Professional Documents
Culture Documents
SALES AND DISTRIBUTION CHANNEL OF VARUN BEVERAGES LTD. (PepsiCO India, Ghaziabad Depo.)
SUBMITTED In The Partial Fullfillment For The Degree Of Master in Business Administration (Session 2009-2011)
UNDER SUPERVISION OF: MR. GAURAV GOEL HR MANAGER PEPSICO NOIDA SUBMITTED BY: VINEET SHARMA ROLL NO. 09101040 Haryana School Of Business Guru Jambheshwar University Of Science & Technology, Hisar.
1
Acknowledgement
I would like to thank the project coordinator Mr. Gaurav Goel, for guiding and encouraging me throughout the study. Apart from the study he also helped me to understand the corporate world and enriched my knowledge about the business world. It is great pleasure for me to acknowledge the assistance and contributions of our T.D.M. Mr. Pradeep Rana, for his prompt and timely guidance and valuable suggestions during this project.
I would also like to express my profound gratitude to Dr. Sanjeev Kumar, Sr. Faculty, Haryana School of Business , GJU S & T , Hisar for his constant and valuable suggestions while doing the project work.
Last but not least, I express my heartiest gratitude to respondents for providing me the useful information and cooperation.
Vineet Sharma
PREFACE
This project is outcome of conscious attempt to understand the gap between theories and real life aspects of business. In actual theories are too good to be followed. Industrial interface through summer training has been made compulsory for the fulfilment of MBA course so that the students get geared up to take a deep plunge on the corporate world. I feel encouraged by widespread response from teachers and officials of the PepsiCo. I am presenting this report, which is related to the deep study of consumer behaviour and giving analysis of the popularity of Pepsi products. This report will help those students and persons who are willing to see the preference of the Pepsi in India. It will further help the fresher to know about the procedures and the workings of the report while they will be at their summer training.
CONTENTS
1. EXECUTIVE SUMMARY OF TRAINING 2. MY TEAM 3. BRIEF HISTORY OF PEPSICO 4. SOFT DRINK INDUSTTRY IN INDIA 5. PEPSICO INDIA 6. COMPANY PROFILE VARUN BAVERAGES LTD. 7. INTERNATIONAL BRANDS OF PEPSICO 8. INTRODUCTION TO STUDY 9. RESEARCH METHODOLOGY 10.OBJECTIVE 11.ROUTES OF GAZIABAD CITY 12.THE STUDY ROUTE RIDE REPORT GT ROAD AREA GANDHI NAGAR AREA RAJ NAGAR AREA HIGHWAY 1 AREA 13. VISIBLE PROBLEMS 14.SUGGESTIONS TO RECTIFY ISSUES 15.BIBLIOGRAPHY 16.ANNAXURE 5 6 7 10 12 16 19 23 24 26 27 28 29 32 35 38 40 42 43 44 46
incorporated in 1931, known as Loft Inc. Once known as PepsiCo Cola, the company expanded its business and adopted its current name, PepsiCo, after a merger with Frito-Lay in 1965. This merger dramatically increased PepsiCo's market potential and set the foundation for the company's tremendous growth. PepsiCos products are recognized and are most respected all around the globe. Currently, PepsiCo divisions operate in three major US and international businesses: beverages, snack foods, and restaurants. In each of these businesses, PepsiCo has attained a leadership position as being the world leader in soft drink bottling g, the world largest snack chip producer, and the world largest franchised and company operated restaurant system. The corporations increasing success has been based on high standards of performance, marketing strategies, competitiveness, determination, commitment, and the personal and professional integrity of their people, products and business practices. PepsiCo's overall mission is to increase the value of our shareholders' investments through sales growth, investments and financial activities. PepsiCo believes their success depends upon the quality and value of their products by providing a safe, whole some, economically efficient and a healthy environment for their customers; and by providing a fair return to their investors while maintaining the highest standards of integrity.
