RESEARCH PROJECT REPORT

ON
STRATEGIC ANALYSIS OF SOFT DRINK INDUSTRIES

KANPUR INSTITUTE OF MANAGEMENT STUDIES

(AFFILIATED BY A.P.J. ABDUL KALAM TECHNICAL
UNIVERSITY , LUCKNOW)

IN PARTIAL FULLFILMENT OF THE REQUIREMENTS FOR

THE AWARD OF
MASTER OF BUSINESS ADMINISTRATION
(2014-16)

UNDER THE GUIDANCE OF

(Mrs. RUBI DEWEDI)

SUBMITTED BY:
(DIVYA SINGH)
ROLL NO : 1471470038
MBA BATCH 2014-16

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CERTIFICATE
This is to certify that Ms. Divya Singh, Roll number 1471470038 , a student of MBA
in Kanpur Institute of Management Studies, has carried out the research work presented
in this winter training project report titled Strategic Analysis of Soft drink

Industries

for the award of MBA from APJ ABDUL KALAM TECHNICAL UNIVERSITY for the
academic batch 2014-16 , under my guidance.

Name of the Project Guide

Mrs. RUBI DEWEDI

Dean
Prof. Altaf Qaiyum
Kanpur Institute of Management Studies Unnao.

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DECLARATION

I, (Divya Singh), hereby declare that the project work entitled Strategic Analysis of
Soft Drink Industries . submitted towards MBA Certificate is my original work and the
dissertation has not formed the basis for award of any degree, associate ship, fellowship
or any similar title to the best of my knowledge.

Place:
Date:

(Divya Singh)
Roll No : 14714170038

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CONTENT
Introduction

Sales and marketing

What is the Pepsi sales & process?
Growth mapping
Importance of study
Scope of the study

History

History of Pepsi
History of Pepsi in India
History of Coca-Cola
Coca-Cola Marketing strategy in India
History of the Varun Beverages Ltd.

Organizational setup

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Product profile
Promotional activity
Product comparison Pepsi Vs Coke
SWOT analysis of Pepsi Vs Coke
Merchandising Policy
Distribution channels of

Varun Beverages Ltd.

Marketing strategy
Theoretical Perspective

Impact of different merchandising tools.

Visicooler
Visicooler is as AID
Impact of Visicooler on Sales

Data Analysis and Interpretation

Strategies adopted by Pepsi and Coke

Market share & Graphical representation

Findings

Survey report
Suggestion and Recommendations
Conclusion

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Introduction

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Introduction

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Sales and marketing

What is the pepsi sales process?
Growth mapping
Importance of study
Scope of the study

Sales and marketing

This section should describe the specific activities you intend to use to promote and sell
your products and services. Its often the work line in business plans, so its worth
spending time on it to make sure its both realistic and achievable.
A strong sales and marketing section means you have a
clear idea of how you will get your products and services to market.

What is Pepsi sales & process?

The PEPSI Sales Process is a best Practice selling strategy that is focused on business
improvement for both Pepsi and our customers. By following this Process, you help
customers recognize and take advantage of opportunities to grow their business and ours.
Based upon these opportunities, solutions are prepared to help customers realize the full
Potential of sales and Profits from the soft drinks category. Following this Process will
ensure that customers are aligned to your ideas and are committed to taking action to
grow their business.

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P.E.P.S.I. SALES PROCESS:1. PRESENT THE OPPORTUNITY

PURPOSE:

To engage the customer up front and discuss opportunities for

growing sales. Profit (intentionally postponing discussion of possible solution), and

to gain agreement .

KEY CONCEPTS:

An opportunity describes the potential for gain.

A solution describes the sales action required to realize the gain.

TACTICS:
1. Clarify you understanding of your costumers situation.
2. Offer information that describes the opportunity.
3. Make comparisons to demonstrate the opportunity.

TIPS:

Ask questions to determine customers actual performance and compare it

do desired performance

Use Fact about Soft Drinks to help the customer recognize the importance
and nature of the soft drinks category (see Appendix).

Use sales data or reference information (Route Books) to demonstrate

potential sales performance.

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Discuss observation that you have made.

Relate supporting information to specific customer needs. (If you dont

know what they are, then ask|).

Listen carefully to the customers response and build on the discussions.

TOOLS:

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Facts About Soft Drinks

Execution Planner

Solution Sheets

You Territory Team

Route Book

2. EXPLAIN YOUR SOLUTION & BENEFITS

PURPOSE:

To demonstrate that you have a viable solution, and that your

solution is the best (when other alternatives are considered).

KEY CONCEPT:

A solution describes the action, plan, or idea required to realize the gain
(opportunity).

Briefly describe how the solution meets the customers needs.

TACTICS:
1. In most cases your solution will consist of more than one element-always
present one idea at a time.
2. Talk about features and benefits.
3. Use your Solution Sheets, or other support material.

TIPS:

Present one idea at a time.

Use visual aids and testimonials to make your ideas credible.

Describe how the specific solution benefits your customer.

Use a pen to focus your customer on specific ideas when presenting from
printed material.

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TOOLS:
(PEPSI Sales Process Reference Guide)

A model for describing features and benefits.

Examples of buying signals

A set of best practices, or practical tips.

