MARKET RESEARCH, SALES PROMOTION, ADVERTISEMENT &

COMPETITOR ACTIVITY IN PATNA

WITH REFRENCE TO

LUMBINI BEVERAGES PVT. LTD.

SUBMITTED TO

MANAGEMENT PROGRAMME
UNIVERSITY 0F MYSORE

FOR THE AWARD OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

SESSION: 2007-2009

UNDER THE GUIDENCE OF: SUBMITTED BY:

Mr. ARUN KUMAR AMIT KUMAR

TDM (Patna) ROLL.NO. - 29 (MARKETING)

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LUMBINI BEVERAGES PVT.LTD

DATE: 30-06-2008

To Whom It May Concern

This is to certify that Mr. Amit Kumar Student of MBA, of

K.R. Manglam Global Institute of Management,
Delhi session 2007-2009 has completed his summer
training during 04-05-08 to 04-06-08 on the topic of
“Market research, Advertisement, Competitor
activity and Sales & distribution system” under
LUMBINI BEVERAGES PVT.LTD. (PEPSICO), Hajipur at
Patna. He successfully undertook the above dissertation
with total sincerity and dedication to our satisfaction. His
conduct during the training period was good.
We wish him all the best & hope that this training might
help in his professional career.

For LUMBINI BEVERAGES Pvt. Ltd

(Arun Kr. Singh)

Trading Development Manager

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Regd. Office: P-214, C.I.T. Scheme VI(M), Kolkata – 700 054, Tel.: (033) 2229 5762, Fax: (003)
2229 5762, Email: [email protected],Plant: H-2, EPIP, Industrial Area, Hajipur – 844101, Tel.:
(06224) 274873,274836, Fax: (06224) 275927, Email: [email protected]

PREFACE
The present era is an era of Brand Marketing the business of brand
marketing can be compared to the game of chassis this area of
marketing brand name, packaging, and distribution and advertising
plays similar role as that of pawn on the board of chess.

To achieve the purpose I have done my summer project training

from Lumbini Beverages pvt. Ltd.Hajipur, unit the topic given me is “A
BRIEF STUDY ON SALES & DISTRIBUTION SYSTEM, MARKET RESEARCH,
CONSUMER BEHVIOUR, and COMPITITOR ACTIVITY OF PEPSI IN PATNA
(BIHAR).

Knowledge attains maturity and perfection through application

in practical field. Application of management principle in all branches
whether product. Personal marketing, etc. result is more efficient and
efficient and effective utilization of available resources.

This report has been compiled firstly in partial fulfillment of

the requirement for MBA, secondary to share the practical knowledge
and experience gained as result of continued association with
company’s marketing branch. The details mentioned in this report are
based on real situation.

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Since the reader would like to know the general details of two
cola giants. Therefore a chapter includes theoretical aspects of
comparative study and its application for the industry in marketing is
also include. Further to help the reader in understanding the findings,
graphical representation, conclusions and suggestions are also includes,
which very much helps Lumbini Beverages Pvt. Ltd. Hajipur to know
where he stands in the soft drinks market. What is the market share of
Pepsi? And what Pepsi is doing against Coca-cola.

I frequently hope that this project report would be considerable

help to the management for developing strategies in those areas.

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ACKNOWLEDGEMENT

This project report is a sincere attempt to carefully and

systematically gather facts about and evaluate the sales promotion,
distribution and market research of LUMBINI BEVERAGES PVT. LTD.
HAJIPUR as a part of the course curriculum of “SALES & DISTRIBUTION
SYSTEM,MARKET RESEARCH ,CONSUMER BEHVIOUR ,COMPITITOR
ACTIVITY OF PEPSI IN PATNA(BIHAR)”.which is of eight weeks duration
for the completion of my project report many persons directly or
indirectly assisted me.

First of all, I would like to thank almighty God, without his blessing
the whole report could not have been completed.

In this context I, Amit Kumar student of K.R.Manglam Global

Institute of Management, University of Mysore, Bangalore .Would first
of all like to express my thankfulness to parents and family members,
who have constantly deported and encouraged me in shaping my
career.

I also express my profound sense of gratitude to Mr. G.P Singh

[CEO], Arun Kr. Singh [TDM], Binay Kumar [Deputy TDM], & CE Banwari
Shukla, Patna of Lumbini Beverages pvt. Ltd., Hajipur, who provided me
an opportunity to work and also guide me at every step of my project.

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Their proper direction and constant inspiration proved to be an asset
for this project.

I am also grateful to Mr. N.K. Prasad [HR manager] Lumbini beverage

pvt. Ltd, For giving me an opportunity to learn and conduct research in
their esteemed organization, Words are too little to express my
gratitude.

I would like to thank Mr. Vikash Kumar, Mr. Nitin Kumar, Mr. Amar Sinha
& Depot, In charge Mr.j.L.Rajpal for their kind co-operation to compile
my project.

Since the reader would like to know the general details of

two cola giants, therefore, chapter includes as discussion of theoretical
aspects and its application is included. Further to help the reader to
understand the finding with graphical representation. Conclusions and
suggestion are also included, which very much helps to know that
where LUMBINI BEVERAGES Pvt. ltd., stands in the soft drink market
what is market share of Pepsi and how Pepsi is doing against coca-cola.

I hope this report will be special interest to the marketing

students, who are on look such real life situations beyond their
classroom studies.

Amit Kumar

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CONTENTS

Chapter 1: Introduction to the Study

1.0 Introduction

1.1 Purpose of the Study

1.2 Importance and Relevance of the Study

1.3 Research objective

1.4 Scope of Study

1.5 Characteristics of soft drinks

1.6 Methodology to be used

1.7 Limitations of Study

Chapter 2: Industry Profile

2.0 Overview

2.1 Mission and vision of PepsiCo

2.2 History of Pepsi

2.3 Pepsi the Indian experience

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Chapter 3: Introduction of the organization
3.0 Lumbini beverage Pvt. Ltd.

3.1 Profile of LBPL

3.2 Organizational hierarchy

3.3 Production process

3.4 Product profile

3.5 SWOT analysis

Chapter 4: Marketing Strategy & Distribution Channel

4.0 Marketing strategy

4.1 Marketing mix

4.2 Promotional activities

4.3 Advertising & sales promotion L.B.P.L

4.4 Merchandising policy

4.5 Distribution channel of LBPL

Chapter 5: Product Performance of Pepsi

5.0 Targeting product comparison

5.1 Product availability

5.2 Pricing of product

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5.3 Pepsi performance in comparison

Chapter 6: Data Analysis and Interpretation

6.0 Interpretation of outlets

6.1 Market share

6.2 Market share of different soft drinks

6.3 Market share of equipments

6.4 Percentage share of glow sign board

6.5 Percentages of satisfied distributers

Chapter 7: Market survey

7.0 Research methodology

7.1 Dealer survey

7.2 Limitations of the research

Chapter 8: Conclusions and Suggestions

8.0 Conclusions

8.1 Suggestions

Annexure

 Glossary of terms

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 Questionnaire

 Bibliography

Chapter 1: Introduction to the study

1.0 Introduction

1.1 Purpose of the Study

1.2 Importance and Relevance of the Study

1.3 Research objective

1.4 Scope of Study

1.5 Characteristics of soft drinks

1.6 Methodology to be used

1.7 Limitations of Study

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INTRODUCTION
India with a population of more the 100crore is potentially one of the
largest consumer markets in the world with urbanization and
development of economy, tastes and interests of the people changes
according to the advance nation.

Beverage industry is one of the fast growing industries in India. It can be

divided into two sections i.e. carbonated and non -carbonated. The
carbonated drinks can be further classified into Cola, Lemon, Orange,
Mango & Apple segments etc.

Marketing includes all the activities like promotion, distribution,

advertising etc. to fulfill the demands of all segments of consumers.
Marketing is also convert social needs into profitable opportunities. So
this topic provides all the essentials to the theoretical knowledge with
practical knowledge and to inculcate the efficiency. It is also a
requirement for the company to improve its service and product quality
to achieve the ultimate goal.