PepsiCo headquarter
PepsiCo world headquarters is located in purchase, New York, approximately 45 minutes from New York City. Edward Durrell stone, one of Americas foremost architects, designed the seven-building headquarters complex. The building occupies 10 acres of a 144-acre complex that includes the Donald m. Kendall sculpture gardens, a world- acclaimed sculpture collection in a garden setting. Masters such as august Rodin, henrys Laurens, Henry Moore, Alexander Calder, Alberta Giacometti, Renaldo pomander and Claes Oldenburg focus the collection of works on major twentieth century art, and features works. the gardens originally were designed by the world famous garden
8
planner, Russell page, and have been extended by Franois goffinet1. the grounds are open to the public, and a visitor's booth is in operation during the spring and summer.1990 saw the coming of the multinational company Pepsi entering the Indian market. 11 years after the exit of coca cola. it had name, fame and edge of being one of the best in the game and it also offered stiff competition to parley and coke. Pepsi cola company founded by Cleb Badham in 1890 at north Crolina in USA now it is ked 86th (1998) in the world with the asset of around $25000 million, having its head quarter at Atlanta. Its CEO is roger enrico and Pepsi co. India holding chairman is Mr. Rajiv Baksi. Pepsi co. Indias is at gurgaon. Presently is operating in 196 countries.
Mission
Our mission is to be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.
Vision
"PepsiCo's responsibility is to continually improve all aspects of the world in which we operate - environment, social, economic - creating a better tomorrow than today." Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.
when Coca-Cola decided to windup its operation in 1977 rather than bowing to the Indian government insisting on: Dilution of equity, as the government felt that lots of foreign currency was being wasted. Manufacturing of the top-secret concentration in India. Disclose of the chemical composition of the essence. This left a large vacuum in the popular soft drink market, and a vista was opened to any company with the requisite, technical, marketing and organizational skills. The exit of Coca-Cola from India in 1977 accelerated the growth of several Indian Soft Drink. New soft drink in the form of Tetra pack entered the market among Frooti, Jump-In and Treetop were the prominent once. Till 1977 their equipped bottling plants and the distribution network a longing to be of no use. It took them one year to develop new formula to survive and gradually came up with Campa, Lemon, Orange and Cola that order. However Parle, the pioneer in the soft drinks, blazed its way to national prominence with their product Thumps Up bearing the slogan Happy Days Are Here Again. This particular slogan helped to win over the loyalists or addicts to Coca-Cola, who was in the state of Cola Shock or Cola Depression. Soon the Indian Soft drink industry started at a phenomenal rate, and all Parle Products Gold Spot, Limca and Thumps Up became the brand leader in their own segment. In spite of all these, the drink market still has large gap, as claim by soft drink manufacturers. To fill these gaps there are many soft drinks concentrate and squashes flooded the market. The Indian soft markets basically offered three flavours i.e. Orange, Lemon and Cola.
11
PEPSICO INDIA:
PepsiCo entered India in 1989 and has grown to become the countrys largest selling food and Beverage Company. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India. PepsiCo nourishes consumers with a range of products from treats to healthy eats that deliver joy as well as nutrition and always, good taste. PepsiCo Indias expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana 100% fruit juices, and juice based drinks Tropicana Nectars, Tropicana Twister and Slice, non-carbonated beverage and a new innovation Nimbooz by 7Up. Local brands Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands. PepsiCos foods company, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay products are free of trans-fat and MSG. It manufactures Lays Potato Chips, Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands and the recently launched Aliva savoury crackers. The companys high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers. Frito Lays core products, Lays, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary nutritional labeling on their packets. The group has built an expansive beverage and foods business. To support its operations, PepsiCo has 36 bottling plants in India, of which 13 are company owned and 23 are franchisee owned. In addition to this, PepsiCos Frito Lay foods division has 3 state-of-the-art plants. PepsiCos business is based on its sustainability vision of making tomorrow better than today. PepsiCos commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers. Previously there were two ads. Tags Yehi Hai Right Choice Baby, Nothing Official about It & Yeh Dil mange More, which immediately ring a Bell
12
its to be a Pepsi. But today this ad. Tag has been changed and now its "Yeh hai Youngistaan Meri Jaan!" Pepsi is a short span of its operations in India has found a place in hearts and minds of the Indian Consumers. The success has primarily been due to the innovative and passionate Indian team which has been built over the years. Pepsi is a trendsetter managed and run by Indians, where important decisions are taken locally. In 1993 Pepsi Co. set up a hold company to further accelerate growth the future through new initiatives and joint ventures. Pepsi Co. fully committed to India and the national objective of development of technology and accelerating exports and employment. It has brought in over $500 million in foreign exchange as well as technology, which is used for its global network by way of royalty, know how of dividends. Pepsi Co. has a turnover $25 billion, half of which comes from beverages and the other half from the snacks foods divisions. The beverages arm of the Pepsi Co. is Pepsi Cola Company and the snacks foods company is called Frito Lay Inc. The year 1998 is the centennial year of Pepsi.
