Pepsi summer project


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All project reports are free for mba bba marketing recruitment etc etc by Please play worlds best online games for free thanks bhai log apne dosto ko bhi fwd karein meri site. Vikas (Chandigarh)

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  • ur site is very nice n it helps me a lot for projet,, thx a lot for creating this ..............thank you
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Pepsi summer project

  1. 1. Project report on Basics of Financial AccountingSubmitted by :- Pooja Bhoria Submitted to :- Mrs. Mehak Preeti Dhiman Suman ChaudharyClass :Final Year(Diploma in Finance, Account and Auditing)
  2. 2. www.GamesWala.comJai Shree Ram, Dostoi am vikas gupta, age 31 years . i start a gaming websitenamed which has PR4 andratings below 4 lakh.i need here 1 help from you, as i have no money topromote my gaming site,i am running graphic shop with1 PC (yes 1 PC :) think how i am surviving with 1 PCand a family with 2 kids :P ), I do not know muchabout how to promote my website, so i decided to talkwith you friends to come and join my site and play allthe games for free, all games are personally selected byme from thousands of games.I am updating my website daily with lots of awesomegames.You can play without register or register you idor you also can play with your facebook ID.hope you allwill like my site and play free online games there, anddont forgot to tell your friends about :)
  4. 4. AcknowledgementI ―SHIKHA‖take this opportunity to express my deepsense of gratitude to my Teacher “Miss Abina” for theirguidance for extending their valuable support and help inthe preparation of this project report. I am also thankfulto my family, friends for extending their co-operation incompletion of this project report.Date:
  5. 5. www.GamesWala.comPlace: Signature INTRODUCTIONThe FMCG sector represents consumer goods required for daily or frequent use. The mainsegments of this sector are personal care (oral care, hair care, soaps, cosmetics, toiletries),household care (fabric wash and household cleaners), branded and packaged food, beverages(health beverages, soft drinks, staples, cereals, dairy products, chocolates, bakery products) andtobacco.The Indian FMCG sector is an important contributor to the countrys GDP. It is the fourth largestsector in the economy and is responsible for 5% of the total factory employment in India. Theindustry also creates employment for 3 m people in downstream activities, much of which isdisbursed in small towns and rural India. This industry has witnessed strong growth in the pastdecade. This has been due to liberalization, urbanization, increase in the disposable incomes andaltered lifestyle. Furthermore, the boom has also been fuelled by the reduction in excise duties,de-reservation from the small-scale sector and the concerted efforts of personal care companiesto attract the burgeoning affluent segment in the middle-class through product and packaging
  6. 6. www.GamesWala.cominnovations.Unlike the perception that the FMCG sector is a producer of luxury items targeted at the elite, inreality, the sector meets the every day needs of the masses. The lower-middle income groupaccounts for over 60% of the sectors sales. Rural markets account for 56% of the total domesticFMCG demand.Many of the global FMCG majors have been present in the country for many decades. But in thelast ten years, many of the smaller rung Indian FMCG companies have gained in scale. As aresult, the unorganized and regional players have witnessed erosion in market share.History of FMCG in India In India, companies like ITC, HLL, Colgate, Cadbury and Nestle have been a dominantforce in the FMCG sector well supported by relatively less competition and high entry barriers(import duty was high). These companies were, therefore, able to charge a premium for theirproducts. In this context, the margins were also on the higher side. With the gradual opening upof the economy over the last decade, FMCG companies have been forced to fight for a marketshare. In the process, margins have been compromised, more so in the last six years (FMCGsector witnessed decline in demand).Current Scenario The growth potential for FMCG companies looks promising over the long-term horizon,as the per-capita consumption of almost all products in the country is amongst the lowest in theworld. As per the Consumer Survey by KSA-Technopak, of the total consumption expenditure,almost 40% and 8% was accounted by groceries and personal care products respectively. Rapidurbanization, increased literacy and rising per capita income are the key growth drivers for thesector. Around 45% of the population in India is below 20 years of age and the proportion of theyoung population is expected to increase in the next five years. Aspiration levels in this agegroup have been fuelled by greater media exposure, unleashing a latent demand with moremoney and a new mindset. In this backdrop, industry estimates suggest that the industry couldtriple in value by 2015 (by some estimates, the industry could double in size by 2010).In our view, testing times for the FMCG sector are over and driving rural penetration will be the
  7. 7. www.GamesWala.comkey going forward. Due to infrastructure constraints (this influences the cost-effectiveness of thesupply chain), companies were unable to grow faster. Although companies like HLL and ITChave dedicated initiatives targeted at the rural market, these are still at a relatively nascent stage.The bottlenecks of the conventional distribution system are likely to be removed once organizedretailing gains in scale. Currently, organized retailing accounts for just 3% of total retail salesand is likely to touch 10% over the next 3-5 years. In our view, organized retailing results indiscounted prices, forced-buying by offering many choices and also opens up new avenues forgrowth for the FMCG sector. Given the aggressive expansion plans of players like Pantaloon,Trent, Shopper’s Stop and Shoprite, we are confident that the FMCG sector has a bright future.Budget Measures to Promote FMCG Sector 2% education cess corporation tax, excise duties and custom duties Concessional rate of 5% custom duty on tea and coffee plantation machinery Budget ImpactThe education cess will add marginally to the tax burden of all FMCG companiesThe dividend distribution tax on debt funds is likely to adversely effect the other incomecomponents of companies like Britannia, Nestle and HLLThe measure to abolish excise duty on dairy machinery is a positive for companies like NestleConcessional rate for tea and coffee plantation machinery is a positive for Tata Tea, HLL,Tata Coffee and other such companiesDuty reduction in food grade hexane will have a marginally positive impact on companieslike Marico and HLLArea specific excise exemptions for North East, J&K, Himachal Pradesh will continue toencourage FMCG companies to relocate to these areas.Budget over theyears Budget 2001-02 Budget 2002-03 Budget 2003-04 From 35-55% to 75% Increased focus on Excise on biscuits for crude edible oil agricultural reforms reduced to 8% from From 45-65% to 85% with an aim to 16%. Excise on soft for refined edible oil integrate the drinks and sugar From 35% to 70% for countrywide food boiled confectionery copra, coconut, tea and market also reduced
