Finalpepsi
Finalpepsi
PROJECT REPORT
ON
A STUDY ON RETAILER & PROMOTION STRATEGY OF
PEPSICO AND COCA-COLA
Submitted in partial fulfillment for the degree of
BACHELOR OF BUSINESS ADMINISTRATION
ST.XAVIERS COLLEGE
(JAIPUR)
2015-2016
CERTIFICATE
Certified that this project report entitled A STUDY ON RETAILER &
PROMOTION STRATEGY OF PEPSICO AND COCA-COLA
is a
ACKNOWLEDGMENT
It is often in life that you get a chance of appreciating and expressing your
feeling black and white to thank the people who have been a crucial part of
your successes, your accomplishments, and your being what you are today. I
take this opportunity to first of all thank the faculty at ST.XAVIERS
COLLEGE, JAIPUR
I would like to give special thanks MISS AKANKSHA ARORA Assistant
Professor for educating me silver lining in every dark cloud. Her enduring
efforts, guidance, patience and enthusiasm have given a sense of direction and
purposefulness to this project and ultimately made it a success.
Last but not the least; I would like to thank my family, my parents, my
friends, for supporting me spiritually throughout my life.
The errors and inconsistencies remain my own.
AKSHAY TAK
ST. XAVIERS COLLEGE
JAIPUR
DECLARATION
I hereby declare that this project report entitled A STUDY ON
RETAILER & PROMOTION STRATEGY OF PEPSICO AND
COCA-COLA is a bonafide record of work done by me during the
course of summer project work and that it has not previously formed the
basis for the award to me for any degree/diploma, associate ship,
fellowship or other similar title of any other institute/ society.
AKSHAY TAK
ST. XAVIERS COLLEGE
JAIPUR
PREFACE
Market provides a key to gain actual success only to those brands which
match best to the current environment i.e. imperative which can be delivered
what are the people needs and they are ready to buy at the right time without
any delay. It is perfectly true but this also depends on availability of good
quality products and excellent taste and services which further attract and
add a golden opportunity for huge sales. This also depends on the good
planning approach and provide ample opportunity plus sufficient amount of
products for sales in the coming next financial year. This project report
introduces the study of consumers preferences for Marble in Jaipur. After
going through a detail analysis of market behavior and future prospect, it may
also provide an opportunity to frame a good future plan to satisfy maximum
needs of the customers and established its guiding role in the market of Jaipur
city in particular and throughout the country as a whole. The study report will
also provide an opportunity to delineate its market potential business areas,
products &services are to be offered by the company to the customers. This
study report also provides the various factors affecting the services.
Marketing Study of Marble has to keep in mind various factors specially
while preparing a plan for marketing its product or services. Detail
description along with analysis of surveyed data is being presented in this
report.
TABLE OF CONTENTS
S.NO.
1.
TOPIC
INTRODUCTION TO THE TOPIC
Page No.
2.
COMPANY PROFILE
The Soft Drink Market
History Of Soft Drink in India
History of PepsiCo
History Of PepsiCo In India
PepsiCo India Region
Vision & Mission Of PepsiCo
Product Profile Of PepsiCo
Consumer Choice At A Glance
Price List
3.
4.
RESEARCH METHODOLOGY
Objective Of The Study
Scope Of The Study
Pre Sale Concept
5.
SWOT Analysis
6.
DATA Analysis
Methods Of Data Collection
Data Are Collected From Different Location
7.
CONCLUSION
Conclusions
Findings
Suggestions
8.
ANNEXURE
Bibliography
Questionnaire
out for a bigger chunk of the ever growing soft drink market. Now this battle has
been evolved up to India too with the arrival of these three giants. Soft drink
industry is on amazing growth; ultimately these are only one person who will
determine their fortunes. The Indian consumer the real War to quench his thirst has
just begun. The soft drink industry has been a profitable one in spite of the cola
wars between the two largest players. Several factors contribute to this
profitability, and these factors also help to show why the profitability of the
concentrate production side of the industry has been so much greater than the
bottling side. Over the years the concentrate producers have experimented with
different levels of vertical integration, and although it has not necessarily been
clear which have been more successful historically, some decision criteria can be
developed to help determine if and when complete vertical integration is necessary.
The World most popular soft drinks is on duel PepsiCo and Coca Cola, its the
battle between the red can soft drinks and the blue can soft drinks! So this 2 drinks
taste almost the same, but which one of the soft drinks do you prefer?
