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STUDY OF MARKET VISIBILITY AND AVAILABILITY OF PRODUCTS
For PepsiCo India Holdings Pvt. Ltd
A Report on Project Work
In
Masters of Business Administration
By
Amitesh singh yadav
215112094
DEPARTMENT OF MANAGEMENT STUDIES
NATIONAL INSTITUTE OF TECHNOLOGY
TIRUCHIRAPPALLI-620015
SEPTEMBER 2013
BONAFIDE CERTIFICATE
This is to certify that the Summer Project Report titled “STUDY OF MARKET
VISIBILITY AND AVAILABILITY OF PRODUCTS” is a bonafide record of the work
done by,
Amitesh Singh Yadav
(215112094)
Studying MASTER OF BUSINESS ADMINISTRATION in the DEPARTMENT OF
MANAGEMENT STUDIES, National Institute of Technology, Tiruchirappali, during the
academic year 2012-2014.
Dr. VJ Siva kumar Dr. N Thamaraiselvan
Internal Guide Head of the Department
Department of Management Studies, Department of Management Studies,
National Institute of Technology, National Institute of Technology,
Tiruchirapalli-15. Tiruchirapalli-15.
Project Viva-Voce held on …………………..
Internal Examiner External Examiner
PepsiCo Summer Internship Project Report Page 3
ACKNOWLEDGEMENT
There is always a sense of gratitude one expresses to others for the helpful and needy service
they render during all phases of life. I have completed this training with the help of different
personalities. I wish to express my gratitude towards all of them.
It gives me immense pleasure to express my deep regards and sincere sense of gratitude to for
his guidance throughout the training. Thank you so much sir for your able and worthy
guidance. I am highly indebted to my project mentor Mr. Rahul Srivastav (Territory
Development Manager) for his continuous support, supervision motivation and guidance
throughout the tenure of my project in spite of his hectic schedule. It was truly remained
driving spirit in my project and his experience gave me the light in handling project and
helped me in clarifying the abstruse concepts, requiring knowledge and perception, handling
critical situations and in understanding the objective of my work.
I would like to thank Mr. Vijay Vikram Singh (Area Development Coordinator) & Mr.
Neeraj Jaiswal (Customer Executive) whose valued suggestions and directions always
encouraged and motivated me for the project. They helped me in understanding the market
and other related concepts and processes in a better and easier way.
I would like to thank all the staff of PepsiCo India Holdings Pvt. Ltd for their dedication &
support. Thanks to all the RSPs and PSRs for their help and contribution.
I also earnestly thank Dr. VJ Siva Kumar; Professor (DOMS) my faculty guide for his kind
support in helping me through the various stages, his attention, care and guidance have been
instrumental in meeting the objectives of the project. It was my privilege to be under such a
veteran.
I thank Dr. N Thamaraiselvan, Head Department of Management Studies (DOMS) for
providing me an opportunity to do the project.
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TABLE OF CONTENTS
CONTENTS
EXECUTIVE SUMMARY.............................................................................................................. 4
PREFACE........................................................................................................................................ 7
BACKGROUND OF THE STUDY ................................................................................................ 8
OBJECTIVES OF THE STUDY .................................................................................................... 9
SCOPE OF THE STUDY................................................................................................................ 9
BACKGROUND OF THE COMPANY ....................................................................................... 10
COMPANY PROFILE IN INDIAN SCENARIO ........................................................................ 14
HISTORY OF PEPSICO .............................................................................................................. 18
MISSION AND VISION OF THE COMPANY ........................................................................... 21
PEPSICO VALUES & PHILOSOPHY .................................................................................... 22
PRODUCT PROFILE OF PEPSICO........................................................................................... 23
CONSUMER CHOICE AT A GLANCE: .................................................................................... 36
INTRODUCTION TO COMPETITOR....................................................................................... 37
BACKGROUND OF THE COMPANY.................................................................................... 37
HISTORY OF COCA-COLA ................................................................................................... 38
COCA-COLA IN INDIA............................................................................................................... 40
PRODUCTS OF COCA-COLA INDIA........................................................................................ 41
RESEARCH METHODOLOGY.................................................................................................. 45
RESEARCH DESIGN............................................................................................................... 45
SOURCES OF DATA................................................................................................................ 47
RESEARCH MEASURING TOOLS & TECHNIQUES ......................................................... 48
ANALYSIS AND INTERPRETATION ....................................................................................... 51
DATA ANALYSIS OF VISBILITY INSTRUMENTS................................................................. 57
FINDINGS AND INTERPRETATIONS...................................................................................... 63
SWOT ANALYSIS OF PEPSICO................................................................................................ 64
CONCLUSION OF THE STUDY ................................................................................................ 66
SUGGESTIONS AND RECOMMENDATIONS......................................................................... 67
BIBLIOGRAPHY ......................................................................................................................... 69
ANNEXURE.................................................................................................................................. 70
QUESTIONNAIRE ................................................................................................................... 70
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EXECUTIVE SUMMARY
PepsiCo is the world‟s premier consumer Products Company focused on convenience food
and beverages. We seek to produce healthy financial reward to investors a we provide
opportunities for growth and enrichment to our employees.
As one of the largest food and beverage businesses in India, PepsiCo India offers consumers
a wide-ranging portfolio of enjoyable and wholesome products. PepsiCo is a world leader in
convenient foods and beverages, with 2012 revenues of more than US$ 66 billion and
278,000 employees.
The group has built an expansive beverage and foods business. To support its operations,
PepsiCo has 38 bottling plants and 3 food plants in India, of which a few are company owned
and others are franchisee owned PepsiCo‟s a business based on its sustainability vision of
making tomorrow better than today. PepsiCo‟s commitment to living by this vision every day
is visible in its contribution to the country, consumers and farmers.
The whole business of any FMCG (Fast Moving Consumers Goods) company mainly
depends on the retailers, so we can say that the retailers are the backbone of any FMCG
organization .
The whole project termed as products‟ market visibility enhancement & Visi Report, in
which the whole analysis based on current market visibility position of products in Bareilly
city.
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The project was undertaken under the guidelines of PepsiCo India Holding Pvt. Ltd. to study
the market visibility of PepsiCo products in order to increase the sales of Pepsi and problems
faced by distributor and retailers and recommend the company how to solve these problems.
A detailed survey to the consumer was carried to find out their preferences for Soft Drinks.
The details of the methodology are stated below. Areas are C.B. Ganj, Fatehganj West,
Meerganj, Nainital Road, Stadium Road, Sanjay Nagar Bypass, Pilibhit Bypass and Old
city in Bareilly. Research design: Exploratory and descriptive. Sources of information are
primary and secondary data.
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PREFACE
Market provides a key to gain actual success only to those brands which match best to the
current environment i.e. ”imperative” which can be delivered what are the people needs and
they are ready to buy at the right time without any delay. It is perfectly true but this also
depends on a number of other pivotal factors. These factors include availability of good
quality products and excellent taste and services along with visibility of the product in the
market supported by perfect promotional and advertisement strategies; which further attract
and add a golden opportunity for huge sales.
This also depends on the good planning approach and provide ample opportunity plus
sufficient amount of products for sales in the coming next financial year.
This survey report introduces study of consumers‟ preferences for PEPSI. After going
through a detail analysis of market behaviour and future prospect based on availability and
visibility of the product in the market, it may also provide an opportunity to PEPSI to frame a
good future plan to maximize its customer base and to establish its guiding role in the market
of Bareilly in particular and throughout the country as a whole. The study report will also
provide an opportunity to delineate its market potential business areas, products & services
are to be offered by the company to the customers.
This study report also provides the various factors affecting the services. Marketing Division
of PEPSI has to keep in mind various factors specially while preparing a plan for marketing
its product or services. Details description along with analysis of surveyed data is being
presented in this report.
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BACKGROUND OF THE STUDY
Market study is an essential process to develop the companies‟ database by collection of data,
analyses of data, reporting of the data according to the specific situation for any marketing
activity that the company is facing due to the increase in the competition & the development
of various marketing competitors or numerous external factors affecting.
Modern marketing calls not only for developing a good product, but pricing it attractively &
making it accessible to target customers. It’s pivotal to showcase the product in a very
tempting fashion. Organizations also need to communicate with their present & potential
customers about their present offerings. Needs to develops an effective & efficient strategy
with the aim of creating awareness, developing knowledge and liking preference convictions
among the organizations‟ target audience with a view to convert them into prospective buyer.
This project report exhibits study of market visibility and availability of products of PepsiCo.
It also captures the comparative analysis in terms of product market visibility and availability
of competitor in Bareilly territory.
This project report endeavours to study of "MARKET VISIBILITY OF PEPSICO
PRODUCTS".
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OBJECTIVES OF THE STUDY
As it is known that soft-drink industry is very much sensitive towards promotions, retailers‟
preferences, visibility and availability of the product in the market place. This is also
commonly known that presentation of the soft-drink on retail shop is one of the most crucial
factors deciding the performance of a particular brand. Keeping the axiom in the mind that
“AWAY FROM SIGHT, AWAY FROM MIND”, the objectives of the study are as
following:
 The main objective of the project is to analyze and study in efficient way the current
position of PepsiCo products‟ market visibility.
 To perform SWOT analysis of PepsiCo. This would help us identify areas of potential
opportunities to sustain the market leadership.
 The study was aimed to perform Market visibility Analysis of products of the
Company & find out different affecting factors.
 Another objective of the study was to perform Competitive analysis between PepsiCo
and its competitor Coca-Cola.
SCOPE OF THE STUDY
This study basically tries to discover the current position of PepsiCo in the market. It also
tries to discover the present preferences of the customers and retailers on the basis of
availability and showcasing of the products. It is primarily directed to the general public
but was done only in Bareilly.
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BACKGROUND OF THE COMPANY
Type : Food & Non-alcoholic beverage
Manufacturer : PepsiCo.
Country of Origin : United States
Founded : New Bern N.C, U.S. (1890)
Founder(s) : Caleb Bradham, Donald M. Kendall and Herman W. Lay
Headquarters : Purchase, New York, U.S. R & D headquarters in Valhalla
Key People : Indra Nooyi (Chairperson and CEO)
Products : Pepsi, Diet Pepsi, Mountain Dew, AMP Energy, Aquafina,
Sierra, IST, SoBe, Starbucks Frappuccino, Lipton Iced Tea,
7up, Atom, Mirinda, Izze, Tropicana Products, Copella, Naked
Juice, Gatorade, Propel Fitness Water, Quaker Oats Company,
Lay's, Doritos, Cheetos, Kurkure, Fritos, Rold Gold, Ruffles,
Tostitos,Slice.
Revenue : US $ 66.504 billion
Operating Income : US $ 9.633 billion
Net Income : US $ 6.462 billion
Employees : 278,000 (2012)
Divisions : PepsiCo Americas, PepsiCo International
Web Site : PepsiCo.com
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Pepsi Cola Company now produces and markets nearly 200 refreshment beverages to retail,
restaurants and food service customers in more than 190 countries and territories around the
world. PepsiCo World Headquarters is located in Purchase, New York.
Pepsi Co. is the world leader in the food chain business. It consists of many companies
amongst which the prominent ones are Pepsi Cola, Frito-lay, Pepsi food international,
Pizza-hut, KFC and Taco bell. The group is presently into three most profitable businesses
namely, Beverages Snacks foods and Restaurants.
The beverages segment primarily market it Pepsi diet, Pepsi Mountain Dew and other brands
worldwide and 7UP outside the U.S. market. They are positioned in close competition with
Coca Cola inc. of USA.
The Snacks food divisions manufacture and distribute and markets others snacks worldwide.
The restaurant segment primarily consists of the operations of the worldwide Pizza-Hut,
Taco bell, PepsiCo‟s restaurant distribution operation, supplies to Company owned and
Franchise restaurants in the U.S.
When Coca Cola changed its formula in 1985; Pepsi Stepped up its competition with its long
time rival claiming victory in the Cola-wars. Coke and Pepsi expended their rivalry to tea in
1991 when Pepsi formed a venture with No.1 Lipton in response to Coke‟s announced
venture with Nestle (Nestea).
“PepsiCo is going blue”. This was the new color adopted by the company to strengthen its
brand globally. Also the company is changed colors from Generation X to GENERATION
NEXT. Although Pepsi holdings over the years have become diverse in such fields as the
PepsiCo Summer Internship Project Report Page 12
Snacks industry and Restaurants industry, this portfolio will discuss its core business and its
highly successful business of Beverages. The soft drink industry customer base is probably
the widest and deepest base in a world that is flooded with some many categories. According
to Beverage Digest the customer base for soft drinks is a whopping 95% of regular users in
the United States. This represents a large field of potential customers for Pepsi Cola.
Pepsi prefers to segment itself as the beverage choice of the “New Generation”,
“Generation Next”, or just as the “Pepsi Generation”. These terms adopted in Pepsi‟s
advertising campaigns are referring to the markets that marketers refer to as Generation X.
The Generation X consumer is profiled to be between the ages of 18 to 29. They have high
expectations in life and are very mobile and active. They adopt a lifestyle of living for today
and not worrying about long-term goals. Those Pepsi‟s main emphasis on this segment they
also have a focus on the 12 to 18 year old market. Pepsi believes if they can get this market to
adopt their product then they could establish a loyal customer for life.
Pepsi Cola throughout its 100 years of existence has developed much strength. One of the
strengths that have developed Pepsi into such a large corporation is a strong franchise system.
The strong franchise system was the backbone of success along with a great entrepreneur
spirit. Pepsi‟s franchise system and distributors is credited to bring Pepsi from a 7,968 gallons
of soda sold in 1903 to nearly 5 billion gallons in the year of 1997.
Pepsi also has the luxury to spend 225 million dollars in advertising a year. This enormous
advertising budget allows Pepsi to reinforce their products with reminder advertising and
promotions. This large budget also allows Pepsi to introduce new products and very quickly
make the consumer become aware of their new products.
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Pepsi also has had the good fortune of making very wise investments. Some of the best
investments have been in their acquiring several large fast food restaurants. They have also
made wise investments in snack food companies like Frito Lay, which at present time is the
largest snack company in the world. Probably high on the list of strengths is Pepsi‟s beverage
line up.
Pepsi has four soft drinks in the top ten beverages in the world. These brands are Pepsi,
Mountain Dew, Diet Pepsi, and Caffeine Free Diet Pepsi. Some other strong brands are
All Sport, Slice, Tropicana, Starbucks, Aquafina and a license agreement with Ocean Spray
Juices.
