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Final Report

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Final Report

  1. 1. DESIGNING AND EXECUTING VARIOUS AVENUES THROUGH WHICH PEPSICO INDIA CAN DRIVE INCREMENTAL SALES THROUGH PO1 14BSPHH011206 PepsiCo India Holdings Pvt. Ltd. “The Belvedere”, H.No.6-3-891 & 892, 2 A REPORT ON DESIGNING AND EXECUTING VARIOUS AVENUES THROUGH WHICH PEPSICO INDIA CAN DRIVE INCREMENTAL SALES THROUGH PO1 By Rishu Gupta Enrollment No. 14BSPHH011206 PepsiCo India Holdings Pvt. Ltd. 891 & 892, 2nd Floor, Raj Bhavan Road, Somajiguda, Hyderabad Tele: +91 (0)40 30979999 1 | P a g e DESIGNING AND EXECUTING VARIOUS AVENUES THROUGH WHICH PEPSICO INDIA CAN DRIVE INCREMENTAL SALES THROUGH PO1 Floor, Raj Bhavan Road, Somajiguda, Hyderabad-500082
  2. 2. DESIGNING AND EXECUTING VARIOUS AVENUES THROUGH WHICH PEPSICO INDIA Enrollment No: PepsiCo India Holdings Pvt. Ltd. A Report submitted in partial fulfilment of the requirements of MBA Program of Mr. Aditya Ahuja Dr. Surjit Kumar Kar (Faculty Guide) Date of Submission: 20 A Constituent of the ICFAI Foundation for Higher Education (A Deemed to be University under section 3 of UGC Act, 1956) A REPORT ON DESIGNING AND EXECUTING VARIOUS AVENUES THROUGH WHICH PEPSICO INDIA CAN DRIVE INCREMENTAL SALES THROUGH PO1 By Rishu Gupta Enrollment No: 14BSPHH011206 PepsiCo India Holdings Pvt. Ltd. A Report submitted in partial fulfilment of the requirements of MBA Program of IBS Hyderabad Distribution List: Mr. Aditya Ahuja (Company Guide) Dr. Surjit Kumar Kar (Faculty Guide) Date of Submission: 20th May, 2015 A Constituent of the ICFAI Foundation for Higher Education (A Deemed to be University under section 3 of UGC Act, 1956) 2 | P a g e DESIGNING AND EXECUTING VARIOUS AVENUES THROUGH CAN DRIVE INCREMENTAL SALES A Report submitted in partial fulfilment of
  3. 3. This is to certify that this report is submitted in partial fulfilment of the requirement of program of IBS, Hyderabad. The report is submitted to my faculty guide Dr. Kar (Faculty Member, IBS-Hyderabad). This report document titled “ PepsiCo India can drive incremental sales through PO1” is made by Miss. Rishu Gupta part of the completion of the study at “ internship program under the Manager, PepsiCo) as the company guide. This report has been verified and authenticated by: Dr. Surjit Kumar Kar Faculty Guide IBS, Hyderabad. Authorization report is submitted in partial fulfilment of the requirement of program of IBS, Hyderabad. The report is submitted to my faculty guide Dr. Hyderabad). This report document titled “Designing and executing various avenues through which PepsiCo India can drive incremental sales through PO1” is made by Miss. Rishu Gupta part of the completion of the study at “PepsiCo India Holdings Pvt. Ltd.” during her the guidance of Mr. Aditya Ahuja (Market the company guide. This report has been verified and authenticated by: 3 | P a g e report is submitted in partial fulfilment of the requirement of MBA program of IBS, Hyderabad. The report is submitted to my faculty guide Dr. Surjit Kumar Designing and executing various avenues through which PepsiCo India can drive incremental sales through PO1” is made by Miss. Rishu Gupta as a PepsiCo India Holdings Pvt. Ltd.” during her Mr. Aditya Ahuja (Market Development
  4. 4. ACKNOWLEDGEMENT “Too often we are so preoccupied with the An understanding study like this is never an outcome of the efforts of a single person. The satiation and euphoria that accompany the successful completion of this project would be incomplete without the mention of the people who made it possible. I would like to express a word of thanks to all those whose sincere advice, and information made my internship period educative and informative. I would like to take the opportunity to thank and Company guide Mr Aditya Ahuja (Market Development Manager) me this wonderful opportunity to work with PepsiCo India Holding and to gain valuable learning experience from it. I am extr sharing his vision, experiences & supervision guided me at every stage of the project. I am greatly indebted to my faculty guide continuous guidance, insights and encouragement which acted as a continuous source of support for me during this entire period. Every endeavour requires an effort or contribution from many people and this is no different. I wish to express my sincere thanks to Miss Harika Chappa (Management Trainee, Mr Pavan Kumar Nomula ( Reddy who in spite of their busy schedule has co their valuable contribution and guidance have been certainly indispensible for my project work. Last but not the least Customer Executives and the PSRs (Presales Representatives) for their cooperation and assistance during the course of my project. I hope that I can build upon the experience and knowledge th valuable contribution towards this industry in coming future. ACKNOWLEDGEMENT “Too often we are so preoccupied with the destination, we forget the guiding light.” An understanding study like this is never an outcome of the efforts of a single person. The satiation and euphoria that accompany the successful completion of this project would be the mention of the people who made it possible. I would like to express a word of thanks to all those whose sincere advice, and information made my internship period educative and informative. I would like to take the opportunity to thank and express my deep sense of gratitude to my Mr Aditya Ahuja (Market Development Manager) me this wonderful opportunity to work with PepsiCo India Holding and to gain valuable learning experience from it. I am extremely grateful to him for continuously sharing his vision, experiences & for his unconditional support. His supervision guided me at every stage of the project. I am greatly indebted to my faculty guide Dr. Surjit Kumar Kar continuous guidance, insights and encouragement which acted as a continuous source of support for me during this entire period. Every endeavour requires an effort or contribution from many people and this is no ess my sincere thanks to Miss Harika Chappa (Management Mr Pavan Kumar Nomula (Market Development Executive) and Mr. Srinivas Reddy who in spite of their busy schedule has co-operated with me continuously and indeed, luable contribution and guidance have been certainly indispensible for my project Last but not the least I owe my whole hearted thanks and appreciation to all the Customer Executives and the PSRs (Presales Representatives) for their cooperation and ssistance during the course of my project. I hope that I can build upon the experience and knowledge that I have gained valuable contribution towards this industry in coming future. 4 | P a g e destination, we forget the guiding light.” – Anonymous An understanding study like this is never an outcome of the efforts of a single person. The satiation and euphoria that accompany the successful completion of this project would be the mention of the people who made it possible. I would like to express a word of thanks to all those whose sincere advice, and information made my internship express my deep sense of gratitude to my Mr Aditya Ahuja (Market Development Manager) for giving me this wonderful opportunity to work with PepsiCo India Holding and to gain emely grateful to him for continuously his unconditional support. His patience and for providing me continuous guidance, insights and encouragement which acted as a continuous source of Every endeavour requires an effort or contribution from many people and this is no ess my sincere thanks to Miss Harika Chappa (Management Market Development Executive) and Mr. Srinivas operated with me continuously and indeed, luable contribution and guidance have been certainly indispensible for my project I owe my whole hearted thanks and appreciation to all the Customer Executives and the PSRs (Presales Representatives) for their cooperation and at I have gained and make a
  5. 5. PepsiCo Hyderabad is the only unit across world chos begins with the unique ability to connect with consumers. According to an internal study of the company, about 60 percent of the time people consume a salty snack along with a refreshment beverage where as only 30 perce snack and also buy a refreshment beverage. So PO1 is an initiative to leverage the existing gap of 30 percent which we can capitalize on the leading positions of our iconic brands in both categories to drive the globally, this idea is more powerful than ever. PepsiCo Hyderabad has initiated a small pilot in which we are offering PO1 combos in certain bakery outlets and trying to understand its impact on tr I have designed certain collaterals and tied up with some outlets to ensure the success of the initiative. The outlets have been chosen on the basis of Sale and whether they are Mix or Exclusive. I will be tracking the sales of the outlet and design a Questionnaire to see the trend and gather learning which can help the company to expand it to the rest of the unit. ABSTRACT PepsiCo Hyderabad is the only unit across world chosen for PO1 project. begins with the unique ability to connect with consumers. According to an internal study of the company, about 60 percent of the time people consume a salty snack along with a refreshment beverage where as only 30 percent of the time it is when people buy a salty snack and also buy a refreshment beverage. So PO1 is an initiative to leverage the existing gap of 30 percent which we can capitalize on the leading positions of our iconic brands in purchase of our snacks and beverages together. As we grow globally, this idea is more powerful than ever. PepsiCo Hyderabad has initiated a small pilot in which we are offering PO1 combos in certain bakery outlets and trying to understand its impact on trade, shopper and the consumer. I have designed certain collaterals and tied up with some outlets to ensure the success of the initiative. The outlets have been chosen on the basis of Sale and whether they are Mix or of the outlet and design a Questionnaire to see the trend and gather learning which can help the company to expand it to the rest of the unit. 5 | P a g e en for PO1 project. The Power of One begins with the unique ability to connect with consumers. According to an internal study of the company, about 60 percent of the time people consume a salty snack along with a nt of the time it is when people buy a salty snack and also buy a refreshment beverage. So PO1 is an initiative to leverage the existing gap of 30 percent which we can capitalize on the leading positions of our iconic brands in purchase of our snacks and beverages together. As we grow PepsiCo Hyderabad has initiated a small pilot in which we are offering PO1 combos in ade, shopper and the consumer. I have designed certain collaterals and tied up with some outlets to ensure the success of the initiative. The outlets have been chosen on the basis of Sale and whether they are Mix or of the outlet and design a Questionnaire to see the trend and gather
  6. 6. I. Authorization II. Acknowledgement III. Abstract 1. Introduction 1.1 Background 1.2 Objective 1.3 Scope of the Study 1.4 Limitations 1.5 Methodology 2. Industry Analysis 2.1 Categories of Beverage 2.2 Categories of Snack 3. Company Analysis 3.1 Company Overview 3.2 Portfolio of PepsiCo 3.3 The Joint Venture 4. The Distribution Process 4.1 The different channels of PepsiCo 4.2 8 steps of a Sales Call 4.3 The Market Model 5. Traditional Trade 5.1 Modus Operandi 5.2 Classification of Routes 5.3 Customer Executive 5.4 Pre Sales Representative 5.5 SAMNA Table of Content Authorization Acknowledgement Introduction Scope of the Study Methodology Industry Analysis Categories of Beverage Categories of Snack Company Analysis Company Overview PepsiCo The Joint Venture The Distribution Process The different channels of PepsiCo 8 steps of a Sales Call The Market Model Traditional Trade Modus Operandi Classification of Routes Customer Executive Pre Sales Representative 6 | P a g e 3 4 5 10 - 12 10 10 11 11 12 13 - 15 14 15 16 - 27 16 17 26 27 - 31 28 28 31 32 - 36 32 32 32 32 33
  7. 7. 5.6 Pricing structure and Margin structure of beverage 5.7 Pricing structure and Margin structure of food SKU’s 6. Organised Trade 6.1 On Premise 6.2 Modern Trade 7. Difference between the different channels 8. Project specific Analysis 8.1 PO1 8.2 Background of the project 8.3 Considerations for selecting the Sample outlets 8.4 Survey to understand the choice of Combo 8.5 Designing of the Perfect combo 8.6 Designing of the Collaterals 8.7 Execution Phase 8.8 Spot Testing 8.9 Sales Analysis 9 Recommendations and Suggestions 10 Annexure 11 References 12 Glossary Pricing structure and Margin structure of beverage Pricing structure and Margin structure of food SKU’s Organised Trade Modern Trade Difference between the different channels Project specific Analysis Background of the project Considerations for selecting the Sample outlets Survey to understand the choice of Combo Designing of the Perfect combo Designing of the Collaterals Execution Phase Spot Testing Sales Analysis Recommendations and Suggestions 7 | P a g e 34 Pricing structure and Margin structure of food SKU’s 36 39 - 40 39 40 41 42 - 64 42 43 43 46 51 53 57 58 64 65 66 69 70
