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TABLE OF CONTENTS
1. INTRODUCTION :-
COMPANY PROFILE-IN U.S. COMPANY PROFILE-IN INDIA BUSINESS SEGMENT BEVERAGE INDUSTRY FOOD INDUSTRY ADVERTISEMENT AND ADD CONCEPT
3. OBJECTIVE OF THE STUDY 4. RESARCH METHODOLOGY 5. DATA ANALYSIS MARKET FINDINGS ROUTEWISE QUESTIONNAIREWISE 6. SWOT ANALYSIS 7. CONCLUSION 8. LIMITATIONS 9. RECOMMENDATIONS/SUGGESTIONS 10. BIBLIOGRAPHY 11. ANNEXURE QUESTIONNAIRE EVERY DEALER SURVEY (EDS)
PREFACE Marketing plays pivotal role in todays business scenario in consumer product Company, when there is such a high competition in the market.
The emphasis in the project is providing the study and an insight into Indian FMCG Business Scenario. The Summer Project is designed to provide participation of MBA program as on the job experience. This has given a chance to try and apply the academic knowledge and gain insight into corporate culture. This helps in developing decision-making abilities and emphasizes on active participation by the student.
We undertook our Project in Varun Beverages, a leading Bottler and Marketing partner of the Pepsi Foods. During the training, we had worked on the project Distribution strategy of PEPSI in JAIPUR.
We gained valuable experience & knowledge during the survey. The Project consists of our findings after data analysis & then SWOT analysis & conclusions were drawn and finally recommendations were put forward.
ACKNOWLEDGEMENT
I express our thanks to Varun Beverages Ltd for granting me the permission to work with the esteem organization. I am also thankful to Mr. ARUN GARG (TDM) / Mr. DEEPAK MEETAL(C.E.), Varun Beverage Ltd. who guided and helped us in all possible ways they could, at every stage of the project. My humble thanks are due to all S work.
GOPAL KHANDELWAL
INTRODUCTION
Modern age is full of competition. Today only way of success is your continuous efforts towards the growing market needs and in satisfying them. It is the marketer job to know what the market speaks i.e. the ever changing needs of the customer through market research & adopt them fruitfully. It is must for all the companies to make policies according to the customers and the govt. Today to succeed for any organization has to target its customer needs, to create a culture in the organization i.e. market conscious & responsive to customer needs. Soft drinks industry has become big business in India in recent years. The soft drink business under went major change with the entry of PEPSI and re-entry of COCA-COLA in India in the late 80s when Parley with brands like Thumsup, Limca & Gold spot was a clear leader. Coca-Cola took up the product line of parley in 1993-94; today both brands are the Indians favorite soft drinks
Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. 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, including Gatorade, in 2001.
Pepsi-Cola Company - Pepsi-Cola (formulated in 1898), Diet Pepsi (1964) and Mountain Dew (Introduced by Tip Corporation in 1948).
Frito-Lay, Inc. - Fritos brand corn chips (created by Elmer Doolin in 1932), Lay's brand potato chips (created by Herman W. Lay in 1938), Cheetos brand cheese flavored snacks (1948), Ruffles brand potato chips (1958) and Rolled Gold brand pretzels (acquired 1961)
Pepsi co is the world leader in the food chain business. It consists of many companies amongst which the prominent one is Pepsi cola, frito
lay, Pepsi food international, pizza hut, and KFC and taco bell. The group is presently into three most profitable businesses namely, beverages, snack foods and restaurants. It has scores of big brand available in nearly 150 countries across the globe.
The beverages segment primarily market Pepsi diet, mountain dew and other brands worldwide and 7UP outside the U.S. market. They are positioned in close competition with Coca-Cola inc. of USA. A point to be noted is that coca cola get 80% of its profit from international operation while same figure of Pepsi co. stand at 6%, the segment is also in the bottling plants and distribution facilities.
The restaurant segment primarily consists of the operations of the worldwide pizza hut, Taco Bell and KFC.
Long time no.2 player in the cola wars, Pepsi co. is widening the play field, over the last years; the company has invested more than $2billion in its worldwide operations.
When Coca-Cola changed its formula in 1985, Pepsi stepped up its competition with its long time archival claiming victory in the cola wars. Coke and Pepsi expanded their rivalry to tea in 1991 when Pepsi formed a venture with #1 Lipton in response to cokes announced venture with nestle (Nestea) it has won over 30% of the ready to drink tea market, a
part
of
the
so
called
"new
age
beverages
segment.
The beverage industry has witness the phenomenal growth over the last few years necessitating capacity increase and builds up of commensurate infrastructure to meet the businessgrowth, which is accordingly matched. PepsiCos success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of our people.
JAIPURIA GROUP is a Rs.1500 Crore, family controlled, reputed business house with over a century of operations in diversified fields.
The group as on today can boast of expertise and leadership in the fields of food and beverages, textiles and real estate development with varied interests in a wide Range of products and services.