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COMPANY PROFILE IN INDIAN
SCENARIO
Since the entry of Pepsi co. to India in 1987, the soft drink Industry has undergone a radical
change. When Pepsi entered parley was the leader with „Thumps UP‟ being its flagship
brand. Other product offerings by parley included Limca & Gold Spot. Another upcoming
player in the market was the erstwhile bottle of Coca-Cola, Pure Drinks. Its offerings
included Campa Cola, Camps Lemon and Campa Orange.
With the re-entry of Coca-Cola in the Indian market, Pepsi had to go in for more aggressive
marketing to sustain its market share. The chronology the initial phase of the “Coal Wars” in
India was:-
July 1986
An application for soft drinks-cum-snack food joint venture by Pepsi, Voltas
and Punjab Agro is submitted to the government after an earlier proposed
alliance- 1985, between Pepsi and Duncan‟s of the Goenkas fails to take off.
Sept.1988
Final approval to the Pepsi Foods Limited. Project granted by the Cabinet
Committee on Economic Affairs of the Rajeev Gandhi Government.
March 1990
Pepsi Cola and Seven up were launched in limited market in North India.
May 1990
The government clears the Pepsi project again but with a change in brand
name to Lehar Pepsi. Simultaneously it rejects the Coca-Cola application.
Citra form the Parle stable hits the market.
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Dec 1991
Pepsi extends its soft drinks reach on national scale. Products launched in
Delhi and Bombay.
Jan 1992
Brito Foods application cleared by the FTPB. Pepsi and Parle start initial
negotiations for strategic alliance but talks break off after a while.
1993
Pepsi launches Teem and Slice. Captures about 25.30% of the soft drinks
market in about two years.
July 1993
Voltas pulls out of PFL joint venture. Pepsi decides to raise equity to 92%
Reports of coke – Parle negotiations gain strength.
1994
Pepsi brought Dukes& Sons
1995
Pepsi launched Cans having capacity of 330 ml in various flavors.
1997
Pepsi brought Mirinda Orange opposite to Fanta.
1998
Pepsi launched Lemon Mirinda to give taught competition to Limca.
1999
Pepsi has launched its Diet Pepsi Can and 1.5 Liters pet battles for health
conscious people.
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1997
Refusing to dilute its equity state Coca-Cola winds up operations in the
country. Parle launches Thumps Up and Drinks launches Campa Cola.
2001
Pepsi launched Aquafina opposite to Kinley.
2003
Pepsi launched Mountain Dew
2005
Mirinda lemon zinger, 7UP.Ice was launched by Pepsi.
2006
Bubbly Pepsi was launched.
2007
Pepsi Gold was launched
2009
Nimbooz by 7up was launched
2010
PepsiCo India recently launched a new flavor named “7UP Ice” in Indian
market. It is hard that 7UP. The taste of 7UP Ice is mint. And Mirinda Bat
Berry. The taste of Mirinda Bat Berry is like Glicodin.
2011
In April 2011, Pepsi announced that customers will be able to buy a complete
stranger a soda at a new "social" vending machine, and even record a video
that the stranger would see when they pick up the gift.
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In May 2011, the week before Memorial Day, Pepsi launched a limited edition
flavor called "Memorial Day Pepsi", with blueberry and cherry flavors
added to the cola.
2012
In March 2012, Pepsi introduced Pepsi Next, a cola with half the calories of
regular Pepsi.
2013
Pepsi launched Atom Cola, a cola with stronger taste in comparison to Pepsi
cola. The brand was available in 200ml and 500ml glass and pet bottles
respectively.
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HISTORY OF PEPSICO
1893--Caleb Bradham, a young pharmacist and industrialist
from New Bern, North Carolina, begins experimenting with
many different soft drink concoctions; patrons and friends
sample them at his drugstore soda fountain.
1898--It was first introduced as "Brad's Drink" in New Bern, ,
North Carolina in 1898 by Caleb Bradham, a combination of
carbonated water, sugar, vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola" on August
28, 1898. Pepsi-Cola receives its first logo.
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1902--The instant popularity of this new drink leads Bradham to devote all of his energy to
developing Pepsi-Cola into a full-fledged business. He applies for a trademark with the U.S.
Patent Office, Washington D.C., and forms the first Pepsi-Cola Company. The first Pepsi-
Cola newspaper advertisements appeared in the New Bern Weekly Journal.
1910--The first Pepsi-Cola bottlers' convention is held in New Bern, North Carolina etc.
1920--Pepsi theme line speaks to the consumer with "Drink Pepsi-Cola, it will satisfy you."
1931--U.S. District Court for Eastern District Virginia declares the National Pepsi-Cola
Company bankrupt, the second bankruptcy in Pepsi-Cola history. The Loft candy company
acquires the National Pepsi-Cola Company. Charles G. Guth, president of Loft, assumes
leadership of Pepsi and commands the reformulation of Pepsi-Cola syrup formula.
1940--Pepsi-Cola Company makes advertising history with "Nickel, Nickel," the first
advertising jingle ever broadcast nationwide on radio.
Pepsi receives its new logo, its third change since 1906.
1950-- Alfred N. Steele becomes President and CEO of Pepsi-Cola. Mr. Steele's wife,
Hollywood movie star Joan Crawford, is instrumental in promoting the company's product
line. Pepsi receives its new logo, which incorporates the "bottle cap" look. The new logo is
the fifth in Pepsi history.
1960--Young adults become the target consumers and Pepsi's advertising keeps pace with
"Now it's Pepsi, for those who think young”.
1970--Pepsi leads the way into metrics by introducing the industry's first two-liter bottles.
Pepsi is also the first company to respond to consumer preference with light-weight,
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recyclable, plastic bottles. Vic Bonomo is named President of Pepsi-Cola.
The Pepsi World Headquarters moves from Manhattan to Purchase, NY.
1980--Pepsi becomes number one in sales in the take home market.
1990--American Music Award and Grammy winner rap artist Young MC writes and
performs songs exclusively for national radio ads for Pepsi. Ray Charles joins the Pepsi
family by endorsing Diet Pepsi. The slogan is "You Got the Right One Baby."
2000--Although Pepsi is a great place to work, Steven Truitt takes his skills and hard work
elsewhere (for more money of course!), therefore putting an end to his Pepsi page! For more
information about Pepsi, choose a search engine and search for 'Pepsi' or visit
www.pepsi.com or www.pepsico.com.
2010-- "Youngistan ka wow".
2011– "Change the game" (India, Bangladesh & Pakistan for the 2011 Cricket World Cup)
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MISSION AND VISION OF THE COMPANY
Mission
“Our mission is to be the world's premier consumer Products Company focused on
convenient foods and beverages. We seek to produce financial rewards to investors as we
provide opportunities for growth and enrichment to our employees, our business partners and
the communities in which we operate. And in everything we do, we strive for honesty,
fairness and integrity.”
Vision
"PepsiCo's responsibility is to continually improve all aspects of the world in which we
operate - environment, social, economic - creating a better tomorrow than today.Our vision is
put into action through programs and a focus on environmental stewardship, activities to
benefit society, and a commitment to build shareholder value by making PepsiCo a truly
sustainable company.”
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Performance with Purpose
“At PepsiCo, we're committed to achieving business and financial success while leaving a
positive imprint on society - delivering what we call Performance with Purpose. Our
approach to superior financial performance is straightforward - drive shareholder value. By
addressing social and environmental issues, we also deliver on our purpose agenda, which
consists of human, environmental, and talent sustainability.”
PepsiCo Values & Philosophy
“Our Values & Philosophy are a reflection of the socially and environmentally responsible
company we aspire to be. They are the foundation for every business decision we make. We
are committed to delivering sustained growth through empowered people acting responsibly
and building trust.”
What It Means
Sustained Growth is fundamental to motivating and measuring our success. Our quest for
sustained growth stimulates innovation, places a value on results, and helps us understand
whether today's actions will contribute to our future. It is about the growth of people and
company performance. It prioritizes both making a difference and getting things done.
Empowered People means we have the freedom to act and think in ways that we feel will
get the job done, while adhering to processes that ensure proper governance and being
mindful of company needs beyond our own.
Responsibility and Trust form the foundation for healthy growth. We hold ourselves both
personally and corporately accountable for everything we do. We must earn the confidence
others place in us as individuals and as a company. By acting as good stewards of the
resources entrusted to us, we strengthen that trust by walking the talk and following through
on our commitment to succeeding together.
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PRODUCT PROFILE OF PEPSICO
Following are the brands of PepsiCo in Indian soft drink market and they differ in taste,
flavor and also in their colours.
 PEPSI AND ATOM COLA:
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BRAND HISTORY
Pepsi is a hundred-year-old brand loved by over 200 million people worldwide. The
largest single selling soft drink brand in India, Pepsi is ubiquitous on just about every
social occasion.
 Youngistaan loves it. 200 million people worldwide love it. But what has made Pepsi
the single largest selling soft drink brand in India is actually a formula concocted a
century ago in a faraway continent.
 1886, the US. Caleb Bradman, a man with a plan formulated a blockbuster of a
digestive drink and decided to call it Brad‟s drink. The potion was to become Pepsi
Cola in 1898, and eventually, Pepsi in 1903.
 Since its inception, Pepsi has always been at the forefront of the beverage industry
and has come up with revolutionary concepts such as Diet Pepsi, 2l bottles, recyclable
plastic cola bottles and the enviable My Can.
 Atom plays the role of strong cola in the wide range of PepsiCo soft drink products.
BRAND ADVANTAGE
 Pepsi has become a friend to youth and youth culture. Over generations, youngsters
have grown up with Pepsi and have shared an emotional connect with it unlike with
any other cola brand. Be it parties, hangouts with friends, or just another day at home,
a day is never complete without the fizz of Pepsi!
 Pepsi has always fuelled youth passions like cricket, Bollywood, music and now
football. Youth icons like MS Dhoni, Ranbir Kapoor, Didier Drogba, Virendar
Sehwag, Sachin Tendulkar, Priyanka Chopra and Deepika Padukone have endorsed
Pepsi since its launch in India.
 Pepsi Changed the Game during the 2011 cricket world cup by challenging
convention, celebrating the unorthodox and by becoming the official sponsor of
everything that was unofficial about the sport! Change the Game even as a thought
has gained enormous popularity and generated tremendous buzz.
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BRAND FACTS
 Flagship brand of PepsiCo.
 100 year old brand loved by over 200 million people worldwide.
 An iconic youth brand in India.
 The single largest selling soft drink brand in India.
 Atom was launched in 2013.
 7UP :
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BRAND HISTORY
7UP, the refreshing clear drink with a natural lemon and lime flavour was created in 1929.
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. Fido became an
instant hit with his trendy look, laid-back attitude and unconventional take on life. During the
brand‟s early years in India, 7UP gained market leader status in the lemon lime category by
being one of the first to be nationally distributed besides being marketed as a healthier
alternative to other soft drinks.
BRAND ADVANTAGE
For the past two years, 7UP‟s ambition as a brand has been to capture and own the lemon
refreshment territory within the clear lime category. „Lemon‟ has proven to be a clear and
relevant differentiator for the brand. Further, the emotional connect with the idea of uplift
through refreshment has led to an impressive payoff for the brand.
BRAND FACTS
There are many theories for the origin of the 7UP name.
According to Professor Gary Yu (UCSB) and researchers for the popular Uncle John‟s
Bathroom Reader the name is derived from the atomic mass of Lithium, 7, which was
originally one of the key ingredients of the drink (lithium citrate). However, there are
numerous other myths explaining the name:
 Its creator named the soft drink after winning at a casino with three rolls of 7 and the
letter U.
 The original bottle contained seven ounces; its creator came up with the name while
playing dice.
 7UP was the seventh large commercial lemonade brand that tasted the same.
 Before the formula changed in 2006, a can of 7UP included seven ingredients.
 The „Up‟ in the drink‟s name might refer to the original inclusion of lithium citrate, when
it was marketed as a patent medicine to cure hangovers.
 The name „7UP‟ was a reference to the esoteric concept of the Seven Planes, made
famous by the Internet series The Arrivals.
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 The name came from the seventh-inning stretch „7UP‟ in baseball tradition.
 7UP was created in 1929
 7UP was launched in India in 1990.
 MOUNTAIN DEW :
BRAND HISTORY
The main formula of Mountain Dew was invented in Virginia. The drink was named and first
marketed in Johnson City, Tennessee and Knoxville, Tennessee in 1948. In India, Mountain
Dew set the soft drink category ablaze in 2003 with its iconic launch campaign „Cheetah Bhi
Peeta Hai‟.
BRAND ADVANTAGE
It is a soft drink that exhilarates like no other because of its active, high-energy, extreme
citrus taste. The idea of daring, challenges, a „can do‟ attitude, adventure and exhilaration are
PepsiCo Summer Internship Project Report Page 28
deeply entrenched in its brand DNA. The brand has always celebrated the bold, adventurous
and rebellious spirit of youth. This is reflected in the high-adrenaline advertising of the brand
and its connection to outdoor adventure.
BRAND FACTS
In 2007, the brand was re-launched with a completely new, punchier formulation.
Communication aimed at forging a strong emotional connect with the audience. Thus began
the „Darr Ke Aage Jeet Hai‟ campaign, which acknowledged that fear was a very real aspect
of the world of adventure and Mountain Dew wanted young people to believe in themselves
in their moment of fear. For beyond fear lay victory.
 Mountain Dew was invented in Virginia in 1948.
 It was launched in India in 2003.
 Mirinda :
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BRAND HISTORY
Mirinda is an international soft drink brand from Spain that was launched in India in 1991.
The irresistible taste of Mirinda was communicated through our 1996 „Mirinda Men‟
campaign, the 2000 „Taste Pe Atka, Mirindaaaa‟ campaign and the „Taste Aisa Chaye
Character Fisla Jaye‟ campaign of 2003.
In 2008, the brand decided to up the ante and deliver a brand philosophy that would resonate
strongly with consumers. Consequently, Mirinda adopted a bold and vibrant colour, great
orangey taste and sparkling bubbles that encouraged one to be more carefree, spontaneous
and playful and occasionally give in to an impulse of uninhibited fun. This was conveyed
through the „Pagalpanti Bhi Zaroori Hai‟ campaign with Asin in 2008. In 2009, Mirinda
established orange as the core of the brand with „Orange Dikha Toh Mooh Bola Mirindaaaa‟.
