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  1. 1. GITAM Institute of Management, GITAM university, Visakhapatnam SUMMER INTERNSHIP PROJECT ON Consumer behaviour on Soft drinks AT PEARL BOTTLNG PVT. LTD. VISHAKAPATNAM Submitted by P.J.V.V.Satyanarayana Reg.No. 1225112340 Under the esteemed Guidance of Faculty Guide Industry Guide B.Nalini K.Venkateswarulu Assistant professor Training officer GIM Pearl bottling pvt.Ltd. In partial fulfilment for the award of the degree of MASTER OF BUSINESS ADMINISTRATION GITAM INSTITUTE OF MANAGEMENT GITAM UNIVERSITY Visakhapatnam 2012-2014
  2. 2. 2 PREFACE Summer training project is necessary part for fulfilment of MBA course. The emphasis in the project is providing the study and an insight into Indian FMCG Business Scenario. The summer training project is designed to provide participation of MBA program as on the job experience. This has given a chance to try and apply the academic knowledge and gain insight into corporate culture. This helps in developing decision-making abilities and emphasizes on active participation by the student. I undertook my Project in Pearl bottling Pvt. Ltd. Madhurawada Vishakhapatnam, a leading Bottler and Marketing partner of the Pepsi Foods. During the training, I had worked on the project “Consumer Behaviour on Soft Drinks.” I gained valuable experience & knowledge during the survey. The Project consists of my findings after tabulation of collected data, then analyzed conclusions were drawn and finally suggestions were put forward.
  3. 3. 3 ACKNOWLEDEMENT A task undertaken without offering prayers to almighty and talking blessings from the elders is not a good beginning. Likewise the work completed without acknowledging the assistance to those who were always by my sides to make my efforts fruitful in the task left incomplete. In the beginning, I would like to express my sincere thanks to my Institute teachers for giving me an opportunity to take the practical experience of working life. I convey my sincere thanks to Mr. K. venkateswarlu, Training officer, Peparl bottling Pvt. Ltd. P.M.Palem, Vishakhapatnam , and Mrs. B.Nalini , GITAM Institute of Management, Vishakhapatnam, both of them has been providing me the proper guidance and current information throughout this summer training project effectively and efficiently has been completed at the time of submission. I would also like to pay thanks to all my classmates and friends and my family members for co-operating with me and helping me to complete the project. P.J.V.V.SATYANARAYANA MBA III Tri
  4. 4. 4 Chapter 1 Particulars Page No. Executive Summary 7 Company Profile 8 Management Team 14 Products 16 Chapter 2 Annexure Questionnaire 87 Particulars Page No Marketing problem situation 31 Methodology 32 Data Analysis 38 Findings and Interpretation 82 Conclusion 84 Recommendations 85 Bibliography 86
  5. 5. 5 CHAPTER 1
  6. 6. 6 EXECUTIVE SUMMARY The distribution network of PEPSI is well known for its efficiency but company constantly strives for the betterment of their distribution network system. Emphasis of our study was to focus on the customer of company i.e., the retailers. The Retail Mapping of VISHAKAPATNAM is an integral step for the assessment, development and betterment of this system. The distribution system not only comprises the movement of the products but also incorporates the merchandising of the product, which is very broad in its purview. The project incorporates the analysis of the performance of distribution channel PEPSI and probing into opportunities of increasing the market share in VISHAKAPATNAM . The entire process had to be in an organized manner in order to deliver meaningful results for the Purpose of decision-making. The project was that of market research with surveys and observations as its major phases with the objective of gathering of all important information material for strengthening the position of PEPSI in Vishakhapatnam. PEPSI boasts of having the maximum market share in the beverage segment in Vishakhapatnam and is in constant process for the betterment of its product performance and customer as well retailer’s satisfaction.
  7. 7. 7 INTRODUCTION PepsiCo is a world leader in convenient foods and beverages, with 2005 revenues of more than $32 billion and more than 157,000 employees. The company consists of Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International and Quaker Foods North America. PepsiCo brands are available in nearly 200 countries and territories and generate sales at the retail level of about $85 billion. Many of PepsiCo's brand names are more than 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001. PepsiCo offers product choices to meet a broad variety of needs and preference -- from fun-for-you items to product choices that contribute to healthier lifestyles. PepsiCo’s mission is “To be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce healthy 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.” Shareholders PepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange in the United States. The company is also listed on the Amsterdam, Chicago, Swiss and Tokyo stock exchanges. PepsiCo has consistently paid cash dividends since the corporation was founded. Corporate Citizenship At PepsiCo, we believe that as a corporate citizen, we have a responsibility to contribute to the quality of life in our communities. This philosophy is expressed in our sustainability vision which states: “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.
