Project on-distribution-channel-of-pepsi

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Project on-distribution-channel-of-pepsi

  1. 1. Dissertation Report On “A Brief study on Effectiveness of Channel of Distribution of Pepsi Products in Patna” AtLumbini Beverages Pvt. Ltd. Hajipur Under Guidance Mr. Manish Sahay [Market Developing Officer PEPSI, Patna (Bihar)] In Partial Fulfillment of the Requirements For the award of POST GRADUATE DIPLOMA IN MANAGEMENTSubmitted To Submitted ByMr. Rahul Saxena Kunal(Class Coordinator) PGDM – III (B) Roll: - 11Academy Of Management Studies, Dehradun 1 Academy of Management Studies, Dehradun
  2. 2. 2Academy of Management Studies, Dehradun
  3. 3. DECLARATION I, Kunal declaring that all the information given in this project reportis true and correct as far as I know. I am also declaring that all the work in this project is done by me andnot copied from anywhere.KunalAcademy of Management StudiesDehradun 3 Academy of Management Studies, Dehradun
  4. 4. CERTIFICATE This is to certify that Mr. Kunal who is the student of Academy ofManagement Studies, Dehradun has completed his project on the topic “ABrief Study of Effectiveness of Channel of Distribution of Pepsi Productin Patna” from Lumbini Beverages Pvt. Ltd. Hajipur, under myguidance. He has done this project by himself. I wish him success in future.Mr. Manish Sahay(Marketing Developing Officer)PEPSI, Bihar 4 Academy of Management Studies, Dehradun
  5. 5. PREFACE There is a famous saying “The theory without practical is lame and practicalwithout theory is blind.” This modern era is era of consumers. Consumers satisfy themselves according totheir needs and desires, so they choose that commodity from where they extractmaximum satisfaction. It has been identified that in the beginning of 21st century the market wasobserved a drastic change. The successful brand presents itself in such a way that buyersbuy them in special values which match their needs. Marketing is an important part of any business and advertisement is the mostimportant part of marketing. Summer training is an integral part of the PGDM and student of Managementhave to undergo training session in a business organization for 6 weeks to gain somepractical knowledge in their specialization and to gain some working experience. Our institution has come forward with the opportunity to bridge the gap byimparting modern scientific management principle underlying the concept of the futureprospective managers. To the emphasis on practical aspect of management education the faculty ofAcademy of Management Studies, Dehradun has with a modern system of practicaltraining of repute and following management technique to the student as integral part ofPGDM. in according with the above obligation under going project in “LumbiniBeverages Pvt. Ltd. Hajipur. The title of my project is “A Brief Study of Effectivenessof Channel of distribution of Pepsi product in Patna” Certainly this analysis explores my abilities and strength to its fullest extant forthe achievement of organization as well as my personal goal. (Kunal) 5 Academy of Management Studies, Dehradun
  6. 6. ACKNOWLEDGEMENT At the very outset of engaging myself in to the Project Report. I would like toexpress my sincere gratitude to all those who extended their not only to convey their bestwishes but also to give me support on this hi-undertone path. This Project Report on mysix weeks practical training in “Lumbini Beverages Pvt. Ltd.” Hajipur (Pepsi) in area ofPatna is a part of my course curriculum of my PGDM. This project could not have been completed without timely suggestion advice andco-operation of a lot of persons. I am extremely thankful and pay my gratitude to Mr. Sourav Chatterjee (Head –Training & Placement) Academy of Management Studies, Dehradun for his valuableguidance and support on completion of this project in its presently . I am greatly obliged to Mr. M. K. Prasad (HR Manager, Lumbini Beverages Pvt.Ltd. Hajipur) who accommodated me for training in this esteemed organization. I am highly indebted to Mr. Manish Sahay (Marketing Developing Officer, Bihar)who provided me an opportunity to work and also guided me at every stage on myproject. His proper direction and consult inspiration proved to be an asset for this project. I am also equally thankful to Mr. Anish Kumar (Sales Co-coordinator, Bihar) whotaught me every minute aspect of marketing. A special appreciative “Thank you” in accorded to all staff of “LumbiniBeverages Pvt. Ltd.”, Hajipur and MDC, Patna for their positive support. I also acknowledge with a deep sense of reverence, my gratitude towards myparents and member of my family, who has always supported me morally as well aseconomically. At last but not least gratitude goes to all of my friends who directly or indirectlyhelped me to complete this project report. (Kunal) 6 Academy of Management Studies, Dehradun
  7. 7. CONTENTS  Preface  Acknowledgement TitleChapter 1. Introduction to the Study  Objective of the Study  Importance and relevance of the Study  Scope of the Study  Methodology used in the study  Limitation of the studyChapter 2. Introduction of the Soft Drinks in India  History of Soft Drinks in India  History of Pepsi  Production Process  Product Manufactured and Main ConsumerChapter 3. Organizational Structure  History and Organizational Structure of Lumbini Beverages Pvt. Ltd. HajipurChapter 4. A Theoretical frame work of Channel of distributionChapter 5. Channel of distribution of Lumbini Beverages Pvt. Ltd.Chapter 6. Performance of PatnaChapter 7. Conclusion and Suggestions  Questionnaire 7 Academy of Management Studies, Dehradun
  8. 8. CHAPTER 1. INTRODUCTION TO THE STUDY  Objective Of The Study  Importance And Relevance Of The Study  Scope Of The Study  Methodology Used In The Study  Limitation Of The Study 8Academy of Management Studies, Dehradun
  9. 9. INTRODUCTION TO THE STUDY When Mr. Rajeev Gandhi came into the power as Prime Minister of India, then itwas expected the liberalization of Indian economy. This was the expectation of hismodern concept regarding every walk of life. When Pepsi has appealed on our collectiveconsciousness of few years ago to be more exact in April 1989. When it set up operationfor beverages snack foods and export business. The establishment of MultinationalCompany Pepsi was supposing to prediction in present Indian business scenario. Despite love for ones own motherhood and traditional concept of Indian people itwas assumed that it is very hard to make and create taste and preference about soft drinksbut despite of having so many confusion, no one was able to assume such a wideacceptance and it was PepsiCo. Who could be able to penetrate in Indian soil and it wasthe Pepsi that has got not only a place in Indian hospitality, but also taken place oftraditional sharbat of lemon and sugar. And needless to say “Generation next has becomethe slogan of the day.” The first managing director was Mr. Ramesh Vanagal but present is Mr. P.M.Sinha in India. During these years beverages begin an exclusively franchise operatingbeverages now has five company owned bottling operation (COBO) the business expectsto grow three times faster than the industry growth rate 1995 and its vision is to becomeINDIA’S BEST CONSUMER PRODUCT COMPANY in all aspect. The snacksbusiness has seen some major success and going for leadership too. Pepsi is a leader inthe snacks food business. The division plans to introduction wide range of snakes in toIndian market in the next three years. The restaurant business has also come KentuckyFried Chicken (KFC) has opened its first outlet at Bangalore Pizza but it also expected toopen restaurants shortly city wise. Whole of the operations of Pepsi in India has made arapid change in Indian life style, which is resulting in fast food life. Pepsi is a world leader in restaurant & soft drink whether it is in London or inLudhiyana, America or Ahamedabad, Berlin or Bombay, Paris or Patna, Manchester orMadras. 9 Academy of Management Studies, Dehradun
