A study of comparative visual Merchandising strategies with reference to Pepsi and

Coke

CHAPTER-1

INTRODUCTION

INTRODUCTION

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1. MARKETING
Marketing is a social and managerial process by which individuals and groups
obtain what they need and want through creating, offering, and exchanging
products of value with others.

“Good marketing is no accident, but a result of careful planning and execution.

Marketing practices are continually being refined and reformed in virtually all industries
to increase the chances of success. Marketing excellence is rare and difficult to achieve.
Marketing is both “art” and “science” –there is constant tension between the formulated
side of marketing and the creativity side.”

The world economy has undergone a radical transformation in the last two decades.
Geographical and cultural distances have shrunk significantly with the improvements in
production, transportation and communication. And thus the role of marketing becomes
wide as there is no barrier for the manufacturers in delivering the goods to the consumers
and they have reached every nook and corner, thus the only thing that can differentiate
them is proper promotion of the goods and services. Thus a detailed study of the various
marketing techniques adopted by the co. and its rivals has been studied to know about the
weak areas in advertising as the philosophy today is “Jo dikhta hai woh bikta hai”. i.e;
people prefer buying those products which is before their eyes or is easily available to
them.Beverage industry is one of the fast growing industries in India. We can divide
Beverages into two sections i.e. Alcoholic & Non-alcoholic. The non-alcoholic drinks are
soft drinks that can be further classified Cola, Lemon, Orange, Mango and Apple
segment.

The soft drink industry is no exception and is one of the most intensely fought industry
with the two major competitors PepsiCo and Coca-cola. This industry can be
characterized by words like price wars, effective distribution strategies, market share,

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sales promotion strategies etc. My field of study will delve upon the following aspects
viz.

 Retailer’s participation in the selling process.

 Penetration of different products of Pepsi in comparison to its
competitors.

A number of variables come into play when we consider the sale of C.S.D.
products. The basic reason for this is seasonal affect on purchasing the product, slowly
resulting in the consumer loyalty and the relationship between dealers, distributors and
the company.

Some other important variables that affect the C.S.D. products are:-

 Visibility of the product

 Feasibility of the product
 Availability of the product
 Perceived quality of the product
 Distribution channels used

2. PEPSICO STRATEGY

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A strategy is a fundamental pattern of present and planned objectives, resource

deployments and interaction of an organization with markets, competitors and other
environmental factors.

Most firms, particularly large organizations with multiple divisions or business

units like PepsiCo, pursue different strategies. Each strategy is formulated at different
levels in the organization and deals with different sets of issues. PepsiCo strategy
specifies

 What (Objective to be accomplished)

 Where (On which product-market to focus)
 How (Which resources to allocate and which activities to perform to each
product-market to meet environmental opportunities and threats and to gain a
competitive advantage)

The project includes a survey on the analysis of market share of PepsiCo Vs

Coca Cola with reference to warm stocks, chilled stocks and empty glass bottles
present in mixed outlets of different areas.

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CHAPTER-2

RESEARCH
DESIGN

Title - A study of competitive visual Merchandising strategies with

reference to Pepsi and Coke

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Statement of problem:

Company performance has become more responsible, competitive and self

administrative. As a result, development of a company solely depends on its performance
and when the company has not developed at the rate expected it becomes necessary to
analyse its past and present performance, which in-turn helps in reinforcing the present
system for better performance. In this regard it becomes necessary to identify, analyse
and understand that hindrances affecting marketing health (marketing performance) of
the company. Therefore the main tool for analyzing the performance is market survey
since it is a powerful tool to get the true picture of the marketing position of the company.
With the help of this tool researcher can analyze the marketing position of the company
from different angles.

SCOPE OF THE STUDY

This topic of the project is mainly concerned with carbonated soft drinks. The
main area covered under this study of various two of the biggest companies of beverage
industry (Coca-Cola & PepsiCo).

The findings and conclusions are given in hope of providing a good insight into
the various scopes and selection factors.

Objectives of Research:

 To study the various visual merchandising support systems & strategies for soft
drinks.
 To determine the visibility of the Pepsi products and SKUs on the Dealer outlets.
 To find out the dealers’ satisfaction about the Pepsi products and service with
respect to trade promotion.
 To find out the expectations of the dealers from the company in the direction of
support functions.
 To know the various selling and distribution strategies adopted by the company.
 To determine the market Gap.
 To suggest recommendation based on the analyzed findings of the study.

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The ultimate objective of this project is to gain practical knowledge and

experience on different marketing activities.

RESEARCH METHODOLOGY

Research design:

The methodology used for collecting the data is considered to the primary for
any report.

The research design of this report is exploratory i.e. formulating a problem from more
precise investigation. The major emphasis is on the discovering of ideas and insights. The
formulate research design is characterized by great amount of flexibility. It contains of is
characterized by great amount of provide opportunity for considering different aspect of a
problem undertaken in the study.

METHODOLOGY OF THE STUDY:

Exploratory:
To get the information different outlets exploratory research method are adopted. A
survey form was prepared and the retailers were asked to answer them during the course
of their interview.
Schedule Method:
Dealer’s responses were conducted with the help of a prepared schedule. Samples are
taken at different locations.
Field Observation:
During training period I did extensive survey of the outlets and consumer to observe the
marketing operation and other activities performed by the organization.

Methods of data collection:

Questionnaire

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Personal interview
Sampling design
Sampling design is a conductive approach, which gives the research work a factual
as well as conclusive framework. It contains sample size, which is basically a true
representation of the target population

Plan of analysis

Primary Data: The data, which is being collected for the first, is known as primary
data. These data were collected by concerning to the retailers by various questionnaires
and concerning the senior marketing executives.

Secondary Data: The data required for the study will also be collected from
secondary source .The relevant information will be taken from annual reports, journals
and internet.

LIMITATION:
* Some of the outlets were reluctant to give the relevant information due to excessive heat.
* When the customers were in the outlets, I had to wait patiently to get information.
* Some of the outlets showed the attitude towards me. It took time to get their confidence.
* Some dealers were extremely unhappy with the company support and after sales survive.
* Some of them could not get total flavors due to which they nagged.
* Many dealers were found ignorant of the scheme given by the company.
* Pepsi scheme given by the company were found different from place to place due to
which retailers were dissatisfied.
* Some dealers nagged for the replacement of the expiry and defected products.

Chapter Scheme:

Chapter 1- Introduction

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Chapter 2- Research Design

Chapter 3- Industry Profile

Chapter 4- Company Profile

Chapter 5- Analysis and Interpretation

Chapter 6- Findings, Recommendations and Conclusion

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CHAPTER-3
INDUSTRY PROFILE

3.1 INDUSTRY PROFILE

Soft drinks can trace their history back to the mineral water found in natural springs.
Bathing in natural springs has long been considered a healthy thing to do; and mineral

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water was said to have curative powers. Scientists soon discovered that gas carbonium or
carbon dioxide was behind the bubbles in natural mineral water.

The first marketed soft drinks (non-carbonated) appeared in the 17th century. They were
made from water and lemon juice sweetened with honey. In 1676, the Compagnie de
Limonadiers of Paris were granted a monopoly for the sale of lemonade soft drinks.
Vendors would carry tanks of lemonade on their backs and dispensed cups of the soft
drink to thirsty Parisians.

Joseph Priestley
In 1767, the first drinkable man-made glass of carbonated water was created by
Englishmen Doctor Joseph Priestley. Three years later, Swedish chemist Torbern
Bergman invented a generating apparatus that made carbonated water from chalk by the
use of sulfuric acid. Bergman's apparatus allowed imitation mineral water to be produced
in large amounts.

John Mathews
In 1810, the first United States patent was issued for the "means of mass manufacture of
imitation mineral waters" to Simons and Rundell of Charleston, South Carolina.
However, carbonated beverages did not achieve great popularity in America until 1832,
when John Mathews invented his apparatus for the making carbonated water. John
Mathews then mass-manufactured his apparatus for sale to soda fountain owners.

Health Properties of Mineral Water

The drinking of either natural or artificial mineral water was considered a healthy
practice. The American pharmacists selling mineral waters began to add medicinal and
flavorful herbs to unflavored mineral water. They used birch bark, dandelion,
sarsaparilla, and fruit extracts. Some historians consider that the first flavored carbonated
soft drink was that made in 1807 by Doctor Philip Syng Physick of Philadelphia. Early
American pharmacies with soda fountains became a popular part of culture. The
customers soon wanted to take their "health" drinks home with them and a soft drink
bottling industry grew from consumer demand.

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The Soft Drink Bottling Industry

Over 1,500 U.S. patents were filed for either a cork, cap, or lid for the carbonated drink
bottle tops during the early days of the bottling industry. Carbonated drink bottles are
under a lot of pressure from the gas. Inventors were trying to find the best way to prevent
the carbon dioxide or bubbles from escaping. In 1892, the "Crown Cork Bottle Seal" was
patented by William Painter, a Baltimore machine shop operator. It was the first very
successful method of keeping the bubbles in the bottle.

Automatic Production of Glass Bottles

In 1899, the first patent was issued for a glass-blowing machine for the automatic
production of glass bottles. Earlier glass bottles had all been hand-blown. Four years
later, the new bottle-blowing machine was in operation. It was first operated by the
inventor, Michael Owens, an employee of Libby Glass Company. Within a few years,
glass bottle production increased from 1,500 bottles a day to 57,000 bottles a day.

Hom-Paks and Vending Machines

During the 1920s, the first "Hom-Paks" were invented. "Hom-Paks" are the familiar six-
pack beverage carrying cartons made from cardboard. Automatic vending machines also
began to appear in the 1920s. The soft drink had become an American mainstay.

3.2 Definition of the Industry

The Soft Drink Industry (SIC 111) consists of establishments primarily engaged in
manufacturing non-alcoholic, carbonated beverages, mineral waters and concentrates and
syrups for the manufacture of carbonated beverages. Establishments primarily engaged in
manufacturing fruit juices and non-carbonated fruit drinks are classified in Canned and
Preserved Fruit and Vegetable Industry (SIC 1031). Principal activities and products:

 Aerated waters;
 Carbonated beverages;
 Mineral and spring waters;
 Soft drink concentrates and syrup; and
 Soft drink preparation carbonating.

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NAICS 31211 Soft Drink and Ice Manufacturing:

Establishments primarily engaged in manufacturing soft drinks, ice or bottled water,
including that which is naturally carbonated. Water-bottling establishments in this
industry purify the water before bottling it.

