Marketing Management and the Soft Drink Industry

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Marketing management
INTRODUCTION
Marketing is the process of satisfying the needs and wants of the consumers.
Management of marketing activities is Marketing Management. Management Guru Philip
Kotler defines marketing as “Marketing Management is the analysis, planning,
implementation and control of programs designed to bring about the desired exchanges
with target audiences for the purpose of personal and mutual gain. It relies heavily on
adoption and coordination of the product, price, promotion and place for achieving
response”: In other words, a business discipline, which is focused on the practical
application of marketing techniques and the management of a firm’s marketing resources
and activities, is Marketing Management. Marketing Management focuses upon the
psychological and physical factors of Marketing. The Marketing managers are responsible
for influencing the level, timing, and composition of customer demand accepted definition
of the term. While the psychological factors focus upon discovering the needs and wants of
the consumer and the changing patterns of buying behavior, habit etc. the physical factors
focus upon fulfilling those needs and demands buy better product design, channel of
distribution and other functions. In summary, Marketing in action is marketing
Management. Marketing Management has the responsibility of to perform many functions
in the field of marketing such as planning, organizing, directing, motivating, coordinating
and controlling. All these function aim to archive the marketing goals. .
An actual or nominal place where forces of demand and supply operate, and where buyers
and sellers interact (directly or through intermediaries) to trade goods, services, or contracts
or instruments, for money or barter.
Markets include mechanisms or means for
(1) Determining price of the traded item,
(2) Communicating the price information,
(3) Facilitating deals and transactions,
(4) Effecting distribution.
The market for a particular item is made up of existing and potential customers who need it
and have the ability and willingness to pay for it.

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MARKETING
The management process through which goods and services move from concept to the
customer. It includes the coordination of four elements called the 4 P's of marketing:
(1) Identification, selection and development of a product,
(2) Determination of its price,
(3) Selection of a distribution channel to reach the customer's place, and
(4) Development and implementation of a promotional strategy.
For example, new Apple products are developed to include improved applications and
systems, are set at different prices depending on how much capability the customer desires,
and are sold in places where other Apple products are sold.
In order to promote the device, the company featured its debut at tech events and is highly
advertised on the web and on television.

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Modern age is full of competition. Today only way of success is your continuous efforts towards
the growing market needs and in satisfying them. It is the marketer job to know what the markets peaks
i.e . the ever changing needs of the customer through market research & adopt them fruitfully . It is
must for all the companies to make policies according to the customers and the govt . Today to succeed
for any organization has to target its customer needs, to create a culture in the organization i.e. market
conscious & responsive to customer needs. Soft drinks industry has become big business in India in
recent years. The soft drink business underwent major change with the entry of PEPSI and re- entry of
COCA - COLA in India in the late 80s when Parley with brands like Thumsup, Limca& Gold spot was a
clear leader. Coca - Cola took up the product line of parley in 1993 - 94; today both brands are the
Indians favorite soft drinks
STUDY IS CONDUCTED CONSIDERING THE FOLLOWING ACCEPTS:
Firstly, visage is a representative of soft drink market, which is highly promoting with a lot of
potential, which is apt to be tapped.
Secondly, the behavior of the retailer is very much influenced by the additional benefits he is
getting for selling the products having. Thirdly, to understand the market condition of the sof t drinks in
the present scenario and the competition level in the market. Considered the key role of the retailer in
present day market as an attempt was made to study the impact of company’s schemes of offering coolers
to the retailers.

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NEED FOR THE STUDY
The Indian soft drink industry has been growing at a healthy average 12% per annum. The
industry sells millions of crates every year giving sales revenue of cores the per capita consumption of
soft drink is certain to expand. Hence, the manufacturers are making innovations in production & the
distribution process as well as in advertising & creating new kind of attractive packaging to accelerate
their growth. Soft drink market is very vast like an ocean as the demand is enormous, day-to-day changes
in tasters, fashions, trends, etc., lead to tap the unexplored markets. However it is a pity that to have our
own indigenous soft drink brand name of Indian origin through the length and breadth of the country.
Consumers adjust purchasing behavior based on their individual needs and interpersonal factors.
In order to understand these influences, researchers try to ascertain what happens inside consumer’s
minds and to identify physical and social exterior influences on purchase decisions. On some levels,
consumer choice can appear to be quite random. However, each decision that made has some meaning
behind it, even if that choice does not always appear to be rational. Purchase decisions depend on
personal emotions, social situations, goals, and values.
In modern days, market plays a vital role in rapidly changing industrial scenario. The marketing
decline is undergoing reappraisal in the light of vast goals, technological, economic and social changes
being faced by the today companies. The order to known the changes in the field of marketing it are
necessary to conduct market survey.

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OBJECTIVES OF THE STUDY
1. To know the various promotional, selling and distribution strategies adopted by PEARL
BOTTLING PVT LTD
2. To analyze the reasons of selling Pepsi at retailers level.
3. To study the dealers satisfaction.
4. To find out the ways to enhance the sale of Pepsi.

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SCOPE OF THE STUDY
 The Sample Size is limited.
 The scope is very limited, because attitude & expectations of the people change according to the
time & situation.
 The study is conducted only for 45 days.
 The study is restricted to the certain area, so it could not give whole picture about Andhra Pradesh
or India.

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METHODOLOGY
The requisite data been gathered through two important sources:
1. Primary Data
2. Secondary Data
Primary Data:
Information, which has been gathering for the first time, called as primary data.
PRIMARY DATA is data that has not been previously published, i.e. the data is derived
from a new or original research study and collected at the source, e.g., in marketing, it is
information that is obtained directly from first-hand sources by means of surveys,
observation or experimentation.
Secondary Data:
Secondary data is the data collected by others, for the purpose other than the
solution at hand. As for the study of secondary data was collected from company reports,
reference books, magazines, newspapers, trade and Govt. publications and various books
and records from the marketing departments. As the study aims at finding out the
customer satisfaction, it needed to conduct a survey. The required collected with help of a
questionnaire schedule.

