PROJECT REPORT

ON
Market research
OF
Pepsi in jamshedpur
(FRANCHISEE OF PEPSICO INDIA LIMITED)

A REPORT SUBMITTED IN FULLFILMENT OF THE

REQUIREMENTS FOR
MASTER IN BUSINESS ADMINISTRATION

COMPANY GUIDE- MR. Subroto Chakarwarty

DURATION 2nd MAY TO 30TH JUNE
SUBMITTED BY:-
DEEPAK KUMAR
Institute for Technology and Management
Warangal institute of management, Warangal

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 (A unit of ITM group of institutions)

PREFACE

Practical training is considered to be an essential part of all the professional institutions

and those who are aspiring for master of business administration, on job training assumes
even more significances.

As an aspect of management education which is receiving increased attention from

institutes as well as from recruiters on job training is imparted to the students to
acclimatize the student with the actual environment of business management.

It is also a widely accepted theory that this aspect of management education widens one’s
thinking about the different concepts of management philosophy, difference between
different concepts and ground realities.

This project has been done in the field of marketing and project work has been done
under the supervision of S.M.V Beverages Pvt. Ltd. which the franchise is owned
bottling plant of PepsiCo India limited. The bottling plant is located at Adityapur
industrial area (AIDA), Adityapur.

I have done my training in Jamshedpur under the guidance of the executives of S.M.V
Beverages Pvt. Ltd. The report gives a true picture of the practical activities done by me
within the jurisdiction of the area assigned to me.

The study area was restricted to Sakchi, a part of Jamshedpur. Hence the results of the
study are applicable to Sakchi in particular and Jamshedpur in general.

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Ref. No. …………….. Date ……………..

CERTIFICATE

This is to certify that Mr. Deepak kumar has undergone 60 days summer training

from MARICO Ltd., New Delhi from 01-05-2010 to 30-06-2010. The topic of his project

was “Market reaserch of pepsi in Jamshedpur”.

This is to certify further that the present project has not been undertaken by

anyone else for similar award in any other institute or university to the best of my

knowledge.

(Prof.Muzahid Ali)

Academic Guide

Session 2009-11

Date :

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 DECLARATION

I Deepak kumar hereby declare that my internship training report

entitled “PEPSICO STRATEGY & MARKET SHARE” submitted
to S.M.V. Beverages Pvt. Ltd, Jamshedpur for the award of the
certificate of the training program and to ITM Business School,
Warangal for the award of the degree Post Graduation Diploma in
Management. This report has not been submitted to any other
organization, either in part or in full for any purpose.

Name:

Signature:

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 ACKOWLEDGEMENTS

Before I get into the thick of the things I would like to add a few heartfelt words for the
people who were part of this project in numerous ways….people who gave unending
support right from the stage the project was started, appreciated and encouraged when
being depressed.

In this context I would like to express my gratitude towards my parents and family
members who have constantly supported and played a pivotal role in shaping my career.

I take this opportunity to express my gratitude to Mr. P.S. Kumar (Director), Mr. Subroto
chakarwarty (T.D.M) and Mr. S.K. Bahl (Manager, HR) of S.M.V. Beverages who have
given me the opportunity to do the project in their esteemed organization.

I would also like to thank Mr. shukla (A.D.C.) of SMV Beverages without whose
support this project couldn’t have been in the form in which it is now. I owe more than
what I can mention….mostly for teaching me to see the silver lining in every dark cloud.

I also owe my regards to Mr. Harmeet Singh (CE) and Adarsh agency (Distributor) for
their co-operation in the successful completion of the project.

This has been one long project and naturally many people get associated with it. Any
bouquet for the merit in this book should go to their door. I would like to thank the staffs
and officials of SMV Beverages for their co-operation in providing us with all the
information, which were required by us.

I owe my sincere gratitude towards my faculty guide Prof. MR MUZAHID ALI and
Mr. T.D RAO (DIRECTOR) of ITM,WARANGAL for extending the support towards
the completion of the project.

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And finally I would like to thank my friends for their unending support.

CONTANT
PART-1 PAGE NO
Executive Summary 9
Key Areas 10
Pepsi Co. 11
Soft Drinks Industry In India 12
PEPSI Co. in India 14
Origin of Soft drink in Jamshedpur 18
SMV Beverage Ltd. 19
One day in plant 20
Pepsi Co packaging process 24
Organisation chart of the company 26
Organisation chart of Hydrabad marketing 27
Every dealer survey (EDS) 28
PLAN - O - GRAM 30
Distribution Channel 33
SWOT Analysis 37

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PART – 2

Introduction 41
Description of field 42
Research Methodology 44
Market Research 48
Marketing Activity 53

ANALYSIS PART
Analysis of market research 67
Analysis of Pepsi product in Jamshedpur market 75
Findings 83
Sugessitions 84
Limitations 85
Conclusion 86
Bibliography 88
Questionnaire 89

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PART-1

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 EXECUTIVE SUMMARY
PepsiCo organization initiated this project to assess the market potentiality of Pepsi
in the present market. The main motive of this project is to identify the potentiality
of the Pepsi and their other product those they are producing.
The project methodology involved carrying out the preliminary research to gain
insight into the present market – sub segment, current trends, growth, players and
potential. Analyzing the requirement and designing questionnaire. Taking
interviews, conducting personal interviews of different type of demographic factors
under like age, income, status,. Collating & analyzing data and identifying leads that
qualifying for an offering and formulating recommendation for S.M.V. Beverage
Jamshedpur.
In the findings researchers got that Pepsi company is one of the best soft drink
company , because it maintain the quality, taste and also the Company is maintain
good relationship with retailers and they are also distributing their product to their
retailers when they want and the Company also provide them in time.
Theory is important, because it enhances our understanding of business phenomena
and helps managers to think about what they should do. Summer training or internship
training program provides opportunities to apply this theory into the real business
practice.
In the present scenario of competitive marketing, every business institution requires
to prepare strategies for efficiently utilizing their available resources and environmental
opportunities. At this stage of my learning process I also feel needs for knowing different
business strategies that a business organization follows. In this training period I got
opportunities to study on some marketing strategies of PepsiCo. And in this report I am
going to explain some of those strategies which I had applied in practical during my
summer training program.

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 KEY AREAS
The key area of my summer training was “PEPSICO STRATEGY OF MARKET SHARE”.
The company had divided his retail outlets on the basis of area wise and character wise.
Each of the division is having mainly three types of outlets.
AREA WISE : - The area of my summer training was “Jamshedpur” and according
to the company the whole training area was divided into three part.
INNER CIRCLE : - These are the main selling point of a company or heart of a city.
In inner circle we mainly consider those selling point or retailers shops which come
under the main market area.
OUTER CIRCLE: - These areas are adjacent to the main market area, which is a
mixture of residential areas and market areas. In these areas we mainly talk about those
retailers’ shops, which are placed in the residential areas and quite away from the main
market..
OUTSKIRTS: - These areas are quite away from the main city and the main
market, or the interior areas of the towns.
CHATACTER WISE: - Again there is a division of outlets on the basis of characters
(type of work done by the retailers) and there are again three types of outlets.
CONVENIENCE OUTLET: - These types of outlets include general stores, beetle
shops, stationary shop, medical shop and such type of other shops.
GROCERY OUTLETS: - These types of outlets include grocery stores which indulge
in selling of foods and related things used in the home.
EATERY: - It includes restaurants, fast food joints etc.

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 Type Public (NYSE: PEP)
 Founded 1965
 Headquarters New York, USA
 Key people Indra Nooyi, Chairwoman,
President & CEO
 Industry Food and beverage
 Products:
 Pepsi
 Tropicana Products
 Gatorade
 Lay's
 Doritos
 Frappuccino (for Starbucks)
 Mountain Dew
 Operating income $6.44 billion USD (2006)
 Net income $5.64 billion USD (2006)
profit margin 16.06%
 Employees 153,000(2005)
 GROUP OF COMPANIES

 Frito-Lay North America

 PepsiCo Beverages North America,
 PepsiCo International
 Quaker Foods North America

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SOFT DRINK INDUSTRY IN INDIA
India with a population of more than 1.1 billion is potentially one of the largest
consumer markets in the world after china. The consumer market is popularly known as
the FMCG market or the fast moving consumer goods market. Soft drinks come under
this category. Soft drink is basically purchased in India basically for two reasons namely
to quench thirst and for refreshment. The Indian economy currently is passing through a
bullish phase with increasing per capita income. Subsequently the lifestyle of the Indian
consumer is also changing with increased spending on entertainment, refreshment etc.
that is why soft drink companies are looking forward to India with great enthusiasm in
the future to increase their revenue.
The soft drink industry in India dates back to the 1940’s when Parle introduced the first
branded soft drink called gold spot. Cola giant coca-cola was the first foreign soft drink
company to setup its shop in India in 1965. Coca-cola made a very good beginning and
dominated the market right from the word go. It faced no competition at that time. The
marketing people did not even need to publicize coca-cola. This extraordinary success of
coca-cola can be attributed to the following factors,
 Absence of contemporary competitive brand.
 The giant image of coca-cola in the western countries preceded their entry
into the Indian market, and
 Indians at that time were very fond of foreign goods.

Parle Exports Pvt. Ltd later introduced a lemon flavored soft drink called Limca in 1970.
Before this they had introduced a cola flavored drink called pepping which they had to
withdrew in the face of stiff competition from coca-cola. But the overtly conservative
Indian government of that time with special interest in safe guarding the interest of the
Indian companies started insisting that coca-cola should agree on the following points in
order to continue in India. Coca-cola decided to windup its operations in 1977 rather than
bowing to the Indian government. The main demands of the Indian government were,
 Dilution of equity, as the government felt that lots of foreign currency was
being wasted.
 Manufacturing of the secret concentrate in India.

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  Disclosure of the chemical composition of the concentrate.
The exit of coca-cola left a large vacuum in the soft drink market. But this also
accelerated the growth of several Indian soft drinks. Many new soft drinks like frooti,
jump-in etc were launched in the form of tetra pack. However the bottling plants and the
distribution networks of these companies were not up to the mark and left much to be
desired. It took these companies almost one year to come up with new flavors like Campa
cola, Rush etc. to survive in the industry.
However Parle, the pioneer in the soft drinks market blazed its way to national
prominence with their product Thumps Up bearing the slogan ‘happy days are here
again’ which became a craze. This particular slogan helped to win over the loyalists of
coca-cola who were in a state of cola shock or cola depression! Soon the soft drink
industry started registering phenomenal growth rates and all parley products namely Gold
Spot, Limca and Thumps Up became the brand leaders in their own segments. In spite of
this the soft drink market had a huge untapped potential.
In 1990, coming of the multinational brand Pepsi and immediately started giving stiff
competition to Parley and Coke. The parent company of Pepsi was founded in 1890 at
North Carolina in USA. Its CEO is Roger Enrico. PepsiCo India Holdings Pvt. Ltd. in
headquartered in Gurgaon and its CEO is Ms. Indra Nyui. In India it has 34 bottling
plants of which 8 are company owned bottling outlets (COBO) and 26 are franchise
owned bottling outlet (FOBO). SMV Beverages is a franchise owned bottling outlet.
Coca-cola reentered the Indian market in 1993 in collaborations with Parley India Ltd.