Marketing is about winning this new environment. It is about

understanding what consumer’s wants a supplying its more efficiency
and more conveniently.

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India where more than 50% of the total population exists below poverty
line the consumer can’t afford such high price for soft drinks. As a result
the trading activities of the soft drinks industry are concentrated in and
around big cities and town where the purchasing power of population is
considered comparatively high.

Soft drinks industries in India has annual sale of about 5000crores, with
per capita consumption of soft drinks at a low of eight bottles per
annum is due to price factor.

So, marketing is both philosophy and technology. It is technology

because it suggests ways and means for effective production and
distribution of goods and services in the market to give maximum
satisfaction to the consumer.

In this regard the marketing management with have to apply to

marketing technology in the conceptual philosophy of a system. It is the
process of system analysis in the marketing management for effective
research and can be defined, “systematic objective and exhaustive
study of tasks relevant to any problem in the field of marketing “.

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PURPOSE OF STUDY
A project cum training is an essential part of MBA +PGDM curriculum.
This study was conducted on “A comparative assessment of the Pepsi
performance in the cold drink market in Patna and promotional
activities in Patna central region.

It also helps to make improvements in service and quality of the Pepsi

product, for their long term existence in the market and earning profit.

Simultaneously, it is also helpful to me to learn about the consumer’s

behavior and their demand for the beverages in particular area
(market).

Executive training was undertaken on the following objectives:

 To know the brand acceptance of Pepsi in the cold drink market in

Patna.
 To determine the factors which persuade the retailer for sale of
Pepsi?
 To know the effects of anti-cola advertisement on sale of Pepsi.
 To find out the company’s position & market share in the soft
drink market.
 To find out the exclusive outlets of Pepsi & its competitors.
 To find out the various competitors of Pepsi & their strategy.
 To find out promotional activities of Pepsi & its competitors.
 To understand the acceptance of Pepsi as compared to coke

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 To identify the organizational features of Pepsi.

IMPORTACE OF THE STUDY

The topic has been already given to the company to collect information
about current happening in the market. It also helps to makes
improvement in service and quality of the product, for their long
term existence in the market and earning profit.

Simultaneously, it is also helpful for me to learn the consumer behavior

and observe their attitude toward demand of particular products
practically.

RESEARCH AND OBJECTIVES

The following were the main objectives of the research:

 To know the stock position of Pepsi and its competitors at

different outlets.
 To study the marketing and promotional activities at various retail
outlets.
 To know per day sale of Pepsi brand and its competitors in crates.
 To study the percentage share of Pepsi‘s cooling equipments.
 To know how many outlets are covered with glow signboard of
Pepsi?
 To know the market share of Pepsi products.

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SCOPE OF STUDY
The main scope of this research is ascertaining the various methods to
increase the sales volume and distribution activity of concerned
company. The methods include regular measures to make the position
in the market and taking measures to confirm the brand position. One
of the most important aspects of this study is also to increase the
market segment for the products.

OTHER SCOPE OF THIS TOPIC MAY BE AS FOLLOW:

 Target market segment
 Comparison of Pepsi products with its competitors.
 Identification of market potential.
 Evaluating customers need with company products.
 Collecting suggestions for product improvement etc.
 Evaluating awareness about Pepsi Company.

CHARECTERISTICS OF THE SOFT DRINKS

 Unfinished goods (required chilling before consumption).
 Two way transportation (one filled bottles to market and second
empty bottles from market
 Heavy expenses on advertisement and promotions
 More attention to retailer .several schemes and other facilities
provided to them
 New flavor are introduced from time to time
 Highly competitive market with only two equally strong players

METHODOLOGY OF THE RESEARCH

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

 Defining the problem and the research objectives.

 Developing the research plan.
 Questionnaires.
 Sample size.

LIMITATION OF THE STUDY

 The finding of the study may not be applicable to other places
except Patna.
 The respondents were too busy to give exact answer to all
questions.
 There is chance of under estimation of sales and income as it is
the nature of human beings.
 This study analysis is opinion of retailers only.
 The results may not hold good in the long run as taste and
preference of human beings are subject to change over a period
of time.
 There are chances of sampling error.
 Chances of biased data collections to respondents.

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Chapter 2: Industry Profile
2.0 Overview

2.1 Mission and vision of PepsiCo

2.2 History of Pepsi

2.3 Pepsi the Indian experience

OVERVIEW
PepsiCo is a world leader in convenient foods and beverages, with
2006.Revenues of more than $35 billion and more than 168,000
employees across the world. Its world renowned brands are available in
nearly 200 countries and territories.

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Building for the future
PepsiCo is among the world’s largest consumer products companies
focused on convenient foods and beverages. They were proud on their
products are some of the world’s best known brands and they are
enjoyed by billions of people around the world every day. There
products are recognized for their quality, taste and value, and
increasingly, for their contribution to healthier diets.

ABOUT US:
the Pepsi Bottling Group (PBG) is the world's largest
manufacturer, seller and distributor of Pepsi-Cola
beverages, Some of the world's most recognized
consumer brands. PBG became a publicly-traded
company in March 1999 through one of the largest initial
public offerings in the history of the New York Stock
Exchange.

PBG generates nearly $11 billion in annual sales. It

operates in the United States, Canada, Greece, Mexico,
Russia, Spain and Turkey, accounting for more than one-
half of the Pepsi-Cola beverages sold in North America,
and about 40 percent of the Pepsi-Cola system volume
worldwide.

OUR CUSTOMERS
In the U.S. and Canada, most of PBG's volume is sold in
supermarkets, followed by the convenience and gas
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channel, where Pepsi brands have the market-share lead.
The balance of volume is sold in mass merchandising
outlets, restaurants and other fountain accounts.

In the U.S., Canada and Mexico, our sales people

interact directly with most customers to sell and
promote Pepsi products (Direct Store Delivery). In other
international territories, PBG serves customers with a
combination of Direct Store Delivery and third-party
distributors.

Among the services we provide to our customers are

proven methods to grow not only Pepsi brand sales, but
sales in the overall beverage category. Ultimately, our
goal is to help our customers grow their beverage
business by making our strong product line-up readily
available to consumers at every shopping occasion.

OUR ORGANIZATION
The people at PBG reflects the Company's emphasis on
superior sales capability and service. In North America,
more than one-half of PBG employees work in sales,
followed by nearly one-third in operations.

Our organizational structure, based on a general

management model, reflects the same priorities. The

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Vice President/General Managers of PBG's market units
lead marketing and sales efforts in contiguous
geographic areas with common major customers. We
designed our organization to give our market units the
autonomy to serve the needs of individual customers,
develop market-specific strategies, and respond to local
marketplace dynamics. From the General Manager to
the frontline customer representative, the entire PBG
sales force competes on a local level to serve existing
customers and to win new accounts.
The Pepsi Bottling Group is a fast-paced, customer-
focused company, with an entrepreneurial spirit. We
offer careers in sales and sales operations,
manufacturing, finance, human resources, information
technology, field marketing, and general management.
The Company's success hinges on the thousands of face-
to-face transactions our frontline employees conduct
with customers every day. That is an exciting,
empowering career proposition for the individuals who
make up PBG's sales force — and for the teams that
support and lead them. The Company is an equal
opportunity employer and values the diversity of its
workforce

PBG AND PEPSICO

PBG became an independent, publicly-traded company in
March 1999. PepsiCo retains an equity interest in PBG of
about 40 percent.
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As an independent entity, PBG benefits from a much

sharper definition of its role and is able to execute its
business strategy more effectively on a local market
level. PepsiCo's focus is on what it does best, which is
developing innovation, building its powerful brands and
creating the world-class marketing programs to support
them. And, as PepsiCo's largest bottler, we at PBG can
do what we do best: making, selling and delivering more
of those brands, more profitably than ever before.

PepsiCo world headquarters is located in purchase, New York,

approximately 45 minutes from New York City. The seven-building
headquarter 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. PepsiCo global
CEO is Indira K. Nooyi and Sanjiv Chadha is Indian PepsiCo CEO.

