A

Summer Project Report On

“A Study on The Sales Promotion Activities”
At
VARUN BEVERAGE LTD., PEPSICO
DEHRADUN
For the Partial fulfillment of the degree of
Master of Business Administration
M.B.A (2009-11)
Under the Guidance of
ABHISHEK DUTTA
Submitted by
KOHINOOR AHMAD
Regd. No. 10904591
Submitted to
LOVELY PROFESSIONAL UNIVERSITY,PHAGWARA
 DECLARATION

I, KOHINOOR AHMAD hereby declare that the summer project report titled “A study on
sales promotion activities” written and submitted to LOVELY PROFESSIONAL
UNIVERSITY by me is my own and its equal copy has not been reproduced to any other
institution/university or published anywhere else.
I understand that such reproducing is liable for punishment in any way the university deem fit.

Place: Dehradun Kohinoor Ahmad

Date: Regd. No.-10904591
MBA
 COMPANY GUIDE CERTIFICATE

This is to certify that the summer project titled “A study on the sales promotional activities” at
Varun beverage Ltd..PepsiCO is an original work of Mr. Kohinoor Ahmad, student of Lovely
Institute of Technology ,Phagwara and is being submitted for partial fulfillment of the award of
the Master of Business Administration (MBA) degree of Lovely Professional
University,Phagwara. The final compilation of the report was also done under my guidance and
it has not been submitted earlier to anywhere else.

Place: Dehradun Kohinoor Ahmad

Date: Regd. No. - 10904591
MBA

Pawan Gaur (ME), Pepsico

Name & Signature of the guide
 CERTIFICATE OF THE INSTITUTE GUIDE

This is to certify that the project titled “A STUDY ON SALES PROMOTION ACTIVITIES”
is an original work of Mr. Kohinoor Ahmad bearing University Registration Number 10904591
a student of Lovely Institute of Technology, Phagwara and is being submitted in partial
fulfillment of the requirements for the award of the degree of Master of Business Administration
of Lovely Professional University,Phagwara. The summer project report has not been submitted
earlier to this University or to any other University / Institution for the fulfillment of the
requirement of a course of study.

Date: Abhishek Dutta

Name and signature of the guide
 ACKNOWLEDGEMENT

I am thankful to Mr.Jagit Singh, Head Of Department Of Lovely Institute Of Management who

showers his ever graceful guidance by extending his cooperation in giving an opportunity to do
my summer project report on “A study on sales promotion activities” at Varun beverage
Ltd.,Dehradun.

I take this opportunity to place on record my grateful thanks and sincere gratitude to Mr. Pawan
Gaur (ME) Varun beverage Ltd., Dehradun, who has given me this opportunity to conduct
this project work in this organization. My study would not have been completed if I had not been
able to get the support and guidance of Mr. B.P Chauhan (TDM) and other employees of the
organization.

I am also highly indebted to my esteemed guide Mr.Abhishek Dutta (Faculty in LIM,

Phagwara) whose continued and invaluable guidance can never be forgotten by me and without
whom, this study could not have got the present shape.

Lastly, I would express my grateful thanks to my family members and my friends who inspired
me to put in my best efforts for the preparation of the Project Report.

Place: Phagwara Kohinoor Ahmad

Date: Regd.No-10904591
MBA
 EXECUTIVE SUMMARY

A study On Sales Promotion Activities At Varun

beverage Ltd. , Pepsico in “DEHRADUN”

Sales Promotion activities are an important aspect of marketing mix. Organisation followed the
different promotional activities in order to boost the sales volume.

On 14th of June I started my project under the guidance of Mr. BP Chauhan(TDM) /Mr.Pawan
Gaur (M.E.)Dehradun. I have been allocated the area for survey in Dehradun.
Market Area Of Dehradun :-

1: Sahastradhara Roa
2: Patel Nagar
3: Upper Rajpur
4: Lower Rajpur
5: Chakrata road
6: Haridwar road
7: Gandhi road
8: Hathi Barkala
9: Kavli road
10: Main Sahastradhara
 Index

C hapter-1 Introduction to the Study

 Introduction
 Objective of the case study
 Scope of study
 Limitation
 Research methodogy

Chapter-2 Company Profile

 Introduction to Pepsico
 Introduction to Jaipuria group
 Vision,Mission and Main credentials
 Organisational Structure
 Product Profile

Chapter-3 Theoretical Background

Chapter-4 Data Analysis And Interpretation

Chapter-5 Findings

Chapter-6 Suggestions

Chapter-7 Conclusion

Chapter-8 Annexure

Bibliography
 INTRODUCTION
TO
THE STUDY

INTRODUCTION
“Good marketing is no accident, but a result of careful planning and execution. Marketing practices
are continually being refined and reformed in virtually all industries to increase the chances of
success. Marketing excellence is rare and difficult to achieve. Marketing is both “art” and “science”
–there is constant tension between the formulated side of marketing and the creative side.”
The world economy has undergone a radial transformation in the last two decades Geographical and
cultural distance have shrunk significantly with the improvements in the production, transportation
and communication. These advances have permitted companies to widen substantially both these
markets and their supplier sources. And thus the role of marketing becomes wide.
Marketing is the specialization subject of MBA curriculum. When a flood of consumer products are
coming into the market, every company needs people specialized in marketing to promote their
product.
“Marketing deals with identifying and meeting human and social needs. One of the shortest
definitions of marketing is “meetings needs profitably.”
The 21st century is the era of Advertising, Marketing and Sales Production; Marketing is to convert
social needs into profitable opportunities. As it is said “Marketing thinking starts with the human
needs and wants”. Apart from basic necessities of air, water, shelter and clothing, every person has
strong desire for recreation and entertainment. They have strong preference for particular brand of
basic and services. Marketing serves as the link between the society’s needs and its pattern of
Industrial response.
Beverage industry is one of the fast growing industries in India. We can divide Beverages into two
sections i.e. Alcoholic & Non-alcoholic. The non-alcoholic drinks are soft drinks that can be further
classified Cola, Lemon, Orange, Mango and Apple segment.

