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  • 1. ANALYSIS OF PEPSI HOUSEHOLD PROGRAMME PEPSIAssignment Submitted towards the Partial Fulfillment of the requirement of the two-year full time Master Of Business Administration (MBA). Submitted by: VISHAB VEER SINGH RANA (MBA) 2007-2009 RAI BUSINESS SCHOOL A-41, MCIE, MATHURA ROAD, NEWDELHI- 110044 TEL(011) 26991300, 51560000 E-MAIL: delhi@raifoundation.orgVishab veer singh rana
  • 2. ANALYSIS OF PEPSI HOUSEHOLD PROGRAMME WEBSITE: www. raifoundation.org TABLE OF CONTENTS • INTRODUCTION • PEPSI PROFILE 1. BIRTH PLACE OF PEPSI 2. INDUSTRY STRUCTURE 3. PURCHASE AND CONSUMPTION PATTERN • COMMON TERMS USED IN PEPSI-COLA SYSTEM • THE HIERARCHY OF MARKETING DEPARTMENT • JAIPURIA & PEPSI • CORPORATE CITIZENSHIP • PEPSI 10 STEP CALL • PUNCHLINES • PUNCHLINES • SWOT ANALYSIS • S. T. P. ANALYSIS • MARKETING MIXVishab veer singh rana
  • 3. ANALYSIS OF PEPSI HOUSEHOLD PROGRAMME • BIBLIOGRAPHY INTRODUCTIONPepsico is a world leader in convenient foods and beverages, with revenues of about $27billion and over 143,000 employees. The company consists of the snacks business of Frito-lay North America and the beverage and food business of Pepsico Beverages and foods,which includes Pepsi Co Beverages North America (Pepsi-Cola North America andGatorade/Tropicana North America) and Quaker Foods North America. Pepsi co success isthe result of superior products, high standards of performance, distinctive competitivestrategies and high integrity of our people Pepsi Co ’s beverages business was founded at theturn of the country by Caleb Bradham, a new Bern, North Carolina druggist, who firstformulated Pepsi-Cola. Today consumers spend about $33 billion on Pepsi-Cola beverages.Brand Pepsi and other Pepsi-Cola products----including Diet Pepsi, Pepsi-One, MountainDew, Slice, Sierra Mist and Mug brands-account for nearly one-third of total soft drinks inthe United States, a consumer market totaling about $ 60 billion.The main purpose of the strengthening of new mirinda lemon is to compete with itscompetitor, Coca- cola product Limca and increase its market share.This project deals with the strengthening of new mirinda lemon of VARUN Beverages inNOIDA.Vishab veer singh rana
  • 4. ANALYSIS OF PEPSI HOUSEHOLD PROGRAMME PEPSI PROFILE BIRTH PLACE OF PEPSINEW BERN, NORTH CAROLINA COAST----- on the spot in his pharmacy, Caleb bardham invented “brad’s drink which later he planted as Pepsi-cola.1965Donald M. Kendall. President and Chief Executive Officer op Pepsi-Cola and HermanW.Lay, Chairman and Chief Executive Officer of Frito-Lay found 1965 Pepsi co, Inc.,through the merger of two companies. Caleb Bradham, a New Bern, N.C. pharmacist, createdPepsi –Cola in the late 1890. Frito- lay, Inc. was formed by the 1961 merger of the FritoCompany, founded by Elmer Doolin in 1932, and the H.W. Lay Company, founded by thenew company; Donald M. Kendall is president and chief executive officer. The newcompany reports sales of $510 million and has 19,000 employees.Major products of the new companies are:Pepsi-Cola Company --- Pepsi –Cola (formulated in 1898), Diet Pepsi (1964) and MountainDew (introduced by the Corporation in 1948).Frito-Lay, Inc.—b Fritos brand corn chips (crested by Elmer Doolin in 1932) Lay’s brandPotato chips (created by Herman W. Lay in 1938), Cheetos brand cheese flavored snacksVishab veer singh rana
  • 5. ANALYSIS OF PEPSI HOUSEHOLD PROGRAMME(1948), Ruffles brand potato chips (1958) and Rold Gold brand pretzels (acquired 1961)Mountain Dew launches its first campai”Yahoo Mountain Dew---- it’ll tickle your innards.”1969Bold, modern Pepsi-Cola packing using red, white and blue is introduced. “You’ve got a lotto live, Pepsi’s got a lot to give,” becomes the advertising themeMountain Dew changes its slogan to “ Get that Barefoot Feelin’Drinkin’Mountain Dew”1970MOUNTAIN Dew changes its slogan to “ Get that Barefoot feel in ‘drink in’ MountainDew”PepsiCo moves from New York City to new world headquarters in Purchase, N. Y.. The newcorporate headquarters feature a building by one America’s foremost architects, EdwardDURRELL stone (1902-1978) set on a campus of 144 acres amid an outdoor sculpturegarden.Pepsi introduces the industry’s first two-litter bottle.Pepsi is the first company to respond to consumer preference with lightweight, recyclable,plastic bottles.1972Vishab veer singh rana