  8. 8. Figure 1 Categories of Beverages Figure 2 Categories of Snack Figure 3 PepsiCo Overview Figure 4 Different Channels of PepsiCo Figure 5 Planogram of PepsiCo Figure 6 Market Model Figure 7 PSR with SAMNA Figure 8 Categories of On Figure 9 Categories of Modern Trade Figure 10 Details of the 30 Sample Bakery Outlets Figure 11 POS Message Figure 12 Outlets with Banner Figure 13 Outlets with Tent Cards on Table Top Figure 14 Outlets with Live Display Figure 15 Sample of Customer detail form and Manual Bill Figure 16 Tally record during Pilot testing Figure 17 Spot testing in a Small Outlet Figure 18 Spot Testing in a Big Outlet List of Figures Categories of Beverages Categories of Snack PepsiCo Overview Different Channels of PepsiCo Planogram of PepsiCo Market Model PSR with SAMNA Categories of On - Premise Categories of Modern Trade Details of the 30 Sample Bakery Outlets POS Message Outlets with Banner Outlets with Tent Cards on Table Top Outlets with Live Display Sample of Customer detail form and Manual Bill Tally record during Pilot testing Spot testing in a Small Outlet Spot Testing in a Big Outlet 8 | P a g e 14 15 16 28 30 31 33 39 40 45 55 55 56 56 56 58 59 60
  9. 9. 1. INTRODUCTION 1.1. BACKGROUND The Project comprises of designing and executing various avenues through which PepsiCo India can drive incremental sales through PO1 that is integration of snacks and beverages, with a major focus on bakery channel The integration of drink and Snack is very much like Bundling of the product Selling. This activity of cross selling and behaviour and has traditionally been used to increase sales and consumer about the company’s brand and product. adopted by the companies for selling an additional product to an existing customer Selling strategy is employed by companies in different industries and of markets. 1.2. OBJECTIVE  Study the Master contribution to the company  Design different combos for the outlet on a customized basis.  To develop different marketing tools for the advertisement in the chosen outlets.  To monitor the sales, measure the outcome and take corrective measures there by. INTRODUCTION BACKGROUND The Project comprises of designing and executing various avenues through which PepsiCo India can drive incremental sales through PO1 that is integration of snacks and focus on bakery channel in the market of Hyderabad The integration of drink and Snack is very much like Bundling of the product cross selling the product aims at influencing consumer’s attitude r and has traditionally been used to increase sales and consumer about the company’s brand and product. Cross selling is a common marketing strategy adopted by the companies for selling an additional product to an existing customer strategy is employed by companies in different industries and Master data and prioritize the outlets on the basis of their business contribution to the company for the pilot testing. Design different combos for the outlet on a customized basis. different marketing tools for the advertisement in the chosen To monitor the sales, measure the outcome and take corrective measures there 9 | P a g e The Project comprises of designing and executing various avenues through which PepsiCo India can drive incremental sales through PO1 that is integration of snacks and in the market of Hyderabad. The integration of drink and Snack is very much like Bundling of the product and Cross the product aims at influencing consumer’s attitude r and has traditionally been used to increase sales and consumers awareness is a common marketing strategy adopted by the companies for selling an additional product to an existing customer. Cross strategy is employed by companies in different industries and on different kinds data and prioritize the outlets on the basis of their business Design different combos for the outlet on a customized basis. different marketing tools for the advertisement in the chosen To monitor the sales, measure the outcome and take corrective measures there
  10. 10. 1.3. SCOPE OF THE It broadly contains certain avenues through which PepsiCo India Po1, and design collaterals which is best suited for combo packs The aim of this project is to find out the ways or the avenues through which PepsiCo India can increment its sales through Power of One. Majorly it focuses on the factors tha the sales parameters and also understand the impact of combos on the trade, shopper and the consumer. Understanding of the trend through tracking the sales of combo Questionnaire in order to help the company to expand to concern. 1.4. LIMITATIONS Though I have put in all my earnest efforts in project and I have received helpful and cooperative in this regard. I would still like to under which the study was conducted.  Time was one of the major constraints that affected the study  Not familiar with the local  The Retailer’s survey covers only few parts of Hyderabad analysis or regional analysis from any other part may vary with these findings.  Tracking the Sale was one of the major challenge as we coul beverage and the food packet as the beverage need to be charged on the cooler. SCOPE OF THE STUDY certain avenues through which PepsiCo India can increment design collaterals which is best suited for combo packs The aim of this project is to find out the ways or the avenues through which PepsiCo India can increment its sales through Power of One. Majorly it focuses on the factors tha the sales parameters and also understand the impact of combos on the trade, shopper and the Understanding of the trend through tracking the sales of combos and also maintaining a Questionnaire in order to help the company to expand to the rest of the Unit is the main LIMITATIONS Though I have put in all my earnest efforts in the attempt to penetrate deep into the received a lot of support from the company employees who were helpful and cooperative in this regard. I would still like to list down certain limitations under which the study was conducted. Time was one of the major constraints that affected the study Not familiar with the local language was one of the biggest challenge. The Retailer’s survey covers only few parts of Hyderabad, so the national analysis or regional analysis from any other part may vary with these findings. Tracking the Sale was one of the major challenge as we coul beverage and the food packet as the beverage need to be charged on the 10 | P a g e can increment sales through The aim of this project is to find out the ways or the avenues through which PepsiCo India can increment its sales through Power of One. Majorly it focuses on the factors that influence the sales parameters and also understand the impact of combos on the trade, shopper and the s and also maintaining a the rest of the Unit is the main attempt to penetrate deep into the employees who were very list down certain limitations Time was one of the major constraints that affected the study. language was one of the biggest challenge. , so the national analysis or regional analysis from any other part may vary with these findings. Tracking the Sale was one of the major challenge as we could not Bundle the beverage and the food packet as the beverage need to be charged on the
  11. 11. 1.5. METHODOLOGY The complete study of the market is based on the primary data i.e. the total business made by the outlet by referring to the master datab SKU details at each store by maintaining excel sheets, followed by d collaterals for combo packs based on the maximum demanded SKU. the combos the selling story, outlet is to be designed. Once the pilot is imple maintained to record the combo sales by the end of the pilot. A ceiling of 30% of the total sales is kept for the combos in order to control the pilot. The nature of this type of research is explorato and collected the various required details from the store observed the customers and t influencing their sales. Parallel to it I was also for the outlet. I was also asked to notice the SKU’S with maximum sale in a particular outlet and along with it design different marketing tools for the particular outlet. In the starting days I tried to understand the operations in order to execute the pilot efficiently and effectively. into 2 parts. Firstly ,I went to the market and learning from the CE’s and PSR’s about various benchmarks on execution of Traditional trade (TT) .This period was the longest of the Beverages industry and the Food industry. Here, I visits to the outlets. In the second phase I was introduced to a whole new dimension of the business called Organised Trade (OT). Organised trad chains, Malls and 5 star hotels .There is a stark contrast in the way business is conducted in both TT and MT. METHODOLOGY The complete study of the market is based on the primary data i.e. the total business made by the outlet by referring to the master database of the company and collecting the sales and SKU details at each store by maintaining excel sheets, followed by d combo packs based on the maximum demanded SKU. After the designing of the combos the selling story, the communication and advertisement material for the chosen . Once the pilot is implemented, a manual bill with the outlet is the combo sales by the end of the pilot. A ceiling of 30% of the total the combos in order to control the pilot. The nature of this type of research is exploratory. For this purpose, I visited different stores and collected the various required details from the store owners. In the initial weeks I observed the customers and their buying behaviour; analyzed the stores and the fac influencing their sales. Parallel to it I was also studying and designing on various collaterals also asked to notice the SKU’S with maximum sale in a particular outlet ong with it design different marketing tools for the particular outlet. tried to understand the functioning of the Customer Executives in order to execute the pilot efficiently and effectively. This phase was d went to the market and assessed the situation ,got the learning from the CE’s and PSR’s about various benchmarks on execution of Traditional trade (TT) .This period was the longest and the most edifying ,giving me the complete picture and the Food industry. Here, I collected primary data from the introduced to a whole new dimension of the business called Organised Trade (OT). Organised trade meant dealing with big retailers like Super market chains, Malls and 5 star hotels .There is a stark contrast in the way business is conducted in 11 | P a g e The complete study of the market is based on the primary data i.e. the total business made by ase of the company and collecting the sales and SKU details at each store by maintaining excel sheets, followed by designing different After the designing of communication and advertisement material for the chosen bill with the outlet is the combo sales by the end of the pilot. A ceiling of 30% of the total visited different stores owners. In the initial weeks I analyzed the stores and the factors ing on various collaterals also asked to notice the SKU’S with maximum sale in a particular outlet functioning of the Customer Executives and their This phase was divided assessed the situation ,got the preliminary learning from the CE’s and PSR’s about various benchmarks on execution of Traditional the complete picture collected primary data from the introduced to a whole new dimension of the business called e meant dealing with big retailers like Super market chains, Malls and 5 star hotels .There is a stark contrast in the way business is conducted in
