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Varun bevrage
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  • 1. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 1 A Project Report on [STRATEGY FOR MARKETING THROUGH RETAIL OUTLETS] BY ANUJ TRIPATHI ROLL NO. 1202605 Submitted to Dr. KANCHAN BHATIA In partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMISTRATION Project work carried out at RJ Corp Varun Beverage (International) Ltd, Goa Under the guidance of Dr. Kanchan Bhatia Madhu Sudan HOD, SIRT MBA Program Marketing Development manager BHOPAL Pepsico – Goa Department of MBA Sagar Institute of Research & technology Bhopal - 462023 (2012 – 2014 Batch)
  • 2. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 2 Certificate
  • 3. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 3 Student’s Declaration I am Anuj Tripathi the undersigned, student of SIRT, Bhopal; declare that this project report ti- tled “Strategy for Marketing through Retail Outlet” is submitted in partial fulfillment of the re- quirement for the summer internship project during the Post Graduate Program in Management. I also declare that this is my original work and has not been previously submitted as part of any other degree, diploma of another B-school or University. The findings and conclusions of the data in this report are based on my personal study, during the tenure of my summer internship. Date: AnujTripathi Acknowledgement
  • 4. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 4 Our training at “VARUN BEVERAGES INTERNATIONAL LTD. GOA” was extremely en- riching. We were given an opportunity to work in close association with our seniors and were benefited tremendously with the interaction we had with them during the course of our project. We are also thankful Mr.JAI Kshirsagar (A.D.C)(Varun Beverages International Ltd, Goa ) for his kind co-operation in providing us with the valuable information. I am also grateful to Dr. Kanchan Bhatia H.O.D. of M.B.A. SIRT, Bhopal for her kind co-operation in providing us with the valuable information. All the faculty members of the institute diverse my thanks and expression of gratitude ANUJ TRIPATHI MBA (3rd Sem) EXECUTIVE SUMMERY
  • 5. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 5 Beverage Industry is one of the fast growing industries in India. It can be divided into two sec- tions that i.e. carbonated & Non – carbonated. The carbonated drink for the classified into cola, lemon, orange, mango & apple segments. Marketing includes all the activities like promotions, distribution, advertising etc. To fulfill the all segment of the consumers marketing is also to con- vert social needs into profitable opportunities. The project is “Strategy for marketing through retail outlets” PepsiCo are facing problems regarding product and display of the product in the premises of the outlets so as the result the sale of the product has not been achieving the sales target set by the company. So this topic entire essential to theoretical knowledge & to inculcate the efficiency. It also re- quirement for the company to improve their service and quality for achieving their ultimate goal The topic has been given by the company to collect information about the current status given by the company to the retailer for selling of every branch soft drink of PepsiCo. The main objective of the research was to know the company’s position in the soft drink market by doing brand display and trading schemes. This study covers marketing through retail outlets. During my study I covered all the major areas of the south – Goa. I surveyed around 100 retail outlets. This study covers all the majors dimen- sions considered essential for proper sale and merchandising management. Some of them include sales support trade schemes, profit schemes and looking after the proper re – imbursement on trade scheme are very much essential step to be taking by PepsiCo. The retailer in the Goa seems to be unhappy with the support material provided by the PepsiCo, which it has to look into Im- mediately Company executives must try to build good relationship with the retailers by address- ing their problems continuously.
  • 6. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 6 Table of content Certificate Student’s declaration Acknowledgement Executive Summary CHAPTER TOPIC PAGE NO. 1 Introduction 1.1Overview of the company 1.1.1Company profile 1.1.2 History of soft drinks 1.1.3 Introduction of Pepsi 1.1.4 PepsiCo India 1.1.5 Brand Names and Details 1.1.6 Pepsi Brands 1.2 Japuria Group 1.2.1 RKJ Group 1.2.2 Varun Beverage Ltd. 1.2.3 About Goa Plant 1.2.4 The competitive area amount Pepsi & Coke 1.2.5 Promotion of the Company 1.2.6 Swot analysis 1.2.7 Achievements and Awards 9 9 9 9 11 13 19 20 20 21 21 22 23 23 26 2 Company Background 2.1 Organization structure 2.1.1 Marketing Department 2.1.2 Sales Department 28 29 30 31 3 Introduction of topic 3.1 Intro of marketing strategy 3.2 Used Strategy through retail outlet 33 34 35 4 Research methodology 4.1 Objective of research 36 37 5 Data analysis 5.1 Data analysis 39 40 6 Findings 53 7 Conclusion 55 8 Suggestion 57 9 Limitation 59 10 Bibliography 61 11 Appendix (Questionnaire) 63
  • 7. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 7 Chapter I Introduction
  • 8. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 8
  • 9. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 9 1.1 OVERVIEW OF THE COMPANY: 1.1.1 Company Profile Varun Beverages Ltd. is a private ltd to which franchise is given by Pepsi Food Ltd. for bottling of the various Pepsi brands. Managing Director of the company is Mr. Ravi Kumar Jaipuria, leading top businessman (In Soft drink Market) in India. 1.1.2 History of Soft Drinks: The history of soft drinks began with the end of the last century. Its history dates back to the civil war in USA in 1860.At the time people were suffering from many diseased. Problem at that time was how to cure all these disease since no remedy was present at that time. It was a big question for American people. So in 1885, Mr. JihnPalmwartion, made a drink and registered it as FRENCH WINE COLA. In the beginning the drink was made with mixture of cocaine and alcohol but later on it was converted and changed into a soft drink. Now it is named as Coca-Cola. A new named Pepsi-Cola came in the year 1887. 1.1.3 Introduction of PepsiCo: PepsiCo, Inc. is currently one of the most successful consumer product company in the world with annual revenues exceeding $30 billion and has more than 4,80,000 employees. PepsiCo, Inc. began as a successor to a company incorporated in 1931, known as Loft Inc. Once known as Pepsi-Cola, the company expanded its business and adopted its current name, PepsiCo, after a merger with Frito-Lay in 1965. PepsiCo’s products are recognized and are the most respected all around the globe. Currently, PepsiCo division operates in three major US and International businesses: beverages, snack foods and restaurants. PepsiCo is a global food and beverage leader with net revenues of more than $65 billion and a product portfolio that includes 22 brands that generate more than $1 billion each in annual retail sales. Our main businesses – Quaker, Tropicana, Gatorade, Frito-Lay and Pepsi-Cola – make hundreds of enjoyable foods and beverages that are loved throughout the world. PepsiCo’s peo- ple are united by our unique commitment to sustainable growth by investing in a healthier future for people and our planet, which we believe also, means a more successful future for PepsiCo. We call this commitment Performance with Purpose: PepsiCo’s promise to provide a wide range of foods and beverages from treats to healthy eats; to find innovative ways to minimize our im- pact on the environment by conserving energy and water and reducing packaging volume; to provide a great workplace for our associates; and to respect, support and invest in the local communities where we operate.. The operations increasing success has been based on high standards of performance, marketing strategies, competitiveness, determination, commitment and the personal and professional integ- rity of their people, products and business practices. PepsiCo’s overall mission is to increase the value of our shareholders’ investment through sales growth, investments and financial activities.
