Professional Documents
Culture Documents
By
Md Mahtab Alam
Roll No. 13SCME104003
Enrollment No. 1313104004
2017
STUDY OF SALES PLANNING AND
PROMOTIONAL STRATEGIES OF PEPSI
By
Md Mahtab Alam
Roll No. 13SCME104003
Enrollment No. 1313104004
2017
LUMBINI BEVARAGES PVT. LTD.
i
STUDY OF SALES PLANNING AND
PROMOTIONAL STRATEGIES OF PEPSI
By
Md Mahtab Alam
Roll No. 13SCME104003
Enrollment No. 1313104004
2017
LUMBINI BEVARAGES PVT. LTD.
ii
CERTIFICATE OF APPROVAL
The following Summer Internship Project Report titled "STUDY OF SALES PLANNING
AND PROMOTIONAL STRATEGIES OF PEPSI" is hereby approved as a certified study in
management carried out and presented in a manner satisfactory to warrant its acceptance as a
prerequisite for the award of Master of Business Administration for which it has been
submitted. It is understood that by this approval the undersigned do not necessarily endorse or
approve any statement made, opinion expressed or conclusion drawn therein but approve the
Summer Internship Project Report only for the purpose it is submitted to the Summer
Internship Project Report Examination Committee for evaluation of Summer Internship Project
Report.
Name Signature
iii
Certificate from Summer Internship Project Guides
This is to certify that Mr. Md Mahtab Alam, a student of the Master of Business Administration
has worked under our guidance and supervision. This Summer Internship Project Report has
the requisite standard and to the best of our knowledge no part of it has been reproduced from
another summer Internship project, monograph, report or book.
Faculty Mentor: - Dr. M C Rashid Industry Mentor: - Mr. Prafull Kr. Thakur
Designation: - Asst. Professor Grade 1 Designation: - TDM
SoB, GU, GBN Organization: - PEPSI
Date: - Date: -
iv
EXECUTIVE SUMMARY
This is an attempt to know how the classroom theories can be applied to the practical situation.
As a student of MBA, it is a part of study for everyone to undergo summer internship at some
organization. So for this purpose, I got an opportunity to do my summer internship at PEPSI.
In this is comprehensive report, I have discussed about every major aspect of the company
which I have observed and perceived during my internship tenure.
Along with its processes, policies and procedures. This report covers many important aspects
which are related with operations and management aspect of construction. In the end the
learning and observations which I have undergone during my internship project. This report
also contains my perceptions, motivation level and the working environment of the
organization.
v
ACKNOWLEDGEMENT
I express my satisfaction on the completion of this summer training program and project report
submission as a part of the curriculum for the degree of Master of Business Administration. I
express my deepest gratitude to my mentor for his kind guidance during the entire period of
training. Also I thank all the members of PEPSI for their kind support. They have always been
a source of inspiration to me.
vi
TABLE OF CONTENT
vii
LIST OF FIGURES
Figure 1 2
Figure 2 9
Figure 3 12
Figure 4 17
Figure 5 27
Figure 6 29
viii
LIST OF TABLES
Table 1 31
Table 2 32
Table 3 33
Table 4 35
ix
I. Company Profile
India with a population of more than 100 crores is potentially one of the largest markets in the
world with urbanization and development of economy, tests and interest of the people changes
according to the advance nation.
Marketing is about the winning the new environment. It is about understanding what
consumer's wants a supplying it is more efficiently and more conveniently.
The consumer market may be identifying as the market for product and services that are
purchased by individuals as household for their personal consumption. Soft drink is a typical
consumer product purchased by individuals primarily quench their thirst and for refreshment.
Different types of soft drink are available in the market and more or less content of all soft
drink is same. The market of soft drink is facing a cutthroat competition and many companies
are floating in the market with their product with different brand names. In such a situation,
different factors, which influence the people choice for soft drinks, are taste, quality, images,
easy availability and the product cost of advertisement. The government of India has
considered the soft drinks industry as "Non-essential" As a result the excise duty lived by govt.,
on better soft drinks is very high.
