PROJECT REPORT

ON

MARKETING AND SALES PROMOTION

OF PEPSI

Submitted in partial fulfillment of the requiremnets

for the award of the degree of
BACHELOR OF BUSINESS ADMINISTRATION

Submitted To:
MOHD. IBRAHIM

Submitted By:
MUKESH KUMAR ARYA
Enrollment No.: 62323012

DIRECTORATE OF DISTANCE EDUCATION

PUNJAB TECHNICAL UNIVERSITY
JALANDHAR

CERTIFICATE
The project entitled Marketing And Sales Promotion of Pepsi is hereby
approved as a bonafide work carried out and presented by Mukesh Kumar
Arya in a manner satisfactory to warrant it acceptance to the degree after
which it has been submitted.
It is understood that by this the undersigned do endorse or approve any
statement made, opinion expressed or conclusion drawn therein, but approve
the project work only for which it has been submitted.

Signature of the Teacher

ACKNOWLEDGEMENT
I express my sincere regards and thanks to all my respected teachers
who directly or indirectly helped in successfully developing /
executing the project in question. It wont be out of place to mention
that the process of making the project has been both educative as
well as truly joyful experience.
Hereby only I thank to my parents, without their unquestioning
blessings and supports I would not have been here today writing
these words.

PREFACE
Summer project is necessary part for fulfillment of BBA 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 PEPSICO INDIA HOLDINGS Pvt. Ltd Delhi a
leading Bottler and Marketing partner of the Pepsi Foods. During the training, I had
worked on the project Marketing Strategies & Sales Promotion in Pepsi
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.

CONTENTS
1.

Preface

2.

Executive summary

3.

Company profile & history

4.

Products profile

5.

Credentials

6.

Objectives

7.

Research methodology

8.

Findings & observations

9.

Analysais

10.

Recommandations

11.

Limitations

12.

Key areas

13.

Conclusions

14.

Questionnaire

15.

Bibliography

EXECUTIVE SUMMARY
The distribution network of PEPSI is well known for its efficiency but
company constantly strives for the betterment of their distribution network system.
Emphasis of our study was to focus on the customer of company i.e., the retailers.
The Retail Mapping of Delhi is an integral step for the assessment,
development and betterment of this system. The distribution system not only
comprises the movement of the products but also incorporates the merchandising of
the product, which is very broad in its purview.
The project incorporates the analysis of the performance of PEPSI and probing
into opportunities of increasing the market share in Delhi. The entire process had to be
in an organized manner in order to deliver meaningful results for the purpose of
decision-making. The project was that of market research with surveys and
observations as its major phases with the objective of gathering of all important
information material for strengthening the position of PEPSI in Delhi.
PEPSI boasts of having the maximum market share in the beverage segment in
Delhi. and is in constant process for the betterment of its product performance and
customer as well retailers satisfaction.

THE COMPANY PROFILE: PEPSI CO.

Caleb Bradham a New Bern N.C druggist who formulated Pepsi Cola founded Pepsi
Cola Beverage business at turn of the century. Pepsi Cola Company now produces and
markets nearly 200 refreshment beverages to retail, restaurants and food service
customers in more then 190 countries and territories around the world and generates
revenue of over 18 billion dollars PepsiCo World Headquarters is located in Purchase,
New York.
Pepsi Co. is the world leader in the food chain business. It consists of many
companies amongst which the prominent ones are Pepsi Cola, Frito-lay, Pepsi food
international, Pizza-hut, KFC and Taco bell. The group is presently into three most
profitable businesses namely, Beverages Snacks foods and Restaurants.
The beverages segment primarily market it Pepsi diet, Pepsi Mountain Dew and other
brands worldwide and 7UP outside the U.S.market. They are positioned in close
competition with Coca Cola inc. of USA.
The Snacks food divisions manufacture and distribute and markets others snacks
worldwide.
The restaurant segment primarily consists of the operations of the worldwide PizzaHut, Taco bell and KFC chains PFS, PepsiCos restaurant distribution operation,
supplies to Company owned and Franchise restaurants in the U.S.
When Coca Cola changed its formula in 1985, Pepsi Stepped up its competition with
its long time archrival claiming victory in the Cola-wars. Coke and Pepsi expended
their rivalry to tea in 1991 when Pepsi formed a venture with No.1 Lipton in response
to Cokes announced venture with Nestle (Nestea).

Although Pepsi holdings over the years have become diverse in such fields as the
Snacks industry and Restaurants industry, this portfolio will discuss its core business
and its highly successful business of Beverages. The soft drink industry customer base
is probably the widest and deepest base in a world that is flooded with some many
categories. According to Beverage Digest the customer base for soft drinks is a
whopping 95% of regular users in the United States. This represents a large field of
potential customers for Pepsi Cola.
Pepsi prefers to segment itself as the beverage choice of the New Generation,
Generation Next, or just as the Pepsi Generation. These terms adopted in
Pepsis advertising campaigns are referring to the markets that marketers refer to as
Generation X. The Generation X consumer is profiled to be between the ages of 18 to
29. They have high expectations in life and are very mobile and active. They adopt a
lifestyle of living for today and not worrying about long-term goals. Those Pepsis
main emphasis on this segment they also have a focus on the 12 to 18 year old market.
Pepsi believes if they can get this market to adopt their product then they could
establish a loyal customer for life.
Pepsi Cola throughout its 100 years of existence has developed much strength. One of
the strengths that has developed Pepsi into such a large corporation is a strong
franchise system. The strong franchise system was the backbone of success along with
a great entrepreneur spirit. Pepsis franchise system and distributors is credited to
bring Pepsi from a 7,968 gallons of soda sold in 1903 to nearly 5 billion gallons in the
year of 1997.
Pepsi also has the luxury to spend 225 million dollars in advertising a year. This
enormous ad budget allows Pepsi to reinforce their products with reminder

advertising and promotions. This large budget also allows Pepsi to introduce new
products and very quickly make the consumer become aware of their new products.
Pepsi also has had the good fortune of making very wise investments. Some of the
best investments have been in their acquiring several large fast food restaurants. They
have also made wise investments in snack food companies like Frito Lay, which at
present time is the largest snack company in the world. Probably high on the list of
strengths is Pepsis beverage line up.
Pepsi has four soft drinks in the top ten beverages in the world. These brands are
Pepsi, Mountain Dew, Diet Pepsi, and Caffeine Free Diet Pepsi. Some other strong
brands are All Sport, Slice, Tropicana, Starbucks, Aquafina and a license agreement
with Ocean Spray Juices.

