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Summer Training Report

On

Enhancing and Improving Distribution Channel to


Promote sales
At

SMV BEVERAGES

(Jamshedpur) SUBMITTED BY:

Saharul Islam Mazumder


Summer Trainee (1st june 31st july) PIMT,PUNJAB

BATCH:2010-2012
UNIV. ROLL NO.104982249548

MR.S.CHAKRABORTY (TDM JSR) UNDER THE GUIDANCE OF ASHWINI KUMAR SHARMA

HR. MANAGER MRS.MUKTI RANI SMV BEVARAGES,JSR

PUNJAB INSTITUTE OF MANAGEMENT & TECHNOLOGY MANDI GOBINDGARH (PUNJAB)

PROJECT REPORT
ON
DISTRIBUTION AND PROMOTIONAL STRATEGY OF S.M.V. BEVERAGES (FRANCHISEE OF PEPSICO INDIA LIMITED)

A REPORT SUBMITTED IN FULLFILMENT OF THE REQUIREMENTS FOR MASTER IN BUSINESS ADMINISTRATION

COMPANY GUIDE- MR.ASHWINI KUMAR SHARMA INSTITUTE GUIDE- MRS. RAJANI SHARMA

SUBMITTED BY:SAHARUL ISLAM MAZUMDER PUNJAB INSTITUTE OF MANAGEMENT & TECHNOLOGY MANDI GOBINDGARH (PUNJAB)

CONTENTS
PREFACE _______________________________________________________04 ACKNOWLEDGEMENT___________________________________________05 INTRODUCTION_________________________________________________06 Introduction to the study__________________________________ ____07 Executive summary______________________________________ ____12 Objective of the study_______________________________________ _12 Importance of the study_____________________________________ _12 Methodology______________________________________________ _13 Research instrument_______________________________________ _14 Sample size______________________________________________ _ _14 Field work/data collection__________________________________ _15 Limitations of the study____________________________________ _15 AN OVERVIEW OF THE SOFT DRINK INDUSTRY________________16 Soft drink industry in India____________________________ ____16 Pepsi The Indian experience______________________________19 Introduction to the soft drinks market in Jamshedpur___________23 COMPANY PROFILE OF SMV BEVERAGES______________________23 Structure of the organization_________________________ ______25 Production process__________________________________ _____29 MARKETING ACTIVITIES_____________________________________31 Introduction____________________________________________31 Promotional activities____________________________________33 Merchandising activities__________________________________34 Advertising_____________________________________________36 DISTRIBUTION CHANNELS__________________________________41 Theoretical aspect of distribution channels_______________ ___41 Distribution channel of SMV Beverages_____________________44 MARKET SURVEY___________________________________________46 Theoretical aspects______________________________________47 Market share___________________________________________47 Findings from dealer survey_______________________________48 Analysis of the retailer questionnaire_______________________51 Consumer survey_______________________________________53 Analysis of the consumer questionnaire_____________________53 RECOMMENDATIONS_______________________________________56 Recommendations for the distribution channel_______________57 Recommendations for the retailers_________________________59 Recommendations for the customers________________________61 STATISTICAL REPRESENTATIONS___________________________58

Statistical representations of the dealer survey________________58 Statistical representations of the dealer survey 59 Statistical representations of the consumer survey_____________61 BIBLIOGRAPHY_____________________________________________71

PREFACE
Practical training is considered to be an essential part of all the professional institutions and those who are aspiring for master of Business Administration, on job training assumes even more significances. As an aspect of management education which is receiving increased attention from institutes as well as from recruiters on job training is imparted to the students to acclimatize the student with the actual environment of business management. It is also a widely accepted theory that this aspect of management education widens ones thinking about the different concepts of management philosophy, difference between different concepts and ground realities. This project has been done in the field of marketing. This project work has been done under the supervision of S.M.V Beverages Pvt. Ltd. which is the franchise owned bottling plant of PepsiCo India limited. The bottling plant is located at Adityapur industrial area (AIDA), Adityapur. I have done my training in Jamshedpur under the guidance of the executives of S.M.V Beverages Pvt. Ltd. The report gives a true picture of the practical activities done by me with in the jurisdiction of the area assigned to me.

The study area was restricted to Mango main road, a part of Jamshedpur. Hence the results of the study are applicable to Mango main road in particular and Jamshedpur in general.

ACKOWLEDGEMENT
Before I get into the thick of the things I would like to add a few heartfelt words for the people who were part of this project in numerous ways.people who gave unending support right from the stage the project was started, appreciated and encouraged when being depressed. In this context I would like to express my gratitude towards my parents and family members who have constantly supported and played a pivotal role in shaping my career. I take this opportunity to express my gratitude to Prof. S.K Sharan (Director), Mr. S. chakrabaorty(T.D.M) and Mrs.Mukti Rani (Training Manager,HR) of S.M.V. Beverages who have given me the opportunity to do the project in their esteemed organization. I would also like to thank Mr. S.S Shukla (A.D.C.) of SMV Beverages without whose support this project couldnt have been in the form in which it is now. I owe more than what I can mention.mostly for teaching me to see the silver lining in every dark cloud. I also owe my regards to Mr. Ashwani kumar sharma (CE), Mr.Arvind Tiwary and Mr. Bobby (Distributor) for their co-operation in the successful completion of the project. This has been one long project and naturally many people get associated with it. Any bouquet for the merit in this book should go to their door. I would like to thank the staffs and officials of SMV Beverages for their co-operation in providing us with all the information, which were required by us. I owe my sincere gratitude towards my faculty guide MS.Namita Sharma and Dr.A.S Joshi (Director) of PIMT for extending the support towards the completion of the project. 5

And finally I would like to thank my friends for their unending support.

INTRODUCTION
INTRODUCTION TO THE STUDY EXECUTIVE SUMMARY o OBJECTIVE TO THE STUDY o IMPORTANCE OF THE STUDY o METHODOLOGY o FINDINGS o RECOMMENDATIONS o CONCLUSION o LIMITATIONS

INTODUCTION TO THE STUDY


Marketing deals with identifying and meeting human and social needs. One of the shortest definitions of marketing is meeting needs profitably. Marketing is tricky, however, and it has been the Achilles heel of many formerly prosperous companies. But making the right decisions is not always easy. Good marketing is no accident, but a result of careful planning and execution. The soft drink industry is no exception and is one of the most intensely fought industry with the two major competitors PepsiCo and Coca-cola. This industry can be characterized by words like price wars, effective distribution strategies, market share, sales promotion strategies etc. My field of study will delve upon the following aspects viz. effective distribution strategy, market share and sales promotion strategy. The main purpose of trade is to supply goods to the consumers living in far off places. As goods and services move from producer to consumer they may have to pass through various individuals. Let us take an example. A farmer in Srinagar has an apple orchard. Once the apples are ripened he sells the apples to an agent of Delhi. The agent collects the apples from Srinagar, packs them, and sells them to a wholesaler at New Delhi sabzimandi. The wholesaler then distributes them to various retail fruit vendors throughout Delhi by selling smaller quantities. Finally, we purchase apples from those vendors as per our requirement. Thus, we find that while coming from the producer at Srinagar, the product reaches the consumers by passing through several hands like an agent, a wholesaler and a retailer. All these three are called middlemen. These middlemen are connecting links between producers of goods, on one side and consumers, on the other. They perform several functions such as buying, selling, storage, etc. These middlemen constitute the channels of distribution of goods. Thus, a channel of distribution is the route or path along which goods move from producers to ultimate consumers. 7

The route taken by goods as they move from producer to consumer is known as Channel of Distribution.