Thus in a country like India where more than 20% of the total population exists below poverty
line, the consumer cannot effort such high price for soft drinks. As a result, the trading activities
of the soft drinks industry are concentrated in and around big cities and town where the
purchasing power of population is considered comparatively high.
Soft drink industries in India have an annual sale of about 4000 crores, with per capital
consumption of soft drink at a low seven bottle per annum (even Pakistan has a per capital
consumption of 14; in China and U.S.A. is more than 800 bottles) is due to price factor.
1
The marketing manager is responsible for both Determining suitability of goods and
services presented by the company to the market, and also determining about potential market
and make batter relation with retailer.
In this, regard the marketing management with have to apply to marketing technology in the
conceptual philosophy of a system. It is the process of system analysis in the marketing
management for effective research and can be defined, "systematic objective and exhaustive
study of task relevant to any problem in the field of marketing".
Figure 1
2
1.2 Mission and Vision
"PepsiCo's overall mission is to increase the value of our shareholders" investment. We do this
through sales growth, cost controls and wise investment of resources. We believe our
commercial success depend upon offering quality and value to wholesome, economical, and
efficient and environmentally sound; and providing a fair returns to our investor while adhering
to the highest standards of integrity."
"Our vision is to be a truly global company by continuing to build a competitive and profitable
worldwide refreshment beverage business."
Donald M. Kendall, President and Chief Executive officer of Pepsi-cola and Herman W. Lay,
chairman and chief executive Officer of Frito-Lay found in 1965 PepsiCo, Inc., through the
merger of the two companies. Caleb Brandham, a New Bern, N.C. pharmacist, created Pepsi-
cola in the late 1890s, at North Carolina in USA. Its CEO is Indira K. Nooyi. The 1961 merger
of the Frito Company, founded by Elmer Doolin in 1932, and H.W. Lay Company, founded
by Herman W. Lay, also in 1932, formed Frito-Lay; Inc. Herman Lay is chairperson of the
board of the directors of the company. Donald M. Kendall is president and chief executive
officer.
As an MNC, on the globe, Pepsi foods limited is one of the largest soft drink companies in the
world with its headquarters in New York.
Pepsi entered the Indian soft drink market in 1988 and began its production in May 1990 and
soon it was during the local contenders the run for their money in the soft drink market. It
comes out with dazzling marketing innovation that rocket the cola market line selling the
product through function, Pepsi outlet. Pepsi's success in creating a brand almost from scratch
in India is the stuff that marketing case studies are made of. Given the problem of doing
business in markets like ours, Pepsi entered the market as an under-dog. Its first even advantage
3
it entered before Coke returned was considerable reduce by the enormous export obligations
stepped on the company. Yet right from the banging, Pepsi demonstrated a far more focused
approached. Therefore, while it entered a market like any other MNC, it was quick to adopt. It
realize that consumers, particularly the youth, to home it consciously reached out, would
identify batter with a brand that they see as global, yet Indian, Pepsi was built as a Desi brand.
Hens its deliberate attempt to build add campaigns using the popular Hinglish in the process,
slogans like YEHI HAI RIGHT CHOICE BABY and
"YE DIL MANGE MORE - AHA". & Latest SWAG SOCHA NAHI JI GAYA PEPSI
THI PI GAYA!
Became part of India's popular consciousness. When Pepsi lost the bidding battle to sponsor a
Cricket tournament to coke, the loss was turned into triumphed with the aspiration in smaller
towns, the hinterlands of metropolitan cities and now days the slogan which is on air as "YEH
PYAS HAI BADI".
It showed a rare ability not only to survive, but also grow through India's tortuous policy twists
and turns, which threw many other MNC's off balance. Its top management team did not suffer
from the frequent changes see at rival, Coke Consequently, it was able to unlike Coke, which
paid enormous prices to buy out established local brands, and Pepsi brought its own stuff over,
and pushed those aggressively with dealers, retailers and consumers. Right now, it can bark its
outstanding success in building a brand that has become synonymous with soft drink across
the length and breadth of the country.