  10. 10. Pepsi company has pumped in Rs. 300 crores ($ 95 million) as fresh capital andhas recently received permission from the foreign investment board in Rs. 300 crores($95 million) more. The investment phase will continue and could add unto Rs. 700crores over the next three years. The figure is not cast in stone if volume exceedsaccording to expectation. They will increase capital expenditure. Apart from these things there is an expression which can not verify easily that isPepsi has made qualitative gains. The foremost is its image from being perennially seenas a loosing company it’s now got the image of being a winner. This major turn around isnot small achievement considering that since it was established in 1989 taking the hardship route prior to liberalization and weighed down by export commitments. Pepsi haswon more battles than it has lost. In April 1993 Voltas and Punjab Argo’s stakes were bought overconverting Pepsi foods from a three way joint venture to be a fully owned subsidiaryweek bottlers who did not have the financial capacities were given massive support in theform in interest free loans to upgrade their operating capacity . But the strategy which hasproved to be winner was the position, Pepsi decided to take in Company Owned BottlingOperation (COBO). For this another subsidiary PepsiCo. India holding was set up as aninvestment vehicle, capitalized 95 million dollar. Within a year 1994 Pepsi has boughtover 5 bottlers including dukes in Mumbai, which was running in Maharastra which hasbeen bought over from Voltas high speed imported lines with a speed of 600 bottles perminute was installed in Delhi. Pepsi has a strong franchisee in the Jaipuria’s of Pearldrinks. Pepsi is setting up a new plant at Jaipur. 10 Academy of Management Studies, Dehradun
  11. 11. OBJECTIVE OF THE STUDY Management is a course which teaches the student to get the work done properlyfrom different available sources viz. man, machine, material, money etc. So there can bea satisfaction from the organization side and the workers side who play a significant rolein achieving success. So far the fulfillment or the management course, it gives emphasisto project work and students learn how to plan in practical terms rather in terms of theoryonly. Student tends to develop analytical and problem solving skill. We necessarybecome motivated and competitive, in fact all the learning that goes on for the two yearterm become so much the part of our thinking that we developed a well all roundedpersonality. The following are the objectives and purpose of the study- i) For the fulfillment of Post Graduate Diploma in Management (PGDM) programme as realized by the Academy of Management Studies, Dehradun. (AICTE approved) ii) To care and contact with the working of an organization and to see the different types of marketing activities. The main emphasis is on the distribution Channel aspect of the organization. iii) Whatever the subject taught in the class room of PGDM course that is completely theoretical. So during the training period we compare how the marketing research (sales) activities (practical) of our organization with the theories. iv) Find the depth and width of distribution channel adopted by Lumbini Beverages Pvt. Ltd. Hajipur and compare them with those followed by competitors. v) To ascertain the consumer brand perception of cold drinks with respect to price, product, quantity and advertising. 11 Academy of Management Studies, Dehradun
  12. 12. IMPORTANCE AND RELEVANCE OF THE STUDY Cold drinks were started with the idea of quenching the thirst of the personstraveling. It was also felt that reliable good water was not available everywhere. Sopeople would really on their packed bottle and with this idea its makers made thesedrinks available mostly, at those places where water was not available i.e. on highwaysand long distance trains. But slowly and slowly with its beautiful taste these become very popular and nowthey are available not only in the market and street corners, but also people have startedkeeping it in their house. The credit of popularizing the soft drink goes to Coca Cola. This was the drinkwhich is liked by all ladies, gents and children. Now day’s soft drinks are quenchingthirst looks more often; they are taken due to habits. Gold Sport is considered as the first branded soft drinks, established 53 years agobefore all empowering Coca Cola faced competitions and its euphoric image built up inthe western countries helped it get ready clientele and clamor. Parle Export Pvt. Ltd. isregarded as the first Indian Company introducing Limca a leman drink complementary toit this has also introduced Cola Pepone which was withdrawn in the face of toughcompetition from Coca Cola. When Coca Cola bid a Farwell in 1977, Indian market was open for various newforward publishing different brands in the markets. Parle people introduced their Cola,Thums Up with a mighty saying “Happy days are here again” as if happy days went awaywith Coca Cola. Pure drinks of Delhi also without lasing much introduced pure drinkswere producing and marketing Coca Cola earlier Campa Cola with Campa orange andCampa lemon. Modern Bakeries entered the market with Double Cola Seven, MohanMakings with Merry & Plkup and McDowell with Thrill, Rush and Sprint. This is Indianmarket where there was no competition and high voltage advertising was on each onewas trying their best to become number one company with ‘A’ class product in the fieldof Soft Drink business. Now after a long gap government of India had given permission 12 Academy of Management Studies, Dehradun
  13. 13. to Coca Cola, which joined with Parle to do business in India. They are trying their bestto regain prestige which it had before. The much rival of Parle is Pepsi an Americanconcern. It started business on the Indian soil just a few years ago. Today, it has occupied 62% shares of Soft Drinks market in India. Now Pepsi isgoing all out to prove that they are the best. But now due to some factors competitionamong them has become stiffen. So in this way the important activities have increased. 13 Academy of Management Studies, Dehradun
  14. 14. SCOPE OF THE STUDY The main scope of this study is to ascertain the effectiveness of channel ofdistribution and various methods to increase the sales volume of the concern. Themethods include regular information to the buyers creating a brand position in the marketand taking measures to make the brand remain in its position. One of the importantaspects of this study is also to increase the market segment for the product. 14 Academy of Management Studies, Dehradun
  15. 15. METHODOLOGY USED IN THE STUDY“Marketing Research is the systematic designing, collection, analysis, and reporting ofdata and finding relevant to a specific marketing situation facing the company.” The present study of Soft drinks markets in all over Patna is based on surveymethods. In survey methods, there are two types of survey. One is Census Method andanother is Sampling Method. In this sample survey methods I have taken only a smallpart of the whole and data collected from the small part are made applicable to the wholei.e. I have taken Patna and some adjacent area of Patna like Danapur, Patna City etc. Within the time limit, I tried my best to select the sample representative of thewhole group. During my training, I maintained different chart for different routes duringmy dealer survey. I have collected data from the distributor of Patna.Data SourcesPrimary data collection involved distributors, retailers and consumersResearch Approaches : SurveyResearch Instrument : Interview ScheduleSampling PlanSampling Unit : Distributors Retailers ConsumersSampling size : 02 350 1100Sampling procedure : Purposive SelectionContact Method : Personal Interview In interview schedule I used multiple choice question and ranking systemquestions. 15 Academy of Management Studies, Dehradun