 Fruit drinks (except juice), manufacturing  Iced tea, bottling or canning

 Ice (except dry ice), manufacturing  Soft drinks, manufacturing

 Water, purifying and bottling

Exclusion(s): Establishments primarily engaged in:

 freezing juices and drinks (31141, Frozen Food Manufacturing);

 canning fruit and vegetable juices (31142, Fruit and Vegetable Canning, Pickling
and Drying);
 manufacturing milk-based drinks (31151, Dairy Product (except Frozen)
Manufacturing);
 manufacturing coffee and tea, except ready-to-drink (31192, Coffee and Tea
Manufacturing);
 manufacturing soft drink bases or fruit syrups for flavouring (31193, Flavouring
Syrup and Concentrate Manufacturing);
 manufacturing non-alcoholic cider (31194, Seasoning and Dressing
Manufacturing);
 manufacturing non-alcoholic beer (31212, Breweries);
 manufacturing non-alcoholic wine (31213, Wineries);
 manufacturing dry ice (32512, Industrial Gas Manufacturing); and bottling water
without purification (41321, Non-Alcoholic Beverage Wholesaler-Distributors).

NAICS 31193 Flavouring Syrup and Concentrate Manufacturing:

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Establishments primarily engaged in manufacturing soft drink concentrates and syrup,

and related products for soda fountain use or for making soft drinks.

 Fruit syrups for flavouring,

 Beverage bases, manufacturing
manufacturing

 Flavouring concentrates (except coffee-  Soda fountain syrups,

based), manufacturing manufacturing

 Soft drink bases,

manufacturing

Exclusion(s): Establishments primarily engaged in:

 reducing maple sap to maple syrup (11199, All Other Crop Farming);
 manufacturing chocolate syrup (31132, Chocolate and Confectionery
Manufacturing from Cacao Beans);
 manufacturing flavouring extracts (31194, Seasoning and Dressing
Manufacturing);
 manufacturing powdered drink mixes (except coffee, tea and chocolate); and table
syrup from corn syrup (31199, All Other Food Manufacturing); and
 manufacturing soft drinks (31211, Soft Drink and Ice Manufacturing).

The 1998 industry and employment indicators refer to SIC 111 because concordance
between NAICS and SIC is not exact.

3.3 Characteristics of the Industry

The industry is a secondary manufacturer using products of the food industry to produce
soft drinks for home and food service consumption.

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Packaging costs for the industry are estimated to represent 35 per cent of production costs
while syrups/concentrates account for almost 30 per cent. The Soft Drink Industry
purchases 95 per cent of the aluminum cans, 55 per cent of the rigid polyethylene
terephthalate (PET) plastic containers and 15 per cent of the glass bottles consumed by
Canadian manufacturing industries.

Sales volumes have grown more than 22 per cent since 1988, to over 3.1 billion litres
annually. In 1999, sales of carbonated soft drinks in Canada grew a modest 0.4 per cent.
Soft drinks rank sixth among all consumer products sold in Canada's drug stores, with
annual sales over $130 million. Soft drinks represent about one-third of the $4.4 billion
worth of beverages Canadians purchased in supermarkets each year.

Canadian exports accounted for 10 percent of domestic shipments while imports into
Canada were just 1.5 percent of the domestic market.

Imports of soft drinks have decreased 35.7 per cent from a value of $12.6 million in 1988
to a value of $8.1 million in 1999. These figures confirm a growing trade surplus, which
amounted to $189 million in 1999. Cost cutting, high transportation costs of final
products, and differences in regulatory requirements between Canada and the U.S. are the
main reasons for low imports.

While most soft drink production serves the domestic market, this industry has become a
net exporter. Since 1988, exports of soft drinks have increased more than 3000 per cent
from a value of $6.1 million (9.6 million litres) in 1988 to $197 million (173 million
litres) in 1999. The bulk of these ($168 million) are exported to the U.S.

The Soft Drink Industry represents 4.8 per cent of the total value of food and beverage
shipments and 5.9 per cent of the number of food and beverage plants in 1997.

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3.4 Updated Industry Indicators

Relative Importance of the Industry in the Economy

The Soft Drink Industry accounts for 0.1 per cent of all Canadian GDP in 1999. (Source:
Statistics Canada, CANSIM)

Reductions in the number of plants and employees along with cost-cutting has improved
industry productivity. Value-added per employee increased by 58 per cent from 1988 to
1997. This increase is greater than the average 35.1 per cent increase for the food and
beverage sector. From 1988 to 1997, manufacturing shipments of soft drinks increased
from about $2.3 billion to just over $2.6 billion (an increase of 15.5 per cent). The
volume of soft drinks sold rose from 2.6 billion litres in 1988 to 3.4 billion litres in 1997,
up 30.7 per cent in nine years.

In 1998, the Soft Drink Industry segment represented almost 36.5 per cent of total
Beverage Industries manufacturing shipments.

3.5 Technology and Innovation

Modern bottling plants can produce in excess of 2,000 soft drinks per minute on each line
of operation.

Investment in building construction and machinery (estimated at $275-$300 million) was

strongest during the 1992 to 1994 period when industry rationalization was at its peak.

Each year, the Soft Drink Industry purchases more than $1.2 billion worth of materials
from Canadian suppliers, including goods such as sugar, flavours, colourings, cans,
bottles and caps, cardboard, paper and plastics, and services such as advertising, printing,
promotion services and transportation. Innovative new product and package introductions
helped stimulate industry volume and revenue growth. The industry changed its
packaging: soft drinks are now offered in larger bottles (600 ml) or in 12 packs.

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While soft drinks face competition from a host of other beverages, including tap water,
some large soft drink manufacturers have added other beverage products, such as fruit
juices and drinks, dairy products, and bottled water, to their line of products to increase
sales and market share.

3.6Change Drivers

Economic/Market
Rationalization of the Soft Drink Industry on a North American basis cut the number of
establishments in this industry in half between 1986 and 1993.

Private label products have made inroads into the market share of the major brands.

The industry experienced intense price competition with expansion of private label sales.
There was an overall decrease in retail prices between 1988 and 1997.

Remaining establishments are typically very efficient. Canada is now a net exporter of
soft drink products.

Regulatory
This industry was historically based on a franchise system which characterized the Soft
Drink Industry worldwide. The system provided a soft drink bottler with a defined market
area and exclusive manufacturing and distribution rights within that area. The bottler was
restricted to purchasing the proprietary formula concentrates and/or syrups from a single
source - the franchise company (franchisor) which held the registered trademarks of a
number of soft drink brands. The franchiser established pricing policies and provided
overall marketing and brand promotion support.

The Canadian Soft Drink Industry has undergone significant changes during the last
decade including the adoption of the Canada-United States Free Trade Agreement (FTA),
government regulations and guidelines to reduce or recycle packaging waste, the shift to
PET (plastic) bottles and metal cans, consolidation in both the brand holding and bottling

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functions in the industry and the adoption of high fructose corn syrup (HFCS) as an
alternative sweetener in place of sugar in non-diet soft drinks.

Deposit laws and other measures to ensure recycling and reuse of beverage containers are
perhaps the most significant regulatory concern of the industry.

Requirements under food labelling of ingredients and nutritional information continue to

be under review and subject to change. Canadian food and beverage manufacturers argue
that one of the challenges facing their industry is the lack of harmonization between
Canada and the United States on certain food ingredients and labelling regulations.

All soft drink manufacturers in Canada must meet the standards of quality, hygiene and
safety established by both Health Canada and the corporations which own the brand
names.

Health Canada, which is the regulatory agency responsible for the development of food
labelling policy, is currently examining, in consultation with other stakeholders including
industry, several food labelling issues including health claims, nutrient content claims,
nutrition labelling and food fortification. Regarding food fortification, one of the
questions under review is whether foods that do not fit into traditional food groups (i.e.,
soft drinks, savoury snacks, confections, etc.) should be considered as a vehicle for food
fortification.

Although there are no customs duties and sales taxes on finished products, with the
implementation of the Canada-US Free Trade Agreement, the largest soft drink
companies tend not to ship finished product across the Canada-U.S. border because of
differences in ingredient and labelling regulations. In the U.S., many non-colas contain
caffeine, which is not allowed in such drinks in Canada. Another ingredient, saccharine,
is banned in Canada in soft drink usage. As well, Canada has metric and bilingual
labelling requirements.

At the same time, governments are streamlining food inspection systems, reducing direct
inspection while requiring documentation of food safety systems by companies.

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Social/Demographic
In 1999, the average Canadian consumed 116.4 litres of soft drinks. On average, Atlantic
Canadians consume the most soft drinks while the lowest consumption rate is in British
Columbia.

Canadians buy more than 50 per cent of their soft drinks through grocery stores. When
we look at growth in that channel (only) we find that national brand soft drinks purchases
have increased 23 per cent over the last 5 years. Private label soft drink sales have fallen
off during that same period. This has lowered growth of the total carbonated soft drink
segment in the grocery store channel to just under 15 per cent.

Consumers will continue to demand high-quality products through the marketed goods
sector.

Industry members are important sponsors of various sports and other community-based
activities for young people. The industry contributed more than $1 million to charities
across Canada in 1994.

In Canada, about 20 to 25 per cent of soft drinks sold are diet drinks; most soft drinks
sold are regular (non-diet) products.

Stronger growth in non-grocery channels and significant and favourable package mix
trends, including a big move in Ontario from 24 pack cans to the more flexible 12 pack,
also helped reduce margin pressures for at least some of our industry's key players.

There is also significant variability within the various flavor segments of the soft drink
market.

 There are the perennial front-runners. Colas continue to dominate the grocery
channel, accounting for more than half of that carbonated soft drink market.
While regular colas have grown a respectable 4 per cent since 1995, however, diet
colas eked out a meagre 0.5 per cent growth over the last five years.

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 While ginger-ale is a much bigger flavor segment in Canada than in the US or

Europe, sales volumes for ginger-ales in Canada has been flat over the past five
years.
 The traditional orange soft drink has seen its position in the marketplace weaken,
with volumes dropping off some 3 per cent since 1995.
 There have been some winners to counter those trends. With growth of close to 4
per cent lemon/limes have kept pace to the growth of the regular colas segment.
 Sales volumes for non-traditional flavours grew a healthy five per cent over the
last five years, and representing as much soft drink volume as the ginger-ale
segment.
 The hot performer of the soft drink marketplace is an old standby - root beer. The
volume of root beer sales has grown over 7 per cent in the last five years.

In a rapidly changing climate, the Soft Drink Industry as with other food and beverage
processing industries must address a number of challenges if it is to continue to grow and
prosper. These include the following:

 concentration of major retail chains, resulting in a higher degree of competition

for shelf space;
 changing consumer demographics resulting in changing consumer tastes and
increased demand for healthier products; and,
 Increased competition from other non-alcoholic beverages, such as energy drinks
and sports drinks.