THE HISTORY OF PEPSI-COLA

Pepsi was first made in New Bern, North Carolina in the United States in the early
1890s by pharmacist Caleb Bradham. In 1898, "Brad's drink" was changed to "PepsiCola" and later trademarked on June 16, 1903. There are several theories on the origin
of the word "pepsi".
The only two discussed within the current PepsiCo website are the following:
Caleb Bradham bought the name "Pep Kola" from a local competitor and changed it
to Pepsi-Cola.
"Pepsi-Cola" is an anagram for "Episcopal" - a large church across the street from
Bradham's drugstore. There is a plaque at the site of the original drugstore
documenting this, though PepsiCo has denied this theory.
The word Pepsi comes from the Greek word "pepsi" (), which is a medical term,
describing the food dissolving process within one's stomach. It is also a medical term,
that describes a problem with one's stomach to dissolve foods properly.
Another theory is that Caleb Bradham and his customers simply thought the name
sounded good or the fact that the drink had some kind of "pep" in it because it was a
carbonated drink, they gave it the name "Pepsi".
It was made of carbonated water, sugar, vanilla, rare oils, and kola nuts. Whether the
original recipe included the enzyme pepsin is disputed.
In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore into a rented
warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was
sold in six-ounce bottles and sales increased to 19,848 gallons. In 1924, Pepsi

10

received its first logo redesign since the original design of 1905. In 1926, the logo was
changed again. In 1929, automobile race pioneer Barney Oldfield endorsed PepsiCola in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer before
a race".
In 1929, the Pepsi-Cola Company went bankrupt during the Great Depression- in
large part due financial losses incurred by speculating on wildly fluctuating sugar
prices as a result of World War I. Assets were sold and Roy C. Megargel bought the
Pepsi trademark. Eight years later, the company went bankrupt again. Pepsi's assets
were then purchased by Charles Guth, the President of Loft Inc. Loft was a candy
manufacturer with retail stores that contained soda fountains. He sought to replace
Coca-Cola at his stores' fountains after Coke refused to give him a discount on syrup.
Guth then had Loft's chemists reformulate the Pepsi-Cola syrup formula.
Rise in popularity
During the Great Depression, Pepsi gained popularity following the introduction in
1929 of a 10-ounce bottle. Initially priced at 10 cents, sales were slow, but when the
price was slashed to five cents, sales increased substantially. With a radio advertising
campaign featuring the jingle "Pepsi cola hits the spot / Twelve full ounces, that's a lot
/ Twice as much for a nickel, too / Pepsi-Cola is the drink for you," Pepsi encouraged
price-watching consumers to switch, obliquely referring to the Coca-Cola standard of
six ounces a bottle for the price of five cents (a nickel), instead of the 12 ounces Pepsi
sold at the same price. Coming at a time of economic crisis, the campaign succeeded
in boosting Pepsi's status. In 1936 alone 500,000,000 bottles of Pepsi were consumed.
From 1936 to 1938, Pepsi-Cola's profits doubled.

11

Pepsi's success under Guth came while the Loft Candy business was faltering. Since
he had initially used Loft's finances and facilities to establish the new Pepsi success,
the near-bankrupt Loft Company sued Guth for possession of the Pepsi-Cola
company. A long legal battle, Guth v. Loft, then ensued, with the case reaching the
Delaware Supreme Court and ultimately ending in a loss for Guth. Loft now owned
Pepsi, and the two companies did a merger, then immediately spun off the Loft
company.
Niche marketing
1940s advertisement specifically targeting African Americans.
Walter Mack was named the new President of Pepsi-Cola and guided the company
through the 1940s. Mack, who supported progressive causes, noticed that the
company's strategy of using advertising for a general audience either ignored African
Americans or used ethnic stereotypes in portraying blacks. He realized African
Americans were an untapped niche market and that Pepsi stood to gain market share
by targeting its advertising directly towards them. To this end, he hired Hennan Smith,
an advertising executive "from the Negro newspaper field" to lead an all-black sales
team, which had to be cut due to the onset of World War II. In 1947, Mack resumed
his efforts, hiring Edward F. Boyd to lead a twelve-man team. They came up with
advertising portraying black Americans in a positive light, such as one with a smiling
mother holding a six pack of Pepsi while her son (a young Ron Brown, who grew up
to be Secretary of Commerce) reaches up for one. Another ad campaign, titled
"Leaders in Their Fields", profiled twenty prominent African Americans such as
Nobel Peace Prize winner Ralph Bunche and photographer Gordon Parks.

12

Boyd also led a sales team composed entirely of African Americans around the
country to promote Pepsi. Racial segregation and Jim Crow laws were still in place
throughout much of the U.S., so Boyd's team faced a great deal of discrimination as a
result, from insults by Pepsi co-workers to threats by Ku Klux Klan. On the other
hand, they were able to use racism as a selling point, attacking Coke's reluctance to
hire blacks and support by the chairman of Coke to segregationist Governor of
Georgia Herman Talmadge. As a result, Pepsi's market share as compared to Coke's
shot up dramatically. After the sales team visited Chicago, Pepsi's share in the city
overtook that of Coke for the first time.
This focus on the African American market caused some consternation within the
company and among its affiliates. They did not want to seem focused on black
customers for fear white customers would be pushed away. In a meeting at the
Waldorf-Astoria Hotel, Mack tried to assuage the 500 bottlers in attendance by
pandering to them, saying, "We don't want it to become known as the nigger drink."
After Mack left the company in 1950, support for the black sales team faded and it
was cut.
Marketing
A large advertisement made to resemble a Pepsi cup at the theme park, Nickelodeon
Universe inside the Mall of America.
The first of many new designs of Pepsi cans which were released in 2007.
In 1975, Pepsi introduced the Pepsi Challenge marketing campaign where PepsiCo set
up a blind tasting between Pepsi-Cola and rival Coca-Cola. During these blind taste
tests the majority of participants picked Pepsi as the better tasting of the two soft

13

drinks. PepsiCo took great advantage of the campaign with television commercials
reporting the test results to the public.
In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy. By
2002, the strategy was cited by Promo Magazine as one of 16 "Ageless Wonders" that
"helped redefine promotion marketing."
In 2007, PepsiCo redesigned their cans for the fourteenth time, and for the first time,
included more than thirty different backgrounds on each can, introducing a new
background every three weeks.
Celebrity endorsers
Like Coca-Cola, Pepsi and its associated beverages have had various celebrity
endorsers and continue to use them.
Slogans :1939: "Twice as Much for a Nickel"
1950: "More Bounce to the Ounce"
1950: "Any Weather is Pepsi Weather"
1957: "The Light Refreshment"
1958: "Be Sociable, Have a Pepsi"
1961: "Now It's Pepsi for Those Who Think Young"
1963: "Come Alive, You're in the Pepsi Generation".
1967: "(Taste that beats the others cold) Pepsi Pours It On".

14

1969: "You've Got a Lot to Live, and Pepsi's Got a Lot to Give"
1975: "Have a Pepsi Day"
1977: "Join the Pepsi People (Feeling Free)"
1980: "Catch That Pepsi Spirit" David Lucas composer
1981: "Pepsi's got your taste for life"
1983: "Pepsi Now! Take the Challenge!"
1984: "The Choice of a New Generation"
1986: "We've Got The Taste" (Commercial with Tina Turner)
1990: "You got the right one Baby UH HUH"
1991: "Gotta Have It"/"Chill Out"
1992: "Be Young, Have Fun, Drink Pepsi"
1995: "Nothing Else is a Pepsi"
1996: "Pepsi:There's nothing official about it" (During the Wills World Cup(Cricket)
held in India/Pakistan/Srilanka)
1997: "GeneratioNext"." With The Spice Girls "
1998: "Yeh Dil Mange More"(In Hindi meaning "My heart wants more")
1999: "Ask for More"/"The Joy of Pepsi-Cola" (Commercial with Britney
Spears/Commercial with Mary J. Blige)
2003: "It's the Cola"/"Dare for More"

15

2005: "Wild Thing"/"Ask For More" (With Jennifer Lopez )