  8. 8. 8 PEPSICO HEADQUARTERS PepsiCo World Headquarters is located in Purchase, New York, approximately 45 minutes from New York City. The seven building headquarters complex was designed by Edward Durrell Stone, one of America’s foremost architects. The building occupies 10 acres of a 144 – acre complex that includes the Donate M. Kendall Sculpture Gardens, a world acclaimed sculpture collection in a garden setting. The collection of works is focused on major twentieth century art, and features works by masters such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro and Class Olden berg. The gardens were originally designed by the world famous garden planner, Russelll Page, and have been extended by Francois Goffinet. The grounds are open to the public, and a visitor’s booth is in operation during the spring and summer. PepsiCo’s beverage business was founded at the turn of the century by Caleb Bradham, a New Bern, North Carolina druggist, who first formulated Pepsi – Cola. Today consumers spend about $33 billion on Pepsi-Cola beverages. Brand Pepsi and other Pepsi-Cola products – including Diet Pepsi, Pepsi-One, Mountain Dew, Slice, Sierra Mist and Mug Brands- account for nearly one-third of total soft drink sales in the United States, a consumer market totaling about #60 billion. Peps-Cola also offers a variety of non-carbonated beverages, including Aquafina bottled water, Fruit works and all Sport. In 1992 Pepsi-Cola formed a partnership with Tomas J. Lipton Co. today Lipton is the biggest selling ready-to drink tea brand in the United States. Pepsi-Cola also markets Frappuccino ready-to drink coffee through a partnership with Starbucks. In 2001 so be became a part of Pepsi-Cola. So be manufactures and markets an innovative line to beverages including fruit blends, energy drinks, dairy-based drinks, exotic teas and other beverages with herbal ingredients. Outside the united states, Pepsi-Cola soft drink operations include the business of Seven-Up International. Pepsi-Cola beverages are available in about 160 countries and territories. Pepsi-Cola began selling its products internationally in 1934 with its operations in Canada. Operations grew rapidly beginning in the 1950s. In addition to brands marketed in the United States, major products include Mirinda and Pepsi-Cola North America includes the United States and Canada. Key international markets include Argentina, Brazil, China, India, Mexico, Philippines, Saudi Arabia, Spain, Thailand and the United
  9. 9. 9 Kingdom. Pepsi-Co Beverages International also produces, sells and distributes Gatorade sports drinks as well as Tropicana and other juices internationally. Pepsi-Cola provides advertising, marketing, sales and promotional support to Pepsi-Cola bottlers and food service customers. This advertising. New advertising and exciting promotions keep Pepsi-Cola brands young. The company manufactures and sells soft drink concentrate to Pepsi-Cola bottlers. The company also provides fountain beverage products. Pepsi-Co’s snack food operations had their start in 1932 when two separate events took place. In San Antonio, Texas, Elmer Doolin bought the recipe for an unknown food product – a corn chip – and started an entirely new industry. The products was Fritos brand corn chips, and his firm became the Frito Company. That same year in Nashville, Tennessee, Herman W. Lay started his own business distributing potato chips. Mr. Lay later bought the company that supplied him with product and changed its name to H.W. Lay Company. The Frito Company and H.W. Lay Company merged in 1961 to become Frito-Lay, Inc. Today, Frito-Lay brands account more than half of the U.S. snack chip industry. PepsiCo began its international snack food operations in 1966. Today, with operations in more than 40 countries, it is the leading multinational snack chip company, accounting for more than one quarter of international retell snack chip sales. Products are available in some 120 countries. Frito-Lay international markets include Australia Brazil, Mexico the Netherlands, South Africa the United Kingdom and Spain. Often Frito-Lay products are known by local names. These names include Matutana in Spain, Sabritas and Gamesa in Mexico, Flma Chips in Brazil, Walkers in the United Kingdom and others. The company markets Frito-Lay brands on a global level, and introduces unique products for local tastes. Major Frito-Lay products include Ruffles, Lay’s and Doritos brands snack chips. Other major brands include Cheetos cheese flavored snacks, Tostitos tortilla chips, Santitas tortilla chips, Rold Gold pretzels and Sun Chips multigrain snacks. Frito-Lay also sells a variety of snack dips and cookies, nuts and crackers.