INTRODUCTION ABOUT THE STUDY:-

I was assigned to study the promotional activities of Varun beverage .Ltd. Promotional activities
play a greater and important role in the entire marketing effort being carried out by Varun beverage
Ltd., “to generate more sales as well as to create and maintain an image of its product”.
Thus Varun beverage Ltd carried out its promotional activities as a controlled and integrated
program of communication and material design to present its soft drink to the prospective customer.
It also helps in communication the need satisfying qualities of soft drink, to facilitate the sales and
eventually to contribute towards the profit in long range.

The tools used by Varun beverage Ltd.,Pepsi for fulfilling the various purposes of its promotional
activities are the following:-

 Dealer’s sales contest

 Discount
 Scheme
 Gift
 Display Board

Dealer’s sale contest:-

A method of sales promotion being used by the Varun beverage Ltd., through its salesman is to
conduct dealer’s sales contest during the peak seasons i.e. during April to July. In it the dealers
are given prize in the form of cases of soft drinks. In the contest at first his or her respective
distributors according to there categorize each dealer. And then each distributor fixes a target of
minimum sale for each category to which every dealer according to his or her category has to
achieve during the contest period.
The dealers achieving highest sales over and above the target set is giving the awards as under,
the order of prizes announced are first prize, 2 nd prize, and 3rd prize in terms of number of free
cases of soft drinks which was Pepsi space club programme.
Discount:-
Discount is offered by the Varun beverage Ltd. from time to time in order to increase the sales
volume on the basis of respective sales.This technique not only increase the sales volume but
 also help in repositioning of the product. For example recent discount was given on Mycan that
purchase four case,six case and eight case and get the discount of Rs.200,360,560 respectively.

Scheme:-
Scheme is given to retailer on daily basis to attract the retailer demand.Schemes are given in the
following shape:-
200ml (1 case) - 1bootle (200ml) free
300ml (1 case) - 2 bootle(300ml) free
600ml soda (1case) - 1 bottle (600ml) soda free
600ml (1case) - 2 mycan free
2 litre(1case) - 3 mycan free
1 litre slice (1case) - 1 bottle slice (1 litre) free
500ml slice (1 case) - 2 bottle slice (500ml) free
350ml nimbooz (1case) - 1 bootle nimbooz (350 ml) free
Mycan (1 case) - 1 mycan free

However above mentioned schemes are subject to change on daily basis.

Gift:-
Gifts are given to retailers on monthly,quarterly, half yearly and on yearly basis on the criteria of
their sales volume.These gift motivate the retailers to sell more and more in order to get the
gift.The gift items include digital camera, mobile, t –shirt, watch, coupons etc.

DISPLAY BOARD:-
Proper merchandising and display at the store level promotes sales; it promotes the consumer to
switch over to the displayed brand ignoring existing brand loyalties; it persuades him to buy “now”
rather than latter; and it makes him buy more than the originally intended quantity. All these are
essentially sales promotional functions. While advertising can only make a consumer aware of the
product or generate a desire for it, merchandising/ display often motivates a consumer to buy a
product instantly. Point of purchase displays are one of the most widely used sales promotions tools.
With the proliferation of brands, innovative displays have become a prerequisite for success. In the
store brands compete with each other for consumer’s attention.

OBJECTIVE OF THE STUDY;-

 To study the sales promotional activities followed by VARUN BEVERAGE LTD., PEPSI

 To know whether sales promotional activities affect the sales volume

 To know sales promotion help in building brand image

 To know the effectiveness of sales promotional activities followed by Varun beverage Ltd.

SCOPE OF THE STUDY:-

The training in the organization is very important for a student who is undergoing with such course.
This course is not the answer for all the problems, which arises in the practical fields. There is no
certain formula for any particular problems, but the aim of this study is to develop the ability of
decision-making. A right decision at right time itself helps an organization to run smoothly.
This training in an organization gives an idea how decisions are taken tact fully when any problem
comes to an executive. So the way of problem solving, right decisions making and knowledge of
different type of marketing activities give much importance to the study. Though only in two months
it was not possible to understand it so deeply but an overall idea could develop
LIMITATION OF THE STUDY:-
 The project is limited to Dehradun city only.

 Many retailers were not giving full information and many of them could not explain their
views about sales promotional activities followed by Varun beverage Ltd..

 Answers to the questionnaires are sometime biased

 Questionnaire being in English language and not in local i.e Hindi caused problem in data
collection.

 The sample taken for study includes few retailers out of large numbers.

RESEARCH METHODOLOGY :-
In order to achieve the objectives it is essential to collect all possible, valuable to reliable
information related to topic.

A.) Data Collection

The require data for above study is collected through the following sources:-

a.) Primary data

b.) Secondary data

PRIMARY DATA:-

Primary data refers to the data collected by conducting a statistical or a field investigation
are called primary data.

Primary data is collected by questionnaire. The questionnaire included both objective and
descriptive type of questions.The objective type question are mostly interrelated.

In order to collect this data through questionnaire I visited and interaced with retailers of the
following roads:-

1: Sahastradhara Road
2: Patel Nagar
3: Upper Rajpur
4: Lower Rajpur
5: Chakrata road
6: Haridwar road
7: Gandhi road
8: Hathi Barkala
9: Kavli road
10: Main Sahastradhara

SECONDARY DATA:-

Secondary data is information that is collected by other investigator or agency and available in
published or in unpublished form.

Secondary data is collected from the book of firm, websites and some other reference books. The
data whatever is required is collected only.
B.) Sample Size:-
Sample size for this project is 50. I interacted with 50 retailers of different roads of dehradun
city which is assigned to me by Mr.Pawan Gaur(ME) of Varun beverage Ltd.,pepsi. After finalizing
the sample size, a structured questionnaire is prepared and the required data was collected from the
retailers.