Coke and PepsiCo have rolled out many celebrities during the past 20 years, and
comedian Dave Chapels promoted both drinks during the same year. The soft
drink industry has been a profitable one in spite of the cola wars between the two
largest players. Several factors contribute to this profitability, and these factors also
help to show why the profitability of the concentrate production side of the
industry has been so much greater than the bottling side. Over the years the
concentrate producers have experimented with different levels of vertical
integration, and although it has not necessarily been clear which have been more
successful historically, some decision criteria can be developed to help determine if
and when complete vertical integration is necessary. The concentration in the
industry (Coke and PepsiCo have 73% in 1994) would suggest that internal rivalry
is somewhat less than if there were many players of equal size. Although the
competition between Coke and PepsiCo has become fiercer over time, they
traditionally competed primarily on advertising, promotion and new products
rather than price (although the explosion of new brands did eventually lead to some
price competition). The products are similar but not homogeneous and buyers are
fairly brand loyal. Retail buyers have significant costs for switching from the major
brands since those are responsible for bringing people into the store. Flattening and
potentially declining U.S. demand may be a factor which increases internal rivalry
and encourages more price competition and thus erosion of profits. The ultimate
battle of two major players competing for the top spot in a massive global market.
The cola and carbonated beverage industry reaches to virtually all corners of the
planet, and the vast majority of the market share belongs to the two giants Coke
and PepsiCo. With such a huge market and enormous revenue potential in an
industry such as this, it is no wonder that the Coca-Cola vs. PepsiCo competition is
so fierce. Coca-Cola vs. PepsiCo, nearly everyone has a preference or an opinion
about which one is better. There is really no arguing the fact that the two soft
drinks are very similar in terms of flavor. The flavor difference between them is
subtle at most, so it is interesting that so many people have such strong feelings
about which one is superior. Global market analysis on the cola industry shows that
Coca Cola typically has a slight advantage over PepsiCo in market share. In some
regions PepsiCo is winning the war, however overall it seems that more people are
choosing Coca-Cola versus PepsiCo. Looking at a wide range of data shows that
Coca Cola owns somewhere between 60-63% of the Indian market, while PepsiCo
gets in the neighborhood of 30%. Of course different studies will produce different
results so it is difficult to get a truly accurate picture. The one thing that is certain
is that Coca-Cola and PepsiCo continue to blow away any other form of
competition. The cola wars are truly a two horse race.
The success of soft drink market depends upon 4 major factors viz.
Availability
Visibility
Cooling
Range
AVAILABILITY
Availability means the presence of a particular brand at any outlet. If a product is
now available at any outlet and the competitor brand is available, the consumer
will go for it because generally the consumption of any soft drink is an impulse
decision and not predetermined one.
VISIBILITY
Visibility is the presence felt, if any outlet has a particular brand of soft drink sayPepsi cola and this brand is not displayed in the outlet, then its availability is of no
use. The soft drink must be shown off properly and attractively so as to catch the
attention of the consumer immediately Pepsi achieves visibility by providing
glow signboards, hoarding, calendars etc. to the outlets. It also includes various
stands to display Pepsi and other flavors of the company.
COOLING
As the soft drinks are consumed chilled so cooling them plays a vital role in
boosting up the sales. The brand, which is available chilled, gets more sales then
the one which is not, even if it is more preferred one.
RANGE
This is the last but not the least factor, which affects the sale of the products of a
particular company. Range availability means the availability of all flavors in all
sizes.
India is a potentially one of the largest consumer market in the world. Soft drink is
a typical product, which quenches thirst and also used for refreshment. In old days
people used to quench their thirst by taking water, Jal jeera, Lassi, Sharbat, Ganna
Juice etc. which still prevailing in the market. But as the people require more
advance and efficient drink, so there felt a need for more sophisticated means of
satisfying thirst, which ultimately gave to the production of modern soft drink.
A soft drink is a non alcoholic beverage. It is artificially flavored drink,
which contains no fruit juice or pulp.
Introduction of soft drink in the name of COCA-COLA was first created in
1886 in USA. Dr. John S. Perfector perfected the formula of Coca-Cola. The Parle
came up by introducing Gold Spot in orange flavor. It was really (1challenging
task for Parle to position i.e. Gold Spot in the market against Coca-Cola, because
using foreign brands habituated people. So first of all, it was launched in Bombay
and free sampling was done in hotels, restaurant, offices and clubs to make people
aware about the taste and quality because it was quite different from Coca-Cola in
these two attribute.
After a tedious effort of about 20 years, it succeeded in establishing its
separate identity. Thus Coca-Cola was the first foreign brand introduced in India
during 1965and the first Indian brand soft drink was Gold Spot launch in the later
part of 1940s.
During the rule of Janta Party at center in 1978, the Indian government
cancelled collaboration with USAs Coca-Cola company and as result Coca-Cola
winded up its operation in India. Now Indian market was open for various cold
drinks. Several companies came forward pushing the different brands in the
market. Parle introduced Thums Up. Pure drink of Delhi introduced Campa-Cola
along with Campa Orange and Campa-Cola.
HISTORY OF PEPSICO
1991 "You got the Right one Baby" is modified to "You got the Right one Baby,
Uh-Huh!" The "Uh-Huh Girls" join Ray Charles as back-up singers and a
campaign soon to become the most popular advertising in America is on its way.