SELLING SKILLS
ACTIVE LISTENING

Look at the customer

Use physical gestures

Write notes

PROBING
Strategic Open ended

Tell me about

Tactical Open ended

Who, What, When, Where

Close Ended
Yes or No

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HANDLING OBJECTIONS

Identify the Real Objection

Understand the Objection

Resolve the Objection to the Customers Satisfaction using:

o Knowledge of the customer
o Fact Sheets
o Solutions Sheets
o Route book data
o Testimonial

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3. PROVIDE THE DETAILS

PURPOSE:

Now that you have communicated the benefits to your customer,

you should begin

Talking through the details of how the solution works, what the customer has to
do.

KEY CONCEPTS:

Provide detailed information regarding your solution.

TACTICS:
1. Focus the attention of the customer on your solution sheet.
2. Use trial close and look for buying signals from the customer.
3. Be prepared to address objectives as you review the datas.

TIPS:

Always maintain eye contact with the customer.

Use Visuals to show or demonstrate size if placing equipment.

TOOLS:

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Visual Aids

Solution Sheets

Products and packages

4. SECURE THE SALE;

PURPOSE:

After youve helped your customers recognize opportunities

and have presented that with solution, the logical next step is to ask for the
business.

KEY CONCEPT:

Trial closes are questions you can ask throughout the selling process to see
if the customer is buying what you are selling (e.g., What do you
think).

Identify what success looks like for the customer and how we will track
performance.

TACTICS:
(Before you ask for the business)
1. Build strong relationships with your customers.
2. Focus first on understanding the customers situation and needs.
3. Present viable solution (ones that address the customers unique situation and
priority opportunities).
4. Use trial closes throughout the selling process to ensure understanding and
help guarantee a yes when you do ask for the business.

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(When asking for the business)

1. Show the customer the next step in implementing the solution.
2. Provide alternatives from which the customer may choose.
3. Ask the customer directly if you can proceed with your joint plan.
4. Stop selling once the customer says Yes.

TIPS:

Maintain a positive attitude with the customer at all times

Ask questions to determine root issues.

Confirm your understanding of the objection before responding.

Objection is opportunities to understand your customer better use active

listening skills.

TOOLS:
(SEE REFERENCE GUIDE FOR P.E.P.S.I.)

More techniques for closing the sale

A list of common practices, or practical tips

Examples of buying signal

Implement Next Steps

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PURPOSE:

To clarify needs to be done to realize the full value of the

solution that you just sold the customer. Typically, this means the customer must do
something and we must do something to follow up.

KEY CONCEPT:

Secure a clear understanding of way needs to be done next.

TACTICS:

Explain what you will do.

Clarify what the customer needs to do.

TIPS:

Keep your body language relaxed and engaging you want to encourage a
dialogue, an open exchange of ideas.

TOOLS:

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Route Book

Solution sheets

 GROWTH MAPPING

1.

IDENTIFY THE OPPORTUNITIES.

2. DETERMINE THE PRIORITIES.

3. EVALUATE DIFFERENT SOLUTION.

1.- IDENTIFY THE OPPORTUNITIESPURPOSE: - To focus selling efforts on solutions that will help the customer
most by identifying opportunities that link directly to the key business drivers,
and to increase outlet performance by helping customers capitalize fully on soft
drink sales and profits.

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KEY BUSINESS DRIVERS & HOW TO MAXIMISE THEM:. Product (Distribution): Outlets must carry the appropriate range of products for
their channel, and products must earn the shelf space they are given.
. Promotion: Customers needs to use P.O.P. and extra displays to raise consumer
awareness.

. Presence:-

1) SPACE:

Be sure space is sufficient to maintain stock holding capacity,

and consider which brands are currently supported in the media.

2) MERCHANDISING:

Follow established guidelines to enhance the

appearance of displays and eliminate excessive sell-off between stock

replenishment.

3)

LOCATION: The primary display for PCC products should be

dominant with the competition, and other placement should be hightraffic positions.

Pricing: Monitor pricing on every call you makes.

KEY TERM: Best opportunities are those that capitalize on our products full
potential (maximizing sales and profit for customers). And that directly support
our business strategy.

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2. DETERMINE THE PRIORITIESPURPOSE: To arrive at the best opportunities-those that capitalize on our products
full potential (maximizing sales and profit for customer), and that directly support our
business

strategy.

PRIORITY SETTING GUIDELINES1. Product (Distribution)

2. Promotion
3. Presence
4. (Retail) Pricing

PRIORITY SETTING QUESTIONS1. What sales opportunities would satisfy the customer most?
2. What sales opportunity will result in the greatest increases in volume?
3. What sales opportunity is easiest to attain?

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TYPES OF PRIORITIES:. Those for which you can take immediate action (as part of
your Merchandising or Determine Order).
.

Those that you need to sell into the account (as part of your
next visits Presentation). For which you will probably have
to prepare.

3.- EVALUATE DIFFERENT SOLUTIONSPURPOSE: To determine which solutions will best improve the status of each
priority

opportunitys outlet.
SOLUTIONS BY BUSINESS DRIVRES
Product (Distribution):

Place POP material to attract consumer attention and build awareness.

Sell-in new listing.

Sell-in new package.

Promotion:

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Secure additional space within the fixture.

Secure display space beyond the normal fixture.

Ensure promotional materials are available and delivered.

Place an additional rack or display.

Ensure promotional POP, including pricing message is placed.