  16. 16. LIMITATION OF THE STUDYAs I was asked to carry on my vocational training I found the following limitationsduring my training period. So I could not collect all information regarding my topic. i) Shortage of time factor was one of the biggest constraints. ii) Most stress was given on the primary data as it was difficult to collect secondary data from the organization and distribution since it is difficult to ascertain the authenticity of their statements. iii) All the observation and recommendation will be made on the feed back obtained from survey. 16 Academy of Management Studies, Dehradun
  17. 17. CHAPTER-2INTRODUCTION TO THE SOFT DRINK IN INDIA History Of The Soft Drink In India History Of Pepsi Production Process Product Manufacturing And Main Consumers 17Academy of Management Studies, Dehradun
  18. 18. HISTORY OF THE SOFT DRINK IN INDIA Christopher Columbus as a traveler of world found a lot of new things which wasnot in the eye of the world community which is now in our history but now if any onedoes travel to whole part of world to get one thing in some form that is Pepsi. Travel toany corner of the globe you are sure to spot a label splashed in blazing blue, red andwhite becoming you to some “Sugared water”. This dark coloured drink WillyMilly hastoday become nothing but spot of an international anthem with young and old, rich andpoor wants for a sip and saying “Yeh Dil Mange More.” Gold Spot is considered as the first branded soft drink established 53 years agobefore all empowering Coca Cola entered the country to dominate the scene. It faced nocompetition and its euphoric imaged built up in the western countries helped it to getready clientele and glamour. Parle Export Pvt. Ltd. is regarded as the first Indiancompany introducing Limca, a lemon drink complimentary to there well established GoldSpot in 1970 which got moderate success. However, before this, he had also introducedCola Pepino which was withdrawn in face of tough competition from Coca Cola. When Coca Cola bid farewell in 1977, Indian market was open for various colddrinks several companies came forward publishing the different brands in the market.Parle people introduced their Cola Thumps Up with a mighty bang saying “Happy daysare here again” as if happy days went away with Coca Cola.. Pure drinks of Delhi alsowithout losing much time introduced pure drinks were producing and marketing CocaCola earlier Campa Cola along with Campa orange and Campa lemon. Modern Bakeriesentered in the market with the Double Seven.Moharn meakings with Merry Pikup and McDowell with Thrill, Rush and Sprint inIndian market where there was no competition previously. A cut throat competition andheavy advertising was on. Each one was trying their best to become the number onecompany with ‘A’ class product in the field of soft drink business in India. Now after a long gape the govt. of India has given permission to the Coca Cola tostart their business in India. Coca Cola has joined hands with Parle to the business on theIndian soil. They are trying best to regain its prestige which it has before. 18 Academy of Management Studies, Dehradun
  19. 19. The much rival of Parle is Pepsi an American concern. It started business theoccupied nearly 50% share of soft drinks market in India. Now, Pepsi is going all out toprove that they are the best. 19 Academy of Management Studies, Dehradun
  20. 20. HISTORY OF PEPSI PepsiCo is a USA based company having its head quarters at New York with thenet worth of $30-40 million. The average sales of the company are approx 90 millionbottles per month. Pepsi made it first international move in Russia in 1959. During theKhrushchev era, within 32 years Pepsi emerged as the biggest competitor for Coca Cola.Pepsi is available in 155 countries. In any soft drink, on the globe Pepsi food is one of the largest soft drinkcompanies in the world with its headquarters in New York. It was invented by PharmacistCulab D. Baradham in 1898 to cure the disease “Dyspepsia”. It is from this word that itsname was related to Pepsi. Soon it entered the American market as soft drink, which atthat time mostly dominated by Coca Cola, but soon Pepsi able to dominate the Colamarket, and there after it never looked back. Pepsi and Coca Cola are engaged inferocious cola war that has taken the whole world by storm. Pepsi entered the Indian soft drink in Kanpur in 1988 and began its production inMay 1990 and soon it was giving the local contenders run for their money in soft drinkmarket. It comes out with dazzling marketing innovation that rocked the cola market, likeselling the product through function Pepsi outlets. Its advertisement agency was“Hindustan Thomson Association” (HTA). Its advertisement budget for 1995-1996 wasvalued at Rs. 24 crores which is likely to be increased manifold in coming years. Pepsi food is one of the largest and best foreign investments in India. Till today ithas invested Rs. 500 crores in India to develop the local market. Pepsi has distributedexclusive franchises in India to bottle its total product. There are 28 bottling plant ofPepsi in India. Some are directly controlled by Pepsi and rest is under variousfranchisees. Pepsi stands 51st position among the fortune 500 companies of the world. Its totalcapital is approx $3000 crores and total sales annually is worth $37 crores. Its total profitin the year 1996-97 was worth Rs. 458 crores approx. The total number of employeesengaged in the business is 45.25 lakhs globally. 20 Academy of Management Studies, Dehradun
  21. 21. In April 1997 the Pepsi cola international decided that Steel City Beverage willcover south Bihar (now Muzaffarpur) only. In this accordance Pepsi cola internationaldecided to open another bottling plant at Hajipur named Lumbini Beverages Pvt. Ltd.Hajipur which will distribute Pepsi product in whole Bihar. Ananda Marketing as amarketing division of Lumbini Beverages Pvt. Ltd. Hajipur started functioning in April1997; Managing Director of Lumbini Beverages Pvt. Ltd. Hajipur is Mr. Charan Khelani.The director of this organization Mr. Ravi Khelani and Mr. Manoj Khelani 21 Academy of Management Studies, Dehradun
  22. 22. PRODUCTION PROCESS The process of manufacture of Aerated water (soft drink) like Pepsi brand product isdivided into mainly five parts such as 1. Water Treatment 2. Syrup Making 3. Bottle Washing 4. Filling 5. Testing of Product (1) Water Treatment: - Water treatment is very essential in soft drinks plants as the nature and quality of water varies from place to place. To set uniform and standard water the process of treatment is carried on. The water taken out from bore well by the help of motor pump and pipe line are collected in storage tank where is pre chlorinated by chlorinators and by the help of pipe lines comes to treatment tank called coagulation tank where to this water solutions of different strength of bleaching powder, ferrous sulphate, hydrated lime are added through dosing pump to reduce alkalinity, hardness, kill the bacteria .The chemical are mixed by mechanical stripper and then the suspend mattress settle down as sludge and clear water passes to retention tank. From this tank, the water passes through sand filter containing fine sand and pebbles and carbon filter containing granular carbon and finely through water polisher, micron filter, and UV lamp to ensure clear and sanitary water for use. Further water used in bottle washer and boiler need softening .for this purpose ,the water from storage tank ,after passing through two filter beds contain fine sand and granular carbon respectively comes to pass through bad resin were it is softened .this soft water is essential to use in and bottle washer to reduce scale formation inside the machines. 22 Academy of Management Studies, Dehradun
