A project report on survey of retailer’s and consumer of soft drinks

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A project report on survey of retailer’s and consumer of soft drinks

A project report on survey of retailer’s and consumer of soft drinks

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  • 1. A<br />PROJECT REPORT<br />ON<br />SURVEY OF RETAILER’S<br />&<br />CONSUMER OF SOFT DRINKS<br />Under Guidance of :<br /> <br /> <br /> <br /> <br /> <br /> Submitted By:-<br /> <br /> <br /> <br /> <br /> <br />A<br />PROJECT REPORT<br />ON<br />SURVEY OF RETAILER’S<br />&<br />CONSUMER OF SOFT DRINKS <br />ICFAI UNIVERSITY JHARKHAND<br />NATIONAL COLLEGE<br />RANCHI<br />SUBMITED BY : <br />ENROLLMENT NO: <br />COURSE : <br /> <br /> <br />PREFACE <br />Practical training I considered to be an essential part of all institution and those who are aspiring for (BBA)this project is done in field of marketing.<br />As aspect of Management education which is receiving attending of the evolution of the practical training is to be bring actual environment in touch of Business Management , It is rigidly accepted that the theory widen one’s thinking viz.Concept of Marketing philosophies , but practice indicates the modern marketing is used widely in selling a variety of products. <br />This project works has been done under the kind permission of distributors of Jamshedpur.<br />I have done my summer training in Jamshedpur under the supervision of the executives of SMV Beverage Pvt. Ltd.<br />This is Franchise owned bottling plant of PepsiCo India Limited. The bottling plant is located at Adityapur Industrial Area. (Adityapur)<br />This report give,true picture of the sales of Pepsi’s product ,Since I have the training in Jamshedpur, hence the result of study is particularly in Jamshedpur. <br />DECLARATION<br />I, ………………. here by declare that the project report written and submitted to S.M.V.BEVERAGES PVT.LTD.by me is my own and its equal copy has not been reproduced to any other institution published anywhere else.<br />I understand that such reproducing is liable for punishment in any way the Insitituion fit.<br />Place: <br />Date : <br /> <br />ACKNOWLEDGEMENT<br /> <br />There is always a sense of gratitude one expresses to others for the helpful and needy service they render during all phases of life. I am doing this training with the help of different personalities. I wish to express my gratitude towards all of them.<br />It gives me immense pleasure to express my deep regards and sincere sense of gratitude to …………………………. for his guidance throughout the training I am undergoing. Thank you sir for your able and worthy guidance. I would also like to thank ……………………………… for their support which helped me throughout the training I am undergoing.<br />I would also like to thank my teacher …………………. for steering my confidence and capability for giving me insight into training by giving me exposure to the arena of competitive and real world.<br />Lastly I would like to thanks my parents and friends for their constant support during the training.<br /> CONTENT<br />EXECUTIVE SUMMARY<br />3C REPORT<br />
    • HISTORY OF PEPSI
    • 2. SMV BEVERAGES Ltd.
    • 3. STRUCTURE OF ORGANIZATION
    • 4. PRODUCT
    • 5. PRODUCTION PROCESS
    • 6. CUSTOMER
    • 7. COMPETITOR
    OBJECTIVE OF PROJECT<br />METHODOLOGY<br />QUESTTIONAIRE<br />PROBLEM FACED<br />MARKET SURVEY<br />DEALER SURVEY<br />ADVERTISEMENT<br />PEPSI PROMOTION<br />MARKET SHARE<br />DATA COLLECTED<br />DATA ANALYSIS<br />FINDINGS<br />CONCLUSION<br />RECOMMENDATION<br />BIBLIOGRAPHY<br /> CONTENT<br />EXECUTIVE SUMMARY<br />3C REPORT<br />OBJECTIVE OF PROJECT<br />METHODOLOGY<br />QUESTTIONAIRE<br />PROBLEM FACED<br />MARKET SURVEY<br />DEALER SURVEY<br />ADVERTISEMENT<br />PEPSI PROMOTION<br />MARKET SHARE<br />DATA ANALYSIS<br />FINDINGS<br />SWOT ANALYSIS<br />CONCLUSION<br />RECOMMENDATION<br />BIBLIOGRAPHY<br />Executive Summary<br />This project is mainly based on the survey of different localities as why Pepsi is the taste of of different customers, who are the competitors of pepsi and what is the position of pepsi in the market. We found that Coca Cola is the only competitor of pepsi. After 2002 pepsi os leading very far as compared to it’s competitor. The demand of pepsi is very high in the market. Coke’s basic strength is it’s brand name but pepsi by it’s new ideas in promoting it’s brand, good packaging of it’s products and above all the taste makes it No. 1 in the market.<br />Analysis of pepsi and dealer are done to get the information about the basic idea of the position of pepsi in comsumer and retailer.<br /> HISTORY OF PEPSICO<br />
    • IN THE YEAR 1898, ONE OF CALEB’S FORMULATION, KNOWN AS “BRAD’S DRINK”, A COMBINATION OF CARBONATED WATER, SUGAR VANILLA, RARE OILS AND COLA NUTS IS RENAMED “PEPSI COLA” ON AUGUST 28, 1898. PEPSI COLA RECEIVES ITS FIRST LOGO.
    • 14. IN 1902, BR ADHAM APPLIES FOR A TRADEMARK WITH THE U.S. PATENT OFFICE WASHINGTON D.C AND FORMS THE FIRST PEPSI COLA COMPANY
    • 15. IN 1905, PEPSI COLA’S FIRST BOTTLING FRANCHISES ARE ESTABLISHED IN CHARLOTTE AND DURHAM, COMPETITIVE COLAS.
