OVERVIEW The size of the Indian food processing industry is around $ 65.6 billion, including $20.6 billion of value added products. The health beverage industry is valued at $230 million. The Indian beverage industry faces over supply in segments like coffee and tea. Indian hot beverage market is a tea dominant market. The total soft drink (carbonated beverages and juices) market is estimated at 284 million crates a year or $1 billion. The market is highly seasonal in nature with consumption varying from 25 million crates per month during peak season to 15 million during offseason. The market is predominantly urban with 25 per cent contribution from rural areas. Mineral water market in India is a 65 million crates ($50 million) industry.
PRIMARY RESEARCH Parle Agro Pvt. Ltd.
Parle Agro Pvt. Ltd. Established in 1985 and based in Mumbai Most trusted in Indian beverage, packaged drinking water and confectionery industry Manufacturer and distributor of fruit and milk drinks, packaged water etc Main focus on Quality, Nutrition and Taste
Marketing Mix Product Price Mango Frooti Serving to mass market Appy Fizz Bailly No aggressive pricing Appy Classic strategies Butter Cup Popularity and positive Mintrox Image of the brand helps in V3 Fitness LMN selling Grappo Fizz Saint Juice Frewt Éclair Hippo
Place Promotions Reaching all parts of India Digen Verma Ad Campaign with own factories and Creating mystry and building franchisee up a hype with teasers Metropolitan cities like Outdoor advertisements Mumbai, Chennai, Banglor Free samples e, Delhi and many others Creative ad campaigns which Confectionery factory at associates features of the Ahemdabad particular product with the consumer Reaching remote rural market Events and exhibitions for distributors
Leading Position Market Share 30% Frooti 70% Others
Market Details Size of market Rs.700 million1.50% 19.50% Bisleri 2% 48% Bailly 4% Aquafina Kinely 3% Himalaya 22% Kingfisher Local
Demand Forecasting Based on historical data Quaterly Analyzing sales data of past 3 to 6 months and considering distributor’s demand Studying consumer behavior and analyzing current trends
Branding Inputs Redoing the graphics for “Frooti” brand to push its sales Introduction of Snack Bites “Hippo” Attractive packaging Supply Chain Management Franchisee Method
International Competition People follow us. We don’t follow anyone. 85000 Cr. FMCG industry growing steadily Aggressive growth plans and marketing strategies Heavy investment of Rs.950 Cr. to build retail visibility for its water brand “Bailly” Increasing water manufacturing factories and increasing distribution channels for its water brand Exporting “Frooti” to U.S. and U.K. Mass market in India
Domestic Competition Major competition from Dabur and Pepsi Surveys for trekking competition Entering juice industry with a new product “Saint Juice” Lemon based drink “LMN” for Indian consumers Entering healthcare brand with Digestive water “Bailly”
Recent Development Lowering down the prices of Frooti and Appy Fizz Market potential for flavored water in India After Sales Services Feedback from Consumer Complaint Department
HISTORY Pepsi Co Brands are available in 200 Countries Some of the Pepsi Co Brands names are more than 100 year old but the corporation is relative young Pepsi Co was founded in 1965 Pepsi and Coca cola merge with each other and the name of the product is Pepsi Cola. Pepsi Co merged with the Quaker oats Company in 2001 Pepsi is a world leader in convenient snacks, foods and beverages Revenue is more than 39 billion Dollars and over 185, 000 employees The company consists of Pepsi Co Americas Foods (PAF), Pepsi Co Americas Beverages (PAB) and Pepsi Co International (PI) Pepsi Co International includes in the United Kingdom, Europe, Africa Middle East and Asia
4P’S OF PEPSICO Prices Pepsi has adopted a market penetration price at the time when it was introduced. Coca cola covered the large market in India but now the price of Pepsi cola is same as of its competitors
4P’S OF PEPSICO Places Pepsi cola is available in more than 191 countries. Pepsi has 730 plants working correctly around the world and in USA and Canada 200 plants are working there rest 530 are working in other countries of the world as well as working in India
4P’S OF PEPSICO Promotion Pepsi does its promotion through media; electronic media as well as print media through flyers, by sponsoring cricket matches and in many other places. Promotion is also done through print media e.g. Newspapers are design of Pepsi can. The first of many new designs of Pepsi were released in 2007. The Pepsi have signed some agreements with a very strong and expanded retailers such as pizza hut and KFC when you go to pizza hut or KFC you will find only the Pepsi products and nor its competitors products. These agreements are based on the incentives that Pepsi offers to these retailers. Pepsi has continued using product endorsement by using TV actors/ models and cricketers in order to promote their products.