Communicate promotions to appropriate store personnel.

Implement local incentives [e.g., free prize draws (where possible)].

Increase stockholding within the outlet to meet demand.

Presence:-

MERCHANDISING

Correct merchandising layout.

Rotate product to ensure products are facing the consumer.

Merchandise out-of-stock conditions.

Reset shelf or cold vault.

Place POP material.

SPACE

Increases cold space. Place a cooler, dump bin or iced display.

Increases facing on top sellers to meet customer demand.

Target slow-selling competitor products.

Place additional racks and displays.

Secure space relative to your sales.

Increases space for category in relation to size of outlet.

LOCATION

Place PCC display equipment in any of the following high traffic location:
cash registers, snacks, sandwich counters, aisle ends, and places of waiting.

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Pricing

Place appropriate pricing/POP material to attract consumer attention.

Advise customers to allocate space to fast moving competitively priced

PCC brands.

Importance of the study

The 45 days summer training is very important for a student of MBA. This type of
study gives some practical knowledge to MBA students and practical knowledge is more
useful than theoretical knowledge for anyone.
There is no certain formula for any particular problem but the aim of this study is to
develop the ability of decision- making. Right decision at right time itself helps an
organization to run smoothly.
The training in any organization gives us an idea of different marketing activities and
emphasis is given on Promotional Activities Aspects and also it is seen how business
is taken tactfully when any problem comes to an executive. The way of problem solving
right decision making and knowledge of different types of marketing activities gives
much importance to study. Though, only in 45 days, it was not possible to understand it
so deeply but an overall idea would be developed.

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Scope of study

The market survey was conducted on Strategic Analysis of Coke Vs Pepsi. for Pepsi
in (Kanpur) with special reference to Pepsi India Pvt. Ltd.
This study was done at Varun Beverages Industry., Kanpur. The geographical slope of
my survey was Ltd to Faridabad only. Study aims at relationship between Company
Executive and dealer or retailer and why any dealer sold particular brand only.
The survey covers a wide range of activities and factors, which influence the dealer to
sell the Pepsi product.
The samples of respondents were taken to represent total Retailers of Faridabad Territory.
The validity of the findings of this survey is limited to the period during which the
field survey was conducted i.e. 45 days from 3rd May to 17th June.

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HISTORY

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History of Pepsi
History of Pepsi in India
History of Coca-Cola
Coca-Cola Marketing Strategy in India
History of the Varun Beverages Ltd.

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HISTORY OF PEPSI
There are 15 U.S. Pepsi bottling plants. The Pepsi trademark is

registered in Canada.

Silos sales rise to 38,605 gallons.

1974- First Pepsi plant opens in the U.S.S.R television ads introduce the new
Theme line, Hello, Sunshine, and Hello Mountain Dew.
1981- PepsiCo and china reach agreement to manufacture soft drinks, with
production beginning next year.
1982-

Pepsi free, a caffeine-free cola, is introduced a nationwide. Pepsi

challenge activity has penetrated 75% of the U.S. market.

1985- After responding to years of decline, Coke loses to Pepsi in Preference
tests by reformulating. However, the new formula is met with widespread
consumer rejection, forcing the re-introduction of the original formulation as
Coca-Cola Classic.
1990- American Music Award and Grammy winner rap artist Young MC writes
and performs songs exclusively for national radio ads for Pepsi. Ray Charles
joins the Pepsi Family by endorsing Diet Pepsi. The slogan is You Got the
Right One Baby.
1992- Pepsi-Cola launches the Got to Have It theme which supplants the
Longstanding Choice of a New Generation.
Pepsi-Cola and Lipton Tea partnership is formed. Pepsi will distribute single
serve Lipton Original and Lipton Brisk Products.

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1996- In February of this year, Pepsi makes history once again, by launching
one of the most ambitious entertainments sees on the World Wide Web. Pepsi
World eventually surpasses all expectations, and becomes one of the most
landed and copied, sites in this new media, firmly, establishing Pepsis
presence on the net.
1997- In the early part of the year, Pepsi pushes into a new era with the
unveilings of the Generation next campaign. Generation Next is about
everything that is young and fresh; a celebration of the creative spirit.
1998-

PepsiCo. Chairman and CEO Roger A.

Henrico donate his Salary to

provide scholarships for children of PepsiCo employees. Pepsi introduces Pepsi

one-the first one calorie drink without that diet taste!
2000- Although Pepsi is a great place to work place to place to work, Steven
Trust[aka struitt]takes his skills and hard elsewhere[for more money of
course!],therefore putting an end to his Pepsi page.

