Report on 7UP REVIVE @ Varun beverages ltd, PepsiCo India

NEW DELHI INSTITUTE OF MANAGEMENT
50 (B&C), 60, Tughlakabad Institutional Area, New Delhi-110062
SUMMER TRAINING REPORT ON
Penetration of 7UP REVIVE in Delhi
For
VARUN BEVERAGES LIMITED
By
JUBIN JOSE JAMES
208
In partial fulfillment for the award of
Post Graduate Diploma in Management
2015-2017

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Jubin James
NEW DELHI INSTITUTE OF MANAGEMENT
50 (B&C), 60, Tughlakabad Institutional Area, New Delhi-110062
SUMMER TRAINING REPORT ON
Penetration of 7UP REVIVE in Delhi
For
Varun Beverages Limited
Under the supervision
of
Mr. Rajeev Gambhir
Marketing Development Manager
Varun Beverages Limited
Submitted by - Submitted to -
Jubin Jose James Dr. Gajendra Sharma
208

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ACKNOWLEDGEMENT
I express my sincere gratitude and extend whole-hearted thanks to my industry mentor
Mr. Rajeev Gambhir for assigning me with this project and the related tasks.
A special mention to Mr. Praveen Kumar and Mr. Akhil Aggarwal for the valuable
guidance and support throughout the duration of my project.
I also thank the whole team of ASM, CEs & PSRs at VBL’s Luxmi Agency without
whom various duties and implementations would not have been possible.
My sincere thanks to my faculty mentor Dr. Gajendra Sharma who devoted his/her
precious time in completion of this training report.
My training and development, my learning and the overall project report would have
not been possible without the guidance, assistance, inspiration, encouragement and
various suggestions from the above mentioned people.
Jubin Jose James

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DECLARATION
I Jubin Jose James, student of New Delhi Institute of Management 2015-2017 Batch
declare that every part of the Project Report Penetration of 7UP REVIVE in Delhi
submitted by me is original.
I was in regular contact with my faculty guide and contacted 11 times for discussing the
project.
Date of project submission: ______________
Jubin Jose James
Faculty Mentor’s Comments:
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________
Dr. Gajendra Sharma

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External Examiner’s Feedback
Date of project submission: _____________
Jubin Jose James
External Examiner’s Comments:
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
___________________________
________________________________
Name: __________________________
Organization: ____________________

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Table of Contents
Contents Page No.
Executive Summary 8
Industry Overview 9
Introduction 10 – 37
Tasks & Responsibilities Assigned 38 – 46
Major Contributions 47 – 48
Market Research 49 – 56
Conclusions 57 – 59
Major Learnings & Recommendations 60 – 61
Bibliography 62
Annexures 63 - 68

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Executive Summary
My learning & experience at VBL during the course of 8 weeks was amazing. I got a
remarkable exposure to channel sales & operations & also, marketing execution
procedures. Sales has been widely mistaken with marketing but, both cannot occur
without each other. For example, 7UP REVIVE is not selling well because there is no
promotion in the form of TV ads. But, TV ads are expensive & can be broadcasted
only if there is enough revenue generated through sales.
In this two-month programme, I was exposed to the real-time market areas where I
mastered the technique of selling 7UP REVIVE with some given limitations. At
Luxmi Agency, as a result of various suggestion & implementation of schemes, along
with increased focus on the product, the sales, penetration & the total number of
outlets for 7UP REVIVE soared in the month June. And, the depot over-exceeded its
target sales for the beverage.
During this period I also conducted a survey of the retailers to understand various
challenges & loopholes faced in the sale of the beverage & also to give
recommendations & suggestions to improve sales & penetration.
I concluded the project with certain analysis & findings. Also, the strengths of the
product 7UP Revive is its great taste, attractive blue bottle and health-oriented
beverages. The weak point of the product is low awareness among consumers leading
to low demand. The opportunities which I identified during this project were the fair
price of the product.
This project also helped me mold my interpersonal skillset & formed an optimistic
perspective about sales profile in a FMCG company such as VBL. Few things like
time management & planning, personal grooming, punctuality, etc. have honed me to
become a better manager.

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An Overview of Soft drink Industry in India
Beverage Industry is one of the fast growing industries in India. It can be categorized
into Carbonated & Non-carbonated drinks.
Soft drinks in India will witness further growth in the forecast period. Long summers
and higher spending on packaged products will fuel the growth. However, categories
such as carbonates will negatively affect overall growth and in turn affect soft drinks’
forecast because of its sheer size both in value and volume terms. The majority of
volume and value growth is likely to come from bottled water and juice, which are
being embraced by consumers in urban and rural areas alike. Increased marketing
efforts and communications from soft drinks manufacturers are expected to continue
playing an important role in terms of pushing sales in most soft drinks categories.
According to market research firm Euromonitor, the market for fizzy drinks has seen
growth slow to single digits lately. Sales of fizzy drinks grew 8.42% by volume and
10.82% by value in 2015.
“There is a trend to move towards healthy drinks, products that are more organic and
natural. And therefore, there has been a dip in the growth rates of fizzy drinks sales.
Also, there is a strong seasonal impact on sales of these drinks,” said Dhanraj Bhagat,
partner at Grant Thornton India Llp.
Still, given the relatively higher pricing of natural and health products and a growing
and largely young population, consumption of fizzy drinks will continue to grow.