Although retail concentration has increased over the years, soft drink manufacturers
enjoy a wider variety of distribution channels than some processed food and beverage
products. The industry distributes its products through supermarkets and grocery stores,
drug stores, convenience stores and gas outlets, mass merchandisers and warehouse
outlets. The foodservice and hospitality industry, in particular fast food outlets, is another
method of distribution. Vending machines also provide a distribution channel for these
products.

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Consumers of soft drink products have a great assortment of flavours from which to
choose. Over 25 major brands and over 200 flavors of soft drinks are distributed
throughout Canada.

The majority of soft drinks are sold in aluminum cans and PET plastic bottles. They are
also sold in bulk through soda fountains. Bottles, most of which comprise PET plastic,
account for 41.5 per cent of sales, cans make up 41.6 per cent, and fountain sales account
for 16.9 per cent of sales. Only a very small portion of soft drinks are still packaged in
glass bottles, due in part to the late 1970s problem of exploding glass bottles with
contents under pressure as well as changing consumer preferences and lifestyles.

3.7 Employment Patterns

The Soft Drink Industry, with more than 20 Canadian bottling plants, has an annual
payroll which exceeds $360 million.

In 1996, 4.9 per cent of the soft drink work force were recent immigrants to Canada
between 1986 and 1996, somewhat lower than the average of 7.7 per cent in the food
industry.

The top five occupations in this industry are:

 Process control and machine operators, food and beverage processing;

 Truck drivers;
 Sales representatives, wholesale trade;
 Delivery drivers; and
 Material handlers.

Process control and machine operators comprise the single largest occupational category,
9.8 per cent of the work force. Process control and machine operators use multi-function
or single-function machines to process and package food and beverage products. People
in this group may require some high school education or a high school diploma, as well

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as experience in their particular industry or occupation. They usually receive on-the-job

training.

Fourteen per cent of process control and machine operators work part-time. Self-
employment (5 per cent) is well below the average of 16 per cent for all occupations, and
women are underrepresented in these occupations.

The separation rate in these occupations is high due, in a large part, to the seasonal
character of employment. Current labour market conditions for new entrants are poor and
are expected to remain poor through 2001.

Truck drivers form the second largest occupational category in this industry with 9.3 per cent of
total employment. Truck drivers' duties may require them to operate and drive straight or
articulated trucks weighing over 4,600 kg with three or more axles to transport goods and
materials; oversee all aspects of trucking such as condition of equipment, loading and unloading,
and safety and security of cargo; obtain special permits and other documents required to transport
cargo on international routes; and receive and relay information to a central dispatcher.

Truck drivers must usually complete some high school and receive on-the-job training.
They must have a driver's licence appropriate to the class of vehicle they are driving.
Drivers who operate vehicles equipped with air brakes must have air brake endorsements.

With experience or additional training, they may progress to supervisory positions or to

non-driving occupations such as truck driving instructors, safety officers and truck
dispatchers. Six per cent of truck drivers work part time, well below the average of 19 per
cent for all occupations. One per cent of truck drivers are women, well below the average
of 45 per cent in all occupations.

Youth are significantly underrepresented in this occupation, with about 20 per cent of
employment compared to 27 per cent in the work force. Employment in this occupation is
moderately sensitive to overall economic conditions and highly seasonal.

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Current labour market conditions for new entrants are fair and will remain fair through
2001. Public pressure for improved highway safety, and the use of more complex rigs,
are likely to increase skill requirements for truck drivers. Limits to the time drivers are
allowed to work may increase demand in this occupation.

Sales representatives from the third largest category of employees with 9.1 per cent of
employment. Sales representative duties may require them to promote sales of non-
technical goods and services to retail, wholesale, commercial, industrial and professional
clients; deliver presentations to clients regarding the benefits and uses of the goods and
services; estimate and quote prices, credit terms, warranties and delivery dates; prepare or
supervise the preparation of contracts; consult with clients after sales to resolve problems
and provide support; and review and respond to information regarding product
innovations, competitors and market conditions.

Sales representatives must have a high school diploma, and may require a college
diploma or university degree. Many recent entrants have a post-secondary diploma or
degree. They usually need experience in sales or in an occupation related to the product
or service they are selling. With additional training or experience, they may progress to
sales management positions.

Twenty-six per cent of these sales representatives work part time, well above the average
of 19 per cent for all occupations. Twenty-five per cent are self-employed, well above the
average of 16 per cent for all occupations. Women comprise 18 per cent of these sales
representatives, compared to an average of 45 per cent in all occupations. Youth are
somewhat overrepresented in this occupation, both in employment and in new hiring,
relative to the average for all occupations.

Current labour market conditions for new entrants in this occupation are fair and are
expected to remain so through 2001, though little of the growth is expected in grocery
industries.

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Delivery drivers make up the fourth largest occupational category, comprising 9.0 per
cent of the work force in 1996. Delivery drivers use automobiles, vans and light trucks to
pick up and deliver products. These drivers usually complete some high school or have a
high school diploma. Delivery drivers usually need one year of safe-driving experience
and an appropriate driver's licence for their vehicle.

Delivery drivers are less likely to work part time than other occupations. Women and
youth are significantly underrepresented in this occupation.

Employment in this occupation is moderately sensitive to overall economic conditions

and moderately seasonal. Current labour market conditions for new entrants are fair and
are expected to remain so through 2001.

Material handlers form the fifth largest occupational category, comprising 8.6 per cent of
the work force. Material handlers (manual) load, unload and move products by hand or
on dollies or other basic material handling equipment while material handlers (equipment
operators) operate winches and other loading devices, industrial trucks, tractors and
loaders to transport and retrieve materials. They also operate various types of equipment
and conveyors to handle liquid, bulk and other materials. People in this group may
require some high school education. Material handlers (manual) must have the physical
strength to work with heavy materials.

Twenty per cent of workers in these occupations work part time, compared to an average
of 19 per cent for all occupations. The proportion of part-time workers has risen
signficantly in these occupations over the last 10 years. Three per cent of workers are
self-employed, well below the average of 16 per cent for all occupations. Two per cent of
persons working in these occupations are women, well below the average of 45 per cent
in all occupations. Persons 15 to 29 years old make up a large proportion of new hires,
indicating that these are often entry-level positions.

The separation rate in these occupations is high, indicating that jobs are typically of short
duration. Current labour market conditions for new entrants are poor, and are expected to

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remain so through 2001. Automation of transfer systems will continue to affect demand
for labour negatively in these occupations.

CHAPTER-4
COMPANY
PROFILE

Company profile
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4.1 COCA COLA:

Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than
reveal its formula to the Government and reduce its equity stake as required under the
Foreign Regulation Act (FERA) which governed the operations of foreign companies in
India. Coca-Cola re-entered the Indian market on 26th October 1993 after a gap of 16
years, with its launch in Agra. An agreement with the Parle Group gave the Company
instant ownership of the top soft drink brands of the nation. With access to 53 of Parle’s
plants and a well set bottling network, an excellent base for rapid introduction of the
Company’s International brands was formed. The Coca-Cola Company acquired soft
drink brands like Thumps Up, Goldspot, Limca, Maaza, which were floated by Parle, as
these products had achieved a strong consumer base and formed a strong brand image in
Indian market during the re-entry of Coca-Cola in 1993.Thus these products became a
part of range of products of the Coca-Cola Company.

In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry
into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the
Coca-Cola Company. However, this was based on numerous commitments and
stipulations which the Company agreed to implement in due course. One such major

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commitment was that, the Hindustan Coca-Cola Holdings would divest 49% of its
shareholding in favor of resident shareholders by June 2002.

Coca-Cola is made up of 7000 local employees, 500 managers, over 60 manufacturing

locations, 27 Company Owned Bottling Operations (COBO), 17 Franchisee Owned
Bottling Operations (FOBO) and a network of 29 Contract Packers that facilitate the
manufacture process of a range of products for the company. It also has a supporting
distribution network consisting of 700,000 retail outlets and 8000 distributors. Almost all
goods and services required to cater to the Indian market are made locally, with help of
technology and skills within the Company. The complexity of the Indian market is
reflected in the distribution fleet which includes different modes of distribution, from 10-
tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of
Indian cities and trademarked tricycles and pushcarts.

“Think local, act local”, is the mantra that Coca-Cola follows, with punch lines like “Life
ho to aisi” for Urban India and “Thanda Matlab Coca-Cola” for Rural India. This resulted
in a 37% growth rate in rural India visa-vie 24% growth seen in urban India. Between
2001 and 2003, the per capita consumption of cold drinks doubled due to the launch of
the new packaging of 200 ml returnable glass bottles which were made available at a
price of Rs.5 per bottle. This new market accounted for over 80% of India’s new Coca-
Cola drinkers. At Coca-Cola, they have a long standing belief that everyone who touches
their business should benefit, thereby inducing them to uphold these values, enabling the
Company to achieve success, recognition and loyalty worldwide.

4.2 BRANDS:

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COCA COLA: thanda matlab coca cola!!!

Coca cola has truly remarkable heritage. From a humble beginning in 1886 it has now
become the flagship brand of largest manufacturer, distributor of non alcoholic beverages
in the world.

In India, coca cola was the leading soft drink till 1977 when govt. policies necessitated its
departure. Coca cola has made its return to the country in 1993.and made significant
investment to ensure that the beverage is available to more and more people in remote as
well as inaccessible parts of the world.

Coca cola returned to India in 1993 and over the past ten years has captured the
imagination of the nation, building strong association with cricket, the thriving cinema
industry, music etc. coca cola has been very strongly associated with cricket, sponsoring
the world cup in 1996.

In 2002, coca cola launched the campaign,”Thanda Matlab coca cola”. in 2003,coke was
available for just rs,5 crores in the country.

FANTA : GHOONTH BHAR SHARARAT KAR LEY!!!

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Fanta entered the Indian market in year 1996 under the coca cola brand .over the years,
Fanta has occupied a strong market place and is identified as “the fun catalyst”. Fanta
stands for its vibrant color, tempting taste and tingling bubbles that not just uplifts
feelings but also helps free spirit thus encouraging one to indulge in the moment.

LIMCA: LIME AND LEMONI!!!

Drink that can cast a tangy refreshing spell on anyone, anywhere. Born in 1971, Limca
has been the original thirst choice, of millions of consumers for over three decades.

The brand has been displaying healthy volume growing year on year and limca continues
to be leading flavoring soft drinks in the country.

Dive into the zingy refreshment of limca and walk away a new person.

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SPIRITE: SPIRITE BHUJAYE PYAAS BAKI SAB BAKWAAS!!!

World wide sprite ranked as no.4 soft drink and is sold in more than 190 countries In
India, sprite was launched in year 1999 and today it has grown to be one of the fastest
growing soft drinks, leading clear lime category.