  12. 12. 2. INDUSTRY ANALYSIS If we consider FMCG industry, selling a soap bar is completely of Pepsi. The difference lies in how the particular product is sold and more importantly, how it is distributed. So if we talk about food or beverage industry in particular it comes with an expiry date which ranges from other FMCG products have expiry date in years. Food and beverage products need extra careful handling. A slight damage in packaging is enough for their rejection. Especially in beverage industry where drinks are sold in glass bottles, proper handling is very important due to fragile nature of the glass bottles. In recent time’s food and beverage industry has undergone large scale transformation, huge advertisement spending, awareness campaign about the products and brands. But the key factors to success remains still the same as distribution and advertising. All the above factors have made sales and distribution of food and beverages products very different from other FMC sales person, the primary responsibility is to ensure optimal re among the retailers in the assigned area. Simply, they must ensure that all the brand all the products manufactured/marketed by the em outlets as possible in their area. If stock exhaustion happens in any of the outlets, company is likely to lose end buy a product - he is likely to switch, and even if he is not inclined to do so, the retailer will make them switch as he hates losing a customer to his competitor down the street. This automatically means distributor should be stocked in sufficient quantity in packs, allowing for seasonal fluctuations and production vagaries. Majority of sales in beverage industry comes from Soft drinks part and parcel of the Indian Indian soft drinks are enjoyed by one and all in the country. Especially after the influx of a number of fast food joints in India soft drinks have gained more popularity. Consumer lifestyle has chang almost every meal that one has outside his/her home. The soft drink industry in India is categorized on the basis of carbonated drinks. The carbonated drinks include flavours like cola, lemon and orange and the non carbonated drinks segment includes mostly mango flavours along with fruit INDUSTRY ANALYSIS If we consider FMCG industry, selling a soap bar is completely different than selling a bottle of Pepsi. The difference lies in how the particular product is sold and more importantly, how it is distributed. So if we talk about food or beverage industry in particular it comes with an expiry date which ranges from few days to few months (3 to 8 months), where as other FMCG products have expiry date in years. Food and beverage products need extra careful handling. A slight damage in packaging is enough for their rejection. Especially in ry where drinks are sold in glass bottles, proper handling is very important due to fragile nature of the glass bottles. In recent time’s food and beverage industry has undergone large scale transformation, huge advertisement spending, awareness campaign about the products and brands. But the key factors to success remains still the same as distribution and advertising. All the above factors have made sales and distribution of food and beverages products very different from other FMC sales person, the primary responsibility is to ensure optimal re-distribution of the product among the retailers in the assigned area. Simply, they must ensure that all the brand all the products manufactured/marketed by the employer are available in as many retail outlets as possible in their area. If stock exhaustion happens in any of the outlets, company is likely to lose end-consumers. The Indian consumer rarely marches a mile to s likely to switch, and even if he is not inclined to do so, the retailer will make them switch as he hates losing a customer to his competitor down the street. This automatically means distributor should be stocked in sufficient quantity in packs, allowing for seasonal fluctuations and production vagaries. Majority of sales in beverage industry comes from Soft drinks which has nowadays f the Indian lifestyle. Be it children, the college kid or the mid Indian soft drinks are enjoyed by one and all in the country. Especially after the influx of a number of fast food joints in India soft drinks have gained more popularity. Consumer lifestyle has changed significantly and now day’s soft drinks are enjoyed with almost every meal that one has outside his/her home. The soft drink industry in India is categorized on the basis of carbonated . The carbonated drinks include flavours like cola, lemon and orange and the non carbonated drinks segment includes mostly mango flavours along with fruit 12 | P a g e different than selling a bottle of Pepsi. The difference lies in how the particular product is sold and more importantly, how it is distributed. So if we talk about food or beverage industry in particular it comes with an few days to few months (3 to 8 months), where as other FMCG products have expiry date in years. Food and beverage products need extra careful handling. A slight damage in packaging is enough for their rejection. Especially in ry where drinks are sold in glass bottles, proper handling is very important due to fragile nature of the glass bottles. In recent time’s food and beverage industry has undergone large scale transformation, huge advertisement spending, awareness campaign about the products and brands. But the key factors to success remains still the same as distribution and advertising. All the above factors have made sales and distribution of food and beverages products very different from other FMCG products. So for distribution of the product among the retailers in the assigned area. Simply, they must ensure that all the brand-packs of ployer are available in as many retail outlets as possible in their area. If stock exhaustion happens in any of the outlets, consumers. The Indian consumer rarely marches a mile to s likely to switch, and even if he is not inclined to do so, the retailer will make them switch as he hates losing a customer to his competitor down the street. This automatically means distributor should be stocked in sufficient quantity in all brand- which has nowadays become ge kid or the middle aged Indian soft drinks are enjoyed by one and all in the country. Especially after the influx of a number of fast food joints in India soft drinks have gained more popularity. t drinks are enjoyed with carbonated and non . The carbonated drinks include flavours like cola, lemon and orange and the non carbonated drinks segment includes mostly mango flavours along with fruit
  13. 13. juices and squashes. The Top Soft Drink Brands in India are Coca Up. The other popular soft drink brands in India include Mirinda, 7Up, F etc. In order to cater to all the segments of the society these top soft drink brands are available in numerous sizes starting from the age old 300 ml ml ones and also the 500 ml and 1liter plastic bottles. Soft drinks are available in almost every size desired by the consumer. Soft drinks do not only rule the urban markets they have successfully managed to pene ml are higher than the PET bottles. Market is changing continuously due to consumer taste and preference and also due to rise of competition by many new brands and local beverage manufacturers. 2.1. Categories of Beverage Figure 1: Categories of Beverage LRB (Liquid Refreshmnet Beverage) juices and squashes. The Top Soft Drink Brands in India are Coca-Cola, Pepsi and Thumps Up. The other popular soft drink brands in India include Mirinda, 7Up, F etc. In order to cater to all the segments of the society these top soft drink brands are available in numerous sizes starting from the age old 300 ml glass bottles to the 200 ml ones and also the 500 ml and 1liter plastic bottles. Soft drinks are available in almost consumer. Soft drinks do not only rule the urban markets they have successfully managed to penetrate the rural areas as well where sale of 200 ml and 300 ml are higher than the PET bottles. Market is changing continuously due to consumer taste and preference and also due to rise of competition by many new brands and local beverage manufacturers. Categories of Beverage Figure 1: Categories of Beverage BSD (Bottled Soft Drink) CSD (Carbonated Soft Drink) JBD (Juice Based Drink)Juices Water 13 | P a g e Cola, Pepsi and Thumps Up. The other popular soft drink brands in India include Mirinda, 7Up, Fanta, Sprite, Limca etc. In order to cater to all the segments of the society these top soft drink brands are glass bottles to the 200 ml ones and also the 500 ml and 1liter plastic bottles. Soft drinks are available in almost consumer. Soft drinks do not only rule the urban markets they trate the rural areas as well where sale of 200 ml and 300 Market is changing continuously due to consumer taste and preference and also due to rise of Cola Lemon Orange
  14. 14. 2.2. Categories of Snacks POTATO CHIPS Categories of Snacks Figure 2: Categories of Snack SNACKS COLLET (Kurkure) EXTRUDED (Cheetos) TRADITIONAL 14 | P a g e TRADITIONAL OTHERS
  15. 15. 3. COMPANY ANALYSIS PEPSICO INDIA PepsiCo entered India in 1989 and has grown to become one of the largest food and beverage businesses in India. PepsiCo India’s diverse portfolio includes iconic brands like Pepsi, Lay’s, Kurkure, Tropicana 100%, Gatorade and Quaker. Lay, is the leader in the branded salty snack market. 3.1. COMPANY OVERVIEW Name PepsiCo Industries Served Beverages, Food Indian Headquarters Gurgaon, Haryana Facilities 38 bottling plants and 3 food plants Employees Presently employs 6400 people and provides indirect employment almost 2 Main Competitor Coca- Mission To be the world's premier consumer Products Company focused on convenient foods and Vision To continually improve all aspects of the world in which we operate environmental, social, economic today COMPANY ANALYSIS PepsiCo entered India in 1989 and has grown to become one of the largest food and beverage businesses in India. PepsiCo India’s diverse portfolio includes iconic brands like Pepsi, Lay’s, Kurkure, Tropicana 100%, Gatorade and Quaker. PepsiCo’s foods compan Lay, is the leader in the branded salty snack market. COMPANY OVERVIEW PepsiCo Beverages, Food Gurgaon, Haryana 38 bottling plants and 3 food plants Presently employs 6400 people and provides indirect employment almost 200,000 people -Cola Company, Parle and local brands To be the world's premier consumer Products Company focused on convenient foods and beverages. To continually improve all aspects of the world in which we operate environmental, social, economic – creating a better tomorrow than today Figure 3: PepsiCo Overview 15 | P a g e PepsiCo entered India in 1989 and has grown to become one of the largest food and beverage businesses in India. PepsiCo India’s diverse portfolio includes iconic brands like Pepsi, PepsiCo’s foods company, Frito- Presently employs 6400 people and provides indirect employment to To be the world's premier consumer Products Company focused on To continually improve all aspects of the world in which we operate – creating a better tomorrow than
  16. 16. 3.2. THE PORTFOLIO OF PEPSICO The diverse portfolio of brands include the flagship cola brand Mirinda, Mountain Dew, Nimbooz, Slice fruit juices, Tropicana brand with their delight and premium fruit juices ranges in various flavours, Aquafina packaged drinking Lehar Soda. The Big 3 rightly named by PepsiCo are Pepsi, 7up and Mirinda because of high volumes of sales. Besides all this, PepsiCo is in charge of the marketing of Lipton tea and Himalayan water. PepsiCo is also a dominant player in th company Frito-Lay is the leader in the branded potato chip market. It manufactures Lay's Potato Chips, Cheetos, Uncle Chips, traditional snacks under the Kurkure and Lehar brands and also Quaker Oats. PEPSI One of the largest selling soft drink brand in India which is more than hundred-year-old which is loved by 200 million people worldwide. Flagship brand of PepsiCo which has become an iconic youth brand as it promotes its brand with help of Indian youth very fast. Segment For all people seeking a soft drink for regular occasions, parties Target group All age groups l Positioning An iconic youth brand USP The Tagline Live it Abhi THE PORTFOLIO OF PEPSICO The diverse portfolio of brands include the flagship cola brand – Pepsi, Diet Pepsi, 7Up, Mirinda, Mountain Dew, Nimbooz, Slice fruit juices, Tropicana brand with their delight and premium fruit juices ranges in various flavours, Aquafina packaged drinking The Big 3 rightly named by PepsiCo are Pepsi, 7up and Mirinda because of high volumes of Besides all this, PepsiCo is in charge of the marketing of Lipton tea and Himalayan water. PepsiCo is also a dominant player in the snack food segment in India. PepsiCo's snack food Lay is the leader in the branded potato chip market. It manufactures Lay's Potato Chips, Cheetos, Uncle Chips, traditional snacks under the Kurkure and Lehar brands One of the largest selling soft drink brand in India which is more than old which is loved by 200 million people worldwide. Flagship brand of PepsiCo which has become an iconic youth brand as it promotes its brand with help of famous celebrities which can connect to For all people seeking a soft drink for regular occasions, parties All age groups lower, middle and upper class people An iconic youth brand The single largest selling soft drink brand Live it Abhi 16 | P a g e Pepsi, Diet Pepsi, 7Up, Mirinda, Mountain Dew, Nimbooz, Slice fruit juices, Tropicana brand with their delight and premium fruit juices ranges in various flavours, Aquafina packaged drinking water; Gatorade, The Big 3 rightly named by PepsiCo are Pepsi, 7up and Mirinda because of high volumes of Besides all this, PepsiCo is in charge of the marketing of Lipton tea and Himalayan water. e snack food segment in India. PepsiCo's snack food Lay is the leader in the branded potato chip market. It manufactures Lay's Potato Chips, Cheetos, Uncle Chips, traditional snacks under the Kurkure and Lehar brands One of the largest selling soft drink brand in India which is more than old which is loved by 200 million people worldwide. Flagship brand of PepsiCo which has become an iconic youth brand as it famous celebrities which can connect to For all people seeking a soft drink for regular occasions, ower, middle and upper class people