  • 6. ANALYSIS OF PEPSI HOUSEHOLD PROGRAMMEMountain Dew, acquired by Pepsi- Cola in 1964, switches its advertising and packinggraphics from to action –oriented scenes. Sales climb and Mountain Dew will become one ofthe 10 best – selling soft drinks in the United States.Don Kendall announces agreement Pepsi-Cola the first foreign product sold in the thenU.S.S.R. PepsiCo is given exclusive rights to import Stolichnaya Russian vodka in the U.S.1974PepsiCo sales pass the $2 billion mark Pepsi- Cola becomes the first American consumerproduct to be produced, marketed and sold in the firmer Soviet Union.1980PepsiCo Food Service International (PFSI) is formed to focus on overseas development ofrestaurants. PepsiCo now has 111,000 employees first presentation of the internationalDonald M. Kendall Bottler-of –the-year Award.1981PepsiCo passes $7 billion in sales.1982Pepsi Free and Diet Pepsi Free, the first major brand caffeine-free colas, are introducedInauguration of the first Pepsi-Cola operation in China.1985PepsiCo is now the largest company in the beverages industry. The has revenues of morethan $7.5 billion, more than 137,000 employees. Pepsi-Cola products are available in nearlyVishab veer singh rana
  • 7. ANALYSIS OF PEPSI HOUSEHOLD PROGRAMME150 countries and territories around the world. Snack food operations are in 10 internationalmarkets.1986PepsiCo purchases 7-UP International, the third largest franchise soft drink operation outsidethe United States.PepsiCo passes $10 billion in sales.Dew it Country Cool,”becomes new slogan for Mountain Dew”.Diet Pepsi –Cola acquires Mug Root Beer.Pepsi gets a new logo. Pepsi –Cola sponsors the first Western- produced consumercommercial in the Soviet Union, appearing during the Goodwill Games.1988Pepsi –Cola international enters a landmark joint venture agreement in India.1989PepsiCo enters top 25 of fortune 500 ranking with sales of $15.4 billion, it is number 23.The company has more than 300,000 employees.1991PepsiCo acquires an equity interest in Wedel SA, the leading manufacturer of chocolate andconfectionary in Poland Snacks operation in 23 countries.Pepsi-Cola introduces a new logo, its eighth in 93 years. Advertising features rap singer MCHammer.1994Vishab veer singh rana
  • 8. ANALYSIS OF PEPSI HOUSEHOLD PROGRAMMEPepsi-Cola is the first major soft drink maker to begin producing and distributing its productin Vietnam.Pepsi-Cola launches its sports drink All Sort. It is sold in 2001.Pepsi –Cola International acquires Indian company, its first big bottling plant in Bombay.Pepsi –Co sales reach $ 30.4 billion. There are 470,000 employees worldwide, makingPepsiCo the third largest employer.1995Pepsi –Cola introduces “ Nothing else is a Pepsi” theme line.Pepsi –Cola is top ad scorer in Super Bowl.Mountain Dew sponsors the Grammy Awards. Theme line is “ Been There, Done That, TriedThat.”The Pepsi Lipton Tea Partnership debuts new ad campaign emphasizing, “There’s only oneOriginal.”Pepsi –Cola introduces Smooth Moos Smoothies, a line of low –fat dairy shakes.7UP International launches 7UPIceCola, a new clear cola.1996Mountain Dew launches a massive beeper network called “The Mountain Dew ExtremeNetwork.”Pepsi Co, Inc. and Lucas film Ltd. announce the largest promotional alliance in entertainmenthistory, linking existing and future Star Wars series with PepsiCo beverages, snack foods andrestaurant brands worldwide.Vishab veer singh rana
