A PROJECT REPORT ON ADVERTISING STATEGIES OF PEPSI

In partial fulfillment for the course of Post Graduate Diploma in Management In MARKETING-FINANCE
Under the Supervision of: Prof. SANDEEP AGARWAL ASSOCIATE DEAN Submitted By: JYOTI KUMARI Batch: PGDM 2010-2012 Roll No: 1012101014

MANGALMAY INSTITUTION OF MANAGEMENT STUDIES (Gr. Noida)

Page

DECELARATION
I hereby certify that the survey, data collection and analysis work related to Project Report on "ADVERTISING STRATEGY OF PEPSICO" submitted by me for the partial fulfillment of requirement for the Post Graduate Diploma In Management of MANGALMAY INSTITUTION OF MANAGEMENT STUDIES (Gr. Noida). This has not been submitted to any other university/ institution for the reward of any degree/diploma certificate. We further declare that all facts and figures furnished in this project report are the outcomes of our own intensive research and findings. This report is based on our personal opinion hence cannot be referred to legal purpose.

SUBMITTED BY:JYOTI KUMARI Roll no-1012101014 (PGDM,MIMS) Batch :-2010-2012

Page

ACKNOWLEDGEMENT
With immense pleasure, I would like to give special thanks to my faculty for giving me a great opportunity to associate myself to the worlds largest soft drink company and to carry out my project titled "ADVERTISMENT STRATEGY OF PEPSI".

I am sincerely thankful to ASSOCIATE DEAN, Prof. SANDEEP AGARWAL (Faculty Guide) under whose guidance I have successfully completed this project and the time spend with him has been a great learning experience. I think him for his constant encouragement, warm response and for filling every gap with valuable ideas that has made this project successful.

I would also give special thanks to all the outlet holders to whom, I visited for their support, information, co-operation, advice to complete my project details would also give my sincere thanks to all the staff and the members of PEPSICO HOLDING INDIA LIMITED.

Thanking You Jyoti Kumari

PREFACE Page
3

The PGDM programme is well structured and integrated course of business studies. The main objective of practical training at PGDM level is to develop skill in student by supplement to the theoretical study of business management in general. Industrial training helps to gain real life knowledge about the industrial environment and business practices. The PGDM programme provides student with a fundamental knowledge of business and organizational functions and activities, as well as an exposure to strategic thinking of management. In every professional course, training is an important factor. Professors give us theoretical knowledge of various subjects in the college but we are practically exposed of such subjects when we get the training in the organization. It is only the training through which I come to know that what an industry is and how it works. I can learn about various departmental operations being performed in the industry, which would, in return, help me in the future when I will enter the practical field. Training is an integral part of PGDM and each and every student has to undergo the training for 2 months in a company and then prepare a project report on the same after the completion of training. During this whole training I got a lot of experience and came to know about the management practices in real that how it differs from those of theoretical knowledge and the practically in the real life. In todays globalize world, where cutthroat competition is prevailing in the market, theoretical knowledge is not sufficient. Beside this one need to have practical knowledge, which would help an individual in his/her carrier activities and it is true that Experience is the best teacher

Page

CONTENTS

Sr.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Content Executive Summary Objective Introduction of Project History of Company Company Profile Research Methodology Data analysis and interpretation Finding & Suggestion Conclusion Bibliography Questionnaire

Page No. 6 7-8 9-10 11-12 13-34 35-36 37-45 46-49 50 51 52-54

Page

EXECUTIVE SUMMARY:Advertising is very important tools from the market mix, no one company could ignore because it is very useful for promoting product features as well as delivering relevant information to people. Without proper advertising strategy company could competitive advantage. As many research have been done over this topic. According to various studies it has been observed that those companies could compete over the competitors, those adopt effective market strategy. Today is age of competition, every company want to generate high sales revenue and more and more customers as well, so it can only possible for adopting properly advertising method. In Pakistan Coca cola and Pepsi both are market leader, hence this study is also going to conduct over both company advertising strategy. The reason behind this study to analyze to find out how advertisement affects the customer decision, and what the customers perceptions towards particular company advertisement are. In the next coming page, you will see that comparison about both companies advertising strategies how they use their ads for attract the customers towards its product. For core result and good finding a survey has been conduct for gathering data from the customers.

Page

Questionnaires tools have been used for collecting data from the customers. For analysis and interpretation we have used frequency table with graphically presentation.

OBJECTIVE OF THE PROJECT REPORT:

The main objective of this project is to know the advertising strategies of PepsiCo. Products of the company.

The next objective of this projects is to advertise the various To find out the present status of PepsiCo at the retail outlets in the area. Its helps to know the distribution and marketing strategy of the company. penetration. To collect data from retailers for the activation of new channels.

To find out available opportunities in the market by finding gaps in competitors

Find out the ways to increase the sales of PepsiCo. To study the presale concept of the Pepsi. To study the retailers satisfaction.

To enhance the market share of the company.

Page

SCOPE OF THE STUDY: By this study company can know its growth. This study helps the company to know their actual position in the market.

It helps to find out the promotion activities/advertising activities of the company. The study also helps in the evaluation of the market strategy.

