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MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
MARKETING PROJECT ON PEPSI
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MARKETING PROJECT ON PEPSI

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A short project on PEPSI India.

A short project on PEPSI India.

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  • The channel serves as a connecting link between the producer and consumers. By bridging the gap between the point of production and the point of consumption, a channel creates time, place and possession utilities. A channel ofdistribution represents three types of flows:a. Goods flow from producer to consumers;b. Cash flow from consumers to producer as payment for goods; andc. Marketing information flows in both directions, from producers to consumers in theform of information on new products, new uses of existing products, etc. The flow ofinformation from consumers to producers is the feedback of the wants, suggestions,complaints, etc.
  • A vertical marketing system (VMS) is a distribution channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power that they all cooperate. A conventional distribution channel consists of one or more independent producers, wholesalers, and retailers.
  • There are 2 major national franchises for Pepsi India – R K JAIPURIA GROUP & K S JAPURIA GROUP
  • Coverage by Pepsi in Grocery, Eateries, Modern Trade, On Premise is wide and very indept. Further, since PET accounts for 80% of the volume, Pepsi has a stronger pull in Eateries and Grocery Stores where sales volume is high in this (PET) segment. Moreover local manufacturers can’t compete with Pepsi as they loose the price advantage in that packaging segment. Thus the one retailer class segment which can be focused on is the Convenience Channel (PAAN SHOPS, STD BOOTHS, MILK BOOTHS,SMALL EATERIES). Even in these Pepsi has made very good inroads owing to its Pull strategy.However, out of these retailers Pepsi is already strong in all categories except the “C” class retailers.
  • Coverage by Pepsi in Grocery, Eateries, Modern Trade, On Premise is wide and very indept. Further, since PET accounts for 80% of the volume, Pepsi has a stronger pull in Eateries and Grocery Stores where sales volume is high in this (PET) segment. Moreover local manufacturers can’t compete with Pepsi as they loose the price advantage in that packaging segment. Thus the one retailer class segment which can be focused on is the Convenience Channel (PAAN SHOPS, STD BOOTHS, MILK BOOTHS,SMALL EATERIES). Even in these Pepsi has made very good inroads owing to its Pull strategy.However, out of these retailers Pepsi is already strong in all categories except the “C” class retailers.
  • Coverage by Pepsi in Grocery, Eateries, Modern Trade, On Premise is wide and very indept. Further, since PET accounts for 80% of the volume, Pepsi has a stronger pull in Eateries and Grocery Stores where sales volume is high in this (PET) segment. Moreover local manufacturers can’t compete with Pepsi as they loose the price advantage in that packaging segment. Thus the one retailer class segment which can be focused on is the Convenience Channel (PAAN SHOPS, STD BOOTHS, MILK BOOTHS,SMALL EATERIES). Even in these Pepsi has made very good inroads owing to its Pull strategy.However, out of these retailers Pepsi is already strong in all categories except the “C” class retailers.
  • A very important find in the past survey (as per the data available) is that the reason for preferring local soft drinks/non aerated drinks at “C” retailer outlets are due to availability and taste and not importantly price. This means that the customers are buying local beverages due to non availability of Pepsi products and because local drinks (after Pepsi and in absence of Pepsi) is the next best alternative for them at these stores. This is good news and a area of opportunity for Pepsi as (a) its brand awareness is already high & (b) It can focus on 200ml Glass Bottles at these outlets where price difference between the local and Pepsi products are narrower.
