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ALOCHANA SINHA
as I pen down this acknowledgement take this opportunity to thank all without
whose effort the completion of this project would not have been possible.
I would like to convey my sincere thanks to Mr. Sunil Sharma who offered me
I would also like to thank all those people who helped me during my work.
PREFACE
As a part of MBA from GIMT INSTITUTE OF MANAGEMENT AND TECHNOLOGY,
Greater Noida. Project was carried on the topic of Comparison between PEPSI
Product. This company IRD is a licensing company of India. This project has
Full flash summary of research product of Pepsi can be studied in this project.
CONTENTS
Executive summery
1-An Overview of Soft Drink Industry
Introduction
Industry Profile
A brief History of Indian Soft Drink Industry
2-More Information
Pepsi cola- the origin
How Pepsi made
What ingredients are in Pepsi products
Pepsi strategies
3-Organisation Structure
Distribution System
Pepsi Product and price mix
4-Project-A
Introduction
Research Objective
Sources of data
Methodology
Pie and bar Charts
Result
Graphical representation of strength of Pepsi
5.Project-B
Introduction
Research Objective
Sources of data
Procedure of mirinda lemon promotion
Bar and pie Graph
6.Conclusions
7.Bibliography
EXECUTIVE SUMMARY
The project analyzes the increase outlets in the given route of Pepsi and also
find the increase sell due to these outlets. This project also throws light on the
status of Pepsi outlets with respect to coca-cola in terms of no. of outlets,
cooling equipment, signage (glow sign, dealer board and painting) and display
of racks in the whole urban region of Greater Noida, Noida . Through this
project I also came to know how capable the Route Agents are in giving the
dealers the required service.
I derived conclusions about certain important issues through my project
report. These could be of a great help to the company. The project identifies
foundations aspects of the soft drink market like the demand and supply of the
Pepsi products. I also came to know about the various consumer and dealer
level schemes, which were active during the season. I have also brought in some
useful suggestions, which matter, to the most of the dealers.
One of the major launches of the company was the introduction of Mountain
Dew and the re-launch of the un-cola brand the 7up that gave a tough
competition to Coca-Cola's Sprite. The Mountain Dew was promoted on the
country level through the dew mobile van, which was the 1st prize in the
Mountain Dew contest. Local promotion was also done to boost the sales.
Moreover cutting down the prices gave the accelerated boost to the sales of
various soft drinks.
In the project-2 we know what is the market value of the mirinda lemon in the
schools canteen. How much kids like this soft drink and we will know how we
make scheme successful in the market with the help of marketing tools.
INTRODUCTION
INDUSTRY PROFILE
Today India is one of the most potential markets. With a population of around
1000 million people, the Indian soft drink market is now 280 million cases per
year. But in the year 1995 the Indian soft drink market is only 96 million cases
per year. So there is 30% growth in the soft drink industry if the demand
continues growing at the same rate, within 10 years the volume could touch 1
billion cases. In India there are huge populations coupled with low
consumption can only lead to an increase in the soft drink market. Another
reason for an increase in the soft drink is the scorching heat and the climate of
India, which is suitable for high sale of soft drink. These two major reason for
multinational companies entering India. All these factors are the reason for the
entry of two giant of the soft drink industry of the world to inter the Indian
market. The Cola Giants - Pepsi & Coke, together control almost 96% of the
entire Indian market, while companies like Cadbury’s Schweppes and Campa
Cola has only share of 4%. But was the scene same in 20 years ago? The
answer is no. 1970 was the year of pure drinks (Campa Cola) and Parle people
(Thums Up & Limca). So what is the reason behind the Pepsi’s continuous
growth and success? To find the answers let us study the history of soft drink
industry in India.
It all began in 1977; a change in government at the center led the exit of Coca
Cola that preferred to quit rather to dilute its equity to 40% in compliance
with the foreign Exchange Regulations Act (FERA). The first national cola
drink to popup was Double Seven. In the meantime, Pure Drink, Delhi, on
Coke’s exit, switched over to Campa Cola.
