.
PROCEDURE OF DATA COLLECTION
Data compilation is an intermediate stage between data collection and analysis. Data compilation
involves classification and summarization in order to make data amenable to analysis.
In dealing with any problem, once the sample has been selected, the data must be collected from
the sample population. There are several ways of collecting appropriate data which differ
considerably in context of money cost, time and other resources. They can be broadly classified
in to two categories.
Two sources to collect data are namely:
1. Primary Source
2. Secondary Source
PRIMARY SOURCE OF COLLECTING DATA
The Primary Data that i collected were the first hand information which I received through
personal interviews with the retailers and through questionnaires (Shown in ANNEXURE-1).
This data gave the most vital information for making my analysis of the prevailing purchasing
behaviour of the retailers.
QUESTIONNAIRE TECHNIQUE
Center For Management Studies Dharmsinh Desai University

Page 48

Dharmsinh Desai University


The method of collecting data mailing and personally distributing questionnaire to the
respondents is the most extensively employed technique in various economical surveys. This
method is quite popular, particularly in case of big inquiries. A typical questionnaire consists of a
number of questions arranged and printed in definite order on a form or a set of forms. The
questionnaire is given to the respondents who are expected to read and understand the questions
and write the response in the given space meant for the purpose in the questionnaire.
MOCK INTERVIEWS
Mock interviews are basically just to save the time of both the respondents and the researcher
and along with this, it is assumed as a best means for collecting data where respondents are not
so literate to answer to question tailored in the questionnaire.
SECONDARY SOURCE OF DATA COLLECTION: Secondary Data involved in my
research were the information that I collected through Internet.

TYPE OF OUTLET
Outlet type
Convenience
Grocery
Eatery
Total

Respondents
38
45
17
100

%age
38
45
17
100%

Center For Management Studies Dharmsinh Desai University

Page 49

Dharmsinh Desai University

Outlet Type
Convenience

Grocery

Eatery

17%

38%

45%

GRAPH-1
Interpretation: from the above chart we can conclude that grocery shop (45%) followed by
convenience store (38%) are having majority of PepsiCo outlet.

Q1. How long are you in the Business of Retail?


< 1 year
8%

>1 year & < 2 year


6%

> 2 year & <3 year


20%

> 4 year

Center For Management Studies Dharmsinh Desai University

66%

Page 50

Dharmsinh Desai University

Length Of Business
70%
60%
50%
Series 1

40%
30%
20%
10%
0%
<1 year

>1 yr &< 2 yr >2 yr &< 3 yr

>4 yr

GRAPH-2

Interpretation: Above graph shows that out of 100 retailers maximum i.e. 66 were in the
business of retail above 4 years

Q2. Sales of PepsiCo products in crates in a month.

No. of crates

Respondents

%age

Center For Management Studies Dharmsinh Desai University

Page 51

Dharmsinh Desai University


1 to 2
2 to 4
4 to 6
More than 6
Total

07
12
58
23
100

07
12
58
23
100%

Sales
1 to 2

2 to 4

4 to 6

>6

7%
23%

12%

58%

GRAPH-3

Interpretation: from the above pie chart we can assume that 58% of the retailers sold the 4 to 6
crates per day followed by 23% retailers who sell more than 6 crates.

Q3. Which Brand gives you more margins?


Pepsi
19%

Coke
18%

Same
63%

Center For Management Studies Dharmsinh Desai University

Page 52

Dharmsinh Desai University

Brand margin
70%
60%
50%
Brand margin

40%
30%
20%
10%
0%
Coke

Pepsi

Same

GRAPH-4

Interpretation: study shows that maximum numbers of retailers are in the favour that both the
companies provide same amount of margin. There is slight difference between opinion about
marging that retailers provided.

Q4. Compatibility with the various policy matters of the Pepsi.


YES
45%

NO
55%

Center For Management Studies Dharmsinh Desai University

Page 53

Dharmsinh Desai University

Compatibility

NO
compatibility

YES

0%

10%

20%

30%

40%

50%

60%

GRAPH-5

Interpretation: above graph shows that maximum number of retailers are not satisfied with
pepsis policy .

