Impact of TV Advertisement of Pepsi Company Mba Marketing Project Report
Impact of TV Advertisement of Pepsi Company Mba Marketing Project Report
Impact of TV Advertisement of Pepsi Company Mba Marketing Project Report
EXECUTIVE SUMMERY
This project report is on the Impact of advertisement (Pepsi TV promo add)on retailer to know about the awareness about the advertisement. The project was carried in Mysore with sample size of 200 retailers.
Dependent variable: Sales is dependent variable because when advertised properly the consumers are induced. Awareness is also related to sales because if the retailers are aware of the advertisement they can confront about the benefits to the consumers.
Therefore the project is done to check the awareness level of the advertisement among the retailers.
Impact of TV advertisement
INTRODUCTION
The project was started from May 15th to July 15th 2006 for Pepsi Co India. It was done in Mysore. The project was carried out due to the criteria of the university after the completion of M.B.A. second semester. The main objective of this in-plant training was to get an exposure to the working environment in an organization. This was an opportunity for us to relate concepts learnt by us to the practical application in the organization. This in-plant training provided us in interacting with the highly experienced managers and to improve our practical knowledge.
Impact of TV advertisement
Impact of TV advertisement
Impact of TV advertisement
1.
RETAILERS ABOUT THE PEPSI T.V.AD.PROMO. 2. 3. TO KNOW IF DISPLAY COULD DRIVE THE SALES. TO KNOW WHO ARE THE CUSTOMERS FOR 2 LITRE BOTTLES
Impact of TV advertisement
1) 2)
The Pepsi markets share in Mysore. Awareness level about Pepsi T. V. ad. Promo amongst the retailers.
Impact of TV advertisement
consumers. 2) a. b. c. 3) Amongst the retailers only the following are considered: A & B Class bakeries Supermarkets Few provision stores The coverage of objective of study is limited to the extent of
information given by the company. Inspite of all above-mentioned limitations, every effort has been made effectively and report is prepared to best of my knowledge.
Impact of TV advertisement
Impact of TV advertisement
CHAPTER - II
Impact of TV advertisement
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Impact of TV advertisement
CORPORATE PROFILE
PepsiCo is the world leader in convenient food and beverages with 2005 revenues of more than dollar 32 billion and more than 157000 employees. The company consists of Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International and Quaker Foods North America. PepsiCo brands are available in nearly 200 countries and territories and generate sales at the retail level of about $85 billion. Many of PepsiCo's brand names are more than 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with the Quaker Oats Company, including Gatorade, in 2001. PepsiCo offers product choices to meet a broad variety of needs and preference -from fun-for-you items to product choices that contribute to healthier lifestyles. PepsiCo owns some of the world's most popular brands, including Pepsi-Cola, Mountain Dew, Diet Pepsi, Lay's, Doritos, Tropicana, Gatorade, and Quaker. Our brands are available worldwide through a variety of go-to-market systems, including direct store delivery (DSD), broker-warehouse, and food service and vending.
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Impact of TV advertisement
PEPSI IN INDIA
Pepsi gained entry to India in 1988 by creating a joint venture with the Punjab Government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991 when the use of foreign brands was allowed; Pepsi bought out its partners and ended the joint venture in 1994. The brand was trademarked on June 16, 1903, though the drink was first made in 1898, by pharmacist Caleb Bradham.
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Impact of TV advertisement
1. PEPSI 2. PEPSI CAF CHINO 3. DIET PEPSI 4. 7 UP 5. MIRINDA 6. SLICE 7. MOUNTAIN DEW 8. AQUIFINA 9. LEHAR SODA
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Impact of TV advertisement
Product Profile
The price of the product two liters Pepsi pet bottle is Rs. 45/- sales price Rs. 42.85 ps retailers price
Contents Sweetened Carbonated water No Fruit juice Sugar Buffering agents Contains added flavours 1 case contains 9 bottles
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Impact of TV advertisement
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Impact of TV advertisement
Corporate Citizenship
At PepsiCo, we believe that as a corporate citizen, we have a responsibility to contribute to the quality of life in our communities. This philosophy is expressed in our sustainability vision which states: PepsiCos responsibility is to continually improve all aspects of the world in which we operate environment, social, economic -- creating a better tomorrow than today. Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.
