You are on page 1of 92

PROJECT REPORT

ON

“MARKET SHARE ANALYSIS OF PEPSI


IN DELHI REGION”

(Submitted in partial fulfilment for BBA, C.C.S University, Meerut)

SUBMITTED TO: SUBMITTED BY:


Mrs. Ankita Ruchi Kumari
Asst. Professor 1591909686
Department of Management BBA (3rd Year)

1
DECLARATION

I hereby declare that the project entitled “MARKET


SHARE ANALYSIS OF PEPSI IN DELHI
REGION” submitted for the BBA Degree is my
original work and the project has not formed the
basis for the award of any degree, associateship,
fellowship or any other similar titles.

Signature of the Student:


Place: Noida
Date:

2
CERTIFICATE

This is to certify that the project entitled “ MARKET

SHARE ANALYSIS OF PEPSI IN DELHI


REGION” is the original work carried out by Ruchi
Kumari student of BBA C.C.S. University, Meerut,
during the year 2018, in partial fulfillment of the
requirements for the award of the Degree of BBA and
that the project has not formed the basis for the award
previously of any degree, diploma, associateship,
fellowship or any other similar title.

Signature of the Guide:


Place: Noida
Date:

3
ACKNOWLEDGEMENT

An individual cannot do project of this scale. I take this


opportunity to express my acknowledgement and deep sense of
gratitude to the individuals for rendering valuable assistance and
gratitude to me. Their inputs have played a vital role in success of
this project.
I express my sincere thanks to my project guide Mrs. Ankita, Asst.
Professor, Department of Management, Institute of Management
Studies, Noida for her generous support, constant direction and
mentoring at all stages of project and was a real source of help and
assistance to me during the course of project.
It gives me immense pleasure to thank all those who had helped me
directly or indirectly to complete this Dissertation Report.

Ruchi Kumari

4
5
Table of Content

CHAPTER PAGE NO.

1) INTRODUCTION

1.1) Overview of the industry as a whole 7

1.2) History/Background 10

1.3) Company profile 19

1.4) Competition information 34

1.5) SWOT analysis of the organization 43

2) METHEDOLOGY

2.1) Objective 48

2.2) Scope of the study 50

2.3) Managerial usefulness of the study 54

6
2.4) Methodology 55

2.5) Limitations 57

3) CONCEPTUAL DISCUSSION

3.1) VISI 58

3.2) RACK 62

3.3) Other Collaterals 62

4) DATA ANALYSIS 63

5) FINDINGS 71

6) CONCLUSINS & RECOMMENDATIONS 82

LIST OF REFERENCES 88

ANNEXURE 89

CHAPTER-1 INTRODUCTION

1.1) OVERVIEW OF THE INDUSTRY

Beverage Industry

A drink, or beverage, is a liquid specifically prepared for human

consumption. In addition to basic needs, beverages form part of the

culture of human society.

← Types of beverage

← 1.1 Water

← 1.2 Alcoholic beverages

← 1.3 Non-alcohol beverages

7
← 1.4 Soft drinks

← 1.5 Hot beverages

← 1.6 Other

Water

Essential to the survival of all organisms, water has historically been an

important and life-sustaining drink to humans. Excluding fat, water composes

approximately 70% of the human body by mass.

Distilled (pure) water is rarely found in nature. Spring water, a natural

resource from which much bottled water comes, is generally imbued with

minerals. Tap water, delivered by domestic water systems in developed

nations, refers to water piped to homes through a tap. All of these forms of

water are commonly drunk, often purified through filtration.

Alcoholic Beverages

An alcoholic beverage is a drink containing ethanol, commonly known as

alcohol, although in chemistry the definition of an alcohol includes many other

compounds. Alcoholic beverages, such as wine, beer, and liquor have been

part of human culture and development for 8,000 years.

Non-Alcohol Beverages

Non-alcoholic beverages are drinks that would normally contain alcohol, such

as beer and wine but are made with less than .5 percent alcohol by volume.

The category includes drinks that have undergone an alcohol removal process

such as non-alcoholic beers and de-alcoholized wines.

← Non-alcoholic variants:
8
← Low alcohol beer

← Non-alcoholic wine

← Sparkling cider

Soft Drinks

The name "soft drink" specifies a lack of alcohol by way of contrast to the

term "hard drink" and the term "drink", the latter of which is nominally neutral

but often carries connotations of alcoholic content. Beverages like colas,

sparkling water, iced tea, lemonade, squash, and fruit punch are among the

most common types of soft drinks, while hot chocolate, hot tea, coffee, milk,

tap water, alcohol, and milkshakes do not fall into this classification. Many

carbonated soft drinks are optionally available in versions sweetened with

sugars or with non-caloric sweeteners.

Hot Beverages

Hot beverages, including infusions. Sometimes drunk chilled.

Types of Hot-Beverages:

1. Coffee-based beverages

2. Hot chocolate

3. Hot cider

4. Glühwein

5. Tea-based beverages

5.1 Flavored teas (chai etc.)

5.2 Green tea

5.3 Pearl milk tea

9
5.4 Tea

6. Herbal teas

7. Roasted grain beverages


Others

Some substances may either be called food or drink, and accordingly be eaten

with a spoon or drunk, depending on solid ingredients in it and on how thick it

is, and on preference:

← 1. Soup

← 2. Yogurt

1.2) HISTORY

2008 Milestones

 PepsiCo Foundation announces two major new grants to WaterPartners and

Safe Water Network programs to provide access to safe water and sanitation in

developing countries

 PepsiCo Again Named to the Dow Jones Sustainability Index

 PepsiCo Agrees to Buy Bulgaria's Leading Nuts and Seeds Company

10
 PepsiCo Announces Initiatives With the Earth Institute and H2O Africa to

Drive Sustainable Water Practices

 Forbes Names PepsiCo Among Its Best Big Companies

 PepsiCo India Commissions First Remote Wind Turbine to Generate

Renewable, Clean Energy

 CRO Names PepsiCo to Top 25 100 Best Corporate Citizens 2008

 PepsiCo to Buy Russian Juice Leader, Lebedyansky

 Employees Lead Effort to Make Chicago Plaza First LEED-Certified PepsiCo

Headquarters

 Gatorade Launches Gatorade Tiger with Comprehensive Integrated Marketing

Campaign

 PepsiCo Honored with 2008 Energy Star Partner of the Year Award

 UK Vitamin Water Brand- V Water Acquired by PepsiCo

 Quaker Plant in Cedar Rapids Closes and Reopens Facility Due to Flooding to

Protect Employees

 PepsiCo Foodservice and Naked Juice Expand Starbucks Presence

 Gatorade Sports Science Institute Gathers World's Leading Researchers on

Protein Nutrition

 PepsiCo International's China Foods Wins "China's Top Leaders 2008" Award

 Wall Street Journal Article Recognizes PepsiCo for Leadership in Employment

of People with Different Abilities

 PepsiCo and Frito-Lay Join SmartWay in Commitment to Reduce Greenhouse

Gas Emissions

 PepsiCo Beats Coke in Race to Launch New Natural Sweetener (Stevia)

 PepsiCo France Recognized as "Great Place To Work" by Institute Survey

11
 PepsiCo Commits to Reducing Acryalmide Levels in Potato Chip Products

and Restructured Potato Snacks in California

 Subway Names PepsiCo "Vendor of the Year" for Sustainability Leadership

 Tazo Tea Joins Pepsi Lipton Partnership

2007 Milestones

 PepsiCo signs Maria Sharapova for International endorsement of Gatorade and

Tropicana

 Tropicana launches Tropicana Healthy Heart with Omega-3s, the first national

orange juice to include omega-3s

 Ruffles unveils new packaging to reflect its switch to 100% pure sunflower oil

 PepsiCo announces new Diversity & Inclusion Leadership Award inspired by

Steve Reinemund

 Mountain Dew and AMP Energy sponsor the Winter X Games

 Aquafina launches Aquafina Alive—a low calorie, vitamin-enhanced water

beverage

 Quaker Oats debuts new Quaker Life Chocolate Oat Crunch Cereal

 Flat Earth Fruit and Vegetable Crisps hit stores nationally

 Fritos Corn Chips celebrates 75th Anniversary with retro packaging

 Near East celebrates its 45th Anniversary with a recipe contest

12
 Tropicana launches Tropicana Fruit Squeeze, a 20-calorie drink with real

Tropicana fruit juice

 Lay's launches 'Share the Joy' program to help the Make a Wish Foundation

raise funds

 Pepsi-Cola North America launches Diet Pepsi MAX

 Oh Boy! Oberto brand debuts 100-calorie Jerky Bites in Original Beef and

Teriyaki Turkey flavours

 IZZE Launches IZZE Esque, a low-calorie, nothing artificial beverage in three

flavours: Sparkling Mandarin, Sparkling Black Raspberry and Sparkling

Limon.

 Propel unveils new 'Fit Has a Feeling' campaign and New Powder Packets for

On-The-Go

 New Quaker Mini Delights launches offering great taste and portion control in

a satisfying serving of mini snack cakes

 Diet Pepsi Jazz introduces new Caramel Cream flavour

 Grandma's Cookies offering limited-edition flavours for spring: Iced Lemon

and Sugar flavours

 PepsiCo launches Smart Spot Dance! Initiative with celebrities Mario Lopez

and LaChanze to help African American and Hispanic families lead healthier,

more active lifestyles

 Walkers is the first major food brand in the world to display a carbon footprint

reduction logo on its packs

 SoBe Beverages launches SoBe Essential Energy

 PepsiCo Announces 25% Dividend Increase and Raises Share Repurchase

Target; Nooyi Assumes Chairman Title

 EPA Names PepsiCo 2007 ENERGY STAR(R) Partner of the Year


13
 PepsiCo Makes Largest Corporate Purchase of Renewable Energy Certificates

 Pepsi launches "Design Our Pepsi Can" National Promotion

 Tropicana unveils New Organic Line – Tropicana Organic

 QTG facility earns an Energy and Environmental Design (LEED) "Gold"

certification from the U.S. Green Building Council

 PCNA and Frito-Lay launch "Shrek the Third" National Summer Promotion

 Indra Nooyi receives the Outstanding American by Choice Award

 PepsiCo makes Fortune magazine's '100 Best MBA Employers' list

 Diet Pepsi Launches New Look, New Ad Campaign and New Attitude – Diet

Pepsi's "More Cola Taste"

 Pepsi, Diet Pepsi and Mountain Dew topped the 2007 Brand Keys Customer

Loyalty Engagement Index which tracks consumers' relationships with brands

 PepsiCo joins U.S. Climate Action Partnership as part of its commitment to

sustainability

 Lipton introduces Lipton PureLeaf

 EPA Honors Frito-Lay's Jonesboro facility for its sustainability efforts to

conserve energy and resources

 Cold Stone Creamery and Mountain Dew Join Forces to Introduce Dew Iced

 Mountain Dew Unveils unique, limited edition aluminum bottles

 Tostitos introduce Flour Tortilla Chips and two new Dairy Dips Nationwide

 PepsiCo named a 2007 Working Mother 'Best Company for Multicultural

Women'

 PepsiCo wins two awards –Best Environmental/Wildlife Campaign and Best

Cause Marketing Event -- at Fifth Annual Cause Marketing Halo Awards

 Frito-Lay teams up with the Make-A-Wish Foundation to help children with

life-threatening diseases
14
 Dunkin' Donuts launches SoBe Energy Coolatta

 Pepsi wins Webby Award for its execution of the "Best Sports Website"

 PepsiCo and Pepsi Americas, Inc jointly acquire Sandora, a Leading Juice

Company in Ukraine

 PepsiCo earns spot in Black Enterprise Magazine's '40 Best Companies for

Diversity'