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PEPSICO IN INDIA
PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab
government- owned Punjab Agro Industrial Corporation (PAIC) and Voltas India
Limited. This joint venture marketed and sold Lehar Pepsi until 1991, when the use of
foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture
in 1994. Others claim that firstly Pepsi was banned from import in India, in 1970, for
having refused to release the list of its ingredients and in 1993, the ban was lifted, with
Pepsi arriving on the market shortly afterwards. These controversies are a reminder of
"India's sometimes acrimonious relationship with huge multinational companies." Indeed,
some argue that PepsiCo and The Coca-Cola Company have "been major targets in part
because they are well-known foreign companies that draw plenty of attention." PepsiCo
has grown to become one of the country’s leading food and beverage companies. One of
the largest multinational investors in the country, PepsiCo has established a business
which aims to serve the long term dynamic needs of consumers in India.

PepsiCo India and its partners have invested more than U.S. $1 billion since the company
was established in the country. PepsiCo provides direct and indirect employment to
185,000 people including suppliers and distributors.

PepsiCo India Holdings Pvt. Ltd. operates through its subsidiaries including Pepsi Foods
Ltd, Frito - Lay India, and Tropicana Beverages Company. The company, through its
subsidiaries manufactures, bottles, and exports fruit juices and carbonated beverages and
packaged snacks such as Lays, Ruffles, Fritos, and Cheetos. PepsiCo India is based in
Gurgaon, India.

PepsiCo nourishes consumers with a range of products from treats to healthy eats that
deliver joy as well as nutrition and always, good taste. PepsiCo India’s expansive
portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew,
in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages
such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana100% fruit
juices, and juice based drinks – Tropicana Nectars, Tropicana Twister, Slice, and the new
brand Nimbooz by 7up with real lemon juice. Local brands – Lehar Evervess Soda,
Dukes Lemonade and Mangola add to the diverse range of brands.

In snacks segment - PepsiCo’s foods company, Frito-Lay, is the leader in the branded
salty snack market and all Frito Lay products are free of trans-fat and MSG. It
manufactures Lay’s Potato Chips; Cheetos extruded snacks, Uncle Chipps and traditional
snacks under the Kurkure and Lehar brands. The company’s high fibre breakfast cereal,
Quaker Oats, and low fat and roasted snack options enhance the healthful choices
available to consumers. Frito Lay’s core products, Lay’s, Kurkure, Uncle Chipps and
Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its
products contain voluntary nutritional labeling on their packets. The group has built an
expansive beverage and foods business. To support its operations, PepsiCo has 43
bottling plants in India, of which 15 are company owned and 28 are franchisee owned. In
addition to this, PepsiCo’s Frito Lay foods division has 3 state-of-the-art plants.

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PepsiCo’s business is 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. PepsiCo India's agri-partnerships
with farmers help farmers across the country grow and earn more.

PepsiCo's involvement in Indian agriculture stems from its

vision of creating a cost-effective, localized agri-base in India by leveraging farmers’
access to world class agricultural practices. PepsiCo India worked with farmers and State
Governments to improve agri sustainability, crop diversification and raise farmer
incomes.  PepsiCo helped transform the lives of thousands of farmers by helping them
refine their farming techniques and raise farm productivity, and customized solutions to
suit specific geographies and locations.

The most ambitious project is a joint program, launched in

1989, between PepsiCo India, the Punjab Agriculture University (PAU) in Ludhiana and
Punjab Agro Industries Corporation (PAIC) in Chandigarh. The program focuses on
evolving agricultural practices to help Punjab farmers produce internationally
competitive products. Over the last five years, PepsiCo has also collaborated with the
Thapar Institute of Technology to develop a high quality potato seed program.

PepsiCo was a pioneer in the concept of contract farming under

which the company transfers agricultural best practices and technology and procures the
produce at a guaranteed price.  To support the initiative, PepsiCo set up a 27-acre
research and demonstration farm in Punjab to conduct farm trials of new varieties of
tomato, potato and other crops. The program, which includes seed production, has
successfully evaluated the following crops,

 Several varieties of basmati rice more than 200 varieties and hybrids of chilli
 25 varieties and hybrids of corn
 More than 60 varieties of peanut
 More than 100 varieties and hybrids of tomato.

Additionally, the development of new tomato varieties has helped increase total annual
production of tomato varieties from 28,000 tons to over 200,000 tons in Punjab. Yields
have more than tripled from 16 tons to 54 tons per hectare.

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Under the program, 6 high-qualities, high-yield potato varieties have also been
introduced to Indian farmers. These new potato seeds have helped to increase farm
income and enabled PepsiCo to procure world class chip-grade potatoes for its Frito Lay
snacks division. The company has partnered with more than 10,000 farmers working in
over 10,000 acres across Punjab, U.P., Karnataka, Jharkhand West Bengal, Kashmir and
Maharashtra for the supply of potatoes. PepsiCo India has also partnered with 1,200
farmers in Rajasthan to cultivate barley in a tie up with the United Breweries Group.
PepsiCo India’s technical team also implemented a high quality seed program to deliver
early generation and disease free seeds to farmers.

Tropicana – Tropicana product is an American based company, and was founded in

1947 by Anthony T. Rossi in Bradenton, Florida, USA. Since 1998, it has been owned by
PepsiCo, Inc. Pepsi offers the wide variety of products to meet the choice and preference
from fun for your items to the products choices that contribute to healthier life style.

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 KEY DEVELOPMENTS FOR PEPSICO INDIA HOLDINGS
PVT.LTD.

PepsiCo India Holdings Pvt. Ltd. Launches Packaged Nimbu Paani 'Nimbooz by
7Up'

PepsiCo India Holdings Pvt. Ltd. has launched its packaged nimbus paani 'Nimbooz by
7Up'. The product, with real lemon juice, no fizz and no artificial flavors’, will be
available in three packaging formats of 200 ml returnable glass bottles, 350 ml PET and
200 ml tetra packs, priced at INR 10, INR 15 and INR 10 respectively.

PepsiCo India Holdings Pvt. Ltd. to Launch Lemon Drink

PepsiCo India Holdings Pvt. Ltd. is expanding its product portfolio in India in the lemon
drinks category and has plans to introduce a product under 7up brand ahead of the
summer season. The new product would be less carbonated and is targeted at the mass
market for on-the-move consumers.

Headquarter : New York, U.S.

Area served : Worldwide.

Industry type : Food and non alcoholic beverages.

Products : Pepsi, Diet Pepsi, Mountain dew, 7up, Mirinda, Slice, Tropicana
products

Nimbooz juice, Aquafina, Fritos, Cheetos, and Lays.

Key person : Indra Krishnamurthy Nooyi (president), and (CEO).

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 ORIGIN OF SOFT DRINK IN JAMSHEDPUR
Late Charan Singh is credited with initiative to set up Soft drink industry in the
city. He was a resident of Phagwara, Punjab and he used to sell soft drink in carts.
Domestic tension forced him to march to Jameshedpur 50 years ago to seek a living for
him. Then he set up his own machine and started bottling without any brand name. Today
his son Mr. Sundar Gurudev is carrying out the legacy, which his father had left behind.
This plant operates only 3 months (summer). Even today Jamshedpur remembers the
great exponent THANDA WALA.

The credit of establishing Jamshedpur in the soft drink map goes to late Dharamchnd
Kamani. During the course of his business trips he was struck with the idea of setting up
of a soft drink industry in Bihar. June 1967 was significant for soft drink industry in
Jamshedpur.

S.M.V. BEVERAGES Pvt. Ltd.

Introduction:
M/s SMV Beverages Pvt. Ltd., Jamshedpur is a franchise owned bottling plant
(FOBO) is located on the Tata Kandara road in Adityapur Industrial Area at Jamshedpur
and producing Pepsi range of bottled soft drinks, viz. Pepsi, Mrinda, 7up, Mountain
Dew, Slice and Soda and it has now become a house hold word in the state of Jharkhand.
The previous name of SMV was STEEL CITY BEVERAGES, but in March 1999 steel
city beverage taken over by Mr. S. K. Jaipuria From Mr. N. K. Kamani along with
Rushab Marketing company. He was very much enthusiastic to increase the production
and sales and to nature the whole market of Jharkhand. He established another plant in
the same name of SMV Beverages Pvt. Ltd. And increase the production from his new
plant is 600 bottles per minute. Simultaneously a new market came in name of
Hyderabad Marketing Company, which is creating the needs of whole Jharkhand state.
The company symbolizes self reliance in technology and ranked as the best bottling
company of the country in terms of quality, efficiency, and productivity. Till 1998 it was
under its chairperson Smt Kokum Kamani and the country has constantly bagged
numerous awards in various occasions for quality assurance and productivity. In 1993 it
bagged top honors for the best quality conscious plant among all the Pepsi bottling
companies in India. Steel City Beverages Pvt. Ltd. Was established in the year 1967 and
production commenced in March 1969. At the very start company installed state of art
machines and technology for the production and bottling of soft drink. The bottling plant
with a capacity of 220 bottles per minutes was totally automatic and also had a modern
state of art intermix machine for bringing forth the right blend of flavors. The company
constitutes to adopt innovative technology in keeping with its policy of constant entered

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into an agreement with Pepsi food limited for the production and sales of soft drinks for
the people of Jharkhand. Right now there is only one bottling plant of Pepsi in Jharkhand
and it cater the need of all the Pepsi products in Jharkhand. Entire state is divided into
three territories Jamshedpur, Ranchi, and Dhanbad, and one territory development officer
controls each territory.

ENVIRONMENT SCANNING:

The process by which organization monitors their relevant environment to identify

opportunities and threats affecting their business are known as environment scanning.
The external environment in which S.M.V. Beverages Pvt. Ltd. exists consists of a
bewildering variety of factors. These factors (may also be termed as influences) are
events, trends, issues, and expectation of different interested groups. These factors are
explained below.
 Events are important and specific occurrences taking place in different
environment sectors.
 Trends are the general tendencies or the courses of action along which
events takes place.
 Issues are the current concern that arises in response to events and trends.
 Expectations are the demands made by interested groups in the light of their
concern for issues.

By monitoring the environment though environmental scanning, the S.M.V.

BEVERAGES Pvt. Ltd. consider s the impact of the different events, trends, issues, and
expectation on its strategic management process. Since the environment facing
organization is complex and its scanning is absolutely essential, strategist has to deal
cautiously with the process of environmental scanning is collected systematically.
Information related to markets and customers, the changes in legislation and regulations
which have a direct impact on an organization’s activities, government policy statements
pertaining to S.M.V. BEVERAGES Pvt. Ltd. business and industry and so on , could be
collected continuously to monitor changes and take the relevant factors into account.
S.M.V. BEVERAGES Pvt. Ltd. conducts special surveys and studies to deal with specific
environmental issues from time to time. Such studies may be conducted, for instance,
when S.M.V. BEVERAGES Pvt. Ltd. has to undertake special projects, evaluate existing
strategies, or devise new strategies. Changes due to unforeseen development may also be
investigated with regard to their impact on the organization. Today S.M.V. Beverages
Pvt. Ltd. stands as a proud monument the great visionary its founder Late D.N. Kamani
and strides forth towards progress and prosperity for the fulfillment of the ideas of its
revered founder.

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 ONE DAY IN PEPSI PLANT
In summer, when the mercury level crosses 40˚F we wish to have ice creams or
cold drinks only. And it is as like a dream, if one gets the chance to visit the production
unit of a cold drink plant, and also gets opportunity to have cold drinks without any limit
and cost on such a hot day. Tuesday, 19 th of May 2009 was one of the hottest days in
Jamshedpur of this year’s summer and also a dream’s day for me when I got such an
opportunity to visit the production unit of pepsi of S.M.V. Beverages Pvt. Ltd.
Jamshedpur.
Here I want to share my experience of visiting the production unit of pepsi and
knowledge I gained after seeing the production processes of different brands of pepsi.
But before going into the deep I would like to thank Mr. Dhananjay Kumar (M.E), who
changed the hottest day into my dream’s day and also to all staffs of S.M.V. Beverages
Pvt. Ltd. Jamshedpur for guiding me during this visit and sharing their vast knowledge
and experience with me.

