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day’s the marketing people think about how they can satisfy need of
making your product available at the right time at the right place.
What extent the product is in arm’s reach of customer. All the works
2
ACKNOWLDGEMENT
Mr. Amit Srivastava, who gave their full support and corporation
Manushree Chaudhary
MBA (IB)
3
CONTENT
PREFACE 2
ACKNOWLEDGEMENT 3
TABLE OF CONTENTS 4-5
EXECUTIVE SUMMRY 6
CHAPTER 1:-
INTRODUCTION 7
OBJECTIVE OF THE STUDY 8
SCOPE OF THE STUDY 9
CHAPTER 2:-
INTRODUCTION 11-15
OVER VIEW OF THE COMPANY
-BRAND PEPSI 17-18
-PEPSI MISSION 19-21
COMPANY PROFILE
-PEPSI BACKGROUND 23-25
-PEPSI COMPANY OVERVIEW 26
-MISSON OF THE COMPANY 27
-PEPSI CARES 28-31
-OUR COMMITMENT 32-36
-PEPSICO INTERNATIONAL 37-38
-PEPSICO INDIA 39-40
-PEPSICO FINACIAL POSSION 41-43
-MARKET SHARE 44-50
-BRANDS OF PEPSICO 51-58
-UP COBO 59-61
-BIRTH OF TROPICANA 62-68
4
CHAPTER 3:-
METHODOLOGY 69-70
SPECIMAN OR QUESTIONNAIRE 71-72
ANALYSIS 73-88
FINDINGS 89
RECOMMANDATION 90
CONCLUSION 91
BIBLOGRAPHY 92
5
EXECUTIVE SUMMRY
in other part of India, they have also turned to packed juice available in
open market: this kind of packed juice perceived as more safe and
Industry”.
During the summer training we found out the modern trade market capture
Tropicana is little bit expensive than others so some consumer who belong
to medium and lower family do not want to pay more money for the same
product available in less price in the market but in some cases customers are
very careful about their health, therefore they pay money and buy only
branded juices.
6
INTRODUCTION
student who is doing MBA .It important because during the summer
training the student interact with organization and they learns how the
employee should behave with each other. Student learns all the things
like the way of sitting, the way of talking and the way of impress to
Pepsi co India holding ltd. In Lucknow. A project was given me and the
and was suggested to make a good project report so that it can helpful for the
organization .
7
OBJECTIVE
satisfaction.
Lucknow.
8
SCOPE
The research work aims at studying the sales of Tropicana and other
packed juice is being used by different people and thus finding the market
While studying this we have to analyze whether the customer are satisfied or
dissatisfied by the company of packed juice and what are the reasons of
provide the customer with its solution, which would be free of all the reason
of dissatisfaction.
9
Company Introduction
10
INTRODUCTION
Any drink that is not hard liquor can be referred to as a 'soft drink' however, in
this piece 'soft drink' refers to carbonated, sweetened beverages also known as
Why did people want to drink carbonated water? Well, because bubbling water
was equated with health. Mineral baths had been popular at least since the times
of the ancient Romans. If the waters were good to soak in, the reasoning went
Scientists searched for the mysterious cause of these bubbles, and then,
determining carbon dioxide to be the answer, sought a way to infuse plain water
with this gas. Thanks to the efforts of such scientists as Joseph Priestley and
John Nooth, this feat was accomplished. Carbonated water was for sale by the
end of the 1700s; this is how pharmacies, which will prove important later, get
into the picture, by being the supplier of the health-inducing carbonated water.
The urge to flavor this sparkling water came quickly. And the ability to add
flavors were keeping pace; in 1784 citric acid was developed from lemon juice. By
1833, carbonated lemonade was for sale in England. Forty years later, ginger ale
became a popular drink; clear, rather than cloudy like ginger beer, it was a more
attractive beverage. Lemon's Superior Sparkling Ginger Ale has the distinction of
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Four years later, in 1875, pharmacist Charles Hires and his bride spent their
honeymoon at a New Jersey farm, where they enjoyed an herb tea made largely
of wild roots. The next year, after experimenting with these flavors on his own,
he offered his "Hires Root Beer Extract" at the Philadelphia Fair. By 1886, it was
available in bottles.
1886 is a key year for soft drink history for other reasons too: Coca-Cola, Dr
Jacob's Pharmacy of Atlanta, Georgia, became the debut site for Coca-Cola.
was sold on a trial basis to William Venable, the counterman at Jacob's. Venable
added a shot of the syrup, made in part from the leaves of the coca plant and the
caffeine-laced juice of the kola nut. In his first year of business, Pemberton made
twenty-five dollars, which didn't quite pay for the almost seventy-five dollars he
spent in advertising.
Moxie, which rivals Coca-Cola in these early years, was the drink with a
difference--the main ingredient is not carbonated water, but rather, the herb
The Old Corner Drug Store in Waco, Texas, introduced the artificially flavored
black cherry drink called Dr. Pepper, the "King of Beverages, Free from
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Caffeine". (Caffeine would be added later.) There are, according to the Dr.