 Lay's and Doritos Campaigns win Top PR Awards

 Doritos 'Crash the Super Bowl' program Wins International Advertising Award

at the International Advertising Festiva

2006 Milestones

 Quaker Snacks Unveils Breakfast Cookies

 Doritos unveils new packaging, including an updated logo

 PepsiCo Launches Pepsi Limon in Peru

 PepsiCo Completes Acquisition of Stacy's Pita Chip Company

 Tropicana Now Offering OJ with Benecol

15
 PepsiCo Foodservice Partners With Cracker Barrel to Serve Up Fritos-

Branded Menu Item

 PepsiCo Foodservice Pours Two New Account Wins: Famous Dave's of

America and Roundtable Pizza

 Pepsi Celebrates 20th Consecutive Super Bowl With New Diet Pepsi

Campaign

 North American Coffee Partnership Launches New Starbucks Beverages,

Starbucks Iced Coffee, Starbucks Iced Coffee Light as well as Strawberries

and Creme Frappuccino and Starbucks Doubleshot Light

 PepsiCo India re-launches Mirinda

 SoBe Launches New SoBe Life Water

 Cheetos kicks off the biggest marketing campaign in its history with

"Undercover Chester," an integrated communications platform that asks

consumers to help Chester Cheetah recover the stolen recipe for Cheetos

 In selected cities cross the United States, Pepsi distributes more than three

million free cans of newly reformulated Diet Mountain Dew, marking the

largest single-day sampling effort in company history

 Frito-Lay announces the launch of a new line of snack chips called Lay's

Sensations and Tostitos Sensations

 Frito-Lay launches Tostitos Multigrain; new snack brings flavor of four

wholesome grains to one of America's favorite tortilla chips

 Sam's Club teams with Aquafina to "Return the Warmth" to local communities

through a national large-scale recycling program. The 50 communities to

collect the most Aquafina bottles and deposit them at designated collection

locations receive a $1,000 grant from Sam's Club in addition to an assortment

of fleece jackets made from recycled plastic bottle material


16
 Lay's Introduces Hot 'n Spicy KC Masterpiece BBQ Potato Chips

 Grammy award winning artist Mariah Carey writes and records original

ringtones for the Pepsi Cool Tones & Motorola Phones promotion.

 Rice-A-Roni introduces a new line of whole-grain side dishes

 Pepsi Joins Bipartisan Alliance, Adopts New School Policy to Promote

 Healthier Lifestyles for Elementary, Middle and High School Students

 Frito-Lay cuts saturated fat in Lay's, Ruffles by more than 50% with move to

NuSun™ Sunflower Oil

 Pepsi unveils new Dole Sparklers and Sierra Mist Cranberry Splash

 PepsiCo announces that it will be the official, exclusive food and beverage

partner of the highly anticipated Superman Returns film

 Starbucks and PepsiCo sign a distribution agreement for Ethos Water

 PepsiCo, the National Hockey League (NHL) and the National Hockey

League Players' Association (NHLPA ) sign an exclusive multi-year beverage

and snack deal

 PepsiCo, National Hockey League and National Hockey League Players

Association sign multi-year deal, giving PepsiCo exclusive rights in the

beverage, sports beverage, bottled water and snack categories. With this deal,

Gatorade becomes the official sports drink of NHL

 PepsiCo Mexico celebrates the official launch of the 'Vive Saludable' program

illustrating their commitment to promote healthy lifestyles for consumers and

employees and together help reduce the risk of nutrition-related health

problems, including obesity

 Diet Pepsi launches Jazz, a new line of zero-calorie colas available in rich

flavors like Black Cherry French Vanilla and Strawberries & Cream

17
 PepsiCo introduces Ben & Jerry's Milkshakes, a rich, creamy drinkable treat in

three classic flavors--Cherry Garcia, Chunky Monkey and Chocolate Fudge

Brownie

 Tropicana debuts Tropicana Pure--a new line of 100% premium juices

 PepsiCo is added to the Dow Jones Sustainability North America Index (DJSI)

 Quaker Oats debuts its new Quaker Oatmeal Crunch, warm oatmeal with the

crunchy texture of cold cereal

 Indra Nooyi named Chief Executive Officer of PepsiCo as of October 1, 2006

 Frito-Lay debuts action cups

 Frito-Lay kicks of its nationwide rollout of Lay's with 100% Pure Sunflower

Oil

 Pepsi acquires IZZE beverage company

 Arby's names Pepsi-Cola as its Food and Beverage Supplier Award winner

 Golden Corral restaurants and Pepsi announce a multi-year agreement making

Pepsi the chain's preferred beverage supplier in all locations

 Grandma's Cookies releases 2 limited-edition 'fall favorites' flavors—Spiced

Molasses and Fall Fudge Chip

 Cold Stone Creamery announces a multi-year agreement making Pepsi its

exclusive beverage supplier

 Frito-Lay North America signed agreement with the Alliance for a Healthier

Generation for a new policy for selling our foods in schools

 Frito-Lay launches new Baked!Tostitos Scoops! Tortilla chips, with lower

calorie and lower fat benefits

 Pepsi signs 5-year sponsorship renewal with Major League Baseball

Properties making Pepsi the "Official Soft Drink of Major League Baseball"

18
 PBSG Parkwood and Frito-Lay headquarters associates raise more than $1.8

million dollars in the American Heart Association Walk

 PepsiCo announced intent to acquire Naked Juice Company

1.3) COMPANY PROFILE

PepsiCo, Inc.

Type Public (NYSE: PEP)


Founded New York, New York (1965)
Headquarters Purchase, New York
Area served Worldwide
Key people Indra K. Nooyi (Chairwoman), (President) & (CEO)
Food
Industry
Non-alcoholic beverage
Products Pepsi

Diet Pepsi

Mirinda orange and Lemon

19
Mountain Dew

7up

Tropicana Products

Gatorade

Aquafina

Lehar

Slice

Quaker Oats

Lay's

Cheetos

Lehar

Kurkure

Revenue ▲ US$ 63.525 Billion (2017)


Operating
▲ US$ 10.509 Billion (2017)
income
Net income ▲ US$ 4.908 Billion (2017)
Total assets ▲ US$ 79.804 Billion (2017)
Total equity ▲ US$ 10.981 Billion (2017)
Employees 264,000 (2016)
PepsiCo Americas (PepsiCo Americas Food, PepsiCo Americas
Divisions
Beverages), PepsiCo International
Website PepsiCo.com

PepsiCo gained entry to India in 1988 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. Others claim that firstly Pepsi

was banned from import in India, in 1970, for having refused to release the list

20
of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on the

market shortly afterwards.