  • 10. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 10 PepsiCo believes their success depends upon the quality and value of their products by providing a safe, whole some, economically, efficient and a healthy environment for their customers and by providing a fair return to their investors while maintaining the highest standard quality. PepsiCo is a world leader in convenient snacks, foods and beverages. Name PepsiCo Inc. Industries served Beverages Food founded in 1965 Geographic areas served Worldwide Headquarters U.S., New York Current CEO IndraNooyi Revenue $ 65.492 billion (2012) Profit $ 6.178 billion (2012) Employees 297,000 Main Competitors The Coca-Cola Company, Dr Pepper Snapple Group, Inc., Mondelez International, Inc., Hansen Natural Corporation, National Beverage Corp., Kraft Foods Inc., The Kellogg Company, ConAgra Foods, Inc., Nestlé S.A. and others.
  • 11. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 11 Products: Pepsi Tropicana, Gatorade Lay’s Doritos Frappuccino Mountain Dew PepsiCo, Inc. is one of the world’s largest food and beverage companies. The company’s princi- pal businesses include:  Frito-Lay snacks  Pepsi-Cola beverages  Gatorade sports drinks  Tropicana Juices  Quaker Foods PepsiCo was found in 1965through the merger of Pepsi-Cola and Frito Lay. 1.1.4 PEPSICO IN INDIA: PepsiCo is a world leader in convenient foods and beverages, with 2006 revenues of more than $ 35 billion and more than 1,68,000 employees across the world. Its world renowned brands are available in nearly 200 countries and territories. PepsiCo entered in India in 1989 and in the span of a little more than a decade, has grown to be- come the country’s largest selling food and beverage companies. One of the largest multination- al investors in the country. PepsiCo established a business which aims to serve the long term dynamic needs of consumers in India. The group has built an expensive beverages, snack foods and exports business and to support the operations are the group’s 37 bottling plants in India of which 16 are company owned and 21 are franchisee owned. In addition to this, PepsiCo’s Frito Lay snack division has 3 state of the art plants. PepsiCo’s business is based on its sustainability vision of making tomorrow better than today. Our commitment to living by this vision everyday is visible in our contribution to our country, consumers, farmers and our people.
  • 12. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 12 Providing Consumers with balance and choice: PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7UP, Mirinda and Mountain Dew in addition to low calorie options- DictPepsi and 7Up Light, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks- Gatorade and 100 % natural fruit juices and juice based brand drinks – Tropicana and slice. Our local brands- Lehar Everest Soda, Dukes Lemonade and Mangole complete our diverse spectrum of brands. PepsiCo’s snack food company; Frito –Lay, is the leader in the branded potato chip market and was amongst the first companies to eliminate the use of trans fats and ‘msg’ in its products. It manufactures Lay’s potato chips.  PepsiCo India has 40 bottling plants in India.  PepsiCo generates direct employment for more than 4000 people in India and indirect employment for 60,000 people.  Sells more than 200 million crates annually.  PepsiCo generates estimated annual retail sales of U.S. $ 700 million in India  PepsiCo annually exports from India are worth over U.S.$60 Million.
  • 13. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 13 1.1.5 Brand Name & Detail:- PEPSI Brand History Pepsi is a hundred-year-old brand loved by over 200 million people worldwide. The largest single selling soft drink brand in India, Pepsi is ubiquitous on just about every social occasion.  Youngistaan loves it. 200 million people worldwide love it. But what has made Pepsi the single largest selling soft drink brand in India is actually a formula concocted a century ago in a faraway continent.  1886, the US. Caleb Bradman, a man with a plan formulated a blockbuster of a diges- tive drink and decided to call it Brad’s drink. The potion was to become Pepsi Cola in 1898, and eventually, Pepsi in 1903.  Since its inception, Pepsi has always been at the forefront of the beverage industry and has come up with revolutionary concepts such as Diet Pepsi, 2l bottles, recyclable plas- tic cola bottles and the enviable My Can. Brand Advantage  Pepsi has become a friend to youth and youth culture. Over generations, youngsters have grown up with Pepsi and have shared an emotional connect with it unlike with any other cola brand. Be it parties, hangouts with friends, or just another day at home, a day is never complete without the fizz of Pepsi!  Pepsi has always fuelled youth passions like cricket, Bollywood, music and now football. Youth icons like MS Dhoni, RanbirKapoor, Didier Drogba, VirendarSehwag, Sachin Tendulkar, Priyanka Chopra and DeepikaPadukone have endorsed Pepsi since its launch in India.  Pepsi Changed the Game during the 2011 cricket world cup by challenging convention, celebrating the unorthodox and by becoming the official sponsor of everything that was unofficial about the sport! Change the Game even as a thought has gained enormous popularity and generated tremendous buzz.  Taking the same theme forward in 2012, Pepsi changed the game yet again by taking the lead in celebrating the exciting new platform of football. Having brought the biggest international football stars and pitching them against the mighty Indian cricketers in a classic faceoff for Pepsi – is something which only a brand like Pepsi can deliver.
  • 14. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 14 7 UP Brand History 7UP, the refreshing clear drink with a natural lemon and lime flavour was created in 1929. 7UP was launched in India in 1990 and its international mascot Fido Dido was used for advertising in 1992 to position the brand as a cool drink for youngsters. Fido became an instant hit with his trendy look, laid-back attitude and unconventional take on life. During the brand’s early years in India, 7UP gained market leader status in the lemon lime category by being one of the first to be nationally distributed besides being marketed as a healthier alternative to other soft drinks. Brand Advantage For the past two years, 7UP’s ambition as a brand has been to capture and own the lemon re- freshment territory within the clear lime category. ‘Lemon’ has proven to be a clear and relevant differentiator for the brand. Further, the emotional connect with the idea of upliftment through refreshment has led to an impressive payoff for the brand. After establishing itself as ‘The Lemon Drink’ in January 2009, 7UP has continued to build on the theme of mood upliftment with its new tagline ‘Mood Ko Do Lemon Ka Lift’.