Pepper Museum, fifteen stories that tell who developed it and how the drink was
named. Most agree that either Robert Lazenby, a chemist and Wade Morrison,
the pharmacy owner, created the drink. Whatever the facts, the two quickly
became partners in the beverage business. The name allegedly comes from
confederate army doctor Charles Pepper, the man that refused to permit
Morrison to marry Miss Pepper. A few years later, Clicquot Club Ginger Ale,
named for famous Champagne, became the first nationally advertised soft drink.
In 1903, Pepsi-Cola, created as a cure for dyspepsia, went into business. Royal-
Crown Cola debuted in Columbus, Georgia in 1905. Canada Dry Ginger Ale was
introduced in 1908 by John McLaughlin. Its appeal was largely in its pale color;
First World War nearly shut down this burgeoning industry; the US Food
shortages. Prohibition (1920-1933) gave it a big push, however. Once hard liquor
of bottled sodas helped the drink find a place at home, as opposed to only
The industry was dealt a double blow when Prohibition ends since the
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Depression was in full swing. Many smaller companies went out of business. 7-
Up, which was debuted in 1929 as Lithiated Lemon, began to advertise itself as
a great mixer for hard liquor in 1933 when Prohibition ended. Canada Dry
followed suit in 1936, weathering the crisis by developing Tom Collins mix, tonic
mixer that combines the syrup and water automatically, providing a uniformity of
flavor that individual soda fountains couldn't achieve. Pepsi-Cola began selling
preferred by the competition. In 1939, this lead to Pepsi's most famous jingle:
During World War II, the US Food Administration limited the access to soft drinks
to the general public. However, the soldier's morale wasn't allowed to suffer so
their access to the sweet drinks was guaranteed by the building of overseas
plants.
The 1960's saw the beginnings of the diet drink industry. No-Cal Ginger Ale was
the first diet soft drink, and was created in 1952 by Kirsch Beverages of
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Brooklyn, New York. Saccharine-sweetened, it was designed for diabetics, not
dieters. Its distribution remains local. In 1962, Diet-Rite Cola, from the Royal
Crown Company, was the first drink sold nationwide. It was sweetened with
cyclamates. Coca-Cola introduces Tab the following Year. Diet Pepsi went on
the market in 1965. In the 1980s, manufacturers started using aspartame, under
the trade name Nutra-Sweet. Consumers liked the more 'natural' taste.
In the 1980s, caffeine-free versions of soft drinks became more popular as well.
Jolt Cola, in the late 1980s, reacted as a backlash movement, proclaiming that it
has twice the caffeine as regular colas. Despite popularity on college campuses,
it never became the household name that the more established companies enjoy. In
the
1990s, clear versions of popular soft drinks enjoyed a brief fad. Fruit juice based soft
The soft drink industry has grown steadily since its beginnings, and has
constant adaptation and market research, they anticipate and meet the public's
ever-changing taste.
15
OVERVIEW OF
PEPSICO
16
BRAND-PEPSI
carries many association in the mind of the brand ambassadors like Shahrukh
Khan (Pepsi khol milega role, „Oye Bubbly. ) Pepsi logo like so. These
companies strive to build brand strength that is strong favorite brand image.
Putting focus on brand we can reveal out that branding is done by repetitive
enforcement in the psyche of the customers and all the companies try their best
so as to win the loyalty of the customers by satisfying their wants not only
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completely but perfectly. This is the MANTRA for not only building brand but also
customer retention. We can consider many cases like vegetable oil is still called
brand. Similarly TATA is using new formula for branding by using the punch line
Namak ho to Tata namak. Places are branded by their exclusive assets like
Agra by TajMahal.
, direct marketing, public relations but the most important and integral group that
has impact on the branding of goods or services is on its best when the
expectations of the customers are met by the company. The element of quality
PEPSI as we know has a very good market in Indian market .It is very valuable
and demanding brand .In case of Kanpur city it is also a very demanding brand
in cold drinks .There are several brand Pepsi offers ,all its brands are in demand.
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PEPSI MISSION
At Pepsi, the mission statement is very simple; “We have absolute clarity about
Our success will ensure: customers will build their business, employees build
their futures and shareholders build their wealth.” The goals and strategies of
value on results, and helps the company understand whether today.s actions will
contribute to our future or harm it. Empowered people means employees have
the freedom to act and think in ways that they believe will get the job done, while
being consistent with the processes that ensure proper governance and being
mindful of the rest of the company.s needs. Responsibility and Trust is about
earning the confidence that other people place in the company. Responsibility
means they take personal and corporate ownership for everything they do. Pepsi
builds trust between employees and others by walking and talking and being
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The employment structure at Pepsi is a combination of a tall and flat
other and on their own, but yet they all still report to a supervisor above who
located in Purchase, New York, about 45 minutes north of New York City. The
current CEO is Steven S Reinemund and the company employees over 153,000
employees worldwide. The hiring procedure for Pepsi varies based on the job
desired, an interview process is the norm, but the more important the position
within the company the more interviews, reviews, and aptitude/ability tests are
administered.
