CHAPTER 1

INTODUCTION

1.1 INTRODUCTION:
Company history
PepsiCo, Inc., established in 1965 through the merger of Pepsi-Cola and Frito-Lay is a world
leader in convenient foods and beverages. 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. Its success is the result of
superior products, high standards of performance, distinctive competitive strategies and the high
level of integrity of its employees.
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. The company's principal
businesses include:

Frito-Lay snacks

Pepsi-Cola beverages

Gatorade sports drinks

Tropicana juices

Quaker Foods

PepsiCos 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.
The company has two major divisions that are operational in India. The first division is the
traditional Beverages Division. The second division, and the subject matter of this report, is the
Snack Food Division

The Beverages Division

The company has 37 bottling plants in India, and one company-owned concentrate plant. Pepsi
keeps its concentrate formula, a secret. The main products are:-

Pepsi cola

Mountain dew

diet Pepsi

slice

7 up

Tropicana

Mirinda

Aquafina

Leher Everess Soda, Dukes Lemonade and Mangola

There is a subdivision of the Beverages division which is under the name of Tropicana Products,
Inc., parent company headquartered in Bradenton, Florida, and is a division of PepsiCo. In India,
the company is headquartered in Gurgaon, Haryana.

Keeping with the core Pepsi thrust toward youth, Tropicana is dedicated to producing pure
premium juices essential for an active and youthful lifestyle. The juices of the commonly
available fruits produced, packaged and marketed by Tropicana contain naturally occurring
components to promote good health.
With a 50-plus year history of consistent growth Tropicana today stands as the worlds only
global citrus juice business!

1.2 OBJECTIVE OF THE STUDY:

The main purpose of this study is determining the different strategies that are adopted by
the companies.

The strategies will be evaluated to see which the best amongst them is and which are
most effective.

Acceptability of Pepsi products by the consumers and marketers.

Identifying the competitors and positioning Pepsi in comparison to them.

To find out marketing strategy of Pepsi.

To analyze the SWOT analysis of Pepsi.

To know about customer value of Pepsi.

To know about customer perception towards Pepsi brand image

To know about customer satisfaction

Impact of market strategy on customer

CHAPTER 2
CONCEPTUAL DATA

2.1 MISSION/ VISION

Business mission of Pepsi is to be the best and biggest seller of carbonated soft drinks. They are
working for providing a high quality refresher product to passionate crowd. They have a refined

plant by which we manufacture the product according to the health standards. They have a
number of brands loyal and have full attraction for the quality conscious people to consume our
product. They have triggered themselves towards growth and high profitability. They are coping
with the technological advancement by installing the new machinery by which we makes a
frequent flow of our supply to the customer.

2.2 MARKETING STRATEGIES ADOPTED BY PEPSI:

Extremely high visibility: enormous resources allocated for advertising

Positioned as a product or the youth: targets Generation Next

Unlike global trends, half of the distribution of Pepsi in India done by Company Owned
Bottling Operations (COBOs)

Very low brand loyalty among consumers, so sales depend on timely product availability

Recent entry into rural markets.

2.3 FOUR P`S OF PEPSI:

1. PRODUCT:
WIDTH:
The Pepsi beverage division has the following product lines

1. Soft Drinks
2. Juices ( Tropicana)
3. Mineral Water

LENGTH:

Soft Drink

Juices

Pepsi

Tropicana

Aquafina

Diet Pepsi

Gatorade

Mirinda

7 Up

Mountain Dew

Mineral Water

DEPTH:

We will focus on the soft drink section here. The Pepsi cola comes in various sizes ranging from
300ml, 500 ml and 2 litres. In addition Pepsi Cola is also available in 330ml cans.

CONSISTENCY:

The different products in the soft drink section are all closely related. They share the same
distribution channel and are supplied in the same manner. They also have a similar production
process and the end users are by and large homogenous.
Pepsi cola has a light, crisp and refreshing taste. It is the perfect drink for the modern
Generation Next people. The product comes in 300ml glass bottles,500 ml pet bottles and in 2
liters. The product targets the upwardly mobile with its trendy design and is a premium product
from the house of Pepsi. It has a shelf life of 6 months.

