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INTRODUCTION TO THE STUDY

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Decades of sixties were for Engineers, seventies for Doctors, eighties for CA¶s
and the present is for MBA¶s.

cThe world economy has undergone a radial transformation in the last two
decades Geographical and cultural distance have shrunk significantly with the
improvements in the production, transportation and communication. These
advances have permitted companies to widen substantially both these markets
and their supplier sources. And thus the role of marketing becomes wide.

Marketing deals with identifying and meeting human and social needs. One of
the shortest definitions of marketing is ³meeting needs profitably.´ Marketing is
tricky, however, and it has been the Achilles¶ heel of many formerly prosperous
companies. But making the right decisions is not always easy. Good marketing
is no accident, but a result of careful planning and execution.

The soft drink industry is no exception and is one of the most intensely fought
industry with the two major competitors PepsiCo and Coca-cola. This industry
can be characterized by words like price wars, effective distribution strategies,
market share, sales promotion strategies etc. My field of study will delve upon
the following aspects viz.

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A number of variables come into play when we consider the sale of C.S.D.
products. The basic reason for this is seasonal affect on purchasing the

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product, slowly resulting in the consumer loyalty and the relationship between
dealers, distributors and the company

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The Pepsi-Cola story itself begins with a drugstore in New Bern, North
Carolina, and a pharmacist named   G 
Bradham's aim was to create a fountain drink that was both
delicious and healthful in aiding digestion and boosting
energy. It would be free of the impurities found in many
bottled health tonics, and it would contain none of the
stronger narcotics often added to popular fountain drinks.

As most pharmacies in 1896,

Bradham's drugstore housed soda
fountain where the small-town clientele
would meet to socialize. Bradham's establishment
even featured a kind of primitive jukebox, which for a
nickel would entertain the listener with the latest
musical selections rendered by violin or piano or both It
was at such convivial gatherings that Bradham would
offer his latest concoction. Over time, one of his recipes became known as
Brad's Drink. A member of the press declared, "It has sparkle and just
enough acidity to make it pleasant." Soon its popularity would exceed the
boundaries of New Bern The cellar of Bradham's drugstore served as the
original site of Pepsi-Cola syrup manufacturing. Electing to start his new
business on a small, manageable scale, Bradham based his operation on
familiar territory. Ingredients were hauled downstairs to cramped quarters
where they were mixed together and then cooked in a large kettle. The syrup
was subsequently poured into one-gallon jugs and five-gallon kegs to be
shipped to customers. By 1902, the demand from surrounding drugstores
increased so dramatically it dawned on Bradham that Pepsi-Cola was

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something special. On December 24, 1902, he filed incorporation papers

with the state of North Carolina; in these, he indicated his plans for corporate
branches in Virginia, Maryland, Pennsylvania, and New York. PepsiCo, Inc.
is currently one of the most successful consumer products company in the
world with annual revenues exceeding $30 billion and has more than
480,000 employees. PepsiCo, Inc. began as a successor to a company
incorporated in 1931, known as Loft Inc. Once known as PepsiCo Cola, the
company expanded its business and adopted its current name, PepsiCo,
after a merger with Frito-Lay in 1965. This merger dramatically increased
PepsiCo's market potential and set the foundation for the company's
tremendous growth. PepsiCo¶s products are recognized and are most

respected all around the globe. Currently, PepsiCo divisions operate in

three major US and international businesses: beverages, snack foods,
and restaurants. In each of these businesses, PepsiCo has attained a
leadership position as being the world leader in soft drink bottling, the
world largest snack chip producer, and the world largest franchised and
company operated restaurant system. The corporations increasing
success has been based on high standards of performance, marketing
strategies, competitiveness, determination, commitment, and the
personal and professionalintegrity of their people, products and business
practices.

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PepsiCo World Headquarters is located in Purchase, New York,

approximately 45 minutes from New York City. The seven-building
headquarters complex was designed by Edward Durrell Stone, one of
America's foremost architects. The building occupies 10 acres of a 144-acre
complex that includes the Donald M. Kendall Sculpture Gardens, a world-
acclaimed sculpture collection in a garden setting. The collection of works is
focused on major twentieth century art, and features works by masters such
as Auguste Rodin, Henri Laurens, Henry Moore, Alexander Calder, Alberto
Giacometti, Arnaldo Pomodoro and Claes Oldenberg. The gardens originally
were designed by the world famous garden planner, Russell Page, and have

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been extended by François Goffinet. The grounds are open to the public, and
a visitor's booth is in operation during the spring and summer.1990 saw the
coming of the multinational company PEPSI entering the Indian market. 11
years after the exit of Coca Cola. It had name, fame and edge of being one of
the best in the game and it also offered stiff competition to Parle and Coke.
Pepsi Cola Company founded by CALEB BRADHAM in 1890 at North
Carolina in USA. Now it is ranked 86th (1998) in the world with the asset of
around $25000 million, having its head quarter at ATLANTA. Its CEO is
ROGER ENRICO and Pepsi co. India holding chairman is MR. RAJIV BAKSI.
Pepsi Co. India¶s HQ is at Gurgaon. Presently is operating in 196 countries. In
India it has 34 Bottling Plant of them 8 are COBO and 26 are FOBO of which
one in Tripty drinks Pvt. Ltd.

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At PepsiCo, we're committed to achieving business and financial success while

leaving a positive imprint on

society ± delivering what we call 
  

.Our approach to
superior financial performance is

straightforward ± drive shareholder value. By addressing social and

environmental issues, we also deliver on our

purpose agenda, which consists of human, environmental, and talent

sustainability.

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PEPSICO SLOGAN IN 2010 --

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Pepsi works on ´à 0Y!formula:

SPECIFIC- Helps the sales force understand exactly what is expected out

of them.

MEASUREABLE- ensure that management can track individuals & team

performance.

ACHIEVABLE- increase the level of challenges & motivation within the sales

force.

RELEVANT- translates the company¶s initiatives into market place execution.

TIME BOUND- avoids dragging and ensure meeting deadlines.