PepsiCo Mission

"To be the world's premier consumers products, the company focused on

convenience foods and beverages. We seek to produce healthy financial

rewards to investors as we provide opportunities for growth and enrichment to

our employees, our business partners and the communities in which we

operate. And in everything we do, we strive for honesty, fairness and

integrity."

Corporate Profile

PepsiCo in INDIA

PepsiCo entered India in 1989 and has grown to become one of the country’s

leading food and beverage companies. One of the largest multinational

investors in the country, PepsiCo has established a business which aims to

serve the long term dynamic needs of consumers in India.

PepsiCo India and its partners have invested more than U.S.$700 million since

the company was established in the country. PepsiCo provides direct

employment to 4,000 people and indirect employment to 60,000 people

including suppliers and distributors.

PepsiCo nourishes consumers with a range of products from treats to healthy

eats that deliver joy as well as nutrition and always, good taste. PepsiCo

India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP,


21
Mirinda and Mountain Dew, in addition to low calorie options such as Diet

Pepsi, hydrating and nutritional beverages such as Aquafina drinking water,

isotonic sports drinks - Gatorade, Tropicana100% fruit juices, and juice based

drinks – Tropicana Nectars, Tropicana Twister and Slice. Local brands – Lehar

Verves Soda, Dukes Lemonade add to the diverse range of brands.

PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty snack

market and all Frito Lay products are free of trans-fat and MSG. It

manufactures Lay’s Potato Chips, Cheetos extruded snacks, Uncle Chipps and

traditional snacks under the Kurkure and Lehar brands. The company’s high

fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options

enhance the healthful choices available to consumers. Frito Lay’s core

products, Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran

Oil to significantly reduce saturated fats and all of its products contain

voluntary nutritional labelling on their packets.

The group has built an expansive beverage and foods business. To support its

operations, PepsiCo has 43 bottling plants in India, of which 15 are company

owned and 28 are franchisee owned. In addition to this, PepsiCo’s Frito Lay

foods division has 3 state-of-the-art plants. PepsiCo’s business is based on its

sustainability vision of making tomorrow better than today. PepsiCo’s

commitment to living by this vision every day is visible in its contribution to

the country, consumers and farmers.

Performance With Purpose

Performance with Purpose articulates PepsiCo India's belief that its businesses

are intrinsically connected to the communities and world that surrounds it.
22
Performance with Purpose means delivering superior financial performance at

the same time as we improve the world.To deliver on this commitment,

PepsiCo India will build on the incredibly strong foundation of achievement

and scale up its initiatives while focusing on the following 4 critical areas that

have a business link and where we believe that we can have the most impact.

PepsiCo PepsiCo

India continues to replenish water and India’s Agri-partnerships with farmers

expand its expertise in water help farmers across the country earn

conservation. more.

PepsiCo PepsiCo India

India continues to convert Waste to will stay committed to the health and

Wealth, to make our cities cleaner. well-being of children. It will continue to

This award winning initiative will provide children with a healthy and fun

establish Zero Solid Waste centres portfolio while simultaneously tackling

in districts throughout the country the calories out’ side of the equation by

expanding its Get Active programme for

kids, especially for school going children.


Organizational Values

23
Care for customers, consumers and the world we live in. We are driven by

an intense, competitive spirit in the marketplace, but we direct this spirit

toward solutions that achieve a win for each of our constituents as well as a

win for the corporation. Our success depends on a thorough understanding of

our customers, consumers and communities.

Sell only products we can be proud of. The test of our standards is that we

must be able to personally endorse our products without reservation and

consume them ourselves. This principle extends to every part of the business,

from the purchasing of ingredients to the point where our products reach the

consumer's hands.

Speak with truth and candor. We speak up, telling the whole picture, not

just what is convenient to achieving individual goals. In addition to being

clear, honest and accurate, we take responsibility to ensure our

communications are understood.

24
Balance short term and long term. We make decisions that hold both short-

term and long-term risks and benefits in balance over time. Without this

balance, we cannot achieve the goal of sustainable growth.

Win with diversity and inclusion. We leverage a work environment that

embraces people with diverse backgrounds, traits and different ways of

thinking. This leads to innovation, the ability to identify new market

opportunities, all of which helps develop new products and drives our ability

to sustain our commitments to growth through empowered people.

Respect others and succeed together. This company is built on individual

excellence and personal accountability, but no one can achieve our goals by

acting alone. A spirit of fun, our respect for others and the value we put on

teamwork make us a company people enjoy being part of, and this enables us

to deliver world-class performance.

25
PRODUCTS RANGE IN INDIA:

Pepsi

Diet Pepsi

Mirinda

Lemon & Orange

Mountain Dew

26
7up

Tropicana

Gatorade

Aquafina

27
Slice

Nimbooz

Quaker Oats

Lay's

28
Cheetos

Lehar

Kurkure

29
PROBLEMS FACED BY THE ORGANIZATION

Pesticide Residuals Controversy-

• 6th, August, 2003 – The Delhi based Center for Science and Environment

(CSE) reveals that it has conducted a study on samples of 12 major soft drink

brands sold in the country for the residual levels of pesticides and found the

levels to be far too high when compared with the same in the samples from

developed countries.

• 7th, August, 2003 – Pepsi Bolivia comes up with a press release stating that

all Pepsi products conform to the most stringent of quality standards world

over. The regular testing and stringency norms at Pepsi, it seems, require the

most sophisticated and specialized tests and equipment to be able to detect the

pesticide residue at 0.1 parts per billion levels. Moreover, CSE is not a

government accredited body certified for the capability of carrying any such

tests, says the press release. The press release also cites the name of “an

independent world-class laboratory” – VIMTA, which was accredited by the

National Accreditation Board for Testing & Calibration for Laboratories

(NABL), as having tested the Pepsi products against several stringent norms.

Mutual mudslinging begins as the company openly questions the credibility of

the tests done by CSE and its capability in conducting such tests.