2006: "Why You Doggin' Me"/"Taste the one that's forever young" Commercial
featuring Mary J. Blige
2007: "More Happy"/"Taste the one that's forever young" (Michael Alexander)
Pepsiman
Pepsiman is an official Pepsi mascot from Pepsi's Japanese corporate branch. The
design of the Pepsiman character is attributed to Canadian comic book artist Travis
Charest, created sometime around the mid 1990s. Pepsiman took on three different
outfits, each one representing the current style of the Pepsi can in distribution. Twelve
commercials were created featuring the Pepsiman. His role in the advertisements is to
appear with Pepsi to thirsty people or people craving soda. Pepsiman happens to
appear at just the right time with the product. After delivering the beverage,
sometimes Pepsiman would encounter a difficult and action oriented situation which
would result in injury.
Pepsiman was featured as a Japanese Exclusive Transformers toy "Pepsi Convoy,"
which was based on G1 Optimus Prime. In 1996, Sega-AM2 released the Sega Saturn
version of their arcade fighting game Fighting Vipers. In this game Pepsiman was
included as a special character, with his specialty listed as being the ability to "quench
one's thirst". He does not appear in any other version or sequel. In 1999, KID
developed a video game for the PlayStation entitled Pepsiman. As Pepsiman, the
player runs, skateboards, rolls, and stumbles through various areas, avoiding dangers
and collecting cans of Pepsi all while trying to reach a thirsty person as in the
commercials.

16

Bans in India
Pepsi was banned from import in India in 1970 for having refused to release the list of
its ingredients.In 1988, the ban was lifted, with Pepsi arriving on the market shortly
afterwards. In 2003 and again in 2006, the Centre for Science and Environment
(CSE), a non-governmental organization in New Delhi, claimed that soda drinks
produced by manufacturers in India, including both Pepsi and Coca-Cola, had
dangerously high levels of pesticides in their drinks. Both PepsiCo and The CocaCola Company maintain that their drinks are safe for consumption and have published
newspaper advertisements that say pesticide levels in their products are less than those
in other foods such as tea, fruit and dairy products. In the Indian state of Kerala, sale
and production of Pepsi-Cola, along with other soft drinks, were banned in 2006
following partial bans on the drinks in schools, colleges and hospitals in five other
Indian states. On September 22, 2006, the High Court in Kerala overturned the Kerala
ban ruling that only the federal government can ban food products.
Health concerns
Pepsi and similar products contain large amounts of sugar. Excessive sugar intake is
thought to be a contributing factor in the development of certain types of diabetes.
Sugar is also a leading contributor to tooth decay.
Rivalry with Coca-Cola
According to Consumer Reports, in the 1970s, the rivalry continued to heat up the
market. Pepsi conducted blind taste tests in stores, in what was called the "Pepsi
Challenge". These tests suggested that more consumers preferred the taste of Pepsi
(which is believed to have more lemon oil, less orange oil, and uses vanillin rather

17

than vanilla) to Coke. The sales of Pepsi started to climb, and Pepsi kicked off the
"Challenge" across the nation.
In 1985, The Coca-Cola Company, amid much publicity, changed its formula. Some
authorities believe that New Coke, as the reformulated drink came to be known, was
invented specifically in response to the Pepsi Challenge. However, a consumer
backlash led to Coca-Cola quickly introducing a modified version of the original
formula (removing the expensive Haitian lime oil and changing the sweetener to corn
syrup) as Coke "Classic".
Comedian Dave Chappelle starred in ads for both Coca-Cola and Pepsi, an act which
drew controversy. When referring to it in his show, Chappelle said, "I can't even taste
the difference: all I know is Pepsi's paying more right now, so it tastes better."
In the U.S., Pepsi's total market share was about 31.7 percent in 2004, while Coke's
was about 43.1 percent.
Overall, Coca-Cola continues to outsell Pepsi in almost all areas of the world. Saudi
Arabia, Pakistan (Pepsi has been a dominant sponsor of the Pakistan cricket team
since the 1990s), the Canadian provinces of Quebec and Prince Edward Island and the
U.S. states of Michigan and South Carolina are the exceptions.
Pepsi had long been the drink of Canadian Francophones and it continues to hold its
dominance by relying on local Qubcois celebrities (especially Claude Meunier, of
La Petite Vie fame) to sell its product. "Pepsi" eventually became an offensive
nickname for Francophones viewed as a lower class by Anglophones in the middle of
the 20th century.

18

By most accounts, Coca-Cola was India's leading soft drink until 1977 when it left
India after a new government ordered The Coca-Cola Company to turn over its secret
formula for Coke and dilute its stake in its Indian unit as required by the Foreign
Exchange Regulation Act (FERA). In 1988, PepsiCo gained entry to India by creating
a joint venture with the Punjab government-owned Punjab Agro Industrial
Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold
Lehar Pepsi until 1991 when the use of foreign brands was allowed; PepsiCo bought
out its partners and ended the joint venture in 1994. In 1993, The Coca-Cola
Company returned in pursuance of India's Liberalization policy. In 2005, The CocaCola Company and PepsiCo together held 95% market share of soft-drink sales in
India. Coca-Cola India's market share was 52.5%.
In Russia, Pepsi initially had a larger market share than Coke but it was undercut once
the Cold War ended. In 1972, Pepsico company struck a barter agreement with the
then government of the Soviet Union, in which Pepsico was granted exportation and
Western marketing rights to Stolichnaya vodka in exchange for importation and
Soviet marketing of Pepsi-Cola. This exchange led to Pepsi-Cola being the first
foreign product sanctioned for sale in the U.S.S.R..
Reminiscent of the way that Coca-Cola became a cultural icon and its global spread
spawned words like "coca colonization", Pepsi-Cola and its relation to the Soviet
system turned it into an icon. In the early 1990s, the term, "Pepsi-stroika", began
appearing as a pun on "perestroika", the reform policy of the Soviet Union under
Mikhail Gorbachev. Critics viewed the policy as a lot of fizz without substance and as
an attempt to usher in Western products in deals there with the old elites. Pepsi, as one
of the first American products in the Soviet Union, became a symbol of that
relationship and the Soviet policy.
19

In 1992, following the Soviet collapse, Coca-Cola was introduced to the Russian
market. As it came to be associated with the new system, and Pepsi to the old, CocaCola rapidly captured a significant market share that might otherwise have required
years to achieve. By July 2005, Coca-Cola enjoyed a market share of 19.4 percent,
followed by Pepsi with 13 percent.
Ingredients
Pepsi-Cola contains basic ingredients found in most other similar drinks including
carbonated water, high fructose corn syrup, sugar, colorings, phosphoric acid,
caffeine, citric acid, and natural flavors. The caffeine-free Pepsi-Cola contains the
same ingredients minus the caffeine.
The original Pepsi-Cola recipe was available from documents filed with the court at
the time that the Pepsi-Cola Company went bankrupt in 1929. The original formula
contained neither cola nor caffeine.

Amount per 100mL

Energy

196.5 kJ

Fat

0g

Sodium

0.98 mg

Carbohydrates 11.74 g
Sugar

11.04 g

Protein

0g

Caffeine

10 mg

20

PRODUCT POSITIONING OF PEPSI CO.

Pepsi prefers to position itself as the beverage choice of the New Generation,
Generation Next, or just as the Pepsi Generation.
These terms adopted in Pepsis advertising campaigns are referring to the
markets that marketers refer to as Generation X. The Generation X consumer is
profiled to be between the ages of 18 to 29. They have high expectations in life and
are very mobile and active. They adopt a lifestyle of living for today and not worrying
about long-term goals. Though Pepsis main emphasis is on this segment but they also
have a focus on the 12 to 18 year old market. The rich deep blue coloring represents
eternal youthfulness and openness. Marketing plans like Yeh Dil Maange More,
Got Another Pepsi, Ye Pyass Hai Badi have made Pepsi one of the coolest
brands recognized among teens in the top five and the only beverage product in this
category.