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Impact of TV advertisement
Executive Office PepsiCo, Inc. 700 Anderson Hill Road Purchase, NY 10577 (914) 253-2000
PepsiCo Headquarters
PepsiCo World Headquarters is located in Purchase, New York, approximately 45 minutes from New York City. Edward Durrell Stone, one of Americas foremost architects, designed the seven-building headquarters complex. The building occupies 10 acres of a 144-acre complex that includes the Donald M. Kendall Sculpture Gardens, a world- acclaimed sculpture collection in a garden setting.
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Impact of TV advertisement
Divisions
The company reports their operating results as follows, by divisions:
Frito-Lay North America (FLNA) PepsiCo Beverages North America (PBNA) Quaker Foods North America (QFNA) PepsiCo International (PI)
FLNA
PBNA
QFNA
PI
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Impact of TV advertisement Diversity isnt just the right thing to do. Its the right thing to do for our business, and we are committed to making diversity and inclusion a way of life at PepsiCo. In our business, understanding different cultures is a major advantage. In fact, we view diversity as a key to our future. Our brands appeal to an extraordinarily diverse array of customers. And they are sold by an equally diverse group of retailers. To truly understand the needs of our customers and consumers -- and succeed in the marketplace -- PepsiCo must reflect that diversity in our employees, our suppliers and in everything we do. Offering a workplace where diversity is valued helps us build the top-quality workforce so crucial to our success -- by enabling us to attract and retain great people from a wide spectrum of backgrounds.
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Impact of TV advertisement
Community
PepsiCo committed to celebrating and supporting diversity in its community through its corporate giving and community programs. PepsiCo gives to the community through the PepsiCo Foundation, the PepsiCo Community Affairs Department and PepsiCo divisions. The PepsiCo Foundation and its operating divisions gave grants to more than 1,000 community organizations, of which a significant portion were organizations championing diversity. It also support organizations through gifts in-kind, such as product, premiums, printing, meeting arrangements, equipment donations, and support of events, conventions, journals and meetings.
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Impact of TV advertisement
Customers
PepsiCo is committed to marketing its products to all groups, treating all customers with respect, sensitivity and fairness, while providing some of the greatest products on earth. Early in its history -- as far back as the 1940s -- PepsiCola recognized the importance of diversity. Pepsi pioneered targeted marketing and national lifestyle advertising featuring minorities. It developed education and sports programs spotlighting minorities. PepsiCo partnered with many groups to create programs that contribute to minority communities. It sponsored major music tours by entertainers such as Tina Turner. PepsiCo support minority media and interests. Over the years, its success has been recognized with numerous awards. Most importantly, its products are purchased and enjoyed by all groups of consumers.
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Impact of TV advertisement
Shareholders
PepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange in the United States. The company is also listed on the Amsterdam, Chicago, Swiss and Tokyo stock exchanges. PepsiCo has consistently paid cash dividends since the corporation was founded.
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Impact of TV advertisement
Sustainability vision
PepsiCo responsibility is to continuously improve all the aspects of the world in which they are operating i.e. that is environment social and economical with an intension of creating better tomorrow than today. This is the core part of the vision.