This study ensures the availability of the product in the market.

It helps to maintain the outlets in a well-designed way to attract the consumers.

Page

INTRODUCTION:BEVERAGES:
Beverage industry is one of the fast growing industries in India .it can be divided into two sections i.e. carbonated and non-carbonated. The carbonated drinks that can be further classified into cola, lemon orange, mango and apple segments. Marketing includes all the activities like promotion, distribution, advertising etc. To fulfill all the segments of consumers. Marketing is also to convert social needs into profitable opportunities. So this topic provides all the essentials to theoretical knowledge with practical knowledge and to inculcate the efficiency. it is also requirement for the company to improve their service and product quality for achieving their ultimate goal. As far as the soft drink market is concerned, it is facing the cut throat competition because of the availability of a large number of indirect as well as direct competitors. Single company offers the soft drink to the market in different taste and flavors. In this industry entire range of flavors are produced by other competitors also. More often it becomes impossible to differentiate between the same flavors of two different brands, when served in plane container, range also. All these factors together make the situation complicated. Besides both corresponding brands have the similar price.

Page

BEVERAGES:SOFT DRINKS INDUSTRY IN INDIA

BEVERAGES

Alcoholic

Non-Alcoholic

Carbonated

Non-Carbonated

Cola

Non-Cola

Non-Cola

Page

10

COMPANYS HISTORY

Pepsi Cola Company:Caleb Bradham, a New Bern, N.C. druggist who first formulated Pepsi-cola, founded Pepsi Co.s beverage business at the turn of the century i.e. in the year 1890. A young phannacist Called Bradham began experimenting in 1890 as a cure for dyspepsia (indigestion) with combination of spices, 1 juices and syrups and created a refreshing new drink to serve his customer. He succeeded beyond all expectations as he invented the new beverage now known around the world as "PEPSICOLE" In 1902, he launched the Pepsi Cola Company in the back room of pharmacy, and applied to U.S. patient office for Trade Mark. The business began to grow and on June 16,1993, Pepsi-Cola trademark was officially registered with U.S. office. Today consumers spend about $31 billion on Pepsi-Cola beverages. Brand Pepsi and other PepsiCola products-including Diet Pepsi, 7UP Pepsi Blue, Mountain Dew, slice and MugvrandsAccount for nearly one third of total soft drink sales in the United States, a consumer marker totaling about $56 billion.

Page

11

In 1992 Pepsi-Cola formed a partnership with Thomas J. Liption Co. Today Liption is the biggest selling ready to drink tea brand in the United States. Outside the United States, Pepsi-Cola Company's soft drink operations include the business of even- up International; Pepsi-Cola beverages are available in about 170 countries. Pepsi-Cola began selling it products internationally in 1934 with its operations in Canada. Operations grew rapidly beginning in the 1950s. Today Pepsi-Cola products account for about a quarter of all soft drinks sold internationally. In addition to brands marketed in the United States, Major products include Miranda and Pepsi Max. Pepsi-Cola provides advertising, marketing, sales and promotional support to Pepsi-Cola bottles and food service customers. This includes some of the world loved and most recognized advertising. New advertising and exciting promotions keep Pepsi-Cola brands young.

In 1940, history was made when the first advertising jingle was broadcast nationally. The jingle was "Nickel Nickel" an advertisement for Pepsi Cola that referred to the price of Pepsi and the quantity for that price. "Nickel Nickel" became a hit record and was recorded into fifty-five languages. In 1964, Diet Pepsi was introduced.

THE BUSINESS PepsiCo. Has a worldwide operation in 3 fields Non Alcoholic beverage Snack Foods. Fruit Juices

Page

12

PESPI COMPANY PROFILE:PepsiCo is a world leader in convenient snacks, foods and beverages, with revenues of more than $39 billion and over 185,000 employees.

PepsiCo is a world leader in convenient snacks, foods and beverages, with Revenues of more than $39 billion and over 185,000 employees. The company consists of PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB) and PepsiCo International (PI). PAF includes Frito-Lay North America, Quaker Foods North America and all Latin America food and snack businesses, including Sabritas and Gamesa businesses in Mexico. PAB includes PepsiCo Beverages North America and all Latin American beverage businesses. PI includes all PepsiCo businesses in the United Kingdom, Europe, Asia, Middle East and Africa. PepsiCo offers product choices to meet a broad variety of needs and preference -- from fun-foryou items to product choices that contribute to healthier lifestyles.

Page

13

PepsiCos mission is To be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.

Shareholders:PepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange in the United States. The company is also listed on the Chicago and Swiss stock exchanges. PepsiCo has consistently paid cash dividends since the corporation was founded.

Corporate Citizenship
At PepsiCo, we believe that as a corporate citizen, we have a responsibility to contribute to the quality of life in our communities. This philosophy is expressed in our sustainability vision which states: PepsiCos responsibility is to continually improve all aspects of the world in 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.