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LIMITATIONS OF THE STUDY
 Data collection had some hurdles due to large size of organization.
 The scope of the study is limited to some areas.
 First, there was time constraint since this study had to complete in a limited period of 45 days
 Some retailers were extremely unhappy with the company support and after sales service
 Some of them could not get total flavors due to which they nagged
 A number of retailers (pan-shop) being illiterate, it took us lot of time in collecting information.
 The mere information, which we get from the retailers, is not sufficient to arrive at a
conclusion.

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Industry profile
Soft Drink:
A soft drink is a drink that does not contain alcohol, as opposed to hard drinks, that do. In general,
the term has used only for cold beverages. Hot chocolate, tea, and coffee have not considered as soft
drinks. The term originally referred exclusively to carbonated drinks (soda), and still commonly used in
this manner.
Marketing:
Soft drinks have commonly sold in stores in bottles and cans. Sales earn a significant amount of
money for the producers and distributors. Most famous name-brand soft drinks have produced and bottled
by local or regional independent bottling companies. These companies license the name, and they usually
sold the main ingredients, with syrup made by the main manufacturing plants of the trademark holders. In
the past, most cola flavor and other soft drink ha sweetened with ordinary sugar (sucrose), but to save on
production costs, most companies in the USA have turned to the more economical HFCS (High-Fructose
Corn Syrup) as a sweetener, because of the high price of sugar in the USA due to sugar quotas. In some
countries outside the United States, sugar is still used. Competition in the industry among soft drink
producers is widely referred to as the “Cola Wars”.
Diet Soft Drinks:
In recent years, there has been a growing demand for alternatives to sugar-heavy soft drinks.
“Regular” soft drinks largely contain sugar or corn syrup, and been blamed in recent years for contributing
to obesity. Sugars, like other carbohydrates stimulate the production of the hormone insulin, which causes
the body to store far rather than burn it. “Diet” soft drinks are sweetened with chemicals, such as
aspartame and saccharin, which are perceived as sweet by most people, yet do not stimulate insulin
production or have any food energy or nutritional value
In some other areas, these drinks called “Soda pops”, while in and around Boston, Massachusetts,
they often called “tonic”, particularly among older generations. In North Carolina, the terms “drink” and
“soft drink” commonly used along with “soda” and “coke” to refer to non-alcoholic cold drinks. Some
older generations of Southerners refer to such drinks as “dope”. See the Great Pop Vs. Soda Controversy
for maps and geographical trends.
At many restaurants in the U.S., One finds that the products of only a single major beverage
producer such as The Coca-Cola Company or PepsiCo are available. While a patron who requests a
“Coke” may be truly indifferent as to which cola brand he receives, the careful order taker will confirm
intent with a question like “Is Pepsi OK?” Similarly, “7 Up” or “Sprite” may indicate whichever clear,

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carbonated, citrus-flavored drink happens to be at hand. The generic use of these brands does not affect
the local usage of the works “pop” or “soda”, tomean any carbonated beverage.
Mixed Soft Drinks:
A graveyard/ suicide/ pop bomb/ swamp water/ garbage soda is made by mixing many soft drinks
together, usually from a soda fountain.
A float created by dropping a scoop of ice cream into a soft drink. In the Midwestern United
States, a soft drink with ice cream added most often called a “soda” thus leading to quizzical looks
from wait staff when people ask for a “soda” instead of pop. The most common of these is the root
beer float. In Australia and New Zealand, it has known as a Spider.
In Brazil, a scoop of ice cream into a soft drink may have different names:
Vacapreta (black cow) – ice cream in cola.
Vacaamarela (yellow cow) – ice cream in guarana flavored soft drink.
Panteracor de Rosa (the Pink Panther) – Strawberry ice cream in lemon
lime soft drink
In the U.S., some floats have specific names as a Brown Cow or Black Cow, vanilla ice cream in
root beer, or Boston cooler, vanilla ice cream in Vernor’s ginger ale.
Controversy:
Studies showing a correlation between soft drinks and obesity
A study from Harvard shows that soft drinks may be responsible for the doubling of obesity in
children over the last 15 years. From 1991 ad 1995, adolescent boys, in the US, on the average, increased
their intake of soft drinks from 345 ml to 570 ml. Most soft drinks have sweetened with sugar or corn
syrup, and not artificial sweeteners.
Dr. David Ludwig of the Boston Children’s Hospital showed that schoolchildren drinking at least
eight U.S. fluid ounces (240 ml) or more of regularly sweetened drinks daily. Moreover, they are
consuming 835 calories (3,500 kilojoules) more than those avoiding soft drinks, i.e., children who drink
soft drinks loaded with sugar tend to eat much more food than those who avoid soft drinks. Either those
taking sugared drinks lack the same restraint on foods, or sugared drinks cause a rise in insulin that makes
adolescents hungrier, causing them to eat more. Soft drinks (including diet soft drinks) also typically
consumed with other high-calorie foods such as fast food. Children who drink soft drinks regularly are
therefore fatter on average, in addition to being more likely to develop diabetes later in life (see below).