Supermodel Cindy Crawford stars in an award-winning commercial made to
introduce Pepsi's updated logo and package graphics.
1992 Celebrities join consumers, declaring that they "Gotta Have it." The interim
campaign supplants "Choice of a New Generation" as work proceeds on new Pepsi
advertising for the '90s. Mountain Dew growth continues, supported by the antics
of an outrageous new Dew Crew whose claim to fame is that, except for the unique
great taste of Dew, they've "Been there, Done that, Tried that."
1993 "Be Young, Have fun, Drink Pepsi" advertising starring basketball superstar
Shaquille O'Neal is rated as best in U.S.
1994 New advertising introducing Diet Pepsi's freshness dating initiative features
Pepsi CEO Craig Weatherup explaining the relationship between freshness and
superior taste to consumers.
1995 In a new campaign, the company declares "Nothing else is a Pepsi" and takes
top honors in the year's national advertising championship.
1998--Pepsi celebrates its 100th anniversary.
As an MNC on the globe, PepsiCo Foods Ltd. is one of the largest soft drink
company at the world with its head quarter in New York.
PepsiCo entered in the Indian soft drink market in 1988 and began its
production in May, 1990 and soon it was giving the local contenders the run for
their market. It came out with dazzling marketing innovation that rocked the cola
market line selling the product through functional PepsiCo outlets.
PepsiCo success in creating a brand almost from scratch. In India it is the
stuff that marketing case studies are made given the problems of doing over
advai1tage it entered before coke returned was considerable reduced by the
onerous export obligation slapped on the company. The right from the beginning
PepsiCo demonstrated a far more focused approach while it entered
The market like any other MNC, it was quick to adopt. It realize that
consumer particularly the youth to whom it consciously reached out would identify
better with a brand that they see as global yet India PepsiCo was built as desi
brand. Hence its deliberate attempt to build ad-campaign using the popular
Hinglish, in the process slogans like yehi hai right choice baby Aha and yeh dil
mange more become a part of Indias popular consciousness. When PepsiCo lost
the bidding battle to sponsor a cricket tournament to coke, the loss was turned into
a triumph with the catch line Nothing official about it. Two, it cashed in on the
untapped consumer aspiration in smaller towns; tehsils head quarters and hinterland of metropolitan cities. Three, it showed a rare ability to not only survive, but
grow through Indias tortuous policy twist and turns which threw many other
MNCs off balance. And four its top management teams did not suffer from
frequent changes seen at rivals, Coke consequently it was able to pursue it chosen
policy with for greater zeal and dedication.
Unlike Coke which paid enormous prices to buy established local brands.
PepsiCo brought it own stuff over and pushed those aggressively with dealers,
retailers and consumer. Right now, it can bark in its outstanding success inbuilt,
dinga brand that has become synonymous with soft drinks across the length and
breadth of the country.
BRAND FACTS
PepsiCo nourishes consumers with a range of products from tasty treats to healthy
eats that deliver enjoyment, nutrition, convenience as well as affordability The
group has built an expansive beverage and foods business. To support its
operations, PepsiCo has 42bottling plants in India, of which 13 are company
owned and 29 are franchisee owned. In addition to this, PepsiCos Frito Lay
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.
BEVERAGES
PepsiCo Indias expansive portfolio includes iconic refreshment beverages Pepsi, 7
UP, Nimbooz, Miranda 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, Tropicana100% fruit juices, and juice
based Drinks Tropicana Nectars, Tropicana Twister and Slice. Local brands
Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of
brands.
FOODS
PepsiCos food division, 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 Chips and traditional snacks under
the Kurkure and Lehar brands. The companys high fiber 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 Chips 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.
QUICK FACTS
PepsiCo established its business operations in India in 1989.
Invested more than USD 1 Billion since inception.
Well known and loved global brands that delight and nourish consumers.
It provides direct and indirect employment to 150,000 people in India.
It has more than 42 bottling plants in India, of which 13 are company owned
&
29franchisee owned.
3 State-of-the-art food plants in Punjab, Maharashtra and West Bengal.
PepsiCo entered India in 1989 and in a short period, has grown into one of the
largest and fastest growing food and beverage businesses in the country. PepsiCo
Indias growth has been guided by PepsiCos global vision of Performance with
Purpose. This means that while businesses maximize shareholder value, they have
a responsibility to all the stakeholders, including the communities in which they
operate, the consumers they serve and the environment whose resources they use.
One of the largest food and beverage businesses in India: PepsiCo Indias
diverse portfolio includes iconic brands like Pepsi, Lays, Kurkure, Tropicana
100%, Gatorade, Quaker and young, but immensely popular and fast growing
brands, such as Nimbooz and Aliva. PepsiCo India has not only grown to become
one of the countrys largest food and beverage businesses but has also become a
powerful and consistent driver of PepsiCos global growth.