  • 15. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 15 AQUAFINA Brand History Aquafina was first launched in the US in 1994. With its unique purification system and great taste, Aquafina soon became the bestselling brand in the country. In India, Aquafina’s journey began with its launch in Bombay in 1999 and it was rolled out na- tionally by 2000. On the strength of its brand appeal and distribution, Aquafina has become one of India’s leading brands of bottled water in a relatively short span of time. Brand Advantage Aquafina goes through a five step state-of-the-art purification process to give consumers pure water and perfect taste. Aquafina has been built through refreshing and sharp advertising. The ‘What a Body’ campaign has helped the brand to drive premium, modern and youthful imagery in an otherwise undifferen- tiated category. Bottled across India in 19 plants, Aquafina is available across more than half a million outlets. Catering to diverse consumer needs and occasions, it is available in various pack sizes like 300ml, 500ml, 1 ltr and 2 ltr bottles and in bulk water jars of 25 ltrs. Aquafina is the face of PepsiCo’s water conservation initiatives and builds awareness about Pep- sico’s efforts to replenish and restore the water table through its pack labels.
  • 16. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 16 MIRINDA 2012 Brand Campaign Mirinda has always stood for great bold taste that unleashes uninhibited fun. Taking the promise forward, Mirinda launched two new exciting flavors- Orange Mango and Or- ange Masala which appeal to the Indian palette. While Orange Mango is the perfect mix of the sweet candy taste of mango flavor and the tanginess of original Mirinda Orange; Orange Masala tickles the taste buds with a hint of fruit masala flavor added to Mirinda Orange. The launch was supported by a robust 360-degree campaign including out- door, online and a consumer engagement programme to bring alive the taste experi- ence. Brand History Mirinda is an international soft drink brand from Spain that was launched in India in 1991. The irresistible taste of Mirinda was communicated through our 1996 ‘Mirinda Men’ campaign, the 2000 ‘Taste Pe Atka, Mirindaaaa’ campaign and the ‘Taste Aisa- Chaye Character FislaJaye’ campaign of 2003. In 2008, the brand decided to up the ante and deliver a brand philosophy that would resonate strongly with consumers. Consequently, Mirinda adopted a bold and vibrant colour, great orangey taste and sparkling bubbles that encouraged one to be more care- free, spontaneous and playful and occasionally give in to an impulse of uninhibited fun. This was conveyed through the ‘PagalpantiBhiZarooriHai’ campaign with Asin in 2008. In 2009, Mirinda established orange as the core of the brand with ‘Orange Dikha- TohMooh Bola Mirindaaaa’.
  • 17. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 17 SLICE Brand History Slice was launched in India in 1993 as a refreshing mango drink and quickly went on to become a leading player in the category. In 2008, Slice was relaunched with a winning product formulation that made consumers fall in love with its taste. With new pack graphics and clutter-breaking advertising, Slice has built a powerful appeal. Brand Advantage With the launch of the ‘Aamsutra’ campaign in 2008, its winning taste and appealing pack graphics, Slice created a great deal of excitement in its category and celebrated the indulgence in mangoes like no other brand had done before. While other players have portrayed the mango as a simple and innocent fruit, Slice cel- ebrates the sheer indulgence and sensuality involved in consuming a mango. The crea- tive ‘Aamsutra’ idea communicates the experience of extreme sensuous pleasure through the act of drinking Slice. Slice was the first brand ever in the Juice and Juice Drinks category to sign on Bolly- wood diva Katrina Kaif as the brand ambassador for Slice. In 2009, Slice took the notion of indulgence to a whole new level with the launch of the ‘Slice Pure Pleasure Holidays’, giving its consumers a chance to win luxurious all- expenses-paid holidays to dream European destinations like Paris, Vienna, Greece and Venice.
  • 18. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 18 Slogans of PEPSI: 1992: “Be Young, Have fun , Drink Pepsi” 1995: “Nothing else is a Pepsi” 1996: “Pepsi : There’s nothing official about it” 1997: “Generation Next”. “With Spice Girls” 1998: “Yehdil Mange More (in Hindi “My heart wants more”) 1999: “Ask for more” 2003: “It’s the cola” / “Dare for more” 2005: “Wild things ” / “Ask for more” 2006: “Why you Doggin Me” / “Taste the one that’s forever young” 2007: “More Happy” / “Taste the one that is forever young” (Michael Alexander) 2008: “YehhaiYoungistaanmerijaan !” 2008: “Pepsi Stuff” 2013: “Oh Yes Abhi”
  • 19. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 19 1.1.6 PEPSICO BRANDS: PEPSICO Snack Foods Beverages Restaurants Frito Lay Pepsi KFC Pizza Hut Taco Bell
  • 20. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 20 1.2 JAIPURIA GROUP Indian Beverages Industry’s size is Rs. 8000 crores and it is dominated by two players viz Pepsi and Cola only. The high profile industry has lot of potential for growth as per capita consumption in India is 8 bottles a year as compared to 20 bottles in Srilanka, 14 in Pakistan. While 12 a person in Nepal. The RKJ Group is India’s leading supplier of retailer brand carbonated and Non-carbonated soft drinks with beverage manufacturing facilities in India Nepal. Its exp in the beverage Industry dates back to the sixties when it had the first Franchisee in Agra. The group manufactures and markets carbonated and non-carbonated soft drinks and Mineral water under Pepsi Brand. The various flavors and sub brands are Pepsi, Miranda Orange, Miran- da Lemon, and Mountain Dew, 7 Up, Slice Mango, Slice Orange, Everest Soda and Aquafina. It has the licenses to supply beverages in the territories of Western UP, Part of MP, half of Har- yana, Whole of Rajasthan, Goa, 3 Districts of Maharashtra, 9 Districts of Karnataka and whole of Nepal, The group has in total 18 bottling plants in India and Nepal and is responsible for providing and marketing 44% of Pepsi requirement in India. 1.2.1 R.K.J. GROUP  Varun Beverages Ltd. – Pepsi  Devyani Foods Industries Pvt. Ltd. -Cream Bell  Costa Coffee  Pizza Hut  D.P.S.  Saint Mantas  KFC
  • 21. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 21 1.2.2VARUN BEVERAGES LTD. Varun Beverages Ltd was the new start was born in 1999 among the Jaipuria Group. This is raising sun of Jaipuria group. Mr. Ravi kant Jaipuria who is the chairman of this bottling plant has good result. The main object of this unit is manufacturing, production, selling, distribution and bottling of beverages, created water soft drinks etc. Mr. Ravi Kant Jaipuria got the best Pepsi Bottle award in 1998 for the Best Bottler of the world. The Pepsi award is the highest honorable award to any franchisee. It can be said with absolute certainty that the RKJ Group has carved out a special niche for itself. Our services touch different aspects of commercial and civilian domain like those of Bottling, Food Chain and Education. Varun Beverages Ltd. is a franchise of PepsiCo International and produces glass bottled soft drinks of the Pepsi brand in the state of Goa. Pepsi Co is a world leader in food and beverages industries with revenues of about $25 billion and has 142,000 employees. It has its Corporate Office is in U.S.A. Pepsi Co Beverages International is involved in beverage manufacturing. The Head Office of VARUN BEVERAGES is located in Haryana & the plant is located in Ar- lem – Raia. It is a private limited company owned by Mr. Ravi Jaipuria. VARUN BEVERAGES. has been divided into 2 parts i.e. (I) Goa Bottling which is registered under the Factories Act & (II) Selwell Food & Beverages Pvt. Ltd. which is registered under the Shops & Establishments Act Goa Bottling is in charge of manufacturing the soft drinks only in returnable glass bottles & not pet bottles whereas Selwell Food & Beverages Pvt. Ltd. is in charge of distributing & selling of Pepsi products. 1.2.3ABOUT GOA PLANT Varun Beverages started its manufacturing activities in 1965 with hand operated machines to fill the bottles. The plant had a capacity to produce 200 cases of 200ml bottles in an eight hour shift. In 1972 late Mr. MadhubabTimbloo signed a franchise agreement with Parle. The plant was de- clared a sick unit in 1985 one of the main reasons being that ‘Gold Spot’ which was produced in VARUN BEVERAGES. during that time was not doing well. In the late eighty’s Coca Cola made VARUN BEVERAGES its franchise. This franchise lasted for 3 to 4 years. In the year 1994 Mr. Ravi Jaipuria took over and signed a franchise agreement with Pepsi. Varun Beverages has never looked back & has had a continuous growth rate. Since then the plant has undergone expansion & up gradation of plant & machinery. By incorporating latest technology the plant is now 95% automated and has the capacity to produce 15000 crates in a day. VARUN BEVERAGES has 210 employees – 104 in VARUN BEVERAGES and 106 under Sellwell with an attrition rate of 9.3%.