Today sprite is perceived as a youth icon. With strong appeal to youth sprite has stood for
a straight forward and honest attitude. Its clear crisp hingtaste encourages today’s youth
to trust their instincts, influence them to be true who they are and to obey their thirst.

THUMS UP: TASTE THE THUNDER!!!

Strong cola taste, exciting personality.

Thums up is a leading carbonated soft drink and most trusted brand in India. Originally
introduced in 1977, thums up was acquired by the coca cola company in 1993.

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Thums up, is, known for strong, fizzy taste and its confident, mature and uniquely
masculine attitude. This brand clearly seeks to separate the man from the boys.

MAAZA: YAARI DOSTI TAAZA MAAZA!!!

Maaza was launched in 1976. In 1993, maaza was acquired by coca cola India. Maaza
currently dominates the fruit drink category. Over the years, maaza has become
synonymous with mango.

“Taaza Mango, Maaza mango, Botal mei aam, maaza hai naam”.consumers regard maaza
as wholesome, natural, fun loving drink real experience of fruit.

The campaign builds on the existing equity of the brand and delivers a relevant emotional
benefit to the moms rightly captured in tagline, “yaari dosti, and taaza maaza”.

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4.3 Marketing policy

Coca-Cola has excelled at managing the marketing mix. Created in 1886, it now owns
nearly 400 brands in 200 countries. Coca-Cola employs a “hybrid brand structure” for its
Products. Its main brand “Coke” enjoys nearly 100% brand recognition in the West and is
promoted throughout the world while other brands cater to local tastes and serve as a
sandbox for new products. After the fiascos with New Coke and C2, Coca-Cola relies
heavily on extending brands for new products rather than introducing new brands.
Over time, Coca-Cola has succeeded with evolving its Promotion techniques. Earlier,
television was their core tool to inform consumers about products and improve market
position, but media fragmentation, technology and change in consumer behavior have
decreased its effectiveness. In response, Coca-Cola developed an experiential approach to
build a bond with consumers. Through partnerships with competitive sports, Coca-Cola
built on its association with the spirit of competition and created a dynamic environment.
These promotions gave consumers the promise of complete refreshment with a sense of
celebration and passion. The “package” boosted the overall consumer experience while
creating a feeling of inclusion.
Coca-Cola’s competitive relationship with Pepsi forced them to remain fluent with their
Pricing strategy. As cola consumption decreased in the US, Coca-Cola, in pursuit of the
goal of maximizing shareholders’ value, realized the untapped international market. To
penetrate especially price-sensitive foreign markets, the company focused on a
triumphant reduced price point strategy. To help the globalization effort, Coca-Cola had
to utilize Place to make its product readily available. It opened a bottling factory in
Mogadishu, Somalia, but had difficulty importing equipment through the local port.
Instead, it used the El Ma’an port, protected by a local militia. Coca-Cola’s pioneering
move attracted other businesses to Somalia, stabilized the economy and provided
employment opportunities to the Somalians.
To drive the international expansion, Coca-Cola has adopted a “Think globally, act
locally” global marketing policy at an annual cost of $US 900M. The company uses local
advertising companies and ads to appeal to its consumers’ patriotism. Various
distribution techniques haven proven effective: from selling door to door, to helping

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outfit retailers with refrigerating equipment. Coke’s strategies have paid off: Coke
outsells Pepsi 2.5 to 1 and enjoys a 44% market share in the US.
The practice of Corporate Social Responsibility (CSR) at Coca-Cola has grown
exponentially in the last decade. In Africa alone, Coca Cola has contributed over $US
40M to improve healthcare, education, and the environment. With over 75 years of
experience, it continues to commit time, money and energy to community initiatives
across the globe.

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4.4 ADVERTISEMENT

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Fifty Years of Coca-Cola Television Advertisements: Highlights from the Motion Picture
Archives at the Library of Congress presents a variety of television advertisements,
never-broadcast outtakes, and experimental footage reflecting the historical development
of television advertising for a major commercial product. The online collection includes
five excerpts from stop-motion advertising developed for Coca-Cola between 1954 and
1956 by the D'Arcy agency and makes public for the first time eighteen excerpts from the
Experimental TV Color Project of 1964, which determined the best lighting for the cans,
bottles, and performers in television advertisements. Featured advertisements include the
1971 "Hilltop" commercial with an international group of young people on an Italian
hilltop singing "I'd Like to Buy the World a Coke"; the "Mean Joe Greene" commercial
from 1979; the first "Polar Bear" commercial from 1993; the "Snowflake" commercial
from 1999; and "First Experience," an international commercial filmed in Morocco in
1999.

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ZTV Photo of "Big Bro" Mek-Vinai Kraibutri posing as a Coke delivery man as part of
the Coke PiBig campaign in Thailand.

Coca Cola Bottle 1899

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Early Coca Cola bottle circa 1899 - referred to as Hutchinson style.

Coca Cola Calendar Circa 1901

Vintage Coca Cola calendar circa 1901 featuring model Hilda Clark sitting at a table
drinking a glass of coca cola. Hilda Clark was the first person hired as an official Coca
Cola spokesperson.

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Coca Cola Oil Cloth Sign 1905

Early advertisement for Coca Cola - oil cloth sign circa 1905 with five cents price advertised.

Coca Cola Company - Diet Coke Splenda Family

Coca Cola Company - One example of entire family of brand products is Diet Coke
sweetened with Splenda.

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Coca Cola Company - C2 Packaging

Coca Cola Company's C2 refers to half the calories and half the carbs. This is an example
of 18 can packaging. The packaging graphics features the familiar Coca-Cola trademark
in black against a Coca Cola red background to provide a visual difference between the
Coca Cola Company's original brand and the new Coca Cola C2.

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Company profile

4.5 PEPSICO

History of Pepsi-Cola Industry.

The Pepsi-Cola story itself begins with a drugstore

in New Bern, North Carolina, and a pharmacist named
Caleb Bradham. Bradham's aim was to create a fountain
drink that was both delicious and healthful in aiding
digestion and boosting energy.  It would be free of the
impurities found in many bottled health tonics, and it
would contain none of the stronger narcotics often added
to popular fountain drinks.

As most pharmacies in 1896, Bradham's

drugstore housed soda fountain where the
small-town clientele would meet to socialize. 
Bradham's establishment even featured a kind
of primitive jukebox, which for a nickel would
entertain the listener with the latest musical
selections rendered by violin or piano or both
It was at such convivial gatherings that Bradham would offer his latest concoction. 
Over time, one of his recipes became known as Brad's Drink. A member of the press
declared, "It has sparkle and just enough acidity to make it pleasant." Soon its
popularity would exceed the boundaries of New Bern The cellar of Bradham's
drugstore served as the original site of Pepsi-Cola syrup manufacturing.  Electing to
start his new business on a small, manageable scale, Bradham based his operation on
familiar territory.  Ingredients were hauled downstairs to cramped quarters where
they were mixed together and then cooked in a large kettle. The syrup was
subsequently poured into one-gallon jugs and five-gallon kegs to be shipped to

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customers. By 1902, the demand from surrounding drugstores increased so

dramatically it dawned on Bradham that Pepsi-Cola was something special.On
December 24, 1902, he filed incorporation papers with the state of North Carolina;
in these, he indicated his plans for corporate branches in Virginia, Maryland,
Pennsylvania, and New York. PepsiCo, Inc. is currently one of the most successful
consumer products company in the world with annual revenues exceeding $30
billion and has more than 480,000 employees. PepsiCo, Inc. began as a successor to
a company incorporated in 1931, known as Loft Inc. Once known as PepsiCo Cola,
the company expanded its business and adopted its current name, PepsiCo, after a
merger with Frito-Lay in 1965. This merger dramatically increased PepsiCo's market
potential and set the foundation for the company's tremendous growth. PepsiCo’s
products are recognized and are most respected all around the globe. Currently,
PepsiCo divisions operate in three major US and international businesses: beverages,
snack foods, and restaurants. In each of these businesses, PepsiCo has attained a
leadership position as being the world leader in soft drink bottling, the world largest
snack chip producer, and the world largest franchised and company operated
restaurant system. The corporations increasing success has been based on high
standards of performance, marketing strategies, competitiveness, determination,
commitment, and the personal and professionalintegrity of their people, products and
business practices.

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4.6 PepsiCo Headquarters

PepsiCo World Headquarters is located in Purchase, New York,

approximately 45 minutes from New York City. The seven-building
headquarters complex was designed by Edward Durrell Stone, one of
America's foremost architects. The building occupies 10 acres of a 144-acre
complex that includes the Donald M. Kendall Sculpture Gardens, a world-
acclaimed sculpture collection in a garden setting. The collection of works is
focused on major twentieth century art, and features works by masters such as
Auguste Rodin, Henri Laurens, Henry Moore, Alexander Calder, Alberto
Giacometti, Arnaldo Pomodoro and Claes Oldenberg. The gardens originally
were designed by the world famous garden planner, Russell Page, and have
been extended by François Goffinet. The grounds are open to the public, and a
visitor's booth is in operation during the spring and summer 1990 saw the
coming of the multinational company PEPSI entering the Indian market. 11
years after the exit of Coca Cola.

It had name, fame and edge of being one of the best in the game and it also
offered stiff competition to Parle and Coke. Pepsi Cola Company founded by
CALEB BRADHAM in 1890 at North Carolina in USA. Now it is ranked 86 th
(1998) in the world with the asset of around $25000 million, having its head
quarter at ATLANTA. Its CEO is ROGER ENRICO and Pepsi co. India
holding chairman is MR. RAJIV BAKSI. Pepsi Co. India’s HQ is at Gurgaon.
Presently is operating in 196 countries. In India it has 34 Bottling Plant of them
8 are COBO and 26 are FOBO of which one in Tripty drinks Pvt. Ltd.

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4.7 PepsiCo’s Vision and Mission

At PepsiCo, we believe being a responsible corporate citizen is not only

the right thing to do, but the right thing to do for our Business.

Our Vision
"PepsiCo's responsibility is to continually improve all aspects of the world in
which we operate – environment, social, economic – creating a better tomorrow
than today."

Our vision is put into action through programs and a focus on environmental
stewardship, activities to benefit society, and a commitment to build shareholder
value by making PepsiCo a truly sustainable company.

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

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WE VALUE,

Our Commitment
Our values reflect our aspirations-the kind of company we want PepsiCo to be.
We express our values in the form of a commitment. Our commitment is:

Sustained Growth is fundamental to motivating and measuring our success.

Our quest for sustained growth stimulates innovation, places a value on results,
and helps us understand whether todays’s actions will contribute to our future.
It is about growth of people and company performance. It prioritizes making a
difference and getting things done.

Empowered People means we have the freedom to act and think in ways that
we feel will get the job done, while being consistent with the processes that

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ensure proper governance and being mindful of the rest of the company’s
needs.

