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Project Study Report
On
Training Undertaken at

PepsiCo
“DISTRIBUTION CHANNEL MANAGEMENT OF PEPSICO PRODUCTS‟‟
Submitted...
DECLARATION

I, the undersigned, hereby declare that the Project Report entitled “A STUDY
ON DISTRIBUTION CHANNEL MANAGEME...
PREFACE
Experience is one of the most important parts for success. From internship training
programs one acquires knowledg...
ACKNOWLEDGEMENT
“Acknowledgement is an art, one can write glib stanzas without meaning a word,
and on the other hand one c...
EXECUTIVE SUMMARY

The following report by me discusses the detail of distribution channel
management of Mathura. Marketin...
CONTENTS

S.NO.
1

PARTICULAR
INTRODUCTION TO INDUSTRY

2
3

INTRODUCTION TO THE ORGANIZATION
RESEARCH METHODOLOGY

4
5
6
...
CHAPTER-1
Introduction to Industry

7
SOFT DRINK INDUSTRY IN INDIA
India with a population of more than 1.1 billion is potentially one of the largest
consumer m...
Dilution of equity, as the government felt that lots of foreign currency was
being wasted.
Manufacturing of the secret con...
Origin of Soft Drink in Jaipur
Late Charan Singh is credited with initiative to set up soft drink industry in the city.
He...
CHAPTER-2
Introduction to organization

11
PEPSICO IN INDIA
PepsiCo gained entry to India in 1988 by creating a joint venture with the
Punjab government- owned Punja...
hydrating and nutritional beverages such as Aquafina drinking water, isotonic
sports drinks –

Gatorade, Tropicana100% fru...
thousands of farmers by helping them refine their farming techniques and raise
farm productivity, and customized solutions...
farm income and enabled PepsiCo to procure world class chip-grade potatoes
for its Frito Lay snacks division. The company ...
Headquarter

: New York, U.S.

Area served

: Worldwide.

Industry type

Products

: Food and non alcoholic beverages.

: ...
In this project we studied the distribution channel management of PepsiCo
product in uttar pradesh. Generally distribution...
soda and slice. Varun Beverage is growing to new height, annual turn over of
plant is abiut 110 crores.

JAIPUR MARKETING ...
customers, the changes in legislation and regulations which have a direct
impact on an organization‟s activities, governme...
3. Syrup room, where syrup is prepared from sugar.
4. Bottle filling plant, where bottles are filled with the final produc...
water at a temperature of 80-100Û C, in the third compartment bottles are
treated with cold or normal water at room temper...
5. Acid room:
There are three tanks in this room. The first tank contains caustic soda, the 2nd
tank contains hot water an...
Packaging Process
PepsiCo is an industry leader in packaging- helping to promote and implement
standards for sustainable p...
PepsiCo follow five principles of sustainable packaging design:

Reduce Using less material in the packaging, to conserve ...
PRODUCT PROFILE:
Brand

Name

Flavors

MIRINDA

7UP

SLICE

MOUNTAN
DEW

Orange
lemon

Volume

Glass
Glass
Pet
Pet
Pet
Can...
Pet
Can

DIET
PEPSI

TROPICANA

Pineapple,
Mixed fruit,
Mango nectar,
Guava nectar,
Lychee,
Peach,
Strawberry,
Orange nect...
CONCEPTUAL BACKGROUND
“Marketing channels are sets of interdependent organization involved in the
process of making a prod...
To develop managerial efficiency in distribution organization
To identify the source of supply for the product line at the...
Types of Marketing Channels

1. Direct marketing channel: A marketing channel that has no intermediaries
level
2.Indirect ...
CHANNEL DYNAMICS

Distribution channel do not stand still. New wholesaling and retailing institution
emerge and new channe...
WHOLESALER
Wholesaler acts as a connecting link between manufacturer and retailer and
other merchants. Wholesalers buy the...
The major types of retailer are as following:-

1. Specialty Store: - They sell narrow product line with deep assortment.
...
Company

Distributors

Retailers

Consumers

At first the soft drinks supplied to the distributors directly. Retailers or ...
business. Depending upon the market, each distributor in the initial stage has to
deposit some security money.

The retail...
provide uninterrupted services to the manufacture and its decision since
working capital is locked up in the warehousing s...
(2) Wholesaling
Wholesaling includes all the activities involved in selling goods or services to
those who buy for resale ...
VISION AND MISSION OF THE ORGANISATION
VISION
“To build India‟s leading total beverages company, delighting consumers by
b...
Chapter-3
Research & Methodology

38
3.1 TITLE OF THE STUDY:
“DISTRIBUTION

CHANNEL

MANAGEMENT

OF

PEPSICO

PRODUCTS “

3.2Duration of the project
Duration o...
3.4 TYPES OF RESEARCH

PRIMARY DATA:It was collected by surveying the retailers in the four areas of Ranchi.

Ram nagar

R...
Dealer survey (retailer survey)
Dealer survey or retailer survey is one of the most accurate methods to known
about the ov...
2) SECONDARY DATA: It was collected from, General library research source like marketing book.
Advertising journals like m...
Confidential constraint -Due to confidential constraint certain information, not
all details could be obtained.

Chapter-4...
Findings
The Delivery of PepsiCo product are about to be timely.
Company executive timely visited in the outlets.
They tim...
Chapter-5
Analysis & Interpretation

45
Q-1 What kind of outlets has been used by you?

S.
NO.

Particulars

No of
Respondent

Percentage

1

Grocery

20

13%

2
...
Q-2 what is the proportion of different companies soft drinks are
available to you?

S.
NO.

Particulars

No of
Respondent...
Q- 3 Which is the most demanding soft drinks company by the

customer?

S.
NO.

Particulars

No of
Respondent

Percentage
...
Q-4 Is Schemes given by company are satisfactory?

S.
NO.

Particulars

No of
Respondent

Percentage

1

Yes

135

90%

2
...
Q-5 Is that true that „‟demanded product is available most‟‟?

S.
NO.

Particulars

No of
Respondent

Percentage

1

Yes

...
Q-6 Are you Satisfied with the delivery procedure of PepsiCo
Products.?

S.
NO.

Particulars

No of
Respondent

Percentage...
Q-7 How many times a PepsiCo product has been purchased by
you from distributor in a month?

S.
NO.

Particulars

No of
Re...
Q-8 What kind of Factors affect the sales most?

S.
NO.

Particulars

No of
Respondent

Percentage

1

Advertisement

60

...
Q-9 „‟PepsiCo has good relationship with the you‟‟ give your
views?

S.
NO.

Particulars

No of
Respondent

Percentage

1
...
Q-10 Are you Satisfied with the maintenance work of refrigerator
done by PepsiCo?