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Impact of TV advertisement
ENVORONMENTAL POLICY
1. PepsiCo complies with applicable legal and regulatory requirements and
companies standards and conduct regular audits to verify compliance 2. policy 3. 4. process 5. 6. Pepsi co applies sound environmental management practices. Pepsi encourages conservation of natural resources, recycling and PepsiCo reviews policy periodically and updates as needed. It considers potential environmental impacts in daily decision making PepsiCo annually review companies performance in implementing the
pollution control to ensure cleaner air and water 7. Pepsi co monitors emerging issues and keep abreast of regulatory changes
technological innovation and stakeholders interest. 8. PepsiCo works with licensed bottlers suppliers and customers top reduce
environmental impacts on its product throughout their life cycle As the part of their environmental policy Pepsi Co India has 1. 2. Donated generously to the Tsunami victims. The company has also developed a Teppada village NH-4 Begur
surrounding Nelamangala Plant and the company has also been providing free water to this village.
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Impact of TV advertisement
To build an exceptional customer focused sales team, which will consistently exceed customer expectations by delivering executional excellence in the market place through best selling systems and process.
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Impact of TV advertisement
the Globes Awards sponsored by the Marketing Agencies Association (MAA) Worldwide. Pepsi Wins Award for Indian Cricket World Cup Campaign by Marketing Agencies Association Worldwide.
Leaders.
Chinese College Students Name Pepsi Among Top Ten Brands. Fortune Magazine calls PepsiCo "one of the best run companies in the
country.
PepsiCo Wins Sams Club Supplier of the Year Award. Institutional Investor Identifies PepsiCo as one of Americas Most
Shareholder-Friendly Companies.
Top 20.
Gatorade Mexico Named Wal-Mex 'Supplier of the Year'. PepsiCo Officially Observes $100 Billion Market Cap Milestone.
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Impact of TV advertisement
FACTORY
DISTRIBUTORS
RETAILERS
CONSUMERS
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Impact of TV advertisement
BUGM (CEO)
ED
SOMU (MUM)
WOMU (MUM)
COMU (MUM)
NOMU (MUM)
EOMU (MUM)
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Impact of TV advertisement BUSINESS UNIT GENERAL MANAGER (BUGM): Mr. RAJEEV BAKSHI EXECUTIVE DIRECTOR (ED): Mr. TANMYA VATS SOUTH OPERATIONS MARKET UNIT (SOMU): WEST OPERATIONS MARKET UNIT (WOMU): CENTRAL OPERATIONS MARKET UNIT (COMU): NORTH OPERATIONS MARKET UNIT (NOMU): EAST OPERATIONS MARKET UNIT (EOMU): MARKET UNIT MANAGER (MUM): THE MUM FOR SOMU: - Mr. VENKATSHANKAR
Note: Each market unit has a manager called as Market Unit Manager (MUM). Represents flow of Authority.
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Impact of TV advertisement
SOMU
CHENNAI (UM)
MADURAI (UM)
KARNATAKA (UM)
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Impact of TV advertisement
The South operations Market Unit is divided into three parts they are 1) 2) 3) Chennai Madurai Karnataka Each unit has a Unit Manager, which is also called as the Vice President. These Unit Managers report to their respective Market unit Manager (MUM) Mr. Venkatshankar
KARNATAKA UNIT
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Impact of TV advertisement
LMP
TDM
TDM
TDM
ADC
ADC
ADC MDC
CEs
CEs
CEs
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Impact of TV advertisement For Karnataka Unit there are: 1Line plant manager 1 Unit Manager 3 Territory Development Managers (TDMs) 3 Accounts Development Manager (ADCs) 1 Market Development Manager (MDC) and Customer Executives (CEs)
Is the Unit Manager / Vice president has Sales as well Operational power then he reports to Line Plant Manager as well as the respective Market Unit Manager but if the Unit Manager has only sales power then he has to report to the Line Plant Manager who in turn reports to the Market Unit Manager.
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Impact of TV advertisement
The entire Karnataka unit is been divided into 3 territories and accordingly one Territory Development Manager is been assigned to each territory: -
1) Up Country it refers to the places outside Bangalore i.e. Mysore, Mangalore, Tumkur, Ramnagar, Kolar etc.
2) Kormangala
3) Yeshwantpura
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The function of ADC is developing the new accounts i.e. adding up new retailers to the existing market list. He is concerned with sales department only.
