compative analisies of SKU of pepsico and coco-cola in patna market

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  • 1. CHAPTER-1INTRODUCTION TO STUDY 1
  • 2. 1.1. Introduction“Good marketing is no accident, but a result of careful planning andexecution. Marketing practices are continually being refined and reformed invirtually all industries to increase the chances of success. Marketingexcellence is rare and difficult to achieve. Marketing is both “art” and“science” –there is constant tension between the formulated side ofmarketing and the creative side.”India with a population of more the 105 crore is potentially one of the largestconsumer markets in the world with urbanization and development ofeconomy, tastes and interests of the people changes according to the advancenation.Beverage industry is one of the fast growing industries in India. It can bedivided into two sections i.e. carbonated and non-carbonated. Thecarbonated drinks can be further classified into Cola, Lemon, Orange,Cloudy-Lemon segments etc.Marketing includes all the activities like promotion, distribution, advertisingetc. to fulfill the demands of all segments of consumers. Marketing is alsoconvert social needs into profitable opportunities. So this topic provides allthe essentials to the theoretical knowledge with practical knowledge and toinculcate the efficiency. It is also a requirement for the company to improveits service and product quality to achieve the ultimate goal.Marketing is about winning this new environment. It is about understandingwhat consumer’s wants a supplying its more efficiency and moreconveniently.India where more than 50% of the total population exists below poverty linethe consumer can’t afford such high price for soft drinks. As a result thetrading activities of the soft drinks industry are concentrated in and around 2
  • 3. big cities and town where the purchasing power of population is consideredcomparatively high.Soft drinks industries in India has annual sale of about 5000crores, with percapita consumption of soft drinks at a low of eight bottles per annum is dueto price factor.So, marketing is both philosophy and technology. It is technology because itsuggests ways and means for effective production and distribution of goodsand services in the market to give maximum satisfaction to the consumer.In this regard the marketing management with have to apply to marketingtechnology in the conceptual philosophy of a system. It is the process ofsystem analysis in the marketing management for effective research and canbe defined, “systematic objective and exhaustive study of tasks relevant toany problem in the field of marketing”. 3
  • 4. 1.2. OBJECTIVE OF STUDYOur main objective of the study on this project was to “To compare thestock keeping unit (SKU) of PepsiCo with its competitor Coco-cola”.Following are the some of the main objective of our report:  To test the effectiveness of the distribution network.  Comparative study of PepsiCo product availabilities in the market with its main competitors.  To find out the market share of the different competing Brands in the Beverage industry.  To know the importance of availability & visibility of product and chiller.  To check the capacity of chiller of Pepsi and its competitors.  To check the Distribution of SKUs of PepsiCo and its competitors.  Selling and Monitor distribution of Beverages.  To provide the useful information to the “PepsiCo” regarding its competitors.  Conduct Every Dealer Survey of the assigned Market.  To know other promotional measures that would be effective in increase share.  To know the suggestive steps that would be beneficial to PepsiCo in order to improve its distribution network.  Marketing of PepsiCo Products.  Looking to the problem of retailers regarding PepsiCo products 4
  • 5. 1.3. JOB ASSIGNED  To visit every dealers and retailers store where there is dealing of soft drinks.  To know how many carats of Pepsi and Coke are been used by each dealers and retailers.  To know SKUs of each dealers and retailers.  To take order of product from retailer.  To check the capacity of chiller of Pepsi and its competitors.  To know type and size of VISI Coolers used by retailers and dealers.  To know their grievances, if any.KEY RESPONSIBILITIES  Key responsibility is to take care of my account under my assigned area.  Persuade retailer to sell PepsiCo product.  Convince retailer to transform the Visi- cooler as per his requirement.  To have proper check on their SKU.  To take orders of soft drinks on behalf of PepsiCo.  Delivering the order on time.  Proper distribution of product. 5
  • 6. 1.4. Importance of studyCold drinks were started with the idea of quenching the thirst of thepersons traveling. It was also felt that reliable good water was notavailable everywhere. So people would really on their packed bottle andwith this idea its makers made these drinks available mostly, at thoseplaces where water was not available i.e. on highways and long distancetrains.But slowly and slowly with its beautiful taste these become very popularand now they are available not only in the market and street corners, butalso people have started keeping it in their house.The credit of popularizing the soft drink goes to Coca Cola. This was thedrink which is liked by all ladies, gents and children. Now day’s softdrinks are quenching thirst looks more often; they are taken due to habits.Gold Sport is considered as the first branded soft drinks, all empoweringCoca Cola faced competitions and its euphoric image built up in thewestern countries helped it get ready clientele and clamor. Parle ExportPvt. Ltd. Is regarded as the first Indian Company introducing Limca aleman drink complementary to it this has also introduced Cola Pep onewhich was withdrawn in the face of tough competition from Coca Cola.When Coca Cola bid a Farwell in 1977, Indian market was open forvarious new forward publishing different brands in the markets. This isIndian market where there was no competition and high voltageadvertising was on each one was trying their best to become number onecompany with ‘A’ class product in the field of Soft Drink business. Nowafter a long gap government of India had given permission to Coca Cola,which joined with Parle to do business in India. They are trying their bestto regain prestige which it had before. The much rival of Parle is Pepsi an 6
  • 7. American concern. It started business on the Indian soil just a few yearsago.Now Pepsi is going all out to prove that they are the best.1.5. Scope  The geographical scope of my study is confined to Patna.  The bull’s eye is to have a cognizance of the level of satisfaction regarding the distribution network of PepsiCo product to the depot and retailer.Limitations  Retailers are reluctant to provide the information regarding the sales volume and stock.  Some retailers in were not co-operative in their approach.  Retailers are not fully aware of the new schemes offered by the Company.  Lack of time duration for the proper administration of research as time duration of 60 days was not sufficient for the research.  Lack of financial resources as the researcher has to find his study by his own financial sources.  Insufficient research experience.  Indifferent behavior of the retailers exhibited at times. 7
