A project report on various policies of pepsi toward retailers mba marketing

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A project report on various policies of pepsi toward retailers mba marketing

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A project report on various policies of pepsi toward retailers mba marketing

  1. 1. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTD INDEXSl. No. PARTICULARS PAGE NO1 Declaration 0-12 Acknowledgment 0-23 Executive Summary 3-44 Industry overview 5-95 Company profile 10-73 About Organization6 Findings & Conclusion 74-757 Recommendations 76-08 Limitation of study 77-09 Bibliography 78-010 Annexure 79-84 1 Babasabpatilfreepptmba.com
  2. 2. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTD EXECUTIVE SUMMARY Nectar Beverages Pvt. Ltd., Dharwad is a franchisee of PepsiCo Company,which is one of the major players in carbonated beverages world market. Retailers are plays a crucial role in any FMCG. This survey covers all thedimensions, which retailers consider while carrying out their business. This surveyhold lot of value as it is done at the peak the season.My project is titled "STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERS ATNECTAR BEVERAGE PVT.LTD". I undertook this study for their soft drink products. During thecourse of my study my job was to find out the satisfaction of the retailers towards the promotionsprovided by the company in these areas. During the course of my study my job was to findout the channels of distribution of the company in Hubli city and also to find out thesatisfaction of the retailers towards the supply and coolers provided by the companyin these areas. Methodology: This report is based on the survey conducted in Hubli-Dharwad market. It alsocollects the secondary information from the website of prime research companies. Sampling Method:All the potential dealers in a particular sub route were considered in the sample. Thegeneral outlets included pan shops, bakeries, general stores, bars and restaurants,Xerox and S.T.D shops. From the research it is clear that all most all the retailers keepPepsi and Coke in their shop. 2 Babasabpatilfreepptmba.com
  3. 3. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDSample size: All the potential retailers in Hubli-Dharwad were considered in sample (100).Types of marketers:Retailers mainly divided in convenience stores, eateries, groceries, bar and wine.FININDNGS 1) From the research it is clear that all most all the retailers keep Pepsi and Coke in their shop. i.e. Pepsi 28% 2) Most of the retailers are doing business more than 4 years i.e. 66%, between 2 to 3 years 20%, 1 to 2 years 6%, less than 1 year 8%. 3) As according to the consumer demand most of the retailers stores in their shop Pepsi 28%. 4) Most of the retailers are satisfied with the Company service i.e. 45% but 55% of the retailers are not satisfied with the company policies.CONCLUSION Thus according to this survey we conclude that most of the retailers stock boththe products Pepsi and Coke because of consumer demand for the product and also forthe service provided by the company. Retailers prefer Pepsi brand more because sales person maintain a very goodrelationship with the retailer. Retailers prefer Pepsi brand more because quality. The most important parameter is the scheme given by Pepsi is really good andattractive. INDUSTRY OVERVIEW 3 Babasabpatilfreepptmba.com
  4. 4. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDThe Indian Carbonated Beverage Industry is a very dynamic industry. The soft drinksare the life style brands and are closely related with the consumers. The passion forcricket in the country makes it a unique market.The Indian Carbonated Beverage Industry is worth Rs.1000/- crore.The currentgrowth rate of industry is 8%.The main ingredients of a soft drink are water, sugar,added flavors, and carbonated gas.Though some outlets like bar restaurants running business throughout year, for otherchannels the peak season is between Februarys to June.In Dharwad retailers Pepsi has58% market and coke has 42% retail market Thephenomenal sales growth of carbonated soft drinks Pepsi (about 30 to 35 per cent) andCoca-Cola (40 per cent and above) in the months of April and May 2003 has provedthat there is a right price for everything - you just have to get to it.The success is mostly due to a cutthroat price war initiated Coca-Cola India when itlaunched Coke in 200 ml packs priced at Rs. 5 Pepsi India was left with no choice butto follow suit. Not only this, Pepsi went one-step further and slashed prices of its 300ml packs to Rs. 6 all because it didn’t have 200 ml bottles.Some slick advertising of course, augmented the price war, with Coke bringing infilm star Aamir Khan in various regional guises to reinforce its price-led strategy.Pepsi, not to be out done, roped in reigning queen Aishwarya and current heartthrobVivek Oberoi to do the honors.For two companies, which repeatedly requested the government to reduce the excisedduty on these to help increase sales, have achieved an unprecedented sales growthwith the very same soft drinks.In fact so great has been the sales growth of the soft drink brands that the companiesnow seem to be shelving its earlier plans to launch juices and other beverages in thedomestic market. 4 Babasabpatilfreepptmba.com
  5. 5. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDPepsi India claims that while the sales of Pepsi grew by 25% – 30% in April and areexpected to register a 30% - 40 % growth in May, its other CSD brands, MountainDew and Blue Pepsi, Have done quite well. Though that can’t be said of thecompanies lime-flavored Pepsi Aha and juice brand Slice; they have performed belowexpectations.Led by a riveting ad campaign, Mountain Dew has already grabbed a 5% share of theRs. 7,000 crore-carbonated soft drink industry since its launch. For the momentPepsiCo India is putting juice brand Slice under Review. Originally launched in amango flavor in returnable glass bottles, Slice was extended to cartons two yearsback. It has since then been introduced in flavors such as litchi and guava.Coca-Cola India also says it has logged spectacular sales in the past few months. Itclaims it has registered a sales growth of over 40% overall during the last two months,while in a few urban pockets like New Delhi and Hyderabad the sales growth was ashigh as 70% -80% in the month of May.The company has also increased its village penetration from 9% in year 2000 to 25%in 2003 by adding 40,000 more villages. It has added 30 new lines from September2002 and has added 9 million cases of new glass to its operations.Compare this with the fact that it had about 20 million cases of glass in the marketduring the last 10 years. The total number of Coca-Cola outlets has increased from 6,00,000 to 7, 50,000 from 2000 and the company is giving out additional 2.5lakhrefrigerators this year. Coca-Cola is also said to be putting its plans of launching juiceand milk-based beverages on the back burner and grow CSD sales while the summerheat rages.Interestingly, with carbonated beverages segment, its lime-based drinks like Sprite,Limca and 7-Up, besides diet variants of Coke and Pepsi, which are growing fasterthan the two big colas. 5 Babasabpatilfreepptmba.com
  6. 6. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDIt’s the same in the US, Europe and Japan. In the US, for instance, fizzy drinks havebeen on the decline since their sales peaked in 1998, while categories like water,energy drinks and juices are growing. Pepsi’s volume declined 4% last year, whileCoca-Cola has launched only diet drinks in the last two years. Changing TasteUS: Fizzy drinks on decline since 1998. Pepsi slumped 4% last year, Coke bringingonly diet drinks.UK: Fruit juices command 66% of market, growing at 60%. Even Coke launchingjuicesJapan: Iced tea and coffee dominates market. Coke’s Georgia coffee outsells cola.India: Juices and non-fizzy drinks growing at 40%. Colas grow at 10% Juice brandsgrowing fasterIt’s not just in India that people prefer juices, flavored milk, butter milk and juicebased drinks over fizzy cola drinks.In UK, Coca-Cola introduced minute maid juice this month to meet booming juicesales. In Japan, Coca-Cola’s Georgia coffee outsells coke. In India, PepsiCo’sTropicana and Dabur’s Real are driving growth in the 100% juice market, whilevarious non-aerated beverage brands have flooded retail shelves. coke has re launchedits fruit-based drink Maaza in three flavors, while Amul has added buttermilk to itsrange of flavored milk and cold coffee, and Parle Agro has given a new look to Frooti. Obviously, tetra packaging is playing a role in making available these healthdrinks more easily. Rasna has hired Hrithik Roshan to push sales, while Nestle hasstepped up distribution for its tetra pack milk and cold coffee range. Godrej’s XSfruit juice, and Mother dairy’s Safal have also stepped up marketing and distribution 6 Babasabpatilfreepptmba.com
  7. 7. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDspends. Smaller juice brands like Leh Berrry and Tuk 3 are also growing in healthydouble digits. The man with the mission heads straight to the owner to the shops and fires hisvolley of questions, after a brief introduction: “Hum Pepsi Company se aye hain.Coca-Cola company koi discount de raha hai? Hamaara aadmi time par maal deliverkarta hai?” This man from Pepsi is none other than its brand new head Rajeev Bakshi,who after a three-year turnaround stint with Cadbury India joined Pepsi last year, butformally, took over only now. On a field trip in Gurgaon, Haryana, Brand Equitytrailed Bakshi alone the route into the far-flung suburbs to get a ‘real’ taste of life. Aman possessed, he’s busy making mental notes, and mostly absorbed in deep thought.A small break at the office, and he’s off to South Delhi with Anurag Jaipuria of JaiDrinks, Pepsi’s bottles for Delhi and Jammu. And then, he plans to go on toSultanpur it’s all in a day’s work for the Pepsi chief. “It’s bloody important for me togo out into the market. One wrong move can lead to dramatic changes in marketshare. The pricing is quite essential in the business and any minor change can lead tohuge changes in fortunes. Advertising here is conventional, not in content but interms of time frames,” says Bakshi, in an interaction with BE that lasted nearly threehours.It’s marketing by wandering around, to give a small twist to a Tom Peters phrase. Thefield trips, says Bakshi, alert him to what is going on at the ground level, help himidentify gaps and develop an action plan. Says a CEO of an FMCG company:“Mr.PM Sinha was a good salesman, but he never really ran good businesses, noteven at Hindustan Lever. Mr.Rajeev mandate is to make money and, you watch, he’llbring some sanity into the company.”2009 Carbonated Soft Drinks in the U.S. (Summer 2009) 7 Babasabpatilfreepptmba.com