Page

14

PepsiCo Headquarters
PepsiCo World Headquarters is located in Purchase, New York, approximately 45 minutes from New York City. The seven-building headquarters complex was designed by Edward Durrell Stone, one of America's foremost architects. The building occupies 10 acres of a 144-acre complex that includes the Donald M. Kendall Sculpture Gardens, a world- acclaimed sculpture collection in a garden setting. The collection of works is focused on major twentieth century art, and features works by masters such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenberg. The gardens originally were designed by the world famous garden planner, Russell Page, and have been extended by Franois Goffinet. The grounds are open to the public, and a visitor's booth is in operation during the spring and summer.

MISSION:We aspire to make PepsiCo the worlds premier consumer Products Company, focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive to act with honesty, openness, fairness and integrity. The behaviors that will help us achieve our mission are articulated in our Values Statement.

VISION:As we stand at the crossroads of the new millennium, it's time to eradicate our focus and energy single-mindedly to our Vision. The Vision to be the Best. And what is that vision?

Page

15

"To be the best consumer products company in the eyes of our suppliers, consumers, employees and shareholders."

PepsiCo. Has a worldwide operation in 3 fields: Non Alcoholic beverage Snack Foods. Fruit Juices

PepsiCo India Holdings Private Limited:-

PepsiCo, the world leader in convenient foods and beverages, welcomes you to a community of over 157,000 employees spread over more than 200 countries and territories across the globe with annual revenues in excess of $33 billion. As part of its sustainable development initiatives, PepsiCo India has been a committed leader in the promotion of rain water harvesting, water conservation recycling and the reduction of effluent discharge. Thus, we seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.

About Chairman:Indra Nooyi is Chairman and Chief Executive Officer of PepsiCo. Mrs. Nooyi leads one of the worlds largest convenient food and beverage companies, with 2007 annual revenues of more than $39 billion. The company operates in nearly 200 countries, and employs more than

Page

16

185,000 people worldwide. Its principal businesses include: Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. The PepsiCo portfolio includes 18 brands that generate $1 billion or more each in annual retail sales. PepsiCos commitment to sustainable growth, defined by Mrs. Nooyi as Performance with Purpose is focused on generating healthy financial returns while giving back to communities the company serves. This includes Meeting consumer needs for a spectrum of convenient foods and beverages, replenishing the environment through water, energy and packaging initiatives, and supporting its employees through a diverse and

COMPANY FACTS:Company Name: PepsiCo India Holdings Private Limited Industry: Food & Beverage / Catering / Restaurant Type of Company: Private Limited Company, Foreign Based Company Location: DLF Corporate Park, S Block, Qutab Enclave, Phase III Gurgaon 122 002

Page

17

PRODUCT PROFILE:Product and Services:PepsiCos mission is to be the worlds premier consumer Products Company focused on convenient foods and beverages. The company seeks to produce healthy financial rewards to investors as it provides opportunities for growth and enrichment to its employees, business partners and the communities in which it operates. PepsiCo now has many global brands, which include: Pepsi-Cola, Diet Pepsi, Mountain Dew (Diet & Regular), Gatorade, Walkers, Lays Potato Chips, Doritos Tortilla Chips, Tropicana Pure Premium Orange Juice, 7-UP (Outside USA), Cheetos Cheese Flavored Snacks, Quaker Cereals, Aquafina Bottled Water, Ruffles Potato Chips, Mirinda, Tostitos Tortilla Chips, Sierra Mist (Diet & Regular) and Fritos Corn Chips. Culture and Values

Page

18

BRAND:Various products of these Brands:Our products can be found in nearly 200 countries around the globe. Take a closer look at the brands that make up the PepsiCo portfolio and learn more about the products they offer.

Pepsi-Cola Pepsi has been bringing fun and refreshment to consumers for over 100 years. Learn more about our flagship brand and the broad spectrum of beverages it offers worldwide.

Frito-Lay Employing over 48,000 people and bringing in over $11 billion of business, Frito-Lay invigorates PepsiCo's portfolio of products with plenty of good food and 'good fun'

Tropicana Tropicana, the strongest name in juices, extends the PepsiCo portfolio of brands with plenty of nutritious, high-quality flavor.

Page

19

Quaker Quaker's power-packed line of popular brands expands our portfolio with a wide range of healthy food choices.

Gatorade Available in over 80 countries, Gatorade's line of performance drinks adds over 40 years of rehydration and sports nutrition research to the PepsiCo portfolio.

ADVERTISING STRATEGIES:(*)DEFINATION OF ADNERTISING STRATEGY:

An advertising strategy is a plan to reach and persuade a customer to buy a product or a service. The basic elements of the plan are 1) the product itself and its advantages, 2) the customer and his or her characteristics, 3) the relative advantages of alternative routes whereby the customer can be informed of the product, and 4) the optimization of resulting choices given budgetary constraints. In effect this means that aims must be clear, the environment must be understood, the means must be ranked, and choices must be made based on available resources. Effective product assessment,

Page

20

market definition, media analysis, and budgetary choices result in an optimum plannever the perfect plan because resources are always limited

