A

Project report
On

A Study on Distribution channel of Pepsi at Hajipur

Submitted to
SAVITRIBAI PHULE UNIVERSITY OF PUNE

In partial fulfillment of the requirements for award of the degree of

MASTER OF BUSINESS ADMINISTRATION
Submitted by
NAVNEET SHUKLA
MBA (marketing)
Under the guidance of
PROF. ARCHANA BORDE

SinhgadInstitutes of Business Administration & Computer Application,

Lonavala

Academic Year 2014-2016

STUDENTS DECLARATION

I, the undersigned, hereby declare that summer internship project report entitled
Distribution channel of Pepsi at HAJIPUR. Submitted for the partial
fulfillment of the requirements for the award of Master of Business
Administration is the outcome of original study undertaken by me and the has
not formed the basis for the award of any degree, diploma or any other similar
title.

Place: HAJIPUR

Name: Navneet Shukla

MBA 2nd (Mktg.)

Date :
PERM REG NO: 2051403626

INDEX
CHAPTER N0.

CONTENT

PAGE NO.

Acknowledgement

04

Preface

05

Executive summary

06-08

01

Introduction

09-11

02

Company Profile

12-26

03

Research
methodology

27-31

04

Data Analysis

32-44

05

Findings And
Recommendation

45-47

06

Conclusion

48-49

07

Bibliography And
Questionnaire

50-53

ACKNOWLEDEMENT
A task undertaken without offering prayers to almighty and talking blessings from the elders
is not a good beginning. Likewise the work completed without acknowledging the assistance
to those who were always by my sides to make my efforts fruitful in the task left incomplete.
In the beginning, I would like to express my sincere thanks to my Institute teachers for giving
me an opportunity to take the practical experience of working life.
I convey my sincere thanks to Mr. KISHLAY KUMAR (Customer executive),
LUMBINI BEVERAGE Pvt. Ltd., HAJIPUR, BIHAR and Prof. ARACHANA

BORDE, SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION AND

COMPUTER APPLICATION. LONAVALA, PUNE.Both of them has been providing me
the proper guidance and current information throughout this summer training project
effectively and efficiently has been completed at the time of submission.
I would also like to pay thanks to all my classmates and friends and my family members for
co-operating with me and helping me to complete the project.

NAME: Navneet Shukla

PERM REG NO: 2051403626
(2014-2016)

PREFACE
Summer training project is necessary part for fulfillment of MBA course. The emphasis in the
project is providing the study and an insight into Indian FMCG Business Scenario.
The summer training project is designed to provide participation of BBA program as on the
job experience. This has given a chance to try and apply the academic knowledge and gain
insight into corporate culture. This helps in developing decision-making abilities and
emphasizes on active participation by the student.
I undertook my Project in Lumbini beverage pvt. Ltd, Hajpur, a leading Bottler and
Marketing partner of the Pepsi Foods. During the training, I had worked on the project
Distribution channel of Pepsi at Hajipur.
I gained valuable experience & knowledge during the survey. The Project consists of my
findings after tabulation of collected data, then analyzed conclusions were drawn and finally
suggestions were put forward.

EXECUTIVE SUMMARY

TITTLE: A Study on Distribution channel of Pepsi

in Hajipur.
OBJECTIVES OF THE PROJECT:

To know distribution channel strategy of Pepsi.

To know the importance of Distribution channel strategy in positioning of the product.

To study relationship of PepsiCo has with it distributors and retailers.

Perception of retailers towards the distribution channel of the PepsiCo.

SCOPE OF THE STUDY:

The main scope of this study is to ascertain the effectiveness of distribution channel of
Pepsi in hajipur and various methods to increase the sales volume of the concern. The
methods include regular information to the buyers cresting a brand position in the market
and taking measures to market the brand remain in its position. One of the important
aspects of this study is also to increase the market segment for the product.

RESEARCH METHODOLOGY:
Introduction
Research in common language refers to the search of knowledge. One can also define
research as a scientific and systematic search of relevant information on a specific topic. In
fact, research is an art of scientific investigation.

Research design
The Design of our research is descriptive as it concerns the items are to be observed and how the
information and data gathered are to be analyzed.

The good research design would collect the data economically.

Type of research:
Data Source:
Research Instrument:

Descriptive Research
Primary and Secondary data
A questionnaire was structured together the
primary information.