The beginning of 1980’s saw the birth of another cola drink, Thumps Up. Pale
the Gold Spot people launched it in 1978-79, as “Refreshing Cola”. By the mid-
eighties, Mc Dowells launched Thirl, and by the late eighties there was double
cola, which entered Indian market, as a NRI- run outfit with its plant in Nasik
(Maharastra). In 1978, Parle led the Indian soft drinks market (share 33%)
with its Gold Spot & Limca Brands. Later Thumps Up also started
contributing to its growth .In 1990 the total share of parle increased to 70%. At
the same time in 1987, Pure Drinks share came down to 21%, as a result of
growing popularity of Limca &Thums Up. At the same time the threat to the
Indian soft drinks market was that of fruit drinks. In 1988 fruit drinks market
was valued at Rs. 40 crores and grew at the rate 20%.
The second proposal encompassed the following activities:
Agro research center (costing Rs. 1.55 crs)- PepsiCo’s agro expertise would be
combined with India Know-how & the findings implement in the field. Here the
focus would be on developing improved varieties, optimum production
technologies and seed multiplication, initially for potatoes& oilseed crops.
A potato-and-grain-based processing unit (costing Rs. 8 crores)- It would
produce ready-to-serve food products in long life consumer packages for all
ake exports to other non-traditional items. Total foreign exchange was
estimated at 50% of the total outflow for machinery, raw materials, dividends .
The export-import ratio was hiked to 5.1.PepsiCo. Would have an equity
holding of 39% Punjab Agro Industries Corporation (PAIC)-20% and Voltas
24%. The balance to be financed Privately from loans. The project will also
directly employ 500 people, and was expected to generate additional
employment of 30,000 people. Thus the project was benefiting thousands of
farmers in the predominantly agricultural state of Punjab. The proposal was
strongly supported by Voltas
Chairman Mr. A.H. Tabaccowala and Mr. Ramesh Vengal, Director business
development, Pepsi cola International. The Project was strongly opposed by
Mr. Ramesh Chauhan, Chairman Parle Exports. The Project was faced
objections from Food and Civil suppliers, who argued that India should be
promoting fruit juices and not carbonated soft drinks.
A project approval board was finally set in February 1988. 50 Members of
parliament supported the memorandum, while other 50 opposed it. On August
1988, Punjab Government convened a meeting of political leaders in
Chandigarh, where the politicians unanimously backed project. Now the
project was a revised deal that was negotiated by PAIC on the behalf of three
partners. The new formula include:
Every dollar spent in import, the company would ensure a return of $ 5
through the export of processed foods. The 1:5 ratio was reduced unparalleled
in Pepsi’s operations in all 150 countries in Soviet Union and China Pepsi
operated on 1:1 deal. The ratio earlier proposed was 1:3. Pepsi’s share which
have been originally just under 40% was reduced to about 35% and PAIC’s
share was hiked to 40%. These were mainly the issue on which Coke had left
India in 1977.
Thus Pepsi not only accepted the 1977 conditions, but also went much further.
Now the Pepsi project had captured the farmer’s imagination. Finally there
was victory for Pepsi who after more than five years of acrimonious battle was
launched in June 1990 selectively in Rajasthan, Punjab, Utter Pradesh and
South as “ Lehar Pepsi”. On August1990, television viewers watch prime time
ads launched Lehar Pepsi beckoning nearly 100 million viewers to drink the
Indian version of international Pepsi Cola. Now Pepsi Cola had arrived in
India and was ready to war with Thump’s Up in its home market. Starting out
in 1989, with the name of ‘ Lehar Pepsi’, the company has grown leaps and
bounds ever since, with competition increasing with the re-entry of Coke a few
years ago. Thanks to an early lead and a better understanding of the market,
India remains amongst the handful of markets worldwide Pepsi is ahead of its
archrival coke.
