CHAPTER -1

o Introduction o Need for the study o Objectives of the study o Methodology adopted o Survey of literature o Limitation of the study o Presentation of the study

INTRODUCTION The world economy has undergone a radical transformation in the last two decades geographical and cultural distance have shrunk significantly with the improvement in the production , transportation and communication. These advances have permitted companies to widen substantially both these markets and their supplier sources. And thus the role of marketing becomes wide. Marketing thinking starts with the human needs and wants Apart from basic necessities of air, water, shelter and clothing, every person has strong desire for recreation and entertainment. They have strong preference for particular brand of basic and services. Marketing serves as the link between the societys needs and its pattern of industrial response. Beverage industry is one of the fast growing industries in India. We can divide beverages into two sections i.e. Alcoholic and Non-alcoholic. The non-alcoholic drinks are soft drinks that can be further classified Cola, Lemon, Orange and Mango Segment. In present scenario has become a complex task mere survival in contemporary cut throat competition has become a challenge today. Marketing activities are designed to plan, price, promote and distribute need satisfying products and services to the existing and potential customers. In other words we can say that marketing is all about delivering the goods and services to the society for the consumption and satisfaction but only at a profit. As far as the soft drink market is concerned, it is facing the cut throat competition because of the availability of a large number of indirect as well as direct competitors. Single company offers the soft drinks to the market in different taste and flavors. In this industry entire range of flavors are produced by other competitors also. More often than not it becomes impossible to differentiate between the same flavors of two different brands, when served in plane container. Besides, both corresponding brands have the price range also. All these factors together make the situation complicated.

NEED FOR THE STUDY

The training in the organization is very important for a student who is undergoing with such course. This course is not the answer to all the problems, which arises in the practical fields. There is no certain formula for any particular problems, but the aim of this study is to develop the ability of decision making. A right decision at right time itself helps an organization to run smoothly. This training in an organization gives an idea how decisions are taken tact fully when any problem comes to an executive. So the way of problem solving, right decision making and knowledge of different type of marketing activities give much importance to the study. Though only in two months it was not possible to understand it so deeply but an overall idea could develop.

OBJECTIVES OF THE STUDY Primary Objectives: To know the distribution method adopted by the organization. To know about the stock position of PEPSI brand and its competitors at different outlets. To know per day sale of PEPSI brand and its competitors in crates. To know how many retailers has PEPSI cooling equipment. To know the market share of PEPSI products. Secondary Objectives: To know the loyalty of the customers for PEPSI brand. To offer suggestions, if any, to increase the sale of the PEPSI products.

METHODOLOGY ADOPTED
Sample size:Part of the universe which is selected for survey is called SAMPLE SIZE. Researcher must prepare a sample design for his study i.e., he must plan how a sample should be selected and of what size such a sample would be. Sample size of research is: - 137 Universe:Hanuman Nagar, Patna City, Kankar Bagh Colony, Rajendra Nagar Terminal at Patna (Bihar) Methodology of the study :1 Exploratory: To find the per day stock and per day sale at different outlets exploratory research method was adopted. A survey form was prepared and the retailers were asked to answer them during the course of their interview. 2 Schedule Method: Groceries (GR) 49 Convenience shop (CON) 45 Eatery (ET) 40 Modern tech.(MT) 3

Dealer responses were conducted with help of a prepared schedule. Samples are taken at different location of Patna. 3 Documentary Observation:

Books, annual report, Websites, published and unpublished materials.

Field Observation:

During training period we did extensive survey of the distribution outlets and consumer to observe the marketing operation perform by the organization Sampling Plan:Sampling Unit Sampling size Sampling procedure Contact Method questions. : : : : Retailers 137 Purposive Selection Personal Interview

In interview schedule I used multiple choice question and ranking system

LITRATURE REVIEW
Supreme Court quashes criminal case against Pepsi:The Supreme Court on Thursday quashed the criminal proceedings initiated by the Kerala government against PepesiCo over pesticide content in its soft drinks. PepsiCo India was charged with selling. soft drinks with higher pesticide content than the prescribed limit. The bench also set aside Kerala . High Court's order that had refused to stay criminal proceedings against the company.PepsiCo has contested state government's proceedings over the alleged adulteration of its soft drinks.The company argued that as per the law existing at the time when the case was initiated, there was no provision governing pesticide adulteration in cold drinks.No standards have been fixed yet on the permissible pesticide content in soft drinks under the Prevention of Food Adulteration Act, 1954, and Prevention of Food Adulteration Rules, 1955, the company claimed before a bench headed by Justice Altamas Kabir. Reference:-hindustan times,18 nov 2010 Pepsico's alliance with Tata tea:Partnering is one area in which PepsiCo's India unit has proven especially adept. The company has a dynamic partner network made up of local R&D labs, government bodies, nongovernmental organizations, and universities to help identify new market needs and to design and deploy affordable and sustainable solutions that bring benefits to all stakeholders in PepsiCo's business ecosystem. In 2006, for instance, PepsiCo India and the Punjab Agricultural University co-developed a tractor-driven machine that enables

direct seeding of rice (DSR)an eco-friendly technique that eliminates holding water for rice cultivation, reducing water use by 30 percent and cutting carbon emissions by 70 percent. After piloting DSR successfully in a few Indian states over the last three years, PepsiCo has partnered with the Indian Agricultural Research Institute to deploy this water-efficient rice farming technique nationwide. The company even plans to export DSR to other markets facing growing water scarcity. PepsiCo forged an alliance in April with Tata Tea (part of the Tata Group, India's largest industrial conglomerate) to co-develop a range of healthy food and beverage products Reference:- 9 Nov 2010 (www.businessweek.com) PepsiCo partners with GNC to develop coconut water:PepsiCo and GNC, a retailer of nutritional products, have signed a joint venture agreement to develop and sell fortified coconut water products under a new brand name, "Phenom." The products are expected to be available first through GNC during the second quarter of 2011, before a wider release in the U.S. PepsiCo, the chief rival to Coca-Cola Co., recently worked with GNC to launch "G Series Pro," a version of Gatorade aimed specifically at serious athletes. The new coconut water brand is meant to appeal to consumers focused on health and wellness. Coca-Cola already has moved into the coconut water category, which is small but one of the fastest growing niches of the beverage industry. Last year, Coca-Cola grabbed a minority stake in Zico, a seller of coconut water, for less than $15 million. Reference:- 8 November 2010(www.ajc.com) PepsiCo to sell "G Series Fit," extend Gatorade family:PepsiCo is continuing to add new members to its Gatorade family. The snack and beverage company plans to introduce a beverage called "G Series Fit" in April, according to Beverage Digest. The trade journal reported that Fit will be launched nationwide in major retail channels, and that the drink will be targeted at "fitness" athletes aged 18-24.

By comparison, the main Gatorade line is targeted at athletes aged 13-17. The new G Series Fit line will include products for before, during and after exercise, including a smoothie and a nut and fruit bar. PepsiCo, which competes against Coca-Cola Co. and its Powerade brand, said it wants to grab sales from tap water and bottled water, according to Beverage Digest. Referance:- 29 November, 2010 Atlanta Business News

LIMITATIONS OF THE STUDY

o survey is done only in Patna. o Time constraint. o Frequent occurrence of rain. o Sometimes the owner/retailer did not give the right information about the product.

PRESENTATION OF STUDY
The project report is divided into four chapter in first chapter(1), introduction, need for the study, objectives of the study are presented. Chapter (2) gives brief idea about the soft drinks industry and the profiles of PepsiCo ltd. and its franchisee Lumbini Beverage Private Ltd. . The concept of sales & distribution, the sales & distribution system at Lumbini Beverages Pvt. Ltd. And data analysis is presented in chapter (3). Chapter (4) is meant for finding and suggestion.