Q5. Problem solving approach of PepsiCo officials.


Option
1 to 2 days
2 to 3 days

Respondents
21
15

%age
21
15

Center For Management Studies Dharmsinh Desai University

Page 54

Dharmsinh Desai University


3 to 4 days
More than 4
Total

19
45
100

19
45
100%

Problem Solving Approach


45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

Problem solving approach

1 to 2 days

2 to 3 days

3 to 4 days

more than 4 days

GRAPH-6

Interpretation: from the above chart we can conclude that PepsiCo is not considering
much focus on retailers problem.
Q6. Peak session for soft drink sale

Session
Jan. to mar.
April to June
July to sep.

Respondents
00
56
44

%age
00
56
44

Center For Management Studies Dharmsinh Desai University

Page 55

Dharmsinh Desai University


Oct. to dec.
Total

00
100

00
100%

Sessions
60
50
40
sessions
30
20
10
0
Jan to Mar.

April to june

July to sep.

Oct to Dec.

GRAPH-7

Interpretation: it is clear from the above chart that the sale of PepsiCo products is more in April
to June session
Q7. Most popular brands of PepsiCo.

Brands
Pepsi
Mirinda
7up

Respondents
08
27
07

%age
08
27
07

Center For Management Studies Dharmsinh Desai University

Page 56

Dharmsinh Desai University


Mountain dew
Slice
Total

43
15
100

43
15
100%

Popularity
50%
45%
40%
35%
30%

popularity

25%
20%
15%
10%
5%
0%
Pepsi

Mirinda

7UP

Mountain Dew

Slice

GRAPH-8

Interpretation: from the above chart we can observe that Mountain Dew (43%) followed by
Mirinda (27%) is the leading brands (in terms of sales) of PepsiCo
Q8. Behaviour of PepsiCo officials.

Behavior

Respondents

%age

Excellent
Good
Satisfactory

03
12
41

03
12
41

Center For Management Studies Dharmsinh Desai University

Page 57

Dharmsinh Desai University


Poor
Very poor
Total

31
13
100

31
13
100%

Officials Behaviour
3%

13%

12%

Excellent
Good
Satisfactory
31%

Poor
Very poor
41%

GRAPH-9

Interpretation: It is clear from the above chart that behavior of officials is not up to the mark.
Only 56% retailers are satisfied (including excellent, good & satisfactory behavior).
Q9. Did advertisement affect the sale of your outlet?

Parameter
Yes
No
Total

Respondents
66
34
100

%age
66
34
100%

Center For Management Studies Dharmsinh Desai University

Page 58

Dharmsinh Desai University

Advertisement Effectiveness
YES

NO

34%

66%

GRAPH-10

Interpretation: The above pie chart suggests that sales of PepsiCo brands are affected by
advertisement campaign.
Q10. Which type of scheme provided by PepsiCo attracts you?

Schemes
Free bottles on crate

Respondents
48

%age
48

Monopoly discount
Brands display scheme
Target based profit

31
06
15

31
06
15

Center For Management Studies Dharmsinh Desai University

Page 59

Dharmsinh Desai University


Total

100

100%

Schemes
Free bittles on Crate

Monopoly Discount

Brands display Scheme

Target based profit

15%
6%
48%
31%

GRAPH-11

Interpretation: The above chart clearly shows that 48% of the retailers like free bottles scheme
followed by 31% who prefer monopoly discount.

Q11. What is the Performance level of visi-cooler?