Matter of Contention-The presence of pesticide residues in the samples of

soft drinks manufactured and distributed in India by the Pepsi India holding

company are at levels greater than those present in the samples of similar

products in US and Europe. Each of the three major parties involved, i.e., The

Cola companies, CSE and the government, differ on what is acceptable

standard for the pesticide residue levels in the soft drinks. While the Cola

30
companies contend that their products in India are as safe as they are

elsewhere, CSE is particular about the fact that the pesticides present in the

soft drinks are carcinogenic in nature and the Cola companies are apathetic

about this fact. The government neither cracked the whip on the Cola

companies, nor did it play dumb spectator.

The government says that while it is true that the residue levels of pesticides in

soft drinks are above the EEC norms, they are not as high as those values

reported by CSE.

The matter has led to contemplation of setting criteria for the standard levels

of pesticide residues in non-alcoholic beverages in India. The issue is alive for

the past three years and no specific measures have come out till now in this

regard.

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

tooth decay.

31
ORGANIZATION HIERARCHY

Chairman

President

Unit Manager

TDM

ADC

Customer Executive Customer Executive

Distributers A, B, C Distributers E, F

Route Agents Route Agents

Helper Helper

32
MARKET OF PEPSI

Delhi is a metro city and it is the capital of India. In Delhi there are more than

one lakh soft drink outlets. PepsiCo cover all the outlets through their

distribution channel for supply. In PepsiCo all the management work done by

Gurgoan office and all the Delhi is divide into three major area JAI DRINKS

PVT. LTD (JDPL), PEARL DRINKS LTD(PDL) and TRANS YAMUNA

(TY) for the distribution of PepsiCo.

PEPSICO IN DELHI

JAI DRINKS PEARL DRINKS


TRANS YAMUNA
LIMITED LIMITED

33
1.4) COMPETITION INFORMATION

The Cola Wars was a campaign of mutually-targeted television

advertisements and marketing campaigns in the 1980s and 1990s between soft

drink manufacturers The Coca-Cola Company and PepsiCo

Pepsi and Coca-Cola had/have different brands of soda competing with each

other:

Type Pepsi version Coke version

Dark Cola Pepsi Coca-Cola

Diet Coke
Diet Pepsi / Pepsi Light
Tab
Diet / Low calorie Pepsi ONE
Coca-Cola Zero
Pepsi Max
Coca-Cola Light

Sierra Mist

7 Up (manufactured by
Lemon Lime Soda Sprite
Cadbury in the USA and

by PepsiCo elsewhere)

Tropicana Twister

Orange Soda Slice Fanta

Mirinda

Orange juice Tropicana Minute Maid

Water Aquafina Dasani

34
Bonaqua

Kinley

Sports Drink Gatorade Powerade

Citrus Soda Mountain Dew Mello Yello

Mountain Dew MDX Vault

Fresca

Surge (discontinued)

Coca-Cola with Lime


Lime-Flavored Pepsi Lime
Diet Coke with Lime

35
PEPSICO LOGOS

The PepsiCo logo has changed many times over the years. Here's a

chronological history of the various logos.

36
37
SLOGANS AND LOGOS

1898 Brad's Drink

Exhilarating, Invigorating,
1903
Aids Digestion
1906 Original Pure Food Drink
1908 Delicious and Healthful
For All Thirsts - Pepsi:
1915
Cola
Pepsi: Cola - It makes you
1919
Scintillate
Drink Pepsi: Cola - It Will
1920
Satisfy You
1928 Peps You Up!
1929 Here's Health!
1932 Sparkling, Delicious
1933 It's the Best Cola Drink
Double Size
1934
Refreshing and Healthful
1938 Join the Swing to Pepsi
Twice as Much for a
1939
Nickel
1943 Bigger Drink, Better Taste
It's a Great American
1947
Custom
Why Take Less When
1949
Pepsi's Best?
More Bounce to the
1950
Ounce

38
The Light Refreshment

1954 Refreshing Without

Filling
1958 Be Sociable, Have a Pepsi
Now It's Pepsi for Those
1961
Who Think Young
Come Alive! You're in the
1963
Pepsi Generation
Taste that Beats the Others
1967
Cold, Pepsi Pours It On.
Join the Pepsi People
1973
Feeling' Free
1976 Have a Pepsi Day!
Catch That Pepsi Spirit
1979
Take the Pepsi Challenge
Pepsi's Got Your Taste for
1981
Life
1983 Pepsi Now!
The Choice of a New
1984
Generation
1987 America's Choice
1989 A Generation Ahead
1992 Gotta Have It
Be Young, Have Fun,
1993
Drink Pepsi
1995 Nothing Else is a Pepsi
1997 Generation Next
1998 Same Great Taste
1999 The Joy of Cola
2000 The Joy of Pepsi
2003 Pepsi. It's the Cola

39
2004

2005

2006

MARKETING CAMPAINGS

Pepsi ads often focused on Coca-Cola and Pepsi focused particularly on rock

stars; notable soft drink promoters included Michael Jackson and Ray Charles

(for Pepsi) and Paula Abdul, Elton John (for Diet Coke).

Coca-Cola

One example of a heated exchange that occurred during the Cola Wars was

Coca-Cola making a strategic retreat on July 11, 1985, by announcing its plans

to bring back the original 'Classic' Coke after recently introducing New Coke.

Pepsi

Pepsi ads often focused on non celebrities, choosing Pepsi over Coke,

supporting Pepsi's positioning as "The Choice of a New Generation." Pepsi

began showing people doing blind taste tests called Pepsi Challenge in which

they preferred one product over the other, and then they began hiring more and

more popular spokespersons to promote their products.

In the late-1990s, Pepsi launched its most successful long-term strategy of the

Cola Wars, Pepsi Stuff. Consumers were invited to "Drink Pepsi, Get Stuff"

and collect Pepsi Points on billions of packages and cups. They could redeem

the points for free, Pepsi lifestyle merchandise. After researching and testing

the program for over two years to ensure that it resonated with consumers,
40
Pepsi launched Pepsi Stuff, which was an instant success. Tens of millions of

consumers participated. Pepsi outperformed Coke during the summer of the

Atlanta Olympics - held in Coke's hometown - where Coke was a lead sponsor

of the Games. Due to its success, the program was expanded to include

Mountain Dew, and into Pepsi's international markets worldwide. The

company continued to run the program for many years, continually innovating

with new features each year.

The Pepsi Stuff promotion became the subject of a lawsuit. In one of the many

commercials, Pepsi showed a young man in the cockpit of a Harrier Jump Jet.