  8. 8. coffee Deregulation of the All states to switch to From 25% to 55% for milk processing VAT in FY04 (deadline crude palm oil capacity now has been Development Excise duty structure extended till end allowance of tea largely untouched. FY05) industry raised to 40% Only for tea, the duty Loans to agriculture from 20% was reduced from Rs 2 and to small-scale All food preparations per Kg to Re 1 sector will now be based on fruits and Customs duty on tea available at maximu vegetables (pickles, and coffee doubled to 2% above prime sauces, ketchup, juices, 100% lending rate (PLR) jams etc.) made Duty on imported Development plans for completely exempt pulses upped to 80% roads, ports, railways from excise duty Import duty on wine and airports Excise on cosmetics and liquor slashed Customs duty on and toiletries halved to from 210% to 180% alcoholic beverages 16% reducedIndia offers a large and growing market of 1 billion people of which 300 million are middle classconsumers. India offers a vibrant market of youth and vigor with 54% of population below theage of 25 years. These young people work harder, earn more, spend more and demand morefrom the market, making India a dynamic and aspirational society. Domestic demand isexpected to double over the ten-year period from 1998 to 2007. The number of households with"high income" is expected to increase by 60% in the next four years to 44 million households. India is rated as the fifth most attractive emerging retail market. It has been rankedsecond in a Global Retail Development Index of 30 developing countries drawn up by A TKearney. A.T. Kearney has estimated Indias total retail market at $202.6 billion, is expected togrow at a compounded 30 per cent over the next five years. The share of modern retail is likelyto grow from its current 2 per cent to 15-20 percent over the next decade, analysts feel. The Indian FMCG sector is the fourth largest sector in the economy with a total marketsize in excess of US$ 13.1 billion. The FMCG market is set to treble from US$ 11.6 billion in 2003to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most productcategories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untappedmarket potential. Burgeoning Indian population, particularly the middle class and the rural
  9. 9. www.GamesWala.comsegments, presents an opportunity to makers of branded products to convert consumers tobranded products. India is one of the world’s largest producers for a number of FMCG products but itsFMCG exports are languishing at around Rs 1,000 crore only. There is significant potential forincreasing exports but there are certain factors inhibiting this. Small-scale sector reservationslimit ability to invest in technology and quality up gradation to achieve economies of scale.Moreover, lower volume of higher value added products reduce scope for export to developingcountries. The FMCG sector has traditionally grown at a very fast rate and has generally outperformed the rest of the industry. Over the last one year, however the rate of growth hasslowed down and the sector has recorded sales growth of just five per cent in the last fourquarters. The outlook in the short term does not appear to be very positive for the sector. Ruraldemand is on the decline and the Centre for Monitoring Indian Economy (CMIE) has alreadydownscaled its projection for agriculture growth in the current fiscal. Poor monsoon in somestates, too, is unlikely to help matters. Moreover, the general slowdown in the economy is alsolikely to have an adverse impact on disposable income and purchasing power as a whole. Thegrowth of imports constitutes another problem area and while so far imports in this sector havebeen confined to the premium segment, FMCG companies estimate they have already cornereda four to six per cent market share. The high burden of local taxes is another reason attributedfor the slowdown in the industryAt the same time, the long term outlook for revenue growth is positive. Give the large marketand the requirement for continuous repurchase of these product  Type Public (NYSE: PEP)  Founded 1965  Headquarters New York, USA  Key people Indra Nooyi, Chairwoman, President & CEO
  10. 10. Industry Food and beverage Products:  Pepsi  Tropicana Products  Gatorade  Lays  Doritos  Frappuccino (for Starbucks)  Mountain Dew Operating income $6.44 billion USD (2006) Net income $5.64 billion USD (2006) profit margin 16.06% Employees 153,000(2005) GROUP OF COMPANIES  Frito-Lay North America  PepsiCo Beverages North America,  PepsiCo International  Quaker Foods North America Missi on The main objectiv e of the
  11. 11. www.GamesWala.comcompany is to provide best quality products to its consumer. Another objective isto provide healthy rewards to its investor, good reward to its employee and otherinvestor and partners who financially help the company VisionThe vision of the company is to improve in all aspects in which they operate. Byimproving in social and economical environment, they want to make tomorrowbetter than today.
  12. 12. www.GamesWala.comA Brief Pepsi HistoryIn 1893, Caleb Bradham,a young pharmacist from New Bern, North Carolina, beginsexperimenting with many different soft drink concoctions. Like manypharmacists at the turn of the century he had a soda fountain in his drugstore,where he served his customers refreshing drinks, that he created himself.His most popular beverage was something he called "Brads drink" made ofcarbonated water, sugar, vanilla, rare oils, pepsin and cola nuts.One of Calebs formulations, known as "Brads drink", created in thesummer of 1893, was later renamed Pepsi Cola after the pepsin and cola nuts used in the recipe.In 1898, Caleb Bradham wisely bought the trade name "Pep Cola" for $100 from a competitorfrom Newark, New Jersey that had gone broke. The new name was trademarked on June 16th,1903. Bradhams neighbor, an artist designed the first Pepsi logo and ninety-seven shares ofstock for Bradhams new company were issued. 1898 - One of Calebs formulations, known as "Brads Drink," a combination of carbonated water, sugar, vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola" on August 28, 1898. Pepsi-Cola receives its first logo. 1905 - Pepsi-Colas first bottling franchises are established in Charlotte and Durham, North Carolina. Pepsi receives its new logo, its first change since 1898. 1906 - Pepsi gets another logo change, the third in eight years. The modified script logo is created with the slogan, "The Original Pure Food Drink."