The soft drink market in India is quite wide. The production of soft drinks was started on 27th
march 1967 with the installation of Coca-Cola bottling plant at Jamshedpur under the
suspicious guidance of late industrialist Mr. Dharam Chand Kamani, named as steel city
beverage Ltd. In 1977 with the advent of Janta Party Govt, it created a trouble for Coca-Cola,
which led to the withdrawal of its operation from India.
After the withdrawal of Coca-Cola from India, the Parley monopolized the soft drink market
in Bihar and took a lion's share of projects from the industries that even after McDowell's pure
drinks and local drinks entered in to the market, they would not compete with parley, once
again with the liberalisation of economy in 1991 Pepsi food Ltd. Entered in the Indian market.
4
It start bottling its product in Bihar by steel city beverage's company (now in Jharkhand state)
on 24th march 1991 owned by kamanis in collaboration with the Birla Group.
Which was once the bottling plant for Coca-Cola. Through parley range of products steel
captures a large share of Bihar's soft drink market yet Pepsi range of products is giving it a
tough competition in all flavours i.e. Cola, Orange and lemon.
In 1995, another bottling plant was installed at hajipur industrial area Pepsi food Ltd. Named
LUMBINI BEVERAGE PVT. LTD.
To meet the requirement of Pepsi range of products not fulfilled by still city beverage Ltd.
And due to increase demand of these brands. At present in Bihar their two bottling plant, the
ORIENT BEVERAGE Ltd. For Parle, now Hindustan COCA-COLA BEVERAGE Pvt. Ltd.
For Coca Cola is in Patna and LUMBINI BEVERAGE Pvt. Ltd. For Pepsi range of products,
is located as Hajipur industrial area.
With the urbanisation of economy in 1991, about thirteen year after the exit of Coca-Cola from
Indian seen, an MNC (Multi National Company) globally known as PCI (Pepsi Food Ltd.) it
started bottling its products in Bihar by Steel City Beverages, Jamshedpur on 24th March 1991.
Late D. N. Kamani installed this very bottling unit in 1969. The company entered the soft drink
with the introduction of Coca-Cola and used to eater for the market of Bihar, parts of Bengal,
Orissa and Nepal. The company was the pioneer of soft drink in Bihar.
M/s Lmbini Beverages Pvt. Ltd. was established in the year of 1995.SA gentleman of Kolkata,
Khilani brothers were responsible to set up this bottling plant of Hajipur Industrial Area,
Vaishali having this motto to cope of whole North Bihar's market and to satisfy the prospective
consumers immediately. The function of organisation just started in 1996 but the production
went to production went to produce in March 1998.
It is one of those bottling units of PFL which comes under FOBO (Franchise Owned Bottling
Operation). This plant was installed with an initial investment of Rs.25 Crores. It started
producing with its full capacity i.e. 600 bottles per min. and it will be the first plant in Bihar
producing with such capacity.
5
It is operating with the help of distributors all over Bihar exclusively stocking Pepsi range of
products. Its sells its product through different distributor, of PEPSI in Bhagalpur. Though this
plant has just completed one year of establishment., yet in the very first season it has given its
competitor a very though fights. The products range produced by Lumbini Beverages Pvt.
Ltd. is as under:-
PEPSI
MIRINDA
MOUNTAIN DEW
7UP
SLICE
AQUAFINA(Mineral Water)
NIMBOOZ
Organisational Setup
Product Range
Manufacturing process of Lumbini
Beverages Pvt. Ltd.
Marketing Strategy
6
1.3.1 ORGANISATIONAL SETUP
PEPSI
Organization
M.D.
Director
C.E.O
M.D.M T.D.M.
M.E.E. B.D.M.
MERCHANDISER A.D.C.
C.E.
P.S.R
R.A
H.R. MANAGER - BIDYUT ROY
7
PLANT MANAGER - GEETA MAIPRADHAN
FINANCE MANAGER - R.K.AGARWAL
VICE PRESIDENT SALES MR.MANISH SINGH
T.D.M. - MR.PRAFULL KR.THAKUR
M.D.M. - MR.RAJESH RANJAN
A.D.C - MR.RAJEEV SINGH
8
PRODUCT RANGE
The product range produced by Lumbini Beverages Ltd is as under:-
PEPSI
MIRINDA
MOUNTAIN DEW
7UP
SLICE
MY CAN(Pepsi, 7up, Mirinda)
LEHAR(Soda)
AQUAFINA(MineraI Water)
NIMBOOZ
Figure 2
9
MARKETING STRATEGY
Marketing strategy is the complete and unbeatable plan designed specifically for attaining the
marketing objective of the firm. The market objective indicates what the firm indicate, what
the firm wants to archives, the marketing strategy provides for archiving them.