From the above diagram it can be found that there is just one direct channel i.e. from producer to the consumer. There are many indirect channels like:

The route normally used by FMCG companies especially by the soft drink companies is the second one i.e. (ii). In this case the wholesaler is usually called distributor.

If the producer is producing goods on a large scale, it may not be possible for him to sell goods directly to consumers. As such, he sells goods through middlemen. These middlemen may be wholesalers or retailers. A wholesaler is a person who buys goods in large quantities from producers; where as a retailer is one who buys goods from wholesalers and producers and sells to ultimate consumers as per their requirement. the involvement of various middlemen in the process of distribution constitute the indirect channel of distribution. Let us look into some of the important indirect channels of distribution.

DISTRIBUTOR
Distributors are one of the important middlemen in the channel of distribution who deals with the goods in bulk quantity. They buy goods in bulk from the producers and sell them in relatively smaller quantities to the retailers. In some cases they also sell goods directly to the consumers if the quantity to be purchased is more. They usually deal with a limited variety of items and also in a specific line of product, like iron and steel, textiles, paper, electrical appliances, etc. Let us know about the characteristics of distributors.

CHARACTERISTICS OF DISTRIBUTORS
The followings are the characteristics of distributors: (i) Distributors buy goods directly from producers or manufacturers. (ii) Distributors buy goods in large quantities and sells in relatively smaller quantities. (iii) They sell different varieties of a particular line of product. For example, a distributor who deals with soft drinks is expected to keep all varieties of soft drinks viz. 200ml, 300ml, 500ml, pet bottles, mineral water, soda etc. (iv) They may employ a number of agents or workers for distribution of products. (v) Distributors need large amount of capital to be invested in his business. (vi) They generally provide credit facility to retailers. (vii) He also provides financial assistance to the producers or manufacturers.

FUNCTIONS OF DISTRIBUTORS
Let us now know what the functions of distributors are. (a) Collection of goods: A distributor collects goods from manufacturers or producers in large quantities. (b) Storage of goods: A distributor collects the goods and stores them safely in warehouses, till they are sold out. Perishable goods like fruits, vegetables, etc. are stored in cold storage. (c) Distribution: A distributor sells goods to different retailers. In this way, he also performs the function of distribution. (d) Financing: The distributor provides financial support to producers and manufacturers by sending money in advance to them. He also sells goods to the retailer on credit. Thus, at both ends the distributor acts as a financier. (e) Risk taking: The distributor buys finished goods from the producer and keeps them in the warehouses till they are sold. Therefore, he assumes the risks arising out of changes in demand, rise in price, spoilage or destruction of goods.

CHARACTERISTICS OF RETAILERS
The following are the characteristics of retailers: (i) Retailers have a direct contact with consumers. They know the requirements of the Consumers and keeps goods accordingly in their shops. (ii) Retailers sell goods not for resale, but for ultimate use by consumers. For example, we buy fruits, clothes, pen, pencil etc. for your use, not for sale. (iii) Retailers buy and sell goods in small quantities. So customers can fulfill their requirement without storing much for the future. (iv) Retailers require less capital to start and run the business as compared to wholesalers.

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(v) Retailers generally deal with different varieties of products and they give a wide choice to the consumers to buy the goods.

FUNCTIONS OF RETAILERS
All retailers deal with the customers of varying tastes and temperaments. Therefore, they should be active and efficient in order to satisfy their customers and also to induce them to buy more. Let us see what the retailers do in distribution of goods. (i) Buying and Assembling of goods: Retailers buy and assemble varieties of goods from different wholesalers and manufacturers. They keep goods of those brands and variety which are liked by the customers and the quantity in which these are in demand. (ii) Storage of goods: To ensure ready supply of goods to the customer retailers keep their goods in stores. Goods can be taken out of these stores and sold to the customers as and when required. This saves consumers from botheration of buying goods in bulk and storing them. (iii) Credit facility: Although retailers mostly sell goods for cash, they also supply goods on credit to their regular customers. Credit facility is also provided to those customers who buy goods in large quantity. (iv) Personal services: Retailers render personal services to the customers by providing expert advice regarding quality, features and usefulness of the items. They give suggestions considering the likes and dislikes of the customers. They also provide free home delivery service to customers. Thus, they create place utility by making the goods available when they are demanded. (v) Risk bearing: The retailer has to bear many risks, such as risk of: (a) fire or theft of goods (b) deterioration in the quality of goods as long as they are not sold out. (c) change in fashion and taste of consumers.

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EXECUTIVE SUMMARY
OBJECTIVE OF THE STUDY
To know the distribution strategy adapted by the organization To find out the market share of Pepsi with respect to coca-cola To know the percentage share of Pepsis cooling equipments To know how many outlets are covered with glow sign and dashboards of Pepsi To know how many outlets have paintings of Pepsi To find out the most favored flavors among the retailers To find out the most preferred the mineral water among the retailers To find out the most preferred soft drink among the consumers of Jamshedpur To find out the most preferred soft drink among the consumers of Jamshedpur To find out the most preferred drink among the consumers

IMPORTANCE OF THE STUDY


Training in an organization is very important for a student who is studying a professional course like MBA. Decision making cant be learnt in the confines of the four walls of the class and as such practical on field training is quite important to learn the art of decision making. There is no certain formula for any particular problem, but the aim of this study is to develop the ability of decision making. A right decision at the right time itself helps an organization to run smoothly. This training in an organization gives an idea of how decisions are taken tactfully based on available facts when any problem comes to an executive. So the way of

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problem solving, right decision making and knowledge of the different type of marketing activities gives much importance to the study. Though two months is not a very long time to develop these skills fully but an overall idea can be developed if this study is done sincerely.

METHODOLOGY
To find out the market share of Pepsi in the Baradwari (Kasidih) market of Jamshedpur I have undertaken exploratory research as the method of collecting data from the retailers. I have also undertaken survey research as the method of collection of primary data for the purpose of finding out the percentage of glow sign, dash board and paintings share of Pepsi out of the total number of outlets in the Baradwari (Kasidih) area. For this purpose a survey form was prepared according to the specifications of the company and the data was collected accordingly from the retailers. A sample of the survey form is attached at the end of this report. To find out the preference for the most effective type of promotional strategy, flavors, mineral water and scheme favored by the retailers as well as by the consumer a questionnaire was prepared by me which after being approved by the company was filled up by the retailers as well as by the consumers. The data so collected was analyzed and interpreted accordingly. Separate questionnaires were prepared for the retailers as well as for the consumers. A sample questionnaire for the retailers and the consumers is attached at the end of the report.

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RESEARCH INSTRUMENT
The research instrument that I have used selected to collect primary data was through questionnaire, one for the retailers and another for the consumers. I have mostly chosen closed ended questions based on ranking to be filled by the retailers and the consumers. The questionnaire was kept simple for the convenience of both.

SAMPLE SIZE
For the retailers the sample size was 50. While choosing the shops I took into consideration various factors like daily sales, its location and type of the shop. For consumers also the sample was kept at 50. But this sample size of 50 was further divided in sub-categories. The sub-categories are as follows: The sample of 50 was divided into 3 categories The first category was made up of consumers in the age group of 15-24 years and the sample size was taken as 30. I had taken 15 boys and 15 girls so that preference for different genders can be found out. The next category consisted of consumers in the age group of 25-40 and the sample size was taken as 10. Out of these I have chosen 5 men and 5 women as my sample. The last category consisted of consumers in the age group of 41 and above and the sample size was taken as 10. there were no further subcategories in this section.