Beverages:
Pepsi has set up a concentrate plant in 1989 at Channo, District Sangpur, Punjab, with an investment of $ 5 million the state of the art Plant houses a world class laboratory where soft drinks from all over the world are tested. This concentrate plant supplies Pepsi, 7Up, Team, Miranda, Orange, Apple & Lemon flavors to all the Pepsi Bottling plant in South Asia. Pepsi has 40 Bottling plant in India, out of which 16 are company owned and 24 are owned by Indian franchisees, Pepsi Co. has invested heavily on up gradation of these bottling plants and has put 5 green fields projects in backward areas such as Jainpur and Bazpur in U.P. Bharuch in Gujarat, Sonarpur in West Bengal and Naclamangala in Karnataka.
13
New project are coming up in Maharastra and Tamilnadu. In addition to the Companys own Bottling Operations (COBO), Pepsi has 24 Franchisee Owned Bottling Units in India. These franchisee manufacturers are also planning to install substantial additional capacities. In last two years Pepsi Co.s franchisees have put new bottling plant at Jaipur, Bhopal, Hajipur (Bihar), Guntur (A.P) and Gawahati (Assam) with further investments. Pepsi Co.s franchisees are amongst the best in the Pepsi world and the 1998 two Indian Franchisees were chosen for being the Bottler of the Year amongst all International Bottlers.
Juices:
Pepsi Co. plans to launch juices in a bog way in India, there by helping the farmers in fruit procurement. Pepsi Co. Agriculture Scientists has undertaken research on Mango, Guava and Oranges and these fruits would be the priority area for the juice launch in India. Presently Pepsi has one juice brands Slice, which are presently mango juice brands. Pepsi Co. also has bottling lines in most of the plants.
Developing Sports:
Pepsi today is one of the main sponsors related activities in India and has counted to promote upcoming new players Cricket, Hockey and Football. In Mohali, Pepsi has developed a Pepsi Cricket Academy, which would develop over 500 Young Cricket enthusiasts in next five years. Similarly Pepsi cricket coaching camps and clinics are held to coach young boys in North & South.
Community Relation:
Most of the bottling plants are located in backward areas, thereby giving huge employment opportunities in these areas. Pepsi as a responsible company undertakes social projects in and around the bottling plants. These include supports to the education centers, sponsors, inoculation camps, providing free
14
health checkup, initiating sanitation, drives, promoting literacy drives and helping village to put up bus shelter etc
MISSION
To put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.
VISION
To be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce 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.
15
16
17
Vision
Being the best in everything we touch and handle.
Mission
Continuously excel to achieve and maintain leadership position in the chosen businesses; and delight all stakeholders by making economic values in all corporate functions.
Their Success
Production of innovative, high quality retail branded beverages combined with world-class packaging. Driven by a management team with a relentless focus on achieving superior customer service, driving earnings improvement and increasing shareholder value.
Their People
At RKJ Group they are creating an environment where our employees enjoy a greater degree of empowerment both individually and in their work teams. Their employees are equipped with the necessary tools, training and management backup for strong performance and accountability, as well as in an environment of open communication and involvement.
18
y y y y y y y y y y y y y y y y y
19
20
7 Up
22
23
RESEARCH METHODOLOGY
The objective of the research is to study and describe the functioning of ASDOS system and based on that analysis find out the market picture of PEPSICO in Gaziabad market, so for it, the research design used is Descriptive Research as descriptive is a type of conclusive research that has its major objective the description of factors and characteristics.
RESEARCH DATA SOURCE:The data source in the research is from both type of data source i.e. Primary and Secondary data. Secondary data is that data which is collected outside the industry. Sources are various websites and articles as for literature review and also primary data have been collected from within the industry. The Primary Data so collected is a kind of Quantitative Research as it seeks to quantify the data and, typically, applies some from statistical analysis.
