Varun Beverage
Varun Beverage
Varun Beverage
INTRODUCTION
BEVARAGES INDUSTRY
Beverages have been the most vital part of consumption. It is rapidly growing and has made a
remarkable stand in the food processing industries. The effective strategies of these industries
have made them the major players in the food processing market by grabbing the market
share for the past decade. They also have been popular ever since they started their operations
and have been heading towards success. Beverages have been described as “The most
extensive dietary impact of foreign corporation in the developed world.”
Beverage industry is mature sector where in alcoholic and non-alcoholic drinks are
manufactured. The non- alcoholic category comprises of soft drinks, fruit juices, water
bottling and canning. Alcoholic beverage categories include distilled spirits, wine and
brewing.
The non-alcoholic beverages especially the soft drinks are preferred by the youth and most of
the customers. Soft drink helps to quench the thirst and is easily available at the nearby shops.
The soft drinks are the simple refreshment that helps to gain energy. The rumours about the
soft drink containing pesticides had declined its sale but they are back on track and are
enjoying popularity.
The food processing industry in India has a total turnover of around USD 65 billion which
includes value added products of around USD 20.6 billion. Coca cola, Pepsi, and Nestle are
the leading beverage brands that have been ruling the Indian beverage market since past few
decades. Among all the beverages, tea and coffee are manufactured as well as exported
heavily in the international markets succumbing to the individual demands around the world.
The beverage industry in India constitutes of around USD 230 million among the USD 65
billion food processing industry. The major sectors in beverage industry in India are tea and
coffee which are not only sold heavily in the domestic market but are also exported to a range
of leading overseas markets. Half of the tea and coffee products are available in unpacked or
loose form. Among the hot beverages manufactured in India, tea is the most dominant
beverage that is ruling both the domestic and international market even today.
Pepsi and Coca cola are the two leading brands in the Indian Market.
The mineral water market in India is a USD 50 million industry and produces 65 million
crates. Around 4.9 million crates is usually consumed each month but it rises to 5.2
million crates in the peak season. SOFT DRINK INDUSTRIES The production,
marketing, and distribution of non-alcoholic, and generally carbonated, flavoured, and
sweetened, water-based beverages.
When Beverage world magazine published their 100 year history 1882-1982 and Future
probe in 1982, they leaned heavily on the information in organization in the soft drink
industry for the “A century of Indian history in Review” chapter. Their centennial overview
offered these thoughts on late nineteenth and early twentieth century soft drink consumption
and production.
Soft drink sales expansion was also limited in the early 1900’s by the limited no of outlets
and the consumer’s restricted mobility.
Obviously, the development of the truck and motor car had a profound impact on the pattern
of beverage consumption. The automobile made a trip to the corner grocery a more frequent
event and also created a ‘road side stand’ as a place to stop for a cold bottle of sodas.
Furthermore, the replacement of the delivery wagon by the motor truck during 1913-1918
and the subsequent building of roads greatly expanded the area in which the bottler was able
to deliver his drinks.
We are the second largest franchisee in the world (outside US) of carbonated soft drinks
(“CSDs”) and non-carbonated beverages (“NCBs”) sold under trademarks owned by PepsiCo
and a key player in the beverage industry. We produce and distribute a wide range of CSDs,
as well as a large selection of NCBs, including packaged drinking water. PepsiCo CSD
brands sold by us include Pepsi, Diet Pepsi, Seven-Up, Mirinda Orange, Mirinda Lemon,
Mountain Dew, Seven-Up Nimbooz Masala Soda, Evervess Soda, Duke’s Soda and Sting.
PepsiCo NCB brands sold by us include Tropicana (100%, Essentials & Delight), Tropicana
Slice, Tropicana Futz, Seven-Up Nimbooz, Gatorade and Quaker Oat Milk as well as
packaged drinking water under the brand Aquafina. In addition, we have also been granted
the franchise for Ole brand of Pepsi Coproducts in Sri Lanka.
We have been associated with PepsiCo since the 1990s and have over two and half decades
consolidated our business association with PepsiCo, increasing the number of PepsiCo
licensed territories and sub-territories covered by us, producing and distributing a wider range
of PepsiCo beverages, introducing various SKUs in our portfolio, and expanding our
distribution network. We have been granted franchisees for various PepsiCo products spread
across 27 States and 7 Union Territories (except Jammu & Kashmir and Andhra Pradesh in
India. Our share of PepsiCo beverages volume sales increased from ~ 26% in Fiscal 2011 to
80%+ now. Although, India is our largest market, we have also been granted the franchise for
various PepsiCo products for the territories of Nepal, Morocco, Zambia and Zimbabwe.