  8. 8. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTD It’s tough at the top. Explore the stats, trends and offensive and defensivestrategies in the leading beverage category. Including volume Dollar sales nation wideas well as by region and by state. Also includes per capita consumption and five-yeargrowth projections as well as data on and discussion of regular and diet, flavors,package vs. fountain, pricing, retail channels, distribution, advertising, consumerdemographics and leading brands. Detailed looks at the leading companies, theirstrategies, management and financing. Coca-Cola India Coca-Cola India, the country’s largest carbonated soft drinks producerrefreshes millions of consumers throughout the country with an exciting range ofbeverages including Coca-Cola, Diet Coke, Vanilla Coke, Thums Up, Fanta, Limca,Sprite, Maaza, Sunfill, Georgia, Georgia Gold, Kinley and Kinley Club Soda througha network of more than one million outlets. The company has invested more than US$1 billion in its Indian operations, emerging as one of the country’s top internationalinvestors and employs approximately 6,000 people in India. COMPANY OVERVIEWAbout the Pepsi-Cola Company The summer of 1898, as usual, was hot and humid in New Bern,North Carolina. So a young pharmacist named Caleb Bradham began experimentingwith combinations of spices, juices, and syrups trying to create a refreshing new drink 8 Babasabpatilfreepptmba.com
  9. 9. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDto serve his customers. He succeeded beyond all expectations because he invented thebeverage known around the world as Pepsi-ColaPepsi-Cola was so popular that Caleb Bradham (circled) could hardly take timeaway from his soda fountain customers to pose for this picture. Caleb Braham knew that to keep people returning to his pharmacy, he would have toturn it into a gathering place.In 1902, he launched the Pepsi-Cola Company in the back room of his pharmacy, andapplied to the U.S. Patent Office for a trademark. At first, he mixed the syrup himselfand sold it exclusively through soda fountains.. The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officiallyregistered with the U.S. Patent Office. That year, Caleb sold 7,968 gallons of syrup,using the theme line "Exhilarating, Invigorating, Aids Digestion." He also beganawarding franchises to bottle Pepsi to independent investors, whose number grewfrom just two in 1905, in the cities of Charlotte and Durham, North Carolina, to 15 thefollowing year, and 40 by 1907. By the end of 1910, there were Pepsi-Cola franchisesin 24 states. 9 Babasabpatilfreepptmba.com
  10. 10. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDPepsi-Colas first bottling line resulted from some less-than-sophisticatedengineering in the back room of Calebs pharmacy.Building a strong franchise system was one of Calebs greatest achievements. LocalPepsi-Cola bottlers, entrepreneurial in spirit and dedicated to the products success,provided a sturdy foundation. They were the cornerstone of thePepsi-ColaenterpriseGrowth was phenomenal, and in 1909 Caleb erected a headquarters so spectacularthat the town of New Bern pictured it on a postcard. Famous racingcar driver BarneyOldfield endorsed Pepsi in newspaper ads as "A bully drink...refreshing, invigorating,a fine bracer before a race." The previous year, Pepsi had been one of the first companies in the UnitedStates to switch from horse-drawn transport to motor vehicles, and Calebs businessexpertise captured widespread attention. He was even mentioned as a possiblecandidate for Governor. A 1913 editorial in the Greensboro Patriot praised him for his"keen and energetic business sense."Pepsi-Cola enjoyed 17 unbroken years of success. Caleb now promoted Pepsi saleswith the slogan, "Drink Pepsi-Cola. It will satisfy you." Then came World War I, andthe cost of doing business increased drastically. Sugar prices see sawed betweenrecord highs and disastrous lows, and so did the price of producing Pepsi-Cola. Calebwas forced into a series of business gambles just to survive, until finally, after threeexhausting years, his luck ran out and he was bankrupted. By 1921, only two plantsremainedIt wasnt until a successful candy manufacturer, Charles G. Guth, appeared on thescene that the future of Pepsi-Cola was assured. Guth was president of Loft 10 Babasabpatilfreepptmba.com
  11. 11. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDIncorporated, a large chain of candy stores and soda fountains along the easternseaboard. He saw Pepsi-Cola as an opportunity to discontinue an unsatisfactorybusiness relationship with the Coca-Cola Company, and at the same time to add anattractive drawing card to Lofts soda fountains. He was right. After five owners and15 unprofitable years, Pepsi-Cola was once again a thriving national brand. PEPSICO MISSION: PepsiCo’s overall mission is to increase the value of our share holder’sinvestment. We do this trough sales growth, cost control and wise investment ofresources. We believe our commercial success depends upon offering quality andvalue to our consumers and customers; providing products that are safe, wholesome,economically efficient and environmentally sound; and providing a fair return to ourinvestors while adhering to the highest standards of integrity. This page focuses on the soft drink industry, and two of its major competitors;Pepsi and Coca-cola. This page will take an in depth view at the structure these twocompanies have and how they are influenced by each other. PEPSI-COLA BEVERAGES PepsiCo’s beverage business was founded 1898 by Caleb Bradham, a New Bern,North Carolina druggist, who first formulated Pepsi-Cola. Today, Brand Pepsi is part of a portfolio of beverage brands that includescarbonated soft drinks, juices and juice drinks, ready-to-drink teas and coffee drinks,isotonic sports drinks, bottled water and enhanced waters. PBNA has well knownbrand such as Mountain Dew, Diet Pepsi, Gatorade, Tropicana Pure Premium,Aquafina water, Sierra Mist, Mug, Tropicana juice drinks, Propel, SoBe, Slice, Dole,Tropicana Twister and Tropicana Season’s Best. 11 Babasabpatilfreepptmba.com
  12. 12. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTD PBNA manufactures and sells concentrate for some of these brands to licensedbottlers, who sell the branded products to independent distributors and retailers.PBNA provides advertising, marketing, sales and promotional support for its brands.This includes some of the worlds best-loved and most-recognized advertising. In 1992 PBNA formed a partnership with Thomas J. Lipton Co. to selling ready-to-drink tea brands in the United States. Pepsi-Cola also markets Frappuccino ready-to-drink coffee through a partnership with Starbucks. Frito-Lay The company consists of Frito-Lay North America, PepsiCo Beverages NorthAmerica, PepsiCo International and Quaker Foods North America. PepsiCo brands are available in nearly 200 countries and territories andgenerate sales at the retail level of about $85 billion. Many of PepsiCos brand names are more than 100-years-old, but thecorporation is relatively young. PepsiCo was founded in 1965 through the merger ofPepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged withThe Quaker Oats Company, including Gatorade, in 2001. PepsiCo offers product choices to meet a broad variety of needs andpreference -- from fun-for-you items to product choices that contribute to healthierlifestyles.PepsiCo’s mission is “To be the worlds premier consumer Products Companyfocused on convenient foods and beverages. We seek to produce healthy financialrewards to investors as we provide opportunities for growth and enrichment to ouremployees, our business partners and the communities in which we operate. And ineverything we do, we strive for honesty, fairness and integrity.” 12 Babasabpatilfreepptmba.com
  13. 13. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDPepsiCos snack food operations had their start in 1932 when two separate events tookplace. In San Antonio, Texas, Elmer Doolin bought the recipe for an unknown foodproduct – a corn chip – and started an entirely new industry. The product was Fritosbrand corn chips, and his firm became the Frito Company.GATORADE & TROPICANA Tropicana was founded in 1947 by Anthony Rossi as a Florida fruit packagingbusiness. In 1954 Rossi pioneered a pasteurization process for orange juice. For thefirst time, consumers could enjoy the fresh taste of pure not-from-concentrate 100%Florida orange juice in a ready-to-serve package. The juice, Tropicana Pure Premium,became the company’s flagship product. PepsiCo acquired Tropicana, including theDole juice business, in August 1998. SoBe became a part of PBNA in 2001. SoBe manufactures and markets aninnovative line of beverages including fruit blends, energy drinks, dairy-based drinks,exotic teas and other beverages with herbal ingredients. Gatorade thirst quencher sport drinks was acquired by The Quaker OatsCompany in 1983 and became a part of PepsiCo with the merger in 2001. Gatorade isthe first isotonic sports drink. Created in 1965 by researchers at the University ofFlorida for the schools football team, "The Gators," Gatorade is now the worldsleading sports drink. PepsiCo Beverages North America includes the United States and Canada Pepsi-Cola began selling its products outside the United States and Canada inthe mid-1930s, opening in the United Kingdom in 1936. Operations grew rapidlybeginning in the 1950s. Today, PepsiCo beverages are available in more than 170countries and territories. Brands include Aquafina, Gatorade and Tropicana.In addition to brands marketed in the United States, PepsiCo International brandsinclude Mirinda, Seven-Up and many local brands. 13 Babasabpatilfreepptmba.com