Research Duration:
Sampling Unit:
Sample Type:
Sample Size:
Conduct Method:
Place of study:

1 JUNE-31 JULY 2015

Distributers of PepsiCo and Retailer
Random sampling
100 respondents
Probability sampling
Hajipur, Bihar

Major Finding:

DATA ANALYSIS

Major Conclusion:
After analyzing all the aspects of the data available and giving some important
recommendations a suitable conclusion which should be derived for this study. However,
before starting the conclusion part, the objective of the research must be kept in mind so that
we can arrive at a befitting conclusion for the research problem. The primary objective of this
research was to know distribution channel of Pepsi in Hajipur and to know the importance of
Distribution channel strategy in Positioning of the product.
The Sale and Distribution Network of Pepsi is very strong and almost flawless. PepsiCo India
had the first mover advantage when it entered the market and it capitalized on that advantage
to grab the market. Franchisee based operations combined with the Companys operations
add strength to the overall presence of the Company in the market.
The Advertising Campaigns are conceived, implemented by the PepsiCo and Franchisee has
no say in that. It is very important to develop good relationship with the retailers by providing
them better services and schemes. Maintaining the good relationship with the distributors is
very important for the company because they are the main part of the distribution channel.

CHAPTER - 01

INTRODUCTION

INTRODUCTION
9

Distribution channel is the chain of businesses or intermediaries through which a good or

service passes until it reaches the end consumer. A distribution channel can include
wholesalers, retailers, distributors and even the internet. Channels are broken into direct and
indirect forms, with a direct channel allowing the consumer to buy the good from the
manufacturer and an indirect channel allowing the consumer to buy the goods from a
wholesaler. Direct channels are considered shorter than indirect ones.
The Project Distribution channel of Pepsi in Hajipur Is designed on the lines of basic
investment decisions to be taken by the senior officials of Pepsi for the purpose of
amendments in the pre-existing distribution network in order to review and strengthen the
routes. The findings of the project are very crucial for the increment of the market share of
Pepsi in the Hajipur Beverage Market.
Though the process is an ongoing one but the decisions have to be taken on a strong base,
supported by facts and figures and that too on papers. This support can only be provided with
the help of an extensive and through analysis of the market and the data collected thereof.
The Marketing Development Co-ordinator who was the lead or the project head delivered the
objectives of the project to us expressly and we had to submit the day report to him along
with the draft report. He was the in charge of the project and gave guidelines and directions to
approach the project.

10

OBJECTIVES OF THE PROJECT

To know distribution channel strategy of Pepsi.

To know the importance of Distribution channel strategy in positioning of the product.

To study relationship PepsiCo has with it distributors and retailers.

Perception of retailers towards the distribution channel of the PepsiCo.

SCOPE OF THE STUDY

The main scope of this study was mainly conducted to identify distribution channel of
PepsiCo in hajipur and various methods to increase the sales volume of the concern. The
methods include regular information to the buyers cresting a brand position in the market
and taking measures to market the brand remain in its position. One of the important
aspects of this study is also to increase the market segment for the product.

11

CHAPTER 02

C0MPANY PROFILE

COMPANY PROFILE
12

In 1893 Caleb Brahma, a young pharmacist from New Bern, North Carolina, begins
experimenting with many different soft drink concoctions; patrons and friends
Sample them at his drug store soda fountain.
In 1898 One of Caleb's formulations, known as "Brad's Drink," a combination of carbonated
water, sugar, vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola" on August 28, 1898.
Pepsi-Cola receives its first logo.
Pepsi-Cola North America, headquartered in Purchase, N.Y., is the refreshment beverage unit
of PepsiCo Beverages and Foods North America, a division of PepsiCo, Inc. PepsiCo
Beverages and Foods North America also comprises PepsiCo's Tropicana, Gatorade and
Quaker Foods businesses in the United States and Canada.
Pepsi-Cola North America's carbonated soft drinks, including: Pepsi, Diet Pepsi, Pepsi Twist,
Mountain Dew, Mountain Dew Code Red, Sierra Mist, and Mug Root Beer account for
nearly one-third of total soft drink sales in the United States.
Pepsi-Cola North America's non-carbonated beverage portfolio includes Aquafina, which is
the number one brand of bottled water in the United States, Dole single-serve juices and
SoBe, which offers a wide range of drinks with herbal ingredients.
The company also makes and markets North America's best-selling, ready-to-drink iced teas
and coffees via joint ventures with Lipton and Starbucks, respectively.
PepsiCo, Inc. is one of the world's largest food and beverage companies.
The company's principal businesses include:
Frito-Lay snacks
Pepsi-Cola beverages
Gatorade sports drinks
Tropicana juices
Quaker Foods
13

PepsiCo, Inc. was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay.
Tropicanawas acquired in 1998. In 2001, PepsiCo merged with the Quaker Oats Company,
creating the worlds fifth-largest food and beverage company, with 15 brands each
generating more than $1 billion in annual retail sales. PepsiCos success is the result of
superior products, high standards of performance, distinctive competitive strategies and the
high level of integrity of our people.
There are many who feel that Pepsi-Cola had the first move advantage in India. Little do they
know about Pepsi-Colas initial foray into Indian soft drinks industry way back in 1956?
CocaCola had entered the country just a year back in 1955. But later Pepsi-Cola withdrew
from the country in 1961 due to bottling problems. Pepsi-Cola entered India in April 1989 by
setting operation in beverages, snacks & agribusiness. At this time Parle had 70% of the
market share of the total soft drink market. Initially it faced some trouble in entering the
market due to strong resistance from most of the domestic soft drink industry and the
advocates of Swadeshi. The Indian economy was not liberalized and proved to be another
barrier. Pepsi-Cola removed these barriers by:
Promising the government to focus considerable selling efforts in the rural area to help
economic development Promising to help boost the expert of agricultural products
Offering to transfer the food processing, packaging & water treatment technology to India.