BRAND FACTS
Mirinda has always stood for great bold taste that unleashes uninhibited fun. Taking the
promise forward, Mirinda launched two new exciting flavors- Orange Mango and Orange
Masala which appeal to the Indian palette. While Orange Mango is the perfect mix of the
sweet candy taste of mango flavor and the tanginess of original Mirinda Orange; Orange
Masala tickles the taste buds with a hint of fruit masala flavor added to Mirinda Orange. The
launch was supported by a robust 360-degree campaign including outdoor, online and a
consumer engagement programme to bring alive the taste experience.
 1991: Mirinda Orange launched in India.
 1998: Mirinda Lemon launched in India.
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 SLICE :
BRAND HISTORY
Slice was launched in India in 1993 as a refreshing mango drink and quickly went on to
become a leading player in the category. In 2008, Slice was re-launched with a winning
product formulation that made consumers fall in love with its taste. With new pack graphics
and clutter-breaking advertising, Slice has built a powerful appeal.
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BRAND ADVANTAGE
With the launch of the „Aamsutra‟ campaign in 2008, its winning taste and appealing pack
graphics, Slice created a great deal of excitement in its category and celebrated the
indulgence in mangoes like no other brand had done before.
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. The creative „Aamsutra‟
idea communicates the experience of extreme sensuous pleasure through the act of drinking
Slice. Slice was the first brand ever in the Juice and Juice Drinks category to sign on
Bollywood diva Katrina Kaif as the brand ambassador for Slice. In 2009, Slice took the
notion of indulgence to a whole new level with the launch of the „Slice Pure Pleasure
Holidays‟, giving its consumers a chance to win luxurious all-expenses-paid holidays to
dream European destinations like Paris, Vienna, Greece and Venice.
Brand Facts
 Slice was launched in India in 1993
 Slice Mangola was introduced in 1994
 Nimbooz :
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BRAND HISTORY
Nimbooz was launched in India on the 28th of February 2009. It is the latest addition to the
Pepsi beverages portfolio.
BRAND ADVANTAGE
The brand delivers very strongly on certain expectations. These are:
Locally Relevant Taste
Nimbooz is a great tasting product. It has capitalized on the existing familiarity with and high
consumption of unpackaged / home-made nimbu pani. It has remained true to its authentic
Indian Identity by using the traditional Matka (Earthen Pot) and Squeezer in the
manufacturing process.
Accessibility
Nimbooz is India‟s first nationally available packaged Nimbu Pani.
BRAND FACTS
 India‟s first nationally available packaged Nimbu Pani.
 It was launched in India in 2009.
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 TROPICANA:
BRAND HISTORY
Tropicana was founded in Bradenton, Florida, USA, in 1947. It is now enjoyed almost
everywhere in the world. Carefully nurtured for over 50 years, Tropicana has matured into
one of the most respected beverage brands. Tropicana is the #1 brand in packaged 100%
Juice* in the world in 2011 in off-trade volume. It is today available in 63 countries. Since
1998, Tropicana has been owned by PepsiCo, Inc. Tropicana Premium Gold was re-launched
as Tropicana 100% in 2008.
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BRAND ADVANTAGE
Tropicana continues to select the best fruit to manufacture high-quality juices and original
products, pioneer innovative processes and explore new markets for its products. 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).
BRAND FACTS
 Launched in India in 2004.
 Available in two categories - 100 percent juice and juice-based drinks.
 AQUAFINA:
BRAND HISTORY
Aquafina was first launched in the US in 1994. With its unique purification system and great
taste, Aquafina soon became the bestselling brand in the country. In India, Aquafina‟s
journey began with its launch in Bombay in 1999 and it was rolled out nationally by 2000.
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On the strength of its brand appeal and distribution, Aquafina has become one of India‟s
leading brands of bottled water in a relatively short span of time.
BRAND ADVANTAGE
Aquafina goes through a five step state-of-the-art purification process to give consumers pure
water and perfect taste. Aquafina has been built through refreshing and sharp advertising. The
„What a Body‟ campaign has helped the brand to drive premium, modern and youthful
imagery in an otherwise undifferentiated category. Bottled across India in 19 plants, Aquafina
is available across more than half a million outlets. Catering to diverse consumer needs and
occasions, it is available in various pack sizes like 300ml, 500ml, 1 ltr and 2 ltr bottles and in
bulk water jars of 25 ltrs. Aquafina is the face of PepsiCo‟s water conservation initiatives and
builds awareness about PepsiCo‟s efforts to replenish and restore the water table through its
pack labels.
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CONSUMER CHOICE AT A GLANCE:
Pepsi Mainly preferred by youngsters & kids
Mirinda Common Drink.
Slice Mostly preferred by Ladies & kids.
7up Youngsters
Mountain dew Youngsters
Tropicana Basically preferred by Ladies & kids.
Aquafina Mostly preferred by traveller.
Atom Strong cola mostly preferred by
youngsters.
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INTRODUCTION TO COMPETITOR
BACKGROUND OF THE COMPANY
Industry : Beverage
Country of Origin : United States
Founded : 1886
Founder(s) : Asa Griggs Candler
Headquarters : Coca-Cola Headquarters, Atlanta, Georgia, U.S
Key People : Muhtar Kent ( Chairman & CEO)
Products : Coca-Cola, Diet Coke, Thums Up, Sprite, Fanta, Limca,
Maaza, Minute Maid Pulpy Orange, Minute Maid Nimbu
Fresh, Burn, Kinley Water, Kinley Soda, Schweppes.
Revenue : US $ 48.01 billion
Operating Income : US $ 10.84 billion
Net Income : US $ 9.01 billion
Employees : 146,200 (2012)
Web Site : Coca-ColaCompany.com
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HISTORY OF COCA-COLA
In May, 1886, Coca Cola was invented by Doctor John Pemberton a pharmacist from
Atlanta, Georgia. John Pemberton concocted the Coca Cola formula in a three legged brass
kettle in his backyard. The name was a suggestion given by John Pemberton's bookkeeper
Frank Robinson. Being a bookkeeper, Frank Robinson also had excellent penmanship. It
was he who first scripted ”Coca Cola" into the flowing letters which has become the famous
logo of today. The soft drink was first sold to the public at the soda fountain in Jacob's
Pharmacy in Atlanta on May 8, 1886.
Until 1905, the soft drink, marketed as a tonic, contained extracts of cocaine as well as the
caffeine-rich kola nut. By the late 1890s, Coca-Cola was one of America's most popular
fountain drinks. With another Atlanta pharmacist, Asa Griggs Candler, at the helm, the Coca-
Cola Company increased syrup sales by over 4000% between 1890 and 1900.
Advertising was an important factor in Pemberton and Candler's success and by the turn of
the century, the drink was sold across the United States and Canada. Around the same time,
the company began selling syrup to independent bottling companies licensed to sell the drink.
Even today, the US soft drink industry is organized on this principle. Until the 1960s, both
small town and big city dwellers enjoyed carbonated beverages at the local soda fountain or
ice cream saloon. Often housed in the drug store, the soda fountain counter served as a
meeting place for people of all ages.
Often combined with lunch counters, the soda fountain declined in popularity as commercial
ice cream, bottled soft drinks, and fast food restaurants came to the fore. On April 23, 1985,
the trade secret "New Coke" formula was released. Today, products of the Coca Cola
Company are consumed at the rate of more than one billion drinks per day.
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The Coca-Cola Company started out as an insignificant one man business and over the last
one hundred and ten years it has grown into one of the largest companies in the world. The
first operator of the company was Dr. John Pemberton and the current operator is Roberto
Goizueta. Without societies help, Coca-Cola could not have become over a 50 billion dollar
business. Coca-Cola was invented by Dr. John Pemberton, an Atlanta pharmacist. He
concocted the formula in a three legged brass kettle in his backyard on May 8, 1886. He
mixed a combination of lime, cinnamon, coca leaves, and the seeds of a Brazilian shrub to
make the fabulous beverage (Things go better with Coke).
Coca-Cola debuted in Atlanta's largest pharmacy, Jacob's Pharmacy, as a five cent non-
carbonated beverage. Later on, the carbonated water was added to the syrup to make the
beverage that we know today as Coca-Cola. Coca-Cola was originally used as a nerve and
brain tonic and a medical elixir. Coca-Cola was named by Frank Robinson, one of
Pemberton's close friends; he also penned the famous Coca-Cola logo in unique script.
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COCA-COLA IN INDIA
After a 16 years absence, Coca-Cola returned to India in 1993. The Company's presence in
India was cemented in November that year in a deal that gave drink Coca-Cola ownership of
the nation's top soft-brands and bottling network. Coca-Cola India has made significant
investments to build and continually improve its business in India, including new production
facilities, wastewater treatment plants, and distribution systems and marketing equipment.
During the past decade, the Coca-Cola system has invested more than US$ 1 billion in India.
COCA-COLA PRODUCTS IN INDIA
Leading Indian brands Thums Up, Limca, Maaza, Citra and Gold Spot join the Company's
International family of brands including Coca-Cola, Diet Coke, Sprite and Fanta, and the
Schweppes products range.
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PRODUCTS OF COCA-COLA INDIA
COCA-COLA:
In India Coca-Cola was leading soft drink till 1977 when Government policies necessitated
its departure. Coca-Cola made its return to the country in 1993 and made significant
investments to ensure that the beverage is available to more and more people, even in remote
and inaccessible parts of the nation.
Over the past fourteen years has enthralled consumers in India by connecting with passions of
India – Cricket, movies, music & food. Coca-Cola‟s advertising campaigns “Jo Chaho Ho
Jaye” & “Life Ho Toh Aise” were very popular & had entered youths vocabulary. In
2002.Coca-Cola launched its iconic campaign “Thanda Matlab Coca-Cola” which sky
rocketed the performance to make it India‟s favourite soft drink brand.
LIMCA:
Limca was introduced in 1971 in India. Limca has remained unchallenged as the No.1
sparkling drink in the cloudy lemon segment. The success formula is the sharp fizz and
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lemoni bite combined with the single minded proposition of the brand as the provider of
“Freshness”.
Limca can cast a tangy refreshing spell on anyone, anywhere. Derived from “Nimbu” +
“Jaise” hence Lime Sa, Limca has lived up to its promises of refreshment and has been the
original thirst choice of millions of customers for over 3 decades.
THUMS UP:
Thums up is a leading sparkling soft drink and most trusted brand in India. Originally
introduced in 1977, Thums up was acquires by The Coca-Cola Company in 1993. Thums up
is known for its strong, fizzy taste and it confident, mature and uniquely masculine attitude.
This brand clearly seeks to separate the men from the boys.
SPRITE:
Sprite a global leader in the lemon lime category is the second largest sparkling beverage
brand in India. Launched in 1999, Sprite with its cut-thru perspective has managed to be a
true teen icon.
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FANTA:
Fanta entered the Indian market in the year 1993. Over the years Fanta has occupied a strong
market place and is identifies as “The Fun Catalyst”. Perceived as a fun youth brand, Fanta
stands for its vibrant colour, tempting taste and tingling bubbles that not just uplifts feelings
but also helps free spirit thus encouraging one to indulge in the moment. This positive
imagery is associated with happy, cheerful and special times with friends.
MINUTE MAID PULPY ORANGE:
The history of the Minute Maid brand goes as far back as 1945 when the Florida Food
Corporation developed orange juice powder. The company developed a process that
eliminated 80% of the water in the orange juice, forming a frozen concentrate that when
reconstitute created orange juice. They branded it Minute Maid a name connoting the
convenience and the ease of preparation. Minute Maid thus moved from a powdered
concentrate to the first ever orange juice from concentrate.
The launch of Minute Maid in India (started with the south of the country) is aimed to further
extend the leadership of Coca-Cola in India in the juice drink category.
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MAAZA:
Maaza was introduced in late 1970‟s. Maaza has today come to symbolise the very spirit of
mangoes. Universally loved for its taste, colour, thickness and wholesome properties, Maaza
is the mango lover‟s first choice
KINLEY:
The importance of water can never be understated, Particularly in a nation such as India
where water governs the lives of the millions, be it as a part of everyday ritual or as the
monsoon which gives life to the sub continent. Kinley water comes with the assurance of
safety from the Coca-Cola Company.
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RESEARCH METHODOLOGY
RESEARCH DESIGN
A research design is the specification of methods and procedures for acquiring the needed
information. It is overall operational pattern or framework of the project that stipulates what
information is to be collected from which source by what procedure.
There are three types of objectives in a marketing research project:-
 Exploratory Research.
 Descriptive Research.
 Conclusive Research.
Exploratory Research
It was required to collect the information about how much stock a particular and new retailer
is keeping at the time of survey, type of cooling equipment used, display material used, etc.
so the Exploratory Research was the type of research design that was required and being used
by me to do the project. But some cases Conclusive Research also used.
For my research I had to collect the information and data directly from each and every
type of retailer who is selling cold drinks. So the data I collected was the primary data. Hence
the research instrument I used was the primary data collection.
Therefore the research instrument used in my project was the EDS FORMAT & VISI
FORMAT. The EDS FORMAT contains both open ended and closed ended questions.
Retailers were asked both the closed ended and open-ended questions and their opinions form
the basis of my findings and suggestions.
The objective of exploratory research is to gather preliminary information that will help in
carrying out the analysis.
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Descriptive Research
The objective of descriptive research is to describe things, such as the market potential for a
product or the demographics and attitudes of consumers who buy the product. It also aims at
describing different behaviours of individuals towards numerous affecting factors.
Descriptive research or statistical research provides data about the population or
universe being studied. But it can only describe the "who, what, when, where and how" of a
situation, not what caused it. Therefore, descriptive research is used when the objective is to
provide a systematic description that is as factual and accurate as possible. It provides the
number of times something occurs, or frequency, lends itself to statistical calculations such as
determining the average number of occurrences or central tendencies.
Conclusive Research
As the term suggests, conclusive research is meant to provide information that is useful in
reaching conclusions or decision-making. It tends to be quantitative in nature that is to say in
the form of numbers that can be quantified and summarized. It relies on both secondary data,
particularly existing databases that are reanalyzed to shed light on a different problem than
the original one for which they were constituted, and primary research, or data specifically
gathered for the current study.
The purpose of conclusive research is to provide a reliable or representative picture of
the population through the use of a valid research instrument.
Based on the above definitions it can be established that this study is a Descriptive Research
as the attitudes of the customers who buy the products have been stated. Through this study
we are trying to analyze the various factors that may be responsible for the preference.
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SOURCES OF DATA
The data has been collected from both primary as well as secondary sources.
 PRIMARY DATA
 SECONDARY DATA
PRIMARY DATA
The primary data has been collected simultaneously along with secondary data for meeting
the established objectives to provide the solution for the problem identified in this study.