VBL has 30 manufacturing plants in India (Gr. Noida 1, Gr. Noida 2, Kosi, Sathariya 1,
Sathariya 2, Bazpur, Jainpur&Hardoi in Uttar Pradesh, Bhiwadi& Jodhpur in Rajasthan,
Nuh&Panipat in Haryana, Phillaur and Pathankot in Punjab, Kolkata in West Bengal,
Guwahati Unit 1 & 2 in Assam, Goa, Mandideep in Madhya Pradesh, Bargarh& Cuttack in
Odisha, Jamshedpur in Jharkhand, Bharuch in Gujarat, Mahul, Roha and Paithan in
Maharashtra, Nelamangala in Karnataka, Palakkad in Kerala, Sri City in Andhra Pradesh,
Sangareddy in Telangana and Mamandur in Tamil Nadu) and 6 manufacturing plants in
international geographies (two in Nepal and one each in Sri Lanka, Morocco, Zambia and
Zimbabwe). In addition, we have set up backward integration facilities for production of
preforms, crowns, corrugated boxes, plastic crates and shrink-wrap films in certain of our
production facilities to ensure operational efficiencies and quality standards.
We are part of the RJ Corp group, a diversified business conglomerate with interests in
beverages, quick-service restaurants, dairy and healthcare. Our Promoter and Chairman Mr.
Ravi Kant Jaipuria has an established reputation as an entrepreneur and business leader and is
the only Indian to receive PepsiCo’s International Bottler of the Year award, which was
awarded in 1997.
COMPANY PROFILE
Varun Beverages was incorporated as Varun Beverages on June 16, 1995 as a public limited
company under the Companies Act, 1956, with the Registrar of Companies, NCT of Delhi
and Haryana. The company obtained a certificate for commencement of business on July 4,
1995.
The company is one of the largest franchisees in the world (outside USA) of carbonated soft
drinks (CSDs) and non-carbonated beverages (NCBs) sold under trademarks owned by
PepsiCo. It produces and distributes a wide range of CSDs, as well as a large selection of
NCBs, including packaged drinking water. PepsiCo CSD brands produced and sold by it
include Pepsi, Diet Pepsi, Seven-Up, Mirinda Orange, Mirinda Lemon, Mountain Dew,
Mountain Dew Game Fuel, Seven-Up Nimbooz Masala Soda, Seven-Up Revive and
Evervess. PepsiCo NCB brands produced and sold by it include Tropicana Slice, Tropicana
Frutz (Lychee, Apple and Mango), and Nimbooz as well as packaged drinking water under
the brand Aquafina. In addition, the company has also been granted the franchise for Ole
brand of PepsiCo products in Sri Lanka.
The company has been associated with PepsiCo since the 1990s and has over two and half
decades consolidated its business association with PepsiCo, increasing the number of licensed
territories and sub-territories covered by it, producing and distributing a wider range of
PepsiCo beverages, introducing various SKUs in its portfolio, and expanding its distribution
network. The company has also been granted the franchise for various PepsiCo products for
the territories of Nepal, Sri Lanka, Morocco, Mozambique and Zambia. In addition, the
company is in the process of setting up a greenfield facility in Zimbabwe in anticipation of
franchise rights being granted by PepsiCo Inc. for such territory.
2012: Merger of VBIL with the company pursuant to the order of High Court of Delhi
dated March 12, 2013.
2013: The company acquired the business of manufacturing and marketing of soft
drink beverages and syrup mix in Delhi, India.
2015: Business transfer agreement through which the company acquired PepsiCo
India’s business of manufacturing, marketing, selling and distributing soft drink
beverages and syrup mix in the Indian states of Uttar Pradesh (excluding certain
territories), Uttarakhand, Himachal Pradesh, Haryana (excluding certain territories)
and the Union Territory of Chandigarh.
2015: Business transfer agreement through which the company acquired PepsiCo
India’s business of manufacturing, marketing, selling and distributing soft drink
beverages and syrup mix in Bazpur, Jainpur, Satharia and Panipat.
2015: The Company acquired the business of selling and distribution of soft drinks
beverages and syrup mix in one district undertaking situated in Punjab.
2016: The Company acquired entire shareholding of Arctic International Private
Limited in Varun Beverages Mozambique, Limitada.
2016: The company acquired entire shareholding of Arctic International Private
Limited in Varun Beverages (Zambia) Limited.
2016: Incorporation of Varun Beverages (Zimbabwe) (Private) Limited.
2016: Acquisition of 85% of the shareholding of VBZPL.