FUNCTIONS OF MARKET DEVELOPMENT CO-ORDINATOR (MDC): The function of MDC is to develop new market. He purely undertakes marketing activities.
Note: The ADC and the MDC are only the supportive functions between the TDMs and CEs.
Together with the TDM the Karnataka Unit also has a MDM Mr. ABDUL ASHIQ
The TDM takes care of sales activities in its region and the MDM is concerned with marketing functions.
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Impact of TV advertisement
PLANT DETAILS
PLANT
ACCOUNTS
LOGISTICS
QUALITY CONTROL
The plant is divided into three departments, 1) ACOUNTS 2) LOGISTICS 3) QUALITY CONTROL
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Impact of TV advertisement 1) ACCOUNTS: - This is one the big department which consists of the financial operations of the company. It consists of maintenance of accounts, the provision given to the retailers for the promotion activities carried on by them. This department also deals with the provision of coolers and any complaints with regard to it and other financial requirements of the company.
2) LOGISTICS: - This department is concerned with transportation of the products (bottles) to the distributors.
3) QUALITY CONTROL: - This department/unit takes care that the product released are of standard quality according to the companies norms provided
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Impact of TV advertisement Pepsi India Holdings, the intermix of company-owned bottling operations (COBOs) and franchisee owned bottling operations (FOBOs) within the market units will help in providing a senior resources pool of line and staff managers, impact both COBOs and FOBOs, and enable transference of best practices both ways.
The company undertakes two types of operations they are:1) Company Owned Bottling Operations (COBO) 2) Franchise Owned Bottling Operations (FOBO)
1) Company Owned Bottling Operations (COBO): COBO refers to the operations directly carried by the company. There are Three COBOs in South India, they are in Chennai, Madurai and in Karnataka . These COBOs have to work under the guidelines by the PepsiCo New York.
2) Franchise Owned Bottling Operations (FOBO) : FOBO refers to the operations carried by the franchise .
Contd
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Impact of TV advertisement COBOs/FOBOs organizations cut across disparate territories and helped in building a substantial distribution network. The organization structure in the market units is being reconfigured to reflect geographic continuity and tap new market opportunities. The objective of the exercise is to increase distribution of the company's products, gain greater flexibility to leverage resources and share best practices.
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1. Blue star marketing. 2. Sahara Enterprise. 3. Tippu Taj 4. Renuka 5. N. S. Enterprise 6. S. D. Enterprise
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Impact of TV advertisement
Among the six distributors three are working over 50,000 AOP and three are below 50.000 AOP.
Note: The unit 50,000 is in cases AOP is the Annual Sales Target to be achieved by each Distributor.
The following are the distributors who are classified under and below AOP.
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Impact of TV advertisement
NUMBER OF UNITS POSSESED BY EACH DISTRIBUTOR. 1. Blue star marketing 2. Sahara Enterprise 3. Tippu Taj 4. Renuka 5. N. S. Enterprise 6. S. D. Enterprise 4 UNITS 2 UNITS 4 UNITS 2 UNITS 3 UNITS 2 UNITS
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Impact of TV advertisement
2.
Depending on the frequency of a particular route. The distributors follow two types of frequencies they are,
Impact of TV advertisement
The following are the 8 important steps followed by the customer executives (C.E.s):
1. PREPARATION 2. WISHING CUSTOMERS 3. SHOP INSPECTION 4. CHECKING FOR THE STOCKS WHICH ARE TO BE PLACED 5. INFORMING THE RETAILER ABOUT THE STOCKS WHICH ARE TO BE PLACED. 6. EXECUTION OF THE ORDERS. 7. RE-EXAMINATION. 8. CONVINCING SKILLS.