The Jaipuria Group under the leadership of the three brothers SK Jaipuria, RK Jaipuria and CK Jaipuria has today become one of the leading business houses of the country.
The following are the major areas of operations of the Jaipuria Group:
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It can be said with absolute certainty that the RKJ Group has carved out a special niche for itself. Our services touch different aspects of commercial and civilian domains like those of Bottling, Food Chain and Education. Headed by Mr. R. K. Jaipuria, the group as on today can lay claim to expertise and leadership in the fields of education, food and beverages.
The business of the company was started in 1991 with a tie-up with Pepsi Foods Limited to manufacture and market Pepsi brand of beverages in geographically pre-defined territories in which brand and technical support was provided by the Principals viz., Pepsi Foods Limited. The manufacturing facilities were restricted at Agra Plant only.
Varun Beverages Ltd. is the flagship company of the group. The group also became the first franchisee for Yum Restaurants International [formerly PepsiCo Restaurants (India) Private Limited] in India. It has exclusive franchise rights for Northern & Eastern India. It has total 27 Pizza Hut Restaurants under its company.
We diversified into education by opening our first school in Gurgaon under management of Delhi Public School Society. The schools of the group are run under a Registered Trust namely Champa Devi Jaipuria Charitable Trust.
Companies are medium sized, professionally managed, unlisted and closely held between Indian Promoters and foreign collaborators.
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The group added another feather to its cap when the prestigious PepsiCo International Bottler of the Year award was presented to Mr. R. K. Jaipuria for the year 1998 at a glittering award ceremony at PepsiCos centennial year celebrations at Hawaii, USA. The award was presented by Mr. Donald M. Kendall, founder of PepsiCo Inc. in the presence of Mr. George Bush, the 41st President of USA, Mr. Roger A. Enrico, Chairman of the Board & C.E.O., PepsiCo Inc. and Mr. Craig Weatherup, President of Pepsi Cola Company.
Continuously excel to achieve and maintain leadership position in the chosen businesses; and delight all stakeholders by making economic value additions in all corporate functions.
MAIN CREDENTIALS
1. VARUN BEVERAGES LIMITED received" GOLD STANDARD AWARD" for the production and quality control for the year 1996-97. 2. Jaipuria group was adjudged Best Bottler out of more than 2000 bottles all over the world for the year 1996-97.
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BUSINESS SEGMENTS
The RKJ Group is divided into three-business segments- Beverage, Food and Education. It has a leading market position in each of its three business segments. Our balanced portfolio produced a solid business performance. Products and services, which look to the future, ensure that we will be well placed in growth markets.
Cream Velley
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BEVERAGE 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 Non-Carbonated 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
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India. And in future, they will also be used to manufacture fruits mincebased soft drinks like slice and mangola.
INGREDIENTS OF SOFT DRINK: We only use the finest ingredients to make Pepsi-Cola products. To guarantee our consumers consistent quality, each ingredient must pass our high standards, rigorous quality control tests and strict bottling procedures.
Pepsi-Cola products contain natural flavors, including extracts of the kola nut ND flavor oils derived from natural sources such as citrus and other fruits. Caramel (made from corn sugar) adds color and flavor to our colas. Other ingredients add a refreshing taste: phosphoric acid in colas; citric acid and sodium citrate in Mountain Dew, Slice and Diet Pepsi.
We also put a freshness date on every can and bottle. Soft drinks may lose some flavor over time so our freshness date tells consumers when the product is freshest and best tasting.
Every can and bottle of Pepsi-Cola products has a Nutrition Facts panel, which shows the number of calories and other nutrients per serving. There is essentially no fat in any Pepsi-Cola a product. The main ingredients found in Pepsi-Cola products include carbonated water, carbohydrates, sugar, sodium, potassium and caffeine. For a complete breakdown by ingredients by product, see our product information for Pepsi, Diet Pepsi, Mountain Dew, Slice and Aquafina.
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Ascorbic Acid
Another name for Ascorbic Acid is Vitamin C the Ascorbic Acid used in our carbonated soft drinks functions as an antioxidant to protect the flavors, color, and taste. In some beverages we also add it to provide the nutritive value found in Vitamin C.
Aspartame
Aspartame is a sugar substitute used in our diet beverages and many other food products. Aspartame is made of the same building blocks as protein, so it is considered a "nutritive sweetener," but the very small amounts used in diet drinks contribute no calories.
Blue1
Blue 1 is a FDA-approved food coloring used in a variety of products such as jellies, condiments, puddings, and beverages.
Brominated vegetable oil has been used by the soft drink industry since 1931. It is a widely used food additive that has been extensively tested and approved by the U.S. Food & Drug Administration. Brominated vegetable oil is derived from soybean oil that has been modified in order to keep the flavoring oils well blended.