Responsibility and Trust form the foundation for healthy growth. It’s about
earning the confidence that other people place in us as individuals and as a
company. Our responsibility means we take personal and corporate ownership
for all we do, to be good stewards of the resources entrusted to us. We build
trust between ourselves and others by walking the talk and being committed to
succeeding together.

PepsiCo’s global commitment to

Performance with Purpose

INDRA.K. NOOYI

“I want people to look at pepsico and think of it as a model of how to

conduct a business. We call it…

Performance With Purpose."

- Indra .K.Nooyi

Indra K. Nooyi, 45, is a Senior Vice President and CFO. She joined PepsiCo
in 1994 as Senior Vice President, Corporate Strategy and Development. Prior
to joining PepsiCo, she was Senior Vice President of Strategy, Planning and
Strategic Markets for Asea Brown Boveri. Nooyi is responsible for corporate
staff functions, including legal, human resources and corporate

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communications, in addition to her current CFO duties overseeing finance,

strategic planning, mergers and acquisitions, information technology,
advanced technologies and procurement. She is also known in company
circles for her analytical abilities, a key component behind her rise. Nooyi,
whose remuneration for fiscal 1999 totaled more than $1 million, is also
believed to be the chief strategist behind PepsiCo's competition with rival
Coca-Cola.

Global commitment to Performance with Purpose

PepsiCo believes that its performance is fundamentally connected to its purpose
agenda which represents the commitment to give back as the company grows. It is a
continuing journey that spans three major areas of focus-human, environmental
and talent sustainability.

Human Sustainability reflects PepsiCo’s goal of nourishing consumers with

products that range from treats to healthy eats. PepsiCo’s products have always
offered consumers nutrition as well as great taste. The progress that PepsiCo has
made under the Human Sustainability pillar includes reformulating some of its
products to improve their nutritional profile while launching products that reflect
consumer demand for healthier nutritious snacks and beverages. PepsiCo partners
with governments, health officials and Non Governmental Organizations to help
address obesity concerns and it continues to provide consumers with new product
choices and innovations.

Environmental Sustainability is based on PepsiCo’s commitment to strive to

replenish the resources used where possible, and minimize the impact on the
environment. PepsiCo continues to work to further reduce its water and electricity
consumption and improve its packaging sustainability. Across the world, PepsiCo
has re-used water from its processing plants and has worked with local communities
to provide access to clean water, while supporting farmers to deliver “more crop per
day.”

Talent Sustainability is founded on PepsiCo’s belief that cherishing its

extraordinary group of people is crucial to building an empowered workforce.
PepsiCo pursues diversity and creates an inclusive environment which encourages
associates to bring their whole selves to work. PepsiCo has increased female and
minority representation in the management ranks and has encouraged employees to

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participate in community service activities while continuing to create rewarding job

opportunities for people with different abilities.

Together, PepsiCo associates across the world are building on the platform of
Human, Environment and Talent Sustainability, while delivering great financial
results.

4.8 PEPSICO SLOGAN IN 2009 --

“Har Street ko Jeet…”

Pepsi works on ‘SMART’ formula:

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SPECIFIC- Helps the sales force understand exactly what is expected out

of them.

MEASUREABLE- ensure that management can track individuals & team

performance.

ACHIEVABLE- increase the level of challenges & motivation within the sales
force.

RELEVANT- translates the company’s initiatives into market place execution.

TIME BOUND- avoids dragging and ensure meeting deadlines.

PepsiCo’s slogans

Pepsi is one of the world's most famous brands much like its rival Coca Cola.
Pepsi Cola was originally called Brad's Drink after its creator, Caleb Bradham, a
pharmacist from North Carolina. Pepsi was a carbonated soft drink he created to
serve his drugstore's customers. The new name, Pepsi-Cola, was first used on
August 28. The Pepsi logo is a simple globe with the Pepsi colors in the
background and the word Pepsi in the foreground. Pepsi has changed its logo and
its slogans a number of times since its introduction in 1898. The Pepsi slogans
through the years are listed below

LOGOS YEAR SLOGANS

1898 Brad's Drink

Exhilarating, Invigorating, Aids

1903
Digestion
1906 Original Pure Food Drink
1908 Delicious and Healthful
1915 For All Thirsts - Pepsi:Cola
1919 Pepsi:Cola - It makes you Scintillate
1920 Drink Pepsi:Cola - It Will Satisfy You
1928 Peps You Up!
1929 Here's Health!

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1932 Sparkling, Delicious

1933 It's the Best Cola Drink
Double Size
1934
Refreshing and Healthful
1938 Join the Swing to Pepsi
1939 Twice as Much for a Nickel
1943 Bigger Drink, Better Taste
1947 It's a Great American Custom
 

1949 Why Take Less When Pepsi's Best?

1950 More Bounce to the Ounce

The Light Refreshment
1954
Refreshing Without Filling
  1958 Be Sociable, Have a Pepsi
Now It's Pepsi for Those Who Think
1961
Young
Come Alive!  You're in the Pepsi
1963
Generation
Taste that Beats the Others Cold, Pepsi
1967
  Pours It On.
  You've Got a Lot to Live, Pepsi's Got a
1969
Lot to Give
1973 Join the Pepsi People Feelin' Free
1976 Have a Pepsi Day!
Catch That Pepsi Spirit
1979
Take the Pepsi Challenge
1981 Pepsi's Got Your Taste for Life
1983 Pepsi Now!
1984 The Choice of a New Generation
1987 America's Choice
1989 A Generation Ahead
1992 Gotta Have It

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1993 Be Young, Have Fun, Drink Pepsi

1995 Nothing Else is a Pepsi

1997 Generation Next

  
1998 Same Great Taste
1999 The Joy of Cola
  2000 The Joy of Pepsi

2003 Pepsi.  It's the Cola

2005 Yeh pyas hai badi

2006 An ice cold Pepsi. It's better than sex!

"More Happy"/"Taste the one that's

2007
forever young"

2008 Yeh hai Youngistaan Meri Jaan!

2008-
Something for Everyone.
2009

2009-
Refresh Everything
Present

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BRANDING OF PEPSI

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4.9 Quality Organization

PepsiCo Quality professionals assess product compliance to the Quality Policy. This
program is focused on processes and procedures supporting quality policies and
prioritization of critical risk areas. PepsiCo Quality professionals assess product
compliance to the Quality Policy. This program is focused on processes and procedures
supporting quality policies and prioritization of critical risk areas. Our Quality agenda is
lead by quality professionals in various regions who oversee the following areas:

 Food Safety
 Innovation (R&D)
 Manufacturing Quality
 Co-manufacturing Quality
 Supplier Quality
 Plant Quality

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

The exit of Coca-Cola from India in 1977 accelerated the growth of several Indian
Soft Drink. New soft drink in the form of Tetra pack entered the market among
Frooti, Jump-In and Treetop were the prominent once. Till 1977 their equipped
bottling plants and the distribution network a longing to be of no use. It took them
one year to develop new formula to survive and gradually came up with Campa,
Lemon, Orange and Cola that order.

However Parle, the pioneer in the soft drinks, blazed its way to national
prominence with their product “Thumps Up” bearing the slogan “Happy Days
Are Here Again”. This particular slogan helped to win over the loyalists or
addicts to Coca-Cola, who was in the state of “Cola Shock” or Cola Depression.
Soon the Indian Soft drink industry started at a phenomenal rate, and all Parle
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Products Gold Spot, Limca and Thumps Up became the brand leader in their own
segment.

In spite of all these, the drink market still has large gap, as claim by soft drink
manufacturers. To fill these gaps there are many soft drinks concentrate and
squashes flooded the market. The Indian soft markets basically offered three
flavours i.e. Orange, Lemon and Cola

4.10 Nature of market competition & strategy

Pepsi – the Indian experience

Previously there were two ads. Tags”Yehi Hai Right Choice Baby”,
“Nothing Official about It” & “Yeh Dil mange More”, which immediately ring
a Bell – it’s to be a Pepsi. But today this ad. Tag has been changed and now it’s
“Yeh hai yougistaan meri jaani”.

Pepsi is a short span of its operations in India has found a place in hearts
and minds of the Indian Consumers. The success has primarily been due to the
innovate and passionate Indian team which has been built over the years. Pepsi is
a trendsetter managed and run by Indians, where important decisions are taken
locally.

Pepsi started its operations in India in 1989 and since Pepsi Co. has set up
a fully integrated operation India viz. manufacturing, research and development,
marketing, distribution and franchising covering fruit/vegetable processing,
export, snack foods and beverages. In 1993 Pepsi Co. set up a hold company to
further accelerate growth the future through new initiatives and joint ventures.
Pepsi Co. fully committed to India and the national objective of development of
technology and accelerating exports and employment. It has brought in over
$500 million in foreign exchange as well as technology, which is used for its
global network by way of royalty, know how of dividends.

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Pepsi Co. has a turnover $25 billion, half of which comes from beverages and the
other half from the snacks foods divisions. The beverages arm of the Pepsi Co. is
Pepsi Cola Company and the snacks foods company is called Frito – Lay Inc.
The year 1998 is the centennial year of Pepsi.

Beverages:

Pepsi has set up a concentrate plant in 1989 at Channo, District Sangpur,

Punjab, with an investment of $ 5 million the state of the art Plant houses a world
– class laboratory where soft drinks from all over the world are tested. This
concentrate plant supplies Pepsi, 7Up, Team, Miranda, Orange, Apple & Lemon
flavors to all the Pepsi Bottling plant in South Asia.

Pepsi has 40 Bottling plant in India, out of which 16 are company owned
and 24 are owned by Indian franchisees, Pepsi Co. has invested heavily on up
gradation of these bottling plants and has put 5 green fields projects in backward
areas such as Jainpur and Bazpur in U.P. Bharuch in Gujarat, Sonarpur in West
Bengal and Naclamangala in Karnataka.

New project are coming up in Maharastra and Tamilnadu. In addition to

the Company’s own Bottling Operations (COBO), Pepsi has 24 Franchisee
Owned Bottling Units in India. These franchisee manufacturers are also planning
to install substantial additional capacities. In last two years Pepsi Co.’s
franchisees have put new bottling plant at Jaipur, Bhopal, Hajipur (Bihar),
Guntur (A.P) and Gawahati (Assam) with further investments. Pepsi Co.’s
franchisees are amongst the best in the Pepsi world and the 1998 two Indian
Franchisees were chosen for being the Bottler of the Year amongst all
International Bottlers.

Juices:
Pepsi Co. plans to launch juices in a bog way in India, there by helping the
farmers in fruit procurement. Pepsi Co. Agriculture Scientists has undertaken
research on Mango, Guava and Oranges and these fruits would be the priority

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area for the juice launch in India. Presently Pepsi has one juice brands Slice,
which are presently mango juice brands. Pepsi Co. also has bottling lines in most
of the plants.