Evolution of Strategies
A closer look at the brand identities of each of the brands helps assess how successful their advertising campaigns have been in creating a brand image in tune with it, while being sensitive to the value system of the target audience. PepsiCos Campaign The analysis of Pepsi, 7 UP and Mountain Dew from the portfolio of PepsiCo puts forth some interesting aspects about the evolution of these brands. Pepsi was one of the first products to Indian markets after the economic reforms of 1991. Pepsi Pepsi began with the Yehi hai Right Choice Baby campaign, which has been one of the most memorable campaigns of the brand, featuring celebrity endorsers such as Shah Rukh Khan among others. The focus, as is clearly evident, is on the product with the youth as its target segment. Yeh Dil Mange More and Yeh Pyaas Hai Badi were some of the later campaigns. Yeh Dil Mange More campaign was again a great success, having balanced the emotional as well as the functional appeal of the product. Featuring Sachin Tendulkar and many other leading stars at that point of time, this was also one of the longest campaigns carried out by Pepsi. The company however failed to maintain the trend and leverage it. Instead of moving on to a complete emotional appeal platform, the company decided on a product based promotion campaign. Though there is still some amount of emotional appeal to its campaigns, the principal focus is on the product - it being a preferred thirst quencher.

Page

21

7 UP In its early days, 7 UP inherited the global Fido-Dido campaign for promotion in India as well. However, with changing times and a contextual difference in India, a much more focused campaign was required. This led to the Keep It Coolcampaign, which was targeted primarily at the youth and the teenager segment. Hence the appeal was at a more subtle, emotional level, which was meant to convey a potential lifestyle statement. The recent campaign of Bheja Fryessentially leverages on the same emotional appeal where the Keep It Cool campaign has been somewhat tweaked to have a local appeal.

Mountain Dew Mountain Dew is the latest entrant in the product portfolio. This product too has the appeal of being the drink of a daredevil or the No Fear personality. The campaigns launched include Do the Dew and Dar Ke Aagey Jeet Hai. The initial campaign was unclear in terms of its appeal and the target segment, as a result of which the brand suffered some jolts in the beginning. However, the latest campaign captures the No Fear or the Macho Man image. In this sense, the brand directly competes with Thums Up from the Coca Cola Stable

ADVERTISING STRATEGIES OF PEPSICO:Pepsi advertising

Advertising is a common means used by many organizations or companies all over the world to make their products or services well know and are easier to be sold. Every year many hundreds of advertisements are published throughout the mass media such as on billboards, on signs, on radios, ration in newspapers, on television and internet, which are the main instruments, that we use and see every day. Although, there are not many

Page

22

successful products and not everyone remembers them but PEPSI advertisings are different because most of their customers are repeat consumers. Therefore, this report will discuss the advertising strategies of PEPSI and how it stands as one of the leaders of the cola beverage industry. For several years the main consumers of PEPSI were teenagers and young adults. Most of its advertisings used teenager presenters or superstars who were hero of young people. Nowadays PEPSI wants to gain more market

share so it is extending its market by produce many rang of product to suite every groups
of consumer such as tea, coffee, water, energy drink and sport drink. They also present many kind of taste of its products that make customers have more choice

ADVERTISING & PUBLICITY

Pepsi Co. is one of the biggest and spenders in India. It is also one of the biggest global ad

Page

23

spenders. It has long a list of endorsers from pop star Ricky martin to file stars Shahrukh Khan, Amitabh Bacchan etc. & Cricket stars Sachin Tendulkar, V.V.S Laxman, Harbhajan Singh etc. Hindustan Thompson Associates, the big gets advertising agency of India has the account of Pepsi Co. is known for its board cast advertising but it also spends a lot in non-board cast advertising i.e. hoarding, banners, posters stickers, specialties, hangar,dealer board, glow signboards, wall painting and newspaper..

SUSTAINABLE ADVANTAGE:Three major sustainable advantages give PepsiCo a competitive edge as we operate in the global marketplace. Three major sustainable advantages give PepsiCo a competitive edge as we operate in the global marketplace: 1. 2. 3. Big, muscular brands; Proven ability to innovate and create differentiated products; and Powerful go-to-market systems.

Making it all work are our extraordinarily talented and dedicated people. When we take these competitive advantages and invest in them with dollars generated from topline growth and cost-saving initiatives, we sustain a value cycle for our shareholders.

Page

24

In essence, investing in innovation fuels the building of our brands. This in turn drives top-line growth. Dollars from that top-line growth are strategically reinvested back into new products and other innovation, along with cost-savings projects. Thus, the cycle continues.

ADVERTISING WITH BRAND AMBASSADER: Bollywood actor Ranbir Kapoor one of the brand ambassadors of Pepsi, ..

PepsiCo terminated their long term association with their brand ambassador ...(JOHN)

PepsiCo has roped actress Deepika Padukone as its brand ambassador

Page

25

 Tiger Woods have been playing the role of brand ambassadors to drive ...

Pepsi PepsiCo is dropping Indian cricketers Sourav Ganguly, Rahul Dravid as brand ...