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FIELD WORK/ DATA COLLECTION


I did my data collection in the area assigned to me i.e. Baradwari (Kasidih), Jamshedpur. For filling up the questionnaires on the retailers I choose 70 outlets after taking into account various aspects like sales, attitude towards the company, area where it is located etc. Also I choose the outlets in such a way that it more or less covered the whole area. For collecting data on consumers I went to different soft drink outlets and also to a few houses. I went out to collect the data in the evening because at that time of the day most of the target consumers freaks out and it is easy to get a good response from them.

LIMITATIONS OF THE STUDY


I faced a few difficulties while doing my research like Attitude - The behavior of the shop owners towards us initially was not good. I had to overcome their inhibition towards me and win their confidence before getting a favorable response from them. Language barrier - English was a major problem for the retailers as well as the consumers and I had to explain to them each question what it meant how to fill up the questionnaire. Sample size The sample size chosen was small keeping in consideration many factors and also area was restricted to Baradwari (Kasidih) and not whole of Jamshedpur.

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AN OVERVIEW OF THE SOFT DRINK INDUSTRY IN INDIA


SOFT DRINK INDUSTRY IN INDIA SOFT DRINK INDUSTRY IN JAMSHEDPUR PEPSI- THE INDIAN EXPERIENCE

SOFT DRINK INDUSTRY IN INDIA


What is a soft drink? A soft drink is a non-alcoholic beverage which is artificially flavored and contains no fruit or pulp. India with a population of more than 1.2 billion is potentially one of the largest consumer markets in the world after china. The consumer market is popularly known as the FMCG market or the fast moving consumer goods market. Soft drinks come under this category. Soft drink is basically purchased in India basically for two reasons namely to quench thirst and for refreshment. The Indian economy currently is passing through a bullish phase with increasing per capita income. Subsequently the lifestyle of the Indian consumer is also changing with increased spending on

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entertainment, refreshment etc. that is why soft drink companies are looking forward to India with great enthusiasm in the future to increase their revenue. The soft drink industry in India dates back to the 1940s when Parle introduced the first branded soft drink called gold spot. Cola giant coca-cola was the first foreign soft drink company to setup its shop in India in 1965. Coca-cola made a very good beginning and dominated the market right from the word go. It faced no competition at that time. The marketing people did not even need to publicize coca-cola. This extraordinary success of coca-cola can be attributed to the following factors: Absence of contemporary competitive brand. The giant image of coca-cola in the western countries preceded their entry into the Indian market, and Indians at that time were very fond of foreign goods Parle Exports Pvt. Ltd later introduced a lemon flavored soft drink called Limca in 1970. Before this they had introduced a cola flavored drink called Pepping which they had to withdrew in the face of stiff competition from coca-cola. But the overtly conservative Indian government of that time with special interest in safe guarding the interest of the Indian companies started insisting that coca-cola should agree on the following points in order to continue in India. Coca-cola decided to windup its operations in 1977 rather than bowing to the Indian government. The main demands of the Indian government were: Dilution of equity, as the government felt that lots of foreign currency was being wasted. Manufacturing of the secret concentrate in India. Disclosure of the chemical composition of the concentrate. The exit of coca-cola left a large vacuum in the soft drink market. But this also accelerated the growth of several Indian soft drinks. Many new soft drinks like frooty, 17

jump-in etc were launched in the form of tetra pack. However the bottling plants and the distribution networks of these companies were not up to the mark and left much to be desired. It took these companies almost one year to come up with new flavors like Campa cola, Rush etc. to survive in the industry. However Parley, the pioneer in the soft drinks market blazed its way to national prominence with their product Thumps Up bearing the slogan happy days are here again which became a craze. This particular slogan helped to win over the loyalists of coca-cola who were in a state of cola shock or cola depression! Soon the soft drink industry started registering phenomenal growth rates and all parley products namely Gold Spot, Limca and Thumps Up became the brand leaders in their own segments. In spite of this the soft drink market had a huge untapped potential. 1990 saw the coming of the multinational brand Pepsi and immediately started giving stiff competition to Parley and Coke. The parent company of Pepsi was founded in 1890 at North Carolina in USA. Its CEO is Roger Enrico. PepsiCo India Holdings Pvt. Ltd. in headquartered in Gurgaon and its CEO is Mr. Rajiv Bakshi. In India it has 34 bottling plants of which 8 are company owned bottling outlets (COBO) and 26 are franchise owned bottling outlet (FOBO). SMV Beverages is a franchise owned bottling outlet. Coca-cola reentered the Indian market in 1993 in collaborations with Parley India Ltd. The product profile of both pepsi and coca-cola is as follows:PRODUCT PROFILE PEPSI CARBONATED SOFT DRINKS Pepsi 7up mirinda mountain due thumps Up coca-cola sprit fanta COCA-COLA

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slice

limca

PEPSI THE INDIAN EXPERIENCE


Pepsi in a short span of its operations in India has found a place in the hearts and minds of the Indian consumers. The success has primarily been due to the innovative and passionate people associated with Pepsi over the years. Pepsi started its operations in India in 1989 and since then PepsiCo has set up a fully integrated operation in India viz. manufacturing, R&D, marketing, distribution and franchising covering fruit/vegetable processing, export, snack foods and beverages. In 1993 PepsiCo set up a holding company by the name of PepsiCo India holdings Pvt Ltd. fully committed to India. PepsiCo is fully committed to India and its national objective of development of technology, accelerating exports and employment. It has brought in more than $500 million in foreign exchange as well as technology which is used for its global network to develop value added services. PepsiCo has a turnover of more than $25billion half of which comes from beverages and the other half from its snacks and food division. The snacks and food division of PepsiCo has been named Frito Lays Inc.

BEVERAGES
Pepsi had set up a concentrate plant in 1989 at Chino district, Sangria, Punjab with an investment of $5million. This 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, Mountain dew, Mirinda (orange and lemon) and Slice flavors to all the Pepsi bottling

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plants in South Asia. PepsiCo has invested heavily in these plants for their up gradation and has also started 5 green field projects in the backward areas.

JUICES
PepsiCo has only one juice brand in the market, slice and plans to enter this market in a big way particularly with increased demand in this area.

EMPLOYMENT ACTIVITIES
Pepsi provides direct and indirect employment to thousands of workers in India. In addition it generates substantial employment opportunities in the units supplying raw materials, fountain cups, distribution vehicles etc.

DEVELOPING SPORTS
Pepsi is one of the major sponsors of cricket tournaments in India as well as other sports like football and hockey. In Mohali, Punjab, it has set up a Cricket academy to develop young budding cricketers.

CORPORATE SOCIAL RESPONSIBILITY


Most of the bottling plants of Pepsi are located in the backward areas thereby giving huge employment opportunities in these areas. Pepsi is a responsible company undertaking many social projects in and around the bottling plants. These include supports to the education centers, sponsoring inoculation camps, providing free health checkups, sanitation drives etc. Recent happenings: - Soft drinks emerged strongly than ever from the pesticides contamination controversy in the late 2003, and the early monsoons in the mid-2004 in many regions of India, that at one point threatened to derail growth in 2004. responding