Despite being the global brand, Pepsi has built its success on meeting the
Indian customers needs. Pepsi has made its brand synchronize with localized
events and tradition. Pepsi maintained its top-of-mind awareness with roadside
signage and reminders. The partner type relationship with bottlers (Franchisee
Owned Bottling Operations [FOBO]), as well (Company Owned Bottling
Operation [COBO]) networks cover most of the company adequacy. CEO, Mr.
‘Suman’ Sinha, explains the relationship with his bottle as” We don’t have
bottle; we have partners. And listen to them. Which is why we have a well
aligned bottling network.’’
One of the strongest weapons in Pepsi’s armory in the flexibility it has
empowered its people with. In Pepsi every employee, may he be a manager or a
salesman, have an authority to take whatever steps he or she feels will make the
consumers aware of the brand& increase its consumption. Thus Pepsi believes
in establishing & nurturing creditability of the salesman & making the joint
commitment to grow business in accounts. All these factors together led to a
high growth in the Indian market & constantly increasing market share.
Coca-Cola entered India by buying up to 69% of the 1,800-crore soft drink
market (i.e. 5 Parle Exports brands of Thump’s Up, Limca, Gold Spot, Citra &
maza ). Today the scene has changed marking it a direct battle between two
giants Pepsi Cola & Coca- Cola. The picture will become clearer by looking at
the all India market shares in the beverage industry.
In year 1898, in North Carino, Mr. Caleb Bradhan, who was a druggist by
profession invented a new beverage, which was called “Brands Drink”
(evocation of a digestion- aiding enzyme pepsin), soon became popular with the
people. This Brands Drink was later named as “Pepsi Cola”.
In 1930 Pepsi started its operation with its head office in New Ireland city,
NewYork. The very basic strategy used by Pepsi was the price competitiveness
i.e. 5$. In the same year 1st slogan for Pepsi was introduced. 1940 show a new
start for Pepsi in South America & Egypt. 1950 Pepsi saw a change to a classy
image. 1959 Saw a new beginning for Pepsi in USSR. 1960 saw Pepsi turning
for a youth image by targeting the youth to catch the Pepsi sprit. Year 1965
marked the success story for Pepsi Company, when it merged with Frito-lay to
constitute Pepsi Co. International with the coming together of Don Kendall &
Herman Lay.1970 saw some major ad campaigns that started the youth idols
like Richard, Michael Jackson etc. 1986 was also a historic year for Pepsi Co. in
which it acquired Kentucky fried Chicken Chain at a price of $ 846 million.
With this take over, Pepsi Co. catapulted itself to become the owner of the
worlds largest restaurant chain with a total of nearly 16500 outlets in 1987.
In India Pepsi was launched in June 1990 selectively in Rajasthan, Punjab, and
U.P. & SOUTH as “Lehar Pepsi”. 1991 saw a major launch of 7Up & Mirinda
in India. 1993 was a new beginning for Fountain Pepsi (PMX). In 1995 two new
COBOs were opened In U.P. & Gujarat. 1996 Mirinda attained no. 1 position
in Orange beverage category. May 1998 saw a major launch of Mirinda Leman
in India. June 1999 saw a major launch of 500 ml Pet in India and Pepsi blue
and mountain dew in 2003.
HOW PEPSI MADE
In the last step of the manufacturing process, as the now rinsed cans reach the
filler, they're reinvented, immediately filled and the lid is applied -- at an
average speed of 1,200 cans per minute. The filler is where the syrups from the
mixing tanks are combined with the purified water from the filtration process.
The liquid is then carbonated. This carbonation process gives soft drinks the
special sparkle -- fizzy bubbles -- that adds to their quality of refreshment.
WHAT INGREDIENTS ARE IN PEPSI PRODUCTS?