  17. 17. 7UP 7UP was launched in India in 1990 and its international mascot Fido Dido was used for advertising in 1992 to position the brand as a cool drink for youngsters. 7up initially started it’s marketing centred around the famous mascot DIDO but then with time dropped the famous mascot and began to concentrate on the lemon factor and came up with a new tagline " The lemon drink' . Segment For all people seeking a soft drink for regular occasions, parties Target Group All age Positioning The cool Lemon Drink (Coolness factor) USP Refreshing clear drink with a natural lemon and lime flavo Tagline Dil Bole I Feel UP MIRINDA Mirinda is a brand of soft drink originally created in Spain which is owned by PepsiCo since 1970, and was launched in India in 1991.Mirinda has always stood for great encouraged one to be more carefree, spontaneous and playful and occasionally give in to an impulse of uninhibited fun Segment For all people seeking a soft drink for regular occasions, parties Target Group All age groups Lower, middle and upper class people Positioning The carefree, spontaneous and playful soft drink USP Orange based aerated soft drink Tagline Pagal Panti bhi Zarrori Hai 7UP was launched in India in 1990 and its international mascot Fido Dido was used for advertising in 1992 to position the brand as a cool drink for youngsters. 7up initially started it’s marketing centred around the famous mascot FIDO DIDO but then with time dropped the famous mascot and began to concentrate on the lemon factor and came up with a new For all people seeking a soft drink for regular occasions, parties All age groups lower, middle and upper class people The cool Lemon Drink (Coolness factor) Refreshing clear drink with a natural lemon and lime flavo Dil Bole I Feel UP is a brand of soft drink originally created in Spain which is owned by PepsiCo since 1970, and was launched in India in 1991.Mirinda has always stood for great bold taste that encouraged one to be more carefree, spontaneous ionally give in to an For all people seeking a soft drink for regular occasions, parties All age groups Lower, middle and upper class people The carefree, spontaneous and playful soft drink Orange based aerated soft drink Pagal Panti bhi Zarrori Hai 17 | P a g e For all people seeking a soft drink for regular occasions, ower, middle and upper class people Refreshing clear drink with a natural lemon and lime flavour is a brand of soft drink originally created in Spain which is owned by PepsiCo since For all people seeking a soft drink for regular occasions, parties All age groups Lower, middle and upper class people
  18. 18. Mountain Dew Original formula was invented in Virginia and drink was first sold in Tennessee in 1948. It was launched in India in 2003 campaign ‘Cheetah Bhi Peeta Hai’. always tried to portray bold, adventurous and rebellious spirit of youth by showing high adrenaline advertising and its connection to outdoor adventure. Segment Aerated beverages and soft Target Group Young individuals from the upper Positioning Celebrating the bold, adventurous and rebellious spirit of youth USP High energy Extreme citrus taste Tagline Darr ke Aage Jeet hai Slice Slice was launched in India in 1993 as a refreshing mango drink and to become a leading player in the category. While other players have portrayed the mango as a simple and innocent fruit, Slice celebrates the sheer indulgence and sensuality involved in consuming a mango portfolio. Original formula was invented in Virginia and drink was first sold in Tennessee in 1948. It was launched in India in 2003 with ad Peeta Hai’. Brand has always tried to portray bold, adventurous and rebellious spirit of youth by showing high- adrenaline advertising and its connection to Aerated beverages and soft drinks Young individuals from the upper and middle class Celebrating the bold, adventurous and rebellious spirit of youth High energy Extreme citrus taste Darr ke Aage Jeet hai Slice was launched in India in 1993 as a refreshing mango drink and to become a leading player in the category. While other players have portrayed the mango as a simple and innocent fruit, Slice celebrates the sheer indulgence and sensuality involved in consuming a mango. It had recently added Tropicana Slice Alphonso to the 18 | P a g e Original formula was invented in Virginia and drink was first sold in Tennessee in 1948. It and middle class Celebrating the bold, adventurous and rebellious spirit of youth Slice was launched in India in 1993 as a refreshing mango drink and quickly went on lice Alphonso to the
  19. 19. Segment For all people seeking fruit drink for regular occasions, parties Target Group Youth in their late teens and twenties Positioning Pure Mango Pleasure USP Mango for all seasons Tagline Alphonso Nimbooz Nimbooz was launched in India on the 28th of as India’s first nationally ava The product has been created to suit Indian tastes. Nimbooz will be relevant and affordable offering for go because of its ready-to convenient and hygienic. Segment For all people seeking a soft drink for regular occasions, parties Target Group All age groups Lower, middle and upper class people Positioning Lemon based freshness drink USP Non aerated lemon drink Tagline Ekdum Asli Indian For all people seeking fruit drink for regular occasions, parties Youth in their late teens and twenties Pure Mango Pleasure Mango for all seasons Alphonso the king of Mangoes Nimbooz was launched in India on the 28th of February 2009 available packaged Nimbu Pani. The product has been created to suit Indian tastes. Nimbooz affordable offering for consumers on the to-drink format that is both For all people seeking a soft drink for regular occasions, parties All age groups Lower, middle and upper class people Lemon based freshness drink Non aerated lemon drink Ekdum Asli Indian 19 | P a g e For all people seeking fruit drink for regular occasions, parties For all people seeking a soft drink for regular occasions, parties All age groups Lower, middle and upper class people
  20. 20. Tropicana Tropicana is the #1 brand in packaged 100% Juice* in the world in 2011 in off It is committed to fostering healthy lifestyles by ensuring that its products are naturally nutritious and provide the daily benefits that one needs. In India, Tropicana comes in two categories: 100% Juices (sold as Tropicana 100%) and Juice Beverages (sold as Tropicana). Segment Fruit based beverage Target Group Youth of middle income Positioning Healthy fruit juice to give the nutrients required daily USP High quality juice beverages and nectar Tagline Let’s make breakfast 100% Tropicana is the #1 brand in packaged 100% Juice* in the world in 2011 in off It is committed to fostering healthy lifestyles by ensuring that its products are naturally nutritious and provide the daily In India, Tropicana comes in two categories: 100% Juices (sold as Tropicana 100%) and ld as Fruit based beverage Youth of middle income Healthy fruit juice to give the nutrients required daily High quality juice beverages and nectar Let’s make breakfast 100% 20 | P a g e Tropicana is the #1 brand in packaged 100% Juice* in the world in 2011 in off-trade volume.
  21. 21. AQUAFINA As soon as it was launched in the US in 1994 it became the bestselling brand in the country due to its unique purification system and great taste. In India it got launched nationally by 2000 and became one of India’s leading brands of bottled water due to strength of its brand appeal and distribution. Segment For all people seeking hygienic drinking water Target Group All age groups Lower, middle and upper class people Positioning Pure and great taste of water USP 5 step state pure water and perfect taste Tagline The purest part of you GATORADE Gatorade is World’s No.1 Sports Drink which was launched in India in 2004. It is an optimal mix of water, carbohydrates and essential mineral salts get absorbed instantly to rehydrate, replenish and refuel like no other beverage can. It has become an integral part of the kitbags of many leading sportspersons. As soon as it was launched in the US in 1994 it became the bestselling brand in the country due to its unique purification system and great taste. In India it got launched nationally by 2000 and became nds of bottled water due to strength of its brand appeal For all people seeking hygienic drinking water All age groups Lower, middle and upper class people Pure and great taste of water step state-of-the-art purification process to give consumers pure water and perfect taste The purest part of you Gatorade is World’s No.1 Sports Drink which was launched in India in 2004. It is an optimal mix of water, carbohydrates and essential mineral salts that rehydrate, replenish and refuel has become an integral part of the kitbags of many leading sportspersons. 21 | P a g e As soon as it was launched in the US in 1994 it became the bestselling brand in the All age groups Lower, middle and upper class people art purification process to give consumers Gatorade is World’s No.1 Sports Drink which was launched in India in 2004. It is an optimal
  22. 22. Segment Sportsmen/Youngsters preferring flavo Target Group Young sportsperson Positioning Replenishes energy of a sportsman/athlete/young men and women USP World’s No.1 Sports Drink Tagline Rehydrate replenish refuel Lays Lay’s is the world’s largest itself as an indispensable part of India’s snacking culture since its launch in 1995. Lay’s has established itself as a youth brand and continues to grow in the hearts and mind of its consumers. Lay’s is made with India’s best-quality fresh potatoes, simply sliced and cooked in edible vegetable oils, and then seasoned with delicious flavours. Segment Snack Food Target Group Youth Positioning Youth Brand Tagline Pal Banaye Magical Sportsmen/Youngsters preferring flavoured sports drink Young sportsperson Replenishes energy of a sportsman/athlete/young men and women World’s No.1 Sports Drink Rehydrate replenish refuel largest and favourite snack food brand. It has steadily established itself as an indispensable part of India’s snacking culture since its launch in 1995. Lay’s has established itself as a youth brand and continues to grow in the hearts and mind of its consumers. Lay’s is made with quality fresh potatoes, simply sliced and cooked in edible vegetable oils, and then seasoned with Snack Food Youth Youth Brand Pal Banaye Magical 22 | P a g e red sports drink Replenishes energy of a sportsman/athlete/young men and women . It has steadily established itself as an indispensable part of India’s snacking culture since its launch in 1995. Lay’s has
  23. 23. Kurkure Kurkure is a crunchy new-age namkeen snack brand which symbolizes light Launched in 1999, its a perfect ‘namkeen’ snack, developed entirely in India, has come to be identified with fun and lovable human quirks. Segment Target Group Tagline Cheetos Cheetos, a global brand, launched in India in 1995 has been positioned as a brand which inspires imagination and a sense of adventure and fun. Chester Cheetah is Cheetos’ brand mascot. Chester Cheetah is the “Cool Cat” who accompanies kids in their adventures. Segment Snacks Target Group Kids Tagline Take a Cheetos break with Cheetos age namkeen snack brand which symbolizes light-hearted fun. Launched in 1999, its a perfect ‘namkeen’ in India, has come to be identified with fun and lovable human Namkeen Snack Youth Tedha hai par mera hai , a global brand, launched in India in 1995 has been positioned as a brand which inspires imagination and a sense of adventure and fun. Chester Cheetah is Cheetos’ brand mascot. Chester Cheetah is the “Cool Cat” who accompanies kids Take a Cheetos break with Cheetos 23 | P a g e