HISTORY OF COMPANY
VARUN BEVERAGES LTD. (VBL) - COMPANY HISTORY
Varun Beverages Ltd part of the RJ Corp group a diversified business conglomerate with
interests in beverages quick-service restaurants dairy and healthcare is the second largest
franchisee in the world (outside US) of carbonated soft drinks ('CSDs') and non-carbonated
beverages ('NCBs') sold under trademarks owned by PepsiCo.
The company produces and distributes a wide range of CSDs as well as a large selection of
NCBs including packaged drinking water. PepsiCo CSD brands produced and sold by the
company include Pepsi Diet Pepsi Seven-Up Mirinda Orange Mirinda Lemon Mountain Dew
Seven-Up Nimbooz Masala Soda Evervess Soda Sting and Gatorade. PepsiCo NCB brands
produced and sold by the company include Tropicana (100% Essentials & Delight) Tropicana
Slice Tropicana Frutz Seven-Up Nimbooz and Quaker Oat Milk as well as packaged drinking
water under the brand Aquafina. In addition, the company has also been granted the franchise
for Ole brand of PepsiCo products in Sri Lanka.
The company has been associated with PepsiCo since the 1990s and over two and half
decades consolidated its business association with PepsiCo increasing the number of PepsiCo
licensed territories and sub-territories covered by the company producing and distributing a
wider range of PepsiCo beverages introducing various SKUs in the company's portfolio and
expanding the company's distribution network. As of March 2018, the company has been
granted franchises for various PepsiCo products spread across 21 States and two Union
Territories in India.
The company's share of PepsiCo beverages volume sales based on sales to end customers
increased from 26.46% in Fiscal 2011 to ~51% in Fiscal 2018. Although India is the
company's largest market the company has also been granted the franchise for various
PepsiCo products for the territories of Nepal Sri Lanka Morocco Zambia and Zimbabwe. As
of March 2018, the company has 20 manufacturing plants in India and five production
facilities in the international geographies (one each in Nepal Sri Lanka Morocco Zambia and
Zimbabwe). In addition, the company has set up backward integration facilities for
production of preforms crowns corrugated boxes plastic crates and shrink-wrap films in
certain of the company's production facilities to ensure operational efficiencies and quality
standards.
The company's Promoter and Chairman Mr. RAVI KANT JAIPURIA has an established
reputation as an entrepreneur and business leader and is the only Indian to receive PepsiCo's
International Bottler of the Year award which was awarded in 1997.The company was
incorporated as Varun Beverages Limited on 16 June 1995 at New Delhi as a public limited
company under the Companies Act 1956.
The company obtained a certificate of commencement of business on 4 July 1995. The
company started its operations at Jaipur in 1996. In 1999 the company started operations at
Alwar Jodhpur and Kosi. Devyani Beverages Limited was merged with Varun Beverages
pursuant to the order of High Court of Delhi dated 6 October 2004. Varun Beverages
(International) Limited was merged with Varun Beverages pursuant to the order of High
Court of Delhi dated 12 March 2013.
In 2013 Varun Beverages acquired the business of manufacturing and marketing of soft drink
beverages and syrup mix in Delhi India. In 2015 through a business transfer agreement Varun
Beverages acquired PepsiCo India's business of manufacturing marketing selling and
distributing soft drink beverages and syrup mix in the Indian states of Uttar Pradesh
(excluding certain territories) Uttarakhand Himachal Pradesh Haryana (excluding certain
territories) and the Union Territory of Chandigarh. During the year the company through a
business transfer agreement acquired PepsiCo India's business of manufacturing marketing
selling and distributing soft drink beverages and syrup mix in Bazpur, Jainpur, Satharia and
Panipat. During the year the company acquired the business of selling and distribution of soft
drinks beverages and syrup mix in one district undertaking situated in Punjab.
In 2016 Varun Beverages acquired entire shareholding of Arctic International Private Limited
in Varun Beverages Mozambique Limitada. During the year the company acquired entire
shareholding of Arctic International Private Limited in Varun Beverages (Zambia) Limited.
During the year Varun Beverages acquired 85% shareholding of Varun Beverages
(Zimbabwe) (Private) Limited (VBZPL). Varun Beverages came out with an initial public
offer (IPO) during the period from 26 October 2016 to 28 October 2016.
The IPO was a combination of fresh issue of 1.5 crore shares and offer for sale of 1 crore
shares from the promoters. The IPO was priced at Rs 445 per share. The company's shares
were listed on the bourses on 8 November 2016.On 23 February 2017 Varun Beverages
announced that it has increased its stake in its Zambia subsidiary Varun Beverages (Zambia)
Limited to 90% from 60%. VBL has been successfully running the Zambia operations since
its acquisition in 2016.
The increase in stake reflects the company's confidence in the future growth prospects of the
subsidiary and will be an effective catalyst to drive further business growth in a fast-growing
emerging market.