  14. 14. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTD PepsiCo began its international snack food operations in 1966. Today, productsare available in nearly 170 countries. Often PepsiCo snack food products are knownby local names.QUAKER FOODS:The Quaker Oats Company was formed in 1901 when several American pioneers inoat milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour andWilliam Heston had established the Quaker Mill Company. The figure of a man inQuaker clothes became the first registered trademark for breakfast cereal and remainsthe hallmark for Quaker Oats today.In Cedar Rapids, Iowa, John Stuart and his son, Robert, and their partner, GeorgeDouglas, operated the largest cereal mill of the time. Ferdinand Schumacher, knownas "The Oatmeal King," had founded German Mills American Oatmeal Company in1856.Combining The Quaker Mill Company with the Stuart and Schumacher businessesbrought together the top oats milling expertise in the country as The Quaker OatsCompany.The first major acquisition of the company was Aunt Jemima Mills Company in 1926,which is today the leading manufacturer of pancake mixes and syrup. Gatorade wasacquired in 1983.In 1986, The Quaker Oats Company acquired the Golden Grain Company, producersof Rice-A-Roni. 14 Babasabpatilfreepptmba.com
  15. 15. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDPepsiCo merged with The Quaker Oats Company in 2001. Pepsi profit fizz:Pop! Fizz. Ah-h! It happens millions of times a day, every day. That feeling of thirsthits, someone opens a Pepsi and the magic begins. Cold... Delicious. Each time, everytime.Of course, thats what you expect from a great product like Pepsi-Cola. Or from DietPepsi, Mountain Dew or any of our other popular soft drinks and other beverages.But how do we do it? How can the people at Pepsi be sure that every single bottle andcan of Pepsi-Cola is always great-tasting, sparkling and fresh?Actually, theres no secret to how to make Pepsi (except for the recipe). But there is asystem. And that system, plus a lot of hard work, is what enables Pepsi-Cola and theindependent Pepsi-Cola bottlers all around the world to bring you that high-quality,consistently refreshing Pepsi taste each time you open one of our products.The system starts with the finest ingredients available – kola nuts, vanilla beans,flavor oils, citrus, sweeteners and the purest waters we can distill. Then we add thebest technology and all the care we can muster to blend our ingredients.And during the 100-plus years weve been making soft drinks, weve also created ourown exacting production and quality standards, monitored with constant testing toguarantee quality and consistency in our products.Finally, we have our own local distribution system. Its designed to make sure that thePepsi you open at home is as fresh and delicious as it was when we sealed it at ourplant. And it serves every city and town in the United States. 15 Babasabpatilfreepptmba.com
  16. 16. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDComplicated? Sure. And expensive, too. But theres no other way we can be certainthat Pepsi-Cola products you buy are the highest quality, best value products we canmake.Now, heres what all of those steps look like:Flavor concentrates are shipped from special Pepsi-Cola manufacturing plants inheavy-duty, air-tight containers. Liquid sweeteners are transported in special tankertrucks. All ingredients and food products are stored in clean, sanitary areas, and itemsrequiring refrigeration are kept in temperature-controlled areas.The bottles and cans that will eventually be filled with Pepsi are manufacturedelsewhere, and shipped to Pepsi plants wrapped and sealed for protection. Labels,cartons, caps, the carbon dioxide used to carbonate soft drinks and other supplies arealso produced for Pepsi by other companies. On arrival, everything is subject tocareful inspection to make certain all of the ingredients and materials meet high Pepsistandards.Special equipment is used to uncase and depletive incoming shipments of bottles andcans. Cans are by far the most popular package with consumers because theyrelightweight and easy to store. Though bulky, the cartons and pallets on which theempty packages arrive are also relatively light in weight, so its easy for the machinesto automatically remove the cans from their shipping containers at high speed. Themachines then transfer the individual packages to a conveyor belt.Once on the belt, cans are part of an enclosed, controlled environment that keeps themsanitary and helps ensure quality throughout the filling process. They travel rapidlythrough a printer that applies a production code to each can.Then theyre automatically turned upside down, and rinsed thoroughly with filteredwater before proceeding directly to the filler.Water is a key ingredient in all soft drinks. Pepsi-Cola takes special care to purify thewater it uses – a procedure that involves careful treatment, filtration and purification. 16 Babasabpatilfreepptmba.com
  17. 17. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDPepsi standards are precise and closely monitored at every step of the process. Theresult of this kind of painstaking attention to detail is that the water used in Pepsi-Colaand all of our beverages is among the purest available anywhere.Pepsi-Cola flavor concentrate is carefully combined with sweeteners and otheringredients in large stainless steel mixing tanks. Quality control audits performed byspecially trained technicians are a critical part of the manufacturing sequence for eachbatch, and are typical of the attention to detail thats necessary if the highest possiblequality standards are to be maintained. Cleanliness is also vital, so all internal andexternal surfaces of the production system, including syrup lines, proportioning,cooling and carbonating equipment, are meticulously sanitized.In the last step of the manufacturing process, as the now-rinsed cans reach the filler,theyre reinvented, immediately filled and the lid is applied – at an average speed of1,200 cans per minute. The filler is where the syrups from the mixing tanks arecombined with the purified water from the filtration process. The liquid is thencarbonated. This carbonation process gives soft drinks the special sparkle – fizzybubbles – that adds to their quality of refreshment.All Pepsi cans and bottles are imprinted with a freshness date, which is a date codethat tells you your soft drink is fresh. A final quality check ensures that the package isproperly filled, sealed and labeled.As products leave the manufacturing line, theyre combined into a variety of packages– six- or 12-packs, 24- or 30-can cases or cases of individual two-liter bottles. The Manufacturing Process 17 Babasabpatilfreepptmba.com
  18. 18. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDMost soft drinks are made at local bottling and canning companies. Brand namefranchise companies grant licenses to bottlers to mix the soft drinks in strictaccordance to their secret formulas and their required manufacturing procedures.RAW MATERIALSCarbonated water constitutes up to 94% of a soft drink. Carbon dioxide adds thatspecial sparkle and bites to the beverage and also acts as a mild preservative. Carbondioxide is a uniquely suitable gas for soft drinks because it is inert, non-toxic, andrelatively inexpensive and easy to liquefy.The second main ingredient is sugar, which makes up 7-12% of a soft drink. Used ineither dry or liquid form, sugar adds sweetness and body to the beverage, enhancingthe "mouth-feel," an important component for consumer enjoyment of a soft drink.Sugar also balances flavors and acids.Sugar-free soft drinks stemmed from a sugar scarcity during World War II. Soft drinkmanufacturers turned to high-intensity sweeteners, mainly saccharin, which wasphased out in the 1970s when it was declared a potential carcinogen. Other sugarsubstitutes were introduced more successfully, notably aspartame, or Nutria-Sweet,which was widely used throughout the 1980s and 1990s for diet soft drinks. Becausesome high-intensity sweeteners do not provide the desired mouth-feel and aftertaste ofsugar, they often are combined with sugar and other sweeteners and flavors toimprove the beverage.The overall flavor of a soft drink depends on an intricate balance of sweetness,tartness, and acidity (pH). Acids add sharpness to the background taste and enhancethe thirst-quenching experience by stimulating saliva flow. The most common acid insoft drinks is citric acid, which has a lemony flavor. Acids also reduce pH levels,mildly preserving the beverage. 18 Babasabpatilfreepptmba.com
  19. 19. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTD Very small quantities of other additives enhance taste, mouth-feel, aroma, andappearance of the beverage. There is an endless range of flavorings; they may benatural, natural identical (chemically synthesized imitations), or artificial (chemicallyunrelated to natural flavors). Emulsions are added to soft drinks primarily to enhance"eye appeal" by serving as clouding agents. Emulsions are mixtures of liquids that aregenerally incompatible. They consist of water-based elements, such as gums, pectin’s,and preservatives; and oil-based liquids, such as flavors, colors, and weighing agents.Saponins enhance the foamy head of certain soft drinks, like cream soda and gingerbeer. To impede the growth of microorganisms and prevent deterioration,preservatives are added to soft drinks. Anti-oxidants, such as BHA and ascorbic acid, 19 Babasabpatilfreepptmba.com