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This finding is controversial, because children in much of the Third World also consume large
number of soft drinks with even more sugar, and do not share the same obesity rates as American children,
suggesting that other factors are involved aside from sugar consumption in soft drinks. Suggested factors
include physical activity, and the fact that American soft drinks sweetened with high fructose corn syrup
instead of cane sugar. Monosodium glutamate (MSG), which used to enhance the sweetness of some soft
drink beverages, could also play a role by stimulating appetite.
Availability:
Some argue that soft drinks are too widely available, from every restaurant, Movie Theater,
vending machine, and similar locations. The wide availability has said to cause young people to somewhat
mistake soft drinks for a major food group. Other believe that the high price of soft drinks should offer a
significant disincentive to impulse buy such beverages and prevents sale to children without parental
approval. They also believe that a small amount of will power on the part of the individual is all that is
required to reduce consumption and that one should take personal responsibility for their own purchasing
decisions.
Soft Drink Formula:
Disclaimer:
Making soft drinks is not for the faint of heart, nor the dirty of finger. It is a solemn enterprise not
to enter into lightly, as with marriage or buying used farm machinery.
With any food-prep, failure to observe basic hygienic principles, follow directions, and exercise
common sense can have grave consequences. Open Cola assumes no liability for any problems that arise
out of the use of this document, proceed at your own risk. No one is putting a gun to your head, so do not
bother if you cannot boil water. Improper use of cola might result in blunt trauma, puncture wounds
physical illness, mental illness, caffeine dependency, dental necrosis, acid reflux, death, devastation, and
random tax audits. Alternatively, it might not.
A list of warnings been provided below. We did not include them or our health- we included them
for yours. Read them. Know them. Follow them. Tattoo them to your backside.
Just in case you have any doubt, following the directions below may be hazardous to your health
and property. You assume any rick arising from the manufacture and consumption of cola.
An important note: this is not the receipt for “Open Cola”- that is, the canned beverage from Open
Cola that you may have received at a trade show, or other venue or outlet. Making canned cola requires
millions of dollars in abstruse gear and manufacturing gizmos. It is easier to make nerve gas than
manufacture cola. You can make a kitchen-sink recipe all on your own. It is our kitchen-sink recipe. We

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figured it out somewhere between coding the COLA SDK and debugging the Linux build of the clever.
Anyway, we have tried to be nice about the disclaimer. If it is not good enough for your health,
here’s what our lawyers have said about the whole shooting’ match.
Soft drinks are mostly water. Therefore, the quality of the water going into your favorite soft drink
is very important. A series of filtration systems produces the high quality water that is fresh, clean, and
clear.
SOFT DRINKS NORMS & CONTENTS
Product Information – Ingredients
We only use the finest ingredients to make Pepsi-Cola products. To guarantee our consumers
consistent quality, each ingredient must pass our high standards, rigorous quality control tests, and strict
bottling procedures.
All ingredients have listed on the label in order of decreasing amount. Pepsi-Cola products contain
natural flavors, including extracts of the kola nut, vanilla beans and flavor oils derived from natural
sources such as citrus and other fruits. Caramel (made from corn sugar) adds color and flavor to our colas.
Other ingredients add a refreshing taste: phosphoric acid in colas; citric acid and sodium citrate in
Mountain Dew, Slice, and Diet Pepsi.
We also put a freshness date on every can and bottle. Soft drinks may lose some flavor over time
so our freshness date tells consumers when the product is freshest and best tasting.
Every can and bottle of Pepsi-Cola products has a Nutrition Facts panel, which shows the number
o calories and other nutrients per serving. There is essentially no fat in any Pepsi-Cola products. The main
ingredients found in Pepsi-Cola products include carbonated water, carbohydrates, sugar, sodium,
potassium, and caffeine. For a complete breakdown by ingredients by product, see our product
information for Pepsi, Diet Pepsi, Pepsi ONE, Mountain Dew, Slice, Mug Root Beer, or Aquafina.
diet beverages and many other food products. Aspartame is made of the same building blocks as
protein, so has considered a “nutritive sweetener”, but the very small amounts used in diet drinks
contribute no calories.

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Soft Drinks in Indian Market
Introduction
Soft drink market size for FY00 was around 270 m.n. cases (6480 mn bottles). The market
witnessed 5-6% growth in the early ‘90s. Presently the market growth has growth rate of 7-8% per annum
compared to 22% growth rate in the previous year. The market size for FY01 expected to be 7000 mn
bottles.
Soft Drink Production Area
The market presentence is regional based. While cola drinks have main markets in metro cities and
northern states of UP, Punjab, Haryana, etc., Orange flavored drinks are popular in southern states. Sodas
too have sold largely in southern states besides sales through bars. Western markets have preference
towards mango-flavored drinks. Diet coke presently constitutes just 0.7% of the total carbonated beverage
market.
Growth promotional activities:
The government has adopted liberalized policies for the soft drink trade to give the industry a boast
and promote the Indian brands internationality. Although the import and manufacture of international
brands like Pepsi and Coke have enhanced in India, the local brands are being stabilized by advertisements
good quality and low cost.
Types:
Soft drinks are available in glass bottles, aluminum cans and PET bottles for home consumption.
Fountains also dispense them in disposable containers Non-alcoholic soft drink beverage market has
divided into fruit drinks and soft drinks. Soft drinks have further divided into carbonated and non-
carbonated drinks. Cola, Lemon and Oranges are carbonated drinks while mango drinks come under non-
carbonated category.
The market can also segment based on types of products into Cola products and non-cola products.
Cola products account for nearly 61-62% 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
constituents 36% can divided into 4 categories based on the types of flavors available, namely: Orange,
Cloudy Lime, Clear Lime, and Mango.

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Company PROFILE
Pepsi-Cola North America, Headquartered in Purchase, N.Y., is the refreshment beverage unit of
PepsiCo Beverage and Foods North America, a division of PepsiCo, Inc. PepsiCo Beverage and Foods
North America also comprises PepsiCo’s Tropicana, Gatorade and Quaker Foods business in the United
States and Canada.
Pepsi-Cola North America has carbonated soft drinks, including Pepsi, Diet Pepsi, Pepsi Twist,
Mountain Dew, Mountain Dew Code Red, Sierra Mist, and Mug Root Beer account for nearly one-third of
total soft drink sales in the United States.
Pepsi-Cola North America’s non-carbonated beverage portfolio includes; Aquafina, which is the
number one brand of bottled water in the United States, Dole single-serve juices, and So Be, which offers
a wide range of drinks with herbal ingredients. The company also makes and markets North America’s
bestselling, ready-to-drink iced teas and coffees via joint ventures with Lipton and Starbucks, respectively.
PepsiCo, Inc. is one of the world’s largest food and beverage companies.
The company’s principal businesses include:
Frito-Lay snacks
Pepsi-Cola beverages
Gatorade sports drinks
Tropicana juices
Quaker foods
PepsiCo, Inc. founded in 1965 through the merger of Pepsi Cola and Frito-Lay. Tropicana has
acquired in 1998. In 2001, PepsiCo merged with the Quaker Oats Company, creating the world’s fifth-
largest food and beverage company, with 15 brands – each generating more than $ 1 billion in annual
retail sales. PepsiCo’s success is the result of superior products, high standards of performance, distinctive
competitive strategies and the high level of integrity of our people.