MISSION AND VISION OF PEPSICO

PepsiCo’s mission is “to be the world premier consumer Products
Company focused on convenient food and beverages. We seek to
produce healthy financial rewards to investors as we provide
opportunities for growth and enrichment to our employees, our
business partners and the communities in which we operate. And in
everything’s wed, we strive for honesty, fairness ail,

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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;
“PepsiCo’s responsibility is to continually improve all aspects of the
world in we operate –environmental, social, economical—creating a
better tomorrow than today.”

Our vision is put into action through programs and focus on

environmental stewardship, activities to benefit society, and a
commitment to build shareholder value by making PepsiCo a truly
sustainable Company.

History of Soft drinks in India

Soft drinks are a non- alcoholic beverage. It is artificially flavored and
contains no fruit or pulp. India with more than 110crores population is
one of the largest consumer markets in the world after China. Soft
drinks is a typical consumer product purchased by individuals to quench
thirst and secondly for refreshment.
Searching for the point of origin of Indian soft drinks, I first document
on gold spot this was the first brand soft drink in India. it was
introduced by Parle during later part 40’s .cola giant ,coca cola was the
foreign soft drink to be introduced in India in 1965.CocaCola made a
very good beginning and dominated the whole scheme right from the
world go. It faced no competition at that time.

The extraordinary success of soft drinks can be attributed to the

following factors;

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 Absence of contemporary competitive brand.
 Euphoric image build up in the western countries proceeded
the entry into Indian market,and
 Indians are very fond of foreign goods, services etc. due to
prolonged foreign rules.

Parle exports Pvt. Ltd. introduced Limica, Lemony soft drink

in later 1970. Before Limca was introduced they had tentatively
introduced Cola, Pepino, which they had to withdraw soon in the face
of battering conformation with CocaCola.

Three of four groups of Indian companies, which had the required

production capacity, started their own brand of Cola, orange, Lemon
but failed to achieve their goal on national basis.

India always has love and hate relationship with MNC”S which gave a
significant opportunities to soft drink industries in India when Coca-Cola
decided to bind up it was being wasted.
Operation in 1977 rather than bowing to Indian government
insisting on:-
 Dilution of equity, as the government felt that list of foreign
currency
 Manufacturing of the top secret concentrate in India
 Disclosure of the chemical composition of the essence

This left a large vacuum in popular soft drink market, and a vista
was opened to any company with requisite technical, marketing
and organizational skills.

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The existence of coca cola from India in 1977 accelerated the growth of
several Indian soft drinks in the form of tetra pack entered the market,
among the Frooti, jump-in, and tree top where the prominent one. Till
1977, there equipped bottling plants and the distribution network were
of no use. It looks them one year to develop new formula to survive and
gradually came up with Campa, lemon, orange, and cola.

However Parle the pioneer in the soft drinks blazed its way to national
prominence with their product “thumbs-up” bearing the slogan “Happy
days are here again”. This particular slogan helped to win over the
loyalists or addicts to Coca-Cola.

Indian soft drink industry started at a phenomenal rate, and all Parle
products, Gold Spot, Limca and Thums-up became the brand leader in
their own segment.

In spite of all these, the drink market still had large gaps, as claimed by
soft drink manufacturers. To fill these gaps, many soft drink concentrate
and squashes flooded the market .The Indian soft market basically
offered three flavors i.e. Orange, Lemon and Cola.

1988 saw the entry of the multinational company PEPSI to the Indian
market, 11 years after the existence of Coca-Cola. It had name, fame
and edge of being one of the best in the game and it also offered stiff
competition to Parle and Coke.

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HISTORY OF PEPSI
Pepsi-Cola Company was founded by CALEB D BRADHAM in 1890 at
North Carolina in USA. Its CEO is Indira k.Nooyi and in India PepsiCo.
Holding its chairman is Mr.Rajiv Bakshi. The head office of PepsiCo in
India is at Gurgaon. Presently it operates in 196 countries.

Pharmacist CALEB it to cure the disease “DISPARSIA”, It is from this

word that was related to Pepsi. Soon it entered the American market as
soft drink which at that time was mostly dominated by Coca-Cola, but
soon Pepsi was able to dominate the Cola market and thereafter it has
been no looking back. Pepsi and Coca-Cola are engaged in a ferocious
cold war that has taken the whole world by storm.

Pepsi stands 51st position among the fortunate 500 companies of the
world. Its total capital is approx $3000crore and total sales annually are
worth $37crore, half of which comes from beverages and other half

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from food division. The beverages arm of the PepsiCo. Is Pepsi-Cola
company and the snack food company is called Frinto-lay-Inc.

PEPSI THE INDIAN EXPERIENCE

Previously there were three tag “Yehi Hai Right Choice Baby”, “Nothing
Official about It”& “yeh Dil Mange More” which was immediately ring
a bell-it’s to be a Pepsi. Pepsi in short span of its operations in India has
found a place in hearts and minds of the Indian consumers. The success
has primarily been due to the innovative and passionate Indian team
which has been built over the years. Pepsi is a trendsetter managed
and run by Indians, where important decision is taken locally.

Pepsi started its operation in India in 1988in Kanpur and since PepsiCo.
Has set up a fully integrated operation India viz. manufacturing,
research and development, marketing distribution and franchising –
covering fruit/vegetable processing, export, snack and food beverages,
In 1993 PepsiCo. Set up a holding company to further accelerate growth
through new initiatives and joint ventures PepsiCo is fully committed to
India and the national objectives of development of technology and
accelerating exports and employment. It has invested 500crore in India
to develop the local market. Pepsi has distributed exclusive franchises in
India to bottle its total products. There 34 bottling plant of Pepsi in
India. Pepsi directly controls some and rest is under various franchises.

Some special features in Indian scenario

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Pepsi has set up a concentrate plant at Channo, District Sangur, Punjab,
with an investment of 55million. The state of the art plant house a
world – class laboratory where soft drinks from all over the world are
tested. This concentrate plant supplies Pepsi. 7-up teem, Miranda,
Orange, Apple & Lemon flavors to all Pepsi bottling plant in south Asia.
Pepsi has 34 bottling plant in India out of which 8company are owned
and 26 are owned by Indian franchises. PepsiCo has invested heavily on
up- gradation of this bottling plant and has put 5 green field projects in
backward areas such as Jaipur, Bazapur in U.P., Bharuch in Gujrat, and
Sonapur in W.B.and Naclamangala in Kernatka. New project are coming
out Maharashtra and Tamil Nadu.

In addition to the company owned bottling operation [COBO], Pepsi has

26 Franchises owned bottling company [FOBO] units in India. These
franchises manufacturers are also planning to install substantial
additional capacities. I last two years PepsiCo’s franchisees have put up
nee bottling plant in Jaipur, Bhopal, Hajipur [Bihar], Guntur [A.P.] and
Guwahati [Assam] with further investments. PepsiCo Franchisees are
amongst the best in the Pepsi world.

JUICES:
Pepsi Co. plans to launch juices in big way in India, there by helping the
farmer in fruit procurement. PepsiCo agriculture scientist has
undertaken research on mango, guava and orange and these fruits
would be the priority area for the juices launch in India. Presently Pepsi
has one juisic brand.

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EMPLOYMENTS OPPERTUNITIES:
Pepsi provide direct and indirect employment to person in supplying
it’s raw material, packing materials, distribution vehicles, glass bottle,
plastic carets, display rack, fridge etc. and to small artisans, painting and
small trader in market places activity. All the Pepsi business in India is
either in industries with backward linkages with farmer or in service
industry being highly distribution oriented. The Pepsi system operate
over 300 trucks (direct operations), 8000 three wheeler (distributers)
and at least 1000 push carts, serving over half a million outlets in India.
By the year 2005 the no. of outlets to be served are expected to be
doubled.

DEVELOPING SPORTS:
Today Pepsi is one of the main sponsors for sports related activities in
India. It has continued to promote up coming new players of cricket,
football, hockey etc. Pepsi was the official sponsors of the world cup
2007.