  • 22. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 22 MISSION Its overall mission is to increase the value of their shareholders through sales growth, cost con- trol and wise investments. They believe commercial success depends up on offering quality and value to customers and consumers. VISION To produce best Quality products at lower cost which can be made possible through optimization of resources, better discipline, team work, multi-tasking and high consumer satisfaction. The group added another feather to its cap when the prestigious PepsiCo “International Bottler of the Year” award was presented to Mr. R.K. Jaipuria for the year 1998 at a glittering award ceremony at PepsiCo’s centennial year celebrations at Hawaii, USA. The award was presented by Mr. Donald M. Kendall, founder of PepsiCo Inc. in the presence of Mr. George Bush, the 41st president of USA, Mr. Roger A. Enrico, Chairman of the Board and CEO., PepsiCo Inc. and Mr. Craig Weatherup, president of Pepsi Cola Compan. OUR SUCCESS: Production of innovative, high quality retail branded beverages combined with world class pack- aging. Driven by a management team with a relentless focus on achieving superior customer ser- vice, driving earnings improvement and increasing shareholder value OUR PEOPLE: At RKJ we are creating an environment where our employees enjoy a greater degree of empow- erment – both individually and in their work teams. Our employees are equipped with the necessary tools, training and management backup for strong performance and accountability, as well as with an environment of open communication and involvement. 1.2.4The Competitive Area among PepsiCo and Coke: The soft drink market all over the world as been witnessing a neck-to-neck battle between the two major players; Coca Cola and Pepsi since very beginning The thirst quenchers are trying hard to have the major piece of the apple of overall carbonated soft drink market. Both the play- ers are spending their energies in building capacity, infrastructure, promotional activities etc.
  • 23. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 23 PepsiCo is facing the completion mainly by Coke. It has a competition for all its products by Coke. Both the competitors have distinct vision and priorities about the Indian soft drink market. Through having so much difference and distances with one another, they both consider India as a huge potential market as per the capita consumption hare in more 3 servings per year against in International of 80. Throughout they are putting best efforts to woe Indian consumer who has to work for 1.5 hours to buy a bottle cross over for both the athletes running for getting for No.1 position. Coca-Cola is well set with its 53 bottling sites throughout the country giving it an edge over competition by possessing a well built manufacturing and distribution set up on the other side of picture, Pepsi, with two more year in India, has been able to set an image of winner this giants are ready to turn every stone of opportunity with a mind set of long tenure this time. Pepsi is quite aggressive in approach to Indian Consumer. They are desperately working in the strategy to be winner side in the hot cola war between two big barons. Pepsi had pumped a large amount on visibility of its blue-red and white logo. They have been going with aggressive mar- keting by putting Sachin Tendulkar and now Shahrukh Khan is there advertisement to endorses their brand, the role models for its targeted consumer the teenagers. They have increase the fizz in the market price by introducing the dispensers called fountain Pepsi and been enjoying a lead over its rival there. The Major fight between the Pepsi and Coca-Cola products is as follows: For Pepsi ----------- Coca Cola Slice ------------Mazza 7-Up ----------- Sprite Miranda --------Fanta Nimbooz-------Limca Pepsi Max------Thumps Up Aquafina------- Kelley Water 1.2.5Promotion of the Company: All advertisement expenditure is incurred by PepsiCo India, but only D.P Board, wall painting, S.G.A.’s etc. Company spends on it around 8-9% total sales company invested 305 crore rupees in advertisement budget. Radio TV Hoardings Road Signs Sticker Neon Light
  • 24. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 24 1.2.6SWOT ANALYSIS: SWOT analysis of Pepsi for 2013. PepsiCo SWOT analysis 2013 Strengths Weaknesses 1. Product diversity 2. Extensive distribution channel 3. Corporate Social Responsibility (CSR) projects 4. Competency in mergers and acquisitions 5. 22 brands earning more than $1 billion a year 6. Successful marketing and advertising cam- paigns 7. Complementary product sales 8. Proactive and progressive 1. Overdependence on Wal-Mart 2. Low pricing 3. Questionable practices (using tap water but labeling it as mountain spring water) 4. Much weaker brand awareness and market share in the world beverage market com- pared to Coca-Cola 5. Too low net profit margin Opportunities Threats 1. Growing beverages and snacks consumption in emerging markets (especially BRIC) 2. Increasing demand for healthy food and bev- erages 3. Further expansion through acquisitions 4. Bottled water consumption growth 5. Savory snacks consumption growth 1. Changes in consumer tastes 2. Water scarcity 3. Decreasing gross profit margin 4. Legal requirements to disclose negative in- formation on product labels 5. Strong dollar 6. Increased competition from Snyder’s