CHAPTER -2
o Soft drink industry o Indian soft drinks industry profile o PepsiCo ltd. Profile o Lumbini beverages pvt. Ltd. profile

SOFT DRINK INDUSTRY

Indian Beverages industrys size is Rs. 8000 Crores and it is dominated by two players viz. Pepsi & Coke only. This high profile industry has lot of potential for growth as per capita consumption in India is 8 bottles a year as compared to 20 bottles in Sri Lanka, 14 in Pakistan, while 12 bottles a person in Nepal. The RKJ group is India's leading supplier of retailer brand Carbonated and NonCarbonated soft drinks, with beverage manufacturing facilities in India and Nepal. Its experience in the beverage industry dates back to the sixties when it had the first franchise at Agra. The group manufactures and markets carbonated and Non-Carbonated Soft Drinks and Mineral Water under Pepsi brand. The various flavors and sub-brands are Pepsi, Mirinda Orange, Mirinda Lemon, Mountain Dew, and 7UP, Slice Mango, Evervess Soda and Aquafina. It has the license to supply beverages in the territories of Western U.P., part of M.P., half of Haryana, whole of Rajasthan, Goa, 3 districts of Maharashtra, 9 districts of Karnataka and whole of Nepal. The group has in total 18 bottling plants in India & Nepal and is responsible for producing and marketing 44% of Pepsi requirement in India. In order to later to this increasing demand, new bottling plants are being set up at alwer, kosi, Jodhpur, Kathmandu and goa to produce400-600 bottles per minute, which would mainly cater to northern markets of India. And in future, they will also be used to manufacture fruits mince based soft drinks like slice and mangola.

INDIAN SOFT DRINKS INDUSTRY PROFILE

Soft drinks are a non- alcoholic beverage. It is artificially flavored and contains no fruit or pulp. India with more than 110crores population is one of the largest consumer markets in the world after China. Soft drinks is a typical consumer product purchased by individuals to quench thirst and secondly for refreshment. Searching for the point of origin of Indian soft drinks, I first document on gold spot this was the first brand soft drink in India. it was introduced by Parle during later part 40s .cola giant ,coca cola was the foreign soft drink to be introduced in India in 1965. CocaCola made a very good beginning and dominated the whole scheme right from the world go. It faced no competition at that time. The extraordinary success of soft drinks can be attributed to the following factors; Absence of contemporary competitive brand. Euphoric image build up in the western countries proceeded the entry into Indian market,and Indians are very fond of foreign goods, services etc. due to prolonged foreign rules. Parle exports Pvt. Ltd. introduced Limica, Lemony soft drink in later 1970. Before Limca was introduced they had tentatively introduced Cola, Pepino, which they had to withdraw soon in the face of battering conformation with CocaCola. Three of four groups of Indian companies, which had the required production capacity, started their own brand of Cola, orange, Lemon but failed to achieve their goal on national basis. India always has love and hate relationship with MNCS which gave a significant opportunities to soft drink industries in India when Coca-Cola decided to bind up it was being wasted. Operation in 1977 rather than bowing to Indian government insisting on:o Dilution of equity, as the government felt that list of foreign currency o Manufacturing of the top secret concentrate in India o Disclosure of the chemical composition of the essence This left a large vacuum in popular soft drink market, and a vista was opened to any company with requisite technical, marketing and organizational skills. The existence of

coca cola from India in 1977 accelerated the growth of several Indian soft drinks in the form of tetra pack entered the market, among the Frooti, jump-in, and tree top where the prominent one. Till 1977, there equipped bottling plants and the distribution network were of no use. It looks them one year to develop new formula to survive and gradually came up with Campa, lemon, orange, and cola. However Parle the pioneer in the soft drinks blazed its way to national prominence with their product thumbs-up bearing the slogan Happy days are here again. This particular slogan helped to win over the loyalists or addicts to Coca-Cola. Indian soft drink industry started at a phenomenal rate, and all Parle products, Gold Spot, Limca and Thums-up became the brand leader in their own segment. In spite of all these, the drink market still had large gaps, as claimed by soft drink manufacturers. To fill these gaps, many soft drink concentrate and squashes flooded the market .The Indian soft market basically offered three flavors i.e. Orange, Lemon and Cola. 1988 saw the entry of the multinational company PEPSI to the Indian market, 11 years after the existence of Coca-Cola. It had name, fame and edge of being one of the best in the game and it also offered stiff competition to Parle and Coke. Christopher Columbus as a traveler of world found a lot of new things which was not in the eye of the world community which is now in our history but now if any one does travel to whole part of world to get one thing in some form that is Pepsi. Travel to any corner of the globe you are sure to spot a label splashed in blazing blue, red and white becoming you to some Sugared water. This dark coloured drink WillyMilly has today become nothing but spot of an international anthem with young and old, rich and poor wants for a sip and saying Yeh Dil Mange More. Gold Spot is considered as the first branded soft drink established 53 years ago before all empowering Coca Cola entered the country to dominate the scene. It faced no competition and its euphoric imaged built up in the western countries helped it to get ready clientele and glamour. Parle Export Pvt. Ltd. is regarded as the first Indian company introducing Limca, a lemon drink complimentary to there well established Gold

Spot in 1970 which got moderate success. However, before this, he had also introduced Cola Pepino which was withdrawn in face of tough competition from Coca Cola. When Coca Cola bid farewell in 1977, Indian market was open for various cold drinks several companies came forward publishing the different brands in the market. Parle people introduced their Cola Thumps Up with a mighty bang saying Happy days are here again as if happy days went away with Coca Cola.. Pure drinks of Delhi also without losing much time introduced pure drinks were producing and marketing Coca Cola earlier Campa Cola along with Campa orange and Campa lemon. Modern Bakeries entered in the market with the Double Seven. Moharn meakings with Merry Pikup and McDowell with Thrill, Rush and Sprint in Indian market where there was no competition previously. A cut throat competition and heavy advertising was on. Each one was trying their best to become the number one company with A class product in the field of soft drink business in India. Now after a long gape the govt. of India has given permission to the Coca Cola to start their business in India. Coca Cola has joined hands with Parle to the business on the Indian soil. They are trying best to regain its prestige which it has before.

The much rival of Parle is Pepsi an American concern. It started business the occupied nearly 50% share of soft drinks market in India. Now, Pepsi is going all out to prove that they are the best.

Soft drink industry market share in India-

S .N. L o 1 . 2 . 3 . 4 . 5 .