On 9 March 2017 Varun Beverages Limited (VBL) announced that it has divested 41% stake
in its Mozambique subsidiary Varun Beverages Mozambique Limitada. The divestment of
the stake is in view of limited opportunity to scale-up operations which would have enabled
the company to turnaround the loss-making subsidiary. VBL continues to hold a residual
stake of 10% in the unit. On 4 May 2017 Varun Beverages announced that the company has
set up a new unit for manufacturing of Pepsi range of products at District Hardoi Uttar
Pradesh and the commercial production/operation has started with effect from 3 May2017.On
28 September 2017 Varun Beverages announced that the company has concluded the
acquisition of PepsiCo India's previously franchised territories in the state of Odisha and parts
of Madhya Pradesh along with two manufacturing units at Bargarh and Bhopal (Mandideep).
On 4 January 2018 Varun Beverages announced that it has further deepened its relationship
with PepsiCo by entering into a strategic partnership for the larger Tropicana portfolio along
with Gatorade and Quaker Value-Added Dairy in territories across North and East India. This
is part of VBL's strategy to expand its product portfolio through its valued relationship with
PepsiCo. On 11 January 2018 Varun Beverages announced that it has concluded the
acquisition of PepsiCo India's previously franchised rights for the state of Chhattisgarh.
The Board of Directors of Varun Beverages at its meeting held on 17 January 2018
considered and approved to acquire franchisee rights for PepsiCo India's previously
franchised sub-territory in the State of Bihar. Varun Beverages' subsidiary Varun Beverages
(Zimbabwe) (Private) started Commercial Production at a Greenfield facility for PepsiCo’s
products with effect from 16 February 2018.On 23 March 2018 Varun Beverages announced
that it has concluded the acquisition of PepsiCo India's previously franchised sub territory in
the State of Jharkhand along with one manufacturing unit at Jamshedpur.
The company is now a franchisee for PepsiCo products across 21 States and 2 Union
Territories of India. On 5 April 2018 Varun Beverages announced its plans to set-up a
greenfield production facility (subject to receipt of necessary approvals) to create in-house
production capacity at Pathankot district of Punjab for Tropicana fruit juices Quaker Oats
Milk based Beverages and Gatorade. Spread over ~41 acres it will be the first fully backward
integrated facility in India to manufacture the complete range of above products including
carbonated soft drinks (CSD) at a single location.
The expansion is to take advantage of the growing demand of Juice Based beverages for
health-conscious consumers. On 3 May 2018 Varun Beverages informed the stock exchanges
that a new unit at Nawalparasi District in Nepal under Varun Beverages (Nepal) Private
Limited a wholly owned subsidiary of the company started commercial production with
effect from 2 May 2018.
PROFILE OF COMPANY
Varun Beverages Limited is engaged in manufacturing, selling, bottling and distribution of
beverages of Pepsi brand. The Company produces and distributes a range of carbonated soft
drinks (CSDs), as well as a selection of non-carbonated beverages (NCBs), including
packaged drinking water. PepsiCo CSD brands produced and sold by the Company include
Pepsi, Diet Pepsi, Seven-Up, Mirinda Orange, Mirinda Lemon, Mountain Dew, Seven-Up
Nimbooz Masala Soda, Seven-Up Revive and Evervess Soda. PepsiCo NCB brands produced
and sold by the Company include Tropicana Slice, Tropicana Frutz, Seven-Up Nimbooz, as
well as packaged drinking water under Aquafina brand. In addition, it also franchises for Ole
brand of PepsiCo products in Sri Lanka. It operates in over 20 production facilities across
India and over five production facilities in its international licensed territories. It franchises
for various PepsiCo products spread across approximately 20 States and over two Union
Territories in India.
State KARNATAKA
THEORETICAL BACKGROUND
PRODUCT PROFILE
VISION
To become the most Successful & Profitable Beverage Company in the world
having Market Leadership in the territories we operate.
MISSION
Offering best quality & refreshing product to every customer & consumer.