  13. 13. www.GamesWala.com1908 - Pepsi-Cola becomes one of the first companies to modernize deliveryfrom horse drawn carts to motor vehicles. Two hundred fifty bottlers in 24states are under contract to make and sell Pepsi-Cola. 1910 - Thefirst Pepsi-Cola bottlers convention is held in New Bern, NorthCarolina.1920 - Pepsi theme line speaks to the consumer with "DrinkPepsi-Cola, it will satisfy you." 1928 - Afterfive continuous losing years, Megargel reorganizes his company as the National Pepsi-ColaCompany, becoming the fourth parent company to own the Pepsi trademark.1934 - A landmark year for Pepsi-Cola. The drink is a hit and to attract even more sales,the company begins selling its 12-ounce drink for five cents (the same cost as six ounces ofcompetitive colas). The 12-ounce bottle debuts in Baltimore, where it is an instant success. Thecost savings proves irresistible to Depression-worn Americans and sales skyrocket nationally.Caleb Bradham, the founder of Pepsi-Cola and "Brads Drink," dies at 66 (May 27th,1867-February 19th, 1934).1935 - Guth moves the entire Pepsi-Cola operation to Long Island City, New York, and sets upnational territorial boundaries for the Pepsi bottler franchise system.1936 - Pepsi grants 94 new U.S. franchises and year-end profits reach $2,100,000.In 1940, the Pepsi Cola company made history when the first advertising jingle wasbroadcast nationally on the radio. The jingle was "Nickel Nickel" an advertisement for PepsiCola that referred to the price of Pepsi and the quantity for that price "Nickel Nickel" became ahit record and was recorded into fifty-five languages.
  14. 14. 1941 - The New York Stock Exchange trades Pepsis stock for the first time. In support of the war effort, Pepsis bottle crown colors change to red, white, and blue. 1942 - One on many company sponsored efforts to allow soldiers to communicate with friends or family. This record was made in New York City but often booths would be set up with mobile recording equipment that was bought to where the soldiers were. Shell material on solidcore. 78 rpm.1943 - Pepsis theme line becomes "Bigger Drink, Better Taste."1948 - Corporate headquarters moves from Long Island City, New York, to midtownManhattan.1950 - Alfred N. Steele becomes President and CEO of Pepsi-Cola. Mr. Steeles wife, Hollywoodmovie star Joan Crawford, is instrumental in promoting the companys product line. Pepsi receives its new logo, which incorporates the "bottle cap" look. The new logo is the fifth in Pepsi history.1953 - "The Light Refreshment" campaign capitalizes on a change in the products formula thatreduces caloric content.1955 - Herbert Barnet is named President of Pepsi-Cola.1959 - Pepsi debuts at the Moscow Fair. Soviet Premier Khrushchev and U.S. Vice PresidentNixon share a Pepsi.
  15. 15. www.GamesWala.com1960 - Young adults become the target consumers and Pepsis advertising keeps pace with "Nowits Pepsi, for those who think young."1962 - Pepsi receives its new logo, the sixth in Pepsi history. The serrated bottle cap logodebuts, accompanying the brands groundbreaking "Pepsi Generation" ad campaign.1963 - After climbing the Pepsi ladder from fountain syrup salesman, Donald M. Kendall isnamed CEO of Pepsi-Cola Company. Pepsi-Cola continues to lead the soft drink industry inpackaging innovations, when the 12-ounce bottle gives way to the 16-ounce size. Twelve-ouncePepsi cans are first introduced to the military to transport soft drinks all over the world.1964 - Diet Pepsi, introduced as Americas first national diet soft drink. Pepsi-Cola acquires Mountain Dew from the Tip Corporation.1965 - Expansion outside the soft drink industry begins. Frito- Lay ofDallas, Texas, and Pepsi-Cola merge, forming PepsiCo, Inc.Military 12-ounce cans are such a success that full-scale commercial distribution begins. Mountain Dew launches its first campaign, "Yahoo Mountain Dew...Itll tickle your innards." 1970 - Pepsi leads the way into metrics by introducing the industrys first two-liter bottles. Pepsi is also the first company to respond to consumer preference with light-weight, recyclable, plastic bottles. Vic Bonomo is named President of Pepsi-Cola. The Pepsi World Headquarters moves from Manhattan to Purchase, NY. 1974 - First Pepsi plant opens in the U.S.S.R. Television ads introducethe new theme line, "Hello, Sunshine, Hello Mountain Dew."1976 - Pepsi becomes the single largest soft drink brand sold in American supermarkets. The
  16. 16. www.GamesWala.comcampaign is "Have a Pepsi Day!" and a classic commercial, "Puppies," becomes one of Americasbest-loved ads. As people get back to basics, Pepsi is there as one of the simple things in life.1977 - At 37, marketing genius John Sculley is named President of Pepsi-Cola.1978 - The company experiments with new flavors. Twelve-pack cans are introduced.1980 - Pepsi becomes number one in sales in the take home market.1981 - PepsiCo and China reach agreement to manufacture soft drinks, with productionbeginning next year.1982 - Pepsi Free, a caffeine-free cola, is introduced nationwide. Pepsi Challenge activityhas penetrated 75% of the U.S. market.1984 - Pepsi advertising takes a dramatic turn as Pepsi becomes "the choice of a NewGeneration." Lemon Lime Slice, the first major soft drink with real fruit juice, is introduced,creating a new soft drink category, "juice added." In subsequent line of extensions, MandarinOrange Slice goes on to become the number one orange soft drink in the U.S. Diet Pepsi isreformulated with NutraSweet (aspertame) brand sweetener.1985 - After responding to years of decline, Coke loses to Pepsi in preference testsby reformulating. However, the new formula is met with widespread consumer rejection,forcing there-introduction of the original formulation as "Coca-Cola Classic." The cola war takes"one giant sip for mankind," when a Pepsi "space can" is successfully tested aboard the spaceshuttle. By the end of 1985, the New Generation campaign earns more than 58 major advertisingand film-related awards. Pepsis campaign featuring Lional Richie is the most remembered inthe country, according to consumer preference polls..1987 - Pepsi-Cola President Roger Enrico is named President/CEO of PepsiCo WorldwideBeverages. Pepsi-Cola World Headquarters moves from Purchase to Somers, New York. After