Below ran the caption "Harrier Jet: 7 million Pepsi Points." There was a

mechanism for buying additional Pepsi Points to complete a Pepsi Stuff order.

John Leonard, of Seattle, Washington, sent in a Pepsi Stuff request with the

minimum amount of points and a check for over $700,000US to make up for

the extra points he needed. Pepsi did not accept the request and Leonard filed

suit.

The judgment was that a reasonable person viewing the commercial would

realize that Pepsi was not, in fact, offering a Harrier Jet. In response to the

suit, Pepsi added the words "Just Kidding" under the portion of the

commercial featuring the jet as well as changing the "price" to 700 million

Pepsi points (see Leonard v. PepsiCo, Inc.).

In 1985, Coca-Cola and Pepsi were launched into space aboard the Space

Shuttle on STS-51-F. The companies had designed special cans for use in zero

G conditions. The experiment was classified a failure by the shuttle crew,

primarily due to the lack of refrigeration and gravity.

41
Second Cold War

During the 1990s, a "second cola war" was reported in the United Kingdom.

This time it was due to the launch of Virgin Cola, as well as Sainsbury's store

brand Classic Cola, which, unlike most store brand colas, was designed to

look like a top product worthy of competition. For a few years both colas were

competitive with Coca-Cola and Pepsi; at one point Coca-Cola even sued

Sainsbury's claiming the design of the Classic Cola can was too similar to

Coke's. However, today, both Virgin and Classic Cola are far behind the two

major brands. The high-publicity marketing also continued into the 1990s. In

1997 the Spice Girls (who were at the peak of their fame) signed a multi-

million pound sponsorship deal with Pepsi. They starred in three Pepsi

commercials, released two limited edition singles with Pepsi; "Move Over"

and "Step To Me", featured on Pepsi packaging and performed two live

concerts in Istanbul organized and sponsored by the company.

Virtual Refreshments

Coca-Cola and Pepsi engaged in a "cyber-war" with the re-introduction of

Pepsi Stuff in 2005 & Coca-Cola retaliated with Coke Rewards. This cola war

is currently ongoing. Both are loyalty programs that give away prizes to

product consumers after collecting bottle caps and 12 or 24 pack box tops,

then submitting codes online for a certain number of points.

42
If SWOT analysis does not start with defining a desired end state or objective,

it runs the risk of being useless. A SWOT analysis may be incorporated into

the strategic planning model. An example of a strategic planning technique

that incorporates an objective-driven SWOT analysis is SCAN analysis.

Strategic Planning, including SWOT and SCAN analysis, has been the subject

of much research.

 Strengths: attributes of the organization that is helpful to

achieving the objective.

 Weaknesses: attributes of the organization that is harmful to

achieving the objective.

 Opportunities: external conditions that is helpful to achieving

the objective.

43
 Threats: external conditions which could do damage to the

business's performance.

Identification of SWOTs is essential because subsequent steps in the

process of planning for achievement of the selected objective may be

derived from the SWOTs.

First, the decision makers have to determine whether the objective is

attainable, given the SWOTs. If the objective is NOT attainable a

different objective must be selected and the process repeated.

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. Pepsi’s 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.

PepsiCo provides advertising, marketing, sales and promotional

support to PepsiCo bottlers and food service customers. This includes some of

the world's best-loved and most-recognized advertising. New advertising and

exciting promotions keep


44
PepsiCo brands young. The company manufactures and sells soft drink

concentrate to PepsiCo 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 Pepsi’s 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. 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

today’s 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


45
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.

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 Coke’s 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.


46
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

theatres 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 colouring of its

packaging. The rich deep blue colouring 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 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.

47
CHAPTER-2 METHODOLOGY

2.1) OBJECTIVES OF THE STUDY

 Objectives are aim or purpose of the action one takes, the procedure

one applies and methods adopted and in a way it is mission into

measurable terms. The objectives of this project were clearly defined

i.e. “ to accomplish 100% purity of Pepsi coolers ”

 To know what was the status of the purity, location, charging

and plan-o-gram of the coolers.

 To educate them about the usage of the Plan-o-gram.

 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.

 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

48
The market research conducted by us was in accordance to the

company’s 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

2. Improvement

3. Sales

4. To satisfy the customers

49
2.2) SCOPE OF STUDY

The scope of the project is divided into two parts:

1. MANAGERIAL SCOPE :

 Planning

 Organising

 Staffing

 Directing

 Controlling

Planning

Controlling Organising

Managerial
scope

Directing Staffing

50
a) Planning:

To form, design the gift, fixing the price according to the interest,

determination of markets where the scheme is to be introduced etc. fall under

the planning.

b) Organising:

Every work is done by the man power and organised efforts of all persons

in a particular work are unavoidable in order to increase the efficiency.

c) Staffing:

The other important function of the marketing pertains to the appointment

of the right person for the right job.

d) Directing:

Every manager has to give instructions/directions time to time to his

employees and incentive is given to them for the progress of work. Any

project will fail without exceptional direction at all levels of management

same goes for this project.

e) Controlling:

The change in the state of market disturbs the planning for marketing.

After the implementation of the project the result must be compared to the

targets set by the company. The concerned person must prepare a comparative

chart and the point of deficiency should be noted.

2. FUNCTIONAL SCOPE

 Purchase

 Assembly of goods

51
 Storage

 Selling

 Advertising

 Price fixation

Purchase

Price Assembly of
fixation the goods

Functional
Scope

Advertising Storage

Selling

a) Purchase:

Purchase is the most important function for a businessman. His efficiency

in selling depends on the efficiency of purchase. This project will help the

outlet owners to better understand the importance of arranging the bottles in

the fridge. This will increase sale and in return increase his purchase.

52
b) Assembly of goods:

This project will also educate the outlet holders another important function

that should make possible the purchase of the demanded goods and move them

sufficiently near the centres for sale.

c) Storage:

Once the demand of the good has been allocated, it becomes simpler to

take decisions on the amount of storage space required. E.g. how many warm

bottles (LPSC, SKU)

d) Selling:

Once the fridges according to the plan-o-gram, the customer will have first

hand view of all the products and the sizes they are available in. This will not

only help the customer make the purchase but also increase he sales of the

retail outlet.

e) Advertising:

If the fridge is placed in a prominent position and the customer is able to see

it as soon as he/she enters the shop he will learn about the various products.