Pepsi has developed a Pepsi cricket academy, which would develop over
500 young cricket enthusiasts in next 5 years. Similarly Pepsi cricket
coaching camps and clinics are held to coach young boys in north and
south.

COMMUNITY RELATIONS:
Most of the bottling plant Pepsi is located in backwards area, there by
giving huge employment opportunities in this area. Pepsi, as

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responsible company, undertakes social project in and around the
bottling plant. These include support to the education centre, sponsors
inoculation camps, providing free health check up, initiating sanitation,
drives, promoting literacy drives and helping villages to put up bus
shelter etc.

REVENUES GENERATIONS:
It is estimated that PepsiCo, and its franchises generates over
Rs.600crores to the exchequer by the collection of excise and sales tax.

Chapter 3: Introduction of the organization

3.0 Lumbini Beverage Pvt. Ltd.

3.1 Profile of LBPL

3.2 Organizational hierarchy

3.3 Production process

3.4 Product profile

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LUMBINI BEVERAGE PVT. LTD

Lumbini Beverages pvt. Ltd is franchisee of PepsiCo. India. Lumbini

Beverages pvt. Ltd, a rupees 25crores unit was promoted by the family
of KHILANI in the year 1996 with the proper infrastructure approved by
PepsiCo Headquarter and the unit went into production, subsequent
and marketing operation from 1997. Mr. Ravi Khilani is MD of this
company the plant has 57 production staff 30 executives and 32 tem
members within marketing and seller functions during the pick session
i.e. Between April- July, the no. of production staff at times is increased
to take care of increased production functions.

The unit has capacity of bottling 400-600 bottles per minute or3000
crates of 24 bottles on a daily basis, i.e. when production schedule is on
through out the day with three shift production system. The plant
follows international quality audit standard for the purpose of

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maintaining quality controls in the quality of the product because the
quality control function, by far is the most important criteria for
purpose of competing in terms of quality in the contest of the market
competition.

This bottling unit at Hajipur has created a source of employment for a

large no. of population residing in the Bihar and has also come out with
quality/treated water resources, which is now being thought of
diverting in to near by agriculture sector as an ongoing source to
facilitate of management. This unit in the year to come should one of
the most important industrial zones in this part of the country and this
reality manufacturing and marketing unit should be a set of attraction
as far as commercial activity are concerned.

Profile of LBPL
Company land area : 12 acres

Location and authority : EPIP, Industrial Area, Hajipur

Name of Director/Occupier : Mr. Charan Khilani

Name of the MD : Mr. Ravi Khilani

Name of CEO : Mr. G.P Singh

Name of FM : Mr. Dhawan

Name of HR manager : N.K Prasad

Industrial license no. : Regn. No. - H 12475(c)

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Factory license no. – 66750/VLI

Date: 16.08.1997

F.P.O. License no. -10607/97

Capacity : 1500 bottles per minute

Nature of product : Soft drinks, Pepsi, Mirinda, Soda, Slice,

Aquafina

No. of employees : 200 +150 (max) seasonal labors

Control board : No. 1877. Date – 07.04.1997

BOARD OF DIRECTORS
1. Mr. Charan Khilani (Director)
2. Mr. Ravi Khilani (Managing Director)
3. Mr. Manoj Khilani (Plant Director)
4. Mr. G.P.Singh (CEO)
5. Mr. Arun Kumar Singh (TDM, Patna)

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ORGANIZATIONAL HIERARCHY

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The process of manufacturing of aerated water (soft drink) like pepsi

brand product is divided into five main parts such as:-

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1) WATER TREATMENT.
2) SYRUP MAKING.
3) BOTTLE WASHING.
4) FILLING.
5) TESTING OF PRODUCT.

WATER TREATMENT
Water treatment is very essential in soft drinks plant as the nature and
quality of varies from place to place. To set uniform and standard
water, the process of treatment is carried on. The water taken out
from bore well having depth of 500m by the help of motor pump &
pipe lines. are connected to the storage tank where is pre-chlorinated
by chlorinator & then by the help of pipeline comes to a treatment
tank called “Coagulation tank” where to this water, solution of
different strength of bleaching powder, ferrous sulphate, hydrated
lime are added through dosing pump to reduce the alkalinity
hardness, kills the bacteria and the pH become 7.5.Mechanical
stripper mixes the chemical & then suspended matter settles down as
sludge& clear water passes to retention tank. From this tank the water
passes through sand filter containing fine sand and pebbles & carbon
filter containing granular carbon & finally through the water
polisher ,micron filter, UV lamp to ensure clear & sanitary water for
use. Further water is used in bottle washer &boiler needs softening
.For this purpose, the water from storage tank after passing through
two water filter beds containing fine sand and granular carbon
respectively comes through a bed of resin where it is softened. This

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softened water is essential to use in the boiler & bottle.Water to
reduce scale formation inside the machines.

Description of the above ray diagram

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Firstly the water should be taken out from the earth through motor
from bore well which is about 500m deep. After that it store in the
underground tank which is also know as storage tank having capacity
of 1.5lakh litre at that time the hardness of water is 6.8 ppm.it has two
in number. Then it reaches at coagulation tank having capacity of
80,000 litres in which ferrous, lime and bleaching powder is there
which is used to remove the hardness of the ground water then it
reaches to intermediate tank and after that it passes through sand filter
in which small pebbles and fine sands are there ,where they remove
small particles and transfer to the ACF i.e. activated carbon filter in
which mainly chlorine is used having volume of 30 cubic meter per
gram then it passes through 5 micron cartilage and UV light to
remove small microbes.

SYRUP MAKING

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For the syrup making of the particular brand, calculated quality of
sugar, water, activated carbon (powder) & by flow super cell known
as filter aid are taken into a sugar space to enter stream & also filter
by motor with agitated sugar syrup called raw syrup is prepared by
dissolving the sugar with continues stirring and heating by steam
supplied by oil fried boiler. This hot syrup by the help of pump is
filtered through a filter press attached with the series of quality filter
paper to separate out carbon particles. Clear hot syrup by the help of
SS pipeline passes through water P.H.E. for cooling then another
P.H.E. circulated by glycol for further cooling. The chilled syrup
comes to the mixing tank, which is cleaned and sanitized prior to use.
After circulation of sugar quantity by Brix Hygrometer, concentrate
are added and mixed thoroughly by the mechanical stirrer filter to the
tank. This syrup is known as finished syrup ready to drink the
concentration mainly. The liquid part are also kept in a cold store, the
temperature of the finished syrup is fixed in the room temperature is
also maintained by air conditioner. all the containers used in the syrup
making are cleaned and sanitized by sodium bi- carbonate, strong
chlorine and hot caustic soda solution.

BOTTLE WASHING
Bottle washing is an important part in the soft drink plant. The empty
durable and restorable bottles used are returned from market in plastic
crates, and fed to bottle washing machine (washer). The machine has
double end system with circular chain to carry the bottles. Caustic
soda, tri sodium –phosphate, sodium glyconate are added to the
caustic tanks filled in with water heated by stream supplied by bathe
boiler. The empty bottles enter to the caustic solution and finally

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washed with water through spray-jets fitter dared discharged in other
end. The washed bottles after proper inspection are directed to filling
machines through conveyor. Cleaning and smooth running of chain
carrying bottles. SU-260 and SU-773 are used for bottle cleaning,
shinning and mold removing concentration.
FILLING
Finished syrup and treated water lime are concentrated to a dosing
pump, which mixes syrup and water in the ratio of 1:5 and syrup
mixed with water enters to carbonate tank to mix with carbon di
oxide gas., which are preserved in cylinders for use. The cylinder is
connected through carbon di oxide pressure and temperature of
liquid; we use recording control (Taylor). The syrup passed through
PHE that is cooled itself by the circulation of chilled glycol supplied
by chilling compressor. To run the machine for chilling F-22 gas is
used. The syrup being chilled easily mixes with carbon di oxide and
enters to filter for billing .The filter is fitted with filing valves and
lift cylinders. The lift cylinders function pressure of air supplied by
an air compressor. The syrup known as beverages in this stage is
filled in the cleaned bottle, which ar4e durable in the nature and
returnable by the buyer. By the filling machine by a counter pressure
of carbon di oxide gas. After beverages is filled in bottle goes it goes
to the crowner where with the help of crown corks the bottle are
sealed(crowned) to protect the carbonation, flavor outside
contamination and spoilage. The finished product are coded decoding
machine and inspected properly by inspection light while passing
through the conveyor fitted with SS chains. The empty plastic rated
passing through a conveyor enter to crates, which are durable in

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nature and returnable by buyer, put on plates and sent shipping for
shipment. The entire container in contact with syrup are properly
cleaned and sanitized by soda-bio-carb, hot water, hot Caustic soda
solution and strong chlorine base.