    • 16. IN 1941, THE NEW YORK STOCK EXCHANGE TRADES PEPSI’S STOCK FOR THE FIRST TIME. IN SUPPORT OF THE WAR EFFORT, PEPSI BOTTLE CROWN COLOUR CHANGE TO RED WHITE AND BLUE.
    • 17. IN 1960, YOUNG ADULTS BECOME THE TARGET CONSUMERS AND PEPSI’S ADVERTISING KEEPS PACE WITH “NOW IT’S PEPSI, FOR THOSE WHO THINK YOUNG”.
    • 18. IN 1970, PEPSI INTRODUCES THE INDUSTRY’S FIRST TWO (2)-LITERS BOTTLES. PEPSI IS ALSO THE FIRST COMPANY TO RESPOND TO CONSUMER PREFERENCE WITH LIGHT – WEIGHT, REOYCLABLE, PLASTIC BOTTLES.
    • 19. IN 1984, PEPSI ADVERTISING TAKES A DRAMATICS TURN AS PEPSI BECOMES “THE CHOICE OF A NEW GENERATION.
    • 20. IN 1991,PEPSI INTRODUCES THE FIRST BEVERAGES BOTTLES CONTAINING RECYCLED POLYETHYLENETEREPHY THALATE (OR PET) INTO THE MARKET PLACES. THE DEVELOPMENT MARKS THE FIRST TIME RECYCLED PLASTIC IS USED IN DIRECT CONTACT WITH FOOD IN PACKAGING.
    • 21. IN 1992, PEPSI COLA AND LIPTON TEA PARTNERSHIP IS FORMED. PEPSI WILL DISTRIBUT SINGLE SERVE LIPTON ORIGINAL AND LIPTON BRISK PRODUCTS.
    • 22. IN 1994, PEPSI -FOOD INTERNATIONAL AND PEPSI -COLA INTERNATIONAL MERGE, CREATING THE PEPSICO FOODS AND BEVERAGE COMPANY.
    • 23. IN 1997, PEPSICO ANNOUNCES THAT IT WILL SPIN OFF ITS RESTAURANTD DIVISION TO FORM TRICON GLOBAL RESTAURANT, INC. INCLUDING PIZZAHUT, TACO BELL AND KFC. IT WILL BE THE LARGEST RESTAURENT COMPANY IN THE WORLD IN UNITS AND SECOND LARGEST IN SALES.
    • 24. IN 1998, PEPSI CELEBRATES ITS 100 th ANNIVERSARY.
    • 25. IN 2006, PEPSICO ACQUIRED IZZE BEVERAGE COMPANYN NAKED JUICE AND STACYS PITA CHIP COMPANY IN THE US, STAR FOOD IN POLAND, AND BLUEBIRD FOOD IN NEW ZELAND. IT HAS EXPANDED ITS PRESENCE IN THE NON-CARBONATED DRINKS AS WELL AS SNACKS.
    • 26. IN 2006, THE COMPANYS VOLUME GREW BY 5.5%, COMPARED WITH 2005 IN 2007, THE COMPANY PLANS TO EXPAND ITS MARKET SHARE THROUGH FURTHER ACQUISITION AND JOINT VENTURES.
    SMV BEVERAGES LTD.<br />S.M.V. Beverage Pvt. Ltd, Adityapur, (Jamshedpur) a medium sector enterprise, located amidst beautiful surroundings, on the TATA Kandra road in the Adityapur Industrial Area, and producing PEPSI range of bottled soft drinks, viz. Pepsi, 7 Up, Mirinda, Teem, Mirinda Lemon, Mirinda Apple and Lehar Slice and had become a household word in the Jharkhand State symbolizing achievement and advancement over the years.<br />Steel City Beverages was established in 1967 and production commenced in March 1969. At the very outset the company installed state the art machines and technology, for the production and bottling of soft drinks. The bottling plat with a capacity of produce bottle 220 per minute is totally automatic and also had a modern state of the art inter mix machine for binging forth the right blend of flavors. The company continuous to adopt and innovate technology in keeping with its policy of constant quality improvements. With the advent Pepsi Food Limited for the production and sales of Pepsi range of soft drinks for Jharkhand.<br />The company symbolizes self reliant in technology and ranked as the Best bottling company in the country in terms of Quality, Efficiency, Sale, Productivity and KRD. Till 1998, it was under the guidance of its Chairperson, Smt. Kusum Kamani and the able stewardship of its Managing Director, Shri. Nakul Kamani, the Co. has consistently bagged on numerous occasions, awards for Quality Assurance and Productivity, in 1993 it bagged top honors for being the best Quality conscious Plat amongst all Pepsi Bottling companies in India.<br />In March 1999, Steel City Beverages Ltd. was taken over by Mr. S. K. Jaipuria from Mr. N.D. Kamani, along with Rushabh Marketing Ltd., a marketing unit. Mr. S.K. Jaipuria started running this plant very successfully. He was very much enthusiastic to increase the production and sale and to capture the whole market of Jharkhand. He established another plant in the name of SMV Beverages (Jsr) and increased the production from this new plant. The capacity of this new plant is 600 bottles per minute. Simultaneously, another marketing, company came up in the name of Hyderabad Marketing Company, Which is catering the need of whole of Jharkhand state.<br />The Company’s highly sophisticated plant and quality control laboratory along with the dedication and enterprise of its employees is more than evenly matched by the management’s sense of understanding and compassion that has insured the company’s progress with every passing day.<br />The company has a sale of more than 24 million bottles. It has maintained and nurtured a vast network of distribution for its product in Jharkhand and currently holds way over more than 50% of the states consumer soft drinks market with an estimated growth annual turnover of over Rs. 10 corers. The company is currently in pursuit of the coveted ISO9002, which it is confident of achieving and would hence become the first food product factory in India to do so.<br />STRUCTURE OF THE ORGANIZATION<br />For the every concern a structure is necessary on which the complete organization should be founded. To have a structure is not a choice of the organizer. The choice is only of the form and pattern of the organization. Planned organizational structure may be proved logical clear – cut and streamlined in order to meet the present requirements. Otherwise it will merely be a makeshift arrangement and the management in rendered difficult and ineffective because organizational structure affects everyone in the organization. A good organizational structure facilitates efficient management and the operation of enterprise and it encourages growth. It helps organization to reach it’s predetermined goal.<br />In order to make the organizational structure more effectible one structure that can meet the demand of various factors namely environment, technology, size and people. SMV Beverages (Jsr) has duly considered these factors to build and efficient organization structure. As it is a medium scale enterprise and fully automatic, the manpower requirement is less. Hence, like any contemporary company, it has adopted a flat structure.