Pepsi Project

MARKET RESEARCH, SALES PROMOTION, ADVERTISEMENT & COMPETITOR ACTIVITY IN PATNA WITH REFRENCE TO
LUMBINI BEVERAGES PVT. LTD.

SUBMITTED TO
MANAGEMENT PROGRAMME
UNIVERSITY 0F MYSORE FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION SESSION: 2007-2009
UNDER THE GUIDENCE OF: BY:
SUBMITTED
[LUMBINI BEVERAGE PVT. LTD]

Mr. ARUN KUMAR KUMAR TDM (Patna) 29 (MARKETING) AMIT ROLL.NO. -
LUMBINI BEVERAGES PVT.LTD

DATE: 30-06-2008 To Whom It May Concern This is to certify that Mr. Amit Kumar Student of MBA, of K.R. Manglam Global Institute of Management, Delhi session 2007-2009 has completed his summer training during 04-05-08 to 0406-08 on the topic of Market research, Advertisement, Competitor activity and Sales & distribution system under LUMBINI BEVERAGES PVT.LTD. (PEPSICO), Hajipur at Patna. He successfully undertook the above dissertation with total sincerity and dedication to our satisfaction. His conduct during the training period was good. We wish him all the best & hope that this training might help in his professional career.
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For LUMBINI BEVERAGES Pvt. Ltd
(Arun Kr. Singh) Trading Development Manager
Regd. Office: P-214, C.I.T. Scheme VI(M), Kolkata 700 054, Tel.: (033) 2229 5762, Fax: (003) 2229 5762, Email: khilani@vsnl.net,Plant: H-2, EPIP, Industrial Area, Hajipur 844101, Tel.: (06224) 274873,274836, Fax: (06224) 275927, Email: plant@lumbini.net
PREFACE
The present era is an era of Brand Marketing the business of brand marketing can be compared to the game of chassis this area of marketing brand name, packaging, and distribution and advertising plays similar role as that of pawn on the board of chess. To achieve the purpose I have done my summer project training from Lumbini Beverages pvt. Ltd.Hajipur, unit the topic given me is A BRIEF STUDY ON SALES & DISTRIBUTION SYSTEM, MARKET

RESEARCH, CONSUMER BEHVIOUR, and COMPITITOR ACTIVITY OF PEPSI IN PATNA (BIHAR). Knowledge attains maturity and perfection through application in practical field. Application of management principle in all branches whether product. Personal marketing, etc. result is more efficient and efficient and effective utilization of available resources. This report has been compiled firstly in partial fulfillment of the requirement for MBA, secondary to share the practical knowledge and experience gained as result of continued association with companys marketing branch. The details mentioned in this report are based on real situation. Since the reader would like to know the general details of two cola giants. Therefore a chapter includes theoretical aspects of comparative study and its application for the industry in marketing is also include. Further to help the reader in understanding the findings, graphical representation, conclusions and suggestions are also includes, which very much helps Lumbini Beverages Pvt. Ltd. Hajipur to know where he stands in the soft drinks market. What is the

market share of Pepsi? And what Pepsi is doing against Coca-cola. I frequently hope that this project report would be considerable help to the management for developing strategies in those areas.

ACKNOWLEDGEMENT This project report is a sincere attempt to carefully and systematically gather facts about and evaluate the sales promotion, distribution and market research of LUMBINI BEVERAGES PVT. LTD. HAJIPUR as a part of the course curriculum of SALES & DISTRIBUTION SYSTEM,MARKET RESEARCH ,CONSUMER BEHVIOUR ,COMPITITOR ACTIVITY OF PEPSI IN PATNA(BIHAR).which is of eight weeks duration for the completion of my project report many persons directly or indirectly assisted me. First of all, I would like to thank almighty God, without his blessing the whole report could not have been completed. In this context I, Amit Kumar student of K.R.Manglam Global Institute of Management, University of Mysore, Bangalore .Would first of all like to express my thankfulness to parents and family members, who have constantly deported and encouraged me in shaping my career. I also express my profound sense of gratitude to Mr. G.P Singh [CEO], Arun Kr. Singh [TDM], Binay Kumar [Deputy TDM], & CE Banwari Shukla, Patna of Lumbini Beverages pvt. Ltd., Hajipur, who provided
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me an opportunity to work and also guide me at every step of my project. Their proper direction and constant inspiration proved to be an asset for this project.
I am also grateful to Mr. N.K. Prasad [HR manager] Lumbini beverage pvt. Ltd, For giving me an opportunity to learn and conduct research in their esteemed organization, Words are too little to express my gratitude. I would like to thank Mr. Vikash Kumar, Mr. Nitin Kumar, Mr. Amar Sinha & Depot, In charge Mr.j.L.Rajpal for their kind co-operation to compile my project. Since the reader would like to know the general details of two cola giants, therefore, chapter includes as discussion of theoretical aspects and its application is included. Further to help the reader to understand the finding with graphical representation. Conclusions and suggestion are also included, which very much helps to know that where LUMBINI BEVERAGES Pvt. ltd., stands in the soft drink market what is market share of Pepsi and how Pepsi is doing against coca-cola.
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I hope this report will be special interest to the marketing students, who are on look such real life situations beyond their classroom studies.
Amit Kumar
CONTENTS
Chapter 1: Introduction to the Study

1.0 1.1 1.2 1.3 1.4 1.5 1.6 Introduction Purpose of the Study Importance and Relevance of the Study Research objective Scope of Study Characteristics of soft drinks Methodology to be used
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1.7 Limitations of Study
Chapter 2: Industry Profile

2.0 2.1 2.2 2.3 Overview Mission and vision of PepsiCo History of Pepsi Pepsi the Indian experience
Chapter 3: Introduction of the organization

3.0 Lumbini beverage Pvt. Ltd. 3.1 Profile of LBPL 3.2 3.3 3.4 3.5 Organizational hierarchy Production process Product profile SWOT analysis
Chapter 4: Marketing Strategy & Distribution Channel

4.0 4.1 4.2 Marketing strategy Marketing mix Promotional activities
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4.3 4.4 4.5 Advertising & sales promotion L.B.P.L Merchandising policy Distribution channel of LBPL
Chapter 5: Product Performance of Pepsi

5.0 5.1 5.2 5.3 Targeting product comparison Product availability Pricing of product Pepsi performance in comparison
Chapter 6: Data Analysis and Interpretation

6.0 6.1 6.2 6.3 6.4 6.5 Interpretation of outlets Market share Market share of different soft drinks Market share of equipments Percentage share of glow sign board Percentages of satisfied distributers
Chapter 7: Market survey

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7.0 7.1 7.2 Research methodology Dealer survey Limitations of the research
Chapter 8: Conclusions and Suggestions

8.0 8.1 Conclusions Suggestions Annexure Glossary of terms Questionnaire Bibliography
Chapter 1: Introduction to the study 1.0 1.1 1.2 Relevance of the Study 1.3
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Introduction Purpose of the Study Importance and Research objective

1.4 1.5 drinks 1.6 1.7 Methodology to be used Limitations of Study Scope of Study Characteristics of soft
INTRODUCTION
India with a population of more the 100crore is potentially one of the largest consumer markets in the world with urbanization and development of economy,
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tastes and interests of the people changes according to the advance nation. Beverage industry is one of the fast growing industries in India. It can be divided into two sections i.e. carbonated and non -carbonated. The carbonated drinks can be further classified into Cola, Lemon, Orange, Mango & Apple segments etc. Marketing includes all the activities like promotion, distribution, advertising etc. to fulfill the demands of all segments of consumers. Marketing is also convert social needs into profitable opportunities. So this topic provides all the essentials to the theoretical knowledge with practical knowledge and to inculcate the efficiency. It is also a requirement for the company to improve its service and product quality to achieve the ultimate goal. Marketing is about winning this new environment. It is about understanding what consumers wants a supplying its more efficiency and more conveniently. India where more than 50% of the total population exists below poverty line the consumer cant afford such high price for soft drinks. As a result the trading activities of the soft drinks industry are concentrated in and around big cities and town where the
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purchasing power of population is considered comparatively high. Soft drinks industries in India has annual sale of about 5000crores, with per capita consumption of soft drinks at a low of eight bottles per annum is due to price factor. So, marketing is both philosophy and technology. It is technology because it suggests ways and means for effective production and distribution of goods and services in the market to give maximum satisfaction to the consumer. In this regard the marketing management with have to apply to marketing technology in the conceptual philosophy of a system. It is the process of system analysis in the marketing management for effective research and can be defined, systematic objective and exhaustive study of tasks relevant to any problem in the field of marketing .
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PURPOSE OF STUDY
A project cum training is an essential part of MBA +PGDM curriculum. This study was conducted on A comparative assessment of the Pepsi performance in the cold drink market in Patna and promotional activities in Patna central region. It also helps to make improvements in service and quality of the Pepsi product, for their long term existence in the market and earning profit. Simultaneously, it is also helpful to me to learn about the consumers behavior and their demand for the beverages in particular area (market). Executive training was undertaken on the following objectives:
To know the brand acceptance of Pepsi in the cold drink market in Patna.
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To determine the factors which persuade the retailer for sale of Pepsi?
To know the effects of anti-cola advertisement on sale of Pepsi. To find out the companys position & market share in the soft drink market. To find out the exclusive outlets of Pepsi & its competitors.
To find out the various competitors of Pepsi & their strategy.
To find out promotional activities of Pepsi & its competitors.
To understand the acceptance of Pepsi as compared to coke To identify the organizational features of Pepsi.
IMPORTACE OF THE STUDY