The marketing strategy is not able idea. It is a well-outlined plan, and there are deferent ways
to formulating it. Basically formulating of marketing strategy consists of two main steps.
Selecting a target market. Assembling the marketing mix, actually, the target marketing and
marketing mix together constitute the marketing strategy of the firm.
When the Pepsi food company entered in the Indian soft drink market, the market was already
prevailed by Coke and previously it was parle, Pepsi tried to establish in India with a unique
marketing policy, Pepsi took into consideration of youth segment target marker. Though the
advertisement of Pepsi highlighted the style of living of young generation with different walk
of life. Pepsi brought in its advertisement different stalwart's personalities from fields like
young cine stars, sports stars & famous personalities from different fields. It has attracted the
young generation and of course, increase the sale of Pepsi, Pepsi national and international
programs to attract the young generation.
1. Products: - that could meet the identified needs of chosen consuming groups.
3. Promotion: - the firm carries out a no. of measures like personal spellings, advertising
and sales promotion program with view to communicate the consumer and promoter of the
product.
4. Price: - it refers to the various prices to be provided to the customer before and after
sale period.
10
It is the mechanism to achieve the consumption of marketing process, striking the level price
that is accepted to the firm as well as consumer.
1. Product: - there are five lines of products of soft drink in India that is almost matched
with international quality product line.
Pepsi -200ml, 300ml, 400ml, 600ml, and 2000ml
Mirinda -200ml, 300ml, 400ml, 600ml, and 2000ml
7Up -200ml, 300ml, 400ml, 600ml, and 2000ml
Mountain Dew -200ml, 400ml, 600ml, and 2000ml
Slice -250ml, 500ml, and 1200ml
My can -250ml
Nimbooz -600ml
2. Place: - Pepsi has a strong channel of distribution, and view intermediaries command
the distribution work.
Bottler - Distributor - retailer consumer
By this simple distribution, Pepsi is doing well. The company is trying to reach at every route
Urban and village area the company has succeeded to some extent in reaching its target.
Pepsi has taken verity of tools and techniques of sales promotion. Like for example sales
promotion letters, catalogs, point of purchase (POP), display, customer services programs and
demonstration free sample.
Following are the some promotional activity of Pepsi:-Scheme: - Pepsi under Lumbini
Beverage has offered many schemes for sales promotion.
11
1.4 SWOT ANALYSIS
After doing Seven weeks fieldwork & through survey I can make it out the swot analysis for
Lumbini Beverages Pvt. Ltd. as well as for Pepsi, brand.
1. Through it has strong brand equality, brand image, it can survive in the most
competitive situation
2. It has will built market & market share, currently holds over more than percentage
market share.
5. Distribution is effected.
7. In the Organization capable leaders (heads) & dedicated employs are there
Figure 3
12
II. INTERNSHIP PROFILE
A THEORETICAL FRAME WORK OF CHANNEL OF DISTRIBUTION
Marketing channels are sets of interdependent organization involved in the process of
making a product or service available for use or consumption.
The main objective of the marketing process is to distribute the products to the actual
users. This function involves a number of sub-functions to be performed by a producer or
manufacturer. These two functions are most important first, the creation of demand is made
through the process of advertising and sales promotion activities. On the other hand the
distribution through the channels of distribution. The decision relating to the channel of
distribution is a very important decision from the firm point of view because the selected
channels affect considerable other marketing decision. Such decisions are of long term nature
and exercise their impact on the cost structure of the firm also.
By channel distribution mean the intermediaries or the process through which the goods
products are transferred from the producer to the ultimate users.