<br />Following are the major features of the organizational structure of SMV Beverages Ltd.<br />Clear lines of authority.<br />Adequate delegation of authority.<br />Minimum Managerial skill level.<br />Unity of Directors.<br />Applications of ultimate responsibility.<br />Span of control.<br />Simplicity.<br />Flexibility.<br />Due consideration for top groups.<br />SMV Beverages (Jsr) has a management board headed by its’ unit manger & Director Mr. P.S. Kumar. He is responsible for overall policies regarding managerial decisions and all the executive functions. He looks after all the functional departments like productions, Sales, account, personnel & purchase. Every department is headed by their respective managers who sends reports to the unit manager and are responsible to him in every sense of working.<br />The Plant Manager is the head of the production department. He looks after production i.e. bottling process, inspection, and storage of new materials and maintenance of the plant as a whole. He also Heads the quality control department through quality control manager.<br />The controller of accounts heads the accounts department; under him there is a chief accountant. The purchase officer is in charge of all purchase activity of concern. PAC (Product availability Co-ordinator) is in charge of shipping department, coolers and PMX.<br />Personnel department is headed by the personnel manager and looks after the function of administration, industrial relation, legal jobs, security welfare etc.<br />The HMC Hyderabad Marketing Company In these two units, the Head of Sale and Marketing is in charge of all the marketing activities i.e. sales promotion, publicity, advertisement, market survey, and shipping. Though his main function is to have a control over the outlets distribution, Sales Manager is assisted by sales executive and sale supervisor.<br />PRODUCT<br />PRODUCT IN JAMSHEDPUR<br />PRODUCTION PROCESS<br />The bottling process at STEEL CITY BEVERAGES is automatic. The various units of this plant are:<br />WATER TREATMENT UNIT<br />Water in the STEEL CITY BEVERAGES LTD. Come from Sitarampur dam and is stored in a reservoir. Before ensuring production, this raw water is treated in the water treatment plant.The process involved is known as coagulation process. Main chemicals, which are used, are ferrous Sulphate (FeSo4), calcium hydroxide (CaOH) and chlorine (Cl). Initially water is treated with all these chemicals in the treatment tank and becomes turbid. All impurities get settled at the base and remove the turbidity. Next it is sent to a sand filter to remove the turbidity. Then it is sent to the CARBON TANK where all the microorganism and chlorine is removed the water so obtained is completely free from any king of impurity and is ready to be used in further processing the maximum alkalinity is maintained until it is as much as 50 p.p.m.<br />ROLL CONVEYOR<br />This automatic operation machine takes the dirty empty bottles for washing. A person is required to put the empty bottles on the roller conveyor.<br />CLEANING (THE BOTTLES) UNIT<br />Used bottles returning from the market are stealthy. It is completely an outer process, which takes place within a machine. The machine has three compartments. Bottles for washing placed on conveyor come inside the machine and get successive treatment. Bottles are treated with 4% caustic soda in the frost compartment at the temperature, 100-115F. Next these are conveyed to the second compartment where bottles are again treated with 2% caustic soda at the temperature 120F. In the third compartment bottles are treated with sort ware. Time duration in the each compartment is 10 minutes.<br />CONVEYOR CHAIN <br />These are for the movement of sterilized empty, filled and crowned bottles.<br />LIGHT SCREEN<br />To check if any dirty part is unwashed in the sterilized bottles, which are coming through conveyor chain? This checking is again crowning.<br />SYRUP ROOM<br />Syrup room is situated on the first floor. Here syrup is prepared from filtered water, sugar and the concentrate. The room is well equipped with several tanks and filter press. The first one is heating tank is which syrup is actually prepared. Calculated amount of sugar along with concentrate and water is heated up to 850C. Thus a saturated solution is prepared. Next it is sent through a machine called filter press. <br />FILLER MACHINE<br />Washed empty bottles enter into this through conveyor chain and then they are filled with exact quantity of beverages. <br />CROWNER<br />The filled bottles are crowned with metallic caps to protect the purity of content. Then the bottles are given the batch no., year, etc. with the help of laser machine.<br />Thus the whole process from washing to crowning is automatic. The filled bottles are lifted manually from conveyor and placed in crates. The bottling of beverages is carried out at a rate of 240 bottles/min. The new bottling unit has been established in order to pace the bottling process in the month of February. After establishing the now production unit the rate per minute raised to 600. Before it was 440 bottles per minute.<br />DISTRIBUTION CHANNEL OF SMV BEVERAGES LTD.<br />Channel of distribution followed by the SMV Beverages Pvt. Ltd.<br />The channel of distribution is one of the essential activities, which is the responsibility of the sales department. The best alternative strategy is followed by the sales department of SMV Beverages private limited to distribute the processed soft drink so that product is available at right time and at right price. The company uses the following marketing distribution channel: -<br />Manufacturing UnitDistributor or Whole sellerRetailer or OutletEnd Users<br />The product after processing is firstly supplied to the distributor or wholesalers from the plant or manufacturing unit. The whole area in around Ranchi is divided into the several zones and routes. Thus the retailer cannot take the delivery directly from the manufacturing unit. They have to take it from their respective distributor in the particular zone of route. The distributors are selected on the basis of assurance given by them regarding the minimum sales, which they have targeted annually. Depending upon the market each distributor in its initial stage has deposited some security money this amount varies between the distributor-to-distributor and area-to-area. There is not any fixed criterion for retailer or outlet but some time its selection is dome on the basis of sales of caret per day. There is no direct relationship between the retailer and the company.