The topic has been already given to the company to collect information about current happening in the market. It also helps to makes improvement in
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service and quality of the product, for their long term existence in the market and earning profit. Simultaneously, it is also helpful for me to learn the consumer behavior and observe their attitude toward demand of particular products practically.
RESEARCH AND OBJECTIVES

The following were the main objectives of the research:
To know the stock position of Pepsi and its competitors at different outlets.
To study the marketing and promotional activities at various retail outlets.
To know per day sale of Pepsi brand and its competitors in crates. To study the percentage share of Pepsis cooling equipments. To know how many outlets are covered with glow signboard of Pepsi? To know the market share of Pepsi products.
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SCOPE OF STUDY
The main scope of this research is ascertaining the various methods to increase the sales volume and distribution activity of concerned company. The methods include regular measures to make the position in the market and taking measures to confirm the brand position. One of the most important aspects of this study is also to increase the market segment for the products.
OTHER SCOPE OF THIS TOPIC MAY BE AS FOLLOW:

Target market segment Comparison of Pepsi products with its competitors. Identification of market potential. Evaluating customers need with company products. Collecting suggestions for product improvement etc. Evaluating awareness about Pepsi Company.
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CHARECTERISTICS OF THE SOFT DRINKS
Unfinished goods (required chilling before consumption). Two way transportation (one filled bottles to market and second empty bottles from market Heavy expenses on advertisement and promotions More attention to retailer .several schemes and other facilities provided to them New flavor are introduced from time to time Highly competitive market with only two equally strong players
METHODOLOGY OF THE RESEARCH

For the purpose of gathering data from various dealers and consumer, I preferred collection of primary data with the help of open and close-ended questionnaires.

Defining the problem and the research objectives. Developing the research plan. Questionnaires.
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Sample size.
LIMITATION OF THE STUDY
The finding of the study may not be applicable to other places except Patna. The respondents were too busy to give exact answer to all questions. There is chance of under estimation of sales and income as it is the nature of human beings. This study analysis is opinion of retailers only. The results may not hold good in the long run as taste and preference of human beings are subject to change over a period of time. There are chances of sampling error. Chances of biased data collections to respondents.
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Chapter 2: Industry Profile
2.0 2.1 2.2 2.3 Overview Mission and vision of PepsiCo History of Pepsi Pepsi the Indian experience
OVERVIEW
PepsiCo is a world leader in convenient foods and beverages, with 2006.Revenues of more than $35 billion and more than 168,000 employees across the
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world. Its world renowned brands are available in nearly 200 countries and territories.
Building for the future

PepsiCo is among the worlds largest consumer products companies focused on convenient foods and beverages. They were proud on their products are some of the worlds best known brands and they are enjoyed by billions of people around the world every day. There products are recognized for their quality, taste and value, and increasingly, for their contribution to healthier diets.
ABOUT US:
the Pepsi Bottling Group (PBG) is the world's largest manufacturer, seller and distributor of Pepsi-Cola beverages, Some of the world's most recognized consumer brands. PBG became a publicly-traded company in March 1999 through one of the largest initial public offerings in the history of the New York Stock Exchange. PBG generates nearly $11 billion in annual sales. It operates in the United States, Canada, Greece, Mexico, Russia, Spain and Turkey, accounting for more than one-half of the Pepsi-Cola beverages sold in
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North America, and about 40 percent of the Pepsi-Cola system volume worldwide.
OUR CUSTOMERS
In the U.S. and Canada, most of PBG's volume is sold in supermarkets, followed by the convenience and gas channel, where Pepsi brands have the market-share lead. The balance of volume is sold in mass merchandising outlets, restaurants and other fountain accounts. In the U.S., Canada and Mexico, our sales people interact directly with most customers to sell and promote Pepsi products (Direct Store Delivery). In other international territories, PBG serves customers with a combination of Direct Store Delivery and thirdparty distributors. Among the services we provide to our customers are proven methods to grow not only Pepsi brand sales, but sales in the overall beverage category. Ultimately, our goal is to help our customers grow their beverage business by making our strong product line-up readily available to consumers at every shopping occasion.
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OUR ORGANIZATION
The people at PBG reflects the Company's emphasis on superior sales capability and service. In North America, more than one-half of PBG employees work in sales, followed by nearly one-third in operations. Our organizational structure, based on a general management model, reflects the same priorities. The Vice President/General Managers of PBG's market units lead marketing and sales efforts in contiguous geographic areas with common major customers. We designed our organization to give our market units the autonomy to serve the needs of individual customers, develop market-specific strategies, and respond to local marketplace dynamics. From the General Manager to the frontline customer representative, the entire PBG sales force competes on a local level to serve existing customers and to win new accounts. The Pepsi Bottling Group is a fast-paced, customerfocused company, with an entrepreneurial spirit. We offer careers in sales and sales operations, manufacturing, finance, human resources, information technology, field marketing, and general
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management. The Company's success hinges on the thousands of face-to-face transactions our frontline employees conduct with customers every day. That is an exciting, empowering career proposition for the individuals who make up PBG's sales force and for the teams that support and lead them. The Company is an equal opportunity employer and values the diversity of its workforce
PBG AND PEPSICO

PBG became an independent, publicly-traded company in March 1999. PepsiCo retains an equity interest in PBG of about 40 percent. As an independent entity, PBG benefits from a much sharper definition of its role and is able to execute its business strategy more effectively on a local market level. PepsiCo's focus is on what it does best, which is developing innovation, building its powerful brands and creating the world-class marketing programs to support them. And, as PepsiCo's largest bottler, we at PBG can do what we do best: making, selling and delivering more of those brands, more profitably than ever before. PepsiCo world headquarters is located in purchase, New York, approximately 45 minutes from
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New York City. The seven-building headquarter complex was designed by Edward Durrell Stone, one of Americas foremost architects. 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. PepsiCo global CEO is Indira K. Nooyi and Sanjiv Chadha is Indian PepsiCo CEO.
MISSION AND VISION OF PEPSICO

PepsiCos mission is to be the world premier consumer Products Company focused on convenient food 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 everythings wed, we strive for honesty, fairness ail, At PepsiCo, we believe that as a corporate citizen, we have a responsibility to contribute to the quality of life in our communities. This philosophy is expressed in our sustainability vision which states; PepsiCos responsibility is to continually improve all aspects of the world in we operate environmental, social, economicalcreating a better tomorrow than today.
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Our vision is put into action through programs and focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable Company.
History of Soft drinks in India