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Impact of TV advertisement
ADVERTISEMENT
Advertisement plays a very important role in marketing or sales of product. Advertisement must be meaningful and clearly understood they should convey the message in a unique way. It means that there should be creativity, which should make it different from other advertisements. It should be made taking into consideration the country in which they are telecasting because an Indian may not understand an American ad. It is so because perception and attitude differs The cost is too high but it a means of mass communication. It must be seen that showing ads at wrong time is waste of capital/money. The time has to be studied at what time the televisions of mass people will be switched on.
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Impact of TV advertisement
ABOUT PEPSI T. V.
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Impact of TV advertisement
In this ad SRK orders Cable guy that he wants channel when they ask which he says Pepsi TV they say there is nothing like Pepsi TV then suddenly Pepsi truck comes and then Priyanka Chopra and Kareena Kapoor comes out and ask him that does he want Pepsi TV he says yes and tells them where the TV is then it says to be continued After several weeks of suspense, while you kept on wondering on which channel your cable guy will fix your Pepsi TV,he last part of the TV ads revealed that When you drink Pepsi while watching TV, it is called Pepsi TV "It basically means... whenever you are watching television, you must have the cola in your hand. That's how the soft drink is being positioned in the market through this ad." The ad, made at an estimated budget of Rs.3.5 million, was shot by Shah Rukh's buddy Farah Khan and produced by his company Red Chillies Entertainment.
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Impact of TV advertisement
The purpose of this ad is to build on an occasion led program that is, supplementing occasions with Pepsi consumption - at home, family drink, and working the consumer behavior element of "consuming drinks during watching TV" - high-involvement attribute. It might take it forward to occasion-specific advertising, subsequently.
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Impact of TV advertisement
SAMPLING
The sample size used for the survey is 200 retailers. It includes, 1. BAKERIES (A and B class) 2. SUPER MARKETS 3. FEW PROVISION STORES This sample size was identified because they were the means of reaching consumers.
Sampling frame:
It was the route planner provided by the company.
Sampling method:
Judgment sample method was used which is type of Non probability sample. It refers to a sampling method in which chance selection procedures are not used.
Judgment sample refers to the one in which there is an attempt to draw a representative sample of the population using Judgmental selection procedure.
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Impact of TV advertisement
Research Design
The Research design was divided into two parts they are 1. Survey 2. Implementation The six days of the week were divided as three days for survey and three days for implementation. Survey: As per the route planner provided by the company the survey was
conducted through questionnaire and found out that the many of the retailers were unaware of the Pepsi t. v. ad. Promo. Therefore the survey helped the retailers to get the details about the benefits to be given to the consumers as well the benefits to be availed by the distributors. The detail about the benefits is attached on the next page. During the survey we found out that there are three types of outlets selling cold drinks they are, PEPSI MONOPOLY CCX MONOPOLY MIXED
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Impact of TV advertisement
Implementation: After the survey implementation was carried out. In this procedure the orders were taken and seen to it the distributors place them and if there are any queries regarding the benefits they were sorted or cleared. Also it was seen that every outlet we have surveyed have properly display of Pepsi Products.
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Impact of TV advertisement
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GRAPH SHOWING THE NUMBER OF RESPONDENTS AWARE OF THE BENEFITS TO BE GIVEN TIO THE CUSTOMERS AS WELL THE BENEFITS TO BE AVAILED BY THE DISRIBUTORS
Number Of Outlets
CHART 1
Explaination
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Impact of TV advertisement
Chart 1 clearly shows that 80 outlets were aware of the benefits of the Pepsi T.V. ad promo. 120 were unaware of the benefits of the Pepsi T.V. ad promo
The reason behind the unawareness is that, usually the traders will be on business or in their outlets. Therefore during our surveys we gave them the clear picture of Pepsi T.V. ad. Promo. And explained about the benefit.
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Impact of TV advertisement
80
60
40
MIXED
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Impact of TV advertisement
EXPLANATION
Chart 2 1. Clearly shows the consumers for 2 ltr Pepsi 2 ltr bottles. X axis Pepsi 2 ltr bottle consumers Y axis indicate the units in numbers 2. In majority of the outlets I surveyed it was found that the consumers/customers were usually households and party goers. Therefore, relating the Pepsi and TV channel is a good concept.