  24. 24. Uncle Chipps Launched in 1992, Uncle Chipps brand was acquired from Amrit Agro Ltd. in 2000 by Frito-Lay India.. Uncle Chipps is warm, playful, lively, companionable and traditional at heart, just like the good-natured uncle. Segment Potato Chips Target Group All age group people Tagline Bole mere Lips I love Uncle Chipps Lehar Lehar was launched in 1996 brand positioned itself by emphasizing its irresistible taste and using modern imagery. It promised to deliver good taste through the use of fresh oil in the manufacturing process. They have 35 range of varied namkeen. Segment Traditional Namkeen Target Group All age group people Tagline Khushiyon ka khazana Chipps was a pioneer in branded potato chips brand was acquired from Amrit Lay Chipps is warm, playful, lively, companionable and traditional at heart, just like Potato Chips All age group people Bole mere Lips I love Uncle Chipps 1996, with innovative small packs and traditional flavours. The brand positioned itself by emphasizing its irresistible taste and using modern imagery. It promised to deliver good taste through the use of fresh oil in the manufacturing nge of Traditional Namkeen All age group people Khushiyon ka khazana 24 | P a g e chips in India.The innovative small packs and traditional flavours. The
  25. 25. Quaker Oats The brand Quaker is more than 130 years old and is a world leader in the oatmeal segment. Quaker Oats was launched in India in and has a range of Quick Cooking Oats. Quaker Oats is a 100% wholegrain and natural source of carbohydrates and dietary fibre Segment Oatmeal Target Group Person looking for balanced, active and healthy lifestyle Tagline For a healthier, happier you 3.3. THE JOINT VENTURES PEPSI LIPTON INTERNATIONAL It is a 50:50 joint venture between Pepsi and Unilever to manufacture and markets Lipton Ice Tea variants in 67 countries. product portfolio. Lipton Ice Tea is a global product that offers a combination of great taste and refreshment on the go. It is available in two variants: Green Tea in Mint & Lemon flavour; and Black Tea in Lemon flavour. The brand Quaker is more than 130 years old and is a world leader in the oatmeal segment. Quaker Oats was launched in India in 2006. It has a national presence and has a range of Quick Cooking Oats. Quaker Oats is a 100% wholegrain and natural source of carbohydrates and dietary fibre Oatmeal Person looking for balanced, active and healthy lifestyle For a healthier, happier you THE JOINT VENTURES PEPSI LIPTON INTERNATIONAL venture between Pepsi and Unilever to manufacture and markets Lipton Ice Tea variants in 67 countries. The Lipton ice tea will add to PepsiCo's health and wellness Lipton Ice Tea is a global product that offers a combination of great taste and refreshment on available in two variants: Green Tea in Mint & Lemon flavour; and Black Tea in 25 | P a g e The brand Quaker is more than 130 years old and is a world leader in the oatmeal segment. venture between Pepsi and Unilever to manufacture and markets Lipton Ice health and wellness
  26. 26. NOURISHCO A joint venture between Tata Global Beverages Limited and PepsiCo India Holdings Private Limited, NourishCo aims to provide meaningful hydration solutions in the non ready-to-drink beverages segment in India and around the world. The through a joint venture agreement between Tata and PepsiCo India. NourishCo has a vision for growth and has tremendous potential with ‘good for you’ products. NourishCo will be keenly focused on enhancing the hydration category in In portfolio includes 3 Products which straddle the Top & Bottom End of the Pyramid in the Beverages space: Tata Gluco Plus, a glucose based drink in an affordable cup format, Himalayan Natural Mineral Water, pristine source water and now Tata Water Plus, Nutrient Water, an innovative product that seeks to provide essential micronutrients. The group has built an expansive pipeline of innovations that will be used to fuel growth and create newer hydration solutions. A joint venture between Tata Global Beverages Limited and PepsiCo India Holdings Private Limited, NourishCo aims to provide meaningful hydration solutions in the non drink beverages segment in India and around the world. The JV was formed in 2010 through a joint venture agreement between Tata and PepsiCo India. NourishCo has a vision for growth and has tremendous potential with ‘good for you’ products. NourishCo will be keenly focused on enhancing the hydration category in In portfolio includes 3 Products which straddle the Top & Bottom End of the Pyramid in the Tata Gluco Plus, a glucose based drink in an affordable cup format, Himalayan Natural Mineral Water, pristine source r Plus, Nutrient Water, an innovative product that seeks to provide essential micronutrients. The group has built an expansive pipeline of innovations that will be used to fuel growth and create newer hydration 26 | P a g e A joint venture between Tata Global Beverages Limited and PepsiCo India Holdings Private Limited, NourishCo aims to provide meaningful hydration solutions in the non-carbonated, JV was formed in 2010 through a joint venture agreement between Tata and PepsiCo India. NourishCo has a vision NourishCo will be keenly focused on enhancing the hydration category in India. The portfolio includes 3 Products which straddle the Top & Bottom End of the Pyramid in the
  27. 27. 4. THE DISTRIBUTION PROCESS 4.1. The DIFFERENT CHANNELS OF PEPSICO Figure 4: Different Channels of PepsiCo 4.2. 8 STEPS OF A SALES CALL Pepsi follows a certain practice when it goes for its sales call. The PSR’s are taught to take orders only in a certain manner. Now this is done for 2  Increase Sales/call.  Avoid any sort of damages as much as possible. Since Pepsi is in the business of beverages, there needs to be attention given to spoilage .Almost all the products under the related to Slice brand has only 3 months. To avoid this they follow the FIFO method of arranging the beverages. Market Channels THE DISTRIBUTION PROCESS e DIFFERENT CHANNELS OF PEPSICO Figure 4: Different Channels of PepsiCo 8 STEPS OF A SALES CALL Pepsi follows a certain practice when it goes for its sales call. The PSR’s are taught to take orders only in a certain manner. Now this is done for 2 reasons: Avoid any sort of damages as much as possible. Since Pepsi is in the business of beverages, there needs to be attention given to spoilage .Almost all the products under the Pepsi portfolio has a life of 6 months where in anyth related to Slice brand has only 3 months. To avoid this they follow the FIFO method of Market Channels Traditional Trade Convenience Grocery Eating & Dining Oganised Trade On- Modern Trade 27 | P a g e THE DISTRIBUTION PROCESS Pepsi follows a certain practice when it goes for its sales call. The PSR’s are taught to take Since Pepsi is in the business of beverages, there needs to be attention given to spoilage months where in anything related to Slice brand has only 3 months. To avoid this they follow the FIFO method of Convenience Grocery Eating & Dining -Premise Modern Trade
  28. 28. FIFO method of merchandising would mean last week’s stocks would be replaced from the store room to the warm display and the following week from the warm display into the cooler. 1) PREPERATION This is when the PSR reaches the DB point. They are required to know the pending credit bills. There is usually a Gate meeting wherein the CE addresses all his PSR’s for targets and shops that require attention. 2) GREET THE CUSTOMER The whole business model only works well if the relationship is maintained well throughout. PSR’s are asked to always greet the customer by their name and talk to them regarding the local happenings and build a good rapport with the shopkeeper. 3) STORE CHECKING Store checking is very important while determining an order. The shop might have its storeroom most of the times behind the outlet, hence the PSR needs to go to the storeroom behind the shop in order to get an idea of the amount of stock the shop keeper has and accordingly take orders. 4) MERCHANDISING Merchandising is done on the cooler. During merchandising the Planogram is followed. Merchandising is the process where coolers a arranged and stacked in the cooler according to the Planogram. Now the second process is replacing the warm display with stock from the store room. This arrangement of the cooler is called the Planogram which serves 3 purposes FIFO method of merchandising would mean last week’s stocks would be replaced from the store room to the warm display and the following week that same stock would be replaced from the warm display into the cooler. This is when the PSR reaches the DB point. They are required to know the pending credit bills. There is usually a Gate meeting wherein the CE addresses all his PSR’s for targets and shops that require attention. GREET THE CUSTOMER The whole business model only works well if the relationship is maintained well throughout. PSR’s are asked to always greet the customer by their name and talk to them regarding the cal happenings and build a good rapport with the shopkeeper. STORE CHECKING Store checking is very important while determining an order. The shop might have its storeroom most of the times behind the outlet, hence the PSR needs to go to the storeroom behind the shop in order to get an idea of the amount of stock the shop keeper has and MERCHANDISING Merchandising is done on the cooler. During merchandising the Planogram is followed. Merchandising is the process where coolers are charged. The stock from the warm display is arranged and stacked in the cooler according to the Planogram. Now the second process is replacing the warm display with stock from the store room. This arrangement of the cooler is called the Planogram which is given by the company. This 28 | P a g e FIFO method of merchandising would mean last week’s stocks would be replaced from the that same stock would be replaced This is when the PSR reaches the DB point. They are required to know the pending credit bills. There is usually a Gate meeting wherein the CE addresses all his PSR’s for the day’s The whole business model only works well if the relationship is maintained well throughout. PSR’s are asked to always greet the customer by their name and talk to them regarding the Store checking is very important while determining an order. The shop might have its storeroom most of the times behind the outlet, hence the PSR needs to go to the storeroom behind the shop in order to get an idea of the amount of stock the shop keeper has and Merchandising is done on the cooler. During merchandising the Planogram is followed. re charged. The stock from the warm display is arranged and stacked in the cooler according to the Planogram. Now the second process is is given by the company. This
  29. 29.  It is easier to locate the flavour of your choice.  Since it is easier to locate your flavour, there is quick opening and closing of the cooler, thereby preventing any loss of cooling.  Every product line gets Figure 5: PLANOGRAM OF PEPSICO 5) DETERMINATION OF THE ORDER Next step would be to check the amount of stock kept in the warm display and accordingly ask the shop keepers for more to make sure he gets the right orders. This step is called order determination. Here the PSR would have to make sure the particular flavour asked for is in stock with the distributor. 6) PRESENTATION OF THE ORDER The next step involves explaining the variable schemes available and cross checking with the shop keeper .The orders that are taken cannot be mistaken and hence it is always cross checked thereby preventing any chance of confusion. It is easier to locate the flavour of your choice. Since it is easier to locate your flavour, there is quick opening and closing of the cooler, thereby preventing any loss of cooling. Every product line gets its own shelf space, thereby not encroaching into other spaces. Figure 5: PLANOGRAM OF PEPSICO DETERMINATION OF THE ORDER Next step would be to check the amount of stock kept in the warm display and accordingly ask the shop keepers for more orders. The PSR here would have to check what is in the store to make sure he gets the right orders. This step is called order determination. Here the PSR would have to make sure the particular flavour asked for is in stock with the distributor. TION OF THE ORDER The next step involves explaining the variable schemes available and cross checking with the shop keeper .The orders that are taken cannot be mistaken and hence it is always cross checked thereby preventing any chance of confusion. 29 | P a g e Since it is easier to locate your flavour, there is quick opening and closing of the its own shelf space, thereby not encroaching into other spaces. Next step would be to check the amount of stock kept in the warm display and accordingly orders. The PSR here would have to check what is in the store to make sure he gets the right orders. This step is called order determination. Here the PSR would have to make sure the particular flavour asked for is in stock with the distributor. The next step involves explaining the variable schemes available and cross checking with the shop keeper .The orders that are taken cannot be mistaken and hence it is always cross