The customers have no knowledge of the things that initially enter the market.

It is important that the customer is duly informed of the product, its quality,

price etc. therefore this not only helps in advertising the new launches but

keep the old ones a fresh.

f) Price fixation:

53
Another important aspect of this project was the fixation of price for it. It

included the incentives of the people involved, gifts etc.

54
2.3) MANAGERIAL USEFULNESS OF THE STUDY

 The study will provide important information to the company in order

to prepare it in respect of Competitive Intelligence.

 The information from the report will help the company to know the

mind set of the retail outlet owners and the company will have better

understanding of them.

 This project helped is the increase of the awareness level of one of the

major issues in the soft drinks industry i.e. PURITY.

 There is also an increase in knowledge about the various products of

the company and their differentiation.

 When such projects are introduced in the market it helps increase the

loyalty of the retailers towards the company.

55
2.4) METHODOLOGY

Objective of Research

The Main objective of research in this project was to get the detailed analysis

of the market position, sales promotion and market share of all brands of

Pepsi.

Research Problem

To what extent does the penetration level of the PepsiCo product's and the

other merchandising objects like cooling equipments, Ice Boxes, Glow signs,

Dealer boards, Paintings and Racks leads the penetration of such things from,

Coca-Cola during the summer period in the period in the year 2008 in Delhi

and Its rural area and urban area, distributed via direct and indirect routes.

What were the factors responsible for this level of penetration?

Type of Study

Primary study

Research Design

The Design Of our research is statistical as it concerns the items are to be

observed and how the information and data gathered are to be analyzed.

Sample Design

For the project we used non-probabilistic sampling that can also be termed as

we only targeted the shops which sells waters.

56
Methods of Data Collection

The data collected for the project was primary data. The data was collected

through personals interviews, which was in the form of direct personal

investigation. The interview was very structured because we only ask the

question as per the EDS format.

Types of Data

1. Primary data

2. Secondary data

57
2.5) LIMITATIONS

a) Budgetary constraints – The amount of money to be inverted in the

project

b) Time constraints – The time in which the project was to be finished.

c) Problems with the Retailers –

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.

58
CHAPTER-3 CONCEPTUAL DISCUSSIONS

3.1) VISI

The key areas that need to be discussed are:

 VISI CHILLING

 VISI PURITY

 VISI CHARGING

 VISI SIZE

 VISI LIGHTING

 VISI CONDITION

 VISI LOCATION
59
 VISI PLAN-O-GRAM

VISI is another name commonly used for PepsiCo Coolers/fridges. This term

is used by the outlet owners.

a) VISI CHILLING:

The PepsiCo Items in the fridge should feel cold to human touch. Hence this

item is subjective and depends on the customer’s judgement.

b) VISI PURITY:

 Only and only PepsiCo items are allowed inside the PepsiCo.

Coolers. No other branded or unbranded products are allowed.

 Hence, products like Coke, Sprite, Fanta, Thums up, real, Bisleri,

Catch, Appy, Frooti, Milk, Paneer, Cheese, etc are not allowed.

 Even if there is one item in the cooler which is not from the

PepsiCo range, the cooler is impure.

c) VISI CHARGING:

The PepsiCo Visi coolers should be at least 90% full to its capacity.

E.g. if the fridge has 5 shelves, at least 4 and ½ shelves should be full

with PepsiCo products.

d) VISI SIZE:

The size of the PepsiCo coolers are measured in, litres. There are three

sizes of PepsiCo coolers:

 220 Lts. - Which holds 5 cases

 348 Lts. - Which holds 10 cases

 565 Lts. - Which holds 20 cases

60
e) VISI LIGHTING:

The lights in the Visi coolers should be working inside and out.

f) VISI CONDITION:

Overall condition of the cooler should be presentable. There should be

no dust, grease marks, glass stains, damaged shelves, damaged

venyling, damaged glass or damaged body condition. The coolers must

look New and clean.

 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

corporate and the reasons thereof.

 To review the product performance and satisfaction along with

the expectations of the customers in corporate 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.

61
 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

corporate having Coca Cola counters to convert them into

profitable opportunities.

62
3.2) RACKS

 RACK CHARGING

 RACK PURITY

3.3) OTHER COLLATERALS

 AIR HANGERS

 TROPICANA COUNTERTOP

 TROPICANA AIR STRIP

 TROPICANA SHOW WINDOW

63
CHAPTER-4 DATA ANALYSIS

64
65
66
67
68
69
70
71
CHAPTER-5 FINDINGS

72
73
74
75
76
REMARKS DURING THE SURVEY BY THE SHOP-KEEPERS :

CocaCola is sold more because it is less sweeter in taste than pepsi. Though

trade margin is more in pepsi and less in coca cola still the seller prefers to sell

coca cola more because of good service

It’s the consumer preference. Both have equal demand

Pepsi is preferred most because it is of lesser price with Rs 2 less in pepsi

600ml than coke

The seller just had the stock of coca cola and was quite dissatisfied with the

pepsi' salesman Mr. Ravinder

as he wanted to keep the stock of pepsi and the salesman was not visiting them

after constant reminders

The seller just had the stock of pepsi

Pepsi and coca cola have equal demand. Thums up is also preferred because of

strong taste. Coca cola's

other brand has more demand than that of pepsi's brands

The seller has a very few stock of pepsi and does not have coca cola in its

stock

Coca cola's demand is more as it is less sweeter in taste than pepsi

Pepsi has more demand in 600ml because it is Rs 2 less. All the brands have

equal demand

Pepsi has more demand because of less price. Even limca has a good demand

among consumers

The seller just has the stock of pepsi

Both the brands have equal demand

77
The customer prefers coca cola more than the pepsi. Fanta and limca has more

sale than mirinda(orange)

and mirinda(lemon)

Both the brands have equal demand. People prefer thums up for its stronger

taste and like limca more

The seller just has the stock of pepsi

Pepsi has good demand and also the supply chain of pepsi is very good

Both the brands have equal demand among the consumers

Coca cola's customers are more. The new scheme of coca cola in 600ml that

with each bottle

Rs 5 perk is free, increases coca cola's customer share more in 600ml

The customer demands coca cola more rather than pepsi.