  23. 23. (2) Syrup Making:- For syrup making of particular brand, calculate quantity of sugar water activated carbon and high flow super cell known as filter aid taken in to sugar to enter steam and also filled by a motor with agitator. Sugar syrup called raw-syrup is prepared by dissolving the sugar with continuous stirring and heating by steam supplied by fired boiler. This hot syrup by the help of pump is filtered through a filter press attached with a series of quality filter paper to separate out carbon particles. Clear hot syrup by the help of SS pipe lines passes through water P.H.E. for cooling and the then another P.H.E. circulated by glycol for further cooling. The chilled syrup comes to a mixing tank to use calculating of sugar quantity by Brix Hydrometer, concentrate added and mix thoroughly by a mechanical Stirrer fitted to the tank. This syrup is now finished syrup ready for use. The concentrate mainly, the liquid part are kept in a cold store, the temperature of finished syrup is also maintained by air-conditioner. All the containers used for syrup making are cleaned and sanitized by Soda-Bi-Crab, strong chlorine solution and hot caustic soda solution.(3) Bottle Washing: Bottle washing is an important part in soft drink plant. The empty durable and returnable bottle used are returned from market in plastic carats are fed to a bottle washing machine (washer). The machine has double end system with circular chain to carry the bottles. Caustic soda Tri-Sodium Phosphate, Sodium Glausonate is adding to the caustic by the supplied. The Caustic tank filled in with water heated by steam supplied by the boiler. The empty bottles enter to the hot Caustic tank in one end and after being cleaned by hot Caustic solution and finally washed with water through spray jets fitted are discharged in other end. The washed bottle proper inspections are SU 319 and SU 853 used for conveyor cleaned and smooth running of chain carrying bottles. SU 260 and SU 773 is used for bottle cleaning, shining, and mold removing. 23 Academy of Management Studies, Dehradun
  24. 24. (4) Filling: - Finished syrup and treated water lime are commixed to a dosing pump which mixes syrup and water with ratio of 1:5 and the syrup mixed with water enters to carbonator tank to mix CO2 gas, which is preserved in cylinder for use. The cylinders are connected through CO2 manifold to tank to use requisite quantity of gas. To control CO2 pressure and temperature of liquid; we used recording control (Taylor). The syrup passed through a P.H.E. which is called itself by circulation of chilled glycol supplied chilling F-22 gas used. The syrup being chilled easily mixed with CO2 gas and enters to filter for bottling. The filter is connected with filling valves and lift cylinders. The lift cylinder functions by pressure of air supplied by an air composer. The syrup is known as beverage in this stage is filled in the cleaned bottles which are durable in nature and returnable by buyer filling machine (filter) by a counter pressure of carbon dioxide gas. After beverage filled in bottle it goes to the crowner where with the help of crown crocks the bottles are sealed (crowned) to project the carbonation, flavor, outside contamination and spoilage. The finished products are coded by a coding machine and inspected properly by inspection light while passing through the conveyor where finished product are accumulated enters to carat washer machine and it is washed moves through the conveyor where finished product are accumulated. Then the products are kept in plastic carats which are durable in nature and returnable by buyer, put on palates and sent to shipping for shipment. The entire container in contact with syrup are properly cleaned and sanitized by Soda-Bi- Carbonate, hot water, caustic soda solution and strong chlorine does.(5) Testing of product:- Finally the finished syrup during bottle is tested in laboratory to meet the parameters and also to get a standard and quality products to maintain the standard and information and uniformity in products the sugar contents and carbonation in the bottle are checked in regular intervals by Brix- hydrometers, Refrectometer and pressure gauge. The dead weight tested is used to calculate pressure gauge to know the correct pressure. TA & Ph are tested by 24 Academy of Management Studies, Dehradun
  25. 25. digital Ph meter. Electronic digital balanced is used to weight chemical to conduct test in lab. The purity of CO2 is checked by CO2 purity tester. The chlorine comparators. The microbiology test of the product and water used in syrup making and production are also done to ensure that the product is free from any bacteriological contamination. To conduct the micro test hot sterilizer incubator, autoclave, pads filter membranes, media are produced and used. The Diesel generator is operated in case of electricity failure for smooth operation of the plant. To drawn electricity for the State Electricity Board the transformer is used.The steps involved in the production process are:- ⇒ First the fork lift supplies the empty bottles which are collected from the distributions. ⇒ Then depalletising is done i.e. separating cases filled or empty bottles from the wooden planks. ⇒ Uncasing is done by separating empty bottles from the cases/carats. ⇒ Empty bottles are then fed into the bottle washer where stream with some chemical is used for washing. ⇒ Washed bottles are then send to the filler where premix (Composed of syrup, treated water bulk CO2) is filled in it. ⇒ The whole concentrated is chilled with glycol before filling and then crowning is done. ⇒ The filled bottles are passed through inkjet coder for printing price and date. ⇒ Then again the filled bottles are send for final light inspection and from there they are collected on a table. ⇒ Lastly the filled bottles are arranged in the crates (casing) and then palletizing is done for storing it in the warehouse. PREPARATION OF SYRUP Treated water + Sugar = Flavour 25 Academy of Management Studies, Dehradun
  26. 26. PRODUCT MANUFACTURED The product manufactured by “Lumbini Beverages Pvt. Ltd. are very limitedranges as it is not independent to diversity its products. It is a unit of Pepsi food Pvt. Ltd.which supplies concentrates for drinks. They are:- Products Quantity Colour Flavour Pepsi 300 ml, 200ml Brunt sugar Cola Mirinda 300 ml, 200ml Sun-set Orange Mirinda 300 ml, 200ml Tetrazine Lime Mirinda 300 ml, 200ml Tetrazine Mango 7 Up 300 ml, 200ml Colorless Lemon Mountain Dew 300 ml, 200ml Colorless Lemon Slice 300 ml Sunset Mango Lehar soda 300 ml Tetrazine Lemon Pet 1.5 lt. Brunt sugar Cola Pet 2 lt. Brunt sugar Cola Can 330 ml Brunt sugar Cola Aquafina 1 lt. Colorless White (Mineral Water)CONSUMERS The main consumers of these products naturally are youth. Besides the directconsumer it is also used for the some purpose of providing it to the mass by hoteliers,restaurant owners and various other soft drink peddlers. These products are the choice ofthe new generation. Thus it can be said that it is a product of mass consumption. 26 Academy of Management Studies, Dehradun
  27. 27. CHAPTER 3. ORGANIZATIONAL STRUCTURE  History and Organizational Structure of Lumbini Beverages Pvt. Ltd. Hajipur 27Academy of Management Studies, Dehradun