OBJECTIVES
ORGANISATION STRUCTURE
STUDY OF DEPARTMENTS
HR DEPARTMENT
HR Manager
HR Executive HR Assistant
ACCOUNTS DEPARTMENT
Accounts
Department
General Manager
Account and Finance
A/C IT
Accountants
Accounts payables
Account receivables
Reporting and financial statements
Financial controls
SALES DEPARTMENT
Sales department
Assistant Sales
Customer Service
Trainee of
customer Service
Pre sales
Looking for the sales opportunities with the existing and new customers to sell
products and services
Provide detailed and accurate sales forecasting and track the same
PRODUCTION DEPARTMENT
Production department
Operations
Manager Assistants
Junior
Quality
control
Helper Operators
Senior Micro
Production Planning
Raw material collection
SHIPPING DEPARTMENT
Shipping Department
Billing Section
Workers
Material receipts
Storage and inventory
Pack and Ship
CEO 01 Workers 54
HOD 10 Probation 11
Executives 29 Nonseasonal 78
Staff 30 Seasonal 240
Trainee 31
OBSERVATIONS
1. Dharwad 8. Shimoga
2. Gadag 9. Chikkamagalur
3. Haveri 10. Bijapur
4. Davangere 11. Bellary
5. Belguam 12. Koppal
6. Bagalkot 13. ChitradurgA
7. Hassan 14. Karwar
WEAKNESS
STRENGTHS 1.OVERDEPENDENCE ON FOOD
1.BEST GLOBAL BRAND & BEVERAGES
STRENGTHS
1. Best Global Brand – According to Forbes 2019 ranking, PepsiCo is ranked # 29 most
valuable brand with a brand value of $18.8 Billion. In 2020, PepsiCo was ranked 87th
largest company in the world in Forbes’ Global 2000.
2. Power of One Strategy – Selling “Food & Snacks” (Frito Lays, Cheetos, Doritos,
Kurkure) and “Beverages” (Pepsi, Tropicana) under one umbrella makes PepsiCo a stronger
and diversified business. Its food business accounted for 54%, and beverages accounted
for 46%.
3. Strong Global Presence – PepsiCo has exploited the benefits of a strong global presence
by partaking in more than 200 countries across the world. PepsiCo’s overwhelming presence
in markets across the world has enhanced global awareness and recognition of the brand
among consumers. One of the strengths that has enabled PepsiCo to go head-to-head with
competitors, such as Coca Cola.
4. Direct-Store-Delivery: PepsiCo uses direct store delivery (DSD) for its supply chain and
distribution network, which ensures that independent bottlers and distributors deliver
beverages, snacks, and foods directly to retails stores. DSD ensures faster restock better in-
store promotion and maximum visibility.
WEAKNESS
OPPORTUNITIES
considering expanding into the alcoholic market after Coca-Cola Co announced they would
be introducing an alcoholic drink in the US market in 2021.
2. Expand E-Commerce: More customers are using digital channels for online shopping.
PepsiCo has the opportunity to exploit the benefits of online shopping by expanding its e-
commerce (mobile apps) and grow sales through these channels.
THREATS
1. Stiff Competition: PepsiCo’s profitability and market share are threatened by stiff
competition from Coca Cola, Nestle, Dr. Peppers, Unilever, and so on. The competition
also threatens long-term sustainability and profitability because it increases the cost of
protecting market share through adverts, promotions, and discounts to retain customers.
2. Economic Slowdown or Recession: Even though food and beverage consumer markets
are going strong, the possibility of a slowdown or recession soon cannot be ruled out. In case
of a recession, PepsiCo can incur losses because its product portfolio is concentrated with
products, which are usually among the first expenses to be dropped by consumers during
economic hardship. In the 2008-09 recession, Pepsi had to cut over 3300 jobs due to a
decrease in soft drink sales. The company was forced to scrap its full-year forecast for the
2020-2021 fiscal year due to uncertainties in the market. It scrapped its projection of 4%
revenue growth for the year in the first quarter of 2020 after its net income fell to $1.34
billion from $1.41 billion a year earlier.
THEORETICAL CONCEPTS
Meaning of Retail
Retail is defined as “Any business that directs its marketing efforts towards satisfying the
final consumer based upon, the organisation of selling goods and services as a means of
distribution.
Concepts of Retail
I. Customer orientation: The retailer makes careful study of the needs of the customer
and attempts to satisfy those needs.
II. Goal Orientation: The retailer has clear cut goals and devices strategies to achieve
those goals.
III. Value Driven Approach: The retailer offers good value to the customer with
merchandise having the price and quality appropriate for the target market.
Store channel: Stores offer a number of benefits to customers that they cannot get when
shopping through catalogues and the internet.
Catalogue channel: Convenience Catalogues, like all non-store formats, offer the
convenience of looking at merchandise and placing an order any day at any time from
almost anywhere. With a catalogue, consumers have the added convenience of not being
restricted to a place with an internet connection and a computer.
RESEARCH DESIGN
Introduction
Retail is an emerging sector in India. Marketers are leaving no stone unturned to influence the
customers by offering them in various ways, at various locations, in various forms resulting
in emergence of various retail formats throughout the country. Customers are highly
influenced by image of the retail outlet, its attributes, product range, variety, services,
employee’s behaviour, décor, music and marketing strategies. Retailing includes all the
activities involved in selling goods or services directly to final consumers for personal, non-
business use.