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HISTORY OF PEPSI IN INDIA

As an MNC, on the globe Pepsi Foods Ltd. One of the largest soft Wink
Companies in the world with its head quarters in New York.
Pepsi entered the Indian soft drink market in 1988 and began its production in
May 1990 and it was giving the local contenders the run for their money in
the soft market. It comes out with dazzling marketing innovation that rocket
the market line selling the product through function, Pepsi outlets. Pepsis
success in creating a brand almost from scratch in India is the stuff that
marketing case studies that is made of. Given the problems of doing business
in markets like ours, Pepsi entered the market as a under-dog. Its first even
advantage it entered before Coke returned-was considerable reduced by the
enormous export obligation stepped on the company. Yet right from the
begging, Pepsi demonstrated a far more focused approached. So while it
entered the market like and other MNC, it was quick to adapt. It realized that
consumers that consumers, particularly the youth, to whom it consciously
reached out would identify better with a brand that they see as global, yet
Indian, Pepsi was built as a desi brand. Hence its deliberat attempt to build
ad campaigns using the popular Hinglish.In the process, slogans like,

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YEHI HAI RIGHT CHOICE BABY. YEH DIL MAANGE

MORE-AHA AND YEH PYASS HAI BADI . Become part of
Indias popular consciousness. When Pepsi lost the bidding battle to sponsor a
Cricket tournament to Coke, the loss triumphs with the catch line, nothing
official about it. It cashed in on the untapped consumer aspiration in smaller
towns, the hinterlands of metropolitan cities and now a day the slogan which
is on air is YEH HAI YOUNGISTAN MERI JAAN.

It showed a rare ability not only to survive, but also grow through Indias
tortuous policy twists and turns. Which threw many other MNCs off balance?
Its top management team did not suffer from the frequent changes seen at
rival, Coke Consequently, it was able to unlike coke, which paid enormous
prices to prices to buy out established local brands, and Pepsi brought its own
stuff over, and pushed those aggressively with dealers, retailers and consumers.
Right now, it can bark its outstanding success in building a brand that has
become synonymous with soft drinks across the length and breadth of the
country.

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HISTORY OF COCA-COLA
In May 1886, Coca-Cola was invented by Dr. John Pemberton, a pharmacist from
Atlanta, Georgia. And the same year Coca-Cola was first offered as a Fountain
Beverages at Jacobs pharmacy by mixing Coca-Cola with carbonated water.
In 1887, Coca-Cola was patented, registered as a trade mark in 1893 and by 1895 it
was being sold in every state and territory in the United States.
In 1899, Coca-Cola franchised its bottling operations in the U.S., growing quickly to
reach 370 franchises by 1910.
In 1906, Cokes first International bottling plants opened in Canada, Cuba, and Panama.
By the end of the 1920s Coca-Cola was bottled in twenty-seven countries throughout
the world.

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COCA-COLA MARKETING STRATEGY IN INDIA

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Coca cola is one of the most widely known trade mark of the world.

It was there in India till 1977 but due to strong resentment against MNCS.

It was re-lunched again in 1993.

It has more than 230 beverages to its portfolio.

Core brand in India:-

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Sprite

Fanta

Limca

Thums-up

Diet Coke

Maaza

Minute-maid

Kinley [ mineral water]

Coca-cola

Segmentation:

Demographic

Psychographic

Geographic

Target Market:

Diet coke- Weight consciousness

Maaza- Kids, Juice loving people

Sprite- Young people

Thums-up- Confident, mature and uniquely masculine attitude people

Fanta- Girls and ladies

Positioning:It consists functional positioning strategy emphasize on-

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Price

Quality

Product feature

Marketing Mix-

Product:It consists of various brand packs and flavor.

Its product strategy promote all brand available in brand pack.
It also introduces the product in new flavor.

Price:To effectively achieve the stable balance between sales and covering the
production cost.
Company has priced the product as same as that its major competitors of the
market leader.

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Place-

Supply chain of Coca-Cola

C & F agent
Distributor
Retailer
Customer

Promotion:Top line promotion :- T.V ads , banner , Celebrity

Bottom line promotion :-

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Schemes , publicity material.

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History of the Varun Beverages Ltd.

PepsiCo entered India in 1989 and grew to become one of the countrys
leading food & Beverages companies. As one of the largest multinational
Investors in the country, PepsiCo has established a portfolio of brands that
seek to refresh and excite Indian consumers.
RJ corp. has been associated with PepsiCo since the latters entry into India.
In 1991, a license agreement was signed between the two companies and RJ
corp. became PepsiCos largest bottling business partner in India through its
entity, Varun Beverage Ltd.(VBL). We seek to serve our customers with a
passion to ensure Pepsi brands retain their position as market leaders in our
franchise areas.
The group manufactures and markets carbonated and Non-carbonated soft drinks &
package drinking water under the Pepsi brand umbrella.
includes iconic refreshment brands suchas-

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The Varun beverage portfolio

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Pepsi
Mirinda [Lemon]
Mirinda [Orange]
Mountain Dew
7UP
Slice [Mango]
Tropicana Twister
Soda [Lehar Evervess]
Aquafina [ Mineral water]

Scheme

: Pepsi, under Varun Beverages has offered a lot of scheme for sales

promotion.

Sales promotion schemes :

Free 2 bottle 200ml. on 1 case of 200ml.

Free 2 bottle 300ml. on 1 case of 300ml.

Following schemes:

Free 2 Bottles 600ml. On purchase of each case of 600ml.

One bottle 600ml on purchase of one case of 1Ltr. & one bottle 2 Ltr.
On purchase of one case of 2 Ltr.

Organizational setup-

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Product profile
Product comparison(Pepsi Vs Coke)
SWOT Analysis Pepsi Vs Coke
Promotional activities
Merchandising policy
Distribution channels of Varun Beverages Ltd.
Marketing Strategy

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PRODUCT

PROFILE
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PRODUCT PROFILE

S. NO.

No. OF PRODUCT

QUANTITY

COLOUR

FLAVOUR

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.