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PEPSICO INDIA
PepsiCo is a world leader in convenience foods and beverages, with 2007 revenues of
more than $39 billion and more than 185,000 employees across the world. Its world
renowned brands are available in nearly 200 countries and territories. PepsiCo gained
entry to India in 1989 by creating a joint venture with the Punjab government-owned
Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture
marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed;
PepsiCo bought out its partners and ended the joint venture in 1994. Firstly Pepsi was
banned from import in India, in 1970, for having refused to release the list of its
ingredients and in 1993, the ban was lifted, with Pepsi arriving on the market shortly
afterwards.

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PepsiCo has grown to become the country’s largest selling food and beverage Company.
One of the largest multinational investors in the country, PepsiCo has established a
business which aims to serve the long term dynamic needs of consumers in India.
PepsiCo India and its partners have invested more than U.S. $700 million since the
company was established in the country in 1989. In India, PepsiCo provides direct
employment to 4,000 people and indirect employment to 60,000 people including
suppliers and distributors.
The group has built an expansive beverage, snack food and exports business and to
support the operations are the group’s 43 bottling plants in India, of which 15 are
company owned and 28 are franchisee owned. In addition to this, PepsiCo’s Frito Lay
snack division has 3 state of the art plants. PepsiCo’s business is based on its
sustainability vision of making tomorrow better than today. Our commitment to living
by this vision every day is visible in our contribution to our country, consumers, farmers
and our people.

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PepsiCo India’s expansive portfolio
Pepsi, 7 UP, Miranda and Mountain Dew, in addition to low calorie options– Diet Pepsi
and 7Up Light; hydrating and nutritional beverages such as Aquafina drinking water,
isotonic sports drinks - Gatorade, and 100% natural fruit juices and juice based drinks
– Tropicana, Tropicana Twister and Slice.

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Competitor Analysis
1. Coca-Cola
The major competitor of Pepsi through out the world is Coca Cola. Following will
give a brief of the competition between the rivals:
Although the goals of both the companies are the same, the two companies rely on
somewhat different marketing strategies. Pepsi has always taken the lead in
developing new products. Further, Pepsi has always taken more risks, acted rapidly,
and was always developing new advertising ideas.
Pepsi has positioned itself as a youth drink which is considered to be more modern and
lively as compared to Coca Cola. Also, Pepsi has always played around innovations so
as to lead the market.
COMPARATIVE PRODUCTS
Flavor Pepsi Coke
Cola Pepsi Coca-Cola, Thums up
Clear Lime 7up,Mountain Dew Sprite
Cloudy Lime Nimbooz Masala Soda Limca
Orange Miranda Fanta
Water Aquafina Kinley, Bonaqua
Lemon Nimbooz, Mirinda Lemon Minute Maid
Hydrotonic
drink
7up Revive, Gatorade N/A

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2. Parle Agro
Parle Agro Pvt. Ltd Beverages include fruit drinks, nectars, 100% Juice, sparkling
drinks. Product lines like Frooty, Appy Classic & Appy Fizz are tough competitors of
Pepsi brands
3. Xalta Packaged drinking water & flavored sodas
4. Bisleri Packaged drinking water & flavored sodas
5. Paper boat juices

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VARUN BEVERAGES LIMITED
Varun Beverages Limited, the flagship company of the RJ Group was incorporated in
1995. It is a company based in Gurgaon that provides bottling and distribution services
for PepsiCo India. The Managing Director of the company is Mr. Ravi Kant Jaipuria, a
leading businessman in the soft drink industry in India. VBL is PepsiCo’s prime
franchisee company which manufactures & markets carbonated drinks like 7up,
Miranda, Mountain Dew, Diet Pepsi; non-carbonated soft drink Slice; Aquafina
packaged drinking water & juice based drinks such as Tropicana. It has exclusive
franchise rights for Northern & Eastern India. It also owns the franchisee for Yum
Restaurants International including more than 46 Pizza Hut and KFC restaurants in
India. In Delhi alone VBL has two bottling plants in NOIDA region & ten CFA agents
& large network of distributors spread evenly across the city. Its major competitors are
that of Pepsi namely Coca-Cola, Parle Agro, Bisleri & Xalta. VBL was awarded
"International Bottler of the Year" in 1998.
Head office at Gurgaon

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Group Companies under

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Vision & Mission
Vision
“To become the most Successful & Profitable Beverage
Company in the world having Market Leadership in the
territories we operate.”
Mission
Being a Global, Growth Oriented and Profitable Organization by:
 Offering best quality & refreshing product to every customer &
consumer
 Being a preferred employer providing consistent growth path,
respect & empowerment
 Creating value for our stakeholders by driving excellence in our
operations
 Being responsible towards environment & society
Values
 We hold strong values in business and fully respect our customers,
associates and community
 Our diversity and unity brings creativity to our relationships within
our group, and to our associates
 We continuously excel to achieve and maintain leadership position
in the chosen businesses; and delight all stakeholders by making
economic value additions in all corporate functions