THE HISTORY OF PEPSI-COLA

14

1893: Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins
experimenting with many different soft drink concoctions; patrons and friends sample them at
his drugstore soda fountain.
1898: One of Caleb's formulations, known as "Brad's Drink," a combination of carbonated
water, sugar, vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola" on August 28, 1898.
Pepsi-Cola receives its first logo.
1902: The instant popularity of this new drink leads Bradham to devote all of his energy to
developing Pepsi-Cola into a full-fledged business. He applies for a trademark with the U.S.
Patent Office, Washington D.C., and forms the first Pepsi-Cola Company.
The first Pepsi-Cola newspaper advertisements appeared in the New Bern Weekly
Journal
1903:"Doc" Bradham moves the bottling of Pepsi-Cola from his drugstore into a rented
warehouse; he sells
Pepsi's

theme

7,968 gallons of syrup in the first year of operation.

line

is

"Exhilarating,

Invigorating,

Aids

Digestion."

1904: Bradham purchases a building in New Bern known as the "BishopFactory" for $5,000
and moves all bottling and syrup operations to this location. Pepsi is sold in six-ounce bottles.
Sales increase to 19,848 gallons.
1905: Pepsi-Cola's first bottling franchises are established in Charlotte and Durham, North
Carolina.

Pepsi receives its new logo, its first change since 1898.
1906: Pepsi gets another logo change, the third in eight years. The modified script logo is
created with the slogan, "The Original Pure Food Drink."
There are 15 U.S. Pepsi bottling plants. The Pepsi trademark is registered in Canada. Syrup
sales rise to 38,605 gallons.

15

The federal government passes the Pure Food and Drug Act, banning substances such as
arsenic, lead, barium, and uranium, from food and beverages. This forced many soft drink
manufacturers, including Coca-Cola, to change their formulas. Pepsi-Cola, being free of any
such impurities, claimed they already met federal requirements.
1907: Pepsi-Cola Company continues to expand; the company's bottling network grows to 40
franchises. Pepsi-Cola sells more than 100,000 gallons of syrup.
Pepsi trademark is registered in Mexico. Syrup sales rise to 104,026 gallons.
1908: Pepsi-Cola becomes one of the first companies to modernize delivery from horse
drawn carts to motor vehicles. Two hundred fifty bottlers in 24 states are under contract to
make and sell Pepsi-Cola.
1909: Automobile race pioneer Barney Old field endorses Pepsi-Cola in newspaper ads as "A
bully drink...refreshing, invigorating, a fine bracer before a race."
1910: The first Pepsi-Cola bottlers' convention is held in New Bern, North Carolina.
1920: Pepsi theme line speaks to the consumer with "Drink Pepsi-Cola, it will satisfy you."
1923: Pepsi-Cola Company is declared bankrupt and its assets are sold to a North Carolina
concern, Craven Holding Corporation, for $30,000.
Roy C. Megargel, a Wall Street broker, buys the Pepsi trademark, business and good will
from Craven Holding Corporation for $35,000, forming the Pepsi-Cola Corporation.

1928: After five continuous losing years, Megargel reorganizes his company as the National
Pepsi-Cola Company, becoming the fourth parent company to own the Pepsi trademark.
1931:U.S. District Court for Eastern District Virginia declares the National Pepsi-Cola
Company bankrupt, the second bankruptcy in Pepsi-Cola history.
The Loft candy company acquires the National Pepsi-Cola Company. Charles G.

16

Guth,president of Loft, assumes leadership of Pepsi and commands the reformulation of

Pepsi-Cola syrup formula.
1933: By the end of the year, Guth's new Pepsi-Cola Company is insolvent. In a series of
moves, he acquires Mega gels interest in the company, giving himself 91% ownership of
Pepsi.
1934: A landmark year for Pepsi-Cola. The drink is a hit and to attract even more sales, the
company begins selling its 12-ounce drink for five cents (the same cost as six ounces of
competitive colas). The 12-ounce bottle debuts in Baltimore, where it is an instant success.
The cost savings proves irresistible to Depression-worn Americans and sales skyrocket
nationally.
Caleb Bradham, the founder of Pepsi-Cola and "Brad's Drink," dies at 66 (May 27th, 1867February 19th, 1934)
1935: Guth moves the entire Pepsi-Cola operation to Long Island City, New York, and sets up
national

territorial

boundaries

for

the

Pepsi

bottler

franchise

system.