C m a ies N m o pn a e P I C C I C P rl a ro ae g Au ml O e L ca Pa e th r o l l y r's T tal (% o )

T ta (% o l ) 2 6 3 8 8 8 2 0 10 0

PI C CI C Pre go al a r Au m l Oe t r h

Interpretation:- PCI market share is little bit short in comparing to Coke for
enlarging more market share PCI will have to invest more in the market and it advertisement

HISTROY OF PEPSI
Caleb Bradham a New Bern, N.C.druggist, created Pepsi-Cola in the late 1890s. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Its CEO is STEVE REINEMUND and in India its CEO is INDIRA NOOI. The company consists of Frito-lay North America, PepsiCo Beverages North America, and PepsiCo International and Quaker foods North America. PepsiCo brands are available in nearly 200 countries and territories. Many of PepsiCos brand names are more than 100-years-old, but the corporation is relatively young. Pepsi cola began its product outside the UNITED-STATES and CANADA in the mid-1930s, opening in the UNITED-KINGDOM in 1936. Operation grew rapidly beginning in the 1950s. Today PepsiCo beverages are available in more than 170 countries and territories. Brands include Aquafina, Gatorade and Tropicana. In addition to brands marketed in the UNITED STATES, PepsiCo International brands include Mirinda, seven-up, and many local brands. PepsiCo offers product choices to meet a broad variety of needs and preferences from fun for you items to product choices that contribute to healthier lifestyles. PepsiCos mission is To be the worlds premier consumer product company focused on convenient foods and beverages. Pepsi seek to produce healthy financial rewards to investors as it provides opportunities for growth and enrichment to its employees,

business partners and the communities in which it operate. And in everything it do, it strive for honesty, fairness and integrity. PepsiCo is a world leader in convenient foods and beverages, with 2008 revenues of more than $35 billion and more than 157,000 employees. Pepsi plans are on to add 100,000 outlets every year to its current network of around 600,000 across the country. Guiding principles of pepsico This is how we carryout our commitment. 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 spirit toward solutions that achieve a win for each of our constituents as well as a win for us. Our success depends on a thorough understanding of our customers, consumers and communities. Essentially this is a spirit of growing rather than taking. Sell only products we can be proud of. The test of our standards is that we must be able to personally endorse our products without reservation and consume them ourselves, from the purchasing of ingredients to the point where our product reach the consumers hands. Speak with truth and candor. We speak up, telling the whole pictures, not just what is convenient to achieving individual goals. In addition to being clear, honest and accurate, we take responsibility to ensure our communications are understood. Balance short term and long term. We make decisions that hold both short-term risks and benefits in balance over time. Without this balance, we cannot achieve the goal of sustainable growth. Win with diversity and inclusion. We leverage a work environment that embraces people with diverse traits and different ways of thinking. This leads to innovation, the ability to

identify new market opportunities, all of which help develop new products and drives our ability to sustain our commitments to growth through empowered people. Respect others and succeed together. This company is built on individual excellence and personal accountability, but no one can achieve our goals by acting alone. We need great people who also have the capability to working together, whether in structured teams or informal collaboration. Mutual success is absolutely dependent on treating everyone who touches the business with respect, inside and outside the company world-class performance.

Pepsi-the indian experience Pepsi entered the Indian soft drink market in 1988 and began its production in May 1990 and soon it was giving the local contenders the run for their memory in the soft drinks market. It came out with dazzling marketing innovation that rocket the Cola market live selling the product through functional Pepsi outlets. Its advertisement agency was Hindustan Thomson Association (HTA). Pepsi good is one of the largest and best foreign investments in India. Pepsi has distributed exclusive franchises in India to bottle its products. At present it has 40 bottling lines in the country. Pepsi owns 16 units and the rest are owned by franchises. The two salient features of the consumers market in India are generally prevailing, low purchasing capacity of consumer and the fact that urban consumer responding about 30% of the total population account for nearly 70% of the consumers of the consumer expenditure. The government of India has considered the soft drinks industry as non-

essential. As a result of the excise duty levied by the government on bottled-soft drink is very high. The soft drinks industries in India has an annual sales exceeding more than Rs. 300 crores and most of the bottling companies have been coursing well. The exit of Coca cola from India has accelerated the growth of several Indian companies have grown and expanded their activities by placing more and more of their soft drinks in the market and by moving refrigeration by supplying ICE-BOX and VISI COOLER and one fridge to their retailers.

Swot analysis Strength:PEPSI Beverages Company is worlds most famous soft drink giant.

PEPSI Beverages use fully automatic machines and technology for the product It has a very strong distribution network and well built market and currently holds COCA-COLA has only one lime flavor where its competitor PEPSI has 7UP and

and bottling of soft drink. almost all the parts of the state. MOUNTAIN DEW.

Weakness: Promotional activity in rural market is not up to the mark as compared to the urban market. More emphasis is given to the big dealer. Services towards VISI COOLER is not satisfactory

Opportunity:It should give more incentives to the dealers in the rural areas. Where there is a huge market potential. It should adopt automatic and computerized quality control system for its product. More lucrative schemes to be launched regularly, especially during off-season. So Apart from sponsoring films, cricket and music, it should also sponsor to different The consumption rate is higher in Bihar.

as to attract more and more customers. fashion shows, quizzes and debates in schools and debates in schools and colleges.

Threates:In rural market, PEPSI may have got stiff competition from new local Pepsi is spending more and more in advertisement to increase its sale.

brand FRESH-UP.

Baba RAMDEVs preach cause a huge fall in sales volume.

Product profile

Pepsi Crystal Pepsi Pepsi Blue Pepsi Gold Pepsi ONE Pepsi Max Pepsi Diet Pepsi Lime

mirinda Mirinda Sorbet Mirinda Orange mountain dew 7 up Slice Tropicana Aquafina

 Lehar Soda Nimbooz By 7up (New Product)

Lehar Soda This is a soda drink. It has no colour and no flavors. It is generally used with alcohol and used by adults.

Lemon-lime soda

7 UP

Type

Manufacturer Country of Origin Introduced Variants Related products

Cadburys (U.S.), PepsiCo (elsewhere) United States 1929 dnL, 7 Up Plus Dr Pepper, Sprite

7 Up is a brand of a lemon-lime flavored non-caffeinated soft drink. The rights to the brand are held by Cadbury Schweppes Americas Beverages in the United States, and by PepsiCo in the rest of the world (sublicensed to Britvic in the United Kingdom and C&C in Ireland).

Mirinda Mirinda is a brand of soft drink available in fruit varieties including orange, grapefruit, apple, strawberry, pineapple, banana, and grape flavors. It is part of a beverage area often referred to as the flavor segment, comprising carbonated and non-carbonated fruitflavored beverages. The orange flavor of Mirinda represents the majority of Mirinda sales worldwide.

Mirinda is owned by PepsiCo and is primarily commercialized outside of North America. It competes with Coca-Cola's Fanta brand and with flavor brands local to individual countries. As with most soft drinks, Mirinda is available in multiple formulations depending on the taste of individual markets.

Mountain Dew Type Manufacturer Country of origin Introduced Citrus soft drink PepsiCo, Inc. United States 1964 (nation-wide) Diet Mountain Caffeine Caffeine Free Free Diet Mountain Mountain

Dew Dew Dew

Variants

Mountain Dew Code Red

Mountain Dew is a caffeinated, sweet, citrus-flavored soft drink produced by PepsiCo, Inc. It was invented in Marion, Virginia and first marketed in Knoxville, Tennessee in 1948, then by the Minges family in Fayetteville, North Carolina and across the United States in 1964.
[1]

When removed from its characteristic green bottle, Mountain Dew is

bright yellow-green and semi-opaque. Slice Type Manufacturer Country of origin Introduced Related products Flavored soft drink PepsiCo, Inc. USA 1984 Sierra Mist, Sprite, Fanta, Teem

Slice is a line of fruit-flavored soft drinks manufactured by PepsiCo and introduced in 1984, with the Lemon-Lime and Mandarin Orange flavors

Aquafina Type Manufacturer Country of origin Introduced Water Beverage PepsiCo, Inc. United States 1994

Aquafina is a popular brand of bottled water. It was first distributed in Wichita, Kansas in 1994, and was distributed across the United States ,

Canada , Turkey and Vietnam by 1997. As of 2003, it had become the United States' topselling bottled water brand in measured retail channels. The water is standard tap water but goes through an extensive purification process that includes charcoal filtration, reverse osmosis and ozonation. Aquafina is sold in 12-ounce, 500-mL (16.9-ounce), 20-ounce, 24-ounce, 1-liter, and 1.5-liter bottles.