The methods that have been used to collect the primary data are:-
 Questionnaire.
 Personal Interview.
 Observations
SECONDARY DATA
It is defined as the data collected earlier for a purpose other than one currently being
pursued. As a researcher I have scanned lot of sources to get an access to secondary data
which have formed a reference base to compare the research findings. Secondary data in this
study has provided an insight and forms an outline for the core objectives established.
The various sources of secondary data used for this study are:-
 News papers.
 Magazines.
 Text books.
 Marketing reports of the company.
 Internet.
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RESEARCH MEASURING TOOLS & TECHNIQUES
The primary tool for the data collection used in this study is the respondent‟s response to the
questionnaire given to them. The various research measuring tools used are:-
 Questionnaire.
 Personal interview.
 Tables.
 Percentages.
 Pie-charts.
 Bar-charts.
 Column charts.
SAMPLING DESIGN
An integral component of a research design is the sampling plan. Especially it addresses three
questions: Who to survey (sample Unit), how many to survey (Sample Size) and how to
select them (sampling Procedure). Making the census study of the entire universe will be
impossible on the account of limitations of time and money. Hence sampling becomes
inevitable. A sample is only his portion of population. Properly done, sampling produces
representative data of the entire population.
SAMPLE SIZE
i. Through questionnaire – 200 respondents.
ii. Through personal interview – 40 respondents.
iii. Observations.
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SAMPLING TOOL
Questionnaire was used as a main tool for the collection of data, mainly because it gives the
chance for timely feedback from respondents. Moreover respondents feel free to disclose all
necessary detail while filling up a questionnaire. Respondents seeking any clarification can
easily be sorted out through tool.
Sampling Tools Respondents Number
Questionnaire Retailers/Customers 200
Personal Interview Retailers/Customers 40
Observations
Total 240
FIELD WORK
The study was conducted in 6 different territories of Bareilly region.
 The questionnaires were given to the respondents to fill in order to get their feedback.
 Questions were read out to the respondents and the answers were noted.
 Observations were made and recorded accordingly.
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LIMITATIONS OF THE STUDY
The main purpose of this study is to get idea about the visibility of the PepsiCo products in
the market. But there are certain factors which affects this study they are as follow:
 Since the sampling procedure was judgmental, the sample selected may not be true
representative of the population.
 Economic and market conditions are very unpredictable (Present and future).
 The project duration is limited to 8 weeks so it limits the area of study.
 The study was confined to Bareilly region due to which the result cannot be applied
universally.
 The respondents were not very comfortable while giving information about their stock.
 It cannot be used for a means of collecting information in areas where the literacy levels
are low as the respondents may not be able to understand the purpose or the language of
the EDS FORMAT & VISI FORMAT.
 There are chances of biasness in some answers as most of people while in the market
places are in a hurry and asking question in such ambience is not very fruitful or good
idea.
 During the survey, the ambience of Bareilly was not well due to extremely hot climate.
 This report is based on the data & information which was given by the retailers and it is
assumed that they had given correct information.
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ANALYSIS AND INTERPRETATION
OUTLET COMPOSITION
Sr. No. Sales No. of Outlets
1 Only Pepsi Products 18
2 Only Coca-Cola Products 30
3 Mixed 198
Interpretation: The exclusive stores of Coca-Cola are comparatively much higher in
comparison to the exclusive stores of Pepsi. The shops which sell products of other soft drink
companies hold a large number .The market composition of the area under survey can be
easily understood by the above graph.
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TYPES OF OUTLET
Sr. No. Sales No. of Outlets
1 Convenience shop 25
2 Groceries shop 38
3 Eateries 93
4 Pan shops 84
Interpretation: The maximum number of Outlets in the region surveyed is Eateries which
include Restaurants, Dhabas, Canteens, Confectionaries and Food stalls etc. it is followed by
Pan Shops. The most striking feature is that there is a great lag between the numbers of
different kinds of outlets. So the opportunities are clearly visible in two least scoring groups.
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PAYOUT PREFERENCE OF RETAILERS
Sr. No. Payout preference No. of Outlets
1 PepsiCo 134
2 Coca Cola 78
3 Equally preferred 28
Interpretation: The maximum number of retailers favoured the PepsiCo payouts. This also
gives the clear picture of the market favourability. The competitor is way behind in terms of
customer favourability.
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SCHEMES/ OFFERS/ REWARD/REIMBURSEMENT PREFERENCE OF
RETAILERS
Sr. No. Preference No. of Outlets
1 PepsiCo 72
2 Coca Cola 168
Interpretation: The above chart clearly shows that there is a big chance for improvement to
take place. In most of the cases retailers were not happy with the much elongated time
compared to expected time; in receiving the rewards.
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SHORTAGE COMPLAINTS
Sr. No. Preference No. of Outlets
1 PepsiCo 108
2 Coca Cola 54
3 No shortage complaints 78
Interpretation: Distribution must be taken care in a better way. Physical evidence must not
be neglected because it‟s very important to keep track of changing demand in accordance
with the season.
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BEHAVIOUR AND SCHEMES COMMUNICATION OF ROUTE AGENT
Sr. No. Preference No. of Outlets
1 Good 136
2 Satisfactory 69
3 Needs improvement 5
Interpretation: The above chart shows the sales force is having excellent goodwill in the
market. Company is in big advantageous position in terms of customer relationship. This
advantage can be capitalized in to huge opportunities.
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DATAANALYSIS OF VISBILITY
INSTRUMENTS
COOLING EQUIPMENT
Sr. No. Cooling equipment No. of Outlets
1 PepsiCo 98
2 Coca Cola 152
3 Owned 27
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VISI PURITY
Sr. No. VISI No. of Outlets
1 PepsiCo 27
2 Coca Cola 58
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GLOW SIGN BOARD
Sr. No. Company No. of Outlets
1 PepsiCo 23
2 Coca Cola 42
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OUTLET SIGNAGE
Sr. No. Company No. of Outlets
1 PepsiCo 43
2 Coca Cola 87
3 Both 23
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FLOOR RACK
Sr. No. Company No. of Outlets
1 PepsiCo 89
2 Coca Cola 48
3 Both 68
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RETAILERS’ CHOICE ON DISPLAY MATERIAL OFFERINGS
Sr. No. Company No. of Outlets
1 PepsiCo 64
2 Coca Cola 127
3 Both 49
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FINDINGS AND INTERPRETATIONS
 In terms of payout preference Pepsi is the most desired brand in the market
 Pepsi must take serious care of availability of products in the market especially in
peak season.
 Most of the retailers are happy with the behaviour of the PepsiCo personnel, while
rarely a few reported that still there are possibilities of improvement.
 Most of the retailers having company's cooling equipment are not satisfied with after
sale services. In peak season of May and June most of Pepsi Company's were not
working properly.
 Most of the retailers reported that they have not received any display material or
hoarding since last one year or so.
 Leakage and damage bottles are not return in distributor‟s side.
 In some cases few retailer shown me Insect or fungus in the sealed glass bottle and
reported against the cleanliness of glass bottles of PepsiCo.
 The most demanded pack of cold drink is of 200ml of glass bottle as it is in easy reach
of common or lower class customer.
 Schemes are not provided timely.
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SWOT ANALYSIS OF PEPSICO
STRENGTHS WEAKNESSES
Big Brand Name in India. Demands of specific products are not
fulfilled.
Company has goodwill among the public. Communication Gap between Distributor
and Retailer.
Good Schemes. Leakage Problem.
Increasing Market Share.
60 % market covered in India.
Distributors do not properly receive stock in
season.
Strong Distribution channel. Stock shortage problem in season.
Good Advertisement. Shortage of fridge or VISI in market.
Company has automatic plant for
production.
No maintenance of fridge or VISI.
Top management is very effective it take
decisions on every aspect of business like
social responsibility, sales promotion
marketing, finance distribution etc.
Sales representatives of company are not
performing according their efficiency so
sales effected.
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OPPORTUNITIES THREATS
NIMBOOZ is a good option for LIMCA. Competitor (Coca-Cola).
Expend the market in rural area. The forthcoming market would be the
market of consumers. So the schemes must
be consumers oriented.
Attractive Schemes. Main competitor of Pepsi is Coke. Now a
day‟s coke is Improving planning,
strategies & its implementation. Company
should also change the market strategies.
Increase number of VISI and create Pepsi
Monopoly market.
Now a day‟s awareness of consumers
increasing rapidly so consumers are
quantity conscious so company should plan
according customer‟s preferences.
Company should consider on non-user of
cold drink
PepsiCo is lagging in terms of display
material distribution.
Company can capture more market share
when introduces 200ml. For children at
reasonable price
Company must be decided to established
more visi in the market so that retailers pay
more attention towards our products.
Company must take care of VISI purity.
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CONCLUSION OF THE STUDY
As the results shows that market share of Pepsi cold drinks is more than the coca-cola, but it
has some drawback like poor services in some areas, no maintenance of cooling equipment,
cleanliness of glass bottles, etc. are the hurdle in path of growth of PepsiCo in India.
If we talk about its distribution network in Bareilly city, as survey results shows it is
satisfactory but in some areas retailers reported that the distributor is not giving heed to their
problems and uncooperative. And the delivery is not very regular in the peak season in some
areas and retailer are facing stock outs.
Advertisement which is backbone of any business in today's world is very good in PepsiCo
India. Pepsi is running various sales promotional schemes and promotional campaign for
retailers, but in comparison to the competitor it is not sufficient. To sustain the leadership and
approach the monopoly in the market PepsiCo needs to come up with more aggressive
strategies and their execution.
PepsiCo is the favorite of retailers in terms of goodwill. But there are also a few cases where
respondents said that there problems are not taken care by the company.
Respondents also registered that reimbursements of schemes and breakage and leakage are a
few of common bothering.
Bareilly city has the very good market for cold drinks and it can be captured by good
promotional schemes and better services. The only competitor of PEPSI is COCA-COLA, &
no local brands can beat PEPSI.
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SUGGESTIONS AND RECOMMENDATIONS
 Perform a detail demand survey at regular interval to know about the unique needs
and requirements of the customer.
 Better schemes should be introduced in the market & schemes should be provided
timely.
 There should be regular visit of company's high official to the market for listening to
the problems of the retailers.
 The company should be always in a position to receive continuous feedback and
suggestions from its customers and try to solve it without any delay to establish its
own good credibility.
 Display material should be provided in large quantity so that it motivate retailer also
helpful in receiving customer attention and ultimately better sales.
 More cooling equipment should be provided to retailers, so that retailer can stock
Pepsi brands more and it also play role of display material.
 There should be regular inspection of Pepsi's cooling equipments for malfunctioning
and maintenance of the same for the longer period of time.
 Company should contact and try for new businesses. Like Railways, Airport and in
Airlines, Bus Depot, Hotels, restaurant, etc.
 Rural people should be made aware of cold drink, they may be good prospects and
some low price policies should be made for them.
 The distribution channel should be focused on general stores because most of the
people purchase soft drinks from general stores.
 The company should update the people about pesticides time to time because most of
the people still afraid of pesticides.
 Most of the elders in the family take soft drinks but not Pepsi they prefer orange
rather than the strong taste. Company should come up with new taste keeping elders
in its mind to increase sale and market share.
 People are Confused about the affect of Pepsi in terms of health, company should
clear the soft drink role whether it is beneficial for health or not.
 PepsiCo should improve its advertisement quality, it should be realistic not imaginary.
PepsiCo Summer Internship Project Report Page 68
 People get updated by T.V. PepsiCo should increase the updating by publicity as well
as by Hoardings.
 Number of VISI.
 Services of VISI.
 Accurate demand and sales forecasting to avoid shortage.
 Retailers depend on suppliers.
 Create Monopoly market with the help of VISI.
 Schemes to attract retailer and to keep them motivated reimbursements must be
proper and on time.
PepsiCo Summer Internship Project Report Page 69
BIBLIOGRAPHY
WEBSITES
http://www.pepsico.com/
http://www.pepsi.com/
http://www.google.com/
http://www.Cocacola.com
http://www.cocacolaindia.com
www.news.bbc.co.uk
www.india-server.com
www.magindia.com
www.coca-colaindia.com
www.wikiinvest.com
www.open2.net
BOOKS REFERRED
Marketing Management – Philip Kotler
Research Methodology – Kothari
Market research – Naresh K. Malhotra
OTHERS
Annual report of PepsiCo 2011, 2012
Annual report of Coca-Cola 2012
PepsiCo Summer Internship Project Report Page 70
ANNEXURE
QUESTIONNAIRE
Name of Dealer: ____________________________________________________________
Contact Person: ____________________________________________________________
Address: __________________________________________________________________
Landmark: ________________________________________________________________
Contact No.: _______________________________________________________________
 Type of Shop:
 Eatery  Pan shop
 Grocery  Convenience
 Which brand do you purchase:
 PEPSI  Both
 COCA-COLA
 Which company‟s payout do you prefer:
 PEPSI  Either
 COCA-COLA
PepsiCo Summer Internship Project Report Page 71
 Which company provides better offers and quick reimbursement:
 PEPSI  COCA-COLA
 In peak season shortage problem often occurs with:
 PEPSI  Neither
 COCA-COLA
 Behaviour, schemes communication of route agent:
 Good  Satisfactory
 Needs Improvement  Bad
 Cooling equipment:
 PEPSI  OWNED
 COCA-COLA
 Which company gives more emphasis on VISI Purity:
 PEPSI  COCA-COLA
PepsiCo Summer Internship Project Report Page 72
 Which company provides more facilities in terms of display material:
 PEPSI
 Both equally
 COCA-COLA
 Any specific comments:
………………………………………………………………………….
………………………………………………………………………….
 Any suggestion to the company:
………………………………………………………………………….
………………………………………………………………………….
THANK YOU!