1936: Pepsi grants 94 new U.S. franchises and year-end profits reach $2,100,000.
1938: Walter S. Mack, Jr., V.P. of Phoenix Securities Corporation is elected President of the
Pepsi-Cola Company. Mack, who considers advertising the keystone of the soft drink
business, turns Pepsi into a modern marketing company.
1939: The "Pepsi & Pete" comic strip introduces the "Twice as much for anickel" theme in
newspapers.
Pepsi-Cola Company names Mack as CEO
The Board of Directors removes Guth from the Pepsi payroll after he plans
1940: Pepsi-Cola Company makes advertising history with "Nickel, Nickel," the first
advertising jingle ever broadcast nationwide onradio.

17

1941: The New York Stock Exchange trades Pepsi's stock for the first time.
In support of the war effort, Pepsi's bottle crown colors change to red, white, and blue.
1943:

Pepsis

theme

line

becomes

"Bigger

Drink,

Better

Taste."

1948: Corporate headquarters moves from Long Island City, New York, to midtown
Manhattan.
1950: Alfred N. Steele becomes President and CEO of Pepsi-Cola. Mr. Steele's wife,
Hollywood movie star Joan Crawford, is instrumental in promoting the company's product
line.
Pepsi receives its new logo, which incorporates the "bottle cap" look. The new logo is the
fifth in Pepsi history.
1955: Herbert Barnet is named President of Pepsi-Cola.
1959: Pepsi debuts at the Moscow Fair. Soviet Premier Khrushchev and U.S. Vice President
Nixon share a Pepsi.
1960: Young adults become the target consumers and Pepsi's advertising keeps pace with
"Now it's Pepsi, for those who think young."
1963: After climbing the Pepsi ladder from fountain syrup salesman, Donald M. Kendall is
named CEO of Pepsi-Cola Company.
Pepsi-Cola continues to lead the soft drink industry in packaging innovations, when the 12ounce bottle gives way to the 16-ounce size.
1964: Diet Pepsi, America's first national diet soft drink, debuts.
Pepsi-Cola acquires Mountain Dew from the Tip Corporation.
1965: Expansion outside the soft drink industry begins. Frito-Lay of Dallas, Texas, and
Pepsi-Cola merge, forming PepsiCo, Inc.
Military 12-ounce cans are such a success that full-scale commercial distribution begins.

18

Mountain Dew launches its first campaign, "Yahoo Mountain Dew...It'll tickle your innards."
1970: The Pepsi World Headquarters moves from Manhattan to NY.
1974: First Pepsi plant opens in the U.S.S.R.
Television ads introduce the new theme line, "Hello, Sunshine, and Hello Mountain Dew."
1977: At 37, marketing genius John Sculley is named President of Pepsi-Cola.
1978: The Company experiments with new flavors. Twelve-pack cans are introduced.
1980: Pepsi becomes number one in sales in the take home market.
1983: Mountain Dew launches the "Dew it to it" theme.
1984: Pepsi advertising takes a dramatic turn as Pepsi becomes "the choice of a New
Generation."
1985: After responding to years of decline, Coke loses to Pepsi in preference tests by
reformulating. However, the new formula is met with widespread consumer rejection, forcing
the re-introduction of the original formulation as "Coca-Cola Classic."
The cola war takes "one giant sip for mankind," when a Pepsi "space can" is successfully
tested aboard the space shuttle.
1986: Chairman Donald M. Kendall retires and is succeeded by D. Wayne Calloway.
Pepsi-Cola acquires Mug Root Beer.
1987: Pepsi-Cola President Roger Enrico is named President/CEO of PepsiCo Worldwide
Beverages.
1988: Craig Weather up is appointed President/CEO of Pepsi-Cola Company.
1989: Pepsi lunges into the next decade by declaring Pepsi lovers "A Generation Ahead."
1990: American Music Award and Grammy winner rap artist Young MC writes and performs
songs exclusively for national radio ads for Pepsi. Ray Charles joins the Pepsi family by
endorsing Diet Pepsi. The slogan is "You Got the Right One Baby."

19

1991: Craig E. Weather up is named CEO of Pepsi-Cola North America, as Canada becomes
part of the company's North American operations.
Pepsi introduces the first beverage bottles containing recycled polyethylene terephthalate (or
PET) into the marketplace. The development marks the first time recycled plastic is used in
direct contact with food in packaging.
1992: Pepsi-Cola launches the "Gotta Have It" theme which supplants the longstanding
"Choice of a New Generation."
Pepsi-Cola and Lipton Tea Partnership is formed. Pepsi will distribute single serve Lipton
Original and Lipton Brisk products.
Crystal Pepsi: a refreshing, clear soda that is caffeine free has 100% natural flavors, no
preservatives and is low in sodium, goes national.
Mountain Dew introduces the popular theme line, "Get Vertical."
1993: Brand Pepsi introduces its slogan, "Be Young. Have Fun. Drink Pepsi".
Pepsi-Cola profits surpass $1 billion.
1994: New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi CEO
Craig Weather up explaining the relationship between freshness and superior taste to
consumers.
Pepsi Foods International and Pepsi-Cola International merge, creating the PepsiCo Foods
and Beverages Company.
1995: In a new campaign, the company declares "Nothing else is a Pepsi" and takes top
honors in the year's national advertising championship.
1996: In February of this year, Pepsi makes history once again, by launching one of the most
ambitious entertainment sites on the World Wide Web. Pepsi World eventually surpasses all
expectations, and becomes one of the most landed and copied, sites in this new media, firmly
establishing Pepsi's presence on the Internet.