  • Transcript

    • 1. BCP REPORT AT ON STRATEGY FOR ACHIEVING GROWTH TARGET (EXPANDING RETAILER BASE IN MANGALORE REGION) PRAVEEN SURESH 1116121
    • 2. 2 AIMIT
    • 3. CONTENTS  INTRODUCTION . Industry overview . Company profile . Introduction to distribution channels  NATURE OF THE PROBLEM  PROBLEM RESOLUTION: PROCESS  PROBLEM RESOLUTION: OUTCOMES  PROBLEM RESOLUTION: MAJOR CONCLUSIONS  LIMITATIONS OF THE STUDY AIMIT 3  REFERENCES
    • 4. INTRODUCTION 4 AIMIT
    • 5. INDUSTRY OVERVIEW 5 AIMIT
    • 6. The Soft Drink Industry consists of establishments primarily engaged in manufacturing non-alcoholic, carbonated beverages, mineral waters and concentrates & syrups for the manufacture of carbonated beverages. Establishments primarily engaged in manufacturing fruit juices and non-carbonated fruit drinks are classified in canned and Preserved Fruit & Vegetable Industry. Products • Aerated waters • Carbonated beverages • Mineral and spring waters • Soft drink concentrates and syrup • Soft drink preparation carbonating Other Classifications •Milk Based Drinks •Fruit AIMIT Juices & Nectars 6
    • 7. So what exactly are New Age Beverages? Well, this is a new category within the Beverage Industry that covers the new style of beverages. This new "category" is growing and changing. Before only Energy Drinks and really new innovative beverages where part of the category. Now the category has evolved and you can include enhanced water, tea's, diet drinks, iced coffee and really, any new drink. -Chicago Tribune – Business23.02.2010 7 AIMIT
    • 8. •The first marketed soft drinks (non-carbonated) appeared in the 17th century. They were made from water and lemon juice sweetened with honey. In 1676, the Companies de Limonadiers of Paris was granted monopoly for the sale of lemonade soft drinks. Vendors would carry tanks of lemonade on their backs and dispensed cups of the soft drink to thirsty Parisians. Industry in India The soft drinks industry in India is $10-billion-strong, and growing at 6-7AIMIT percent per annum, says the ministry of food processing 8 industries.
    • 9. 9 AIMIT
    • 10. 10 AIMIT
    • 11. COMPANY PROFILE 11 AIMIT
    • 12.  PepsiCo is the world’s largest snack food company and is among the top five largest food and beverage companies in terms of annual revenue. Its main competitors in the food and beverage industry include The Coca-Cola Company, Nestle, Kraft Foods Inc and Archer Daniels.  Born in the Carolinas in 1898, Pepsi-Cola has a long and rich history. The drink is the invention of Caleb Bradham (left), a pharmacist and drugstore owner in New Bern, North Carolina.  Pepsi-Cola merged with Frito-Lay in 1965 to form PepsiCo and become the giant in the snack food and beverages industry it is today. Adding to their already long of brands and subsidiaries, PepsiCo purchased 12 list AIMIT Tropicana in 1998 and then merged with Quaker in 2001.
    • 13. Net revenue $66 Billion (as per 2011 Annual Report) 13
    • 14. PEPSI POPULAR PRODUCTS. 14 AIMIT
    • 15. 15 AIMIT
    • 16. Pepsi Operations  Pepsi is organized into four business units, as follows:  1) PepsiCo Americas Foods (PAF), which includes Frito- Lay North America (FLNA), Quaker Foods North America (QFNA) and all of Latin American food and snack businesses (LAF);  2) PepsiCo Americas Beverages (PAB), which includes all of North American and Latin American beverage businesses;  3) PepsiCo Europe, which includes all beverage, food and snack businesses in Europe; and AIMIT 16  4) PepsiCo Asia, Middle East and Africa (AMEA), which includes all beverage, food and snack businesses in
    • 17. PepsiCo in India  PepsiCo entered India in 1989 and has grown to become one of the largest food and beverage businesses in India.  PepsiCo India has been consistently investing in the country and has built an expansive beverage and snack food business supported by 38 beverage bottling plants and 3 food plants.  PepsiCo India’s extensive portfolio includes iconic brands like Pepsi, Lay’s, Kurkure, Tropicana 100%, Gatorade, Quaker and fast growing brands i.e. Nimbooz and Aliva. 17 AIMIT  Within 2 decades, the company has been able to
    • 18. Key Facts  Indian headquarters: Gurgaon, Haryana  Employment opportunities: Presently employs 6400 people and provides indirect employment to almost 200,000 people  Facilities:  38 bottling plants  3 food plants 18 AIMIT
    • 19. INTRODUCTION TO DISTRIBUTION CHANNELS 19 AIMIT
    • 20. MEANING A channel of distribution or trade channel is the path or route along which goods move from producers to ultimate consumers. It is a distribution network through which a producer puts his products in the hands of actual users. A trade or marketing channel consists of the producer, consumers or users and the various middlemen who intervene between the two. AIMIT 20