Pepsi production process:

Any cold drinks (soft drinks) generally contains
 Water
 Sugar
 Flavors or fruit pulp
 Chemicals
 CO2 gas (in carbonated soft drinks)

The below four ingredients are added with the first ingredient i.e. water and cold drink is
prepared. Here in S.M.V. Beverages Pvt. Ltd. Jamshedpur also the same ingredients
are used to prepare pepsi and its’ other brands. All these ingredients are added at
different stages by different processes. The diagram in the next page represents the flow
or sequence of steps involved in S.M.V. Beverages Pvt. Ltd. Jamshedpur for
manufacturing of pepsi products. Pepsi products are available in different SKUs (stock
keeping units) or packs, e.g. glass bottle, pet bottle, metal can, tetra pack etc. the
preparation of main liquid or drink is same but the machines and equipments used for
filling in different SKUs are different.

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Process flow diagram
Treated water from
Treated water water treatment plant
Cristal sugar
from sugar store Steam line Steam generation

Sugar store room,

containing sugar
stocks

Syrup preparation
(Syrup tank)
1. Caustic Soda
2. Hot water
3.Cold water

Syrup filtration unit

1 2 3
Syrup chilling unit

4. Syrup tank
4 5 6
5. Syrup tank CO2 Addition
6. Syrup tank

Crowning machine
Filled bottles
Empty bott les Bottle filler
Flavor addition

7 8 9

Washed bott les

Bott le washing plant
7-Caustic Soda, 8-Hot water, 9-Cold water

During my visit to S.M.V. Beverages Pvt. Ltd. Jamshedpur, I saw

1. Water treatment plant, where water is purified.
2. Bottle washing plant, where used glass bottles are washed
3. Syrup room, where syrup is prepared from sugar.
4. Bottle filling plant, where bottles are filled with the final product.
5. Acid room, where custic soda is kept, which is used for cleaning the equipments
and pipelines after every batch of production.
6. Yard for keeping empty bottles and ware houses for storing the filled bottles.

The brief introduction of each plants are given bellow.

1. Water treatment plant:

Water in S.M.V. Beverages Pvt. Ltd. Jamshedpur, is coming from the Sitarampur dam
on the Kharkai river. It is stored in a reservoir. This raw water is being treated in the
water treatment plant, before the production process starts. Coagulation process is used
here for this purpose. Main chemicals used are ferrous sulphate (FeSO4), calcium
hydroxide (CaOH) and chlorine (Cl). Initially water is treated with all these chemicals in
the treatment tank and becomes turbid. All the impurities get settled at the base and

21
remove the turbidity. Then, it is sent to the carbon tank where all the microorganisms and
chlorines are removed. The water so obtained is completely free from any kind of
impurities and used in further processing. The maximum alkalinity maintained until as
much as 50 ppm.
2. Bottle washing plant:

Used bottles returning from the market are stealthy. Before filling these empty bottles
with new product, these bottles are passed through the bottle washing plant where these
dirty bottles are washed. It is completely an auto process which takes place within a
machine called washer machine. The machine has three compartments. Bottle for
washing are placed on the conveyer come inside the machine and get successive
treatment. Bottles are treated with 4% caustic soda in the first compartment at a
temperature of 100-150˚ C. Next these are conveyed to the second compartment, where
bottles are again washed with hot water at a temperature of 80-100˚ C, in the third
compartment bottles are treated with cold or normal water at room temperature. Time
duration in each compartment is 10 minutes. Bottles are then sent through the inspection
center, where these are closely watched against white rays of light. Bottles containing
any dust or other unwanted things are removed from the line here.
3. Syrup room:

Here syrup is prepared. Syrup is prepared by flowing steam and sugar crystals in a
specified ratio into a closed container. The temperature of this prepared sugar remains
between 80-100˚C. This syrup contains some impurities as, sometimes there are some
impurities presents in sugar, so this syrup is filtered to remove all those contaminations.
Before storing in syrup tanks this syrup it is passed through the cooler where syrup
temperature is reduced to 25-30˚C. This temperature is maintained throughout the whole
process. Here next flavors are added at a specified quantity with the syrup used for
preparation of pepsi or other brands.

22
 4. Bottle filling plant:

Next, for preparation of carbonated soft drinks brands like pepsi, mirinda, 7UP, and
mountain dew, carbondioxide gas ( CO2) is mixed with this prepared solution. And for
the brand like slice, fruit pulp is added. Now the solution is ready for filling into the
bottles. The washed empty bottles are filled by automatic filler machine. This machine
can fill 60 bottles in one minute. After filling, crowns or caps are fitted on the filled
bottles with the help of crowning machine. Now these filled bottles are ladled and then
sent for packing and storing in the godowns.
5. Acid room:

There are three tanks in this room. The first tank contains caustic soda, the 2 nd tank
contains hot water and the third tank contains cold water. After finishing every batch of
production the whole production lines and containers/tanks are washed. And for this
purpose, first of all caustic soda is passed through the pipeline, next hot water and at the
last cold water.
6. Yard for keeping empty bottles:

S.M.V. Beverages Pvt. Ltd. Jamshedpur has a large area in side its premises. A large
part of its open area is used for keeping the empty bottles.
7. Warehouse:
S.M.V. Beverages Pvt. Ltd. Jamshedpur has its own warehouse in side its premises for
storing the produced products. The produced products are sent to the customers from
these warehouses. For transferring the filled bottles inside the company fork-lifts are
used.

23
 PEPSICO PACKAGING PROCESS
PepsiCo is an industry leader in packaging- helping to promote and implement
standards for sustainable packaging.

PepsiCo distribute the products in a variety of packages, each carefully designed to

deliver convenience and appeal to the consumers while protecting the integrity of the
products. The team of engineers and packaging suppliers are dedicated to finding
preferable designs, and are working continuously towards improving the packaging
performance while reducing the packaging footprint. PepsiCo are committed to bringing
the environmental responsibilities to all areas of the business. PepsiCo are continuously
improving the environmental programs and exploring solutions to environmental
challenges through socially responsible, scientifically based and economically sound
methods. Pepsi pass this commitment along to his suppliers and the consumers in an
effort to do our part. The goals are to design and develop packaging systems that are
environmentally responsible throughout their entire life cycle, inspire consumers who
want to live more environmentally sustainable lives by promoting recycling, and partner
with leading organizations to promote sustainable packaging and recycling practices.
Through ongoing engagement with the packaging suppliers, we are working towards a
position where all of our operations use the most environmentally suitable packaging
available in their country of operation.

PepsiCo follow five principles of sustainable packaging design:

Reduce : Using less material in the packaging, to conserve natural resources.

Reuse : Increasing use of reusable packaging and increasing the amount of

recycled material in the packaging.

Recycle : Designing packaging for recycling and developing biodegradable and

compostable packaging solutions.

Remove : Eliminating environmentally sensitive materials and processes from the

packaging.

24
Renew : Increasing use of renewable resources.

In an effort to meet his goals, PepsiCo have launched a global sustainable packaging
policy and formed a Sustainable Packaging Council dedicated to:

 Developing sustainable packaging strategies, goals, and targets

 Developing alternative packaging material technologies
 Supporting responsible disposal practices

Using Less Material in our Packaging 

Although beverage containers are the most recycled consumer packaging in the United
States – and they are designed for recycling, we continue to look for ways to reduce the
amount of packaging used for the products. And we are achieving success. PepsiCo
scientists and packaging specialists have led the way in reducing packaging materials
through cost-effective changes in design and production, known in the industry as "light-
weighting." Light-weighting reduces the amount of raw materials and energy used to
make our packages and generates less waste after the products are enjoyed.

PepsiCo introduced new packaging for half-liter bottles of Lipton iced tea, Tropicana
juice drinks, Aquafina Flavor Splash and Aquafina Alive that contain at least 20 percent
less plastic than the original package. Aquafina has trimmed the amount of plastic used in
its most popular bottle - the half-liter (16.9 oz) bottle - by 35 percent since 2002. This
saves more than 50 million pounds of plastic annually. Aquafina's half-liter bottle weight
has changed from 15 grams to 13.2 grams putting it among the lightest water bottles on
the U.S. market.

Reducing and Recycling the Waste 

At Frito-Lay, route sales employees return empty cartons from stores to our plants for
reuse or recycling and delivery boxes are used an average of six to seven times, saving
nearly 5 million trees a year and keeps 56 million pounds of cardboard away from
landfills. For Frito-Lay's North American and International products, Frito-Lay recycles
packaging film waste from our suppliers' sites for use in various other products (park
benches, boards, etc). Our Quaker Oats facility in Cupar, Scotland has reduced the
amount of corrugate used by 30% over the past 5 years by moving to cases with open
tops and reduced sides. Over the last five years, PepsiCo U.K. has reduced the amount of
plastic used to make Tropicana and Copella juice bottles by 18 percent. In Mexico, our
snack business saves more than 100 million boxes per year by using every box about
seven times between the distribution center and point of sale. By recycling our boxes up
to seven times, we save on average each year about 45,000 trees, 1,800,000 mz of water

25
and 1,620,000 liters of fuel. The Latin America Beverages business has optimized
beverage packaging projects across Mexico, Peru, Columbia, Bolivia, Brazil, Argentina,
Honduras and Guatemala, resulting in the removal of over 800 tons of packing annually,
specifically reducing the need for PET resin for bottles, corrugate boxes, bottle-top
closures and glass. The average Pepsi bottle contains 10% recycled plastic, more than
any other national soft drink brand. Pepsi-Cola's bottles and cans are among the most
recycled packages made – since 1990; more than 150 billion Pepsi containers have been
recycled. Across all our U.S. divisions, initiatives conducted in 2007 to reduce
packaging have resulted in more than 20 million pounds of material reduction across PET
bottles, paperboard and corrugated materials.

ORGANIZATION CHART OF SMV.BEVERAGES

P
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JAMSHEDPUR

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26
ORGANIZATION CHART OF HYDERABAD MARKETING
COMPANY

P
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27
 EVERY DEALER SURVEY (EDS)
The design of competitive marketing strategies begins with competitor analysis. The
main competitor of PepsiCo is Coca-Cola. In market we see three types of outlets where
cold drinks are sold; those are exclusive outlet of PepsiCo, exclusive outlet of Coca –
cola and mixed outlet of PepsiCo and Coca – cola. Every Dealer Survey refers to the
survey of all the three types of outlets of a market segment. In this survey we collect the
data of various promotional and selling tools (case stock, number of glow sign, dealer
board, bunting etc, and number of visicooler) provided by PepsiCo as well as Coca – cola
present at the outlets. Dealer survey is primary method by which on gets first hand
information with respect to the following factors:
Knowledge of market in terms of:
 Name and number of dealers
 Location of dealers.
 Type of dealers.
 Market output i.e. case stock, number of glow sign, dealer board, bunting etc, and
number of visicooler.

Distribution Effectiveness:
From the dealer survey we can find out the number of dealers and the stock and the other
details. Non buyers also be located. Activation of non buyers should be done
immediately. With the above knowledge on can increase the number of routes to get
increased dealers coverage and hence also increased more effective sales. Also details of
this have help to check upon the route selling of salesman, so that we can control them by
closely monitoring their performance.
Training group for future executive:
Good investigation from these surveys can be recruited to take up future jobs. These
people will ideally suitable, as they would know the market thoroughly.
 They should visit the counter on the daily basis including the remote areas.
 Salesman should visit to every outlet on weekly basis.

How to increase distribution effectiveness:

 After the above survey, the company can improve the distribution network.
 Immediately activeness of non- buyers.
 Improve the dealer coverage.
 Increase the realignment of routes.
 Better control thorough route card.
 Availability of goods on time.