  20. 20. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDmaintain color and flavor. Beginning in the 1980s, soft drink manufacturers opted fornatural additives in response to increasing health concerns of the public. Impurities in the water are removed through a process of coagulation,filtration, and chlorination. Coagulation involves mixing flock into the water toabsorb suspended particles. The water is then poured through a sand filter to removefine particles of Roc. To sterilize the water, small amounts of chlorine are added tothe water and filtered out.Clarifying the water The quality of water is crucial to the success of a soft drink. Impurities, suchas suspended particles, organic matter, and bacteria, may degrade taste and color.They are generally removed through the traditional process of a series of coagulation,filtration, and chlorination. Coagulation involves mixing a gelatinous precipitate, orflock (ferric sulphate or aluminum sulphate), into the water. The flock absorbssuspended particles, making them larger and more easily trapped by filters. During theclarification process, alkalinity must be adjusted with an addition of lime to reach thedesired pH level.Filtering, sterilizing, and dechlorinating the waterThe clarified water is poured through a sand filter to remove fine particles of floc.The water passes through a layer of sand and courser beds of gravel to capture theparticles.Sterilization is necessary to destroy bacteria and organic compounds that might spoilthe waters taste or color. The water is pumped into a storage tank and is dosed with asmall amount of free chlorine. The chlorinated water remains in the storage 20 Babasabpatilfreepptmba.com
  21. 21. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTD Next, an activated carbon filter dechlorinates the water and removes residualorganic matter, much like the sand filter. A vacuum pump de-aerates the water beforeit passes into a dosing station.Mixing the ingredients The dissolved sugar and flavor concentrates are pumped into the dosingstation in a predetermined sequence according to their compatibility. The ingredientsare conveyed into batch tanks where they are carefully mixed; too much agitation cancause unwanted aeration. The syrup may be sterilized while in the tanks, usingultraviolet radiation or flash pasteurization, which involves quickly heating andcooling the mixture. Fruit based syrups generally must be pasteurized. The water and syrup are carefully combined by sophisticated machines, calledproportion, which regulate the flow rates and ratios of the liquids. The vessels arepressurized with carbon dioxide to prevent aeration of the mixture. 21 Babasabpatilfreepptmba.com
  22. 22. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDCarbonating the beverage Carbonation is generally added to the finished product, though it may bemixed into the water at an earlier stage. The temperature of the liquid must becarefully controlled since carbon dioxide solubility increases as the liquid temperaturedecreases. Many carbonators are equipped with their own cooling systems. Theamount of carbon dioxide pressure used depends on the type of soft drink. Forinstance, fruit drinks require far less carbonation than mixer drinks, such as tonics,which are meant to be diluted with other liquids. The beverage is slightly over-pressured with carbon dioxide to facilitate the movement into storage tanks andultimately to the filler machine.Filling and packagingThe finished product is transferred into bottles or cans at extremely high flow rates.The containers are immediately sealed with pressure-resistant closures, either tinplateor steel crowns with corrugated edges, twist off, or pull tabs.Because soft drinks are generally cooled during the manufacturing process, they mustbe brought to room temperature before labeling to prevent condensation from ruiningthe labels. This is usually achieved by spraying the containers with warm water anddrying them. Labels are then affixed to bottles to provide information about the brand,ingredients, shelf life, and safe use of the product. Most labels are made of paperthough some are made of a plastic film. Cans are generally pre-printed with productinformation before the filling stage.QUALITY CONTROLSoft drink manufacturers adhere to strict water quality standards for allowabledissolved solids, alkalinity, chlorides, sulfates, iron, and aluminum. Not only is it in 22 Babasabpatilfreepptmba.com
  23. 23. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDthe interest of public health, but clean water also facilitates the production process andmaintains consistency in flavor, color, and body. Microbiological and other testingoccur regularly. The National Soft Drink Association and other agencies set standardsfor regulating the quality of sugar and other ingredients. If soft drinks are producedwith low-quality sugar, particles in the beverage will spoil it, creating floc. To preventsuch spoilage, sugar must be carefully handled in dry, sanitized environments.It is crucial for soft drink manufacturers to inspect raw materials before they aremixed with other ingredients, because preservatives may not kill all bacteria. Alltanks, pumps, and containers are thoroughly sterilized and continuously monitored.Cans, make of aluminum alloy or tin-coated low-carbon steel, are lacquered internallyto seal the metal and prevent corrosion from contact with the beverage. Soft drinkmanufacturers also recommend specific storage conditions to retailers to insure thatthe beverages do not spoil. The shelf life of soft drinks is generally at least one year.RECYCLINGThe $27 billion dollar soft drink industry generated about 110 billion containers eachyear in the early 1990s. About half of soft drink containers were aluminum cans andthe other half, about 35 billion, were PET plastic bottles. Nearly 60% of all soft drinkcontainers were recycled, the highest rate for any packaging in the United States.Environmental concerns continued to lead to improvements and innovations inpackaging technology, including the development of refillable and reusablecontainers.MARKETING, ADVERTISING, AND COMPETITION The company generally sells product directly to retail stores and outlets bytheir employees. Over the past few years, product creation has slowed down. Thecompany has stopped concentrating so much on creating so many new products, and 23 Babasabpatilfreepptmba.com
  24. 24. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDhas turned their concentration to attaining new franchises and advertising. Theacquisition of contacts with smaller franchises is important in order to continuegrowing revenue. The advertising concentration has become necessary as a defensivemaneuver to deal with competitors.Brand recognition is the significant factor affecting Pepsi’s competitive position.Pepsi’s brand mane is known well throughout 90% of the world today. The primaryconcern over the past few years has been to get this name brand to be even betterknown.Packaging changes have also affected sales and industry positioning, but in general,the public has tended not to be affected by anew products. The primary competitor ofthe Pepsi Company is Coco-Cola Company. Pepsi and Coca-Cola make up anywherefrom 75% to90% of the market where they operate.DISTRIBUTION NETWORKThere is no involvement of wholesalers in the distribution of product. It is more likean agent network. The companies have divided the country into various regions andestablished a franchisee in each region. The franchisees have their own bottling plantsand manage all the day-to-day operations. However, of late, the soft drinks companieshave started setting up company owned bottling units/have been acquiring some of itsfranchisee bottles.Brands:PEPSI BRANDS 24 Babasabpatilfreepptmba.com
  25. 25. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTD7-up Gold 7-up 1988Pepsi A. M. Pepsi-Cola 1989Pepsi’s Wild Bunch Pepsi-Cola 1991Crystal Pepsi Pepsi-Cola 1992Pepsi Company is using wonderful sloganPYASS HAI BADIYE DIL MANGE MOREHAVE A PEPSI DAYTHE GENERATION NEXTPEPSI NOTHING OFFICAL ABOUT IT.NOW IT’S PEPSI, FOR THOSE WHO THINK YOUNG 25 Babasabpatilfreepptmba.com
  26. 26. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDTHE CHOICE OF NEW GENERATION“YOU GOT OF THE RIGHT ONE BABY”“A GENERATION AHEAD”.“NOTHING ELSE IS A PEPSI” A Tale of Pepsi Co’s Strategy and Structure:Pepsi Co. And the coca-cola Company is to of the largest and oldest archrivals in thecarbonated soft drinks industry. The war between the soda giants, also known as the“cola wars”, initiated in the 1960s when Coca-Cola dominance was being increasinglychallenged by Pepsi-Cola. The competitive environment between the rivals wasintense and well publicized, forcing the Pepsi Company to continuously establish andimplement strategic changes as a means to create a competitive advantage.Furthermore both Pepsi and coke offered a limited number of products that “lookedthe same, tasted the same, and bubble into foam the same “thus, questioning whetherfurther substantial growth in sales was possible.Rather than succumbing to the impending maturation of its domestic market, thePepsi company as a leader, fostered by the competitive intensity, launched newstrategies, such as product modifications, new forms of pricing and promotion, andfundamental changes in its distribution system, that have led to rapid and continuedexpansion of the company’s domestic sales. By forecasting and responding to changesin the economic, political, social, and technological environment, Pepsi hassuccessfully innovated in marketing, distribution, and product development. The sodarivalry also initiated Pepsi Company to seek international markets and diversificationstrategies in order to increase its sales growth. 26 Babasabpatilfreepptmba.com