Developing Sports:
Pepsi today is one of the main sponsor’s related activities in India and has
counted to promote upcoming new players Cricket, Hockey and Football. In
Mohali, Pepsi has developed a Pepsi Cricket Academy, which would develop
over 500 Young Cricket enthusiasts in next five years. Similarly Pepsi cricket
coaching camps and clinics are held to coach young boys in North & South.

Community Relation:

Most of the bottling plants are located in backward areas, thereby giving
huge employment opportunities in these areas. Pepsi as a responsible company
undertakes social projects in and around the bottling plants. These include
supports to the education centers, sponsors, inoculation camps, providing free
health checkup, initiating sanitation, drives, promoting literacy drives and
helping village to put up bus shelter etc.

Revenue Generation

It is estimated that Pepsi Co. and its franchisees generates over Rs. 500
Crores (in 1997) to the exchequer by the collection of excise duty and sales tax.

Purchase Method:
As we can see that Pepsi Product is present everywhere, so every people
can buy it. Pepsi has launched its product in different range for convenient to
every class people. The 200ML & 300ML bottle is available for single person
and 500ML, 1500ML & 2000ML pet is available for family pack. The company
sells the 200ML & 300ML cold drink without bottle but rest of the item is
available with pet bottle.

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PRODUCT PROFILE

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4.11 PRODUCT PROFILE

The products manufactured and supplied by SMV Beverages Pvt. Ltd, are very
limited in range as it is not independent to diversify its products when required.
This is because it is a unit of PEPSI FOODS LIMITED, which supplies the
concentrates for different brands of soft drink.

These are:-

 PEPSI (cola flavour)

 7 UP (Clean lemon flavour)
 MIRINDA (orange)
 MOUNTAIN DEW
 SLICE(mango flavour ,having concentration of ALPHANSO & TOTAPURI
Mango 30:70 )
The chief consumers are young masses. Beside direct consumer, hoteliers,
restaurants owners and various other soft drinks peddlers also use them. Thus it
can be said that these are the product for mass consumption.

CARBONATED SOFT DRINKS:-

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COLA:

Pepsi

REFRESH EVERYTHING

Contains: Carbonated water, high fructose corn syrup, caramel color, phosphoric acid,
caffeine, citric acid and natural flavors

Calories 100

Total Fat (g) 0

Sodium (mg) 25

Potassium (mg) 10

Total Carbohydrates
27
(g)  

Sugars (g) 27

Protein (g) 0

Caffeine (mg) 25

Diet Pepsi

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0 carbs. 0 calorie. It’s the diet cola.

Contains: Carbonated water, caramel color, aspartame, phosphoric acid,

potassium benzoate (preserves freshness), caffeine, citric acid and natural flavors.

Calories 0
Total Fats (g) 0
Sodium (mg) 25
Potassium (mg) 20
Total Carbohydrates
0
(g)  
Sugars (g) 0
Protein (g) 0
Caffeine (mg) 24

ORANGE:-

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Mirinda Orange

SPARK YOUR IMAGINATION

Contains: Carbonated water, high fructose corn syrup, citric acid, purity gum,
potassium benzoate and potassium sorbate (preserves freshness), ester gum,
natural flavor, yellow 6, ascorbic acid and calcium disodium EDTA (to protect
flavor), sodium citrate.

Calories 120
Total Fats (g) 0
Sodium (mg) 25
Total Carbohydrates
33
(g)  
Sugars (g) 32
Protein (g) 0
Caffeine (mg) 0

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Mountain Dew
DARR KE AGE JEET HAI

The fastest-growing soft drink of the decade, Mountain Dew currently ranks as
the nation's leading soft drink in retail outlets. Doing the "Dew" is like no other
soft drink experience because of its daring, high-energy, high-intensity, active,
extreme citrus taste.

Contains: Carbonated water, high fructose corn syrup, concentrated orange juice
and other natural flavors, citric acid, sodium benzoate (preserves freshness),
caffeine, sodium citrate, gum arabic, yellow 5, erythorbic acid (preserves
freshness), calcium disodium EDTA (to protect flavor) and brominated vegetable
oil.

Calories 110
Total Fats (g) 0
Sodium (mg) 50
Potassium (mg) 0
Total Carbohydrates
31
(g)  
Sugars (g) 31
Protein (g) 0
Caffeine (mg) 36

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LEMON:

7up

Cool 7up

Contains: Carbonated water, caramel color, aspartame, phosphoric acid, potassium

benzoate (preserves freshness), caffeine, citric acid and natural flavors

Calories 100
Total Fats (g) 0
Sodium (mg) 25
Potassium (mg) 20
Total Carbohydrates
25
(g)  
Sugars (g) 31
Protein (g) 0
Caffeine (mg) 24

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Nimbu paani, Nimbooz

PepsiCo India has launched packaged nimbu paani, Nimbooz by 7UP. The
product has been created to suit Indian tastes. PepsiCo claims that Nimbooz, an
offering with real lemon juice, no fizz, and no artificial flavours will be available
in trendy, convenient packs very soon in Jamshedpur .

FRUIT JUICE:-

Slice

Mango Aamasutra

Contains: Carbonated Water, High Fructose Corn Syrup, Mango Juice From
Concentrate, Citric Acid, Potassium Benzoate (Preserves Freshness), Modified
Food Starch, Natural & Artificial Flavors, Potassium Sorbate (Preserves
Freshness), Ascorbic Acid (Vitamin C),Yellow 6, Glycerol Ester of Wood Rosin,
Calcium Disodium EDTA (To Protect Flavor), Sodium Citrate.

Calories 120
Total Fats (g) 0
Sodium (mg) 25
Potassium (mg) 35
Total Carbohydrates
35
(g)  
Sugars (g) 35

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Protein (g) 0
Caffeine (mg) 0

PACKAGED DRINKING WATER

Aquafina

Pure Water. Perfect Taste.

Enjoy the crisp, refreshing taste of Aquafina – 100% pure, non-carbonated,

purified drinking water. The consistent purity and great taste of Aquafina are
guaranteed by means of a state-of-the-art purification process that includes
reverse osmosis and carbon filtration. Since its debut in 1995, Aquafina has won
over consumers with its great taste and purity.

Aquafina is the official bottled water of Major League Soccer and the PGA of
America. Aquafina is distributed nationwide and can be enjoyed in 500 ml., 1-
liter and 1.5-liter bottles. Aquafina. Purity Guaranteed. Contains: Purified water

Calories 0
Total Fats (g) 0
Sodium (mg) 0
Potassium (mg) 0
Total Carbohydrates
0
(g)  
Sugars (g) 0
Protein (g) 0
Caffeine (mg) 0
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DIFFERENT FLAVOURS OF PEPSI PRODUCT

(STOCK KEEPING UNITS)

SKUs OF PEPSI
Glass 200ml, 300ml

Can 250ml, 330ml

Pet 600ml, 2 ltr

SKUs OF 7UP
GLASS 200ml, 300ml

Can 250ml, 330ml

Pet 600ml , 2 ltr

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SKUs OF MOUNTAIN DEW

GLASS 200ml

Can 250ml, 330

Pet 600ml , 2 ltr

SKUs OF MIRINDA
Glass 200ml , 300ml

Can 250ml, 330ml

Pet 600ml, 2 ltr

SKUs OF DIET PEPSI

CAN 250ml, 330ml

Pet 500ml

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SKUs OF SLICE
Glass 250ml

Pet 500ml, 1.2 ltr

Tetra 200ml

SKUs OF
AQUAFINA
PET 500ml, 1 ltr, 2 ltr

SKUs OF TWISTER
PET 350 ml, 1.2 ltr

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SKUs OF TROPICANA
TETRA PACKS 200ml (pineapple , mixed fruit,
mango nectar, guava nectar, Lychee, Peach
orange nectar, Strawberry, Apricot)

TETRA PACKS 1 LTR ( pineapple , mixed fruit,

mango nectar, tomato, guava nectar, Lychee,
Peach orange nectar, Strawberry, Apricot)

ADVERTISEMENTS

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4.12 ADVERTISING POLICY

Advertising is a fascinating and important aspect of marketing. The health of

many businesses depends on the generations of effective advertising. Advertising
catches the imagination of people outside the industry. Everyone seems to have
opinions on the advertisement and finds it easy to attach levels to them, such as
fun, humors, warm, entertaining, persuasive, boring, contriver or irritating.

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Advertising is basically communication and persuasive and such as long leaved

on the insight of psychology and the study of consumer behavior. Thus, it is
natural to look to theories, concept and research findings from psychology help to
understand and manage the process. In all phases of advertising process from
objective setting through campaign creation and media selection to copy of
campaign evolution, research provides the thrust. Major institutions involved in
the field of Advertising Process.

Advertising is heavily focused on the analysis, planning, control and decision

making of the core institution – ‘The advertiser’ provides the overall managerial
direction and financial support for the development of advertising and the purpose
of media time and space. Even though, many other institutions are involved in the
process.

The resulting is usually aired are placed several times and the resulting schedule
of exposure is referred to as an advertising campaign. Thus identification and
understanding of markets and consumer behaviors is also a vital part of
advertising process.

TYPES OF ADVERTISEMENTS

DIRECT ADVERTISING

Ad films, radio, newspaper ,Ad in magazine, Hoardings, Glow sign, Sponsorship

INDIRECT ADVERTISING

Shop painting , Wall panting, Visi coolers , Vehicle paintings

SIGNIFICANCE OF ADVERTISING

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Advertising is a non-personal promotion of goods and services, by a sponsor (a

firm or person) who can be identified and who has paid for this
communication.

The purpose of advertising is to lead to an immediate sale, or a sale at home later

date when the customer may find a need for the product. The purpose of
advertising is to sell something; this gole is reached by specific objective that can
be expressed in individual ads that incorporated into advertising campaign.

Recall again from the buying decision process that buyer go through a series of
stages from awareness to purchases. Thus an immediate objective of an
advertisement may be to move target customers to the next stage in the hierarchy-
say from awareness to interest.

Objective of advertising strategy:

 Support personal Selling

Advertising may be used to acquaint prospects with the sellers, company and
products, easing the way for the sales force.

 Improve Dealer Relations

Wholesaler and retailer like to see a manufacturer support its product.

 Introduce a New Product

Consumers need to perform even about line extensions that make use of familiar
brand names.

 Expanding the use of Product

Advertising may be used to lengthen the season of the product increase the
frequency of replacement or increase the variety of products uses.

 Counteract substitution

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Advertising reinforces the decision of existing customers and reduces the

likelihood that they will switch over to the alternative brands.