20

1997: In the early part of the year, Pepsi pushes into a new era with the unveiling of the
Generation Next campaign. Generation Next is about everything that is young and fresh; a
celebration of the creative spirit. It is about
1998: Pepsi celebrates its 100th anniversary.
PepsiCo. Chairman and CEO Roger A. Enrico donate his salary to provide scholarships for
children of PepsiCo employees.
Pepsi introduces Pepsi One - the first one calorie drink without that diet taste!
2000: Although Pepsi is a great place to work, Steven Truitt (aka 'struitt') takes his skills and
hard work elsewhere (for more money of course!), therefore putting an end to his Pepsi page!
Throughout the next few decades, the drink continued to flourish, expanding its presence
around the globe and battling soda industry leader Coca Cola for market share with
aggressive marketing campaigns and promotion, including its famous Pepsi Generation and
"Pepsi Challenge" ad campaigns.
In 2015: the company announced it would discontinue using aspartame as the sweetener in
Diet Pepsi, and replaced it with sucralose, another artificial sweetener. The move was pitched
as addressing customer concerns about the health risks of aspartame.

21

ORGANIZATIONAL STRUCTURE

Chairma
n
Preside
nt
Unit
Manage
r
TDM
ADC
Custome
r
Executiv
e
Distribut
ers A,B,C

Custome
r
Executiv
e
Distribut
ers E,F

Route
Agents

Route
Agents

Helper

Helper

22

PEPSI BRANDS AND PACK PROFILE

BRAND PACKS:
The products are generally available in three kinds of packaging:

GLASS BOTTLES

DISPOSABLE CANS

PET JARS
23

FLAVOUR PACKS

COLA (Carbonated Soft Drink) :

24

 PEPSI

MIRANDA ORANGE

MOUNTAIN DEW

25

 7UP

MANGO :
SLICE MANGO

MINERAL WATER :
AQUAFINA

26

CHAPTER 03

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
27

Introduction
Research in common language refers to the search of knowledge. One can also define
research as a scientific and systematic search of relevant information on a specific topic. In
fact, research is an art of scientific investigation.

MeaningandDefinition
Research = Re + Search. That is search after search and search. The purpose of such repeated
search is to thoroughly understand the problem, issue, or phenomenon and find the apt and
effective solution to the problem or strategy to deal with the issue or the phenomenon. Such
solution or strategy adds to our stock of knowledge in dealing with the problem or the issue.
In common parlance, research refers to a search for knowledge. Research simply put, is an
Endeavour to discover answers to problems (intellectual and practical) through the
application of scientific method. The Websters International Dictionary gives a very
inclusive definition of research as as careful, critical inquiry or examination in seeking facts
or principles, diligent investigation in order to ascertain something". The 20th Century
Chamber Dictionary defines research as: a careful search or systematic investigation towards
increasing the sum of knowledge.
Research is essentially a systematic enquiry seeking facts through objective, verifiable
methods in order to discover the relationship among them and to deduce from them broad
principles or laws. Research is really a method of critical thinking. It comprises defining and
redefining problems, formulating hypothesis or suggested solutions, collecting, organizing
and evaluating data, making deductions and making conclusions and at last, carefully testing
the conclusions to determine whether they fit the formulated hypothesis. Thus the term
'Research* refers to a critical, careful and exhaustive investigation or inquiry or
experimentation or examination having as its aim the revision of accepted conclusions, in the
light of newly discovered facts.

Type of Research Design

28

In this survey, descriptive research is used. Descriptive research: seeks to determine the
answer to who what, where, how questions. It is used to describe the characteristics of certain
group such as age, sex, occupation income. Descriptive studies are well structured. Since the
existence of the problem was uncertain in this industry.

Research Approach
There are two main type of Research: Qualitative and Quantitative. Qualitative research uses
field research methods, primarily case studies and participant observation within natural
settings.
Qualitative research places great emphasis on methodology, on procedure, and on statically
measures of validity. This report should be organized to show a clear progression from theory
to operation of concepts.
For this project the Quantitative and Qualitative approach was chosen because the knowledge
of the research problem is also depend upon behavior of respondent.

Objectives of Research
The Main objective of research in this project was to get the detailed analysis of the market
position anddistributionchannelofPepsi in hajipur.

Research Problem
The study was conducted to know the problems faced by the retailers and distributors and
their perception towards the company and the customers perception towards the PepsiCo.