Therefore, “Every Dealer Survey” is important keeping in mind that distribution forms
the major marketing activity in our industry and also that through these survey one
acquires knowledge of the market. It should also be added here that continuous dealer
surveys are required because of the following reasons.

28
  As our turn over increase we require skills to tackle problem and dealer survey help in
acquiring first hand as to use the skills effectively.
 With our increased growth , investment of money are increased for various marketing
inputs e.g. case stock, advertising, merchandising etc. and by survey we can get an
indication of the areas in which investment should be made to get the maximum
benefits.
Importance of EDS (every dealer survey):

Market Knowledge:
Dealer survey gives the total profile of the market by knowing
 Location of dealers.
 The type of dealer.
 Number of dealer who keep Pepsi and coca cola and comparing the stock and
awareness of brand.
 Take the information about distribution process of company.
 Take the information to dealer that which brand of product more sell or popular.
 Gather the information about scheme which is given by company to dealers.
 The marketing inputs with respect to:-
i. Advertising
ii. Visi cooler size
iii. Customer service

Though PepsiCo has entered the market only 15 years ago but it has captured a big
market share and ends the monopoly of coca cola, which has ruled for 13 years. This
survey enables us to know,
 How many exclusive outlets of PepsiCo, Coca – cola and how many mixed
outlets of both brands are there in a particular market segment?
 What are the promotional kits presents at all of these three types of outlets
provided by PepsiCo and Coca – cola?
 What are the gaps? I.e. what are those promotional tools, which can be used
to increase the sale of PepsiCo?
 How retailers can be motivated to sale PepsiCo products instead of Coca –
cola?

Apart from these, this survey also provide us the information about the sales every
outlets. And this report is useful for planning or taking decision about how much amount
should be spent for sales promotion for each outlet.
From these aspects we can know how good we are in the market place and those areas
where we are lacking. It also helped to found that in some place or areas where only the
competitor brand available, then by the help of survey we can find out the reason behind
non availability of PepsiCo product in that specific area. The knowledge of case stock
will indicate our “case- in trade” and that of competitors. This will also indicate our “case
velocity” which helps to plan our bottle as well as whether our distribution is effective or
not. If our case stock is low then we may decide upon a “case stocking” campaign.
Therefore, appropriate marketing strategies can be worked out depending upon the
findings.

29
 PLAN - O- GRAM
PEPSICO STRATEGY
PepsiCo provides visicoolers (Refrigerators fitted with glass door) to Pepsi
outlets, so that the retailers can provide chilled Pepsi drinks to consumers. This also
increases the sale of Pepsi products. Visi – coolers are of various sizes for instance 165ℓ,
200ℓ, 220ℓ, 300ℓ, 320ℓ, 400ℓ, 440ℓ, 650ℓ, 1200ℓ and so on. Plan – O – Gram is the
process of filling of visi – cooler with the Pepsi, and other Pepsi products i.e. 7UP,
Mirinda, Slice, Mountain Dew, Aquafina, and Tropicana fruit juice according to the
sequence prescribed by PepsiCo.
As per the research conducted by PepsiCo, ‘Pepsi’ is the most selling brand followed by
‘7Up’, ‘Mirinda’, ‘Mountain Dew’ and ‘Slice’. And on the basis of this research PepsiCo
has developed a sequence of different brands for filling up the visicooler and also for
placing in to the shelves. Sequence is as under.
Pepsi › 7Up › Mirinda › Mountain Dew › Slice › Aquafina
Pepsi products are available in glass bottles, pet bottles, metal cans and tetra packs. The
number of bottles, cans and packets filled in visi – coolers varies as per the size and
capacity of the visi – cooler. The figure in the next page shows different brands,
sequentially filled in a visi – cooler.

Objectives
 To keep the visicooler pure.
 People what see, that people buy. I.e. to attract consumers by displaying their
favorite brands or to help the consumers in finding their favorite flavor or brand.
 To attract consumers by displaying different brands.
 To promote the sale of all flavors or brands.
 To motivate the retailers for effective utilization of visicooler for selling Pepsi
brands.
 To beat the competitors and to lessen the sale of substitute products available in
the market.

30
 Products are charged according to the
P–O –G

200 ml glass bottles of

Pepsi and 7UP are kept
in 1st shelve.

Glass bottles of
Mirinda, Dew, Slice
and 600 ml pet bottles
of Pepsi, 7Up,and
mirinda are kept in
the 2nd shelve.

2.0 ℓ pet bottles of

Pepsi, Mirinda and
7UP are kept in the
lower shelve.

PepsiCo visicooler

Procedure
Visicooler plan – o – gram (P – O – G) includes the following three processes.
I. Visi pure and visi cleaning.
II. Charging.
III. Planogram.

l. Visi pure and visi cleaning:

Sometimes retailers use to keep products like chocolates, ice creams, and other substitute
and competitor’s products like ‘fruity’, ‘jumpin’, ‘horlicks chilled doodh’ , and coco cola
products in the visicooler. These products grabs the places of pepsi, again this increases
the selling of substitute products. Here visi pure means, removing all items except pepsi
from the pepsi – visicooler. And visi cleaning is simply cleaning of visicooler with a
duster. Visi cleaning helps to keep the products clean and also attract the consumers.

31
ll. Charging:
This process involves the transfer of pepsi from warm stock to cold stock. Or in other
words we can say charging is nothing but filling of visicooler with pepsi products from
the stock available at the outlet. This helps in following ways,
 Helps in effective utilization of the visicooler.
 Helps in maintaining the stocks of chilled pepsi products every time.
 Attract consumers.
 Helps in keeping the visicooler pure.
 Increases sale of pepsi.

Bottles/cans/tetra packets are first cleaned with a clean duster and dusts are removed and
then filled into the visicooler.
lll. Planogram:
This is a process which involves sequentially placing of bottles/cans/tetra packs of
different flavors or brands in the visicooler. The sequence of different flavors or brands
is prescribed by Pepsico, and it is discussed earlier. Planogram helps in following ways,
 Helps the consumers in finding their favorite flavor or brand.
 Attracts consumers by displaying different brands.
 Promotes in selling all flavors or brands.
 Acts as window display in the outlets.

Under mentioned are the few steps for planogram,

 Steps for 1st time planogram i.e. in new cooler.

Step 1: Empty the cooler.

Step 2: Clean the cooler.
Step 3: Clean the bottles/cans/tetra packs with a duster.
Step 4: Place the products in lower shelve first.
Step 5: Maintain a gap of 2 Inches between the bottles and the upper shelve.
Step 6: Repeat this process.
Step 7: Charge the products according to the prescribed sequence of P – O - G.

 Steps for planogram during 2nd time and onward visits.

Step 1: Check the cooler.

Step 2: Determine the number of bottles of each brand or flavor required to fill the
cooler according to the P – O – G sequence.
Step 3: Clean the bottles/cans/tetra packs with a duster.
Step 4: Place the products in lower shelve first.
Step 5: Maintain a gap of 2 Inches between the bottles and the upper shelve.
Step 6: Repeat this process.
Step 7: Charge the products according to the prescribed sequence of P – O - G.
Step 8: Ensure that cooler is 100% charged.

32
How retailers are motivated to maintain P – O – G, and visi pure?

Planogram and making the visicooler pure is the job responsibility of ‘merchandiser’. A
merchandiser is a person who visits the outlets on daily basis. He checks the visicooler,
makes it pure and charges the product according to the planogram. But, sometimes
retailers use to keep other products also (non pepsi products) in the visicooler provided
by Pepsico ands they do not show any interest to follow the planogram. So to motivate
retailers to follow planogram, PepsiCo provides attractive incentive/pacages to the
retailers.
I did P – o – G for two weeks in two different market areas Parsudih and Telco during my
training period. The P – O – G reports of these two areas are given in the next pages.
Problems, we faced during P – O – G:
1. Unavailability of all flavors at some outlets.
2. Technical problems of visicooler, such as
 Cooling problem.
 Cooler was not working.
3. Some retailers were not interested for P – O – G.
4. Some outlets use to sale only few flavors or brands of pepsi and not all.

How we solved those problems?

During our training period for P – O – G, we faced above problems. And with the help,
guide and direction of the C.E (Customer Executive) of respective area and our Trainer
(Mr. Dhananjay Kumar) we solved some of those problems.
1. When there was a shortage of any flavor at any outlet, we informed to the
respective distributor to supply that flavor.
2. After getting information from the concerned C.E, technical people solved the
technical problems of visicoolers at outlets.
3. Some retailers were not interested for P – O – G. To motivate them for the same
we explained the benefits of P – O – G and various skims which were available
for the retailers for P – O – G and maintaining visi pure.

‘Pepsi Cool Zone’ is one of such skim, which was available during that period of
time for the retailers.
4. Outlets, where only few flavors or brands of pepsi are sold not all the flavors, we
placed one available flavors in each shelve of the cooler.
e.g. ’Cheer Bar’ restaurants, where only three brands of pepsi are sold.
which are Pepsi, 7Up, and Pepsi – Soda water.

DISTRIBUTION CHANNEL:-

33
My field of study will look into upon the following aspects viz. market research of
distribution strategy and market share.

The main purpose of trade is to supply goods to the consumers living in far off places. As
goods and services move from producer to consumer they may have to pass through
various individuals. The middlemen are connecting links between producers of goods and
consumers. They perform several functions such as buying, selling, storage, etc. The
middlemen constitute the channels of distribution of goods. Thus, a channel of
distribution is the route or path along which goods move from producers to ultimate
consumers.
The route taken by goods as they move from producer to consumer is known as Channel
of Distribution.
From the above diagram it can be found that there is just one direct channel i.e. from
producer to the consumer. There are many indirect channels like:

(1) PRODUCER DISTRIBUTOR RETAILER  CONSUMER

(2) PRODUCER CONSUMER
(3) PRODUCER DISTRIBUTOR CONSUMER

34
The route normally used by FMCG companies especially by the soft drink companies is
the second one i.e. (ii). In this case the wholesaler is usually called ‘distributor’.

If the producer is producing goods on a large scale, it may not be possible for him to sell
goods directly to consumers. As such, he sells goods through middlemen. These
middlemen may be wholesalers or retailers. A wholesaler is a person who buys goods in
large quantities from producers; where as a retailer is one who buys goods from
wholesalers and producers and sells to ultimate consumers as per their requirement. The
involvement of various middlemen in the process of distribution constitute the indirect
channel of distribution. Let us look into some of the important indirect channels of
distribution.

DISTRIBUTOR

Distributors are one of the important middlemen in the channel of distribution who deals
with the goods in bulk quantity. They buy goods in bulk from the producers and sell them
in relatively smaller quantities to the retailers. In some cases they also sell goods directly
to the consumers if the quantity to be purchased is more. They usually deal with a limited
variety of items and also in a specific line of product, like iron and steel, textiles, paper,
electrical appliances, etc. Let us know about the characteristics of distributors.

CHARACTERISTICS OF DISTRIBUTORS

35
The followings are the characteristics of distributors:
(i) Distributors buy goods directly from producers or manufacturers.
(ii) Distributors buy goods in large quantities and sells in relatively smaller quantities.
(iii) They sell different varieties of a particular line of product. For example, a distributor
who deals with soft drinks is expected to keep all varieties of soft drinks viz. 200ml,
300ml, 500ml, pet bottles, mineral water, soda etc.
(iv) They may employ a number of agents or workers for distribution of products.
(v) Distributors need large amount of capital to be invested in his business.
(vi) They generally provide credit facility to retailers.
(vii) He also provides financial assistance to the producers or manufacturers.