ADVERTISING STRATEGY OF THE COMPANY

The main motive behind the purpose of advertising of the bottles of PEPSI Co. is
to maintain the brand loyalty through recalling the memory of the users of soft
drinks as to attract the potential consumers who consume a soft drink on the spur
of the moment.

All the bottles of India to advertise he produces Pepsi, 7Up, Mirinda, Slice,
mountain dew as per the norms and guidance of the Pepsi Co. of India. On the
national basis using a number of media. The media extensively used are:
Newspaper, short advertising films, Radio, TV.

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MERCHANDISING
OF
PEPSI AND COCA-COLA

PEPSI

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MERCHANDISING

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“ JO DIKTHA HAI ,

WO BIKTA HAI”

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4.13 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 embedded into the
perceptual space of the consumer’s mind. The concerned product should induce to
the consumers. Pepsi believes that “Jho Dikhta Hai Who Bikta Hai” i.e. any
product which is visible is bound to be sold.

METHODS OF MERCHANDISING
These are methods of increase the visibility of product:-

o Visi-cooler placement

o Glow signboard

o Paintings

o Crate Stacking

o Umbrella

o Banners

o Danglers

o Sun Packs

o Display Scheme

o Special Schemes

In the era of globalizing and liberalization the competition in the market has
become very tough to beat the competitor the company has to improve itself, and

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see how customer can be best satisfied or how customer can be delighted. Each
company has to develop strategy for the following purposes.

 Aware the customer about the product

 Make the customer feel that they are important and company is given best of
the products.

 The services associated with the product is if high quality.

 To increase its growth and sales and be market leader.

VISICOOLER PLANOGRAM (p-O-G)

Visicooler Planogram is a part of merchandising where main focus was to
check the purity, charging and visibility of the visicooler. Different size of
visicooler had different types of arrangement of flavours of pepsi products. The
different sizes of visicooler are 220ltr,300ltr,320ltr, 400ltr, 440ltr,650ltr, 1200ltr
etc. Planogram is a process of filling of visicooler with the Pepsi and pepsi
products. Its is mandatory that the Apart from this we also look into the factor
the visi is kept on the correct place to enhance its visibility because Pepsi believes
that “Jho Dikhta Hai Who Bikta Hai” i.e. any product which is visible is bound
to be sold. Moreover we know that only “COLD IS SOLD”.

The main aspects of the Plano gram are

 100% Purity

 Charging .

 Visibility.

100% PURITY IN VISICOOLER

By cooler purity we mean to say that the cooling apparatus that is either fridge or
icebox is fully charged with the Pepsi Product only because some retailers keeps

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the other products like coke products , fruity , milk etc. Here we were assigned a
job to check out whether the cooling apparatus is best utilized by the Pepsi
products or not. If not then arrange the cooler with the particular product of Pepsi
and other extra product were removed.

CHARGING
Generally, the consumers demand the soft drinks in the chilled conditions, i.e,
only “COLD IS SOLD” which is only possible to have a Pepsi Chilling
apparatus either fridge or icebox . So, we were assigned to check whether the
cooling apparatus is performing well and good up to mark with the Pepsi Product.
These helps in effective utilization of visicooler . While charging the visicooler
we had to put the flavours of Pepsi in a sequence like Pepsi, 7up, Mirinda ,
Mountain dew, Slice , Nimbooz, Aquafina and it was cleaned properly
before putting into the visicooler.

VISIBILITY AND POG

To check that visicooler is kept on the correct place of the outlets so that it
increases the visibility and sales. And POG involved the sequential placing of
bottles/cans/tetra packs of different flavours.

The retailers who maintained the POG gets the monthly incentives of Rs 300 and
500 by the company depending on the size of visicooler when the auditing was
done. These motivates the retailers to maintain the visicooler according to the
POG.

Steps in Planogram when it is implemented for the first time:

I. Empty the visicooler

II. Clean the visicooler

III. Clean the bottles with duster.

IV. Pepsi products are kept first on the down shelve of the visicooler.

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V. Then the bottles are kept on the upper shelve with the distance of 2 inches
between the racks.

VI. Then according to P-O-G the visicooler is charged as the picture shown
below.

POG IN VISI SIZE 220 Ltr , 300 Ltr

According to the POG there should be

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Pepsi – 40% , 7up- 35%, Mirinda- 10%, Dew- 5%, Slice- 10%

The percentage of Pepsi is more to maintain the identity and brand of Pepsi.

Steps in Planogram when it is implemented for the second time:

I. Check the cooler .

II. Determine the number of bottles of each brand or flavour required to fill the cooler
according to the POG sequence.

III. Clean the bottles/cans/tetra packs with the duster.

IV. Place the products in the lower shelve first

V. Maintain a gap of 2 inches between the bottles and the upper shelve

Repeat the process minority and women business development programs were rated
among the top-10 nationally by the National Minority Supplier Development Council.

VI. Charge the products according to the prescribed sequence of POG

VII. Ensure that the cooler is 100% charged.

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COCA-COLA

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MERCHANDISING

The Chronicle of Coca-Cola

MOVING WITH THE TIMES

From the late 1940s to the 1970s, the United States, like most of the world, changed at an
unprecedented pace. The Coca-Cola Company also experienced its most dramatic
changes in marketing and merchandising since the advent of bottling in the late 1890s.
World War II had recast the world, and the Company faced a new, more complex global
marketplace.

Packaging
Until the mid-1950s, the world of Coca-Cola was defined by a 6 ½-ounce
hobble-skirt bottle or bell-shaped fountain glass. But as consumers demanded

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a wider variety of choices, the Company responded with innovative packaging, new
technology and new products.

In 1955, the Company introduced the 10-, 12- and 26-ounce king-size and family-size
bottles, which were immediately successful. Metal cans, first developed for armed forces
overseas, were available on U.S. market shelves by 1960. Then, following years of
research into plastic soft-drink bottles, the Company introduced PET (Polyethylene
Terephthalate) packaging in 1977 in the 2-liter size.

Products
The Company also introduced new soft drinks to satisfy a widening
spectrum of tastes. Born in Germany, Fanta® was
introduced in the United States in 1960; today the
Fanta family of flavored soft drinks has become one
of the best-selling brands in the world. Sprite®, a
lemon-lime drink, followed in 1961, and in 1963 the Company
introduced TAB®, its first low-calorie beverage.

Change during the 1960s entailed more than new soft drinks. In 1960 the
Minute Maid Corporation merged with the Company, adding frozen citrus
juice concentrates and ades under the trademarks Minute Maid® and Hi-
C® to the Company's array of beverages.

Advertising
Through the years, jingles and slogans have set the pace for Coca-Cola advertising. One
of the world's most famous advertising slogans, "The Pause That
Refreshes," first appeared in The Saturday Evening Post in 1929. It was
supported by "It's the Refreshing Thing to do" in 1936 and 1944's
"Global High Sign." The 1950s produced "Sign of Good Taste," "Be
Really Refreshed" and "Go Better Refreshed."

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Many more memorable slogans followed, including "Things Go Better with Coke" in
1963. "It's the Real Thing," first used in 1942, was revived in 1969 to support a new,
tremendously successful merchandising stance for Coca-Cola.

Fine illustrations by top artists including Norman Rockwell were featured in

colorful ads that projected the product's image in leading magazines. Noted
artist Haddon Sundblom's popular Santa Claus "portraits," which began in
the 1930s, continued as holiday ads until the early 1960s.

Since the mid-1920s, radio had been the most important

communication medium for Coca-Cola. In the 1960s, the popular
"Things Go Better with Coke" jingle became a hit radio spot, using
successful groups sang the jingle in their own musical styles.

The Company's advertising changed along with the world, reaching

new groups of consumers through new channels, most notably television. On
Thanksgiving Day 1950, Edgar Bergen and his sidekick, Charlie McCarthy, appeared on
the first live television network show sponsored by The Coca-Cola Company. As the
medium evolved from program sponsorship to commercials that ran during different
shows, many famous celebrities advertised Coca-Cola.

Through the years, advertising for Coca-Cola has changed in many ways, but the
message, like the trademark, has remained the same.

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CHAPTER-5

ANALYSIS

&
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INTERPRETATION

(1) Which types of Drink is mostly asked by the customer.

Fruit Juice Lassi Carbonated Soft drink Total

30 15 55 100
30% 15% 55% 100%
Table no. 5.1

Fruit Juice
Lassi
Carbonated Soft drink

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Chart no. 5.1

Analysis-
As it can be seen that the consumption of carbonated soft drinks is more as compare to
fruit juice and lassi.Therefore the demand for the carbonated soft drinks is higher in the
whole beverage industry.

Interpretation-
The demand of carbonated drinks is more as compare to fruit juice and lassi because
carbonated soft drink is not a homemade product where as fruit juice and lassi is a kind of
homemade products and as a result of that there demand in the market is less as compare
to carbonated soft drinks.

(2) Quantity of PepsiCo and coca-cola product in outlet(In percentage).

PepsiCo Coca-cola Total

40% 60% 100%
Table no. 5.2

PepsiCo
Coca-cola

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Chart no. 5.2

Analysis-
The consumption of coca-cola products is more in the market as compared to PepsiCo
products in the market i.e 60:40 .

Interpretation-
The demand of coca-cola product is more because of its –

(1) Various ranges of products

(2) Its innovative advertising strategies through celebrity advertising.

(3)Which brand Visi-cooler do you have.

Pepsico Coca-cola Total

35 65 100
35% 65% 100%

Table no. 5.3

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Pepsico
Coca-cola

Chart no. 5.3

Analysis-
Most of the retailers have more no. of visi-coolers of coca-cola and less of Pepsico as
compare to coca-cola.

Interpretation-
We can see the difference in the usage of visi-cooler of the two companies due to –

(1) There service providing facilities.

(2) There consumption.

(4)Which brand display Danglers do you have.

Pepsico Coca-cola Both Total

30 45 25 100
30% 45% 25% 100%

Table no. 5.4

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50
45
40
35
30
25
20
15
10
5
0
Pepsico Coca-cola Both

Chart no. 5.4

Analysis-
The retailers is having more brand dangler of coca-cola as compare to PepsiCo i.e 45:25.

Interpretation –
We can see the more distribution of brand danglers in market is more in case of coca-cola
as compare to PepsiCo because of their-

(1) Promotional tools & techniques

(2) More schematic product

(5)Which brand Promotion boards ‘ do you have.

Pepsico Coca-cola Both Total

38 42 20 100
38% 42% 20% 100%
Table no. 5.5

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45
40
35
30
25
20
15
10
5
0
Pepsico Coca-cola Both

Chart no. 5.5

Analysis –
The distribution of promotion boards is more in coca-cola as compare to PepsiCo but the
difference is very less but though the demand for coca-cola product is more.