Research Design
29

The Research design specifies the method and procedure for acquiring the information
needed. It is the overall pattern or framework of the project that stipulates what information is
to be collected from which sources and by what procedures.
The Design Of our research is descriptive as it concerns the items are to be observed and how the
information and data gathered are to be analyzed.

The good research design would collect the data economically.

Type of research:
Data Source:
Research Instrument:

Descriptive Research
Primary and Secondary data
A questionnaire was structured together the
primary information.

Research Duration:
Sampling Unit:
Sample Type:
Sample Size:
Conduct Method:
Place of study:

1 JUNE-31 JULY 2015

Distributers of PepsiCo and Retailer
Random sampling
100 respondents
Probability sampling
Hajipur, Bihar

Sample Design

30

For the project we used probability sampling that can also be termed as we only targeted the
shops which sells waters.

Methods of Data Collection

The data collected for the project was primary data. The data was collected through personals
interviews, which was in the form of direct personal investigation. The interview was very
structured because we only ask the question as per the EDS format.

Types of data
1. Primary data
2. Secondary data

THE MARKET RESEARCH PROCESS

The entire project was divided into five phases and each phase had its individual significance
and supplemented each other.

31

CHAPTER 04

DATAANALYSIS

FINDING AND ANALYSIS

32

Data Analysis
Q.1.PepsiCo have good distribution channel?
TABLE SHOWING WHAT RESPONDENT THINK ABOUT PEPSICO
DISTRIBUTION CHANNEL
Sl NO.

Particulars

No of Respondent

Percentage

Strong Agree

59

59

Agree

23

23

Cant say

10

10

Disagree

08

08

Total

100

100

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

9%
10%

59%

23%

Interpretation: The data shows 59% Strong Agree, 23% Agree, 10% Cant say, 08
Disagree. By this data that company have good distribution channel but should focus more on
their distribution channel.

Q.2.Distribution channel has an important role in positioning of the product?

33

TABLE SHOWING DOES DISTRIBUTION CHANNEL IMPORTANT

FOR POSITIONING THE PRODUCT
Sl NO.

Particulars

No of Respondent

Percentage

Strong Agree

33

33

Agree

43

43

Cant say

05

05

Disagree

19

19

total

100

100

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

19%
33%
5%

43%

Interpretation: In this data 33% strong agree, 43% Agree, 05% cant say and19%
Disagree it shows that our objective is fulfilled by this research and we can say that if we
have to promote our product then we should have strong distribution channel.

Q.3. You being provided the V.C coolers by the company?

34

TABLE SHOWING THAT RETAILERS ARE PROVIDED THE V.C COOLERS OR

NOT.
Sl NO.

Particulars

No of Respondent

Percentage

Yes

72

72

No

28

28

Total

100

100

28%

72%

INTERPRETATION: It means company is focusing on all retailers that major concerns for
the organization. 72% of the retailers having the V.C coolers which is given by the company
but 28% of them dont have because they are smaller retails where sales are very less, also
some of the retailers puts different brands into the same V.C coolers by which also they loss
their V.C coolers.

Q4. PepsiCo has good relationship with distributors/retailers?

35

TABLE SHOWING THE RELATIONSHIP OF THE COMPANY WITH THE

DISTRIBUTORS AND RETAILORS
Sl NO.

Particulars

No of Respondent

Percentage

Strong Agree

59

59

Agree

23

23

Cant say

10

10

Disagree

08

08

Total

100

100

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

9%
10%

59%

23%

INTERPRETATION: In this data 59% Strong agree, 23% Agree, 10% Cant say and 08%
Disagree. So it shows that company should thing that how can they better relationship with
every retailers and distributors.

Q.5.Perception of retailers/distributors towards the PepsiCo distributor channel?

36

TABLE SHOWS THE PERCEPTION OF RETAILERS / DISTRIBUTORS TOWARDS

THE PEPSICOS DISTRIBUTION CHANNEL
Sl NO.

Particulars

No of Respondent

Percentage

Strong Agree

30

30

Agree

55

55

Cant say

09

09

Disagree

06

06

Total

100

100

1st Qtr

2nd Qtr

9%

3rd Qtr

4th Qtr

6%
30%

55%

INTERPETATION: In this data 33% Strong Agree, 55% Agree, 09% Cant say and 06%
Disagree. So here area of concern that how company can make happy those respondent who
are think that PepsiCo have worst/bad Distribution channel and how can company develop
good distribution and change the perception of retailers and distributors.

Q.6.How much time, company takes to mark reach the product at retailer shop?
37

TABLE SHOWS IN HOW MUCH TIME RETAILER SHOP GET THEIR PRODUCTS
Sl NO.