Pepsi Cola *
Pepsi Cola
Pepsi Cola
Pepsi Cola
Pepsi Cola(slim can)
Pepsi Cola(Can)
Mirinda(Orange)*
Mirinda(Orange)
Mirinda(Orange)
Mirinda(Orange)
Mirinda(Orange)*
Mirinda(Orange)
Mirinda(Orange)
Mirinda(Orange)
7UP*
7UP
7UP
7UP
7UP(Slim Can)
7UP(Can)
Mountain Dew*
Mountain Dew
Mountain Dew
Slice
Slice
Slice

200ml
300ml
600ml
2000ml
250ml
330ml
200ml
300ml
600ml
2000ml
200ml
300ml
600ml
2000ml
200ml
300ml
600ml
2000ml
250ml
330ml
200ml
600ml
250ml
500ml
1200ml
200ml

Burnt-Sugar
Burnt-Sugar
Burnt-Sugar
Burnt-Sugar
Burnt-Sugar
Burnt-Sugar
Sunset
Sunset
Sunset
Sunset
Tetrazin
Tetrazin
Tetrazin
Tetrazin
None colour
None colour
None colour
None colour
None colour
None colour
None colour
None colour
Mango
Mango
Mango
Mango

Cola
Cola
Cola
Cola
Cola
Cola
Orange
Orange
Orange
Orange
Lemon
Lemon
Lemon
Lemon
Lime
Lime
Lime
Lime
Lime
Lime
Lime
Lime
Mango
Mango
Mango
Orange,
Apple,

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Mango,
Pineapple
27.

Tropicana

1000ml

Orange

mixed.
Orange,
Apple,
Mango,
Pineapple

28.
29.
30.
31.
32.
33.

Tropicana
Tropicana Twister
Tropicana Twister
Soda (LEHAR evervess)
Soda (LEHAR evervess)
Aquafina

350ml
1200ml
300ml
300ml
600ml
1000ml

Yellow
Yellow
Yellow
...............

PRODUCT COMPARISON-

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mixed.
Orange
Orange
Orange
............
...............
.............

PEPSI

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COKE

PEPSI

7 UP & DEW

M. ORANGE

M. LEMON

SLICE

NIMBUZ

DIET PEPSI

LEHAR

AQUAFINA

COCA-COLA & THUMS UP

SPRITE
FANTA
LIMCA
MAAZA
MINUTE MAID
DIET COKE
KINLEY SODA
KINLEY

SWOT ANALYSIS OF
PEPSI Vs COKE

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STRENGTH:-

PEPSI PepsiCo brands enjoy a high profile global presence.

Pepsi owns the worlds best selling soft drinks brands.
Constant products innovation.
Aggressive marketing strategies using famous celebrities.
A broad portfolio of products.

CokeCoke brands enjoy a high profile global brand.

Four of the five leading brands.
Broad based bottling strategies.
47% of global volume sales in carbonates.

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Weakness:-

PepsiCarbonates market is in decline.

Pepsi is strongest in America & some other country.
They only target young people.

CokeCarbonates market is in decline.

Over complexity of relationship with bottlers in America & some other country.
The existing distribution is not so efficient for non-carbonates.

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Opportunities:-

PepsiIncreased consumer concerns with regard to drinking water.

Growth in healthier beverages.
Growth in RTD Tea and Asian bevarages.
Growth in the functional drinks industry.

CokeSoft drinks volume in the Asia pacific region forecast to increase by 45%.
Brands like Minute maid light and Minute maid premium heart wise are positioned
well with the health concerned market.
Use distribution strength in Eastern Europe and Latin America.

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Threat:-

PepsiObesity and health concerns;

Coca- cola increases marketing and innovation spending to $400M
Relying on North America only is bad.

CokeGrowing health-conscious society.

PepsiCo Gatorade Tropicana and Aquafina are stronger brands.
Boycott in the Middle East.
Negative publicity in Western Europe.

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globally.

PROMOTIONAL ACTIVITY

Promotional activities play a greater and important role in the marketing effort carried
out by PEPSI CO. It is for more create and maintain its products.
Purposes of its promotional activities are the following:

(1)

Point of Purchase:

A sensible man does not have to go for too find out whatever a common Panwala
knows that people buy with their eyes. Every item of sell in a shop is displayed in
front where people can see it at the first sight. It is the same with all the shops in
selling all products.

(2)

Special event market:

The Dealer at special event sport places the banners and stall of Pepsis products. It
like picnic, cricket match, social activities are used to cater the people which helps in
promotion of sale.

PROMOTIONAL ACTIVITIES CARRIED IN PATNA

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Point of purchase (POP)

Special events (Fair show, Road show etc.)
Hoarding
Newspaper, TV, Radio etc.

MERCHANDISING POLICY
In todays fast moving industry and highly competitive market, only those products are
likely to be purchased which are capable of hitting the impulse of the consumer. The
products appeal should be able to penetrate and get embedded into the perpetual space
of the consumers mind. The concerned product should induce to the consumers. Pepsi
believes that Jo Dikhta Hai Wahi Bikta Hai i.e. any product which is bound to be
sold.