  30. 30. 7) KERBESIDE DEBRIEF This stands for anything that needs to be done extra in order to satisfy the customer .It is basically an assessment of what went wrong and how it could have been avoided. 8) ADMINISTRATION In this step the PSR returns back to the DB, wherein he is required to print the bills for the next day .The PSR’s once back, call up outlet owners who they missed on their routes and collect orders on the phone. 4.3. THE MARKET MODEL Primary Level So, here lies the major difference between our business (beverages) and the other FMCG business that cooling effect is very import Cooler comes in between Retailer and the Consumer whereas in other FMCG business it directly gets transferred from retailers to customers. Plant (Sangareddy) Distributor Point (DC) IDE DEBRIEF This stands for anything that needs to be done extra in order to satisfy the customer .It is basically an assessment of what went wrong and how it could have been avoided. ADMINISTRATION In this step the PSR returns back to the DB, wherein he is required to print the bills for the next day .The PSR’s once back, call up outlet owners who they missed on their routes and THE MARKET MODEL Secondary Level Tertiary Level Figure 6: Market Model So, here lies the major difference between our business (beverages) and the other FMCG business that cooling effect is very important in beverages and hence, in the Value chain Cooler comes in between Retailer and the Consumer whereas in other FMCG business it directly gets transferred from retailers to customers. Distributor Point (DC) Retailer Cooler 30 | P a g e This stands for anything that needs to be done extra in order to satisfy the customer .It is basically an assessment of what went wrong and how it could have been avoided. In this step the PSR returns back to the DB, wherein he is required to print the bills for the next day .The PSR’s once back, call up outlet owners who they missed on their routes and Secondary Level Tertiary Level So, here lies the major difference between our business (beverages) and the other FMCG ant in beverages and hence, in the Value chain Cooler comes in between Retailer and the Consumer whereas in other FMCG business it Cooler Consumer
  31. 31. 5. TRADITIONAL TRADE 5.1. MODUS OPERANDI It means the “Method of Operation” Pepsi’s distribution systems is their approach. A PSR visits a shop one day and the very next day the supply is delivered by the delivery team. Now this creates an everyday contact with the retailer. Every day the retailers are in touch with either the PSR’s or the delivery people, thereby addressing any sort of issues like damages etc. 5.2. CLASSIFICATION OF ROUTES Every PSR follows a Route and there are sub Now since it’s a 6 day week, every PSR visits an outlet twice in a week. 5.3. CE- CUSTOMER EXECUTIVE CE Reports to the ASM and is in charge of the PSR’s. He is the person in charge of one Distribution point. He is required to visit the market and accompany eve routes. The PSR’s gives all the information to the CE first hand. If it’s an issue that can’t be handled by the CE, then he/she can ask for assistance from the TDM or ASM. 5.4. PSR- PRE SALES REPRESENTATIVE PSR’s reports directly to their company as they are the ones who sell the products, and are responsible for acquiring new customers, and in retaining the old ones. Their job requires them to be Street many orders as possible. Their work includes informing the retailers about the promotions and any new schemes launched if any. They are also required to push for the sale of any new product launched in the market and make sure that the retailers are following the com guidelines regarding the launch and the maintenance of Coolers. They basically deal with: TRADITIONAL TRADE MODUS OPERANDI It means the “Method of Operation” followed. PepsiCo follow Pre Sales Method. The USP of Pepsi’s distribution systems is their approach. A PSR visits a shop one day and the very next day the supply is delivered by the delivery team. Now this creates an everyday contact with ery day the retailers are in touch with either the PSR’s or the delivery people, thereby addressing any sort of issues like damages etc. CLASSIFICATION OF ROUTES Every PSR follows a Route and there are sub-routes in every person’s route i.e. A, B, C. w since it’s a 6 day week, every PSR visits an outlet twice in a week. CUSTOMER EXECUTIVE CE Reports to the ASM and is in charge of the PSR’s. He is the person in charge of one Distribution point. He is required to visit the market and accompany eve routes. The PSR’s gives all the information to the CE first hand. If it’s an issue that can’t be handled by the CE, then he/she can ask for assistance from the TDM or ASM. PRE SALES REPRESENTATIVE directly to their respective CE’s. They are the most important asset for the company as they are the ones who sell the products, and are responsible for acquiring new customers, and in retaining the old ones. Their job requires them to be Street as possible. Their work includes informing the retailers about the promotions and any new schemes launched if any. They are also required to push for the sale of any new product launched in the market and make sure that the retailers are following the com guidelines regarding the launch and the maintenance of Coolers. They basically deal with: 31 | P a g e followed. PepsiCo follow Pre Sales Method. The USP of Pepsi’s distribution systems is their approach. A PSR visits a shop one day and the very next day the supply is delivered by the delivery team. Now this creates an everyday contact with ery day the retailers are in touch with either the PSR’s or the delivery people, routes in every person’s route i.e. A, B, C. CE Reports to the ASM and is in charge of the PSR’s. He is the person in charge of one Distribution point. He is required to visit the market and accompany every PSR’s on their routes. The PSR’s gives all the information to the CE first hand. If it’s an issue that can’t be handled by the CE, then he/she can ask for assistance from the TDM or ASM. respective CE’s. They are the most important asset for the company as they are the ones who sell the products, and are responsible for acquiring new customers, and in retaining the old ones. Their job requires them to be Street-smart and get as as possible. Their work includes informing the retailers about the promotions and any new schemes launched if any. They are also required to push for the sale of any new product launched in the market and make sure that the retailers are following the company guidelines regarding the launch and the maintenance of Coolers. They basically deal with:
  32. 32.  Order Booking  Charging i.e. placing stock into cooler Figure 7: PSR I worked with having SAMNA on his hand 5.5. SAMNA The FMCG industry generally faces a SAMNA (Sales Automation Management for the New Age) is used to track consignments. With the help of SAMNA, PSR’s could find out stock available with the distributor, helps to check various schemes available. Order Booking Charging i.e. placing stock into cooler Figure 7: PSR I worked with having SAMNA on his hand The FMCG industry generally faces a hurdle in the sales and distribution side of the business. SAMNA (Sales Automation Management for the New Age) is used to track consignments. With the help of SAMNA, PSR’s could find out stock available with the distributor, helps to s available. 32 | P a g e hurdle in the sales and distribution side of the business. SAMNA (Sales Automation Management for the New Age) is used to track consignments. With the help of SAMNA, PSR’s could find out stock available with the distributor, helps to
  33. 33. 5.6. ANALYSIS OF THE ENTIRE BEVERAGE PRODUCT RANGE, PRICING STRUCTURE, AND THE MARGIN STRUCTURE The beverage in PepsiCo is divided into three categories:  GRB  PET  Aquafina The study of is done under Raj Mohan Enterprises which is one of the stable depot of beverages in Hyderabad. GRB (Glass Returnable Bottle) SKU's MRP 200ml(GRB) PEPSI 10 MIRINDA 10 7UP 10 MOUNTAIN DEW 9 SLICE 10 250ml(GRB) SLICE 16 300ml(GRB) PEPSI 16 MIRINDA 16 7UP 16 ANALYSIS OF THE ENTIRE BEVERAGE PRODUCT RANGE, PRICING STRUCTURE, AND THE MARGIN STRUCTURE The beverage in PepsiCo is divided into three categories: GRB – Glass Refillable Bottle PET – Polyethylene Terephthalate Aquafina is done under Raj Mohan Enterprises which is one of the stable depot of GRB (Glass Returnable Bottle) Case Capacity Trade Price Reatilers Profit 24 214 26 24 214 26 24 214 26 24 193 23 24 214 26 24 349 35 24 346 38 24 346 38 24 346 38 33 | P a g e ANALYSIS OF THE ENTIRE BEVERAGE PRODUCT RANGE, PRICING is done under Raj Mohan Enterprises which is one of the stable depot of Reatilers Profit Reatilers Margin (%) 10.83 10.83 10.83 10.65 10.83 9.11 9.90 9.90 9.90
  34. 34. PET(Polyethylene Terephtholate) SKU's MRP 250ml(PET) PEPSI 15 7UP 15 500ml(PET) PEPSI 25 MIRINDA 25 7UP 25 MOUNTAIN DEW 25 600ml(PET) PEPSI 36 MIRINDA 36 7UP 36 MOUNTAIN DEW 36 SLICE 35 LEHAR SODA 12 1L(PET) PEPSI 40 MIRINDA 40 7UP 40 LEHAR SODA 22 1.2L(PET) SLICE 62 2.25L(PET) PEPSI 80 MIRINDA 80 7UP 80 SKU's MRP 250ml(CANS) PEPSI 25 DIET PEPSI 25 MIRINDA 25 7UP 25 MOUNTAIN DEW 25 NIMBOOZ 350ml(PET) 20 PET(Polyethylene Terephtholate) Case Capacity Trade Price Reatilers Profit 24 312 48 24 312 48 24 560 40 24 560 40 24 560 40 24 560 40 24 817 47 24 817 47 24 817 47 24 817 47 24 773 67 24 216 72 12 442 38 12 442 38 12 442 38 12 234 30 12 683 61 9 670 50 9 670 50 9 670 50 Case Capacity Trade Price Reatilers Profit 24 555 45 24 555 45 24 555 45 24 555 45 24 555 45 24 440 40 34 | P a g e Reatilers Profit Reatilers Margin (%) 48 13.33 48 13.33 40 6.67 40 6.67 40 6.67 40 6.67 47 5.44 47 5.44 47 5.44 47 5.44 67 7.98 72 25.00 38 7.92 38 7.92 38 7.92 30 11.36 61 8.20 50 6.94 50 6.94 50 6.94 Reatilers Profit Reatilers Margin (%) 7.50 7.50 7.50 7.50 7.50 8.33
  35. 35. AQUAFINA SKU's MRP AQUAFINA 500ml 10 1L 20 2L 32 5.7. ANALYSIS OF THE ENTIRE FOOD PRODUCT RANGE, PRICING STRUCTURE AND THE MARGIN STRUCTURE The study of food is done under Gayathri Enterprises which is one of the stable depot of food in Hyderabad. Here everyday PSR’s cover different routes in a week, and hence they visit one store once a week which makes 4 visits in a month. The entire product range of food is as follow: Lays Chile Lemon French Salt and Cracked Pepper Classic Salted American Style Cream & Onion Magic Masala Spanish Tomato Tango West Indies Hot n Sweet Chill Case Capacity Trade Price Reatilers Profit 24 204 36 12 215 25 9 256 32 ANALYSIS OF THE ENTIRE FOOD PRODUCT RANGE, PRICING STRUCTURE AND THE MARGIN STRUCTURE The study of food is done under Gayathri Enterprises which is one of the stable depot of food everyday PSR’s cover different routes in a week, and hence they visit one store once a week which makes 4 visits in a month. The entire product range of food is as follow: Lays Baked Original Salted French Salt and Cracked Pepper Sunkissed Tomato Cream Herb & Onion American Style Cream & Onion Lay's Flat Thi Sweet Chill Lay's Flat Swiss Grilled Cheese West Indies Hot n Sweet Chill 35 | P a g e Reatilers Profit Reatilers Margin (%) 15.00 10.42 11.11 ANALYSIS OF THE ENTIRE FOOD PRODUCT RANGE, PRICING The study of food is done under Gayathri Enterprises which is one of the stable depot of food everyday PSR’s cover different routes in a week, and hence they visit one store once a
  36. 36. Kurkure Papad O Nutz Jeera Hing Papad O Nutz Chilli Masala Masala Munch Green Chutney Rajasthani Style Naughty Tomato Hyderabad Hungama Chilli Chatka Uncle Chipps Krunchy Tangles Mango Pickle Krazy Twists Chatpata Masala Plain Salted Spicy Treat Bombaat Chilli Masala Jhakaas Tomato Twist Quaker Original Flavour Quaker Flavoured Oats 200g Refill Classic Elaichi & Raisins 400g Refill Mild Pepper & Dal 500g Jar Homestyle Masala with Vegetables 600g Refill Strawberry Flavour with Apple 1kg Refill Kesar flavour with Kishmish 1kg Jar Lemony Veggie Mix with Capsicum 1.5Kg Refill Kurkure-Puffed Range Kurkure Solid Masti KK ZigZag Mad Masala Masala KK ZigZag Yummy Cheese Teekha Meetha Khatta KK Corn Cups Yummy Cheese Green Chutney Rajasthani StyleKK Monster Smileez KK Puffcorn Yummy Cheese KK Puffcorn Mad Masala Monster Paws Mad Masala Monster Paws Funky Tomato Kurkure Crunchy Rings Cheetos Lehar Krunchy Tangles Mango Pickle Cheesy Krunchy Aloo Bhujia Krazy Twists Chatpata Masala Cheez Puffs Shahi Mix Cheese Balls Chatpata Mix Masala Balls Moong Dal Tangy Loops Bikaneri Bhujia Karare Peanuts Navratan Mix Khatta Meetha Nut Cracker Quaker Flavoured Oats Classic Elaichi & Raisins Mild Pepper & Dal Homestyle Masala with Vegetables Strawberry Flavour with Apple Kesar flavour with Kishmish Lemony Veggie Mix with Capsicum 36 | P a g e Kurkure Solid Masti Teekha Meetha Khatta Aloo Bhujia Chatpata Mix Moong Dal Bikaneri Bhujia Karare Peanuts Navratan Mix Khatta Meetha Nut Cracker