  27. 27. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTD“To be the World’s Premier Consumer Products Company focused of convenientfoods and beverages. In every thing we do we strive for honesty fairness andintegrity”.PepsiCo is a world leader in convenient foods and beverages, with 2004 revenues ofmore than $29 billion and 153,000 employees. The company consists of Frito-LayNorth America, PepsiCo Beverages North America, PepsiCo international and QuakerFoods North America. PepsiCo brands are available in nearly 200 countries andterritories and generate sales at the retail level of about $78 billion.Many of PepsiCo’s brand names are more than 100-years-old, but the corporation isrelatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola andFrito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with the Quaker oatscompany, including Gatorade, in 2001.PepsiCo offers product choices to meet a broad variety of needs and preference fromfun for-you items to product choices that contribute to healthier life styles.PepsiCo is among the world’s largest food and beverage companies. Our businessesinclude: Frito-Lay, the world’s largest manufacturer and distributor of snack chips;Pepsi-Cola, the world’s second largest beverage company; Tropicana, the world’slargest marketer and producer of branded juices; Gatorade, the world’s leading sportsdrink and Quaker, a leading manufacturer and marketer of cereals, rice and pasta andother grain-based products. PepsiCo brand names are among the best known and ouroperations reach every corner of the world. As a consumer products company, andimportant environmental challenge facing all our divisions is the packing generatedby our products, packaging is important to public health and safety and is criticalcomponent of the destitution system that delivers products to consumers andcommercial establishments. To meet these needs and safeguard the environment, wefollow the Environmental Protection Agency’s (EPA) approach of Reduce, reuse andrecycle. 27 Babasabpatilfreepptmba.com
  28. 28. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTD Each business also strives to be responsible in its use of resources inmanufacturing and distributing our products. This report covers our environmentalcommitment, the principles we follow, and progress at each of our businesses.PepsiCo’s Environmental commitment PepsiCo is committed to providing safe and healthy work environments and tobeing an environmentally responsible corporate citizen. It is our policy to complywith all applicable environmental, safety and health laws and regulations. We believe that protecting the environment is an important part of goodcorporate citizenship. We are committed to minimizing the impact of our businesseson the environment with methods that are socially responsible, scientifically basedand economically sound. We encourage conservation, recycling and energy useprograms that promote clean air and water and reduce land fill waste. PepsiCo WorldWide code of conduct.SHAREHOLDERS PepsiCo (symbol: PEP) shares are traded principally of the New York stockexchange in the United States. The company is also listed on the Amsterdam,Chicago, Swiss and Tokyo stock exchanges. PepsiCo has consistently paid cashdividends since the corporation was founded. CORPORATE CITIZENSHIP At PepsiCo, we believe that as a corporate citizen, we have a responsibility tocontribute to the quality of life in our communities. This philosophy is expressed inour sustainability vision which states: “PepsiCo’s responsibility is to continuallyimprove all aspects of the world in which we operate- environment, social, economic-creating a better tomorrow than today”. 28 Babasabpatilfreepptmba.com
  29. 29. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTD Our vision is put into action through programs and a focus on environmentalstewardship, activities to benefit society, and commitment to builds shareholder valueby making PepsiCo a truly sustainable company. PEPSICO HEADQUARTERSPepsiCo world headquarter is located in New York City. Edward Durrel Stone, oneof America’s foremost architects, designed the seven- building headquarters complex.The building occupies 10 acres of a 144 acre complex that includes the Donald M.Kendall sculpture Gardens, a world-acclaimed sculpture collection in a garden setting.The collection of works is focused on major twentieth century art, and features worksby masters such as Auguste Robin, Henri Laurens, Henry Moore, Alexander Calder,Alberto Giacometti, Arnaldo Pomodoro and claes Oldenberg, the gardens originallywere designed by the world famous garden planner, Russell Page, and have beenextended by Francois Goffinet. The grounds are open to the public, and a visitor’sbooth is in operation during the spring and summer. FRITO-LAY NORTH AMERICAPepsiCo’s snack food operation had their start in 1932 when two separate events tookplace. In San Antonio, Texas, Elmer Doolin bought the recipe for an unknown foodproduct – a corn chip and started an entirely new industry. The product was FritosBrand Corn chips, and his firm became the Frito Company.That same year in Nashville, Tennessee, Herman W. Lay started a business disunitingpotato chips. Mr. Lay later bought the company that supplied him with product andchanged its name to H.W. Lay Company. The Frito Company and H.W. LayCompany merged in 1961 to become Frito-Lay, Inc. 29 Babasabpatilfreepptmba.com
  30. 30. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDMajor Frito-Lay products include Lay’s Potato chips, Doritos flavored tortilla chips,Tostitos tortilla chips, Cheetos cheese flavored snacks, Fritos corn chips, RufflesPotato chips, Rold Gold Pretzels, Sun chips multigrain snacks, Munchies snack mix,Lay’s Stax Potato crisps, Cracker jack candy coated popcorn and Go snacks.Frito-Lay also sells a variety of branded Chips, Quaker fruit and oatmeal bars, QuakerQuakes corn and rice snacks, Grandma’s cookies, nuts and crackers.Frito-Lay North America includes Canada and United States. RECYCLE  All Pepsi-Cola containers are designed for easy recycling and more than half are recycled, making soft drink containers the most recycled packaging in the United States.  Pepsi-Cola is working with suppliers and bottlers to develop a PET (poly eth 1-eneterephthalate) bottle that contains 10% recycled content. Pepsi-Cola PET plastic bottles will include 10% recycled content by 2005. We are currently conducting tests with suppliers on the safety of 20 ounce and 2 liter plastic bottles containing various recycled resins. We are developing a sensory protocol for Pepsi-Cola bottles containing recycled plastics.  In the United States, 48 million Pepsi-Cola aluminum cans are recycled each day. In Canada, over 50% of soft drink containers are recycled, and this continues to rise.  Over the years Pepsi-Cola has made the plastic PET bottles more easily recyclable in the United States, Canada Europe and elsewhere. Pepsi-Cola eliminated base cups in most markets, switched to polypropylene caps instead of aluminum metal caps, and paper contamination.  In U.S. and Canadian bottling plants, packages damaged during filling are collected and recycled glass, plastic and aluminum. Many plants also recycle used packaging from incoming materials corrugated packages, straps from pallets, etc. This has reduced plant waste by 50%-75% avoiding disposal costs and land filling. 30 Babasabpatilfreepptmba.com
  31. 31. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTD  Pepsi-Cola established one of the first programs in the country to collect and recycle the plastic ring connectors from six packs. Since then the company has established similar programs with its supplier, HiCone, at over 10,000 schools across the country. Many of the Pepsi-Cola bottling partners have established programs to recycle ring connectors collected after filling vending machines with cans. And if some consumers do litter, North American ring connectors are photo degradable and have a “breakaway “ pull tab so the can be easily separated , minimizing any impact on wildlife.QUALITY POLICY: Make Sell and Deliver the Beverages to the consumer has it was designed, in orderto drive brand preference.SAFETY PRINCIPLES IN THE COMPANY:We believe that safety health and environmental excellence is fundamental todemonstrating the values of the right side up company in all our operations.Through a fully empowered Pepsi-Cola organization, it is the job of every individualat Pepsi-Cola to be conscious of and strive towards protection of safety, health and theenvironment in our operating procedures and in the design of our facilities andequipment. We will rely on an integrated process that places value on individuals,exceeds performer and customer expectation and increases the value of our company. We intend to sustain safety health and environmental process that will preventinjury and property damage, protect against loss by fire and provide security for ourassets. It is the obligation of every one at Pepsi-Cola to comply with all applicablesafety health and environmental laws.Ongoing monitoring of these activities will take place in order to ensure that we holdour self accountable for safety, health and environmental excellence.QUALITY ASSUARANCE: 31 Babasabpatilfreepptmba.com
  32. 32. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTD Perhaps the most important in a bottling plant are those concerned with the maintenance of the standards of purity and uniformity set for the beverages produced. Those activities can be grouped together under the heading of quality assurance. To get the top most quality of the product, all the ingredients such as water, CO2, concentrate are strictly inspected and analyzed by our quality assurance department. Apart from raw material, online sampling finished products are also tested. Samples of beverages produced are picked from the market for testing by independent laboratories of international repute. MAJOR PLAYERS AND MARKET SHARES The two global majors Pepsi and Coca-cola, Which had winded up its Indiaoperations during the introduction of the FERA regime, reentered India 16 years laterin 1993, dominate the soft drink market in India. Coca-cola acquired a major chunk ofthe soft drink market buying out local brands thumps up, limca and gold spot fromParle beverages. Coca cola has also acquired Cadbury Schweppes soft drinks brandscrush, Canada dry and sport Cola in early 1999.Pepsi although started a couple ofyears before Coca-Cola in 1991,has a lower market share today. It has bought overMumbai based duke’s rang of soft drink brands both the cola manufacturers come upwith their own market share figures and claim to have increased their share.Segmentation The soft drink market can be segmented on the basis of place of consumption oron the basis of type or products. The segmentation on the basis of place ofconsumption divides the market into parts. 32 Babasabpatilfreepptmba.com