Pepsi-Cola products contain natural flavors, including extracts of the kola nut,
vanilla beans and flavor oils derived from natural sources such as citrus and
other fruits. Caramel (made from corn sugar) adds colour and flavor to our
cola’s. Other ingredients add a refreshing taste: phosphoric acid in cola’s;
citric acid and sodium citrate in Mountain Dew, Slice and Diet Pepsi. Every can
and bottle of Pepsi-Cola products has a Nutrition Facts panel, which shows the
number of calories and other nutrients per serving. There is essentially no fat
in any Pepsi-Cola products. The main ingredients found in Pepsi-Cola products
include carbonated water, carbohydrates, sugar, sodium, potassium and
caffeine.
Sugar: Regular soft drinks and sports drinks are sweetened with sugar. There
are many types of sugar available today. In soft drinks and sports drinks, the
sugar is primarily high fructose corn syrup, which comes from corn. About half
the sugar has been converted to fructose so that the taste is almost identical to
table sugar (which comes from sugar cane or sugar beets). Our bodies treat all
of these sugars in the same way. Sugars are listed in grams per serving on the
Nutrition Facts panel on the label.
Sodium: All of our products are "low sodium" and contain less than 110 mg
per eight-fluid- ounce serving. A number of beverages have less than 35 mg
sodium per serving, so they are considered "very low sodium" products.
naturally found in coffee, tea and chocolate. For comparison, an 8 oz. cup of
brewed coffee can have from 85-120 mg of caffeine on average, while an 8 oz.
serving of Pepsi contains about 25 mg of caffeine. An 8-oz. cup of coffee
therefore contains three to four times as much caffeine found in a caffeinated
cola. There is no caffeine in Caffeine-Free Pepsi, Caffeine-Free Diet Pepsi,
Fruitworks, Aquafina, Slice, MUG Root Beer/Cream Soda, Sierra Mist or
Caffeine-Free Mountain Dew.
PEPSI STRATEGIES
History shows that a truly outstanding brand, carefully nurtured, can drive
healthy growth for many years —maybe forever. So rather than try to manage
a large number of small brands, we’ve built highly focused portfolio offering
many of the world’s best-loved foods and beverages — muscular brands with
enduring appeal. The appeal of our brands spans every time of the day, every
consumer age group and every demographic category. Our brands also serve a
wide range of consumer needs, from fun and indulgence to health and
nutrition. With time-starved consumers hungry for convenience, our brand
lineup gives us boundless opportunities, around the clock, even in our most
developed markets. In the United States, for example, we’ve captured only
about a quarter of the morning convenient eating and drinking occasions. And
the fact is, in any part of the day, we have lots of room to grow.
Exceptional Value
We realize no one has to buy our products. So we know that we must provide
those products at prices that consumers consider a good value. To do that we
maintain a maniacal focus on reducing costs and finding better ways to make,
move and sell our products. Providing products at prices that appeal to
consumers drives growth, scale efficiencies and ultimately success— for
PepsiCo and its retail customers.
Striving For Perfect Quality Every Day
We design and manufacture our products with one overarching goal:
excellence. Our people care deeply about our products, and a visit to any of our
plants or other facilities makes that very clear:
• At Pepsi we have long been committed to the “Pepsi Challenge” because we
know we have the product consumers prefer, and we are proud of it.
• Since its birth at the University of Florida in the 1960s, Gatorade has been
dedicated to providing thirsty athletes the finest dehydration drink on the
market — no compromise.
• Warehouse Distribution
For some of our products, traditional warehouse distribution is as effective and
more economical than DSD. Under this system, third-party distributors move
our products to stores, and store employees stock the shelves.
Without question, innovation is the single greatest driver of growth for PepsiCo
and our product categories. After years of making innovation a high priority,
PepsiCo has experience and capabilities unrivaled in our industry. Pepsi-Cola,
a longtime leader in new products and packaging, the beauty of innovation is
the way it differentiates our products in the marketplace. New products and
packages — or changes to existing ones — give consumers exciting new reasons
to buy our brands. Equally important, innovation gives retailers a great new
reason to feature them prominently. That’s a big competitive advantage. So we
grab every opportunity to differentiate our products through innovation. For
example, Mountain Dew Code Red, a new version of Mountain Dew “with a
rush of cherry flavor,” hit the market in 2001 and became one of the most
successful new soft drinks ever.