TESTING OF PRODUCT
Finally the finished syrup during bottling is tested in laboratory to
meet the parameters and also to get the standard and quality product.
To maintain the standard and uniformility in products, the sugar
contents and carbonation in the filled bottle are checked in regular
intervals by Brink hydrometers refract meter and pressured gauge. A
digital pH meter tests the pH. Electronic digital balance is used to the
weight chemical to conduct test in the lab. The purity of carbon
dioxide is checked by a carbon dioxide purity tester. The
microbiology test of the products and water used in syrup making and
production are also done to ensure that the product is free from any
bacteriological contamination. To conduct the micro test, hot sterilizer
incubator autoclave, pads filler membranes are product used. the
diesel generator is operated in case of electricity failure for smooth
operation of the plant and for drawn electricity from the state
electricity board the transformer is used.

RAW MATERIAL INPUTS :-

A soft drink bottling plant the following things as a raw materials:-
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 Sugar
 Flavor
 Water
 Carbon di oxide
 Crown cork
 Glass bottle
 Plastic crate.
Sugar
High purity crystal sugar is required to produce the sugar syrup for
soft drink. The main supplier of sugar for Lumbini beverages Pvt. Ltd.
is M/s KCP Ltd.chennai. The usual requirement of sugar is around
800 gm par carat for all flavors.
Flavor
Pepsi food Ltd. is supplying all essence of flavor for Lumbini
Beverages Pvt. Ltd. from their plant Chennai, Bhavnagar (Punjab).
Water
The required water of Lumbini Beverages Pvt. Ltd. is being met from
the high yielding deep boring well with pumps. Adding softening
plant & DM Plant so as to meet the required quality of water then
treats the raw water taken out from these well. Water quality is being
strictly adhered through regular sampling & analysis.

Carbon dioxide
Carbon di oxide gas of required purity is being carried on from
Hindustan Gas India Ltd. and also from IOC Patna and Barauni, as

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per requirement of flavor. The usual consumption of carbon di oxide
is 1 kg per 10 carats in case of Pepsi, 1 kg per 5 carats of Soda water
and the rest flavor 1 kg per 114 carats.
Crown Cork
Lumbini Beverages Pvt. Ltd. takes crown cork from Manksic Crown
Ltd., Bhopal and Ghaziabad respectively.
Glass Bottle
Lumbini Beverages Pvt. Ltd. takes flint and green glass bottle from
Hindustan National Glass Ltd. Tapovan (Hrishikesh).
Plastic carats
Lumbini Beverages Pvt. Ltd. takes plastic crates from Neelkamal
Plastic Ltd., Nasik and Supreme Industries Ltd., Nasik.

PRODUCT PROFILE

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3.5 SWOT ANALYSIS

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After doing 8 weeks field work and survey I can take it out the SWOT
analysis for Lumbini Beverages Pvt. Ltd. and Pepsi Brand.

Strength

 Lumbini Beverages Pvt..Ltd. is Franchisee Owned Bottling

Organization (FOBO) of world’s famous cold drink company
Pepsi.
 LBPL uses state art and fully automatic machines and
technology for the production and bottling of the soft drink.
 It has a very strong network and built market and currently
holds all the parts of the state.
 It has wide range of product varieties & takes back breakage,
burst bottles etc.
 Though it has strong brand equity, brand image , it can
survive in the most competitive situation.
 It has built market & market share and holds more % with
respect to its competitors.
 Customer retention and satisfaction after sales is good.

Weakness
 No cost cutting program for the products.
 Promotional activities in the rural market are not up to the
mark as compared to the urban market.
 Brand Pepsi in the cola flavor is one of the popular lagging
behind its nearest competitor, only due to high sugar content
and less thrilling taste.
 Not availability of all the products on demand.
 Lacking of communication with retailers.

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 Timing of distribution is not very good.
 The cooling system is not distributed properly.

Opportunities

 Although in the cola market there are many competitors,

Pepsi still has the opportunity to enlarge its market share
because the cola in the market is quite monotonic. Most of
the end user is young people. There are still some people who
do not like the taste of the cola. So we can try to provide
some other taste of cola such as adding some lime juice. We
can change the flavor in order to meet different taste of
different people.
 New innovative idea for advertisement like road show like “
bheja fry 7up try” & mountain dew campaign

Threats

 As to the threats, all of us know that Pepsi-Cola and Coca-

Cola have the completion for about 80 years. Although
Pepsi-Cola have won several times during this completion.

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

Chapter 4: Marketing Strategy & Distribution Channel

4.0 Marketing strategy

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4.1 Marketing mix

4.2 Promotional activities

4.3 Advertising & sales promotion L.B.P.L

4.4 Merchandising policy

4.5 Distribution channel of LBPL

MARKETING STRATEGY:
Marketing Strategy is the complete and unbeatable plan designed
specifically for attaining the marketing objective of the firm. The
market objective indicates what the firm indicates, what the firm

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wants to achieves, the marketing strategy provides for achieving
them.
The marketing is not just idea. It is a well outlined plan, and there
are different ways to formulating it. Basically formulating of
marketing strategy consists of two main steps.
Selecting a target market, assembling the marketing mix, actually,
the target marketing and marketing mix together constitute the
marketing strategy of the firm.
When the Pepsi food company entered in the Indian soft drink
market, the market was already prevailed by coke and previously it
was Parle. Pepsi tried to establish in India with a unique marketing
policy. Pepsi took into consideration of youth segment target
market. Though the advertisement of Pepsi highlighted the style of
living of young generation with different walk of life, Pepsi
brought in its advertisement different stalwart’s personalities from
fields like young cine stars, sport stars and famous personalities
from different fields. It has attracted the young generation and of
course increase the sale of Pepsi, also organized many national and
international sports events to attract the young generation.

MARKET MIX OF L.B.P.L

The set of controllable tactical tools:

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A product, place, service and promotion (4p’s) that the firm blends
to produce the response it wants in the target market. These are the
following 4ps.
 Products: - That could meet the identified needs of chosen
consuming groups.
 Place: - It performs various functions like transportation,
warehousing, channel management etc. so the products easily
reach the consumer.
 Promotion: - The firm carries out a no. measure like
personal selling, advertising and sales promotion
programmed with view to communicate to the consumer and
promoter of the product.
It is the mechanism to achieve the consumptions of
marketing process, striking the level of price that is accepted to the
firm as well as consumer.

4P’s policies of the Pepsi products:

1. Product: - There are five lines of products of soft drink in India
that is almost matched with international quality product line.
 Pepsi - 200 ml, 300ml, 600ml. and 2000 ml.
 Miranda - 200 ml, 300ml, 600ml. and 2000 ml.