COMPETITORS OF PEPSI Pepsi is the largest beverage company in India with 65% market shares. In 1994 the Coca cola Company reduced the price to Rs.5 and Pepsi has to reduce the price in order to compete. In doing this both companies had bear a huge losses. Coke had a loss of 9 million whereas the Pepsi bearing a loss of 14 million The following are some competitors of the Pepsi Coca Cola R. C. Cola
DEMAND FORECASTINGImportance : Essential for making accurate supply chain decisions Ensuring the company’s successFor Example : How much of the product to make, how much to inventory, how much to replenish and how much to order
FORECASTING METHODS Time-Series Method Taking into account the previous two years historical data to forecast its future demand Qualitative Method Using historical data and market intelligence as a guide. And a yearly demand plan is forecasted in this way which is then further divided into monthly, weekly and daily plans accordingly Causal Method Depends mainly on state of the economy, interest rates, and product pricing that can cause a change in the demand
SUPPLY CHAIN MANAGEMENT The major focus is to determine the processes that are to be integrated in the supply chain network with their corresponding suppliers, distribution centers and the associated transport links between them
SOURCING DECISIONS INSUPPLY CHAIN Pointing out sources of supply and negotiate with suppliers Sourcing of raw material from local and foreign suppliers Deciding terms and conditions with supplier Coordinating activities and documentation with suppliers Cost comparisons and quality assurance.
OUTPUTS Pepsi has captured the market like a storm and has maintained its market share; mainly because of its supply chain effectiveness The well informed and widespread supply chain has kept Pepsi on its feet The competitive and supply chain strategy (responsive) achieve strategic fit and there is excellent coordination and integration amongst all the supply chain components. It is indeed the supply chain of the new generation
DISTRIBUTION REVIEW Pepsi applied two methods to distribute their products Direct Distribution: Pepsi Direct distribute their Product to Whole Sellers, Restaurants, Hotels, Pizza hut, KFC, Saver Food and Metro etc Export Parties Indirect Distribution Through Base market Distributions Through Outstation Distributors
PLACING DISTRIBUTION The distribution system of Pepsi Cola Company is organized as follows There are branches in every city of India and these branches are controlled by the head branches which is located in Mumbai. There is some Sales Manager and sales executives. The sales executive is also known as Territory Development Manager (TDM) who is responsible about the trucks. Then further down is the sales officer who has a wide authority and then there is a sales supervisor who looks after the trucks and finally salesman. Each sales manager handles 60 trucks. The distribution agencies are formed in every large city of India. The trucks of the company supplies products to these distribution agencies and then these agent further supplies these products to the retailers. Before delivering the products some certain guiding Principles are followed by Pepsi Co Applicant must have 20-25 vehicles (Depending on the Area). Applicant must have 20, 000 Cases of Empty Bottles. Applicant must Deposit Rs. 10, 00, 000 as a security.
BRANDING INPUT Pepsi has a long-standing commitment to protecting the consumer whose trust and confidence in its products in the bedrock of its success. In order to ensure that Consumers stay inform about the global quality of all Pepsi product sold in the world, Pepsi product carry a quality assurance seal on them. Pepsi commitment is to deliver sustained growth, through empowered people, acting with responsibility and building trust
RECOMMENDATIONS Bringing Pepsi’s packaging raw material in the just in time system (JIT). Use of direct store delivery (DSD) model. By incorporating wireless technology, Pepsi’s account sales managers can take orders on-site, which are then remotely uploaded to a central order and routing system at headquarters via wireless connectivity
BRANDING INPUTS The famous Coca-Cola logo was created by John Pembertons bookkeeper, Frank Mason Robinson, in 1885 The equally famous Coca-Cola bottle, called the "contour bottle" within the company, but known to some as the "hobble skirt" bottle, was created in 1915 by bottle designer Earl R. Dean
COCA–COLA IN INDIA Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveal its formula to the Government and reduce its equity stake as required under the Foreign Regulation Act (FERA) which governed the operations of foreign companies in India In the new liberalized and deregulated environment in 1993, Coca-Cola made its re- entry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of
Cont…. At Present there are 3 COBO Regions and 27 COBO Units under HCCBPL and 1 FOBO Region and 12 FOBO Units under CCI. } COBO Territories – Coca cola owned bottling operations FOBO Territories- Franchisee owned bottling operations
MARKET SHARE Figures in %age Figures in %age MARKET SHARE IN COMPARISION IN CSD VARIOUS SEGMENTS 30 70 25 13.1 60 20 50 15 8.9 5.8 7.4 0.4 40 10 16.5 5 8.2 10 10.9 12.2 30 60 0 20 36 33 10 0 CSD FRUIT MINERAL JUICE WATER C0KE PRODUCTS MARKET SHARE PEPSI PRODUCTSSource-HCCBPL monthly circular –AC NIELSON