  17. 17. www.GamesWala.coma 27 year absence, Pepsi returns to Broadway with the lighting of a spectacular new neon sign inTimes Square.1988 - Craig Weatherup is appointed President/CEO of Pepsi-Cola Company.1989 - Pepsi lunges into the next decade by declaring Pepsi lovers "A Generation Ahead." ChrisSinclair is named President of Pepsi-Cola International. Pepsi-Cola introduces an exciting newflavor, Wild Cherry Pepsi.1990 - American Music Award and Grammy winner rap artist Young MC writes and performssongs exclusively for national radio ads for Pepsi. Ray Charles joins the Pepsi family byendorsing Diet Pepsi. The slogan is "You Got The Right One Baby."1991 - Craig E. Weatherup is named CEO of Pepsi-Cola North America, as Canada becomes partof the companys North American operations. Pepsi introduces the first beverage bottlescontaining recycled polyethylene terephthalate (or PET) into the marketplace. The developmentmarks the first time recycled plastic is used in direct contact with food in packaging.1992--Pepsi-Cola launches the "Gotta Have It" theme which supplants the longstanding "Choiceof a New Generation."1993 - Brand Pepsi introduces its slogan, "Be Young. Have Fun. Drink Pepsi." Pepsi-Cola profitssurpass $1 billion. Pepsi introduces an innovative 24-can multipack that satisfies growingconsumer demand for convenient large-size soft drink packaging. "The Cube" is easier to carrythan the traditional 24-pack and it fits in the refrigerator.1994 - New advertising introducing Diet Pepsis freshness dating initiative features PepsiCEO Craig Weatherup explaining the relationship between freshness and superior taste toconsumers. Pepsi Foods International and Pepsi-Cola International merge, creating the PepsiCoFoods and Beverages Company.1995 - In a new campaign, the company declares "Nothing else is a Pepsi" and takes top honorsin the years national advertising championship.
  18. 18. www.GamesWala.com1996 - In February of this year, Pepsi makes history once again, by launching one of themost ambitious entertainment sites on the World Wide Web. Pepsi World eventually surpassesall expectations, and becomes one of the most landed, and copied, sites in this new media,firmly establishing Pepsis presence on the Internet.1997 - In the early part of the year, Pepsi pushes into a new era with the unveiling ofthe GeneratioNext campaign. GeneratioNext is about everything that is young and fresh; acelebration of the creative spirit. It is about the kind of attitude that challenges the norm withnew ideas, at every step of the way.PepsiCo. announces that, effective October 6th, it will spin off its restaurant division toform Tricon Global Restaurants, Inc. Including Pizza Hut, Taco Bell, & KFC, it will be the largestrestaurant company in the world in units and second-largest in sales.1998 - Pepsi celebrates its 100th anniversary. PepsiCo. Chairman and CEORoger A. Enrico donates his salary to provide scholarships for childrenof PepsiCo employees. Pepsi introduces PepsiOne - the first one caloriedrink without that diet taste!2000 - Although Pepsi is a great place to work, Steven Truitt (aka struitt) takes his skills andhard work elsewhere (for more money of course!), therefore putting an end to his Pepsi page!For more information about Pepsi, choose a search engine and search for Pepsi or or - Pepsi invited to introduce new brand colaPEPSICO IN INDIAPepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture
  19. 19. www.GamesWala.commarketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCobought out its partners and ended the joint venture in 1994. Others claim that firstly Pepsi wasbanned from import in India, in 1970, for having refused to release the list of its ingredients andin 1993, the ban was lifted, with Pepsi arriving on the market shortly afterwards. Thesecontroversies are a reminder of "Indias sometimes acrimonious relationship with hugemultinational companies." Indeed, some argue that PepsiCo and The Coca-Cola Company have"been major targets in part because they are well-known foreign companies that draw plenty ofattention."In 2003, the Centre for Science and Environment (CSE), a non-governmental organization inNew Delhi, said aerated waters produced by soft drinks manufacturers in India, includingmultinational giants PepsiCo and The Coca-Cola Company, contained toxins, including lindane,DDT, malathion and chlorpyrifos — pesticides that can contribute to cancer, a breakdown of theimmune system and cause birth defects. Tested products included Coke, Pepsi, 7 Up, Mirinda,Fanta, Thums Up, Limca, and Sprite. CSE found that the Indian-produced Pepsis soft drinkproducts had 36 times the level of pesticide residues permitted under European Unionregulations; Coca Colas 30 times. CSE said it had tested the same products in the US and foundno such residues. However, this was the European standard for water, not for other drinks. Nolaw bans the presence of pesticides in drinks in India.The Coca-Cola Company and PepsiCo angrily denied allegations that their productsmanufactured in India contained toxin levels far above the norms permitted in the developedworld. But an Indian parliamentary committee, in 2004, backed up CSEs findings and agovernment-appointed committee, is now trying to develop the worlds first pesticidesstandards for soft drinks. Coke and PepsiCo opposed the move, arguing that lab tests arentreliable enough to detect minute traces of pesticides in complex drinks. On December 7, 2004,Indias Supreme Court ruled that both PepsiCo and competitor.The Coca-Cola Company must label all cans and bottles of the respective soft drinks with aconsumer warning after tests showed unacceptable levels of residual pesticides.[citation needed]Both companies continue to maintain that their products meet all international safety standardswithout yet implementing the Supreme Court ruling.[citation needed] As of 2005, The Coca-Cola Company and PepsiCo together hold 95% market share of soft-drink sales in India.