Pepsi has an extremely diverse portfolio, which includes much more than soft
drinks. Under the Pepsi brand the portfolio contains: Pepsi/Diet Pepsi, caffeine
free, vanilla, twist, lime and wild cherry. Also there is Mountain Dew, Diet Mt
Dew, Caffeine free, Code Red, Pitch Black, and Live Wire. Sierra Mist, Sierra
Mist Free, Mug Root Beer, Lipton Brisk Tea.s Lemon, Raspberry, Fruit Punch
are also included on the soft drink side. Pepsi also owns Tropicana, which
includes orange juice and flavored juices. Also in Pepsi.s portfolio is Lay.s,
which includes Frito.s, Cheeto.s, Lays Potato Chips, Tostitos, Doritos, Sun
Chips, Funyons, Ruffles, and all the different flavors of these products. Quaker
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is also in Pepsi.s diverse portfolio with items such as Captain Crunch cereal,
Quaker Oats, and Gatorade. Also included are the Starbucks brand items such
Cookies.
Pepsi currently has a 26% hold on market share in the soda industry, making
them number two behind Coke. Pepsi is also the category leader in Sports
drinks, chilled juice, bottled water, ready to drink tea, enhanced water, and ready
to drink tea. They are number two in energy drinks as well. The following is a
simple comparative income statement for Pepsi from 2003-2004, followed by pie
charts representing the numbers graphically, all values are in millions except for
employees, our business partners and the community in which we operate and
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COMPANY PROFILE
22
PEPSI’S BACKGROUND
Pepsi-Cola was first made in New Bern, North Carolina in the United States in
the early 1890s by pharmacist Caleb Bradham. On August 28, 1898, "Brad's
drink" was changed to "Pepsi-Cola" and later trademarked on June 16, 1903. As
Pepsi was initially intended to cure stomach pains, Bradham coined the name
In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore into a
rented Warehouse; this year Bradham sold the original recipe included the
enzyme pepsin is disputed.7,968 gallons of syrup. The next year, Pepsi was sold
In 1905, Pepsi received its first logo redesign since the original design of 1898.
race".
In 1923, PepsiCo went bankrupt due to high sugar prices as a result of World
War I, assets were sold and Roy C. Megargel bought the Pepsi trademark. Eight
years later, the company went bankrupt again, resulting in a reformulation of the
Pepsi-Cola syrup formula.In the following years, the drink gained in popularity
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and in 1934, debuted the 12-ounce drink.
In 1964, the Diet Pepsi variation of the drink debuted, being the United States's
PepsiCo set up a blind tasting between Pepsi-Cola and rival Coca-Cola. During
these blind taste tests the majority of participants picked Pepsi as the better
tasting of the two soft drinks. Pepsi took great advantage of the campaign with
In the mid-1990s, Pepsi launched the highly successful Pepsi Stuff strategy, its
largest marketing program ever. In its first year, Pepsi Stuff significantly
times larger than Coke's and 2 points of share gained by Pepsi. Pepsi Stuff built
consumer brand loyalty by allowing people to collect Pepsi Points from packages
and cups and redeem them for high-quality merchandise and unique
include Mountain Dew and into many international markets. PepsiCo continued
and expanded Pepsi Stuff for many years. Promo magazine listed 16 "Ageless
2002 is while some claim that Pepsi tastes identical to Coca-Cola, others say
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they can detect a difference. In the past, the difference in taste between Pepsi
and Coca-Cola's Coke was even greater than it is today. When the Pepsi taste
American taste of Pepsi (New Coke). Although Pepsi claimed this a victory for
their brand of cola, Coca-Cola soon reverted because, while testing showed the
taste of the new Coke was better, consumers preferred Coca- Cola to stay the
same. Coke outsells Pepsi in the US overall because Coke is sold exclusively in
more locations, such as restaurants that sell Coke, but not Pepsi. In locations
where Pepsi and Coke are sold side-by-side (such as Supermarkets and
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PEPSICO COMPANY OVERVIEW
revenues of more than $29 billion and 153,000 employees. The company
PepsiCo International and Quaker Foods North America. PepsiCo brands are
available in nearly 200 countries and territories and generate sales at the retail
Many of PepsiCo's brand names are more than 100-years-old, but the
PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001.
PepsiCo offers product choices to meet a broad variety of needs and preference
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MISSION OF THE COMPANY
which we operate. And in everything we do, we strive for honesty, fairness and
integrity.”
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PEPSICO CARES
, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options– Diet Pepsi
and 7Up Light, hydrating and nutritional beverages such as Aquafina drinking
water, isotonic sports drinks - Gatorade, and 100% natural fruit juices and juice
based drinks – Tropicana and Slice. Our local brands – Lehar Everess Soda,
PepsiCo.s snack food company, Frito-Lay, is the leader in the branded potato
chip market and was amongst the first companies to eliminate the use of trans
fats and „msg. in its products. It manufactures Lay.s potato chips, Cheetos
extruded snacks,Uncle chips and traditional namkeen snacks under the Kurkure
and Lehar brands. Quaker Oats, Lehar Lites,low fat and roasted snack options
enhance the choices available to the growing health and wellness needs of our
consumers.