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 7 up - 200 ml, 300ml, 600ml. and 2000 ml.
 Mountain Dew - 200 ml, 600ml. and 2000 ml.
 Slice - 250 ml, 500ml, and 1000 ml.
2. Price: - Product price are fixed by Pepsi Co India according to
competitors product price.
3. Place: - Pepsi has a strong channel of distribution, and
intermediaries command the distribution work.
 Plant - Depot - Distributor - Consumer.
By this simple distribution, Pepsi is doing well. The company is
trying to reach every remote village area. The company has
succeeded to some extent in reaching its target.
3. Promotion :- In the specific, sales promotion methods are those
sales activities that supplement both - personal selling and
advertising and co-ordinate them and help to make them effective
such as display, shows and exposition and demonstrations and
other recurrent selling efforts not in ordinary route.
Pepsi has variety of tools and techniques of sales
promotion. Like for example sales promotion letters, catologs,
point of purchase (POP), display, customer service program and
demonstration of free sample.
PROMOTIONAL ACTIVITIES (FOR RETAILERS)

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Promotional activities consist of various means of communicating
persuasively with the target audience. The important methods are:
Advertisement: - Where an identified sponsors pays media
(such as TV) to transmit to target consumer.
Personal selling:- Where sales representative employed by the
firm engage in interpersonal communication with individual
consumers and prospective customers.
Sales promotion:- Where the market utilizes displays,
demonstrations, premiums, contests or similar devices.
Publicity and Public relation:- Help to stimulate supportive news
items about the firm and its product that have greater credibility
with public than advertisement.
Of all the methods of promotional activities that constitute the
promotion mix, sales promotion is the only one method that makes
use of incentives to complete the “Push Pull promotional
strategy” of motivating the sales force, the distributor and the
consumer transacting a sale.
According to “American Marketing Association” sales
promotion refers “Those activities other personal selling,
advertising and publicity, that stimulate consumer Purchasing and
dealer effectiveness, such as display, shows and exhibition,
demonstration and various other non-recurrent selling efforts not in

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ordinary. “Sales promotion” is also known by the name of
“Extra Purchasing Value” (E.P.V.).

VISI COOLAR DISPLAY,OYE BUBBLY CAMPAIGN

MS DHONI, SHAHRUKH, DIPIKA

MEANING AND OBJECTIVE OF SALES PROMOTION

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SL. Sales
M eaning Obje ctive
No Promotion
Offering product at lower To encourageimmediate
1 Price off offers than the normal price sales, attract non nusers,
induce new product trial.
offering more quantity of To e nc o ur a ge lo nge r
the sa me p ro d uc t a t no d uration co nsump tio n,
e xt r a c o s t o r a ve r y highest or excess quantity
Quantity off
2. no mina l inc re a s e in the mo v e me n t fr o m t h e
offer
price the larger quantity fa c t o r y, t r a d e u p
pack. c o n s u me r fo r h ig h e r
quantity packs size.
O f fe r o f a n a r t ic l e o f To encourage purchase
me r c ha nd is e a s a n s t imula t e lo ya lt y, o ff
3. Primium incentive in order to sell season sales promotion,
product of service induce trial of premium to
the consumer.
W he n t he c o ns ume r is to e nc o ura ge p ro d uc t
entiled to redeem specific trial, build loyalty, trade
standeard certifecate for a up regular users stimulate
p r o d uc t fre e o r in p a r t re-purchase rate, solicit
p a yme nt. C o up o ns a r e enquiries.
u s e d b y b o t h t h e
ma nufa c t ur e r s a nd t he
4. Coupans
d e a l e r s fo r s a le s
promotion. Coupons may
be distributed by e- mail,
by media advertisements,
d o o r - t o - d o o r. I n s id e
p ro d uc t p a c k a ge o r b y
dealers on purchase.
W h e n in d iv id u a ls a r e T o c r e a t e b r a n d
invited to compete on basis awareness and stimulate
of creative skills. The latter int e r e s t in t h e b r a nd
is based on the chance or acquaint consumers with
Consumer luck factor. brand usage and benefits
5. contests and build traffic at the store
lucky draws p r e c ip it a t e b r a nd
p ur c ha s e . O b t a in
c o ns ume r fe e d b a c k ,
pjromote advertisiment
theme of the company.
O ther than normal trade To push more sales to
6. Discounts
and cash discounts. trade early cash recovery
Tho se sp ec ial d isp la ys, To attract traffic at the
racks banner, exhibits, that r e t a il s t o r e s , r e mind
Point-of-
a re p la c e d in t he re ta il customers, encourage
7. Purchase
store to support the sale of impulse buying, ensure
(POP)
a a brand. visibility to the advertising
campaign.

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ADVERTISING & SALES PROMOTION IN LBPL
Advertising and also promotion activities play a vital role in entire
marketing efforts. Without these aspects a quality product can not
survive in the market. Advertising and sales promotion tools are
most essential for the modern global marketing. This chapter has
therefore been devoted to the studies of advertising and sales
promotional activities in Lumbini Beverage Pvt. Ltd. The two
basic objectives for carrying out such various promotional
activities by Lumbini Beverages Pvt. Ltd. is “To generate more
sales as well as to create and maintain an image of its product”
L.B.P.L. carries out its promotional activities as controlled and
integrated programmers of communication and material design
present its soft drink to the perspective customers. It also helps in
communicating the need satisfying of soft drink to facilitate the
sales eventually to contribute towards the profit in long run.
The sales used L.B.P.L. for fulfilling the various purposes for
its promotional activities are the following:-
 Food ‘N’ Fizz
 Space Club
 Payaas bujyhao profit badhao
 Agreement
 GOD(Glass on deposit)

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 Displaying equipments
 Scratch card, lucky draw & prize.

MERCHANDISING POLICY
In today’s fast moving industry and highly competitive market,
only those products are likely to be purchased which are capable of
hitting the impulse of the consumers. The products appeal should
be able to penetrate and get embedded into the perpetual space of
the consumer’s mind. The concerned product should induce to the
consumers. Pepsi believes that “Jo Dikhta Hai Wahi Bikta Hai”
i.e. any product which is visible is bound to be sold.

METHODS OF MERCHANDISING
 Visi cooler placement
 Glow signboard
 Paintings
 Crate Stacking
 Umbrella
 Banners
 Display
 Special Schemes

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DISTRIBUTION CHANNEL OF “L.B.P.L
To make its products available at the right place, at the right time
in the market, at the right place, the sales department of the
company plays major attention towards controlling the channel of
distribution.
The company right from its beginning stage maintains single type
of marketing channel. The nature of channel is as follows:

COMPANY

DEPOT

DISTRIBUTORS

RETAILERS

CONSUMERS

ABOUT DISTRIBUTORS
At first, soft drink is supplied to distributors. Retailers cannot take
the delivery directly from the company. They have to take it from
their respective or nearest distributors. The distributors selected on
the basis of assurance given by them regarding minimum sales,

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which they have to maintain annually. The selection is also done
on the financial position and reputation of distribution in the
market. As for example, first priority is given to those people who
are in cigarette business. Depending upon market, each distributor
in its initial stage, deposit some security money. This amount
varies between five thousands to the thousand. The distributors, at
first have to seek the permission of the sales department for the
number of cases of soft required by them. After getting the proper
authority from the sales department, they take the delivery from
the shipping department paying the requisite either in cash or as
demand draft.
The distributors can be dropped if they fail to achieve the required
target to sales. They can be also dropped when they don’t follow
the instructions given by the company or when they charge high
price or when they are engaged in black marketing, loading etc.
But the company has not dropped any of its distributors till now.
The supply of soft drinks to the distributors depends upon the ups
and downs in the sales. But, in the initial stages, the distributors
have to sell up to a minimum target set by the company or as
decided by an agreement between the company and the
distributors. In the last stages soft drink is supplied as and when
demanded by the distributors.

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ABOUT RETAILERS
The distributors select the retailers. There is no relation between
the company and its retailers. On the other hand there are no
definite and fixed criteria for the selection for appointment of
retailers from the side of distributors. Any one like “Panwala”,
“Cigarette shop” or any other shopkeeper can have the stall for the
sale of soft drinks and they are called or dealers. They have to give
assurance to the concerning distributors for better sales and at the
time of taking delivery they have to deposit the security that is the
change for the empty bottles with specified purchasing price.
Generally, there is no compulsion on the part of distributors to
provide the transportation facilities to their retailers, but the
distributors of the big areas like Patna, Muzzaffarpur, Patna
provides the transportation facilities to their respective retailers.
The distributors and retailers are independent to sell as they want
but are controlled to some extent by the company also, as they
have to give some assurance regarding minimum sale. It happens
so because they are given some incentives also. They are fully
independent to gear up the market, as they want.