2. PRICE:
Pepsis pricing strategy is largely formulated by keeping its rivals, Coca-Cola, pricing strategy in
mind. The reverse is also true. Both the products are not differentiable and are near perfect
substitutes. Another important factor here is that the sales are volume driven; hence price needs
to be kept at an appropriate level. Listed below are the prices of the variants -

1. 300 ml is for Rs 9.
2. 500 ml is for Rs 18
3. 2 litter is for Rs 43
4. 330 ml can for Rs 20

3. PROMOTION:

The soft drinks market in the country relies heavily on promotion to sell its products. The
presence of close competition makes it necessary for both Pepsi and Coca-Cola to hard sell their
products. The leading products offered by both the companies are very similar. The companies
try aggressively to build loyalties for their respective brands by playing on emotions and
aspirations of its consumers. They have roped in cricket players and film stars to attract and
create interest in their products. Pepsi especially has been advertising using a number of
cricketers to associate Pepsi Cola with their success.
A Pepsi spokesperson says promotions have worked very well for the company and have helped
reinforce the brand personality.
The `Pepsi Cool Maal scheme in June-July 1998 targeted at school children met with a
phenomenal response because the premia comprised items that school kids needed and ``yet had
a lot of attitude''. The previous year, the company ran a `Pepsi Stuff' promotion that offered
young people a range of offers, both free and discounted, on cinema tickets, apparel, music and
so on.
TV Ads Pepsi has been bombarding the Indian customers with a periodical onslaught of
creative advertisements aimed at the youth of the country. Early on, Pepsi identified three broad
platforms cricket, movies and music. It has roped in the biggest stars from the film industry and
the cricketing fraternity. People endorsing Pepsi include bollywood superstars Amitabh Bacchan
& Shah Rukh Khan with a host of other actors. Fardeen Khan, Saif Ali Khan, Priety Zinta,
Kareena Kapoor among the more popular ones.

It has roped in most of the members of the national cricket team. From Superstar Sachin
Tendulkar to Rahul Dravid, Sorav Ganguly, Yuvraj Singh, Mohammed Kaif etc. Pepsi started
hiring cricket stars very early and set a trend in the market. It also brought international
music stars like Michael Jackson, Ricky Martin, Deep Purple and Def Lepparamong others to
the country

Pepsi began advertising early with its very effective A-Ha campaign. A-Ha created a new
idiom. The tag line which was built into a song brought instant attention the product. Having
Remo Fernades sing yehi hai right choice babya-ha caught the attention of the youth. Then
came Akshay Kumar with the I wanna be mast campaign. Pepsi chose its ambassadors in a
manner which ensured curiosity and then lasting interest in the youth of the country. Pepsi has
over the years come up with catchy slogans like Generation Next, Yeh Dil Maange More, The
choice of a new generation etc.

Pepsi also associates itself with cricket which is by far the most popular activity, sport, mode of
entertainment in the country. It even launched a new brand by the name of Pepsi Blue during
the last cricket world cup to cash on the fact that the color of the players uniform is blue.. In an
earlier episode of the same event where Pepsi had lost out to rival Coca-Cola in gaining the
official sponsorship, Pepsi came out with an aggressive and creative campaign, where it
positioned itself as the unofficial drink as opposed to cokes strategy. It signed up a number of
national as well as international stars, mouthing the tag line nothing official about it. The
company has also time and again sponsored a number of cricket tournaments. It recently came up
with the Toss ka Boss contest which saw fans join the two captains on the field for the coin
toss.
Pepsi also came out with a series of ads poking fun at rival Coke and its brand ambassadors.
This was done with a fair degree of success as it had everybody from the road side vendor to the
BBC correspondents talk about it. Another recent campaign which created controversy was the
OYE BUBBLY campaign. It used a voice over which bore similarity to the voice of Cokes
brand ambassador Virender Sehwag. Pepsi has created quite a stir with the OYE BUBBLY
campaign. It shot a music video with Amitabh Bacchan, Sachin Tendulkar and other players from
the cricket team. It released an audio cassette and CD with the song on it. This campaign in
particular has been very successful thanks to the catchy tune and ads featuring Shah Rukh Khan.

Internet Pepsi signed up with Yahoo! India and launched a Pepsi zone on yahoo http://www.pepsizone.yahoo.co.in. The zone was aimed at the younger lot of the net surfers. A
number of features like contests, chat rooms, games, download etc. attracted net users
4. PLACE:
How does bottle of PEPSI reach you..
To bring the product to the consumer by proper distribution management to:

For distribution purpose pepsi uses 2 level distribution channel which contain two intermediaries
between the bottling factory and the final consumer.