  10. 10. 10 GATORADE & TROPICANA Tropicana was founded in 1947 by Anthony Rossi as a Florida fruit packaging business. The company entered the concentrate orange juice business in 1949, registering Tropicana as a trademark. In 1954 Rossi pioneered a pasteurization process for orange juice. For the first time, consumers could enjoy the fresh taste of not-from-concentrate 100% Florida orange juice in a ready0to serve package the juice, Tropicana Pure Premium, became the company’s flagship product. In 1957 the name of the company was changed to Tropicana Products, headquartered in Bradenton, Florida. The company went public in 1957, was purchases by Beatrice Foods Co. in 1978, acquired by Kohlberg Kravis & Roberts in 1986 and sold to the seagram Company Ltd. in 1988. Seagram purchased Dole global juice business in 1995. PepsiCo acquired Tropicana, including the Dole juice business, in August 1998. Today the Tropicana brand is available in 63 countries. Principal brands in North America are Tropicana Pure premium, Tropicana Season’s Best, Dole Juices and Tropicana Twister. Internationally, principal brands include Tropicana Pure Premium and Dole juices along with Frui’Vita, Looza and Copella. Tropicana Pure Premium is the third largest brand of all food products sold in grocery stores in the United States. Gatorade sports drinks was acquired by the Quaker Oats Company in 1983 and become a part of PepsiCo with the merger in 2001. Gatorade is the first isotonic sports drink. created in 1965 by researchers at the University of Florida for the school’s football team, “The Gators,” Gatorade is now the world’s leading sport’s drink. QUAKER FOODS The Quaker Oats company was formed in 1901 when several American pioneers in oat milling came together to incorporate. in Ravenna; Ohio, Henry D. Seymour and William Heston had established the Quaker Mill Company and registered the now famous trademark. Seymour wanted his product to be symbol of honesty, integrity and strength. the figures of a man in Quaker clothes became the first registered trademark for breakfast cereal and remains the hallmark for Quaker Oats today. in Cedar Rapids, lowa, John Stuart and son, Robert, and their partner, George Douglas, operated the largest cereal mill of the time. Ferdinand Schumacher, known as “The Oatmeal King,” had founded German Mills American Oatmeal Company in 1856. Combining the Quaker Mill Company with the Stuart and Schumacher businesses brought together the top oats milling expertise in the country as the Quaker Oats Company.
  11. 11. 11 The first major acquisition of the company was Aunt Jemina Mills Company in 1926, which is today the leading manufacturer of pancake mixes and syrup. In 1986, the Quaker Oats Company acquired the Golden Grain Company, producers of Rice-A-Roni. PepsiCo merged with the Quaker Oats Company in 2001. Its products still have the eminence of wholesome, good-for-you food, as envisioned by the company over a century ago.
  12. 12. 12 CHAPTER 2
  13. 13. 13 Methodology Title of the Study "Consumer behaviour on soft drinks in Pearl bottling Pvt.Ltd, Vishakhapatnam” Objective of the study The main objective of the study is to study the consumer behaviour on soft drinks and soft drinks companies in Vishakhapatnam. Other objectives of the study 1. Identifying key attributes which attracts the customers to prefer particular soft drinks. 2. To recognize best branding composition at Vishakhapatnam. 3. To conduct promotional activities at various places of Vishakhapatnam. Methodology  Type of research: Exploratory Research  Data source: Primary  Data collection method: Direct personal interview to the customers with the help of Standardized and formalized questionnaire Sampling plan Sample Size: 200 Sample Population:  People in Vishakhapatnam at different regions. In which 50 from each region is collected. Sample Extent: Vishakhapatnam.
  14. 14. 14 Research Design and Methodology Under Research Methodology there are three types of methods for marketing research. They are as follows: a) The observation method b) The experimental method c) The survey method inclusive of panel method. In observation method data are collected on the direct observation. No talks take place. By observing the person the analysis makes the inventory as to product used by him at his home or kept as retailers stocks. In experimental method it is based on the concept that small-scale experiment is useful to indicate the expectations of large-scale experiment. The survey method information is gathered directly from individuals I three ways: 1. Telephone 2. E-Mail 3. Personal Interview The survey method is also mentioned as the “Questionnaire Technique” they are also segregated by: 1) In factual survey 2) Opinion survey 3) Interpretative survey For my project point of view, the method mainly used is: 1) Personal interview by questionnaire technique. FINDINGS Recommendations