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1898c Brad's Drinkc

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Exhilarating, Invigorating, Aids

1903c
Digestionc
c

1906c Original Pure Food Drinkc

1908c Delicious and Healthfulc
1915c For All Thirsts - Pepsi:Colac
Pepsi:Cola - It makes you
c

1919c
Scintillatec
Drink Pepsi:Cola - It Will
1920c
Satisfy Youc
1928c Peps You Up!c
1929c Here's Health!c
c

1932c Sparkling, Deliciousc

1933c It's the Best Cola Drinkc
Double Size
1934c
Refreshing and Healthfulc
c
1938c Join the Swing to Pepsic
1939c Twice as Much for a Nickelc
1943c Bigger Drink, Better Tastec
1947c It's a Great American Customc
cc Why Take Less When Pepsi's
1949c
Best?c

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1950c More Bounce to the Ouncec
The Light Refreshment
1954c
Refreshing Without Fillingc
cc 1958c Be Sociable, Have a Pepsic
Now It's Pepsi for Those Who
c 1961c
Think Youngc
Come Alive! You're in the Pepsi
1963c
Generationc
Taste that Beats the Others
1967c
Cold, Pepsi Pours It On.c
You've Got a Lot to Live,
ccc 1969c
Pepsi's Got a Lot to Givec
Join the Pepsi People Feelin'
1973c
Freec
1976c Have a Pepsi Day!c
Catch That Pepsi Spirit
1979c
c
Take the Pepsi Challengec
1981c Pepsi's Got Your Taste for Lifec
1983c Pepsi Now!c
The Choice of a New
1984c
Generationc
1987c America's Choicec
c

1989c A Generation Aheadc

1992c Gotta Have Itc
1993c Be Young, Have Fun, Drink Pepsic
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1995c Nothing Else is a Pepsic

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1997c Generation Nextc
1998c Same Great Tastec
1999c The Joy of Colac
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2000c The Joy of Pepsic

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2003c Pepsi. It's the Colac

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11
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SOFT DRINK INDUSTRIES IN INDIAc

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A soft drink is a non-alcoholic beverage. It is artificially flavored and

contains no fruit or pulp. India with population of more than 100 crores is
potentially one of the largest consumer markets in the world after China.
The consumer market can be defined as the market for products and
services that are purchased by individuals as house holds goods for their
personal consumption. Soft drink is a typical consumer product
purchased by individuals to quench thirst and secondly for refreshment.
Searching for the point of Indian soft drinks we first document on Gold
Spot, this was the first brand soft drink in India. It was introduced by
PARLE during later part of 40¶s.

Cola giant, Coca-Cola was the first foreign soft drink to be introduced in India
in 1965, Coca-Cola make a very good beginning and dominated the whole
scheme right from the word go. It (Coca-Cola) faced no competition at that
time. COCA COLA entered India in the year 1993 in collaboration with PARLE
INDIA LTD.

The marketing people did not even receive to publicize Coca-Cola for it
sold first like probability not-cakes. This extraordinary success of soft
drinks can be attributed to the following factors:-

È Absence of contemporary competitive brand.

È Euphoric image built up in the Western countries proceeded
the entry into Indian Market; and
È Indians are very found by nature of foreign goods, services
etc. due to prolonged foreign rules.
Parle Exports (P) Ltd, later in 1970 introduced Limca, Lemony Soft
drinks. Before Limca introduce, they had tentatively introduced Cola,
Pepino, which they had to soon withdraw in the face of battering
confrontation with Coca-Cola.

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Three of four groups of Indians companies who had the required

production capacity started their own brands of Cola, Lemon, Orange,
but failed to achieve their goal on a national basis. India always has love
and hate relationship with MNC¶s which gave a significant opportunities
to soft drink industries in India when Coca-Cola decided to windup its
operation in 1977 rather than bowing to the Indian government insisting
on:-

È Dilution of equity, as the government felt that lots of foreign

currency was being wasted.
È Manufacturing of the top-secret concentration in India.
È Disclose of the chemical composition of the essence.
This left a large vacuum in the popular soft drink market, and a vista was
opened to any company with the requisite, technical, marketing and
organizational skills.

The exit of Coca-Cola from India in 1977 accelerated the growth of

several Indian Soft Drink. New soft drink in the form of Tetra pack
entered the market among Frooti, Jump-In and Treetop were the
prominent once. Till 1977 their equipped bottling plants and the
distribution network a longing to be of no use. It took them one year to
develop new formula to survive and gradually came up with Campa,
Lemon, Orange and Cola that order.

However Parle, the pioneer in the soft drinks, blazed its way to national
prominence with their product ~!    '  
 
~"   0  "   0' This particular slogan helped to win
over the loyalists or addicts to Coca-Cola, who was in the state of ~
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at a phenomenal rate, and all Parle Products Gold Spot, Limca and
Thumps Up became the brand leader in their own segment.

In spite of all these, the drink market still has large gap, as claim by soft
drink manufacturers. To fill these gaps there are many soft drinks
concentrate and squashes flooded the market. The Indian soft markets
basically offered three flavours i.e. Orange, Lemon and Cola.

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Pepsi ± the Indian experience

Previously there were two ads. Tags´#  -
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ring a Bell ± it¶s to be a Pepsi. But today this ad. Tag has been changed
and now it¶s ³#
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´.

Pepsi is a short span of its operations in India has found a place in hearts
and minds of the Indian Consumers. The success has primarily been due
to the innovate and passionate Indian team which has been built over the
years. Pepsi is a trendsetter managed and run by Indians, where
important decisions are taken locally.

Pepsi started its operations in India in 1989 and since Pepsi Co. has set
up a fully integrated operation India viz. manufacturing, research and
development, marketing, distribution and franchising covering
fruit/vegetable processing, export, snack foods and beverages. In 1993
Pepsi Co. set up a hold company to further accelerate growth the future
through new initiatives and joint ventures. Pepsi Co. fully committed to
India and the national objective of development of technology and
accelerating exports and employment. It has brought in over $500 million
in foreign exchange as well as technology, which is used for its global
network by way of royalty, know how of dividends.

Pepsi Co. has a turnover $25 billion, half of which comes from beverages
and the other half from the snacks foods divisions. The beverages arm of
the Pepsi Co. is Pepsi Cola Company and the snacks foods company is
called Frito ± Lay Inc. The year 1998 is the centennial year of Pepsi.