MANUFACTURER

DISTRIBUTOR

RETAILER

CONSUMER

The Company does its selling by using company owned distributors or franchisee owned
distributors. Worldwide Pepsi relies on franchisee but in India it uses both company owned and
franchise owned operations.
Pepsi uses two methodologies for distribution in India
1. Company owned distributors
2. Franchise owned
FRANCHISEE OWNED:- This is like outsourcing wherein the company out sources its
distributing related work to another party. Company has less control owner the distributor. All the
investments like vehicles, Employees salaries etc are made by the distributor who in return gets a
margin ( around 18-20%).Advantages of using this scheme is that the fixed investments and
other distribution related expenses of the company are less. The disadvantages are that the
company has lesser control over the distribution process.This method is followed in delhi.

COMPANY OWNED:- Here the company owns all the vehicles, the employees are on company
roles. The advantages of suh a process are that the company has direct control over the entire
distribution process, it also gives the company higher flexibility. The disadvantages of such a
process are that it involves huge investments.This method is followed in punjab
Pepsi is currently available with the other Pepsi products at:

Convenience Stores

Restaurants

Grocers

Entertainment Centers

Offices and Institutions

Eateries

Educational Institutions

Hotels

2.4 MARKETING ENVIRONMENT ANALYSIS:

DEMOGRAPHIC
Demographic changes and development poses some threats and opportunities. Pepsi Cola
International keeps close tracks of demographic trends and development in the market.
Increasing migration to cities provides opportunity for Pepsi to increase its production, adjust its
prices, accordingly. People are now becoming more aware of calories and are more conscious
about their health. Pepsi begin this trend by offering diet version for low calories conscious
consumers. So Pepsi International keeps a very close eye on the demographic changes,
occurring in Pakistan and then plans its marketing strategies according to these developments.
ECONOMIC
Pepsi is a luxury product. It's not like "Rolls Royce", but it is also not like "flour". People can
drink water too instead of Pepsi. But rising income always affects the company. When people
have more disposable income, Pepsi sells more.
It is also an desire product. It has no planned purchase. Normally, we do not go out,
especially to drink Pepsi. Very often, we see Pepsi sign board, a khokha, and decide to buy
Pepsi. In Pakistan, Pepsi's' sales were rising, along with other things that the company did, like,
sales promotion, advertisement and distribution, which was very effective.
POLITICAL ENVIRONMENT
Developments in political environment also affect company's strategies. Higher percentage
of sales tax and excise duty has been imposed on the company's product, which affects the
selling price, and ultimately the buying. It affects packaging. Due to current sales structure,
manufacturing bigger packs become unviable.
Current duty structure has affected Pepsis take home packages, i.e. 1.5 liter bottle, 2.25 liter
pet and non-returnable packages. 250 ml is the most viable package under current condition.

CULTURAL ENVIRONMENT
Although Pepsi is an international brand, but it is very closely aligned with Pakistan cultural
environment. Pepsi, in Pakistan is no doubt No.1 beverage brand. Yet it is also recognized as a
"National drink". Pepsi's has related its ads and promotion, to nationalism, like sponsoring
Dil Dil Pakistan,
Pepsi with Imran Khan,
Pepsi with Wasim and Waqar, etc.
This reflects that Pepsi is a part of Pakistan.
Changes in life style of consumer affect the Company's product. For example, in a depressed
society like in Pakistan, when people go out for picnic, and during leisure time. They enjoy
themselves by cooking themselves, and very often take NR Pepsi with them. 80% consumption
of Pepsi is, outside consumption.
As youth is the target segment of Pepsi, so their changing life styles also provide
opportunities for the company to alter its strategies. Young people are more trendy and
fashionable, and their behavior changes from time to time. Pepsi's slogan
"Choice of a new generation",
Has appealed the Pakistani youth, allot, and the company sales were increased considerably.
Then, they shifted to new slogan, "GENERATION NEXT" and now one more step ahead with
"ASK FOR MORE".
Fast urbanization also provides opportunities to the company. People migrating to cities, are
influenced by the cultural change, and they tend to buy Pepsi more as people in urban areas are
more aware about soft drinks.