Interpretation –
(1) Most of the retailers are having more boards of coca-cola but the
difference is very less i.e 5 %.
(2) It can be seen and understood that PepsiCo is more concentrating on
promtion boards’ rather than danglers

(6) Are you satisfied with the service given by the sales man of Pepsico?

Highly Satisfied Neutral Dissatisfied Highly Total

satisfied Dissatisfied

28 45 12 06 09 100

28% 45% 12% 06% 09% 100%

Table no. 5.6

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50
45
40
35
30
25
20
15
10
5
0
Highly satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

Chart no. 5.6

Analysis-
The satisfaction level amongst retailers is good which can be seen from the above data i.e
73% (combination of satisfied and highly satisfied-shows the total percentage of the
satisfaction)The weighted average score is 3.77 on a scale of 5, 4 represents satisfied
level and 3 represents average/neutral level. The above score reflects that the satisfaction
is above average but has not reached the satisfaction level required.

Interpretation-The satisfaction level of retailers is more because of the service

provided by the sales man as –

(1) Service on Time (2) Behavioral aspects

(7) How frequently salesman visit to your outlet.

Every Day 2-4 Days in a Once in a week Never Total

week

05 40 53 02 100
05% 40% 53% 02% 100%

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Table no. 5.7

60

50

40

30

20

10

0
Every Day 2-4 Days in a week Once in a week Never

Chart no. 5.7

Analysis-
As it can be seen that the frequency of visiting by salesman is more in case of once in a
week and 2-4 days in a week.

Interpretation-
A good service is being provided by the salesman with the help of their frequent visit to
the retail outlets which as a result increases the confidence and the satisfaction level of
the retailers.

(8) Are you satisfied with the service given by the sales man of Coca-cola?

Highly Satisfied Neutral Dissatisfied Highly Total

satisfied Dissatisfied

34 48 08 07 03 100

34% 48% 08% 07% 03% 100%

Table no. 5.8

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50
45
40
35
30
25
20
15
10
5
0
Highly satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

Chart no. 5.8

Analysis-
The satisfaction level amongst retailers is good which can be seen from the above data i.e
82% (combination of satisfied and highly satisfied-shows the total percentage of the
satisfaction).The weighted average score is 4.03 on a scale of 5, 4 represents satisfied
level and 3 represents average/neutral level. The above score reflects that the satisfaction
is in satisfied category so it has reached the satisfaction level required.

Interpretation-The satisfaction level of retailers is more because of the service

provided by the sales man as –

(1) Service on Time (2) Behavioral aspects

(9)How many numbers of bottles of the brand associated with PepsiCo are you selling per
day?

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45

40

35

30
Pepsi
25
Mirinda
M. Dew
20
7up
Slice
15

10

0
Less than 5 5 to 10 10 to 15 15 to 20 More than 25

Chart no. 5.9

Analysis-

As we can see from the given data that –

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(1) If the consumption of bottles is less than 5 than slice and mountain dew
was being sold more as compared to Pepsi.
(2) If the consumption of bottles is in between 5-10 than mirinda and 7up was
being sold more as compared to Pepsi and Slice.
(3) If the consumption of bottles is in between 10-15 than 7up and Slice was
being sold more as compared to Pepsi.
(4) If the consumption of bottles is in between 15-20 than Pepsi was being
sold than Slice and Mirinda.
(5) If the consumption of bottles is much more than 25 than Pepsi was being
sold than Mirinda and slice.

Interpretation-

(1) When the consumption level was less than that time the selling of Pepsi
was less as compare to mountain dew and slice but as, the consumption
level increases the selling of Pepsi was more as compare to slice and
Mountain dew.
(2) The consumption of Mirinda and 7up was moderate(fluctuated only upto
certain extend).

(10)How many numbers of the brand associated with Coca-Cola are you selling per day?

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30

25

20
Thums up
Sprite
15
Fanta
Limca
Mazza
10

0
Less than 5 5 to 10 10 to 15 15 to 20 20 to 25 More than 25

Chart no. 5.10

Analysis-

As we can see from the given data that –

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(1) If the consumption of bottles is less than 5 than Fanta and limca was being
sold more as compared to Thums up.
(2) If the consumption of bottles is in between 5-10 than Limca and Fanta was
being sold more as compared to Thums up and Maaza.
(3) If the consumption of bottles is in between 10-15 than Fanta and Limca
was being sold more as compared to Sprite.
(4) If the consumption of bottles is in between 15-20 than Limca was being
sold than Slice and Thums up and Fanta.
(5) If the consumption of bottles is in between 20-25 than Sprite was being
sold than Fanta and Limca.
(6) If the consumption of bottles is much more than 25 than Thums up was
being sold than Limica and .Maaza.

Interpretation-

(1) When the consumption level was less than that time the selling of Thums
up was less as compare to Fanta and Limca but as, the consumption level
increases the selling of Thums up was more as compare to Fanta and
Limca.
(2) The consumption of Sprite was moderate(fluctuated only upto certain
extend).

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CHAPTER-6

FINDINGS
RECOMMENDATIONS

AND

CONCLUSION

Findings -

(1) Carbonated soft drinks is being more demanded as compared to fruit juice and
lassi because of different varieties. (Refer to chart no. 5.1)
(2) The quantity of coca-cola’s prducts in overall retail outlets is more than PepsiCo’s
products that shows more demand of coca-cola products in the market. (Refer to
chart no. 5.2)

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(3) The no. of visi-coolers in retail outlet is more of coca-cola as compare to PepsiCo.
(Refer to chart no. 5.3)
(4) In case of display dangler in retail outlet again coca-cola is ahead of PepsiCo in
this respect also. (Refer to chart no. 5.4)
(5) In case of display brand promotion in retail outlet again coca-cola is ahead of
PepsiCo in this respect also. (Refer to chart no. 5.5)
(6) The satisfaction level of retailers is 50% of in case of PepsiCo which is
considered to be a good percentage. (Refer to chart no. 5.6)
(7) The retailers are satisfied with the frequent visit of the salesman of coca-cola &
PepsiCo . (Refer to chart no. 5.7)
(8) If the consumption is less then Pepsi is being preferred less as compare to Mirinda
& Slice. (Refer to chart no. 5.9)
(9) As the consumption increases pepsi is being preferred more as compare to other
products of PepsiCo. (Refer to chart no. 5.9)
(10) If the consumption is less then thums up is being preferred less as compare
to Mountain Dew and vice versa. (Refer to chart no. 5.10)

RECOMMENDATIONS -

 Salesman should have good interaction with the dealers, which results
company in increase in sales. (Refer to finding no. 7)

 Customer Executive should visit the counter on weekly basis. (Refer to

finding no. 7)
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 The entire Pepsi product should be display at one place so that the
customers are aware about the Different brand of PepsiCo. (Refer to
finding no. 9)
 The entire coca-cola product should be display at one place so that the
customers are aware about the Different brand of coca-cola. (Refer to
finding no. 10)

 In the bus stand, railway, canteen, highway the CAN and PET bottles
should be made available every time because the public are busy there
and they cannot wait.

 Make every retailers know about the scheme.

 More improvement is required in the distribution network in Burma mines
areas. In the peak seasons like summer the small dealers are taking goods
twice or thrice and in between if the distributor could not supply then the
competitors will get the opportunities to supply the goods.
 PepsiCo should provide more no. of visi-cooler in the retail outlet. (Refer
to finding no. 3)

CONCLUSION -

Most of the FMCG companies like PepsiCo & coca-cola has shown a great performance
with regard to its responsibility, competitiveness and self administration. The main
problem to these companies is that its development solely depends on its performance. So
it is very important to analyze its past and present performance. The performance data of

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the companies are saved in the form of documents, using different technologies. The
saved data or information helps in comparing the past and the present performance of the
company. So accordingly, the different strategies should be framed. Like knowing the
preference of the customers, creating a strong channel of distribution of the products to
the nearest outlets, training the salesman on how to understand the requirements of the
customers. Keeping these strategies in mind PepsiCo & coca-cola has gained maximum
market shares compared to its competitors.

The data collected from the survey, helped in finding out the preference of the customers
towards carbonated soft drinks are more. Further, brand promotional boards of coca-cola
is more than PepsiCo because of which customers are more attracted towards coca-cola.
These are the major findings of the study which showed that the performance of coca-
cola and PepsiCo companies is getting enhanced. Here by, it is concluded that coca-cola
and PepsiCo are more focused towards the visual merchandising strategies. Here by
creating a strong competitive edge.

BIBLIOGRAPHY

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 www.pepsizone.com

 www.pepsiindia.com

 www.pepsico.com

 www.pepsichannel.com

 www.Wikipedia.com

 Marketing Research- Rajan Saxena

 Marketing Management-Philip Kotler

 Magazines(marketing management 4P’s)

ANNEXURE

QUESTIONNAIRE FOR DEALERS:-

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NAME OF THE OUTLET :- ……………………………………………

AREA :- ……………………………………………

TYPE OF THE OUTLET :- ……………………………………………..

1. Which types of drink is mostly asked by the customer?

a) Fruit juice b) Lassi c) Carbonated soft drink

2. Quantity of PEPSI product in your outlet?(In percentage)

0 10 20 30 40 50 60 70 80 90 100

3. Quantity of COCO-COLA product in your outlet? (In percentage)

0 10 20 30 40 50 60 70 80 90 100

4. How many numbers of bottles are you selling per day?

PRODUCT Less than 5 - 10 10 – 15 – 20 – More

5 15 20 25 than
25
PEPSI
MIRINDA
M.DEW
7UP
SLICE

5. How many numbers of bottles are you selling per day?

PRODUCT Less than 5 - 10 10 – 15 – 20 – More

5 15 20 25 than
25
THUMS UP

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SPRITE

6. Which brand visi-cooler do you have?

a) Pepsi b) Coco-cola

7. Which brand display Danglers do you have?

a) Pepsi b) Coco-cola c) Both

8. Which brand display Promotion boards’ do you have?

b) Pepsi b) Coco-cola c) Both

9. Are you satisfied with by the service given by the salesman of Pepsi?

a) Highly satisfied b) Satisfied

c) Neutral d) Dissatisfied

e) Highly dissatisfied

10. How frequently salesman visit to your outlet?

a) Every day b) 2 – 4 days in a week c) Once in a week d) Never

11. Pick out the option as applicable.

A – Always, O – Often, S – Sometime, R – Rarely, N – Never

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A O S R N
Satisfied with the availability of all flavours
Salesman easily change your damaged or outdated
stocks
Company persons visit your outlet
Company persons listen and solve your service related
problem
You are updated about the scheme by the salesmen or
company persons

12. How many empty crates do you have?

a) Pepsi ………. b) Coco-cola…………..

DATE…………………………….

SIGNATURE……………………..

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