DATA SOURCE
Secondary Data
24
Questionnaire checking
Editing
Data Cleaning
25
Objective
To understand ASDOS. To analyse the KPI report, Non buyer list and Market penetration with the use of ASDOS. To obtain the explanation of ASDOS reports.
26
27
THE STUDY
28
Shastri Nagar
High Strike rate was observed Good sell of both PET as well as that of RGB Demand of Tropicana is very low Nimbooz are not selling much Sell of Pepsi, Mountain Dew, Slice, Mirinda is good, that of 7up is average. Aquafina is selling average
Highway 2
Good Strike rate was observed Pepsi, Mountain Dew and Slice are selling good, 7 up and Mirinda are selling average Deamand of RGB was high in comparison to PET Nimbooz and Tropicana is again selling less
29
Highway 1
Low strike rate There are 6 colleges on that road but due to summer vacation all of them are closed so sell is effected Also because there is a construction work of a drain is going on, almost 15 shops are closed. Pepsi and Mountain Dew are selling high there but Slice, Mirinda, 7up are less in demand Nimbooz and Tropicana is not selling much. Aquafina is selling good
Kavi Nagar
Less Strike Rate because of residents are gone for vacations and schools are closed Tropicana and Nimbooz are selling less
Gandhi Nagar
Less Strike Rate Coca Cola products are giving good competition in some parts of the area
G.T. Road
Good Strike rate RGB is selling in good quantity
30
Demand of PET (1ltr) is high in some areas Though Railway Station and Bus Stand are separate routes the areas was covered on both of the days of observation under this route
General Observation
Almost in all areas Nimbooz is not much in demand reason could not be indentified. Aquafina is not able to give good competition to local packaged water because of its high cost and less profit margin to shop owners.
Selected Routes For StudyG.T. Road Gandhi Nagar Highway 1 Raj Nagar
31
32
RGB Non Buyer List GT RoadCustomer Name God Tea Stall Gol Hatti Jain Confectioner Kaka Confectioner Kamal Photostate Pandit Hotel Pramod Pan Praveen General Store Raja Juice Raju Tea Shiva Confectioner Shivam Bhojanalaya Shyam lal Pan Remarks Purchasing Purchasing Monopoly Coke Purchasing Purchasing Purchasing No Shop No Shop Purchasing No Shop Purchasing
PET Non Buyer List GT RoadCustomer Name Abdul Pan God Tea Stall Gol Hatti Himanshu STD Jagdamba Sweets Jain Confectioner Lucky Tea Stall Mehta Confectioner Muskan Confectioner New Bharat Bakery New Sangam Pan Om General Store Om Prakash Confectioner Pandit Hotel Perfect Super Store Pramod Pan Remarks Shop Closed Purchasing Purchasing Purchasing Wrong Route Coke Monopoly Dealer Purchase Coke Monopoly Wrong Route Purchasing Coke Monopoly No sell of PET Less Sell of PET No sell of PET Dealer Purchase Purchasing
33
Visi Non Buyer List GT RoadCustomer Name Abdul Pan Anil STD Arun STD Ashok Provisional Store Dharampal Kirana Dinesh Pan Dolfin Confectioner Himanshu STD Kaka Confectioners Lettile Caf New Bharat Bakery NewSangam Pan OmPrakash Confectioner Pandit Hotel Shivam Sweet Silver City TAPS Tyagi Bhojanalaya Remarks Closed Name changed Purchasing Purchasing Closed Not Salling Monopoly Coke Purchasing Dealer Purchase Purchasing Purchasing Monopoly Coke Name changed Purchasing Dealer Purchase Wrong Route Closed No Sale
34
35
RGB Non Buyer List Gandhi NagarCustomer Name Gaurav Provisional Store Jaina's Confectioner MK St Store Mukesh Tea Stall NareshKumar Natraj Confectioner Nav Jyoti Neha Provisional Store Pal General Store Pandit tea Stall Pawan Juice Prakash Mishthan Bhandar Radha Kirana Store Rahul Kirana Store Rohan STD ShivDairy Shiv Juice Corner Sri Bala Ji Store Sri Krishna store Remarks
Purchasing