A growing portfolio of enjoyable and wholesome snacks and beverages :
PepsiCos portfolio reflects its commitment to nourish consumers with a diverse
range of fun and healthier products. The portfolio includes several healthier treats
like Quaker Oats, Tropicana juices, multigrain Aliva range which is baked,
rehydrator Gatorade, Tata Water plus, Lays baked range and Lehar Iron Chusti
fortified extruded snack with superior quality iron & B-vitamins.
established a model of partnership with farmers and now works with over 24,000
happy farmers across nine states. More than 45 percent of these are small and
marginal farmers with a land holding of one acre or less. PepsiCo provides 360-
degree support to the farmer through assured buy back of their produce at preagreed prices, quality seeds, extension services, disease control packages, bank
loans, weather insurance, and the latest technological practices.
Global leader in water conservation: In 2009, PepsiCo India achieved a
significant milestone, by becoming the first business to achieve Positive Water
Balance in the beverage world, a fact verified by Deloitte Touch Tohmatsu India
Pvt. Ltd and has been Water Positive since then. The company made this possible
through innovative irrigation practices like direct seeding, water recharging, and by
reducing the consumption of water in its manufacturing facilities. PepsiCo is
lauded for its efforts for water conservation.
Care for the environment: PepsiCo is focused on reducing its carbon footprint.
Nearly 30 percent of its energy is today generated from renewable sources such as
rice husk boilers and wind turbines. Initiatives such as reduction of use of
chemicals, eco-friendly packaging initiatives and efficient waste management help
reduce load on the environment. PepsiCo Indias award-winning Waste to Wealth
recycling program reaches 465,000 families.
Exemplary employment practices:
people and provides indirect employment to almost 2,00,000 people. The company
believes in providing employment and growth opportunities to local talent. Its
College of Leadership, ensures early identification of talent, and employees
focused development through critical experiences. The company emphasizes
Winning with Diversity and Inclusion and has a significant number of women in
the leadership team in India. PepsiCo India has won the prestigious Helen Keller
Award from the National Centre for Promotion of Employment for Disabled
People (NCPEDP).
1. PEPSI
Pepsi is considered to be cold drink. It is generally preferred by all sections of
consumer. This is a case cow brand for the company in terms of sales revenue.
2. MIRINDA
Mirinda is considered to be lemony in taste, and comes under the light drink.
3. 7UP
7up is a good product at PepsiCo and contains at lemon flavor.
4.
MOUNTAIN DEW
Mountain dew is also considered to be a cold drink. It is light comparison
SLICE
SLICE MANGO, in slice cold drink no gas only based on juice. It is a non-
6. TROPICANA
In Minute maid pupply orange cold drink no gas only based on orange juice.
It is a non-aerated soft drink.
7. NIMBOOZ
It is just like home-made nimbu pani. You can enjoy its natural and delicious
lemony refreshment anywhere you go.
soft drink makers are providing the products which carter all these
consumer needs. Likewise:Pepsi
Mirinda
Common Drink.
Slice
7up
Youngsters
Mountain Dew
Youngsters
Tropicana
NIMBOOZ
Aquafina
PRICE LIST
The pricelist listed as per date 15-03-2014
Name of the Brand MRP (per pc.) Rate per caret Qty. per caret
Pepsi
200ml
300ml
600ml
250ml CAN
1 ltr.
40
32
2.25 ltr.
12
14
27
20
260
303
608
456
24
24
24
24
40
32
63
444
348
527
12
12
9
12
14
27
20
260
303
608
456
24
24
24
24
40
32
63
444
348
527
12
12
9
12
14
27
20
260
303
608
456
24
24
24
24
Mirinda
200ml
300ml
600ml
250ml CAN
1 ltr.
40
32
2.25 ltr.
7up
200ml
300ml
600ml
250ml CAN
1 ltr.
has to work for 1.5 hours to by a bottle cross over for both the athletes
running for getting for No.1 position.
Coca-Cola is well set with its 53 bottling sites throughout the country giving
it an edge over competition by possessing a well built manufacturing and
distribution set up on the other side of picture, PepsiCo, with two more year
in India, has been able to set an image of winner this giants are ready to turn
every stone of opportunity with a mindset of long tenure this time.
PepsiCo is quit aggressive in approach to Indian consumer. They are
desperately working in the strategy to be winner side in the hot cola war
between two big barons. According to PepsiCo philosophy its the madness
that encourages executives to thin to conjure up those creative tactics to
knock the fizz out of their competition. PepsiCo had pumped a large amount
on visibility of its blue-red-and-white logo. They have been going with
aggressive marketing by putting Sachin Tendulkar and now Shahrukh Khan
in there advertisement to endorses their brand, the role models for its
targeted consumer the teenagers. They have increase the fizz in the market
price by introducing the dispensers called fountain PepsiCo and been
enjoying a lead over its rival three.