  • 9. ANALYSIS OF PEPSI HOUSEHOLD PROGRAMMEPepsi Cola and MTV establish a partnership to develop international programming, crosspromotions, marketing tie-ins and specials events.1997Pepsi –Cola introduces new advertising campaign with the theme “Generation Next.”Pepsi –Cola North American bottling operations become a separate unit called The Pepsi-Cola Bottling Co.National rollout of Aquafina bottled water.Pepsi –Cola celebrates 100th Anniversary with first worldwide bottlers’ conference, held inHawaii. The event is held during the same time as first bottler’s conference.1998Pepsi –Cola introduce two –liter plastic bottle with built in “grip handle” that makes it easierto grip and pour.”Pepsi introduce new look called the “Globe” which prominently features a 3-dimensiponalGlobe against a blue ice backdrop.PepsiCo acquires Tropicana Products from Seagram Company Ltd., the biggest acquisitionever undertaken by PepsiCo. Anthony Rossi founded Tropicana in 1947. its major brand isTropicana Pure Premium Juices.In March, the Pepsi Bottling Group, the world’s largest Pepsi bottler, begins trading on theNew York Stock Exchange. It is listed under the symbol PBG. The $ 3.2 billon publicoffering is among the biggest initial public offerings in stock market history.1999Vishab veer singh rana
  • 10. ANALYSIS OF PEPSI HOUSEHOLD PROGRAMMEPepsi launches “The Joy of Colas” advertising campaign.2000Pepsi-Cola revivers it’s “Pepsi Challenge” advertising campaign. Challenge includes PepsiOne Diet Coke as well as cola.Pepsi-Cola teams up with Yahoo Inc. the biggest web navigation company, in a multimediamarketing campaign aimed at teens and young adults.Pepsi-Cola launches” Sierra Mist” a caffeine-free, lemon/lime soda.2001Pepsi-Cola Company launches Dole single –server juices in vending machines, coolers andother retail outlets throughout the United States.Pepsi-Cola’s flagship brand will have NEW TAGLINE,” The Joy Of Pepsi.”Pepsi-Cola launches the bold new Mountain Dew code Red nationwide. It is MountainDew’s first line extension since the introduction of the Diet Mountain Dew in 1988.PepsiCo introduces a new corporate logo.Diet Sierra Mist is introduced.2002Diet Pepsi has a new lookAquafina debuts new line of great-tasting enhanced water. Aquafina Essentials target active,health-conscious adults in four lightly sweetened varieties including B-Power, Calcium+,Daily C and Multi-Vin 20-oz bottles.Pepsi Brand Pepsi has a new look.Vishab veer singh rana
  • 11. ANALYSIS OF PEPSI HOUSEHOLD PROGRAMMEPepsiCo publishes Health and Wellness Philosophy. (on pepsico.com)PepsiCo introduces Marathon Kids, a program that encourages kids and their families to bemore physically active, the program debuts in Dallas, TX.2003Pepsi-Cola launches Sierra Mist nationally.Pepsi announces plans to launch Mt. Dew Livewire, an orange drink, this summerPepsi-Cola sings an exclusive four-year sponsorship deal with the Canadian HockeyAssociation, making Pepsi the official soft drink.Pepsi announces four-year sponsorship agreement with the UK Football Association.“Pepsi Stuff” Campaign kicks-off in Canada.PepsiCo creates PepsiCo International, the business that will unite all international snack,beverages and food units in an effort to drive faster growth and improved profitability aroundthe world.2004Pepsi-Cola to launch Pepsi Edge, the first full-flavored cola with 50% less sugar,carbohydrates and calories than regular cola.2005PepsiCo relanuched Mirind Lemon (ginger flavored).The story still not end---------------------------Vishab veer singh rana
  • 12. ANALYSIS OF PEPSI HOUSEHOLD PROGRAMME PEPSI PROFILEINDUSTRY STRUCTURE:The three main teams in the in the production and the distribution of the carbonated softdrinks are the concentrate producers, the bottlers and the retailers who are actuallyresponsible for the sales of the product. The concentrate producers produce the concentrateand them sell it to the bottlers, who adds a sweetener to the carbonated water and then pack itin the bottles and cans. These bottlers can be either the Pepsi itself or the franchisees whowork on behalf of Pepsi. One half of the sale of the Pepsi is through the company ownedbottlers (COBO) and other half of the sale is through the franchisees bottlers (FOBO).FOBO’s had the right to the product and then sells it in the defined territory and is notallowed to market the competitive brand. Then through the distribution channel the productreaches to the retailer who finally sells the product to the consumers.Vishab veer singh rana