Now a day any of the producers possibly do not sell their goods directly to the final
users. There are a lot of intermediaries between producers and consumer, bearing a variety of
name performing various kinds of function. Some intermediaries like wholesalers and retailers
buy and resale taking the bill. They are known as merchant middle men and other are brokers,
representative sales agent who seeks or search for customers and negotiate on the behalf of the
producer but do not take of goods. These are called as middlemen.
The manufacturer and its distributive outlets share common objective to sell the
manufactured products at a profit. No doubt its objective differs with the marketing
circumstance.
Even though many variation of specific objective fits into some categories. These are as
follows:-
The channel of distribution is a structure which organized and presents a choice among
alternative channels of distribution of the different marketing situations faced by retailers,
whole sellers and producers with in the structure. It may be considered as a series of function
which must be performed in order to make producers efficiency.
Hajipur, Bihar
The marketing executive must undertake to following steps in order to establish the
channel of distribution for a company.
1. He/She must understand the retail and wholesales market and type of middlemen
available in both.
2. He/She must understand the various conflicts which continually exist between and
within the channel.
3. He/She must select the general channel to be used keeping in mind the goals of the
company marketing programme and the job to be done by distribution system.
4. He/She must take decision regarding be intensity of the distribution (i.e. the number
of middlemen) to be used each level and each market.
5. He/She must select the specific firms which will handle his product and then manage
the day to day working relationship with them.
6. He/She must determine the methods and the procedure in firms (i.e. use of the
transportation and warehouse facilities and services in firms making programme) in
the physical distribution of the product.
14
Types of Marketing Channels
RETAILING
Includes all the activities involved in selling goods or services directly to final
consumers for personal non-business use. A retailer or retail store is any business enterprise
whose sales volume comes primarily from retailing.
Retailers are the last but not the least in the marketing channel through whom the
eventual transfer of ownership of goods take place. The use of retailer boils down to their
superior efficiency in making goods widely available and accessible to target markets. In most
of the cases the retailers performs the important functions mentioned as under.
1. Information
2. Promotion
3. Negotiation
4. Ordering
5. Financing
6. Risk Taking
7. Physical Possession
8. Payment
9. Title
1. Specialty Store: - They sell narrow product line with deep assortment.
2. Departmental stores: - They sell several product line with each line operated as
separate department managed by specialist buyers or merchandisers.
3. Super market: - They are relatively large, low cost, low margin, high volume self
service operation designed to serve total needs for food, laundry and household
maintenance product.
15
4. Convenience Store: - These are relatively small store located near residential areas,
open long hours, seven days a week and carrying an united lines of high turn over
convenience products at slightly higher prices.
5. Discount Store: - These sell standard merchandise at lower prices with lower
margins and higher volumes.
6. Off price Retailers: - These sell the merchandise which are bought at less than
regular wholesale prices and sold as less than retail. These may be of three types
mentioned as under:
a) Factory orders
b) Independent off price retailers
c) Warehouse clubs
2. Subdivides these into lot desired by the customers gathers various items together in the
assortment wanted and
STUDY ON PRODUCTS
Product line is a group of product, that are closely related because they satisfy a class
of needs or used together or sole to the same customer groups or marketed through the same
types of outlets or fall within given price range.
16
Name Colour Flavour
Figure 4
17
2.4 Summer Internship Feedback Form
Date:
1. Attitude/Effort: His/her attitude and efforts towards the work & duties assigned during
internship.
1 2 3 4 5
Ability to meet deadlines
18
2. Works Independently: His/her ability to work independently to complete tasks with
minimum supervision.
1 2 3 4 5
Always submit assignments timely
Needs constant
supervision/help
1 2 3 4 5
Response to feedback
4. Interpersonal Skills: Degree to which intern gets along with others (co-workers,
supervisor & clients.)
1 2 3 4 5
Ability to work well in groups
19
5. Reliability: Consider of absences or degree of regularity in coming to work on regularly
scheduled work days during the period.
1 2 3 4 5
Punctuality & Regularity
Absence planned/non-disruptive
6. Ability to learn: His/her ability to understand/grasp new ideas, opinions & instructions.
1 2 3 4 5
Interest in learning new tasks
Additional Feedback/Comments
(3) Are you willing to take interns in next year? (Indicate one)
Yes
No
If no, why not?