  • 25. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 25 STRENGTHS 1. Product diversity. PepsiCo has several hundreds of brands, which include: carbonated and noncarbonated drinks, water, savory and whole grain-based snacks. Product diversification strengthens PepsiCo because it doesn’t have to rely on few key products or seasonal sales and isn’t significantly affected by changes in customer tastes. 2. Extensive distribution channel. PepsiCo products are served to more than 10 million stores per week in more than 200 countries. 3. CSR. The firm recognizes its role in a society and engages in education, recycling, water us- age reduction, obesity fighting and other projects throughPepsiCo Foundation, thus increasing its brand awareness and customer loyalty. 4. Competency in mergers and acquisitions. The key to PepsiCo growth is its successful mergers and acquisitions of beverage, bottling and snacks companies. PepsiCo acquired such brands as Gatorade, Tropicana, Doritos, Quaker Oats and many others. 5. 22 brands earning more than $1 billion a year. The company doesn’t have to rely on one or two of its product to bring most of the revenues. Instead, Pepsi has 22 brands that contribute sig- nificantly to its income, serving different industries and satisfying various consumer tastes. 6. Successful marketing and advertising campaigns. More than $2 billion spent on advertising over 2012 resulted in PepsiCo’s growing market share over its main competitors, including Coca Cola Company, which spent even more on advertising. 7. Complementary product sales. In its annual financial report, PepsiCo revealed one of its stud- ies results that about 30% of customers who buy its snacks also buy its beverages. PepsiCo’s de- cision to diversify its product range is firm’s competitive advantage too. 8. Proactive and progressive. According to New York Times food industry writer Melanie Warn- er, PepsiCo, by many critics, is considered to be most proactive and progressive food company. WEAKNESSES 1. Overdependence on Wal-Mart. More than 13% of PepsiCo revenues come from Wal-Mart store chain. Wal-Mart has a significant buyer power and can easily dictate prices over PepsiCo leaving it with very small margins. In addition, if PepsiCo would lose Wal-Mart it would lose 13% of its revenue and competitive advantage. 2. Low pricing. PepsiCo usually prices its products lower than its competitors. Low price is asso- ciated with low quality and PepsiCo products are usually perceived as ones. 3. Questionable practices. PepsiCo is using and selling tap water but places view of mountains on its water bottle labels, thus deceiving people that it is mountain spring water when it is not. PepsiCo has also been criticized for using water in India with higher than allowed amount of pes- ticides in it. 4. Weak brand awareness. The Coca Cola has the largest share market of beverages in the world and much stronger brand awareness than Pepsi, placing it at competitive disadvantage. 5. Too low net profit margin. PepsiCo’s net profit margin is 9.7% compared to Coca Cola’s 18.55% and Nestlé’s 11%. OPPORTUNITIES
  • 26. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 26 1. Growing beverages and snacks consumption in emerging markets. PepsiCo has made large investments in BRIC countries to expand its market share as these countries represent the fastest growing food and beverages markets in the world. If PepsiCo is successful it will increase its revenues and global market share significantly. In addition, it will be able to rely less on US market. 2. Increasing demand for healthy food and beverages. Due to many programs to fight obesity, demand for healthy food and beverages has increased drastically. PepsiCo has an opportunity to further expand its product range with beverages and snacks that have low amount of sugar and calories. 3. Further expansion through acquisitions. So far, PepsiCo has been successful in acquiring other companies and adding new growing brands to its portfolio. 4. Bottled water consumption growth. Consumption of bottled water is expected to grow both in US (PepsiCo’s largest bottled water market) and the rest of the world. 5. Savory snacks consumption growth. The same opportunity PepsiCo has in growing its revenue selling snacks as this market is also expected to grow. THREATS 1. Changes in consumer tastes. Consumers around the world become more health conscious and reduce their consumption of carbonated drinks, drinks that have large amounts of sugar, calories and fat. 2. Water scarcity. Water is becoming scarcer around the world and increases in both cost and criticism for PepsiCo over the large amounts of water used for production. 3. Decreasing gross profit margin. PepsiCo’s gross profit margin was decreasing over the past few years and may continue to decrease due to higher water and other raw material costs. 4. Legal requirements to disclose negative information on product labels. Some researches show that particular ingredients, consumed in extra large quantities, in some of PepsiCo products could cause cancer. For this reason, many governments consider to pass legislation that requires dis- closing such information on product labels. Products containing such information may be per- ceived negatively and lose its customers. 5. Strong dollar. More than 50% of PepsiCo’s income is from outside US. Due to strong dollar performance against other currencies PepsiCo’s income should fall. 6. Increased competition from Snyder’s. Snyder’s increase its US savory snacks market share by 1.6% and almost all of it was taken from PepsiCo. 1.2.7 Achievements / Awards:-  PepsiCO in India is among 12 American companies selected as finalists for the Secretary of state’s prestigious 2010 award for corporate excellence.  PepsiCO was recognized with a Asia region HR star award in 2006.  PepsiCo Palakkad plant won Golden Peacock National Award for a Management in 2001 and 2002.  Award for Best HR strategy in the line with business PepsiCo India Holding Pvt. Ltd. (Frito Lays Division).
  • 27. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 27  Award for Excellence in Training PepsiCo India Holding Pvt. Ltd. (Frio Lays Division).  PepsiCo India has been recognized by ILO in their Annual Report as a model partner for the HIV/AIDS program.