BRAND SLOGAN:Slogans

19391950: "Twice as Much for a Nickel" 1950: "More Bounce to the Ounce" 19501957: "Any Weather is Pepsi Weather" 19571958: "Say Pepsi, Please"

Page

26

19581960: "Don't be a Tramp, Buy a Can" Zane 19611964: "Now It's Pepsi for Those Who Think Young" (jingle sung by Joanie 19641967: "Come Alive, You're in the Pepsi Generation" (jingle sung by Joanie 19671969: "(Taste that beats the others cold) Pepsi Pours It On". 19691975: "You've Got a Lot to Live, and Pepsi's Got a Lot to Give" 19751977: "Buy a can 50p" 19771980: "Join the Pepsi People (Feeling Free)" 19801981: "Catch That Pepsi Spirit" (David Lucas, composer) 19811983: "Pepsi's got your taste for life" 1983: "Its cheaper than Coke!" 19831984: "Pepsi Now! Take the Challenge!" 19841991: "Pepsi. The Choice of a New Generation" (commercial with Michael

Sommers)

Sommers)

Jackson and The Jacksons, featuring the Pepsi version of "Billie Jean", "Bad" and "Black or White". "Black of White"'s was promoting the Dangerous World Tour.)

19841988: "Diet Pepsi. The Choice of a New Generation" 19881989: "Diet Pepsi. The Taste That's Generations Ahead" 19891990: "Diet Pepsi. The Right One" 19891992: "Diet Pepsi. The Taste That Beats Diet Coke" 19861987: "We've Got the Taste" (commercial with Tina Turner) 19871990: "Pepsi's Cool" (commercial with Michael Jackson, featuring Pepsi version 19901991: "You got the right one Baby UH HUH" (sung by Ray Charles for Diet Pepsi) 19901991: "Yehi hai right choice Baby UH HUH" (Urdu - meaning "This is the right 19911992: "Gotta Have It"/"Chill Out" 1992:"The Choice Is Yours" 19921993: "Be Young, Have Fun, Drink Pepsi" 19931994: "Right Now" (Van Halen song for the Crystal Pepsi advertisement) 19941995: "Double Dutch Bus" (Pepsi song sung by Brad Bentz) 1995: "Nothing Else is a Pepsi"

of Bad)

choice Baby UH HUH") (Pakistan)

Page

27

19951996: "Drink Pepsi. Get Stuff." Pepsi Stuff campaign 1996:"Change The Script" 19961997: "Pepsi: There's nothing official about it" (During the Wills World Cup 19971998: "Generation Next" (with the Spice Girls) 19981999: "Its the cola" (100th anniversary commercial) 19992000: "For Those Who Think Young"/"The Joy of Pepsi-Cola" (commercial 19992006: "Yeh Dil Maange More!" (Hindi - meaning "This heart asks for more") 2003: "Its the Cola"/"Dare for More" (Pepsi Commercial)

(cricket) held in India/Pakistan/Sri Lanka)

with Britney Spears/commercial with Mary J. Blige)

(India)

20062007: "Why You Doggin' Me"/"Taste the one that's forever young" (Mary J. Blige) 20072008: "More Happy"/"Taste the once that's forever young" (Michael Alexander) 2000present: "Pepsi ye pyaas heh bari" ((Urdu) meaning "There is a lot of thirst" 2008: "Pepsi Stuff" Super Bowl Commercial (Justin Timberlake) 2008: "epsi is #1" v commercial (Luke Rosin) 2008present: "Something For Everyone" 2009present: "Refresh Everything"/"Every Generation Refreshes the World" 2009present: "Yeh hai youngistaan meri jaan" (Hindi - meaning "This is our young 2009present: "My Pepsi My Way"(Pakistan) 2009present: "Refresca tu Mundo" (Spanish - meaning "Refresh your world") (Spanish 2010present: "Every Pepsi Refreshes The World" 2010present "Pepsi. Sarap Magbago." (Philippines - meaning "Its nice to change") 20102011 "Badal Do Zamana" (Urdu - meaning "Change The World" by CALL)

(Pakistan))

country my baby")

Spoken countries in Latin America)

(Pakistan)

Page

28

2010present: "Pode ser bom, pode ser muito bom, pode ser Pepsi" (Can be good, can be 2011present: "Change the game" (India, Bangladesh & Pakistan for the 2011 Cricket 2011present "Dunya Hai Dil Walon Ki" (Pakistan-meaning World is For Lovers by Ali 2011present "Ici, c'est Pepsi" (Qubec-meaning Here, it's pepsi) 2011present "Summer Time is Pepsi Time" 2011present "Born in the Carolinas"

very good, can be Pepsi) - Brazil

World Cup)

Zafar)

PEPSI GEARS UP FOR FRESH ADVERTISING STRATEGY:Mumbai, Jul 14

With the swinging fortunes of cricket stars, PepsiCo India is gearing up to launch a brand new advertising campaign for Pepsi with out any star endorsers. Currently, PepsiCo India has twelve star endorsers from Bollywood and the Indian cricket team. Pepsis new campaign will be a consumercentric advertising campaign without any celebrities, informed industry sources. Celebrities may come and go but brands are forever, seems to be PepsiCos new motto. Incidentally, PepsiCo has not yet renewed Sachin Tendulkars contract which expired in May this year. According to industry sources, PepsiCo is now shifting its marketing focus to MS Dhoni, the highest paid IPL player. The company will bring in MS Dhoni to the centre space from side lines. Of course, PepsiCo will make Dhoni wear some decent clothes to erase his Lungi-clad image, said Prahlad Kakar, a leading ad film maker in Mumbai. Remember Pepsi ads featuring Dhoni, captain of the Chennai... Super Kings team?