  • 8. CHAPTER-2OVERVIEW OF INDUSTRY 8
  • 9. 2.1. History of PepsiCoPepsiCo is a USA based company having its headquarters at New Yorkwith the net worth of $30-40 million. The average sales of the companyare approx. 90 million bottles per month. Pepsi made it first internationalmove in Russia in 1959. During the Khrushchev era, within 32 yearsPepsi emerged as the biggest competitor for Coca Cola. Pepsi is availablein 155 countries.In any soft drink, on the globe Pepsi food is one of the largest soft drinkcompanies in the world with its headquarters in New York. It wasinvented by Pharmacist Culab D. Baradham in 1898 to cure the disease“Dyspepsia”. It is from this word that its name was related to Pepsi. Soonit entered the American market as soft drink, which at that time mostlydominated by Coca Cola, but soon Pepsi able to dominate the Colamarket, and there after it never looked back. Pepsi and Coca Cola areengaged in ferocious cola war that has taken the whole world by storm.Pepsi entered the Indian soft drink in Kanpur in 1988 and began itsproduction in May 1990 and soon it was giving the local contenders runfor their money in soft drink market. It comes out with dazzlingmarketing innovation that rocked the cola market, like selling the productthrough function Pepsi outlets. Its advertisement agency was “HindustanThomson Association” (HTA). Its advertisement budget for 1995-1996was valued at Rs. 24 crores which is likely to be increased manifold incoming years.Pepsi food is one of the largest and best foreign investments in India. Tilltoday it has invested Rs. 500 crores in India to develop the local market.Pepsi has distributed exclusive franchises in India to bottle its totalproduct. There are 28 bottling plant of Pepsi in India. Some are directlycontrolled by Pepsi and rest is under various franchisees. 9
  • 10. Pepsi stands 51st position among the fortune 500 companies of the world.Its total capital is approx. $3000 crores and total sales annually is worth$37 crores. Its total profit in the year 1996-97 was worth Rs. 458 croresapprox. The total number of employees engaged in the business is 45.25lakhs globally.2.2. LUMBINI BEVERAGE PVT. LTD.Lumbini Beverages Pvt. Ltd is franchisee of PepsiCo. India. LumbiniBeverages Pvt. Ltd, a rupees 25crores unit was promoted by the family ofKHILANI in the year 1996 with the proper infrastructure approved byPepsiCo Headquarter and the unit went into production, subsequent andmarketing operation from 1997. Mr. Ravi Khilani is MD of this companythe plant has 57 production staff 30 executives and 32 team memberswithin marketing and seller functions during the pick session i.e.Between April- July, the no. of production staff at times is increased totake care of increased production functions.The unit has capacity of bottling 400-600 bottles per minute or3000crates of 24 bottles on a daily basis, i.e. when production schedule is onthrough out the day with three shift production system. The plant followsinternational quality audit standard for the purpose of maintaining qualitycontrols in the quality of the product because the quality control function,by far is the most important criteria for purpose of competing in terms ofquality in the contest of the market competition.This bottling unit at Hajipur has created a source of employment for alarge no. of population residing in the Bihar and has also come out withquality/treated water resources, which is now being thought of divertingin to nearby agriculture sector as an ongoing source to facilitate ofmanagement. This unit in the year to come should one of the most 10
  • 11. important industrial zones in this part of the country and this realitymanufacturing and marketing unit should be a set of attraction as far ascommercial activity are concerned.Profile of LBPLCompany land area : 12 acresLocation and authority : EPIP, Industrial Area, HajipurName of Managing Director : Mr. Charan KhilaniName of the Directors : Mr. Ravi Khilani & Mr.Manoj KhilaniName of Executive Director : Mr.Ashok SalariaName of CEO : Mr. G.P SinghName of FM : Mr. V.MaheshName of HR manager : Mr. Bhupendra singhIndustrial license no. : Regn. No. - H 12475(c) Factory license no. – 66750/VLI Date: 16.08.1997 F.P.O. License no. -10607/97Capacity : 1500 bottles per minuteNature of product : Soft drinks, Pepsi, Mirinda, Soda, Slice, AquafinaNo. of employees : 200 +150 (max) seasonal laborsControl board : No. 1877. Date – 07.04.1997 11
  • 12. 2.3. MISSION AND VISION OF PEPSICOPepsiCo’s mission is “to be the world premier consumer ProductsCompany focused on convenient food and beverages. We seek to producehealthy financial rewards to investors as we provide opportunities forgrowth and enrichment to our employees, our business partners and thecommunities in which we operate. And in everything’s wed, we strive forhonesty, fairness ail,At PepsiCo, we believe that as a corporate citizen, we have aresponsibility to contribute to the quality of life in our communities. Thisphilosophy is expressed in our sustainability vision which states: -“PepsiCo’s responsibility is to continually improve all aspects of theworld in us operate –environmental, social, and economical—creating abetter tomorrow than today.”Our vision is put into action through programs and focus onenvironmental stewardship, activities to benefit society, and acommitment to build shareholder value by making PepsiCo a trulysustainable Company. 12
  • 13. 2.4. OVERVIEW OF THE INDUSTRY2.4.1. History of Pepsi-Cola industryThe Pepsi-Cola story itself begins with a drugstore inNew Bern, North Carolina, and a pharmacist namedCaleb Bradham. Bradhams aim was to create afountain drink that was both delicious and healthful inaiding digestion and boosting energy. It would be freeof the impurities found in many bottled health tonics, and it would containnone of the stronger narcotics often added to popular fountain drinks.As most pharmacies in 1896, Bradhams drugstore housed soda fountainwhere the small-town clientele would meet to socialize. Bradhamsestablishment even featured a kind of primitive jukebox, which for a nickelwould entertain the listener with the latest musical selections rendered byviolin or piano or both It was at such convivial gatherings that Bradhamwould offer his latest concoction. Over time, one of his recipes becameknown as Brads Drink. A member of the press declared,"It has sparkle and just enough acidity to make itpleasant." Soon its popularity would exceed theboundaries of New Bern. The cellar of Bradhamsdrugstore served as the original site of Pepsi-Cola syrupmanufacturing. Electing to start his new business on asmall, manageable scale, Bradham based his operation on familiar territory.Ingredients were hauled downstairs to cramped quarters where they weremixed together and then cooked in a large kettle. The syrup wassubsequently poured into one-gallon jugs and five-gallon kegs to be shippedto customers. By 1902, the demand from surrounding drugstores increasedso dramatically it dawned on Bradham that Pepsi-Cola was somethingspecial. On December 24, 1902, he filed incorporation papers with the state 13