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Key Milestones of VBL
1960’s - Firmly ventured in beverage bottling with its first plant in Agra
1991 - Exclusive bottling agreement with PepsiCo through existing plant Agra
1995 - Devyani Beverages Ltd (DBL) started its operations through its first plant at
Greater Noida
1996 - New plant under Varun Beverages Ltd (VBL) started its operations at Jaipur
1998 - Acquired Nepal territory renamed as Varun Beverages (Nepal) Pvt Ltd.
- Also, PepsiCo acquired 26% shares in VBL
1999 - Started operations in Alwar, Jodhpur & Kosi
2000 - Acquired Goa territory under Goa Bottling Co. Ltd (GBCL)
2004 - Devyani Beverages Ltd merged with Varun Beverages Ltd
2008 - Acquired North East territory through North East Pure Drinks Pvt Ltd (NEPD)
2009 - Acquired West Bengal territory from PepsiCo
2010 - Sri Lanka Territory from Ole Spring Bottlers
- GBCL renamed to Varun Beverages International Ltd (VBIL)
2011 - NEPD merged in VBIL
2012 - VBIL acquired PepsiCo’s 26% stake in VBL
2013 - VBIL merged with VBL and all overseas subsidiaries became subsidiaries of
VBL
- VBL acquired Delhi territory from Pearl Drinks Ltd
2015 - Acquired 6 territories (UP, Uttarakhand, Himachal, Punjab, Haryana and
Chandigarh) & 4 bottling plants from PepsiCo

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Awards & Recognitions
Varun Beverages Limited has been awarded prestigious awards such as ‘Best Bottler
in the World (1997)’ and more recently ‘Best Bottler in the Country’ (2011) for its
contribution to PepsiCo business.

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Board of Directors
 Ravi Kant Jaipuria, Promoter and Chairman
 Varun Jaipuria, Whole-time Director
 Raj Pal Gandhi, Whole-time Director
 Kapil Agarwal, Chief Executive Officer & Whole-time Director
 Kamlesh Kumar Jain, Chief Financial Officer
 Udai Dhawan, Nominee Director
 Ravindra Dhariwal, Independent Director
 Girish Ahuja, Independent Director
 Naresh Kumar Trehan, Independent Director
 Pradeep Sardana, Independent Director
 Geeta Kapoor, Independent Director
 Sanjoy Mukerji, Independent Director

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Organizational Structure of VBL
Chairman
Managing
Director
Chief
Operating
Officer
Production
Manager
Finance
Manager
Personal
Manager
Head Of
Sales
Marketing
Devel.
Manager
Sales
Managers
ASMs &
TDMs
Senior CEs &
CEs
Pre-Sale
Reps
Delivery
Agents
Merchandisers
ASM
(Marketing)
Marketing
Exec.

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Products & Services

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4Ps of PepsiCo in association with VBL
 Various Brands, their SKUs & Pricing
Competitive product pricing type of pricing policy is implemented by PepsiCo India.
S.no. SKU
M.R.P per
bottle (in
Rs.)
Rate per
Pack (in
Rs.)
Pack
Size
(per
Case)
1 200ml RGB Pepsi 12 264 24
2 250ml CAN Pepsi 25 520 24
3 300ml RGB Pepsi 15 324 24
4 600ml PET Pepsi 35 755 24
5 600ml PET Diet Pepsi 35 755 24
6 1.25ltr PET Pepsi 60 635 12
7 2ltr PET Pepsi 85 705 9
8 200ml RGB Mountain Dew 12 264 24
9 250ml CAN Mountain Dew 25 520 24
10 250ml CAN Mountain Dew Game Fuel 25 520 24
11 300ml RGB Mountain Dew 15 324 24
12 600ml PET Mountain Dew 35 755 24
13 600ml PET Mountain Dew Game Fuel 35 755 24
14 1.25ltr PET Mountain Dew 60 635 12
15 2ltr PET Mountain Dew 85 705 9
16 200ml RGB Mirinda Orange 10 216 24
17 250ml CAN Mirinda Orange 25 520 24
18 300ml RGB Mirinda Orange 15 324 24
19 600ml PET Mirinda Orange 35 755 24
20 1.25ltr PET Mirinda Orange 60 635 12
21 2ltr PET Mirinda Orange 85 705 9
22 2ltr PET Mirinda Lemon 85 705 9
23 200ml RGB 7UP Clear 10 216 24
24 250ml CAN 7UP Clear 25 520 24

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25 300ml RGB 7UP Clear 15 324 24
26 500ml PET 7UP Clear 30 660 24
27 600ml PET 7UP Clear 35 755 24
28 1.25ltr PET 7UP Clear 60 635 12
29 2ltr PET 7UP Clear 85 705 9
30 350ml PET 7UP Nimbooz 20 430 24
31 200ml RGB 7UP Nimbooz Masala Soda 12 264 24
32 500ml PET 7UP Nimbooz Masala Soda 35 755 24
33 1.25ltr PET 7UP Nimbooz Masala Soda 60 635 12
34 350ml PET 7UP Nimbooz 20 430 24
35 200ml RGB Slice 12 264 24
36 600ml PET Slice 35 755 24
37 1.2ltr PET Slice 62 659 24
38 200ml RGB 7UP Revive 14 300 24
39 330ml RGB 7UP Revive 25 540 24
40 500ml RGB 7UP Revive 35 755 24
41 300ml RGB Lehar Soda 9 192 24
43 600ml PET Lehar Soda 15 260 24
44 1ltr PET Aquafina 20 145 12