Page

29

Enthused by the response to Dhonis Mind it ads, the company will now project Dhoni as its brand icon in the next few months, predict industry analysts. Young cine stars Deepika Padukone and Ranbir Kapoor now star in Pepsi Youngistan campaign. Very soon, we may see Dhoni sharing the screen space with Shar Rukh Khan in Pepsi ads, added analysts.When contacted by FE, PepsiCo India declined to comment on its advertising plans.

On PepsiCos shift in strategy, Ramesh Narayan, veteran advertising professional based in Mumbai said: I think every brand needs to keep in mind its profile. And Pepsi has always stood for the youth. I do not think it is any comment on Tendulkar as a player but they need to refresh their stable of sports person with younger people. In sync with its new strategy, PepsiCo has roped in Ishant Sharma and Rohit Sharma to feature.. in its Yeh hai Youngistan Meri Jaandumping cricket stars Dravid and Ganguly. Meanwhile, Frito Lay, PepsiCos snack foods arm has revamped its retail strategy by offering 33% extra in all Lays packs -- at no extra cost. For Kurkere, it is offering 20% extra. In fact, PepsiCos pricing strategy is quite effective in todays price-sensitive markets, said a leading retailer in Mumbai..

PEPSI GLOBAL STATEGY:-

When the "You're in the Pepsi Generation" advertising campaign launched in 1963, it may have been the first time a brand was marketed primarily with an association to its consumers' aspirational attitudes. A decidedly youth-oriented strategy, the campaign hoped to hook young Baby Boomers while they were still young. In 1984 Pepsi launched another long-running campaign, "The Choice of a New Generation," and in 1997 they debuted the "Generation Next" concept. The newest campaign slogan, introduced this year, is "More Happy," which definitely coincides with one concrete example of "more" in the packaging of Pepsi products todaymore

Page

30

designs. Many more. At least 35 distinct design ideas will grace the packaging of Pepsi's cans and bottles this year alone, and this design strategy may continue indefinitely. Though not "generational" in word, the campaign certainly has a youth-oriented feel with package designs, advertising, and websites that are fun and playful. PepsiCo worked closely with Peter Arnell and Arnell Group, based in New York City, to devise a comprehensive new strategy that would connect with Pepsi's core consumers. Arnell reinvented the Pepsi package as a meaningful and appealing communications tool for the latest generation of youth that are not overwhelmed by media, music, or digital distractions.

Distribution Channel and strategies

Marketing channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption (Philip Kotler)

Distribution (Place) Strategies

Product availability where and when customers want them. Involves all activities from raw materials to finished products

Basic Channels of Distribution

Page

31

Manufacturers/products

Place
Agents/brokers

Wholesalers/distributors Retailers Retailers

Consumers and organizational end users

Distribution Objective
Minimize total distribution costs for a given service output Determine the target segments and the best channels for each segment Objectives may vary with product characteristics e.g. perishables, bulky products, non-standard items, products requiring installation & maintenance

DISTRIBUTION CHANNELS (Pepsi)

There are two marketing channels that involve in the transfer of product from the producer to the consumer. The intermediaries involved in the transfer are distributors and retailers.

DISTRIBUTORS
Distributors are appointed agents of the company who make orders to the company by paying in

Page

32

advance through drafts, stock the products in their godowns and supply them to outlets through their fleet of delivery was and a team of salesmen and drivers. They are allowed to sell to company's product to the retailers in a specified area. The company divides this area into routes. Each route is covered by one unit i.e. one de livery van, one salesman one driver, one helper etc. These units and godown are their main investment. Distributors have to invest in empty bottles and crates too, so that they can maintain a specified quantity of reserve stock and facilitate the quick rotation of glass crates. The company evaluates its distributors at the end of the year and makes plans for the next year. Company fixes the targets for each distributor according to market size, last years sales, potential growth assumption based on deposit of empties and installation of coolers at outlets. Distributors are awarded with a fair margin of RS. 10 per crate for their service. This margin could be increased for the sale above the targets, company offers are met with distributors before appointing them. Distributor complying with many schemes and contests for its customers for pushing different brands and giving various services. Company also offers many gifts like, briefcase, and handbags. T-shirts, caps etc.to encourage the distributors. If distributor does not agree with the conditions of these agreement company may reduce the area of distributor or may even terminate the relationship.

RETAILERS:The sale of particular soft drinks depends a lot entirely on retailers wish. Like if he does not keep Aquafina and if his shop is at the prime location then certainly the customer with turn towards other cola drinks like Bisleri, Kinley etc. This all goes to prove that retailer is king. So retailers require special focus from the company. Pepsi Co. helps the retailers to serve its customer better by providing good margin to them for storing its product using merchandising to improve in-store product display, installing cooling equipment in outlets to

make the product ready to drink and offering different promotion schemes to them time to time to push different brands, Pepsi Co. Provides a fair margin of RS. 24 per crate to the retailers.