  • 28. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 28 CHAPTER 2 COMPANY BACKGROUND
  • 29. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 29 2.1 ORGANIZATION STRUCURE Managing Director HR Deptt HR man- ager Personnel Officer & Staff Security Deptt Operation Deptt Sales Deptt Marketing Deptt Commer- cial Deptt General Account Excise Taxation Shipping Transpor- tation MIS IT Quality Control Produc- tion Store Area Devel- opment mgrCustomer Executive Presales repre- senta- tiveRoute Agent MDM Mkting officer Mer- chandiser
  • 30. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 30 2.1.1MARKETING DEPARTMENT MARKETING DEPARTMENT Functions of the marketing department Launch: Whenever there is a launch of a new product or relaunch of an existing product, the marketing department has to decide on the place, day, time, when to release the ads etc. of launching the product. Advertising: The main purpose of advertising is to make the public aware of the product & the new schemes launched by the company and also so that the brand recall value of the Pepsi prod- ucts is increased in the minds of the consumers. Different agencies design their advertisements for the company. To carry advertising smoothly and effectively, the marketing department of Varun Beverages issues POS materials i.e. danglers, posters, hoardings, paintings and banners. These are the means of advertising along with television advertisements. Promotion: The other duty of marketing department is to look after all the sales promotions ac- tivities. In order to promote their product, Pepsi comes up with many contests with lucrative prizes on offer. This helps to increase the sales of their products. MARKETING DEVELOPMENT MANAGER MARKETING EXECUTIVE MERCHANDISER
  • 31. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 31 Sponsorship of Events: The Marketing Department has to look after the sponsorship of any ma- jor event that is taking place in the State of Goa. Since Pepsi has a youth centered way of market- ing, they chose platforms such as musical and sports events. Pepsi was one of the sponsors of International Film Festival of India which was held in Goa. Schemes: The marketing department is also responsible for the execution of various schemes of Pepsi. These schemes are aimed at giving benefits to the people who are responsible for sales i.e. the sales force, retailers, distributors etc. Marketing Channel: Marketing Channel is a path by which the company makes its goods availa- ble to its customers. It is also called as a distribution channel. A good marketing channel is very important to gain a competitive advantage, especially, when soft drink giant like coco cola is breathing down its neck. During off season, the Marketing manager conducts sessions for the sales people. 2.1.2SALES DEPARTMENT HOS TDM ADC CE PSR RA HELPER
  • 32. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 32 SALES DEPARTMENT The sales department is headed by the Head of Sales, who is responsible for the sale of Pepsi products in the state of Goa and the 2 districts of Maharashtra.He has to also plan how to go about the sales.There are 4 T.D.M's under the head of sales. The T.D.M's are made incharge of sales in various regions i.e.1 for North Goa,1 for South Goa,1 for Central Goa and 1 for Maharashtra region. A Customer Executive(C.E) works under the T.D.M. he has to visit the retailers daily and he has to look into the grievences of the retailers. He has to provide training to the Route Agents (R.A.) and check their progress. He has to also see that all the distributors that come under him function smoothly.He has to see that various schemes devoloped by the marketing department are implemented in the market. The Route Agents are like the salesman of the company. They are assigned routes in which they have to sell their products. They have divided their customers into various accounts Key Accounts: 5 star hotels & offices Urban Accounts: Bars, hotels, shops, cyber cafe, stalls and theatres Rural Accounts: Bars,shops, fast food centres, stalls and cyber cafe
  • 33. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 33 CHAPTER 3 Introduction of the topiC
  • 34. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 34 3.1 What is marketing strategy? Marketing strategy is a processs that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competi- tive advantage. Marketing strategies includes all basis the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contribute to the goals of the company and its marketing objectives. DEFINITION of marketing strategy “An organization’s strategy that combines all of its marketing goals into one comprehensive plan. A good marketing strategy should be drawn from market research and focus on the right products mix in order to achieve the maximum profit potential and sustain the business. The marketing strategy is the foundation of a market plan.”  TRADE SCHEMS- CARD A/C- The retailer for discount only.(all retailer) Key a/c- provide the discount and gift.(only high volume retailer) Power blast- mostly use the bar promotion ability of flavor 40% and soda 60%.  BRANDING- BOARDS-Its is dynamic tool which provide with the outlet name board with company name or logo.  CROSS PROMATION  PRODUCT/BRAND DISPLAY- P-O-G FORM (PLANO GRAM) QPDS (Quantity punch display schemes)
  • 35. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 35 3.2 Strategy: Strategy is the choice of direction and the action the company adopts to achieve the objectives in a competitive situation. A strategy explains what was the objective of the organization and how the organization go about to achieve its objective. • Ensure Sustainable, Profitable Growth in Beverages • Unleash the Power of "Power of One." • Rapidly Expand Our "Good-for-You" Portfolio • Continue to Deliver on Environmental Sustainability Goals and Commitments • Cherish PepsiCo Associates and Develop the Leadership to Sustain Growth • DISTRIBUTION STRATEGY • PROMOTION STRATEGY SYSTEM • Sales forecasting system • Order receiving system • Order execution system • Distribution sys- tem Card Account : We give the discount. Example: Free Bottle etc Key account :- It generally happens on hard volume if the sales are increasing then will give the discount. Example: Discount with yearly gift. Bar promotion – In this, we provide the benefits on a certain completion of target. Marketing mix modeling Marketing mix modeling (MMM) is a term of art for the use of statistical analysis such as multivariate regressions on sales and marketing time series data to estimate the impact of var- ious marketing tactics (marketing mix) on sales and then forecast the impact of future sets of tac- tics. It is often used to optimize advertising mix and promotional tactics with respect to sales revenue or profit.
  • 36. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 36 Chapter 4 RESEARCH METHODOLOGY
  • 37. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 37 4.1Objective of Research The main objective of the research was to now the company's position in the soft drink market by doing visi-purity & charging of every visi-cooler in P-O-G form.  To study survey of PepsiCo retailers on display effectiveness.  To come out with new attractive schemes to improve their service & quality.  To find out the most popular brand of PepsiCo.  To find out the satisfaction level of retailers.  To establish the market presence need to support sales goals and attract customers. SCOPE OF THE STUDY • The study focuses on retailers display pattern, the way they merchandise PepsiCo product to sell to their customers. • This research attempts to analyze the overall impact of PepsiCo policies towards retailers. • This study focuses to increase the sell of PepsiCo product with the help of visi-purity & charg- ing. • Its attempt to assess the popularity of execution of PepsiCo between the consumer & retailer. Research Methodology: This research involved a study, which was descriptive as well as explorative in nature it basically aims at gathering data . Type of Research:- Exploratory Research: Exploratory Research is main purposes would we to determine the approximate area where the problem lies and also to identify some attractive courses of action to solve it. The main purpose of this study is that the researcher can formulate a problem for more precise investigation or of the developing the working hypothesis from an operational point of view. Research process is flexible and unstructured. Sample is small and non-representative. This study includes extensive study of the organization and market survey of retailers to satisfy the objective. Data Sources: 1. Primary Data 2. Secondary Data