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Impact of TV advertisement
RESULTS
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Impact of TV advertisement
600
562
500
SALES
400
300 190
200
100
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Impact of TV advertisement
EXPLAINATION
Chart 3 shows the number of cases sold before and during my project. The figures indicate the number of cases sold from March to June and each case consist of nine bottles. When we look at the chart2 we get a clear picture of sales raising in the month of May (585 cases) compared to the sales figure of March (562 cases) and April (501 cases). There was a drastic fall in the month of June (190 cases) as the monsoon already hit Mysore in the first week of June. The sales figure of July was not available as my project completed in the mid of July and the sales results/figures will be available only at the end of the month.
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The two months taken for comparison are April and May April Before the project was done May Project Month June is not taken for comparison because monsoon hit Mysore in first week itself.
MAY 585
% Increase 7.73
Working:When: Total sales 1086 (501 + 585) Incremental sales 84 (585-501) Therefore, for 100 cases Incremental sales will be= 100 x 84 1086 =7.73%
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Impact of TV advertisement
DISCUSSION
During the survey I found the following when discussed with the retailers
1. Consumer involvement 2. Generating curiosity and a buzz (though it has turned out to be an anti-climax) 3. It may actually succeed in product usage because most of the TG( i.e. youngsters) watch a lot of television and definitely consuming Pepsi at the same time will just add to the experience. 4. It chose Priyanka chopra and kareena Kapoor who are unarguably the most happening young actresses and have a great appeal in the youngsters.
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SUGGESTIONS
1. Workshop for retailers: - Workshop should be conducted in such a place of a locality where in it is easy for the retailers to attend and get the necessary information of the new suspense ads in future. It should also be taken into consideration that there is minimum investment of time in this workshop because the retailers will think that it is wastage of time. This will be the motivating factor for the retailers because they will think that the company is showing interest in helping them to increase their sales. This in turn will help the company increasing its sales. Therefore the company should take necessary steps in organizing the workshops.
2. Print Media:
electronic media, because in the electronic media advertisements will be of hardly one minute and may not convey the full details. Pamphlets should be used as well as newspapers
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Impact of TV advertisement 3. 9+1 OFFER: - Offering of 9 + 1 scheme to retailers so that they will be induced to purchase more cases and can push our product to the consumers instead of other Brands. This offer will be helpful to convert mixed outlets to Pepsi monopoly.
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Impact of TV advertisement
WORKSHOP: The cost of workshop will be high therefore to reduce this the company people can actively participate instead of hiring outside people.
PRINT MEDIA: The cost of print media will be less and it is a means of mass communication.
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Impact of TV advertisement
ACHIEVEMENTS IN THE FORM OF LEADS Name of the outlet 1.Mega Bakery and sweets 2. Karnataka Bakery 3. New Sri Krishna Bakery 4. Hassan Iyengars bakery 5.Vinayaka stores 6. Sweet Palace 7. Trupti Bakery and Cool Points 8. Sri Sudarshan Iyengar Bakery 9.Sri Ranga Iyengar Bakery 10. Sri Ragavendra Iyengars Bakery Location N. R. Mohalla Shantinagar New Kantharaja Urs Road Gokulam 3rd Stage Vinayaka Nagar Jayalakshmipuram Vagdevi Nagar New Kantharaja Urs Road T .K. Layout Gokulam Main Road
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CHAPTER - IV
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QUESTIONNAIRE
4) What kind fob customers are walking in for 2 ltr Pepsi Bottles? Household Partygoers 5) Do you know about the benefits that you get on pet bottles? YES No
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BIBLOGRAPHY
The information needed to complete this project was directly from, EXTERNAL GUIDES: Mr. RAVINDRA PAI ADC PepsiCo INDIA Mr. SASANK C.E. PepsiCo INDIA (MYSORE) WEBSITE: www.pepsico.com
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