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Partnership with farmers
Through its major agri-initiatives in Punjab, Maharashtra, U.P. and West Bengal,
PepsiCo has laid down the ground work for the long term economic and social
initiatives across the country and expansive citrus nursery in Punjab have
and emphasis on value enhancement, the initiatives have led to better price
realization for thousands of farmers across the country, improved the prices and
enhanced the quality of their crops which include basmati rice, tomatoes, chilli,
one of the largest MNC exporters in India. Its export business consists of three
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Replenishing water and recycling waste
PepsiCo India supports many sustainable projects to empower and serve the
society it works in. The conservation efforts in our plants reflect our commitment
to promote rain water harvesting, water conservation, recycling and the reduction
of effluent discharge. We also work closely with community members in our Zero
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places on its people. PepsiCo continues to create a diverse and inclusive work
employees, their families and all our associates join the fight against HIV,
PepsiCo has worked with the ILO to implement an extensive HIV prevention and
opportunities for youth and women affected by the tsunamis through its
water to rural communities and reflect our strong commitment to help make
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OUR COMMITMENT
commitment.
Our quest for sustained growth stimulates innovation, places a value on results,
and helps us understand whether today.s actions will contribute to our future. It is
32
Empowered People means we have the freedom to act and think in ways that
we feel will get the job done, while being consistent with the processes that
ensure proper governance and being mindful of the rest of the company.s needs.
Responsibility and Trust form the foundation for healthy growth. It.s about
for all we do, to be good stewards of the resources entrusted to us. We build
trust between ourselves and others by walking the talk and being committed to
succeeding together.
Guiding Principles
This is how we carry out our commitiment. We must always strive to:
Care for customers, consumers and the world we live in. We are driven by
an intense, competitive spirit in the marketplace, but we direct this spirit toward
solutions that achieve a win for each of our constituents as well as a win for the
customers, consumers and communities. Caring means going the extra mile.
Sell only products we can be proud of the test of our standards is that we
consume them ourselves. This principle extends to every part of the business,
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from the purchasing of ingredients to the point where our products reach the
consumer.s hands.
Speak with truth and candor. We speak up, telling the whole picture, not just
understood.
Balance short term and long term. We make decisions that hold both shortterm
and long-term risks and benefits in balance over time. Without this balance,
embraces people with diverse backgrounds, traits and different ways of thinking.
This leads to innovation, the ability to identify new market opportunities, all of
which helps develop new products and drives our ability to sustain our
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QUALITY POLICY
follow regulations laid down by the Indian government which are amongst
the world's most stringent. Pepsico India is in full compliance one quality
Over the past few years the soft drink industry has worked with the Government
regulations. The new regulations for carbonated soft drinks notified by the Health
Ministry on July 15, 2004 are comparable to the most stringent international
regulations, including that of the European Union. All PepsiCo products in India
Our products comply with the Prevention of Food Adulteration Act (PFA)
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directive on the use of water in the preparation of soft drinks. We also comply
with the Bureau of Indian Standards (BIS) for packaged drinking water. We use a
NO Pesticides are used to protect agricultural crops from insects and pests.
Minute quantities of these pesticides enter the ground water and remain in the
agricultural crops which ultimately find their way into our food.
Recognizing that pesticide residues are present in the food chain, international
agencies like WHO and national authorities establish strict norms based on their
Independent government data has shown that pesticide residues present in soft
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PEPSICO INTERNATIONAL
Pepsi-Cola began selling its products outside the United States and Canada in
the mid-1930s, opening in the United Kingdom in 1936. Operations grew rapidly
beginning in the 1950s. Today, PepsiCo beverages are available in more than
170 countries and territories. Brands include Aquafina, Gatorade and Tropicana.
PepsiCo began its international snack food operations in 1966. Today, products
are available in nearly 170 countries. Often PepsiCo snack food products are
known by local names. These names include Gamesa and Sabritas in Mexico,
Chips in Brazil, and others. The company markets Frito-Lay brands on a global
PepsiCo International
. PepsiCo is a world leader in convenient foods and beverages, with 2005
revenues of more than $32 billion and more than 157,000 employees across the
world.
cola, Diet Pepsi, 7Up, Mirinda (Orange & Lemon), Mountain Dew, Slice,
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Tropicana fruit juices, Aquafina packaged drinking water, Gatorade, Lehar
. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay
. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats
Company in 2001.
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PEPSICO INDIA
Pepsi is one of the most well known brands in the world today available in over
160 countries. The company has an extremely positive outlook for India.
"Outside North America two of our largest and fastest growing businesses are in
India and China, which include more than a third of the world's population."
This reflects that India holds a central position in Pepsi's corporate strategy.