Soft drinks are a non- alcoholic beverage. It is artificially flavored and contains no fruit or pulp. India with more than 110crores population is one of the largest consumer markets in the world after China. Soft drinks is a typical consumer product purchased by individuals to quench thirst and secondly for refreshment. Searching for the point of origin of Indian soft drinks, I first document on gold spot this was the first brand soft drink in India. it was introduced by Parle during later part 40s .cola giant ,coca cola was the foreign soft drink to be introduced in India in 1965.CocaCola made a very good beginning and dominated the whole scheme right from the world go. It faced no competition at that time. The extraordinary success of soft drinks can be attributed to the following factors;
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Absence of contemporary competitive brand. Euphoric image build up in the western countries proceeded the entry into Indian market,and Indians are very fond of foreign goods, services etc. due to prolonged foreign rules.
Parle exports Pvt. Ltd. introduced Limica, Lemony soft drink in later 1970. Before Limca was introduced they had tentatively introduced Cola, Pepino, which they had to withdraw soon in the face of battering conformation with CocaCola. Three of four groups of Indian companies, which had the required production capacity, started their own brand of Cola, orange, Lemon but failed to achieve their goal on national basis. India always has love and hate relationship with MNCS which gave a significant opportunities to soft drink industries in India when Coca-Cola decided to bind up it was being wasted. Operation in 1977 rather than bowing to Indian government insisting on:-
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Dilution of equity, as the government felt that list of foreign currency Manufacturing of the top secret concentrate in India
Disclosure of the chemical composition of the essence
This left a large vacuum in popular soft drink market, and a vista was opened to any company with requisite technical, marketing and organizational skills. The existence of coca cola from India in 1977 accelerated the growth of several Indian soft drinks in the form of tetra pack entered the market, among the Frooti, jump-in, and tree top where the prominent one. Till 1977, there equipped bottling plants and the distribution network were of no use. It looks them one year to develop new formula to survive and gradually came up with Campa, lemon, orange, and cola. However Parle the pioneer in the soft drinks blazed its way to national prominence with their product thumbs-up bearing the slogan Happy days are
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here again. This particular slogan helped to win over the loyalists or addicts to Coca-Cola. Indian soft drink industry started at a phenomenal rate, and all Parle products, Gold Spot, Limca and Thums-up became the brand leader in their own segment. In spite of all these, the drink market still had large gaps, as claimed by soft drink manufacturers. To fill these gaps, many soft drink concentrate and squashes flooded the market .The Indian soft market basically offered three flavors i.e. Orange, Lemon and Cola. 1988 saw the entry of the multinational company PEPSI to the Indian market, 11 years after the existence 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 Parle and Coke.
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HISTORY OF PEPSI
Pepsi-Cola Company was founded by CALEB D BRADHAM in 1890 at North Carolina in USA. Its CEO is Indira k.Nooyi and in India PepsiCo. Holding its chairman is Mr.Rajiv Bakshi. The head office of PepsiCo in India is at Gurgaon. Presently it operates in 196 countries. Pharmacist CALEB it to cure the disease DISPARSIA, It is from this word that was related to Pepsi. Soon it entered the American market as soft drink which at that time was mostly dominated by Coca-Cola, but soon Pepsi was able to dominate the Cola market and thereafter it has been no looking back. Pepsi and Coca-Cola are engaged in a ferocious cold war that has taken the whole world by storm. Pepsi stands 51st position among the fortunate 500 companies of the world. Its total capital is approx $3000crore and total sales annually are worth
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$37crore, half of which comes from beverages and other half from food division. The beverages arm of the PepsiCo. Is Pepsi-Cola company and the snack food company is called Frinto-lay-Inc.
PEPSI THE INDIAN EXPERIENCE Previously there were three tag Yehi Hai Right Choice Baby, Nothing Official about It& yeh Dil Mange More which was immediately ring a bellits to be a Pepsi. Pepsi in 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 decision is taken locally. Pepsi started its operation in India in 1988in Kanpur and since PepsiCo. Has set up a fully integrated operation India viz. manufacturing, research and development, marketing distribution and franchising covering fruit/vegetable processing, export, snack and food beverages, In 1993 PepsiCo. Set up a holding company to further accelerate growth through new initiatives and joint ventures PepsiCo is fully
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committed to India and the national objectives of development of technology and accelerating exports and employment. It has invested 500crore in India to develop the local market. Pepsi has distributed exclusive franchises in India to bottle its total products. There 34 bottling plant of Pepsi in India. Pepsi directly controls some and rest is under various franchises.
Some special features in Indian scenario

Pepsi has set up a concentrate plant at Channo, District Sangur, Punjab, with an investment of 55million. The state of the art plant house a world class laboratory where soft drinks from all over the world are tested. This concentrate plant supplies Pepsi. 7-up teem, Miranda, Orange, Apple & Lemon flavors to all Pepsi bottling plant in south Asia. Pepsi has 34 bottling plant in India out of which 8company are owned and 26 are owned by Indian franchises. PepsiCo has invested heavily on up- gradation of this bottling plant and has put 5 green field projects in backward areas such as Jaipur, Bazapur in U.P., Bharuch in Gujrat, and Sonapur in W.B.and
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Naclamangala in Kernatka. New project are coming out Maharashtra and Tamil Nadu. In addition to the company owned bottling operation [COBO], Pepsi has 26 Franchises owned bottling company [FOBO] units in India. These franchises manufacturers are also planning to install substantial additional capacities. I last two years PepsiCos franchisees have put up nee bottling plant in Jaipur, Bhopal, Hajipur [Bihar], Guntur [A.P.] and Guwahati [Assam] with further investments. PepsiCo Franchisees are amongst the best in the Pepsi world.
JUICES:
Pepsi Co. plans to launch juices in big way in India, there by helping the farmer in fruit procurement. PepsiCo agriculture scientist has undertaken research on mango, guava and orange and these fruits would be the priority area for the juices launch in India. Presently Pepsi has one juisic brand.
EMPLOYMENTS OPPERTUNITIES:
Pepsi provide direct and indirect employment to person in supplying its raw material, packing materials, distribution vehicles, glass bottle, plastic carets, display rack, fridge etc. and to small artisans,
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painting and small trader in market places activity. All the Pepsi business in India is either in industries with backward linkages with farmer or in service industry being highly distribution oriented. The Pepsi system operate over 300 trucks (direct operations), 8000 three wheeler (distributers) and at least 1000 push carts, serving over half a million outlets in India. By the year 2005 the no. of outlets to be served are expected to be doubled.
DEVELOPING SPORTS:
Today Pepsi is one of the main sponsors for sports related activities in India. It has continued to promote up coming new players of cricket, football, hockey etc. Pepsi was the official sponsors of the world cup 2007. Pepsi has developed a Pepsi cricket academy, which would develop over 500 young cricket enthusiasts in next 5 years. Similarly Pepsi cricket coaching camps and clinics are held to coach young boys in north and south.
COMMUNITY RELATIONS:
Most of the bottling plant Pepsi is located in backwards area, there by giving huge employment opportunities in this area. Pepsi, as responsible company,
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undertakes social project in and around the bottling plant. These include support to the education centre, sponsors inoculation camps, providing free health check up, initiating sanitation, drives, promoting literacy drives and helping villages to put up bus shelter etc.
REVENUES GENERATIONS:
It is estimated that PepsiCo, and its franchises generates over Rs.600crores to the exchequer by the collection of excise and sales tax.
Chapter 3: Introduction of the organization

3.0 3.1 3.2 3.3 3.4 Lumbini Beverage Pvt. Ltd. Profile of LBPL Organizational hierarchy Production process Product profile
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LUMBINI BEVERAGE PVT. LTD Lumbini Beverages pvt. Ltd is franchisee of PepsiCo. India. Lumbini Beverages pvt. Ltd, a rupees 25crores unit was promoted by the family of KHILANI in the year 1996 with the proper infrastructure approved by PepsiCo Headquarter and the unit went into production, subsequent and marketing operation from 1997. Mr. Ravi Khilani is MD of this company the plant has 57 production staff 30 executives and 32 tem members within marketing and seller functions during
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the pick session i.e. Between April- July, the no. of production staff at times is increased to take care of increased production functions. The unit has capacity of bottling 400-600 bottles per minute or3000 crates of 24 bottles on a daily basis, i.e. when production schedule is on through out the day with three shift production system. The plant follows international quality audit standard for the purpose of maintaining quality controls in the quality of the product because the quality control function, by far is the most important criteria for purpose of competing in terms of quality in the contest of the market competition. This bottling unit at Hajipur has created a source of employment for a large no. of population residing in the Bihar and has also come out with quality/treated water resources, which is now being thought of diverting in to near by agriculture sector as an ongoing source to facilitate of management. This unit in the year to come should one of the most important industrial zones in this part of the country and this reality manufacturing and marketing unit should be a set of attraction as far as commercial activity are concerned.
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Profile of LBPL
Company land area Location and authority Hajipur Name of Director/Occupier Name of the MD Name of CEO Name of FM Name of HR manager Industrial license no. 12475(c) 66750/VLI Date: 16.08.1997 F.P.O. License no. -10607/97 Capacity minute : 1500 bottles per : 12 acres : EPIP, Industrial Area, : Mr. Charan Khilani : Mr. Ravi Khilani : Mr. G.P Singh : Mr. Dhawan : N.K Prasad : Regn. No. - H Factory license no.
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Nature of product Mirinda, Soda, Slice, : Soft drinks, Pepsi, Aquafina No. of employees seasonal labors Control board 07.04.1997 : 200 +150 (max) : No. 1877. Date
BOARD OF DIRECTORS
1. Mr. Charan Khilani (Director) 2. Mr. Ravi Khilani (Managing Director) 3. Mr. Manoj Khilani (Plant Director) 4. Mr. G.P.Singh (CEO) 5. Mr. Arun Kumar Singh (TDM, Patna)
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ORGANIZATIONAL HIERARCHY
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The process of manufacturing of aerated water (soft drink) like pepsi brand product is divided into five main parts such as:1) WATER TREATMENT. 2) SYRUP MAKING. 3) BOTTLE WASHING. 4) FILLING. 5) TESTING OF PRODUCT.
WATER TREATMENT Water treatment is very essential in soft drinks plant as the nature and quality of varies from place to place. To set uniform and standard water, the process of treatment is carried on. The water taken out from bore well having depth of 500m by the help of motor pump & pipe lines. are connected to the storage tank where is pre-chlorinated by chlorinator & then by the help of pipeline comes to a treatment tank called Coagulation tank where to this water, solution of different strength of bleaching powder, ferrous sulphate, hydrated lime are added through dosing pump to reduce the alkalinity hardness, kills the bacteria and the pH become 7.5.Mechanical stripper mixes the chemical & then suspended matter settles down as sludge& clear water passes to retention tank. From this tank the water passes through sand filter
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containing fine sand and pebbles & carbon filter containing granular carbon & finally through the water polisher ,micron filter, UV lamp to ensure clear & sanitary water for use. Further water is used in bottle washer &boiler needs softening .For this purpose, the water from storage tank after passing through two water filter beds containing fine sand and granular carbon respectively comes through a bed of resin where it is softened. This softened water is essential to use in the boiler & bottle.Water to reduce scale formation inside the machines.
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Description of the above ray diagram