    • 21. MEANING (contd….) The two main categories of marketing intermediaries are Wholesalers & Retailers. Wholesaling intermediaries are people and firms that sell primarily to retailers and other wholesalers. They do not sell significant amounts to ultimate consumers. Retailers, by contrast, are persons or firms that sell goods and services to individuals for their own use rather than for resale. Retailers are the marketing intermediaries that consumers are most familiar with. AIMIT 21 The typical consumer buys food, clothing, personal-
    • 22. 22 AIMIT
    • 23. IMPORTANCE •After products are produced and priced, they must be distributed to the marketplace. All organizations perform a distribution function. Products are distributed in supermarkets and convenience stores across the country or even beyond. •Among the marketing 4 Ps: (product; place/distribution channels; price; and promotions/communications) marketing channels or distribution channels are still an important source of competitive advantage, since in the other Ps, for instance products, attributes are available for competitors, but to imitate Distribution builds stable competitive advantages, since marketing channels have a long-run character and to build them it is necessary to have AIMIT 23 a consistent structure; and due also to the fact that they are
    • 24. IMPORTANCE (contd…) •The realisation process of a marketing strategy of a company lies not only in achieving specific production goals and a proper communication with recipients during realization of the promotion phase but with constant and very important factor i.e to provide finished products to customers. A basic condition for achieving goals set out in the trade is that the finished product meets the needs of the consumer, in particular it has a suitable form and it is delivered at the right time and place AIMIT 24
    • 25. 25 AIMIT
    • 26. 26 AIMIT
    • 27. 27 AIMIT
    • 28. 28 AIMIT
    • 29. CHANNEL CONTROL STRATEGY 29 AIMIT
    • 30. ** - COBO – COMPANY OWNED BOTTLING OPERATION ** - FOBO – FRANCHISEE OWNED BOTTLING OPERATIONS 30 AIMIT
    • 31. 31 AIMIT
    • 32. RETAIL DISTRIBUTION CHANNELS OF PEPSI INDIA 32 AIMIT
    • 33. RETAIL DISTRIBUTION CHANNELS OF PEPSI INDIA 33 AIMIT
    • 34. NATURE OF PROBLEM 34 AIMIT
    • 35. PROFILE 35 AIMIT
    • 36. SALES VOLUME 36 AIMIT
    • 37. RETAILERS SALES VOLUME COMPOSITION OF NON ORGANISED RETAILERS 37 AIMIT
    • 38. PROBLEM FORMULATION 38 AIMIT
    • 39. To ensure achievement of consistent growth target there are 2 avenues  Increase customer base which means to change customer behavior – This is being done by National Branding Teams which run campaigns, ads etc and is not a localized activity. We also are aware that all FMCG products predominantly use PULL strategy and Pespi is no exception. Moreover branding/marketing activities are not the major functions of distribution channel. And most importantly changing customer behavior takes a lot of involvement and time. So this avenue is not feasible and within the powers/control of the Mangalore Region.  Increase retailer base to ensure “availability” and thus capture competitor’s share as, in the soft drink segment visibility and availability lead to Sales  Option (b) is more viable, easier to focus and has great 39 potential to increase sales. AIMIT
    • 40. Coverage by Pepsi Grocery, Eateries, Modern Trade, Premise is wide and very indept. in On Further, since PET accounts for 80% of the volume, Pepsi has a stronger pull in Eateries and Grocery Stores where sales volume is high in this (PET) segment. Moreover local manufacturers can’t compete with Pepsi as they loose the price advantage in that packaging segment. 40 AIMIT
    • 41. •Thus the one retailer class segment which can be focused on is the Convenience Channel (PAAN SHOPS, STD BOOTHS, MILK BOOTHS,SMALL EATERIES). •Even in these Pepsi has made very good inroads owing to its Pull strategy. •However, out of these retailers Pepsi is already strong in all categories except the “C” class retailers. 41 AIMIT
    • 42. •“C” Class retailers predominantly sell local soft drinks and not even coke. •Thus “C” class retailers can be targeted as their volumes though small are not negligible as they drive atleast 8-10% of volume. •Out of this 8-10% of volume, 95% of those volumes are those of local soft drinks. •A pie of this share will help Pepsi significantly increase its volumes 42 AIMIT
    • 43. 43 AIMIT
    • 44. Based on the above, we can arrive at a conclusion that to increase sales & achieve consistent growth figures Pepsi needs to increase its “C” class Retailer Base. Thus we can formulate the problem “How to increase market share by increasing “C” class retailers base i.e targeting those retailers who are not presently selling pepsi/coke (branded carbonated players)” 44 AIMIT