India is a key market for PepsiCo, and at the same time the company has added
value to Indian agriculture and industry. PepsiCo entered India in 1989 and is
concentrating in three focus areas - Soft drink concentrate, snack foods and
Faced with the existing policy framework at the time, the company entered the
Indian market through a joint venture with Voltas and Punjab Agro Industries.
With the introduction of the liberalization policies since 1991, Pepsi took
complete control of its operations. The government has approved more than
US$ 400 million worth of investments of which over US$ 330 million have
team. Pepsi has 19 company owned factories while their Indian bottling partners
own 21. The company has set up 8 Greenfield sites in backward regions of
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different states. PepsiCo intends to expand its operations and is planning an
PepsiCo India
• PepsiCo India has 40 bottling plants in India
• PepsiCo generates direct employment for more than 4000 people in India and
• PepsiCo's annual exports from India are worth over U.S$60 million
government to help farmers improve the quality and yield of their crops
• PepsiCo has established zero waste centers and PET recycling supply chains
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PEPSI FINANCIAL POSITION
PepsiCo Reports 13% First-Quarter Earnings Per Share Increase, Driven
by 9% Revenue Growth.
Chairman Steve Reinemund said, "We continue to see solid top-line momentum
across our businesses, driven by product innovation and strong marketplace execution.
Importantly, we're also seeing good profit performance despite continued pressure
from inflation in some of our key input costs. Overall, we're very pleased with the
results in the quarter, and remain confident in the outlook for 2006."
Net revenue grew 6%, reflecting volume growth of 2%, positive effective net
pricing and favorable mix, and despite the unfavorable impact from a shift in the
FLNA's revenue growth was led by strong double-digit growth in Sun Chips
multigrain snacks and Quaker Chewy granola bars and rice cakes, high-single-
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digit growth of Tostitos tortilla chips, and mid-single-digit growth of Cheetos
digits.
Operating profit grew in line with revenue growth reflecting the revenue gains
and the impact of increased labor and benefits charges and higher costs for
cooking oil.
PERFORMANCE.
portfolio increasing 18% and carbonated soft drinks (CSDs) declining 1%. The
results for the quarter also reflect a slightly unfavorable impact from a shift in the
slight increase in trademark Sierra Mist. Across the brands, both regular and diet
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CSDs experienced low single-digit declines.
Net revenue reflected volume growth, a positive mix impact from the strong
the timing of concentrate shipments to bottlers. This growth was offset partially
Operating profit growth lagged revenue growth in the quarter principally reflecting
higher orange and energy-related costs, the favorable resolution in 2005 of estimated
43
MARKET SHARE
Company sales do not reveal how well the company is performing relative to
competitors; .For this purpose, management needs to track its market share. If
the company's market share goes up, the company is gaining on competitors, if it
The first step in using market share analysis is to. define which measure (s) of
Overall Market Share: The Company's overall market share is its sales
to use this measure. The First is whether to use unit sales or dollar sales to
express market share. The other decision has to do with defining the total
market. For example, Harley Davidson's share of the America motorcycle market
depends on whether motor scooters and motorize bikes are included. If yes,then
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Served Market Share
The Company.s served market share is its sales expresses as percentage of the
total sales to its served market. Its served market is all the buyers who would be
able and willing to buy its product. If, Harley Division only produces and sells
expensive motorcycles on the East Coast, its served market share would be its
A company's served market share always then its over all market share. A
company could capture 100% of its served market an yet have a relatively small
A company's first task is to win the lion's share of its served market. As it
approaches this goal, it should add new product lines and territories to enlarge
Relative Market Share (to Leading Competitor): Some companies track their
exactly 100% means that the firm is tied for the lead. A rise in the company's
After choosing which market share measure (s) to use the company must collect
the necessary data. Overall market share is normally the most available
45
measure since it requires only total industry sales, and these are often available
shares is still harder because the company will have to estimate the sales of
specific competitors who guard these figures. The company has to use indirect
the number of shifts they are operating. In the consumer -goods area, individual
brand shares are available through syndicated store and are losing relative to
competitors.
qualifications.
competitors.
If new firm enters the Industry, then every existing firm's market share might fall:
A decline in a company's market share might not mean that the company is
performing any worse than other companies. A company's share loss will
depend on the degree to which the new firm hits the company's specific markets.
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Sometimes a market -share decline IS deliberately engineered by a company to
Market share can fluctuate for many minor reasons: For Example, market share
can be affected by whether large sale occurs on the last day of the month or at
the beginning of the next month. Not all shifts in market share have marketing
Overall
Market Share = Customer Penetration*Customer Loyalty *Customer Selectivity*Price Selectivity
Where:
Customer penetration is the percentage of all customers who buy from this
company.
expresses as a percentage of their total purchases from all suppliers of the same
products.
Customer selectivity is the size of the average customer purchase from the
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Price selectivity is the average price charged by this company expressed as
Now suppose the company's dollar market share falls during the period. The
above equation provides four possible explanations. The company lost some of
smaller share of their total supplies from this company (lower customer loyalty).
The company's price has slipped relative to competition (lover price selectivity).