2.5 PORTER FIVE FORCE MODEL

Barriers to entry:
The soft drinks industry requires a huge investment if one aspires to gain a considerable market
share. The investment would require huge sums of money to setup manufacturing plants, bottling
plants and as we know a massive advertising budget.
As an example Parle, which was the market leader at one point, did not have the ability to invest
large sums of money in a small period of time and was eventually bought over by -Pepsi rival,
coca-cola.
Pepsi in India owns most of its bottling plants COBOs. Pepsi has about 15 COBOs and plans to
expand further. Pepsi has over the years invested about 600 crores and plans new investments of
another 400 crores.

That is the scale of operations in the cola industry, making it very difficult for any new players to
enter the market. Another factor that makes entry difficult is the presence of Coca Cola. The two
cola giants among themselves control most of the market, leaving no room for anyone else.
The gestation period, due to the huge initial investments, is pretty long. Pepsi, which started
operations in India in 1989, broke even in 1997.
Bargaining Power of Suppliers:
There are around 100 franchise owned bottling operations.
Bargaining Power of Buyers:
Buyers by and large do not have much power in the cola market. The number of buyers is too
large for them to exert any influence or control over pricing or any other decisions. Even though
there are very low switching costs the buyers do not wield much power.
The presence of a large competitor, however keeps the price level in check.
Rivalry:
The rivalry between coke and Pepsi is too well documented. It has stretched from the start of the
latter company till date. It has been witnessed in every continent, country every market and yes
the courts. There are a number of factors other than the obvious one similar product. These are
enlisted below

High fixed costs this forces the two companies to produce near capacity. This high level
of production leads to a fight over the market share.

Perishable product the companies need to sell their high quantities of produce rather
quickly.

Low switching costs the switching cost for a customer is pretty low, since substitutes
are similarly priced.

Low product differentiation other than a select few loyal customers, most customers do
not find any difference between coke and Pepsi.

Threat to substitutes:

Pepsi cola as a product has a number of substitutes and is under constant threat of losing its
market share. The low product differentiation between its biggest competitor does not help.
Another factor is the pricing which is the pretty much the same for most of its substitutes. There
are other threats from outside the industry too. The age-old nimbu paani and lassi will always
pose a threat to any manufactured beverage. Even if these are not sold in the market place on as
large a scale, these are substitutes prepared in most consumers homes for their consumption.

2.6 CONSUMER BUYING DECISION PROCESS:

Hosts of factors play an important role in a buyers decision-making process. This process lets
him/her screen the different options available and take a final decision.

The 4 Ps (Product, Price, Promotion & Place) or the Marketing Mix of a product plays a
significant role in this intricate process. The final decision is made based on the marketing inputs
and the various psychological inputs. Every product is perceived in a certain way or manner. The
consumers perception of the product is a vital ingredient and the companies have to ensure that
they portray a suitable and strategic image.

The psychological factors (Culture, Attitude, Learning & Perception) also play a critical role in
the decision making process, but a company can do little to influence these factors. However, if

the suitable market/segment is targeted while positioning the product the company can generate
positive response from the marketplace.
2.7 SWOT ANALYSIS:

STRENGTHS:

High brand awareness: - Pepsi is the worlds most famous no 2 multibillion dollar brand and
Pepsi is the largest FMCG brand in India.

Large number of distributors: - The Company has both franchise owned and company owned
operations in India. Pepsi in Delhi alone has more than 100 distributors. Delhi is totally
franchise operations whereas Punjab now is totally company owned

Wide product offering: - Pepsi is available in glass bottles, aluminum cans and PET bottles
for home consumption. Fountains also dispense them in disposable containers. Also they
provide a large number of flavors.

High accessibility: - Pepsi products are available in shops in the most elite of malls and at the
same time in the smallest of shops in the back lanes of the poor localities.

Large advertising budget: - Pepsi has the luxury to spend huge amounts on advertising in a
year. This enormous ad 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

Wise investments: - . 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.