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Pepsi has set up a concentrate plant in 1989 at Channo, District

Sangpur, Punjab, with an investment of $ 5 million the state of the art
Plant houses a world ± class laboratory where soft drinks from all over
the world are tested. This concentrate plant supplies Pepsi, 7Up, Team,
Miranda, Orange, Apple & Lemon flavors to all the Pepsi Bottling plant in
South Asia.

Pepsi has 40 Bottling plant in India, out of which 16 are company owned
and 24 are owned by Indian franchisees, Pepsi Co. has invested heavily
on up gradation of these bottling plants and has put 5 green fields
projects in backward areas such as Jainpur and Bazpur in U.P. Bharuch
in Gujarat, Sonarpur in West Bengal and Naclamangala in Karnataka.

New project are coming up in Maharastra and Tamilnadu. In addition to

the Company¶s own Bottling Operations (COBO), Pepsi has 24
Franchisee Owned Bottling Units in India. These franchisee
manufacturers are also planning to install substantial additional
capacities. In last two years Pepsi Co.¶s franchisees have put new
bottling plant at Jaipur, Bhopal, Hajipur (Bihar), Guntur (A.P) and
Gawahati (Assam) with further investments. Pepsi Co.¶s franchisees are
amongst the best in the Pepsi world and the 1998 two Indian
Franchisees were chosen for being the Bottler of the Year amongst all
International Bottlers.

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Pepsi Co. plans to launch juices in a bog way in India, there by helping
the farmers in fruit procurement. Pepsi Co. Agriculture Scientists has
undertaken research on Mango, Guava and Oranges and these fruits
would be the priority area for the juice launch in India. Presently Pepsi
has one juice brands Slice, which are presently mango juice brands.
Pepsi Co. also has bottling lines in most of the plants.


16
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Pepsi today is one of the main sponsor¶s related activities in India and
has counted to promote upcoming new players Cricket, Hockey and
Football. In Mohali, Pepsi has developed a Pepsi Cricket Academy,
which would develop over 500 Young Cricket enthusiasts in next five
years. Similarly Pepsi cricket coaching camps and clinics are held to
coach young boys in North & South.


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Most of the bottling plants are located in backward areas, thereby giving
huge employment opportunities in these areas. Pepsi as a responsible
company undertakes social projects in and around the bottling plants.
These include supports to the education centers, sponsors, inoculation
camps, providing free health checkup, initiating sanitation, drives,
promoting literacy drives and helping village to put up bus shelter etc.

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It is estimated that Pepsi Co. and its franchisees generates over Rs. 500
Crores (in 1997) to the exchequer by the collection of excise duty and
sales tax.

Real Cosumers
According to per day selling report of the Pepsi product we can easily
search the real consumers of the company. It is a FMCG product so
general people to high-class people drink it. As temperature of the
environment is grow its selling is automatically increase. We can see that
Pepsi Product is present everywhere because of its good distribution
channel. In every Pan shop to a good restaurant we can easily get the
chilled Pepsi Product. Pepsi Product has launched its different flavors to
attract the consumers. Company knows that what people want to drink.

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INTRODUCTION OF SOFT DRINK IN

JAMSHEDPURc
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Later 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 tensions forced him to march to Jamshedpur
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. Sunder
Gurudev is carrying out the legacy, which his father had left behind. This
plan operates only 3 months (summer). Even today Jamshedpur
remembers the great exponent THANDAWALA.

The credit of establishing Jamshedpur in the soft drink map goes to late
Dharamchand Narbheram 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.

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S.M.V. Beverages Ltd. Adityapur, Jamshedpur a medium sector

enterprise located amidst beautiful surrounding on the Tata-Kandra road
in the Adityapur industrial area and producing Pepsi range of bottled soft
drinks viz. Pepsi, 7up, Mirinda and Slice and had now become a
household name in Jharkhand today symbolizes achievement and
advancement over the years. Today, it symbolizes self-reliance in quality
and technology, productivity and industrial relations since its inception
more than 25 years ago.

S.C.B.L. was established in 1967 and production commenced in March

1969. At the very outset the company installed state of the art machines
and technology, for the production and bottling of soft drinks. The bottling
plant with a capacity to produce 220 bottles per minute is totally
automatic and also has a modern state of the art inter mix machine for

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bringing forth the right blend of flavors. The company continues to adapt
innovative technology in keeping with its policy of constant quality
improvements. With the advent of Pepsi cola internationals in India, the
company entered into an agreement with Pepsi foods ltd. for the
production and sales of Pepsi range of soft drinks in Jharkhand and
Bihar.

The company which has a manpower of 110 ranked as the best bottling
company in the country in terms of quality, efficiency, sales, productivity
and HRD. Under the guidance of its chairperson Smt. Kusum Kamani
and the able stewardship of its Managing Director Sri. Nakul Kamani, the
company has consistently backed on numerous occasions awards for
quality assurance and productivity.

In 1993, it bagged top honors for being the best quality conscious plant
among all Pepsi bottling companies in India.

The company¶s highly sophisticated plant and quality control laboratory

along with the dedication and enterprises of its employees is more than
evenly matched by the management¶s sense of understanding and
compassion that had ensured the company¶s progress with every
passing day.

S.C.B.L.was taken over by Mr. S.K. Jaipuria in March 1999 from Mr.
Nakul Kamani along with Rishabh Marketing (P) Ltd., the marketing unit.

Mr. S.K. Jaipuria is very much enthusiastic and enterprising businessman. He

has a number of bottling plants all over India, like Orissa, Bhopal, Nagpur,
Hyderabad, Dharward etc. In 2002 he setup another bottling plant in the name
of SMV Beverages (Jamshedpur), a unit of SMV Agencies (P) ltd. It has a
capacity of 600 BPM which is catering to the whole of Jharkhand. It is also a
franchisee of Pepsi.



1
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First plant to achieve 100% result on Pepsi norm (Japan) and got an
Award.
Ist plant to pack large packs---500ML.
Commissioning of Kamani Foods- 1988
Started Operating for Bottling Pepsi Products as a Franchise Operation
(FOBO) Under Kusum Kamani-1990
First Plant to Achieve 100% Result on Pepsi Norm and got an Award-
1991
Excellence in Quality award-1992
IQA Bronze Cash Award -1993
IQA Bronze Cash Award -1994
In 2001 received IQA Gold status.
In 2002 received IQA Bronze Award
In 2003 new pet Plant capacity of 60 BPM commissioned.
In 2004 received IQA silver Award.
Achieve µBest Plant Team¶ in 2004

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STRUCTURE OF THE ORGANIZATION

For the every concern a structure is necessary on which the complete
organization should be founded. The existence of a structure as obvious
in every organization whether planed/unplanned or ill planed. To have a
structure is not a choice of the organizer. The choice is only of the form
and pattern of the organization. Planed organization structure may be
proved logical clear- cut and streamlined in order to meet the present
requirement.