Nimbooz By 7up

(New Product)

Bangalore, March 9 PepsiCo India has launched its packaged nimbu paani Nimbooz by 7Up. According to a company press release, the product, with real lemon juice, no fizz and no artificial flavours, will be available in three packaging formats of 200 ml returnable glass bottles, 350 ml PET and 200 ml tetra packs, priced at Rs 10, Rs 15 and Rs 10, respectively. Its communication tagline will be Ekdum Asli Indian, and the integrated communication programme includes TV commercial, press, radio, and so on, the release said

LUMBINI BEVERAGES PVT. LTD. PROFILE

In the year 1995, Lumbini Beverages Pvt. Ltd. was formed into a business company with legal status. The company is situated at Industrial area Patna, District Vaishali in the state of Bihar; a state notified category A backward area at a distance of about 25 kilometers from Patna, the capital city of Bihar. The steel city Beverages Ltd. Situated in Jamshedpur steel city comes next to Pepsi in bottling process. In the year 1995, as park franchise, Lumbini Beverages Ltd. with reference to which the study is being conducted was started. It is a Public Ltd. Company with registered office situated at p-214 scheme VIM, Calcutta-700054.

In 1998, the company started its operation by producing only 300 ml. bottles and the other sizes products are also being produced afterwards. The market of north and central part of Bihar is covered by this company. The products distribution is being carried out through a network of 257 distributors under the guidance of Pepsi food Ltd. The territory covered by the company is about 300 km of radius from the location of the plant and is being equally expected to develop the market within the area allotted territory by the Pepsi Foods Ltd. The Lumbini Beverages Limited is situated at an area of 10 acres. Limited beverages capacity of production is 1200 bottles per minute and annual capacity of 98 million bottles (4 million crates) . The present capacity is 1000-1200 bottles per minute. Lumbini owns its own 500 ml, 600 ml, 1.5 liters and 2litres big bottling plant. It produces 1200 bottles per hour At present the company produces Pepsi, 7-Up, Mountain Dew, Mirinda, Teem, Slice, Soda water and Aquafina mineral Water. Out of the total production the share of Pepsi is about 45% and while that of Mirinda is about 20% Mountain Dew is about 20% and the rest (7 Up, Aquafina, and Slice etc. accounts for about 15%). Since Lumbini Beverages Pvt. Ltd. Is a franchise of Pepsi Foods Ltd. The technical knowhow required the chief ingredients for manufacturing the Beverages namely essence will be supplied by Pepsi Co. Again since the Lumbini Beverages Pvt. Limited is situated in backward area the Government also provides some incentives available to the unit are as under: (a) Exemption of sales tax on purchase of raw materials within the state. (b) Exemption of sales tax on sales on sales of finished goods within the state. (c) Many other incentives as applicable to such units feeling under the area declared as most backward area in the state. The company is headed by Director who is Direct Accountable to Chairman cum Managing Director besides this there is a post of Chief Executive Officer who reports to the Director\Managing Director. There are besides the Office and Department in units i.e. sales and marketing, the Production Department Account\ Finance Department, Administration and Purchase Department and Shipping Department.

The executives are reported by the salesman then they report to the Assistant Manager who finally reports to the manager. If required, the manager can also contact directly to these Executives. Similar is the case with other Departments also; these managers in turn reports to Chief Executive Officer, who reports to Director then to Managing Director. The higher official may also contact directly to lower level officials for any relevant information if needed. The work force of the company is around 200 among which 70% are permanent which included managers and higher officers also and the rest are being supplied by the local contractors. The advertisement for different products is being product is being carried out by the PepsiCo as well as Lumbini Beverages Limited. The all India level advertisement is being handled by PepsiCo and the local advertisements is being done through different ad agency namely, Kalpatru, Happy advtrs, Cosmeric advtor etc. The total turnover of Lumbini Beverages Pvt. Ltd. is Rs. 30 Crores. The annual budget 2004-2005 of Lumbini beverages Pvt. Ltd. is around 90Lakhs. Some sales promotion schemes are also there, like one bottle free on purchase of each carat, Key-rings, T-shirts, openers, Watches & ISI-cooler etc. The major equipments of Lumbini Beverages Limited consists of filler, Mojonnier, Bottle washer, Uncase, Caser, conveying system, refrigeration system, water treatment plant, plastic bottles production and other auxiliaries which are the other hand, the auxiliary equipments including utility items are being taken from local Indian Markets. The local contractors under the supervision of foreign technician led to the set-up of Pepsi Co .The maintenance is being done by the company itself through local contractors. Organization structure

MD DIRECTOR

CEO

HR MDM TDM

HOS

BDM

CE

ME

PS

MERCHANDISE

TDM- Treteric development manager. MDM-Marketing development manager BDM- Business development manager ADC- Account development co- coordinators CE ME- Chief executive Merchandising executive

PSR- Presales representative RA- Route agent MDC- Marketing development co-coordinator MFM- Merchandising friezing manager

CHAPTER -3
o Concept of sales and distribution o Sales and distribution system of lumbini beverages pvt. Ltd. o Data analysis

CONCEPT OF SALES AND DISTRIBUTION

Marketing needs a framework that begins and ends with the customer; marketing tools by themselves do not achieve marketing objectives. There is an intermediate step between the deployment of marketing tools and achievements of marketing objectives. A marketing network consists of the company and its supporting stakeholders (customers, suppliers, distributors, retailers, ad-agencies and other) the operating principle is simple: build an effective network of relationships with key stakeholders and profit will follow. A set of marketing tools, the firm uses to pursue its marketing objectives are called marketing-mix. These tools can be classified into four groups which are called the 4 Ps of marketing. (1)Product (2)Price (3)Place (4)Promotion

Soft drink is a FMCG product which has a wide and scattered market. Thus in order to succeed companies needs to breakdown their marketing activities into sub-parts to effectively meet the customer needs. The entire marketing in this case is divided into three parts: Route marketing Home marketing At work marketing

Route marketing:Outlets coming under this market cater to the needs of those customers who are engaged in shopping, eating out in restaurants, going to and from work, in amusement centre etc. in simpler words this marketing is what we call the bazaar. Home marketing:Outlets coming under this market cater to the needs of those customers who buy soft drink predominantly for home consumption either by the glass bottles, pet bottles. The shops targeted under this category are those which are located inside residential complex or are located nearer to the residential areas. These shops predominantly sale pet bottles. At work marketing:Outlets coming under this market cater to the needs of those customers who are working in offices, factories etc. i.e. the outlets targeted are the canteens mainly. Sales promotional activity Sales promotion a very ingredients in the marketing companies consists of a collection of incentive tools, mostly short term, designed to stimulate quicker or grater purchase of particular product or services by customers. Promotional activities play a key role in the entire marketing effort being carried out by LUMBINI BEVERAGA which is in sync with those of PEPSI CO. INDIA. These promotional activities generate more sales as well as create a good image of the Product in the mind of customers. . Promotion tools used by PEPSI company of its marketing activities are: 1. 2. Point of sale display Incentive to Retailers

3. 4. 5. 6. 7.

Sales promotion through sponsoring special events. Sales promotion through various schemes. Advertising. Scratch coupon card Free gift items.