  28. 28. HISTORY AND ORGANIZATIONAL STRUCTURE OF LUMBINI BEVERAGES PVT. LTD. HAJIPURHistory of Lumbini Beverages Pvt. Ltd. Steel City beverages Pvt. Ltd. is situated at Adityapur Kandra Road inJamshedpur. “Rushabh Marketing Pvt. Ltd.” is the marketing division of Steel Citybeverages. Steel City beverages Pvt. Ltd. is a mother unit and its whole marketingactivities are done through Rushabh Marketing Pvt. Ltd. Steel City beverages is one ofthe Pepsi foods Bottling plants in the country and one of the three in Eastern India. Theother two Calcutta and Guwahati. But from 01-04-1997 “Pepsi Foods Ltd. India”determines to open another bottling plant which is situated at Hajipur namely “LumbiniBeverages Pvt. Ltd.” It is only for North Bihar. Steel City beverages Pvt. Ltd. was established by Late Mr. Dharam ChandKamani in the month of June 1967. The machineries of its main plant were imported in1968 and production started in March 1969. Before the establishment of Steel City beverages Pvt. Ltd. Coca Cola was notmuch popular among people of Bihar state as pure soft drink. Because at that time thebottles of Coca Cola was supplied by the outsiders who were unable to make Coca Colapopular in Bihar. So after considering the needs and desires of people Mr. Dharma ChandKamani brought in Bihar. With this effort Coca Cola become popular among the peopleof Bihar. But in 1977 due to the sudden change I the policies of the Government the importlicense for the concentrate of Coca Cola was stopped. So Steel City beverages Pvt. Ltd.had to walk over to Indian Concentrate Companies. They were modem food industriessupplied concentrate of double seven and non ice cream soda. In 1983 the companyintroduced a cola drink “THRILL” of Mc-Dowell & Co. Ltd. in the place of Doubleseven and triangular and in the very next year two soft drink “RUSH” an orangeflavoured and “SPRINT” as lemon flavoured of Mc-Dowell & Co. Ltd were introduced. 28 Academy of Management Studies, Dehradun
  29. 29. Before some months “Ananda Marketing Pvt. Ltd. was the marketing division ofLumbini Beverages Pvt. Ltd. But at this time, Lumbini Beverages Pvt. Ltd. is doingmarketing with its own name. Thus it can be seen that Lumbini Beverages Pvt. Ltd. has made tremendous movetowards the introduction and development of soft drinks industries on the whole, andNorth Bihar in particular. It has made production of perfect hygiene and standard SoftDrink as main objective. 29 Academy of Management Studies, Dehradun
  30. 30. ORGANIZATIONAL STRUCTURE OF LUMBINI BEVERAGES PVT. LTD. An ideal organizational structure facilities management and the operation of theenterprise and it help the organization in achieving its goal. In a simple term in various parts or component are interrelated or interconnectedand this way it is the established pattern or relationship among various function of theorganization in the established manner. The managing director holds the top position. At present, the managing director ofLumbini Beverages Pvt. Ltd. is Mr. Charan Khilani. But the overall policies regardingmanagement decisions and all executives function or performance look after by the dayto day decision and general administration as well as management. The MD has given thepower of attorney and authority to director Mr. Ravi Khilani. Mr. Ravi Khilani who iswell advised by the MD. The director Mr. Ravi Khilani looks after all functional departments that salesproduction, account, personnel and purchase. Though the manager all the functionaldepartments has specially designated as head of personnel department. Every department has to report directly to the managing director and isresponsible to his only for working in spite of this all departments is under the control ofthe director Mr. Ravi Khilani. Because he is the Chief Executive of the company citedearlier. The overall organizational structure can be shown as: 30 Academy of Management Studies, Dehradun
  31. 31. OVERALL ORGANIZATIONAL STRUCTURE OF LUMBINI BEVERAGES PVT. LTD., HAJIPUR BOARD OF DIRECTOR MANAGING DIRECTOR CEOFINANCE PLANT P.A.M. H.R.MANAGER MANAGER MANAGER SHIPPING A/C SHIFT ENGINEER COORDINATOR H.R.ASSISTANT EXECUTIVE WORKER /A/C CLERK OPERATOR H.R.ASSISTANT CLERK ASSIS. HOST.D.M. M.E.M. M.D.M. Q.C..A.D.C. SENIOR TECHNICIAN M.D.C.EXECUTIVEC.E. TECHNICIAN M.E. 31 Academy of Management Studies, Dehradun
  32. 32. 32Academy of Management Studies, Dehradun
  33. 33. The marketing manager is in charge of all marketing activities i.e. sales promotion,publicity and advertisement, marketing study and shipping. But the main function of themarketing is to exercise the control over the channel of distribution. The marketing manager is assisted by sales executives, city sales executives andrural sales executives and sales executive of shipping department as follows:- DIRECTOR MANAGING DIRECTOR HEAD OF SALESSTATISTICIAN CITY SALES SALES SALES EXECUTIVES EXECUTIVES SUPERVISOR 33 Academy of Management Studies, Dehradun
  34. 34. CHAPTER 4.A THEORETICAL FRAME WORK OF CHANNEL OF DISTRIBUTION 34 Academy of Management Studies, Dehradun
  35. 35. A THEORETICAL FRAME WORK OF CHANNEL OF DISTRIBUTION “Marketing channels are sets of interdependent organization involved in theprocess of making a product or service available for use or consumption.” The main objective of the marketing process is to distribute the products to theactual users. This function involves a number of sub-functions to be performed by aproducer or manufacturer. These two functions are most important first, the creation ofdemand is made through the process of advertising and sales promotion activities. On theother hand the distribution through the channels of distribution. The decision relating tothe channel of distribution is a very important decision from the firm point of viewbecause the selected channels affect considerable other marketing decision. Suchdecisions are of long term nature and exercise their impact on the cost structure of thefirm also. By channel distribution mean the intermediaries or the process through which thegoods products are transferred from the producer to the ultimate users. Now a day any of the producers possibly do not sell their goods directly to thefinal users. There are a lot of intermediaries between producers and consumer, bearing avariety of name performing various kinds of function. Some intermediaries likewholesalers and retailers buy and resale taking the bill. They are known as merchantmiddle men and other are brokers, representative sales agent who seeks or search forcustomers and negotiate on the behalf of the producer but do not take of goods. These arecalled as middlemen. The manufacturer and its distributive outlets share common objective to sell themanufactured products at a profit. No doubt its objective differs with the marketingcircumstance. Even though many variation of specific objective fits into some categories.These are as follows:-  To built distribution network loyalty  To stimulate distribution  To develop managerial efficiency in distribution organization  To identify the source of supply for the product line at the final buyers level 35 Academy of Management Studies, Dehradun
  36. 36. The channel of distribution is a structure which organized and presents a choiceamong alternative channels of distribution of the different marketing situations faced byretailers, whole sellers and producers with in the structure. It may be considered as aseries of function which must be performed in order to make producers efficiency. To bearing maximum profits of all institutions concerned a channel of distributionshould be treated as a unit of total system of action. The activities of the manufacturerneed to be coordinated with these middlemen used in the distribution of given product. The important of middlemen in channel of distributional can be over emphasized.It is that who- 1. Collects concentrates the output of various producers, 2. Subdivides these into lot desired by the customers gathers various items together in the assortment wanted and 3. Disperses the assortment to consumer industrial buyers. The role of middlemen that of specialist in concentration equalization and dispersionbesides he side in the creation of the time from and procession utilities. 36 Academy of Management Studies, Dehradun