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PLANT CAPACITY
The company installed latest up to date automatic plant confirming to plant layout. The capacity
of the plant is 24000 bottles per hour i.e., at the speed of 400 bottles per minute. The months from March
to June, the plant is used to its full capacity by running three shifts every day. Each shift consists of eight
hrs. of so, during the summer season, the plant runs round the clock. This is because the demand reaches
its peak in these summer months hence the company has to produce enough bottles of soft drinks at a
speed to keep in pace with the disappearance of soft drinks from the shelves of the retailers.
PRODUCTION SCHEDULE
The production schedule has fixed by taking into consideration the present or current market
demand. It also caters to the availability of empty bottles and the inventory position of filled up bottles of
varying flavors. The production schedule for each brand fixed daily i.e., filling up of the bottles of each
brand and flavor. This has an advantage wherein the banded products can manufactured one at a time. The
glass bottles used for filling the soft drink are of the volumes capable of containing 300 ml of soft drink.
There are also bottle of 200ml, 500ml 1 liter, 1.5 liter and 2 liter capacities to fill by soft drinks.
QUALITY CONTROL
PBPL takes great care to maintain the quality by controlling the products in their factory. The
bottles have usually examined for impurities continuously as the bottles move out. Samples have checked
after every 10 minutes of the production time by the chemist for its quality and hygienic condition. The
chemical analysis has made for flavors and the gas content checked. If any defects have noticed, the
production is suspended and the corrective and the corrective measures have taken to set right the bottling,
process irregularities. Samples have taken from each week for quality checkup. Moreover, the agency of
the company also lifts samples from the market at random for quality check up at anytime to make sure
that the quality has maintained to the exact standard of the parent company.
At the end of the production schedule, daily all the equipment plant floor and we patches cleared
with bleaching powder or some other solution. The standard of hygiene maintained inside the production
steps is commendable.
SYRUP MAKING
In this process the syrup of a particular type is prepared by heating sugar with activated carbon
powder and filter aid (by flousuper cell’) in the treatment tank for a specified time and up to a particular
temperature. During the treatment, most of the color, odor, and some organic impurities have removed
from the sugar syrup. This treated syrup then passes through the filter press, fitted with; filter papers and
heat exchanges, and then the clear syrup has collected in the syrup-making tank. The essence of particular

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products will be added for which a required amount of sugar is taken treatment Sugar syrup and essence
are then mixed in the tank with the help of a mechanical stirrer and eventually the favor syrup is ready to
be used in the end use of the product.
WATER TREATMENT
This is the second stage. In the process of soft, drink manufacture. Water is the basic ingredient in
the soft drink, which comprised up to 90% of the quantity. Hence, the quality of water is of great
significance to the soft drinks manufacturer. Here, when water has brought to the treatment tank, it has
treated with a few chemicals such as hydrated lime, bleaching power and ferrous sulphate, which have
mixed thoroughly with the help of a mechanical stirrer.
The reasons for water treatment are as follows:
It removes the hardness of water and converts it into soft water.
It frees the water from microorganisms.
It reduces the alkalinity to a required level
This treated water passes through the specially designed filtration plant containing chemicals such
as activated carbon (granular) and finally the manufacturer will get the water suitable for soft drink
bottling. Soda bicarbonate used for maintaining the equipment in hygiene conditions.
BOTTLING
In this process, both the concentrate and the purified water has mixed along will carbon dioxide gas
and then bottled. In the soft drink field, only reasonable glass bottles are sterilized to make them sparkling
clean, before the beverage is filled in the for this purpose, the company makes use of machine known as
‘BOTTLED WORKER’. For cleaning up of the bottles, washing chemicals such as caustic soda sand tri-
sodium phosphate are used. In the bottle washing system, through one end of eh worker the dirty bottles
has fed which are washed automatically while passing through various designed chambers containing
chemical solutions at different temperatures and concentration. Hot water has used for cleaning the
bottles. The bottles, after sterilization are collected at the other end of the washer. They have sent towards
the filter on conveyor belts. Before the beverage reaches the filling machine, it saturated with carbon
dioxide gas. This carbon dioxide gas gives “fizz” to the soft drinks and alongside prolongs the shelf life of
the products. The bottlers and then moved on the conveyor belts to the filling machines where the
beverage is filled under pressure. From there the bottles are sent to the crowner where sealing of the bottle
in done with the help of crowns. The crowns have used to retain the carbon dioxide flavors as well as to
protect the products from spoilage and contamination.