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Firstly the water should be taken out from the earth through motor from bore well which is about 500m deep. After that it store in the underground tank which is also know as storage tank having capacity of 1.5lakh litre at that time the hardness of water is 6.8 ppm.it has two in number. Then it reaches at coagulation tank having capacity of 80,000 litres in which ferrous, lime and bleaching powder is there which is used to remove the hardness of the ground water then it reaches to intermediate tank and after that it passes through sand filter in which small pebbles and fine sands are there ,where they remove small particles and transfer to the ACF i.e. activated carbon filter in which mainly chlorine is used having volume of 30 cubic meter per gram then it passes through 5 micron cartilage and UV light to remove small microbes.
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SYRUP MAKING
For the syrup making of the particular brand, calculated quality of sugar, water, activated carbon (powder) & by flow super cell known as filter aid are taken into a sugar space to enter stream & also filter by motor with agitated sugar syrup called raw syrup is prepared by dissolving the sugar with continues stirring and heating by steam supplied by oil fried boiler. This hot syrup by the help of pump is filtered through a filter press attached with the series of quality filter paper to separate out carbon particles. Clear hot syrup by the help of SS pipeline passes through water P.H.E. for cooling then another P.H.E. circulated by glycol for further cooling. The chilled syrup comes to the mixing tank, which is cleaned and sanitized prior to use. After circulation of sugar quantity by Brix Hygrometer, concentrate are added and mixed thoroughly by the mechanical stirrer filter to the tank. This syrup is known as finished syrup ready to drink the concentration mainly. The liquid part are also kept in a cold store, the temperature of the finished syrup is fixed in the room temperature is also maintained by air conditioner. all the containers used in the syrup making are cleaned and sanitized by sodium bi- carbonate, strong chlorine and hot caustic soda solution.
BOTTLE WASHING
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Bottle washing is an important part in the soft drink plant. The empty durable and restorable bottles used are returned from market in plastic crates, and fed to bottle washing machine (washer). The machine has double end system with circular chain to carry the bottles. Caustic soda, tri sodium phosphate, sodium glyconate are added to the caustic tanks filled in with water heated by stream supplied by bathe boiler. The empty bottles enter to the caustic solution and finally washed with water through spray-jets fitter dared discharged in other end. The washed bottles after proper inspection are directed to filling machines through conveyor. Cleaning and smooth running of chain carrying bottles. SU-260 and SU-773 are used for bottle cleaning, shinning and mold removing concentration. FILLING Finished syrup and treated water lime are concentrated to a dosing pump, which mixes syrup and water in the ratio of 1:5 and syrup mixed with water enters to carbonate tank to mix with carbon di oxide gas., which are preserved in cylinders for use. The cylinder is connected through carbon di oxide pressure and temperature of liquid; we use recording control (Taylor). The syrup passed through PHE that is cooled itself by the circulation of chilled glycol supplied by chilling compressor. To run the machine for chilling F-22 gas is used. The syrup being chilled easily mixes with carbon di oxide and enters to filter for billing .The filter is fitted with filing valves and lift cylinders. The lift cylinders
48

function pressure of air supplied by an air compressor. The syrup known as beverages in this stage is filled in the cleaned bottle, which ar4e durable in the nature and returnable by the buyer. By the filling machine by a counter pressure of carbon di oxide gas. After beverages is filled in bottle goes it goes to the crowner where with the help of crown corks the bottle are sealed(crowned) to protect the carbonation, flavor outside contamination and spoilage. The finished product are coded decoding machine and inspected properly by inspection light while passing through the conveyor fitted with SS chains. The empty plastic rated passing through a conveyor enter to crates, which are durable in nature and returnable by buyer, put on plates and sent shipping for shipment. The entire container in contact with syrup are properly cleaned and sanitized by soda-bio-carb, hot water, hot Caustic soda solution and strong chlorine base.
TESTING OF PRODUCT Finally the finished syrup during bottling is tested in laboratory to meet the parameters and also to get the standard and quality product. To maintain the standard and uniformility in products, the sugar contents and carbonation in the filled bottle are checked in regular intervals by Brink hydrometers refract meter and pressured gauge. A digital pH meter tests the pH. Electronic digital balance is used to the weight chemical to conduct test in the lab. The purity of carbon dioxide is checked by a carbon
49

dioxide purity tester. The microbiology test of the products and water used in syrup making and production are also done to ensure that the product is free from any bacteriological contamination. To conduct the micro test, hot sterilizer incubator autoclave, pads filler membranes are product used. the diesel generator is operated in case of electricity failure for smooth operation of the plant and for drawn electricity from the state electricity board the transformer is used.
RAW MATERIAL INPUTS :A soft drink bottling plant the following things as a raw materials: Sugar Flavor Water Carbon di oxide Crown cork Glass bottle Plastic crate.
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Sugar High purity crystal sugar is required to produce the sugar syrup for soft drink. The main supplier of sugar for Lumbini beverages Pvt. Ltd. is M/s KCP Ltd.chennai. The usual requirement of sugar is around 800 gm par carat for all flavors. Flavor Pepsi food Ltd. is supplying all essence of flavor for Lumbini Beverages Pvt. Ltd. from their plant Chennai, Bhavnagar (Punjab). Water The required water of Lumbini Beverages Pvt. Ltd. is being met from the high yielding deep boring well with pumps. Adding softening plant & DM Plant so as to meet the required quality of water then treats the raw water taken out from these well. Water quality is being strictly adhered through regular sampling & analysis.
Carbon dioxide Carbon di oxide gas of required purity is being carried on from Hindustan Gas India Ltd. and also from IOC Patna and Barauni, as per requirement of flavor. The usual consumption of carbon di oxide is 1 kg per 10 carats in case of Pepsi, 1 kg per 5 carats of Soda water and the rest flavor 1 kg per 114 carats.
51

Crown Cork Lumbini Beverages Pvt. Ltd. takes crown cork from Manksic Crown Ltd., Bhopal and Ghaziabad respectively. Glass Bottle Lumbini Beverages Pvt. Ltd. takes flint and green glass bottle from Hindustan National Glass Ltd. Tapovan (Hrishikesh). Plastic carats Lumbini Beverages Pvt. Ltd. takes plastic crates from Neelkamal Plastic Ltd., Nasik and Supreme Industries Ltd., Nasik.
PRODUCT PROFILE
52
53