Otherwise it will merely be a makeshift arrangement and the

management is rendered difficult and ineffective because organizational
structure affects everyone in the organization. A good organizational
structure facilitates management¶s management and the operation of
enterprise and it encourages growth. It helps organization to reach its
common goal. In order to make the organizational structure more
effective one structure that can meet the demand of various factors
namely environment, technology, size and people.

S.M.V. Beverages was taken over by  à)  in March1999

from  along with Rushab Marketing Limited, a marketing
unit. M/s S.K.Jaipuria running this plant very successfully.

He is very much enthusiastic to increase the production and sales and

to capture the Whole marker of South Bihar, now Jharkhand State. He
established another plant in the name SMV Beverages, Jamshedpur and
increased production from this new plant is 600 bottles per minute.

S.M.V. Beverages Jamshedpur has a management boars headed by

à) . He holds the top position but the overall policies
regarding managerial decision and all the executive function are
performed and look after by the Director ëà .He has been
given the power and authority to manage the company affairs. Therefore,
Mr. P. S. Kumar can be recognized as the Chief Executive. The Director
look after all the functional department like production, sales, accounts,
personnel, purchase etc. Every departments sends report directly to the

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director and are responsible to him in sense of working . Inspite of this all
department are in direct control of the director. Plant superintendent is the
head of the production department. He look after production, that is
bottling process, inspection, storage of new materials and though there is
a quality control manager. The controller of accounts heads the accounts
department.

Manager (Personal & Administration) looks after the function of

administration, industrial relation, legal jogs security, welfare etc. The
purchase officer In charge of all purchase activities of concern.

S.M.V. Beverages, Jamshedpur is proud of winning 

 1, 234


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S.M.V. Beverages also setup a PET bottle plant in March 2003. it has a
capacity of bottling 40 PET bottles per minute. It is bottling 500ml, 1.5 lt.,
2 lt. PET bottles of different flavors namely Pepsi, Mirinda, 7up, Mountain
dew,Slice. At present SMV Beverages (Jamshedpur) (a unit of SMV
Agencies (P) Ltd.) has following Sister concerns.

u Steel City Beverages Pvt. Ltd

u Hyderabad Marketing Company

Earlier it had M/s Kamani Food which was only bottling SLICE and in
2004. M/s Kamani Food was merged with SCBPL now SCBPL is
producing SLICE along with other brands of PEPSI. It is mainly bottling
300ml and 250ml,1.2 lr (Slice)

  
 

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Refers to the ability to develop creative, premium products
through specialized new technologies.
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Refers to the ability to achieve the "PEPSI brand is No. 1" goal
backed by its formidable market presence worldwide.

--
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Refers to talented people who perform excellently by internalizing
and practicing innovations.

 

 

Though a company implements perfect management strategies

and boasts of outstanding and talented people, it should have an
appropriate corporate culture to unleash the power of these
capabilities.

+ +   W e foster a corporate culture whereby we

suggest an alternative before saying "no" and aggressively work
towards fulfilling our goal.

+, +
+%+W e pursue a corporate culture whereby we embrace a

strong teamwork.

‰
&(W e create a workplace where individuals' creativity

and freedom are respected and working is made fun.

‰**,% 0Y#!"# 0)Y à%#Y0!% à

u Clear lines of authority

u Adequate delegation of authority
u Minimum managerial level
u Unity of directors
u Application of ultimate responsibility
u Span of control
u Simplicity
u Flexibility
u Proper emphasis on shift activities
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ORGANIZATION CHART OF SMV.BEVERAGES

JAMSHEDPUR
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ORGANIZATION CHART OF HYDERABAD

MARKETING COMPANY
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VISION
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We will establish our selves as a supplier of choice by delighting our

customers with our service and our products. In the coming decade, we
will become the most cost competitive Beverages Plant and so serve the
community and the nation.

MISSION
S.M.V. Beverages Pvt. Ltd. derive their mission statements from a
particular set of tasks. They are called upon to perform in the light of their
individual, national or global priorities.

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PHILOSOPHY
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The Philosophy of S.M.V. Beverages Pvt. Ltd. Establishes the value,

believes & guidelines for the manner in which the S.M.V. Beverages Pvt.
Ltd. Is going to conduct its business. Usually the officers of the S.M.V.
Beverages Pvt. Ltd. Lay down the corporate Philosophy, which an
organization follows in its strategic and operational activities. Such a
Philosophy may not be consciously and formally stated but may gradually
evolve due to the officer¶s actions.

Generally an officer has a perception of the type of organization that he

wants his company to be the executive committees of S.M.V. Beverages
Pvt. Ltd. Discuss and decide on a corporate philosophy to be followed for
strategic management. Consultants may also be called upon to make an
in depth analysis of the organization to suggest an appropriate
Philosophy statement.

GOAL SETTING
Goals denote what an organization hopes to accomplish in a future
period of time. They represent a future state or an outcome of the effort
put in now. A broad category of financial and non-financial issues is
addressed by the goals that a firm sets for it. P.S. Kumar, Director of
S.M.V. Beverages Pvt. Ltd. expressed the purpose of his organization as

-^
 c

³our goal is to be the most competitive and progressive institution in our

(i.e., Beverages) industry.´ The company stated goals were ³growth,
innovativeness, high profits as a barometer of efficiency highly involved
employees distinctively charged with pride«´

! à rG   ë
*
&

 Growth had been achieved in terms of customers & average business

per employee, Good product quality & service.
 Innovativeness was reflected in a number of new schemes.
 A high Profit between its competitors and become industry leader.
 Employee involvement had been sought through the delegation of
authority and devolution of power to grassroots levels through a
change in administrative structure and the creation of circle.