A retailer or retail store is any business enterprise whose sales volume comes primarily from
retailing. Any organization selling to final consumers—whether it is a manufacturer,
wholesaler, or retailer—is doing retailing. It does not matter how the goods or services are
sold (by person, mail, telephone, vending machine, or Internet) or where they are sold (in a
store, on the street, or in the consumer's home). In this study the researcher wants to know the
various factors that influence the perception of retailers towards Pepsi soft drinks in Dharwad
City.
Objectives of Study
i. To study the organization structure of the company.
Scope of Study
This study will help to understand retailers’ behaviour towards beverages and what they
acquire from Varun Beverages and this study will not only help me as a student but it will
also help Varun Beverages to improve its business strategy.
RESEARCH METHODOLOGY:
As the research design we used a sample of paper-back retailers in Dharwad. Two reasons
lead to this decision:
First, experts considered this market to be meaningful for research issues since retail controls
the channel of distribution, and although there are only relatively few manufacturers, the
number of product innovations is high, which makes it impossible for the retailer to gain an
objective overview of all the relevant information.
Second, the relatively small number of manufacturers made it possible to survey retailer
attitudes towards beverages.
RESEARCH QUESTIONS
To study the factors influencing retailers’ behaviour towards Pepsi in Dharwad. To find out
whether advertisements have an impact on retailer’s behaviour towards Pepsi. The researcher
carried out the study with descriptive research. Data source Primary data has collected
DESCRIPTIVE RESEARCH
It is well structured. It can be complex a high degree of scientific skill on the demanding a
high degree of scientific skill on the part of the researcher. It can be taken in certain
circumstances.
RESEARCH DESIGN
Research design is important primarily because of the increased complexity in the market as
well as marketing approaches available to the researchers. In fact, it is the key to the
evolution of successful marketing strategies and programmers...
CONVENIENCE SAMPLING
This type of sampling is chosen purely on the basis of convenience and according to
convenience. Researcher visited retailers, Kirana stores, Bakeries, Bar &Restaurants, Hotels
etc.
SAMPLING DESIGN
Survey for Retailer’s
Sampling techniques - Non probability sampling (Convenience)
Sample unit - Retailer’s those who are selling soft drinks.
Sample size - 50 retailers.
Method - Interview through structured Questionnaire.
Area of survey - Dharwad city
DATA-SOURCES-
There are two types of data Viz., Primary Data and Secondary Data. The primary data are
those which are collected a fresh and for the first time and thus happen to be original in
character. The secondary data, on the other hand, are those which have already been passed
through statistical process while doing our research I had taken the help of both primary data
as well as secondary data for analysing the results.
Retailers/Dealers (Cold drinks stalls, Ice-cream stalls, Hotels, Restaurants, Sweet shop, Pan
Shop, General Stores, Telephone Booths etc.) Depot internal Company’s Records etc.
METHOD FOR COLLECTING PRIMARY DATA
During survey the primary data collected from structured Questionnaire. In this survey
method a questionnaire is personally given to the respondent from the selected sample with a
request to answer the questions and return the questionnaire. A questionnaire consists of
number of questions relevant to the research problem, printed or typed in a definite order on
the form or sets of forms. The questionnaire is personally provided to respondents under the
guidance of the researcher, who are then expected to read, understand and write down the
reply in the space meant for answering various questions in the questionnaire itself.
Bar restaurant 1
Hotel 12
Other 6
Table No: 1 table showing the type of the outlets contacted for the survey
Na tu re o f bu siness
14
12
12
10
8
6 6
6
4
2
2 1
0
Kirana Store Statonary
0 shop Bakery Bar restaurant Hotel Other
Graph No: 1 showing the type of outlets contacted for the survey
Interpretation:
From the above graph, it can be seen that the Hotels are large in numbers, and next comes
others (pan shops, sweet shops) etc.
Kind of beverages
50
45 43
40 37 36
35
35 33
31
30
25 23
20
14
15 11 11
10 10
10
5
0
i a rs
oo
t aa ol
a w ps ice ng nt nd
a na da
Fr az -c de Pe Sl St Fa iri af so the
M co a in M Aq
u
ha
r O
Co nt Le
ou
M
Interpretation:
From the above graph, it is observed that the following beverages are kept in large stocks Pepsi
(43), Slice (37), Aquafina (36), Mountain dew (33), Lehar soda (31), other beverages are kept
in large stocks. Hence demand for Pepsi is more among customers and youngsters.