21

STRENGTH & WEAKNESSES OF PEPSI CO.

Pepsi Cola throughout its 100 years of existence has developed much strength.
One of the strengths that have developed Pepsi into such a large corporation is a
strong franchise system. The strong franchise system was the backbone of success
along with a great entrepreneur spirit. Pepsis franchise system and distributors is
credited to bring Pepsi from a 7,968 gallons of soda sold in 1903 to nearly 5 billion
gallons in the year of 1997.
Pepsi also has the luxury to spend 225 million dollars in advertising a year. This
enormous ad budget allows Pepsi to reinforce their products with reminder
advertising and promotions. This large budget also allows Pepsi to introduce new
products and very quickly make the consumer become aware of their new products.
Pepsi-Cola provides advertising, marketing, sales and promotional support to PepsiCola bottlers and food service customers. This includes some of the world's bestloved and most-recognized advertising. New advertising and exciting promotions
keep Pepsi-Cola brands young. The company manufactures and sells soft drink
concentrate to Pepsi-Cola bottlers. The company also provides fountain beverage
products.
Pepsi also has had the good fortune of making very wise investments. Some of the
best investments have been in their acquiring several large fast food restaurants. They
have also made wise investments in snack food companies like Frito Lay, which at
present time is the largest snacks company in the world.
Probably high on the list of strengths is Pepsis beverage line up. Pepsi has four soft
drinks in the top ten beverages in the world. These brands are Pepsi, Mountain Dew,

22

Diet Pepsi, and Caffeine Free Diet Pepsi. Pepsi also has the No.1 tea in the United
States, Lipton Tea. Some other strong brands are All Sport, Slice, Tropicana,
Starbucks, Aquafina and a license agreement with Ocean Spray Juices.
Pepsi Cola like any company has weaknesses. Ironically, the one strength that has
been credited for most of its success in the past has now become a weakness for
Pepsi. This former strength is the franchise system. The franchise system in Pepsi
Corporate view has become a liability. Pepsi in todays market must be able to act as
one instead of several separate units.
The franchise system has become a hurdle to Pepsi because many of these franchises
have become very strong and will not be dictated by PepsiCo on how to handle their
operations. Some of these franchises are unwilling to support certain Pepsi products
and at times produce their own private label products that are in direct competition
with Pepsi products.
Secondly the franchisees are not willing to make capital expenditures to keep up with
Coca-Cola who is a firm believer in reinvesting into their infrastructure (Coca Cola at
present time does not operate a franchise bottling system).
As mentioned earlier Pepsi has tried to elevate this problem by spinning off their
interest in fast food restaurants but at present time are still guilty by association to
many of the large fountain accounts. The franchise system has also affected fountain
sales due to the fact franchisees are not willing to buy expensive fountain equipment
to place in accounts mainly because the profit margin is so low and could take years
to recoup their investment. Pepsi also has a weakness in the international beverage
market.

23

Unfortunately for Pepsi they were a Johnny Come Lately into this arena. Pepsi has
tried to enter this market by trying to do in three years what took Coke 50 years to do.
This area will take years for Pepsi to mature simply due to Cokes dominance in the
international market and the strong ties that Coke has developed with these markets
and their governments.
Pepsi customers buy nearly five billion gallons of soft drinks per year. Pepsi
customers buy their products because of taste, price, packaging and promotional
factors and of a wide variety of brands. Pepsi customers also buy their products due to
the high accessibility of Pepsi brands.
Pepsi products are distributed to many outlets. For example, supermarkets
where Pepsi buys large shelf area and display areas so the customer can find them
easier, viz, Convenience stores, Restaurants, Movie theaters and almost and other
conceivable spots.
Pepsi has a competitive advantage over Coke because of the image it portrays. Pepsi
promotes itself as the choice of the New Generation. Pepsi gets this advantage by
implementing such large marketing projects like Project Globe. This marketing
plan, which Pepsi spent 637 million dollars over five years, is to introduce the new
rich deep blue coloring of its packaging. The rich deep blue coloring represents
eternal youthfulness and openness. Marketing plans like this made Pepsi one of the
coolest brands recognized among teens in the top five and the only beverage product
in this category.
Another competitive advantage that Pepsi has is in their product Mountain Dew.
Mountain Dew has grown a staggering 74.1% over the last five years. Mountain Dew
has a 6.3% market share and has recently become the No.4 soft drink in America. At

24

this current pace Mountain Dew will be come the first non-cola to reach the 1billion
gallon mark in one year.
Pepsi also has an advantage as an innovator in their field. They are the first soft drink
makers to introduce a new one-calorie soda called Pepsi-One with, just approved by
the FDA, Ace-K.
This new sweetener is slated to be a break through for diet soda in which it limits the
after taste associated with diet soda and brings a more cola taste to the product. Pepsi
has always been a strong No.2 against Coke and have become one of the worlds
largest Companies. As far as market share is concerned Pepsi stands strong.

25

PEPSI-THE INDIAN EXPERIENCE

Pepsi is one of the most well known brands in the world today available in over 160
countries. The company has an extremely positive outlook for India. "Outside North
America two of our largest and fastest growing businesses are in India and
China, which include more than a third of the worlds population." (PepsiCos
annual report, 1999)
This reflects that India holds a central position in Pepsis corporate strategy. India is
a key market for PepsiCo, and at the same time the company has added value to
Indian agriculture and industry. PepsiCo entered India in 1989 and is concentrating in
three focus areas Soft drink concentrate, Snack foods and Vegetable and Food
processing.
Faced with the existing policy framework at the time, the company entered the
Indian market through a joint venture with Voltas and Punjab Agro Industries. With
the introduction of the liberalization policies since 1991, Pepsi took complete control
of its operations. The government has approved more than US$ 400 million worth of
investments of which over US$ 330 million have already flown in.
One of PepsiCos key strategies was to develop a completely local management
team. Pepsi has 19 company owned factories while their Indian bottling partners own
21.
The two advertisements tags: yehi hai right choice baby and nothing official about
it immediately ring a bell- its got to be Pepsi.

26

The advertisement tag yehi hai right choice baby was the first Hinglish slogan ever
used in the in the Indian market. This slogan proved to be the best suited one for Pepsi
and it was a mega hit and at that moment of time.
Pepsi in a short span of its operations in India has found a place in the hearts and
minds of the Indian consumers. The success has primarily been due to the innovative
and passionate Indian team, which has been built over the years. Pepsi is a trendsetter
managed and run by Indians, where important decisions are taken locally.
Pepsi started its operations in India in 1989 and since then PepsiCo has set up a fully
integrated operation in India viz. Manufacturing, Research & Development,
Marketing, Distribution and Franchising- covering fruit/vegetable processing,
Exports, Snack Foods & Beverages. In the mean time Pizza Hut and Frito Lays are
the examples in this regard only.
Pepsi has 40 bottling plants in India, out of which 16 are company owned and 24 are
owned by Indian franchisees.
The PEPSICO INDIA HOLDINGS PVT LTD beverages in India's leading supplier of
retailer brand Carbonated and Non-Carbonated soft drinks, with beverage
manufacturing facilities in India. Its experience in the beverage industry dates back to
the sixties when it had the first franchise at Agra.
It has the license to supply beverages in the territories of UTTAR PRADESH, part of
M.P., half of Haryana, whole of Rajasthan, Goa, 3 districts of Maharashtra, 9 districts
of Karnataka.. This bottling plant one of the largest producing PEPSI bottles in
INDIA. Its have six pipelines through which 600 bottles produces per minute its

27

means 3600 bottles produces per minute which makes PEPSICO INDIA HOLDINGS
PVT LTD BEVERAGES one of the highest bottles manufacturing in INDIA.
This manufacturing plant brought name and fame to the Pepsi as in all this regions
Pepsi is at the commanding position and in the mean this plant has diversified
function perform in the field of growth and success of PEPSI..