WEAKNESSES:

Powerful franchisee: - Ironically, the one strength that has been credited for most of its
success in the past has now become a weakness for Pepsi. This former strength is the
franchise system. The franchise system in Pepsi Corporate view has become a liability.
Pepsi in todays market must be able to act as one instead of several separate units. The
franchise system has become a hurdle to Pepsi because many of these franchises have
become very strong and will not be dictated by PepsiCo on how to handle their
operations. Some of these franchises are unwilling to support certain Pepsi products and
at times produce their own private label products that are in direct competition with Pepsi
products. Secondly the franchisees are not willing to make capital expenditures to keep
up with Coca-Cola who is a firm believer in reinvesting into their infrastructure.

Inferior in fountain soft drinks division:-The franchise system has affected fountain sales
due to the fact franchisees are not willing to by expensive fountain equipment mainly
because the profit margin is so low and could take years to recoup their investment.

OPPORTUNITY

Per caps in India is 8 oz. vis a vis 868 oz. in USA : - The consumption of Pepsi in
India is still regarded as luxury. An orthodox Indian would still prefer a cup of tea or
coffee to a bottle of Pepsi. So in the event Pepsi can manage to change their mindsets
it would tap a huge untapped customer base.

Cutting costs: - since there is tremendous scope for increasing the sales volume, this
also signifies potential to reduce costs per bottle and make the product more
affordable.

Seasonality: - Pepsi is perceived to be a summer drink and max sales happens in

summer months. During winters an average Indian would still prefer a cup of hot tea
to Pepsi.
THREATS

Controversies:- Demonstrations across India were organized by the Research Foundation

for Science, Technology and Ecology (RFSTE). Activists wanted the firms to leave India
because they said their plants depleted ground water the soft drinks giant strenuously
denied. Also, the pesticide controversy was a big threat to the company.

Low brand loyalty: - If a consumer walks into a shop and he is offered a coke instead of a
Pepsi he would in all likelihood accept it. This basically means that the company needs to
be present everywhere every time and that too chilled otherwise it will result in lost sale

Low cost and large number of substitutes:-Traditional Indian families would still prefer a
glass of lassi or nimbu pani in summers and a cup of tea or coffee in winters as compared
to PEPSI

Risk of losing market share:- Coke is a very strong opponent and gives immense
competition to the Pepsi so there is a constant threat of loosing market share since both

the products are very similar and there is almost no brand loyalty present amongst
consumers

2.8 THE COLA WARS

No two companies could be more alike, or more different! Both have been selling products to
quench thirst for over a hundred years and both are now global brands. Their products moved
through the worlds most pervasive networks.
Distribution: Pepsi has taken the more capital intensive route of owning and running its own
bottling factories alongside those of its franchisees whereas Coke operates only through FOBOs
(Franchise Owned Bottling Operations). Pepsi in India has a more organized streamlined channel
of distribution whereas Coca Cola is unorganized in its distribution channel. Pepsi has over a
hundred distributors (both company owned and franchise owned) in Delhi alone whereas Coke
has much fewer distributors and relies more heavily on wholesellers directly for their sales and
distribution.
Brand Synchronisation: Despite being a global brand, Pepsi has built its success on meeting the
Indian consumers needs. It has synchronized the brand with localized events and traditions. For
example, in Delhi, it linked its brand with Holi, offering sachets of colour with Pepsi Cola. In
Chennai, it offered free bottles with orders of idlis.
Whereas Coke, instead of creating a bond with its customers through small events, it chose to
associate itself with national and international mega events like the Cricket World Cup, 1996 and
the Olympics, 1996.
Diversification: PepsiCo has increasingly diversified into snacks and restaurants while Coca
Cola has focused only on soft drinks. PepsiCo snack operation is in Frito-Lay and its restaurant
business includes Pizza Hut, Taco Bell and KFC. All of Cokes profits come from beverages
whereas PepsiCo depends on drinks for 41% of its income.