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Chapter 5: Product Performance of Pepsi
5.0 Training product comparison
5.1 Product availability
5.2 Pricing of products
5.3 Pepsi Performance in comparison

Comparative Products

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Major CSD Brands
SL.-
No.
Flavor PCI CCI

Coca-Cola,
1. Clola Pepsi
Thums Up

2. Clear Lime 7 Up, Mountain Dew Sprite

3. Cloudy Lime Mirinda-Lime Limca

4. Orange Mirinda Fanta

In above table, I have shown product target in the market. Both

companies try to substitute each other product in the market. When
a company don’t fulfill the demand of market then other company
substitute that product with own product. In the market many time
seen that consumer demand a product according to his desire, but
due to lack of supply he switch over of substitute product. So,
companies always want with substitute product for enlarging his
market share.
Here, Thums Up and Coca-Cola is substitute for Pepsi, Sprit is
substitute for 7 Up and Mountain Dew, Fanta is substitute for
Mirinda & Limca is substitute for Miranda Lime.

Products Availability of Pepsi

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SL.No Products 200ml 250ml 300ml 330ml 500ml 600ml 1000ml 1200ml 2000ml

1 Pepsi         

2. Pepsi diet          

3. Pepsi Gold         

4. Mirinda         

5. Mrinda Lime         

6. M. Sorbet         

7. 7 Up         

8. M. Dew         

9. Pepsi Can         

10. 7 Up Can         

11. Mirinda Can      

  

12. M. Dew Can         

13. Diet Can         

14. Slice         

15. Aquafina         

16. Tropicana         

17. Everest Lehar         

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Pepsi Products Price list for Retailers
SL.No Products 200ml 250ml 300ml 330ml 500 ml 600ml 1000ml 1200ml 2000ml

1 Pepsi        

2. Pepsi diet           

3. Pepsi Gold           

4. Mirinda          

5. Mrinda Lime          

6. M. Sorbet           

7. 7 Up         

8. M. Dew          

9. Pepsi Can          

10. 7 Up Can          

11. Mirinda Can           

12. M. Dew Can          

13. Pepsidiet Can           

14. Slice          

15. Aquafina           

16. Tropicana        

17. Everest Lehar            

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Pepsi Products Price list for Customers

SL.No Products 200ml 250ml 300ml 330ml 500 ml 600ml 1000m 1200ml 2000ml

1 Pepsi          

2. Pepsi diet            

3. Pepsi Gold           

4. Mirinda          

5. Mrinda Lime           

6. M. Sorbet            

7. 7 Up            

8. M. Dew           

9. Pepsi Can          

10. 7 Up Can          

11. Mirinda Can           

12. M. Dew Can           

13. Pepsidiet Can            

14. Slice           

15. Aquafina           

16. Tropicana           

17. Everest Lehar           

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Coca-Cola Products Price list for Customers

SL.No Products 200ml 250ml 300ml 330ml 600ml 1000ml 1200ml 1500ml

1. Coca-Cola        

2. Thums up        

3. Sprite        

4. Fanta        

5. Limca        

6. Maaza         

7. Coca-Cola Can        

8. Thums Up Can         

9. Sprite Can         

10. Fanta Can         

11. Coke Diet         

12. Kinely Soda         

13. Kinely        

14. Fruit Jucie         

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SL.No. Months 2007 2008

arget Achieved % Target Achieved %

 arch      

 pril      

 May      

 June      

otal      

120 105
100 85
72 68
80 70 67 67
60 65
55
60 40 45
40
20

0
Ta rg e t (0 0 0 )
Jan Feb M a rc h A p r il
2 0 0 6 A c h ie v e d
M o n th s 2 0 0 7 A c h ie v e d
After comparing these two year data I have reached this calculation that
this year Pepsi team of Patna have preformed very well in compared to
last year. This In Patna Pepsi investment is very short in comparing to
coke but selling graph show Pepsi Market share increased in compare to
last year.

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CHAPTER 6: DATA ANALYSIS AND INTERPRETATION

6.0 Interpretation of outlets
6.1 Market share
6.2 Market share of different soft drinks
6.3 Market share of equipments
6.5 Percentage share of glow sign board
6.6 Percentage of satisfied distributors

INTERPRETATION OF OUTLETS
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TPYES OF OUTLETS

1 0 O th e r

9 P h o n e b o o th s 1 G e n e r a l/ K ir a n a s to r e s

8 Ic e - c re a m /
Ic e -c e n te rs

7 c o ld d r in k s
c e n tre
7 C in e m a H a ll

5 H o te l
2 sw eet shop
4 R e s ta u r a n ts

3 P an shop

Interpretation : Many types of retailers in the market to sell the

pepsi & Coke products I have taken that list form company & classified
that shops according to company guidelines. General & Kirana stores
are measure thing for company because their share in one - third So
company always try to make good relationship ship with them because
20% sell come form them.

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MARKET SHARE Over all market share of the cold drinks cos.
in Patna

SL. No. Companies Name Total (%)

1. PCI 26

2. CCI 38

3. Parle agro 8

4. Amul 8

5. Other Local Player's 20

Total (%) 100

PCI
CCI
Parle agro
Amul
Other

Interpretation: PCI market share is little bit short in comparing to Coke

for enlarging more market share PCI will have to invest more in the
market and it advertisement.
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Over all market share of PCI & CCI in Patna

20% 17 %
15% P C I
15% 13 % 12 %
10 % 11 %
10% 9 %
8 %
C C I
5% 4 %
1 %
0%
C o la C le a r C lo u d y O ra n g M ango
L im e L im e

Interpretation :- On the basis of my collected data in Patna cold drink

market I have reached this stage that I can show overall market share of
all cold drink flavor.

MARKET SHARE OF DEFFERENT SOFT DRINKS

The Cola Market:
Product % Share
Pepsi - Cola 42 %
Coca-Cola 13 %
Thumps Up 45 %
Total 100 %

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Market Share (%)

Pepsi-Cola
Coca-Cola
Thumps Up

Interpretation: There is dominancy of Thums Up in the cola

segment of soft drinks in the market. Pepsi is its competitor.

The orange flavored soft drinks:

Product % Share
Mirinda 52 %
Fanta 38 %
Other 10 %
Total 100 %

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Diff. orange flavor market share

Mirinda
Fanta
Other

Interpretation: The Graph shows that there is a majority of

customers of Mirinda Orange flavor in the market. It dominates the
market over Coca-Cola’s product Fanta.

Clear Lime Market share :

Product % Share
7 up 45 %
Sprite 55 %
Total 100 %

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Market Share of clear lime

Dabur Real
Tropicana
Godrej
Others

Interpretation : There is great dominancy of Sprite in the market.

Customers always demand. They take 7 Up only as a substitute of that.

Mango flavor market share :

Product % Share
Slice 30 %
Maaza 40 %
Frooti 30 %
Total 100 %

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Market Share of Mango flavor

PCI
CCI
Slice 3

Interpretation : The Graph shows that there is a majority of

customers of Maaza (mango) flavored in the market. It dominates the
market over Pepsi’s product Slice.

Market share of Juice

Product % (Share)
Dabur Real 62 %
Tropicana 20 %
Godrej 8%

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Other 10 %
Total 100%

Market share of Juice

Dabur Real
Tropicana
Godrej
Others

Interpretation : The Graph shows that there is a majority of

customers of Dabur real Juice in the market. It dominates the market
over Pepsi’s product Tropicana.

PERCENTAGE SHARE OF CHILLING EQUIPMENTS :

Percentage Share of VISI Coolers :
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Company No. (%)
PCI 26 1.60
CCI 1450 89.17
Own 150 9.23 %
Total 1626 100 %

Market Share of Visi Cooler

O wn 9 .2 3 %

CCI 8 9 .1 7 % %

PCI 1 .6 0 %

0 .0 0 % 2 0 .0 0 % 4 0 .0 0 % 6 0 .0 0 % 8 0 .0 0 % 1 0 0 .0 0 %

Interpretation : From the above diagram, it is clear that 89 % of

Vist cooler is of Coca-Cola while 1.6% is that of Pepsi and own is 9.23
%.