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An Internship Report on PepsiCo By Amitesh Singh Yadav

  • 1. STUDY OF MARKET VISIBILITY AND AVAILABILITY OF PRODUCTS For PepsiCo India Holdings Pvt. Ltd A Report on Project Work In Masters of Business Administration By Amitesh singh yadav 215112094 DEPARTMENT OF MANAGEMENT STUDIES NATIONAL INSTITUTE OF TECHNOLOGY TIRUCHIRAPPALLI-620015 SEPTEMBER 2013
  • 2. BONAFIDE CERTIFICATE This is to certify that the Summer Project Report titled “STUDY OF MARKET VISIBILITY AND AVAILABILITY OF PRODUCTS” is a bonafide record of the work done by, Amitesh Singh Yadav (215112094) Studying MASTER OF BUSINESS ADMINISTRATION in the DEPARTMENT OF MANAGEMENT STUDIES, National Institute of Technology, Tiruchirappali, during the academic year 2012-2014. Dr. VJ Siva kumar Dr. N Thamaraiselvan Internal Guide Head of the Department Department of Management Studies, Department of Management Studies, National Institute of Technology, National Institute of Technology, Tiruchirapalli-15. Tiruchirapalli-15. Project Viva-Voce held on ………………….. Internal Examiner External Examiner
  • 3. PepsiCo Summer Internship Project Report Page 3 ACKNOWLEDGEMENT There is always a sense of gratitude one expresses to others for the helpful and needy service they render during all phases of life. I have completed this training with the help of different personalities. I wish to express my gratitude towards all of them. It gives me immense pleasure to express my deep regards and sincere sense of gratitude to for his guidance throughout the training. Thank you so much sir for your able and worthy guidance. I am highly indebted to my project mentor Mr. Rahul Srivastav (Territory Development Manager) for his continuous support, supervision motivation and guidance throughout the tenure of my project in spite of his hectic schedule. It was truly remained driving spirit in my project and his experience gave me the light in handling project and helped me in clarifying the abstruse concepts, requiring knowledge and perception, handling critical situations and in understanding the objective of my work. I would like to thank Mr. Vijay Vikram Singh (Area Development Coordinator) & Mr. Neeraj Jaiswal (Customer Executive) whose valued suggestions and directions always encouraged and motivated me for the project. They helped me in understanding the market and other related concepts and processes in a better and easier way. I would like to thank all the staff of PepsiCo India Holdings Pvt. Ltd for their dedication & support. Thanks to all the RSPs and PSRs for their help and contribution. I also earnestly thank Dr. VJ Siva Kumar; Professor (DOMS) my faculty guide for his kind support in helping me through the various stages, his attention, care and guidance have been instrumental in meeting the objectives of the project. It was my privilege to be under such a veteran. I thank Dr. N Thamaraiselvan, Head Department of Management Studies (DOMS) for providing me an opportunity to do the project.
  • 4. PepsiCo Summer Internship Project Report Page 4 TABLE OF CONTENTS CONTENTS EXECUTIVE SUMMARY.............................................................................................................. 4 PREFACE........................................................................................................................................ 7 BACKGROUND OF THE STUDY ................................................................................................ 8 OBJECTIVES OF THE STUDY .................................................................................................... 9 SCOPE OF THE STUDY................................................................................................................ 9 BACKGROUND OF THE COMPANY ....................................................................................... 10 COMPANY PROFILE IN INDIAN SCENARIO ........................................................................ 14 HISTORY OF PEPSICO .............................................................................................................. 18 MISSION AND VISION OF THE COMPANY ........................................................................... 21 PEPSICO VALUES & PHILOSOPHY .................................................................................... 22 PRODUCT PROFILE OF PEPSICO........................................................................................... 23 CONSUMER CHOICE AT A GLANCE: .................................................................................... 36 INTRODUCTION TO COMPETITOR....................................................................................... 37 BACKGROUND OF THE COMPANY.................................................................................... 37 HISTORY OF COCA-COLA ................................................................................................... 38 COCA-COLA IN INDIA............................................................................................................... 40 PRODUCTS OF COCA-COLA INDIA........................................................................................ 41 RESEARCH METHODOLOGY.................................................................................................. 45 RESEARCH DESIGN............................................................................................................... 45 SOURCES OF DATA................................................................................................................ 47 RESEARCH MEASURING TOOLS & TECHNIQUES ......................................................... 48 ANALYSIS AND INTERPRETATION ....................................................................................... 51 DATA ANALYSIS OF VISBILITY INSTRUMENTS................................................................. 57 FINDINGS AND INTERPRETATIONS...................................................................................... 63 SWOT ANALYSIS OF PEPSICO................................................................................................ 64 CONCLUSION OF THE STUDY ................................................................................................ 66 SUGGESTIONS AND RECOMMENDATIONS......................................................................... 67 BIBLIOGRAPHY ......................................................................................................................... 69 ANNEXURE.................................................................................................................................. 70 QUESTIONNAIRE ................................................................................................................... 70
  • 5. PepsiCo Summer Internship Project Report Page 5 EXECUTIVE SUMMARY PepsiCo is the world‟s premier consumer Products Company focused on convenience food and beverages. We seek to produce healthy financial reward to investors a we provide opportunities for growth and enrichment to our employees. As one of the largest food and beverage businesses in India, PepsiCo India offers consumers a wide-ranging portfolio of enjoyable and wholesome products. PepsiCo is a world leader in convenient foods and beverages, with 2012 revenues of more than US$ 66 billion and 278,000 employees. The group has built an expansive beverage and foods business. To support its operations, PepsiCo has 38 bottling plants and 3 food plants in India, of which a few are company owned and others are franchisee owned PepsiCo‟s a business based on its sustainability vision of making tomorrow better than today. PepsiCo‟s commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers. The whole business of any FMCG (Fast Moving Consumers Goods) company mainly depends on the retailers, so we can say that the retailers are the backbone of any FMCG organization . The whole project termed as products‟ market visibility enhancement & Visi Report, in which the whole analysis based on current market visibility position of products in Bareilly city.
  • 6. PepsiCo Summer Internship Project Report Page 6 The project was undertaken under the guidelines of PepsiCo India Holding Pvt. Ltd. to study the market visibility of PepsiCo products in order to increase the sales of Pepsi and problems faced by distributor and retailers and recommend the company how to solve these problems. A detailed survey to the consumer was carried to find out their preferences for Soft Drinks. The details of the methodology are stated below. Areas are C.B. Ganj, Fatehganj West, Meerganj, Nainital Road, Stadium Road, Sanjay Nagar Bypass, Pilibhit Bypass and Old city in Bareilly. Research design: Exploratory and descriptive. Sources of information are primary and secondary data.
  • 7. PepsiCo Summer Internship Project Report Page 7 PREFACE Market provides a key to gain actual success only to those brands which match best to the current environment i.e. ”imperative” which can be delivered what are the people needs and they are ready to buy at the right time without any delay. It is perfectly true but this also depends on a number of other pivotal factors. These factors include availability of good quality products and excellent taste and services along with visibility of the product in the market supported by perfect promotional and advertisement strategies; which further attract and add a golden opportunity for huge sales. This also depends on the good planning approach and provide ample opportunity plus sufficient amount of products for sales in the coming next financial year. This survey report introduces study of consumers‟ preferences for PEPSI. After going through a detail analysis of market behaviour and future prospect based on availability and visibility of the product in the market, it may also provide an opportunity to PEPSI to frame a good future plan to maximize its customer base and to establish its guiding role in the market of Bareilly in particular and throughout the country as a whole. The study report will also provide an opportunity to delineate its market potential business areas, products & services are to be offered by the company to the customers. This study report also provides the various factors affecting the services. Marketing Division of PEPSI has to keep in mind various factors specially while preparing a plan for marketing its product or services. Details description along with analysis of surveyed data is being presented in this report.
  • 8. PepsiCo Summer Internship Project Report Page 8 BACKGROUND OF THE STUDY Market study is an essential process to develop the companies‟ database by collection of data, analyses of data, reporting of the data according to the specific situation for any marketing activity that the company is facing due to the increase in the competition & the development of various marketing competitors or numerous external factors affecting. Modern marketing calls not only for developing a good product, but pricing it attractively & making it accessible to target customers. It’s pivotal to showcase the product in a very tempting fashion. Organizations also need to communicate with their present & potential customers about their present offerings. Needs to develops an effective & efficient strategy with the aim of creating awareness, developing knowledge and liking preference convictions among the organizations‟ target audience with a view to convert them into prospective buyer. This project report exhibits study of market visibility and availability of products of PepsiCo. It also captures the comparative analysis in terms of product market visibility and availability of competitor in Bareilly territory. This project report endeavours to study of "MARKET VISIBILITY OF PEPSICO PRODUCTS".
  • 9. PepsiCo Summer Internship Project Report Page 9 OBJECTIVES OF THE STUDY As it is known that soft-drink industry is very much sensitive towards promotions, retailers‟ preferences, visibility and availability of the product in the market place. This is also commonly known that presentation of the soft-drink on retail shop is one of the most crucial factors deciding the performance of a particular brand. Keeping the axiom in the mind that “AWAY FROM SIGHT, AWAY FROM MIND”, the objectives of the study are as following:  The main objective of the project is to analyze and study in efficient way the current position of PepsiCo products‟ market visibility.  To perform SWOT analysis of PepsiCo. This would help us identify areas of potential opportunities to sustain the market leadership.  The study was aimed to perform Market visibility Analysis of products of the Company & find out different affecting factors.  Another objective of the study was to perform Competitive analysis between PepsiCo and its competitor Coca-Cola. SCOPE OF THE STUDY This study basically tries to discover the current position of PepsiCo in the market. It also tries to discover the present preferences of the customers and retailers on the basis of availability and showcasing of the products. It is primarily directed to the general public but was done only in Bareilly.
  • 10. PepsiCo Summer Internship Project Report Page 10 BACKGROUND OF THE COMPANY Type : Food & Non-alcoholic beverage Manufacturer : PepsiCo. Country of Origin : United States Founded : New Bern N.C, U.S. (1890) Founder(s) : Caleb Bradham, Donald M. Kendall and Herman W. Lay Headquarters : Purchase, New York, U.S. R & D headquarters in Valhalla Key People : Indra Nooyi (Chairperson and CEO) Products : Pepsi, Diet Pepsi, Mountain Dew, AMP Energy, Aquafina, Sierra, IST, SoBe, Starbucks Frappuccino, Lipton Iced Tea, 7up, Atom, Mirinda, Izze, Tropicana Products, Copella, Naked Juice, Gatorade, Propel Fitness Water, Quaker Oats Company, Lay's, Doritos, Cheetos, Kurkure, Fritos, Rold Gold, Ruffles, Tostitos,Slice. Revenue : US $ 66.504 billion Operating Income : US $ 9.633 billion Net Income : US $ 6.462 billion Employees : 278,000 (2012) Divisions : PepsiCo Americas, PepsiCo International Web Site : PepsiCo.com
  • 11. PepsiCo Summer Internship Project Report Page 11 Pepsi Cola Company now produces and markets nearly 200 refreshment beverages to retail, restaurants and food service customers in more than 190 countries and territories around the world. PepsiCo World Headquarters is located in Purchase, New York. Pepsi Co. is the world leader in the food chain business. It consists of many companies amongst which the prominent ones are Pepsi Cola, Frito-lay, Pepsi food international, Pizza-hut, KFC and Taco bell. The group is presently into three most profitable businesses namely, Beverages Snacks foods and Restaurants. The beverages segment primarily market it Pepsi diet, Pepsi Mountain Dew and other brands worldwide and 7UP outside the U.S. market. They are positioned in close competition with Coca Cola inc. of USA. The Snacks food divisions manufacture and distribute and markets others snacks worldwide. The restaurant segment primarily consists of the operations of the worldwide Pizza-Hut, Taco bell, PepsiCo‟s restaurant distribution operation, supplies to Company owned and Franchise restaurants in the U.S. When Coca Cola changed its formula in 1985; Pepsi Stepped up its competition with its long time rival claiming victory in the Cola-wars. Coke and Pepsi expended their rivalry to tea in 1991 when Pepsi formed a venture with No.1 Lipton in response to Coke‟s announced venture with Nestle (Nestea). “PepsiCo is going blue”. This was the new color adopted by the company to strengthen its brand globally. Also the company is changed colors from Generation X to GENERATION NEXT. Although Pepsi holdings over the years have become diverse in such fields as the
  • 12. PepsiCo Summer Internship Project Report Page 12 Snacks industry and Restaurants industry, this portfolio will discuss its core business and its highly successful business of Beverages. The soft drink industry customer base is probably the widest and deepest base in a world that is flooded with some many categories. According to Beverage Digest the customer base for soft drinks is a whopping 95% of regular users in the United States. This represents a large field of potential customers for Pepsi Cola. Pepsi prefers to segment itself as the beverage choice of the “New Generation”, “Generation Next”, or just as the “Pepsi Generation”. These terms adopted in Pepsi‟s advertising campaigns are referring to the markets that marketers refer to as Generation X. The Generation X consumer is profiled to be between the ages of 18 to 29. They have high expectations in life and are very mobile and active. They adopt a lifestyle of living for today and not worrying about long-term goals. Those Pepsi‟s main emphasis on this segment they also have a focus on the 12 to 18 year old market. Pepsi believes if they can get this market to adopt their product then they could establish a loyal customer for life. Pepsi Cola throughout its 100 years of existence has developed much strength. One of the strengths that have developed Pepsi into such a large corporation is a strong franchise system. The strong franchise system was the backbone of success along with a great entrepreneur spirit. Pepsi‟s franchise system and distributors is credited to bring Pepsi from a 7,968 gallons of soda sold in 1903 to nearly 5 billion gallons in the year of 1997. Pepsi also has the luxury to spend 225 million dollars in advertising a year. This enormous advertising budget allows Pepsi to reinforce their products with reminder advertising and promotions. This large budget also allows Pepsi to introduce new products and very quickly make the consumer become aware of their new products.
  • 13. PepsiCo Summer Internship Project Report Page 13 Pepsi also has had the good fortune of making very wise investments. Some of the best investments have been in their acquiring several large fast food restaurants. They have also made wise investments in snack food companies like Frito Lay, which at present time is the largest snack company in the world. Probably high on the list of strengths is Pepsi‟s beverage line up. Pepsi has four soft drinks in the top ten beverages in the world. These brands are Pepsi, Mountain Dew, Diet Pepsi, and Caffeine Free Diet Pepsi. Some other strong brands are All Sport, Slice, Tropicana, Starbucks, Aquafina and a license agreement with Ocean Spray Juices.