  • 13. ANALYSIS OF PEPSI HOUSEHOLD PROGRAMMEThe principle retail outlets for the CSD are the supermarkets, convenience stores, fountainservices and thousands of small outlets.PURCHASE AND CONSUMPTION PATTERNIndustry research suggests that the purchase of the soft drink is unplanned, i.e. sometimes itis more and sometimes it is less depending on the demand in the market, the schemes that areprovided to the retailers, the displays provided, the incentives given and on the relationshipof the salesman and the retailers.The sale of soft drinks is a seasonal affair. The sale increase tremendously during the summerseason and falls down during the winter season.Vishab veer singh rana
  • 14. ANALYSIS OF PEPSI HOUSEHOLD PROGRAMMECOMMON TERMS USED IN PEPSI-COLA SYSTEMRGB (refilled glass bottles): This term is generally used for the 300 and 200 ml glass bottles.Bottle: This term refers to the entire bottling group.Can: A still of aluminum container in which the beverages are packaged for sale.Crate: A durable box made of durable plastic (thermostatic plastic) which is used to containthe bottles.Consumer: Someone who consumes the products.Cooler: Mechanically refrigerated unit that cools the glass bottles and the pet bottles.Vishab veer singh rana
  • 15. ANALYSIS OF PEPSI HOUSEHOLD PROGRAMMECrown: The steel closure, which seals the bottles.Customer: A retailer or dealer who sell or serves products directly to the consumer.Route: The sequence of shops and the retail shops that the salesman has to cover every day inorder to complete his job.Whole Seller: A business entity, which buys products from the producers for resale to theretailers. They have their own defined routes, the salesman from the company are notallowed to cover them.THE HIERACHY OF MAREETING DEPATMENT CHAIRMAN UNIT MANAGER TDM MDM Territory development Marketing development manager manager MDC Marketing ADC CE development Account development Customer coordinator coordinator executiveVishab veer singh rana
  • 16. ANALYSIS OF PEPSI HOUSEHOLD PROGRAMME MDEMarketingdevelopmentexecutive SALESMAN ROUTE AGENT JAIPURIA & PEPSI The Jaipuria Group, since 1975 has been a renowned and reputed name in the field of soft drink bottling. Since its foray into this field the Group has bottled almost all the major soft drink brands that existed in India like Coca Cola, Thumps up, Limca and Pepsi etc. Today the Jaipuria Group commands almost 60% of the Pepsi Business in India, with an impressive turnover and plants equipped with the latest technology. The Jaipuria Group can boast of being the biggest name in the country, when it comes to the soft drink manufacturing. The country The Group has a major presence in most part of the country, with its 22 fully operational plants running successfully across. Vishab veer singh rana
  • 17. ANALYSIS OF PEPSI HOUSEHOLD PROGRAMME SHAREHOLDERSPepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange in theUnited States. The company is also listed on the Amsterdam, Chicago, Swiss and Tokyostock exchanges. PepsiCo has consistently paid cash dividends since the corporation wasfounded. CORPORATE CITIZENSHIPPepsiCo believes that as a corporate citizen, it has a responsibility to contribute to the qualityof life in our communities. This philosophy is put into action through support of socialagencies, projects and programs. The scope of this support is extensive – ranging fromsponsorship of local programs and support of employee volunteer activities, to contributionsVishab veer singh rana