Mixed 0
Your own 5
Others 1
Table no. 3 showing brands of refrigerator
Brand of Referigerator
41
12
0 5
Interpretation:
From the above graph, it can be interpreted that retailers prefers to keep Pepsi (41) brand
refrigerator in their outlet followed by Coco-cola (12).
Interpretation:
From the above graph, it can be interpreted that retailers sold Pepsi (43) over Coco-cola(7) in
large quantities.
Schemes 3
Easy availability 43
Customer demand 10
Credibility 0
Table no.5 showing the reasons to keep the beverages
Interpretation:
From the above graph, it shows the reason as to why retailers keep beverages in an outlet which
is due to easy availability (43) and customer demand (7).
Pepsi 37
Coco-cola 8
Both 5
Table no.6 showing brand of cola providing more facility
Interpretation:
From the above graph, it is observed that the Pepsi (37) brand provides more facility over
Coco-cola (8).
Prize 1
Discount crates 37
Table no.7 showing kind of promotional activities
Interpretation:
From the above graph, it can be observed that to promote their brand the companies provide
discounts (37) on crates followed by schemes on free bottles (12).
0-1 crates 20
1-2 crates 20
2-3 crates 6
3&above crates 4
Table no.8 showing crates of Pepsi/Coco-cola sold per day
20 20
20
15
10
6
5 4
0
0-1 crates 1-2 crates 2-3 crates 3&above crates
Interpretation:
From the above graph, it shows the quantity of crates of Pepsi/ Coco-cola sold more per day.
Hence 0-1 and 1-2 crates are sold more compared to 2-3 crates (6) and lastly 3& above (4).
30
25
20
16
15
10
5
2
0
Pepsi Coco-cola 0
Both No signage
Interpretation:
From the graph, it can be observed that there is no signage (33) in the outlets. The amount of
signage of Pepsi (12) is more compared to Coco-cola. Whereas, in some outlets Pepsi brand has
provided signage (16) to the outlets and Coco-cola has provided signage (2) to very few outlets.
49
50
40
30
20
10
1
0
Yes No
Interpretation:
From the graph, it can be observed that the Pepsi beverages are not sold on credit basis (49),
because the delivery is done on cash on delivery basis.
Interpretation:
From the above graph, it can be clearly seen that the 250ml (45) volume is sold more followed
by 500ml (11), followed by 750 ml (11), followed by 1L (6) and lastly 2L (1). Hence people
buy glass bottle more compared to half litre or 1L.
Interpretation:
From the graph, it is observed that retailers sold Mountain Dew(40) in large numbers followed
by Pepsi(16), Leher soda(11), Sting(6) and Mirinda (2) .Hence demand for Mountain dew is
more among the customers followed by Pepsi and other beverages.
25
20
15
10
6
5
0
1 2 0
None
Graph no. 13
Interpretation:
From the above graph, the numbers of coolers of Pepsi and Coco-cola (28) are more in the
outlets compared to Coco-cola (6). Hence, both the brand has provided coolers to the outlets to
store their beverages
Beter Margins 8
42
Beter service 5
45
Beter Discount 6
44
More schemes 7
43
0 5 10 15 20 25 30 35 40 45 50
PEPSI COCO-COLA
Interpretation:
From the graph, it can be interpreted that Pepsi provides more schemes (43) whereas Coco-cola
provides less schemes (7). Better discount (44) is provided by Pepsi over Coco-cola.
Promotional activities (44) is done by Coco-cola. Better service (45) is given to retailers by
Pepsi compared to Coco-cola. Better margin (42) is given by Pepsi over Coco-cola.
Students 44
Children 12
Others 2
Table no.15 showing major customers of Pepsi
40
35
35
30
25
25
20
15 12
10
5
5 2
0
Professionals Employees Workers Students Children Others
Interpretation:
From the above graph, it can be seen that major customers of Pepsi brand are Students (44),
workers (35) and Employees (25), Professionals (5), Children (12) and others (2), so the
outcome is Pepsi is more famous among students and workers, followed by employees,
professionals and others.
30
25
20
15
15
10
0
Pepsi Coco-cola
Interpretation:
From the above graph, it can be observed that Coco-cola (33) brand is suffering from major
fluctuations followed by Pepsi (15). There is more demand for Pepsi in almost every season
unlike Coco-cola. But demand hikes in summer season.
Pepsi 42
Coco-cola 8
Table no.17 showing better pricing offers
Chart Title
45 42
40
35
30
25
20
15
10 8
5
0
Pepsi Coco-cola
Interpretation:
From the above graph, it can be observed clearly that the Pepsi (42) brand offers better pricing
offers compared to Coco-cola (8) brand and hence Pepsi is sold more than Coco-cola.