Particulars

No of Respondent

Percentage

One day

64

64

Three day

25

25

One week

11

11

One month

00

00

Total

100

100

11%

1st Qtr

25%
2nd Qtr

3rd Qtr

4th Qtr

64%

INTERPRETATION: In this data the 64% retailers say One day, 25% retailers say Three
day and 11% are say One week. So here areas of concern that how company con make happy
those respondent who dont receive their stock in time. They should provide all the retailers
on time stock which help to make good distribution channel and well as build the positioning
of the company.

Q7.If better scheme is given then under you replace dealership with coke.

38

TABLE SHOWS THAT IF BEETER SCHEME IS PROVIDED BY COKE TO THE

DISTRIBUTER OF PEPSICO CAN THEY SWITCH
Sl NO.

Particulars

No of Respondent

Percentage

Strong Agree

24

24

Agree

48

48

Cant say

19

19

Disagree

09

09

total

100

100

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

10%
24%
19%

48%

INTERPRETATION: In this data 24% Strong agree, 48% Agree, 19% Cant say and 09%
Disagree. So it shows that if company has to maintain good relationship with retailers and
distributors then company will be focus on better services and schemes.

Q.8.You are having logistics facility of our PepsiCo Company or own?

39

TABLE SHOWS THE STATUS OF THE LOGISTIC FACLITY

Sl NO.

Particulars

No of Respondent

Percentage

Own

72

72

Company

28

28

Total

100

100

28%

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

72%

INTERPRETATION: In this data 72% retailers say Own and 28% retailers say Company.
SO 72% of the respondents having their own logistics which is good for both the company
and retailers because retailer can easily got the stock by their distributers and can fulfill the
customer wants but if distributers dont have owe logistics then time to reach the product to
the retailer.

Q.9.Does Logistic Facility affects the Distribution Channel?

40

TABLE SHOWS THERE IS AN AFECT OF LOGISTIC FACILTY ON

DISTRIBUTION CHANNEL
Sl NO.

Particulars

No of Respondent

Percentage

Strong Agree

33

33

Agree

58

58

Cant say

09

09

Disagree

00

00

total

100

100

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

9%
33%

58%

Interpretation: In this data 33% of retailers Strong agree, 58% of retailers Agree and 09
Cant say. So it shows that Company and the distributor must have best logistic facility to
deliver the stock and maintain a good relationship with retailers.

41

Q.10. Perception of respondent towards the PepsiCo distribution channel if V.C coolers
provided by the company.
TABLE SHOWS THE PERCEPTION OF RESPONDENT TOWARDS PEPSICO IF
V.C COOLERS IS PROVIDED BY THE COMPANY
Sl NO.

Particulars

No of Respondent

Percentage

Excellent

36

36

Good

57

57

Bad

07

07

Worst

00

00

Total

100

100

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

7%
36%

57%

Interpretation: In this data the 36% retailers say Excellent, 56% Good and 07% Bad. So
PepsiCo have good distribution channel because they are giving V.C cooers to the retailers,
they should provide the v.c coolers to the entire retailer.

Q.11.Do you easily get your demanded product which you given order?
42

TABLE SHOWS DO THE RETALERS EASILY GETS THEIR PREFERED BRAND

IN MARKET
Sl NO.

Particulars

No of Respondent

Percentage

Yes

89

89

No

11

11

Total

100

100

11%

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

89%

Interpretation: In this data 89% retailers are say Yes and 11% retailers are saying No. So
it proves that PepsiCo is having a good distribution channel because retailers are find out
their order product in the retailer shop.

43

Q.12.Why you prefer this brand?

TABLE SHOWS THAT FACTOR FOR CHOOSING BRAND
Sl NO.

Particulars

No of Respondent

Percentage

Availability

11

11

Advertisement

44

44

Customer demand

43

43

Others

02

02

total

100

100

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

2% 11%

43%
43%

INTERPRETATION: In this data 11% Availability, 44% Advertisement, 43% Customer

demand and 02% Other. So this proves that advertisement also plays a major role in attracting
the retailers and market demands to prefer retailers to choose the brand.

44

CHAPTER 05
FINDINGS AND RECOMMENDATION

45

FINDINGS AND RECOMMENDATION

FINDING

Some retailers are unable to get the services which are provided by the company.

There are some retailers are not happy with services provided by the distributors and
the company.

There is a gap between the retailers and the company.

Distributers are not satisfied with the services like margins, product availability and
credit facility.

Most of the time desired products are not available or not chilled due to unavailability
of visi coolers.

In most of the mix outlet company has not provided its Visi Cooler, so it is becoming
the major cause for not getting fulfill of the demand. Because retailers are promoting
that brand to consumer which company is satisfying them of Visi Cooler, Schemes
and Relationship etc.?

Retailers are not happy with the MDC (Marketing Development Coordinator) of
PepsiCo. Retailers are saying that what they promise, do not fulfill that.

Marinating good relationship with the retailers as well distribution is very important
for having a strong distribution channel.

Visi cooler have an important role in enhancing the distribution channel and policy.

Time concern is very important in good distribution channel, it means providing

product at retailers door within a time.