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to a series of initiatives throughout 2004, such as reducing pack sizes, introducing new flavours, increasing points of sale, positioning on the current health boom and taking advantage of changing consumer preferences (especially of the teenagers) the total volume of the soft drinks sold in 2004 exceeded four billion liters, registering a robust growth rate of 16%. This can be largely attributed to the small pack sizes and the intensification of rural distribution. The Rs.5 strategy for small packs delivered significant off-trade volume growth and opened new possibilities in rural India, but proved to be unviable in the long run, with both the companies raising the prices to Rs.6 in the latter half of 2004. However the scenario has changed in the last one year i.e., 2005. hefty advertising budgets and film star brand ambassadors not withstanding, cola majors PepsiCo and Coca-Cola are recording flat sales with low single digit volume and value growth for this year. This has been attributed to last years price hike to Rs. 7 and a consumer shift towards non-carbonated beverages, like fresh fruit juice, milk, packaged juice and flavored drinks. Sales of both Pepsi and Coke have been 50% less this year because of the price hike. Other categories like juices are being pushed by traders and importers as margins for these are about 10-15% compared with the 5-8% margins they get for colas. As a result last year consumption rose to 250 million crates and has stagnated ever since. As a matter of fact sales have gone down by almost 10% in the three months ending March 31, 2006. With the growth of its flagship brand Pepsi stagnating, the company is upping spends on the promotions to revamp other brands. Its also shifting focus to other categories. It has recently relaunched Diet Pepsi and the company is attempting to rope in more consumers by bringing in the price down. More recently, the company had revamped its 600 ml 7up bottle with Mallika Sherawat as the brand ambassador to go with its new trendy looking bottle. One of the areas of concern is that Indias per capita consumption of cola remains at 10 servings per year (that is, each person has a cola about 10 times every year). For Pakistan and Sri Lanka it is 25 and 30 respectively! Vice president

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(Marketing) of PepsiCo Vipul Prakash recently told ET that this is a matter of concern for the company and it is focusing on this issue. For the summer of 2006 the company is focusing on home consumption a category which has been growing since the past two-three years- for which Pepsi has started its Pepsi TV campaign. Packaging in the soft drinks market is witnessing a gradual shift towards the non-returnables (PET and cans) as consumer preferences and lifestyles change. Preempting the migration to non-returnables, Pepsi India expects to see more cans and PET bottles in the market. The company expects 15% reduction in the share of glass bottles from the current 65%. Likewise arch rivals coca-cola India is not far behind in lapping up the growth in the PET model and expects the category to do well in the future. This is a sign of an emerging economy. Likewise cans are the mainstay as far as packaging models go internationally. Cans still now have been expensive due to the lack of capacity in the aluminum can industry because of which everything has to be imported, which make cans expensive. However PepsiCo feels that gradually the convenience factor will overtake the value factor and thats when cans and other nonreturnable modes of packaging will be most preferred for local consumers.

INTRODUCTION TO THE SOFT DRINKS MARKET IN JAMSHEDPUR


Late Sri Charan Singh is credited with the initiative of starting the soft drink industry in Jamshedpur. He was a resident of Punjab, and used to sell soft drink in carts. Domestic tensions forced him to leave his home town and come to Jamshedpur more than 50 years ago. He then setup his own machine and started bottling without any brand name. Today his son Mr. Sunder Gurudev is carrying out the legacy of his father. The credit of establishing Jamshedpur on the soft drink map goes to the late Dharamchand Kamani. During the course of his business trips he was struck with the idea of setting up of a soft drink plant in Bihar. As Jamshedpur was known as an

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industrial town he decided to set up the plant at Jamshedpur. June 1967 was a significant year for the soft drink industry in Jamshedpur because the construction for the plant started in that year and it became operational from March 1969.

COMPANY PROFILE OF SMV BEVERAGES


Steel City Beverages Ltd. Adityapur, Jamshedpur a medium sector enterprise located amidst beautiful surrounding on the Tata Kandra road in the Adityapur industrial area and producing Pepsi range of bottled soft drinks viz. Pepsi, 7up, Miranda and Slice and had now become a household name in Jharkhand today symbolizes achievement and advancement over the years. Today, it symbolizes self-reliance in quality and technology, productivity and industrial relations since its inception more than 25 years ago. S.C.B.L. was established in 1967 and production commenced in March 1969. At the very outset the company installed state of the art machines and technology, for the production and bottling of soft drinks. The bottling plant with a capacity to produce 220 bottles per minute is totally automatic and also has a modern state of the art inter mix machine for bringing forth the right blend of flavors. The company continues to adapt innovative technology in keeping with its policy of constant quality improvements. With the advent of Pepsi cola internationals in India, the company entered into an agreement with Pepsi foods ltd. for the production and sales of Pepsi range of soft drinks in Jharkhand and Bihar. The company which has a manpower of 110 ranked as the best bottling company in the country in terms of quality, efficiency, sales, productivity and HRD. Under the guidance of its chairperson Smt. Kusum Kamani and the able stewardship of its Managing Director Sri. Nakul Kamani, the company has consistently backed on numerous occasions awards for quality assurance and productivity. In 1993, it bagged top honors for being the best quality conscious plant among all Pepsi bottling companies in India. 23

The companys highly sophisticated plant and quality control laboratory along with the dedication and enterprises of its employees is more than evenly matched by the managements sense of understanding and compassion that had ensured the companys progress with every passing day. S.C.B.L. was taken over by Mr. S.K. Jaipuria in March 1999 from Mr. Nakul Kamani along with Rushabh Marketing (P) Ltd., the marketing unit. Mr. S.K. Jaipuria is very much enthusiastic and enterprising businessman. He has a number of bottling plants all over India, like Orissa, Bhopal, Nagpur, Hyderabad, Dharward etc. In 2002 he setup another bottling plant in the name of SMV Beverages (Jamshedpur), a unit of SMV Agencies (P) ltd. It has a capacity of 600 BPM which is catering to the whole of Jharkhand. It is also a franchisee of Pepsi. Though Mr. Jaipuria holds the top position but overall policies regarding managerial decisions and all executive functions are performed and looked after by Mr. P.S. Kumar, Director S.M.V. Beverages. He looks after all the functions of production, sales, accounts, personnel, purchase etc, and all the departmental heads assist him in the smooth running of the day to day affairs of the company. S.M.V. Beverages won the PEPSI Q.A. (GOLD) INTERNATIONAL QUALITY AWARD for the year 2001. S.M.V. Beverages also setup a PET bottle plant in March 2003. it has a capacity of bottling 40 PET bottles per minute. It is bottling 500ml, 1.5 lt., 2 lt. PET bottles of different flavors namely Pepsi, Mirinda, 7up, Mountain dew.

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STRUCTURE OF THE ORGANIZATION


For every organization a well defined hierarchy with clear line of authority is necessary on which the complete organization should be founded. The existence of the structure as obvious in every organization is quite important whether planned/unplanned or ill planned. To have a structure is not the choice of the organizer. The choice is only of the form and pattern of the organization. Planned organizational structure proves logical, clear-cut and streamlines the work flow in order to meet the present requirements. Otherwise it will merely be a makeshift arrangement and the management is rendered difficult and ineffective because organizational structure affects everyone in the organization. A good organizational structure facilitates managements management and the operation of the enterprise and it also encourages growth. It helps the organization to reach its common goal. In order to make the organizational structure more effective one structure should be able to meet the demand of various factors namely environment, technology, size and people. FOLLOWING ARE THE MAJOR CONSIDERATIONS Clear lines of authority Adequate delegation of authority Minimum managerial level Unity of directors Application of ultimate responsibility Span of control Simplicity Flexibility Due consideration for top groups Proper emphasis on shift activities

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ORGANIZATION CHART OF S.M.V. BEVERAGES (JAMSHEDPUR)

DIRECTOR

PERSONAL PLANT DEPT. MGMT.

PURCHASE DEPT.

PMTMISCOOLER DEPT.

FINANCE LOGISTIC DEPT. DEPT.

PERSOPRODUCTION NAL MANAGER MANAGER PERSONAL OFFICER STAFF SECURITY DEPT SUPERVISOR

MANAGER (EQUP)

FINANCE MANAGER

ACCOUNT EXECUTIVE ACCOUNTANT

STAFF LAB STORE

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ORGANIZATION CHART OF HYDERABAD MARKETING COMPANY

DIRECTOR

PERSONAL DEPT.