  37. 37. DECISION MAKING FOR CHANNEL OF DISTRIBUTION The marketing executive must undertake to following steps in order to establishthe channel of distribution for a company. 1. He/She must understand the retail and wholesales market and type of middlemen available in both. 2. He/She must understand the various conflicts which continually exist between and within the channel. 3. He/She must select the general channel to be used keeping in mind the goals of the company marketing programme and the job to be done by distribution system. 4. He/She must take decision regarding be intensity of the distribution (i.e. the number of middlemen) to be used each level and each market. 5. He/She must select the specific firms which will handle his product and then manage the day to day working relationship with them. 6. He/She must determine the methods and the procedure in firms (i.e. use of the transportation and warehouse facilities and services in firms making programme) in the physical distribution of the product.Types of Marketing Channels 1. Direct marketing channel : A marketing channel that has no intermediaries level 2. Indirect marketing channel : Channels containing one or more intermediariesCustomer Marketing ChannelsChannel 1. Manufacturer………………………………………………..…ConsumerChannel 2. Manufacturer……………Retailer……………………………ConsumerChannel 3. Manufacturer……...Wholesaler………….Retailer…………ConsumerChannel 4. Manufacture…….Wholesaler……Jobber……Retailer…….Consumer 37 Academy of Management Studies, Dehradun
  38. 38. CHANNEL DYNAMICS Distribution channel do not stand still. New wholesaling and retailing institutionemerge and new channel system evolves. There are four types of marketing channels. 1. Conventional Distribution Channel A Channel consist one or more independent wholesaler and retailers. Each is a separate business seeking to maximize its own profits even if this goal reduces profit for the system as a whole. No. of channel members has complete or substantial control over the other members. 2. Vertical Marketing Channel This is most recent marketing channel. A distribution channel system as producers, wholesaler and retailers act as unified systems. One channel member, the channel captain owns the others or franchises them or has so much power that they all co-operate. The channel captain can be the producer, the wholesaler or the retailer. 3. Horizontal Marketing Channel A distribution channel system in which two or more unrelated companies put together resources or programmes to exploit an emerging marketing opportunity. 4. Multi Channel Marketing In the past, many companies sold to single market through a single channel. Multi channel marketing occurs when a single firm uses two or more marketing channels to reach one or more customer segments. 38 Academy of Management Studies, Dehradun
  39. 39. RETAILING Includes all the activities involved in selling goods or services directly to finalconsumers for personal non-business use. A retailer or retail store is any businessenterprise whose sales volume comes primarily from retailing. Retailers are the last but not the least in the marketing channel through whom theeventual transfer of ownership of goods take place. The use of retailer boils down to theirsuperior efficiency in making goods widely available and accessible to target markets. Inmost of the cases the retailers performs the important functions mentioned as under. 1. Information 2. Promotion 3. Negotiation 4. Ordering 5. Financing 6. Risk Taking 7. Physical Possession 8. Payment 9. TitleThe major types of retailer are as following:- 1. Specialty Store: - They sell narrow product line with deep assortment. 2. Departmental stores: - They sell several product line with each line operated as separate department managed by specialist buyers or merchandisers. 3. Super market: - They are relatively large, low cost, low margin, high volume self service operation designed to serve total needs for food, laundry and household maintenance product. 4. Convenience Store: - These are relatively small store located near residential areas, open long hours, seven days a week and carrying an united lines of high turn over convenience products at slightly higher prices. 39 Academy of Management Studies, Dehradun
  40. 40. 5. Discount Store: - These sell standard merchandise at lower prices with lower margins and higher volumes.6. Off price Retailers: - These sell the merchandise which are bought at less than regular wholesale prices and sold as less than retail. These may be of three types mentioned as under: a) Factory orders b) Independent off price retailers c) Warehouse clubs ( Wholesale clubs ) 40 Academy of Management Studies, Dehradun
  41. 41. Chapter 5.CHANNEL OF DISTRIBUTION OF LUMBINI BEVERAGES PVT. LTD. 41 Academy of Management Studies, Dehradun
  42. 42. Channel of Distribution of Lumbini Beverages Pvt. Ltd. Hajipur, in Patna To make its products available at the right places at the right time in the market,the sales department of the company pays major attention on controlling the channels ofdistribution. Single type of markets channel is maintained by the company right from itspioneering stage. The nature of the channel is as follows:- Company Distributors Dealers Different Outlet Owners Consumers At first the soft drinks supplied to the distributors directly. Retailers or owners ofany outlet can not take the delivery from company. They have to take the products fromtheir respective or nearest distributor. There are about 50 distributors and innumerable number of retail outlets operatingwith the company in its entire market areas which contains total Bihar. In all theimportant places of entire territory this company has its distributors. These distributors selected on the basis of assurance given by them regarding theminimum sales which they have to maintain annually. The selection is also done on thebasis of the financial position and reputation of distributor in the market. As for examplein appointing a distributor first engaged in soft drink business second priority is given tothose people who are in cigarette selling business. Depending upon the market, eachdistributor in the initial stage has to deposit some security money. 42 Academy of Management Studies, Dehradun
  43. 43. The retailers are selected by the distributor fixed criteria for the selection orappointment or retailers from the side of the distributor. Any one like Panwala,Cigarettewala or any other shopkeeper can have the stall for the sale of soft drinks andthey are called retailers or outlet owners. They have to give assurance to the concerningdistributor for better sale and at the time of taking delivery they have to deposit thesecurity i.e. the charges if the empty bottles with specified retailers purchasing price. Thecharges if the empty bottles with specified retailers purchasing price. The distributor atfirst has to seek the permission of sales department for the number of cases of soft drinksrequired by them. After getting the proper authority from sales department paying therequisite amount either cash or demand draft. 43 Academy of Management Studies, Dehradun
  44. 44. WAREHOUSING Every company has to store its finished goods until they sold. A strong facility isnecessary because production and consumption cycles rarely match. Warehousing is not a simply storing activity but a package of services thatenables the smooth running of the industry. The stores must be in constant touch with the use department in order to provideuninterrupted services to the manufacture and its decision since working capital is lockedup in the warehousing stores in equal to money. The stores functions can be organized in the following manner:- a) To receive raw material components equipments etc. b) To meet the demand of use department by issuing the order c) Accounting the transaction properly. d) Minimizing obsolescence surplus and scrap by right identification and using correct preservation method. The company supply finished products frequently to different distributors as perthe demand. Every distributor keeps a minimum stock of different products of the product lineso that the uninterrupted supply could not affect. In the industrial sector service of optimization where boils down to any exerciseof optimization where limited available resources are to be distributed equitably. The problem arises from the material that are in stock the form of capital cost,storage loss, pilferage obsolescence, insurance, handling, documentation etc. Serviceslevel that can be maintained and hence the concept stores in money should be understoodby every body in the organization. 44 Academy of Management Studies, Dehradun