By tracking these factors through time, the company can diagnose the
selectivity 80% and price selectivity 125% According to above equation the
company's market share fell to 27%. In checking the company finds customer
price selectivity at 130% clearly, the market -share decline was due mainly to
loss of customers (fall in customer penetration) who normally made larger -than -
While trying to expand total market size the dominant must continuously defend
its current business against rival attacks. The leader limes a large elephant being
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attacked by a swarm of ess. The largest and nastiest bee keeps buzzing
aground the leader Pepsi-Cola must constantly guard against Coca-Cola Gillette
against Bic, Hertz against avis, and Mc Donald.s against Burger King General
49
EXPENDING MARKET SHARE
Market leaders can improve their profitability further through increasing their
market share. In many markets, one share point is worth tens of millions of
dollar. A one -share point gain in coffee is worth $48 million and in soft drinks,
$120 million No wonder normal competition has turned into marketing warfare.
Some years ago, the Strategy Planning Institute launched a study called profit
Impact of Market strategy (PIMS) which sought to identify the most important
variables affecting variables affecting profit Data were collected from hundreds of
associated with profitability the key variables included market share product
They found that company's profitability (measured by pretax. ROI) rise with its
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55
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UP COBO
UP COBO comes under North Operations Marketing Unit. The whole UP
There are six territories which come under UP COBO are shown in the chart
below:-
All the six territories which come under UP COBO are controlled by Lucknow unit office.
Manager posted at Unit office. Under the TDM, there is a team of CE's and ADC's.
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There are five warehouses which come under UP COBO:-
All the warehouses under UP COBO are controlled by Lucknow head office. Every
mainly used for storing the finished Pepsi products, from where the distribution takes
place through direct and indirect routes .All the warehouse process is managed by
warehouse manager.
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KEY PERSONS IN UP COBO ARE :-
PLANT MANAGER-
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BIRTH OF “TROPICANA”
1947-1951: A
Business
Blossoms
In the late 1940s, Anthony Rossi was an entrepreneur in search of the ideal
business. He was always interested in fine food, presented to please the eye as
well as the palate. So, with typical Rossi artistry and care he began to prepare gift
boxes of Florida citrus. Despite intense competition, his reputation for quality and
creativity grew. Soon he was selling the boxes to department stores, including
Macy's and Gimbel's in New York City.
Still, he was not satisfied. How could he improve quality and reduce costs, to make
his gift boxes even more desirable? He was buying citrus from retail supermarkets
in Miami. If he could get closer to the trees, he reasoned, the fruit and the profits
would be sweeter.
His gift boxes of Florida citrus were now fresher, more popular and more profitable
than ever. But since only the largest fruit was selected for the gift boxes, a lot of
smaller fruit was going to waste. To Mr. Rossi, this was not a problem. It was an
opportunity. He would squeeze the smaller oranges into juice, and then ship it to
the Northeast along with fresh fruit sections.
With this goal in mind, Mr. Rossi moved his packing operation from Palmetto to
Bradenton and formed Fruit Industries, Inc. - the company that was to become
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Tropicana. At first, the Florida Citrus Commission denied the company a license to
package and ships its products, convinced that the fruit and juice would spoil on
its journey north. But through trial and error, Mr. Rossi and his employees
The company began to ship jars of sectioned fruit and fresh juice to hotels and
restaurants in specially-modified refrigerated trucks. Ingredients for the fresh fruit
salads on the menu of New York's famed Waldorf-Astoria Hotel were supplied by
Fruit Industries; the hotel had a standing order for 1,000 gallons of juice and fruit
jars each week.
At the Bradenton plant, Mr. Rossi employed about 50 people. Wearing white
uniforms and rubber gloves, they sectioned the fresh fruit by hand over stainless
steel counters and packed it carefully into glass jars. First layers of grapefruit
sections, then oranges. In the 'fruit salad' jars, they added slices of pineapple. This
attention to quality and detail became the hallmark of the company.
Shipping fresh fruit segments and juice to the Northeast proved so successful that
Mr. Rossi discontinued production of his fruit gift boxes. He had changed the way
Northerners bought and enjoyed Florida citrus. But another revolution was
dawning for the citrus industry. The post-World War II era was ushering in the
baby boom and the growth of the suburbs. Busy families kept their new
refrigerator-freezers stocked with frozen dinners and, beginning in the late 1940s,
frozen concentrated orange juice.
Mr. Rossi saw this new development as a natural extension of his fruit and juice
business. And he began to search for new, larger facilities
and more land so the company could continue to grow.
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1952 – 1957 Launching
a Leader
In the fast-growing food industry of the 1950s, the upstart
company from Bradenton, Florida was already making waves.
But despite phenomenal growth, there were still new markets to explore and new
products to develop. In keeping with its goal of using every part of the fruit, the
company invested in machinery to convert citrus peel, pulp and seeds into
nutritional cattle feed.
In the early 1950s, if Americans wanted orange juice, they had a simple choice.