<br />There are lots many of exclusive outlet which is given more preference in order to meet product available. Most of the retailer are beetle shop, restaurant, grocery shop, STD booth, Medicine shops etc. who are having the stall for the sales soft drinks. These retailers have to give the assurance to the concerning distributor for better sales and the time of thanking delivery. They have deposited the security for the empty carets with specified retailer purchasing price. The distributors at first have to seek the permission of the sales department for the number of cases of soft drinks required by them. After getting the proper authority from the sales department the distributor then sent their delivery through route vehicles to the respective outlets that so ever have paid the requisite sum of money either by cash or draft and deliver the filled carats and get back the empty carats.<br />Decisions with respect to distribution channel focus on making the product available in adequate quantities at places where customers are normally expected to shop for them to satisfy their needs. Depending on the nature of the product, marketing management decides to put into place an exclusive, selective or intensive network of distribution, while selecting the appropriate dealers or wholesalers. <br />Direct Distribution:<br />Delivery of post mix cylinders & handling of key accounts: the key accounts are different wholesalers, restaurants and hotels like Pizza Hut, KFC, Metro which serve as a place for key sale. These are known as national key accounts and are very important in term of competition. <br />Export Parties<br />Indirect Distribution: <br />Through base market distributors<br />Through outstation distribution <br />Before delivering the product some certain guiding principles are followed for the assessment of distributor’s capacity:<br />Applicant must have 20 to 25 vehicles (depending on the area)<br />Applicant must have 20,000 cases of empty bottles<br />Applicant must deposit Rs. 1,00,000 as a security<br />This is usually done through taking over key revenue areas. If the distributor does not achieve its sales target, the distribution is taken back and an addition of new distributor is done. Therefore Pepsi’s supply is low supply uncertainty. Some of its supply source capabilities are:<br />Less breakdowns<br />High quality<br />Flexible supply capacity<br />Mature production process<br />CUSTOMER<br />In Tier 1, 2 and 3 cities in India, 29% of Indian consumers report consuming carbonated beverages/soft drinks during a fixed time of the day suggesting consumption has become a routine part of their day, with most consumption taking place during the 'afternoon to evening' time period. Not surprisingly, consumption is highest in Tier I cities such as Mumbai, Delhi, Kolkata, Chennai, Hyderabad and Bangalore. The level of consumption is seen to increase with rising household incomes (with the exception of the highest income level) while decreasing with age.<br />The Indian soft drinks market is not under any regulation. Prevention of Food adulteration act 1954 does not include soft drinks. None of the BIS standards that existed before August 2003 had any guidelines or set criteria for the residue levels of pesticides in the soft drinks. But different lie agencies have set standards for the residue levels of pesticides. The European Economic Community (EEC) sets the maximum admissible concentration of individual pesticides and related products in drinking water at 0.1 parts per billion to ensure that the toxicity is not dangerous to human beings. For a few pesticides like aldrin, dieldin and heptachlor epoxide the admissible limit is even more stringent, i.e., 0.03 parts per billion.<br />He is the person who is selling the same type of product in the market.The marketing concept states that to be successful, a company must provide greater customer value and satisfaction than its competitors do.<br /> <br />COMPETITOR<br />Pepsi has a tough competition with Coca Cola while it faces a little competition with the local producers like RC Cola, Shandi Cola etc. The local producers hardly affect the sales of Pepsi in the market.<br />There are different types of competitor in the market. Some of them in which our product lies are discussed below: <br />Close Vs Distant Competitor:<br />Pepsi and Coke are close competitors. It means that both have direct competition in the market, their products are close substitutes for one another. Both the products can influence the market share of one another through effective strategies made to cope up with their competitors.<br /> Pepsi cola and Nestle juice are distant competitors of one another. It means that their products satisfy the same want but they are in indirect competition with one another.<br /> Strong Vs Weak:<br />Coca Cola and Pepsi are strong competitors. Pepsi is the market leader and Coca Cola is its competitor. The Pepsi makes defense strategies so that it can maintain its position in the market. While Coca Cola is a challenger and it makes attack strategies so that it can become the market leader.<br />Pepsi and Shandi Cola are weak competitors. Pepsi is the market leader and Shandi Cola is the follower. Pepsi is not in direct competition with the Shandi Cola. It means that Shandi Cola has little effect on the sales of Pepsi.<br />Pepsi Cola is situated in an industry that is dominated by two competitors, Coca-Cola and of course themselves. Although Pepsi and Coke basically go after all consumers who purchase soft drink beverages Coca-Cola targets its products at the head of household.