  • 18. ANALYSIS OF PEPSI HOUSEHOLD PROGRAMMEof time, talent and funds to programs of national impact. Each division is responsible for itsown program. PEPSI 10 STEP CALL:  Greet the customer by name.  Collect and sort all empties from the storeroom.  Communicate marketing programme and scheme to the customer.  Leverage the route book and refill the empties.  Arrange warm product displays (in the shop).  Charge cooler, ensure 100% purity.  Arrange crate display outside the outlet.  Put up POS at eye level.  Prepare cash memo, collect cash and fill up the route book.  Thanks the customer.Vishab veer singh rana
  • 19. ANALYSIS OF PEPSI HOUSEHOLD PROGRAMME PUNCHLINES“YEH DIL MAANGE MORE.”“JOR KA JHATKA DHIRE SE LAGE”---MIRINDA ORANGE“GOOD FOOD TASTES BETTER WITH PEPSI”---PEPSI“CHEETAH BHI PITA HAI”---MOUNTAIN DEW“ LEMON KI TAAZGI, ADRAK MAAR KE”---MIRINDA LEMON“TERI TO GAAYE”---PEPSI WORLD CUP“ HAMMES MILNE KI PYASS HAI”----PEPSI CONTEST“NOTHING OFFICAL ABOUT IT”----PEPSI“ YEH PYASS HAI BADI”----PEPSIVishab veer singh rana
  • 20. ANALYSIS OF PEPSI HOUSEHOLD PROGRAMME“OYE BUBLY—OYE BUBLY”----PEPSI“ ANDAAZ SABSE COOL”-----7UP SWOT ANALYSIS : 1. STRENGTH  MULTY NATIONAL COMPANY  STRONG MARKETING STRATEGY  2 IN 1 BENEFITVishab veer singh rana
  • 21. ANALYSIS OF PEPSI HOUSEHOLD PROGRAMME2. WEAKNESS  NON-AVAILABILTY OF PRODUCTS.  SLOW AFTER SALE SERVICES.  POOR DISTRIBUTION OF THE SCHEMES.  PROMISES ARE NOT FULFILED3.OPPORTUNITY  GOOD BRAND AWARENESS IN INDIA  IT CAN ATTRACT THE MORE CONSUMERES BECAUSE THIS IS THE ONLY ONE COLD DRINK IN THE MARKET, WHICH HAS TWO FLAVORS IN ONE BOTTLE.  SUMMER SEASON IS ITSELF A GREAT OPPORTUNITY FOR NEW MIRINDA LEMON TO INHANCE THE MARKET.Vishab veer singh rana
  • 22. ANALYSIS OF PEPSI HOUSEHOLD PROGRAMME4.THREATS  STRONG COMPETITOR  EXISTING FLAVORS. S. T. P. ANALYSISSEGMENTATION: The company segments its product according to geographical means. Cold drink wassegmentation in Delhi (NCR) Pepsi aims at expending their how in all parts in India.TARGET: Basic aim of the company is to launch the flavored cold drink and attract all generation inurban as well as rural areas.Vishab veer singh rana
  • 23. ANALYSIS OF PEPSI HOUSEHOLD PROGRAMME Child and teenager generation will be lured to the product on the basis of flavor andfeatures.POSITIONING: The mission of the Pepsi is towards reaching to the last consumer and leaving name in thierminds. The company emphasis on few areas: 1) Easy availability and reliability with zero resistance for the product to reach the customer. 2) Price is the consideration with offer and easy finance scheme. 3) Trading of proper marketing excellence for increasing the company sale. MARKETING MIXPRODUCTSPepsi makes CARBONATED SOFT DRINKS i e.cola and non-cola flavor.CORE BRANDS:  PEPSI  NEW MIRINDA LEMONVishab veer singh rana
  • 24. ANALYSIS OF PEPSI HOUSEHOLD PROGRAMME  MIRINDA ORANGE  SLICE  MOUNTAIN DEW  7UP  AQUAFINA  SODAPACKAGESTwo types: single serve and multi serve67 packages sizes and types.Materials: glass, plastics, cans, syrup.Packages may be returnable or non-returnable. PRICINGNEW MIRINDA LEMON200 ml Rs. 8300 ml Rs10500 ml Rs. 202 l. Rs. 50Vishab veer singh rana
  • 25. ANALYSIS OF PEPSI HOUSEHOLD PROGRAMMEPROMOTIONPromotion are basically those activities, which are board in aim and scope which may be inform of prize, price coupons, premiums, contests or discounts promotions usually offer theconsumer a special reason for buying. Varun Beverage Noida does its sales promotionthrough various types of schemes such as daily, monthly, annual schemes, merchandising ofmaterials, and add promotion BIBLIOGRAPHYBooks Referred1) Marketing research Naresh K. Malhotra2) Marketing Philip Kotler3) Marketing management Rajan Saxena4) Statics for management Lennin & Rubin5) Quantitative methods B.M. AggarwalInternet WebsitesVishab veer singh rana
  • 26. ANALYSIS OF PEPSI HOUSEHOLD PROGRAMMEwww.pbg.comwww.pepsiworld.comwww.pepsico.comwww.rkj.comwww.jaipuriya.comwww.pepsiamerica.comwww.goole.comwww.coke.comVishab veer singh rana