-ü
 c

PRODUCT PROFILE
The products manufactured and supplied by SMV Beverages Pvt. Ltd,
are very limited in range as it is not independent to diversify its products
when required. This is because it is a unit of PEPSI FOODS LIMITED,
which supplies the concentrates for different brands of soft drink.

These are:-

u PEPSI (cola flavour)

u 7 UP (Clean lemon flavour)
u MIRINDA (orange)
u MOUNTAIN DEW
u SLICE(mango flavour ,having concentration of ALPHANSO &
TOTAPURI Mango 30:70 )
The chief consumers are young masses. Beside direct consumer,
hoteliers, restaurants owners and various other soft drinks peddlers also
use them. Thus it can be said that these are the product for mass
consumption.

0YG 0!#à‰!Y% à

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 Carbonated water, high fructose corn syrup, caramel color,

phosphoric acid, caffeine, citric acid and natural flavors

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 0 carbs. 0 calorie. It¶s the diet cola.


 Carbonated water, caramel color, aspartame, phosphoric

acid, potassium benzoate (preserves freshness), caffeine, citric acid and
natural flavors.

 

àë0Y$Y% 0% 0!% 


 Carbonated water, high fructose corn syrup, citric acid, purity
gum, potassium benzoate and potassium sorbate (preserves freshness),
ester gum, natural flavor, yellow 6, ascorbic acid and calcium disodium
EDTA (to protect flavor), sodium citrate.

MOUNTAIN DEW

0YY#0#)##!"0%

The fastest-growing soft drink of the decade, Mountain Dew currently

ranks as the nation's leading soft drink in retail outlets. Doing the "Dew"
is like no other soft drink experience because of its daring, high-energy,
high-intensity, active, extreme citrus taste.

·0
 c


: Carbonated water, high fructose corn syrup, concentrated

orange juice and other natural flavors, citric acid, sodium benzoate
(preserves freshness), caffeine, sodium citrate, gum arabic, yellow 5,
erythorbic acid (preserves freshness), calcium disodium EDTA (to protect
flavor) and brominated vegetable oilc

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: Carbonated water, caramel color, aspartame, phosphoric acid,
potassium benzoate (preserves freshness), caffeine, citric acid and
natural

flavors

 / .

PepsiCo India has launched packaged nimbu paani, Nimbooz by 7UP.

The product has been created to suit Indian tastes. PepsiCo claims that
Nimbooz, an offering with real lemon juice, no fizz, and no artificial
flavours will be available in trendy, convenient packs very soon in
Jamshedpur .

·-
 c

FRUIT JUICE

cccccccccccccccccc ccc SLICE c

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 Carbonated Water, High Fructose Corn Syrup, Mango Juice
From Concentrate, Citric Acid, Potassium Benzoate (Preserves
Freshness), Modified Food Starch, Natural & Artificial Flavors, Potassium
Sorbate (Preserves Freshness), Ascorbic Acid (Vitamin C),Yellow 6,
Glycerol Ester of Wood Rosin, Calcium Disodium EDTA (To Protect
Flavor), Sodium Citrate.

PACKAGED DRINKING WATER

ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc c

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Enjoy the crisp, refreshing taste of Aquafina ± 100% pure, non-

carbonated, purified drinking water. The consistent purity and great taste
of Aquafina are guaranteed by means of a state-of-the-art purification
process that includes reverse osmosis and carbon filtration. Since its
debut in 1995, Aquafina has won over consumers with its great taste and
purity.

··
 c

Aquafina is the official bottled water of Major League Soccer and the
PGA of America. Aquafina is distributed nationwide and can be enjoyed
in 500 ml., 1-liter and 1.5-liter bottles. Aquafina. Purity Guaranteed.c

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THE PRODUCTION PROCESS c

The production process being carried on the SMV Beverages (Jamshedpur)

in for batch type. The entire process is almost automatic and it requires
huge amount of water and electricity. The production process is divided into
following steps´

u Water treatment

u Bottle washing

u Syrup preparation

u Filling

u Shipping

,0!#Y!Y#0! # !

SMV Beverages (Jamshedpur) gets water from Sitarampur Dam. This

wager being collected in huge tanks undergoes two different treatments
resulting in soft water and treated water.

à‰!,0!#Y

The municipal l water is passed through sand filter, carbon purified and salt
charged softener (to remove hardness). The water obtained after this
treatment is called soft water. This soft water being kept with 2-4 PPM c12
in storage tank is used for bottle washing and the water being stored with
c12 goes the boiler.

!Y#0!#,0!#Y

The municipal water is at first treated with Ferrous Sulphate (feSO4) lime
and Chlorine. This process involved is called Coagulation and it takes place
in the reaction tank. From reaction tank the water moves on to the
intermediate tank to be stored in storage tank. From there it passes through
the sand filter, carbon purifier, and Ultra-Violet Light. Water obtained after

·ü
 c

this much treatment is called treated water and is used preparation of

drinks.

G!!*#,0à"% 

Bottles coming back from market need to be washed before filling. Washing
of bottles is a completely automatic process. This takes place in machine
having three chamber. Bottles are put on the conveyor and as they enter the
machine they undergo three successive treatments. At first, they are
treated with 4% caustic soda at 100-150 F. in the next chamber, they are
treated with 2% caustic soda at 120 F and in the third chamber they are
treated with soft water. The cleaned bottled are sent to inspection, where
the upper and lower portions of the bottle are watching successively against
light.

G

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à$YëëY#ë0Y0!% 

The room is well equipped with several tanks and filter press. The Syrup
is prepared with calculated amount of sugar and water being heated up
to 85 C. This syrup is passed through filter press. Thfiltered syrup is
passed through a Para flow cooler whereby recycling and glycol method
the syrup is cooled down to 20-25C. The cooled syrup is stored in syrup
tank.

·
 c

  

‰%**% 

The syrup mixed with carbonated water under pressure in a Traumatic

Machine. Inspected bottles gradually come under the ³Filler machine´
where the carbonated syrup is poured into the bottles and the crowner
machine helps in closing the bottles completely airtight. Ready bottle are
once again inspected to check the quantity and from there they are
collected.




à"%ëë% 

After the whole process of bottling is completed, filled bottles in cases

(creates) are sent to the shipping department and it sends them to
different destinations for Sales.