FUNCTIONS OF DISTRIBUTORS
Let us now know what the functions of distributors are.
(a) Collection of goods: A distributor collects goods from manufacturers or producers in
Large quantities.
(b) Storage of goods: A distributor collects the goods and stores them safely in
warehouses, till they are sold out. Perishable goods like fruits, vegetables, etc. are stored
in cold storage.
(c) Distribution: A distributor sells goods to different retailers. In this way, he also
performs the function of distribution.
(d) Financing: The distributor provides financial support to producers and manufacturers
by sending money in advance to them. He also sells goods to the retailer on credit. Thus,
at both ends the distributor acts as a financier.
(e) Risk taking: The distributor buys finished goods from the producer and keeps them
in the warehouses till they are sold. Therefore, he assumes the risks arising out of
changes in demand, rise in price, spoilage or destruction of goods.

SWOT ANALYSIS

36
In order to get clear understanding of the position of Diet Pepsi in the various markets we
did a SWOT analysis from the data obtained from the survey and the various retailer
interviews

STRENGTHS

PACKAGING AND PRICING :- Pepsi has the advantage of having provided the same
kind of health based carbonated drink the Slim Diet Pepsi Can which in comparison to
the Diet coke is a much more attractive offering because it is slim sleek equally healthy
and way cheaper.

DISTRIBUTION :- As already mentioned Pepsi India has one strongest and most
efficient sales and distribution networks not only in India but also throughout the globe.
Also in the particular market where the survey was done the sales people have developed
network which is powerful enough to make or break sales for Pepsi in any given quarter
P R – One of the most important factors of success of PepsiCo in India is the relationship
the company and its constituents have with the channel partners. The Company officials
and even the employees of FOBO have very good rapport and relations with the Channel
partners. Also the recently introduced retailer benefit schemes such as the gold card
membership and other free gifts and offerings not only motivate the retailers but also
helped us create visibility for the Slim Diet Can range in a profound. The experience of
working with people who welcome us with a smile rather than a frown will always be
remembered.

NON-CARBONATED:- This is one those strengths of Pepsi that often goes unnoticed
but plays a very important role in success of Pepsi in India and even around the globe.
The non-carbonated segment is dominated by Pepsi, Tropicana is the market leader in
fruit juices. In the mineral water segment, Aquafina clearly outsells Kinley without any
fuss.

Bottling – Pepsi has the advantage of being in partnership with the largest bottler in India,
the R K Jaipuria Group. RKJ Group controls almost 65% of the bottling operations of
PepsiCo in India. At times this is also seen as a weakness of Pepsi in India attributing to
the fact that the Jaipuria group is so strong that in certain circumstances it can even defy
the parent Company. Pepsi – Pepsi Cola is the biggest strength of Pepsi as it is the market
leader in the Cola segment and clearly outsells both the products the Coca Cola Company
namely Coke and Thums Up. Pepsi controls almost 60% market share in the Cola
segment.

WEAKNESS :

SECOND MOVER DISADVANTAGE:- Diet Pepsi Cola does have the first mover

37
advantage which Diet Coke has and this may prove to be a major shortcoming also in the
Agra Market no Extensive efforts have been made to popularize it.
Brand – On a comparative scale Diet Coke proves to have a better brand image in
customers mind than. This compels to incur extra expenditure in Advertising, Promotions
and Sponsorship.

MCDONALDS:- This is one of the most important reason why Diet Coke outsells Pepsi
worldwide and specially in the United States. Similarly, in India Diet Pepsi may suffers
in sales because of institutional sales. Now Pepsi is trying very to bridge this gap in the
near future.

EXPENDITURE:- Right from the very beginning Pepsi has hired the biggest and the
most expensive stars in the country as its brand ambassadors and has spend heavily on
advertising which has affected its balance sheet.

Vizicoolers:- At presently this is one the biggest problems faced by Pepsi. Pepsi is not
able to get refrigerators in India so they have to import it other namely Sri Lanka,
Mauritius etc. Because of this, retailers are facing lot of problems in vigicoolers. They are
not able to get new refrigerators, replacements for old ones, even the repair work takes lot
of time because at times even the spares are not available on time.

OPPORTUNITIES

38
Lowest Per Capita Consumption:- Even after almost decades of presence in the market,
there are growth opportunities for Diet Pepsi in India as here the per capita consumption
of carbonated beverages is one of the lowest in the world.
Health Based: apart from its Juice Based drinks portfolio Pepsi can Use the Slim Diet can
to the maximum by promoting it as a health drink at Cheaper prices.

THREATS:

NGO’s:- NGO’s like CSE can seriously hamper the sales and prospects of companies
operating in this industry. This happened during the pesticide controversy involving both
coke and Pepsi.

HEALTH:- Growing health awareness among people and some of ill effects of
carbonated beverages have pursued many people to switch over to non-carbonated
beverages that can seriously hamper the long-term prospects of the entire Industry and
not Pepsi.

ENVIRONMENT:- Environmental concerns are often raised because of the massive

amount of water extracted by the bottling plants resulting in the drop in groundwater
level which affects the local population adversely. In India PepsiCo adopted the strategy
of growth through intensification. In the intensification strategy, it used market
penetration by developing one of the strongest sales and distribution network in the world
and utilizing it to the fullest.
Pepsi did market development by making the aware of the best products available at their
disposal, by using the best technology to produce the products, by properly
communicating with the customer, and making the customer realize that he is important.
Pepsi also explored new markets by venturing new segments like fruit based beverages,
sports drinks, snack food division.
Pepsi expanded and established itself in the market place by constantly developing new
products to the customers, like Tropicana, Gatorade, and Pepsi Blue. In this way, Pepsi
was also able to effectively counter the threats posed by substitutes and new entrant

39
PART-2

40
 INTRODUCTION

There is a project on market research and, which has been done by me for S.M.V
BREVELAGES. LTD, JAMESHEDPUR (A franchise of Pepsi India Ltd). Customer
satisfaction and the market research has the aim of building mutually satisfied long term
relation with key parties – customer , suppliers, distributors in order to earn and retain
their business.
PURPOSE:
The purpose of the project is to gather information about the true market
position of the soft drink market in the Jamshedpur division. Its main objective is to find
out how strong the relationship between Pepsi co. and the customer is and what are the
problems faced by retailer & customer.

OBJECTIVE OF THE STUDY

 To know the distribution strategy adapted by the organization.
 To know the response of the dealer regarding the product of PepsiCo.
 To find out the market share of Pepsi with respect to coca-cola in terms of WARM
STOCK, CHILLED STOCK AND EMPTHY STOCK.
 TO estimate Per day sale of Pepsi brand and its competitors in Jamshedpur
 To analyze the problem of retailer and customer
 To analyze customer satisfaction of Pepsi as compared to coke

41
2. Description of the Field
2.1 Introduction
The field of the study is JAMSHEDPUR town of the JHARKHAND. The study was on
the market research on Pepsi customer and also about the retailers. As it is the GREEN
CITY of JHARKHAND, this region is very developing with every scope to boost the
living standard of people. As the situation is convenient for our investigation to study
“MARKET RESEARCH ON PEPSI IN JAMSHEDPUR MARKET”.

As field situation is crucial for the research, we find the field informative for a research
with the available heads.

2.2 DESCRIPTION OF THE FIELD:-

The field of my study covers MANGO areas of the JAMSHEDPUR town for customer
data and I have covered for the retailers in the Jamshedpur town around 6 areas. I have
collected some data from customers like that areas mango 1, mango 2, bistupur,
adityapur, persudih, jugsalai.

1. Kasidih:-

This area is at the near of highway. It is very populated and market area. SO I found all
type of respondents for my study. They gave different opinion which helped me to get
different views and different suggestion from the different types of the people.

2. Aam bagan:-

It is an official colony for TISCO employee & heart of Jamshedpur. So here I found
various govt. job holder respondents and also this area helps me in giving various
information regarding PEPSI and Pepsi’s other soft drinks as it is family oriented area.
Also here all type of respondents were found who gave different opinions on the basis of
their economical status and daily needs.

42
 3. Kalimati:-

It is very industrial area where every type of people comes from their busy life for
enjoying in work. So her there was a chance to get the authentic data regarding the study.

4. Sakchi market:-

It is very populated as well as peaceful area where the people come to get some peace at the very
time. So here is a greater chance to get different types of authentic data from different types of
respondents.

5. Tank road:-

It is market area which is full of every type of people i.e. different age groups different class, etc

43
3. RESEARCH METHODOLOGY
3.1 INTRODUCTION
 Every research needs a systematic or scientific study so that proper authentic data
can be found out.
 By systematic it is mean that the study should be best on scientific analysis and
follows a proper and logical methodology.
 In order to make our research empirically valid and scientifically relevant a proper
research methodology has been evolved which caters from research design,
research tools, techniques methods, to analysis and proper presentation on data.
 In this present study, I have seen in six areas of Jamshedpur town and areas of
retailers in Jamshedpur. A consensus was made regarding the methodology to be
adopted before going to the field which would be intended with the selected topic.

Methods of data Collection:-

There are mainly two types of data:

1- Primary Data
2- Secondary Data

1. Primary Data Collection:-

Primary data can be collected by three methods:
A) Observation
B) Experiment
C) Surveys

But here, only survey method of data collection is proffered which is very suitable to
reach the researchers motto.

i) Research Instrument: - Printer questionnaire was used as the research

instrument to collect the required information. Separate questionnaires were

44
 prepared for retailer survey and interview was taken by the help of the
questionnaire.
ii) Area of Survey: - The survey was conducted in the different localities of
Jamshedpur city.

Sampling Plan: - Sampling plan consists of:

a) Sampling Unit: - The retailer of grocery shop, general store, betel shop, medicine
store was selected from different place of Jamshedpur.
b) Sample Size: - for retailer’s survey, 500 retailers were taken as sample size and
for the customer survey I have collected 150 samples fro the customer.
c) Sampling Procedure: - Cluster sampling producer was followed.
d) Sampling Method: - Data were collected by retailers and customer survey. The
retailer and customer are directly conducted and interviewed at their retail counter
and the different areas for the customer.
e) Time Period of Study: - The survey was conducted during 1st may to 30th June
2010.

2. Secondary Data Collection: -

As secondary data were not available with stockiest or with company people, so these
were collected from different books, company journals, company records and other
magazines.

3.2 SELECTION OF THE FIELD

I selected areas some different view according the convenience of my study and also
to get convent respondents for my research. The field was consisted of six areas of
customer in the Jamshedpur town i.e. mango 1, mango 2, bistuput, adityapur,
persudih, jugsalai and seven areas for retailers in the Jamshedpur town.

These areas were taken as our field of my study because these areas are populated,
peaceful and also market and family oriented. Here mixed populations were found i.e.
educated, unemployed, all types of age groups etc.

45
Research Design:-

In this research descriptive, research design was used because it finds out the
diagnostic information by asking the question like:

(a) What is it?

(b) Why is it?
(c) What it will be?
(d) What is should be?

Here it has been tired to analyze and describe about the reason behind the customer
satisfaction in Jamshedpur market and what measures should be applied.

3.3 SELECTION OF SAMPLES:-

When a small group is taken as the representative of the whole, the study is taken as
sampling study. The whole group from which the samples have been drawn is technically
known as universe or population and the group selected for the study is known as sample.

In the present study the universe is the total population if the six selected areas:

(1) Sakchi market (main area of survey)

(2) Kalimati Road
(3) Tank road
(4) Kasidih
(5) Balubhasa
(6) Aam bagan
As the universe is too much large so I decided to take only 150 customers and 400
retailers in the Jamshedpur market as our size for the convenience of my study.
The sample is very small as compared to the universe which may inconvenient yet it
fulfills the aim of the topic selected to be studied. As sampling method simple random
sampling design was taken. Because the samples or the respondents were selected on the
random basis without any bios.