CHAPTER 3
ANALYSIS

1. Gender
GENDER
MALE
FEMALE

RESPONDENT
12
8

PERCENTAGE
60%
40%

120
100
80
Column1

60

MALE
40
20
0
GENDER

2. Age

a. Less than 15
b. 16-30
c. 30-45
d. More than 45

Age
Less than 15
16-30
30-45
More than 45

RESPONDENT
6
9
3
2

PERCENTAGE
30%
45%
15%
10%

age

less than 15
16-30
30-45
more than 45

3. How many Glasses of Cold drink you drink in a week?

a. more than1
b. 1-3
c. 4-8
d. more than 8
How many glasses you drink
in a week
More than 1
1-3

RESPONDENT

PERCENTAGE

8
6

40%
30%

4-8
More than 8

4
2

20%
10%

How many glasses of cold drink you drink in a week?

more than 1
1 to 3
4 to 8
more than 8

4. Why do you prefer Pepsi?

a. Refreshment
b. Thirst
c. Fun
Why do you prefer pepsi
Refreshment
Thirst
fun

RESPONDENT
12
4
4

PERCENTAGE
60%
20%
20%

why do u prefer pepsi?

refreshment
thirst
fun

5. What is the reason to believe in Pepsi as a brand?

a. Quality
b. Cost
c. Advertisement
d. Brand name
What is the reason to believe
in Pepsi as a brand
Quality

RESPONDENT

PERCENTAGE

30%

Cost
Advertisement
Brand name

2
4
8

10%
20%
40%

reason to believe in pepsi as a brand

quality
cost
advertisement
brand name

6. According to you, how do you feel Pepsi as a cold drink?

a. Very good
b. Good
c. Neither
d. Bad
e. Very bad
How to you feel Pepsi as a
cold drink

RESPONDENT

PERCENTAGE

Very good
Good
Neither
Bad
Very bad

6
8
5
1
0

30%
25%
15%
5%
0%

how do you feel pepsi as a cold drink

very good
good
neither
bad
very bad

7. Are advertisements of Pepsi better than its competitors?

a. Strongly Agree
b. Agree
c. Cant say
d. Disagree
e. Strongly disagree
Advertisement of Pepsi is
better than its competitors?

RESPONDENT

PERCENTAGE

Strongly agree
Agree
Can`t say
Disagree
Very bad

12
5
0
2
1

60%
25%
0%
10%
5%

advertisement of pepsi is better than its competitors?

strongly agree
agree
can`t say
disagree
very bad

8. What do you correlate Pepsi as a brand with?

a. Taste
b. Slogan
c. Easy availability
d. Boring and uncool
e. Costly
f. Advertisements
g. Fun
h. Celebrity endorsement
What do you correlate pepsi

RESPONDENT

PERCENTAGE

as a brand with
Taste
Slogan
Easy availability
Costly
Advertisement
Fun
Celebrity endorsement

2
6
5
3
3
1
0

10%
30%
25%
15%
15%
5%
0%

why do you correlate pepsi as a brand

taste
slogan
easy availability
costly
advertisement
fun
celebrity endrosement

INTERPRETATION:
Collection of date based on male 60% and female 40%.
Many of the people drink more than 1 glass of Pepsi in a week and only 10% of the
people drink more than 8 glasses in a week.

 After analysis I conclude that majority of the people drink Pepsi for refreshment that is
60% of the people and 205 for thirst, 20% for fun.
Many of the people believe Pepsi as a brand because of brand name.
30% of the people feel Pepsi as a cold drink its very good and 5% feels its bad.
Majority of the people that means 60% are strongly agree that advertisement of the Pepsi
is better than its competitors.
30% of the people feel that slogan and the easy availability of the Pepsi is the correlation

CHAPTER 4
CONCLUSION, RECOMMENDATION, SUGGESTION.

4.1 CONCLUSION:
After completion of the project and the analysis of the study I came to conclude that
after launching the promotion there was drastic percentage jump in sales initially but
gradually the percentage jump decreased and there isnt much impact on sales.
After doing analysis of Pepsi I came to conclude that people are very much aware about
the promotions especially the kids and people prefer more of Pepsi and Pepsi is very
popular in India.
Thus I conclude that the industries have pampered consumers by giving discounts and
free bies and hence consumers now a days don't buy a product until and unless they are
given some discounts. So the industries should not over do the promotions.