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 Promotional Services
 Chilling equipment like Visicooler, Trolleys & Ice boxes –
• Provided exclusively to Pepsi outlets to store & serve the beverages
chilled
• Available in storage capacity ranging from 220ltrs to 1100ltrs, in single-
door & double-door variants
• Pepsi introduced Visi Planogram (P7MDS; initials of brands) to
focus/identify Pepsi brands & products. Also known as brand execution.
• Improves product availability, visibility & display
• Trolleys & Ice boxes are provided where storage & display area is less
 Schemes & discounts on volume purchase –
• Mixing of various packs of brands with same pricing

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• Schemes on bulk purchase
• Cash & Card discounting
 Promotional events –
• Game shows & contests
• Free sampling during product launch
• Lucky draw
 Services to Eating & Dining outlets –
• Billboards & signage
• Stickers, banners/posters, LED menu displays, danglers, umbrellas
• Table mats, straw stands, table menu cards
• T-shirts for waiters

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 Geographical Spread of Manufacturing & Distribution
VBL is a major manufacturer, marketer & distributor (bottling operations) of soft drinks
for PepsiCo in India and accounts for 47% of its beverage business in India.
As of April 30, 2016, VBL operated 16 production facilities across India and five
production facilities in their international licensed territories with capacity of 146
million cases p.a. in India and 42 million cases p.a. in the overseas territories.
VBL has its own backward integrated facilities for manufacturing preforms, plastic
caps, crowns, corrugated boxes and lamination sheets, which results in significant
process efficiencies and cost saving.

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In India, VBL has the license to supply beverages in the territories of Uttar Pradesh,
Haryana, Rajasthan, Delhi, Kolkata, Goa, North East, Uttarakhand, Punjab,
Chandigarh, Himachal Pradesh and parts of Maharashtra and Madhya Pradesh.
It has a strong distribution network including
 55 depots
 2350 dealers/distributors
 426,000 outlets and
 A fleet of 1,443trucks
As of March 31, 2016, we have been granted franchises for various PepsiCo products
spread across 17 States and two Union Territories in India.
VBL has also been granted the franchise for various PepsiCo products for the
territories of Nepal, Sri Lanka, Morocco, Mozambique and Zambia. In addition, the
company is in the process of setting up facility in Zimbabwe in anticipation of
franchise rights being granted by PepsiCo Inc. for such territory.

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Redefined Distribution System
PepsiCo India’s earlier focus was to drive wide availability & enable easy access to
their brands for consumers. Pepsi has redefined its distribution methodology to
strengthen their competitive advantage in the emerging consumer & market scenario.
Their new approach is more holistic touching consumers in multiple ways at the point
of purchase & more importantly, creating opportunities for customer to receive brand
message & experience.
They are proactively addressing these emerging trends by approaching distribution &
channels in a much broader way. They are shifting emphasis from mere reach or
availability expansion to touching consumers with a Three-way convergence of –
 Product availability,
 Brand Communication, &
 Higher level of brand experience
Thus, they are going beyond delivering products & creating greater engagement &
interaction around the purchasing experience. Pepsi’s reinvention of distribution
system is built on an understanding of emerging trends, the retail environment & the
growth of its brands.
VBL is primarily responsible for the execution of this distribution system &
implements
 Go-to-market approach along with the PSR system for order-taking
 Every PSR is equipped with the SAMNA tool for order-taking

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Order Booking System & MIS tool
Sales Automation Management for the New Age (SAMNA)
Manufacturing organizations of PepsiCo’s stature rely heavily on their distribution
chains. In order to equip their distributors with a way to capture secondary sales data,
the company created a go-to-market solution called Sales Automation Management
for the New Age (SAMNA).

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The solution, designed by PepsiCo’s IT team, involves deploying handheld devices
(smartphones) at the distributors‟ end. The company’s SAP environment, which
handles primary sales information, is the source of inventory data for SAMNA.
Salespeople can retrieve information on stocks and promotional schemes by logging
into the SAMNA portal, and use the same for daily transactions such as order
capturing, invoicing, and reporting. SAMNA’s MIS reports give distributors visibility
of the business, and the sales reports help them in reconciliation and billing. SAMNA
(Sales Automation Management for the New Age) which is used in PepsiCo
distribution network.
It is integrated with Tally ERP 9 (MS Excel as intermediate). SAMNA has greatly
increased the efficiency of the sales team.
Information on schemes, Planogram etc. is readily available on the device. The
salesperson no longer has to depend upon manual data entry to record transactions.
After each sale, entry can be made into the hand held device itself and using.
EDGE/3G connection the data is updated onto a centralized system thereby
eliminating the chance of committing a mistake. It has become even easier to monitor
the performance of a PSR for the CE as he/she just has to connect the device to
computer to review the performance IT. Hassled to an ease in stock management for
the ADC.
The solution has the distinction of being one of the largest secondary sales solution in
the country. Apart from letting distributors gain visibility on the supply chain, thereby
increasing the productivity. SAMNA has also aided PepsiCo in understanding sales
patterns, resulting in better market analysis.