Great People
The last competitive advantage of PepsiCo I’ll mention is less tangible, but
every bit as fundamental to our success. It involves people and values. I believe
that, as a company, we are defined by our relationships with you — our
employees, our partners, our customers, and our consumers and, of course, our
shareholders. Our destinies are very directly linked: As we grow, you should
grow as well. We are going to grow as long as we continue to attract, develop
and retain world-class people. As part of this effort to have a world-class team,
we strive to foster a diverse and inclusive work environment — one that allows
all our employees to achieve professional growth and fulfillment, without
regard to gender, ethnicity or other differences. That provides two very
important benefits. It helps us attract bright, talented people from a wide range
of backgrounds. It also helps us serve an increasingly diverse population of
customers and consumers.
STRUCTURE
Business Unit
COBO FOBO
Cobo stands for company owned bottling Operations, the company has total
control of its decisions & the implementation but it has to invest its own
money on plant and machinery, glass & infrastructure. Jainpur, Sathariya
& Bazpur are the COBO’s serving unit.
Jainpur is serving Lucknow & Kanpur. Sathariya is serving Gorakhpur,
Allahabad & Banaras. Bazpur is serving Bareilly.
Jainpur is the third largest COBO plant in India. It has three production lines,
mentioned as under.
• Kettner – 600 Bottles Per Minute (BPM) - Carbonated Soft Drink (CSD)
• Sasib- 400 Bottles Per Minute (BPM)- Carbonated Soft Drink (CSD)-Multi
serves
• Slice Line – 200 Bottles Per Minute (BPM)
The COBO structure is as under.
• Pepsi Food Limited (PFL)
•PepsiCo India Holding (Production &Plant)
•PepsiCo India M k t (Support Infrastructure, Marketing Sales& distribution)
In U.P. there are six warehouses at the following places.
ALLAHABAD BANARAS
BAREILLY GORAKHPUR
KANPUR LUCKNOW
FOBO: Fobo stands for franchise Owned Bottles Operations in India Pepsi
has franchise. In case the company supplies its soft drink concentrate to its
bottle syrup. Pepsi has taken a more capital-intensive route of owning and
running its own plants alongside those of its franchises.
Getting into Fobo has helped PepsiCo on several fronts. First, it has enabled
Pepsi to focus on marketing operation as much as it has an operational front.
Another gain of (bottles)& infrastructure the cost burden has been reduced.
There are FOBO’s in many cities in India some of them are at:
DISTRIBUTION SYSTEM
CE DISTEBUTOR
TDM CE
TDM
FLOW OF STOCK
MARKET
PLANT WAREHOUSE
DISTRIBUTOR MARKET
Mirinda
Orange 200 ml Glass 104 5*24 =120 16
300 ml Glass 130 6*24 =144 14
330 ml Can 330 18*24 =432 102
500 ml Pet 330 15*24 =360 30
1 litre Pet 276 25*12 =300 24
1 litre Glass 108 20*6 =120 12
1.5 litre Pet 396 35*12 =420 24
2 litre Pet 342 40*9 = 360 18
Lemon
200 ml Glass 104 5*24 =120 16
300 ml Glass 130 6*24 =144 14
330 ml Can 330 18*24 =432 102
500 ml Pet 330 15*24 =360 30
1.5 litre Pet 396 35*12 =420
Mountain Dew Un-cola
200 ml Glass 104 5*24 =120 16
500 ml Pet 330 15*24 =360 30
2 litre Pet
7up Un-cola
250 ml Glass 104 5*24 =120 16
300 ml Glass 130 6*24 =144 14
500 ml Pet 330 15*24 =360 30
1 litre Pet 276 25*12 =300 24
1.5 litre Pet 396 35*12 =420 24
2 litre Pet 342 40*9 = 360 18
Slice Mango
250 ml Glass 130 6*24 =144 14
200 ml Tetra 220 10*24 =240 20
Orange 200 ml Tetra 220 10*24 =240 20
Leechi 200 ml Tetra 220 10*24 =240 20
The retailer pay all the expenses to make cold to the product in the profit which
they are getting, like electricity bill, ice, other tool to make visible to the Pepsi
product, company already providing cooling equipment.