  • 14. PepsiCo Summer Internship Project Report Page 14 COMPANY PROFILE IN INDIAN SCENARIO Since the entry of Pepsi co. to India in 1987, the soft drink Industry has undergone a radical change. When Pepsi entered parley was the leader with „Thumps UP‟ being its flagship brand. Other product offerings by parley included Limca & Gold Spot. Another upcoming player in the market was the erstwhile bottle of Coca-Cola, Pure Drinks. Its offerings included Campa Cola, Camps Lemon and Campa Orange. With the re-entry of Coca-Cola in the Indian market, Pepsi had to go in for more aggressive marketing to sustain its market share. The chronology the initial phase of the “Coal Wars” in India was:- July 1986 An application for soft drinks-cum-snack food joint venture by Pepsi, Voltas and Punjab Agro is submitted to the government after an earlier proposed alliance- 1985, between Pepsi and Duncan‟s of the Goenkas fails to take off. Sept.1988 Final approval to the Pepsi Foods Limited. Project granted by the Cabinet Committee on Economic Affairs of the Rajeev Gandhi Government. March 1990 Pepsi Cola and Seven up were launched in limited market in North India. May 1990 The government clears the Pepsi project again but with a change in brand name to Lehar Pepsi. Simultaneously it rejects the Coca-Cola application. Citra form the Parle stable hits the market.
  • 15. PepsiCo Summer Internship Project Report Page 15 Dec 1991 Pepsi extends its soft drinks reach on national scale. Products launched in Delhi and Bombay. Jan 1992 Brito Foods application cleared by the FTPB. Pepsi and Parle start initial negotiations for strategic alliance but talks break off after a while. 1993 Pepsi launches Teem and Slice. Captures about 25.30% of the soft drinks market in about two years. July 1993 Voltas pulls out of PFL joint venture. Pepsi decides to raise equity to 92% Reports of coke – Parle negotiations gain strength. 1994 Pepsi brought Dukes& Sons 1995 Pepsi launched Cans having capacity of 330 ml in various flavors. 1997 Pepsi brought Mirinda Orange opposite to Fanta. 1998 Pepsi launched Lemon Mirinda to give taught competition to Limca. 1999 Pepsi has launched its Diet Pepsi Can and 1.5 Liters pet battles for health conscious people.
  • 16. PepsiCo Summer Internship Project Report Page 16 1997 Refusing to dilute its equity state Coca-Cola winds up operations in the country. Parle launches Thumps Up and Drinks launches Campa Cola. 2001 Pepsi launched Aquafina opposite to Kinley. 2003 Pepsi launched Mountain Dew 2005 Mirinda lemon zinger, 7UP.Ice was launched by Pepsi. 2006 Bubbly Pepsi was launched. 2007 Pepsi Gold was launched 2009 Nimbooz by 7up was launched 2010 PepsiCo India recently launched a new flavor named “7UP Ice” in Indian market. It is hard that 7UP. The taste of 7UP Ice is mint. And Mirinda Bat Berry. The taste of Mirinda Bat Berry is like Glicodin. 2011 In April 2011, Pepsi announced that customers will be able to buy a complete stranger a soda at a new "social" vending machine, and even record a video that the stranger would see when they pick up the gift.
  • 17. PepsiCo Summer Internship Project Report Page 17 In May 2011, the week before Memorial Day, Pepsi launched a limited edition flavor called "Memorial Day Pepsi", with blueberry and cherry flavors added to the cola. 2012 In March 2012, Pepsi introduced Pepsi Next, a cola with half the calories of regular Pepsi. 2013 Pepsi launched Atom Cola, a cola with stronger taste in comparison to Pepsi cola. The brand was available in 200ml and 500ml glass and pet bottles respectively.
  • 18. PepsiCo Summer Internship Project Report Page 18 HISTORY OF PEPSICO 1893--Caleb Bradham, a young pharmacist and industrialist from New Bern, North Carolina, begins experimenting with many different soft drink concoctions; patrons and friends sample them at his drugstore soda fountain. 1898--It was first introduced as "Brad's Drink" in New Bern, , North Carolina in 1898 by Caleb Bradham, a combination of carbonated water, sugar, vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola" on August 28, 1898. Pepsi-Cola receives its first logo.
  • 19. PepsiCo Summer Internship Project Report Page 19 1902--The instant popularity of this new drink leads Bradham to devote all of his energy to developing Pepsi-Cola into a full-fledged business. He applies for a trademark with the U.S. Patent Office, Washington D.C., and forms the first Pepsi-Cola Company. The first Pepsi- Cola newspaper advertisements appeared in the New Bern Weekly Journal. 1910--The first Pepsi-Cola bottlers' convention is held in New Bern, North Carolina etc. 1920--Pepsi theme line speaks to the consumer with "Drink Pepsi-Cola, it will satisfy you." 1931--U.S. District Court for Eastern District Virginia declares the National Pepsi-Cola Company bankrupt, the second bankruptcy in Pepsi-Cola history. The Loft candy company acquires the National Pepsi-Cola Company. Charles G. Guth, president of Loft, assumes leadership of Pepsi and commands the reformulation of Pepsi-Cola syrup formula. 1940--Pepsi-Cola Company makes advertising history with "Nickel, Nickel," the first advertising jingle ever broadcast nationwide on radio. Pepsi receives its new logo, its third change since 1906. 1950-- Alfred N. Steele becomes President and CEO of Pepsi-Cola. Mr. Steele's wife, Hollywood movie star Joan Crawford, is instrumental in promoting the company's product line. Pepsi receives its new logo, which incorporates the "bottle cap" look. The new logo is the fifth in Pepsi history. 1960--Young adults become the target consumers and Pepsi's advertising keeps pace with "Now it's Pepsi, for those who think young”. 1970--Pepsi leads the way into metrics by introducing the industry's first two-liter bottles. Pepsi is also the first company to respond to consumer preference with light-weight,
  • 20. PepsiCo Summer Internship Project Report Page 20 recyclable, plastic bottles. Vic Bonomo is named President of Pepsi-Cola. The Pepsi World Headquarters moves from Manhattan to Purchase, NY. 1980--Pepsi becomes number one in sales in the take home market. 1990--American Music Award and Grammy winner rap artist Young MC writes and performs songs exclusively for national radio ads for Pepsi. Ray Charles joins the Pepsi family by endorsing Diet Pepsi. The slogan is "You Got the Right One Baby." 2000--Although Pepsi is a great place to work, Steven Truitt takes his skills and hard work elsewhere (for more money of course!), therefore putting an end to his Pepsi page! For more information about Pepsi, choose a search engine and search for 'Pepsi' or visit www.pepsi.com or www.pepsico.com. 2010-- "Youngistan ka wow". 2011– "Change the game" (India, Bangladesh & Pakistan for the 2011 Cricket World Cup)
  • 21. PepsiCo Summer Internship Project Report Page 21 MISSION AND VISION OF THE COMPANY Mission “Our mission is to be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.” Vision "PepsiCo's responsibility is to continually improve all aspects of the world in which we operate - environment, social, economic - creating a better tomorrow than today.Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.”
  • 22. PepsiCo Summer Internship Project Report Page 22 Performance with Purpose “At PepsiCo, we're committed to achieving business and financial success while leaving a positive imprint on society - delivering what we call Performance with Purpose. Our approach to superior financial performance is straightforward - drive shareholder value. By addressing social and environmental issues, we also deliver on our purpose agenda, which consists of human, environmental, and talent sustainability.” PepsiCo Values & Philosophy “Our Values & Philosophy are a reflection of the socially and environmentally responsible company we aspire to be. They are the foundation for every business decision we make. We are committed to delivering sustained growth through empowered people acting responsibly and building trust.” What It Means Sustained Growth is fundamental to motivating and measuring our success. Our quest for sustained growth stimulates innovation, places a value on results, and helps us understand whether today's actions will contribute to our future. It is about the growth of people and company performance. It prioritizes both making a difference and getting things done. Empowered People means we have the freedom to act and think in ways that we feel will get the job done, while adhering to processes that ensure proper governance and being mindful of company needs beyond our own. Responsibility and Trust form the foundation for healthy growth. We hold ourselves both personally and corporately accountable for everything we do. We must earn the confidence others place in us as individuals and as a company. By acting as good stewards of the resources entrusted to us, we strengthen that trust by walking the talk and following through on our commitment to succeeding together.
  • 23. PepsiCo Summer Internship Project Report Page 23 PRODUCT PROFILE OF PEPSICO Following are the brands of PepsiCo in Indian soft drink market and they differ in taste, flavor and also in their colours.  PEPSI AND ATOM COLA:
  • 24. PepsiCo Summer Internship Project Report Page 24 BRAND HISTORY Pepsi is a hundred-year-old brand loved by over 200 million people worldwide. The largest single selling soft drink brand in India, Pepsi is ubiquitous on just about every social occasion.  Youngistaan loves it. 200 million people worldwide love it. But what has made Pepsi the single largest selling soft drink brand in India is actually a formula concocted a century ago in a faraway continent.  1886, the US. Caleb Bradman, a man with a plan formulated a blockbuster of a digestive drink and decided to call it Brad‟s drink. The potion was to become Pepsi Cola in 1898, and eventually, Pepsi in 1903.  Since its inception, Pepsi has always been at the forefront of the beverage industry and has come up with revolutionary concepts such as Diet Pepsi, 2l bottles, recyclable plastic cola bottles and the enviable My Can.  Atom plays the role of strong cola in the wide range of PepsiCo soft drink products. BRAND ADVANTAGE  Pepsi has become a friend to youth and youth culture. Over generations, youngsters have grown up with Pepsi and have shared an emotional connect with it unlike with any other cola brand. Be it parties, hangouts with friends, or just another day at home, a day is never complete without the fizz of Pepsi!  Pepsi has always fuelled youth passions like cricket, Bollywood, music and now football. Youth icons like MS Dhoni, Ranbir Kapoor, Didier Drogba, Virendar Sehwag, Sachin Tendulkar, Priyanka Chopra and Deepika Padukone have endorsed Pepsi since its launch in India.  Pepsi Changed the Game during the 2011 cricket world cup by challenging convention, celebrating the unorthodox and by becoming the official sponsor of everything that was unofficial about the sport! Change the Game even as a thought has gained enormous popularity and generated tremendous buzz.
  • 25. PepsiCo Summer Internship Project Report Page 25 BRAND FACTS  Flagship brand of PepsiCo.  100 year old brand loved by over 200 million people worldwide.  An iconic youth brand in India.  The single largest selling soft drink brand in India.  Atom was launched in 2013.  7UP :
  • 26. PepsiCo Summer Internship Project Report Page 26 BRAND HISTORY 7UP, the refreshing clear drink with a natural lemon and lime flavour was created in 1929. 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. Fido became an instant hit with his trendy look, laid-back attitude and unconventional take on life. During the brand‟s early years in India, 7UP gained market leader status in the lemon lime category by being one of the first to be nationally distributed besides being marketed as a healthier alternative to other soft drinks. BRAND ADVANTAGE For the past two years, 7UP‟s ambition as a brand has been to capture and own the lemon refreshment territory within the clear lime category. „Lemon‟ has proven to be a clear and relevant differentiator for the brand. Further, the emotional connect with the idea of uplift through refreshment has led to an impressive payoff for the brand. BRAND FACTS There are many theories for the origin of the 7UP name. According to Professor Gary Yu (UCSB) and researchers for the popular Uncle John‟s Bathroom Reader the name is derived from the atomic mass of Lithium, 7, which was originally one of the key ingredients of the drink (lithium citrate). However, there are numerous other myths explaining the name:  Its creator named the soft drink after winning at a casino with three rolls of 7 and the letter U.  The original bottle contained seven ounces; its creator came up with the name while playing dice.  7UP was the seventh large commercial lemonade brand that tasted the same.  Before the formula changed in 2006, a can of 7UP included seven ingredients.  The „Up‟ in the drink‟s name might refer to the original inclusion of lithium citrate, when it was marketed as a patent medicine to cure hangovers.  The name „7UP‟ was a reference to the esoteric concept of the Seven Planes, made famous by the Internet series The Arrivals.
  • 27. PepsiCo Summer Internship Project Report Page 27  The name came from the seventh-inning stretch „7UP‟ in baseball tradition.  7UP was created in 1929  7UP was launched in India in 1990.  MOUNTAIN DEW : BRAND HISTORY The main formula of Mountain Dew was invented in Virginia. The drink was named and first marketed in Johnson City, Tennessee and Knoxville, Tennessee in 1948. In India, Mountain Dew set the soft drink category ablaze in 2003 with its iconic launch campaign „Cheetah Bhi Peeta Hai‟. BRAND ADVANTAGE It is a soft drink that exhilarates like no other because of its active, high-energy, extreme citrus taste. The idea of daring, challenges, a „can do‟ attitude, adventure and exhilaration are
  • 28. PepsiCo Summer Internship Project Report Page 28 deeply entrenched in its brand DNA. The brand has always celebrated the bold, adventurous and rebellious spirit of youth. This is reflected in the high-adrenaline advertising of the brand and its connection to outdoor adventure. BRAND FACTS In 2007, the brand was re-launched with a completely new, punchier formulation. Communication aimed at forging a strong emotional connect with the audience. Thus began the „Darr Ke Aage Jeet Hai‟ campaign, which acknowledged that fear was a very real aspect of the world of adventure and Mountain Dew wanted young people to believe in themselves in their moment of fear. For beyond fear lay victory.  Mountain Dew was invented in Virginia in 1948.  It was launched in India in 2003.  Mirinda :
  • 29. PepsiCo Summer Internship Project Report Page 29 BRAND HISTORY Mirinda is an international soft drink brand from Spain that was launched in India in 1991. The irresistible taste of Mirinda was communicated through our 1996 „Mirinda Men‟ campaign, the 2000 „Taste Pe Atka, Mirindaaaa‟ campaign and the „Taste Aisa Chaye Character Fisla Jaye‟ campaign of 2003. In 2008, the brand decided to up the ante and deliver a brand philosophy that would resonate strongly with consumers. Consequently, Mirinda adopted a bold and vibrant colour, great orangey taste and sparkling bubbles that encouraged one to be more carefree, spontaneous and playful and occasionally give in to an impulse of uninhibited fun. This was conveyed through the „Pagalpanti Bhi Zaroori Hai‟ campaign with Asin in 2008. In 2009, Mirinda established orange as the core of the brand with „Orange Dikha Toh Mooh Bola Mirindaaaa‟. BRAND FACTS Mirinda has always stood for great bold taste that unleashes uninhibited fun. Taking the promise forward, Mirinda launched two new exciting flavors- Orange Mango and Orange Masala which appeal to the Indian palette. While Orange Mango is the perfect mix of the sweet candy taste of mango flavor and the tanginess of original Mirinda Orange; Orange Masala tickles the taste buds with a hint of fruit masala flavor added to Mirinda Orange. The launch was supported by a robust 360-degree campaign including outdoor, online and a consumer engagement programme to bring alive the taste experience.  1991: Mirinda Orange launched in India.  1998: Mirinda Lemon launched in India.