  45. 45. INVENTORY DECISION(1) Branding and Packaging Out of the total market activities some are directly performed and controlled by “Lumbini Beverages Pvt. Ltd.” itself some are followed according to the standing instruction of “Pepsi Foods Pvt. Ltd. So far as the process of branding and packaging is concerned the “Lumbini Beverages Pvt. Ltd.” Along with the authorized bottle in India adopt the same pattern.(2) Wholesaling Wholesaling includes all the activities involved in selling goods or services to those who buy for resale or business use. Manufactures use wholesalers because wholesalers can perform function better and more cost effectively than the manufacture can. These functions are not limited to selling and promoting, buying and assortment building bulk barking, warehousing, transporting financial risk bearing dissemination of marketing information and provision of management services and consulting. Like retailers wholesaler must decide on target market, product assortment and services promotion and place. The most successful wholesalers are those who adopt their services to meet and target customer’s needs, recognizing that existing to add value to the channel. 45 Academy of Management Studies, Dehradun
  46. 46. (3) Retailing Retailing includes all the activities involved in selling goods or services directly to find consumer for their personal non-business use. A retailer or retail store is any enterprise which sales volume comes primarily form retailing. All marketer retailers must prepare marketing plans that include decision on target market. So the marketing channels can be viewed as a set of interdependent organization with high potential for conflict. Then why would any business chosen to become part of channel system. 46 Academy of Management Studies, Dehradun
  47. 47. TRANSPORTATION Transportation is life blood of business management and commerce. The purchaseoffice’s job in incomplete until and unless he ensures that the material is shipped from thevendor’s premises located in different areas to his organization. Purchasing thetransportation is a key element in his job particularly in the context of the transportationcost. In deciding to transporting models shippers can choose from private contract andcommon carriers. Transport decisions must consider the complex trade off between varioustransportation mode and their implications for other distribution elements such aswarehousing and inventory. 47 Academy of Management Studies, Dehradun
  48. 48. DISTRIBUTION OF PEPSIHere there are four systems of distribution channels.Channel 1. Manufacturer…………………………………………………ConsumerChannel 2. Manufacturer……………Retailer…………………………..ConsumerChannel 3. Manufacturer………Wholesaler………….Retailer…………ConsumerChannel 4. Manufacture…….Wholesaler……Jobber……Retailer……..Consumer Channel of distribution of Lumbini Beverages Pvt. Ltd. By Lorry or Truck Distributor Dealers of customer 48 Academy of Management Studies, Dehradun
  49. 49. PERFORMANCE OF PATNA Patna has a significant role for Pepsi, in products are supplied by “LumbiniBeverages Pvt. Ltd., Hajipur.’ There are more than eight hundred including exclusive and nonexclusive outletsof Pepsi in proper Patna. The highest sale of this year __________ cases was in themonth of May and total sale of this year was……………..cases so far. Hierarchy is also necessary to understand the capacity of Patna town.HIERARCHY OF PATNA Distributor Consumer Executive Sales Man Accountant Vehicle Loader and Unloader 49 Academy of Management Studies, Dehradun
  50. 50. STUDY ON PRODUCTS Product line is a group of product, that are closely related because they satisfy aclass of needs or used together or sole to the same customer groups or marketed throughthe same types of outlets or fall within given price range. Lumbini Beverages Pvt. Ltd.,has the following product line: Name Colour Flavour Pepsi Brunti Cola Mirinda Sunset Orange Mirinda Tetrazine Lemon Slice Sunset Mango 7’Up Colourless Lime Dew Colourless Lime Lehar Soda Tetrazine Lemon 50 Academy of Management Studies, Dehradun
  51. 51. PRICE SHEET OUTLET RATE C.RATEFLAVOUR PACK PCS RATE PER RATE PER SIZE PCS PCS RATE RATEPEPSI COLA 200 ML 24 168 7 192 8PEPSI COLA 300 ML 24 214 9 240 10PEPSI COLA 600 ML 24 454 19 480 20PEPSI COLA 2000 ML 9 459 51 495 55MIRINDA 200 ML 24 168 7 192 8ORANGEMIRINDA 300 ML 24 214 9 240 10ORANGEMIRINDA 600 ML 24 454 19 480 20ORANGEMIRINDA 2000 ML 9 459 51 495 55ORANGEMIRINDA 200 ML 24 168 7 192 8LEMONMIRINDA 600 ML 24 214 9 240 10LEMON7UP 200 ML 24 168 7 192 87UP 300 ML 24 214 9 240 107UP 600 ML 24 454 19 480 207UP 2000 ML 9 459 51 495 55MOUNTAIN 200 ML 24 168 7 192 8DEWMOUNTAIN 600 ML 24 454 19 480 20DEWMOUNTAIN 2000 ML 9 459 51 495 55DEWSLICE 250 ML 24 214 9 240 10SLICE 500 ML 24 498 21 552 23SLICE 1200 ML 12 532 44 576 48MY CAN 250 ML 24 330 14 360 15PEPSI DIAT 330 ML 24 564 23.5 600 25SLICE 200 ML 30 285 10 360 12TETRAPACKLEHER SODA 300 ML 24 214 9 240 10LEHER SODA 600 ML 24 454 19 480 20 51 Academy of Management Studies, Dehradun
  52. 52. STUDY ON RETAILERSRetail Shop type I. Monopoly Retail Shop : The shop selling only one company’s Products II. Mix Shop : The shop selling many company’s Products The retailers can build a great deal of goodwill for the firm. The marketingstrength depends on the strengths of retail dealers. Research has conduct survey on different types of outlet like bakeries, cold drinkparlor, Booth and general stores etc. According to his survey, the major reasons for selling Pepsi products are: (1) Brand Image 18% (2) Customer Demand 20% (3) Profit Margin 05% (4) Advertisement 30% (5) Good Quality 10% (6) Sales Promotion for Retailers 07% (7) Sales Promotion for Consumers 10% 52 Academy of Management Studies, Dehradun
  53. 53. BRAND PREFRENCE Pepsi products are most popular brand but Coke products are very dear brand ofconsumers due to advertisement. After the collection of different views from consumer which includes,servicemen, students, and businessman and observing the sale of Pepsi products. Theresearch has calculated the preference consumption of different Pepsi products by thepeople of PATNA Brand Preference of Consumers Flavour % Consumption Cola 49% Orange 16% Lemon 12% Lime 07% Mango 17% 15% 17% Cola 49% Orange Lem on Lim e Mango 7% 7 Up 12% 16% 53 Academy of Management Studies, Dehradun
  54. 54. STUDYING THE MARKET POTENTIAL The market potential is an estimate of the maximum possible sales opportunitiespresent in a particular market segment and open to all sellers of a good and service orduring a stated future period. A market potential indicates how much of a particularproduct can be sold to a particular market segment. Market potential can be determinedby measuring the sales in different areas. The data has collected from 100 outlets, which are situated in different areas ofPatna. According to that, the per day sale of Pepsi Products is 154 carats and the per daysale of sale of Coke Products is 148 crates. Per Day Sales in Crate of Products Coca Cola 48% Pepsi Pepsi Coca Cola 52% 54 Academy of Management Studies, Dehradun
  55. 55. Chapter 7. Conclusion and Suggestions 55Academy of Management Studies, Dehradun