METHODS OF MERCHANDISING

Visicooler placement
Glow signboard
Painting
Crate Stacking
Umbrella Display
Banners
Display
Special delivery

DISTRIBUTION CHANNEL

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To make its products available at the right place, at the right time in the market, at the
right place, the sales department of the company plays major attention towards
controlling the channel of distribution.
The company right from its beginnings stage maintains single type of
marketing channel. The nature of channel is as follows:

COMPANY
DISTRIBUTORS
RETAILERS OR DEALERS
CONSUMERS

ABOUT DISTRIBUTORS:

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At first, soft drink is supplied to distributors; Retailers or Dealers cannot take the
delivery from the company. They have to take it from their respective of nearest
distributors. The distributors selected on basis of assurance given by them regarding
minimum sales, which they have mentioned annually. The selection is also done on the
financial Position and reputation of distribution in the market. As for the example, first
priority is given to those people who are in cigarette business. Depending upon market
each distributor in its initial stage, deposit some security money. This amount varies
between five thousand to ten thousand. The distributors at first have to seek the
permission to the sales department for the number of cases of soft drinks required by
them. After getting for the proper authority from the sales department, they take the
delivery from the shipping department paying the requisite either in cash or as demand
draft.
The distributors can be dropped if they fail to achieve the required target of
sales.
The supply of soft drinks to the distributors depends upon the ups and downs in the
sales. But, in the initial stages, the distributors have to sell up to a minimum target set
by the company or as decided by an agreement between the company and the
distributors. In the last stages soft drink is supplied as and when demanded by the
distributors.

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ABOUT RETAILERS OR DEALERS:

The distributors select the retailers. There is no relation between the company and its
retailers. On the other hand there are no definite and fixed Criteria for the selection for
appointment of retailers from the side of distributors. Any one like, Cigarette shop or
any other shopkeeper can have the stall fir the sale of soft drinks and they are called
retailers or dealers. They have to give assurance of the concerning distributors for better
sales and at the time or taking delivery they have to deposit the security that is the
change for the empty bottles with specified purchasing price.

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MARKETING STRATEGY

Marketing strategy is the complete and unbeatable plan designed specifically for
attaining the marketing objective of the firm.

The market strategy is not able idea. It is a well-outlined plan, and there are
different ways to formulating it. Mainly it has two steps.

Selecting a Target Market: Assembling the Marketing mix, actually, the target
marketing and marketing mix together constitute the marketing strategy of the
firm.

When the Pepsi Food Company entered in the Indian soft drink market. The
market was already prevailed by coke and previously it was Parle, Pepsi tried to
establish in India with a unique marketing policy, Pepsi took into consideration of
youth segment target market.

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91

ASSEMBLING THE MARKET MIX:

A product, place, service and promotion (4ps) that the firm blends to produce the
response it wants in the target market. These are as follows:
1. Product: That could meet the identified needs of chosen
consuming groups.
2. Price:

The amount of money charged for a product or

service or the sum of the values that consumers exchange for

the benefits of having or using the product of service.
3. Place: There should be a good transportation and warehousing
facility of a product.
4. Promotion:

It

consists

of

measures

like

programmed 4Ps policys of the Pepsi product:

Product:
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personnel

setting

There are three lines of products of soft drinks are produced in Varun Beverages Ltd.
That is matched with international quality product Line. These are followings: Pepsi: - 300ml, 600ml, 2000ml,

250ml

(slim

can), 330ml (can),1000ml.

Mirinda:-250ml(slimcan),300ml,330ml(can),600ml, 2000ml,1000ml.
7UP :250ml(slimcan), 300ml, 600ml, 2000ml,

, 330ml (can),1000ml.
Mountain dew :- 250ml(slimcan),300ml,330ml(can), 600ml, 2000ml
Slice: 250ml, 500ml, 1200ml.
Tropicana: - 200ml, 1000ml.
Tropicana Twister: - 350ml, 1200ml.
Soda (LEHAR evervess):- 300ml, 600ml.
Aquafina (Mineral water):- 1000ml.

Price:
Pepsi charges the reasonable prices for a product to the dealers/retailers against
their competitors and has positioned their products their market.

Place:
Pepsi has strong channel of distribution that command the distribution work.

Promotion:
Pepsi has taken variety of techniques of sales promotion. Like for example
sales promotion letters catalogs point of purchase display etc.

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Following are some promotional activities of Pepsi:

Schemes:

Pepsi under Varun Beverages Ltd. has offered a lot of scheme for sales

promotion.
These are followings;

2ooml (per case) -2 bottles of 200ml (free).

300ml (per case) -2 bottles of 300ml (free).
600ml (per case) 2 bottles of 600ml (free).
1Ltr (per case) - 1 bottles of 600ml (free).
2Ltr (per case)

1 bottles of 2Ltr (free).

Theoretical perspective

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Impact of different merchandising.

Tools.
Visi cooler.
Visi cooler is as AID
Impact of Visicooler on sales.

IMPACT OF DIFFERENT MERCHANDISING TOOLS

In todays era of competitions only a products can be sold with a good merchandising
tools. In Varun Beverage Ltd. there are two basic objectives for Applying different
Merchandising tools. To generate more sales and maintain an image of its products.
Promotional activities are the following: Free bottles scheme.
Rack display.
Umbrella display.
Visi coolers.
Price cut offer

VISICOOLER:
This is a unique tool for merchandising the different brand of Pepsi. This is the
LIVE AID

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which helps to get the customer Purchase

TYPES OF VISICOOLER:SIZE (in litres)

220
300
300
400
400
400
650
1200
1200

TYPES
4 Shelves
4 Shelves single stack
4
4
5
5
6
5
6

Shelves Double stack

Shelves
Shelves Thinner
Shelves
Shelves
Shelves
Shelves

VISICOOLER IS AS AID:

ATTRACTING the customer.