They could mix frozen concentrate with water, or occasionally - depending on the
season and availability - they could squeeze their own oranges. Although most
people in the food industry believed that distributing large quantities of fresh
chilled juice was virtually impossible, Mr. Rossi was convinced that there must be a
way.
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retaining fresh taste. Mr. Rossi's answer was flash pasteurization-raising the
temperature of the juice for a very short time.
1958 – 1968
Charting a
Course
In 1961, the S.S. Tropicana made its final voyage delivering chilled orange juice to
New York. While the ship could get Tropicana's products to market quickly, the
juice still had to be put into cartons in New York. So the company found a way to
package its juice at Tropicana headquarters, and then ship the packaged product
directly from Bradenton.
Fruit sections and juice had been shipped in glass jars in the early days of Fruit
Industries. Glass was still a good way to package juice for distant markets, but the
volume of juice the company was selling in the 1960s couldn't be packaged rapidly
enough using existing methods.
Once again, Tropicana charted a new course for the citrus industry-high-speed
vacuum-packing. Filling and sealing large quantities of jars quickly was the key to
quality. A dedicated team of Tropicana engineers developed the first commercially
acceptable high-speed glass packaging line ever devised for food products. In the
1960s Tropicana made history once again, by becoming the first company to sell
bottled Florida orange juice overseas.
The company received its first international order-for 14,000 cases of Tropicana®
orange juice-at a European food industry trade fair in 1965. France was the first
country outside North America to enjoy Tropicana® products.
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1969 – 1977 Sharing
Success
In 1969 stock in Tropicana Products, Inc. was first
sold over the counter. The company was soon listed
on the New York Stock Exchange. Mr. Rossi called
the development "a real milestone in our
history."
An important part of the company's strategy had always been the constant search
for new ways to package and distribute its products. Another major goal was to
increase Tropicana's self-sufficiency. The late 1960s and early 70s saw a number
of advancements in both of these areas that helped strengthen the company's
leadership position.
Another breakthrough was Tropicana's Great White Train, the first unit train in the
food industry. The train, which made its inaugural run to the Northeast in 1970,
was later painted orange to better advertise its famous cargo. The train is still in
operation today. Tropicana began making its own boxes in 1972, another
important step in decreasing its dependency on outside suppliers. By the 1990s
the box plant produced over 4 million boxes each week.
By the mid-1970s Tropicana was creating most of its own packaging; controlling
its distribution methods in new, even more efficient ways; and expanding its
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market throughout the United States, the Bahamas, Bermuda, the West Indies
and several European countries. Carefully nurtured for 30 years, Tropicana had
matured into one of the most respected
companies in America.
1978 - 1987
By the late 1970s, Tropicana's success was being studied on Wall Street and in
corporate boardrooms across the nation.
But another company had its eye on Tropicana, too. Beatrice Foods, a Chicago-
based conglomerate whose products included Dannon Yogurt, County Line Cheese
and Martha White Flour, was known for letting the local management of each of its
over 400 companies make most of their own major decisions.
Mr. Rossi, who was very protective of the company he had led for over 30 years,
believed that Beatrice was the best suitor, and that the time was finally right. In
1978 Beatrice acquired Tropicana Products, Inc. As part of a larger corporation,
Tropicana had the financial resources to develop more new products in a wider
variety of containers and sizes than ever before,
including Tropicana HomeStyle juice with pulp,
introduced in 1985.
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1988 - 2002
In 1988, the Seagram Company Ltd. acquired Tropicana. During the ensuing
decade, Tropicana expanded from its Eastern U.S. stronghold throughout North
America, Europe, Asia and Latin America.
In 1995, Seagram acquired the Dole Food Company's global juice business,
including Dole brands in North America, and Dole, Fruvita, Looza and Juice Bowl
juices and nectars in Europe.
On October 4th, 1996, Tropicana announced an agreement with the Tampa Bay
Devil Rays to name its home stadium Tropicana Field.
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METHODOLOGY
Research is common parlance refers to search for knowledge. In fact research is an art of
RESEARCH DESIGN
The research design was of an exploratory nature and included gathering preliminary data to
DATA SOURCE
Primary data being the main source for the research was collected by the questionnaire filling by
SAMPLE SIZE
Sample size was taken by the number of questionnaires filled by the consumer of juice over the
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Lucknow. 200 questionnaires was chosen and filled up by the consumer as a sample size per
SAMPLE DESIGN
Sample design was probabilistic as the sample units were specified by Pepsi co India holding ltd
mainly using the 4 brands of packed juice. These brands are as follows:
1. Tropicana
2. Real
3. Leh berry
4. Others
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SPECIMEN OF QUESTIONNAIRE
We are doing a survey on consumers’ behaviors towards health drinks. We would be grateful if
you could spare a few minutes to fill up this questionnaire.
6) If you don’t get your favorite brand what will you do?
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9) In yours opinion, what should be normal size of Tropicana? a)
200ml b) 250ml c) 300ml.
10) - On a scale of 1 to 5 where “1” stands for Least preferred & “5” stands for strongly
preferred , how would you rate Tropicana ?