COMPANY
PROFILE
HISTORY OF PEPSI-COLA INDUSTRY:-

The Pepsi-Cola story itself begins with a drugstore in New Bern, North Carolina, and a pharmacist
named Caleb Bradham. Bradham's aim was to create a fountain drink that was both delicious and
healthful in aiding digestion and boosting energy.  It would be free of the impurities found in many
bottled health tonics, and it would contain none of the stronger narcotics often added to popular
fountain drinks.
As most pharmacies in 1896, Bradham's drugstore housed soda fountain where the small-town
clientele would meet to socialize.  Bradham's establishment even featured a kind of primitive
jukebox, which for a nickel would entertain the listener with the latest musical selections rendered
by violin or piano or both It was at such convivial gatherings that Bradham would offer his latest
concoction.  Over time, one of his recipes became known as Brad's
Drink. A member of the press declared, "It has sparkle and just enough
acidity to make it pleasant." Soon its popularity would exceed the
boundaries of New Bern. The cellar of Bradham's drugstore served as
the original site of Pepsi-Cola syrup manufacturing.  Electing to start his
new business on a small, manageable scale, Bradham based his
operation on familiar territory.  Ingredients were hauled downstairs to
cramped quarters where they were mixed together and then cooked in a large kettle. The syrup was
subsequently poured into one-gallon jugs and five-gallon kegs to be shipped to customers. By 1902,
the demand from surrounding drugstores increased so dramatically it dawned on Bradham that
Pepsi-Cola was something special.  On December 24, 1902, he filed incorporation papers with the
state of North Carolina; in these, he indicated his plans for corporate branches in Virginia,
Maryland, Pennsylvania, and New York. PepsiCo, Inc. is currently one of the most successful
consumer products company in the world with annual revenues exceeding $30 billion and has more
than 480,000 employees. PepsiCo, Inc. began as a successor to a company incorporated in 1931,
known as Loft Inc. Once known as PepsiCo Cola, the company expanded its business and adopted
its current name, PepsiCo, after a merger with Frito-Lay in 1965. This merger dramatically
increased PepsiCo's market potential and set the foundation for the company's tremendous growth.
PepsiCo’s products are recognized and are most respected all around the globe. Currently, PepsiCo
divisions operate in three major US and international businesses: beverages, snack foods, and
restaurants. In each of these businesses, PepsiCo has attained a leadership position as being the
world leader in soft drink bottling g, the world largest snack chip producer, and the world largest
franchised and company operated restaurant system. The corporations increasing success has been
based on high standards of performance, marketing strategies, competitiveness, determination,
commitment, and the personal and professional integrity of their people, products and business
practices. PepsiCo's overall mission is to increase the value of our shareholders' investments through
sales growth, investments and financial activities. PepsiCo believes their success depends upon the
quality and value of their products by providing a safe, whole some, economically efficient and a
healthy environment for their customers; and by providing a fair return to their investors while
maintaining the highest standards of integrity.

Pepsico Headquarter:-

PepsiCo world headquarters is located in purchase, New York, approximately 45 minutes from New
York City. Edward Durrell stone, one of America’s foremost architects, designed the seven-building
headquarters complex. The building occupies 10 acres of a 144-acre complex that includes the
Donald m. Kendall sculpture gardens, a world- acclaimed sculpture collection in a garden setting.
Masters such as august Rodin, henrys Laurens, Henry Moore, Alexander Calder, Alberta
Giacometti, Renaldo pomander and Claes Oldenburg focus the collection of works on major
twentieth century art, and features works. the gardens originally were designed by the world famous
garden planner, Russell page, and have been extended by François goffinet1. the grounds are open to
the public, and a visitor's booth is in operation during the spring and summer.1990 saw the coming
of the multinational company Pepsi entering the Indian market. 11 years after the exit of coca cola. it
had name, fame and edge of being one of the best in the game and it also offered stiff competition to
parley and coke. Pepsi cola company founded by Cleb Badham in 1890 at north Crolina in USA
now it is ked 86th (1998) in the world with the asset of around $25000 million, having its head
quarter at Atlanta. Its CEO is roger enrico and Pepsi co. India holding chairman is Mr. Rajiv Baksi.
Pepsi co. India’s is at gurgaon. Presently is operating in 196 countries. in India it has 34 bottling
plant of them 8 are cobo and 26 are fobo of which one in Trity Drinks Pvt Ltd.

SOFT DRINK INDUSTRIES IN INDIA:-

A soft drink is a non-alcoholic beverage. It is artificially flavored and contains no fruit or pulp. India
with population of more than 100 crores is potentially one of the largest consumer markets in the
world after China. The consumer market can be defined as the market for products and services that
are purchased by individuals as house holds goods for their personal consumption. Soft drink is a
typical consumer product purchased by individuals to quench thirst and secondly for refreshment.
Searching for the point of Indian soft drinks we first document on Gold Spot, this was the first brand
soft drink in India. It was introduced by PARLE during later part of 40’s.

Cola giant, Coca-Cola was the first foreign soft drink to be introduced in India in 1965, Coca-Cola
make a very good beginning and dominated the whole scheme right from the word go. It (Coca-
Cola) faced no competition at that time. COCA COLA entered India in the year 1993 In
collaboration with PARLE INDIA LTD.
The marketing people did not even receive to publicize Coca-Cola for it sold first like
probability not-cakes. This extraordinary success of soft drinks can be attributed to
the following factors:-
 Absence of contemporary competitive brand.
 Euphoric image built up in the Western countries proceeded the entry into Indian
Market; and
 Indians are very found by nature of foreign goods, services etc. due to prolonged
foreign rules.
Parle Exports (P) Ltd, later in 1970 introduced Limca, Lemony Soft drinks. Before Limca introduce,
they had tentatively introduced Cola, Pepino, which they had to soon withdraw in the face of
battering confrontation with Coca-Cola.
Three of four groups of Indians companies who had the required production capacity started their
own brands of Cola, Lemon, Orange, but failed to achieve their goal on a national basis. India
always has love and hate relationship with MNC’s which gave a significant opportunities to soft
drink industries in India when Coca-Cola decided to windup its operation in 1977 rather than
bowing to the Indian government insisting on:-
 Dilution of equity, as the government felt that lots of foreign currency was being wasted.
 Manufacturing of the top-secret concentration in India.
 Disclose of the chemical composition of the essence.
This left a large vacuum in the popular soft drink market, and a vista was opened to any company
with the requisite, technical, marketing and organizational skills.
The exit of Coca-Cola from India in 1977 accelerated the growth of several Indian Soft Drink. New
soft drink in the form of Tetra pack entered the market among Frooti, Jump-In and Treetop were the
prominent once. Till 1977 their equipped bottling plants and the distribution network a longing to be
of no use. It took them one year to develop new formula to survive and gradually came up with
Campa, Lemon, Orange and Cola that order.
However Parle, the pioneer in the soft drinks, blazed its way to national prominence with their
product “Thumps Up” bearing the slogan “Happy Days Are Here Again”. This particular slogan
helped to win over the loyalists or addicts to Coca-Cola, who was in the state of “Cola Shock” or
Cola Depression. Soon the Indian Soft drink industry started at a phenomenal rate, and all Parle
Products Gold Spot, Limca and Thumps Up became the brand leader in their own segment.
In spite of all these, the drink market still has large gap, as claim by soft drink manufacturers. To fill
these gaps there are many soft drinks concentrate and squashes flooded the market. The Indian soft
markets basically offered three flavours i.e. Orange, Lemon and Cola.