3.5 SWOT ANALYSIS
After doing 8 weeks field work and survey I can take it out the SWOT analysis for Lumbini Beverages Pvt. Ltd. and Pepsi Brand.
Strength
Lumbini Beverages Pvt..Ltd. is Franchisee Owned Bottling Organization (FOBO) of worlds famous cold drink company Pepsi. LBPL uses state art and fully automatic machines and technology for the production and bottling of the soft drink. It has a very strong network and built market and currently holds all the parts of the state. It has wide range of product varieties & takes back breakage, burst bottles etc. Though it has strong brand equity, brand image , it can survive in the most competitive situation. It has built market & market share and holds more % with respect to its competitors.
54

Customer retention and satisfaction after sales is good.
Weakness No cost cutting program for the products. Promotional activities in the rural market are not up to the mark as compared to the urban market. Brand Pepsi in the cola flavor is one of the popular lagging behind its nearest competitor, only due to high sugar content and less thrilling taste. Not availability of all the products on demand. Lacking of communication with retailers. Timing of distribution is not very good. The cooling system is not distributed properly.
Opportunities
Although in the cola market there are many competitors, Pepsi still has the opportunity to enlarge its market share because the cola in the market is quite monotonic. Most
55

of the end user is young people. There are still some people who do not like the taste of the cola. So we can try to provide some other taste of cola such as adding some lime juice. We can change the flavor in order to meet different taste of different people. New innovative idea for advertisement like road show like bheja fry 7up try & mountain dew campaign
Threats
As to the threats, all of us know that Pepsi-Cola and Coca-Cola have the completion for about 80 years. Although Pepsi-Cola have won several times during this
56

completion. The market share of Pepsi-Cola is a little bit smaller than Coca-Cola. There is another threat nowadays, some local cold drinks such as sudha dairy and anuj dairy cola have takes their feet in the market. One of the products of their competitors in clear lime and lime flavor as a very good in market share due to its taste. Coca-Cola is now spending more & more to boost up the market share & sale.
57
Chapter 4: Marketing Strategy & Distribution Channel

4.0 4.1 4.2 4.3 4.4 4.5 Marketing strategy Marketing mix Promotional activities Advertising & sales promotion L.B.P.L Merchandising policy Distribution channel of LBPL
58
MARKETING STRATEGY:
Marketing Strategy is the complete and unbeatable plan designed specifically for attaining the marketing objective of the firm. The market objective indicates what the firm indicates, what the firm wants to achieves, the marketing strategy provides for achieving them. The marketing is not just idea. It is a well outlined plan, and there are different ways to formulating it. Basically formulating of marketing strategy consists of two main steps. Selecting a target market, assembling the marketing mix, actually, the target marketing and marketing mix together constitute the marketing strategy of the firm. When the Pepsi food company entered in the Indian soft drink market, the market was already prevailed by coke and
59

previously it was Parle. Pepsi tried to establish in India with a unique marketing policy. Pepsi took into consideration of youth segment target market. Though the advertisement of Pepsi highlighted the style of living of young generation with different walk of life, Pepsi brought in its advertisement different stalwarts personalities from fields like young cine stars, sport stars and famous personalities from different fields. It has attracted the young generation and of course increase the sale of Pepsi, also organized many national and international sports events to attract the young generation.
MARKET MIX OF L.B.P.L

The set of controllable tactical tools: A product, place, service and promotion (4ps) that the firm blends to produce the response it wants in the target market. These are the following 4ps.
Products: - That could meet the identified needs of chosen consuming groups.
60
Place: - It performs various functions like transportation, warehousing, channel management etc. so the products easily reach the consumer. Promotion: - The firm carries out a no. measure like personal selling, advertising and sales promotion programmed with view to communicate to the consumer and promoter of the product. It is the mechanism to achieve the consumptions of
marketing process, striking the level of price that is accepted to the firm as well as consumer.
4Ps policies of the Pepsi products: 1. Product: - There are five lines of products of soft drink in India that is almost matched with international quality product line. Pepsi - 200 ml, 300ml, 600ml. and 2000 ml.
Miranda - 200 ml, 300ml, 600ml. and 2000 ml.
7 up - 200 ml, 300ml, 600ml. and 2000 ml. Mountain Dew - 200 ml, 600ml. and 2000 ml.
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Slice - 250 ml, 500ml, and 1000 ml. 2. 3. Price: - Product price are fixed by Pepsi Co India according to competitors product price. Place: - Pepsi has a strong channel of distribution, and intermediaries command the distribution work. Plant - Depot - Distributor - Consumer. By this simple distribution, Pepsi is doing well. The company is trying to reach every remote village area. The company has succeeded to some extent in reaching its target. 3. Promotion :- In the specific, sales promotion methods are those sales activities that supplement both - personal selling and advertising and co-ordinate them and help to make them effective such as display, shows and exposition and demonstrations and other recurrent selling efforts not in ordinary route. Pepsi has variety of tools and techniques of sales promotion. Like for example sales promotion letters, catologs, point of purchase (POP), display, customer service program and demonstration of free sample. PROMOTIONAL ACTIVITIES (FOR RETAILERS)
62

Promotional activities consist of various means of communicating persuasively with the target audience. The important methods are: Advertisement: - Where an identified sponsors pays media (such as TV) to transmit to target consumer. Personal selling:- Where sales representative employed by the firm engage in interpersonal communication with individual consumers and prospective customers. Sales promotion:- Where the market utilizes displays, demonstrations, premiums, contests or similar devices. Publicity and Public relation:- Help to stimulate supportive news items about the firm and its product that have greater credibility with public than advertisement. Of all the methods of promotional activities that constitute the promotion mix, sales promotion is the only one method that makes use of incentives to complete the Push Pull promotional strategy of motivating the sales force, the distributor and the consumer transacting a sale. According to American Marketing Association sales promotion refers Those activities other personal selling,
63

advertising and publicity, that stimulate consumer Purchasing and dealer effectiveness, such as display, shows and exhibition, demonstration and various other non-recurrent selling efforts not in ordinary. Sales promotion is also known by the name of Extra Purchasing Value (E.P.V.).
VISI COOLAR DISPLAY,OYE BUBBLY CAMPAIGN
64
MS DHONI,
SHAHRUKH,
DIPIKA
MEANING AND PROMOTION
OBJECTIVE
OF
SALES
65

S. L N o 1 Sl s ae Po oi n rm o t Pi eofof r rc f fes Ma i g en n Oei gpo ut a l wr f rn r d c t o e f t a t en r a pi e hn h om rc l of rn mr q a tt o fei g oe uniy f th s m p o u t a n e a e r dc t o ex tra co o a v st r ery n m a i c e s i th o i l nr ae n e n pi e t e l r e q a t t rc h a g r u niy pc . ak Of r o a a f e f n rtic o le f m erch dise as an an i c ni e i od r t s l n e tv n r e o el po ut o s r i e r d c f ev c We th c n u e i h n e o s mr s e tl dt r d e s e ii n e o e e m p cfc i sa d adc rie aef r a t ne r etf c t o p d c f e o i p rt ro u t r e r n a p y e t. C u o s a a mn o p n re usedbybot ht he mn f c re a dth a ua tu rs n e dealers for sales po oi n Cu o s m r mto . o p n a y b dsrb t db e al e i t i ue y -m , i b m i a vri e e t , y e a d ets m s d n do o r-to o r In id -d o . s e po u t p c a eo b r dc akg r y d aeso p r hs . e l r n uc ae We in iv u ls a h n d id a re i ve t c m t o b ss ni d o o p e n ai t e o ce tv s il . Tel te f r ai e k s h at r l i b s do t ec a c o s ae n h hne r l c f co. uk a t r Oj ci e b tv e T e c ua eme i t o no r gi m ae d s l s at a t n nns r , ae, tr c o ues i d c nw r d c t i l n ue e po ut ra. T e c u g l ne o n o ra e o g r d r ti nc nu pi n ua o o s mt o , h hs o e c s q a tt i et r xes un y g i m v e t fro th o em n m e factory trade u , p c n u e f rh h r o s mr o ig e q a tt p c ssz. un y a k i e i T e c ua e p r hs o no r g uc a e s ml te l y l , o f ti ua o aty f s ao s l s po oi n e s n ae r mto , i d c t i lo pe i m n ue ra f r m t u o t ec nu e. h os m r toe c ua e p o u t no r g r d c t i l b idl yly t a e ra, u o at , r d l u r gl ruessi u t p e u s r tmae a l r - uc a e r t , s lct e p r hs ae oi i e q ii s n u e. r
2 .
Qa tt of un y f i of r fe
3 .
Pi i m rm u
4 .
Cua s o pn
5 .
Cnu e os m r c n ssa d ot t n e l c yda s uk r w
T create brand o a ae es a dsi u t wr ns n tmae l in re t inth b n te s e ra d a q an c nu es wh c ui t o s m i r t ba dua ea db nft r n s g n e eis b idt afc a t e soe u r fi t h t r l precipitate bran d pu rch ase. O btain c nu e f e b c , o s mr e d a k pr mt a v r i i e t j o oe d etsmn t e eo t ec m n. hm f h o p y a T p s mr s l s t o uh oe ae o t a ee ry ah e o ey r d al c s r c vr T at a t t afc a t e o t r c r fi t h re i s re , re i d ta l to s m n c so e s e c ua e ut mr , n o r g i p l eb y g e s r mus u i , nue n v i iiyot ea vri i g i b t t h detsn s l cm i n a p g. a
6 .
Dc ut i on s s
O e t a nr a ta e t r h n oml r d h a dc s d c ut . n ah i o n s s T o e s e i l ds l y , h s p ca i pa s r c sb ne, e h is t a a k a nr xi t , ht b a e pa e i th r tal r lcdn e e i soet s p ott es l o t r o u p r h ae f aaba d r n.
7 .
P i t oo -f n Pr hs uc ae ( O) PP
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ADVERTISING & SALES PROMOTION IN LBPL
Advertising and also promotion activities play a vital role in entire marketing efforts. Without these aspects a quality product can not survive in the market. Advertising and sales promotion tools are most essential for the modern global marketing. This chapter has therefore been devoted to the studies of advertising and sales promotional activities in Lumbini Beverage Pvt. Ltd. The two basic objectives for carrying out such various promotional activities by Lumbini Beverages Pvt. Ltd. is To generate more sales as well as to create and maintain an image of its product L.B.P.L. carries out its promotional activities as controlled and integrated programmers of communication and material design present its soft drink to the perspective customers. It also helps in communicating the need satisfying of soft drink to facilitate the sales eventually to contribute towards the profit in long run. The sales used L.B.P.L. for fulfilling the various purposes for its promotional activities are the following: Food N Fizz
67