Coca-Cola
Introduction of soft drink in the name of COCA-COLA was first created in
1886 in USA. Dr. John S. Perfectos perfected the formula of Coca-Cola. The Parle
came up by introducing Gold Spot in orange flavor. It was really (1challenging
task for Parle to position i.e. Gold Spot in the market against Coca-Cola, because
using foreign brands habituated people. So first of all, it was launched in Bombay
and free sampling was done in hotels, restaurant, offices and clubs to make people
aware about the taste and quality because it was quite different from Coca-Cola in
these two attribute.
After a tedious effort of about 20 years, it succeeded in establishing its
separate identity. Thus Coca-Cola was the first foreign brand introduced in India
during 1965and the first Indian brand soft drink was Gold Spot launch in the later
part of 1940s.
During the rule of Janta Party at center in 1978, the Indian government cancelled
collaboration with USAs Coca-Cola company and as result Coca-Cola winded up
its operation in India. Now Indian market was open for various cold drinks. Several
companies came forward pushing the different brands in the market. Parle
introduced Thums Up. Pure drink of Delhi introduced Campa-Cola along with
Campa Orange and Campa-Cola.
Modern bakeries introduced double seven. Mohan Making came up with
Marry and Pick up and McDowell came up with thrill, Rush sprint in Indian
market. Ump in (Godrej) and tree to (Lipton) entered with tetra pack and started
grabbing the market in the absence of Coca-Cola.
In 1991, a multinational company globally known as P.C. 1. (PepsiCo Cola
International) entered the Indian market with the name P.F.L. (PepsiCo Food
Limited). Its president Christopher found a large scope for their soft drink in India.
Both PFL and Parle were the two main bottlers in the soft drink arena.
There was a cut throat competition between them.1993, Coca-Cola re-entered into
the Indian market and acquired five brands of Parle i.e. Thums! Up, Limca, Citra,
Mazza and Gold-Spot
Thus in India, Coca-Cola has become the close rival of PepsiCo Foods
Limited (PFL). They are fighting each other to gain a clear edge over the other.
Coca-cola in India
Coca-Cola India has made significant investments to build and continually
improve its business in India, including new production facilities, wastewater
treatment plants, distribution systems and marketing equipment. During the past
decade, The Coca-Cola System has invested more than US $1 billion in India,
making Coca-Cola one of the countrys top international investors and in 2003,
Coca-Cola India pledged to invest a further $100 million in its operations.
The Coca-Cola System in India includes 24 Company-owned bottling operations
and another 25 franchisee-owned bottling operations that directly employ 5,500
local people and create jobs for another 150,000s.
Virtually all the goods and services required to produce and market Coca-Cola
products locally including our Kinley water brand launched in 2000, Shock, an
energy drink launched in 2001, and Sunfill, our first powdered concentrate, also
launched in 2001 are made in India, ensuring that the benefits of such enterprises
remain in the local communities in which they operate.
For as long as weve been in India, The Coca-Cola Company and our independent
bottlers have been engaged at the international, national and community levels to
support programs that protect the environment, conserve water, promote education,
and provide healthcare.
EMPOWERMENT
The PepsiCo Process
Once of the strongest weapons in Pepsis armory is the flexibility. it has
empowered its people with. Every manager and salesperson has the
authority to take whatever steps he, or she, feels will make consumers
aware of the brand and increase its consumption.
PRICE
The PepsiCo Process
PepsiCo has consistently wielded its pricing strategy as in invitation to
sample, aiming to turn trial into addiction. It launched the 500 ml bottle
in 1994 at Rs. 8 versus Thumps Ups Rs. 9, in April, 1996, its 1.5 liters
bottle followed Coke into the marketplace at Rs. 30 Rs 5 less than
Cokes .But it couldnt continue the lower price positioning for long.
The Coca-Cola Copy
Initially, coke carbon-copied the strategy by introducing its 330mlcans in January
1996, at an invitation price of Rs. 15 before raising it to Rs 18. By this time, it had
realized that the Coca-Cola brand did not hold enough attraction for customers to
fork out a premium. The 200ml Coke, launched so far in parts of eastern, western,
and northern India, is priced at Rs. 5, lowering the entry-barriers. Too really drive
the market, as Coke wants to you must go down to Rs. 3.
PRODUCT COMPARISION:
S. NO. Coca-cola product
1.
Coke
2.
Diet Coke
3.
Thums-up
4.
Limca
5.
Fanta
6.
Maaza
7.
Sprite
8.
Sprite
9.
Minute Made
10. Kinley Mineral Water
11.
Kinley Club Soda
Pepsi product
Pepsi
Pepsi Diet
Pepsi
Mirinda lemon
Mirinda orange
Slice
7up
Mountain Dew
Tropicana
Aquafina Mineral
--------
ADVERTISING
Advertising is a form of communication used to persuade an audience
(viewers, readers or listeners) to take some action with respect to products,
ideas, or services. Most commonly, the desired result is to drive the
consumer behavior with respect to a commercial offering, although political
and ideological advertising is also common.