1 2 3 4 5
Least preferred Most Preferred
11) Are you satisfied with the price pattern of your favourable juice brand?
Yes No
Yes No
13) Are you aware that TROPICANA is a world’s largest juice brand certified by IMA(INDIAN
MEDICAL ASSOCIATION) ?
Yes No
PERSONAL DETAILS:
a) - Name: -----------------------------------------------
b) - Address: -----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
c) - Age:
1) 18 to 25 2) 25 to 32 3) 32 to 45 4) 45 and above
d) - Occupation:
e) Monthly income:
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5) Above 30000 per month
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MOST PREFERABLE DRINKS
29%
CO LD DRINK S
42%
CO LD CO F F E E
P A CK E D JUICE
F RE S H JUICE
15%
14%
ANALYSIS:-
Fresh Juice in the market (i.e. 42%) and least portion is of packed juice.
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FAVOURITE HEALTH DRINK
48%
PACKED JUICE
FRESH JUICE
52%
ANALYSIS:-
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Most Favorable Flavors
23% 9%
AP PLE
25% ORANGE
M A NGO
9% PINE AP PLE
OTHERS
34%
Analysis:-
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Most Preferable Brand
100
90
80
70
60
50 Series1
40
30
20
10
0
S
NA
RY
ER
A
CA
RE
TH
BE
PI
O
O
H
TR
LE
Analysis:-
preferring packed juice of one of our competitor product i.e. Real in the
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Frequency of buying (in Month)
10% 9%
ONE TIME
2-5 TIMES
ANALYSIS:-
The above pie chart shows that 49% consumers buy
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In case of non-availability, consumer will
8%
39%
A
B
C
53%
Analysis:-
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availability of their favorite brand.
Sources Of Information
Analysis:-
It could be concluded from our survey that most of the
friends/relatives.
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Criteria Of Choosing Health Drink
120
100
80
brand name
60
taste
40
advertisement
20
packaging
0
price
e
r
c k nt
se e
y e
any other
he
m
in
rti st
an ic
pa m e
na
ag
r
ta
ot
p
d
an
ve
br
ad
Analysis:-
consumers are considering Taste factor for the selection of their health drink.
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Normal Size Of Tropicana
40%
200ML
1LT
60%
Analysis:-
From our survey, it could be analyzed that for the normal size
of Tropicana most of the consumers are preferring 1 ltr size for their
consumption.
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Likert Scale Of Preference
60
50
40
Series1
30
No. of Series2
consumers 20
10
0
1 2 3 4 5
1 2 3 4 5
LEAST PREFERED MOST PREFERED
Analysis:-
It could be analyzed from our survey, that most of the
consumers are scaling the Tropicana some degree near to their most
near future).
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Price Satisfaction
33%
YES
NO
67%
Analysis:-
From our survey it could be analysed that majority of the
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Comparison of price satisfaction
(Real vs Tropicana)
Real Tropicana
Vs
19%
31%
Analysis:-
It could be concluded that in comparison of Tropicana consumers
are more satisfied with the price pattern of real.
85
Quality Satisfaction
12%
YES
NO
88%
Analysis:-
are being satisfied by the quality output of the Tropicana in the market.
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Comparison of quality satisfaction
(Real vs. Tropicana)
4% 9%
Analysis:-
It could be concluded from the above chart that in comparison of
Tropicana consumer are more satisfied from the quality of real.
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Awareness of Tropicana(certified by
IMA)
38%
YES
NO
62%
Analysis:-
It could be analysed from the figure that majority of the consumers in the
market are being aware of the certification of the Tropicana through IMA.
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FINDINGS:-
At the end of my project we found that the total market
capture of Tropicana was in better position and if the company will reduce the price of
cartoon size 1lt. juice pack, the sales of Tropicana will be at the high level.
like other juices and soft drink, Most of the consumer switch over to other brand because of the
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RECOMMENDATION:-
1. Make the availability of Tropicana at each store in the market like other juices and soft drink,
Most of the consumers switch over to other brand because of the non-availability of the
required
product.
2. Market of Tropicana is covered not only from the modern trade stores so company
have to make the same efforts to fulfill the availability in traditional stores.
3. In order to attract youth and children’s and lower income consumer, company should
4. Company should make its promotional channel more stronger in order to generate
more awareness.
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CONCLUSION
During my summer training I found that there is so many competitors of Tropicana in the
market but there is a very tough competition between Tropicana and real packed juice. We
found that the price of Tropicana 1lt. premium gold (sugar free) juice is expensive than other
packed juice .
There is large number of medium class family and they are not able to pay
much money for packed juice. When the customer comes to the shopkeeper for buying packed
juice in modern trade they observe that there are so many brands are available which are less
expensive than Tropicana, so they want to buy other brand which are cheaper than Tropicana.
So if the company reduce the price or provide some offer with their product, the sale of
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BIBLIOGRAPHY
Books:-
Websites:-
http://www.pepsi.com
http://www.tropicana.com
http://www.pepsicoindia.com
http;//www.google.com
Magazines:-
Business today
Business standards
Outlook
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