PEPSI – The Indian Experience:-

Previously there were two ads. Tags “Yehi Hai Right Choice Baby”, “Nothing Official about It” &
“Yeh Dil mange More”, which immediately ring a Bell – it’s to be a Pepsi. But today this ad. Tag
has been changed and now it’s "Yeh hai Youngistaan Meri Jaan!"

Pepsi is a short span of its operations in India has found a place in hearts and minds of the Indian
Consumers. The success has primarily been due to the innovative and passionate Indian team which
has been built over the years. Pepsi is a trendsetter managed and run by Indians, where important
decisions are taken locally.
Pepsi started its operations in India in 1989 and since Pepsi Co. has set up a fully integrated
operation India viz. manufacturing, research and development, marketing, distribution and
franchising covering fruit/vegetable processing, export, snack foods and beverages. In 1993 Pepsi
Co. set up a hold company to further accelerate growth the future through new initiatives and joint
ventures. Pepsi Co. fully committed to India and the national objective of development of
technology and accelerating exports and employment. It has brought in over $500 million in foreign
exchange as well as technology, which is used for its global network by way of royalty, know how
of dividends.
Pepsi Co. has a turnover $25 billion, half of which comes from beverages and the other half from the
snacks foods divisions. The beverages arm of the Pepsi Co. is Pepsi Cola Company and the snacks
foods company is called Frito – Lay Inc. The year 1998 is the centennial year of Pepsi.

Beverages:-
Pepsi has set up a concentrate plant in 1989 at Channo, District Sangpur, Punjab, with an investment
of $ 5 million the state of the art Plant houses a world – class laboratory where soft drinks from all
over the world are tested. This concentrate plant supplies Pepsi, 7Up, Team, Miranda, Orange,
Apple & Lemon flavors to all the Pepsi Bottling plant in South Asia.
Pepsi has 40 Bottling plant in India, out of which 16 are company owned and 24 are owned by
Indian franchisees, Pepsi Co. has invested heavily on up gradation of these bottling plants and has
put 5 green fields projects in backward areas such as Jainpur and Bazpur in U.P. Bharuch in Gujarat,
Sonarpur in West Bengal and Naclamangala in Karnataka.
New project are coming up in Maharastra and Tamilnadu. In addition to the Company’s own
Bottling Operations (COBO), Pepsi has 24 Franchisee Owned Bottling Units in India. These
franchisee manufacturers are also planning to install substantial additional capacities. In last two
years Pepsi Co.’s franchisees have put new bottling plant at Jaipur, Bhopal, Hajipur (Bihar), Guntur
(A.P) and Gawahati (Assam) with further investments. Pepsi Co.’s franchisees are amongst the best
in the Pepsi world and the 1998 two Indian Franchisees were chosen for being the Bottler of the
Year amongst all International Bottlers.

Juices:-
Pepsi Co. plans to launch juices in a bog way in India, there by helping the farmers in fruit
procurement. Pepsi Co. Agriculture Scientists has undertaken research on Mango, Guava and
Oranges and these fruits would be the priority area for the juice launch in India. Presently Pepsi has
one juice brands Slice, which are presently mango juice brands. Pepsi Co. also has bottling lines in
most of the plants.

Developing Sports:

Pepsi today is one of the main sponsor’s related activities in India and has counted to promote
upcoming new players Cricket, Hockey and Football. In Mohali, Pepsi has developed a Pepsi
Cricket Academy, which would develop over 500 Young Cricket enthusiasts in next five years.
Similarly Pepsi cricket coaching camps and clinics are held to coach young boys in North & South.

INTRODUCTION TO JAIPURIA GROUP:-

With a Legacy of decades in the industrial arena, the Jaipuria Group of Companies now stands at
the one thousand five hundred Crore marks. The group boasts of its several world-class business
arenas like those of Textiles, Bottling, education, and information technology, Food Chain and
Retailing, apart from numerous other business segments
JAIPURIA GROUP is a Rs.1500 Crore, family controlled, reputed business house with over a
century of operations in diversified fields.

The group as on today can boast of expertise and leadership in the fields of food and beverages,
textiles and real estate development with varied interests in a wide range of products and
services.

The Jaipuria Group under the leadership of the three brothers SK Jaipuria, RK Jaipuria and CK
Jaipuria has today become one of the leading business houses of
the country.

The following are the major areas of operations of the Jaipuria Group:

Food and Beverages

Textiles
Information Technology
Real Estate
Education

It can be said with absolute certainty that the RKJ Group has carved out a special niche for itself.
Our services touch different aspects of commercial and civilian domains like those of Bottling,
Food Chain and Education. Headed by Mr. R. K. Jaipuria, the group as on today can lay claim
to expertise and leadership in the fields of education, food and beverages.

The business of the company was started in 1991 with a tie-up with Pepsi Foods Limited to
manufacture and market Pepsi brand of beverages in geographically pre-defined territories in
which brand and technical support was provided by the Principals viz., Pepsi Foods Limited. The
manufacturing facilities were restricted at Agra Plant only.
Varun Beverages Ltd:-
Varun beverage Ltd. is the flagship company of the group.

The group also became the first franchisee for Yum Restaurants International [formerly PepsiCo
Restaurants (India) Private Limited] in India. It has exclusive franchise rights for Northern &
Eastern India. It has total 27 Pizza Hut Restaurants under its company.

We diversified into education by opening our first school in Gurgaon under management of
Delhi Public School Society. The schools of the group are run under a Registered Trust namely
Champa Devi Jaipuria Charitable Trust.

Companies are medium sized, professionally managed, unlisted and closely held between Indian
Promoters and foreign collaborators.