Advertising messages are usually paid by sponsors and viewed via various
media; including traditional media such as newspapers, magazines,
television, radio, outdoor or direct mail; or new media such as websites and
text messages.
Advertising is non-promotion of goods and services, by a sponsor (a firm or
person) who can be identified and who had paid for this communication.
This purpose of advertisement is to sell something a good service, idea
person or place, either now or later this goal, reached by setting specific
objective that can be expressed individual ads. Those are incorporated into
an advertising campaign recall again from the buying decision process that
buyers go through a series of stages from unawareness to target customers to
the stage in the hierarchy say from awareness to interest.
Advertisement plays an important role in the success of PepsiCo
product. Advertisement is a key of implementing a strategy over one
hundred year old to trigger desire as offer and in as many ways as possible.
According to American Marketing Association, Advertising is any paid
form of non-personal presentation of ideas, goods or services by an
identified sponsor.
Road signs are large boards placed along the road and are visible
from the windows of the carriage.
Newspapers has local coverage in the sense that it reaches
almost within the area of its circulation. Circulates all over India.
Neon light are more interesting and attractive than the signs built
up by a number of electric bulbs.
SALES PROMOTION
Sales promotion is one of four aspects of promotional mix. (The other three parts
of promotional mix are advertising, personal selling, and publicity/public
relations). Media & non media marketing communication are employed for a predetermine, limited time to increase consumer demand, stimulate market demand or
improve product availability.
Sales promotion is any initiative taken by an organization to promote an increase in
sales, usage or trial of a product or service (i.e. initiative that are not covered by the
other elements often marketing communications or promotional mix). Sales
promotions are varied.
According to William J, Stanton, Sales Promotion is an exercise in information,
persuasion and influence.
(a)Buy one get one free (BOGOF):- Which is an example of self liquidating promotion?
For example if a loaf of bread is priced at$1, cost 10 cents to manufacture, if you
sell two
If $1, you are still in profit especially if there is a corresponding increase in sales.
This is known as a premium sales promotion tactic.
For $1, you are still in profit especially if there is a corresponding increase in
sales. This is known as a premium sales promotion tactic
(b) Customer relation with management (CRM):-incentives such as bonus point
or money off coupons. There are many examples of CRM, from banks to
supermarkets.
(c) New media:-
Websites and mobile phones that supports a sales promotion. For example, in the
United Kingdom, Nestle printed individual codes on KIT-KAT whereby a
consumer enter the code into a dynamic to see if they had won a prize. Consumers
could also via their mobile phones to the same effect.
(d) Merchandising additions such as dump bins, point 0f sale materials and
product demonstrations.
(e) Free gifts e.g. subway gave away a card with six spaces for stickers with each
sandwich purchase. Once the card was full the consumer was given a free
sandwich
(f) Discount prices e.g. budget air line such as east jet Ryan air, e-mail their
customers with the low- price deals once new flights are released, or additional
destinations are announced.
(g) Joint promotions between brands owned by a company, or with another
companys brands. For example fast food restaurants often run sales promotions
where toys, relating to a specific movie release, are given away with promoted
meals.
(h) Free samples e.g. tasting of food and drink at sampling point in super markets.
For example Red Bull (a caffeinated fizzy drink) was given away to potential
consumers at super markets, in high streets and at petrol stations (by a promotions
team)
(I) Vouchers and coupons, often see in newspapers and magazines, on packs.
(j) Competitions and prize draws, in newspapers, magazines, on the TV and
radio, on the internet, and on packs.
(k) Cause-related and fair-trade products that raise money for charities, and the
less well off farmers and producers, are becoming more popular.
Inventory turnaround refers to the number of times the inventory is sold and
replaced in a period of twelve months. The health of the inventory turn relates to
the health of business.
In a global scenario, the finished goods inventory is held at many locations and
distribution centers, managed by third parties. A lot of inventory would also be in
the pipeline in transportation, besides the inventory with distributors and retail
stocking points. Since any loss of inventory anywhere in the supply chain would
result in loss of value, effective control of inventory and visibility of inventory
gains importance as a key factor of Supply Chain Management function.
surveys and other research techniques, and could include both present and
historical information.
A science of studying how research is done scientifically.
A way to systematically solve the research problem and biologically adopting
various steps.
Methodology helps to understand not only the products of scientific enquiry but
the process itself.
Aims to describe and analyze the methods, throw light and limitations and
resources, clarify their presuppositions and consequences, relating their
potentialities to the twilight zone at the frontiers of knowledge.
Research is a structured enquiry that utilizes acceptable scientific methodology to
solve problems and create new knowledge that is generally applicable.