<br /> This is evident in many of the ad campaigns such as “Always Coca - Cola” which refers to the traditional beverage heritige of its product. They also reinforce this in the name “Coca-Cola Classic” which is inferring to the older consumer. This name reflects an image of value, reliabilty, and old time values. Pepsi Cola throughout its 100 years of existence has developed many strengths. One of the strengths that has developed Pepsi into such a large corporation is a strong franchise system. <br />They have also made wise investments in snack food companies like Frito Lay, which at present time is the largest snack company in the world. Probably high on the list of strengths is Pepsi’s beverage line up. Pepsi has four soft drinks in the top ten beverages in the world. These brands are Pepsi, Mountain Dew, Diet Pepsi, and Caffeine Free Diet Pepsi. Pepsi also has the #1 tea in the United States, Lipton Tea. Some other strong brands are All Sport, Slice, Tropicana, Starbucks, Aquafina and a license agreement with Ocean Spray juices. Pepsi Cola like any company has weaknesses. Ironically, the one strength that has been credited for most of its success in the past has now become a weakness for Pepsi. This former strength is the franchise system. The franchise system in Pepsi Corporate view has become a liability. Pepsi in today’s market must be able to act as one instead of several separate units. The franchise system has become a hurdle to Pepsi because many of these franchises have become very strong and will not be dictated by PepsiCo on how to handle their operations. Some of these franchises are unwilling to support certain Pepsi products and at times produce their own private label products that are in direct competition with Pepsi products. Secondly the franchisees are not willing to make capital expenditures to keep up with Coca-Cola who is a firm believer in reinvesting into their infrastructure (Coca Cola at present time does not operate a franchise bottling system). Another weakness that Pepsi is inferior is in the fountain soft drink division. This has always been a problem for Pepsi because of their ownership in fast food restaurants. Coca Cola has for years been in the top locations for fountain beverages because they simply tell the account Pepsi is their competition because of their ownership in Taco Bell, Pizza Hut, KFC, and many others. As mentioned earlier Pepsi has tried to eleiviate this problem by spinning off their interest in fast food restaurants but at present time are still guilty by association to many of the large fountain accounts. The franchise system has also effected fountain sales due to the fact franchisees are not willing to by expensive fountain equipment to placed in accounts mainly because the profit margin is so low and could take years to recoup their investment. Pepsi also has a weakness in the international beverage market. Unfortunately for Pepsi they were a “Johnny Come Lately” into this arena. Pepsi has tried to enter this market by trying to do in three years what took Coke 50 years to do. This area will take years for Pepsi to mature simply due to Coke’s dominance in the international market and the strong ties that Coke has developed with these markets and their governments. Pepsi customers buy nearly five billion gallons of soft drinks per year. Pepsi customers buy their products because of taste, price, packaging, promotional factors and of a wide variety of brands. Pepsi customers also buy their products due to the high accessibility of Pepsi brands. Pepsi products are distributed to many outlets. For example, supermarkets where Pepsi buys large shelf area and display areas so the customer can find them easier, Convenience stores, gas stations, delis, restaurants, movie theaters and almost and other conceivable spot. Pepsi has a competitive advantage over Coke because of the image it portrays. Pepsi promotes itself as the choice of the “New Generation”. Pepsi gets this advantage by implementing such large marketing projects like “Project Globe”.<br />OBJECTIVE<br />Whatever we have learned in our courseware can only be more effective when we know how to apply them in real practice. Application of theoretical learning to the practical exposure leads to further learning. Here the main objective of internship is to apply the theories and skills learned, practically in an organization, and be open to learn more.<br />The objective behind doing (SIP) is to get first Corporate exposure where we can apply our theoretical knowledge, learned in our courseware till now ,and get a closure look to the ‘Work Culture’and learn ‘Corporate Ethics’. This is supposed to be beneficial for us in future when we will start working with an organization , after completion of our course.<br /> As an intern we can develop knowledge , competencies and real time corporate experience, which directly make an impact on setting our career goal.<br />Beside working on the project during (SIP) .we also get opportunity to link with the employees of the organization. There are numerous things which helped us in improving our educational , professional and social network to set the things done in a right and systematic manner.We come to know how to make long term relation with others. <br />
    • To know the consumer preferences.
    • 36. To know the percentage share of pepsi’s cooling equipments.
    • 37. To know the market share of pepsi’s product.
    • 38. To know the distribution methods adopted by the organization.
    • 39.
    METHODOLOGY<br />The different methodologies that I used to collect data from different places are given under:-<br />
    • I have done market survey for collection of primary data.
    • 40. I use net to collect the information of PepsiCo.
    • 41. I also got secondary data from PepsiCo official.
    • 42. I also know various things from shopkeeper.
    • 43. I also got information from the customer.