Performance
Level
Excellent
Good
Satisfactory
Poor
Very poor

Respondents

%age

21
58
09
09
03

21
58
09
09
03

Center For Management Studies Dharmsinh Desai University

Page 60

Dharmsinh Desai University


Total

100

100%

PERFORMANCE LEVEL

Poor; 9%

Very Poor; 3%

Satisfactory; 9%

Excellent; 21%

Good; 58%

GRAPH-12

Interpretation: from the above chart we can conclude that performance level of visi-cooler is up
to the mark. It is happen due to frequent visit of technician.
Q12. What is the Status of visi-charging on avg. customer visit?
Visi charging status
0-20%
21-40%
41-70%
More than 70%
Total

Respondents
02
34
45
19
100

Center For Management Studies Dharmsinh Desai University

%age
02
34
45
19
100%

Page 61

Dharmsinh Desai University

Status
50
45
40
35
30

%age

25
20
15
10
5
0
0-20%

21 -40%

41- 70%

MORE Than 70%

GRAPH-13

Interpretation: from the above chart we can conclude that avg. visi charging lies between 41%
to 70%. This is not up to the avg. level fixed by PepsiCo.
Q13. Retailers opinion on planogram (POG).

Option
Strictly followed

Respondents
04

%age
04

Wastage of time
Followed with

27
45

27
45

Useless

24

24

Total

100

100%

some changes

Center For Management Studies Dharmsinh Desai University

Page 62

Dharmsinh Desai University

Responses For Planogram


4%
24%
27%
Strictly followed
Wastage of time
Followed with some changes
Useless

45%

GRAPH-14
Interpretation: The above chart shows activation of planogram in which 45% of the retailers
had said that some changes is necessary followed by 27% of the retailers who said that it is
wastage of time.
Q14. Sales impact of prime location of visi-cooler.

Option

Respondents

%age

Highly increased

37

37

Medium increased

29

29

Low increased

20

20

No effect

14

14

Total

100

100%

Center For Management Studies Dharmsinh Desai University

Page 63

Dharmsinh Desai University

Prime location Impact On Sale


14%
37%
Highly
increased

20%

Medium increased
Low increased
No effect

29%

GRAPH-15
Interpretation: from the above chart we can conclude that the location of visi-cooler in outlet
play very vital role in improvement of sales.

Q15. Display of crates as a part of Merchandising in outlet.

Crate display
2 to 4
4 to 6
6 to 8
More than 8
Total

Respondents
27
42
20
11
100

%age
27
42
20
11
100%

Center For Management Studies Dharmsinh Desai University

Page 64

Dharmsinh Desai University

Merchandising
45%
40%
35%
30%

Merchandising

25%
20%
15%
10%
5%
0%
2 to 4

4 to 6

6 to 8

>8

GRAPH-16

Interpretation: from the above chart we can infer that 42% outlets are displaying the 4
to 6 crates as a part of merchandising.

CROSS TABULATION

Center For Management Studies Dharmsinh Desai University

Page 65

Dharmsinh Desai University


1) Business length * comfortable with policies Cross tabulation
Count

Comfortable with policies


Yes

Business length

no

Total

<1

>1and <2

>2and <3

11

20

>4

27

39

66

46

54

100

Total

Inference:
We can conclude that ,
The result shows that less than 1yr 75% is satisfied and more than 4yr are 52% satisfied. The
retailers are aware of various polices by Pepsi. This satisfactory at the same time needs treatment
so that more number of retailers can be satisfied

2) sales * advertisement Cross tabulation


Count

advertisement
Yes

Sales

No

Total

1 to 2

2 to 4

12

12

4 to 6

24

34

58

>6

23

23

66

34

100

Total

Inference:
We can conclude that,
Advertisement surely affects the sale at an outlet. This is because the advertisement helps people
to recognize the Brand. We can also see that almost 59% of retailers do not believe that
advertisement has any effect on sale that may be because:
Center For Management Studies Dharmsinh Desai University

Page 66

Dharmsinh Desai University

There is no other shop nearby in the market (monopoly).


The shop might be working till late night.

3) sales * Behaviour Of Officials Cross tabulation


Count

Behaviour Of Officials
Excellent

Sales

Good

Satisfactory

Poor

Very poor

Total

1 to 2

2 to 4

11

12

4 to 6

12

30

13

58

>6

23

23

13

40

31

13

100

Total

Inference:
We can conclude that,
Sales increases with the behaviour of the officials. We can see that majority of sales
person maintains good relation with retailers but the intensity is not up to the mark.
Company should provide more assistance to the retailers and help in solving their
problems. Sales person should probably create a ambiance with the retailers so that sale
increases more.