S.
NO.

Particulars

No of
Respondent

...
Chapter-6
Swot Analysis

56
STRENGTHS:PEPSICO has an excellent brand image.
Retailer friendly schemes.
Continuous & strategic improvements in the prom...
THREATS:Some dealers are not very satisfied with the services of Pepsi which directly
affect the sale of product.
Competit...
CHAPTER-7
CONCLUSION

59
CONCLUSION
PepsiCo was found by CELEB BRADHAM in 1902 at North Carolina in USA, its
present CEO is INDIRA NOOYI and PepsiC...
Chapter-8
Recommendation and
Suggestion

61
RECCOMONDATION & SUGGESTIONS
This is one of the most important and most difficult part of study. I arrived a certain
recom...
Chapter-9
Appendix

63
APPENDIX

(1) Which type of outlet?
(a) Grocery
(b) Convenience outlet
(c) Eatery
(2) Which company‟s soft drinks are avai...
(7) Do you get your favorite brand or product whenever you need or
demand more?.
(a) Yes
(b) No
(c) Sometimes
(8) Are you ...
(b) Coca Cola
(c) Both
(d) Own
(14) Are you satisfied with the maintenance work of refrigerator done by
PepsiCo?
(a) Highl...
Chapter-10
Bibliography

67
BIBLIOGRAPHY

BOOKS:
Philip Kotler, Marketing Management
G.C Beri, Marketing Research
C.R. Kothari, Research Methodology

...
Suggestions (if any):_______________________________________________________________
_____________________________________...
70
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Piyush singhal(pepsico)

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DISTRIBUTION CHANNEL MANAGEMENT OF PEPSICO PRODUCTS’’