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CRATING
The bottles collected from conveyor belts have placed manually into plastic crates. Each plastic
case has a capacity of 24 bottles only. These crates protect the bottles form breakage as well as it ensures
easy handling of the bottle. These crates put on specially designed vans for carrying the bottles to their
various consumption points.
PERCENTAGE OF FLAVOR MOVEMENT IN THE MARKET
PEPSI 46.65%
THUMS UP 19.45%
LIMCA 12.44%
7 UP 12.22%
MANGO 9.22%
MANUFACTURING PROCESS OF A SOFT DRINK
For manufacturing a soft drink, the following raw materials are required.
1. Water
2. Sugar
3. Activate carbon powered
4. Hyflousuper cell
5. Filter paper
6. Essence
7. Hydrated line
8. Bleaching power

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The second process is water treatment. As an added ingredient, water can compromise up to 90%
of a soft drink. The quality of water is thus of a particular importance to the soft drinks manufacturers. In
this process, water has brought to the treatment tank and then water treatment chemicals such as hydrated
lime, bleaching power and ferrous sulphate has added to the tank and moved thoroughly by the help of
mechanical stirrer. The treated water-is then passed through the specially designed filtration plant
containing chemicals such as activated carbon (granular) and finally the manufactured will get the
standard water i.e., suitable for soft and then bottles are moved towards crowner where the sealing is done
w3ith the help of crowns. The crowns used in order to retain the carbonation flavors as well as to protect
the products from outside contamination and spoilage. The bottles have checked for maintaining the
required standard. Finally, the filled bottles have checked for maintaining the required standard. Finally,
the filed bottles have collected in plastic crates from the conveyor. The marketable le lot is only comprised
of a crate and filled with 24 bottles in each plastic crate. This crate is mainly useful to protect the bottles
and keep them in good condition and eliminates breakage and collected back in the same crates. Then the
finished products have transferred to the shipping department of shipment.

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THEORITICAL FRAME WORK
4P’s of marketing
Product:
A business needs to consider the products that it produces and the stage of the product
life cycle that a product is at . Marketing strategies will vary according to the type of
product and its stage in the life cycle. In case of Pepsi, in the rural markets, the
300mlbottle and now days the new small or commonly known as the “chota Pepsi” is
very much popular. The Pepsi Co. is even thinking of introducing their new Pepsi -Aha,
but presently they are concentrating more on the normal Pepsi , as the rural market is an
market . Pepsi is even successful in introducing the big 1-1.5liter PET bottles in the rural
markets. These big bottles
Are very popular during big festivals and marriages.
Price:
PRICING POLICIES
The company first has to decide what it wants to accomplish with its particular product
offer. If the company has selected its target market and market positioning carefully, then
its marketing mix strategy-including price – will be straight DETERMINING
DEMAND
Each price that the company might charge will lead to a different level of demand and
will therefore have a different impact on its marketing objectives. The relation between
alternative prices that might be charged in the current time. In the normal case, demand
and price are inversely related. That is, the higher the price, the lower the demand, and
the lower the price, the higher the demand. Demands set a selling on the price that the
company can charge for its product. In addition, company costs set the floor. The
company wants to charge a price that covers its cost of producing, distributing, and
selling the product, including affair return of its effort and risk.
SELECTING A PRICING METHOD]
Given the three C’s the customer’s demand schedules, the cost function and
competitors the company is now ready to select a price. Within the range of possible
determined by market demand and costs, competitors costs, prices, and possible price

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reaction help the firm establish where to set its price. The PepsiCoPvt. Ltd needs to
benchmark its costs against its competitor’s costs to learn whether it is a operating at a
cost advantage or disadvantage. The company also needs to learn the price and quality of
competitor’s offers. The firm sends out comparison shoppers to price and assess
competitor’s offers, acquire competitor’s price lists, buy competitor’s equipments and
take it apart, and ask buyers how they perceive the price and quality of each competitor’s
offer. Once the company is aware of competitor’s prices and offers, it uses them as an
orienting point for its own pricing. If the firm’s offer is similar major competitors offer,
then the firm will have to price close to the competitor has or lose sales. If the firm’s is
inferior, the firm will not be able to charge more than the competitors will. If the firms
offer is superior, the firm can charge more than the competitors can.
Promotion
SALES PROMOTIONAL ACTIVITY
Sales promotion a very ingredients in the marketing companies consists of a collection of
incentive tools, mostly short term, designed to stimulate quicker or grater purchase of
particular product or services by customers. Promotional activities play a key role in the
entire marketing effort being carried out by LUMBINI BEVERAGA, which is
coordinated with those of PEPSI CO.INDIA. These promotional activities generate more
sales as well as create a good image of the Product in the mind of customers. .Promotion
tools used by PEPSI company of its marketing activities are:
1. Point of sale display
2. Incentive to Retailers
3. Sales promotion through sponsoring special events.
4. Sales promotion through various schemes.
5. Advertising.
6. Scratch coupon card
7. Free gift items.
Point of sale display:
As it is mentioned that soft drink are kept in FMCG category so it is very
necessary to make a proper display of its product. General consumer demands the thing,

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which he looks first. Because in FMCG product consumer is not too much concern about
product. So outlet owners are suggested to keep bottles in stand and keep it out of the
shop. So that customers have an eye contact with product as he enters the shop. This is
particularly true for those brands which have very low customer loyalty soft drink is one
such product in which most of the time buying decision is made at the spur rand which is
readily available and catches the customer. For this reason PepsiCo invest heavily in this
categories by supplying the shop owners with stands so that they can keep the bottles
outside on those stands so that customer have an eye contact with themes he/she is
entering the shop. Also PEPSI supply the shop with coolers with a glass front so that
cooled bottles can be seen by the customers for making the decision on the flavor that
person is going to buy. Apart from these, PepsiCo takes keen in the other type strategies
like painting the walls of the shops with the PEPSI logo and the shop name. This
increases the visibility of the brand among the customer when he/she enter the shop.
Incentive to Retailers:-
Another method of sales promotion is to give incentive scheme to retailer, under this
promotional method retailers are given a target regarding the minimum no. of crates that
they have to sale in that period, on achieving the target the dealer is given attractive
prizes which ranges from free bottles, gift items
SPONSORING SPECIAL EVENT:-
PEPSI is sponsoring various events, which include cricket matches, local events like quiz
competitors, Parties, local sports, Orchestra, cultural programmed etc.
Advertising Policy:-
Advertising is considered the most important tool to increase sales. PEPSI uses various
methods to advertise its product; advertising is made through TV channels, Radio,
magazines, Newspaper, Banners etc.
Scratch Coupon Card:-
Scratch card is another type of tool, which helps to increase sales. In scratch card the
name of the gift item is printed and a layer is covered that prize name. Outlet owner are
given that card and after scratching whatever they get company distribute it among them.