The group added another feather to its cap when the prestigious PepsiCo “International Bottler of
the Year” award was presented to Mr. R. K. Jaipuria for the year 1998 at a glittering award
ceremony at PepsiCo’s centennial year celebrations at Hawaii, USA. The award was presented
by Mr. Donald M. Kendall, founder of PepsiCo Inc. in the presence of Mr. George Bush, the 41st
President of USA, Mr. Roger A. Enrico, Chairman of the Board & C.E.O., PepsiCo Inc. and Mr.
Craig Weatherup, President of Pepsi Cola Company.

Vision of the Company:

Being the best in everything we touch and handle.

Mission of the Company:

Continuously excel to achieve and maintain leadership position in the chosen businesses; and
delight all stakeholders by making economic value additions in all corporate functions.
MAIN CREDENTIALS

1. VARUN BEVERAGES LIMITED received" GOLD STANDARD AWARD" for the

production and quality control for the year 1996-97.

2. Jaipuria group was adjudged “Best Bottler “out of more than 2000 bottles all over the world
for the year 1996-97.

ORGANIZATION STRUCTURE:-

VARUN BEVERAGES LTD.

CHAIRMAN

MARKET UNIT MANAGER

UNIT MANAGER
 GENERAL MGR. TERRITORY DEV.
MANAGER

PRODUCTION MGR. AREA DEV. Co-

ORDINATOR

MANAGER

SHIPPING MGR. MARKETING EXE CUSTOMER

EXE

TRANSPORT MGR.
SALESMAN

Product Profile of Varun Beverage Ltd.:-

The group manufactures and markets carbonated and Non-Carbonated Soft Drinks and Mineral
Water under Pepsi brand. The various flavors and sub-brands are Pepsi, Mirinda Orange,
Mirinda Lemon, Mountain Dew, and 7UP, Slice Mango, Evervess Soda and Aquafina.
PEPSI

MIRINDA

7up

AQUAFINA

DEW
 Theoretical
Background

Theoretical Background
Sales promotion is one of the four aspects of promotional mix. (The other three parts of the
promotional mix are advertising, personal selling, and publicity/public relations.) Media and
non-media marketing communication are employed for a pre-determined, limited time to
increase consumer demand, stimulate market demand or improve product availability.

Sales promotion is any initiative undertaken by an organisation to promote an increase in sales,

usage or trial of a product or service (i.e. initiatives that are not covered by the other elements of
the marketing communications or promotions mix). Sales promotions are varied.

Often they are original and creative, and hence a comprehensive list of all available techniques is
virtually impossible (since original sales promotions are launched daily!). Here are some
examples of popular sales promotions activities:

(a) Buy-One-Get-One-Free (BOGOF) - which is an example of a self-liquidating promotion.

For example if a loaf of bread is priced at $1, and cost 10 cents to manufacture, if you sell two
for $1, you are still in profit - especially if there is a corresponding increase in sales. This is
known as a PREMIUM sales promotion tactic.

(b) Customer Relationship Management (CRM) incentives such as bonus points or money off
coupons. There are many examples of CRM, from banks to supermarkets.

(c) New media - Websites and mobile phones that support a sales promotion. For example, in the
United Kingdom, Nestle printed individual codes on KIT-KAT packaging, whereby a consumer
would enter the code into a dynamic website to see if they had won a prize. Consumers could
also text codes via their mobile phones to the same effect.

(d) Merchandising additions such as dump bins, point-of-sale materials and product
demonstrations.

(e) Free gifts e.g. Subway gave away a card with six spaces for stickers with each sandwich
purchase. Once the card was full the consumer was given a free sandwich.

(f) Discounted prices e.g. Budget airline such as EasyJet and Ryanair, e-mail their customers
with the latest low-price deals once new flights are released, or additional destinations are
announced.

(g) Joint promotions between brands owned by a company, or with another company's brands.
For example fast food restaurants often run sales promotions where toys, relating to a specific
movie release, are given away with promoted meals.

(h)  Free samples (aka. sampling) e.g. tasting of food and drink at sampling points in
supermarkets. For example Red Bull (a caffeinated fizzy drink) was given away to potential
consumers at supermarkets, in high streets and at petrol stations (by a promotions team).

(i) Vouchers and coupons, often seen in newspapers and magazines, on packs.
(j) Competitions and prize draws, in newspapers, magazines, on the TV and radio, on The
Internet, and on packs.

(k) Cause-related and fair-trade products that raise money for charities, and the less well off
farmers and producers, are becoming more popular.

(l) Finance deals - for example, 0% finance over 3 years on selected vehicles.

Many of the examples above are focused upon consumers. Don't forget that promotions can be
aimed at wholesales and distributors as well. These are known as Trade Sales Promotions.
Examples here might include joint promotions between a manufacturer and a distributor, sales
promotion leaflets and other materials (such as T-shirts), and incentives for distributor sales
people and their retail clients.

Sales promotions can be directed at either the customer, sales staff, or distribution channel
members (such as retailers). Sales promotions targeted at the consumer are called consumer
sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales
promotions. Some sale promotions, particularly ones with unusual methods, are considered
gimmick by many.

According to the Institute of Sales Promotion, "Sales Promotion comprises that range of
techniques used to attain sales or marketing objectives in a cost effective manner by adding value
to a product or service either to intermediaries or end users, normally but not exclusively within
a defined time period."

Almost every Company uses Sales Promotion techniques at some stage of the product life cycle
since sales promotion techniques provide a strong incentive to BUY!

Generally, there are 3 modes of Sales Promotion -

 Consumer oriented

 Sales force oriented

 Retailer oriented

Sales promotion is a tool within the marketing communications mix.

The marketing communications mix is composed of five separate elements including

public relations, direct marketing, personal selling, advertising and sales promotion.
Public relations helps to create quality company image with the public, and direct
marketing communicates with target customers. Personal selling establishes customer
relationships and produces sales through presentation, and advertising promotes services,
goods, and ideas. Sales promotion creates short-term incentives for customers to purchase
 a company's service or product. They may utilize contests or coupons to encourage slow-
moving sales and fulfill objectives.