]0
 c

PLANT VISIT

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PRODUCT & PACK PROFILE

PRODUCT:
Carbonated Soft Drinks (CSD) or Soft drinks as they are popularly known are
one of the largest FMCG market in the whole world with the total annual sales
around $40 billion. This product is generally available in four kinds of packing-

l Glass Bottle
l Pet Bottle
l Cans
l Fountain Rim

FLAVORS:

l Cola
l Orange
l Clear Lemon

l Cloudy Lemon
l Berry
l Ginger
l Mango Slice

Out of these products the 70% of the sales of the company come from the cola
brand, which is the market leader in the most part of the country of these kinds
of packaging in which the product is available make them 805 of the sales
come from these bottles. The business of returnable bottles is very
cumbersome and makes the market very complex and demanding.

]-
 c

PART--
OBJECTIVE
PepsiCo is a world leader in convenient foods and beverages, with revenues of

about $ 26 billion and over 1, 35,000 employees.

Recently PepsiCo is continuously trying to improve its position in the total sales

in corporate houses segments.

! 0

  0

 
&



l To find out the problems faced by the channels of distribution.

l To increase penetration in the market.

l To find out levels of satisfaction among the retailers.

l To find out availability of Pepsi in the outlets.

l To see the distribution gap by which the product is selling.

l To know the monopoly in these outlets.

]·
 c

DISTRIBUTION STRATEGY OF PEPSI

A company can choose any of the following distribution types:
l Exclusive distribution
l Selective distribution
l Intensive distribution

PepsiCo has adopted the intensive distribution strategy.

INTENSIVE DISTRIBUTION

A strategy of intensive distribution is characterized by placing the goods or

services in as many outlets as possible. When the consumer requires a great
deal of location convenience, it is important to offer greater intensity of
distribution. This strategy is generally used for convenience items such as
tobacco, gasoline, soap, snack food and bubblegum.
Manufactures are constantly tempted to move from exclusive or selective
distribution to more intensive distribution to increase their coverage and sales
and you could find Pepsi in nursing homes, confectionery shops, departmental
stores; you name it & Pepsi is available there.

]]
 c

The company gives the various thing to the retailer to increase their sales. This
is the strategy of distribution, by which retailer find them self¶s profitable and
they keen to sell the Pepsi product. Company not only think about the
customer but also they think about the retailer. That is why retailers are also
loyal to the company, which increase the share of the Pepsi market and
popular brand.
VISI COOLER:
l 65 Liter
l 110 Liter
l 120 Liter
l 165 Liter
l 200 Liter
l 210 Liter
l 220 Liter
l 300 Liter
l 320 liter
l 330 Liter
l 500 Liter

DISPLAY MATERIAL:
l Stickers
l Banners
l G.S.Boards
l D.P.S.Boards
l Racks
l Counters
l Umbrellas

]6
 c

à"# #à%r# G$ë#ëà%!!"#Y#!0%*#Yà

2LIT 1PETI 9 BOTTLE AQAFINA FREE

1LIT 1PETI 1BOTTLE 1LIT FREE

1LIT 3PETI 4BOTTLE 1LIT FREE

1LIT 5PETI 8BOTTLE 1LIT FREE

1LIT 10PETI 20BOTTLE 1LIT FREE

600ML 1PETI 3BOTTLE AQUAFINA FREE

200ML 1CARET 2BOTTLE 200ML FREE

Note ;This scheme changes from time to time,because one offer cannot remain
long period.

]*
 c

PROMOTION IN BIG BAZAR

We find the Pepsi product in big buzzer .Pepsi company provide its product at
20% discount at retailer price. They also display their product in big buzzer
which promote this company.

COMPLAINT
During my training period, I have visited no of retail shops and found few
problems. Like delay in receiving vc cooler, delivery of product in time,
awareness with current schemes, frequent visit company person in retailer
shop, original bill, any mis- behaving of rute agent.
The company is continuously trying to resolve the problem in the
market which is genuine.

(
à  



The strategy of market segmentation of Pepsi is undifferentiated marketing,
where the target market is one and marketing is same for the target market.

]^
 c

A Company cannot serve all customers in a broad market such as soft drinks.
The customers are numerous and diverse in their buying requirements. The
company needs to identify the market segment that in can serve more
effectively.

Many companies are embracing target marketing. Here, sellers distinguished

the major market segment, target one or more of those segments, and develop
products and marketing programs tailored to each. Instead of scattering their
marketing effort they can focus on the buyers they have the greatest chance of
satisfying.
‰ (
  : Here a firm attempts to serve all customers group with
all the products they might need. Only very large firms can undertake a full
market coverage strategy. Examples- Soft drinks like Pepsi-Cola, Coca-Cola
etc.
Product Modification:
Sometimes company also tries to stimulate sales by modifying the product¶s
characteristics with quality improvement, feature improvement or style
improvement.
Examples- In the case of soft drinks:
Coca-Cola battered by competition from the sweeter Pepsi-Cola. Coca-Cola
decided in 1985 to replace its old formula with sweeter variation, dubbed the
new Coke. Coca-Cola spent $4 million on market research. Blind taste launch
of new Coke provokes a national uproar. Market researchers have measured
the taste but had failed to measure the emotional attachment consumers had
to Coca-Cola. There were angry letters, formal protests, and even low sweet
threats, to foresee the retention of ³The Real Thing´. Ten weeks later, the
company withdraws new coke and reintroduce its century old formula as
³Classic Coke´ Giving the old formula even stronger status in market place.
c

]ü
 c

COMPANYS GLOBAL STRATEGYc

c Set a winner¶s growth, if you act like number two you will always be on
number two.

Five people lone change and thieve on risk taking.

Upset the rules of market place.
Always anticipate the response you may provoke.
Executive of plan often drives success more than more marketing.
Encourage executives to think literally.
Conjure up those creative tactics to knack fizz out of its competitors.

c
c

]
 c

PROMOTION TOOLS ADVERTISING

Soft drinks totally depend on advertising. There is a budget to spent money in
any family, in any corporate etc. But there is no budget regarding soft drinks. It
depends on situation. So, we say soft drinks based on advertising.

Challenges in Global Advertising and Promotion

Multinational Companies wrestles with a number of challenges in developing
globe communication programs.
They must decide whether the product is appropriate for a country.
They must make sure that the market segment they address is both legal and
customary.
They must decide if the style of the ad is acceptable or customary in all the
countries involved.
They must decide whether ad should be created at headquarters or locally.