    Commencement of Fieldwork :<br />The fieldwork include the process of getting the questionnaires filled up and also getting all the relevant information regarding the visibility of Pepsi for future business decisions.<br />My fieldworks included extensive coverage of the following areas :-<br />Adityapur<br />My data collection process include in-debth interviews with the dealers and consumers getting as much as relevant information as could be. <br />
    • Method of study
    I have divided my all study into three phases which are :<br />Outlet survey <br />Product survey<br />Stock keeping Survey<br /> QUESTIONNAIRE<br />QUESTIONNAIRE FOR RETAILERS:<br />Name of the shop/outlet: ..................................................................<br />Address/Location : .......................................................................<br />Type of outlet : ..............................................................<br /> (a) General Store (b) Pan Shop <br />(c) Sweet Shop(d) Lassi /Juice Shop <br />(e) Dhaba /Canteen(f) Others<br /> l .Q. Which brand of soft drinks you deal in ?<br />(a) Pepsi (b) Coca-cola<br /> (c) Both (d) Other<br /> 2.Q. Which brand of cola provides you better facility ?<br /> (a) Pepsi (b)Coca-cola (c) Both <br /> 3.Q. How many crates of Pepsi & Coca-Cola you sell/day ?<br /> (a) 0-1 crates (b) 1-2 crates<br /> (c) 2-3 crates (d) 3 & above<br />4.Q. Which company’s signage you have in your outlet ?<br /> (a) Pepsi (b) Coca-Cola<br /> (c) Both (d) No signage<br /> <br />5.Q. Which company’s visi - cooler you have in your outlet?<br />Pepsi(b) Coca-Cola(c) both<br />(d) Own(e) Mixed<br />6.Q.What kind of promotional activities affect sale mostly?<br />(a) Free bottle scheme(b) Prize<br />(c) Discount Crates<br />7.QContact person & contact number for further queries?<br />……………………………………………………………………….<br /> <br />
    • 8Q.How many VG coolers of pepsi & Coke in your outlet?
    • 59. Pepsi Coke Own
    9Q.Service frequency of the Van in your outlets of Pepsi & Coke? <br />…………………………………………………………………………..<br />10Q.Which company, Pepsi or Coke gives more schemes?<br />……………………………………………………………<br />PROBLEM FACED<br />1.We have done our market survey only in the Peak season.<br />2.51 days are very less to know the each and every aspect of marketing activities.<br />3.Respondents covered by us could not give the accurate result it only provide some idea.<br />MARKET SURVEY<br />One of the most effective tools of the market research technique is Market survey. We can know the actual facts and figures regarding. The product through market survey.<br />Any business organisation has to sell its product in the market. The largest share of market a company has the better its profit margin will be. To increase the market share the company should come out with a product which best satisfies the customer need.<br />To find out the customer need and market demand the company should survey the market and the process is knows as market survey.<br />Based on this survey the company goes for following function.<br />1.Market Development Function.<br />2.Product Development Function.<br />The Report on over all Marketing activities in Ranchi is based on two different types of survey:-<br />Retailer Survey.<br />The retailer survey as the word indicates is the survey of every retailers of soft drink in the area. For my practical purpose the dealer only includes the authorized dealer appointed by the company, but it also includes the retailer- big or small grocery shops, stationary, restaurant, betel shop etc. beside these, the various exclusive stalls and sales of pantry cars also included in it. In a nutshell, by dealer we mean, those who are dealing in soft drink in some way or the other, in large our study, directly or indirectly. <br />Thus our study includes all such dealers. EDS includes various aspects:<br />Route-wise no. of dealers<br />Crate strength <br />Per day sales<br />Chilling aid<br />Advertisement<br />Nature of outlets<br />Scheme and pay-offs etc.<br />While conducting the survey of dealers, a format was provided to me, which ask to fill up by the dealer so that it meets the requirements of the organization. The dealer survey as mentioned earlier includes a variety of dealers.<br />DEALER SURVEY<br />since Retailers/Dealers are supposed to be very close to the consumer. They can know the choice and taste of a consumer very well.The following important information we come to know by Dealer/ Retailer Survey.<br />Market position of Pepsi<br />Distribution effectiveness.<br />Price effectiveness.<br />Service of chilling equipments<br />Schemes Availability.<br />In Ranchi 3 me have survey all parts of this small town<br />In Ranchi 3 area Karamtoli to Booty More and on the national highway Booty more to Chutupalu.<br />We have surveyed about 120 outlets/Shops in jamshedpur.<br />1.Market Position of Pepsi.<br />From our survey we find that Pepsi faces a tough competition from its rival Company Coca-Cola. Thumps-Up a product of the Coca-Cola Company gives a stiff competition to Pepsi. We find that Thumps-up gives a tough competition to Pepsi Cola.<br />Sprite gives a tough competition to Mountain Dew. But Dew is also is saleable than sprite.<br />Mirinda and slice is also more Saleable than Maaza. Because of the better taste slice is more demanded in the market.<br /> The Customers of slice includes the females and middle aged persons; who just want to taste the Mango Juice.<br />Mirinda is also more demanded by the female consumers.<br />On the basis of the survey we come to know that it is due to the sweetness of Pepsi which makes its market power a weaker one. On the other hand Thumps-up hardness gives it more value at the market.<br />2.Distribution effectiveness :-<br />We find that the summer season is the Peak season for the Cold Drinks. That's why a special case should be taken for the distribution of Pepsi products. These includes that the supply should be regular.<br />Irregular supply effects the marketing of Pepsi. The Retailers says that it is upto then for the selling of a product. Whatever product is available to them they will sell that item. if Coca cola- supply is regular they can sell the Cola-Cola product if the Pepsi supply is not regular and good. That's why the Retailer wants the regular supply and best service from the company during the peak reason.