Point of sale display: As it is mentioned that soft drink are kept in FMCG category so it is very necessary to make a proper display of its product. General consumer demands the thing which he looks first. Because in FMCG product consumer is not too much concern about product. So outlet owners are suggested to keep bottles in stand and keep it out of the shop. So that customers have an eye contact with product as he enters the shop. This is particularly true for those brands which have very low customer loyalty soft drink is one such product in which most of the time buying decision is made at the spur rand which is readily available and catches the customer. For this reason Lumbini Beverages invest heavily in this categories by supplying the shop owners with stands so that they can keep the bottles outside on those stands so that customer have an eye contact with them as he/she is entering the shop. Also PEPSI supply the shop with vizi-coolers with a glass front so that cooled bottles can be seen by the customers for making the decision on the flavor that person is going to buy. Apart from these Lumbini Beverages takes keen in the other type strategies like painting the walls of the shops with the PEPSI logo and the shop name. This increases the visibility of the brand among the customer when he/she enter the shop. Incentive to Retailers:Another method of sales promotion is to give incentive scheme to retailer, under this promotional method retailers are given a target regarding the minimum no. of crates that they have to sale in that period, on achieving the target the dealer is given attractive prizes which ranges from free bottles, gift items.

Sponsoring special event:PEPSI is sponsoring various events which include cricket matches, local events like quiz competitors, Parties, local sports, Orchestra, cultural programmed etc. Advertising Policy:Advertising is considered the most important tool to increase sales. PEPSI uses various methods to advertise its product; advertising is made through TV channels, Radio, magazines, Newspaper, Banners etc. Scratch Coupon Card:Scratch card is another type of tool which helps to increase sales. In scratch card the name of the gift item is printed and a layer is covered that prize name. Outlet owner are given that card and after scratching whatever they get company distribute it among them. PEPSI has distributed scratch card by which outlets owners are facilitated by torch, 600ml pet, 300ml liquid 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 consumers. The products appeal should be penetrate of consumers mind. The concerned product should induce to consumers. PEPSI believes that JHO DIKHTA HAI WO BIKTA HAI i.e. any product which is visible is bound to be sold. Method of merchandising:The following methods are used to increase the visibility of product. 1. Visi-cooler placement

2. 3.

Glow Signboard Paintings 4. Crate Stacking 5. 6. Umbrella Banners

Besides the advertisement being carried out by the Pepsi Food Pvt. Ltd. the Lumbini Beverages uses many media message, copy etc. when required by them but one single factor which is very important is that the main head line or slogan must remain the same as used by each Pepsi Food (Soft drink) company on national level. The main slogan being used by Pepsi food (soft drink) all over India for its cola product has been. The choice of a new generation. But past two years, it was dropped and introduced new slogan, Yahi Hai Right Choice Baby and then Yeh Dil Mange More. These characters have been used to advertisement from 1991 to 2003. 1. 1991 Remo Fernandis and Juhi Chawla 2. 1992 Kapil Dev with Growl Buddhist 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 1993 Amir Khan 1994 Md. Azharuddin, Sachin Tendulkar and Kambli 1995 Akshay Kumar. 1996 Md. Azharuddin and Sachin Tendulkar 1997 Rahul Dravid 1998 Shahrukh Khan & Amitabh Bacchan 1999 Govinda & Rani Mukherjee 1999 Sachin Tendulkar & Shahrukh Khan 2000 Ajay Jadeja, Kajol 200 ml 2001 Amitabh Bachchan & Sorav Ganguly 2002 Fardeen Khan, Rahul Khanna 2003 Ganguli, Dravid, Harbhazan, Zahir, Kaif, Shahrukh Khan. 2003 Kareena Kapoor for Pepsi 200 ml. 2005 Sahrukh Khan, for Pepsi 200 ml. 2006 Sahrukh Khan, Kareena Kapoor, Priyanka Chopra

18. 19. 20. 21.

2007 Sahrukh Khan, Kareena Kapoor, 2008 Sahrukh Khan, John Abraham 2009 Mahendra Sing Dhoni Deepika padukone 2010 Ranbeer Kapoor

The other advertisement for its product slice is Pure Mango Pleasure Pepsi is Yeh Hai Youngistan Meri Jaan Hindi - meaning "This is the Young era my dear" (India and Pakistan) , Mirinda is Orange Dikha, Muh Bola Mirinda, 7up is Mood Ko Do Lemon Ka Lift and Mountain Dew is Dar Ke AAge Jeet Hai. Product Trends and Market Structure:The head of sales & marketing is in change of all the marketing activities i.e. sales promotion, publicity, advertising, market survey and shipping. Though his main function is to have a control over the outlets distribution. Sales Executives and sales supervisor assist the Sales Manager. It is producing pet bottle of 2 liters & 500 ml. of all flavors of PEPSI. Pepsi Cola Mirinda Orange Mirinda lemon 7 UP Mountain Dew Slice Tropicana Lehar Soda

Pricing policies:The company first has to decide what it wants to accomplish with its particular product offer. If the company has selected its target market and market positioning carefully, then its marketing mix strategy-including price will be fairly straight forward.

Determining demand:Each price that the company might charge will lead to a different level of demand and will therefore have a different impact on its marketing objectives. The relation between alternative prices that might be charged in the current time period. In the normal case, demand and price are inversely related. That is, the higher the price, the lower the demand, and the lower the price, the higher the demand. Demands set a selling on the price that the company can charge for its product. And company costs set the floor. The company wants to charge a price that covers its cost of producing, distributing, and selling the product, including a fair return of its effort and risk.

Selecting a pricing method:Given the three Cs the customers demand schedules, the cost function and competitors the company is now ready to select a price. Within the range of possible determined by market demand and costs, competitors costs, prices, and possible price reaction help the firm establish where to set its price. The Lumbini Beverages Pvt. Ltd needs to benchmark its costs against its competitors costs to learn whether it is a operating at a cost advantage or disadvantage. The company also needs to learn the price and quality of competitors offers. The firm sends out comparison shoppers to price and assess competitors offers, acquire competitors price lists, buy competitors equipments and take it apart, and ask buyers how they perceive the price and quality of each competitors offer. Once the company is aware of competitors prices and offers, it uses them as an orienting point for its own pricing. If the firms offer is similar to a major competitors offer, then the firm will have to price close to the competitors or lose sales. If the firms is inferior, the firm will not be able to charge more than the competitors. If the firms offer is superior, the firm can charge more than the competitors. The firm must be aware, however, that competitors might change their prices in response to the firms price. In other words we can say that the Lumbini Beverages adopt the going

rate pricing method. In going rate pricing, the firm pays les attention to its own costs or demand and bases its price largely on competitors prices.