HEAD OF SALES

TERRITORY DEVELOPMENT MANAGER

MARKETING DEVELOPMENT MANAGER

SHIPPING DEPT. DEPT.

FINANCE

A/C DEVELOPMENT CO-ORDINATOR SR. CUSTOMER EXECUTIVE CUSTOMER EXECUTIVE SALESMAN

MARKETING OFFICER MERCHANDISER

FINANCE MANAGER ACCOUNTANT ACOOUNTS EXECUTIVE

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LOADERS

PRODUCTION PROCESS
WATER TREATMANR PLANT
Water in the SMV BL is coming from the Sitarampur dam. It is stored in a reservoir. Before ensuring production, this raw water is being treated in the water treatment plant. The process involved is known as coagulation process. Main chemicals used are ferrous sulphate (FeSO4), calcium hydroxide (CaOH) and chlorine (Cl). Initially water is treated with all these chemicals in the treatment tank and becomes turbid. All the impurities get settled at the base and removes the turbidity. Then, it is sent to the carbon tank where all the microorganisms and chlorines are removed. The water so obtained is completely free from any kind of impurities and can be used in further processing. The maximum alkalinity maintained until as much as 50 ppm.

BOTTLED WASHING PLANT


Used bottles returning from the market are stealthy. It is completely an auto process which takes place within a machine called washer machine. The machine has three compartments. Bottle for washing are placed on the conveyer come inside the machine and get successive treatment. Bottles are treated with 4% caustic soda in the first compartment at a temperature of 100-150 F. Next these lire conveyed to the second compartment, where bottles are again treated with 2% caustic soda at a temperature of

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120 F, in the third compartment bottles are treated with soft water. Time duration in each compartment is 10 minutes. Bottles are then sent through the inspection center, where these are watched against strong light.

SYRUP ROOM
Syrup room is situated in the first floor. Here syrup is prepared from filtered water, sugar and the concentrate. The room is well equipped with several tanks and filter press. The firestone is heating tank in which syrup is actually prepared. Calculated amount of syrup along with concentrate and water are being heated up to 85C. Thus a saturated solution is being prepared. Next it is sent through a machine called filter press where syrup is filtered. Filtered syrup is next passed through a para flow cooler, when by recycling and glycol method, the temperature of the syrup is cooled down to 20-25 C. Cooled syrup is then stored in the syrup tanks. Syrup comes to the traumatic machine. Here syrup is mixed with carbonated water under pressure in definite proportion. Inspected bottles gradually come under the filtration machine. Carbonated syrup by this time fills the filter machine. From this machine syrup is poured into the bottles in calculated amount. The exact rate of filling is 620 bottles per minute. Meanwhile, crowner machine helps in closing the bottle mouth with caps which makes them completely air tight. Ready bottles are again sent through an inspection center for through examination on the conveyer. Next they are collected from the conveyuer come.

MARKETING ACTIVITIES

INTRODUCTION PROMOTIONAL ACTIVITIES

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MERCHANDISING ACTIVITIES ADVERTISING ACTIVITIES

MARKETING ACTIVITIES
INTRODUCTION Marketing needs a framework that begins and ends with the customer. Marketing tools by themselves do not achieve marketing objectives. There is an intermediate step between the deployment of marketing tools and the achievement of marketing objectives. A marketing network consists of the company and its supporting stakeholders (customers, suppliers, distributors, retailers, ad agencies, and others). The operating principle is simple: build an effective network of relationships with key stakeholders, and profits will follow. A set of marketing tools the firm uses to pursue its marketing objectives are called marketing mix. These tools can be classified into four groups which are called the four Ps of marketing.

MARKETING MIX

PRODUCT TARGET MARKET

PLACE

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PRICE

PROMOTION

However some academicians feel that the four Ps of marketing have become redundant and needs to be replaced by the four As or the four Cs of marketing. FOUR As Acceptability Affordability Accessibility Awareness FOUR Cs Customer value Customer costs Customer convenience Customer communication

Soft drink is a FMCG product which has a wide and scattered market. Thus in order to succeed companies needs to breakdown their marketing activities into sub-parts to effectively meet the customer needs. The entire market in this case is divided into three parts viz.: Route market Home market At work market

ROUTE MARKET Outlets coming under this market cater to the needs of those customers who are engaged in shopping, eating out in restraints, going to and from work, in amusement centers etc. In simpler words this market is what we call the bazaar. HOME MARKET Outlets coming under this market cater to the needs of those customers who buy soft drinks predominantly for home consumption either by glass bottles or pet bottles. The shops targeted under this category are those which are located inside residential 31

complex or are located nearer to the residential areas. These shops predominantly sales pet bottles.

AT WORK MARKET Outlets coming under this market cater to the needs of those customers who are working in offices, factories etc. i.e., the outlets targeted are the canteens mainly.

PROMOTIONAL ACTIVITIES
Sales promotion a key ingredient in marketing campaigns consists of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by customers. Promotional activities play a key role in the entire marketing effort being carried out by S.M.V. Beverages which are in sync with those of PepsiCo India. These promotional activities generate more sales as well as create a good image of the product in the mind of the customer.

The promotional tools used by SMV Beverages for its marketing activities are Point of sale display Incentives to retailers Sales promotion through sponsoring special events Sales promotion through various schemes Advertising

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POINT OF SALE DISPLAY There are many ways to communicate with consumers at the point of sale. In-store advertising includes shopping carts, cart straps, aisles and shelves. The appeal of the point of sale advertising lies in the fact in many categories consumers make the bulk of their final decision regarding purchase in the shop. Marketing management Kotler, 12e This is particularly true for those brands which have very low customer loyalty. Soft drink is one such product in which most of the time buying decision is made at the spur of the moment based on the brand which is readily available and catches the eye of the customer. For this reason S.M.V. Beverages invest heavily in this category by supplying the shop owners with stands so that they can keep the bottles outside on those stands so that customers have an eye contact with them as he/she is entering the shop. Also Pepsi supplies the shop with visi coolers with a glass front so that cooled bottles can be seen by the customer when he/she is making a decision on the flavor that the person is going to buy. Apart from these SMV Beverages takes keen interest in other type of strategies like painting the walls of the shops with the pepsi logo, putting up glow signs and dash boards with the pepsi logo and the shop name. This increases the visibility of the brand among the customer when he/she enters the shop.

INCENTIVE TO RETAILERS Another method of sales promotion being used by SMV Beverages is by running special incentive schemes for retailers. This type of promotional strategy is conducted mainly

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during the peak season i.e., from March to July. In this the company with the help of its distributor in the respective areas categorizes the retailers into different categories based on sales. After this the retailers are given a target regarding the minimum number of crates that they have to sale in that period. On achieving the target the dealer is given attractive prizes which ranges from free bottles, gift items etc.