Scientific methods consist of systematic observation, classification and
interpretation of data.
Although we engage in such process in our daily life, the difference between our
casual day- to-day generalization and the conclusions usually recognized as
scientific method lies in the degree of formality, rigorousness, verifiability and
general validity of latter.
To find the receptivity of the brand among the retailers and consumers
particularly of eating and drinking, grocery store, and convenience shops.
To study of distribution and marketing strategy of PepsiCo, the major
competitor in this category.
To collect data about the retailers that can be used for activating new
channels and merchandising opportunities.
To find out ways to increase the sales of the new launches in
different places.
Through this study company will know about the availability of its products
in the market.
This study will help a company to know about the demand n supply
prevailing in the market.
Through this study company can work more efficient and effective to earn
more profits.
The survey was based on three topics: Firstly, we have to check the cooler management i.e. the cooler that was
provided by the company to the customer, are properly managed/working or
not. And lastly the most important aspect of cooler management was the
brand order.
Secondly, we have to check the availability of the product i.e. whether the
product is available to the customer or not.
Lastly, we have to check the activation, which is a very important because
activation helps to boost the sales. Activation is done through boards i.e.
glow sign. And is very helpful in attracting the customers. Rack with header
is provided to the Grocery, outlets, which should be fully charged.
Right Execution Daily (R.E.D) is the diversification of outlets as Channel, Class,
and Income. Lets know what are the Channel, Class, and Income respectively.
CHANNEL
Which types of outlet is this E&D (Eating & Drinking), GROCERY, or
CONVENIENCE?
E&D
Like restaurant must have 5 tables with chairs.
GROCERY
Like general store.
CONVENIENCE
Like Pan Shop
CLASS
Which class outlet has like, SILVER, GOLD or DIAMOND?
SILVER
Those outlets, which sells 800 & above carets per year.
GOLD
Those outlets, which sells 500-799 carets per year.
DIAMOND
Those outlets, which sells 800 & above carets per year.
INCOME
Whoever costumer comes on shop which income class they belongs like high
income, medium income, low income.
This is the new concept that had started from the year 2008. In the pre- sale the
company takes order one day before and accordingly company delivers their
products for each route.
SWOT Analysis:
SWOT analysis is the overall evaluation of the company or an individual.
Strength
Weaknesses
Opportunities
Threats
SWOT analysis of the PepsiCo can be understood as follows:
Strength:
The small number of routes generally leads to more efficient use of
transportation resources. For example, aircraft are more likely to
fly at full capacity, and can often fly routes more than once a day.
Complicated operations, such as package sorting and accounting,
can be carried out at the hub, rather than at every node.
Spokes are simple, and new ones can be created easily.
Set quality, risk and performance standards for the Hub and
Spokes.
Weakness:
Opportunities:
Threats:
Any disruption at the hub, such as bad weather or a security
problem, can create delays throughout the system.
The overall operating efficiency is also limited by the capacity
of the hub.
Frequent transportation expense may not always be feasible.
Unprecedented lack of human resources, as the whole modal is
majorly supported by Human Resource.
DATA ANALYSIS
METHODS OF DATA COLLECTION
DATA ARE COLLECTED FROM DIFFERENT LOCATION
Sampling Plan: Sampling plan consists of: Sampling unit: The retailer of grocery shop, general store, betal shop,
and medicine store was selected from different place.
Sampling size:
20 0utlet.
2. Secondary data collection:As secondary data were not available with shopkeepers as well as stockiest, so
these were collected from Internet, Magazine and newspaper.
SURVEY ANALYSIS
The survey analysis was conducted in different locations and total survey of 20
outlets was conducted
Sales
Only PepsiCo Products
Only Coca-Cola Products
Mixed
No. of Outlets
6
9
5
Figure 2
Types of Outlet
Table 1
Sr. No.
1
2
Sales
General Stores
Grocery shops
No. of Outlets
10
10
Figure 1
COMPANY
PERCENTAGE
Pepsi
20%
Coca-Cola
20%
Both
60%
Total
100%
Table 8
Figure 8
distribution network. Both pepsi and coca cola has a same distribution network as
stated above through chart.
% Share
One Crates
57.78
Two Crates
18.67
Three Crates
12.44
11.11
Total
100%
Table 3
Figure 3
INTERPRETATION: Huge amount of retailers sale 1 crate per day and goes
on decreasing with increasing number of crates sales per day, which is clearly
depicted by above graph.
Qty.
Percentage
PepsiCo
04
20
Coca-Cola
30
Own
10
50
Table 5
Figure 5
%AGE
65%
10%
15%
10%
OTHER
5%
Table 6
Figure 6
PROMOTIONAL ACTIVITIES
%AGE
80%
40%
15%
0%
2%
Table 9
Figure 9
COMPANY
COCA-COLA
PEPSICO
BOTH
NONE
SIGNAGE %
35%
11%
50%
4%
TOTAL
100%
Table 4
Figure 4
CHAPTER-6 CONCLUSION
CONCLUSION
Every Thing In This World Is Made To Utilize Properly But It Should Be Reach At
The Proper Person Or To The Proper Utilized Areas. Otherwise The Value Added
To Those Things Became In Vein.