Page

33

CUSTOMER SERVICE DEPARTMENT:Customer Service is a support function to sales and marketing Department and is concerned with effectively dealing with all customer complaints This starts from: Ensuring Receipt, Documentation and Follow Up of all complaints to be take care of within a specified time in order to achieve the ensure Customer (retailer) distributor and consumer Satisfaction. The Customer complains directly through phone or pager or through the sales team visiting them. Types of Complaints handled are related to: Consumer Signage and Schemes Supply and Service Quality of Product

Cooling Equipment.

RESEARCH METHODOLOGY:-

RESEARCH DESIGN:
A research design is the arrangement of conditioned for collection and analysis of data in a manner that aims to combine relevance to the research purpose which economy in procedure. Main characteristics of research design can be summarized in two words12Anticipation Specification

My research design is ANALYTICAL RESEARCH DESIGN.

Page

34

In my research, researcher has conducted a market Survey of the Marketing strategy of PepsiCo, Gr. Noida.

TYPE OF RESEARCH:SAMPLE SIZE:- 50

The basic types of research are as follows : (*) Analytical Research:

In this research, the researcher has to use facts or information already available these to make, and analyze these to make a critical evaluation of the material.

Source of Information In our research we have made use of both primary and secondary data. PRIMARY DATA: survey Personal interaction

SECONDARY DATA: Articles published in different magazines. Article published in internet. Internet.

Page

35

DATA ANALYSIS AND ITS INTERPRETATION

QUESTION (1)- Type of outlet

Page

36

4% 0 3% 5 3% 0 2% 5 2% 0 1% 5 1% 0 5 % 0 % 1 Qtr st General store Panshop S weet shop Canteen

INTERPRETATION: After the collection of data, we analyse that 40% shopkeeper use general store but 20% use pan shop, sweet shop and canteen.

QUESTION2- Are u deal with the PepsiCo brand?

Page

37

6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 % 1 Qtr st YE S NO

INTERPRETATION:We analyses that 45% shopkeeper dealing in Pepsi 55% not deals in PepsiCo.

QUESTION 3. Are you satisfied with the advertising strategies of PepsiCo Company?

Page

38

9000% 8000% 7000% 6000% 5000% 4000% 3000% 2000% 1000% 0% 1s Qtr 2nd 3rd Qtr4th Qtr t Qtr

hig s fied hil atis s fied atis not s tis a fied hig not hly s fied atis

INTERPRETATION:- After analysis of data we find that 25% persons are highly satisfied but 35% are only satisfied, 25% are not satisfied finally 15% are highly dissatisfied.

QUESTION 4- What do you feel that advertising strategy help Company to capture large
market share?

Page

39

6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 % 1 t Qtr s yes No

INTERPRETATION:After analysis we find that 55% shopkeeper is agree that its capture large market share and 45% are not agree.

QUESTION 5-.. Do you feel that advertising strategy attract the customers most?

Page

40

60% 50% 40% 30% 20% 10% 0% 1 t Qtr s yes No

INTERPRETATION:My data collection interpret that most of people thinking that (55%) advertising strategies attract the customers most but 45% are disagree.

QUESTION6:- Do you feel that advertising strategy affect the quality of brand most?

Page

41

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% yes No

INTERPRETATION:50% satisfied with this statement and 50% are not fully satisfied with this statement.

QUESTION:7- Which medium affect the advertising strategies most?

Page

42

40% 35% 30% 25% 20% 15% 10% 5% 0% 1s t Qtr

T LE ION E VIS MAG INE AZ D P AY IS L T L VIS E E ION WAL P L AINT

INTERPRETATION:After the survey I got the opinion that T.V.(40%) affect the sale most and display(25%), magazines(20%) and wall painting affecting (15%) of the sale of brand (Pepsi).

QUESTION8:- Do you think that aggressive advertising further increase the sales

Page

43

Volume of Pepsi?

50% 40% 30% 20% 10% 0%

Y ES 1st Qtr

Y ES NO NO R Y EPL

INTERPRETATION:50% person believing that aggressive advertising increase the sales and 45% not believing.

QUESTION9:- What kind of promotional activities affect sale mostly of PepsiCo?

Page

44

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1st Qtr

OT E H RS DIS OUNT C PRIZ E FREEBOT L TE

INTERPRETATION:After the survey we got the result that Discount(45%) affect the person more as compare to the Free Bottle(20%), prize(25%) and others(10%)

Page

45

QUESTION10:- . What are your suggestions to improve the sale?

30% 25% 20% 15% 10% 5 % 0 % 1s Qtr t NEW S H C EMS R R EF IGER ETOR AD T V R . IN D ED EP C ED R IT R S EG UPPL Y

INTERPRETATION:After survey my suggestion is that advertising is the most effective tool for increasing sales (30%) then new schemes (25%), credit facility(20%), refrigeration(10%)and reduction in deposit(10%).