Critics argue that promotions simply prepone the purchase and don't add any
incremental value to it. The sales may pick up during the offer, but there is a loss of sale
in the following month, which means the people who buy the goods in July simply
preponed their purchase due to the offer". Also, over promoted products often leave
customers asking for more. Thus promotions have actually spoilt the habits of
consumers. Thus, promotion is a very attractive means to keep the consumers glued to
its product but then the industry shouldn't over do it. The effect of promotions is for a
shot period of time.
QUALITY
The first reason is

of quality, obviously in this competitive age and an intelligent

consumer in front of you no company can afford to ignore the vital issue of quality.
PRICE
Why doing analysis 15% consumers complained about the price but from the general
tendency, it was seen that when a consumer felt thirsty and was in a company of friends,
price took a back seat and the consumers opted for their favorite brand.
SYSTEM
The distribution system of the company is very efficient. In fact every day the trips are
made why the mini trucks, three wheelers caring crates are replaced at the retail outlets
according to the demand.
LOCAL ADVERTISEMENT
The company has created brand awareness among the consumer through constant
advertising. The retail outlets in the various part of the city display various advertising
themes, bill-boards are painted with eyes catching advertisements, moreover, the mini
trucks caring the crates of soft drink are beautifully painted with various brands and a
part from the local news paper carry the advertising captions periodically.

REDDRESSING CONSUMER
COMPLAINTS; the company has established a system that keeps track of consumer
complaints. It has well set-up network which contacts retailers, consumers, records and
their views about the products, the quality, availability of soft drink in time, price etc.

4.2 RECOMMENDATIONS:

PepsiCo should Promote their all products like Alvio, Gatorade and Quaker Oats
PepsiCo should promote their product in Rural area also as Coca-cola is doing.
PepsiCo should expand the Brand Image of Pepsi (People are only correlating it

with
youth- Youngistan)
As Coca- Cola shows its logo at the end of every advertisement of its each

product/Brands, so Pepsi should also show its logo in its each Brands advertisement
PepsiCo also should go equally to other medium of advertisement like pepper, hording

and internet.
PepsiCo should also continuous participate in Sporting events.
PepsiCo can take part in IPL also
PepsiCo should also focus on Green marketing like other Companies doing like- Idea,

Aircel etc.
PepsiCo mostly Brand ambassador came from bollywood so they should focus on

Sporting celebrity like from cricket, football and hockey

People are not that much aware about some products of PepsiCo so they should focus on

it.
The regular user of Pepsi is very low. So Pepsi have to convert those customer which are

aware about Pepsi but not using it regularly, so try to make them brand loyal
Buying priority of most customers is refreshment so they should try to convert them in

brand preference.
They should more target on Child and Sports men
They should show Quality and Trust base in their advertisement.
PepsiCo should focus on their brand ambassador they are changing it continues so they
should take care of it

4.3 SUGGESTION:

 Company should emphasis on selling per bottles for 200ml & 300ml at a
lower difference price; it is portable and convenient to carry.
Consumer preference change according to availability, therefore the company
should provide their brands at maximum outlets at possible.
Company should take care of cleanliness of the bottles rusted crown and
maintain the quality of the product especially at the time of packaging
Company should get the schemes printed on the labels of the bottles/products
as well as on the free items provided with soft drink so that consumer gets
aware about the schemes and not cheated by the retailers
Company should inform each and every outlet about the schemes before time
or on time and check them. Weather they are providing them to consumer in
the proper manner.
Company should conduct survey quarterly to see weather consumers are
satisfied with the product and services.
Schemes have large impact on consumer preference therefore a company
should launch different and attractive promotional schemes frequently.
Company should encourage to the consumers to purchase more and softer
drinks so as to develop the taste and sales.

C
HAPTER 5
ANNEXURE

5.1 BIBLIOGRAPHY:

5.2 QUESTIONNAIRE:

1.Gender
a. Male
b. Female
2. Age
a. Less than 15
b. 16-30
c. 30-45
d. More than 45
3. How many Glasses of Cold drink you drink in a week?
a. more than1
b. 1-3
c. 4-8
d. more than 8
4. Why do you prefer Pepsi?
a. Refreshment
b. Thirst
c. Fun
5. What is the reason to believe in Pepsi as a brand?
a. Quality
b. Cost
c. Advertisement
d. Brand name
6. According to you, how do you feel Pepsi as a cold drink?
a. Very good
b. Good
c. Neither

d. Bad
e. Very bad
7. Are advertisements of Pepsi better than its competitors?
a. Strongly Agree
b. Agree
c. Cant say
d. Disagree
e. Strongly disagree
8. What do you correlate Pepsi as a brand with?
a. Taste
b. Slogan
c. Easy availability
d. Boring and uncool
e. Costly
f. Advertisements
g. Fun
h. Celebrity endorsement