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Turnover
According to data from Varun Beverages’ filings with the registrar of companies
(RoC), in calendar year 2014, the firm posted standalone revenue of Rs.2,063 crore,
up from Rs.1,779 crore in the previous year.
It reported a profit of Rs.43.3 crore in 2014 against a loss of Rs.8.5 crore in the
previous year.
RoC data shows that PepsiCo. India reported a loss of Rs.177 crore in financial year
2014-15, down from Rs.280 crore the previous year. It reported revenue of Rs.8,130
crore in 2014-15, a 13% increase over the previous year.
Recent Funding
 The Material Creditors of VBL as on December 31, 2015 is Hongkong Tianyi
International Holding Co. Ltd. for an amount of 322.57 INR million
 Ravi Jaipuria has plans to raise $300 million by the end of 2016 through Initial
Public Offer (IPO). "IPOs will be the best way to stabilize businesses," VBL has
hired a couple of banks recently and the work on the IPO has been started.
 Ravi Jaipuria also said that he plans to raise $100 million -$125 million for
about 10% equity stake in Varun Beverages in a pre-IPO deal by the end of
December 2016.
 Standard Charted Private Equity has invested $48 million and $32 million in the
firm in 2011 and 2012, respectively.
 AION Investments II Singapore Pte Ltd, a subsidiary of New York-
headquartered investment major AION Partners is investing Rs. 600 crore in
VBL. As a part of its investments, VBL will receive Rs. 300 crore, which the
bottler will use in refinancing its existing debt and expansion of its operations,
in exchange of non-convertible debentures to AION. AION in a joint venture
between private equity firms Apollo Global Management and ICICI Venture,
invested $90 million in Varun Beverages in October 2013 through a mix of
primary capital infusion and purchase of shares from Standard Chartered Private
Equity.
 PepsiCo said that it would invest Rs.33, 000 crore in the India by 2020.

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HR Practices in VBL
 Currently, VBL has a total attrition rate of approximately 2%. The same for
each depot may vary
 As in March 2016 a new initiative was implemented for the purpose of retention
of good performers in VBL. Steps taken towards employee satisfaction include
awards to best CE & best PSR every month
 Provident Fund was introduced & implemented for all VBL employees in 2016

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TASKS & RESPONSIBILITIES
ASSIGNED

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7UP REVIVE: An Overview
7UP REVIVE was launched in Delhi in March 2016. 7UP Revive is a health-oriented
beverage which helps to refresh and replace the fluids that the body needs when out
and about in the hot sun. It is an international brand having strong presence in
Vietnam and Malaysia, This hydrotonic drink is one of the most popular drinks for
young people. When one is out and about in the hot sun, the body loses fluids and
electrolytes. True to its name, 7UP Revive is an ‘Active Hydration Drink’ with
vitamins and electrolytes that help the body stay active.
7UP Revive contains Vitamins B3, B6 and B12 which are known to play an essential
role in energy metabolism and electrolytes like Sodium and Potassium needed to
replenish some salts that body loses in sun.
The product is in the ‘Introduction stage’ in the product life cycle and since its launch
in March, it has been struggling to make a presence due to various factors.
The drink is marketed to the youth but, there is a mixed response in terms of liking the
product. The sales number have been declining & PepsiCo with VBL has been able to
do very little to breathe life into the product.

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Objective of the project
 My main objective was to increase the ‘Customer Count’ which meant placing
any/all of the three SKUs of 7UP REVIVE in various outlets in the above
mentioned regions in Delhi
 The increase in the ‘Customer Count’ will indicate the penetration as well as
daily sales
 This involved devising an action plan for various implementations & for
planning my daily route rides; after identifying potential yet weak markets from
the Monthly Route-wise Penetration Report obtained via MIS (refer April, May &
June Penetration figures in Annexures)
Depot Assigned – Laxmi Agency, Kirti Nagar, Delhi
Locations Assigned – Central Delhi & West Delhi
Duration of the Project – 8 weeks
Daily Schedule
Attendance & Sales report – The first & foremost task was to confirm my attendance
at the depot, then report the total sales of 7UP REVIVE of the previous day to our
industry mentor. This piece of data was obtained from the MIS. All the updates &
report sharing took place on a daily basis in the WhatsApp group.
Gate-meeting – It is the daily meeting between the ASM, CEs & the PSRs where
sensitive updates were conveyed like the day’s sales targets, the progress made,
discussions & resolution of issues, sharing sales & penetration figures and/or other
important updates & clarifications.

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Route Rides – This is where I visit different markets with the CEs or PSRs to assist
them to make sales. In order to confirm my location, the GPS location along with the
route name was sent to the industry mentor via WhatsApp. (Refer Annexure 2)
Weekly Progress
Week 1
 I was briefed about the company & was assigned at Shree Krishna Enterprises,
Mayur Vihar Phase –III
 Under the supervision of the Sr. CE Mr. Prateek Aggarwal, I visited various
markets in East Delhi to observe & learn the overall working of the PSR & CE,
the SAMNA system of order-taking & the order fulfillment undertaken by DA
 I also learnt about few terminologies commonly used in the field like Visi-
purity, Visi-charging & merchandising
 General observations were made about the working on the basis of opinions &
feedbacks received from the retailers & the end consumers
Gate-meeting - The ASM addressing the PSRs about their sales target

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Week 2
 I was assigned the main project namely ‘Penetration of 7UP REVIVE in Delhi’
by our industry mentor
 I was made in-charge of one of VBL’s cream depots, Laxmi Agency which was
responsible for distribution activities in the central & western regions of Delhi
 In the Weekly Penetration report till 8th
May, the Customer Count was just 54
(circled in red) out of 555 total target outlets.
 This report also indicates the total & SKU-wise sale of 7UP REVIVE on 8th
May (highlighted in red)
 By the end of second week, the Customer Count doubled to 107 out of 555
target outlets