  • 30. PepsiCo Summer Internship Project Report Page 30  SLICE : BRAND HISTORY Slice was launched in India in 1993 as a refreshing mango drink and quickly went on to become a leading player in the category. In 2008, Slice was re-launched with a winning product formulation that made consumers fall in love with its taste. With new pack graphics and clutter-breaking advertising, Slice has built a powerful appeal.
  • 31. PepsiCo Summer Internship Project Report Page 31 BRAND ADVANTAGE With the launch of the „Aamsutra‟ campaign in 2008, its winning taste and appealing pack graphics, Slice created a great deal of excitement in its category and celebrated the indulgence in mangoes like no other brand had done before. 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. The creative „Aamsutra‟ idea communicates the experience of extreme sensuous pleasure through the act of drinking Slice. Slice was the first brand ever in the Juice and Juice Drinks category to sign on Bollywood diva Katrina Kaif as the brand ambassador for Slice. In 2009, Slice took the notion of indulgence to a whole new level with the launch of the „Slice Pure Pleasure Holidays‟, giving its consumers a chance to win luxurious all-expenses-paid holidays to dream European destinations like Paris, Vienna, Greece and Venice. Brand Facts  Slice was launched in India in 1993  Slice Mangola was introduced in 1994  Nimbooz :
  • 32. PepsiCo Summer Internship Project Report Page 32 BRAND HISTORY Nimbooz was launched in India on the 28th of February 2009. It is the latest addition to the Pepsi beverages portfolio. BRAND ADVANTAGE The brand delivers very strongly on certain expectations. These are: Locally Relevant Taste Nimbooz is a great tasting product. It has capitalized on the existing familiarity with and high consumption of unpackaged / home-made nimbu pani. It has remained true to its authentic Indian Identity by using the traditional Matka (Earthen Pot) and Squeezer in the manufacturing process. Accessibility Nimbooz is India‟s first nationally available packaged Nimbu Pani. BRAND FACTS  India‟s first nationally available packaged Nimbu Pani.  It was launched in India in 2009.
  • 33. PepsiCo Summer Internship Project Report Page 33  TROPICANA: BRAND HISTORY Tropicana was founded in Bradenton, Florida, USA, in 1947. It is now enjoyed almost everywhere in the world. Carefully nurtured for over 50 years, Tropicana has matured into one of the most respected beverage brands. Tropicana is the #1 brand in packaged 100% Juice* in the world in 2011 in off-trade volume. It is today available in 63 countries. Since 1998, Tropicana has been owned by PepsiCo, Inc. Tropicana Premium Gold was re-launched as Tropicana 100% in 2008.
  • 34. PepsiCo Summer Internship Project Report Page 34 BRAND ADVANTAGE Tropicana continues to select the best fruit to manufacture high-quality juices and original products, pioneer innovative processes and explore new markets for its products. 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). BRAND FACTS  Launched in India in 2004.  Available in two categories - 100 percent juice and juice-based drinks.  AQUAFINA: BRAND HISTORY Aquafina was first launched in the US in 1994. With its unique purification system and great taste, Aquafina soon became the bestselling brand in the country. In India, Aquafina‟s journey began with its launch in Bombay in 1999 and it was rolled out nationally by 2000.
  • 35. PepsiCo Summer Internship Project Report Page 35 On the strength of its brand appeal and distribution, Aquafina has become one of India‟s leading brands of bottled water in a relatively short span of time. BRAND ADVANTAGE Aquafina goes through a five step state-of-the-art purification process to give consumers pure water and perfect taste. Aquafina has been built through refreshing and sharp advertising. The „What a Body‟ campaign has helped the brand to drive premium, modern and youthful imagery in an otherwise undifferentiated category. Bottled across India in 19 plants, Aquafina is available across more than half a million outlets. Catering to diverse consumer needs and occasions, it is available in various pack sizes like 300ml, 500ml, 1 ltr and 2 ltr bottles and in bulk water jars of 25 ltrs. Aquafina is the face of PepsiCo‟s water conservation initiatives and builds awareness about PepsiCo‟s efforts to replenish and restore the water table through its pack labels.
  • 36. PepsiCo Summer Internship Project Report Page 36 CONSUMER CHOICE AT A GLANCE: Pepsi Mainly preferred by youngsters & kids Mirinda Common Drink. Slice Mostly preferred by Ladies & kids. 7up Youngsters Mountain dew Youngsters Tropicana Basically preferred by Ladies & kids. Aquafina Mostly preferred by traveller. Atom Strong cola mostly preferred by youngsters.
  • 37. PepsiCo Summer Internship Project Report Page 37 INTRODUCTION TO COMPETITOR BACKGROUND OF THE COMPANY Industry : Beverage Country of Origin : United States Founded : 1886 Founder(s) : Asa Griggs Candler Headquarters : Coca-Cola Headquarters, Atlanta, Georgia, U.S Key People : Muhtar Kent ( Chairman & CEO) Products : Coca-Cola, Diet Coke, Thums Up, Sprite, Fanta, Limca, Maaza, Minute Maid Pulpy Orange, Minute Maid Nimbu Fresh, Burn, Kinley Water, Kinley Soda, Schweppes. Revenue : US $ 48.01 billion Operating Income : US $ 10.84 billion Net Income : US $ 9.01 billion Employees : 146,200 (2012) Web Site : Coca-ColaCompany.com
  • 38. PepsiCo Summer Internship Project Report Page 38 HISTORY OF COCA-COLA In May, 1886, Coca Cola was invented by Doctor John Pemberton a pharmacist from Atlanta, Georgia. John Pemberton concocted the Coca Cola formula in a three legged brass kettle in his backyard. The name was a suggestion given by John Pemberton's bookkeeper Frank Robinson. Being a bookkeeper, Frank Robinson also had excellent penmanship. It was he who first scripted ”Coca Cola" into the flowing letters which has become the famous logo of today. The soft drink was first sold to the public at the soda fountain in Jacob's Pharmacy in Atlanta on May 8, 1886. Until 1905, the soft drink, marketed as a tonic, contained extracts of cocaine as well as the caffeine-rich kola nut. By the late 1890s, Coca-Cola was one of America's most popular fountain drinks. With another Atlanta pharmacist, Asa Griggs Candler, at the helm, the Coca- Cola Company increased syrup sales by over 4000% between 1890 and 1900. Advertising was an important factor in Pemberton and Candler's success and by the turn of the century, the drink was sold across the United States and Canada. Around the same time, the company began selling syrup to independent bottling companies licensed to sell the drink. Even today, the US soft drink industry is organized on this principle. Until the 1960s, both small town and big city dwellers enjoyed carbonated beverages at the local soda fountain or ice cream saloon. Often housed in the drug store, the soda fountain counter served as a meeting place for people of all ages. Often combined with lunch counters, the soda fountain declined in popularity as commercial ice cream, bottled soft drinks, and fast food restaurants came to the fore. On April 23, 1985, the trade secret "New Coke" formula was released. Today, products of the Coca Cola Company are consumed at the rate of more than one billion drinks per day.
  • 39. PepsiCo Summer Internship Project Report Page 39 The Coca-Cola Company started out as an insignificant one man business and over the last one hundred and ten years it has grown into one of the largest companies in the world. The first operator of the company was Dr. John Pemberton and the current operator is Roberto Goizueta. Without societies help, Coca-Cola could not have become over a 50 billion dollar business. Coca-Cola was invented by Dr. John Pemberton, an Atlanta pharmacist. He concocted the formula in a three legged brass kettle in his backyard on May 8, 1886. He mixed a combination of lime, cinnamon, coca leaves, and the seeds of a Brazilian shrub to make the fabulous beverage (Things go better with Coke). Coca-Cola debuted in Atlanta's largest pharmacy, Jacob's Pharmacy, as a five cent non- carbonated beverage. Later on, the carbonated water was added to the syrup to make the beverage that we know today as Coca-Cola. Coca-Cola was originally used as a nerve and brain tonic and a medical elixir. Coca-Cola was named by Frank Robinson, one of Pemberton's close friends; he also penned the famous Coca-Cola logo in unique script.
  • 40. PepsiCo Summer Internship Project Report Page 40 COCA-COLA IN INDIA After a 16 years absence, Coca-Cola returned to India in 1993. The Company's presence in India was cemented in November that year in a deal that gave drink Coca-Cola ownership of the nation's top soft-brands and bottling network. Coca-Cola India has made significant investments to build and continually improve its business in India, including new production facilities, wastewater treatment plants, and distribution systems and marketing equipment. During the past decade, the Coca-Cola system has invested more than US$ 1 billion in India. COCA-COLA PRODUCTS IN INDIA Leading Indian brands Thums Up, Limca, Maaza, Citra and Gold Spot join the Company's International family of brands including Coca-Cola, Diet Coke, Sprite and Fanta, and the Schweppes products range.
  • 41. PepsiCo Summer Internship Project Report Page 41 PRODUCTS OF COCA-COLA INDIA COCA-COLA: In India Coca-Cola was leading soft drink till 1977 when Government policies necessitated its departure. Coca-Cola made its return to the country in 1993 and made significant investments to ensure that the beverage is available to more and more people, even in remote and inaccessible parts of the nation. Over the past fourteen years has enthralled consumers in India by connecting with passions of India – Cricket, movies, music & food. Coca-Cola‟s advertising campaigns “Jo Chaho Ho Jaye” & “Life Ho Toh Aise” were very popular & had entered youths vocabulary. In 2002.Coca-Cola launched its iconic campaign “Thanda Matlab Coca-Cola” which sky rocketed the performance to make it India‟s favourite soft drink brand. LIMCA: Limca was introduced in 1971 in India. Limca has remained unchallenged as the No.1 sparkling drink in the cloudy lemon segment. The success formula is the sharp fizz and
  • 42. PepsiCo Summer Internship Project Report Page 42 lemoni bite combined with the single minded proposition of the brand as the provider of “Freshness”. Limca can cast a tangy refreshing spell on anyone, anywhere. Derived from “Nimbu” + “Jaise” hence Lime Sa, Limca has lived up to its promises of refreshment and has been the original thirst choice of millions of customers for over 3 decades. THUMS UP: Thums up is a leading sparkling soft drink and most trusted brand in India. Originally introduced in 1977, Thums up was acquires by The Coca-Cola Company in 1993. Thums up is known for its strong, fizzy taste and it confident, mature and uniquely masculine attitude. This brand clearly seeks to separate the men from the boys. SPRITE: Sprite a global leader in the lemon lime category is the second largest sparkling beverage brand in India. Launched in 1999, Sprite with its cut-thru perspective has managed to be a true teen icon.
  • 43. PepsiCo Summer Internship Project Report Page 43 FANTA: Fanta entered the Indian market in the year 1993. Over the years Fanta has occupied a strong market place and is identifies as “The Fun Catalyst”. Perceived as a fun youth brand, Fanta stands for its vibrant colour, tempting taste and tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to indulge in the moment. This positive imagery is associated with happy, cheerful and special times with friends. MINUTE MAID PULPY ORANGE: The history of the Minute Maid brand goes as far back as 1945 when the Florida Food Corporation developed orange juice powder. The company developed a process that eliminated 80% of the water in the orange juice, forming a frozen concentrate that when reconstitute created orange juice. They branded it Minute Maid a name connoting the convenience and the ease of preparation. Minute Maid thus moved from a powdered concentrate to the first ever orange juice from concentrate. The launch of Minute Maid in India (started with the south of the country) is aimed to further extend the leadership of Coca-Cola in India in the juice drink category.
  • 44. PepsiCo Summer Internship Project Report Page 44 MAAZA: Maaza was introduced in late 1970‟s. Maaza has today come to symbolise the very spirit of mangoes. Universally loved for its taste, colour, thickness and wholesome properties, Maaza is the mango lover‟s first choice KINLEY: The importance of water can never be understated, Particularly in a nation such as India where water governs the lives of the millions, be it as a part of everyday ritual or as the monsoon which gives life to the sub continent. Kinley water comes with the assurance of safety from the Coca-Cola Company.
  • 45. PepsiCo Summer Internship Project Report Page 45 RESEARCH METHODOLOGY RESEARCH DESIGN A research design is the specification of methods and procedures for acquiring the needed information. It is overall operational pattern or framework of the project that stipulates what information is to be collected from which source by what procedure. There are three types of objectives in a marketing research project:-  Exploratory Research.  Descriptive Research.  Conclusive Research. Exploratory Research It was required to collect the information about how much stock a particular and new retailer is keeping at the time of survey, type of cooling equipment used, display material used, etc. so the Exploratory Research was the type of research design that was required and being used by me to do the project. But some cases Conclusive Research also used. For my research I had to collect the information and data directly from each and every type of retailer who is selling cold drinks. So the data I collected was the primary data. Hence the research instrument I used was the primary data collection. Therefore the research instrument used in my project was the EDS FORMAT & VISI FORMAT. The EDS FORMAT contains both open ended and closed ended questions. Retailers were asked both the closed ended and open-ended questions and their opinions form the basis of my findings and suggestions. The objective of exploratory research is to gather preliminary information that will help in carrying out the analysis.
  • 46. PepsiCo Summer Internship Project Report Page 46 Descriptive Research The objective of descriptive research is to describe things, such as the market potential for a product or the demographics and attitudes of consumers who buy the product. It also aims at describing different behaviours of individuals towards numerous affecting factors. Descriptive research or statistical research provides data about the population or universe being studied. But it can only describe the "who, what, when, where and how" of a situation, not what caused it. Therefore, descriptive research is used when the objective is to provide a systematic description that is as factual and accurate as possible. It provides the number of times something occurs, or frequency, lends itself to statistical calculations such as determining the average number of occurrences or central tendencies. Conclusive Research As the term suggests, conclusive research is meant to provide information that is useful in reaching conclusions or decision-making. It tends to be quantitative in nature that is to say in the form of numbers that can be quantified and summarized. It relies on both secondary data, particularly existing databases that are reanalyzed to shed light on a different problem than the original one for which they were constituted, and primary research, or data specifically gathered for the current study. The purpose of conclusive research is to provide a reliable or representative picture of the population through the use of a valid research instrument. Based on the above definitions it can be established that this study is a Descriptive Research as the attitudes of the customers who buy the products have been stated. Through this study we are trying to analyze the various factors that may be responsible for the preference.