<br />"From our survey we found that the supply of Pepsi products is regular. Although in some areas like. Imlichowk dandlibasti saldis basti the supply is not regular because of less number of vehicals. The Retailers, however, manages to get Pepsi from other other side dealer.<br />We find that during the peak season sometimes supply problem occurs. But according to my thinking the main reason of irregular supply is shortage of pepsi products in distributor godown. However, Retailers also know that the supply sometimes hampers during the peak season.<br />Price Effectiveness :-<br />From our survey with regard to price we come to know that the increase in price of 200ml (Pepsi) does effect the selling of Pepsi. However this increase in price does not effect too much to the selling of Pepsi Products. However, the price is same as that of the Coca-Cola products. Hence we find that the increase in price affects the marketing of both the products i.e. Pepsi and Coca-Cola.<br />4.SERVICE OF CHILLING EQUIPMENT OF PEPSI :-<br />The service of Chilling equipment of Pepsi is not satisfactory to all the users/Retailers/Shopkeeper.The mechanic of the company is not regular at the place where required. Retailer/Dealers/Shopkeepers complains about the less cooling of Pepsi freeze. But they satisfied from the cooling equipments of Pepsi.<br />5.SCHEME AVAILABILITY :-<br />We find that the dealers guts the schemes regularly. These Schemes lead to the more selling of Pepsi products. The dealers Say that schemes provided by the Company, encourages them to sell the Pepsi products more and more, however, sometimes. The retailers cannot know about the schemes because the schemes are of very short period.<br />That's why they want to know about. The exact information and timing of Schemes. So that they can avail these scheme.<br />MARKET SHARE OF VISI COOLER<br />Chilling equipment is an important factor for selling soft & cold drinks.Without freeze & VISI cooler the sale of soft drinks is not possible. Every dealer has an chilling equipment. In some cases company also provide chilling equipment. Company whatever provide chilling equipment it is totally different from general freeze. In this case the freeze outsider has advertise the product e.g Pepsi Dew 7up slice etc. for e.g in a market one of the dealer has good sales of soft drinks. He has 4ct , 3ct , 4ct various type or flavour soft drinks. His visi cooler has not sufficient space to chilled the all product at a time. He tell the problem to the company and request that to provide a visi cooler. Companie’s employee come to the dealer and analyze that it is necessary to provide a visi cooler or not. Then company provides the visi cooler to the dealer. <br /> Market share of visi coolerSL.NOCompanyEst Mark. Share1Pepsi54.50%2CocaCola45.50%<br />This is one of the most important supports for the dealers which help them to keep the product chilled and freash.<br /> <br />ADVERTISING<br />Advertising is any paid form of non-personal mass communication through various media to present and promote product, services and ideas etc. by an identified sponsor.<br />PepsiCo has advertised its products through many different ways and media. Through TV we have seen different advertisement of its products such as Pepsi or Dew. PepsiCo also advertise its products by targeting those favourable television programs, like sports, series and also PepsiCo uses some events like ‘Pepsify Karogey?” to promote its products.<br />Through newspapers like Jung and Dawn, PepsiCo has advertised a wide range of products its offers to its customers. And also through Posters a message has been sent to lot of people to be aware of the products which PepsiCo offers. <br />PEPSI PROMOTION<br />Promotion is a key element of marketing program and is concerned with effectively and efficiently communicating the decisions of marketing strategy, to favourably influence target customer’s perceptions to facilitate exchange between the marketer and the customer that may satisfy the objective of both customer and the company.<br />A Company’s promotional efforts are the only controllable means to create awareness among publics about itself, the products and services it offers, their features and influence their attitudes favourably.<br />OVERALL MARKET SHARE<br />1.COCA-COLA 43.9%<br />2. PEPSI COLA 30.9% <br />3. CADBURY SCHWEPPES 14.5%<br /> BREAKDOWN OF MARKET SHARE <br />1. COCA-COLA CLASSIC 20.6% <br />2. PEPSI COLA 14.5% <br />3. DIET COKE 8.5%<br />4. MOUNTAIN DEW 6.3%<br />5. SPRITE 6.2% <br />6. DIET PEPSI 5.9% <br />7. 7-UP 2.3%<br />8. CAFFIENE FREE DIET COKE 1.8%<br />9. CAFFIENE FREE DIET PEPSI 1.0% <br />10. DR. PEPPER 0.6%<br />FOUNTAIN SALES (FOUNTAIN SALES ARE CREDITED FOR 27% OF SODA SALES)<br /> <br />1. COCA-COLA 65%<br />2. PEPSI COLA 23%.<br />DATA ANALYSIS<br />Market share of Pepsi & Coke at Adityapur in Jamshedpur.<br />S. No.PePSICOKE1.66.62 %33.38%<br />Flavour Wise Comparison of Soft drinks at Adityapur in Jamshedpur.<br /> .<br />THUMS UP 20%PEPSI 20% MOUNTAIN DEW 8 % SPRITE 13% MIRINDA 10% 7 up6% SLICE12 % OTHERS 10 % <br />Overall Comparison of Pepsi & Coke at Adityapur in Jamshedpur.<br /> <br />PEPSI 67 % COKE33 %<br />Comparison of Pepsi & Coke in Glass Bottles at Adityapur in Jamshedpur.<br />PEPSI 67 % COKE33 %<br />Comparison of Pepsi & Coke in Pet Bottles at Adityapur in Jamshedpur.<br />PEPSI 66 % COKE34 %<br />Comparison of Pepsi & Coke in Empty Bottles at Adityapur in Jamshedpur.<br />PEPSI 58 % COKE42 %<br /> <br />Comparison of Pepsi & Coke in VG Chilling Equipment at Adityapur in Jamshedpur.<br />PEPSI 48 % COKE52 %<br />Comparison of Pepsi & Coke in OYC Equipment at Adityapur in Jamshedpur.<br />PEPSI 8% COKE11 %OWN81 %<br />Comparison of Pepsi & Coke in Service Frequency at Adityapur in Jamshedpur.<br />PEPSI 58% COKE42 %<br /> Comparison of Pepsi & Coke in Schemes at Adityapur in Jamshedpur.<br />PEPSI 76 % COKE24 %<br />FINDINGS<br />FINDINGS<br />During (SIP) in PepsiCo pvt.Ltd. (jamshedpur) there was various things to know about and learn which is not less than any achievement. Apart from market survey I learned to keep Patience and to communicate effectively with others.<br />Apart from these, I got an opportunity to work with good Employees of PepsiCo, a multinational company which off course added value to my learning. I also came to know about the culture and hierarchy and working procedures of PepsiCo which itself is an achievement. But I became confident in this area after doing summer internship program (SIP). <br />
    • Satisfaction level is also good.