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Week 3
 By the end of second week, the Customer Count increased to 146 out of 555
target outlets
Week 4
 The fourth week penetration figures were 221 outlets. This indicated that I had
added 75 new outlets in that week.
 This week marked the end of the first half of my SIP. SAMNA also generated
the ‘Total 7UP REVIVE Sales figures’ & the ‘Route-wise Penetration in MAY’
(Refer Annexures 3 & 4)

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Week 5
 After analysis of the Penetration report I planned the routes that had to be given
more emphasis
 I, then continued my daily route rides with more sale dialogues & techniques
 Gave the suggestion to mix various similarly priced SKUs in one crate as per
demand
Week 6
 The sixth week was an very important week both for VBL & for me as there
was a market visit of a PepsiCo Official scheduled on 8th
June to evaluate the
presence of 7UP REVIVE in Delhi

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 The Official visited Lodhi colony. He was pleased to see the visibilty of the
beverage in almost all outlets in that market. Even my supervisors & mentor
gave me sigh of appreciation
Week 7
 In the seventh week there was a realization that majority of the ‘A-class’ & ‘B-
class’ outlets were covered which stagnated the sale. Also, 7UP REVIVE was a
slow-moving product so there was no regular demand for the same
 I gave the suggestion of giving out 7UP REVIVE through scheme with another
frequently selling primary SKU like the 1ltr Aquafina.
 The ASM passed the scheme of “1ltr Aquafina k ek case k saat 2 bottle Revive
free”
 By the end of the week the Customer Count shot up to 376 outlets from 128
outlets in the sixth week.

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Jubin James
Week 8
 I had prepared a Retailer survey along with other interns which got approved by
our industry mentor
 Next step was to plan our route rides accordingly to carry out the survey in our
respective territories
 A plan was laid to visit at least three market routes for next 6-7 days to conduct
the survey in at least 90 outlets
 Also continued the scheme implemented in the previous week
 My depot had over-exceeded the target outlets by 25 new outlets

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MAJOR CONTRIBUTIONS

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Jubin James
320
330
340
350
360
370
380
390
353.1
344.7
383
Sales (No. of cases sold)
0%
5%
10%
15%
20%
25%
30%
35%
40%
Penetration (in %)
0
200
400
600
800
261 230
609
Customer Count (Outlets reached)

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Jubin James
MARKET RESEARCH

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Jubin James
Research Objective
 To find out the level of awareness among the retailers about 7UP REVIVE
 To find out whether the retailers & end consumers agree with the current pricing
of the product
 To find out the problems faced by retailers in selling 7UP REVIVE in their outlets
 To get feedback & suggestions for improvement to improve its sales
Research Design
Sample size – 85 outlets
Sampling Plan – Random sampling technique from the list of existing Pepsi retailers
Type of study – Pilot study
Collection of data –
 Primary data – Obtained the list of A-class & B-class outlets from MIS
 Secondary data – Survey undertaken by route rides
Method of data collection –
 Personal Interaction with the retailers
 Structured Schedule (Refer Annexure 1)

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Jubin James
Analysis & Findings
1. Are you aware of 7UP REVIVE?
 All respondents gave an optimistic YES when asked about 7UP REVIVE.
Therefore, the third question was not applicable on any respondent
0 20 40 60 80
Seen the Ad on
TV/Youtube/Newspaper
Seen posters or banners
somewhere
Someone from PepsiCo had
informed me
Seen someone drinking it
Customer asked me
Seen it displayed in other shops
All of the above
2
39
70
14
14
13
2
2. If you are aware of 7UP REVIVE then tell us how?

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Jubin James
 70 respondents said that the Pepsi salesman/PSR had informed them. This
meant that the PSRs fulfilled their duty of introducing the new beverage in their
respective routes
 Only 14 said that their customers had ever asked for it which is an alarming
situation
 Also, very few had actually seen any Ad or some posters anywhere which
clearly indicated lack of sales promotion taken up by Pepsi
 A bit more than half of the population (i.e. 52.3%) got banners, hanging
danglers & sampling
 But, on the contrary there is about 17.4% of population that has still not got any
kind of physical promotional service which has hampered sales in their outlets

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Jubin James
 When asked about how it tasted, only 38.3% of the population had an optimistic
response towards 7UP REVIVE
 30.2% of the population says that the product is just fine
 About 20% did not like it at all
 But, 11.6% of the population still haven’t tasted the beverage which indicates
improper sampling conducted during launch

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Jubin James
 Price being the factor, 45.3% of the population felt that product’s pricing was
fair
 At the same time, 44.1% of the population felt that the price is high. This
indicates that Pepsi has failed to identify the suitable pricing in the appropriate
market
 Only 8.1% of the population felt that the price is low
 Out of 85 respondents, only 2 outlets had excellent sale
 Only 15 outlets had good sale
 Only 14 had average sale
 But, there were 32 outlets with low sale & 21 outlets with no sales at all which
may lead to red flag for the product
 It was clear that Pepsi did not focus on 7UP REVIVE as compared to its other
brands

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Jubin James
 Based on the sales & demand, approximately 30% of the outlets still have the
very first lot of the beverage & are reluctant to give repeat orders
 There is merely 6% of the outlets where sale has been good
 Majority of the population give orders on monthly or weekly basis. This means
that 7UP REVIVE is a slow-moving beverage
58
38
10
45
4
22
2
0 10 20 30 40 50 60 70
Low/No Customer Demand
Low Margin
Other Competitive/similar products available
like Urza, Gatorade, Redbull etc.
No promotion taken up by Pepsi
No fridge or other cooling methods
Just happy with existing/popular Pepsi
products
All of the above
9. If you do not keep/hesitate to keep 7UP REVIVE, then tell us
why?