PERCENTAGE OF GLOW- SIGN BOARD

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Company No. %
PCI 50 17 %
CCI 250 83 %
Total 300 100 %

% of Glow board

PCI
CCI

Interpretation : From the above diagram it is clear that 17 % of glow

sign board is of Pepsi while 83 % is that of Coca-Cola.

PERCENTAGE SHARE OF SATISFIED DISTRIBUTORS :

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Company No. of distributor Satisfied (%)
PCI 06 04 31
CCI 10 09 69
Total 16 13 100%

Distributors Satisfication (%)

PCI
CCI

Interpretation :- During my training and research I have found Pepsi

distributors are not satisfied like Coke distributors. During my four

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month’s research two distributors had quit to company due to some mis-
understanding.

Chapter 7: Market survey

7.0 Research methodology
7.1 Dealer survey
7.2 Limitations of the research

RESEARCH METHODOLOGY:

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All the findings and conclusion obtained on the survey done in the
working area. With the limit, I tried my best to select the sample
representative of the whole group. During my job training I
maintained different routes during my dealer survey. I have
collected data from the Depot of Patna under the
organization itself.
Data-sources
Retailers/Dealers (Cold drinks stalls, Ice stalls, Hotels, Restaurants
Sweet shop, Pan Shop, General Stores, Telephone Booths etc.)
Depot internal Company’s Records etc.
Research - approaches
Survey
Research - instrument:
Interview Schedule
Sampling - plan :
Sampling unit Distributor Retailer
Sampling size 02 250
Sampling procedure :
Census survey
Contact method
Personal interview

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Secondary Data Collection :
The secondary data was collected on the basis of organizational
files, official bulletins and records, official journals, published data
in the annual general report and through various preserved
information in the data base at the Pepsi sites e.g.
www.pepsico.com, www.pepsizone.com etc.
Primary Data Collection:
All the dealers/ retailers were personally visited and interviewed.
There was a format for collecting the details of the dealers. The
format was filled by taking the information from the dealer of by
monitoring the shops.

DEALER-SURVEY
Dealer-survey, as the word indicates, is the survey of every dealer
of soft drinks in the area. For our practical purpose, the dealer not
only includes the authorized dealers, but it also includes all the
retailers-big or small grocery shops, stationery, restaurants, beetles
shop etc., besides these, the various exclusive stalls and sales of
pantry cars are also included in it. In a nutshell, by dealer survey, I
mean who is dealing with the soft drink in someway or the other in
large or small quantity directly or indirectly.

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Thus, my study includes all such dealers, which includes
following aspects:
 No of routes covered by Depot
 Crate strength
 Per day sale
 Chilling ad
 Advertising
 Nature of outlet
Schemes of Pay-off
I had to visit each and every outlet and personally interview them.
In order to know the market share of Pepsi and its competitors, I
have conducted a survey ap Patna and its surroundings area. By the
help of survey, I can find out the reason behind non-availability of
Pepsi in the specified area.
The knowledge of case-stock indicates our “case-in-trade” and that
of competitors. This will indicate our “case-velocity”, which will
help to plan our bottle as whether our distribution is effective or
not. If my case-stock is low then I may decide for a “case stocking
campaign”. Feedback from market place regarding servicing of
dealers will help us to improve our service in the lacked areas.
Therefore, appropriate marketing strategy can be worked out
depending upon the findings. Some more uses of Dealer-Survey:

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Depot-effectiveness
The Survey can improve the distribution network in these ways:
 Immediate activation of non-buyers
 Improve the dealer coverage
 Increase the realignment of routes
 Better control through route card
They should visit the counter on the daily basis including the
remote places.
 Salesman should visit the counter on likely basis.

Market knowledge:
Dealer-Survey gives the total profit of the market by following:
 Location of dealers
 The type of dealer
No of dealers who keep Pepsi, Coca-Cola and comparing the
stock,
The marketing inputs with respect to
 Advertising
 VISI Cooler
 Servicing

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Training group for future executives:

Good investigators from these surveys can be recruited to take up
future jobs. These people will be ideally suitable, as they would
know the market thoroughly.

LIMITATIONS OF THE RESEARCH

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

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Chapter 8: Conclusion & Suggestion

Conclusion
Suggestion

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CONCLUSION
(1) The whole analysis shows that are only two companies dominating
in the soft drinks market - Pepsi- Cola & Coca - Cola. There is
neck-to-neck competition between these two companies.
(2) Coke has invested more in the market. Distribution of - VISI
Coolers and display of Glow Signs board is far more than Pepsi.
So, more investment is needed to break the brand establishment of
Thums Up and Sprite.
(3) In all the areas in Patna, almost all the retailers are not satisfied
with the distribution network of the Pepsi products.
(4) Most of the retailers want glow signboard chilling equipments,
which they are asking from long time.
(5) In Cola segment, Thums-up and in lime segment, Sprite is the
main competitor of Pepsi.
(6) Most of the consumers don’t like the taste of Pepsi due to its
sweetness and low fizz.
(7) All the products of Pepsi like 7 up & Slice are not provided when
the retailers demand it.

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SUGGESTIONS
(1) Pepsi should come out with an advertisement, which can block the
customers’ mind and can change the customer’s perception about
the product.
(2) Pepsi is sweet and low fizz soft drink that everybody knows, so
lots of people do not like, therefore to catch the customers, Pepsi
should come with more fizz like Thums-up.
(3) Executives should take the feedback from the service of the
salesman and the distributors.
(4) Salesman should have better interaction with the retailers which
results in by company from time to time.
(5) The criteria to provide Glow Signboard, Flax board, VISI
Cooler, and OYC should be changed and a separate department
should handle this.
(6) All the Pepsi products should be provided at required level to
snatch the competitor’s market e.g. 7 up for Sprite, Mirinda for
Fanta and Slice for Mazza which is dominating the market at
present.

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ANNEXURE
Glossary of Terms
Questionnaire
Bibliography

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GLOSSARY OF THE TERMS

FOBO - Franchise Owned Bottling Operation.

COBO - Company Owned Bottling Operation.
FMCG - Fast Moving Consumer Goods.
MNCs - Multinational Companies
MMM - Master of Marketing Management.
GOD - Glass on deposit
RBG - Return on bottle glass.

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QUESTIONNAIRE
Name of the
outlet: ...........................................................................................
Address: ....................................................................................................
........
1. Q. Which brand of soft drinks you deal in?
(a) Pepsi-Cola (b) Coca-Cola
(c) Both (d) Other
2. Q. Which brand of cola provides you better facility?
(a) Pepsi-Cola (b) Coca-Cola
(c) Both
3. Q. How many crates of Pepsi-Cola & Coca-Cola you sell/day?
(a) 0-1 crates (b) 1-2 crates
(c) 2-3 crates (d) 3 & above
4. Q. Which company’s signage you have in your outlet?
(a) Pepsi (b) Coca-Cola
(c) Both (d) No signage
5. Q. Which type of Signage in your outlet?
(a) Flex-Board (b) Dealer Board
(c) Glow Sign Board (d) Both

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

Thanking you

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BIBLIOGRAPHY:

 Prof. A.K. Basu (Faculty Guide)

 Mr. Arun Kr. Singh (TDM)
 Mr. Binay Kr. (DEPT TDM)
 Mr. Banwari Shukala (CE)
 Marketing management (Phillip Kotler)
 Marketing Management (DEP. APP. ECO. & COM)
 Research Methodology (C.R. Kothari)
 Research Methodology (A.K. Singh)
 Business Research Methodology (DEP. APP. ECO. & COM)

WEBSITES:

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 www.pepsico.com
 www.pepsizone.com
 www.cocacola.com
 www.amul.com
 www.parle.com
 www.fao.com
 www.notjustsurveys.com

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