20
(5) If an opening became available in your firm, would you consider this student for a full-
time position?
Yes
No
21
III. KEY OBSERVATION
Promotional activities consist of various means of communicating persuasively with the target audience.
The important methods are:-
1. Advertisement:- Where n identified sponsors pays media (such as TV) to transmit to target
consumer.
2. Personal selling:- Where sales representative employed by the firm engage in interpersonal
communication with individual consumers and prospective customers.
4. Publicity and Public relation:- help to stimulate supportive news items about the firm and
its product that have greater credibility with public than advertisement.
Of all the methods of promotional activities that constitute the promotion mix, sales promotion is the only
method that makes use of incentives to complete the "Push pull promotional strategy" of motivating the
sales force, the distributor and the consumer transacting a sale.
According to "American Marketing Association" sales promotion refers "Those activities other
than personal selling, advertising and publicity that stimulate consumer purchasing and various
other non-recurrent selling efforts not in ordinary". "Sales promotion" is also known by the
name of "Extra Purchasing Value (E.P.V.)".
22
ADVERTISEMENT & SALES PROMOTION IN LUMBINI
BEVERAGES PVT. LTD.
Advertising and sales promotion activities play a vital in entire marketing efforts. Without
these aspects a quality product cannot survive in the market. Advertising and sales promotion
tools are most essential for the modern global marketing. This chapter has therefore been
devoted to the studies of advertising and sales promotion activities in M/S Lumbini Beverage
Pvt. Ltd.
The two basic objectives for carrying out such various promotional activities by Lumbini
Beverages Pvt. Ltd. is "to generate more sales as well as to create and maintain an image of its
product "L.B.P.L. carries out its promotional activities as controlled ad integrated programmes
of communication and material design present its soft drinks to the perspective customers. It
also helps in communicating the need satisfying of soft drink to facilitate the sales eventually
to contribute towards the profit in long run.
The tools used by L.B.P.L. for fulfilling the various purposes of its promotional activities are
the following:-
23
3.2 Practices Followed
WAREHOUSING
Every company has to store its finished goods until they sold. A strong facility is
necessary because production and consumption cycles rarely match.
Warehousing is not a simply storing activity but a package of services that enables the
smooth running of the industry.
The stores must be in constant touch with the use department in order to provide
uninterrupted services to the manufacture and its decision since working capital is locked up
in the warehousing stores in equal to money.
Every distributor keeps a minimum stock of different products of the product line so
that the uninterrupted supply could not affect.
In the industrial sector service of optimization where boils down to any exercise of
optimization where limited available resources are to be distributed equitably. The
problem arises from the material that are in stock the form of capital cost, storage loss,
pilferage obsolescence, insurance, handling, documentation etc. Services level that can be
maintained and hence the concept stores in money should be understood by everybody in the
organization
INVENTORY DECISION
So far as the process of branding and packaging is concerned the Lumbini Beverages Pvt.
Ltd. Along with the authorized bottle in India adopt the same pattern.
(2) Wholesaling
Wholesaling includes all the activities involved in selling goods or services to those who buy
for resale or business use. Manufactures use wholesalers because wholesalers can perform
function better and more cost effectively than the manufacture can. These functions are not
limited to selling and promoting, buying and assortment building bulk barking, warehousing,
transporting financial risk bearing dissemination of marketing information and provision of
management services and consulting.
Like retailers wholesaler must decide on target market, product assortment and services
promotion and place. The most successful wholesalers are those who adopt their services to
meet and target customers needs, recognizing that existing to add value to the channel.
3.3 Challenges
Currently in India, a great deal of pressure is being put on the government to impose a heavy
tax on beverages with high sugar content. Budget meetings will take place in January 2017,
and the GST panel (Goods and Services Tax Bill panel) led by chief economic adviser
Arvind Subramanian previously wanted a 40% sin tax on carbonated beverages, tobacco, and
luxury cars. The current GST sin tax is 17% 18%.