ëY!: Beer, Wine and Spirits cannot be advertised or sold in Muslim

countries. Tobacco product to strict regulation in any country in any country;
The United Kingdom now wants not only to band tobacco advertising but also
to outlaw sports sponsorship by tobacco companies. Global harmonization of
cosmetic product regulation, known as the Florentine Regulations, is being
discussed. This will have a significant impact on advertiser, because the
regulation affect issues like Product labeling, product safety, animal testing,
updated ingredient listings.

0Y#! à# # !: Coca-Cola has a pool of deferent commercials for

different national market segments. Local and global segment manager
decides which commercial works best for which segment. Recently, in an
reverse of the usual order, a series of Coca-Cola commercials developed for
the Russian market, using a talking bear and a man who transforms into a wolf,

60
 c

was shown in the United States. As Michale O¶ Nill, presidint of Coca-Cola

Nordie division said ³This approach fits perfectly with the global nature of
Coca-Cola and offer people special look into a culture that is different from
their own.´

à!$*#: The style of the also important because comparative ads, while
acceptable and even common in the United states and Canada, are less
commonly used in the United Kingdom, unacceptable in Japan, and illegal in
India and Brazil. PepsiCo found that its comparative test ad in Japan was
refused by may TV Station and actually made to a lawsuit, China has restricted
censorship rules for TV and radio advertising. For example-the words µthe best¶
are banned, as are ads that ³violate social customs´ or present woman in
³improper ways´. Snickers got in to trouble in Russia when in plan a ceaseless
barrage of poorly dubbed American TV commercials to a people not used to
TV advertising, Russian comics then began to take jobs os Strikers, and its
brands name become a laughing stock.

*
  : Today more and more multinational companies are
attempting to build a global brand image by using, the advertising in all their
markets. FedEx¶s first global campaign was the way the world works. Ericsson,
the Swedish telecommunication giant, spent $ 100 million on a global TV
campaign with the tagline ³Make your self hard´ which featured 007, Jams
Bond. When Daimler AG and Charysler merged to become the world¶s fifth
largest automaker, they ran a three week ad campaign in more than 100
countries consisting of a 12 page magazine insert, a newspaper spreads, and
24 page Boucher that was sent to Business. Govt. and Union Leaders and to
the News Media. The campaign¶s tagline was ³Expect that the extra ordinary´
and if featured people from both companies working together. But even if a
company favors strong corporate standardization, legal restrictions may force
adaptations. The Coca-Cola¶s Indian subsidiary was forced it end a promotions
that offered prizes such as a trip to Hollywood, because it encouraged
customers to buy in order to gamble, in violation of India¶s established trade
practice.

61
 c

à0*#à ëY !% : Communication with an audience through a variety of

no personal, non-media vehicles such as display, gift and coupons; the
audience clearly perceives the sources of message as the organization paying
for their delivery . The soft-drinks company like Pepsi uses promotion tools in
winter seasons generally, because in summer the demand of Soft drinks is
very high, but in winter season the sale of Soft drink in law. So the companies
want to promote their sales through this tool. They give display coupons, gifts
etc. Sales Promotion focuses that attention of the customers at the actual point
of sales in the shops with such effectiveness that both the advertiser and the
dealer are benefited. The main purpose is to increase sales.

6-
 c

RESEARCH METHODOLOGY
c

RESEARCH OBJECTIVE:

The objective of my research is to find out the market share of Pepsi with
respect of filled stock glass, glass strength, signage, chilling equipments, pet
strength, etc.

1. RESEARCH DESIGN USED:

Research is an art of scientific, investigation and systematic research for
pertinent information on a specific. I have used analytical type of research.
Under analytical research we use facts or information already available and
analyses these to make critical evaluation of the material. I have gathered the
information from different sources and analyses it is better way.

The data for market research is collected using the survey technique surveys
are best suited for analytical research. I undertake survey to learn about
people¶s knowledge, belief, preferences, satisfaction, attitude, value and so on
and to measure these magnitudes in the general population.

2. DATA SOURCES:
The research plan can call for gathering primary and secondary data.
0Primary Data: Primary data has been collected personally from various
retailers. I interacted directly with executive persons of the Pepsi Co.
distributors and Pepsi depot. I acquired good information.
GSecondary Data: I collected secondary data from company¶s records,
magazines, books and the website of the company www.pepsico.com
3. RESEARCH INSTRUMENT:
Pepsi co. India holding Pvt. Ltd. Had provided me an every dealer¶s survey
(EDS)

6·
 c

format as research instrument for collecting primary data. The EDS format
consists of a set of question presented to respondents for their answers.
Because of its flexibility, the company format is the most common instrument
used to collect primary data.
4. SAMPLING PLAN:
It can be presume that in such an enquiry when all the items are covered no
elements of chance is left and highest accuracy is obtained. This type of
enquiry involved a great deal of time, money and energy. Due to the limitation
of time and cost not practically feasible to contact each and every respondent
in the target segment. Hence quite often I selected constituted what is
technically called a sample.
A sampling plan is a definite plan determined before any data are actually
collected for obtaining a sample from a given population.
Sample Size: There was dealers in Jamshedpur city. I had completed my
survey under C.E. for this project I had surveyed different types of retailers.
The sample size covered by me constitutes same part of Jamshedpur city. 100
retailer outlets, the standard sample size had chosen by me.

a. Sampling Technique: I had used judgment sampling technique for my

project report. This approach has been found empirically to produce un-
satisfactory results. And, of course, there is no objective way of evaluating
the precision of sample results. Despite these limitations, this method may
be useful when the total sample size is extremely small.

5. CONTACT METHOD:
Personal interview is the most versatile methods. The interviewer can ask
more questions and record additional observations about the respondent.
Personal interview is the most expensive method and requires more
administrative planning and supervision that other method. It requires
intelligent efficient and communicative interviewers.

6]
 c

Research Design
An analytical research design was chosen for the study.

Time& Space boundary:

11th MAY 2010 to 19th JUNE 2010 PLACE- JAMSHEDPUR (city).
Sample Size:
100 retailer¶s outlets.
Sampling Tools:
Every Dealers Survey (EDS) format.
CONCLUSION
After the completion of survey I reached this conclusion that in given area
customers are not brand loyal. They buy soft drinks only to quench their
thirst. Therefore if good and harmonious relationship is maintained between
the distributor and the customer executive, the company can definitely
increase their soft drinks share in the market.