22
Data interpretation and analysis
The below data was taken and analyzed from 50 samples
TABLE.1
Does the soft drink company provide you with refrigeration facilities ?
Options Number of respondents percentage
Yes 28 56
No 12 24
Mixed 8 16
Own 2 4
Total 50 100
INTERPRETATION:
56 percent dealers are having refrigeration facilities provided by the company .company has to increase
refrigeration facilities to tap untapped market.
Yes, 28
No, 12
Mixed, 8
Own, 2
0
5
10
15
20
25
30
no
of
respondents
REFRIDGERATION FACILITIES

23
TABLE 2
Q2) Does the company provide you with mechanics for the repair and maintenance of fridges?
Yes 28 56
No 12 24
Mixed 8 16
Own 2 4
Total 50 100
INTERPRETATION: only 56 percent dealers are getting mechanics for repairs so company have to
focus making availability of more technical persons.
56
24
16
4
0
10
20
30
40
50
60
Yes No Mixed Own
Series1

24
TABLE 3
Q3) what are the conditions of bottles provided by the company?
Options Number of respondents Percentage
Excellent 8 16
Good 16 32
Neutral 11 22
bad 9 18
Worse 6 12
Total 50 100
INTERPRETATION:
About 32percent dealers are happy with conditions of bottles .companyhas to take care of
conditions of bottle to increase acceptance
16
32
22
18
12
0
5
10
15
20
25
30
35
Excellent Good Neutral bad Worse
Series1

25
TABLE 4
Q4) If the bottles are broken in transit or in the shop due to natural causes or calamities then does the
company bear the loss for you?
Yes 47 94
NO 3 6
TOTAL 50 100
INTERPRETATION: Dealers of 94 percent are happy with company replacement Facilities.
0
10
20
30
40
50
60
70
80
90
100
Yes NO
Series1

26
TABLE.5
Q5) If the products have crossed their expiry dates then dose the company replace the products for
you?
Yes 39 78
No 11 22
Total 50 100
INTERPRETATION: About 78 percent dealers are satisfied with replacement of expiryproducts even
some dealers having problems with stock left with them so company have to take necessary steps to
reduce inventory levels at dealers.
0
10
20
30
40
50
60
70
80
90
Yes No
Chart Title
Series1

27
TABLE 6
Q6) how many dealers of the company are there in your area?
0-2 36 72
2-4 8 16
4-6 5 10
More than 6 1 2
Total 50 100
NO OF DEALERS
INTERPRETATION: ABOUT 72 percent dealers were satisfied with completion from other dealers so
company should retain its position.
0
10
20
30
40
50
60
70
80
0-2 02-Apr 04-Jun More than 6
Series1

28
TABLE 7
Q8) when do you replenish your stock?
Weekly 5 10
Fort night 40 80
Monthly 3 6
Quarterly 2 4
Total 50 100
RELENISH PERIOD
INTERPRETATION: ABOUT 80 percent dealers were replenishing stocks on fortnight basisso
company has to focus on timely delivery of products
0
10
20
30
40
50
60
70
80
90
Weekly Fort night Monthly Quarterly
Series1

29
TABLE 8
Q8) Are you satisfied with your replenishment you get?
Very satisfied 6 12
Satisfied 20 40
Neutral 12 24
dis satisfied 10 20
Very dissatisfied 2 4
Total 50 100
REPLENISH PERIOD
INTERPRETATION: About 52 percent are happy with replacement of stocks. Company has toincrease
sales force to make dealer more satisfied
0
5
10
15
20
25
30
35
40
45
Very
satisfied
Satisfied Neutral dis satisfied Very
dissatisfied
Series1

30
TABLE 9
Q9) How much time does it take to process an order? (Days)
0-2 36 72
2-4 8 16
4-6 5 10
More than 6 1 2
Total 50 100
INTERPRETATION: Dealers of about 72 percent are satisfied with order processing period.
company has to retain its position.
0
10
20
30
40
50
60
70
80
0-2 02-Apr 04-Jun More than 6
Series1

31
TABLE 10
Q10) what are the payment conditions of the company.
Paid advance 5 10
Pay on arrival of the product 18 36
Pay to the sales men later 27 54
Total 50 100
INTERPRETATION: About 54 percent dealers are willing to pay sales clerk later so the company
should give some time for dealers for payment
0
10
20
30
40
50
60
Paid advance Pay on arrival of the
product
Pay to the sales men
later
Series1

32
TABLE 11
Q11) Are you satisfied with the payment conditions?
Very satisfied 18 36
Satisfied 22 44
Neutral 5 10
dis satisfied 4 8
Total 50 100
INTERPRETATION: About 80 percent dealers were satisfied with payment conditions.company has to
retain its image in dealers prospective.
0
5
10
15
20
25
30
35
40
45
50
Very
satisfied
dissatisfied
Series1

33
TABLE 12
Q12) Are you satisfied with the margins given to you by the company?
Very satisfied 8 16
Satisfied 12 24
Neutral 25 50
dis satisfied 4 8
Total 50 100
INTERPRETATION: About 50 percent dealers are neutral in margin satisfaction so companyhas to
necessary steps to increase a little margin to dealers
0
10
20
30
40
50
60
Very
satisfied
dissatisfied
Series1

34
TABLE 13
Q13) According to you who factor plays a major role in achieving sales for Pepsi. (Rank 1-7)
Brand name 13 26
Price 10 20
Availability 15 30
Loyalty 2 4
Quality 10 20
Total 50 100
INTERPRETATION: About 30 percent and 24 percent dealers feel availability of product inevery
region and brand name played a key role in achieving sales
0
5
10
15
20
25
30
35
Brand name Price Availability Loyalty Quality
Series1