  37. 37. The details on the pricing, capacity and the margin structure is as follow: SKU's Marked Price Lays 5 10 15 20 35 60 Kurkure 5 10 15 20 Uncle Chipps 5 10 20 Cheetos 5 10 Quaker Oats 15 41 62 68 158 198 The details on the pricing, capacity and the margin structure is as follow: Marked Price Trade Price Capacity Retailers Profit 4.55 224 0.45 9.09 120 0.91 13.64 80 1.36 18.18 64 1.82 31.82 48 3.18 54.55 28 5.45 4.55 225 0.45 9.09 128 0.91 13.64 80 1.36 18.18 60 1.82 4.17 164 0.83 9.09 120 0.91 18.18 80 1.82 4.17 164 0.83 9.09 120 0.91 13.64 1.36 37.27 3.73 56.36 5.64 61.82 6.18 143.64 14.36 171.43 26.57 37 | P a g e Retailers Profit Retailers Margin 9.0 9.1 9.1 9.1 9.1 9.1 9.0 9.1 9.1 9.1 16.6 9.1 9.1 16.6 9.1 9.1 9.1 9.1 9.1 9.1 13.4
  38. 38. 6. ORGANISED TRADE 6.1. ON PREMISE These include outlets like KFC’s, Pizza Hut where in the product is consumed on premise and there is no taking home generally they enjoy Monopoly in On like 2l and 1.5l will be absent. Here is where BIBS (Bag in Box/Concentrated the beverage) comes into play. Here the BIBS is mixed with water and CO2 to create what’s called the Fountain Pepsi in PMX machines(Post mixture machine). The different categories are: Figure 8: Quick Serving Restaurants (QSR) Entertainment Hotels Fine Dine and Restaurant Travel and Transport Institutions ORGANISED TRADE These include outlets like KFC’s, Pizza Hut where in the product is consumed on premise and there is no taking home generally they enjoy Monopoly in On-Premise. Hence SKU’s like 2l and 1.5l will be absent. Here is where BIBS (Bag in Box/Concentrated the beverage) comes into play. Here the BIBS is mixed with water and CO2 to create what’s called the Fountain Pepsi in PMX machines(Post mixture machine). Figure 8: Categories of On-Premise •Pizza Hut •KFC •Big Cinemas •PVR •TAJ •Green Park •Urban Asia •Cuba Libre •Airport •Railways •Google •Microsoft 38 | P a g e These include outlets like KFC’s, Pizza Hut where in the product is consumed on premise Premise. Hence SKU’s like 2l and 1.5l will be absent. Here is where BIBS (Bag in Box/Concentrated syrup of the beverage) comes into play. Here the BIBS is mixed with water and CO2 to create what’s called the Fountain Pepsi in PMX machines(Post mixture machine).
  39. 39. 6.2. MODERN TRADE Modern trade is working with big hyper markets such as the Big Bazaar, D Mart etc. In these retail setups, wherein footfall is going to be very high, the game takes a whole new dimension. If the rule of the game in TT was to create a glitch wherein the company is in constant touch with the shop keepers, the game plan in modern trade is to ‘get as much attention as possible’ and coupled with this scheme like BOGO. Modern trade focuses on festive seasons, during these se Modern trade focuses on putting up displays during these festive seasons by giving an offer or two, Hence not only creating awareness but also getting sales.30% of the consumption in urban areas come from Modern Trade. It everyone’s attention. In modern trade most of the outlets are high sales outlets compared to traditional trade. The different categories in modern trade are: Figure 9: Categories of Modern Trade FIVE STEPS CALL PROCESS OF MODERN TRADE  Win Cold  Win Display  Win Shelf  Win POSM (Point of Sale Material)  Win PO1(Power of One i.e. both snacks and beverages) • Big Bazaar • Spencers National Modern Trade • Ratnadeep Regional Modern Trade Stand Alone Modern Trade(SAMT) Modern trade is working with big hyper markets such as the Big Bazaar, D Mart etc. In these retail setups, wherein footfall is going to be very high, the game takes a whole new dimension. If the rule of the game in TT was to create a glitch-free distribution system wherein the company is in constant touch with the shop keepers, the game plan in modern trade is to ‘get as much attention as possible’ and coupled with this scheme like BOGO. Modern trade focuses on festive seasons, during these seasons people purchase a lot more. Modern trade focuses on putting up displays during these festive seasons by giving an offer or two, Hence not only creating awareness but also getting sales.30% of the consumption in urban areas come from Modern Trade. It is about creating awareness in the outlet and get everyone’s attention. In modern trade most of the outlets are high sales outlets compared to traditional trade. The different categories in modern trade are: Figure 9: Categories of Modern Trade STEPS CALL PROCESS OF MODERN TRADE Win Display Win POSM (Point of Sale Material) Win PO1(Power of One i.e. both snacks and beverages) Big Bazaar Spencers Ratnadeep 39 | P a g e Modern trade is working with big hyper markets such as the Big Bazaar, D Mart etc. In these retail setups, wherein footfall is going to be very high, the game takes a whole new ree distribution system wherein the company is in constant touch with the shop keepers, the game plan in modern trade is to ‘get as much attention as possible’ and coupled with this scheme like BOGO. asons people purchase a lot more. Modern trade focuses on putting up displays during these festive seasons by giving an offer or two, Hence not only creating awareness but also getting sales.30% of the consumption in is about creating awareness in the outlet and get everyone’s attention. In modern trade most of the outlets are high sales outlets compared to Win PO1(Power of One i.e. both snacks and beverages)
  40. 40. 7. THE MAJOR DIFFFERENCES BETWEEN DIFFERENT CHANNELS OF TRADE TRADITIONALTRADE • It involves planned buying • Consumers might touch and feel the good or might not • The goods are sold to consumers at Marked Price • It is managed on personal relation • The onus of service is on sales person •The consumer might get credit purchase • No membership facilities • The product is sold in original form • Company give very low credit period to TT • Promotions are done seasonally • Just the visibility is ensured • Sales are high during the season/festive MAJOR DIFFFERENCES BETWEEN DIFFERENT CHANNELS OF TRADE MODERNTRADE •Impulse purchase •consumers can touch and feel •Sold at price lower than MP •No personal relation exist • Self service by the consumers •Credit purchase is not entertained •Membership facility •In original form •Credit duration is longer •Promotions are done monthly or weekly basis •Innovative merchandising is ensured • Sales are high throughout ON-PREMISE • Planned purchase • cannot touch and feel • sold at a premium price • personal relation might exist • served by the house keeping person • No credit Purchase • The original form of the product might get changed •Credit duration is longer compared to TT •Promotions are rarely done • Merchandising is not importnat • Seasonality does not effect the sale 40 | P a g e MAJOR DIFFFERENCES BETWEEN DIFFERENT CHANNELS Planned purchase cannot touch and sold at a premium price personal relation might exist served by the house keeping person No credit Purchase The original form of the product might get changed Credit duration is longer compared Promotions are rarely done Merchandising is not importnat Seasonality does not effect the sale
  41. 41. 8. PROJECT SPECIFIC ANALYSIS 8.1. PO1 The Power of One begins with the unique ability to connect with consumers. the first and the only unit across world chosen for PO1 project. According to an internal study of the company, about 60 percent of the time people consume a salty snack along with a refreshment beverage where as only 30 percent of the time it is when people buy both of it together. So PO1 is an initiative to leverage the existing gap of 30 percent which we can capitalize on the leading positions of our iconic brands in categories to drive the purchase of our snacks and beverages together. As we grow globally, this idea is more powerful than ever. This project of Power of One in Hyderabad has been allocated a total fund of 800 Cr, the breakup of which is 450 Cr for expenses. Andhra Pradesh and Telangana is the state with largest category market for beverage, where as PepsiCo has the lowest beverage share in the state compared to other states in the country. Talking about the food, the state enjoys the strongest food market across country. And these are the sole reasons why Hyderabad has been chosen for the Power of One Project. There are thousand plus employees working towards the power of one initiative in Hyderabad. A total of 60,000 and plus beverage and food retailers individually are under the purview of this project amongst which 30% of the outlet are the common outlets know as PO1 outlets having both beverage and food and there by affecting a total of 10,0 channel partners. Considering all, there are two benefit synergies for selecting this area for the Power of One project i.e.  The beverages rides on food in the Urban  The foods rides on Beverage in Rural And there by providing a platform to 8. PROJECT SPECIFIC ANALYSIS The Power of One begins with the unique ability to connect with consumers. the first and the only unit across world chosen for PO1 project. According to an internal study of the company, about 60 percent of the time people consume ck along with a refreshment beverage where as only 30 percent of the time it is when people buy both of it together. So PO1 is an initiative to leverage the existing gap of 30 percent which we can capitalize on the leading positions of our iconic brands in categories to drive the purchase of our snacks and beverages together. As we grow globally, this idea is more powerful than ever. This project of Power of One in Hyderabad has been allocated a total fund of 800 Cr, the breakup of which is 450 Cr for beverage, 250 Cr for food and remaining 100 Cr for other Andhra Pradesh and Telangana is the state with largest category market for beverage, where as PepsiCo has the lowest beverage share in the state compared to other states in the country. king about the food, the state enjoys the strongest food market across country. And these are the sole reasons why Hyderabad has been chosen for the Power of One Project. There are thousand plus employees working towards the power of one initiative in rabad. A total of 60,000 and plus beverage and food retailers individually are under the purview of this project amongst which 30% of the outlet are the common outlets know as PO1 outlets having both beverage and food and there by affecting a total of 10,0 there are two benefit synergies for selecting this area for the Power of One The beverages rides on food in the Urban The foods rides on Beverage in Rural And there by providing a platform to leverage both the Urban and the rural effectively 41 | P a g e 8. PROJECT SPECIFIC ANALYSIS The Power of One begins with the unique ability to connect with consumers. Hyderabad is According to an internal study of the company, about 60 percent of the time people consume ck along with a refreshment beverage where as only 30 percent of the time it is when people buy both of it together. So PO1 is an initiative to leverage the existing gap of 30 percent which we can capitalize on the leading positions of our iconic brands in both categories to drive the purchase of our snacks and beverages together. As we grow globally, This project of Power of One in Hyderabad has been allocated a total fund of 800 Cr, the beverage, 250 Cr for food and remaining 100 Cr for other Andhra Pradesh and Telangana is the state with largest category market for beverage, where as PepsiCo has the lowest beverage share in the state compared to other states in the country. king about the food, the state enjoys the strongest food market across country. And these are the sole reasons why Hyderabad has been chosen for the Power of One Project. There are thousand plus employees working towards the power of one initiative in rabad. A total of 60,000 and plus beverage and food retailers individually are under the purview of this project amongst which 30% of the outlet are the common outlets know as PO1 outlets having both beverage and food and there by affecting a total of 10,000 and plus there are two benefit synergies for selecting this area for the Power of One ural effectively.