46
3.4 DATA COLLECTION (Tool and Techniques used)

 Data are of two types i.e. Primary and Secondary. To collect primary data from
different source, along with samples, different tools and techniques will be used.
 To collect data from a universe, along with samples, different tools and
techniques are used.
 The methods of primary data collection i.e. adopted that that present study are
interview method (structured), questionnaires method (both open and closed
ended) and also the observation method.
 Also the secondary data were collected through newspapers, articles, and Internet.

3.5 DATA ANALYSIS (statistical technique)

The Statistical techniques used in the study are:-

 Pi-Chart
 Bar-Chart

PROBLEM ENCOUNTERED

1. Most of the people and retailers to whom I was trying to convenience, were
refusing to talk to me, because they thought that I had come from some
government organization or I was doing this only to earn money.
2. Female respondents were avoiding to my questions due to their shy nature and
also due to their conservativeness.
3. The responders were not giving the accurate data about income and about his
policy adopted.
4. Now they have the awareness towards the soft drinks they have adopted so it was
difficult for them to tell about looses and benefits of the drinks.
5. Some time the respondents were feeling very irritated while talking with me.
6. Due to illiteracy and low education, some respondents were unable to tell
anything authentically and also they did not have any interest on my topic.

47
 7. At that time one of the major problems was hot season. It was summer time and in
this time I have moving different areas for the data collection and created very big
problem to me.
MARKET REASERCH OF customer satisfaction

INTRODUCTION:-

Satisfaction is a person feeling of pleasure or disappointment resulting from comparing a

products perceived performance( or outcome) in relation to his or her expectation.

As the definition makes clear, satisfaction is a function of perceived performance and

expectations. If the performance falls short of expectation, the customer is dissatisfied. If
the performance matches the expectation, the customer is satisfied. If the performance
exceeds expectation, the customer is highly satisfied or delighted.

Many company are aiming for high satisfaction because who are just satisfied still find it
easy to switch when a better offer comes along. Those who are highly satisfy are much
less ready to switch. High satisfaction or delight creates an emotional bond with the
brand, not just a rational preference. The result is high customer loyalty. Xerox’s senior
management believes that a very satisfied or delighted is worth 10 th times as much to the
company as a satisfied customer.

Some of today’s most successful companies are raising expectation and delivering
performance too much. These companies are aiming for total customer satisfaction.

HOW TO RETAIN CUSTOMERS?

As we know that the customer behavior is quite complex itself, so it is not easy to
understand it completely and also make customer loyal towards the firm, but one can
minimize those reasons responsible for brand switch over in some possible extent. Before
finding some possible suggestion to retained a customer, we have to simplify the matrix
of relationship one again. Generally we developed the maintain relationship in which
rewards are distributed in proportion of costs. When our share of rewards is less then
what is demanded we are likely to experience dissatisfaction and exit the relationship,
vice-versa.

48
CUSTOMER VALUE= BENEFITS+PRICE

 Benefits = the sources of satisfaction provided by a product

 Price= both financial and non financial costs (cost of using)
 Source of Benefits= Product, Price, Promotion, Place, People, Process, Physical at
a level sustainable superior to competition.

Developing closer relationship with the customer and turning them into loyal ones,
the firm may consider the following suggestion:

 Define clearly the company needs and objective

 Define customers clearly with a deep understanding of their needs.
 Define explicit priorities for access to customer database based on enterprise
benefits of each customer contact.
 Establishing call centers which help in automating the operations off calls
generated between a firm and its customers, to build terms strategic relationships
with them.
 Personalization transforms a standard product or service into a specialized
solution for an individual.
 Use technologies as the rapid growth of the Internet based techniques have
provided techniques where companies establishing one to one customer
relationship online.
 The same set of customers will not be targeted too frequently, and interested
customers will not be ignored.

The aim of relationship marketing is to create strong, lasting relationship with group of
customers. It is to a firm’s advantage to develop long term relationship with existing
customers because it is easier and less expensive to make an additional sale to an existing
customer than to make a new sale to a new customer.

Customer satisfaction is more than just nice to know – it’s the leading indicator of your
company’s financial success. Unlike traditional market research companies, the Service

49
Management Group (SMG), is a satisfaction and loyalty research and consulting
company dedicated to employee and customer satisfaction measurement and service
improvement for multi-unit companies in the retail, restaurant and hospitality industries
through customer surveys and employs surveys. Whether you manage 50 or 5000
location, SMG can unearth the necessary information though customer satisfaction
measurement to help elevate service levels, loyalty and sales figures-at each individual
location.

When customer rate their satisfaction with an element of companies need to recognize
that customers vary in how they define good delivery. It could mean early delivery, on
time delivery, order completeness, and so on. Yet if the company had to spell out every
element in details, customers would race a huge questionnaire. The company must also
realize that two customers can report being “Highly Satisfied” for different reasons. One
may be easily satisfied most of the time and the other might be hard to please but was
pleased on this occasion.

4.1 SOURCE OF CUSTOMER SATISFACTIN

Research tells that a customer’s satisfaction comes from four major sources
which are:-

 Price of the product

 Quality of the product
 Approach of the Marketing Personnel
 After Sales Services.

So the company should fulfill these aspects so that customers buy their products.
Companies also should have to note that managers and sales people can manipulate their
ratings on customer satisfaction. They can also try to exclude unhappy customers from
the survey.

4.2 TOOLS FOR MEASURING CUSTOMER SATISFACTION

50
The following tools measure customer satisfaction:-

 COMPLAINT AND SUGGESTION SYSTEM:-

A customer-centered organization makes it easy for its customers to deliver suggestion

and complains. These information flows provide companies with many good ideas and
enable them to act quickly to resolve the problems.

 CUSTOMER SATISFACTION SURVEY:-

Responsive company’s measure customer satisfaction directly by conduction periodic

surveys them questionnaires to make telephone calls to a random sample of customers.
They also solicit buyer’s view on their competitor’s performance. While collection
customer satisfaction data it is also useful to ask additional question to measure
repurchase intention, this will normally e high. It is also useful to measure the likelihood
or willingness to recommend the company and brand to others. A high positive word-of-
mouth score indicates that the company is productive high customer satisfaction.

 GHOST SHOPPING:-

Companies can hire persons to pose as potential buyers to report on strong and weak
point experienced in buying the companies and competitors product. The ghost supper
can even certain problem to test whether the company’s sales personnel handle the
situation well.

 LOST CUSTOMER ANALYSIS:-

Companies should contact customers who have stopped buying or who have! Switched
over to another superior to learn why this happened. Not only is it important to conduct
existing interviewers when customers first stop buying but it is also necessary to monitor
the customer loss rate. If is increasing this clearly indicates that the company is falling to
satisfy customer.

51
If general, customer satisfaction may be defined, as it is a person feeling of pleasure or
disappointment resulting for comparing a producer’s perceived performance or outcome
in relation to his or her expectations.

4.3 IMPORTANCE OF THE CUSTOMER

 Customer satisfaction increased the companies business.

 It creates an emotional bond with a brand
 Customer satisfaction leads to higher profitability.
 It helps the future growth of the company substantially.

MARKET RESEARCH

Research the immediate competitive environment of the marketplace, including customers,

competitors, suppliers, distributors and retailers.

MARKETING RESEARCH

Includes all above plus:

 Companies and their strategies for product and markets.

 The wider environment within which the firm operates. (e.g. political, social, etc)

52
 5. MARKETING ACTIVITES

INTRODUCTION

Marketing needs a framework that begins and ends with the customer. Marketing tools by
themselves do not achieve marketing objectives. There is an intermediate step between
the deployment of marketing tools and the achievement of marketing objectives. A
marketing network consists of the company and its supporting stakeholders (customers,
suppliers, distributors, retailers, ad agencies, and others). The operating principle is
simple: build an effective network of relationships with key stakeholders, and profits will
follow.
A set of marketing tools the firm uses to pursue its marketing objectives are called
marketing mix. These tools can be classified into four groups which are called the four
Ps of marketing

MARKETING MIX

PRODUCT PLACE

TARGET MARKET

PRICE PROMOTION

53
However some academicians feel that the four Ps of marketing have become redundant
and needs to be replaced by the four as or the four Cs of marketing.

FOUR as FOUR Cs
Acceptability Customer value
Affordability Customer costs
Accessibility Customer convenience
Awareness Customer communication

Soft drink is a FMCG product which has a wide and scattered market. Thus in order to
succeed companies needs to breakdown their marketing activities into sub-parts to
effectively meet the customer needs.

The entire market in this case is divided into three parts viz.:-
 Route market
 Home market
 At work market

ROUTE MARKET
Outlets coming under this market cater to the needs of those customers who are engaged
in shopping, eating out in restraints, going to and from work, in amusement centers etc.
In simpler words this market is what we call the bazaar.

54
 HOME MARKET
Outlets coming under this market cater to the needs of those customers who buy soft
drinks predominantly for home consumption either by glass bottles or pet bottles. The
shops targeted under this category are those which are located inside residential complex
or are located nearer to the residential areas. These shops predominantly sales pet bottles.

AT WORK MARKET
Outlets coming under this market cater to the needs of those customers who are working
in offices, factories etc. i.e., the outlets targeted are the canteens mainly.
The soft drink being a FMCG has a wider and scattered market. Thus to enable
concentrated effort of marketing activities in different scattered market, for effectively
setting the entire market is broken into the following segments.
Route market” outlet in this market caters to these people who are engaged in shopping,
eating outgoing to and from work, in amusement centers etc.
Home market: outlets in this market cater to people buying predominantly for home
consumption, either by case or loose bottles.
At work market: outlets in this market cater to people working in offices, factories etc.
An attempt is also made to make drinks readily and convexity available all day long
while people are actively working.

55
 MARKETING MIX OF 7 PS:-

 These are the tools of marketing management employed by marketers. They are
areas where marketing managers need to make decision. These decisions affect
the nature of the offering or package of benefits that the organization offers to
customers.
 The tools are commonly known as the 4P’s or 7P’s.
 The term “mix” is used to explain the point that at any one time the marketer will
select a set of tools from the marketing toolbox or the marketing mix in specific
proportions to solve specific problems- in the same way one selectors spanners
and other tools for a specific job OR ingredients to bake particular type of cake.
 The Marketing Mix will be tailored to offer value to customer to communicate the
offer and to make it accessible and convenient.
 Adjust to the cultural constraints of the environment that can effectively achieve
corporate objective and goals.
 Which elements of the marketing mix can be standardized and where is
standardization not culturally possible?
 Which cultural/environmental adaptations are necessary for successful acceptance
of the marketing mix?
 Will adaptation costs allow profitable market entry?
 A logical sequence and a series of activities leading to the setting of marketing
objective and the formulation of plans for achieving them.

56
 MANAGING MARKETING MIX:-

 Involves the use of tolls and techniques:

 To find out what the customers want, for the matching process
o Marketing Research / Marketing information
 Develop products/ services to satisfy those wants
o Product Management
 Charge for the product/service
o Pricing
 Get the product/service into the customer hands giving a time and a place utility
given distribution and customer service
o Channel and Physical Distribution
 Tell the customer about the product/services. Communication
TACTICAL DECISION:-

 How we are going to get there;

 Covers the detail action to be taken, and by whom, during a short term planning
period, usually for one years or less;
 Relatively easy for one years or less;
 Allow combination of attractiveness

SOSTT and 4Ms structure for planning gives a useful checklist for ensuring that
elements of strategy and tactics are bought together effectively.