28

PEPSI BRANDS AND PACK PROFILE

BRAND PACKS:
The brands which manufacturing in PEPSICO INDIA HOLDINGS PVT LTD
beverages in as follows-:
GLASS BOTTLES

DISPOSABLE CANS

PET JARS

29

FLAVOUR PACKS:

COLA (Carbonated Soft Drink):

PEPSI

ORANGE:

MIRANDA ORANGE

MOUNTAIN DEW

7UP

MANGO:

SLICE MANGO

30

DRINKING SODA :

EVERVESS SODA

MINERAL WATER:

AQUAFINA

Carbonated Soft Drinks (CSD) or Soft Drinks as they are popularly known is one of
the largest FMCG market in the whole world with the total annual sales of around $40
billion.

31

THE PEPSICO INDIA HOLDINGS PVT LTD, DELHI

The PEPSICO INDIA HOLDINGS PVT LTD., Delhiis one of the biggest bottling
plant in INDIA .The date of announcement of this project was held on Saturday
1st April 1995 and it was completed on 31st December 1999.The investment was
made on this project Rs60 cores/ U.S.$ 15 million.
The PEPSICO INDIA HOLDINGS PVT LTD is one the largest bottling plant which
has six pipelines in which each pipelines produces 600 bottles per minute and
total number of bottle produces is 3600 bottles per minute.
The vice president of PEPSICO INDIA HOLDING PVT LTD, DELHI is Deepak Jolly
and the executive director of this company is Mr. Ravi Kr Singh who looks all the key
areas of human resource management and function of the company.
The PEPSICO INDIA HOLDINGS Pvt Ltd is one of the strongest production area of
Pepsi who not only deals only the production but also deals in marketing and sales area
which strengthen the PEPSI for its growth and capturing the INDIAN market with
motive of high earning profits and creating and benchmark in the market.

32

MAJOR CREDENTIALS
Varun beverages limited received gold standard award for production & quality
control for the year 1996-1997.
Jaipuria group was adjudged best bottler out of more than 2000 bottlers all over
the world for the year 1996-97.

LOCATIONS OF BOTTLING PLANTS OF PEPSI IN

INDIA

33

OBJECTIVES OF THE PROJECT

The Project Marketing and Sales Promotion of Pepsi was 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 Delhi . 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 objectives of the project were delivered to us express sly by the Marketing
Development Co-ordinator who was the lead or the project head 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.
The objectives of the project are:

To analyze, interpret and study the entire beverage market of Delhi

Comparative study of the various brands, packs and flavors available in the
market.

Analysis of the strong and weak point of the competitors products and
compare it with PEPSI.

To assess the reach and feasibility of the product and give the output for
further investment for enhancing the distribution network along with assessing
the efficiency of the current distribution system.
34

Assess the promotional measures in the context to the sales of PEPSI and
focusing our study on the customer of company i.e., the retailers.
As obvious that any company is concern with the increase in sales of its

products, our project was in line with the companies objectives and all steps
incorporate in the project were directed to give an overview so as to attain its
objectives.
The market research conducted by us was in accordance to the companys rules
and policies which were quite material for the efficient and effective results and
inferences to be drawn from the entire process.
The market research was conducted in compliance of the given guidelines
delivered to us expressly to achieve the given objectives, which were as under:
1. Profitability

4. Improvement

2. Sales

5. To satisfy the customers

35

RESEARCH METHODOLOGY
THE MARKET RESEARCH PROCESS
The entire project was divided into five phases and each phase had its
individual significance and supplemented each other. The process had to be started
from the grass root level and it was very important to understand the market for this
FMCG product, which is very fast in production, distribution and consumption.
The five phases into which the project was divided were:
A.

Route Riding

B.

Retail Tracking

C.

Corporate Tracking

D.

Analysis of finding and observations

E.

Segregating Delhi

The entire process was more of a Descriptive Research type and incorporated
a formal study of the specific problems faced by most FMCG companies an exploring
the opportunities in the untapped market. The survey was conducted on the basis of
PEPSI product preference and evaluation of sales forecast in the new and
underdeveloped market including the evaluation of the advertising and promotional
measures. The data collected had to be systematically arranged, analyzed and reported
in a form congenial to take on the spot decisions.
The observation approach was adopted in the process by gathering the data
essential and material for the decision-making and with clear objective of increasing
the market share of PEPSI in the Delhi. market. Customer preferences and satisfaction
was also important in assessing the market share but that was very clear that
customers generally do not have loyalty towards the product in the Beverage industry
rather what matters the most is the product availability which will be discussed later.

36

All the phases mentioned above have been discussed along with the
observations, problems, and other dimensions which have been encountered and
experience in detail in the following pages.

37

ROUTE RIDING
The Beverage Industry or to be more specific, the Soft Drinks Industry has one of the
most active network in term of its production, supply, distribution, marketing,
consumption and also personal relations at the very second level of its distribution
network. That is the reason why it is sometimes said to be Very Fast Moving
Consumer Goods.
Due to the above stated reason it becomes very essential to study and analyze the
market of these products from the grass root level. So in the Soft Drinks Company as
PEPSI, route riding becomes the first and foremost step in any of the activities to be
undertaken be it any official so we were no exceptions.
During the very initial days we were required to exercise Route Riding, the objective
of which was:

To understand and analyze the market in its raw and basic form.

To gain an in depth knowledge of the merchandising and processing activities

of the Route Agents and understand the Beverage market.

To undertake the comparative study of the various brands and flavour packs of
all existing beverages or soft drinks market and the market share and growth
potential of each brand individually.

To develop innovative ideas to enhance the distribution system.

Route Riding is basically accompanying Pepsi Vans along with the route agents and
understanding the way they conduct merchandising activities right from the charged

38

vans leave the depot to the entry of empty vans back to the depot. The Route Riding
phase was for the initial twinty days in which we had covered twinty different routes.
The Route Riding is a crucial phase because the actual dealing with the retailers and
their dealing with the customers can be very efficiently understood through this
process which is important at all levels of decision making in the industry.
The Routes i.e., the Pepsi Vans were charged and left the depot by 7:30 in the
morning, accompanied by the Route Agent

(R.A.s). The RAs were given the route

planners and the particulars of the products, flavors, and quantities along with the
billing materials. The vans had to cover the entire route and the RA had to do the
merchandising and sales against cash, which was a significant feature of this industry.
The targets were given twice or thrice in a week that was a challenge for them and
after achieving these targets the RAs was awarded with some special incentives. As
there exists a player like Coca Cola. So it had a lot to do with schemes, discounts and
other incentives.
The routes were allocated on the basis of individual areas and the demand of the
product in that particular area. The RAs been responsible for the accomplishment of
their sales target on their routes and was given incentives on achieving the targets. Not
only this, the RAs also had the responsibility of moving the flavors and packs in
proportion along with the proper display of the products for proper visibility and
arrangement of products in brand order along with VISI purity.
The RAs had the responsibility of setting up Monopoly PEPSI Sales Counters where
no products except that of PEPSI would be available amongst the soft drinks and
especially of Coca Cola. These monopoly sales counters enjoyed special benefits in