  33. 33. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTD• On-premise -80% of the consumption of the soft drinks is on premise i.e. restaurants, sweet marts, railway station, cinema theaters etc.• At home-the rest of 20%of the market comprises of the soft drinks purchased for consumption at home.• The market can also be segmented o the basis of types of products into cola products and non-cola products.• Cola products account for nearly 62-65% of the total soft drinks market. The brands that fall in this category are Pepsi, coca-cola, thumps up, diet coke, diet Pepsi etc.• Non-cola segment, which constitutes 36%, can be divided into four categories based on the types of flavors available, namely: Orange Cloudy Lime Clear Lime Mango i) Orange flavor based soft drinks constitute around 17% of the market. The segment is largely dominated by national brands like Fanta of coca- cola and Mirinda orange of Pepsi Co, which collectively forms 15% of the market, rest of the market is in hands of smaller brands like crush, Gold Spot etc. ii) Cloudy Lime flavors constitutes of 14% of the market and is largely dominated by Limca of coca-cola and mirinda Lemon of Pepsi Co, Limca is the market leader with around 70-75% of the market Followed by Mirinda Lemon. iii) Clear lime: this segment of the market witnessed good growth initially with all the players launching their brands in the segment. iv) Mango: this flavor segment constitutes 2% of the total soft drinks market and it directly it completes with mango based fruit drinks like Frooti. The leading brands in these segments are: Maaza of coca-cola, and slice of Pepsi. 33 Babasabpatilfreepptmba.com
  34. 34. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDDIFFERENT IMAGES OF PEPSI COMPANYHere are some different images that the Pepsi Company have been following.HISTORY Pepsi has one of the most intriguing histories of any product on the market.From it’s humble beginnings the people of Pepsi make the story what it is –includingits inventor, customers, competition, corporate managers, salesman, distributors,cartoon spokes-persons and including some of the biggest names in entertainment 34 Babasabpatilfreepptmba.com
  35. 35. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDhistory. There have been good times and bad times- plus lots and lots of changes overthe years. If you enjoy Pepsi, you’ll enjoy the stories of the people who have made itpossible. PeopleToday Pepsi is one of hundreds of products manufactured by the PepsiCo Corporation.Pepsi Co is a world leader in world leader in convenient foods and beverages, withrevenues of about $27 billion and over 1, 43,000 employees. The company consists ofthe snack businesses of Frito-Lay North America and Frito-Lay international, thebeverage businesses of Pepsi-cola North America, Gatorade/ Tropicana NorthAmerica and Pepsi Co Beverages international, and Quaker Foods North America,manufacturer and marketer of ready-to-eat cereals and other food products. . 35 Babasabpatilfreepptmba.com
  36. 36. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDORGANIZATION STUDYNectar Beverages Pvt. Ltd, Dharwad. Nectar Beverages Pvt. Ltd, Dharwad is a franchisee of Pepsi Co. Late Shrifounded it. Madhubab Timblo, Prominent Industrialist and business entrepreneur ofGoa in 1984. Nectar Beverages belongs to big house of Goa, under the banner for FormentoGroup. The group deals in Hotel, Soft drinks and 100 % F. O. Us of Mining in Goa,Karnataka and Andhra. It is headed by Mr. Prashanth Timblo, the idea son for theillustrious father late Mr. Madhubab. Nectar Beverages has carved a special niche in the map of soft drinks in thecountry. Thus enjoys the highest reprobation in the soft drinks market for qualityproducts of international brand such as Pepsi, 7up, Miranda (orange), 36 Babasabpatilfreepptmba.com
  37. 37. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDMiranda(lemon), evervess soda, slice etc Utmost care is being taken from thebeginning of collection of the raw water till it turns it into a sophisticated flavor drink.MAHAKOSHAL NECTAR BEVERAGES PVT.LTD DHARWAD It is started in the year 1996. Mahakoshal is a sales department of PepsiCompany, Dharwad. It consists of a 25 employees In sales department and theyare covering 15 districts, 70 stockiest. Mahakoshal consists of 10 acres of land.In production and administration line consists of 50 permanent workers, 100seasonal worked and 30 staff executives. The company is giving festival offersto the employees 8.33% bonus and every year two uniforms (pants and shirts)including shoes and caps. and also marriage loan. Housing loan, children’smarriage loan 2500 for festival loan 2500 for festival loan to be given. On thebasis of monthly wages is paid to the workers. He is permanent or seasonal.Mahakoshal annual turnover is 12 to 15 crores and 13 lakhs creates. And alsothey are giving daily morning and evening two times tea and two biscuits in theorganization. The company has 100 small and big vehicles on contract basis. In Dharwad hasa distributor is responsible for distributing retailers, bars, hotels, cold drink house etc.the Nectar Beverages pvt. Ltd is started in the year of 1985. 40 to 45 percent marketshare from north Karnataka.MISSION - To achieve every batch incoming raw materials are checked for quality by quality assurance departments. - Using high grade sugar. - The online and final product checks are carried out at regular intervals. - To purchase raw materials only from approved sources, approved by independent laboratories of international repute. - Using equipments of superior grade stainless steel material. 37 Babasabpatilfreepptmba.com
  38. 38. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTD - To give special attention to -Personnel hygiene and sanitation -House Keeping -Good manufacturing process. - To give special attention to keep the Factory Surroundings Clean and Green by growing Lawn.MANUFACTURING PROCESS OF CARBONATED DRINKWATER AND WATER TREATMENT Pure water is taste less, color less and odor less. Water as it occurs in nature,whatever the source, always contains impurities in solution are in suspension. Thedetermination of these impurities makes water analysis necessary and the control ofthese impurities makes water conditioning essential. The various sources of water can be classified as rain water, surface water andground water. Irrespective of the source of the water, the water has to be tested andtreated before taking in to the production.TESTING AND TREATMENT PROCEDURE ADOPTED AT M/S. NECTARBEVERGES Pvt. Ltd. DHARWAD The source of water at Nectar Beverages Pvt. Ltd. is ground water. The wateris tested for various parameters like, hardness, alkalinity, suspended impurities, andmicro organisms.TREATMENT PROCEDUREThere are two types of water treatment adopted at nectar beverages Pvt. Ltd, 1. Chemical batch treatment: This water is used for beverage purpose. 2. Ion exchange: This water is used for boiler feed water, cooling tower, D.G. sets, condenser, heat exchanger and bottle washer.1. CHEMICAL BATCH TREATMENT PROCESS 38 Babasabpatilfreepptmba.com
  39. 39. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTD Here the raw water is collected in storage tanks and dosages for chemicaltreatment are given according to the characteristics of the raw water. The source ofraw water is bore wells. At present N.B.P.L. is holding three water treatment storage tanks, out ofwhich two tanks are of 3,00,000 liters capacity and one is 4,00,000 liters capacity. Raw water is collected from bore wells in the storage treatment tanks andanalyzed the characteristics of raw water such has P-alkalinity, M-alkalinity,temporary hardness and calcium hardness, afterwards chemical dosages are fixed.After addition of chemicals, the water is stirred by mechanical agitator, and threehours contact period is given before taking the water for production. Treated water passed through the sand filter to remove any floe carry over,then an activated carbon filter which removes chlorine and off taste/ odor causingimpurities. Finally it goes through 5 micron pore size polishing filters to remove anycarbon that may have been carried out over from the carbon purifier, and then throughultra-violet. Chlorine concentration is maintained at 6-8 PPM level before carbonfilter and 2 hours contact time prior to dechlorination.Details of Chemicals Used 1. Lime: Added to remove alkaline compounds from water to an acceptable level and to reduce temporary hardness. 2. Bleaching Powder: Added for chlorination to oxidize microorganisms. 3. Ferrous Sulphate: Added for coagulation and flocculation i.e., to remove the suspended solids and also insoluble materials created by chlorination and alkalinity reduction is removed.The sludge is drained and the treatment tanks cleaned with water after every treatmentand fresh raw water is taken for fresh treatment.2. ION EXCHANGE METHODSource of water- bore well.Liquid hypochlorite is injected in to the online water flowing from bore well to rawwater tanks. 39 Babasabpatilfreepptmba.com
  40. 40. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTD Once the raw water is chlorinated, after giving sufficient contact time, thewater is passed through sand filter, carbon filter and resin bed. Then the soft water isstored in soft water storage tanks. Before the water goes into the storage tanks, 2PPM of chlorine is injected in to the on-line water flowing from softener to soft waterstorage tanks. Contact time in storage tank is minimum 2 hrs. Then the water fromthe tank is being pumped on it passed through 5 micron pore size polishing filters tothe bottle washer/boiler. The concentration of chlorine at the final outlet will bearound 2 PPM.SWEETENING AGENT AND SYRUP PREPERATION Sweetening agents are those subsistence’s, which when blended with flavour,acid etc. will provide satisfactory sweet taste in the finished beverages. They alsofurnished body, which helps to carry or transits the flavour. They also give energy orfood value to the beverage.SYRUP PREPERATTRION The preparation of the syrup is certainly one of the most important operationin the beverage plant, both from the stand point of sanitation and control ofconcentration. The object in syrup making is to prepare satisfactorily bended andfinished syrup from which uniform beverages of high quality can be produced. Normally required quantity of sugar of high quality is added to treated waterand heated to 850 C, in a high grade stainless steel double jack vessel. Activatedcarbon is added to this to remove impurities. Impurities along with activated carbonadded to the sugar are separated form the sugar solution by filtering the sugar syrup.Filter paper and Hyflo Supercel are used as filter aid. The temperature of the clearsyrup thus obtained is brought down to 200 C and stored is called “Simple” syrup. When the syrup is completely prepared by the addition and blending of allflavorings ingredients it is called as “Ready”/ “Finished” / Flavored syrup. The syrupis ready for use in production process.CO2 AND CARBONATION 40 Babasabpatilfreepptmba.com