  • 47. PepsiCo Summer Internship Project Report Page 47 SOURCES OF DATA The data has been collected from both primary as well as secondary sources.  PRIMARY DATA  SECONDARY DATA PRIMARY DATA The primary data has been collected simultaneously along with secondary data for meeting the established objectives to provide the solution for the problem identified in this study. The methods that have been used to collect the primary data are:-  Questionnaire.  Personal Interview.  Observations SECONDARY DATA It is defined as the data collected earlier for a purpose other than one currently being pursued. As a researcher I have scanned lot of sources to get an access to secondary data which have formed a reference base to compare the research findings. Secondary data in this study has provided an insight and forms an outline for the core objectives established. The various sources of secondary data used for this study are:-  News papers.  Magazines.  Text books.  Marketing reports of the company.  Internet.
  • 48. PepsiCo Summer Internship Project Report Page 48 RESEARCH MEASURING TOOLS & TECHNIQUES The primary tool for the data collection used in this study is the respondent‟s response to the questionnaire given to them. The various research measuring tools used are:-  Questionnaire.  Personal interview.  Tables.  Percentages.  Pie-charts.  Bar-charts.  Column charts. SAMPLING DESIGN An integral component of a research design is the sampling plan. Especially it addresses three questions: Who to survey (sample Unit), how many to survey (Sample Size) and how to select them (sampling Procedure). Making the census study of the entire universe will be impossible on the account of limitations of time and money. Hence sampling becomes inevitable. A sample is only his portion of population. Properly done, sampling produces representative data of the entire population. SAMPLE SIZE i. Through questionnaire – 200 respondents. ii. Through personal interview – 40 respondents. iii. Observations.
  • 49. PepsiCo Summer Internship Project Report Page 49 SAMPLING TOOL Questionnaire was used as a main tool for the collection of data, mainly because it gives the chance for timely feedback from respondents. Moreover respondents feel free to disclose all necessary detail while filling up a questionnaire. Respondents seeking any clarification can easily be sorted out through tool. Sampling Tools Respondents Number Questionnaire Retailers/Customers 200 Personal Interview Retailers/Customers 40 Observations Total 240 FIELD WORK The study was conducted in 6 different territories of Bareilly region.  The questionnaires were given to the respondents to fill in order to get their feedback.  Questions were read out to the respondents and the answers were noted.  Observations were made and recorded accordingly.
  • 50. PepsiCo Summer Internship Project Report Page 50 LIMITATIONS OF THE STUDY The main purpose of this study is to get idea about the visibility of the PepsiCo products in the market. But there are certain factors which affects this study they are as follow:  Since the sampling procedure was judgmental, the sample selected may not be true representative of the population.  Economic and market conditions are very unpredictable (Present and future).  The project duration is limited to 8 weeks so it limits the area of study.  The study was confined to Bareilly region due to which the result cannot be applied universally.  The respondents were not very comfortable while giving information about their stock.  It cannot be used for a means of collecting information in areas where the literacy levels are low as the respondents may not be able to understand the purpose or the language of the EDS FORMAT & VISI FORMAT.  There are chances of biasness in some answers as most of people while in the market places are in a hurry and asking question in such ambience is not very fruitful or good idea.  During the survey, the ambience of Bareilly was not well due to extremely hot climate.  This report is based on the data & information which was given by the retailers and it is assumed that they had given correct information.
  • 51. PepsiCo Summer Internship Project Report Page 51 ANALYSIS AND INTERPRETATION OUTLET COMPOSITION Sr. No. Sales No. of Outlets 1 Only Pepsi Products 18 2 Only Coca-Cola Products 30 3 Mixed 198 Interpretation: The exclusive stores of Coca-Cola are comparatively much higher in comparison to the exclusive stores of Pepsi. The shops which sell products of other soft drink companies hold a large number .The market composition of the area under survey can be easily understood by the above graph.
  • 52. PepsiCo Summer Internship Project Report Page 52 TYPES OF OUTLET Sr. No. Sales No. of Outlets 1 Convenience shop 25 2 Groceries shop 38 3 Eateries 93 4 Pan shops 84 Interpretation: The maximum number of Outlets in the region surveyed is Eateries which include Restaurants, Dhabas, Canteens, Confectionaries and Food stalls etc. it is followed by Pan Shops. The most striking feature is that there is a great lag between the numbers of different kinds of outlets. So the opportunities are clearly visible in two least scoring groups.
  • 53. PepsiCo Summer Internship Project Report Page 53 PAYOUT PREFERENCE OF RETAILERS Sr. No. Payout preference No. of Outlets 1 PepsiCo 134 2 Coca Cola 78 3 Equally preferred 28 Interpretation: The maximum number of retailers favoured the PepsiCo payouts. This also gives the clear picture of the market favourability. The competitor is way behind in terms of customer favourability.
  • 54. PepsiCo Summer Internship Project Report Page 54 SCHEMES/ OFFERS/ REWARD/REIMBURSEMENT PREFERENCE OF RETAILERS Sr. No. Preference No. of Outlets 1 PepsiCo 72 2 Coca Cola 168 Interpretation: The above chart clearly shows that there is a big chance for improvement to take place. In most of the cases retailers were not happy with the much elongated time compared to expected time; in receiving the rewards.
  • 55. PepsiCo Summer Internship Project Report Page 55 SHORTAGE COMPLAINTS Sr. No. Preference No. of Outlets 1 PepsiCo 108 2 Coca Cola 54 3 No shortage complaints 78 Interpretation: Distribution must be taken care in a better way. Physical evidence must not be neglected because it‟s very important to keep track of changing demand in accordance with the season.
  • 56. PepsiCo Summer Internship Project Report Page 56 BEHAVIOUR AND SCHEMES COMMUNICATION OF ROUTE AGENT Sr. No. Preference No. of Outlets 1 Good 136 2 Satisfactory 69 3 Needs improvement 5 Interpretation: The above chart shows the sales force is having excellent goodwill in the market. Company is in big advantageous position in terms of customer relationship. This advantage can be capitalized in to huge opportunities.
  • 57. PepsiCo Summer Internship Project Report Page 57 DATAANALYSIS OF VISBILITY INSTRUMENTS COOLING EQUIPMENT Sr. No. Cooling equipment No. of Outlets 1 PepsiCo 98 2 Coca Cola 152 3 Owned 27
  • 58. PepsiCo Summer Internship Project Report Page 58 VISI PURITY Sr. No. VISI No. of Outlets 1 PepsiCo 27 2 Coca Cola 58
  • 59. PepsiCo Summer Internship Project Report Page 59 GLOW SIGN BOARD Sr. No. Company No. of Outlets 1 PepsiCo 23 2 Coca Cola 42
  • 60. PepsiCo Summer Internship Project Report Page 60 OUTLET SIGNAGE Sr. No. Company No. of Outlets 1 PepsiCo 43 2 Coca Cola 87 3 Both 23
  • 61. PepsiCo Summer Internship Project Report Page 61 FLOOR RACK Sr. No. Company No. of Outlets 1 PepsiCo 89 2 Coca Cola 48 3 Both 68
  • 62. PepsiCo Summer Internship Project Report Page 62 RETAILERS’ CHOICE ON DISPLAY MATERIAL OFFERINGS Sr. No. Company No. of Outlets 1 PepsiCo 64 2 Coca Cola 127 3 Both 49
  • 63. PepsiCo Summer Internship Project Report Page 63 FINDINGS AND INTERPRETATIONS  In terms of payout preference Pepsi is the most desired brand in the market  Pepsi must take serious care of availability of products in the market especially in peak season.  Most of the retailers are happy with the behaviour of the PepsiCo personnel, while rarely a few reported that still there are possibilities of improvement.  Most of the retailers having company's cooling equipment are not satisfied with after sale services. In peak season of May and June most of Pepsi Company's were not working properly.  Most of the retailers reported that they have not received any display material or hoarding since last one year or so.  Leakage and damage bottles are not return in distributor‟s side.  In some cases few retailer shown me Insect or fungus in the sealed glass bottle and reported against the cleanliness of glass bottles of PepsiCo.  The most demanded pack of cold drink is of 200ml of glass bottle as it is in easy reach of common or lower class customer.  Schemes are not provided timely.
  • 64. PepsiCo Summer Internship Project Report Page 64 SWOT ANALYSIS OF PEPSICO STRENGTHS WEAKNESSES Big Brand Name in India. Demands of specific products are not fulfilled. Company has goodwill among the public. Communication Gap between Distributor and Retailer. Good Schemes. Leakage Problem. Increasing Market Share. 60 % market covered in India. Distributors do not properly receive stock in season. Strong Distribution channel. Stock shortage problem in season. Good Advertisement. Shortage of fridge or VISI in market. Company has automatic plant for production. No maintenance of fridge or VISI. Top management is very effective it take decisions on every aspect of business like social responsibility, sales promotion marketing, finance distribution etc. Sales representatives of company are not performing according their efficiency so sales effected.
  • 65. PepsiCo Summer Internship Project Report Page 65 OPPORTUNITIES THREATS NIMBOOZ is a good option for LIMCA. Competitor (Coca-Cola). Expend the market in rural area. The forthcoming market would be the market of consumers. So the schemes must be consumers oriented. Attractive Schemes. Main competitor of Pepsi is Coke. Now a day‟s coke is Improving planning, strategies & its implementation. Company should also change the market strategies. Increase number of VISI and create Pepsi Monopoly market. Now a day‟s awareness of consumers increasing rapidly so consumers are quantity conscious so company should plan according customer‟s preferences. Company should consider on non-user of cold drink PepsiCo is lagging in terms of display material distribution. Company can capture more market share when introduces 200ml. For children at reasonable price Company must be decided to established more visi in the market so that retailers pay more attention towards our products. Company must take care of VISI purity.
  • 66. PepsiCo Summer Internship Project Report Page 66 CONCLUSION OF THE STUDY As the results shows that market share of Pepsi cold drinks is more than the coca-cola, but it has some drawback like poor services in some areas, no maintenance of cooling equipment, cleanliness of glass bottles, etc. are the hurdle in path of growth of PepsiCo in India. If we talk about its distribution network in Bareilly city, as survey results shows it is satisfactory but in some areas retailers reported that the distributor is not giving heed to their problems and uncooperative. And the delivery is not very regular in the peak season in some areas and retailer are facing stock outs. Advertisement which is backbone of any business in today's world is very good in PepsiCo India. Pepsi is running various sales promotional schemes and promotional campaign for retailers, but in comparison to the competitor it is not sufficient. To sustain the leadership and approach the monopoly in the market PepsiCo needs to come up with more aggressive strategies and their execution. PepsiCo is the favorite of retailers in terms of goodwill. But there are also a few cases where respondents said that there problems are not taken care by the company. Respondents also registered that reimbursements of schemes and breakage and leakage are a few of common bothering. Bareilly city has the very good market for cold drinks and it can be captured by good promotional schemes and better services. The only competitor of PEPSI is COCA-COLA, & no local brands can beat PEPSI.
  • 67. PepsiCo Summer Internship Project Report Page 67 SUGGESTIONS AND RECOMMENDATIONS  Perform a detail demand survey at regular interval to know about the unique needs and requirements of the customer.  Better schemes should be introduced in the market & schemes should be provided timely.  There should be regular visit of company's high official to the market for listening to the problems of the retailers.  The company should be always in a position to receive continuous feedback and suggestions from its customers and try to solve it without any delay to establish its own good credibility.  Display material should be provided in large quantity so that it motivate retailer also helpful in receiving customer attention and ultimately better sales.  More cooling equipment should be provided to retailers, so that retailer can stock Pepsi brands more and it also play role of display material.  There should be regular inspection of Pepsi's cooling equipments for malfunctioning and maintenance of the same for the longer period of time.  Company should contact and try for new businesses. Like Railways, Airport and in Airlines, Bus Depot, Hotels, restaurant, etc.  Rural people should be made aware of cold drink, they may be good prospects and some low price policies should be made for them.  The distribution channel should be focused on general stores because most of the people purchase soft drinks from general stores.  The company should update the people about pesticides time to time because most of the people still afraid of pesticides.  Most of the elders in the family take soft drinks but not Pepsi they prefer orange rather than the strong taste. Company should come up with new taste keeping elders in its mind to increase sale and market share.  People are Confused about the affect of Pepsi in terms of health, company should clear the soft drink role whether it is beneficial for health or not.  PepsiCo should improve its advertisement quality, it should be realistic not imaginary.
  • 68. PepsiCo Summer Internship Project Report Page 68  People get updated by T.V. PepsiCo should increase the updating by publicity as well as by Hoardings.  Number of VISI.  Services of VISI.  Accurate demand and sales forecasting to avoid shortage.  Retailers depend on suppliers.  Create Monopoly market with the help of VISI.  Schemes to attract retailer and to keep them motivated reimbursements must be proper and on time.
  • 69. PepsiCo Summer Internship Project Report Page 69 BIBLIOGRAPHY WEBSITES http://www.pepsico.com/ http://www.pepsi.com/ http://www.google.com/ http://www.Cocacola.com http://www.cocacolaindia.com www.news.bbc.co.uk www.india-server.com www.magindia.com www.coca-colaindia.com www.wikiinvest.com www.open2.net BOOKS REFERRED Marketing Management – Philip Kotler Research Methodology – Kothari Market research – Naresh K. Malhotra OTHERS Annual report of PepsiCo 2011, 2012 Annual report of Coca-Cola 2012
  • 70. PepsiCo Summer Internship Project Report Page 70 ANNEXURE QUESTIONNAIRE Name of Dealer: ____________________________________________________________ Contact Person: ____________________________________________________________ Address: __________________________________________________________________ Landmark: ________________________________________________________________ Contact No.: _______________________________________________________________  Type of Shop:  Eatery  Pan shop  Grocery  Convenience  Which brand do you purchase:  PEPSI  Both  COCA-COLA  Which company‟s payout do you prefer:  PEPSI  Either  COCA-COLA
  • 71. PepsiCo Summer Internship Project Report Page 71  Which company provides better offers and quick reimbursement:  PEPSI  COCA-COLA  In peak season shortage problem often occurs with:  PEPSI  Neither  COCA-COLA  Behaviour, schemes communication of route agent:  Good  Satisfactory  Needs Improvement  Bad  Cooling equipment:  PEPSI  OWNED  COCA-COLA  Which company gives more emphasis on VISI Purity:  PEPSI  COCA-COLA
  • 72. PepsiCo Summer Internship Project Report Page 72  Which company provides more facilities in terms of display material:  PEPSI  Both equally  COCA-COLA  Any specific comments: …………………………………………………………………………. ………………………………………………………………………….  Any suggestion to the company: …………………………………………………………………………. …………………………………………………………………………. THANK YOU!