PROJECT-A
Introduction
Every year some outlets increase and due to these outlets some sell also
increase, Pepsi Company always try to increase the competitive strength in the
market, because competitors also use all tools which are capable to increase the
strength, So Pepsi and its competitors provide cooling equipment, ice boxes,
glowsign, dealer board, paint the outlets, give racks to the retailers to visiualise
the products
Research Objective:
Sources of Data:
The type of Research design use in this survey is descriptive in nature and
method of data collection is Primary Data. I collect primary data through
direct communication with retailers and through observation with the help of
questionnaire.
A common strategy was used for achieving the objective in the market covered.
The points taken into consideration are listed below: -
1- Visiting the retailers & assuring him of the benefit that they can be get
by selling & increasing the sale of the Pepsi.
2- Listening to their problems related to visi coolers, wall painting, glow
signs, display board etc. are communicated to the concerning authority
for complete removal.
3- Where ever possible the problems concerning the retailers were solved
immediately with the help of customer executive, at the outlets itself.
4- The retailers were informed about the schemes & the various incentives
available on the bulk purchase of Pepsi’s products.
The survey was conducted in various markets in Greater Noida & Noida
namely:
Direct Routes
135
grossory
convenience
restaurant
After collecting the data I find out the increase outlet and increase sell in the
given market by the following formula.
Method For calculation of increase outlet of the route
New outlets
Percentage of new outlets in 2006 = *100
Total outlets in 2006
Maa Traders
increase outlets
32
275
old outlets
89% 11%
To
old outlets
new outlets
2 crates in a day
7%
3%
5 crates in a day
10crates in a day
20crates in a day
Old sell in 2005 - 242 crates (per day)
12%
88%
old sell
new sell
Sector 16 MARKETING
87
322
old outlets
21%
79%
old outlets
new outlets
To find out the increased sell
Percentage of outlet of sample No of create purchase by outlets
75% 2
15% 5
7% 10
3% 20
15%
75%
2 crates in a day
7%
3%
5 crates in a day
2 crates in a day
10 crates in a day
Old sell in 2002 - 285 crates (per day)
77%
old sell
new sell
MUSKAN AGENCY
increase outlets
286
old outlets
26% To
find
out
74% the
old outlets
new outlets
increased sell
Percentage of outlet of sample No of create purchase by outlets
75% 2
15% 5
7% 10
3% 20
15%
75%
2 crates in a day
7%
3%
5 crates in a day
2 crates in a day
10 crates in a day
Old sell in 2002 - 254 crates (per day)
26%
74%
old sell
new sell
Sector 20
increase outlets
17
180
old outlets
91% To
9%
old outlets
new outlets
15%
75%
2 crates in a day
7%
3%
5 crates in a day
2 crates in a day
10 crates in a day
Old sell in 2002 - 160 crates (per day)
91%
9%
old sell
new sell
Gamma Market
Percentage increase 30 %
increase outlets
36
102
old outlets
0 20 40 60 80 100 120
26%
To
74%
old outlets
new outlets
20%
26%
74%
old sell
new sell
Alpha Market
Outlets in 2005 - 29
Increase in outlets -3
increase outlets
3
old outlets
29
0 5 10 15 20 25 30 35
91%
To
find
9% out
the
old outlets
new outlets
increased sell