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  1. 1. A Project Study Report On Training Undertaken at PepsiCo “DISTRIBUTION CHANNEL MANAGEMENT OF PEPSICO PRODUCTS‟‟ Submitted in partial fulfillment for the Award of degree of Master of Business Administration 2012-2014 Submitted by: Submitted by: Piyush agrawal Deepti Hariramani Enrollment no.12MARXX623 Asstt. Professor Arya College of Engineering & I.T. Kukas Jaipur. 1
  2. 2. DECLARATION I, the undersigned, hereby declare that the Project Report entitled “A STUDY ON DISTRIBUTION CHANNEL MANAGEMENT OF PEPSICO PRODUCTS”. Written and submitted by me to University of Rajasthan in partial fulfillment of the requirement for the award of the degree of Bachelor of business administration was done under the guidance of Mrs. Deepti Hariramani This my original work and the conclusions drawn therein are based on the material collected for the purpose mentioned. Piyush agrawal M.B.A 2nd year 2
  3. 3. PREFACE Experience is one of the most important parts for success. From internship training programs one acquires knowledge by experience. So, practical training is considered to be an essential part in all of the best leading business school and other professional institutions. As a part of a management course, students have to undergo a project, which deigned keeping the prerogative and preferences of industry in mind. This particular training allows a student to implement what he has learned within the four walls of class room. It is here, the caliber of the student is tested to find his potentiality for various tasks assigned to him in future. This report that I am submitting intends to highlight my capability in sustaining the pulls and pressure of the day to day professional life and put to perspective the facts that I am capable enough to deliver whenever a challenge is thrown to me. I have done my training in Jaipur under the guidance of the executives of Varun Beverages Pvt. Ltd. Which the franchise is owned bottling plant of PepsiCo India Limited. The bottling plant is located at Chhata (Mathura). 3
  4. 4. ACKNOWLEDGEMENT “Acknowledgement is an art, one can write glib stanzas without meaning a word, and on the other hand one can make a simple expression of gratitude” This is to offer gratitude to all those people without whom this project would have never seen the light of day. First of all I would like to acknowledge my sincere gratitude and indebtedness to Mr. Pankaj Kumar garg (Marketing executive) of Varun Beverages Pvt. Ltd.I take this opportunity to express my heartfelt thanks to Mr. Sunil Kumar (Marketing executive) Mathura Marketing Company, without whose support it was impossible to complete this training program. In spite of being busy in his job, he helped and guided me whenever I required. I would like to express my deepest gratitude to Prof. Mrs.Deepti Hariramani for his expert guidance and support throughout the project. I express my sincere thanks and gratitude to the above stated person who have helped me directly and also to those who have helped me indirectly. PIYUSH AGRAWAL MBA 2ND YEAR 4
  5. 5. EXECUTIVE SUMMARY The following report by me discusses the detail of distribution channel management of Mathura. Marketing Company which is a marketing unit of Varun Beverages Pvt. Ltd. The main purpose of this analysis is to study the distribution strategy of company and expectation of dealers. It aims at finding the retailer satisfaction level and the problem faced by him. During my tenure at my training, I came to know about the company along with their distribution channel network. As mentioned before in context of aim of project we studied the problem (Problem faced by retailers). In order to do so we conducted a survey (using non probability sampling) of around 150 retailers. Hence after extensive survey we studied the result. Consequently we came to know the various problems which are being faced by retailers and also gave suggestions so that those problems can be resolved and hence company can use its distribution channel in best possible manner for better market penetration 5
  6. 6. CONTENTS S.NO. 1 PARTICULAR INTRODUCTION TO INDUSTRY 2 3 INTRODUCTION TO THE ORGANIZATION RESEARCH METHODOLOGY 4 5 6 7 8 9 10 Page No. Title of the study Duration of the project Objective of the study Types of research Sample size and method of selecting sample Scope of study Limitation of study FACTS AND FINDINGS ANALYSIS AND INTERPRETATION SWOT CONCLUSION RECOMMENDATION AND SUGGESTION APPENDIX BILOLIOGRAPHY 6
  7. 7. CHAPTER-1 Introduction to Industry 7
  8. 8. SOFT DRINK INDUSTRY IN INDIA India with a population of more than 1.1 billion is potentially one of the largest consumer markets in the world after china. The consumer market is popularly known as the FMCG market or the fast moving consumer goods market. Soft drinks come under this category. Soft drink is basically purchased in India basically for two reasons namely to quench thirst and for refreshment. The Indian economy currently is passing through a bullish phase with increasing per capita income. Subsequently the lifestyle of the Indian consumer is also changing with increased spending on entertainment, refreshment etc. that is why soft drink companies are looking forward to India with great enthusiasm in the future to increase their revenue. The soft drink industry in India dates back to the 1940‟s when Parle introduced the first branded soft drink called gold spot. Cola giant Coca-cola was the first foreign soft drink company to setup its shop in India in 1965. Coca-cola made a very good beginning and dominated the market right from the word go. It faced no competition at that time. The marketing people did not even need to publicize Coca-cola. This extraordinary success of Coca-cola can be attributed to the following factors, Absence of contemporary competitive brand. The giant image of Coca-cola in the western countries preceded their entry into the Indian market. Indians at that time were very fond of foreign goods. Parle Exports Pvt. Ltd later introduced a lemon flavored soft drink called Limca in 1970. Before this they had introduced a cola flavored drink called pepping which they had to withdrew in the face of stiff competition from Coca-cola. But the overtly conservative Indian government of that time with special interest in safe guarding the interest of the Indian companies started insisting that Cocacola should agree on the following points in order to continue in India. Cocacola decided to windup its operations in 1977 rather than bowing to the Indian government. The main demands of the Indian government were – 8
  9. 9. Dilution of equity, as the government felt that lots of foreign currency was being wasted. Manufacturing of the secret concentrate in India. Disclosure of the chemical composition of the concentrate. The exit of Coca-cola left a large vacuum in the soft drink market. But this also accelerated the growth of several Indian soft drinks. Many new soft drinks like frooti, jump-in etc. were launched in the form of tetra pack. However the bottling plants and the distribution networks of these companies were not up to the mark and left much to be desired. It took these Companies almost one year to come up with new flavors like Campa cola, rush etc. To survive in the industry.However Parle, the pioneer in the soft drinks market blazed its way to national prominence with their product Thumps Up bearing the slogan „happy days are here again‟ which became a craze. This particular slogan helped to win over the loyalists of Coca-cola who were in a state of cola shock or cola depression! Soon the soft drink industry started registering phenomenal growth rates and all parley products namely Gold Spot, Limca and Thumps Up became the brand leaders in their own segments. In spite of this the soft drink market had a huge untapped potential.In 1990, coming of the multinational brand Pepsi and immediately started giving stiff competition to Parley and Coke. The parent company of Pepsi was founded in 1890 at North Carolina in USA. Its CEO is Roger Enrico. PepsiCo India Holdings Pvt. Ltd. in headquartered in Gurgaon and its CEO is Ms. Indira Nooyi. In India it has 34 bottling plants of which 8 are company owned bottling outlets (COBO) and 26 are franchise owned bottling outlet (FOBO). SMV Beverages is a franchise owned bottling outlet. Coca-cola reentered the Indian market in 1993 in collaborations with Parley India Ltd. 9
  10. 10. Origin of Soft Drink in Jaipur Late Charan Singh is credited with initiative to set up soft drink industry in the city. He was a resident of Phagwara, Punjab and he used to sell soft drink in carts. Domestic tension forced him to march to Jaipur 50 years ago to seek a living for him. Then he set up his own machine and started bottling without any brand name. Today his son Mr. Sunder Gurudev is carrying out the legacy, which his father had left behind. This plant operates only 3 months (summer).. The credit of establishing Jaipur in the soft drink map goes to late Dharamchand Kamani.During the course of his business trips he was struck with the idea of setting up of a soft drink industry in Rajasthan. June 1967 was significant for soft drink industry in Jaipur. 10
  11. 11. CHAPTER-2 Introduction to organization 11