    • 45. PROBLEM RESOLUTION: PROCESS We take past surveys of “C” retailers and customers at their shops and then we use certain related Data from those surveys and try to analyze, interpret and then assess the actual reasons why “C” class retailers are not selling PEPSI or any other branded carbonated drinks and also what is the customer preference. 45 AIMIT
    • 46. We need to further analyse some data 46 AIMIT
    • 47. 47 AIMIT
    • 48. 48 AIMIT
    • 49. 49 AIMIT
    • 50. 50 AIMIT
    • 51. 51 AIMIT
    • 52. PROBLEM RESOLUTION OUTCOMES 52 AIMIT
    • 53. Based on the information & analysis provided in the earlier chapter, we come to the conclusion that The “C” Class Retailers are open to retailing Pepsi however the impediments are  Information  Relationship management  Extensive monitoring Customers at “C” retailers are willing to buy Pepsi products, provided they are available. AIMIT 53
    • 54. 54 AIMIT
    • 55. 55 CAMPAIGNS & PROMOTIONAL ACTIVITIES @ LOCATIONS AIMIT
    • 56. VISIBILITY CREATION 56 AIMIT
    • 57. RETAILER RELATIONSHIP MANAGEMENT •LOYALTY INCENTIVES •RECOGNITION 57 AIMIT
    • 58. AGGRESSIVE RETAILER ACQUISITION A fresh retailer acquisition drive across Mangalore and other areas will help forge new retailer relations. An intense campaign to drive retailer acquisition with a specific target (to each sales executive) will bring in more focus. •Further, the distributors can also given a yearly acquisition target and ensure that those numbers are achieved each year which will ensure that the retailer base is “replenished” if old retailers drop out and “renew” and “identify” new retailers. •Distributors can be made accountable for loss of retailers and also recognized for good acquisition numbers. AIMIT 58
    • 59. PROBLEM RESOLUTION: MAJOR CONCLUSIONS 59 AIMIT
    • 60.  We come to the concluding part of the report wherein we have resolved the problems of  “Decreasing market share”  “Increasing competition of local soft drink manufacturers”  “Decreased reach of Pepsi products” 60 AIMIT
    • 61. Research Methodology Research Methodolgy used for this BCP Observation &  Interviews  Field Visits 61 AIMIT
    • 62. Feasibility of the solution  Based on the data provided and its analysis and also based on interactions with company officials, retailers and their customers a focused approach to increase the retailer base will definitely help in augmenting the sales volume and the overall market share of Pepsi.  This solution “of increasing the retailer base” and the strategies suggested is feasible as it is developed keeping in mind the distributor AIMIT 62 strength, the company resources and its
    • 63. Estimated Cost & Benefits to Pepsi  Increased sales volume (based on the present local soft drink sales volume by retailers)  Increase in market share  Widened customer base  More visibility  Lesser dependence on other channels  Scope for cross sell of other Pepsi Products 63 AIMIT
    • 64. LIMITATIONS OF THE STUDY 64 AIMIT
    • 65.  The entire study is mostly based on secondary data provided to us by the company, reports, publications, magazines and also certain past surveys.  The analysis has been broadly based on the some past surveys whose sample size was just about 10% of the “C” class retailers base in Mangalore which is not sufficient to arrive at a conclusive and concrete analysis  The study is restricted to Mangalore Region only while the present Pepsi Regional Office based at Mangalore handles entire Dakshina Kannada District.  The company doesn’t declare all the data and internal data are kept confidential hence knowledge about certain practises, policies, strategies related to Distribution, Retailers is still not clear and is based on theories.  Though every sincere and possible effort has been made to AIMIT 65 collect the data, some retailers, mostly
    • 66. REFERENCES 66 AIMIT
    • 67.  Oswald A. J. Mascarenhas, S. J., Ph.D. – “PROBLEM- CENTERED SUMMER INTERNSHIP PROJECTS (SIP) AND BUSINESS CONSULTANCY PROJECTS (BCP): NEW RESEARCH PARADIGMS” MAY 7, 2012 - Revised and expanded: May 31, 2012  Soft Drinks International (Journal) – Aug 2009; Pg-14  Valentin Angelkov, Tray Black, Angie Green, Jerry James & Erin Lutz – “Pepsi’s Strategy in the Carbonated Soft Drinks Market” – Project Submitted to – The McCombs School of Business, The University of Texas at Austin - April 30, 2003  Pepsi annual report – 2010,2011,2012 67 AIMIT
    • 68.  http://www.firstpost.com/business/as- summer-sizzles-its-war-in-indias-10-bnbeverage-market-270041.html - Date last accessed on 24.03.2013  http://beveragemanager.net/Article- 68 SingleNews.176.0.html?&tx_ttnews%5Btt_news %5D=4369&cHash=4625b26628d7df11d 31f21ac7a1d8496 – Date last accessed on 01.02.2013 AIMIT
    • 69. THANK YOU 69 AIMIT
    • 70. 70 AIMIT
    • 71. 71 AIMIT
    • 72. 72 AIMIT
    • 73. 73 AIMIT

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