INTEREST in customer.

I
D

stands for

stands for creating

stands for DESIRE to

purchase.
It brings the PEPSI within the reach of the customer. It is novel way to DISPLAY the
BRANDs in the retail outlet.
It can be considered as a grand P.O.P. (point of purchase) material.

VISICOOLER offers unique advantage in sales promotion & merchandising:1. STYLISH

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2.
3.
4.
5.
6.
7.
8.
9.

ATTRACTIVE
HYGIENE
MODERN
CONVENIENT
UNIFORM
COLOURFUL
EASY TO STOCK
EASY TO DISPENSE
DIFFERENT IN SIZE
10. VISIBILITY
VISICOOLER gives the sense of FEEL GOOD & FEEL COOL to the customers.
VISICOOLER is the STATE-OF-THE-ART way to handle give service to a retailer
promptly at any given time.
VISICOOER maintenance in very handy as it should be as per the guidance of product.
It should be quickly and timely organized & inspected as per cooler execution guide &
SKU & It should charge as the norms of p-o-g.

Sale of Pepsi product is depending upon VISICOOLER. And impact of visicooler

on sales is depending upon three (3) factors.

VISICOOLER PURITY.
EFFECT OF VISICOOLER PURITY ON SALES.
VISICOOLER CHARGING.

1) VISICOOLER PURITY- the Sales of Pepsi product is totally

depending upon visicooler because any product is half product when it is in
godown. From godown they are supply to different outlet. Their responsibility
of supplying product to different area is depend upon PSR (pre sales
Representative).They are called Root agent. When they reach to the outlet, the
merchandiser whose work is to pure visicooler according to the planograms.
Visicooler should be maintained as per the guidance of planogram, because
until and unless visicooler is not pure it cant attract consumers.
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2.)

EFFECT OF VISICOOLER PURITY ON SALES :

As we

discuss further visicooler purity consumers and increase ability to consumer

which ultimately effect on sale.

3.)

VISICOOLER CHARGING:

Visicooler should be fulfiled with

Pepsi product & no space should be left or there should not be other product.
(coca-cola)
sale of Pepsi product depend upon different factors-

Visicooler location should be in proper way which can be seen easily

by the users & attract them.

Visicooler should be cool because summer products & each & every
product should be cool.

Impulse product It is not necessary for drink despite

of this it

spreads over in market.

SKU [stock keeping unit] should be full. Each & every outlet should
get proper SKU.

Display of product should be good which can be easily attracted by the

user.

THERE

ARE

TOTAL

54

SKUs

COMPANY & THEY ARE:-

1.) PEPSI:- 5 SKU

2.) MOUNTAIN DEW:- 4 SKU
3.) 7 UP, MIRINDA, SLICE :- 19
4.) TROPICANA:- 16 SKU
5.) TWISTER;- 2 SKU
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SKU

OF

PEPSI

PRODUCT

IN

6.) SLICE:-

3 SKU

Data Analysis and Interpretation

91

Strategies adopted by Pepsi and Coke

Market share and Graphical Representation

Findings

STRATEGIES ADOPTED BY PEPSI & COKE

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PEPSI:- Despite being a global brand, Pepsi has built its success on meeting the
Indian consumer needs, particularly in terms of making the brand synchronize with
localized events and traditions. Instead of harping on its global lineage, ergo, it tries to
plug into ethnic festival, use the vernacular indifferent part of the country and blend into
the local fabric. Pepsi is using both national campaigns such as the Drink Pepsi, Get
Stuff Scheme, which offers large discounts on other products to Pepsi buyers as well as
local.

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COKE:- Instead of creating a bond with the customers through small but high impact
events, Coca-Cola choose to associate itself with national and international mega events
like the world cup cricket 1996, and world cup football 1998. But now Coke is also
entering into local action. Coke is also trying to make their brand synchronize with
localized events, traditions and festivals. Coca-Cola new tagline in this advertisement is
Real shopping Real refresher. In this way we can say that Coke is copy Pepsi.

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RESEARCH METHODOLOGY

Secondary Data collection tools have been employed. The different books, researches
and articles relevant to the subject have been perused and an analysis has been
carried out.

Data from other countries has also been analyzed in comparison to the

situation in India. I have taken data from the different sites of companies.

Type of Research to be undertaken:

Primary Data Collection Method
Secondary Data Collection Method

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Secondary Data Collection method

Information gathered from Different Sites of the companies.
Information gathered from TRAI Website.

Secondary Data:
It refers to the statistical material which is
not originated by the investigator himself but obtained from someone else's records, or
when Primary data is utilized for any other purpose at some subsequent enquiry it is
termed as Secondary data. This type of data is generally taken from newspapers,
magazines, bulletins, reports, journals etc. e.g. if the data published by RBI on currency
National Income, Exports or Imports, is used in some other statistical enquiry, it will be
termed as Secondary data.

According to M.M. Blair:

"Secondary data are those already in existence for some other purpose than the
answering of the question in hand."