  12. 12. PEPSICO IN INDIA PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab government- owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. Others claim that firstly Pepsi was banned from import in India, in 1970, for having refused to release the list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on the market shortly afterwards. These controversies are a reminder of "India's sometimes acrimonious relationship with huge multinational companies." Indeed, some argue that PepsiCo and The Coca-Cola Company have "been major targets in part because they are well-known foreign companies that draw plenty of attention." PepsiCo has grown to become one of the country‟s leading food and beverage companies. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India. PepsiCo India and its partners have invested more than U.S. $1 billion since the company was established in the country. PepsiCo provides direct and indirect employment to 185,000 people including suppliers and distributors . PepsiCo India Holdings Pvt. Ltd. operates through its subsidiaries including Pepsi Foods Ltd, Frito - Lay India, and Tropicana Beverages Company. The company, through its subsidiaries manufactures, bottles, and exports fruit juices and carbonated beverages and packaged snacks such as Lays, Ruffles, Fritos, and Cheetos. PepsiCo India is based in Gurgaon, India. PepsiCo nourishes consumers with a range of products from treats to healthy eats that deliver joy as well as nutrition and always, good taste. PepsiCo India‟s expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options such as Diet Pepsi, 12
  13. 13. hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks – Gatorade, Tropicana100% fruit juices, and juice based drinks - Tropicana Nectars, Tropicana Twister, Slice, and the new brand Nimbooz by 7up with real lemon juice. Local brands - Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands. PepsiCo‟s foods company, Frito-Lay, is the leader in In snacks segment- the branded salty snack market and all Frito Lay products are free of trans-fat and MSG. It manufactures Lays Potato Chips; Cheetos extruded snacks, Uncle Chips and traditional snacks under the Kurkure and Lehar brands. The company‟s high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers. Frito Lays core products, Lays, Kurkure, Uncle Chips and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary nutritional labeling on their packets. The group has built an expansive beverage and foods business. To support its operations, PepsiCo has 34 bottling plants in India, of which 8 are company owned and 26 are franchisee owned. In addition to this, PepsiCo‟s Frito Lay foods division has 3 state-of-the-art plants. PepsiCo‟s business is based on its sustainability vision of making tomorrow better than today. PepsiCo‟s commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers. PepsiCo India's agri-partnerships with farmers help farmers across the country grow and earn more. PepsiCo's involvement in Indian agriculture stems from its vision of creating a cost-effective, localized agri-base in India by leveraging farmer‟s access to world class agricultural practices. PepsiCo India worked with farmers and State Governments to improve agri sustainability, crop diversification and raise farmer incomes. PepsiCo helped transform the lives of 13
  14. 14. thousands of farmers by helping them refine their farming techniques and raise farm productivity, and customized solutions to suit specific geographies and locations. The most ambitious project is a joint program, launched in 1989, between PepsiCo India, the Punjab Agriculture University (PAU) in Ludhiana and Punjab Agro Industries Corporation (PAIC) in Chandigarh. The program focuses on evolving agricultural practices to help Punjab farmers produce internationally competitive products. Over the last five years, PepsiCo has also collaborated with the Thapar Institute of Technology to develop a high quality potato seed program. PepsiCo was a pioneer in the concept of contract farming under which the company transfers agricultural best practices and technology and procures the produce at a guaranteed price. To support the initiative, PepsiCo set up a 27-acre research and demonstration farm in Punjab to conduct farm trials of new varieties of tomato, potato and other crops. The program, which includes seed production, has successfully evaluated the following crops, Several varieties of basmati rice more than 200 varieties and hybrids of chilli 25 varieties and hybrids of corn More than 60 varieties of peanut More than 100 varieties and hybrids of tomato. Additionally, the development of new tomato varieties has helped increase total annual production of tomato varieties from 28,000 tons to over 200,000 tons in Punjab. Yields have more than tripled from 16 tons to 54 tons per hectare. Under the program, 6 high-qualities, high-yield potato varieties have also been introduced to Indian farmers. These new potato seeds have helped to increase 14
  15. 15. farm income and enabled PepsiCo to procure world class chip-grade potatoes for its Frito Lay snacks division. The company has partnered with more than 10,000 farmers working in over 10,000 acres across Punjab, U.P., Karnataka, Jharkhand West Bengal, Kashmir and Maharashtra for the supply of potatoes. PepsiCo India has also partnered with 1,200 farmers in Rajasthan to cultivate barley in a tie up with the United Breweries Group. PepsiCo India‟s technical team also implemented a high quality seed program to deliver early generation and disease free seeds to farmers. Tropicana: - Tropicana product is an American based company, and was founded in 1947 by Anthony T. Rossi in Bradenton, Florida, USA. Since 1998, it has been owned by PepsiCo, Inc. Pepsi offers the wide variety of products to meet the choice and preference from fun for your items to the products choices that contribute to healthier life style. KEY DEVELOPMENTS FOR PEPSICO INDIA HOLDINGS PVT.LTD. PepsiCo India Holdings Pvt. Ltd. Launches Packaged Nimbu Paani 'Nimbooz by 7Up' PepsiCo India Holdings Pvt. Ltd. has launched its packaged nimbus Paani 'Nimbooz by 7Up'. The product, with real lemon juice, no fizz and no artificial flavors‟, will be available in three packaging formats of 200 ml returnable glass bottles, 350 ml PET and 200 ml tetra packs, priced at INR 10, INR 15 and INR 10 respectively. PepsiCo India Holdings Pvt. Ltd. to Launch Lemon Drink. PepsiCo India Holdings Pvt. Ltd. is expanding its product portfolio in India in the lemon drinks category and has plans to introduce a product under 7up brand ahead of the summer season. The new product would be less carbonated and is targeted at the mass market for on-the-move consumers. 15
  16. 16. Headquarter : New York, U.S. Area served : Worldwide. Industry type Products : Food and non alcoholic beverages. : Pepsi, Diet Pepsi, Mountain dew, 7up, Mirinda, Slice, Tropicana products : Nimbooz juice, Aquafina, Fritos, Cheetos, and Lays. Key person : Indira Krishnamurthy Nooyi (president), and (CEO) Distribution channel is the chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. A distribution channel can include wholesalers, retailers, distributors and even the internet. Channels are broken into direct and indirect forms, with a "direct" channel allowing the consumer to buy the good from the manufacturer and an “indirect" channel allowing the consumer to buy the good from a wholesaler. Direct channels are considered "shorter" than "indirect" ones. A Distribution channel is the most important part of the Beverage industry, especially in India where more than 60% population live in the rural areas or outside of the main cities so it is not easy to continuous or timely distribution of products to the end users. Most firms, particularly large organizations with multiple divisions or business units like PepsiCo, mainly focus on the effective implementation of distribution channel. PepsiCo‟ distribution strategy specifies:- What (Objective to be accomplished) Where (On which product-market to focus) How (which resources to allocate and which activities to perform to each product- market to meet environmental opportunities and threats and to gain a competitive advantage). 16
  17. 17. In this project we studied the distribution channel management of PepsiCo product in uttar pradesh. Generally distribution system deals with the effectively reach of your product to the consumers and how to divide the areas in different sub areas to cover as much consumers as possible whereas this project focused on improving the distribution channels. Apart of this, project also includes a survey on analysis of the effectiveness of the distribution channel of the company as compare to the nearest rival coca cola. Company Name and Introduction “VARUN BEVERAGES Pvt. Ltd.” Introduction: Varun beverage Ltd. was the new start, which was born in 1999 among in jaipur group.Mr. Ravi Kant Jaipuria launched the best biggest plant among all other plant, which comes under jaipuria Group.this is the rising sun of jaipuria Group.Mr.Ravi Kant jaipuria who is the chairman of this bottling plant has good result. The main object of this is manufacturing, production, selling, distribution and bottling of beverages a created water soft drink etc. Mr Ravi Kant Jaipuria got best PEPSI bottler award in 1998 for the best bottler of the world. The best Pepsi award is th highest honorable award to any franchisee. The complete new plant Varun Beverage Ltd. Has structured in plot number 477-477, 107 K.M, stone Agra-Delhi National highway, village Dautana, tehsil- chhata, Disst-Mathura,uttar Pradesh. This is not only the bottling plant here,pet bottles are also manufactured. The present filling capacity of this plant is 1000 bottles per minutes with two lines. The two lones are glass bottles lines. One more line is of pet bottled and its capacity is 85 bottles per minute. The annual capacity of this plant is around 95 Lacks create bottled soft drink. The end product of this plant is bottled carbonates soft drinks. The beverages market under different brands named as Pepsi, mirinda lemon, mirinda orange,7up mountain dew, lehar 17