  • 14. of North Carolina; in these, he indicated his plans for corporate branches inVirginia, Maryland, Pennsylvania, and New York. PepsiCo, Inc. iscurrently one of the most successful consumer products company in theworld with annual revenues exceeding $30 billion and has more than480,000 employees. PepsiCo, Inc. began as a successor to a companyincorporated 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 increasedPepsiCos market potential and set the foundation for the companystremendous growth. PepsiCo’s products are recognized and are mostrespected all around the globe. Currently, PepsiCo divisions operate in threemajor US and international businesses: beverages, snack foods, andrestaurants. In each of these businesses, PepsiCo has attained a leadershipposition as being the world leader in soft drink bottling g, the world largestsnack chip producer, and the world largest franchised and company operatedrestaurant system. The corporations increasing success has been based onhigh standards of performance, marketing strategies, competitiveness,determination, commitment, and the personal and professional integrity oftheir people, products and business practices. PepsiCos overall mission is toincrease the value of our shareholders investments through sales growth,investments and financial activities. PepsiCo believes their success dependsupon the quality and value of their products by providing a safe, wholesome, economically efficient and a healthy environment for their customers;and by providing a fair return to their investors while maintaining thehighest standards of integrity. 14
  • 15. 2.4.2. PepsiCo headquarterPepsiCo world headquarters is located in purchase, New York,approximately 45 minutes from New York City. Edward Durrell stone, oneof America’s foremost architects, designed the seven-building headquarterscomplex. The building occupies 10 acres of a 144-acre complex thatincludes the Donald m. Kendall sculpture gardens, a world- acclaimedsculpture collection in a garden setting. Masters such as august Rodin,henrys Laurens, Henry Moore, Alexander Calder, Alberta Giacometti,Renaldo pomander and Claes Oldenburg focus the collection of works onmajor twentieth century art, and features works. The gardens originally weredesigned by the world famous garden planner, Russell page, and have beenextended by François goffinet1. The grounds are open to the public, and avisitors booth is in operation during the spring and summer.1990 saw thecoming of the multinational company Pepsi entering the Indian market. 11years after the exit of coca cola. It had name, fame and edge of being one ofthe best in the game and it also offered stiff competition to parley and coke.Pepsi Cola Company founded by ClebBadham in 1890 at north Crolina inUSA now it is ked 86th (1998) in the world with the asset of around $25000million, having its head quarter at Atlanta. Its CEO is roger enrico and Pepsico. India holding chairman is Mr. Rajiv Baksi. Pepsi co. India’s is atgurgaon. Presently is operating in 196 countries. In India it has 34 bottlingplant of them 8 are cobo and 26 are fobo of which one in Trity Drinks PvtLtd. 15
  • 16. 2.4.3. SOFT DRINK INDUSTRIES IN INDIAA soft drink is a non-alcoholic beverage. It is artificially flavored andcontains no fruit or pulp. India with population of more than 100 crores ispotentially one of the largest consumer markets in the world after China.The consumer market can be defined as the market for products and servicesthat are purchased by individuals as households goods for their personalconsumption. Soft drink is a typical consumer product purchased byindividuals to quench thirst and secondly for refreshment. Searching for thepoint of Indian soft drinks we first document on Gold Spot, this was the firstbrand soft drink in India. It was introduced by PARLE during later part of40’s.Cola giant, Coca-Cola was the first foreign soft drink to be introduced inIndia in 1965, Coca-Cola make a very good beginning and dominated thewhole scheme right from the word go. It (Coca-Cola) faced no competitionat that time. COCA COLA entered India in the year 1993 in collaborationwith PARLE INDIA LTD.The marketing people did not even receive to publicize Coca-Cola for it soldfirst like probability not-cakes. This extraordinary success of soft drinks canbe attributed to the following factors:-  Absence of contemporary competitive brand.  Euphoric image built up in the Western countries proceeded the entry into Indian Market; and  Indians are very found by nature of foreign goods, services etc. due to prolonged foreign rules.Parle Exports (P) Ltd, later in 1970 introduced Limca, Lemony Soft drinks.Before Limca introduce, they had tentatively introduced Cola, Pepino, whichthey had to soon withdraw in the face of battering confrontation with Coca-Cola. 16
  • 17. Three of four groups of Indians companies who had the required productioncapacity started their own brands of Cola, Lemon, Orange, but failed toachieve their goal on a national basis. India always has love and haterelationship with MNC’s which gave a significant opportunities to soft drinkindustries in India when Coca-Cola decided to windup its operation in 1977rather than bowing to the Indian government insisting on:-  Dilution of equity, as the government felt that lots of foreign currency was being wasted.  Manufacturing of the top-secret concentration in India.  Disclose of the chemical composition of the essence.This left a large vacuum in the popular soft drink market, and a vista wasopened to any company with the requisite, technical, marketing andorganizational skills.The exit of Coca-Cola from India in 1977 accelerated the growth of severalIndian Soft Drink. New soft drink in the form of Tetra pack entered themarket among Frooti, Jump-In and Treetop were the prominent once. Till1977 their equipped bottling plants and the distribution network a longing tobe of no use. It took them one year to develop new formula to survive andgradually came up with Campa, Lemon, Orange and Cola that order.However Parle, the pioneer in the soft drinks, blazed its way to nationalprominence with their product “Thumps Up” bearing the slogan “HappyDays Are Here Again”. This particular slogan helped to win over theloyalists or addicts to Coca-Cola, who was in the state of “Cola Shock” orCola Depression. Soon the Indian Soft drink industry started at aphenomenal rate, and all Parle Products Gold Spot, Limca and Thumps Upbecame the brand leader in their own segment.In spite of all these, the drink market still has large gap, as claim by softdrink manufacturers. To fill these gaps there are many soft drinks 17