Q20.Effective advertising
Pepsi 44
Coco-cola 6
Table no.18 showing effective advertising
Effective advertising
50
45
40
35
30
25
20
15
10
5
0
Pepsi Coco-cola
Interpretation:
From the above graph, it can be observed very clearly that Pepsi (44) brand delivers effective
advertising compared to Coco-cola (6) which attracts the customers to buy its beverages and
hence it is sold more.
Pepsi 43
Coco-cola 6
Table no.19 showing product preferred
Product preferred
50
45 43
40
35
30
25
20
15
10 6
5
0
Pepsi Coco-cola
Interpretation:
From the graph, it is observed that retailers prefer Pepsi (43) brand over Coco-cola (6) brand
due to easy availability, better discounts, better schemes and effective advertising. Hence, Pepsi
is sold more to the customers
FINDINGS:
a. Pepsi brand beverages are easily available at bar and hotels and they are potential
buyers of Pepsi beverages
b. Pepsi refrigerators are kept at every outlet in Dharwad if compared to Coco-cola.
c. Due to easy availability and customer demand, Pepsi is kept at the outlets.
d. Pepsi provides more facilities to the outlets which make them keep the beverages of
Pepsi.
e. Glass bottle of 250 mL is sold at large quantities followed by 500mL, 1L and 2L.
f. Coco-cola is suffering from major fluctuations due to low demand and low service and
whereas, Pepsi has easy availability and has better schemes over Coco-cola.
g. Pepsi provides better offers compared to Coco-cola and hence Pepsi is stored at large
stocks in the outlets.
h. Pepsi advertises its brand in such a way that customers tend to buy their beverages
whereas Coco-cola brand do not have much engagement with the customers due to less
promotional activities.
i. Overall, Pepsi is preferred more over Coco-cola due to customer demand, easy
availability, more schemes, better discounts, better promotional activities.
SUGGESTIONS:
a. The Pepsi brand should provide signage to the outlets in order to advertise their
beverages.
b. Pepsi brand should come up with credit policies so that it makes it easier for the
outlets to stock the beverages.
c. Pepsi brand should also focus on improving schemes, so that more retailers are
attracted to buy the beverages at large quantities.
d. There are some outlets where the service frequency is very less compared to
other outlets so, they should focus on it in order to sell more beverages to the
retailers.
e. Pepsi brand should provide refrigerators to the outlets who are demanding it.
a.
CONCLUSION:
I learnt about organizational structure and I also learnt about retailers’ behaviour towards
beverage. I observed a close competition between Pepsi and Coco-cola through surveys.
Retailers are the important marketing channels paving way to better customer relationship.
Retailers play important role in increasing company’s profit and product preference. They are
the end of the marketing communication process providing effective reach of the product and
thus increasing brand value of the company.
Hence retailer need to be motivated for the effectiveness of organisation’s marketing
practises. In case of Pepsi retailers are motivated only to certain level. Hence Pepsi need to
focus on satisfying the retailers in selling Pepsi products as they are the valuable assets to the
organisation.
Pepsi should come out with more offers to satisfy the retailers. They need to focus on
building positive image regarding the product on retailer’s mind.
Hence, they need to concentrate on taste of the product and introducing new product line.
Retailers need to be rewarded with respect to the performance to the sales. Satisfied retailer
will always be the worthy asset to the organisation and thus increasing competitive advantage
over the rivalries.
BIBLIOGRAPHY
WEBSITE ADDRESS:
o https://varunpepsi.com/
o http://www.pepsicoindia.co.in/
o https://www.pepsico.com/
BOOKS REFERENCE
ANNEXURE
2.Nature of business?
□ Kirana Store □ Bar restaurant
□ Stationary shop □ Hotel
□ Bakery □ Other
3. What kind of beverages do you keep in your store?
□ Frooti □ Pepsi □ Mirinda
□ Mazaa □ Slice □ Aquafina
□ Coco-cola □ Sting □ Leher Soda □ Mountain dew
□ Fanta □ Others
4. Which brand of refrigerator do you keep in store?
□ Pepsi □ Your own
□ Coco-cola □ Others
□ Mixed
5. Which company of beverages are sold more?
□ Coco-cola □ Pepsi
6. What makes you keep Pepsi company beverages in your store?
□ Schemes □ Customer demand
□ Easy availability □ Credibility
7. Which brand of cola provide you more facility?
□ Pepsi
□ Coco-cola
□ Both
□ Workers □ others
18. Who is suffering from major seasonal fluctuations?
□ Pepsi □ Coco-cola
19. Who provides better pricing offers?
□ Pepsi □ Coco-cola
20. Which company has effective advertising of their products?
□ Pepsi □ Coco-cola
21. Overall, which product you will prefer?
□ Pepsi □ Coco-cola