SPONSORING SPECIAL EVENT Another promotional strategy which is very heavily used by Pepsi and as such by SMV Beverages is sponsoring various events which include cricket matches, local events like quiz competitions, parties, local sports events etc. While sponsoring international cricket matches require huge investments the decision regarding the same is taken by the parent company and SMV only acts as an intermediary to it. Sponsorship decisions which are taken by SMV are more localized in nature which includes local sport events, parties, music shows etc which require relatively smaller investments. This type of promotional activities helps in creating a positive image of the company and the brand. By becoming part of a special and more personally relevant moment in consumers lives, involvement with events can broaden and deepen the relationship of a company with the target market. SALES PROMOTION THROUGH VARIOUS SCHEMES SMV Beverages keeps on running various schemes from time to time which are mostly those promoted by Pepsi and some by SMV Beverages. These include schemes for both the retailers as well as the consumers. Schemes which are given to the retailers include free bottles for every crate purchased; discount schemes under which discounts mostly monetary in nature are given to the retailers, scratch card scheme which include monetary gains as well as gifts are given to the retailers on buying stocks in bulk quantities. Schemes which are provided to the consumers include U.T.C. (Under The Crown). Under U.T.C. various promotional strategies are used like meeting celebrities like Shahrukh Khan, Sachin Tendulkar etc are given, cash discount are also provided in the form of Rs.3 off and also free bottles are also given. Also different type of schemes

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are provided with pet bottles like Pepsi TV under which if on the back side of the wrapper a image of a TV is printed the that consumer is entitled for a free TV. Bottle coolers for keeping the pet bottles cool for a longer period of time, snack and bowl, Rs.5 off and free snacks like kurkure are also given to the consumer. These schemes have proved to be of great success among the consumers and have helped in boosting the sales of soft drinks.

ADVERTISING
Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. Marketing management Kotler, 12e

A very important part of advertising is to decide the medium of advertising and how much to spend on each medium. The different mediums used by Pepsi are: TV Hoarding Newspaper/Magazines

Out of these Pepsi invests heavily in advertising through TV. Brand ambassadors of Pepsi include film stars, cricketers and other sport persons. PepsiCo gives these brand ambassadors hefty sums running into many crores to endorse their brands. Some of the brand ambassadors of PepsiCo associated with the different brands are: Shahrukh Khan Pepsi Sachin Tendulkar Pepsi John Abraham Diet Pepsi Zayed Khan Mirinda

Mallika Sherawat 7up Deepika Paduker - pepsi

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Katrina Kaif --

slice

However in the previous year it has been seen that hefty advertising budgets and costly brand ambassadors have not been able to pep up the sales of the soft drinks. This has been attributed to the increase in price and also because of consumer shift towards noncarbonated beverages. One thing has to be kept in the mind that nothing drives sales more than a good advertising. But the present scenario tells us that in order to drive up sales, apart from advertising other factors like distribution network, attractive and competitive pricing policy, good service and goodwill plays a major role in the success of an advertisement. Thus advertising has to be very carefully woven along with the others parts of the marketing mix. Thus advertising is a fascinating and important aspect of marketing. Advertising appeals to all irrespective of age, caste, sex, borders etc. Words which can be associated with advertising are fun, humor, warm, entertaining, persuasive, boring, and irritating. Advertising in simpler words is communication and persuasive and leaves a mark in the mind of the consumer. Thus it is natural to look to theories, concepts and research findings from psychology to understand and mange the whole process. In all the phases of the advertising process from objective setting through campaign creation and media selection to the copy of campaign evaluation research provides the thrust.

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MAJOR INSTITUTIONS INVOLVED IN THE ADVERTISNG PROCESS

CONTROL INSTITUTIONS GOVERNMENT COMPETITION THE FIVE Ms OF ADVERTISING

FACILITATING INSTITUTUION ADVERTISING AGENCIES MEDIA ADVERTISING AGENCIES

MESSAGE
What message should be sent?

MEASUREMENT
How should the results be evaluated?

MISSION
What are the advertising objectives?

MONEY
How much can be spent?

MEDIA
What media should be used?

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OBJECTIVES OF THE ADVERTISING STRATEGY Acquaintance with the product Advertising may be used to acquaint the buyer with the seller, the product, its characteristics, as well as with the company, easing the way for the sales force. Improving dealer relations Distributors and retailers like to a manufacturer to vigorously back its own product and create as much consumer awareness as possible. Introducing new product Companies need to advertise vigorously when it is launching a new product make the consumer aware about it.

Expanding the use of the product Advertising may be used to lengthen the life cycle of the product,

increasing the frequency of replacement or increasing the variety of product usage. Countering substitution Advertising reinforces the decision of the existing customers and reduces the likelihood that they will switch over to the alternative brands.

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However one thing has to be kept in mind that there is a very thin line separating advertising from sales promotion. Earlier advertising was given more importance than sale promotion as a tool to drive up sales. Promotion is now more accepted as an effective sales tool. But there are disadvantages of letting advertising take too much of a back seat to promotions, because advertising typically builds brand loyalty while sales promotion helps in spurring up the sales in that particular period only.

DISTRIBUTION CHANNEL
THEORITICAL ASPECT OF DISTRIBUTION CHANNEL DISTRIBUTION CHANNEL OF S.M.V. BEVERAGES

THEORETICAL ASPECT OF DISTRIBUTION CHANNEL


The theoretical aspect of the distribution has been explained in the introduction. I would like to shed some more light on this aspect. Physical distribution of goods and products is a process of reaching out to the customer. After the production process is over the main concern for a company is how to make that product available at the nearest shop of the target customer. For this the company needs to have an effective distribution network which is cost effective, reaches to every nook and corner of the target market and delivers the goods to the shops on time so that there is no scarcity. Thus a company needs to have a very clear cut understanding of the geographies of that particular area for an effective distribution channel. Basically there are two types of market viz. urban market and rural market. Both the markets are very different from each other in terms of preference, frequency of goods sold, price and quality. With respect to soft drinks it has been seen that the frequency of sale is faster in the urban market. Thus the distribution network has to be more prudent in the urban market. The area that was given to me comes under the urban market. 39

FACTORS AFFECTING THE CHOICE OF DISTRIBUTION CHANNEL


There are a number of channels from which a company can choose from. The different channels have already been mentioned in the introduction. The channel chosen should achieve the ideal market exposure and should be able to meet the target customers needs and preferences. In choosing the ideal channel, the company always has to struggle between what is ideal and what is available. What is available need not be the ideal because there are a number of factors that limits the choice. An example that I can mention over here is that of soft drink distribution in the Kadma market. Kadma market is characterized by areas which can be termed as posh localities and there are areas which are in the interior and are characterized by kaccha and narrow roads. So though the best vehicle to distribute soft drinks is a TATA 407 truck which can carry almost 200 crates at a go and doesnt need to refill again but the problem is that it cannot go into the interior areas. For this reason instead of these trucks the best alternative is to run a mini matador truck but the problem is that it needs to refill frequently because it can carry less load. An ideal channel should also be the best cost channel and keeping all the shortcoming in view a company should choose the best cost channel as its ideal channel. But it is also a little tricky as this can lead to customer dissatisfaction and therefore sometimes a relatively high cost channel can prove more profitable. Various factors which affect the choice of the distribution channel are: Factors relating to product characteristics Purchase frequency Perishability Selling price per unit Standardized product Market factors and consumer factors Consumer of industrial products

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Number of purchasers Geographical distribution of consumers Size of the order Company factor Financial resources Size of the company Product mix Attitude of the company executives Marketing policies

Environmental factors Economical considerations Legal restrictions Social and ethical considerations

Middle man consideration Service provided by the middleman Attitude of the middleman Availability of the middleman Sales volume potential Cost of channel usage

Thus the above factors influence the decision regarding the distribution channel. It is therefore right to say that a company is not always free to enjoy complete freedom in selecting the distribution channel.