  41. 41. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTD The CO2 used for beverage purpose are 99.9% pure, free from moisture, air,oil, grease and other impurities. The amount of CO2 dissolved in solution is called as volumes. The number ofvolumes of gas in the finished beverage has a definite relationship to the taste of thebeverage. Correct carbonation means a sparkling, stimulating, thirst quenchingbeverage that completely refreshes and satisfies the consumer. Since there is definiterelationship between taste and carbonation, it is extremely important to determine andmaintain the carbonation which has proved most acceptable through experience inconsumer section. The technique adopted at M/S. N.B.P.L for carbonating the beverage is asunder: The ready syrup, which is prepared and stored in ready syrup tank, is taken tothe bottling line. It is passed trough a machine called ‘premix’ where the syrup isautomatically diluted with treated water to the required level. Once it is diluted it issent to the carbonator for carbonation. For carbonating the beverage a mechanical device known as“CARBONATOR” is used. CO2 gas enters the carbonator through a valve at the topof the body of the carbonator. The dome as well as the body of the carbonator isfilled with gas. Syrup is sprayed in to the carbonator from the top, which flows downthrough the baffle plates provided inside the carbonator. As the water flows down itgets mixed with the CO2 gas present inside the carbonator. Carbonation can best be obtained by increasing the pressure inside thecarbonator vessel and by pre-cooling the syrup before it is pumped to the carbonator.Low gas volume product need not be pre-chilled.CONCENTRATES Flavorings materials used in making carbonated beverages are primarily arealcoholic extracts, emulsions, alcoholic solutions or fruit juices. Concentrates or non-alcoholic beverage bases are supplied by N.B.P.L’sprinciple company from channo (Punjab) having international standards. On additionof concentrate to the simple syrup we get respective finished syrup ready for furtherprocess to bottle beverages. 41 Babasabpatilfreepptmba.com
  42. 42. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDBOTTLE WASHING AND BOTTLE INSPECTON One of the most important aspects of the bottling operation is the cleaning ofthe reusable bottles when it returns to the bottling plant. In order to be reused thebottle must be sterile, of acceptable appearance, rinsed free of any detergent ofsterilizing agent, and of good mechanical strength. The object of bottle washing is to produce both a clean bottle and sterile one.The fact that bottle looks clean does not indicate it is sterile, and on the other hand, adirty looking bottle may be a sterile one. The present day bottle washer is designed to both clean and sanitize bottlesbefore sending them to the filling line.BOTTLE WASHING COMPOUNDS Members of the alkali family of chemicals make up the basis of most bottlewashing compounds. Caustic soda is the principle ingredient because it has by far thebest germicidal properties. Three factors are crucial in the germicidal efficiency of the washer. These are:Contact time, caustic strength and temperature.OPERATIONS OF THE BOTTLE WASHER 1. The first step in the operation precedes the washer. When the cases of empties return to the bottling plant, they must be sorted and culled to remove especially dirty bottles, of ones contaminated with paint, tar, etc, or chipped or broken bottles. This operation is often done by hand. 2. The inspected bottles are feed into the bottle washing machine; automatically. The bottles are turned up side down to drain any contents and given a pre rinse spray wash both internally and externally with plain water with certain pressure. This operation is called pre rinse operation. Then the bottles are moved to pre wash compartment, where the bottles are spray washed both internally and externally with 1 to 1.5% caustic solutions @45 0 C to 550C temperature. 42 Babasabpatilfreepptmba.com
  43. 43. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTD 3. Bottles are then, moved into a tank in the bottle washing machine, where the bottles are soaked with caustic solution of 3 to 3.5% @750 C temperature. To get this best results that bottles are to be soaked in this compartment for a minimum of 7 minutes at the caustic strength and temperature given as above. This operation cleans and sterilizes the bottle. 4. Then the soaked bottles are moved to a compartment called “Hydro”, where again the bottles are given spray wash both internally and externally with 1 to 1.5% caustic wash @ 500 to 550 C. 5. Bottles are moved to compartment called pre-final compartment where again the bottles are given spray wash with soft water to remove the caustic traces. Here the temperature is maintained around 400 to 450 C. Finally bottles, free from caustic moved to a compartment called final rinse compartment where the bottles are again, waited sprayed both inside and out side with soft water to deliver a clean and sanitary bottles to the conveyor enrooted to filler at ambient temperature. Before the bottles moved through the conveyor, the bottles are subjected to ethylene blue test to ensure the bottles are free from mold and as also tests are carried out to determine whether the bottles are free from caustic traces. These tests are done at random. Then the washed bottles are moved through conveyor to filler for filling operation. Before the bottles are moved to filler the bottles are subjected to visual inspection. This is called bottle inspection.BOTTLE INSPECTION The clean bottles undergo inspection after they leave the washer and beforethey arrive at the filler. Inspection can be done visually by an individual. It is a jobrequiring a great deal of concentration and no individual can be efficient for longstretches at a time. Provision should be made for changing inspectors frequently, and 43 Babasabpatilfreepptmba.com
  44. 44. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDadequate bright diffused light should be provided which illuminates all parts of thebottle effectively, but does not glare in the operator’s eyes. A receptacle should be provided, convenient to the inspector for non-usablebottles, and cases should be handy to accumulate unclean bottles for rewashing.Those bottles found acceptable to the empty bottle inspector are sent for filling andcrowning.FILLING AND BOTTLING LINEThe bottles, on a suitable conveyor line arrive at the rotary filler, which is equippedwith filling heads. The beverage filling unit includes a filling tank, which receivesbeverages from the carbonator.The tank is also connected to the gas chamber of the carbonator. This connectioninsures balanced pressure and a proper beverage level in the tank.On entering the head, the bottle is sealed to the filling valve and a counter pressure isestablished in the bottle. At this point, the pressure inside the bottle is equal to andderived from the filling tank.Once the bottle is properly pressurized, carbonated water flows in displacing air andCO2 in the bottle. The displaced gas passes through the counter pressure lines back tothe top of the filler tank.When the proper level of beverage in the bottle is reached, the supply is cut off andthe top gas pressure in the bottle is shifted to the atmosphere.Once the top pressure has been released, the bottle is removed from the valve andpasses through the crowner.The crowning unit consists of the hopper for holding the crown supply, a crown chuteand the crowning mechanism. The crowned bottle then moves from the crowner on tothe out feed conveyor.FINAL INSPECTION POINT Then the sealed bottles are moved on a conveyor line and it is subjected to afinal inspection. Where the inspector checks for un crowned bottles, over/under filledbottles, foreign matter (if any), and for any other visual defects. Once the inspector satisfies with the quality of product and package, he allowsmoving the bottles further to the collection table, where the bottles are manually 44 Babasabpatilfreepptmba.com
  45. 45. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDcollected and put in the crates of 24 bottles and moved further for warehousing, andawaitingshipment.PLANT SANITATION The most scrupulous sanitation practices are essential in soft drink plant. Thehighest standard of cleanliness for premises, personnel and equipment is obviouslynecessary due to the type of operation involved that of manufacturing a food product. Sanitation is necessary to insure the keeping qualities, proper appearance andfull flavour of any soft drink. When the equipment becomes contaminated, yeast,bacteria or mold microorganisms begin to appear in the finished beverage. Increasednumbers of these microorganisms will cause the development of undesirable tastesand odors and ultimate spoilage of the product. Nothing will kill the demand for abeverage any quicker than off-tastes and odors or product spoilage. Hence sanitation, good plant house keeping and good manufacturing practiceare strictly implemented at N.B.P.L.QUALITY ASSSURANCE: Perhaps the most important activities in bottling plant are those concernedwith the maintenance of the standards of purity and uniformity set for the beveragesproduced. These activities can be grouped together under the heading of qualityAssurance. To get the too most quality of finished product, all the ingredients such aswater, sugar, CO2, concentrate are strictly inspected and analyzed by N.B.P.L QualityAssurance Department. Apart from raw materials, on line sampling, finished productsare also tested. Samples of beverages produced are picked up from the market for testing byindependent laboratories of international repute.EFFLUENT TREATMENT PLANT The effluent water charged by N.B.P.L is properly treated and neutralized tomaintain a value of C.O.D., B.O.D., pH and T.D.S in water as per the guidelines 45 Babasabpatilfreepptmba.com