  • 18. concentrate and squashes flooded the market. The Indian soft marketsbasically offered three flavours i.e. Orange, Lemon and Cola.PEPSI – The Indian ExperiencePreviously there were two ads. Tags “Yehi Hai Right Choice Baby”,“Nothing Official about It” & “Yeh Dil mange More”, which immediatelyring a Bell – it’s to be a Pepsi. But today this ad. Tag has been changed andnow it’s "Yeh hai Youngistaan MeriJaan!"Pepsi is a short span of its operations in India has found a place in hearts andminds of the Indian Consumers. The success has primarily been due to theinnovative and passionate Indian team which has been built over the years.Pepsi is a trendsetter managed and run by Indians, where importantdecisions are taken locally.Pepsi started its operations in India in 1989 and since Pepsi Co. has set up afully integrated operation India viz. manufacturing, research anddevelopment, marketing, distribution and franchising coveringfruit/vegetable processing, export, snack foods and beverages. In 1993 PepsiCo. set up a hold company to further accelerate growth the future throughnew initiatives and joint ventures. Pepsi Co. fully committed to India and thenational objective of development of technology and accelerating exportsand employment. It has brought in over $500 million in foreign exchange aswell as technology, which is used for its global network by way of royalty,know-how of dividends.Pepsi Co. has a turnover $25 billion, half of which comes from beveragesand the other half from the snacks foods divisions. The beverages arm of thePepsi Co. is Pepsi Cola Company and the snacks foods company is calledFrito – Lay Inc. The year 1998 is the centennial year of Pepsi. 18
  • 19. 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 aworld – 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 ownedand 24 are owned by Indian franchisees, Pepsi Co. has invested heavily onup gradation of these bottling plants and has put 5 green fields projects inbackward 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 theCompany’s own Bottling Operations (COBO), Pepsi has 24 FranchiseeOwned Bottling Units in India. These franchisee manufacturers are alsoplanning to install substantial additional capacities. Pepsi Co.’s franchiseesare amongst the best in the Pepsi world and the 1998 two Indian Franchiseeswere chosen for being the Bottler of the Year amongst all InternationalBottlers.Juices:Pepsi Co. plans to launch juices in a bog way in India, there by helping thefarmers in fruit procurement. Pepsi Co. Agriculture Scientists hasundertaken research on Mango, Guava and Oranges and these fruits wouldbe the priority area for the juice launch in India. Presently Pepsi has onejuice brands Slice, which are presently mango juice brands. Pepsi Co. alsohas bottling lines in most of the plants.. 19
  • 20. Marketing mix followed by Pepsi:The tools of marketing mix are combined in such a manner that they givemaximum mileage to the product from the factory to the consumer’s hand.  Product  Price  Place  Promotion  Position  Probing  Perpetual MappingThe soft drink being a FMCG has a wider and scattered market. Thus toenable concentrated effort of marketing activities in different scatteredmarket, for effectively setting the entire market is broken down into thefollowing segments.  Route market  Home market  At work marketRoute market:Outlet in this market caters to those people who are engaged in shopping,eating outgoing to and from work, in amusement center etc.Home market:Outlets in this market cater to people buying predominantly for homeconsumption, either by case or loose bottles.At work markets:Outlets in this market cater to people working in offices, factories etc. anattempt is always made to make soft drinks readily and convenientlyavailable all day long while people are actively working. 20
  • 21. 2.4.4. Market growth rate and demand trendThe Soft Drink industry was estimated at 7.5bn bottles in FY10. Volumeshave been growing at 14-15% pa in the last two years. Per capitaconsumption in India is among the lowest in the World at 6 bottles as against17 in Pakistan and 21 in China and Sri Lanka. Growth has slowed down inthe current year to 8%, despite the low level of per capita consumption andthe industry is expected to register sales of 8.5bn bottles in FY12.The demand for soft drinks is highly price sensitive. A study conducted byNCAER has shown that a 10% increase in soft drink prices, leads to ademand reduction of over 17%. Given the cutthroat competition, pricechanges by any one player induce similar price adjustment by other playerstoo. Sales growth of the two large players have been driven by a high levelof promotions and price wars and increasing investments being made inexpansion of the distribution infrastructure. Both the leading players are yetto make profits. The industry has received the largest amount of ForeignDirect Investment in the country of almost Rs5.7bn (US$1.2bn). Theindustry employs more than 125,000 people directly and indirectly.Additional investment of Rs20bn in expected over the next three years, witha potential to create additional 95,000 jobs directly over the periods ofmarketing. 21
  • 22. Logo change over years… 22
  • 23. CHAPTER-3PRODUCTION PROCESS 23
  • 24. 3.1. Production processThe process of manufacture of Aerated water (soft drink) like Pepsi brandproduct is divided into mainly five parts such as 1. Water Treatment 2. Syrup Making 3. Bottle Washing 4. Filling 5. Testing of Product1. Water Treatment: - Water treatment is very essential in soft drinksplants as the nature and quality of water varies from place to place. To setuniform and standard water the process of treatment is carried on. Thewater taken out from bore well by the help of motor pump and pipe lineare collected in storage tank where is pre chlorinated by chlorinators andby the help of pipe lines comes to treatment tank called coagulation tankwhere to this water solutions of different strength of bleaching powder,ferrous sulphate, hydrated lime are added through dosing pump to reducealkalinity, hardness, kill the bacteria .The chemical are mixed bymechanical stripper and then the suspend mattress settle down as sludgeand clear water passes to retention tank. From this tank, the water passesthrough sand filter containing fine sand and pebbles and carbon filtercontaining granular carbon and finely through water polisher, micronfilter, and UV lamp to ensure clear and sanitary water for use. Furtherwater used in bottle washer and boiler need softening .for this purpose,the water from storage tank ,after passing through two filter beds containfine sand and granular carbon respectively comes to pass through badresin were it is softened .this soft water is essential to use in and bottlewasher to reduce scale formation inside the machines. 24
  • 25. 2. Syrup Making:- For syrup making of particular brand, calculatequantity of sugar water activated carbon and high flow super cell knownas filter aid taken in to sugar to enter steam and also filled by a motorwith agitator. Sugar syrup called raw-syrup is prepared by dissolving thesugar with continuous stirring and heating by steam supplied by firedboiler. This hot syrup by the help of pump is filtered through a filter pressattached with a series of quality filter paper to separate out carbonparticles. Clear hot syrup by the help of SS pipe lines passes throughwater P.H.E. for cooling and the then another P.H.E. circulated by glycolfor further cooling. The chilled syrup comes to a mixing tank to usecalculating of sugar quantity by Brix Hydrometer, concentrate added andmix thoroughly by a mechanical Stirrer fitted to the tank. This syrup isnow finished syrup ready for use. The concentrate mainly, the liquid partare kept in a cold store, the temperature of finished syrup is alsomaintained by air-conditioner. All the containers used for syrup makingare cleaned and sanitized by Soda-Bi-Crab, strong chlorine solution andhot caustic soda solution.3. Bottle Washing: Bottle washing is an important part in soft drinkplant. The empty durable and returnable bottle used are returned frommarket in plastic carats are fed to a bottle washing machine (washer). Themachine has double end system with circular chain to carry the bottles.Caustic soda Tri-Sodium Phosphate, Sodium Glausonate is adding to thecaustic by the supplied. The Caustic tank filled in with water heated bysteam supplied by the boiler. The empty bottles enter to the hot Caustictank in one end and after being cleaned by hot Caustic solution andfinally washed with water through spray jets fitted are discharged in otherend. The washed bottle proper inspections are SU 319 and SU 853 used 25