  18. 18. soda and slice. Varun Beverage is growing to new height, annual turn over of plant is abiut 110 crores. JAIPUR MARKETING COMPANY In this unit, the head of sales and Marketing is in charge of all the marketing activities i.e. sales promotion, Publicity, Advertisement, Market Survey. Though his main function is to have a control over the outlets distribution. ENVIRONMENT SCANNING: The process by which organization monitors their relevant environment to identify opportunities and threats affecting their business are known as environment scanning. The external environment in which Varun Beverages Pvt. Ltd. exists consists of a bewildering variety of factors. These factors (may also be termed as influences) are events, trends, issues, and expectation of different interested groups. These factors are explained below. Events are important and specific occurrences taking place in different environment sectors. Trends are the general tendencies or the courses of action along which events take place. Issues are the current concern that arises in response to events and trends. Expectations are the demands made by interested groups in the light of their concern for issues. By monitoring the environment though environmental scanning, the VARUN BEVERAGES Pvt. Ltd. considers the impact of the different events, trends, issues, and expectation on its strategic management process. Since the environment facing organization is complex and its scanning is absolutely essential, strategist has to deal cautiously with the process of environmental scanning is collected systematically. Information related to markets and 18
  19. 19. customers, the changes in legislation and regulations which have a direct impact on an organization‟s activities, government policy statements pertaining to VARUN BEVERAGES Pvt. Ltd. business and industry and so on, could be collected continuously to monitor changes and take the relevant factors into account. VARUN BEVERAGES Pvt. Ltd. conducts special surveys and studies to deal with specific environmental issues from time to time. Such studies may be conducted, for instance, when VARUN BEVERAGES Pvt. Ltd. has to undertake special projects, evaluate existing strategies, or devise new strategies. Changes due to unforeseen development may also be investigated with regard to their impact on the organization. Today Varun Beverages Pvt. Ltd. stands as a proud monument the great visionary its founder Late D.N. Kamani and strides forth towards progress and prosperity for the fulfillment of the ideas of its revered founder. Chemicals CO2 gas (in carbonated soft drinks) The below four ingredients are added with the first ingredient i.e. water and cold drink is prepared. Here in Varun Beverages Pvt. Ltd. Jaipur also the same ingredients are used to prepare Pepsi and its‟ other brands. All these ingredients are added at different stages by different processes. The diagram in the next page represents the flow or sequence of steps involved in Varun Beverages Pvt. Ltd. Jaipur for manufacturing of Pepsi products. Pepsi products are available in different SKUs (stock keeping units) or packs, e.g. glass bottle, pet bottle, metal can, tetra pack etc. the preparation of main liquid or drink is same but the machines and equipments used for filling in different SKUs are different. During my visit to Varun Beverages Pvt. Ltd. Jaipur, I saw 1. Water treatment plant, where water is purified. 2. Bottle washing plant, where used glass bottles are washed 19
  20. 20. 3. Syrup room, where syrup is prepared from sugar. 4. Bottle filling plant, where bottles are filled with the final product. 5. Acid room, where caustic soda is kept, which is used for cleaning the equipments and pipelines after every batch of production. 6. Yard for keeping empty bottles and ware houses for storing the filled bottles. The brief introduction of each plant is given below. 1. Water treatment plant: Water In Varun Beverages Pvt. Ltd. Jaipur, is coming from the Bandi river. It is stored in a reservoir. This raw water is being treated in the water treatment plant, before the production process starts. Coagulation process is used here for this purpose. Main chemicals 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 the impurities get settled at the base and remove the turbidity. Then, it is sent to the carbon tank where all the microorganisms and chlorines are removed. The water so obtained is completely free from any kind of impurities and used in further processing. The maximum alkalinity maintained until as much as 50 ppm. 2. Bottle washing plant: Used bottles returning from the market are stealthy. Before filling these empty bottles with new product, these bottles are passed through the bottle washing plant where these dirty bottles are washed. It is completely an auto process which takes place within a machine called washer machine. The machine has three compartments. Bottle for washing are placed on the conveyer come inside the machine and get successive treatment. Bottles are treated with 4% caustic soda in the first compartment at a temperature of 100-150Û C. Next these are conveyed to the second compartment, where bottles are again washed with hot 20
  21. 21. water at a temperature of 80-100Û C, in the third compartment bottles are treated with cold or normal water at room temperature. Time duration in each compartment is 10 minutes. Bottles are then sent through the inspection center, where these are closely watched against white rays of light. Bottles containing any dust or other unwanted things are removed from the line here. 3. Syrup room: Here syrup is prepared. Syrup is prepared by flowing steam and sugar crystals in a specified ratio into a closed container. The temperature of this prepared sugar remains between 80-100ÛC. This syrup contains some impurities as, sometimes there are some impurities presents in sugar, so this syrup is filtered to remove all those contaminations. Before storing in syrup tanks this syrup it is passed through the cooler where syrup temperature is reduced to 25-30ÛC. This temperature is maintained throughout the whole process. Here next flavors are added at a specified quantity with the syrup used for preparation of Pepsi or other brands. 4. Bottle filling plant: Next, for preparation of carbonated soft drinks brands like Pepsi, mirinda, 7UP, and mountain dew, carbon dioxide gas ( CO2) is mixed with this prepared solution. And for the brand like slice, fruit pulp is added. Now the solution is ready for filling into the bottles. The washed empty bottles are filled by automatic filler machine. This machine can fill 60 bottles in one minute. After filling, crowns or caps are fitted on the filled bottles with the help of crowning machine. Now these filled bottles are ladled and then sent for packing and storing in the godowns. 21
  22. 22. 5. Acid room: There are three tanks in this room. The first tank contains caustic soda, the 2nd tank contains hot water and the third tank contains cold water. After finishing every batch of production the whole production lines and containers/tanks are washed. And for this purpose, first of all caustic soda is passed through the pipeline, next hot water and at the last cold water. 6. Yard for keeping empty bottles: Varun Beverages Pvt. Ltd. Jaipur has a large area in side its premises. A large .part of its open area is used for keeping the empty bottles. 7. Warehouse: Varun Beverages Pvt. Ltd. Jaipur has its own warehouse in side its premises for storing the produced products. The produced products are sent to the customers from these warehouses. For transferring the filled bottles inside the company fork-lifts are used. 22
  23. 23. Packaging Process PepsiCo is an industry leader in packaging- helping to promote and implement standards for sustainable packaging PepsiCo distribute the products in a variety of packages, each carefully designed to deliver convenience and appeal to the consumers while protecting the integrity of the products. The team of engineers and packaging suppliers are dedicated to finding preferable designs, and are working continuously towards improving the packaging performance while reducing the packaging footprint. PepsiCo are committed to bringing the environmental responsibilities to all areas of the business. PepsiCo are continuously improving the environmental programs and exploring solutions to environmental challenges through socially responsible, scientifically based and economically sound methods. Pepsi pass this commitment along to his suppliers and the consumers in an effort to do our part. The goals are to design and develop packaging systems that are environmentally responsible throughout their entire life cycle, inspire consumers who want to live more environmentally sustainable lives by promoting recycling, and partner with leading organizations to promote sustainable packaging and recycling practices. Through ongoing engagement with the packaging suppliers, we are working towards a position where all of our operations use the most environmentally suitable packaging available in their country of operation. 23