  46. 46. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDprescribed by the Water Pollution Board of Karnataka. For this N.B.P.L has fullfledged effluent treatment plant.MARKETING MIXProductQualityFeaturesOptionsDesignsStylesBrand NamePackagingSize, Color, ServiceGuaranteeWarrantiesPlaceChannelsCoverageLocationsInventoryTransportPriceList PriceDiscountPayment PeriodCredit termsPromotionAdvertisingPersonal sellingSales Promotion 46 Babasabpatilfreepptmba.com
  47. 47. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDPublicity FOUR P’S .OF PEPSI COMPANY Management of the company must design a marketing mix thecombination product, place, price and promotion. These four elements must togethersatisfy the needs of the organization target market and at the same time , achieve itsmarketing objectives. 1. PRODUCT: Strategies are needed for managing existing products overtime addingnew ones and dropping failed products. Strategic decisions must also be maderegarding branding, packaging and other product related features such as warrantiesguaranties.Pepsi company product information: Pepsi Company as a Multi National Company has got enormous number ofproducts since from its beginning it has got a list of thousand together products in itsbasket. But it is not operating in all the countries with all the products. Because allPepsi product may not be suitable for the people of every country so by keeping thisin mind the Nectar Beverages Pvt. Ltd , Dharwad manufacturing only someproducts namely: Pepsi ,Blue Pepsi, Mirinda orange , Mirinda Lemon, Mountain Dew,Slice , 7-up, Lehar-soda. But the Pepsi company’s present leading brands are Pepsi,7-up, Mirindaorange.In India it is manufacturing only some products viz. SEGMENT PRODUCTS COLA PEPSI ORANGE MIRINDA CLEAR LEMON 7UP, MOUNTAIN CLOUDY LEMON DEW MANGO TEEM MIRINDA SODA SLICE EVERVESS 47 Babasabpatilfreepptmba.com
  48. 48. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTD The above products are available in different bottles sizes and pet packs i. e ,200ml ,300ml,500ml,1liter,2liter. Since from the launch of 200ml(mini ) Pepsi products in the market it ismoving very fast in the market place than any other quantity bottles and pet jars , evenit has over taken the sales of 300ml bottles as forecasted.2. PRICE: Price is the most important element of marketing mix. Price is determinantfactor for the success or failure of any organization .A pricing strategy is must forentering in to new market or with new product Pepsi products price have beenchanging season wise and even place wise .Recently company reduces the prices of200ml Pepsi products to Rs 5/- in the month March/ April 2006, Pepsi company hastaken a strategic decision by reducing the price of 300ml Pepsi products up to Rs 6/-in North Karnataka only but earlier it was Rs 8/- for 300ml bottle.3) PLACE OR DISTRIUTION: Here the strategies involve the management of channels by which ownership ofproduct is transferred from producer to customer, in many case the system by whichgoods are moved from where they are produced to where they are purchased by thefinal customer. In Nectar Beverages Pvt, Ltd. They have appointed the stockiest for theirproducts at different places in North Karnataka (i.e. in 13 districts). In turn thesestockiest are distributing the cold drinks to retailers and again these retailers areselling these soft drinks to end users.4) PROMOTION Promotion activities are must for every organization. It creates a basicplatform for moving the company products. Sometimes promotion activates play acrucial role. With ought it products / services cannot move themselves: it includesadvertisement, personal selling, sales promotion and publicity. 48 Babasabpatilfreepptmba.com
  49. 49. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTD Pepsi Company is trying to raise its penetration by offering name boards, standsfor keeping the products, money to some shop keepers for interior decoration,Refrigerators, trade discounts, cash discounts, credit facilities,Pepsi has laced it self as new generation drink. Pepsi focused on youth spontaneityirreverence as its brand personality. Pepsi ads have a elements of surprise a originally.The selling plats form being cricket, music, and films. 49 Babasabpatilfreepptmba.com
  50. 50. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERS AT NECTAR BEVERAGES PVT.LTD ORGANIZATION CHART: NECTAR BEVERAGES Pvt. Ltd. Resident director (CEO) GM Manager Manager Manager (Plant) (Finance) (HR) (Territory developmen t) Assistant Executive Executive Executive Manager HR Administrator General Executive Assistant Clerk Accountant Shipping Store Manager Manager Manager(Executive) (Executive) (Production) (Maintenance) (Quality Control) Executive Customer (Quality (Executive) Control) Customer Area Sales Executive Manager 50 Babasabpatilfreepptmba.com
  51. 51. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDTotal Employment of N.B.P.L: CEO : 01 Managers : 05 Executives : 36 Staff : 09 Permanent Workers : 50 Temporary Workers Non Seasonal: 30 Seasonal : 120HEADS DEPARTMENTS OF N.B.P.L.1. Human Resource Department : Mr.R.A.Baakale2. Sales and Marketing Department : Mr.Ranjit Morey3. Finance Department : Mr. K.Chetan4. Production Department : Mr.M.A.PritvirajMARKETING CHANNELSThere are two types of marketing channels: 1. Consumer marketing channels. 2. Industrial marketing channels. N.B.P.L. Pepsi Co. is a Fast Moving Consumer Goods (FMCG) Companywhich comes under consumer marketing. So this consumer marketing channelincludes four levels of channel they are, a. 0-level channel b. 1-level channel c. 2-level channel d. 3-level channel 51 Babasabpatilfreepptmba.com
  52. 52. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDCONSUMER MARKETING CHANNEL OF N.B.P.L PEPSI CO.2-LEVEL CHANNEL MANUFACTURER WHOLESALER RETAILER CONSUMER (End User) The 2-Level channel is company to manage the business and reduce the highrisk adopts the most suitable marketing channel for N.B.P.L PEPSI CO. this channel. In this channel company main work is to manufacturing the products andpromoting the products to the wholesalers. Here the wholesaler is the main key for thecompany’s business growth. This channel makes it easy for the customers to purchase product, but byproviding greater service output which increases channel costs and there by increasesprices for customers. So 2-level channel which correlates with company’s market functioning.FUNCTION OF MARKETING CHANNEL 52 Babasabpatilfreepptmba.com
  53. 53. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTD A marketing channel performs the work of moving goods from producers toconsumers. And its key functions are;  It gathers information about potential and current customers, competitors, and other factors and forces in the marketing environment.  It develops and disseminates persuasive communications to stimulate purchasing.  It reaches agreements on price and other terms so that transfer of ownership or possession can be affected.  It place orders with manufacturers.  It acquires the funds to finance inventories at different levels in the marketing channel.  It assumes risks connected with carrying out channel work.  It provides for the successive storage and movement of physical products.  It provides for buyers payment of their bills through banks and other financial institutions.  It over sees the actual transfer of ownership from one organization or person to another.MARKET SHAREDHARWAD 58%HUBLI 60%BELGAUM 50%HAASAN 99%DAVANGERE 87%MADHURAI 88%BIJAPURTASK ENVIRONEMENT: 53 Babasabpatilfreepptmba.com
  54. 54. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDA. Markets:The major market segments are - Bars and wine centers. - Students in soft drinks houses, restaurants, convenience stores. - Families that like to store pet bottles.C. Competitors: The major competitor is Coca-Cola along with local/unorganized sector. Pepsi Co. Brands Coca Cola’s Brands Pepsi Coke 7-up Thums up Mountain Dew Sprite 7up Ice Citra Mirinda Orange Fanta Mirinds Lemon Limca Slice Maaza Evervess Soda Kinley(water) Teem Soda Aquafina (water) Tin Duke Soda Diet Pepsi 54 Babasabpatilfreepptmba.com
  55. 55. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTDD. Distribution and dealers: The three main channels to reach the consumers ares Production Unit Distributor Distributorconvenience Groceries RestaurantsStore -General -BarsC: stores -Cool drink housePan shops -RestaurantsBakeries -Canteens EmptyTheaters ConsumersE. Suppliers: 55 Babasabpatilfreepptmba.com
  56. 56. STUDY ON VARIOUS POLICIES OF PEPSI TOWARD RETAILERSAT NECTAR BEVERAGES PVT.LTD The suppliers are of bottles, caps, openers, posters, advertising boards, sugar,flavors etc.F. Facilitators and marketing firms:The transportation and ware housing is outsourced.Pepsi Co has excellent advertising agency. It is rated as top 3rd brand in India afterITC.G. Publics:Teenagers and alcoholics form major opportunities.RESEARCH DESIGN After defining the problem. The research design is a plan specifying thesources of collection of data and analysis of needed information, data collectionsources and comprise of both primary and secondary data. -Selection of data collection. Primary data : In depth interview Questioners Interaction Secondary data : Internet - Selection of measurement technique. Quantitative analysis, pie charts - -Primary considerations in sampling. -Population : retailers -sample frame : all the retailers in Hubli-Dharwad. -sample size : 100 -Method of analysis : Quantitative 56 Babasabpatilfreepptmba.com

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