  • 26. for conveyor cleaned and smooth running of chain carrying bottles. SU260 and SU 773 is used for bottle cleaning, shining, and mold removing.4. Filling: - Finished syrup and treated water lime are commixed to adosing pump which mixes syrup and water with ratio of 1:5 and the syrupmixed with water enters to carbonator tank to mix CO 2 gas, which ispreserved in cylinder for use. The cylinders are connected through CO2manifold to tank to use requisite quantity of gas. To control CO 2 pressureand temperature of liquid; we used recording control (Taylor). The syruppassed through a P.H.E. which is called itself by circulation of chilledglycol supplied chilling F-22 gas used. The syrup being chilled easilymixed with CO2 gas and enters to filter for bottling. The filter isconnected with filling valves and lift cylinders. The lift cylinder functionsby pressure of air supplied by an air composer. The syrup is known asbeverage in this stage is filled in the cleaned bottles which are durable innature and returnable by buyer filling machine (filter) by a counterpressure of carbon dioxide gas. After beverage filled in bottle it goes tothe crowner where with the help of crown crocks the bottles are sealed(crowned) to project the carbonation, flavor, outside contamination andspoilage. The finished products are coded by a coding machine andinspected properly by inspection light while passing through the conveyorwhere finished product are accumulated enters to carat washer machineand it is washed moves through the conveyor where finished product areaccumulated.Then the products are kept in plastic carats which are durable in natureand returnable by buyer, put on palates and sent to shipping for shipment.The entire container in contact with syrup are properly cleaned andsanitized by Soda-Bi-Carbonate, hot water, caustic soda solution andstrong chlorine does. 26
  • 27. 5. Testing of product:-Finally the finished syrup during bottle istested in laboratory to meet the parameters and also to get a standard andquality products to maintain the standard and information and uniformityin products the sugar contents and carbonation in the bottle are checked inregular intervals by Brix-hydrometers, Refrectometer and pressure gauge.The dead weight tested is used to calculate pressure gauge to know thecorrect pressure. TA &Ph are tested by digital Ph meter. Electronic digitalbalanced is used to weight chemical to conduct test in lab. The purity ofCO2 is checked by CO2 purity tester. The chlorine comparators. Themicrobiology test of the product and water used in syrup making andproduction are also done to ensure that the product is free from anybacteriological contamination. To conduct the micro test hot sterilizerincubator, autoclave, pads filter membranes, media are produced andused.3.2. The steps involved in the production process are-  First the fork lift supplies the empty bottles which are collected from the distributions.  Then depalletising is done i.e. separating cases filled or empty bottles from the wooden planks.  Uncasing is done by separating empty bottles from the cases/carats.  Empty bottles are then fed into the bottle washer where stream with some chemical is used for washing.  Washed bottles are then send to the filler where premix (Composed of syrup, treated water bulk CO2) is filled in it.  The whole concentrated is chilled with glycol before filling and then crowning is done. 27
  • 28.  The filled bottles are passed through inkjet coder for printing price and date.  Then again the filled bottles are send for final light inspection and from there they are collected on a table.  Lastly the filled bottles are arranged in the crates (casing) and then palletizing is done for storing it in the warehouse. PREPARATION OF SYRUP Treated water + Sugar + Flavor = soft-drink3.3. Raw material usedA soft drink bottling plant the following things as a raw materials:-  Sugar  Flavor  Water  Carbon di oxide  Crown cork  Glass bottle  Plastic crate.SugarHigh purity crystal sugar is required to produce the sugar syrup for softdrink. The main supplier of sugar for Lumbini beverages Pvt. Ltd. is M/sKCP Ltd. chennai. The usual requirement of sugar is around 800 gm parcarat for all flavors.FlavorPepsi food Ltd. is supplying all essence of flavor for Lumbini BeveragesPvt. Ltd. from their plant Chennai, Bhavnagar (Punjab). 28
  • 29. WaterThe required water of Lumbini Beverages Pvt. Ltd. is being met from thehigh yielding deep boring well with pumps. Adding softening plant &DM Plant so as to meet the required quality of water then treats the rawwater taken out from these well. Water quality is being strictly adheredthrough regular sampling & analysis.Carbon dioxideCarbon di oxide gas of required purity is being carried on from HindustanGas India Ltd. and also from IOC Patna and Barauni, as per requirementof flavor. The usual consumption of carbon di oxide is 1 kg per 10 caratsin case of Pepsi, 1 kg per 5 carats of Soda water and the rest flavor 1 kgper 114 carats.Crown CorkLumbini Beverages Pvt. Ltd. takes crown cork from Manksic Crown Ltd.,Bhopal and Ghaziabad respectively.Glass BottleLumbini Beverages Pvt. Ltd. takes flint and green glass bottle fromHindustan National Glass Ltd. Tapovan (Hrishikesh).Plastic caratsLumbini Beverages Pvt. Ltd. takes plastic crates from Neelkamal PlasticLtd., Nasik and Supreme Industries Ltd., Nasik 29
  • 30. 3.4. Product manufacturedThe product manufactured by “Lumbini Beverages Pvt. Ltd. are very limitedranges as it is not independent to diversity its products. It is a unit of Pepsifood Pvt. Ltd. which supplies concentrates for drinks. They are:- Products Quantity Colour Flavour Pepsi 300 ml, 200ml Brunt sugar Cola Mirinda 300 ml, 200ml Sun-set Orange Mirinda 300 ml, 200ml Tetrazine Lime Mirinda 300 ml, 200ml Tetrazine Mango 7 Up 300 ml, 200ml Colorless Lemon Mountain Dew 300 ml, 200ml Colorless Lemon Slice 300 ml Sunset Mango Lehar soda 300 ml Tetrazine Lemon Pet 1.5 lt. Brunt sugar Cola Pet 2 lt. Brunt sugar Cola Can 330 ml Brunt sugar Cola Aquafina 1 lt. Colorless White(Mineral Water) 30
  • 31. CHAPTER-4 ORGANIZATIONALSTRUCTURE OF L.B.P.L. 31