This recommendation by the GST panel might seem outlandish, but first consider some facts:
25
IV. Learning & Value Addition
INTRODUCTION
Marketing research is a process of collecting and analysing marketing and ultimately to arrive
at a certain conclusion. Lumbini Beverages Pvt. Ltd. is a concern which is marketing the
product having different brands thus a survey method of marketing research is essentially
exploratory in nature thus I opted for "Questionnaire" method for conductive survey about the
marketing of Pepsi though retailer in Bhagalpur.
2. It indicates the present future trend of industry and points out how the company's affairs
are to be turned up.
26
Figure 5
27
2) They look good on your rsum
The graduate job market is incredibly competitive, so having a full rsum that includes
actual industry experience is sure to be a valuable asset. It has the potential to make you stand
out from the competition.
Employers can read a lot from a sheet of paper. Having a number of internship experiences
will show that you are keen to gain employment in the industry and will also indicate to
employers that you have the right skills and enough experience to take on a permanent paid
position. Dont just leave an internship until your final year of study; the more internships
you complete, the fuller your rsum will become and the more attractive you will look to
future employers.
28
V. BEST PRACTICES AND STUDIES
I was given to study to various distribution and marketing aspect, which are responsible for
increasing market share of Pepsi in under Bhagalpur Depot, Patna.
I studied:-
4. Signage i.e. hoarding, glow signboards and wall painting (for advertisement) of Pepsi
and Coca Cola in the market.
Figure 6
29
5.3 Growth opportunities
The soft drink industry is looking for growth beyond developed markets like the US, where
the reach of carbonated soft drinks has reached a saturation point. The Coca-Cola Company
(KO) derived 58% of its 2013 revenues internationally. PepsiCo, Inc. (PEP), which is a
leading food and beverage company, generated 49% of its revenues outside the US.
Growth prospects
The per capita consumption in a region measures the average number of 8-ounce servings
consumed each year. For Coca-Cola, per capita consumption in 2012 was 745 in Mexico
and 401 in the US, as the chart above shows. But per capita consumption was
comparatively low in countries such as China and India, indicating that in many countries,
soft drinks are not consumed as widely as in the domestic market.
Companies including PepsiCo and Coca-Cola are focusing on these growth regions to
increase per capita consumption by investing in manufacturing and distribution networks, as
well as advertising.
Positive trends
Growing populations and better standards of living in emerging markets will drive demand
for beverages. Rising health awareness among consumers across the globe is moving them
toward better options including ready-to-drink tea, bottled water, and low-calorie products.
The long-term prospects for growth in emerging economies are promising. In the short-term,
however, there might be certain impediments such as lower-than-expected consumer
spending growth in countries such as China.
Other soft drink manufacturers such as Monster Beverage Corporation (MNST) and
Mondelez International, Inc. (MDLZ) are also looking for international growth opportunities.
An alternative way to invest in the soft drink industry is through the Consumer Staples Select
Sector SPDR ETF (XLP).
30
MARKET FINDINGS AND ANALYSIS
ROUTE:- Bhikhanpur DEPOT, BHAGALPUR
Product Monthly Sale in Carat Market Share
Pepsi 3900 41%
Coca Cola 5520 59%
Total 9420
Table 1
MARKET SHARE
Pepsi
41%
Coca Cola
59%
31
2. EXCLUSIVE OUTLETS:
OUTLETS
20%
15%
Free Bottle Scheme
65% Prize
Discount
32
4. VISI COOLERS:
VISI COLLERS
6%
14%
33
4. SIGNAGE:
Table 4
SIGNAGE
6%
14%
Free Bottle Scheme
Prize
19%
61% Discount
Other
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VI. SUGGESTIONS & RECOMMENDATIONS
5.1 CONCLUSION
1. The maturity of retailer deal in the entire brand of Pepsi and Coke.
2. The study reveals that the market share of Pepsi under Bhikhanpur Depot, Bhagalpur
is 39% as compared to Coca-Cola is 69%. Thus Pepsi having a clear edge over Coca-Cola.
3. The study reveals the immediate steps are not taken in the replacement of damage or
breakage goods. The rival company Coca-Cola is very quick in this area and efficient also
4. No. of route vehicles for delivery of goods is less than the require one for proper
coverage of whole area under Bhikhanpur Depot, Bhagalpur. Thus just in time and efficient
delivery is effected.