  42. 42. 8.2. BACKGROUND OF THE PROJECT The Project comprises of designing combos to understand its impact on the trade, shopper and the consumer. The 30 outle the basis of Sale amongst which there Coke and few Pepsi Exclusive outlets. CROSS SELLING The combos are integration of beverage and Snack which is very much like The Cross selling is the activity or practice of selling an additional product to an existing customer. In cross-selling complimentary products It is a tactics that allow grabbing a larger share of wallet (SOW) of the customers. This activity of Cross selling behaviour and has traditionally been used to increase sales and consumers awareness about the company’s brand and product. It is a very common marketing strategy adopted companies, where two or more products are sold together. 8.3. CONSIDERATIONS FOR SELECTING THE SAMPLE OUTLETS In the initial days the master database was studied and the outlets were prioritized on the basis of their contribution. The Outlets Thereby the prioritized outlets were given a visit in order to develop the relation and the deal in order to run the combo which required a great support from the retailers end. The basic considerations for selecting the outlet for Perfect Combo were: Outlet with Touch Points BACKGROUND OF THE PROJECT The Project comprises of designing combos, and executing them in 30 bakery outlets in order to understand its impact on the trade, shopper and the consumer. The 30 outle e basis of Sale amongst which there are few mixed account that is having both Peps Pepsi Exclusive outlets. The combos are integration of beverage and Snack which is very much like is the activity or practice of selling an additional product to an existing complimentary products are sold to a customer. grabbing a larger share of wallet (SOW) of the customers. This activity of Cross selling the product aims at influencing consumer’s attitude and r and has traditionally been used to increase sales and consumers awareness about the company’s brand and product. It is a very common marketing strategy adopted companies, where two or more products are sold together. 8.3. CONSIDERATIONS FOR SELECTING THE SAMPLE OUTLETS In the initial days the master database was studied and the outlets were prioritized on the basis of their contribution. The Outlets with maximum contribution were given preference. Thereby the prioritized outlets were given a visit in order to develop the relation and the deal in order to run the combo which required a great support from the retailers end. selecting the outlet for Perfect Combo were: PO1 Outlet Location Outlet Type 42 | P a g e and executing them in 30 bakery outlets in order to understand its impact on the trade, shopper and the consumer. The 30 outlets are chosen on mixed account that is having both Pepsi and The combos are integration of beverage and Snack which is very much like Cross Selling. is the activity or practice of selling an additional product to an existing are sold to a customer. grabbing a larger share of wallet (SOW) of the customers. s at influencing consumer’s attitude and r and has traditionally been used to increase sales and consumers awareness about the company’s brand and product. It is a very common marketing strategy adopted by the 8.3. CONSIDERATIONS FOR SELECTING THE SAMPLE OUTLETS In the initial days the master database was studied and the outlets were prioritized on the with maximum contribution were given preference. Thereby the prioritized outlets were given a visit in order to develop the relation and the deal in order to run the combo which required a great support from the retailers end. Outlet Type
  43. 43.  Outlets with touch points Touch points are our brand’s points of customer contact. potential customer or customer comes in contact with the brand. The outlets with touch points decision.  PO1 outlet By PO1 outlet we mean an outlet having PepsiCo SKU’s of both Bev and Snacks in order to ensure the execution of combo successfully.  Outlet type By outlet type we mean whether in both kinds on equal proportion.  Location An outlet in a good location was given the priority. It was done to ensure that the entrants become the prospective consumers of the combo repeatedly.  Many prospective bakery outlets fall under UBC account which has tie up with Coke for CBD  In Nearly 7 outlets the food supply needed to be started.  The Credit in the Food was stopped by the distributor which was one of the major fight in many outlets  The Market instability was one of the major cons CHALLENGES Outlets with touch points Touch points are our brand’s points of customer contact. A touch point is any time a potential customer or customer comes in contact with the brand. The outlets with touch points were essential in order to influence the consumers buying By PO1 outlet we mean an outlet having PepsiCo SKU’s of both Bev and Snacks in order to ensure the execution of combo successfully. By outlet type we mean whether an outlet is Mixed or PI as the combo needed to be executed in both kinds on equal proportion. An outlet in a good location was given the priority. It was done to ensure that the entrants become the prospective consumers of the combo repeatedly. Many prospective bakery outlets fall under UBC account which has tie up with Coke In Nearly 7 outlets the food supply needed to be started. The Credit in the Food was stopped by the distributor which was one of the major The Market instability was one of the major constraint. 43 | P a g e point is any time a were essential in order to influence the consumers buying By PO1 outlet we mean an outlet having PepsiCo SKU’s of both Bev and Snacks in order to an outlet is Mixed or PI as the combo needed to be executed An outlet in a good location was given the priority. It was done to ensure that the entrants Many prospective bakery outlets fall under UBC account which has tie up with Coke The Credit in the Food was stopped by the distributor which was one of the major
  44. 44. Below is the list of 30 bakery outlets selected for the execution of Combos. It covers 6 Distributors and 7 Beverage Customer Executives. All the outlets have an Unique Identification Number which he Figure 10: Details of the 30 Sample Bakery Outlet Below is the list of 30 bakery outlets selected for the execution of Combos. It covers 6 Distributors and 7 Beverage Customer Executives. All the outlets have an Unique Identification Number which helps us to track the Sales of that particular outlet. : Details of the 30 Sample Bakery Outlet 44 | P a g e Below is the list of 30 bakery outlets selected for the execution of Combos. It covers 6 Distributors and 7 Beverage Customer Executives. All the outlets have an Unique lps us to track the Sales of that particular outlet. : Details of the 30 Sample Bakery Outlet
  45. 45. 8.4. SURVEY TO UNDERSTAND THE CHOICE OF COMBO PACKS ON CONSUMER BUYING DECISION MAIN OBJECTIVE OF THE SURVEY  To know the consumers preference order to design the combo.  To study the awareness of the consumers regarding the different brands of PepsiCo To know of how many people are aware that Frito  To study whether the Combo promotion in any particular outlet will influence the buying decision of a prospective customer. ANALYSIS OF THE SURVEY Our prime focus is to understand how a consumer is influence by cross selling offers and how this influence the buyi http://goo.gl/forms/3ewqi1hyWa During the whole research study, approach was taken to indulge the sample to fill a questionnaire. The total consumers. Out of the Sample size following are the demographic information. 55%45% GENDER RATIO 8.4. SURVEY TO UNDERSTAND THE CHOICE OF COMBO PACKS ON CONSUMER BUYING DECISION MAIN OBJECTIVE OF THE SURVEY To know the consumers preference towards a particular brand of CSD and Snack in order to design the combo. To study the awareness of the consumers regarding the different brands of PepsiCo To know of how many people are aware that Frito-Lay comes from PepsiCo stable. the Combo promotion in any particular outlet will influence the ision of a prospective customer. ANALYSIS OF THE SURVEY Our prime focus is to understand how a consumer is influence by cross selling offers and how this influence the buying pattern and perception of the consumer. http://goo.gl/forms/3ewqi1hyWa is the link of the Google form. During the whole research study, approach was taken to indulge the sample to fill a questionnaire. The total sample size was 105 number of different age group Out of the Sample size following are the demographic information. GENDER RATIO Male Female 6% 71% 18% 5% AGE GROUP 45 | P a g e 8.4. SURVEY TO UNDERSTAND THE CHOICE OF COMBO PACKS ON towards a particular brand of CSD and Snack in To study the awareness of the consumers regarding the different brands of PepsiCo. Lay comes from PepsiCo stable. the Combo promotion in any particular outlet will influence the Our prime focus is to understand how a consumer is influence by cross selling offers and ng pattern and perception of the consumer. During the whole research study, approach was taken to indulge the sample population different age group AGE GROUP Below 18 18 - 25 26 - 35 Above 35

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