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DISTRIBUTION CHANNEL OF S.M.V. BEVERAGES

SMV BEVERAGES FACTORY

HML (FACTORY DEPOT) DIRECTOR OPERATIONS

INSTITUTIONAL OPERATORS

CSD

RAILWAY

MARINES

DISTRIBUTOR DISTRIBUTOR

DEALER

DEALER

DEALER

DEALER

3- LEVEL DISTRIBUTION CHANNEL 1- LEVEL DISTRIBUTION CHANNEL

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MARKET SURVEY
THEORETICAL ASPECT MARKET SHARE OF PEPSI MARKET SHARE OF GLOW SIGN MARKET SHARE OF PAINTINGS MARKET SHARE OF DASH BOARDS MARKET SHARE OF VISI COOLERS

THEORETICAL ASPECT
Market survey is one of the most widely used marketing research techniques. Its purpose is collection of specific data concerning to the market that cannot come from the companys internal records or from external published source of data. The only way to get accurate data regarding the target market is by physically moving around in that area along with the Pepsi vehicle. There are various types of surveys out of which the

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one that I used was the census survey. The report on marketing activities of S.M.V. Beverages is based on two types of survey: Dealer survey Consumer survey.

Let me first describe about the dealer survey and what the results were.

MARKET SHARE
Dealer survey or retailer survey is one of the most accurate methods to known about the market share of a company and it is especially true for soft drinks companies. Soft drink market is typically characterized by changes in the stock position everyday. In order to have a good knowledge about the market and the route it was important for me to move along with the Pepsi vehicle. This helped me in two ways: 1. Number of dealers in the Telco market 2. Location of the dealers 3. Type of dealers 4. Market share Learning in the classrooms and learning practically are two different things. So for the first 10 days I moved along with the Pepsi vehicle interacting with the retailers and trying to build up a rapport with them. From this I also came to know how to deal with different types of retailers and how to convince them. Feedback from the retailers helped me to find out where the company was lacking in terms of service provided and also how the competitors fared on the same parameters. These feedbacks help the company to improve its services and as such increase retailer satisfaction which in turn results in better sales and revenue generation. Thus appropriate marketing strategies can be worked out based upon the findings.

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While conducting the survey of the dealers a format was provided to me by the company which I personally filled up by interviewing all the retailers in the Baradwari (Kasidih) and it near by areas.

FINDINGS FROM THE DEALER SURVEY


NUMBER OF OUTLETS
In the Baradwari (Kasidih) area there are 120 outlets selling soft drinks out of which around 40 are Pepsi exclusive outlets and 30 are coca-cola exclusive outlets. Rests are selling both the brands. Also there are three types of outlets in the Baradwari (Kasidih) area which are: Convenience outlet which includes general stores, beetle shops, medical stores and other types of shops Grocery outlet which includes shops selling grocery Eatery which includes restaurants, fast food joints etc

Number of outlets under each category Total number of outlets 185 OUTLET TYPE CONVININCE GROCERY EATERY MARKET SHARE OF PEPSI OUTLET NUMBERS 55 40 25

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To find out the market share of Pepsi in the Baradwari (Kasidih) went to each of the120outlets aked the shop owners about the daily number of bottles of Pepsi and cocacola that they stock. Then I added up the figures from all the outlets and then found pout the market share. One of the limitations of this survey is that the stocks of a shop keeps changing everyday during the peak season i.e. from March to June based on the schemes available. So the stock figures given here are an average estimates which has been found out by me after consultation with the shop owners. From this survey the market share of Pepsi w.r.t. Coca-cola was found out to be as follows: PEPSI_____________________________________ 60.0% (APPROX. 55%) COCA-COLA ______________________________ 40.00% (APPROX. 45%)

MARKET SHARE OF PEPSI GLOW SIGNS


Glow signs are the boards on the top of a shop with neon lights in the back ground with works as a sign board for the shop. It is an effective marketing strategy. From the survey of the outlets the market share of Pepsi glow sing was found to be as follows: PEPSI _________________________________________ 33.33% COCA-COLA __________________________________ 66.67%

MARKET SHARE OF PEPSI DASH BOARDS

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Dash boards forms a part of the marketing strategy of the company and serves as a point of sale display. The market share of Pepsi dash boards w.r.t. coca-cola dash boards are as follows: PEPSI ___________________________________________ 55% COCA-COLA_____________________________________ 45%

MARKET SHARE OF VISI COOLER


The market share of visi coolers of Pepsi w.r.t. coca-cola is as follows: PEPSI____________________________________________ 40% COCA-COLA_____________________________________ 60%

MARKET SHARE OF OYC


The market share of OYC of Pepsi w.r.t. coca-cola is as follows: PEPSI_____________________________________________ 49% COCA-COLA______________________________________ 51%

ANALYSIS OF THE RETAILER QUESTIONNAIRE

Q1. Rank the following flavors according to demand. After analyzing this question I found out that our of every 100 bottles of Pepsi on an average a retailer preferred to keep 25 bottles of Pepsi, 21 bottles of Mirinda and slice, 18 bottles of mountain dew, 10 bottles of 7up and 5 bottles of Mirinda lemon. Thus it is clear from this question that Pepsi is the most preferred flavor but mirinda and slice are also favored by the retailers as they also have a good number of loyal customers.

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For coca-cola, a retailer out of every 100 bottles preferred to keep 28 bottles of thumps up, 24 bottles of Sprite, 16 bottles of Fanta, 14 bottles of Maaza, 10 bottles of coca-cola and 8 bottles of Limca. Thus Thumps up is the most preferred flavor along with sprite while others are not of much significance.

Q2. Which type of drink is most preferred by you? Though carbonated soft drinks is still the leader in terms of market share with 36% of the retailers preferring it as their first choice but fruit juices and lassi and chanch are fast catching up with soft drinks in terms of market share and sales. This can be attributed to a shift in the consumer preference towards non-carbonated drinks because of the pesticide controversy, price hike, health consciousness, and the Ramdeo Baba effect.

Q3. Which company provides better service Pepsi or Coca-cola? Though Pepsi comes out as a clear winner in this case but there have been to many grievances from the retailers. From the feedback that I got from the retailers I can conclude that Pepsi provided very prompt service in the Baradwari (Kasidih) area which resulted in an increase in the market share of pepsi.

CONSUMER SURVEY
Companies selling mass consumer goods and services such as soft drinks, cosmetics, air travel etc spend a great deal of time trying to establish a superior brand image. Much of a brands strength depends on developing a superior product and packaging, ensuring its availability, and backing it with engaging communications and reliable service. Complicating this task is the always changing consumer market. 48

Consumer survey is one of the most frequently used methods to find out consumer preference and attitude towards a product. Infact it is the best way to find out faults/shortcomings in the product if any and rectify them according to the feedback of the consumer so as to make the product more user friendly. For this reason I prepared I questionnaire for the consumers which I got approved from the company executives and then went around the Baradwari (Kasidih) market to fill it up. The findings from the questionnaire are as follows:

Q1. Which scheme is most preferred by you in the pet jar? After analyzing this question I can conclude that the most popular scheme among the pet bottles is the Pepsi TV scheme followed by Rs. 10 off and bottle cooler respectively among all the age groups as wells as in the overall analysis also.

Q2. Which flavor among the following is most preferred by you? By analyzing this question I found out that the most preferred flavors among the consumers are Thumps Up, Pepsi, Mirinda followed by Slice and then Sprite and Mountain Dew. Analyzing the same question age wise I found out that the most preferred soft drink flavor among the 15-24 age group boys is Thumps Up (16%) followed by Pepsi (14%) then Sprite (12%), Mirinda (11%) and Mountain Dew (10%). Among the girls of this age group the most preferred flavor is Mirinda (14%) and Slice (14%) followed by Maaza (11%), Pepsi (10%), Mountain Dew (10%) and Sprite (10%). In the age group of 25-40 the most preferred flavors are Thumps Up (13%), Sprite (12%), Mirinda (12%), Pepsi (11%) and Mountain dew (10%).