5. The demand of Coke exceeds the demand of Pepsi.
6. The Lumbini Beverage Pvt. Ltd. plays attention in deferent marketing function also
these are :-
a. Anticipating & recognition of demand.
b. Stimulation of demand.
c. Satisfaction of demand.
7. Company at certain interval conduct market survey to evaluate demand trend.
Consumption.
8. Patron & nature of growing competition in spite of the fact that soft drink has already
high & almost stable demand. So company under takes deferent promotional schemes to enjoy
them.
I had conform my study to different specify direction. As for Lumbini Beverage Pvt. Ltd., it
can be said that it does not have any measure draw back in marketing activity still more
efficient distribution by dealers & more effective sales executives & sales forces are require.
Though the over all grip maintenance is satisfactory and company can retain market share and
also can upgrade it.
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6.2 SUGGESTION & RECOMMENDATION
The above study elicits the fact that sales department of Lumbini Beverages Pvt. Ltd. should
introduced some changes in its marketing activities to make it more rational.
1. A healthy relationship should be developed by the company exclusive with the retailers.
2. As most of the dealers have complaint that the salesperson does not tells them about
schemes. For this before launching, any scheme company should advertise it by distributing
Pamphlets to the dealers mentioning the period of the scheme and time-to-time proper check
is required.
3. No. of route vehicles for delivery of goods should be increased in no. for proper
catering in the entire area of Patna effectively & efficiently.
4. Company should make fridge available at maximum outlets and rearing of its
misleaders (refrigerators) and glow signboard, which are out of order in an outlet up to the
level, thus it is parallel of even better than competitors.
5. Proper supply of all brand of PEPSI.
6. The commitment of supplying gifts items or incentive should be carried out on or
before the scheduled time.
7. The distribution should keep literate and experienced salesperson because they can
convince to retailer easily and sold out the product in the market.
8. The company should supply its banners, signboards etc. as an advertisement media
impartially to all the parties of all areas, which will as usual, became sales promotion tool for
them.
9. Distributor and retail outlets feedback should be taken back time-to-time to trace the
actual existing problem related to there and the market.
10. Company should devolve policy. So that the soft drink are made available at all the
outlets during the peak seasons.
11. Leakage and blasted bottles are per policy of the company are taken back but generally
these bottle may of the time are not taken back as result an inharmonious relation developed
between the company and retailers this should be rectify it has adverse effect in the brand of
the company.
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PEPSI
A STUDY OF RETAIL OUTLETS
QUESTIONNAIRE FOR RETAILERS
37
5. Q. Which company's signage you have in your outlet?
(a) Pepsi (b) Coca-Cola
(c) Both (d) No Signage
6. Q. Which type of signage you have in your outlet?
(a) Flex Board (b) Dealer Board
(c) Glow Sign Board (d) Wall Paintings
7. Q. Which company's Visi-Cooler you have in your outlet?
(a) Pepsi (b) Coca-Cola
(c) Own (d) Mixed
8. Q. What is the delivery schedule of Pepsi in your outlet?
(a) Daily (b) Weekly
(c) Alternate (d) Twice a week
9. Q. Which medium affects the sales most?
(a) Television (b) Magazine/Newspaper
(c) Both (d) Wall painting/Hoarding
10. Q. Do you think that aggressive advertisement further increase the
volume of Pepsi?
(a) Yes (b) No
11. Q. What kind of promotional activities affect sale mostly?
(a) Free bottle scheme (b) Coca-Cola
(c) Discount crates (d) Others
12. Q. What is your annual sale?
(a) Pepsi (b) Coca-Cola (c) Both5. Q. 13.
Which company's signage you have in your outlet?
38
BIBLIOGRAPHY
Y
(a) Marketing Management, The : Philip Koteler, 10th Edition, Prentice
Millennium Edition Hall Publication
(b) Marketing Management : Ranjan Saxena, 3rd Edition, Tata Mc
Graw Hill Publication
(c) Research Methodology : C.R. Kothari, 2nd Edition, New Age
International (P) Ltd. Publishers
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