PET Non Buyer List Gandhi NagarCustomer Name Neha Provisinal store Pal General Store Pandit Tea Stall Pawan Juice Prakash Mishthan Bhandar Radha Kirana Store Rahul Kirana Store Rohan STD Shiv Dairy Remaks Less Sell Refrigerator Problem Purchasing Purchasing Purchasing Purchasing Dealer Purchase Purchasing No Sell of Cold Drink
36
Shiv Juice Corner Snow Ball Shri Bala Ji Store Shree Krishna Sweets
Purchasing
Visi Non Buyer List Gandhi NagarCustomer Name MK St.Store Mittal Provisional store Mukesh Tea stall Pal general Store Remarks
Refrigerator
37
38
RGB Non Buyer List Raj NagarCustomer Name Model Shop 1 Ram Kumar Jain Store Shivam Hospital Shree Balaji Sweets Shiv Provisional Store 2 Model Shop 2 Remarks Dealer Purchase Purchasing Purchasing No Sale Closed Dealer Purchase
PET Non Buyer List Raj NagarCustomer Name Shivam Atta Chakki Shadi Lal Tea Satish Provisional Store Tralat Plaza Model Shop2 Remarks Closed Purchasing Purchasing Purchasing Dealer Purchase
VISI Non Buyer List Raj NagarCustomer Name National Confectionary Sanskar Restorent Satterdlue Remarks Less Sale Closed Purchasing
39
Highway 1 Area
Customer Executive- Sushil Kumar Route Agent- Narendra Glass Non Buyer- 5 PET Non Buyer- 6 VISI Non Buyer-3
40
RGB Non Buyer List Highway 1Customer Name Drizzling Land KIET College R K Communications Ramesh Provvisional Store Shiv Shankar Remarks No Sale No Sale Closed College Vacations College Vacations
PET Non Buyer List Highway 1Customer Name Chudhary Tea Bajrang Bali Restorent Delip Tea Stall Delli Darbar KIET College Mahima tea Remarks Purchasing Purchasing Closed Closed Vacations No Sale
VISI Non Buyer List Highway 1Customer Name R K Communication Relax Food Victoria Restorent Remarks Closed Closed Closed
41
Visible Problems in Ghaziabad Pepsi distribution encountered during training periodBill cutting isnt properBills are not cut properly i.e. product wise, this effects the LPSC value of KPI report. Staff ProblemBecause of lack of helpers RAs have to do helpers job as well. Lack of VISI staff. On some routes Merchandisers are not present. Lack of maintenance staff of trucks, sometimes the breakdown effects the sale. Lack of Schemes on Nimbooz. Aquafina is not able to compete with local packaged water reason being less margin on Aquafina for shopkeepers. Dealer SellingShop owners prefer to purchase PET from dealers because of which the direct sale of PET gets effected. Refrigerator issueMaintainance of Refrigerators is a big concern. Because of slow maintenance process in some areas shop owners refuses to purchase products. Low voltage range of refrigerators effects cooling in those areas where the voltages are low. In some areas position of refrigerators is not good (i.e. they are not visible to customers, some times too deep inside the shops).
42
RAs should be encouraged to cut the bills at the time of delivery not in the evening. New staff should be hired to fill the vacancies. Schemes on Nimbooz and Aquafina should be launched as purchasing motivation for the shop owners. Refrigerator issues should be resolved as quick as possible.
43
BIBLIOGRAPHY
44
BIBLIOGRAPHY
1. C. R. KOTHARI 2. KOTLER PHILIP
WEB SITES
www.rkjgroup.com www.pepsico.co.uk www.pepsico.co.in www.google.com www.wikipidia.com
45
ANNEXURE
46
QUESTIONNAIRE
1. Shop Name 2. Locality 3. Product Purchased Only PepsiCo Only Coke Cola Both 4. Type of Packing Purchased-(Please Specify a reason for non Purchase) RGB PET Both (Please Specify a reason for non Purchase) ............................................................... 5. Whether Product Displayed Yes No 6. Refrigerator Provided By PepsiCo Coke Cola Both 7. Refrigerator is working Fine Issue with refrigerator
47
8. Satisfaction with the staff Service Customer ExecutiveHighly Satisfied Satisfied Normal Dissatisfied Highly Unsatisfied Route AgentHighly Satisfied Satisfied Normal Dissatisfied Highly Unsatisfied
48