39

terms of discounts, schemes, VISIs (fridges), display boards, glow signboards, wall
paintings, banners, posters and other incentives.
The RAs had to achieve their sales target and surrender the daily sales proceeds with
the concerned Customer Executives along with the route planner and billing materials
and gate pass along with the details of sales on their route.
The entire activities of the RAs was controlled by the Customer Executives, who also
assisted the RAs in achieving their targets and were in charge of the sales
performance in their assigned areas. A Customer Executive had nine to ten RAs under
him and was responsible for their performances as well. He was also concerned with
the promotional activities on his routes and handling of policy matters in the corporate
regarding supply to industrial canteens and cafeterias.
We as Research trainees were required to study and analyze the activities of the RAs
and be familiar with the market. We had been provided Market Analysis Sheets by the
MDC in which we were required to record the observations of the retail outlets on a
particular route.
The observations, which were required to be recorded in, were:

The quantity of the cold and warm stocks of all brands and flavors available at
the outlet along with the outlet details.

Inquiring about the satisfaction of the retailers in terms of sales of PEPSI

products, schemes, discounts, combo offers, and the benefits of promotional
activities.

40

Inquiring about the satisfaction by the current distribution network in context

to product availability of all flavors packs or individual flavors according to
demand of customers, rates billings.

Inquiring about the behavior and merchandising of RAs in accordance with

the companies regulations and record complaints against RAs, company or
products, if any.

Inquire about the performance of various brands and flavors packs and
customers response to those brands or flavors and also to educate the retailers
about various schemes and incentives to increase sales volume.

Last but not the least, assessment of the effectiveness of, assessment of the
effectiveness of promotional materials and activities like, display boards, glow
signs, signage, wall paintings, posters, banners, racks, shelves, counters,
VISIs, and also impact of nation wide advertising on brand loyalty by the
customers.

The information so collected was required to be filled in the Market Analysis Sheet
(specimen on the next page) and reported to the MDC along with other information in
order of their seriousness.

41

RETAIL MAPPING OF DELHI

The Retail Mapping is the integral part of the project and the most crucial is taking
significant decisions regarding the enhancement of the distribution network involving
heavy investment on account of increasing the routes and starting new routes and
promotional measures on those routes to increase its market share in Delhi The new
routes, exploring new markets required the decision to be supported with facts and
figures which had to be provided by the Research trainees on the basis of the survey
conducted in the market and processed data there of.
The retail mapping had to be conducted on the basis of the Retail Tracking Sheet
(RTS), which had been developed by the Marketing Development Coordinator and
Customer Executives of the Delhi unit which incorporated the retail outlets, their
addresses, proprietor, respondent etc and served as a vital database for all market
since then for PEPSI in Delhi and had to be incorporated in the project in accordance
to the companies policies.
Objectives of Retail Mapping:

Segregating entire Delhi for Strong Area Programme and Weak Area
Programme i.e., SAP and WAP.

Assessment of retailers performance.

Assessment of the level of promotional measures required for increasing

market share of PEPSI.

42

Collection of required information for making investment decisions for the

enhancement of existing routes and opportunities for new routes in existing
market as well as exploring new market.

Classification of all retail outlets in Delhi into five broad categories viz, On
Route, Non Existence, Non Potential, Reachable and Non Reachable under
the head, Potential Retail Outlets.

The duration for the completion of the Retail mapping took duration of 20 days. The
entire survey was guided and directed by the Customer Executive and Daily report
had to be presented to him after assessment and analysis along with other findings and
observations. The Data had to be classified in a systematic manner and presented in a
predefined format, which was further reviewed by the Marketing Development
Coordinator.
The Retail Mapping process incorporated of including of new outlets, which have
been omitted or newly opened, and the product availability on all these outlets. The
major thrust was on segregating the market for Strong Area Programme and Weak
Area Programme.
The Strong Area refers to the routes on which the sales targets are met without much
effort and have continuous demand for the products. These areas are performing to the
standards and are contented with the level of promotion schemes and other sales
boosting measures. The marketing efforts are nominal in these areas because of the
surplus demand and the area of concern is only to ensure the proper and efficient
supply of the products to meet the demand. In the Delhi market approximately 45% of
the market can be said to be strong areas and these areas include the well-developed
markets as shopping malls, movie theatres, convenios, hotels, restaurants and
43

bars etc. For these Strong areas, SAP only aims at maintaining the performance of the
product and enhancing the sales volume. It is not the area of serious concern for the
company.
On the contrary the Weak Area refers to those areas or routes, which are critically
low in sales and the targets, are tough to achieve and require aggressive marketing
support. The demand in these areas is fluctuating or rather feeble. The routes are the
area of concern for the company as the demand is very low due to many reasons and
the major one is the existence of the player like Coca Cola in the market. Other
reasons could be poor distribution network, inadequate availability of the products on
the outlet, inadequate promotional measures and marketing support, undeveloped
market as that of the interiors etc.
These weak areas had to be identified and the cause of their inferior performance had
to be traced through the Retail Mapping and the company had to be provided with the
facts and figures to take legitimate measure on the basis of the findings of the
deficient performance of the product in these areas. This involved the aggressive
marketing strategy and heavy investment decisions to strengthen these markets. For
this purpose the classification of the outlets into five categories was very crucial along
with the other findings and observations discussed later. These five heads of
classification have been discussed as under.
ON ROUTE:
It refers to the retail outlets, which are covered by the Route Agents and visited daily
for sales and merchandising. The outlet is visited daily and actively involved in the
sales of all brands and flavor packs of PEPSI.

44

NON EXISTENCE:
It refers to the outlets which were merchandising the product

are no more in

existence, i.e., they have diversified their business activity or have closed.
NON POTENTIAL:
It refers to those outlets, which are in existence but have very low potential in terms
of sales or are not keenly interested in merchandising the products of soft drink.
A careful assessment had to be done in case of Non Potential outlets, as they would
turn to be potential in near future. It was also the area of operation of project to
motivate these Non Potential outlets to undertake the merchandising of PEPSI.
POTENTIAL OUTLETS :
It refers to those outlets, which have the potential for the merchandising of PEPSI and
have the required investment capabilities and can be the profitable Point Of Purchase
of PEPSI by the customers. There were cases in case of these potential outlets, which
were already merchandising PEPSI, and those, which did not, dealt with beverage
products. The possibilities of setting monopoly counter were very fair at these outlets
and were given special attention. The Potential outlets had to be further classified in
two heads as below:
REACHABLE POTENTIAL OUTLETS :
It refers to those Potential outlet which are reachable i.e., the products can be made
available with the PEPSI vans. The reach ability decision had to be taken in context to
the accessibility of the vans at these outlets.

45

NON REACHABLE POTENTIAL OUTLETS :

It refers to those Potential outlets which are not accessible by the PEPSI vans. These
outlets had to be considered because the sales volume can be increased at these outlets
and so alternative method of distribution and promotional activities have to be
evaluated and worked upon.
CORPORATE MAPPING:
Delhi being an entirely industrial city had huge potential for the sales of PEPSI in
corporates as these concerns had factories, offices and canteens and the officials and
workers base was very strong. The process of Retail Mapping was followed by the
Corporate Mapping, which incorporated of tracing of the organizations and assessing
the market for PEPSI in these areas. Apart from these the database had to be updated
to turn the non-potential market in the corporate into profitable liaisons for the
increment of sales volume.
THE OBJECTIVES OF CORPORATE MAPPING WERE:

Trace the organizations with and without canteens and cafeterias and estimate the
market for PEPSI.