  • 38. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 38 1 Primary Data Collection: Sources from where firsthand information is gathered directly are called primary source and in- formation thus called primary data. In case of study the primary source are retailers. 2 Secondary Data Collection: Sources of secondary data are internet and company documents. Secondary data is used to know the soft drink industry and the information about the company. Questionnaire: Questionnaire consists of questions for retailers, which are of following types: a) Dichotomous questions that are of yes / no types. b) Multiple Choice questions c) Structured questions d) Close ended questions Sampling Method:- Sampling unit : Individual Retailer Sampling Method: Random Sampling Sample Size: 100 Retailers Sampling Plan: Questionnaire and personal interview Coverage: South Goa Duration: 1 Month Plans of Analysis: Systemic objective quantitative analysis of the contents through the questionnaire was done. De- tailed tables were developed showing the data collected from the respondents. From the table the percentages were calculated on the basis of which the data was analyzed. The various research measuring tools used are:  Questionnaire  Personal Interview  Tables  Percentage  Pie-charts  Bar-charts
  • 39. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 39 Chapter 5 Data analysis
  • 40. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 40 Collected data scanning the fallowing area south market in Goa 1 Fatorda market 2 Old market 3 Borda market 4 Old bus stand market 5 Benaulim market 6 Colva market 7 Vasco-de-Gama market 8 Qupeem market
  • 41. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 41 DATA ANALYSIS 1. Types of outlets - a) Convenience b) Grocery c) Eatery Objective: - To find out what kind of outlet is visited. Table.4.1 Outlet Types Types of Outlet Total no. of respondents Percentage Convenience 37 37% Grocery 19 19% Eatery 44 44% Total 100 100% Inference:-PepsiCo sells most of soft drinks through Eatery outlet. 37% 19% 44% 0% Table 4.1- Types of Outlets Convenience Grocery Eatery
  • 42. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 42 2. Did the advertisement affect the sales of your outlet? a) Effective- b) Not effective- Table.4.2To find out the advertisement effect on sales: Advertisement effect the sales of your outlet Total no. of respondents Percentage Effective 96 96% Not Effective 4 4% Total 100 100% Inference: It depicts that PepsiCo affect the sales of outlet through advertisement. 96% 4% 0% 0% Advertisement affect the sales of outlet Effective Not Effective
  • 43. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 43 3-How many times you faced the shortage of the popular brand of PepsiCo in season? Shortage of the brand in season Total no. of respondents Percentage 0 Times 72 72% 1 Times 10 10% 2 Times 14 14% More than 2 times 4 4% Total 100 100% Inference:-PepsiCo takes care that shortage is not faced by the retailers. 0 10 20 30 40 50 60 70 80 0 Times 1 Times 2 Times More than 2 times No. of times shortage faced Shortage of the popular brand in season
  • 44. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 44 4-Which types of schemes provided attract you?  Free bottles on crate  Monopoly discount  Brand display schemes  Target based benefit Scheme type Total no. of respondents Percentage Free Bottle on Crade 53 53% Monopoly discount 6 6% Brand display scheme 8 8% Target based benefit 33 33% Total 100 100% Inference:-Free bottle of scheme is majorly provided by PepsiCo. 53% 6% 8% 33% Types of Scheme Free Bottle on Crade Monopoly discount Brand display scheme Target based benefit
  • 45. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 45 5- No. of crade sell per day?  1 to2  2 to 4  4 to 6  More then 6 Table No. 4.5: No of crate sell per day Total no. of respondents Percentage 1 to 2 58 58% 2 to 4 31 31% 4 to 6 8 8% More than 6 3 3% Total 100 100% Inference: Majority of the retailers sell about 1-2 creates (24-48) bottles per day. 58% 31% 8% 3% No. of crade sell per day 1 to 2 2 to 4 4 to 6 More than 6
  • 46. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 46 6- Which type of cold drink does a consumer prefer most?  PepsiCo  Coca-cola  other Consumer preference towards Brand Total no. of respondents Percentage PepsiCo 52 52% Coca Cola 39 39% Other 9 9% Total 100 100% Inference: Majorly consumer prefer PepsiCo brand. 52% 39% 9% Consumer prefernce towards brand PepsiCo Coca Cola Other
  • 47. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 47 7 -Are all flavor of available during summer? All flavor available during season Total no. of respondents Percentage Yes 97 97% No 3 3% Total 100 100% Inference: The data depicts that all the flavors are available during the season. 97% 3% All flavor available during season Yes No
  • 48. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 48 8-Which flavor of the consumer prefer most between PepsiCo and Coke ? PEPSICO COKE  Pepsi cola Coke  Mountain dew Thumps Up  Miranda orange Fanta  Miranda lemon Limca  7up Sprit  Slice Mazza  Everest soda Kelly soda  Aquafina Kelly water Consumer Preference PepsiCo Consumer Preference Percentage Mountain Dew 14 Thumps Up 16 Pepsi Cola 17 Coke 14 Miranda Orange 3 Fanta 3 Miranda Lemon 2 Limca 4 7 Up 4 Sprite 3 Slice 6 Mazza 7 Everest Soda 2 Kelly Soda 2 Aquafina 2 Kelly Water 1 Inference:-There were very little difference between the competitors in terms of consumer pref- erence. 0 2 4 6 8 10 12 14 16 18 Mountain Dew PepsiCola Mirinda Orange Mirinda Lamon 7Up Slice Everest Soda Aqafina Pepsi Coke
  • 49. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 49 9-How much you are satisfied with PepsiCo product?  Fully satisfied  Partial satisfied  Not at all Satisfaction of product level Total no. of respondents Percentage Fully Satisfied 65 65% Partial Satisfied 33 33% Not at all 2 2% Total 100 100% Inference:-Almost 65 % respondents were fully satisfied with the PepsiCo brand. 65% 33% 2% Satisfaction of product level Fully Satisfied Partial Satisfied Not at all
  • 50. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 50 10- Would like the deal with PepsiCo Company in future?  Yes  No Deal with PepsiCo brand in future Total no. of respondents Percentage Yes 99 99% No 1 1% Total 100 100% Inference: all the respondents were in favor to deal with PepsiCo brand in future. 0 10 20 30 40 50 60 70 80 90 100 Yes No Deal with PepsiCo in Future
  • 51. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 51 11– Which factor affects the sales volume?  Advertisement  Schemes  Taste  Price Factor affect the sales volume Total no. of respondents Percentage Taste 45 45% Schemes 30 30% Advertisement 17 17% Price 8 8% Total 100 100% 0 5 10 15 20 25 30 35 40 45 Taste Schemes Advertisement Price Factor affect the sales volume
  • 52. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 52 12– Which type of visi cooler do you have?  Pepsi  Coke  Both Visi Cooler you have Total no. of respondents Percentage Pepsi 30 30% Coke 30 30% Taste 40 40% Inference:- Almost equal the consumers have the visi cooler with them 30% 30% 40% Visi Cooler You have Pepsi Coke Both
  • 53. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 53 Chapter-6 FINDINGS
  • 54. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 54 6.1Findings:-  From the survey we can conclude that PepsiCo sell most of its products through eatery and convenience shop.  Pepsi is the largest selling brand of PepsiCo in Goa city followed by Mountain Dew.  Many of the retailers in Goa city are having Visi Cooler given by PepsiCo.  The performance level of Visi Cooler given by PepsiCo is excellent.  Majority of the retailers sell about 2-4crates per day.  25% retailer display 2 to 4 crates in their outlet & 30 % retailer doesn’t display any crate in their outlet.  PepsiCo try to solve the problem of the retailers with in the duration of 1 to 2 days of time and they take care that the retailer does not face any shortage of any of the product.  Almost all the retailer are the opinion that they haven’t run out the stock and PepsiCo has delivered products quickly to them  Free bottles on crates and brand display schemes are most sought scheme by the PepsiCo retailers.  The behavior if PepsiCo officials are co-operative and friendly and the retailers are satis- fied with the execution done by the PepsiCo pre sales representative (PSR).  The sales of the PepsiCo products are high during April to June.  The advertisements done by PepsiCo have a huge impact on sales and the retailers are satisfied with the promotional techniques adopted by PepsiCo.