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Sources Of Secondary Data

As is the case in primary research, secondary data can be obtained from two different
research strands:

Quantitative: Census, housing, social security as well as electoral statistics and

other related databases.

Qualitative:

Semi-structured and

focus groups transcripts, field notes, observation

records and other personal, research-related documents.

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A clear benefit of using secondary data is that much of the background work needed has
already been carried out, for example: literature reviews, case studies might have been
carried out, published texts and statistics could have been already used elsewhere, media
promotion and personal contacts have also been utilized.

This wealth of background work means that secondary data generally have a preestablished degree of validity and reliability which need not be re-examined by the
researcher who is re-using such data.

Furthermore, secondary data can also be helpful in the research design of subsequent
primary research and can provide a baseline with which the collected primary data
results can be compared to. Therefore, it is always wise to begin any research activity
with a review of the secondary data

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Merits:

Use of secondary data is very convenient.

It saves time and finance.

In some enquiries primary data cannot be collected.

Reliable secondary data are generally available for many investigations.

Demerits:

It is very difficult to find sufficiently accurate secondary data.

It is very difficult to find secondary data which exactly fulfils the need of present
investigation.

Extra caution is required to use secondary data.

These are not available for all types of enquiries.

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LITERATURE REVIEW

Literature review stands out as the main tool of the research study. Data related to the
Telecommunication Sector was meticulously collected. Sources of data include books,
newspapers, economic magazines, research reports of various educational institutes and
internet. A wide range of research reports on the Telecommunication sector of the
economy have been examined. Research papers and articles from different

leading

institutions of the country have been thoroughly studied. Articles in the newspapers
and

relevant data to the subject have also been examined in detail. In addition,

studies conducted by market and business institutions have been analyzed. Important
literature available on internet has also been surfed.

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DATA ANALYSIS

MARKET PERCENTAGE SHARE IN ADVERTISEMENT-

91

91

More effective advertisement-

91

MARKET
INDIA-

91

PERCENTAGE

SHARE

IN

ALL

OVER

FINDINGS

Pepsi has made an impact in all over India. Most of the people they are
going to prefer brand.

Pepsi has built a brand image about itself due to good positioning of its

product and quality.

Only Pepsi provides new scheme and offer.
The route agent and sales representative give the information about new

scheme and offer to the dealer or retailers.

Most of the dealers or retailer demand visicooler to keep only Pepsis

products.
There is lack of display material like board, banners, glow signs etc. in

most of the areas of Faridabad.

VBL [Pepsis] one of the company that gives highest trade margin.
There is the number of exclusive counter of Pepsi that is more than their

competitor.
The demand of 200ml. bottles is more.
2ltr bottles of Pepsi are sold more than 1.5ltr bottles.

The above study elicits that sales department of Varun Beverages Ltd. should
introduced

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DEMAND OF PEPSI Vs COKE IN PEAK SEASON (May

,June, July , 2014)

PEPSI DEMAND -

91

COKE DEMAND -

91

SUGGESTION & RECOMMENDATIONS

The company Executive should develop a healthy relationship with the

retailers.
As most of the dealers have complaints that the salesman does not tell
them about schemes. For this before launching any scheme mentioning

the period of the scheme and time-to-time proper check is required.

Timing of route vehicles for delivery of goods should be 8 am for

proper catering in the entire route

efficiently.
Company should make fridge available at maximum outlet and repairing
of its misleaders [refrigerators] and glow signboard, which are out in
an outlet up to the level, thus it is parallel of even better than

Competitor.
Proper supply of all brand of Pepsi.
The commitment of supplying gifts items or incentive should be carried

out on or before the schedule time.

The distribution should keep literate and experienced sales man because

they can convince to retailers easily and the product in the market.
The company should supply its banners sign board etc.

an

advertisement media impartially to all the areas which will as usual

become sales promotion tool for them.

Distributor and retail outlet feedback should be taken time to time as
to trace the actual existing problem related to there and the peak
seasons.

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CONCLUSION

The majority of dealers or retailers deal in all brand of Pepsi & Coca-

Cola.
It has observed that a Coca flavour leads the other entire flavours with

a high margin in the market.

A taste of the soft drink is like key determination of the consumption.
The study reveals that the immediate steps are not taken in the
repairing of Visi cooler . The rival Company Coca-cola is very quick in

this
Just
The
The

area and efficient also.

in time and efficient delivery is affected.
demand of Coke exceeds the demand of Pepsi.
Varun Beverages Ltd. Pays attentions in different marketing

function also. These are:

1. Anticipating & recognition of demand
2. Stimulation of demand
3. Satisfaction of demand

Companies at certain interval market survey to evaluate demand trend.

Consumption pattern & nature of growing competition in spite of the
fact the soft drinks have already high & stable demand.
So, company undertakes different promotional schemes to enjoy
them. I had confirmed my study to different specified direction. As for
Varun Beverages Ltd. It can be said that it does not have any major

91

draw back in marketing activities; still, more efficient distribution by

dealers & more effective sales executive & sales forces are required.
Though, the overall grip maintenance is satisfactory & company can
retain share & also can upgrade it.

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References

(a) Marketing Management, The Millennium Edition

(b) Marketing Management
: Ram swami
(c) Marketing Research

: G.C.

Berry
(d) Published Materials

: Economic

Times

Internet Website:
www.pepsi.com
www.coca-cola .com
www.google.com

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: Philip Kolter