Center For Management Studies Dharmsinh Desai University

Page 67

Dharmsinh Desai University


4) sales * planogram Cross tabulation
Count

Planogram

Total
Followed with

strictly followed
Sales

wastage of time

changes

Useless

1 to 2

2 to 4

12

12

4 to 6

28

22

58

>6

23

23

28

45

22

100

Total

Inference:
We can conclude that,
Majority of retailer are satisfied with the planogram. Retailers prefer planogram with
slight change as it provides them a plethora for displaying the product and make the visible to the
customers. We can also see that outlet whos sell more than 4-6 or >6 crates/month also prefer
the planogram guidelines.

5) sales * Impact of prime location of visi cooler Cross tabulation


Count

Impact of prime location of visi cooler


Highly Inc.

Sales

Med. Inc.

low increase

Total
No effect

1 to 2

2 to 4

11

12

4 to 6

23

19

14

58

23

23

38

29

19

14

100

>6
Total

Inference:
We can conclude that,

Center For Management Studies Dharmsinh Desai University

Page 68

Dharmsinh Desai University


Location of visi cooler plays a bigger role in increasing the sale. Majority of retailer say
that sales increases with the location of cooler. Officials must provide the retailer with maximum
flexibility.
6) sales * Percentage of visi charging Cross tabulation
Count

Percentage of visi charging


0 to 20%

Sales

21 to 40%

Total

40 to 70%

>70%

1 to 2

2 to 4

12

12

4 to 6

34

19

58

>6

23

23

34

44

19

100

Total

Inference:
We can conclude that,
Higher the charging higher is the sale. Charger cooler helps retailer in increasing sales.
As we see in the table that retailer who has charging up to 70% have maximum sales. Company
should motivate and provide retailers some good schemes so that they regularly keep their cooler
charged and increase their sales.

Center For Management Studies Dharmsinh Desai University

Page 69

Dharmsinh Desai University

FINDINGS

On the basis of questionnaire I have found that sale of mountain dew is more as
compare to the other soft drink brand of PepsiCo.

Most of the retailers like free bottles scheme because it is more profitable than
monopoly & target based benefit respectively.

I was also observed that officials behaviour is not up to the mark because there are
lots of complaints by retailers regarding visit of the officials at their outlet.

Majority of the retailers are satisfied with the performance level of their visi-cooler.

It has seen that retailers are not much happy about the activation of planogram. They
think that it is affecting their sale. But majority of them follow it with some changes.

Most of the retailers stock both the products Pepsi and Coke because of consumer
demand for the product and also for the service provided by the company.

Maximum numbers of retailers are happy with Pepsi as they provide immediate
response in case of stocking and damaging.

Retailers prefer PepsiCo brand more because sales person maintain a very good
relationship with the retailer.

The most important parameter is the scheme given by Pepsi is really good.

Center For Management Studies Dharmsinh Desai University

Page 70

Dharmsinh Desai University


CONCLUSION
Services after sales of Pepsi is not up to satisfaction level is because, I found that few
retailers are active in display of Visi coolers and glow sign boards provided by the
company. But in few outlets display system is out of order or not properly working for
the last few months or a year, thus management being casual in this area.
Number of route vehicles for delivery of goods is less than the required one for proper
coverage of whole area of Jammu . Thus, just -in -time and efficient delivery is affected.
The study reveals that in prompting soft drinks in a market, advertising media like glow
sign boards, hoardings, painting etc. plays a vital role in grabbing interest of an outlets to
sell soft drinks. Some areas of Jammu region are not equipped somehow with these
advertising media. This media of advertising is used by both the companies (Pepsi &
Coca - Cola) only for its consumer. This helps the company to let the consumer know

what their product is all about.


In order to maintain their hold among retailers, Old Outlets must be benefited with more
schemes and offers from Distributors, while new outlets must be attracted by giving them
small start-up schemes and also marketing & Display materials in their outlets.