35
TABLE 14
Q14) what kind of promotional activities will affect sales mostly?
Free bottle scheme 18 36
Discount rates 14 28
Prices 2 4
Coupons 16 32
Total 50 100
INTERPRETATION: About 36 percent of dealers prefer free bottle scheme rather than prizesso
company focus on this incentive to increase sales
0
5
10
15
20
25
30
35
40
Free bottle
scheme
Discount rates Prices Coupons
Series1

36
TABLE 15
Q15) You will always buy carbonated drinks as your first choice and fruits drinks as next. ?
Yes 34 68
No 16 32
Total 50 100
INTERPRETATION: About 68 percent dealers prefer carbonated Pepsi drinks over fruit based drinks
so company should retain image in carbonated segment and should introduce more products to tap fruit
based segment.
0
10
20
30
40
50
60
70
80
Yes No
Series1

37
FINDINGS
1. The numbers of PEPSI outlets is more than the numbers of competitor’s outlets at rajahmundry
that results in increase in sale of PEPSI products.
2. In the city like rajahmundry, PEPSI products are reaching to every corner where not a single bottle
of PEPSI can be seen.
3. All the areas in rajahmundry, almost the retailers are satisfied with the distribution network of the
PEPSI product.
4. Most of the retailers want glow sign and chilling equipments, which they are asking from long
time.
5. In cola segment COCA-COLA is main competitor of PEPSI, in orange segment MIRINDA is the
main competitor of FANTA, in lime segment7UP and MOUNTAIN DEW is the main competitor
of SPRITE, in juice (mango) segment SLICE is main competitor of MAAZA.
Year Title of CCS Project
2020-
21
Sourcing Excellence assessment for Watches & Accessories division
2020-
21
B2B fashion supply chain in India - current state & white spaces
2020-
21
Prognostics and Health Management in Industrial applications
2020-
21
To develop a Connected Supply chain between demand and supply for an unsatisfied customer
2020-
21
Study of Labour Productivity for the Auto sector in India (general) and for the Company (specific)
2020-
21
Working capital loans for grocery and fashion kiranas in India - Current state and white spaces
2020-
21
Develop a business model and establish the supply chain for an Organic Food Aggregator
2020-
21
How Zilingo cracked the B2B fashion market in South East Asia
2020-
21
Streamlining of Supply Chain in Lubes Business for an Oil & Gas Company
2020-
21
Making Bio-fuels profitable with current Ethanol Policy and Profitability study of setting up and operating a
standalone distillery for producing Ethanol
2020-
21
Develop a digitalized integrated supply chain for the Auto component sector
2020-
21
Connected machines in MSME for a maximum efficiency

38
2020-
21
3PL Market entry strategy for bulk chemicals and pharma segments
2020-
21
High-tech electronics manufacturing ecosystem analysis
2020-
21
Capability assessment of the SCM organization currently in B2B model to also handle the B2C model for
residential solar rooftops & solar pumps
2020-
21
Learn to see, observe, and augment measures for a global auto component production system. Improve
supplier value stream by applying Lean tools leading to waste elimination
2020-
21
Warehouse Solution Modelling and Templatization for 3PL Business
2020-
21
Supply Chain Control Tower - Benefits & Usage
2020-
21
HR Competency Mapping
2019-
20
Integrated Logistics model for SCM at APMC
2019-
20
Determine Product Life Cycle stage of current product portfolio
2019-
20
First Mile Cluster and Wave Modelling
2019-
20
Inland Water Transport for LPG in India
2019-
20
Daily HSD Rate Variation Impact on Transportation & Logistics sector
2019-
20
Demand Sensing & Inventory Optimization - Retail & Manufacturing
2019-
20
Post GST distribution rationalization
2019-
20
Impact of GST on Petroleum Products (MS & HSD)
2019-
20
Biodiesel Plant - Case Study
2019-
20
Warehousing in e-commerce
2019-
20
MSME Auto Component Sector in India
2019-
20
Mapping of manufacturing data flow to achieve optimal process
2019-
20
Development of Gender Diversity and Inclusion Policy
2019-
20
Streamlining of passenger movement at Kempegowda Interchange Metro Station
2019-
20
Impact assessment analysis on commodity prices post UMP implementation
2019- Quantity & Price variance analysis under different price discovery mechanisms

39
20
2019-
20
Establish a Logistics driven manufacturing with Digitalization
2019-
20
Unified Market Platform (UMP) Data Analysis for Agricultural Commodities, Case Study
2019-
20
Review current challenges and propose a road map for the way forward, Case study SmallBag
2018-
19
Reforms in SCM, with focus on Procurement Process.
2018-
19
Procure 2 Pay:
2018-
19
Supply Chain Risk Management
2018-
19
Demand Forecasting for HSD/MS/ATF
2018-
19
Study Petroleum Supply Chain Network of India
2018-
19
Assetless city logistics
2018-
19
Four Hours Delivery
2018-
19
Precious Supply Chain Benchmarking
2018-
19
Scheduled Delivery
2018-
19
Business Consolidators/aggregators for the Express Logistics
2018-
19
Distribution model for food category and vendor-wise solutioning
2018-
19
Demand surge outliers detection
2018-
19
Engineering Services Obsolescence Management
2018-
19
Effective dashboard and MIS reports
2018-
19
Farmer’s Share in Consumer Rupee
2018-
19
Quality and Price Relation
2018-
19
Prediction of Employee Attrition
2018-
19
Automotive Logistics
2018-
19
Automotive Logistics