Space Club Payaas bujyhao profit badhao Agreement GOD(Glass on deposit) Displaying equipments Scratch card, lucky draw & prize.
MERCHANDISING POLICY
In todays fast moving industry and highly competitive market, only those products are likely to be purchased which are capable of hitting the impulse of the consumers. The products appeal should be able to penetrate and get embedded into the perpetual space of the consumers mind. The concerned product should induce to the consumers. Pepsi believes that Jo Dikhta Hai Wahi Bikta Hai i.e. any product which is visible is bound to be sold.
METHODS OF MERCHANDISING
Visi cooler placement Glow signboard
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Paintings Crate Stacking Umbrella Banners Display Special Schemes
DISTRIBUTION CHANNEL OF L.B.P.L

To make its products available at the right place, at the right time in the market, at the right place, the sales department of the company plays major attention towards controlling the channel of distribution. The company right from its beginning stage maintains single type of marketing channel. The nature of channel is as follows: COMPANY DEPOT DISTRIBUTORS
69

RETAILERS CONSUMERS
ABOUT DISTRIBUTORS
At first, soft drink is supplied to distributors. Retailers cannot take the delivery directly from the company. They have to take it from their respective or nearest distributors. The distributors selected on the basis of assurance given by them regarding minimum sales, which they have to maintain annually. The selection is also done on the financial position and reputation of distribution in the market. As for example, first priority is given to those people who are in cigarette business. Depending upon market, each distributor in its initial stage, deposit some security money. This amount varies between five thousands to the thousand. The distributors, at first have to seek the permission of the sales department for the number of cases of soft required by them. After getting the proper authority from the sales department, they take the delivery from the shipping department paying the requisite either in cash or as demand draft.
70

The distributors can be dropped if they fail to achieve the required target to sales. They can be also dropped when they dont follow the instructions given by the company or when they charge high price or when they are engaged in black marketing, loading etc. But the company has not dropped any of its distributors till now. The supply of soft drinks to the distributors depends upon the ups and downs in the sales. But, in the initial stages, the distributors have to sell up to a minimum target set by the company or as decided by an agreement between the company and the distributors. In the last stages soft drink is supplied as and when demanded by the distributors. ABOUT RETAILERS The distributors select the retailers. There is no relation between the company and its retailers. On the other hand there are no definite and fixed criteria for the selection for appointment of retailers from the side of distributors. Any one like Panwala, Cigarette shop or any other shopkeeper can have the stall for the sale of soft drinks and they are called or
71

dealers. They have to give assurance to the concerning distributors for better sales and at the time of taking delivery they have to deposit the security that is the change for the empty bottles with specified purchasing price. Generally, there is no compulsion on the part of distributors to provide the transportation facilities to their retailers, but the distributors of the big areas like Patna, Muzzaffarpur, Patna provides the transportation facilities to their respective retailers. The distributors and retailers are independent to sell as they want but are controlled to some extent by the company also, as they have to give some assurance regarding minimum sale. It happens so because they are given some incentives also. They are fully independent to gear up the market, as they want.
Chapter 5: Product Performance of Pepsi

5.0 Training product comparison 5.1 Product availability 5.2 Pricing of products 5.3 Pepsi Performance in comparison
72
Comparative Products
73

SL.No. 1. 2. 3. 4.
Major CSD Brands

Flavor Clola Clear Lim e Cloudy Lim e Orange PCI Pepsi 7 Up, Mountain Dew Mirinda-Lim e Mirinda CCI Coca-Cola, Thum Up s Sprite Lim ca Fanta
In above table, I have shown product target in the market. Both companies try to substitute each other product in the market. When a company dont fulfill the demand of market then other company substitute that product with own product. In the market many time seen that consumer demand a product according to his desire, but due to lack of supply he switch over of substitute product. So, companies always want with substitute product for enlarging his market share. Here, Thums Up and Coca-Cola is substitute for Pepsi, Sprit is substitute for 7 Up and Mountain Dew, Fanta is substitute for Mirinda & Limca is substitute for Miranda Lime.
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Products Availability of Pepsi
SL.No
Products 2000ml
200ml 250ml 300ml 330ml 500ml 600ml 1000ml
1200ml
Pepsi
2.
Pepsi diet
3.
Pepsi Gold
4. 5. 6. 7. 8. 9. 10.
Mirinda Mrinda Lime M. Sorbet 7 Up M. Dew Pepsi Can 7 Up Can 11.
Mirinda Can
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12. 13. 14. M. Dew Can Diet Can Slice 15. Aquafina 16. Tropicana 17. Everest Lehar
Pepsi Products Price list for Retailers

SL.No
Products 2000ml
200ml 250ml 300ml 330ml 500 ml 600ml 1000ml 1200ml
Pepsi
168 4 27
214
454
2. 3.
Pepsi diet Pepsi Gold
454
567
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4. Mirinda 4 09 5. 6. 7. Mrinda Lime M. Sorbet 7 Up 4 09 8. M. Dew 4 09 9. 10. 11. Pepsi Can 7 Up Can Mirinda Can 330 330 564 564 564 564 168 454 168 168 214 454 567 168 214 454
12. M. Dew Can 13. Pepsidiet Can 14. Slice 500 15. Aquafina
564
214
498
454
100
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16. Tropicana 17. Everest Lehar 327 4 64 108 264 4 68 7 44
Pepsi Products Price list for Customers

SL.No
Products 2000ml
200ml 250ml 300ml
330ml
500 ml
600ml
1000m
1200ml
Pepsi 48
10
20
2.
Pepsi diet
20
3. Pepsi Gold 4. Mirinda 48 5. Mrinda Lime
25
10
20
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6. M. Sorbet 7. 7 Up 8. M. Dew 48 9. Pepsi Can 10. 7 Up Can 11. Mirinda Can 12. M. Dew Can 13. Pepsidiet Can 14. Slice 20 10 22 45 25 25 25 15 25 15 25 8 48 8 20 10 20 25
79

15. Aquafina 16. Tropicana 70 17. Everest Lehar 5 12 15 22 8 13
Coca-Cola Products Price list for Customers

SL.No
Products 1500ml
200ml 250ml 300ml
330ml
600ml 1000ml
1200ml
1.
Coca-Cola 43
10
20
2.
Thums up 43
10
20
3.
Sprite 43
10
20
4.
Fanta 43
10
20
80