MARKET SIZE Currently offers nearly 400 brands in over 200 countries or territories and serves 1.5 billion servings each day At present Coca-Cola revenue is about $ 31 billion At present, Indian food and beverages industry is worth about Rs 4,220 billion
PRODUCT RANGE IN INDIA
Sparkling Beverages JuicesWater and Soda
PRICE STRATEGY Trade Promotion : Coca cola company gives incentives to middle men or retailers in way a that they offer them free samples and free empty bottles, by this these retailers and middle man push their product in the market. And that’s why coca cola seen more in the market. And they have a good sale in the market because according to the expert which product seen more in the market that sells more. They do agreements with shop keepers and stores for exclusive sale in that store. These stores are called as KEY accounts in their local language. And coke also invest heavy budget on these stores and offers them free samples and free bottles and some time cash incentives Different Price In Different Seasons : Some times Coca Cola Company change their product prices according to the season. Summer is supposed to be a good season for beverage industry in India. So in winter they reduce their prices to maintain their sales and profit. But normally they reduce the prices of their pet bottles or 1 litter glass bottle
PROMOTION STRATEGIES Getting shelves They get or purchase shelves in big departmental stores and display their products in that shelves in that style which show their product more clear and more attractive for the consumers Eye Catching Position Salesman of the coca cola company positions their freezers and their products in eye-catching positions. Normally they keep their freezers near the entrance of the stores Sale Promotion Company also do sponsorships with different college and school’s cafes and sponsors their sports events and other extra curriculum activities for getting market share UTC Scheme UTC mean under the crown scheme, coca cola often do this type of scheme and they offer very handy prizes in it. Like once they offer bicycles, caps, TV sets, cash prizes etc. This scheme is very much popular among children
ADVERTISEMENTCoca cola company use different mediums1. Print media2. TV commercial3. Billboards and holdings4. Print Media : They often use print media for advertisement. They have a separate department for print media5. POS Material : Pos material mean point of sale material this includes: posters and stickers display in the stores and in different areas
DISTRIBUTION SYSTEMDistribution Routes1)Key Accounts-Clubs, fine dine restaurants, hotels, Corporate houses2)Future Consumption- Super markets and Departmental stores3)Immediate Consumption- convenience stores like pan shopsDistribution System1)Direct distribution2)Indirect distributionDistribution chain at HCCBPLProduction Plant Warehouse Depot Warehouse Retail Stock Retail Shelf Consumer 2/21/2013 46
DISTRIBUTION CHANNELS Coca Cola Company makes two types of selling 1. Direct selling - In direct selling they supply their products in shops by using their own transports. They have almost 450 vehicles to supply their bottles. In this type of selling company have more profit margin 2. Indirect selling - They have their whole sellers and agencies to cover all area. Because it is very difficult for them to cover all area of India by their own so they have so many whole sellers and agencies to assure their customers for availability of coca cola products FACILITATING THE PRODUCT BY INFRASTRUCTURE For providing their product in good manner company has provided infrastructure these includes:1. Vizi cooler2. Freezers3. Display racks4. Free empty bottles and shells for bottles
FORECASTING FACTORS Basis of forecasting- Historical data- 10 % increase in demand than previous years sales GDP growth Seasonal variation Review done each week about sales turnover
HOW COKE DETERMINE THE YEARLYBUDGET determines its yearly budget by the : Coke 1. Sales volume - Coke determines its yearly budget through the sales volume. They first concentrate on the thing is “what is the condition of their sales?” if the condition is good of their sales then they definitely increase their production and sales volume. Otherwise they concentrate on their old strategies 2. Profitability - The second thing through which they determines budget is the “profit” .if they r getting profits with the high margin, then they definitely want to increase their profits in the next coming year. Every organization runs on the basis of getting high profits. No organization wants to face Loss in their business. To get profit is the first priority of the Coke 3. Target volume - To run the business every industry has some targets, which they want to achieve in a specific time period. If industry achieves those goals in that period then for the coming year it increases the volume of the target. So Coke Follow the same thing it has also some goals and targets to achieve in the given time period. When they succeed to achieve that target then they increase their target volume in the next year