    • 60. The dealers want more promotional scheme, gifts and quality service.
    • 61. The dealers want a soft strategy for replacement of lickage bottles.
    • 62. As per I have visited to dealers outlets, I found that most of the dealers are selling only Pepsi’s products.
    • 63. Some dealers are happy with Pepsi products. They got the products by the company at the time due to good distribution channel.
    CONCLUSION<br />Market share of Pepsi is increased because of effective distribution channel and demand of the consumers. Since in Jamshedpur and its surrounding area heat descends more as compared to other parts of the states so obviously demand is more in this region. The marketing activities of SMV beverages are good but there is a need of some more promotional activities. Besides this there is certain more conclusions which are as follows:-<br />1.Pepsi has got far better position and giving the tough competition to its competitor coke.<br />2.Almost all the age group of the consumer like Pepsi and its different flavors.<br />3.Mirinda is the market leader in orange flavour while Thumps-up is the leader in sprit flavour and 7up is the leader in cloudy lemon flavour.<br />4.In pet bottles segment Pepsi is dominating Pepsi has acquired almost 70-75% share in this segment. <br />5. 200ml of almost all the flavor has got a significant position in the market and are in high demand.<br />6.The young generation is very crazy about the Pepsi and its various products because of its sponsharship of different cricket tournament and bollywood stars like Ranbir kapoor, Dhooni Deepika padukoan .<br /> 7.Pepsi "YEH PYAAS HAI BADI" and “Yeh hai Youngistaan Meri jaan” are excellent.<br />RECOMMENDATION<br />Pepsi-Cola should improve the design of the package. As it is advertised as “the choice of new generation “ the design must be looked young and fresh. So the colour should be more sharp and attractive.<br />Distributors should given attention towards the retailers in rural areas. As from the survey I found that majority of the retailers in these areas preferred to sell Pepsi’s products inadequate in number and on time.<br />I found that there is high demand for soft drinks products during the summer season so by launching ”Mobile PepsiCo shop ”we can attract new customers especially the college students.<br />As PepsiCo has always targeted the youth so new posters including the recent cricketers endorsed for Pepsi AD can be distributed among the retailers to attract the customer.<br />From a very long time PepsiCo products are coming with the same type of carat. So there can be change in carats model as these are also means of ads for a retail outlets. <br /> <br />BIBLIOGRAPHY<br />SITES VISITED<br />
    • www.PepsiCo.com
    • 64. www.Pepsizone.com
    • 65. www.Pepsiindia.com
    • 66. www.google.com
    SWOT ANALYSIS<br />STRENGTHS OF PEPSICO:<br />
    • Excellent brand image.
    • 67. Having highest market share of 54% in pet bottles.
    • 68. Effective and stronger base in India than its competitor like coke.
    • 69. It’s having very efficient distribution system. E.g. there are seven distributors in Jamshedpur.
    • 70. Having large number of celebrity endorsed.
    • 71. Introducing new flavors time to time.
    • 72. Having broader product line and outstanding reputation.
    WEAKNESS OF PEPSICO:<br />
    • Not able to keep the retailers satisfied in term of service, scheme and offer.
    • 73. Not having good provision for expiry and fusty goods.
    • 74. Most part of the city is not looked as the main city that should be taken care because in those areas the service is negligible.
    • 75. Not having definite criteria for providing fridge, dash boards, glow signs and paintings to the retailer.
    • 76. Not providing support material to the retailer.
    • 77. Shortage of some fast moving product during the season.
    OPPORTUNITIES FOR PEPSICO:<br />
    • PepsiCo can explore its distribution network in interior area.
    • 78. Consumers are showing more interests in PepsiCo products.
    • 79. Focus on most important customer trend- “convenience”.
    • 80. Sufficient stock of goods during season that can fulfill the demand of customers.
    • 81. Improve service in some major areas where the distributor is not available.
    • 82. Promotional activities provide it an edge over the competitors.
    THREATS FOR PEPSICO:<br />
    • Competitive price may affect its profit margins.
    • 83. Competitor’s products already available in the market with similar schemes.
    • 84. Some potential dealers are not well satisfied with the services which directly affect the sale of products.
    • 85. Earlier religious guru asking their followers not to consume soft drinks but after he asked to consume colorless drinks.
    • 86. Pesticide controversy taking away the consumer.