Percentage of outlet of sample No of create purchase by outlets
30% 2
20% 5
30% 10
20% 40
30%
20%
2 crates in a day
20% 5 crates in a day
2 crates in a day
30%
40 crates in a day
Old sell in 2002 - 91 crates (per day)
2006
91%
9%
old sell
new sell
Central Market
Outlets in 2005 - 55
Increase in outlets -3
increase outlets
3
old outlets
55
0 10 20 30 40 50 60
95% To
5%
old outlets
new outlets
25%
20%
2 crates in a day
25% 5 crates in a day
2 crates in a day
30% 25 crates in a day
Old sell in 2002 - 142 crates (per day)
95%
5%
old sell
new sell
Spice PVR
Outlets in 2005 - 48
Increase in outlets -3
increase outlets
3
old outlets
51
0 10 20 30 40 50 60
94% To
6%
old outlets
new outlets
25%
20%
2 crates in a day
25% 5 crates in a day
10 crates in a day
30% 25 crates in a day
Old sell in 2002 - 142 crates (per day)
95%
5%
old sell
new sell
increase outlets
1117
old outlets
19%
81%
old outlets
new outlets
18%
15%
2 crates in a day
5 crates in a day
56% 11% 10 crates in a day
22 crates in a day
Old sell in 2002 - 1656 crates (per day)
19%
81%
old sell
new sell
RESULTS
From the earlier graphical representation we have interpreted the following
results:
In this each dialer survey we find that the market strength of the Pepsi increase
in terms of increase outlets and increase sell as follows;
1.Total increase outlet in the Greater Noida & Noida =
23.63% of total outlets in 2005
Or
Or
This result shows it is a very good growth rate for Pepsi, so we can say this
summer was the Pepsi’s summer.
We also find out competitive strength of Pepsi in the terms of
painting as follows-
GRAPHICAL ANALYSIS
Status
pci
25%
mix
ccx pci
59% ccx
16% mix
The numbers of Pepsi Exclusive Outlets are having a 25% share among the
total outlets hence Pepsi holds a very strong position in the whole city of
Greater Noida & Noida
140
120
cooling equipment comparison
100
80 pci
60
ccx
40
20
0
65 ltr 100/120 ltr 110ltr Visi 165 200/200 ltr 220 ltr Visi 330 ltr Visi 520 ltr EBC helkam a fam ily
EBC ltr/fam ily EBC fridge
fridge
Pepsi leads in the number of Cooling Equipments installed of each type, hence
the great FMCG fundamental principle supports Pepsi’s sales in the city, which
says that, “Jo Dikhta hai Who Bikta Hai”
iceboxes
38%
pci
62% ccx
Pepsi and Coke are neck to neck in the no. Of Ice Boxes distributed.
25
21
20 18 18
15 13
pci
11
10 ccx
9
10 8
5
2 2
1
0
0
unlit Standard 6*3 unlit costomised Backlit Standard Backlit frontlit Standard frontlit
or 8*3 6*3 or 8*3 costom ised 6*3 or 8*3 costomised
100 85
53
pci
50
18 ccx
5
0
6*3 8*3
Pepsi also leads in Dealer boards but is getting challenge from Coca Cola in
many places like Sector 18 , Sector 20 etc
55 painting comparison
60
50
40 34
28 29
30 19
20 9
10 2 2 0 0 0
0
pci
>250 sq >500 sq >1000 >2000 30007 ccx
ft. ft sq ft sq ft above
pepsi again leads in paintings. Painting is done in places where there is a lack of
electrical supply or village sort of areas. In ashu agency and parts of muskan
agency Coca Cola has proved to be a big challenge for Pepsi in terms of
paintings
racks comparison
pci
43%
ccx
57% pci
ccx
In the distribution of racks both the companies are neck to neck in distribution
of racks. But Pepsi is way ahead in distribution of racks in its direct routes.
SWOT ANALYSIS
STRENGTHS
Good brand image Celebrity endorsement like Indian Cricket Team.