  24. 24. PepsiCo follow five principles of sustainable packaging design: Reduce Using less material in the packaging, to conserve natural resources. Reuse increasing use of reusable packaging and increasing the amount of recycled material in the packaging. Recycle Designing packaging for recycling and developing biodegradable and compostable packaging solutions. Remove Eliminating environmentally sensitive materials and processes from the packaging. Renew Increasing use of renewable resources. In an effort to meet his goals, PepsiCo have launched a global sustainable packaging policy and formed a Sustainable Packaging Council dedicated to: Developing sustainable packaging strategies, goals, and targets Developing alternative packaging material technologies Supporting responsible disposal practices. 24
  25. 25. PRODUCT PROFILE: Brand Name Flavors MIRINDA 7UP SLICE MOUNTAN DEW Orange lemon Volume Glass Glass Pet Pet Pet Can Can PEPSI SKU 200 ml 300 ml 600 ml 1.5 l 2.0 l 250 ml 330 ml Glass Glass Pet Pet Pet Can 200 ml 300 ml 600 ml 1.5 l 2.0 l 330 ml Glass Glass Pet Pet Pet Can Can 200 ml 300 ml 600 ml 1.5 l 2.0 l 250 ml 330 ml Tetra Pack Glass Glass Pet Pet 200 ml 200 ml 250 ml 500 ml 1.20 l Glass Glass Pet Pet Can 200 ml 300 ml 600 ml 2.0 l 350 ml 25
  26. 26. Pet Can DIET PEPSI TROPICANA Pineapple, Mixed fruit, Mango nectar, Guava nectar, Lychee, Peach, Strawberry, Orange nectar, Grapes. TWISTER Orange NIMBOOZ Lemon Tetra pack Tetra pack Pet Pet Tetra pack Glass Pet AQUAFINA Pet Pet Pet 600 ml 300 ml 200 ml 1.0 l 350 ml 1.20 l 200 ml 200 ml 350 ml 500 ml 1.0 l 2.0 l 26
  27. 27. CONCEPTUAL BACKGROUND “Marketing channels are sets of interdependent organization involved in the process of making a product or service available for use or consumption.” The main objective of the marketing process is to distribute the products to the actual users. This function involves a number of sub-functions to be performed by a producer or manufacturer. These two functions are most important first, the creation of demand is made through the process of advertising and sales promotion activities. On the other hand the distribution through the channels of distribution. The decision relating to the channel of distribution is a very important decision from the firm point of view because the selected channels affect considerable other marketing decision. Such decisions are of long term nature and exercise their impact on the cost structure of the firm also. By channel distribution mean the intermediaries or the process through which the goods 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 the final users. There are a lot of intermediaries between producers and consumer, bearing a variety of name performing various kinds of function. Some intermediaries like wholesalers and retailers buy and resale taking the bill. They are known as merchant middle men and other are brokers, representative sales agent who seeks or search for customers and negotiate on the behalf of the producer but do not take of goods. These are called as middlemen. The manufacturer and its distributive outlets share common objective to sell the manufactured products at a profit. No doubt its objective differs with the marketing circumstance. Even though many variation of specific objective fits into some categories. These are as follows:- To built distribution network loyalty To stimulate distribution 27
  28. 28. To develop managerial efficiency in distribution organization To identify the source of supply for the product line at the final buyer‟s level. The channel of distribution is a structure which organized and presents a choice among alternative channels of distribution of the different marketing situations faced by retailers, whole sellers and producers within the structure. It may be considered as series of function which must be performed in order to make producers efficiency. To bearing maximum profits of all institutions concerned a channel of distribution should be treated as a unit of total system of action. The activities of the manufacturer need 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. Collects concentrate the output of various producers, subdivides these into lot desired by the customers gathers various items together in the assortment wanted and Disperses the assortment to consumer industrial buyers. The role of middlemen that of specialist in concentration equalization and dispersion besides he side in the creation of the time from and procession utilities. 28
  29. 29. 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 intermediaries Marketing Channels Channel 1. Manufacturer………………………………………………..…Consumer Channel 2. Manufacturer……………Retailer……………………………Consumer Channel 3. Manufacturer……...Wholesaler………….Retailer…………Consumer Channel 4. Manufacture…….Wholesaler……Jobber……Retailer…….Consumer 29
  30. 30. CHANNEL DYNAMICS Distribution channel do not stand still. New wholesaling and retailing institution emerge 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 programs to exploit an emerging marketing opportunity. 4. Multi Channel Marketing In the past, many companies sold to single market through a single channel. Multichannel marketing occurs when a single firm uses two or more marketing channels to reach one or more customer segments. 30
  31. 31. WHOLESALER Wholesaler acts as a connecting link between manufacturer and retailer and other merchants. Wholesalers buy the goods from manufacturer and resell the same to the retailers. Normally, Wholesaler do not cater the small requirements of the ultimate customer but he can entertain large requirement of industrial customers. DEALERS and DISTRIBUTORS Dealers normally buy and resale products at wholesale or retail level. Whereas distributor is the term used for wholesaler. RETAILING Includes all the activities involved in selling goods or services directly to final consumers for personal non-business use. A retailer or retail store is any business enterprise whose sales volume comes primarily from retailing. Retailers are the last but not the least in the marketing channel through whom the eventual transfer of ownership of goods take place. The use of retailer boils down to their superior efficiency in making goods widely available and accessible to target markets. In most 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. Title 31
  32. 32. The 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 lines 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 turnover convenience products at slightly higher prices. 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) Channel of Distribution of Varun Beverages Pvt. Ltd. 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 of distribution. Single type of markets channel is maintained by the company right from its Pioneering stage. The nature of the channel is as follows:- 32
  33. 33. Company Distributors Retailers Consumers At first the soft drinks supplied to the distributors directly. Retailers or owners of any outlet cannot take the delivery from company. They have to take the products from their respective or nearest distributor. There are about 50 distributors and innumerable number of retail outlets operating with the company in its entire market areas which contains total Jharkhand. In all the important places of entire territory this company has its distributors. These distributors selected on the basis of assurance given by them regarding the minimum sales which they have to maintain annually. The selection is also done on the basis of the financial position and reputation of distributor in the market. As for example in appointing a distributor first engaged in soft drink business second priority is given to those people who are in cigarette selling 33
  34. 34. business. Depending upon the market, each distributor in the initial stage has to deposit some security money. The retailers are selected by the distributor fixed criteria for the selection or appointment 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 and they are called retailers or outlet owners. They have to give assurance to the concerning distributor for better sale and at the time of taking delivery they have to deposit the security i.e. the charges if the empty bottles with specified retailers purchasing price. The charges if the empty bottles with specified retailers purchasing price. The distributor at first has to seek the permission of sales department for the number of cases of soft drinks required by them. After getting the proper authority from sales department paying the requisite amount either cash or demand draft. DISTRIBUTOR Distributors are one of the important middlemen in the channel of distribution who deals with the goods in bulk quantity. They buy goods in bulk from the producers and sell them in relatively smaller quantities to the retailers. In some cases they also sell goods directly to the consumers if the quantity to be purchased is more. RETAILERS Retailers are the traders who buy goods from wholesalers or distributor or sometimes directly from the producers and sell them to the consumers. They usually operate through a retail shop and sell goods in small quantities. They keep a variety of items of daily use. WAREHOUSING Every company has to store its finished goods until they sold. A strong facility is necessary because production and consumption cycles rarely match. Warehousing is not a simply storing activity but a package of services that enables the smooth running of the industry. The stores must be in constant touch with the use department in order to 34