  20. 20. www.GamesWala.comPepsiCo has also been alleged[attribution needed] to practice "water piracy" due to its role inexploitation of ground water resources resulting in scarcity of drinking water for the natives ofPuthussery panchayat in the Palakkad district in Kerala, India. Local residents have beenpressuring the government to close down the PepsiCo unit in the village.In 2006, the CSE again found that soda drinks, including both Pepsi and Coca-Cola, had highlevels of pesticides in their drinks. Both PepsiCo and The Coca-Cola Company maintain thattheir drinks are safe for consumption and have published newspaper advertisements that saypesticide levels in their products are less than those in other foods such as tea, fruit and dairyproducts. In the Indian state of Kerala, sale and production of Pepsi-Cola, along with other softdrinks, has been banned. Five other Indian states have announced partial bans on the drinks inschools, colleges and hospitals.3.1 Highlights of PepsiCo in India:  World leader - Convenient Foods and Beverages  Revenues of more than $35 billion  More than 1,68,000 employees  Available in nearly 200 countries and territories  Group’s 37 bottling plants in India  16 are company owned and 21 are franchisee owned  Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company in 2001  Generates direct employment for more than 4000 people in India and indirect employment for 60,000 people Set up 8 greenfield sites in backward regions of different states. PepsiCo intends to expand its operations and is planning an investment of approximately US$ 150 million in the next two-three years.  Annual exports from India are worth over U.S$60 million  PepsiCo Founded in 1965 through the merger of Pepsi-Cola and Frito-Lay  PepsiCo entered India in 1989
  22. 22. A business needs to consider the products that it produces and the stage of theproduct life cycle that a product is at. Marketing strategies will vary according to the type ofproduct and its stage in the life cycle. In case of Pepsi, in the rural markets, the 300ml bottle and now days the newsmall or commonly known as the ―chota pepsi‖ is very much popular. The Pepsi Co. is eventhinking of introducing their new Pepsi-Aha, but presently they are concentrating more on thenormal pepsi as the rural market is a niche market. Pepsi is even successful in introducing thebig 1-1.5 liter PET bottles in the rural markets. These big bottles are very popular during bigfestivals and marriages.Price: Most businesses use a "cost plus" method for setting the prices of theirproducts. This involves determining unit production costs and then adding in a profit margin.However, many other factors are involved. Consider "perceived price" (what you thinkconsumers will be prepared to pay), demand elasticity (is it elastic or inelastic?), competitorspricing (can you afford to undercut their prices?), pricing objectives (what do you want toachieve Ð increased market share? increased profits? market leadership? etc.)Example 2 Perfume‫מ‬ How much does it cost to make?‫מ‬ Can businesses afford a "price war"?‫מ‬ Why is Coca Cola so successful? As far as the pricing goes, the 300 ml Pepsi bottle is priced at Rs. 10. But thecompany soon realized that this pricing worked in the urban markets but not in the ruralmarkets as in the rural markets, Pepsi is not a necessity but a luxury. They found out that peoplein the rural markets bought cold drinks only if there was some occasion. A price point of Rs 10for a 300 ml bottle has proved a major deterrent: it has kept away new consumers in the urbanand semi-urban pockets, and it has blanked out the far larger rural markets where annual percapita consumption is less than a bottle. So the Rs. 10 bottle was not that successful. But theirsales increased after introducing the ―chota Pepsi‖. This 200ml Pepsi was reasonably pricedbetween Rs.5- Rs.7. This was a major weapon for the expansion of the rural market. Pepsiexpects the small-size offering to account for 30 per cent of volumes this year compared with 18per cent last year. But there are other areas of concern — principally that the 200 ml offering
  23. 23. www.GamesWala.comshould not cannibalize 300 ml sales. In that case, there will be no market growth. That is whypricing could be crucial. Pepsi, for instance, has reckoned that giving consumers 33 per cent (100ml) less cola at 50 per cent of the price (Rs 5) is not a sustainable option and can, at best, be usedas an introductory offer. The conclusion is based on hard facts. Last year, the beverage giantstest-marketed 200 ml bottles at a price of Rs 5. Instead of growth, Pepsi discovered that 300 mldrinkers merely shifted to the 200 ml variant, the market remained stagnant and everyone lostmoney. The conclusion was clear: cutting prices does not necessarily expand the market.Place This generally refers to the physical locations of product sales as well as themethods of distribution. However, it is also considered to be the "place" or "position" in themarket of the product; refer to information below. Businesses need to make many decisionsrelated to "place": access, parking, competition, physical location etc. It’s the most important P in the cola wars — Place. And nothing evokes morepassion in Pepsi and Coke than distribution. Major innovation is underway on the distributionfront at Pepsi, pre-selling being the biggest of all. It’s been successfully test marketed inBangalore, Baroda and Coimbatore — and may soon roll out nationally. In case of the distribution network, there is no involvement of wholesalers inthe distribution of products. It is more like an agent network. The companies have divided thecountry into various regions and established a franchisee in each region. The franchisees havetheir own bottling plants and manage all the day-to-day operations. However, of late, the softdrinks companies have started setting up company owned bottling units have been acquiringsome of its franchise bottles. In the current system, the strike rate in the Delhi market is about 40 per cent,which can be improved to 80 per cent in the peak season, claims a franchise director. The resultfor Pepsi could be significantsavings. ―Colas service just 7.5-8 lakh accounts compared to the other FMCG players whoservice three times the number. Innovation in our distribution system will take us closer to the21 lakh figure,‖ says Vats, a franchise director.