  56. 56. Conclusion and Suggestion In the earlier chapters of this report on various aspects of soft drinks industry withparticular reference to establishment of ‘’Lumbini Beverages Pvt. Ltd.’’ Itsorganizational structure and channel of Distribution Lumbini Beverage Pvt. Ltd. etc havebeen studied Present chapter is an attempt to summaries the whole report and present aview suggestion. From the data analysis and survey conducted by me, I arrived at the followingconclusions:- (1) Pepsi has the entire flavor i.e. Cola, Leman, Orange, Mango in the market and its market share is comparatively more than Coke. (2) The majority of the retailers deal in all brands of Pepsi and Coca-Cola. (3) One of the major drawbacks of Pepsi products is that all the flavors do not reach at each and every retail outlets but competitors products do reach that is why competitor enters in to Pepsi exclusive outlets . (4) The major problem faced by the distributor is the shortage of supply particularly pets. (5) Distributor functions just as order takes; they should contribute me and communicate to the retailers. (6) It should be checked that whether our products is reaching to the outlets timely and regularly or not. (7) Although the Visi-cooler, Sign board/Display rack and Glass strength provided by Pepsi are more than Coke but still there are number of retailers, who are either not having these or others have provided them . (8) There is irregular in the supply of Visi-cooler, some retailers, which sell more are not provided Visi-cooler which some retailers, which sell less, are provided visi- cooler. (9) Some of the Visi-cooler provided by Pepsi is not functioning properly, complaints regularly, are entertained after a long time. (10)Most of the retailers are in need of board but not provided by the Pepsi Company. (11)Most of the retailer’s especially small retailers have complained that the sales man does not inform about any sales promotional scheme. (12)The big retailers of Pepsi do not maintain the purity in the Visi-cooler and dictate their own terms and conditions.. 56 Academy of Management Studies, Dehradun
  57. 57. Suggestions Lumbini Beverages Pvt. Ltd. should introduce some change in its marketingfunction and advertising to market more rational. The following factors to be worthy ofconsideration:- 1. A complain Register should be provided by the company to every distributor in every route so that, retailers/customers can write their problems. The complain register should be checked by consumer executive and depot in charge at time to time. 2. A clear notification should be given to teach distributor and each route agent to give cash memo (with printed number) and maintain route card for every transaction. 3. Proper care should be given the company’s employees at the time of scheme close. Signature of scheme receiving on the cash memo should be taken and it should be also maintained in route card. Claim of scheme should be passed after the deeply stud y of above three points i.e. difference between opening stock and closing, signature of scheme receiving on the cash memo and sells maintained in the route card. 4. Some retailers keep other companies products in the Pepsi’s fridge, while is provided by the company. To check additional scheme be given in every month, in the peak seasons After the checking of Pepsi’s Fridge (3or 4 times in every month ) if It is found that retailer does not keep other companies products in the Pepsi’s Pepsi fridge the claim of scheme should be passed . Thus we can improve/increase its sell and employee’s activities. 5. There is no electricity problem in the whole area of Patna. For chilled soft drink, ice box which is compulsory and dredge both should be provided by the company. 6. The numbers of outlets are too much. So it is required to short the route and extra vehicles/tricycles provide in this route. 7. Facilities provided by the company should be increased. Facilities requirements should be fulfilled in all the rural and urban area properly after deeply study for various aspects or retailers by the help of company employee and depot incharge. 8. Number of tricycle can be installed at various place like public during the peal hours i.e. evening and busy roads and chowks near the town`s commercial 57 Academy of Management Studies, Dehradun
  58. 58. centers. Care should be taken to install these tricycles under a shady tree where providing relief from h eat to the prospective customers as well as the vendor. 9. All these tricycles targeted the tired and thirsty consumer or the road and other place, care should be taken that soft drinks in the ice box are always chilled and ice readily available. 10. The vendors must be taught to be polite to the consumers. 11. The vendors can also be provided with uniform by the company in order to give them visibility. 12. An appropriate name should be given to these tricycles and properly advertisement thus giving them some sort of identity. 13. In winters, as the sales from these tricycles may be very low because of seasonal factors Beverages Pvt. Ltd. should think of introducing such packs Beaver its various brands of beverages . 14. It is vital take for “Lumbini Beverages Pvt. Ltd. that maintain the performance of Pepsi in future therefore performance of soft drink was very good in this year in comparison of coke. 15. Now a day with the introduction of tetra packs such as fruity, Tree Top etc. So Lumbini Beverages Pvt. Ltd. should think of introducing such packs of its various brands of beverages. 16. Lumbini beverages Pvt. Ltd. should be provided it’s the rural area also. 17. Coke is the only competitor of Pepsi. So we should try to keep every information about Coke i.e. prices scheme, policy etc. always it will help in Decision making. At last only this can be said that these suggestions are mot totally but evenpartially can be used by the Lumbini Beverages Pvt. Ltd. it would be pleasure for me andis certain that if these are carried out by management , it will helpful in establishing theLumbini Beverages Pvt. Ltd. on a more stronger footing. 58 Academy of Management Studies, Dehradun
  59. 59. QUESTIONNAIREName: - …………………………………………………………………………………..Address: - ……………………………………………………………………………….. ………………………………………………………………….......................Contact No: - ……………………………………………………………………………(1) Monthly sales (in Rs.) (a) Less than 5000 (b) Between 5000 to 10,000 (c) 10,000 to 15,000 (d) Above 15,000(2) Number of carets sold per month of soft drinks. (a) 0 - 50 carets (b) 50 to 100 carets (c) 100 to 150 carets (d) 150 to 200 carets(3) Which type of outlet? (a) General Store (b) Grocery (c) Betel Shop (d) Sweet Shop(4) Which brands of soft drinks are available in the outlet? (a) Pepsi Cola (b) Mirinda (O) (c) Mirinda (L) (d) 7’Up (e) Slice (f) Mountain Dew(5) When a customer comes to your shop which brand of soft drinks does he/she demands? (Rank them) (a) Pepsi (b) Coca Cola (c) Others(6) Do you know about all flavours pack (size) and respective wholesale price Pepsi soft drinks. (a) Yes (b) No(7) Which company’s soft drink is demanded most? (a) 0 - 50 carets (b) 50 to 100 carets (c) 100 to 150 carets (d) 150 to 200 carets(8) What is the position delivery of Pepsi products? (a) Very Good (b) Good (c) Bad (d) Worse 59 Academy of Management Studies, Dehradun
  60. 60. (9) What is the frequency of the visit of Pepsi executive? (a) Daily (b) Alternate Day (c) Weekly (d) Fortnightly(10) Which factors affect the sale most? (a) Advertisement (b) Scheme (c) Presence (d) Taste (e) Price (f) Others(11) Which company Visi-Cooler do you have? (a) Pepsi (b) Coca Cola (c) Both (d) Own(12) What is the position of maintenance work of refrigerator done by Pepsi Company? (a) Highly satisfactory (b) satisfactory (c) Less satisfactory (d) Not satisfactory(13) Have you been provided with sign board/display rack by Coke Company? (a) Yes (b) No(14) Have you any type of dissatisfaction regarding the product. It yes then why? ………………………………………………………………………………(15) Please give any suggestion for improvement regarding distribution, brand,bottling etc. ………………………………………………………………………………………………………………………………………………………………...………………………………………………………………………………………(16) What is your opinion about Pepsi products? …………………………………………………………………………………… …………………………………………………………………………………… Thank You Place:-…………………… Surveyed by Date:- …………………… 60 Academy of Management Studies, Dehradun
  61. 61. 61Academy of Management Studies, Dehradun

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