  • 55. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 55 CHAPTER-7 CONCLUSION
  • 56. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 56 7.1 Conclusion  PepsiCo is selling most of its products through eatery and convenience outlet; PepsiCo should try its sales through the other format of outlet.  As it is evident from the survey that only Pepsi and Mountain Dew are the highest selling brands; PepsiCo must focus on increasing the sales of Mirinda by offering the retailer’s handsome margin on it and by using more advertisement and promotion of this brand.  The sales of PepsiCo are high during the month of April to June, the sale of the product are comparatively low during the other season, therefore PepsiCo should come up with the innovative promotional technique to increase the sales during the off season or to maintain the uniform sale throughout the year.  PepsiCo should provide attractive display scheme to the retailers to motivate them to sell move PepsiCo products and promote it to the customer as their competitor are providing handsome amount of money to their retailers for proper display.  PepsiCo should maintain sufficient inventory of their product during the summer season to their manufacturing plant.  PepsiCo should take crucial step so that the Visi-Cooler given by them should be filled with PepsiCo products as much as possible, not with their local brand or competitors.  PepsiCo should encourage the retailers through innovative scheme and by arranging year- ly contest between the retailers for display.  The PepsiCo retailer should display the more crates within the premises of their shop so that it would be visible to the customer and it will lead to generate more sales in the out- let.  The amount on advertisement could be reduced, if emphasis is given on the strategies to have long term relationship with indirect channel partners who directly come in contact with the end-users.  The performance levels of the Visi Cooler provided by PepsiCo are of excellent quality.  It is not just enough to devise attractive schemes for the retailers; the company should al- so ensure that it is being implemented properly and retailers get what they promised off.  As the findings of the market survey show that many retailers deal with both Pepsi and Coke brands, PepsiCo has to keep in mind the stiff competition that there in the market while devising marketing strategies
  • 57. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 57 CHAPTER-8 SUGGESTIONS
  • 58. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 58 8.1 Suggestions  As it was found in the survey that in Fatorda, Boada, Benaulim the sale of Pepsi is very less and customers are complaining about their irregular service, therefore these areas should be more focused by keeping an eye on their distributors.  They should increase another distribution channel in this area as the market is very huge in this area.  Some customers are also complaining that the distributors are not giving them regular schemes, so the company should send a supervisor every after 6 months for the survey, to maintain good relationship with the outlets and also to find out if there is any problem in their service quality.  Though it is not found during the study, PepsiCo can provide brand display scheme and glow signboard in order to motivate them to sell and display more PepsiCo Product.  The damage product should be replaced as soon as possible.  The sign board should be provided to all retailers.  Another brand of cola flavor should have strong taste and more fizz so as to attract the customer who like thumps up more than pepsi.
  • 59. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 59 CHAPTER-9 LIMITATION
  • 60. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 60 9.1 Limitation of the study:  Since the product under study was consumer goods, which require a large sample to have a correct study, a sample size 100 respondents was too small for it. But time and money did not allow researcher to have large sample and also to manage a sample would also be difficult by researcher alone.  Mostly stress is given to primary data it was difficult to collect secondary data from the organization and distributors.  Some of the respondents were not co-operative and many of them seem to be having no interest.  The study has not intended on a very large scale, have the possibility of errors, which cannot be rule out.  It is impossible to find out all the problem faced by PepsiCo in a span of one month.  Area of collection was specified.  It was extremely difficult to persuade retailer to respond to the questionnaire.  The Company does not provide any financial assistance.  The time allowed for the project was short it was impossible to study deeply in that peri- od.
  • 61. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 61 CHAPTER 10 BIBLIOGHRAPHY
  • 62. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 62 10.1BIBLOGRAPHY Reference Books: 1. Assail H. Reed and Patton M. “MARKETING: principle & strategy Harcourt-Brace, Sydney 1995. 2. Kothari C.R. “research methodology” 2 n d edition, Vikas Publishing house 2004. 3. Kotler Philip and others , “Marketing Management”, A South Asian perspective, 13t h edition Pearson prentice hall (PPH), New Jersey, USA 2009. 4. Lamb. J.McDaniel “marketing” 4 t h edition, south-western college publishing, Cincinnati 1998. 5. Maheshwari SN &Maheshwari SK, “Accounting for Management” , 3r d edition, 2006, Vikas Publishing house. 6. Nargunkar Rajendra, “Marketing Research” 3 r d edition, The McGraw Hill Company, New Delhi 2008. 7. Zikmund and D’Amico M. “marketing”, 3r d edition, Tohn wiley and sons U.S.A.1989. Websites:  www.pepsicoindia.com  www.rjcorp.in  www.pepsi.com  www.pepsizone.com
  • 63. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 63 CHAPTER 11 Appendix (Questionnaire/Interview schedule)
  • 64. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 64 Questionnaire 1- Type of outlet? d) Convenience- e) Grocery- f) Eatery- 2-Did the advertisement affect the sales of your outlet? c) Effective- d) Not effective- 3- How many times you faced the shortages of the popular brand of PepsiCo in season?  0 times  1 times-  2 times-  More than two time- 4-which types of schemes provide by PepsiCo attract you?  Free bottles on crate  Monopoly discount  Brand display schemes  Target based benefit 5- How crate sale in a day?  1 to2-  2 to 4 -  4 to 6 -  More then 6 –
  • 65. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 65 6- Which type of cold drink does a consumer prefer most?  PepsiCo-  Coca-cola-  other 7-Are all flavor of available during summer?  Yes-  No- 8-which flavor of the consumer prefer most? PEPSICO COKE  Pepsi cola----------- -------------Coca cola  Mountain dew- ------------------Thump’s up  Miranda orange-------------------Fanta  Mirinda lamon ------------------Limca  7up---------------------------------Sprit  Slice-------------------------------Maaza  Everest soda----------------------Killey soda  Aquafina--------------------------Killey water 9-How much the satisfied with the PepsiCo product?  Fully satisfied  Partial satisfied  Not at all
  • 66. VARUN BEVERAGE (INTERNATIONAL) LTD Department of MBA, SIRT, Bhopal Page 66 10- Would like the deal with PepsiCo Company in future?  Yes-  No 11 – Which factor the effect sales volume?  Advertisement  Schemes-  Taste-  Price- 12 – Which type of visi cooler?  Pepsi-  Coke-  Both- 13- Most sold brand of PepsiCo-  Pepsi  7Up  Mountain Dew  Slice  Miranda

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