 Situation – current position of the firm in terms of its resources, product range,
and market.
 Objectives- What the company hopes to achieve n both the long and the short
term.
 Strategy- Decision about the correctness of the objective and their overall fit.
 Tactics- How the strategic objective will be achieved.
 Targets- Formalized objectives, target market and segments of the markets.
Decision about the appropriateness of these markets in the light of the firm’s
strategic objective.

57
 TACTICAL CONSIDERATION OF 4 M:-

 Men- Decision about human resources, having the right people to do the job.
 Money- Correct budgeting and allocation pf financial resources where they will
do the most to achieve the overall objective.
 Minutes- Time scales deadlines. And overall planning to ensure that everything
happens at the right time.
 Measurement- Monitoring and evaluation of activities to ensure that they remain
on course and works as they should.

COMBINING MIX:-

The marketing manager has to identify the needs of his or her target market through
marketing research and other investigative techniques. The manager must understand
customer’s characteristics and buying habits, for example, He/she then has to blend the
components of the mix to formulate strategic and tactics by which those needs can be
met. This is the essence of marketing identifying, anticipation, and satisfying customer
needs in the most profitable way possible: delivering profits to the value to customers at
the same time.

58
 MARKETING MIX OF PEPSI (THE 7 PS)

A. PRODUCT:-

Pepsi is a soft drink and which is prepared with the help of carbonate, sugar and water.
During the process manufacturing first it sterilized, then it is packed. But its other product
are preparing by some fruit and other carbonate mix water etc.

PACKING:-

The packet of Pepsi is different types like 200ml. to 2lt. it is only on Pepsi product and
other product are same but only Slice soft drinks is slightly different of the other produce.
It packaging size is like 250ml, 500ml, and 1.2lt sizes this types.

SERVICES:-

Any kind of damage, spoiled or expired are return back if necessary.

B. PROCE:-
Pepsi products are 6 types and its name is Pepsi, Marinda, Mountain Dew, Slice, 7 up and
Aquafina. All these product are different types of size and different packaging. If we will
see its price of product are same except only Slice and Aquafina.

LITRE:- 200m.l 250 m.l 300m.l cane ½ lt 600 1lt 1.2lt 1.5lt 2lt
Rs:- 7.00 9.00 9.00 20 20 20 12 45 43 50

C. PROMOTION:-

Promotion a key ingredient in marketing campaigns consists of a collection of

incentive tools, mostly short term, designed to stimulate quicker or greater
purchase of particular products or services by customers.

59
 Personal
Advertising
Selling

Sales Direct Public

Promotion Marketing Relation

Promotional activities play a key role in the entire marketing effort being carried out by
S.M.V. Beverages which are in sync with those of PepsiCo India. These promotional
activities generate more sales as well as create a good image of the product in the mind of
the customer.
The promotional tools used by SMV Beverages for its marketing activities are
 Point of sale display
 Incentives to retailers
 Sales promotion through sponsoring special events
 Sales promotion through various schemes
 Advertising

If we will say about the promotion is like that communication and it depends on the
advertisement, personal selling, public relation, direct marketing, and sales promotion.

1. Sales Promotion:-
Sales promotion is done by company by different schemes to the distributor, retailers and
customer.
For example: buy one case, get 2 or 3 PEPSI, some new prizes, etc

60
2 Advertisement:-
A very important part of advertising is to decide the medium of advertising and how
much to spend on each medium. The different mediums used by Pepsi are:
 TV
 Hoarding
 Newspaper/Magazines

Out of these Pepsi invests heavily in advertising through TV. Brand ambassadors of Pepsi
include film stars, cricketers and other sport persons. PepsiCo gives these brand
ambassadors hefty sums running into many crores to endorse their brands. Some of the
brand ambassadors of PepsiCo associated with the different brands are:
 Ranvir Kapoor – Pepsi
 M.S.Dhoni – Pepsi
 Kaitrina Kaif – Slice
 Asin – Mirinda
 Mallika Sherawat – 7up

However in the previous year it has been seen that hefty advertising budgets and costly
brand ambassadors have not been able to pep up the sales of the soft drinks. This has
been attributed to the increase in price and also because of consumer shift towards non-
carbonated beverages.
One thing has to be kept in the mind that nothing drives sales more than a good
advertising. But the present scenario tells us that in order to drive up sales, apart from
advertising other factors like distribution network, attractive and competitive pricing
policy, good service and goodwill plays a major role in the success of an advertisement.
Thus advertising has to be very carefully woven along with the others parts of the
marketing mix.

Thus advertising is a fascinating and important aspect of marketing. Advertising appeals

to all irrespective of age, caste, sex, borders etc. Words which can be associated with
advertising are fun, humor, warm, entertaining, persuasive, boring, and irritating.

61
Advertising in simpler words is communication and persuasive and leaves a mark in the
mind of the consumer. Thus it is natural to look to theories, concepts and research
findings from psychology to understand and mange the whole process. In all the phases
of the advertising process from objective setting through campaign creation and media
selection to the copy of campaign evaluation research provides the thrust.

Countering substitution Advertising reinforces the decision of the existing customers

and reduces the likelihood that they will switch over to the alternative brands.
However one thing has to be kept in mind that there is a very thin line separating
advertising from sales promotion. Earlier advertising was given more importance than
sale promotion as a tool to drive up sales. Promotion is now more accepted as an
effective sales tool. But there are disadvantages of letting advertising take too much of a
back seat to promotions, because advertising typically builds brand loyalty while sales
promotion helps in spurring up the sales in that particular period only.

62
 MAJOR INSTITUTIONS INVOLVED IN THE ADVERTISNG
PROCESS

CONTROL INSTITUTIONS FACILITATING INSTITUTUION

ADVERTISING AGENCIES
GOVERNMENT
ADVERTISER
MEDIA
COMPETITION

ADVERTISING AGENCIES

MARKET AND CONSUMER BEHAVIOR

63
 “THE FIVE Ms” OF ADVERTISING

MESSAGE

What message
should be sent?

MEASUR-
MISSIO MONEY EMENT
N
How should the
How much can be MEDIA results be
What are the spent?
evaluated?
advertising What media should
objectives? be used?

A very important part of advertising is to decode the medium of advertising and how
much to spend on each time.

For advertisement is takes help of print media, electric media, pop materials etc.
For example:-
The Pepsi product is different types and scheme offers is deferent types. The Pepsi, Pepsi
Gold advertisement is scheduled in different types; Company is providing its scheme
offer is different types. In the summer times (March to July) and the other one is August
to October.
1. There are more then 50 channels we have seen advertisement program of Pepsi and
other products of the soft drinks on the T.V and other areas. So that whichever
channels we are watching, Pepsi was always present.
2. It covers almost all channels and important programmers of these channels.
3. Posters, stickers, leaflets are given in different languages to make understand
different people.

64
1. PUBLIC RELATINS:-

In spite of all these things, Pepsi also launch special gift packages with corresponding
design introduced for the occasion both Pepsi and other products at many locations across
the country.

2. DIRECT MARKETING:-

Direct marketing is dome with the helps of sales personnel, who takes order from the
house and deliver the stocks.

3. SALES FORCE:-

Under each distribution, sales personnel are appointed who looks over the sales of Pepsi
and problems regarding the sales.

D. PLEACE:-

In India there are different types of franchise are having in the country. One is having in
the 8 m.v beverages Pvt. Ltd. Adityapur Jamshedpur Jharkhand. This franchise of Pepsi
co. is distributing in side of the Orissa, Jharkhand, Bihar in different areas.

E. PEOPLE:-

 The attitudes of staff

 Training of staff
 Internal relations
 The observable behavior of staff
 The level of service-mindedness in the organization
 The consistency of appearance of staff
 The accessibility of people
 Customer- customer contacts

65
F. PROCESS:-

 The manner in which the service is delivered

 Degree of customer contact
 Quality control standards
 Quality assurance
 Payment of method (degree of convenience)
 Queuing system for customers
 Waiting times

G. PHYSICAL:-

 The “environment” or atmosphere in which the service is delivered

 Buildings
 Furnishings/decor
 Layout
 Goods associated with the services e.g. carrier bags, tickets, brochures
 All the above can help shape customer’s perceptions of the service

66
ANALYSIS PART

67
 ANALYSIS PART OF THE MARKET RESEARCH

Male and Female

I have collected
150 samples
from customer
27%
and in my
sample male
male
female
are73% and
female are 27%.

AGE
73%
GROUP OF
THE

CUSTOMERS

70

60

50

40
66
30
46
20
27

10
7 4
0
15-25 26-35 36-45 46-55 56-65

In my above data we can know that mostly 26-35 age group people are drink more soft drink in
jamshedpur.

OCCUPTION OF THE CUSTOMER

68
 60

50

40

30
51
46

20 33

10 13
7

0
SERVICE BUSINESS STUDENT HOUSE WIFE OTHERS

In my survey found that customer are from different profession. Most of the customers are serviceman
and businessman. If we compare to that student with business people about the soft drink, so more
student are drinking soft drink.

CONSUME OF SOFT DRI

70

60

50

40
64
30
38
20 28
20
10

0
DAILY 2-3 TIMES A WEEK ONCE A WEEK ONCE A MONTH

In my survey ,I have taken 150 as sample data, most of the people are drinking soft drink2-3 times a
week.

CRITERIA OF SELECTING SOFT DRINKS

69
 PRIORITY

40

35

30

25
38 40
20 34
15

10 17
12
9
5

0
AVAILABILITY PROMOTIONAL BRAND QUALITY TASTE ANY OTHER

In my sample collected that most of the choose the soft drink on the basis of taste.

QUANTITY OF THE SOFT DRINK

40

35

30

25
40
20

15 28
25
23
20
10

5 9
5

0
200 M.L 250 M.L 300 M.L 500 M.L 1.2 LT 1.5 LT 2 LT
Above the figure we can know that most of the people are drinking more RGB then PET.
If we will see that most of the customer are drinking 300 ml bottle.

FROM WHICH PLACE CONSUMER BUY SOFT DRINK

70
 59

35
30
26

HOTEL GROCERY GEN. STORE PAN SHOP

In my survey I found that the most customer buy the soft drink from GEN. STORE .

BRAND IMAGE

80

70

60

50
78
40

30

20 30
24
18
10

0
VERY IMP. IMP. AVERGE NOT IMP
In my survey I found that brand image of any product is important according to the
people view.
TASTE

71
 Column1

70

60

50
Column1
40 69

30 47
20 31

10
3
0
Very poor Average Not important Very good

From my survey I know that maximum customer told that taste Pepsi is average.

CONVENIENCE

72
 70

60

50

40
66
55
30

20
20
10 9

0
VERY POOR AVERAGE NOT IMP. VERY GOOD
From my survey I know that maximum customer told that convenience of Pepsi is
average.

ADVERTISING
ADERVERTISING
70

60

50

40 ADERVERTISING
66
30

20
34
29
10 21

0
T.V News paper Magazine Poster/ Hoarding

From my 150 data I know that most customers are influence from the advertising through
television.

COMMERCIAL ADD OF PEPSI

73
 70
60
50
40 63
50
30 37
20
10
0

In my collection I found that most of the people are influence by the slogan it comes in
year 1996

ANALYSIS PART OF THE PEPSI PRODUCTS IN JAMSHEDPUR

MARKET

74
1.
TOTAL NO. OF OUTLET
20%

44%
SAKCHI
KASIDIH
KALIMATI ROAD
REFUGEE COLONY

23%

13%

I collected 100 samples from the four area of the Jamshedpur market. And I found that out of 100 PCI,
CCX, and mix outlet 28%, 22%, & 50% respectively. It means Jamshedpur market the mix outlet are
more than the PCI and CCX outlets.
.
Sales
9% 26%

28% PEPSI
MIRINDA
7 UP
SLICE
MOUNTAIN DEW

14% 23%

In the pepsi product they are 5 product in which Slice is the most selling product.