Center For Management Studies Dharmsinh Desai University

Page 71

Dharmsinh Desai University


SUGGESTIONS

Supply van from warehouse should be departed on time so that there would be no delay

in delivery of product. From this step retailers will be happier.


It is often seen that some salesmans dont intimate schemes to the retailer & few of the
retailer complaint about it. So there should be frequent visits of Customer Executives to

their respective areas to keep the shop-keepers benefited with various schemes.
Proper feedback system should be develop by its officials & ensure a randomly visit of
outlet by them. It will help to build a strong & healthy relationship between company &

retailer
Company should introduce an executive who will look the circulation of coolers and

maintenance, note down the relevant complaints.


Pepsi Company should give more schemes to retailers and promote them to keep more

stock to increase sale.


The Company should provide more coolers to the retailers maximize sale.

REFRENCES
BOOKS:

Center For Management Studies Dharmsinh Desai University

Page 72

Dharmsinh Desai University


1. KOTLER, P. & KELLER, K. 2011. Marketing Management 14th Edition, South Asia Perspective,
Prentice Hall
2. COOPER .D & SCHINDLER. 2006. Business Research Methods 9th Edition, Tata McGraw Hill

WEBSITES:
o www.Pepsico.com
o

www.Pepsizone.com

www.pepsiindia.com

www.wikipedia.com

o www.scribd.com
o http://www.friendlys.com/about-friendlys/marketing-policy

QUESTIONNAIRE

Center For Management Studies Dharmsinh Desai University

Page 73

Dharmsinh Desai University

Name of outlet:

Type of outlet:
(a) Convenience
(b) Grocery
(c) Eatery

1. How long are you in this Business of Retail


a
b
c
d

Less than 1 year


More than 1year and less than 2 year
More than 2year and less than 3 year
More than 4year

2. How much (cases/crate) you able to sell in a year/month


(_________________________________________________________

3. What kind of facilities are given by Pepsi/coke in case of


a
b

Stocking (_______________________________________________________)
Damaging (______________________________________________________)

4. Which Brand gives you more margins?


a
b
c

Pepsi
Coke
Same

Center For Management Studies Dharmsinh Desai University

Page 74

Dharmsinh Desai University

5. Are you comfortable with various policy matters of the Pepsi?


a
b

Yes
No

6. What kind of behaviour do service officials have?


a
b
c
d
e

Excellent
good
Satisfactory
Poor
Very poor

7. PepsiCo sort out your problem withina


b
c
d

1 to 2 days
2 to 3 days
3 to 4 days
more than 4 days

8. In which session sale of soft drink is more?


a
b
c
d

Jan. to Mar.
April to June
July to Sep.
Oct. to Dec.

9. Which product you sell the most from your outlet?


a
b
c
d
e

Pepsi
Mirinda
7up
Mountain Dew
Slice

10. Did the advertisement affect the sale of your outlet?


Center For Management Studies Dharmsinh Desai University

Page 75

Dharmsinh Desai University


a
b

Yes
No

11. Which type of scheme provided by PepsiCo attracts you?


a
b
c
d

Free bottles on crate


Monopoly discount
Brand Display scheme
Target based benefits

12. What is the performance level of Visi-cooler?


a
b
c
d
e

Excellent
Good
Satisfactory
Poor
Very poor

13. On an average customer visit, what is the status of Visi-charging?


a
b
c
d

0-20%
21-40%
40-70%
70% and above

14. What do you think about Planogram (POG)?


a
b
c
d

Strictly followed
Wastage of time
Followed with some changes
Useless

15. What is the impact of prime location of Visi-cooler on your sale?


a
b
c
d

Highly increased
Medium increase
Low increase
No effect

16. How many crates you display in the premise of your outlet as a part of
merchandising?
a
b

2 to 4
4 to 6

Center For Management Studies Dharmsinh Desai University

Page 76

Dharmsinh Desai University


c
d

6 to 8
more than 8

Center For Management Studies Dharmsinh Desai University

Page 77