  • 32. Organizational structure of L.B.P.L.An ideal organizational structure facilities management and the operation ofthe enterprise and it help the organization in achieving its goal. In a simpleterm in various parts or component are interrelated or interconnected andthis way it is the established pattern or relationship among various functionof the organization in the established manner.The managing director holds the top position. At present, the managingdirector of Lumbini Beverages Pvt. Ltd. is Mr. Charan Khilani. But theoverall policies regarding management decisions and all executives functionor performance look after by the day to day decision and generaladministration as well as management. The MD has given the power ofattorney and authority to director Mr. Ravi Khilani. Mr. Ravi Khilani who iswell advised by the MD.The director Mr. Ravi Khilani looks after all functional departments thatsales production, account, personnel and purchase. Though the manager allthe functional departments has specially designated as head of personneldepartment.Every department has to report directly to the managing director and isresponsible to his only for working in spite of this all departments is underthe control of the director Mr. Ravi Khilani. Because he is the ChiefExecutive of the company cited earlier. The overall organizational structurecan be shown as: 32
  • 33. BOARD OF DIRECTOR MANAGING DIRECTOR EXECUTIVR DIRECTORFINANCE PLANT P.A.M. H.R.MANAGER MANAGERMANAGER SHIPPING A/C SHIFT ENGINEER COORDINATOR H.R.ASSISTANTEXECUTIVE WORKER /A/C CLERK OPERATOR H.R.ASSISTANT CLERKASSIS. HOST.D.M. M.D.MA.D.C. General ManagerC.E. 33
  • 34. The marketing manager is in charge of all marketing activities i.e. salespromotion, publicity and advertisement, marketing study and shipping. Butthe main function of the marketing is to exercise the control over the channelof distribution.The marketing manager is assisted by sales executives, city sales executivesand rural sales executives and sales executive of shipping department asfollows:- DIRECTOR MANAGING DIRECTOR HEAD OF SALES T.D.M CITY SALES SALES SALES A.S.M EXECUTIVES EXECUTIVES SUPERVISOR Management Trainee 34
  • 35. CHAPTER-5MARKETING MIX OF L.B.P.L. 35
  • 36. Marketing mix of L.B.P.L.1. Product: -Product means the good and service combination of thecompany offered to the target market. Company changes the sizes, variety,flavor brand name of the product after one or two year.2. Price: -Price is the amount of money which customers have to pay toobtain the product calculates suggested retail prices that its dealers mightcharge for sources. But dealers rarely charge the full sticker price.3. Place:-They are mostly available in all place but easily available in theUrban Market but not frequently found in Rural Market.4. Promotion: -Promotion means activities that communicate the merit ofthe product and persuade target customers to buy it. The measurement factorto promote the Pepsi product is to increase good transportation in ruralmarket. If the Pepsi is available to capture the rural market then it is certainthat it will occupy first position of soft drinks industry. 36
  • 37. 5.1. Products manufacture by L.B.P.L.Brand Pep 7up Mirin Mountai Laha Slic Nimb Aqu Tro si da n dew r e uj a pi soda fina cana200ml     250ml     300ml     350ml  500ml  600ml    1lit.     1.2lit. 2lit.    Tetrapack  200mlTetrapack 1lit. Water Carbonated product Juice based Juice drink 37
  • 38. Comparative Products SL Major CSD Brands No. Flavor PCI CCI Coca-Cola, 1. Cola Pepsi Thums Up Clear 7Up, Mountain 2. Sprite Lime Dew Cloudy 3. Mirinda-Lime Limca Lime 4. Orange Mirinda FantaIn above table, I have shown product target in the market. Bothcompanies try to substitute each-others product in the market. When acompany doesn’t fulfill the demand of market then other companiessubstitute that product with their own product. In the market, offen it seenthat consumer demands a product according to his desire, but due to lackof supply he switch over to substitute product. So, companies alwayswant to come out with substitute product for enlarging their market share.Here, Thums Up and Coca-Cola is substitute for Pepsi, Sprit issubstitute for 7UP and Mountain Dew, Fanta is substitute for Mirinda& Limca is substitute for Mirinda Lime. 38
  • 39. 5.2. Price list of L.B.P.L PRICE TO PACK MRP RETAILCARBONATED SOFT DRINKS (CSD) 200 ML 10.00 212.00 200 ML 8.00 168.00 300 ML 12.00 258.00 300 ML SODA 6.00 130.00 600 ML 25.00 560.00 600 ML 27.00 606.00 600 ML 29.00 654.00 SODA 500 ML / 600 ML 12.00 264.00 1 LIT 35.00 376.00 1 LIT 38.00 420.00 2 LIT 53.00 441.00 2 LIT 59.00 491.00 2 LIT 65.00 543.00 CAN 250 ML 15.00 330.00 CAN 250 ML 18.00 402.00 CAN 330 ML 50.00 900.00JUICE BASED DRINKS (JBD) SLICE 200 ML 10.00 216.00 SLICE 250 ML 12.00 258.00 SLICE 500 ML 25.00 564.00 SLICE 500 ML 28.00 630.00 SLICE 1200 ML 55.00 612.00 SLICE TETRA 200 ML 12.00 328.00 SLICE 350 ML 22.00 498.00 NIMBOOZ 350 ML 18.00 402.00 WATER AQUAFINA 1 LIT 16 152.00 39
  • 40. 5.3. Distribution channel of L.B.P.L.To make its products available at the right places at the right time in the market,the sales department of the company pays major attention on controlling thechannels of distribution.Single type of markets channel is maintained by the company right from itspioneering stage. The nature of the channel is as follows:- CompanyDistributor Deopt Rural Distribution Center Interior Distribution Center Retailer ConsumersAt first the soft drinks supplied to the distributors directly. Retailers or owners ofany outlet cannot take the delivery from company. They have to take the productsfrom their respective or nearest distributor.There are about 50 distributors and innumerable number of retail outlets operatingwith the company in its entire market areas which contains total Bihar. In all theimportant places of entire territory this company has its distributors. 40
  • 41. These distributors selected on the basis of assurance given by them regarding theminimum sales which they have to maintain annually. The selection is also doneon the basis of the financial position and reputation of distributor in the market. Asfor example in appointing a distributor first engaged in soft drink business secondpriority is given to those people who are in cigarette selling business. Dependingupon the market, each distributor in the initial stage has to deposit some securitymoney.The retailers are selected by the distributor fixed criteria for the selection orappointment or retailers from the side of the distributor. Any one like Panwala,Cigarettewala or any other shopkeeper can have the stall for the sale of soft drinksand they are called retailers or outlet owners. They have to give assurance to theconcerning distributor for better sale and at the time of taking delivery they have todeposit the security i.e. the charges if the empty bottles with specified retailerspurchasing price. The charges if the empty bottles with specified retailerspurchasing price. The distributor at first has to seek the permission of salesdepartment for the number of cases of soft drinks required by them. After gettingthe proper authority from sales department paying the requisite amount either cashor demand draft.Distributors:-At first, soft drink is supplied to distributors. Retailers cannot take the deliverydirectly from the company. They have to take it from their respective or nearestdistributors. The distributors selected on the basis of assurance given by themregarding minimum sales, which they have to maintain annually. The selection isalso done on the financial position and reputation of distribution in the market. Asfor example, first priority is given to those people who are in cigarette business.Depending upon market, each distributor in its initial stage, deposit some securitymoney. This amount varies between five thousands to the thousand. The 41