  15. 15. 15 DATA ANALYSIS 1) Do you drink soft drinks Content Respondents Percentage Yes 176 84 No 24 12 Table no 4.1 : shows that Respondents responded to drink soft drinks Yes : 176 No : 24 88% 12% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes No
  16. 16. 16 2) How often do you have soft drinks per week Content Respondents Percentage Once in a week 28 14 Twice in a week 59 29.5 Thrice in a week 47 23.5 Every day 25 12.5 Rarely 41 20.5 Respondents responded to have soft drinks Once in a week : 28 Twice in a week : 59 Thrice in a week : 47 Everyday : 25 Rarely : 4 14% 29.50% 23.50% 12.50% 20.50% 0% 5% 10% 15% 20% 25% 30% 35% Once in a week Twice in a week Thrice in a week Every day Rarely
  17. 17. 17 3) What drink comes in your mind when you think of soft drinks Content Respondents Percentage Coke 91 45.5 Pepsi 63 31.5 Other 46 23 Respondents responded for the soft drinks that comes to the mind when they think of drinking soft drinks Coke products : 91 Pepsi products : 63 Others : 46 45.50% 31.50% 23% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% 50.00% Coke Pepsi Other
  18. 18. 18 4) what quality do you usually prefer to buy for your consumption Content Respondents Percentage Glass bottle 68 34 Cans 71 35.5 500 ml pet bottle 61 30.5 Respondents responded to prefer the quantity to consume Glass bottle : 68 Cans : 71 500 ml pet bottle : 61 34% 35.50% 30.50% 28% 29% 30% 31% 32% 33% 34% 35% 36% Glass bottle Cans 500 ml pet bottle
  19. 19. 19 5) What do you feel about Pepsi product range Content Respondents Percentage Excellent 20 10 Good 83 41.5 Satisfactory 58 29 Below satisfactory 22 11 Poor 17 8.5 Respondents responded on pepsi product range Excellent : 20 Good : 83 Satisfactory : 58 Below Satisfactory : 22 Poor : 17 10% 41.50% 29% 11% 8.50% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Excellent Good Satisfactory Below satisfactory Poor
  20. 20. 20 6) What do you feel about coke product range Content Respondents Percentage Excellent 44 22 Good 80 40 Satisfactory 65 32.5 Below satisfactory 8 4 Poor 3 1.5 Respondents responded on coke product range 22% 40% 32.50% 4% 1.50% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Excellent Good Satisfactory Below satisfactory Poor
  21. 21. 21 7) what occasions do you prefer to buy soft drinks Content Respondents Percentage Festivals 17 22 Parties 52 40 Picnics 8 32.5 Tours 11 4 Just like that 112 56 22% 40% 32.50% 4% 56% 0% 10% 20% 30% 40% 50% 60% Festivals Parties Picnics Tours Just like that
  22. 22. 22 8) What is your most prefer store for purchasing soft drinks Content Respondents Percentage(%) Super market 57 28.5 Pan shops 81 40.5 Grocery 16 8 Bakery 36 18 Multiplexes 10 5 28.50% 40.50% 8% 18% 5% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% Super market Pan shops Grocery Bakery Multiplexes
  23. 23. 23 9) How much you spend on soft drink per week Content Respondents Percentage(%) 0-50 58 29 50-100 80 40 100-150 37 18.5 150-200 19 9.5 >200 5 2.5 29% 40% 18.50% 9.50% 2.50% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 0-50 50-100 100-150 150-200 >200
  24. 24. 24 10) What is alternative you choose to soft drinks Content Respondents Percentage Water 39 19.5 Fruit juice 73 39.5 Coconut water 51 25.2 Milk shakes 18 9 Soda hub 19 9.5 19.50% 39.50% 25.20% 9% 9.50% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% Water Fruit juice Coconut water Milk shakes Soda hub
  25. 25. 25 11) What affects you more to chose particular soft drink Content Respondents Percentage Brand ambassador 49 24.5 Quality 73 36.5 Alternative pack 8 4 Taste 63 31.5 Availability 7 3.5 24.50% 36.50% 4% 31.50% 3.50% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% Brand ambassador Quality Alternative pack Taste Availability
  26. 26. 26 12) What kind of product do you want soft to introduce Content Respondents Percentage Fizzy drinks 46 23 Fruit drink 86 43 Energy drink 38 19 Alcoholic 5 2.5 Health care 25 12.5 23% 43% 19% 2.50% 12.50% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Fizzy drinks Fruit drink Energy drink Alcoholic Health care
  27. 27. 27 13) Which soft drink is more available to you Content Respondents Percentage Coke 120 60 Pepsi 80 40 60% 40% 0% 10% 20% 30% 40% 50% 60% 70% Coke Pepsi
  28. 28. 28 14) What kind of promotional activities affect sales of soft drinks Content Respondents Percentage Free tetra packet 52 26 Free gifts 69 34.5 Price reduction 62 31 Gift voucher 17 8.5 26% 34.50% 31% 8.50% 0% 5% 10% 15% 20% 25% 30% 35% 40% Free tetra packet Free gifts Price reduction Gift voucher
  29. 29. 29 15) Do you feel that price reduction increase your consumption Content Respondents Percentage Yes 155 77.5 No 45 22.5 77.50% 22.50% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% Yes No
  30. 30. 30 FINDINGS AND INTERPRETATION CONCLUSION RECOMMENDATIONS ] BIBLIOGRAPHY Web sites WWW.PEPSICO.COM Books Marketing Management By: P Kotler Marketing Research By: David A.AAker, V.kumar, and George S. Day
  31. 31. 31 Annexure