FINDINGS:-

Page

46

(*) All Findings of the Survey:

Efficient brands of PepsiCo are not available in outlets. Sales people and delivery persons do not visit the outlets on a regular basis. Advertisement materials are not available in the right time at the right place i.e. Different Channels like Grocery, Convenience, E&D. Many outlet owners have complains on improperly working visicooler i.e. its cooling Capacity is low or its lights are not working. This Survey shows that there is considerable no. of outlets which are not selling Pepsi. Large no. of retailers wants visi coolers. Company does not provide schemes properly. Company does not provide discount properly. Some retailers are not satisfied with service of Pepsi so they are selling coke. All brands of Pepsi are not available so retailers suffer with shortage of stock. The no. of Pepsi is high in comparison of coke but some retailers prefer to sale coke because of shortage of Pepsi and poor distribution channel. Retailers need display & schemes so that they can increase the sale of Pepsi, Retailers need the sign boards to attract customers. The distribution is not so proper or we can say not satisfactory.

Page

47

SUGGESTIONS:Suggestion Regarding Improvement:1. Delivery position should be maintained to get good return from the market.
2.

The company must try to make different brands of PepsiCo available at every retail outlet whether it is large or small, otherwise the consumer may go for substitute.

3. Sales People and delivery persons should properly monitor the market whether stocks are available and are properly utilized in the market or not. 4. We can provide them beautiful display racks, tablemats, menu-cards etc., containing the trademark and brand name of the company. 5. Display material should be provided to the retailers on more regular basis to increase the sales level. 6. Maintenance work of refrigerator; i.e. purity must be improved. 7. The company should take steps to replace damaged or unsellable Pepsi goods frequently from the retailers. 8. The Company employees should make direct contact with the consumers, so that they may aware with real situation of the market and consumers attitude towards the product. For this they can arrange awareness camps in different locations. 9. Advertisement and publicity in the untapped market by way of signage, racks, paintings, banners, hoarding etc. should be expanded.

Page

48

10. Margin to retailers should be taken care off and may be possible ought to be increased without increasing the overall price. 11. Signages & merchandise should be installed against the sale performance of the outlets as well as the need of the market. 12. By the top officials should be made in the un tapped areas to access the real situation and should be done as a surprise visit instead of planned visit.

LIMITATIONS OF STUDY:-

It is well known fact that constraint and limitations are bound to be present in any study do this also has some limitation as:1-

The survey has been conducted only in few areas of Gr. Noida due to limited time. It is very difficult to make people understand the significance of conducting survey. Lack of retailers interest to answer the questions is also an important limitation. Lack of knowledge of area has affected the research. The information given by the client may be false and bias.

2345-

Page

49

CONCLUSON
Pepsi is superior brand than coca-cola but from some time its market share has come down due to various reasons. In India the company is running with very fast speed. The popularity of Pepsi is better than coke. It has bright future. It has democratic and communicative style of functioning. Some points are given below:1- Proper approach to the retailers at the time of tie ups is required. 2- The retailers satisfaction is low. 3-Company does not provide schemes properly. 4-No provision for regular replacement of damage of bottles. 5-.Many complains of retailers does not listen by the company. 6-.Many retailers want monopoly but company does not provide.

Page

50

BIBLOGRAPHY:Books: Marketing Management Philip Kotler Research Methodology C.R. Kothari Web Sites www.google.com www.pepsico.com www.coca-cola.com www.ask.com www.wikipedia.org

Page

51

QUESTIONNAIRE:Name of outlet: Address: Name of the owner: Phone:

1. Type of outlet (a) General store (C) Sweet shop Result: (a) 40% (c) 20% (a) Yes Result(a) 45% (b) Pan shop (d) Canteen (b) 20% (d) 20% (b) No (b) 55%

2. Are u deal with the PepsiCo brand?

3. Are you satisfied with the advertising strategies of PepsiCo Company? (a) Highly satisfied (C) Not satisfied Result(a) 25% (c) 25% (b) Satisfied (d) Highly not satisfied (b) 35% (d) 15%

4.What do you feel that advertising strategy help Company to capture large market share? (a) yes Result(a)55% (b)No (b)45%

Page

52

5. Do you feel that advertising strategy attract the customers most? (a) Yes Result(a) 55% (b) No (b) 45%

6.Do you feel that advertising strategy affect the quality of brand most? (a)Yes Result(a)50% (b)50% (b)No

7. Which advertisement medium affects the sales most of PepsiCo brand? (a)Television (c) Display Result(a) 40% (c) 25% (b) Magazines/News papers (d) Wall paintings/Hoardings (b) 20% (d) 15%

8. Do you think that aggressive advertising further increase the sales Volume of Pepsi? (a) Yes (c) No reply Result- (a) 50% (c) 5% 9. What kind of promotional activities affect sale mostly of Pepsi? (a)Free bottle scheme (c) Discount carats Result- (a) 20% (c) 45% (b) Prize (d) others (b) 25% (d) 10% (b) 45% (b) No

10. What are your suggestions to improve the sale?

Page

53

(a) New schemes (b) Refrigeration system (c) Advertisement (d) Reduction in deposits (e) Credit facilities (f) Regular supply Result-(a) 25% (c) 30% (e) 20% (b) 10% (d) 15% (f) 10%

Page

54