5. Limca 43 6. Maaza 7. 8. Coca-Cola Can Thums Up Can 9. 10. 11. 12. 13. 14. Sprite Can Fanta Can Coke Diet Kinely Soda Kinely Fruit Jucie 5 20 20 25 12 15 20 20 10 25 45 7 10 20
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SL.No. 2008 % 1. 2. 3. 4. Months 2007 arget % 85.71 76.47 68.57 98.53 85,000 1,00,000 1,25,000 1,05,000 Achieved 73,000 88,000 1,06,250 75,000 85.88 85 85 76
Target arch pril May June otal
Achieved 70,000 85,000 1,05,000 68,000 32,800 0 60,000 65,000 72,000 67,000 26,400 0
1 2 1 0 6 0 4 0 2 0 0
0 0
6 0 4 0 8 5 6 5 4 5
1 0
5 7 2 6 8 5 5
8 0 7 0
6 7
6 7
J a
e b M o
r c h
p r il
n t h s
T a r g e t 2 0 0 6 A 2 0 0 7 A
( 0 0 0 ) c h i e v e c h i e v e
After comparing these two year data I have reached this calculation that this year Pepsi team of Patna have preformed very well in
82

compared to last year. This In Patna Pepsi investment is very short in comparing to coke but selling graph show Pepsi Market share increased in compare to last year.
CHAPTER 6: DATA ANALYSIS AND INTERPRETATION 6.0 Interpretation of outlets 6.1 Market share 6.2 Market share of different soft drinks 6.3 Market share of equipments 6.5 Percentage share of glow sign board 6.6 Percentage of satisfied distributors
83
INTERPRETATION OF OUTLETS TPYES OF OUTLETS

1 0 O t h e r
o n
b o o
t h s /
n e
r a l /
i r a
n a
8 I c e - c r e a m I c e - c e n t e r s 7 7 c o l d d r i n c e n t r e C in 5 4 e m H R o a t e k s H l a
ll
2 e s t a u r a 3 n P t s a n s h o p
s w
e e t
s h o p
Interpretation : Many types of retailers in the market to sell the pepsi & Coke products I have taken that list form company &
84

classified that shops according to company guidelines. General & Kirana stores are measure thing for company because their share in one - third So company always try to make good relationship ship with them because 20% sell come form them.
MARKET SHARE Over all market share of the cold drinks cos. in Patna
85

S .N. L o 1 . 2 . 3 . 4 . 5 . C m a ies N m o pn a e P I C C I C P rl a ro ae g Au ml O e L c l Pa e th r o a l y r's T ta (% o l ) T ta (% o l ) 2 6 3 8 8 8 2 0 10 0
PI C CI C Pre go al a r Au m l Oe t r h
Interpretation: PCI market share is little bit short in comparing to Coke for enlarging more market share PCI will have to invest more in the market and it advertisement.
86

Over all market share of PCI & CCI in Patna
2 0 1 5 1 0 5 % 0 %
% % %
1 0
1 5 % %
1 7 1 3 %
% 1 1 4 % % % 9 % 1 2 8 % %
P C
C C
o la
C l e a r C l o u d Oy L i m e L i m e
r a
n g
n g o
Interpretation :- On the basis of my collected data in Patna cold drink market I have reached this stage that I can show overall market share of all cold drink flavor.
MARKET SHARE OF DEFFERENT SOFT DRINKS

The Cola Market: Product Pepsi - Cola Coca-Cola
87
% Share 42 % 13 %

Thumps Up Total Market Share (%) 45 % 100 %
P p i Cl e s- o a Cc - o o aCl a Tu p U h ms p
Interpretation: There is dominancy of Thums Up in the cola segment of soft drinks in the market. Pepsi is its competitor. The orange flavored soft drinks: Product Mirinda Fanta Other Total % Share 52 % 38 % 10 % 100 %
88
Diff. orange flavor market share
M d irin a F ta an O er th
Interpretation: The Graph shows that there is a majority of customers of Mirinda Orange flavor in the market. It dominates the market over Coca-Colas product Fanta. Clear Lime Market share : Product % Share
89

7 up Sprite Total 45 % 55 % 100 %
Market Share of clear lime
Dabur Real Tropicana Godrej Others
90

Interpretation : There is great dominancy of Sprite in the market. Customers always demand. They take 7 Up only as a substitute of that. Mango flavor market share : Product Slice Maaza Frooti Total % Share 30 % 40 % 30 % 100 %
Market Share of Mango flavor
91
PCI CCI Slice 3
Interpretation : The Graph shows that there is a majority of customers of Maaza (mango) flavored in the market. It dominates the market over Pepsis product Slice. Market share of Juice Product Dabur Real Tropicana Godrej Other Total
92
% (Share) 62 % 20 % 8% 10 % 100%
Market share of Juice
Dabur Real Tropicana Godrej Others
Interpretation : The Graph shows that there is a majority of customers of Dabur real Juice in the market. It dominates the market over Pepsis product Tropicana.
PERCENTAGE SHARE OF CHILLING EQUIPMENTS : Percentage Share of VISI Coolers :

93

Company PCI CCI Own Total No. 26 1450 150 1626 (%) 1.60 89.17 9.23 % 100 %
Market Share of Visi Cooler
. 2
. 1
I 1
. 6 0
. 0 0 2 % . 0 40 0 % . 0 60 0 % . 0 80 0 % . 0 1 0 0 %0 . 0 0 0
Interpretation : From the above diagram, it is clear that 89 % of Vist cooler is of Coca-Cola while 1.6% is that of Pepsi and own is 9.23 %.
94

PERCENTAGE OF GLOW- SIGN BOARD Company PCI CCI Total % of Glow board No. 50 250 300 % 17 % 83 % 100 %
PCI CCI
95

Interpretation : From the above diagram it is clear that 17 % of glow sign board is of Pepsi while 83 % is that of Coca-Cola. PERCENTAGE SHARE OF SATISFIED DISTRIBUTORS : Company (%) PCI CCI Total 100% 06 10 16 04 09 13 31 69 No. of distributor Satisfied
Distributors Satisfication (%)
96
PCI CCI
Interpretation :- During my training and research I have found Pepsi distributors are not satisfied like Coke distributors. During my four months research two distributors had quit to company due to some mis-understanding.
Chapter 7: Market survey 7.0 Research methodology 7.1 Dealer survey 7.2 Limitations of the research
97
RESEARCH METHODOLOGY: All the findings and conclusion obtained on the survey done in the working area. With the limit, I tried my best to select the sample representative of the whole group. During my job training I maintained different routes during my dealer survey. I have collected data from the Depot of Patna under the organization itself. Data-sources
98

Retailers/Dealers (Cold drinks stalls, Ice stalls, Hotels, Restaurants Sweet shop, Pan Shop, General Stores, Telephone Booths etc.) Depot internal Companys Records etc. Research - approaches Survey
Research - instrument:
Interview Schedule Sampling - plan : Sampling unit Sampling size Sampling procedure : Census survey Contact method Personal interview Secondary Data Collection : The secondary data was collected on the basis of organizational files, official bulletins and records, official journals, published data in the annual general report and through various preserved Distributor 02 Retailer 250
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information in the data base at the Pepsi sites e.g. www.pepsico.com, www.pepsizone.com etc.
Primary Data Collection:

All the dealers/ retailers were personally visited and interviewed. There was a format for collecting the details of the dealers. The format was filled by taking the information from the dealer of by monitoring the shops.
DEALER-SURVEY
Dealer-survey, as the word indicates, is the survey of every dealer of soft drinks in the area. For our practical purpose, the dealer not only includes the authorized dealers, but it also includes all the retailers-big or small grocery shops, stationery, restaurants, beetles shop etc., besides these, the various exclusive stalls and sales of pantry cars are also included in it. In a nutshell, by dealer survey, I mean who is dealing with the soft drink in someway or the other in large or small quantity directly or indirectly. Thus, my study includes all such dealers, which includes following aspects:
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No of routes covered by Depot Crate strength Per day sale Chilling ad Advertising Nature of outlet Schemes of Pay-off I had to visit each and every outlet and personally interview them. In order to know the market share of Pepsi and its competitors, I have conducted a survey ap Patna and its surroundings area. By the help of survey, I can find out the reason behind non-availability of Pepsi in the specified area. The knowledge of case-stock indicates our case-in-trade and that of competitors. This will indicate our case-velocity, which will help to plan our bottle as whether our distribution is effective or not. If my case-stock is low then I may decide for a case stocking campaign. Feedback from market place regarding servicing of dealers will help us to improve our service in the lacked areas.
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Therefore, appropriate marketing strategy can be worked out depending upon the findings. Some more uses of DealerSurvey:
Depot-effectiveness
The Survey can improve the distribution network in these ways: Immediate activation of non-buyers Improve the dealer coverage Increase the realignment of routes Better control through route card They should visit the counter on the daily basis including the remote places. Salesman should visit the counter on likely basis. Market knowledge: Dealer-Survey gives the total profit of the market by following: Location of dealers The type of dealer No of dealers who keep Pepsi, Coca-Cola and comparing the stock,
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The marketing inputs with respect to Advertising VISI Cooler Servicing
Training group for future executives: Good investigators from these surveys can be recruited to take up future jobs. These people will be ideally suitable, as they would know the market thoroughly.
LIMITATIONS OF THE RESEARCH