  35. 35. provide uninterrupted services to the manufacture and its decision since working capital is locked up 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 per the demand. Every distributor keeps a minimum stock of different products of the product line so that the uninterrupted supply could not affect. In the industrial sector service of optimization where boils down to any exercise of 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. Services level that can be maintained and hence the concept stores in money should be understood by everybody in the organization. INVENTORY DECISION (1) Branding and Packaging Out of the total market activities some are directly performed and controlled by “Varun 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 “Varun Beverages Pvt. Ltd.” Along with the authorized bottle in India adopt the same pattern. 35
  36. 36. (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. (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 from 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. TRANSPORTATION Transportation is life blood of business management and commerce. The purchase office‟s job in incomplete until and unless he ensures that the material is shipped from the vendor‟s premises located in different areas to his organization. Purchasing the transportation is a key element in his job particularly in the context of the transportation cost. In deciding to transporting models shippers can choose from private contract and common carriers. Transport decisions must consider the complex tradeoff between various transportation mode and their implications for other distribution elements such as warehousing and inventory. 36
  37. 37. VISION AND MISSION OF THE ORGANISATION VISION “To build India‟s leading total beverages company, delighting consumers by best meeting their everyday beverages needs, and stakeholders, by delivering performance with purpose, through our talented people”. PepsiCo Sustainability Vision “PepsiCo‟s responsibility is to continually improve all the aspects of the world in which we operate – environment, social, economic- creating a better tomorrow than today” MISSION “To be the world‟s premier consumer products company focused on convenience food and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.” 37
  38. 38. Chapter-3 Research & Methodology 38
  39. 39. 3.1 TITLE OF THE STUDY: “DISTRIBUTION CHANNEL MANAGEMENT OF PEPSICO PRODUCTS “ 3.2Duration of the project Duration of project is 45 days. 3.3 Objectives of the study To know the distribution strategy adopted by company. To know the problems of Retailers during distribution. To find out the expectation of the dealers from the company. To find out the per day sale of PepsiCo products. To find out the retailer satisfaction about regular supply of soft drinks services provided by the company. 39
  40. 40. 3.4 TYPES OF RESEARCH PRIMARY DATA:It was collected by surveying the retailers in the four areas of Ranchi. Ram nagar Retailers Arya nagar Delhi Agra HIGHWAY Kosi kalan Market survey Market survey is one of the most widely used marketing research techniques. Its purpose is collection of specific data concerning to the market that cannot come from the company‟s internal records or from external published source of data. The only way to get accurate data regarding the target market is by physically moving around in that area along with the1 Pepsi vehicle. There are various types of surveys out of which the one that I used was the census survey. The report on marketing activities of Varun Beverages is based on a survey which is known as a: 40
  41. 41. Dealer survey (retailer survey) Dealer survey or retailer survey is one of the most accurate methods to known about the overall condition of a company and it is especially true for soft drinks companies. Soft drink market is typically characterized by changes in the stock position every day. In order to have a good knowledge about the market and the route it was important for me to move along with the Pepsi vehicle. This helped me to know about: 1. Number of Retailer in the Ram nagar, kosi kalan, Delhi agra highway, arya nagar areas. 2. Location of the Retailer 3. Type of Retailer Learning in the classrooms and learning practically are two different things. So for the first 10 days I moved along with the Pepsi vehicle interacting with the retailers and trying to build up a rapport with them. From this I also came to know how to deal with different types of retailer and how to convince them. Feedback from the retailers helped me to find out where the Company was lacking in terms of service provided and also how the competitors fared on the same parameters. These feedbacks help the company to improve its services and as such increase retailer satisfaction which in turn results in better sales and revenue generation. Thus appropriate marketing strategies can be worked out based upon the finding. Tools and Techniques used for the collection of Primary Data A questionnaire was formulated and circulated to the retailers. Hence the survey method is the tool used here for data collection. 41
  42. 42. 2) SECONDARY DATA: It was collected from, General library research source like marketing book. Advertising journals like magazines and newspaper. Internet: PepsiCo website, Wikipedia. 3.5 SAMPLE SIZE AND METHODS OF SAMPLING Sample Size: 150 Sampling Method: Non –probability sampling (Convenience sampling) Place of Study : kosi kalan(Mathura) 3.6 SCOPE OF THE STUDY The main scope of this study is to ascertain the effectiveness of channel of distribution and analyzing the PEPSICO‟S performance. This study will be also applied to analyze the problem faced by retailers and to know about delivery of PepsiCo‟s products satisfactory or not. 3.7LIMITATION OF THE STUDY: Time constraint -The study was conducted in a short period of time and a detailed study was not possible. Cost constraint -This being an academic study suffers from cost constraint. Area constraint -The area of study is limited to only Ranchi city. Sample constraint -The sample size was not large enough as planned, as the time factor was the key limitation in the study. 42
  43. 43. Confidential constraint -Due to confidential constraint certain information, not all details could be obtained. Chapter-4 Facts & Findings 43
  44. 44. Findings The Delivery of PepsiCo product are about to be timely. Company executive timely visited in the outlets. They timely inform about the schemes. Some of the visi-cooler provided by company is not functioning properly, complaints regularly, are entertained after a long time. Maintaining good relationship with retailers is very important for having a strong distribution channel. The Advertisement and Presence of soft drinks affect the sales most. Customers less prefer the taste of the PepsiCo‟s product. Problems which Retailers are facing:Company not repairs the visi-coolers timely. Retailers do not want that company provides the same schemes to all retailers. PepsiCo has less flavors and Retailers have a few option to sell the products. Many times wholesalers not mention the schemes which are given by PepsiCo company. 44
  45. 45. Chapter-5 Analysis & Interpretation 45
  46. 46. Q-1 What kind of outlets has been used by you? S. NO. Particulars No of Respondent Percentage 1 Grocery 20 13% 2 Convenience outlet Eatery 75 50% 55 37% Total 150 100 3 Types of outlets 13% 37% Grocery Convenience outlet 50% Eatery INTERPRETATION: From the above table it can be observed that 50% are convenience outlet, 37% are Eatery and 13% are Grocery. It shows that the Convenience outlets are large in number and also the sale of soft drinks is more in the convenience outlet than the other outlets. 46
  47. 47. Q-2 what is the proportion of different companies soft drinks are available to you? S. NO. Particulars No of Respondent Percentage 1 PepsiCo 15 10% 2 Mix (PepsiCo & Coca Cola) Total 135 90% 150 100 Respose of Retailer 10% PepsiCo Mix 90% INTERPRETATION: From the above table it can be observed that 90% of outlets have both coca cola and PepsiCo products while only 10% of them have only PepsiCo products. It shows that the mix outlets are more than the PepsiCo exclusive. 47
  48. 48. Q- 3 Which is the most demanding soft drinks company by the customer? S. NO. Particulars No of Respondent Percentage 1 PepsiCo 65 43% 2 Coca cola 85 57% Total 150 100 Response of the Retailer 43% 57% PepsiCO Coca cola INTERPRETATION: If we see the table then we find that 57% customers prefer Coca cola and 43% prefer PepsiCo. In this we find that after having different products in PepsiCo, it can‟t able to capture the market. 48
  49. 49. Q-4 Is Schemes given by company are satisfactory? S. NO. Particulars No of Respondent Percentage 1 Yes 135 90% 2 No 15 10% Total 150 100 Response of Retailer 10% Yes No 90% INTERPRETATION: From the above table it can be observed that 90% of the retailers are satisfied with the calls by a company during scheme timings and 10% are not satisfied with the calls. It shows that the company timely informing about the schemes to the retailers. 49
  50. 50. Q-5 Is that true that „‟demanded product is available most‟‟? S. NO. Particulars No of Respondent Percentage 1 Yes 105 70% 2 No 20 13% 3 sometimes 25 17% Total 150 100 Response of Retailer 17% 13% Yes No 70% sometimes INTERPRETATION: From the above table we find that out of 100% retailers only 70% retailers are agree to say whatever brand they demanded they easily get that while 17% retailers are saying that they sometimes getting the demanded brand but 13% retailers are saying that they are not getting their favorite brand whenever they needed or demanded more. Here area of concern that how company can make happy those retailers who don‟t receive their stock in time. They should provide all the retailers on time, which help to make good distribution channel and well as build the positioning of the company. 50