75
 Sales

THUMPS UP
SPRITE
MAZZA
FANTA
LIMCA
COCA-COLA

In the CCX product line they are six products in which thumps up is the most selling product.

RANKING OF THE SOFT DRINK

76
 5000
4500
4000
3500
3000
2500 4973
4333
2000
3185
1500
2250 2235 2304
1000 1851
1563
500 448
436 357
0

In the PCI & CCX products they are in which thumps up is the selling product and coca-cola is the
least selling product.

77
 RGB IN PER DAY SALES

40%

PEPSI
COKE

60%

From the above figure I got that in the jameshedpur market total selling of RGB regular
glass bottle CCX is 60% & PCI is 40%.

PET PER DAY SALES

38%

PEPSI
COKE

62%

From the above figure I got tat in the Jamshedpur market selling of RBG of CCX is
greater than PCI on daily basis

78
 SUPPLY OF THE PRODUCT

44%

PEPSI
COKE
56%

In my survey I found that CCX supply is much better than PCI.

REASON FOR CHOOSING STOCK

7% 1%
23%
CONSUMER DEMAND MORE
LARGER LIFE PERIOD
CREDIT FACILITY AVAILABLE
DISCOUNT/SCHEMES
HIGH MARGIN
ADVERTISEMENT

3% 64%
3%

79
 RETAILER PREFERENCE IN THE JSR MARKET

38%

COKE
PEPSI

62%

In my survey I got the result that retailer are prefer to CCX.

SALES VOLUME OF CANE

350

300

250

200
PEPSI
150 COKE

100

50

0
WARM COLD PER DAY SALE
From the above I got that warm, cold stock and also per day sale of cane of CCX is more
than PCI.

80
 SALES TAKES PLACE AS PER THE RATIO

20%

CONSUMER ASK FOR A

PARTICULAR BRAND
YOU GIVE A BRAND OF YOUR
OWN CHOICE

80%

From my sample I found that the ratio of cosumer ask particular brand is more than
retailer give a brand of his/her own choice. The ratio is 8:2

SCHEMES PROVIDE BY COMPANY

35%

44%
PEPSI
COKE
NO SCHEMES

21%

In my survey I found that the maximum retailer are not getting scheme. PCI provide 35%
scheme while CCX provide only 21%.

81
 TIE UP

43%

PEPSI
COKE

57%

From the above figure I found that more retailer are tie up with CCX.
16

14

12

10
PEPSI
8 COKE
ICE BOX
6 OWN

0
SAKCHI KASIDIH KALIMATI ROAD REFUGEE COLONY

82
 DISPLAY/RACK
24%

40%

PEPSI
COKE
OWN

36%

Above the figure I know that maximum number of retailer are using own rack in
Jamshedpur.

83
Findings
 Coca Cola is market leader and Pepsi is the market challenger in the whole
Jamsedhpur market.
 From the coca cola product thumps up and pepsi products slice is the highest
selling product in the Jamsedhpur market.
 Coca cola is the market leader in overall Jamsedhpur market but in Sakchi
and Kasidih the selling of Pepsi is more than Coke.
 In the case of refugee colony market and Kalimati road market the selling of
Pet bottle is more than RGB.
 In Sakchi market, Kasidih, Kalimati road and refugee colony market supply of
Pepsi is not better than Coke.
 In the case of mineral water under brand name Aquafina, is selling more
than Kinley.
 I have found that the retailers are giving more preference to the Coca Cola
products.
 In the case of scheme Pepsi is providing better schemes than Coca Cola.

84
SUGESSTION:

We give the following suggestion that can be implemented to increase the

customer satisfaction and the profitability of the company.
 Supply distribution should improve during summer.

 The sales should be trained and to be courteous with the retailer.

 It should depend the partnership arrangement with suppliers and

distributors and make them feel as a part of the company.

 Pepsi fridge and racks should be make easily available for the retailers so

that they survey the purpose of visibility as they say – “JO DIKHEGA

WOHI BIKEGA”.

 More emphasis should be given in retaining and building loyalty among

retailers while at the same time new retailers should be encouraged to sell

Pepsi.

 Another brand of Cola flavour should be introduced and it should have

strong taste and more fizz so as to attract the customers who like Thumps

up more than Pepsi.

 Supply should be in time.

 Merchandising facility should be fulfill like board.

 The company should concentrate on the brand awareness of its product.

85
 LIMITATION

1:-Some of the retailer were not ready to be interviewed due to lack of

time and some are not interested in getting interviewed in fear of

disclosing their privacy.

2:-Sometimes retailer were not able to recall the fact which were asked the

question.

3:-Scorching heat in the Jamshedpur city came as a barrier while doing the

project.

4:-Often retailers are reluctant to provide information related to my

project.

86
 CONCLUSION

Everything in this world is made to utilize properly but should be reach at the proper

person or to the proper utilize areas. Otherwise the value added to those things become in

vein. As there is a proverb that ,“Far from Eye ,far from Heart”.

Thus marketing role play a very important role in achieving the objectives of a company.

Undoubtly , value utility is created by the manufacture of product or service but time and

place utilities are created by marketing role. According to Drucker, “ both the market and

the distribution channels are often more crucial than the product”. They are primary and

the product is secondary. In an economy like that of India, where marginal shortages can

lead to disproportation distortion in prices, a dependable and efficient distribution system

is very much essential. The distribution system creates a value added to all most all

products.

All from the above study not withstanding its restructuring efforts, Pepsi steel had some

distance to cover to catch up with Coke.

87
BIBLIOGRAPHY

 www.Pepsizone.com
 www.Pepsiindia.com
 Philipcotler
 Magazine

88
QUESTIONNAIRE FOR RETAILERS:-

Name of the shop :-

Address of the shop :-

Contact No. of the shop:-

Which Type of outlets?

(a) General store (b) Grocery

(c) Betel shop (d) Eatery

Q1 How much of the business you do, from PEPSI?

a) 0-10%....................... 
b) 11-25%..................... 
c) 26-50%..................... 
d) 51-75%..................... 
e) 76-90%..................... 
f) 91-100%................... 

Q2 How frequently do you buy PEPSI?

a) Daily………………. 
b) Alternate day’s......... 
c) 2-3 times a week....... 
d) Once a week............. 
e) Less frequently......... 

Q3 Which is your favourite C.S.D.?

a) PEPSI....................... 
b) 7UP........................... 
c) MIRINDA (O).......... 
d) DEW......................... 
e) SLICE....................... 
f) NIMBOOZ………. 
g) Other (PLEASE WRITE IN)_______

Q4 How many of each of the following brands of C.S.D. do you own?

PEPSI.............................. ____
7UP................................. ____
MERINDA (O)............... ____
DEW............................... ____
SLICE............................. ____

89
Q5 How satisfied are you with the VISI COOLER of PEPSI?
a) Very satisfied.............. 
b) Quite satisfied............. 
c) Neither satisfied nor dissatisfied.. 
d) Quite dissatisfied........ 
e) Very dissatisfied......... 

Q6 How satisfied are you with the CREDIT FACILITIES of PEPSI?

a) Very satisfied............ 
b) Quite satisfied........... 
c) Neither satisfied nor dissatisfied.. 
d) Quite dissatisfied...... 
e) Very dissatisfied....... 

Q7 How satisfied are you with the SCHEMES of PEPSI?

a) Very satisfied............ 
b) Quite satisfied........... 
c) Neither satisfied nor dissatisfied.. 
d) Quite dissatisfied...... 
e) Very dissatisfied....... 

Q8 How satisfied are you with the DASH BOARD of PEPSI?

a) Very satisfied............ 
b) Quite satisfied........... 
c) Neither satisfied nor dissatisfied.. 
d) Quite dissatisfied...... 
e) Very dissatisfied....... 

Q9 How satisfied is you with the GLOW SIGN BOARD of PEPSI?

a) Very satisfied............ 
b) Quite satisfied........... 
c) Neither satisfied nor dissatisfied… 
d) Quite dissatisfied...... 
e) Very dissatisfied....... 

Q.10 How would you rate COKE compared to PEPSI on VISI COOLER?
a) COKE is a lot better…….. 
b) COKE is a little better…… 
c) They are about the same… 
d) PEPSI is a little better…. 
e) PEPSI is a lot better….. 

Q11 How would you rate COKE compared to PEPSI on CREDIT FACILITIES?
a) COKE is a lot better……. 
b) COKE is a little better….. 
c) They are about the same…. 
d) PEPSI is a little better……. 
e) PEPSI is a lot better….. 

90
Q12 How would you rate COKE compared to PEPSI on SCHEMES?
a) COKE is a lot better…. 
b) COKE is a little better… 
c) They are about the same... 
d) PEPSI is a little better…. 
e) PEPSI is a lot better…. 

Q13. How would you rate COKE compared to PEPSI on DASH BOARD?
a) COKE is a lot better…… 
b) COKE is a little better… 
c) They are about the same.. 
d) PEPSI is a little better….. 
e) PEPSI is a lot better…. 

Q14. How would you rate COKE compared to PEPSI on GLOW SIGN BOARD?
a) COKE is a lot better…….. 
b) COKE is a little better…. 
c) They are about the same… 
d) PEPSI is a little better…… 
e) PEPSI is a lot better…… 

Q15. Do you think that aggressive advertising further increase the sales volume of
Pepsi?
a) Yes b) No

Q16. Which advertising media do you think affects the sales most?
a) Television…… 
b) Display……… 
c) Magazines/Newspapers…… 
d) Wall paintings/Hoardings… 

91
Q17. What kind of promotional activities affect sale mostly?
a) Free bottle scheme ……. 
b) Discount Crates……….. 
c) Prize…………………… 
d ) Other…………………... 

Q18. Product Quality

a) More than 1 in 10 products received have faults…. 
b) 1 in 50 products received have faults…… 
c) 1 in 100 products received have faults….. 
d) 1 in 1000 products received have faults….. 
e) Never receive faulty products……. 

Q19. Delivery on Promises?

a) Deliver on 5 out of 10 of promises made or less…… 
b) Deliver on 7 out of 10 promises made...... 
c) Deliver on 8 out of 10 promises made…. 
d) Deliver on 9 out of 10 promises made…. 
e) Always deliver on promises…………….. 

Q20. Do any Support material provided by PEPSI?

a) Provide no support materials or assistance…. 
b) Provide a few low quality support materials and assistance…
c) Provide good quality support materials to help my business.. 

Any Recommendation for the Pepsi Company.

______________________________________________________________________________
_______

______________________________________________________________________________
_______

92
QUESTIONNAIRE FOR DISTRIBUTION CHANNEL:-
Date:-

Name of the shop :-

Address of the shop :-

Contact No. of the shop:-

Q.1 Are you happy with the distribution of PEPSI?

a) Yes b) No

Q.2 The PEPSI route vehicle comes to you first or COKE comes first?

a) Pepsi c) Coke

Q.3 Do you get every S.K.U.s pack wise on demand?

b) Yes b) No

Q.4 How many calls you want per day/week?

a)More than 5 b) Less than 5

Q.5 Do you get the product on emergency phone call?

a) Yes b) No

Q.6 Are they offer you company schemes properly or not?

a) Yes b) No

93
Q.7 what is your opinion about our present distributor?

a) very satisfied
b) quite satisfied
c) neither satisfied nor dissatisfied
d) quite dissatisfied
e) very dissatisfied

Q.8 what are your suggestions to improve the distribution:-

 The distributor

 The salesman

 The company

94
95