It was not possible to thoroughly understand the different marketing aspects of soft drinks in a span of two months. The survey was conducted in the peak season when the sale was too high, by this I cannot get the appropriate result. Money- as no stipend was given; it was difficult to cover a wide area.
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All the work was limited in Patna area, so the findings should not be generalized. The finding of survey will be strictly based on the response of consumers, retailers/dealers, since it is difficult to ascertain the authenticity of their statement.
Chapter 8: Conclusion & Suggestion

Conclusion Suggestion
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CONCLUSION
(1) The whole analysis shows that are only two companies dominating in the soft drinks market - Pepsi- Cola & Coca Cola. There is neck-to-neck competition between these two companies. (2) Coke has invested more in the market. Distribution of - VISI Coolers and display of Glow Signs board is far more than
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Pepsi. So, more investment is needed to break the brand establishment of Thums Up and Sprite. (3) (4) (5) (6) (7) In all the areas in Patna, almost all the retailers are not satisfied with the distribution network of the Pepsi products. Most of the retailers want glow signboard chilling equipments, which they are asking from long time. In Cola segment, Thums-up and in lime segment, Sprite is the main competitor of Pepsi. Most of the consumers dont like the taste of Pepsi due to its sweetness and low fizz. All the products of Pepsi like 7 up & Slice are not provided when the retailers demand it.
SUGGESTIONS (1) Pepsi should come out with an advertisement, which can block the customers mind and can change the customers perception about the product.
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(2) Pepsi is sweet and low fizz soft drink that everybody knows, so lots of people do not like, therefore to catch the customers, Pepsi should come with more fizz like Thums-up. (3) (4) (5) Executives should take the feedback from the service of the salesman and the distributors. Salesman should have better interaction with the retailers which results in by company from time to time. The criteria to provide Glow Signboard, Flax board, VISI Cooler, and OYC should be changed and a separate department should handle this. (6) All the Pepsi products should be provided at required level to snatch the competitors market e.g. 7 up for Sprite, Mirinda for Fanta and Slice for Mazza which is dominating the market at present.
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ANNEXURE
Glossary of Terms Questionnaire Bibliography
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GLOSSARY OF THE TERMS
FOBO COBO FMCG MNCs MMM GOD RBG - Franchise Owned Bottling Operation. - Company Owned Bottling Operation. - Fast Moving Consumer Goods. - Multinational Companies - Master of Marketing Management. - Glass on deposit - Return on bottle glass.
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QUESTIONNAIRE
Name of the outlet: ......................................................................................... .. Address: .............................................................................................. .............. 1. Q. Which brand of soft drinks you deal in? (a) Pepsi-Cola (c) Both (a) Pepsi-Cola (c) Both 3. Q. How many crates of Pepsi-Cola & Coca-Cola you sell/day? (a) 0-1 crates (c) 2-3 crates (a) Pepsi
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(b) Coca-Cola (d) Other (b) Coca-Cola
2. Q. Which brand of cola provides you better facility?
(b) 1-2 crates (d) 3 & above (b) Coca-Cola
4. Q. Which companys signage you have in your outlet?

(c) Both (a) Flex-Board (c) Glow Sign Board 6. Q. your outlet? (a) Pepsi-Cola (c) Both sales advertisement? (a) Television (c) Display (b) Magazines/Newspapers (d) Wall paintings/Hoardings (b) Coca-Cola (d) Own (d) No signage (b) Dealer Board (d) Both 5. Q. Which type of Signage in your outlet?
Which companys Visi - cooler & Oye you have in
7. Q. In your opinion which medium is more effective for the
8. Q. Do you think aggressive advertising further help you it increase the sales volume of Cola? (a) Yes (a) Free bottle scheme (c) Discount Crates your locality?
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(b) No (b) Prize (d) Other ............
9. Q. What kind of promotional activities do you like most?
10. Q. Your recommendation for further sales improvement in

..................................................................................................... ..... 11. Q. Give me two suggestions for betterment of PepsiCola? (a).................................................................................... (b).................................................................................... Thanking you
BIBLIOGRAPHY:
Prof. A.K. Basu (Faculty Guide)
Mr. Arun Kr. Singh (TDM) Mr. Binay Kr. (DEPT TDM) Mr. Banwari Shukala (CE) Marketing management (Phillip Kotler) Marketing Management (DEP. APP. ECO. & COM) Research Methodology (C.R. Kothari) Research Methodology (A.K. Singh)
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COM) Business Research Methodology (DEP. APP. ECO. &
WEBSITES:

www.pepsico.com www.pepsizone.com www.cocacola.com www.amul.com www.parle.com www.fao.com
www.notjustsurveys.com
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MARKET RESEARCH, SALES PROMOTION, ADVERTISEMENT & COMPETITOR ACTIVITY IN PATNA WITH REFRENCE TO

LUMBINI BEVERAGES PVT. LTD.

UNDER THE GUIDENCE OF: BY:

[LUMBINI BEVERAGE PVT. LTD]

LUMBINI BEVERAGES PVT.LTD

[LUMBINI BEVERAGE PVT. LTD]

(Arun Kr. Singh) Trading Development Manager

[LUMBINI BEVERAGE PVT. LTD]

[LUMBINI BEVERAGE PVT. LTD]

[LUMBINI BEVERAGE PVT. LTD]

[LUMBINI BEVERAGE PVT. LTD]

[LUMBINI BEVERAGE PVT. LTD]

Chapter 1: Introduction to the Study

[LUMBINI BEVERAGE PVT. LTD]

Chapter 2: Industry Profile

Chapter 3: Introduction of the organization

Chapter 4: Marketing Strategy & Distribution Channel

[LUMBINI BEVERAGE PVT. LTD]

Chapter 5: Product Performance of Pepsi

Chapter 6: Data Analysis and Interpretation

Chapter 7: Market survey

[LUMBINI BEVERAGE PVT. LTD]

Chapter 8: Conclusions and Suggestions

Introduction Purpose of the Study Importance and Research objective

[LUMBINI BEVERAGE PVT. LTD]

[LUMBINI BEVERAGE PVT. LTD]

[LUMBINI BEVERAGE PVT. LTD]

[LUMBINI BEVERAGE PVT. LTD]

[LUMBINI BEVERAGE PVT. LTD]

To find out the various competitors of Pepsi & their strategy.

To find out promotional activities of Pepsi & its competitors.

IMPORTACE OF THE STUDY

[LUMBINI BEVERAGE PVT. LTD]

RESEARCH AND OBJECTIVES

To study the marketing and promotional activities at various retail outlets.

[LUMBINI BEVERAGE PVT. LTD]

OTHER SCOPE OF THIS TOPIC MAY BE AS FOLLOW:

[LUMBINI BEVERAGE PVT. LTD]

METHODOLOGY OF THE RESEARCH

[LUMBINI BEVERAGE PVT. LTD]

LIMITATION OF THE STUDY

[LUMBINI BEVERAGE PVT. LTD]

[LUMBINI BEVERAGE PVT. LTD]

Building for the future

[LUMBINI BEVERAGE PVT. LTD]

[LUMBINI BEVERAGE PVT. LTD]

[LUMBINI BEVERAGE PVT. LTD]

PBG AND PEPSICO

[LUMBINI BEVERAGE PVT. LTD]

MISSION AND VISION OF PEPSICO

[LUMBINI BEVERAGE PVT. LTD]

History of Soft drinks in India

[LUMBINI BEVERAGE PVT. LTD]

[LUMBINI BEVERAGE PVT. LTD]

Disclosure of the chemical composition of the essence

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[LUMBINI BEVERAGE PVT. LTD]

[LUMBINI BEVERAGE PVT. LTD]

[LUMBINI BEVERAGE PVT. LTD]

Some special features in Indian scenario

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[LUMBINI BEVERAGE PVT. LTD]