Estimate the brand preference of PEPSI and COKE in the corporates and the
reasons thereof.

To review the product performance and satisfaction along with the expectations of
the customers in corporates including PEPSI Dispenser Equipments.

To assess the product availability and demand of the product (Traffic) in these
organizations as well as when the product has the optimum consumption e.g.
daily, delegations, meetings, parties, or other occasions and the customers i.e.,
whether the officials or workers or both.

46

To ensure efficient supply and record any complaints or grievances

thereof.

To assess the promotional measures being adopted by Coca Cola for

tapping these markets and locate the weak points in corporates having
Coca Cola counters to convert them into profitable opportunities.

The Corporate Mapping was the supplementary programme in the project to boost the
sales performance of PEPSI in NOIDA & NCR and capture the market share of its
nearest competitor. The analysis and findings were recorded on the format provide by
the company accompanied by the list of findings and observations in order or their
preference and seriousness along with all the relevant details about the organization.
The matters were discussed and analyzed carefully by the MDC.
The corporate matters had to be given a special care as these had huge potential for
the product. The specimen copy of the Corporate Mapping format is attached for
reference. The findings and observations have been discussed in the coming pages.

47

ANALYSIS OF FINDINGS AND OBSERVATIONS

The main objective of the company is to increase the brand preference and market
share so any information material form this point of view had to be take into account
along with the formats provided by the company for predefined information recording
and analysis of those recordings and present the information in an organize and
systematic manner in a condensed form reflecting the actual position of the market.
The information had to be recorded in the format along with the relevant information
as per the objectives of the research and an analysis of that information had to be
made and present them in an understandable format so that immediate inferences can
be drawn. Generally those information had to be presented in percentages and the
other findings and observations had to be evaluated and a list of findings had to be
arranged in order of their seriousness and areas of serious concern along with the
outlet details.
After the analysis sheets and formats have been surrendered to the C.Es after analysis
by the trainees it was further analyzed and evaluate by him and a brief analysis was
made each day of the daily report. The CEs further forwarded these reports after
retaining the reference copy, to MDC for further review and reference.
SEGREGATION OF DELHIFOR SAP AND WAP
As discussed earlier that the major objective of the Retail Mapping of Delhi was to
segregate the market for PEPSI for the Strong Area Programme and the Weak Area
Programme. These Programme have been discussed under the Retail Mapping Head.
The Data and fact collected by the survey had to be analyzed and presented in a
systematic form in order to draw meaningful inferences.
The finding of the Route Riding and the Survey conducted during the Retail Mapping
and the Corporate Mapping were combined together and analyzed together to reach a
final report ie, the RETAIL MAPPING SUMMARY or THE CONDENSED DRAFT
REPORT, which gave the entire picture of the actual position if PEPSI in Delhi.. The
report so prepared was on the basis of the Retail Tracking Sheet and the other
supplementary finding and observations were considered to reach a consensus of
declaring the route as a weak area or a strong area.

48

The reports were analyzed thoroughly by the Customer Executives and a meeting was
held for the assessment of the routes and the reasons of unfavorable performance in
the weak areas and how to improve the sales on those routes. The discussion
comprised of the further investments for the enhancement and extension of the routes
and the level of promotional measures required in these areas. The performance of
Coca Cola was also reviewed simultaneously and a comparative study was made to
assess the performance and growth in the industry. These data and figures were
compared with that of the last year and a growth percentage was reached which also
served as a basis of declaring an area as a Weak Area.
As already mentioned PEPSI is a VFMCG so the marketing strategies are going to be
very dynamic in nature. The Customer Executives had to formulae day to day
strategies and these were communicated to RAs in the morning when they were going
to leave the depot and this interaction among R.A.and C.E. was to be known as Gate
Meeting.
The programmes were to be based on the seriousness of the problems and accordingly
a mild or aggressive marketing, promotional and investment programme was to be
formulated.

49

FINDINGS & OBSERVATION

The reports of each phase of the project had to be supplemented by the information,
data, facts and figures and significant findings and observation to support
the feasibility of decisions to be taken on the basis of the Retail mapping
Summary or the CDR. The information so recorded in each phases of the
project had to be listed in order of their relevance and seriousness and
presented in a form to facilitate immediate inference.
Some of the important observations have been listed below:

Soft drink businesss behavior is not governed by brand loyalty so the

availability of the right brand, at the right place, at the right time is the key for
winning consumer in soft drink business.

The most important and satisfying observation was that, PEPSI had
approximately 69% market share in the soft drinks market in Delhi. and some
of its brands like Mirinda Orange and Mountain Dew were performing above
standards apart from PEPSI Cola in spite of the Coca Cola with two cola
flavor packs i.e., Coke and Thumps up.

The present distribution system of PEPSI is the best in the entire FMCG
industry in Delhi. and the major strength
of PEPSI. The enhancement in the distribution network would definitely
increase the market share of PEPSI.

The retailers played a very critical role in the increment in the sales volume of
the product and the had to be kept satisfied in order to increase the market
share by offering better schemes, discounts, display materials such as VISIs,
racks, counter, signage, wall paintings and better amount for purchase of shelf
space for display.

50

The existence of sub-dealers and super stockiest are also the major area of
problem, as they do not move the schemes and other display materials and
incentives information to the retailers, which is one of the reasons for the
dissatisfaction of retailers.

The cut throat competition between PEPSI and COKE had lead to the never
ending cola war and price war which has brought down the profit margins
which is one of the major grievances apart from the common complains
pertaining to schemes, incentives and display materials.

The other major issue was the supply of PEPSI from the bottling plants in
Delhi and Punjab against the company policies. These plants supplied the
products at discounted rates and violated merchandising principles of PEPSI.

Another critical issue was the presence of duplicate products of PEPSI in the
market. The details of these outlets have been surrendered to the company for
action against these outlets.

The position of PEPSI in the corporates was not up to the mark and Coca Cola
had a better scene in this context. One of the reasons can be assigned to the
product positioning of PEPSI and Coca Cola.

51

MARKET STATUS OF PEPSI PRODUCT

PEPSI-COLA PRODUCTS
Aquafina
7%

Lehar 7-Up
9%
Pepsi
24%

Lehar Soda
4%

Mirinda
Orange
14%

Slice
20%

Mountain
Dew
19%

52

Mirinda
Lemon
3%

PREFERENCE OF SOFT DRINKS IN QUANTITY

2 LT.
24%

200 ML
37%

330 ML
(CAN)
2%
600 ML
12%
300 ML
25%

RATIO OF CONSUMPTION OF SOFT DRINKS PER 100 CONSUMERS

Once in a
week Never
3%
1%
Occasiona
ly
4%
Daily
13%

Twice in a
week
12%

Often
67%

53

The other Statistics and finding have been presented in the form of various
charts on the coming pages:
DEMAND OF SOFT DRINK

54

CONSUMTION OF PEPSI BRAND

RATIO OF PEPSI AND COCK IN DELHI

55

RECOMMENDATIONS
The Project Retail Mapping was concerned only with providing the organization with
all the necessary information required to strengthen the position of PEPSI in Delhi. in
the form of reports incorporating all information in an analyzed and summarized
form. But some critical and major issues, which have been identified on account of
extensive analysis, required suggestions to be put forward on the basis of the current
market scenario.