Purpose:-
1. Sales promotions have a number of purposes. Although they are not used to create long-
lasting relationships with customers, they do aim to generate product awareness and
create interest in new products. In fact, sales promotions are one of the most valuable
tools available to marketers when introducing a new product. As consumers purchase
products in specific areas, marketers get an idea of where their product sells best. They
take that information and use it when setting up future marketing efforts. Sales
promotions also stimulate demand of a product, provide information, and represent the
product's brand. An example of a sales promotion could be a free trial of the Weight
Watcher's Online program.

Classification:-
2. Sales promotions are classified based on their specific audience. The specific audience is
generally referred to as the target, or primary, audience. Types of promotions are created
by marketers through the consumer market, the trade market, and the business-to-
business market. Consumer-market sales promotions are the most common type of
promotions. They aim at targeting the final consumer. Trade-market sales promotions not
only target consumers, but also those within their channel of distribution. For example, a
marketer for Krispy Kreme may create a sales promotion that entices a supermarket to
carry their doughnuts. Once the doughnuts are on the shelves, Krispy Kreme can create
yet another promotion to boost sales and improve the channel relationship.

Going Digital:-
3. One of the most common current trends with sales promotions is the incorporation of
electronic media. Instead of sending coupons and contest information via television and
newspapers, marketers are now utilizing the Internet and cell phones to send out sales
promotion information. Often retailers will ask customers for their email address at
checkout registers and later send sales promotions to the customer's inbox. There are also
printable coupons available on many retailer websites as well as forums for customers to
discuss where the best deals can be found.

These are the following sales promotional technique:-

Consumer sales promotion techniques

 Price deal: A temporary reduction in the price, such as happy hour

 Loyal Reward Program: Consumers collect points, miles, or credits for purchases and
redeem them for rewards. Two famous examples are Pepsi Stuff and Advantage.
 Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage
marked on the package.
 Price-pack deal: The packaging offers a consumer a certain percentage more of the
product for the same price (for example, 25 percent extra).
 Coupons: coupons have become a standard mechanism for sales promotions.
 Loss leader: the price of a popular product is temporarily reduced in order to stimulate
other profitable sales
 Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for
delivery.
 On-shelf couponing: Coupons are present at the shelf where the product is available.
 Checkout dispensers: On checkout the customer is given a coupon based on products
purchased.
 On-line couponing: Coupons are available on line. Consumers print them out and take
them to the store.
 Mobile couponing: Coupons are available on a mobile phone. Consumers show the offer
on a mobile phone to a salesperson for redemption.
 Online interactive promotion game: Consumers play an interactive game associated with
the promoted product. See an example of the Interactive Internet Ad for tomato ketchup.

Example Ad For Online Games 7'UP Dancing Allu Arjun.

 Rebates: Consumers are offered money back if the receipt and barcode are mailed to the
producer.
 Contests/sweepstakes/games: The consumer is automatically entered into the event by
purchasing the product.
 Point-of-sale displays:-
o Aisle interrupter: A sign that juts into the aisle from the shelf.
o Dangler: A sign that sways when a consumer walks by it.
o Dump bin: A bin full of products dumped inside.
o Glorifier: A small stage that elevates a product above other products.
o Wobbler: A sign that jiggles.
o Lipstick Board: A board on which messages are written in crayon.
o Necker: A coupon placed on the 'neck' of a bottle.
o YES unit: "your extra salesperson" is a pull-out fact sheet.
 Kids eat free specials: Offers a discount on the total dining bill by offering 1 free kids
meal with each regular meal purchased.
Trade sales promotion techniques

 Trade allowances: short term incentive offered to induce a retailer to stock up on a

product.
 Dealer loader: An incentive given to induce a retailer to purchase and display a product.
 Trade contest: A contest to reward retailers that sell the most product.
 Point-of-purchase displays: Extra sales tools given to retailers to boost sales.
 Training programs: dealer employees are trained in selling the product.
 Push money: also known as "spiffs". An extra commission paid to retail employees to
push products.

Trade discounts (also called functional discounts): These are payments to distribution channel
members for performing some function .

Political issues

Sales promotions have traditionally been heavily regulated in many advanced industrial nations,
with the notable exception of the United States. For example, the United Kingdom formerly
operated under a resale price maintenance regime in which manufacturers could legally dictate
the minimum resale price for virtually all goods; this practice was abolished in 1964.[1]

Most European countries also have controls on the scheduling and permissible types of sales
promotions, as they are regarded in those countries as bordering upon unfair business practices.
Germany is notorious for having the most strict regulations. Famous examples include the car
wash that was barred from giving free car washes to regular customers and a baker who could
not give a free cloth bag to customers who bought more than 10 rolls.[2] –
 DATA ANALYSIS
AND
INTERPRETATION
DATA ANALYSIS AND INTERPRETATION:-
1.)Do you sale pepsico or coke product?

a.)only pepsico product b.) only coke product c.) Both d.) other
 No. of Respondents Percentage
Only pepsico products 6 12
Only Coke Products 9 18
Both 35 70
Others 0 0
total 50 100

70%

Only pepsico products

Only Coke Products
Both
Others

Interpretation:-
Most of the retailer(70%) use to sell both the brand i.e pepsico and coke whereas 12% and
18%retailer deals with only pepsico and coke product respectively.Those who deals with either
of the product use to criticise other.

2.) Do you really considered sales promotion technique while giving order or while
purchasing pepsico product ?

a.) Yes b.) No

No.of respondents Percentage

 Yes 48 96
No 2 4
Total 50 100

Chart
4%
Title

Yes
No

96%

Interpretation:-
Almost all retailer considered sales promotion technique while giving order or while purchasing
because they believe that scheme is the technique which enhances their profit margin.

3.) From where do you get the information regarding the promotional activities?

a.)PSR b .)Salesman c.) Advertising . d ) Friend

e.)Any other (please specify)
 No. of Respondents Percentage
Psr 30 60
Salesman 13 26
Advertising 2 4

Friends 3 6
Any other 2 4
Total 50 100

70

60

50

40

30

20

10

0
Psr Salesman Advertising Friends Any other

Interpretation:-
Pre sales representative(psr) is the main source of getting the information for 60% retailer
whereas salesman contribution in this context is to the extent of 26%.The contribution of
advertising ande any other source in this regard is marginal but friends contribution is ranges
upto 6%.
4.) Which sales promotion technique you prefer the most?

a.)Retailer’s sales contest b.)Discount c.)Scheme d.)Gift e.) Display

board
 No. of respondents percentage
Retailer’s sales contest 4 8
Discount 6 12
scheme 32 64
Gift 5 10
Display board 3 6
Total 50 100

10

Retailer’s sales contest

Discount
scheme
Gift
Display board

64%

Interpretation:-
As per the major of the retailer (64%) most prefered sales promotion technique is providing the
scheme because they believe that scheme is significantly contributed to their profit
margin.Retailer’s sales contest which take place occassionaly prefered by 8% retailer whereas
discount is prefered by 12% retailer.Surprisingly gift is entertained by only 10% retailer and
offering of display board is by 6%.