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In the age group of 40 and above the preferred flavors are Mirinda (13%) followed by Pepsi (12%), Thumps Up (12%), Sprite (11%), Slice (10%).

Q3. Which type of drink is most preferred by you? After analyzing this question I found out that carbonated soft drinks is still the most preferred drink among the consumers but on analyzing this question based on age group I found out that carbonated soft drinks is the most preferred drink for all the age groups in consideration except for the 15-24 age group girls who prefer to have fruit juice instead of carbonated soft drink though there is only a slight difference in their preference.

Q4. In which place would you prefer to have soft drinks? After analyzing this question I found out that as whole consumers prefer to have soft drinks at an eatery with 50 % of the respondents favoring it followed by home (34%). But after analyzing this question based on age group distribution eatery is favored by boys (60%) in the age group of 15-24 and those in the age group of 25-40 (70%) while girls in the age group of 15-24 and those above 40 prefer to have soft drinks in their home.

RECOMMENDATIONS
RECOMMENDATIONS FOR THE DISTRIBUTION CHANNEL RECOMMENDATIONS FOR THE DEALERS RECOMMENDATIONS FOR THE CONSUMERS

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RECOMMENDATIONS
The findings from my study and the subsequent analysis of the results threw up some interesting and important results. In the subsequent paragraphs I would I like to recommend a few suggestions.

RECOMMENDATIONS FOR THE DISTRIBUTION CHANNEL


First of all I would like to talk about the distribution network. The distribution channel of SMV Beverages is of two types as shown earlier in the diagram on page ground realities. Telco can be divided into three concentric circles The inner circle consists of the main market area. The middle circle consists of the areas which are adjacent to the main market and consists of basically residential areas The outer circle consists of localities which lie on the outskirts of Telco. RESIDENTIAL AREA OUTSKIRTS MAIN MARKET . In the Baradwari (Kasidih) area the distribution strategy of SMV Beverages is in sync with the

The distributor of Baradwari (Kasidih) mini auto truck which caters to these three areas. This vehicle can at a time carry a load of around 50-60 crates of glass bottles plus

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some boxes of pet bottles. During the peak season the route taken by the vehicle is - first it enters the main market, then it goes the residential area and finally the outskirts. Whichever area it enters first the problem is that its stock is exhausted after just one area and it has to return back to the godown for reloading. Here I would like to shade some light on the distribution strategy of coca-cola. Cocacola runs to vehicles in the Baradwari (Kasidih) area. One is a Tata 407 truck and another one is a mini auto truck. The 407 truck moves around in the in the areas adjoining the main market and delivers orders to the retailers while the mini truck subsequently moves around in the main market and the interior areas where the 407 truck cannot enter and as result it is able to cater to two areas simultaneously. This results in a loss for Pepsi. I would like to recommend that SMV Beverages should instruct the distributor to run two vehicles instead of one during the peak season so as to maintain a higher market share.

RECOMMENDATIONS FOR THE RETAILERS


Retailers form an integral part of the marketing strategy of SMV Beverages and as such service provided to them should be prompt and efficient. After surveying the retailers I found out that though a higher percentage of retailers believe that pepsi SMV Beverages provides better service but I could make out after talking to the retailers that most of this goodwill is a result of the prompt service provided by SMV Beverages last year. This year there has been a drop in the quality of service provided and as a result there are too many grievances which have not been attended to. This has resulted in many retailers shifting their royalty towards the competitors. This is even reflected in the market share. In Telco the market share of pepsi is around 57% while in the other areas it is more than 65%. I would like to recommend that to maintain a higher market share and also to retain the goodwill of the retailers 52

prompt service should be provided and any grievance against the company should be immediately attended to. Also retailers constantly look for schemes through out the year. Though practically it is not feasible but during the peak season giving schemes to the retailers is very important as because the competitor company in order to increase its market share are always giving one scheme or the other. I would like to recommend that SMV Beverages should provide schemes to the retailers during the peak season particularly the refilling scheme as it is the most popular. Also, because Pepsi and Mirinda are the most preferred flavors schemes should be given in the two flavors in particular. Apart from this I would like to make a few more recommendations: Salesman should be have more better and cordial relationship with the retailers in the interior areas and also with those retailers where sales are low as this can result in an increase in sales. One complain from smaller retailers and those in the outskirts was that the supply is erratic with the salesman coming to their shops only twice a week and sometimes even once. I would like to recommend that company executives should visit the counter on a weekly basis and should also carry out surprise checks to improve the service. At present there is no definite criterion for providing visi coolers, glow signs, dash boards and paintings to the retailers, as a result of which some retailers have more than one type of merchandise while some have none. I would like to recommend that a definite strategy should be worked out and a separate department should handle this. Regular visit by the company technician to solve problems regarding visi cooler should be arranged to achieve better sales. After talking to retailers I found out that there is a good demand for SLICE 1lt. pet bottle but it is not available. I would like to suggest that if Pepsi can come out with a SLICE 1lt. pet bottle it can corner a good portion of the market share of branded fruit juices available in the market.

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RECOMMENDATIONS FROM THE CONSUMERS


The consumer survey was basically done to find out the preferences of consumers for soft drinks and to find out the effectiveness of the promotional strategies. I would like to make the following recommendations based on my study: The most preferred flavor among teenagers is Thums Up and the reason for this is its hard taste. Pepsi though quite popular among girls is not that much popular among boys. I would like to recommend that Pepsi should come up with one more flavor based on cola with a slightly harder taste to appeal to the whole market. Pepsi has become associated with the word bubbly and coca-cola with the word thanda. Pepsi should come out with an advertisement which can block the mind of consumers and compel them to think that thanda means Pepsi. Aquafina is a very popular mineral water brand among consumers and it is seen as a status symbol. But consumers dont buy it because it is not readily available because retailers get a very less margin on it compared to other brands of mineral water. I would like to suggest that if the margin for the retailers is increased a little bit, sales can increase many folds in this category.

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Also after analyzing the results of the survey and after informal talks with consumers I can say that there is a shift in consumer preference towards noncarbonated drinks particularly because of the Ramdeo Baba effect. Consumers even teenagers are slowly shifting towards other alternative types of drinks and these alternative drinks are gaining in market share. I would like to recommend that PepsiCo should try to exploit this growing market and come up with new varieties of drinks

STATISTICAL REPRESENTATIONS

STATISTICAL REPRESENTATION OF MONTHLY SALES STATISTICAL REPRESENTATION OF DEALER SURVEY STATISTICAL REPRESENTATION OF CONSUMER SURVEY

STATISTICAL REPRESENTATION OF MONTHLY SALES

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STATISTICAL REPRESENTATION OF DEALER SURVEY


Q1. Rank the following flavors according to demand.

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Q2. Which type of drink is most preferred by you?

30% 36% CORBONATE SOFT DRINK LASSI /CHANCH FRUIT J UICE

34% Q3. Which company provides better service Pepsi or Coca-cola?

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10% 4%

PEPSI 20%

COCA-COLA BOTH GOODS BOTH BAD 66%

STATISTICAL REPRESENTATION OF CONSUMER SURVEY

Q1. Which scheme is most preferred by you in the pet jar?

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O V E R A L L A N A L Y S IS
21% 33% PEPSI TV BOTTLE COOLER SNACK AND BOWL RS. 5 OFF RS. 10 OFF 16% 20%

10%

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Q2. Which flavor among the following is most preferred by you?

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62

Q3. Which type of drink is most preferred by you?

63

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Q5. In which place would you prefer to have soft drinks? 65

66

67

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BIBLIOGRAPHY

www.pepsizone.com www.pepsiindia.com Philip Kotler

Magazine

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