  24. 24. Pepsi believes in direct distribution whereas Coke doesn’t. It mainlyconcentrates on dealers and most importantly cutting costs. ―There are plenty of innovationspossible in distribution that can cut costs‖, says a Pepsi official. For Pepsi, the rural market is a chosen thrust this year. It has targeted to reach 20to 28 per cent of the rural population in the first year of this operation. In the first stage, thecorporation is planning a massive roll out in villages with populations of 5000. To do thiseffectively, Pepsi is focusing on establishing a cold chain. The company has developed special freezers that allow its products to staychilled despite power cuts of three to four hours. It will also use traditional iceboxes to sell itsproduct in rural India. For the rural markets, Pepsi is looking at the wholesale route since thelogistics of direct distribution are too huge to handle in the interiors.Promotion This refers to the promotion of the product to the target market. This isachieved through a combination of: advertising: use of electronic and print media. The "reach"(how many people will see the advert), frequency (how many times will I advertise theproduct?) and impact of the advertising must also be evaluated. Personal selling: what happens in the "shop", contact between sales people and consumers orcustomers. Sales promotion: use of gimmicks and incentives e.g. competitions. Sponsorship andpromotional licensing: including specific products sold under license that promotes the business(e.g. football jumpers). Publicity or public relations: "adversarial" in local papers or specialpromotional materials. Due to the cola wars promotion, and advertising has always been an integralpart for both the cola cos: Pepsi and Coke. But for the first time perhaps in the history of colawars, the strategies of the two giant cos are diverging in India. Whether it’s business or productstrategies or the critical distribution game plan, the archrivals are taking roads that do not meet.Mr. Bakshi of Pepsi Co. is bringing a change in their distribution and marketing strategies. Nowdays where Coke is concentrating more on the 200ml bottle, Mr. Bakshi of Pepsi says ―The200ml bottle gets zero demand in the rural market.‖ He is concentrating on the 1.0 liter bottles ofPepsi. The Pepsi Co. had used an excellent marketing strategy here. During the Lagaan maniathey were distributing free tickets in the rural markets along with their 1.5-liter PET bottles.Pepsi made this 1.5-liter PET bottle very famous for their special festive occasions and marriage. Well the popularity of the product has also increased due to theiradvertisements or basically famous cricket and bollywood personalities endorsing this product.For instance the Sachin ―Aala re Aala‖ advertisement where even he is wearing a mask along
  25. 25. www.GamesWala.comwith those rural kids. Or you can even take the new Sachin and Amitabh Bachchanadvertisement where both of them say ― Yeh Dil Maange More!!!!!!!‖ Sachin has done manyadvertisements for Pepsi in the span of 10 years. Pepsi’s rural market advertisement- Pepsi has unveiled a major campaign inAndhra Pradesh, roping in top Telugu film star, Pawan Kalyan, even as the stars elder brother,Chiranjeevi, is into pushing Coca-Colas Thums Up. Pawan Kalyan, however, ruled out anyrivalry between him and his brother. Though he will sing Yeh Dil Maange more, his brother willsay Yeh Dil Maange no more. ―We have our lives and we have our own choices,‖ he said on thepossible in-house cola feud Pepsi also kicked off a rural campaign, spread over two months. DecoratedPepsi vans will roll out into market of the State. Every consumer drinking a Pepsi from thesevans will get to play a game and win prizes. These include Pawan Kalyan memorabilia, T-shirts,autographed posters and calendars. Explaining the reason for choosing Pawan Kalyan to endorse Pepsi, Mr. Rohit Ohri, DirectorHTA, Pepsis ad agency, said Pepsi and Pawan Kalyan were going to be an ideal combination.―Both are so youthful, energetic and fun-loving,‖ he said. Mr. Vijay Shanker Subramaniam,Vice-President (Marketing), Pepsi Foods Ltd, said the company was starting an ―aggressivecampaign‖ in Andhra Pradesh. Apart from the van operations, which were flagged off byPawan Kalyan, other campaigns have been lined up throughout the year. Later, Pawan Kalyan presented a cheque for Rs 5 lakh to Mr. Mehmood Ali, a mechanic withthe Andhra Pradesh State Road Transport Corporation for winning Pepsis Mera number ayegacampaign. Lastly, we all know that though Coke ranks 1st with 57 % of the market share (which includesThums –up too), Pepsi ranks 2nd with 43% of the market share. The Pepsi Co. has fought a bitterstruggle upwards starting from a zero market share. When Pepsi entered the market in 1989,they faced the daunting task of pacifying Indian swadeshi activists alone. Their trucks weresmashed and offices ransacked so as to dissuade them from entering the Indian market.Whereas when Coke entered (or re-entered) the Indian market in 1993, the situation had beensmoothed out by Pepsi already, and the atmosphere was extremely conducive to foreignmultinationals coming to India. Therefore, though Coke ranks 1st, it got this position only afterintroducing the Parle products who already had a 70% market share at that point of time.Presently Pepsi Co. is also concentrating on its other products like slice, mirinda and aquafina.Their next aim is to popularize their other products like sodas, then the new Pepsi Aha- theapple drink and beat coke to become the new market leader.Highlights of Indian FMCG sector:
  26. 26.  The Indian FMCG sector - the fourth largest sector in the economy –market size > $13.1 bn  Strong MNC presence  Well established distribution network  Intense competition between the organized and unorganized segments  200 million people expected to shift to processed and packaged food by 2010  Low operational cost.  India needs around $28 billion of investment in the food-processing industry.  FOOD AND BEVERAGES  Size of the Indian food processing industry- $ 65.6 billion, including $20.6 billion of value added products.  The health beverage industry -$230 million  Bread and biscuits at $1.7 billion  Chocolates at $73 million  Ice creams at $188 million.  The size of the semi-processed/ready-to-eat food segment - over $1.1 billion.  Three largest consumed categories of packaged foods are packed tea, biscuits and soft drinks.  Total soft drink market is estimated at 284 million crates a year or $1 billion.4. ORGANIZATIONAL STRUCTURE
  27. 27. Unit Manager Territory Development Marketing Development Manager ManagerAssistant Sales and Development Marketing Development Manager Coordinator Customer Executives Sales Trainees
  28. 28. www.GamesWala.com5. PEPSICO’S DISTRIBUTION SYSTEM PepsiCo’s Plant Indenting Primary Distributor Sale Secondary Sale Market / Retailers Consumer6. PEPSICO’S PRODUCTS
  29. 29. www.GamesWala.comFollowing are main products of Pepsi co(india) pvt limited.  Pepsi  Mirinda Orange  Mirinda Lemon  7 Up  Mountain Dew  Slice  Mirinda Sorbet (Limited Edition)  Pepsi Gold (Limited Edition)  Pepsi Diet  Lehar Soda  Aquafina  Tropicana  Gatorade  Lehar Namkeen  Lays  Kurkure  Uncle Chips  Cheetos7. RETAIL CHANNEL
  30. 30. Convenience Convenience channel includes different kiosks are which is convenient to general public. Channel Grocery Grocery channel includes different grocery shops . Channel Eatery Eatery channel includes different hotels, restaurants etc. Channel Sales ManagementRecruitment Procedure
  31. 31. www.GamesWala.comThere are three main line for recruitment of the Sales trainee of the company  Campus Interview  Consultant  Employee of the CompanyCampus Interviews: The company recruits students from various institutes of professionalcourses like MBA. The selection procedure includes GD & personal interviews followed by HRinterviews.Consultants: The company has tie-ups with professional consultants which provide a highprospector base for recruitment. The low level & the middle level employees are recruitedthrough this procedure.Employees of the company: Mostly the top level employees are selected from inside thecompany since the company can get loyal persons having the experience of the company’s workculture.TrainingThere are mainly two types of method for giving training to their employee  On the Job training and  Classroom training through lectures.EvaluationThere is a evaluation form in which different objectives of the company are written. At the endof the year, immediate officer just tally whether a particular objectives of which predetermineobjectives are achieved or not.Sales QuotaIn company, sales quota is decided on the basis of the sales of the last year. After consideringsales of the company, they analyze the growth of the market. On the basis of the sales and
  32. 32. www.GamesWala.comgrowth of the market, company decides sales quota for the next year. On the basis of the salesquota, target of each area is decided.Sales territory:Sales territory is decided on the basis of the no. of the distributor in the particular territory.Normally distributor has to cover 40 outlets per day per Route driver. In particular territory,routes are decided by the company. Like Route A Route B Route C. Route Driver (RD) of thecompany visits particular route twice in a week. Route Driver distributes products as perrequirements of the outlets.LOAD INS:  RA to return to the Warehouse after completing the days runs as per the Route Planner.  Requisition forms shall be updated with quantity of unsold stock and empties brought back to Warehouse and shall be submitted to checker.  Checker shall independently verify the stock brought in by the RA and record the physically verified Stock in the checkers report.  The Load in slip needs to be signed by the RA, Checker and the settlement clerk.  Settlement clerk / Warehouse manager to reconcile physical stock vis- a-vis stock as per Requisition Form.  Checker shall update the Gate Pass section of DSS with details of actual load ins and empties and submit to the ASDOS clerk.INVENTORY CONTROL – MANAGEMENT / ACCOUNTING OF EXPIREDSTOCKS  Warehouse Manager to ensure that expired stock is stored separately.
  33. 33.  Stock supervisor to co-ordinate with Warehouse manager and submit report of expired stock to TDM & SAM.  Details of all expired products needs to be sent to MU control Group as per Authority Matrix  MU control group to forward the same to BU for approvals.  Post approval from BU, expired stocks will be drained at warehouses in presence of PI employee.  Sales accounting Manager shall be the FPR for issuing instructions to warehouses for draining of stocks.MARKET AUDITMarket audit is carried out through deployment of external resources/ internal resources.Market Audit must be done for the following claims:  Card Discounts  Scheme Discounts  Spoke CommissionMarket Auditors to show the report to the CE and the TDM for their comments on the marketaudit done and obtain their signature on the report.At the end of every month, the market auditors must provide the report of each and everydistributor audited against the plan given at the beginning of the month to the UFM/SAM
  34. 34.“EACH DEALER SURVEY AND RELATIONSHIPMANAGEMENT WITH RETAILERS” SCOPE OF PROJECT1. Detailed study of the noncarbonated soft drinks industry in India2. Analysis of Pepsi’s performance against the other prevailing noncarbonatedSoft drinks brands in the country.3. Evaluate the performance of Agency performance and compare with the market sizein the area.4. Find out the problems in the area related to retailers.