5.) Does sales promotion activities affect your sales volume?

a.)yes b.) No
If yes than how
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………..

No. of respondents percentage

Yes 43 86
No. 7 14
Total 50 100

86%

Interpretation:-
Most of the retailer (86%) express their views that sales promotional activities affect their sales
volume because after purchasing product on scheme basis they insist consumer for purchasing
particular brand to earn more profit.But 14% said that it doesn’t affect their sales volume and
consumer use to purchase as per their wish.
6.)Whose sales promotional activities attract you the most ?

a.) Pepsico b.)coke

 No. of respondent Percntage
Pepsico 24 48
Coke 26 52
Total 50 100

no. of resp.
52% 48

pepsico
coke

Interpretation:-
There is cut throat competition between pepsico and coke in following the sales promotional
activities.But coke has some edge over pepsi.Coke promotional activities is favoured by 52%
retailer whereas 52% retailer attracted by pepsico promotional activities as compared to coke .

7.) Do you think sales promotion help in building brand image?

a.)Yes b.) No
 No. of respondents Percentage
Yes 32 64
No. 18 36
Total 50 100

64

Interpretation:-
Most of the retailer (64%) has opinion that yes sales promotion has a major role in building the
brand image. But 36% believe that sales promotion has nothing to do with building brand image.

8.)Do you agree sales promotion help in creating awareness about a particular product ?
a.)Strongly agree b.)Agree c.)Disagree d.) Strongly
disagree
 No. of respontend Percentage
Strongly agree 22 44
Agree 20 40
Disagee 5 10
Strongly disagree 3 6
total 50 100

No.of resp.
6%

Strongly agree
Agree
Disagree
Strongly disagree

Interpretation:-
According to the retailers sales promotion help in creating awareness about a particular
product.Because activities like free trial, exhibition , scratch card scheme etc. add curiosity
among consumer to know about it which resulted in increasing the awareness about product.
However 16% retailer do not think so.

9.) Do you think sales promotion help in creating brand loyalty?

 a.) Yes b.) No

No. of respondents Percentage

Yes 30 60
No 20 40
Total 50 100

no. of respond.

Yes
no

40

Interpretation:-
Brand lopyalty can only be created by offering better scheme,better service,reasonable price etc.
Therefore 60% retailer think that sales promotion help in creating brand loyalty which is indeed
a good news for the organisation.But as against this 40% do not agree that it help in creating
brand loyalty.

10.)On the scale of 5 please rate the effectiveness of pepsico sales promotion activities?
 a.)1 b.) 2 c.) 3 d.) 4 e.) 5

No. of respondent Percentage

1. most effective 17 34
2. effective 22 44
3. Avarge 6 12
4. less effective 3 6
5. No effective 2 4
Total 50 100

No.of respond.
4
34
12
most effective
Effective
Avarge
Less effective
No. effective

44

Interpretation:-
Around 78% retailer rated that promotional activities followed by pepsi is quite effective. 12%
rated it average. And somewhere around 10% think that it is not effective but it could be made
more effective.

11.)Have you ever face any biasness in getting any scheme or in getting any promotional
discount or something ?

a.) Yes b.)No

If yes than what
………………………………………………………………………………………………………
………………………………………………………………………………………………………
…………………………………………………………………………….

No. of respondents Percentage

Yes 6 12
no 44 88
total 50 100

88% No. of respondent12%

yes
no

Interpretation:-
Some of the retailer have complain that some partiality,some biasness is being occuring with
them in context of giving the daily scheme.They claim that salesman use to offer more scheme to
large retailer and ignore them because they are small retailer.
12.) Do you have any complain regarding the promotional activities followed by Pepsico?

a.) yes b.)No

If yes than please specify
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
……..

No. of respondents Percentage

Yes 8 16
No 42 84
Total 50 100

No. of respondents

yes
no.

Interpretation:-
Most of the retailer do not have any complain regarding the promotional activities.But few have
complained that biasness is done with them in giving scheme, some has not got Digital camera, t
–shirt inspite of declared as winner.
13.) Would you like to give any suggestion / advice in order to make pepsico’s sales
promotional activities more effective?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
……………………………………………………………………………………………..

For suggestion that I received from retailer please refer page no.50
 FINDINGS

FINDINGS:-
The collected data which were analyzed came out with the following conclusions:-
 It is found that almost all retailers considered sales promotion technique while purchasing or
while giving order.
 Retailers get the information regarding promotional activities mostly from PSR followed by
Salesman.

 And the free offers or gift were not distributed properly to the retailer in which they face
problem when customer demanded free gifts.

 It is revealed that retailers preferred the scheme activities as compared to discount,

gift,display board etc.

 Most of the retailers agree that sales promotional activities help in creating awareness and
building brand image.

 Salers promotion technique followed by coke is more effective as compared to pepsico.

 Some of the retailers have complain that they face biasness in getting thre scheme.
 In the city like Dehradun, Pepsi products are reaching to every corner (remote area) where
not a single bottle of Coca-cola can be seen.
 Most of the dealers want glow sign and chilling equipments, which they are asking from long
time.