There should be uniformity in, schemes, and discounts, which are offered to
the retailers and should be based on a specific parameter such as sales volume,
to avoid dissatisfaction and biasness among the retailers.

Activities of sub dealers and super stockiest should be controlled and checked
in order to ensure fair prices and distribution of schemes and incentives to
small retailers to avoid discontent among smallholdings and outlets.

Every possible step should be taken for the satisfaction of the retailers, as they
are the most important supplement to the sales promotion measures and
nationwide advertising campaigns of the company in context of boosting the
sales and enhancement of the brand image of PEPSI.

The operations of the bottling plants of the surrounding territories should be

controlled in order to ensure that they do not supply the product in other
territories not under their area of operation.

The company should modify its advertising strategy and educate the customers about
its age-old existence and enhance its brand image. This will appeal to the target
customers of middle and older age groups apart from the younger generation in which
PEPSI has a good hold.

56

First and foremost things are that, whatever the policy is going to be
formulated it should not be same for all the areas. Different policies should be
framed and implemented at different areas by looking and keeping various
variables in the mind like buying habits, preferences, education level financial
position of that particular area and standard if living etc.

Rural market being a very potential segment needs very quick and prompt
efforts to be taken to capture this high volume market.

Many retailers complained regarding irregularly in visit by the executives.

They also said that executive give very bad response to their complaints. It is
necessary that executive should make frequent visit to cover each outlet and
try to provide them best

Pouches, foreign particles were found in few bottles, so proper quality control
measures should be implemented as companys reputation are at stake.

There is a great market of soda (1 Lit.) but the supply of this pack is very poor,
so the supply should be made possible quickly.

Quality of PET bottle should be improved so that most problems can be

minimized.

Soft drink is still considered a treat virtually a luxury, so it possible company

should cut down its price especially of cans.

Supply of posters, glow-sign boards, tin boards, banners and sun pack sheets
etc should be made at regular interval.

Claim should be provided to the deserving retailers.

57

Wall painting should be made regularly in the area, as it is a good medium of

advertisement.

Proper attention should be given to the retailers problem so that they take
interest to increase the sale.

Proper advertisement should be made at railway station, bus stand, posh area,
major market and economies place etc.

A company may create favorable impression among the youth if they sponsors
small events like college festivals, university programs, school functions,
fashion shows, quiz programs etc.

Retailers need display material. To enhance the marketing of the product.

58

LIMITATIONS
The retailers in many cases reluctant to answered many questions.
The respondents may be biased on influenced by some other factors.
Time and money were the greatest limitation in carrying out the survey.
A number of retailers (pan-shop) being illiterate, it took us lot of time in
collecting information.
The mere information which we get from the retailers is not sufficient to arrive
at a conclusion.
The seasonal changes affect the sell.

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MAIN KEY POINTS

Service aspect of agencies is very effective, they deliver their product
according to the demand a just in time.
After

conducting

the

market

survey of retailer

in Delhi

city,

I analyze that Pepsi-Cola is dominating over Coca-Cola in the sale of PET.

After analyzing the market and calculate the weightage, the result comes out
that Mountain Dew is the leading product of Pepsi-Cola.
Consumers do have a demand for 200 ml and 2 lit. bottle.
Retailers have problem in display material.
Most of the place like cinema hall and educational institutions are dominated
by Pepsi-Cola.
Retailers have complaint regarding the PET, that more better quality bottle
should be used.
Aquafina (Pepsi-Cola) in Ghaziabad city dominated Kinley (Coca-Cola)
mineral water.
Retailers have a demand of some offers and free gifts.
Kinley soda (Coca-Coal) is also dominated by Lehar soda (Pepsi-Cola) in
Ghaziabad city.
Maaza (Coca-Cola) is also dominated by Slice(Pepsi-Cola).
It was seen that Lehar Soda (1 lit.) in particular remains short during the
season.
In the market there is only a retailer on which the sale of the different product
of different company depends.

60

CONCLUSION
The business of Soft Drink industry is significantly based upon the impulse buying, so
it is very necessary to Merchandise products of PEPSI efficiently and present them in
such a manner so that it can motivate the consumer and generate a thirst in consumer
to consummate it.
Though, PEPSI has a strong position in NOIDA & NCR with the support of its
efficient distribution network, aggressive marketing efforts and advertisements along
with attractive schemes but there still exists potential market in Delhi to be exploited
and a suitable Weak Area Programme or the Strong Area Programme has to be
formulated to improve its market share depending upon the area under consideration.
Soft drink businesss behavior is not governed by brand loyalty so the emphasis is not
only on creating the market but also on retaining it. The availability of the right brand
and flavor pack, at the right place, at the right time is a key for winning the customer
in soft drink business. Keeping these facts in mind it becomes very important to treat
the retailers with concern and satisfy them by various measures and so that they are
loyal towards PEPSI. Public relation is also critically important in this industry.

61

QUESTIONNAIRE

Q.1. Are you aware of Pepsi house hold scheme ?

a. yes

b. no

Q.2. Do you provide home delivery of Pepsi ?

a. Yes

b. no

Q.3. How many houses?

Q.4. Which brand of soft drink do you sell?
a. Only Pepsi-Cola

b. Only Coca Cola

c. Both.

Q.5. Which quantity of soft drinks you have?

a. 200 ml
d. 2 lit.

b. 300 ml

c. 500 ml

e. All.

Q.6. Which brand of soda do you sell?

a. Leher Soda (Pepsi-Cola)

b. Kinley(Coca Cola)

Q.7. Which brand of mineral water do you sell?

a. Aquafina (Pepsi-Cola)

b. Kinley (Coca Cola) c. Others.

Q.8. Chilling equipment owned by you?

a. Only Pepsi-Cola

b. Only Coca Cola

Q.9. Do you get timely supply of these brands with proper schemes?
a. Yes

b. No.

Q.10. Is your chilling equipment working properly?

a. Pepsi-Cola
b. Coca-Cola =

= Yes. No.
Yes. No.

62

c. Both.

Q.11. During breakdown of chilling equipment who gives better service?

a. Only Pepsi-Cola

b. Only Coca Cola

c. Both.

b. Only Coca Cola

c. Both.

Q.12. Whose racks do you own?

a. Only Pepsi-Cola

Q.13. Is there increase in sales due to display of the racks?

a. Yes

b. No.

Q.14. Availability of glow boards provided by company through promotional scheme.

a. Yes

b. No.

Q.15. Are your customer aware of PEPSI HOUSE HOLD SCHEME?

a. Yes

b. No

c. Cant Say

Q.16. Has it effected your sale?

a. yes

b. no

c. cant say

Q.17. What %tage increase you got after this scheme?

a. 5-15%

b.25- 30%

c. more than 50%

Q.18.
200 ML
STOCK
REGULAR

PCI

600 ML
PCI

300ML
CCX

PCY

CCX

CCX

2 LIT
PCI

CCX

STOCK PET

63

BIBLIOGRAPHY

Marketing Management
Principles of Marketing

(Written by Philip Kotler)

(Written by C. B. Gupta)

Research Methodology

(Written by C. R. Kothari)

Magazines:
Advertising Management
Business India
Business Today
Business World
www.pepsiworld.com
www.pepsico.com
www.google.com

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