Coca cola is in more demand

Coca cola is most preferred because it comes in many flavours.But right now

pepsi(600ml) has more

more demand because of Rs 2 less in 600ml

The demand of coca cola is more. The seller also mentioned that the coca cola

provides them with the higher trade margin

Coca cola has more demand. Even if the people want pepsi, they say the short

form of coca cola that is coke. So at the end they end up buying coca cola.The

pricing does not matter for the people of this area

Coca cola has more demand. The company has good marketing strategy and

the company's customer care is also good

The consumer prefers coca cola. Also the pepsi salesmen are not visiting the

shop.
78
Coca cola is mostly preferred by the customers because of less sweeter taste.

The customer mostly prefer coca cola,limca and fanta

Coca cola is mostly preferred than pepsi. Thums up has less sale than both

brands

No proper salesmen of pepsi in the area and even there are no proper

supervisors. Coca cola has excellent service as the order is delivered within

one hour. Even no boards of pepsi are alloted in the shop

Pepsi has more sale in 600ml because of the lesser price otherwise both coca

cola and pepsi have equal Demand

79
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.

 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 VISI’s, racks, counter, signage, wall paintings

and better amount for purchase of shelf space for display.

80
 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 corporate 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.

After the analysis sheets and formats have been surrendered to the

C.E’s after analysis by the trainees it was further analyzed and evaluate by him
81
and a brief analysis was made each day of the daily report. The CE’s further

forwarded these reports after retaining the reference copy, to ADC for further

review and reference.

82
CHAPTER-6 CONCLUSION AND RECOMMENDATIONS

83
CONCLUSION

Though, PEPSI has a strong position in DELHI 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 business’s 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.

 After surveying the 150 respondents If we compare the data Pepsi has

an edge over coke.

Pepsi has less market share due to its sweeter taste than other beverages

brand and most of the people are in favor of strong taste.

 General stores sell more soft drink rather than other stores.

 300 ml is a more consumable size by the consumer compare to other

sizes.

 People really are more health conscious still they believe soft drinks

contains pesticides.
84
 Elders in family prefer less strong drinks like mazza, slice and fruity.

 Soft drinks become trends among friends.

 The advertisement of pepsi is good which influence the purchasing

behavior of consumers.

 T.V. has more impact to get update people about the pepsi and brands.

85
RECOMMENDATIONS

 PEPSI, the choice of youth is not providing the first choice of young

generation. Youth want something strong in cold drinks & thus prefers

strong taste. Pepsi should come out with some extra strong taste to

catch up maximum young generation & to become exactly Generation

Next drink.

 The distribution Channel should be focused on General Stores because

most of the people purchase soft drinks from general stores.

 The company should update the people about pesticides time to time

because most of the people still afraid of pesticides.

 Most of the elders in the family take soft drinks but not pepsi they

considered more orange and less strong taste company should come up

with new taste keeping elders in its mind to increase sale and market

share.

 People are confused about the role of Pepsi in health company should

clear the soft drink role whether it is beneficial for health or not.

 Pepsi co should improved its advertisement quality, it should be

realistic not imaginary.

 People get updated by T.V. Pepsi co should increase the updating by

publicity as well as by Hoardings

 Consistency ( Pepsi blue, nimbooz, coke diet )

 Increase number of distributors

 Interchange staff in the market

 Emotional advertisement

86
 Number of visi

 Services of visi

 Demand effectiveness improper

 Retailer depend on supplier

 Create monopoly market with the help of visi

 Schemes attract to retailer (my can)

 Participation in Olympic games, common

 Wealth games, ICC World cup.

 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.

 Any 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 company’s reputation are

at stake.

87
 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.

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

medium of advertisement.

 Proper attention should be given to the retailer’s 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 favourable 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.

88
REFERENCES

Websites:

www.pepsi.com

www.pepsicoindia.com

www.cocacola.com

www.wikipedia.com

www.encyclopedia.com

www.pepsiworld.com

www.google.com

Books:

Research Methodology- C.R.Kothari

Marketing Research- B. S. Bedi

Principles of Marketing- P. Kotler & Armstrong

89
ANNEXURE

SURVEY REPORT

NAME : ………………………………………..

OUTLET POSITION = ……………………………………….

TEL NO. :………………………………………PIN NO. :

……………………………….

CHANNEL TYPE: GROCERY , CONVENIENCE , EATERY

PCI SERVICE – DIRECT , PRESALE , DISTRIBUTOR ,

WHOLESELLE

CCX SERVICE – DIRECT , PRESALE , DISTRIBUTOR ,

WHOLESELLE

VISI PCI- 200 , 220 , 300 , 320 , OTHER …………………

VISI CCX- 200 , 220 , 300 , 320 , OTHER …………………

PCI SERVICE VEHICLE = RIKSHA , TEMPO , 407 , CANTOR

CCX SERVICE VEHICLE = RIKSHA , TEMPO , 407 , CANTOR

PCI WEEKLY SERVICE= ……………..

CCX WEEKLY SERVICE= ……………..

DEALER BOARD PCI = YES , NO

DEALER BOARD CCX = YES , NO

90
DISCOUNT PCI =………………..

DISCOUNT CCX =………………..

PRODUC PE MIR 7 M. MIRIN NIM SLIC SOD AQU

T PS IND U DE D BOO E A A

I A P W LEMO Z FINA

N
COLD

ST.
WARM

ST

PRO COK THUMP SPRIT LIMC FANT MAZ KIN. KIN

DUCT E S E A A A SID .

UP A WT

R
COLD
WAR

AVG MONTHLY VOL OF PCI = ………………………..

AVG MONTHLY VOL OF CCX = ………………………..

MARKET SHARE OF PCI =……………………….

MARKET SHARE OF CCX =……………………….

91
REMARK= SATISFIED , CLOSED PAR. , NOT FOUND ,

SCHEME ISSUE

SERVICE ISSUE , READY TO BUY

REMARK 2:-

…………………………………………………………………………

92

You might also like