 Most of the consumer doesn’t like the taste of PEPSI due to its Sweetness and low fizz.
 Retailers are often ask for the incentives and sales promotional schemes.
 Some dealers & retailers stops selling Pepsi products because they are not satisfied with the
company, where Coca-cola fulfill some of their demand and got the opportunity to make
exclusive counter for the soft drinks.
Suggestions
Suggestions:-
 First of all company should provide all sort of promotion equipment such as glow sign
board, banner, rack, freeze, etc. to retailers in time so that they increase their sales which is
benefited both retailer as well as company.
 Salesman should have good interaction with the retailers, which result Company in increase
in sales. Company executives should visit the counter on weekly basis. Executives should
take the feedback from the dealers about the service of the sales man and the distributors
 Regular visit of technician is required to solve the problems of Freeze in the market at the
right time.
 More improvement is required in the distribution network in the outskirt and in the remote
areas, because in the peak seasons like summer the small dealers are taking goods twice or
thrice and in between if the distributors could not supply them, the competitors will get the
opportunities to supply the goods.
 The entire Pepsi product should be displayed at one place so that the customers can aware
about the different brand of Pepsi. In the bus stand, railway canteen, highway the CAN and
PET Bottles should be made available every time because the publics are busy there and they
cannot wait.
 Pepsi is a sweet and low fizz soft drink that everybody knows and so lots of people do not
like so to catch the customers Pepsi should come out with more fizz.
 Few outlets are unaware about scheme so proper communication is necessary between
distributor and dealers/retailers.
 More effective scheme should be provided.
 Biasness should not happen with retailers on any ground.
 There should be more focus on 100% avaibility so that Pepsi don’t lose sales & market
share.

 More & more research should be made to find new segment & more profitable market for the
product.
 Kids constitute the second largest segment of the soft drink market. So, more & more fun
based advertisement for the brands should be necessary. Some life style based advertisement
is also necessary.

 The company strategy should be made in such a way, that maximum no. of consumer will
prefer to consume Pepsi i.e. give importance to quality control, give more importance to
public awareness and in advertisement.

 Retailers are the good intermediaries so the company should give more packages to the
retailers, by which they can looks towards the high sales of this particular brand.

 The company should start survey time to time to know the grievances of retailer as well as
consumers.

 Some times absence of stocks annoys retailer and consumers, so company should keep a
watch to the availability of brand.
CONCLUSION
CONCLUSION:-
Pepsi & its Product Co. are the Profitable MNC’s in not only India but also in the whole world. Its
main competitor is Coca-Cola. Pepsi has built a reputation around the world as a major player in the
soft drink market as well as the leader in the snack food industry. Currently they are facing stiff
competition from Coca-Cola, but with their various marketing ventures as well as the selling of their
restaurant franchises, Pepsi is poised to give Coke a definite battle in the future as to which cola
consumers want.
Promotional activities play a greater and important role in the entire marketing effort being carried
out by Varun Beverage Ltd., “to generate more sales as well as to create and maintain an image of
its product”.
Pepsi believes that “Jho Dikhta Hai Woh Bikta Hai” i.e. any product which is visible is bound to
be sold This method of sales promotion being used by the Pepsi, through its distributors is to
conduct dealer’s sales contest during the peak seasons i.e. during April to July. In it the dealers are
given prize in the form of cases of soft drinks and gifts. In the contest at first his or her respective
distributors according to there categorize each dealer. And then each distributor fixes a target of
minimum sale for each category to which every dealer according to his or her category has to
achieve during the contest period.
The dealers achieving highest sales over and above the target set is giving the awards as under, the
order of prizes announced are first prize, 2 nd prize, 3rd prize in terms of number of free cases of soft
drinks and gifts.
Thus Varun beverage Ltd carried out its promotional activities (in the area of Dehradun) as a
controlled and integrated program of communication and material design to present its soft drink to
the prospective customer. It also helps in communication the need satisfying qualities of soft drink,
to facilitate the sales and eventually to contribute towards the profit in long range and a great display
will result in great sales and that is a 100% guaranteed way to add profits .So time to time this type
of scheme will help the company to improve the sales in long time.
BIBLIOGRAPHY
BIBLIOGRAPHY:-

Books:
Kotler, Philip. “Marketing Management” Prentice Hall of India, edition-IX.
Ramaswami, V.S and Namakumari, S. “Marketing Management”. Macmillan, edition-II.

Web-sites:
www.pepsi .com
www.corporate .org
www.wikipedia encyclopedia.com
ANNEXURE
ANNEXURE:-

Questionnaire for Sales Promotional activities of Varun Beverage Ltd. ,

Pepsi

City:
Date:-
Question No.
Dear Sir / Madam
I am doing a brief survey to study the sales promotional activities of
varun beverage Ltd., pepsi as a part of my project. So I am requesting you to kindly cooperate
with me in filling the questionnaire. I am assuring that information provided by you will be
used for academic purpose only.

Name:-

Outlet Name:-

Address:-

Contact No:-

1.) Do you sale pepsico or coke product?

a.) only pepsico product b.) only coke product c.) both d.) other

2.) Do you really considered sales promotion technique while giving order or while
purchasing pepsico product ?

a.) Yes b.) No

3.) From where do you get the information regarding the promotional activities?
a.)PSR b .)Salesman c.) Advertising . d ) Friend
e.)Any other (please specify)

4.) Which sales promotion technique you prefer the most?

a.)Dealer’s sales contest b.)Discount c.)Scheme d.)Gift e.) Display

board

5.) Does sales promotion activities affect your sales volume?

a.)yes b.) No

If yes than how

………………………………………………………………………………………………………
………………………………………………………………………………………………………
………..

6.)Whose sales promotional activities attract you the most ?

a.) Pepsico b.)coke

7.) Do you think sales promotion help in building brand image?

a.)Yes b.) No

8.)Do you agree sales promotion help in creating awareness about a particular product ?

a.)Strongly agree b.)Agree c.)Disagree d.) Strongly

disagree

9.) Do you think sales promotion help in creating brand loyalty?

a.) Yes b.) No

10.)On the scale of 5 please rate the effectiveness of pepsico sales promotion activities?

a.)1 (most effective) b.) 2 ( effective) c.) 3 (average) d.) 4 (less

effective) e.) 5(no effective)

11.)Have you ever face any biasness in getting any scheme or in getting any promotional
discount or something ?
 a.) Yes b.)No

If yes than what

………………………………………………………………………………………………………
………………………………………………………………………………………………………
…………………………………………………………………………….

12.) Do you have any complain regarding the promotional activities followed by Pepsico?

a.) yes b.)No

If yes than please specify

………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
……..

13.) Would you like to give any suggestion / advice in order to make pepsico’s sales
promotional activities more effective?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
……………………………………………………………………………………………..

Retailer Signature
THANK YOU