WEAKNESS
Poor Grievance handling, as there is no proper channel of communication
between the distributor, and retailers so new schemes are not communicated at
the right time.
The Route Agents are less trained and many a times refrain from the
work and only go to particular shops.
Since there are only two company officials who take charge of the cooling
equipment complain handling, many of the complains remain unsolved in the
peak season.
Many a times the route agents do not explain the schemes to the dealers and
contests results are not declared to the dealers which results in a bad
impression of the company.
The company warehouse and the agencies does not have a good Information
Technology (IT) backup as the database of outlet’s is not available completely
anywhere.
OPPORTUNITIES
There are many dissatisfied dealers of Coke available in the city, which can be
tapped.
There are many rural markets and other areas where the company vehicles
cannot make the supply. A FAT dealer must tap these areas.
Fountain machines of Pepsi should be placed at convenient places like
cinema halls or shopping complex’s etc.
Big departmental stores are opening in the city, which can be tapped.
Since Greater Noida & Noida is a industrial city in a big way and
also many people are business class the opportunity for opening outlets
remain evergreen
THREATS
New bottling plants of companies like Sawan and Prince are
manufacturing cold drinks, which are available at lesser rates than ours
are a big threat as un-educated and disloyal customers especially from
the rural region are more attracted towards them.
FAT dealers are a big threat to the company as they are providing
Pepsi products in the rates much lower than the company and hence
dealers prefer buying from them.
Pepsi and coke is the two players in the beverage market and also the best of
warriors against each other in the soft drink industry. Both Pepsi & coke
provide sales promotion schemes time to time.
Due to these promotion and scheme and other factors the no of outlets
increases every years and sell also increase, after doing this project we can say
Pepsi on the very good growth stage, this year was the very good year for
Pepsi Company defeating in the every field of the marketing, not only in the
terms of no of outlets but also in terms of cooling equipment, iceboxes, dealer
board, signage, racks and painting also.
SUGGESTIONS
This project did by me; to find out the competitive strength of Pepsi in terms of
outlets, sell, cooling equipment, iceboxes, dealer board, racks, signage and
painting. On the basis of the conclusions following measures could be
recommended in order to increase market share and Pepsi’ equity.
MAA TRADERS
This agency situated in the Sector 20 , Sector 18 etc
Agency needs some more vehicle, which can move in the roads very
easily, Agency must be contain some small vehicle to improve supply.
Company gives there more signage, painting because there is only one
Glowsign in the whole maa traders.
Ramesh is doing very well but the area which covering is very large
So agency must minimizes the route of him, so he can supply every day to
the retailers.
Company makes proper advertising and promotion scheme to increase
the sell, and make easy procedure to install the Pepsi and cooling
equipment and give scheme to install cooling equipment.
ASHU AGENCY
This agency covering the area of Sector 18, Sector 20 etc
Mr. Tiwari doing very well in route 1 but the same thing route is very
large, and there are many big restaurent in the route, so agency send one
person to the Sector 20 side and other person can cover Greater Noida
In this area there are other brand also like Sawan, Prince ,So Company
try to improve brand image.
DIRECT ROUTES-
In Sector 18 there is very hard competition with Coke, the reason is
aggressive selling of Coke, to developed relationship with the retailer, so
company must change there attitude in this area.
Company can make big distributor counters, which cover rest area with
the tempo or other vehicle.
In direct route Sector 18& sector 20 , there are many offices , so
company can capture them.
These routes are very good for tetra pack and Aquafina, so company can
do joint sells promotion with other product like tea, ice cream.
BIBLIOGRAPHY
Boyd, Harper, W.Jr. and west fall, Ralph, Marketing research, and 7th
ed., Richard D. Irwin, Inc. (A.I.T.B.S.0, New Delhi, 1998
Kothari, C.R., research methodology, 2nd ed., wishwa prakashan, New
Delhi, 1999.
Kotler, Philip, marketing management. 10th ed., prentice- hall of India