Distribution channel Physical distribution is a process of reaching a product to consumer. It consists of all the activities in the physical transfer of goods from manufacturer to ultimate consumer distribution are one the 4Ps of marketing mix. Theoretical Aspects:Main problem of a manufacturer can broadly be divided into two parts. Production and distribution. After production the next main problem faced by the producer is that distribution because the production is made to satisfy the consumers needs. So it must reach the consumers for whom it is made. Thus a way through which goods flows from the producer to consumer is called Channel of Distribution. At first soft drinks is supplied to distributors directly. Retailers cannot take the delivery directly from the company. They have to take it from their respective or nearest distributors. The distributors selected on the basis of assurance given by them regarding minimum sales, which they have mention annually, the selection is also done on the basis of the financial position and reputation of distributing in the market . As for the example, in appointing distributor first priority is given to those who are in cigarette business. Depending upon the market each distributor, in its initial stage deposit some security money. This amount varies between five thousand and ten thousand. The distributor selects the retailers. There is no relation between the company and its retailers. On the other hand there is no definite and fixed criteria fir the selection for appointment of retailers from the side of distributors. One likes Panwala, cigarette shop or any other

shopkeeper can have the stall for the sale of soft drinks and they are called retailers or dealers. They have to give assurance to the concerning distributors for better sales and at the time of taking delivery they have to deposit the security that is the change for the empty bottle with specified purchasing price. The distributors at first have to seek the permission of 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. Generally there is no compulsion on that part of distributors to provide the transportation facilities to their retailers. But the distributors of the big cities provide the transportation facilities to their respective retailers. The distributors and retailers are independent to sell as they want but are controlled to some extent by the company also as they have to give some assurance regarding minimum sales. It happens so because they are given some incentives also. They are fully independent to gear up the market, as they want. The company does the gearing job itself also and sometimes it advises them to the gearing up in a way which is more profitable company or when they charge high price or when they are engaged in black marketing, loading etc. The supply of soft drinks, to the distributors depends upon the ups and downs in sales. But in the initial stages the distributors have to sell up to a minimum target set by the company or as decided by agreement between the company and distributors. In the later stages soft drink is supplies as and when demanded by the distributors. Types of Channel of Distribution Channel of distribution for consumer goods (1)O-Level (2)1-Level

(3)2-Level (4)3-Level Channel of distribution in PEPSI Company to make its products available at the right place, at the right time in the market, at the right price the sales department of the company pays major attention towards controlling the channel of distribution The company right from its beginning stage maintains single type of marketing channel the nature of channel is as following:-

Factor affecting the choice of the distribution channel:There are number of channel & company is to choose any one of them that makes best in the marketing strategy followed by the company. The channel chosen achieve ideal market exposure and should meet the target consumers needs and preferences. In choosing an ideal channel, the producer always has to struggle between what is ideal and what is available need not necessarily be ideal because here are number of factor limit the choices, ideally the lowest cost. Channel may be considered to be the best but it not always so. The main consideration in selecting the channel must be satisfaction of customers and therefore, sometimes relatively high cost channel may proof profitable. Various factors affect the choice of channel of distribution may be classified as follows:Factor relating to product characteristics:(1) Purchase Frequency (2)Weight & Technology of the product (3)Selling price per unit (4)Standardized Product Market factor or consumer factor:(1)Consumer of industrial product

(2)Number of purchase (3)Geographical distribution of customers (4)Size of orders Companies or Enterprise factor:(1)Financial resources (2)Size of the company (3)Product Mix (4)Attitude of company executive (5)Marketing policies Middle consideration:(1)Services provided by middleman (2)Middleman attitude (3)Availability of middleman (4)Sale volume potential (5)Cost of channel usage Environmental Factors:(1)Economical condition (2)Legal restriction (3)Social & ethical consideration Thus the above factors influence the channel decision. The producer must consider these factors before engaging any channel of distribution. It is therefore right to say that the producer is not always free to enjoy complete freedom in selecting channels of distribution. Environment scanning:The process by which organization monitors their relevant environment to identify opportunities and threats affecting their business are known as environment scanning

The external environment in which PEPSI Beverages exist, consist of a bewildering variety of factors. These factors (may also be termed as influences) Are events, trends, issues and expectations of different interested group, these factors are explained below. Events are important and specific occurrences taking place in different environment sectors. Trends are the general tendencies or the courses of action along which events take place. Issues are the current concerns that arise in response to events and trends. Expectations are the demands made by interested groups in the light of their concern for issues. By monitoring the environment though environment scanning, the PEPSI considers the impact of the different events, trends, issues, and expectation on its strategic management process. Since the environment facing organization is complex and its scanning is absolutely essential, strategists have to deal cautiously with the process of environment scanning. Information for environment scanning is collected systematically. Information related to markets and customers, the changes in legislation and regulation which have a direct impact on an organizations activities, government policy statements pertaining to PEPSI business and industry, and so on, could be collected continuously to monitor changes and take the relevant factors into account. Lumbini Beverages conducts special surveys and studies to deal with specific environment issues from time to time. Such studies may be conducted, for instance, when Lumbini Beverages has to undertake special projects, evaluate existing strategies, or devise new strategies. Changes and unforeseen developments may also be investigated with regard to their impact on the organization. Lumbini Beverages

Pvt. Ltd. information in a processed form, available from different sources both inside and outside the organization.

Total market environment:To know the total market environment I have done the market survey & dealer survey. Market Survey:Market survey is one of the most widely used marketing research techniques. Its purpose is collecting specific data concerning the market that cannot be from the companies internal record or from external published source of data; market survey may be of various types like census survey etc. Dealer Survey:In order to know the market share of PEPSI among its competitors we conducted a survey in PATNA. We conducted survey under the guidance of Mr. Arun Kumar (T.D.M of Lumbini Beverages Pvt. Ltd) and Mr. Samrendra Kumar (Customer Executive of Lumbini Beverages). While conducting the survey of the dealers a format provide to me, which has to fill up by the dealers so that it meets the requirements of the organization. The dealer survey as mentioned earlier includes a variety of dealers. I have tried to visit each outlet personally. In order to know the market share of PEPSI and its competitors. I have conducted a survey in Patna. Dealer survey as it increases the turnover of the company and also the investment of the money are increased from varies marketing inputs such as case stock,

advertisement, and surveys we can get an idea, in which area investment is required.

Introduction Dealer survey method is primary method by which one gets first information with respect to following factors:1. Knowledge of market in terms of :a) Number of dealers b) Location of dealers c) Type of dealers d) Market output i.e. case stock , no of glow sign , no of Visi-cooler From this we know how good we are in the market place and in the areas where we are lacking it may be found that in some place only the competitors brands available, then by the help of survey we can find out the reason behind non availability of PEPSI brand in specific area. The knowledge of case stock will indicate our case in trade and that of competitors. This will indicate our case velocity which will help to plan our bottle as well as weather our distribution is effective or not. If our case stock is low then we may decide upon a case stocking campaign. Feedback from the market place regarding servicing of dealers will help us to improve our servicing in the weaker areas. Therefore, appropriate marketing strategy can be worked out depending upon the findings. 2. Distribution Effectiveness:From the dealer survey we can find out the number of dealer and the stock and other details non buyers will also be located. Activation of non-buyers can be done immediately. With the above knowledge one can increase the number of routes to get

increase dealer coverage and hence more effective distribution and higher sales. Also details of this will help to checkup on the route selling of sales man so that we can control them by closely monitoring their performance. 3. How to increase distribution effectiveness: After the above survey, the company can improve the distribution network. Immediate activeness of non-buyers. Improve the dealer coverage. Increase the realignment of routes.

Therefore, dealer surveys are important keeping in mind that distribution forms the major marketing activity in our industry and also that through these surveys one acquires knowledge of the market. It should be also added here that continuous dealer surveys are required because of the following reasons. (a) As our turnover increases we require skills to tackle the problem and dealer survey help in acquiring first hand as to use the skills effectively. (b) With our increased growth, investment of money are increased for various marketing inputs e.g. case stock, advertisement etc. and by survey we can get an indication of the areas in investment should be made to get the maximum benefits.