  • 42. distributors, at first have to seek the permission of the sales department for thenumber of cases of soft required by them. After getting the proper authority fromthe sales department, they take the delivery from the shipping department payingthe requisite either in cash or as demand draft.The distributors can be dropped if they fail to achieve the required target to sales.They can be also dropped when they don’t follow the instructions given by thecompany or when they charge high price or when they are engaged in blackmarketing, loading etc. But the company has not dropped any of its distributors tillnow.The supply of soft drinks to the distributors depends upon the ups and downs in thesales. But, in the initial stages, the distributors have to sell up to a minimum targetset by the company or as decided by an agreement between the company and thedistributors. In the last stages soft drink is supplied as and when demanded by thedistributors.Retailers:-The distributors select the retailers. There is no relation between the company andits retailers. On the other hand there are no definite and fixed criteria for theselection for appointment of retailers from the side of distributors. Any one like“Panwala”, “Cigarette shop” or any other shopkeeper can have the stall for thesale of soft drinks and they are called or dealers. They have to give assurance to theconcerning distributors for better sales and at the time of taking delivery they haveto deposit the security that is the change for the empty bottles with specifiedpurchasing price.There is compulsion on the part of distributors to provide the transportationfacilities to their retailers IRRESPECTIVE OF SIZE OF MARKET. Thedistributors and retailers are independent to sell as they want but are controlled tosome extent by the company also, as they have to give some assurance regarding 42
  • 43. minimum sale. It happens so because they are given some incentives also. They arefully independent to gear up the market, as they want.The Retailers are categorized into three segments:  Grocers  Eatery  Convenience5.4. PromotionFor increasing the market share and beating the competitors company providesdifferent schemes on different time. The schemes are of two types one forConsumers and other for retailers.Free Flavors sample to Retailers:-Company offers few bottle flavors free to retailers on purchase of one carat offlavor on some specific days. The free flavors scheme varies from one bottle tomany bottles.Display Rack Scheme:-This scheme is only for retailers. In this scheme company provides a Pepsi rack toretailer. The rack is filled with different bottles of Pepsi. The retailers areinstructed that if they will maintain their racks in the same condition as it waswhen it was purchased. After completion of one-month different gift packs aredistributed to the retailers. 43
  • 44. CHAPTER-6 RESEARCHMETHODOLOGY 44
  • 45. Research methodologyAchieving accuracy in any research requires in depth study regarding the subject.As the prime objective of the project is to know stock keeping unit availablein market and how market share of PepsiCo in Patna in term of quantities with theexisting competitors in the market and the impact on Pepsi product. The researchmethodology adopted is basically based on primary data via which the most recentand accurate piece of first hand information could be collected. Secondary data hasbeen used to support primary data wherever needed.Primary data was collected using the following technique  Questionnaire Method  Observation MethodProcedure of research methodology  Target geographic area was Patna ( NIT More, Mhendhru, Gya Ghat, Tripolia, Nanmuniya More,Sultangang, Shar Sha Road  Finally the collected data and information was analyzed and compiled to arrive at the conclusion.Sources of secondary dataUsed to obtain information on, PepsiCo and its competitor history, current issues,policies, procedures etc, wherever required.  Internet  Magazines  Newspaper 45
  • 46. CHAPTER-7DATA ANALYSIS AND FINDINGS 46
  • 47. Data analysis and finding SAMPLE SIZE – 100 RETAILERS LOCATION - Patna ( NIT More, Mhendhru, Gya Ghat, Tripolia, Nanmuniya More, Sultangang, Shar Sha Road )In this data interpretation, opening stock is when I have visited first time to takesurvey and closing stock is survey taken at the end of project. In middle period oftime 60days I have take order from retailer and delivering the product to retailer.So that market share of PepsiCo is increase. 47
  • 48. DATA INTERPRETATION(1) Market share of PepsiCo products and Coco-cola products. Brand Opening stock in Closing stock in Total stock quantities (case) quantities (case) Coco-cola 578 672 1250 PepsiCo 338 486 824 Market share PepsiCo 40% Coco-cola 60%From above table and pie-chat, I found that Coco-cola was 60% market share inPatna whereas PepsiCo 40%.This was calculated on the basis of total stock availabilities on opening stock thatmean first outlet survey and closing stock availabilities last outlet survey. 48
  • 49. (2) Change in market share from opening to closing stock in 8 week. Brand Opening stock in Closing stock in Percentage quantities (case) quantities (case) growth Coco-cola 578 672 16.26% PepsiCo 338 486 43.78% 700 600 500 400 Opening stock Closing stock 300 200 100 0 Coco-cola PepsiCoIn 2 months internship period, PepsiCo stock was increased by 44% whereas coco-cola increased by only 16%. This huge increase due to taking order from retailerand delivering the product in time.If company takes order from retailer and deliver product on dailies basis thenautomatically market share will increase. 49
  • 50. (3) From 2nd question table, market share of PepsiCo at opening and closing stock. Market share at openingn stock PepsiCo 37% Coco-cola 63%At the opening stock market share of PepsiCo was 37% and coco-cola 63%. Market share at closing stock PepsiCo 42% Coco-cola 58%At closing stock market share of PepsiCo was 42% whereas Coco-cola 58%. Thisincreased in market share of PepsiCo due to delivering product on time. 50
  • 51. (4) Change in stock keeping unit (SKU) in 8week.Brand Opening SKU Closing SKU % increase in SKUCoco-Cola 520 674 29.6%PepsiCo 389 538 38.3% Change in SKU 800 700 600 500 400 Opening SKU Closing SKU 300 200 100 0 Coco-cola PepsiCoFrom above table, I found that Stock Keeping Units (SKU) of PepsiCo increasedby 38.6% whereas Coco-cola increased only by 29.6% in 2 months. 51
  • 52. (5) Stock keeping unit availabilities (SKU) of Pepsi and coco-cola in market onclosing date of project. Brand Closing SKU Average SKU per outlet Coco-cola 674 6.74 PepsiCo 538 5.38Actually coco-cola is producing 38 types of pack product and PepsiCo isproducing 32 types of pack product.Brand Average SKU per Number of SKUs Percentage of outlet availabilitiesCoco-cola 6.74 38 17.7%PepsiCo 5.38 32 16.8%PepsiCo has been 16.8% of SKUs Distributed against that available forDistribution whereas Coco-cola has been 17.7% SKUs Distributed in market.For both the companies there has been opportunity to grow their business byincreasing SKU availability in the market. PepsiCo has opportunities to increase83.2% of its SKUs. pepsico, 5.38 coco-cola, 6.74From the above graph and table it was clear that the availability of SKU andChilled Stocks of PepsiCo was 44% and coco-cola 56%. Actually L.B.P.L. isproducing 32 types of product stock but it’s having only 5.4 types of stock on anaverage of per retailer outlet. 52