SWOT ANALYSIS
+ )c
l Pepsi Company is a well known and world famous company with high
profile turnover is not only well-established but also reputed company.

l Company carries vast experience and professional competence in

launching successfully its project in various market of jamshedpur.

l The style of functioning of company, which is democratic. Communicative

and result oriented which makes staff highly committed.

l High promotion of experienced staff is at a key position.

66
 c

l The wide range of soft drinks that it has in it¶s armory, is also a strong
point.

l It has a wide and extensive distribution network of soft drinks.

l Advertising of Pepsi is much aggressive than Coke

M,+c
l Lacks coordination between executives and retailers.
l Pepsi losing its market share to competitors due to poor supply.
l Non-fulfillment of commitments on time, made to shopkeepers.
l Incompetent salesman who do not give the schemes in the market
regularly.
l Unavailability of various demanded flavors like Slice and Mirinda Lemon.
l Not proper control over distribution networks.

c
-+
. c
With ever increasing population and changing life style of ready to serve
foodstuff including drinks couples with the fact that approximately 60%
population of India is below 25 pears, and Soft Drinks Company has
bright future. Goodwill of company can be increased by publicity and
advertisement. Basically Indians are very emotional and get attracted to
those things and names very easily, which show some belongingness, so
a company can easily track consumers with an adequate publicity policy.

Company has brand equity in the eyes of customers, so its new products
can easily penetrates in the market.
THREATS

6*
 c

The Pepsi Co. is facing a big threat from its competitors Coca-Cola Co.
ThumsUp and Limca, which are products of Coke, are having a
reputation of ³Swadeshi Brands´ in the mind of customers because of
their origin. Coke is a having two cola brands i.e. Coca-Cola and
ThumsUp that can cover more targeted consumers. Those consumers
who prefer to drink hard cola drink can opt for ThumsUp while those
prefer to drink soft Cola can opt for Coke.
Restrictions made by govt. agencies that soft drinks are harmful and non-
nutritive. Natural juice are now available whose price are less or same as
soft drinks.

6^
 c

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FINDINGS OF CHANNELS IN GIVEN MARKETS

 

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Analysis:
Since my area was urban therefore, the outlets were of under the category of
grocery as well as etable and convenience which includes sweets shops, tea
shops, pan shops etc.

6
 c

COMPARISION BETWEEN GLASS STRENGTH

OF PEPSI AND COKE
(IN CRTS.)
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c
Analysis:
Since the consumption of Pepsi Brand more than the brands of Coke therefore
the Glass Strength of Pepsi is found 61% of total soft drinks market and Coke
share was paid 39%.


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COMPARISION BETWEEN GLASS STRENGTH

OF PEPSI AND COKE
(IN CRTS.)
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STATUS OF THE RETAILERS IN THE GIVEN MARKET
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COMPARISION OF COOLING EQUIPMENTS

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Analysis:
More than 51% of total outlets have their own cooling equipment where as
Pepsi & Coke has the contribution of 29% and 20% respectively.

*·
 c

AVAILABILITY OF ICE CHEST IN THE

MARKET
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analysis:
Fifteen ice chest is found in the market which was provided by Pepsi & eight of
Coke.
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TOTAL STRENGTH OF SIGNAGE OF PEPSI CO.

IN THE MARKET
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Analysis:
35% of the total outlets are given the glow sign and dealer board is done 45%
the total outlets where as painting is 20%.

*6
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MARKET SHARE OF PET BOTTLES

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Analysis:
The filled stock of pet bottles of Pepsi Brand where found 73% of total the
market where as Coke contribution is only 27%.

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MARKET SHARE OF AQUAFINA VS. OTHERS

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Analysis:
The graph shows the market share of mineral water between Pepsin Brands
Aquafina Vs. Others a good stake in this category is holding by the Aquafina by
capturing 35% of total mineral water market.

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RECOMMENDATION
Pepsi Company has bright future but there is very stiff competition between
Pepsi co. and Coke Company. So there are few suggestions, which can extend
the Pepsi share in given market.

1. It is the task of company to provide the comforts to retailers as cooling

equipments, glow sign wall painting, dealer board and racks etc.
2. Concentrate all the outlets, which may extend the Pepsi demands in
markets.
3. For the penetration of Pepsi brands in balance area , some scheme must
be introduced. Such as visi. Cooler provide the new outlets holders.
4. There should be proper and regular delivery of products
5. Take appropriate steps to prevent the unfair trade practice which done by
the dealers.
6. Proper investigation regulated by the executives of the company.
7. More attention should be paid on advertisement through providing glow
signs, dealer board and painting.
8. There should be preventing monopoly of the dealers.

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LIMITATIONS
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l Findings are made on the views expressed by the consumers. So it may
suffer from biased prejudices.
l Weather conditions were not favorable.
l Some of the respondents were not co-operative and many seem to be
having no interest.
l The study has not been intended on a very large scale, have the
possibility of errors, which can not be ruled out.
l Time limitations.
l Area was specified.
l It is extremely difficult to persuade to respond to questionnaire.
l The retailers know us as people from Pepsi there by the responses could
have been biased.

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CONCLUSION
My survey was related to some area of JAMSHEDPUR city. I had completed
my survey under C.E. In these areas having much demand of Pepsi so, it is
necessary to fulfill the demand & the demand is increasing as per the
affortibility of consummer is increasing.

After completion of my survey, I reached to this conclusion that :

u in these areas the customers are not Brand Loyal. They buy soft drinks
only to quench their thirst. Therefore good and harmonious relationship
is to be maintained between the distributor and the customer; the
company can definitely increase their soft drinks share in the market.

u Another conclusion is derived is that if regular supply of the consignment

would be done then it will be an aggressive way and all the brands would
be sold out.

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BIBLIOGRAPHY
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MEBSITES

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BOOK REFERENCE
Marketing management by Philip kotler.
Global logistic & Distribution Planning by Donald Waters
Strategy of Distribution by Martin Christopher
A handbook of strategy & tactics by Robert marich

NEMSPAPER
Prabhat Khabar
Dainik Jagran

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