Uses of dealer survey 1. Market knowledge:Dealer survey gives the total profile of the market by knowing. Location of dealers The type of dealer No. of dealers who keep coca-cola and Pepsi and comparing the stock. Marketing inputs with respect to:a) Advertisement b) Servicing Dealer survey as the word indicates is the survey of every dealer of soft drink in the area. For practical purpose the dealer not only includes the authorized dealer appointed by the company but it also includes the retailers big or small grocery, shops, stationary, restaurant, betel shop , etc. Besides these the various exclusive stalls and sales of pantry cars are also included in it. In a nutshell, by dealer we mean those who are dealing with the soft drink in someway or the other in large or small quantity, directly or indirectly Thus my study includes all such dealers which include various aspects:Route wise no. of dealersCrate strength Per day sale Chilling aid Advertising Nature of outlets Schemes & pay-offs.

While conducting the survey of the dealers a format provide to me, which has to fill up by the dealers so that it meets the requirements of the organization. The dealer survey as mentioned earlier includes a variety of dealers. I have tried to visit each and outlets and personally meet them. In order to know the market share of PEPSI and its competitors. I have conducted a survey in Patna. Dealer survey as it increases the turnover of the company and also the investment of money are increased from various marketing inputs such as case stock, advertisement, and surveys we can get an idea, in which area investment is required.

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

Purchase method:As we can see that PEPSI product is present everywhere, so every people can buy it. PEPSI has launch its product in different range for convenient to every class people. The 200ml and 300ml bottle is available for single person and 600ml and 1500ml pet is available for family pack. The company sales the 200ml and 300 ml cold drink without bottle but the rest of the item is available with bottle.

Sales and Distribution of Lumbini Beverages Pvt. Ltd. Patna, in Patna

Sales promotion in Lumbini Beverages Pvt. Ltd. Advertising and also promotion activities play a vital role in entire marketing efforts. Without these aspects a quality product can not survive in the market. Advertising and sales promotion tools are most essential for the modern global marketing. This chapter has therefore been devoted to the studies of advertising and sales promotional activities in Lumbini Beverage Pvt. Ltd. The two basic objectives for carrying out such various promotional activities by Lumbini Beverages Pvt. Ltd. is To generate more sales as well as to create and maintain an image of its product L.B.P.L. carries out its promotional activities as controlled and integrated programmers of communication and material design present its soft drink to the perspective customers. It also helps in communicating the need satisfying of soft drink to facilitate the sales eventually to contribute towards the profit in long run. The sales used L.B.P.L. for fulfilling the various purposes for its promotional activities are the following: Food N Fizz Space Club Payaas bujyhao profit badhao Agreement GOD(Glass on deposit) Displaying equipments Scratch card, lucky draw & prize.

Distribution in Lumbini Beverages Pvt. Ltd. To make its products available at the right places at the right time in the market, the sales department of the company pays major attention on controlling the channels of distribution.

Single type of markets channel is maintained by the company right from its pioneering stage. The nature of the channel is as follows:Company Distributors Dealers Different Outlet Owners Consumers At first the soft drinks supplied to the distributors directly. Retailers or owners of any outlet can not take the delivery from company. They have to take the products from their respective or nearest distributor. There are about 50 distributors and innumerable number of retail outlets operating with the company in its entire market areas which contains total Bihar. In all the important places of entire territory this company has its distributors. These distributors selected on the basis of assurance given by them regarding the minimum sales which they have to maintain annually. The selection is also done on the basis of the financial position and reputation of distributor in the market. As for example in appointing a distributor first engaged in soft drink business second priority is given to those people who are in cigarette selling business. Depending upon the market, each distributor in the initial stage has to deposit some security money.

The retailers are selected by the distributor fixed criteria for the selection or appointment or retailers from the side of the distributor. Any one like Panwala, Cigarettewala or any other shopkeeper can have the stall for the sale of soft drinks and they are called retailers or outlet owners. They have to give assurance to the concerning distributor for better sale and at the time of taking delivery they have to deposit the security i.e. the charges if the empty bottles with specified retailers purchasing price. The

charges if the empty bottles with specified retailers purchasing price. The distributor at first has to seek the permission of sales department for the number of cases of soft drinks required by them. After getting the proper authority from sales department paying the requisite amount either cash or demand draft.

Warehousing:Every company has to store its finished goods until they sold. A strong facility is necessary because production and consumption cycles rarely match. Warehousing is not a simply storing activity but a package of services that enables the smooth running of the industry. The stores must be in constant touch with the use department in order to provide uninterrupted services to the manufacture and its decision since working capital is locked up in the warehousing stores in equal to money. The stores functions can be organized in the following manner:a) To receive raw material components equipments etc. b) To meet the demand of use department by issuing the order c) Accounting the transaction properly. d) Minimizing obsolescence surplus and scrap by right identification and using correct preservation method. The company supply finished products frequently to different distributors as per the demand. Every distributor keeps a minimum stock of different products of the product line so that the uninterrupted supply could not affect. In the industrial sector service of optimization where boils down to any exercise of optimization where limited available resources are to be distributed equitably. The problem arises from the material that are in stock the form of capital cost, storage loss, pilferage obsolescence, insurance, handling, documentation etc. Services level that can be maintained and hence the concept stores in money should be understood by everybody in the organization.

Inventory decision:-

(1)

Branding and Packaging Out of the total market activities some are directly performed and controlled by Lumbini Beverages Pvt. Ltd. itself some are followed according to the standing instruction of Pepsi Foods Pvt. Ltd. So far as the process of branding and packaging is concerned the Lumbini Beverages Pvt. Ltd. Along with the authorized bottle in India adopt the same pattern.

(2)

Wholesaling Wholesaling includes all the activities involved in selling goods or services to those who buy for resale or business use. Manufactures use wholesalers because wholesalers can perform function better and more cost effectively than the manufacture can. These functions are not limited to selling and promoting, buying and assortment building bulk barking, warehousing, transporting financial risk bearing dissemination of marketing information and provision of management services and consulting. Like retailers wholesaler must decide on target market, product assortment and services promotion and place. The most successful wholesalers are those who adopt their services to meet and target customers needs, recognizing that existing to add value to the channel.

(3) Retailing Retailing includes all the activities involved in selling goods or services directly to find consumer for their personal non-business use. A retailer or retail store is any enterprise which sales volume comes primarily form retailing. All marketer retailers must prepare marketing plans that include decision on target market. So the marketing channels can be viewed as a set of interdependent organization with high potential for conflict. Then why would any business chosen to become part of channel system.

Transportation :Transportation is life blood of business management and commerce. The purchase offices job in incomplete until and unless he ensures that the material is shipped from the vendors premises located in different areas to his organization. Purchasing the transportation is a key element in his job particularly in the context of the transportation cost. In deciding to transporting models shippers can choose from private contract and common carriers. Transport decisions must consider the complex trade off between various transportation mode and their implications for other distribution elements such as warehousing and inventory.

Distribution of pepsi:Here there are four systems of distribution channels. Channel 1. Channel 2. Channel 3. Channel 4. ManufacturerConsumer ManufacturerRetailer..Consumer ManufacturerWholesaler.RetailerConsumer Manufacture.WholesalerJobberRetailer..Consumer Channel of distribution of Lumbini Beverages Pvt. Ltd.

By Lorry or Truck

Distributor

Dealers of customer

Performance of Pepsi in Patna:Patna has a significant role for Pepsi, in products are supplied by Lumbini Beverages Pvt. Ltd., Patna. There are more than eight hundred including exclusive and nonexclusive outlets of Pepsi in proper Patna. The highest sale of this year __________ cases was in the month of May and total sale of this year was..cases so far. Hierarchy is also necessary to understand the capacity of Patna town. Hierarchy of Patna:Distributor Consumer Executive Sales Man Accountant Vehicle Loader and Unloader

Data analysis
1) Type of out late:Number of out late- 137 Type of out late Groceries (GR) Convenience shop (CON) Eatery (ET) Modern tech. No of out late 49 45 40 3

Interpretation:- groceries means general store & kirana store that is more in south-east Patna. Convenience shop means stationary shop and telephone booth. Eatery means hotel and restaurant and modern tech. means mall and mart.