  35. 35. www.GamesWala.comOBJECTIVES OF THE PROJECT 1- Survey of each dealer and retailer in the area allotted. 2- Create good relationship with Retailers. 3. Sell the products to the retailers who are not willing to buy Pepsi product. Research MethodologySAMPLINGBasic sampling TermSAMPLE AND SAMPLE SURVEY o A part of a population, or a subset from a set of units, which is provided by some process or other, usually by deliberate selection with the object of investigating the properties of the parent population or set. o Sample survey refers to the survey which is carried out using a sampling method, i.e. in which a portion only, and not the whole population, is surveyed. POPULATION o In statistical usage the term population is applied to any finite or infinite collection of individuals. o It has displaced the older term universe, which is derived from the universe of discourse of logic.
  36. 36. o It is practically synonymous with aggregate and does not necessarily refer to a collection of living organisms.SAMPLING UNIT o One of the units into which an aggregate is divided or regarded as divided for the purposes of sampling, each unit being regarded as individual and indivisible when the selection is made. o The definition of unit may be made on some natural basis, or on some arbitrary basis. o In the case of multi-stage sampling the units are different at different stages of sampling.SAMPLING FRAME o A list, map or other specification of the units, which constitute the available information relating to the population designated for a particular sampling scheme. o The nature of the frame exerts a considerable influence over the structure of a sample survey. o In multi-stage sampling it is sometimes possible to construct the frame at higher stages during the progress of the sample survey itself.SAMPLING DESIGN o A sample design is a definite plan for obtaining a sample from the sampling frame. o It refers to the technique or the procedure the researcher would adopt in selecting some sampling units from which inferences about the population is drawn.STATISTIC AND PARAMETER o A statistic is a characteristic of a sample.
  37. 37. o A parameter is a characteristic of a population. o To obtain the estimate of a parameter from a statistic constitutes the prime objective of sampling analysis.METHODOLOGY: DATA COLLECTION1) Primary Source · Retailers · Whole sellers2) Secondary Source · No Secondary Source RESEARCH INSTRUMENTS· Questionnaires. FAQs (Frequently asked questions) SAMPLING PLAN1) Sampling Unit: Who is to be surveyed?· Urban Retailers2) Sample Size: How many people to be surveyed?· All retailers in the area (of all age groups)
  38. 38. www.GamesWala.com3) Sampling Procedure:We have taken sample from following areas:1) Alambagh main2) Azad Nagar3) R.D.S.O4) Tedhi Pulia5) Geetapalli Total Number of Shops In The Area - 246 Warm Stock-15543 units Cold Stock in Refrigerator-6743 units Total Stock- 22286 UnitsRetailers’ preference (On the basis of the stocks they have in theshop)
  39. 39. www.GamesWala.comPepsi 65%Coca-cola 35%35% Pepsi coca-cola 65%Sign Board on Shop114 shops has signboards of any companyPepsi 81% (75 Shops)Coca-cola 19% (39 shops) 19% sign board pepsi 81% sign board coca- cola
  40. 40. www.GamesWala.comRefrigerator in Shop-80 shops has refrigeratorPepsi-73% (58shops)Coca-cola-27% (22 Shops) 27% Visi Pepsi Visi Coca-Cola 73%Warm Stock-Pepsi-59%(9170 units)Coca-Cola- 41%(6372 units) 41% warm Stock Pepsi 59% warm Stock Coca-ColaCold Stock-
  41. 41. www.GamesWala.comPepsi-55% (3708 units)Coca-Cola-45% ( 3034 units) 45% Cold Stock Pepsi 55% Cold Stock Coca-ColaThrough FAQs 1-The market position of the Pepsi is very strong in area allotted to me near about 75%softdrinks sold belongs to Pepsi. 2-Dew is the most selling brand in the area and at second position is mineral water. 3-The sale varies between 25000 to 50000 rupees daily on each route. There are three routes so total sales varies between 75000 to 150000 daily in the agency. 4-Retailers are not getting the benefits provided by the company because agency is more interested in selling to the whole sellers in bulk.
  42. 42. www.GamesWala.com5-when there is any scheme launched by the company agency sells allthe stock to the whole sellers for some benefit.7-Whole sellers are selling at low price than Agency because of thestock they bought in schemes.8-The work force is not well compensated their salary is verylittle(2500 Rs.)9-Acceseries are provided to the big shops only and they should be on the main road. 1. Monthly inspection should be done to find out the problems of customers. 2. Schemes should be provided to the customers not to the whole sellers. 3. Accessories should be provided on the basis of sale. 4. Check the selling of whole sellers at lower price than agency. 5. Agency should be more honest in providing benefits to retailers.
  43. 43. www.GamesWala.com6. Salary of sales force should be increased so they may not do fraud with retailers to earn more. 1- An inspection officer should be recruited who perform surprise inspection of the market and find out the problems. 2- Salary of the sales personals should be increased so they may not indulge in fraud to retailers. 3- The vehicles of the agency should be inspected so the delivery should be maintained. 4- The supply from the factory to the agency should be good especially the brands like DEW.
  44. 44. www.GamesWala.comMy Project gives me the true knowledge of customer relationship concepts & also helpedto understand the working environment of the Pepsico.The major thing, which I found in my whole project, is as follow:  The market share of Pepsico is more than Coke  The distribution channel of both company is very bad.  Advertising policy of Pepsi is better than Coca Cola.  Retailers are highly dissatisfied with salesmen behavior.  Company relation with retailers is credit based.  There are very less effort for promoting sales.  There are no direct communication between retailers and company.  There are no any route incharge.  Retailers are not aware about company scheme and product development.  Scheme is not distributed honestly among retailers.
  45. 45. BibliographyPhilip Kotler, Marketing Management, Twelfth Edition.Paul E. Green, Donald S. Tull and Gerald Albaum- Research For Marketing Decision,G.C. Berry , Marketing Research
  46. 46. Questionnaire Design visi warm stock cold Sign board Shop name Adress Ph. No. pci ccx pci ccx pci ccx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34