  • 53. (6) SKU availabilities carbonated soft drink (CSD) on basis of flavor. PepsiCo ProductFlavor Product total SKU Number of % of packs availabilitiesCola Pepsi 145 6 24.16%Clear Lime 7Up,Mountain Dew 234 12 19.50%Orange Mirinda 46 6 7.66% Coco-cola ProductFlavor Product total SKU Number of % of packs availabilities Coca-Cola, 237 12 19.75%Cola Thums- UpClear Lime Sprite 182 6 30.33%Cloudy Lime Limca 35 6 5.83%Orange Fanta 56 6 9.33%From survey I had found that stock keeping unit in cola flavor of Coco-colaproduct was more than PepsiCo product. But Coco-cola has two type of product incola flavor which was coco-cola and thums-up whereas PepsCo has only oneproduct pepsi.Percentage of availabilities =Opportunities mean every outlet has at least one unit product of each packs.Percentage of opportunities = 100- percentage of availabilitiesFrom above table I found that cola flavor of PepsiCo has availabilities 24.16%whereas Coco-cola19.75%. Cola flavor of PepsiCo has opportunities 75.84% 53
  • 54. market. PepsiCo can increase availabilities up to 100% by working onopportunities 75.84% cola flavor market. Chart Title 0.35 0.3 0.25 0.2 Coco-cola 0.15 PepsiCo 0.1 0.05 0 Cola Clear Lime Orange Cloudy LimeFrom data interpretation, cola flavor of PepsiCo was 22.36% more than cola flavorof Coco-cola. But at the same time clear lime of Coco-cola was 55.55% more thanPepsiCo clear lime product. In orange flavor coco-cola was 21.73% more thanPepsiCo.Cloudy lime is not manufacture by L.B.P.L. therefore in these flavor 100%opportunities. 54
  • 55. (7) Number of company’s cooler available in market. Brand Number of cooler Coco-cola 38 PepsiCo 51 Number of cooler 60 50 51 40 38 30 Coco-cola Pepsico 20 10 0 Coco-cola PepsicoOut of 100 retailer outlet, I have found that number of cooler of PepsiCo was 51whereas coco-cola 38. PepsiCo had been 34% more cooler than coco-cola. 55
  • 56. (8) Total cooler capacities available in market. Brand Total cooler capacities Coco-cola 18690 Pepsico 16100 Percantage of cooler capacities PepsiCo 46% Coco-cola 54%Actually I have earlier found that PepsiCo has more cooler in compare of Coco-cola. But here coco-cola has more capacities of cooler in compare of PepsiCo.Coco-cola had 54% total cooling capacities whereas PepsiCo46%.In capacities wise, coco-cola had 16% more cooling capacities then PepsiCo. 56
  • 57. (9) Market share of carbonated soft drink (CSD) and juice base drink (JBD) inPatna. Market Opening stock Closing stock Total stock in case quantities in case quantities in case CSD 774 897 1671 JBD 114 202 316 Market share of CSD and JBD JBD 16% CSD 84%From above data interpretation I found that carbonated soft drink market share was84% and juice base drink market share was 16%.CSD product of coco-cola is coco-cola, sprite, thums-up, fanta, limica and soda.CSD product of PepsiCo is pepsi, 7up, mountain dew, mrinda, soda. 57
  • 58. (10) Market share of PepsiCo and coco-cola carbonated soft drink (CSD) in Patna. Brand Average quantities in Percentage of market case per outlet PepsiCo 3.50 42% Coco-cola 4.85 58% PepsiCo, 3.5 Coco-cola, 4.85Market share of carbonated soft drink (CSD) in Patna was 84% in which coco-colahad 58% market whereas PepsiCo 42% market shares in Patna. 58
  • 59. (11) Market share of Juice base drink in Patna. Brand Average quantities in case Percentage of JBD per outlet Market Coco-cola 1.20 85% PepsiCo 0.38 15% Market share of JBD PepsiCo 24% Coco-cola 76%Market share of Juice base drink (JBD) in Patna was 16% in which coco-cola hasbeen 76% and PepsiCo 24% juice base market share.JBD product of coco-cola is maaza and mint mind.JBD product of PepsiCo is slice and nimbuj. 59
  • 60. CHAPTER-8 CONCLUSION ANDRECOMMENDATIONS 60
  • 61. ConclusionFrom above analysis it is evident that there are only two companies dominating inthe soft drinks market - PepsiCo & Coca - Cola. There is neck-to-neckcompetition between these two companies. After visiting 100 outlets in Patnaregion it was found that the market share of PepsiCo was 40% and that of Coco-cola 60%. Average availability of quantities per outlet in case of PepsiCo was6.72cases per outlet and Coco-cola 4.86cases per outlet in this area. It wasobserved that when number of coolers was compared, PepsiCo had 34% morecooler than Coca cola limited but when total capacity is compared Coca cola had16% more capacity than PepsiCo. Beverage industry is categorized into twocategories- CSD and JBD. Carbonated soft drink (CSD) had 84% market share andjuice base drink (JBD) 16%.The study also focuses on retailer satisfaction and it was found that majority of theretailers were selling coco-cola products and some of the retailers weren’t satisfiedwith the distribution of PepsiCo products. There were complaints from retailers forlate delivery of product and less stock supply due to shortage.Coca-cola has covered more market share because they provide better supply, andhas better provision of refrigerator supply to the retailer. Distribution of - coolersand display of Glow Signs board was better than PepsiCo. So, more investment isneeded to break the brand establishment of Coco-cola product. 61
  • 62. RecommendationsCoco-cola is the only competitor of PepsiCo. It is better to track every informationabout Coco-cola i.e. price, scheme, policy etc… so that it will always help inDecision making. Company should prepare future plan for maintaining its marketshare as competitor can increase and can capture the market. Now a day with theintroduction of tetra packs such as fruity, Tree Top etc… Lumbini Beverages Pvt.Ltd. should think of introducing such packs of its various flavors product.It was observed that some retailers keep other companies products in the PepsiCofridge. Company should make a special department to check such activities andinspect every shop 3 to 4 times in a month to check fridges. If it is found thatretailer don’t keep other companies product in PepsiCo fridge then they shouldprovide special scheme or incentive to retailers which may help in increasingmarket share of PepsiCo.A complaint Register should be assigned by the company to every distributor inevery route so that, retailers can write their problems. The complaint registershould be checked by Customer Executive (CE) and depot in-charge time to time.Customer Executives should take the feedback from the salesman and thedistributors for solving retailer problem.Retailers expect Computer generated bills from distributors where it was found thatthe competitor is successful in providing this but Pepsi had not yet implementedthe same system, so it should be implemented. It was also found that number ofoutlets is more. So it is required to short the route and extra vehicles/tricyclesprovide in this route.The above recommendations may help the company Lumbini Beverages Pvt. Ltdto assess in a better way. 62
  • 63. APPENDIX 63
  • 64. Bibliography  Internet site  www.pepsico.com  www.cocacocla.com  www.pepsicoindia.com  www.wikipedia.com  www.ask.com  Magazine  Business today  Business and economy  Book  Marketing Management by Philip Kotler  Marketing Management by V.S. Ramaswamy  Business Statistics by S.P. Gupta 64
  • 65. Excel data sheet 65
  • 66. 66