2) Which soft drink do you sell in your store? a. Pepsi b. Coca Cola c. Both Alternatives Pepsi Coca Cola Both Response of Retailer 33 51 53 % age 24.08759124% 37.22628% 38.62613%

Bar chart of retailer response Interpretation:- coca cola is very loyal for many retailer but customer like Pepsi for taste. Some street was only for coca cola.

3) Do you have current GRB (FLD+MTS) stock in your shop? a) Pepsi b) Both Alternatives Pepsi (PCI) b) Coca cola c)Not available Response of Retailer 30 % age 21.8978 1 Coca cola (CCX) Both Not available(N.A) 41 48 18 29.92701 35.0365 13.13869

Pie chart of retailers response Interpretation:- Here Pepsi is week in distribution of glass bottle. Because many distributor use to go there weekly while retailer need daily.

4) Do you have current PET (FLD+MTS) stock in your shop? a) Pepsi b) Coca cola c) Both d) Not available Alternatives Pepsi (PCI) Coca cola (CCX) Both Not available (N.A) Response of Retailer 28 45 35 29 %age 20.44 32.84 25.54 21.16

Interpretation:- to some extend plastic bottle distribution is good because PepsiCo has more offer for retailer and coca cola has more offer for consumer on pet bottle.

5) Do you have freeze in store? a) Pepsi C) Both b) none Alternatives Pepsi (PCI) Coca cola (CCX) Both None (N.A) Response of Retailer 29 49 48 11 %age 21.16 35.76 35.03 8.02 b) Coca cola d) Own

Interpretation:- Freeze for Pepsi is only 21% which is very few because PepsiCo does not have own freeze repairing center so Pepsi old freeze is thrown by retailer.

6) What is your annual sale of GRB from your shop? a) 0 to300 b) 300 to 600 c) 600 to 900 d) 900 & above

Alternatives 0 to 300 300 to 600 600 to 900 900 to above No comment(N.C)

Response of Retailer 28 35 25 10 39

%age 20.43 25.54 18.24 7.29 28.46

Interpretation:- many shopkeeper do not want to say anything about Pepsi annual sales. 7) Which brand is preferred the most? a) Pepsi b) Coca cola c) Both

Alternatives Pepsi Coca Cola Both

Response of Retailer 21 44 72

% age 15.32% 32.11% 52.55%

Interpretation:- 52% retailers like both 15% likes Pepsi here this is not good because of bad distribution system.

8) Do you receive the delivery of Pepsi products in following terms? a) Daily b) Alternate c) Weekly d) No comment

Alternatives Daily Alternate Weekly No comment

Response of retailer 71 31 33 2

% age 51.82 22.62 24.08 1.45

Interpretation:- more retailer get daily distribution of Pepsi and some general store, telephone booth get weekly delivery.

9) Do you receive the delivery of PepsiCo products in time? a. Yes b. No Alternatives YES NO Response of retailer 71 66 %age 51.82 48.17

Interpretation:- 48% retailer do not get pepsi product on time while they have big demand of pepsi product.

10) Are you satisfied with the Pepsi products? a. Fully satisfied b. Partially satisfied c. Not at all Alternatives Fully satisfied Response of Retailer 110 %age 80.29

Partially satisfied Not at all

20 7

14.59 5.12

Interpretation:- 80% retailers are happy with PepsiCo, 15% retailers have partial satisfaction because of offer and distribution of Pepsi.

CHAPTER -4

o Findings o Suggestions o Bibliography o Questionnaire

FINDINGS
With the help of data collected, I made the following findings:1. The number of PEPSI outlets is more than the number of competitors outlets at Patna

that resulted in increase of sale of PEPSI products.

2.

In the city like Patna, PEPSI products are reaching to every corner .

3.

All the areas in Patna, almost the dealers are satisfied with the distribution network of

the PEPSI products. 4. Most of the retailers want glow sign and chilling equipments, like vizi-coolers.

5.

In cola segment COCA-COLA is main competitor of PEPSI, in orange segment

FANTA is the main competitor of MIRINDA, in lime segment SPRITE is the main competitor of 7UP and MOUNTAIN DEW, in juice (mango) segment MAAZA is main competitor of SLICE. 6. Dealers are asking for the incentives and sales promotional schemes.

7.

Some dealers and retailers stoped selling PEPSI products because they are not

satisfied with the company, where COCA-COLA fulfill some of their expectation and got the opportunity to make exclusive counter for the soft drinks. 8. The young generation of people likes most PEPSI, 7UP and M.DEW while women,

children and older people like SLICE and MIRINDA

SUGGESTION
1. Sponsored communication at the point of sale can change the customers perception

about the product, hence pop material should be widely used.

2.

More improvement is required in the distribution network in the outskirts of the city

and in the remote areas, because in the peak season like summer the small dealers are taking goods twice or thrice in week and in between if the distributors could not supply them, the competitors will get the opportunities to supply the goods.

3.

Salesman should have good interaction with the dealers, which results in increase of

sales to company products. 4. Company executives should visit the counter on daily basis, at least in summer.

5.

Executives should take the feedback from the retailers about the service of the

salesman and the distributors. 6. The entire PEPSI products should be displayed at one place so that the customers can

aware about the different brands of PEPSI

7.

In the bus stand, railway canteen, highway the CAN and PET Bottles should be made

available all the times. 8. Regular visit of technical persons is required to solve the problems of Visi-cooler on

the market at the right time.

BIBLIOGRAPHY Web Sites Referred:

WWW.Pepsi.com

 WWW.pepsiindia.com WWW.coke.com WWW. answers.yahoo.com WWW.justdrinks.com www.amul.com www.parle.com www.fao.com www.notjustsurveys.com

Books Referred : Marketing management (Phillip Kotler) Marketing Management (DEP. APP. ECO. & COM) Research Methodology (C.R. Kothari) Research Methodology (A.K. Singh) Business Research Methodology (DEP. APP. ECO. &COM)

QUESTIONNAIRE

A Study on sales and distribution system of PepsiCo ( beverage ) in the territory of Patna, with special reference to Lumbini Beverages Pvt. Ltd.

Name of the shop: . Type of shop:- (grocery/convenience/eatery/modern tech.)

1.

Type of out late? a) Groceries (GR) b) Convenience shop (CON) c) Eatery (ET) d) Modern tech.

2) Which soft drink do you sell in your store? a. Pepsi b. Coca Cola c. Both 3) Do you have current GRB (FLD+MTS) stock in your shop? a) Pepsi b)Both a) Pepsi b) Coca cola c) Both d) Not available 5) Do you have freeze in store? a) Pepsi C) Both e) none b) Coca cola d) Own b) Coca cola c)Not available

4) Do you have current PET (FLD+MTS) stock in your shop?

6) What is your annual sale of GRB from your shop?

a) 0 to300 b) 300 to 600 c) 600 to 900 d) 900 & above 7) Which brand is preferred the most? a) Pepsi b) Coca cola c) Both 8) Do you receive the delivery of Pepsi products in following terms? a) Daily b) Alternate c) Weekly d) No comment 9) Do you receive the delivery of PepsiCo products in time? a). Yes b). No 10) Are you satisfied with the Pepsi products? a. Fully satisfied c. Not at all b. Partially satisfied