Company should provide better facility of logistics because without logistics any
company cannot maintain good distribution strategies.

46

RECOMMENDATION
This is one of the most important and most difficult parts of the study. I arrived at certain
recommendations for PepsiCo India after the analysis of the data. Some of the important
recommendations are as follows.

There should be and correct feedback from the retailers on the performance of
salesmen. This will help improve their efficiency and accountability. Moreover, this
will also help in the confusing that the retailers have at times becomes the salesman
does not explain the schemes properly.

As already mentioned V.C. coolers are a major reason of dissatisfaction among

retailers. The periodical maintenance check of V.C.coolers is done at three months.
This should be done at interval of 45 days or 60 day instead of the current practice of
90 days.

Company should have better logistics facility for making reach the product at
retailers door at right time.

Marketing Development Coordinators/Marketing Executives/Sale Executives of the

company must focus more for marking better relationship with retailers.

Company should provide visi cooler to every retailer. Because who is having visi
cooler of which company they are promoting the same brand to the consumer.

Company should focus on the retailer demand preferences and launch new product
according to the market demand and there need.

47

CHAPTER 06

CONCLUSIONS

48

CONCLUSION

After analyzing all the aspects of the data available and giving some important
recommendations a suitable conclusion which should be derived for this study. However,
before starting the conclusion part, the objective of the research must be kept in mind so that
we can arrive at a befitting conclusion for the research problem. The primary objective of this
research was to know distribution channel of Pepsi in Hajipur and to know the importance of
Distribution channel strategy in Positioning of the product. The data collected provided a
sound base for understanding the overall organizational set up of PepsiCo in India. By
analyzing the data and the literature review, following conclusion was inferred:
The Sale and Distribution Network of Pepsi is very strong and almost flawless. PepsiCo India
had the first mover advantage when it entered the market and it capitalized on that advantage
to grab the market. Franchisee based operations combined with the Companys operations
add strength to the overall presence of the Company in the market.
Franchisee takes care of its operations and PepsiCo does not interfere in its operations. The
Franchisee is required to report to the company at specific time intervals.
The Advertising Campaigns are conceived, implemented by the PepsiCo and Franchisee has
no say in that. It is very important to develop good relationship with the retailers by providing
them better services and schemes. Maintaining the good relationship with the distributors is
very important for the company because they are the main part of the distribution channel.
Public relation is also critically important in this industry.

49

CHAPTER 07

BIBLIOGRAPHY AND
QUESTIONARIES

50

BIBLIOGRAPHY
Reference Book:
1. MARKETING MANAGEMENT
KOTLER PHILIP
Pearson Education Singapore 12th edition
2. MARKETING OF PRINCIPLE
GARY ARMSTRONG
Pearson Education 11th edition
3. RESEARCH METHODOLOGY
KOTHARI C. R.
New age international publisher (DELHI)
2nd revised edition 2004 reprint 2008
4. MAGAZINES:
i.
Advertising Management
ii.
Business India
iii.
Business Today
iv. Business World
5. WEBSITE:
1. http://www.pepsiworld.com
2. http://www.pepsico.com

ANEXURE
51

QUESTIONNAIRE
Name

____________________________________

Address

____________________________________
____________________________________

Contact No.

____________________________________

Q.1.Does PepsiCo have good distribution channel?

a. Strongly agree b. Agreec.Cant say d.Strongly disagree c.Disagree
Q.2.DoesDistribution channel has an important role in positioning of the product?
a. Strongly agree b. Agree c. Cant say d. Strongly disagree c.Disagree
Q.3.Are you being provided the V.C.coolors by the company?
a.Yes

b.No

Q.4.Does PepsiCo has good relationship with the distributors/retailers?

a.Strongly agree b. Agree c. Cant say d.Disagree
Q.5.Perception of retailers/distributors towards the PepsiCos Distribution Channel?
a. Excellent

b.Good

c.Bad

d. Worst

Q.6.How much time, Company takes to reach the product at retailer shop?
a. One day

b.3 day

c. 2 day d. One week e. One month

Q.7.If better scheme is given then under youreplacedealership with coke.

a.Strongly agree b. Agree c. Cant say d. Strongly disagree e.Disagree
.
Q.8.Are you provided with logistics facility of our PepsiCo Company or using own
a.Own

b.Company

Q.9.Does Logistics facility affects the Distribution Channel?

52

a.Strongly agree b. Agree c. Cant say d. Strongly disagree e.Disagree

Q.10.Perception of retailers/distributors towards the PepsiCo Distribution channel if
V.Ccoolers provided by the company.
a.Excellent

b.Good

c.Bad

d.Worst

Q.11. Do youeasily get your demanded product which you given order?
a.Yes

b.No

Q.12.Why you prefer this brand?

a. Availability

b. Advertisement c. Customer demand d.Others.

Q.13. Have you any dissatisfaction regarding the product in distribution. It yes then why?

THANK YOU
Place: - ..
Date: -

53