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Jubin James
 When asked about problems faced by the retailers, majority of the population
(i.e. 58) said that there is low/no demand for 7UP REVIVE in their outlets
 And, 45 respondents say that this situation persists because Pepsi is not willing
to promote this product
 Other problems such as low margin & popularity of existing Pepsi brands also
hamper sales
 Based on the feedbacks, the problems & area of improvement was categorized
into 6 broad suggestions/complaints
 32% of the respondents felt that awareness among end-consumers can be raised
by advertising it in high frequency with maximum reach in the city
 Advertising with a blend of better schemes for the retailers may curb the
problem of low demand for 7UP REVIVE in the city

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Jubin James
 Upon in depth investigation it is revealed that the budget for 7UP REVIVE was
kept comparatively lower than the other Pepsi brands. This directly restricted its
marketing activities which affected its sales
 Lack of advertising (mainly TV ads) was the main concern of the continuous
decline in sales
 Even after being a very good product, the overall sales of 7UP REVIVE is
declining due to lack of popularity & awareness
 My study & analysis also reveals that the number of repeat purchases were
either stagnant or otherwise declining at steady rate
 Under the pressure to complete their sales target, the PSRs pitch for the most
popular & fast-moving products. Therefore in the process, 7UP REVIVE is
ignored
 The Merchandisers were not placing warm displays at the outlet counters further
aggravating the problem
 The existing stock of 7UP REVIVE is not selling well therefore, many cases of
product expiry are emerging
 Due to all the above mentioned factors, the retailers refuse to keep more of 7UP
REVIVE to be on the safer side as Pepsi does not facilitate credit to them

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MAJOR LEARNINGS &
RECOMMENDATIONS

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Jubin James
Learnings
 The effectiveness of channel sales under the distribution model in the FMCG
industry
 The functions of different personnel in hierarchy of sales dept.
 The art of selling involving interaction with clients & customers, objection
handling & resolution to their problems
 Mapping & presentation of sales figures & sales reporting
 Effectively implementing various POS tools to improve visibility & awareness
of the products
 Importance of advertising of the product for the effectiveness of its sales
 Various target completion tactics such as scheme creation & ready stock method
Recommendations
 Advertising is the key. My analysis with the inclusion of retailer’s feedbacks is
that by increasing the broadcast of TV ad in certain channels in the primetime
will definitely bring about more awareness among the public
 An event or a game show can be organized at various places in Delhi to give the
beverage a better exposure
 ASMs & the CEs must emphasize on its sales through PSRs by daily route-rides
& resolving day-to-day problems in their territories
 Loading of Ready stock method (obligation of selling pre-fixed number of
cases) can be implemented on weekly basis
 Creation & implementation of new schemes can boost the sales
 A daily sales journal to be kept in the depot which can be used for entry of daily
sales & to verify the same in SAMNA
 Revising the price of 200ml RGB from Rs.14 to either Rs.12 or Rs.15 so that
they can be mixed with other brands (RGB crates) with similar pricing

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BIBLIOGRAPHY
 Industry overview retrieved from www.euromonitor.com/soft-drinks-in-
india/report
 Selective sections obtained & compiled from Intro to VBL.ppt
 Certain sections of Company profile obtained from varupepsi.com
 Information of funding obtained from www.bloomberg.com,
economictimes.indiatimes.com & www.business-standard.com
 Weekly Customer Count Data retrieved from SAMNA system at Sapera Basti,
Mayur Vihar Phase – III office
 Sales reports, Penetration status & Customer Count Data report obtained from
SAMNA system at Luxmi Agency

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Annexure 2 – Routes Ride Schedule
The following table shows all the markets/routes I covered in the span of 8 weeks:-
Date
Route
no.
Route Name
Total
Crates
sold
Complaints & Feedback
2nd May - 14th May
SKE, Sapera Basti. Assigned Luxmi
Agency from Week 2
Market Observation under PSR
16th May Distributor Shankar Mkt For Market observation & learning under CE &
PSR17th May Distributor Shankar Mkt & Gol Mkt
18th May 26 Nehru Mkt 5 No Demand
19th May 4 Chanakyapuri Momo Mkt 6.5 Not interested
20th May 6 Bengali Mkt 12 Sampling not done properly
23rd May 12
Dhaula Kuan, Subroto
Park 5 Expired, need return/replacement
25th May 22 Rajouri Garden 2 Unresponsive Mkt
28th May 5 INA Mkt 0 Need replacement for expired bottles
1st June 2
Lajpat Nagar, Central
Mkt 6 Visi related issues, No demand
6th June 35 South Moti Bagh 1 Slow moving product
6th June 10 Satya Niketan 5 Give TV ad
7th June 14 Khan Mkt 1 Unresponsive Mkt
8th June 9 Lodhi Colony 2.5 Slow moving product
9th June 9 Lodhi Colony Mkt visit by Revive officials from Pepsi
10th June 1 Defence Colony 2.5 Not interested
11th June 15 Pragati Maidan 2 Cancelled
11th June 3 Sarojini Nagar 4 No customer awareness
13th June
- 23rd
June
Selective Market Routes Conducted Retailer Survey