As There Is Proverb That,
Far From Eye, Far From Heart
Thus Marketing Role Plays A Very Important Role In Achieving The Objective Of
A Company. Undoubtly, Value Utility Is Created By The Manufacture Of Product
Or Service But Time And Place Utilities Are Created By Marketing Role.
According To Drucker, Both the Market and the Distribution Channels Are Often
More Crucial Than The Product. They Are Primary: The Product Is Secondary. In
An Economy Like That Of India, Where Marginal Shortages Can Lead To
Disproportation Distribution In Prices, A Dependable And Efficient Distribution
System Is Very Much Essential. The Distribution System Creates A Value Added
To All Most All Products.
All From The Above Study Not Withstanding Its Restricting Efforts Coke
Is Still Far Away With Its Great Competitor Like PepsiCo.
The Sales and Distribution Network of PepsiCo is very strong and almost
flawless.
PepsiCo India had the first mover advantage when it entered the market and
it capitalized on that advantage to grab the market.
Franchisee based operations combined with the Companys operations add
strength to the overall presence of the Company in the market.
Promotional activities within every territory are under the territory office
and the officials of that office are responsible for the effectiveness and
successful implementation of these campaigns.
Because of fierce competition PepsiCo has spend heavily on Ads in order to
increase the brand recall and successfully face the competition.
PepsiCo has good brand image and recall in the customers mind but the
most surprising thing is that when compared with Coca-Cola, PepsiCo lags
behind interims of brand image.
PepsiCo has carved a niche for itself in the rural market and small cities,
although same cannot be said for its market share in metros as its competitor
Coca-Cola has extensive competitive strategy in major cities.
The main reason behind PepsiCo rural market capture is that
it treats its retailers as its customers, unlike Coca Cola which
considers the consumers as its customers.
FINDING
The Most Popular Flavoring the Market Is PepsiCo.
SUGGESTIONS
The above study elicits the fact that sales department should introduce some changes in
its marketing activities to make it more rational.
1. As the most of the dealers have complaints that the salesman does not tell them
about schemes. For this before launching any scheme company should advertise it
by distributing pamphlets to the dealers mentioning the period of the scheme &
time-to-time proper check is required.
2. Exclusive outlets are losing because of irresponsible salesmen and their improper
behavior.
3. Grievances of dealers & consumers often do not reach to the concern authority.
4. The number of visicooler & signage should be increased.
5. The number of vans should be increased so that total outlets, might be covered
properly.
7. Company should develop policy, so that the soft drinks are made available at all
the outlets during the peak seasons & not let the opportunity pass by.
8. Company Should make fridge available at maximum outlets, so the chilled soft
drinks could be provided to the customers, because in the soft drink market brand
loyalty fails if chilled soft drink is not made available to the customers in spite the
customer goes in for any other brand, which is chilled.
9. New policy of the company should be introduced before the competitors launch
those policies.
10. Hoardings bills & wall paintings should be display in the inner part of
areas has more growth potential in terms of sales.
CHAPTER 7: ANNEXURE
BIBLIOGRAPHY
REFERENCE BOOKS:
urban
Kotler Philip, (2008) marketing management, 13th edition, prentice hall of India
pvt.ltd.
Dawson, Catherine, (2002), practical research methods, New Delhi, UBS Publishers
Distributors
Kothari, C.R., (1985) Research methodology- methods and techniques, New Delhi,
Wiley Eastern Limited.
Kumar Ranjit, (2005) Research methodology-a step-by-step guide for beginners, 2nd
edition, Singapore, Pearson Education.
Agarwal P.K., Marketing management, Meerut, Pragati Publication
Economic Times
Business Standard
Business World
Brochures &Pamphlets
Annual Report Of Pepsico
WEBSITES:
WWW.PEPSICO.COM
WWW.PEPSICOZONE.COM
WWW.COCACOLA.COM
WWW.PEPSICOINDIA.CO.IN
WWW.PEPSICOINDIA.CO.IN
QUESTIONAIRE
Name of the Shop/Outlet: -----------------------Address/Location: --------------------------------Type of Outlet:
(A) General Stores
(B) Grocery Shops
1caret
(B)
2caret
(C)
3caret
(D)
(A)
PepsiCo
(B)
Coca-Cola
(C)
Own
PERCENTAGE
One Crates
57.78
Two Crates
18.67
Three Crates
12.44
11.11
Total
100%
TABLE 10
FIGURE 10
Opinion of people
YES
NO
TOTAL
No. of Outlets
15
5
20
Table 7
FIGURE 7