40
2018-
19
Improving on-time delivery performance
2018-
19
Low Cost Automations (LCA) Commercialization
2018-
19
Training Materials Database
2018-
19
Designing Storage and Distribution
2018-
19
Demand Forecasting for HSD/MS/ATF
2018-
19
Redesigning the distribution model for Foods category and creating a dynamic tool for vendor-wise solution
2018-
19
Increasing outside trader’s participation
2018-
19
Measuring productivity in software industry
2017-
18
Demand for Petroleum Products & Impact of West Coast Reﬁnery
2017-
18
Planning/Loading Proposal to get FG – 7
2017-
18
Supply Chain Strategy for Lifetime Support of Military Aircraft
2017-
18
Traditional, Modern and Future Strategies
2017-
18
End of Season Promotion Planning
2017-
18
Bringing Perishable Agricultural Commodities on Uniﬁed Market Platform (UMP)
2017-
18
Study of Farmer Producer Organization in Karnataka
2017-
18
Suggest Methods of Financing to Producers and Traders
2017-
18
Block Chain Technologies in Supply Chain
2017-
18
Feasibility of Public Cloud Supply Chain Software
2017-
18
Taxonomy of Technical Skills for Workforce Management
2017-
18
End-of-season Sales Offer Design
2017-
18
Study of 3PL Logistics Industry Priyasha Kushwaha
2017-
18
Supply Chain Strategy for Lifetime Support of Military Aircraft
2017- Network Optimization of Product Pipelines

41
18
2017-
18
A Temporal Study of Supply Chain of Cold Chain in India
2017-
18
Threats and Opportunities for Retail Post Services of DOP in the Context of Online Services
2017-
18
Retail Stock & Inventory Management
2017-
18
Customer Pickup
2017-
18
Study on Franchisee Model for Last Mile Hubs
2016-
17
Estimating Premium / Discount of Crude Oil
2016-
17
Study on Petrochemicals Suman Saurabh &
2016-
17
Network of Product Pipelines in India
2016-
17
Demand Forecasting Petroproducts
2016-
17
Market Study Transportation
2016-
17
Marketing and Brand Positioning of India Post
2016-
17
Product Rationalisation India Post Products
2016-
17
Delivery of eCommerce Shipments
2016-
17
Post Bank of India: Scope of Payments Bank
2016-
17
Impact Study
2016-
17
Grading and Certification
2016-
17
Integrated Logistics
2016-
17
Optimizing Safety Stocks of Input Components
2016-
17
Optimizing Inbound Transportation
2016-
17
MRO Supply Chain
2016-
17
Strategies for Online Grocery Business
2016-
17
Omni Channel Strategy for Online Grocery Retailers

42
2016-
17
Designing an Operations Management Game
2016-
17
Optimising All-India Distribution Network in GST Regime
2016-
17
Industry Structure
2016-
17
Rental Housing Market
2016-
17
Affordable Housing- Financing Challenges
SUGGESTIONS
 An inspection officer should be recruited who perform surprise inspection of the market and find
out the problems.
 The vehicles of the agency should be inspected so the delivery should be maintained.

43
 After sales service has to be improved.
 Incentives should provide based on sale.
 Check the whole sellers who are selling lower price than agency.
 Agency should be more honest in providing benefits to retailers.
 Salary of sales force should increase so they may not do fraud with retailers to earn more.
CONCLUSION
Proper approach to the retailers at the time of tie-ups is required. The retailer’s satisfaction is
medium.No provision for regular replacement of damage of bottles. Many complaints of retailers
does not listen by the company. Many retailers want monopoly but company does not provide.

44
Dealers are happy with Pepsi products. They got the products by the company at the time due to
good distribution channel

45
QUESTIONNAIRE
Questionnaire on Dealer’s satisfaction
Name of the shop / outlet:
Address /location:
Type of outlet:
Supermarket Restaurant
Pan shop others
Retail/Grocery store
The quantity you usually order:
Q1) Does the soft drink company provide you with refrigeration facilities?
Yes No own mixed
Q2) Does the company provide you with mechanics for the repair and maintenance of
fridges?
Yes No own mixed
Q3) what are the conditions of bottles provided by the company?
Excellent Good Neutral Bad Worse
Q4) If the bottles are broken in transit or in the shop due to natural causes or calamities then
does the company bear the loss for you?
Yes No

46
Q5) if the products have crossed their expiry dates then dose the company replace the
products for you?
Yes No
Q6) If Yes Then
Replace at your own cost Buy Back Replace products free of charge
Q7) how many dealers of the company are there in your area?
0-2 2-4 4-6 more than 6
Q8) When do you replenish your stock?
Weekly Fortnightly Monthly Quarterly
Q9) Are you satisfied with your replenishment you get
Very Satisfied Satisfied Neutral Dissatisfied Very Dissatisfied
Q10) Dose the company give you products you require or they follow their own rules and
regulations.
Yes No
Q11) How much time does it take to process an order? (Days)
0-2 2-4 4-6 more than 6
Q12) any schemes or discounts in bulk buying?
Yes No
Q13) what are the payment conditions of the company?
Pay in advance ( ) pay on arrival of the product ( ) pay to the salesman later ( )

47
Q14) Are you satisfied with the payment conditions?
Q15)Are you satisfied with the margins given to you by the company
Q16) Are you satisfied with the margins given to you by the company?
Q17) According to you who factor plays a major role in achieving sales for Pepsi? (Rank 1-7)
Brand Name
Price
Availability
Loyalty
Quality
Packaging
Q17) what kind of promotional activities will affect sales
mostly?
Free bottle scheme discount crates prizes coupons
Q18) you will always buy carbonated drinks as your first choice and fruits drinks as next.
Yes No

48
BIBLIOGRAPHY
Reference Books:
Philip Kotler (2002), “Marketing management” Prentice Hall of India,
New Delhi, Eleventh Edition.
Kotler and Armstrong (2001), “Principles of marketing” Prentice Hall of
India, New Delhi.
Gupta and Rajan Nair (2002),”Marketing Management” Sultan Chand
& Sons, New Delhi, Seventh Edition.
Memoria and joshi (1987), “Principles and practice of marketing” Mc
Graw Hill Company, Ryerson, Eighth Edition.
C.R. Kothari (2003), “Research methodology” WishwaPrakashan,
Mumbai.

49
Web References
http://www.pepsi.com
http://www.tropicana.com
http://www.pepsicoindia.com
www.google.com

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