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Annexure 3 - Route-wise Sales figures of 7UP REVIVE
Route
Code
Route Name APRIL MAY JUNE
PSR2 NETAJI NAGAR PAKORA MKT. 6 1 3
R001 DEFENCE COLONY 12.5 14 22
R002 LAJPAT NAGAR - CENTRAL MKT. 10.3 10 18
R003 SAROJINI NGR 35 18 37
R004 CHANKYAPURI, MOMO MKT 23.5 24 17
R005 INA 11.5 6 16
R006 BENGALI MKT 12 23 8
R007 LAJPAT NAGAR 1 AND 2 11.3 6 4
R008 MALCHA MARG 6 11 7
R009 LODHI COLONY 12 4 14
R010 SATYA NIKETAN, MOTI BAGH 18 9 19
R011 VASANT VIHAR 68.5 65.5 54
R012 DHOULA KUAN ,SUBROTO PARK 18 35 31
R014 KHAN MARKET 6 4 10
R015 PRAGATI MAIDAN 3.5 0 7
R019 CHANKYAPURI 20.5 6.2 11
R020 SOUTH AVE.NORTH AVENUE 35 30 37
R021 MALLS,TAGORE GARDEN 16.5 28 25
R022 RAJORI GARDEN 10 18 5
R025 DP01 KUSUMPUR PAHARI 0 0 11
R026
DP02 NEHRU MARKET
(TAIGORE/RAJOURI GARDEN)
4 4
4
R028 LAJPAT NAGAR - 3 0 6 4
R035 SOUTH MOTI BAGH 13 22 16
GRAND TOTAL 353.1 344.7 383

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Annexure 4 - Route-wise Penetration of 7UP REVIVE in APRIL
Route
Code
PSR Name Route Name
7 UP Revive
Customer
Count
Penetration
R009 DEEPAK KASHYAP LODHI COLONY 11 16%
R010 SATEESH YADAV SATYA NIKETAN, 14 18%
R011 GULAB CHAND VASANT VIHAR 25 31%
R012 ARUN DAHIYA
DHOULA KUAN ,SUBROTO
PARK
13 16%
R025 DINESH YADAV DP01 KUSUMPUR PAHARI 0 0%
PSR3 MONU YADAV KOTLA 1 0 0%
PSR4 ARJUN RANA KOTLA 2 0 0%
R035 ASHOK KUMAR SOUTH MOTI BAGH 8 15%
Anil Choudhary 95 13%
R003 ARUN KUMAR SAROJINI NGR 31 40%
R005 SHEKHAR INA Market 9 13%
R006 DEEPAK TRIPATHI BENGALI MKT 14 29%
R014 SHUSHIL MISHRA KHAN MARKET 7 13%
R015 DEEPAK UPADHYAY PRAGATI MAIDAN 4 9%
R020 RAMESH MITHARWAL SOUTH AVE.NORTH AVENUE 10 14%
Brij Mohan 75 20%
R001 ROHIT KUMAR DEFENCE COLONY 8 13%
R002 PRADEEP KUMAR
LAJPAT NAGAR - CENTRAL
MKT.
8 15%
R004 AAMIR KHAN CHANKYAPURI, MOMO MKT 17 25%
PSR2 ARIF KHAN PAKORA MARKET 11 28%
R007 VARUN DAHIYA LAJPAT NAGAR 1 AND 2 4 8%
R008 TARIK ANWAR MALCHA MARG 9 16%
R019 RAJ KUMAR CHANKYAPURI 14 25%
R028 VINEET RAI LAJPAT NAGAR -3 0 0%
Shudhanshu 71 16%
R021 MUKESH RATHOR MALLS,TAGORE GARDEN 7 10%
R022 VILAYAT HUSSAIN RAJORI GARDEN 5 7%
R026 RAUSHAN KUMAR
DP02 NEHRU MARKET
(TAIGORE GARDEN)
8 13%
Abhinav 20 8%
Total 261 14%

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Jubin James
Annexure 5 - Route-wise Penetration of 7UP REVIVE in MAY
Route
Code
PSR Name Route Name
7 UP Revive
Customer
Count
Penetration
R012 ARUN DAHIYA
DHOULA KUAN ,SUBROTO
PARK
24 30%
Anil Choudhary 80 11%
Brij Mohan 56 15%
R002 PRADEEP KUMAR
LAJPAT NAGAR - CENTRAL
MKT.
9 17%
Shudhanshu 65 15%
R026 RAUSHAN KUMAR
DP02 NEHRU MARKET
(TAIGORE GARDEN)
5 8%
Utkarsh 29 11%
Total 230 12%

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Jubin James
Annexure 6 - Route-wise Penetration of 7UP REVIVE in JUNE
Route
Code
PSR Name Route Name
7UP REVIVE
Customer
Count
Penetration
R002 PRADEEP KUMAR LAJPAT NAGAR - CENTRAL MKT. 13 24%
R012 ARUN DAHIYA DHOULA KUAN ,SUBROTO PARK 34 43%
R026 RAUSHAN KUMAR
DP02 NEHRU MARKET (TAIGORE
GARDEN) 32 53%
TOTAL 609 35%

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