  51. 51. Q-6 Are you Satisfied with the delivery procedure of PepsiCo Products.? S. NO. Particulars No of Respondent Percentage 1 Yes 120 80% 2 No 30 20% Total 150 100 Response of Retailer 20% Yes No 80% INTERPRETATION: From the above table it can be observed that 80% of the retailers satisfied with the delivery of PepsiCo product and 20% of retailers are not satisfied with the delivery. The data shows that company have good distribution channel but should focus more on their distribution channel and try to satisfied more by providing them better services. 51
  52. 52. Q-7 How many times a PepsiCo product has been purchased by you from distributor in a month? S. NO. Particulars No of Respondent Percentage 1 0-5 times 45 30% 2 5-10 times 45 30% 3 More than 10 60 40% Total 150 100 Response of Retailer 30% 40% 0-5 times 5-10 times More than 10 30% INTERPRETATION: If we see the table then we find that only 40% respondent are purchasing more than 10 times from the distributor in a month, 30% respondent are saying that they purchasing 0-5 times in a month and 30% of them saying that they purchasing 5-10 times in a month. Here we find that the 40% retailers purchasing the product more than 10 times, it means sale of soft drinks is quite satisfactory. 52
  53. 53. Q-8 What kind of Factors affect the sales most? S. NO. Particulars No of Respondent Percentage 1 Advertisement 60 40% 2 Scheme 5 3% 3 Presence 45 30% 4 Taste 40 27% Total 150 100 Response of Retailer 27% 40% Advertisement Scheme Presence Taste 30% 3% INTERPRETATION: From the above table we can find that 40% respondent says that advertisement is major factor that affect the sale most while 30% of respondent says that presence is a factor that affect the sale most while 27% says taste is a factor and 3% says the scheme is a factor that affect the sale most. This proves that advertisement and presence play an important role in attracting the customer. 53
  54. 54. Q-9 „‟PepsiCo has good relationship with the you‟‟ give your views? S. NO. Particulars No of Respondent Percentage 1 Strongly Agree 45 30% 2 Agree 70 47% 3 Disagree 35 23% Total 150 100 Response of Retailer 23% 30% Strong Agree Agree Disagree 47% INERPRETATION: From the above table it can be observed that 47% of the retailer‟s agrees that PepsiCo has a good relation with them and 30% strongly support the statement while 23% of the retailer was against the statement means they said PepsiCo doesn‟t have good relation with them. It shows that company should think that how can they maintain better relationship with every retailers. 54
  55. 55. Q-10 Are you Satisfied with the maintenance work of refrigerator done by PepsiCo? S. NO. Particulars No of Respondent Percentage 1 Highly Satisfied 10 7% 2 Satisfied 35 23% 3 Less satisfied 25 17% 4 Not Satisfied 50 33% 5 Can‟t say 30 20% TOTAL 150 100 . Response of Retailer 20% 7% 23% Higly satisfied Satisfied Less satisfied 33% 17% Not satisfied Can't say INTERPRETATION: From the above table it can be observed that 33% retailers are not satisfied with the maintenance work of refrigerator done by company while 23% retailers are satisfied, 20% can‟t says, 17% retailers are less satisfied and 7% are highly satisfied. It means company is not focusing on the maintenance work of refrigerator thus the customer are not able to get the chilled soft drinks this may reduced the sale of the company. 55
  56. 56. Chapter-6 Swot Analysis 56
  57. 57. STRENGTHS:PEPSICO has an excellent brand image. Retailer friendly schemes. Continuous & strategic improvements in the promotional strategies. Strong dealer network. PEPSI has got goodwill in the market with regard to the brand name. It has a very wide product mix. Large number of celebrity endorsed. A very good sales force. WEAKNESSES:PEPSI not able to keep the retailers satisfied as they are not providing with the coolers on time as compared to others Interior part of the city is not looked after as the main city as the roads are not good enough for the vehicles to reach there. Support material not provided to the retailers as being provided by the competitor. PEPSI has only cola flavor where its competitor has coca cola has coke and Thumps up. Its one of the Popular brands PEPSI in cola flavor is lagging behind with its nearest competitor only due to high sugar content and less thrilling. More emphasis is given to larger dealers. In terms of Stands, Dealer board, and other Add. Material others are ahead of PEPSI in Ranchi. OPPORTUNITIES:Consumers are showing increased interests in PEPSI products. Promotional activities provide it an edge over the competitors. Top position in C.S.D. products in India gives it an advantage. Pepsi can explore its distribution network in interior area also. 57
  58. 58. THREATS:Some dealers are not very satisfied with the services of Pepsi which directly affect the sale of product. Competitor‟s products already available in the market with similar schemes. Tough competition from others. Strategic pricing by competitor may affect the company‟s margins. Pesticide controversy taking away the consumer. Many religious Guru asking their followers not to consume soft drinks. 58
  59. 59. CHAPTER-7 CONCLUSION 59
  60. 60. CONCLUSION PepsiCo was found by CELEB BRADHAM in 1902 at North Carolina in USA, its present CEO is INDIRA NOOYI and PepsiCo. India holding chairman is Mr. RAJIV BAKSI. In India it has 34 bottling plant of them 8 are COBO and 26 are FOBO, in which one is in (Mathura) Varun Beverages Pvt. Ltd. chhata(Mathura). is a franchise owned bottling plant (FOBO), producing Pepsi range bottled soft drinks. The conclusion of this project report is that PepsiCo products are profitable and having good distribution channel but should focus more on their distribution channel and try to satisfied more by providing them better services. Pepsi still had some distance to cover to catch up with Coke. 60
  61. 61. Chapter-8 Recommendation and Suggestion 61
  62. 62. RECCOMONDATION & SUGGESTIONS This is one of the most important and most difficult part of study. I arrived a certain recommendation for a company after the analysis of data, some of the recommendations are as follows: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. All brands should be making available in all outlets. The distributor can do this with timeliness delivery. Availability will increase visibilities, which in turn increase the sale. Pepsi distributor can convince the more retailers for entering into agreement for exclusive outlet with some extra benefit. Immediate response should be given to the problems related to the visi coolers, supply and also come up with the new strategies to cater the retailers as well as consumers. The damage Product should be replaced as soon as possible. The Sign board should be provided to all the Retailers. Another brand of Cola flavor should be introduced and it should have strong taste and more fizz so as to attract the customers who like Thumps up more than Pepsi. 62
  63. 63. Chapter-9 Appendix 63
  64. 64. APPENDIX (1) Which type of outlet? (a) Grocery (b) Convenience outlet (c) Eatery (2) Which company‟s soft drinks are available in the outlet? (a) PepsiCo (b) Mix (3) When a customer comes to your shop which company‟s soft drinks does he/she demands? (Rank them) (a) PepsiCo (b) Coca Cola (4) What is the frequency of the visit of PepsiCo executive? (a) Daily (b) Alternate Day (c) Weekly (5) Did you satisfied with the calls by company during scheme timings? (a) Yes (b) No (6) Which Company‟s route vehicle comes first to you? (a) PepsiCo (b) Coca cola 64
  65. 65. (7) Do you get your favorite brand or product whenever you need or demand more?. (a) Yes (b) No (c) Sometimes (8) Are you satisfied with the delivery of PepsiCo Products? (a) Yes (b) No (9) How often you purchase the product from distributor in a month? (a) 0-5 times (b) 5-10 times (c) More than 10 (10) Number of carets sold per month of soft drinks? (a) 0 - 50 carets (b) 50 to 100 carets (c) Above 100 carets (11) Which factors affect the sale most? (a) Advertisement (b) Scheme (c) Presence (d) Taste (12) PepsiCo has good relationship with the Retailers? (a) Strongly Agree (b) Agree (c) Disagree (13) Which company‟s Visi-Cooler do you have? (a) PepsiCo 65
  66. 66. (b) Coca Cola (c) Both (d) Own (14) Are you satisfied with the maintenance work of refrigerator done by PepsiCo? (a) Highly Satisfied (b) Satisfied (c) Less Satisfied (d) Not Satisfied (e) Can‟t say (15) Have you been provided with sign board/display rack by PepsiCo? (a) Yes (b) No 66
  67. 67. Chapter-10 Bibliography 67
  68. 68. BIBLIOGRAPHY BOOKS: Philip Kotler, Marketing Management G.C Beri, Marketing Research C.R. Kothari, Research Methodology Web SITES: www.google.com www.wikipedia www.pepsico.com ABBREVIATION COBO - Company Owned Bottling Operation. FOBO - Franchise Owned Bottling Operation.1 PAIC - Punjab Agro Industrial Corporation. PAU- Punjab Agriculture University. SKU- Stock Keeping Units. CEO – Chief Executive Officer. PPM – Parts Per Million. 68
  69. 69. Suggestions (if any):_______________________________________________________________ _______________________________________________________________ __________ Thank You Place:-…………………… Date:-…………………… Surveyed by: 69
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