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Caffeine
Caffeine provides a characteristic flavor to soft drinks. Caffeine is naturally found in coffee, tea and chocolate. For comparison, an 8-oz. cup of brewed coffee can have from 85-120 mg of caffeine on average, while an 8-oz. serving of Pepsi contains about 25 mg of caffeine. An 8-oz. cup of coffee therefore contains three to four times as much caffeine found in a caffeinated colon. There is no caffeine in Caffeine Free Pepsi, Caffeine Free Diet Pepsi, Aquafina, Slice, Mountain Dew or Mirinda.
Caramel
Citric Acid
Citric Acid can be found in citrus fruits such as lemons and oranges. Citric acid is used to bring out the flavor of other ingredients and imparts a tang or tartness to beverages. Citric acid is not Vitamin C. the same fruits that have citric acid often have Vitamin C but the technical name for Vitamin C is ascorbic acid. Gum Arabic Gum Arabic is a purified natural vegetable gum obtained from the acacia tree and is used in keeping our carbonated beverages well blended.
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High Fructose Corn Syrup (HFCS) is a sugar derived from corn and provides sweetness and taste to our beverages. HFCS has the same sweetness as table sugar (sucrose) and has almost the identical composition of fructose and glucose.
Natural Flavorings
Natural Flavorings are flavoring ingredients that are the essences or extracts derived from natural plant sources. Natural Flavorings are what gives a product its distinctive flavor and taste. Pepsi products are the only products with these distinct flavor blends, which are considered part of our secret formula. The term natural flavor is defined by the food and drug administration and all of our natural flavorings meet this definition.
Phosphoric Acid
A small amount of phosphoric acid is added to our soft drinks. However, it is greatly diluted and is fully approved by the U.S. Food and Drug Administration for use in soft drinks. Phosphoric acid provides tartness, essential to a well-rounded flavor. Phosphorus, like calcium, is an essential mineral in bone. It is widely distributed in the food supply, including fish, milk, meat, eggs and cereal grains.
Potassium
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Potassium in Pepsi-Cola products may come from water or as part of certain ingredients. For example, potassium may be combined with benzoic acid, which helps prevent spoilage and flavor changes. Potassium is an electrolyte that helps meet the mineral needs of active people.
Quillaia
Quillaia Extract is a purified extract derived from the bark of the Quillaia tree. It is carefully selected based on its characteristics. It is cooked, filtered and pasteurized. It is FDA-approved, non-hazardous. Quillaia is found in some of our frozen drinks.
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Sodium
All of our products are "low sodium" and contains less than 110 mg per eight-fluid-ounce serving. A number of beverages have less than 35-mg sodium per serving, so they are considered "very low sodium" products.
Sugar
Regular soft drinks and sports drinks are sweetened with sugar. There are many types of sugar available today. In soft drinks and sports drinks, the sugar is primarily high fructose corn syrup, which comes from corn.
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Total Carbohydrates
Total carbohydrates include the sugars and any carbohydrate-like parts of ingredients, such as organic acids. Although diet drinks may have no sugar, they may contain more than half a gram of carbohydrate.
Yellow5
Yellow 5 is a FDA-approved food coloring. Used since 1916, it is found in a variety of products such as skim milk, yogurt and macaroni and cheese.
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FOOD INDUSTRY
The last decade has been a period of dynamic growth for non-alcoholic drinks and has witnessed completely new segment of the food market in India taking shape. Food market at stake in India is enormous. The food chain and the forces acting on the food chain are changing rapidly, and in a generally positive manner.
India's sheer size and diversity are enough to make it an attractive market for nearly every major food, beverage and agribusiness company. A KSA Technopak study indicates that the fast food industry in India will be worth $1.27 billion by year 2005. To capitalize on the RKJ groups significantly important relationship with Pepsi Foods, it decided to venture into food sector, which is second largest business for Pepsi all over the world. Fast food is the most happening thing across the world.
The group became the first franchisee for Yum Restaurants International formerly PepsiCo Restaurants (India) Private Limited in India. It has exclusive franchise rights for Northern & Eastern India. Out of 56 operational Pizza Hut restaurants in the country 27 restaurants are owned and run by its company.
All these restaurants are making good profits & are dominating the market. The name of business entity is Devyani International Private Limited.
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The India ice creams and frozen desserts market forms part of the food industry. Ice creams and frozen desserts are convenience products, which are ideally suited to the emerging lifestyles and eating trends of
Urban India.
The RKJ group has its presence in the Ice Cream segment since 1991, when it started manufacturing and marketing Ice Cream under the brand name of Gaylord in the state of U.P. During 1996 it sold its brand to Brooke Bond and started supplying Ice Cream to Hindustan Lever as their Ice Cream souring plant. After working for 10 years in this field, during 2003 it has launched its own brand in technical and marketing collaboration with Candia of France.
Advertisement and Add Concept:Advertisements are cost effective means to communicate messages and ideas to build brand preferences and awareness and it is one of the most important tools which a company uses to direct persuasive communication to directive buyers in public or to educated people to avoid hard drink and so on.
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The basic objective of advertising is sales promotion sales promotion expenditure have been increasing as a percent of budget expenditure annually and the growth is likely to continue in future. Our celebrities signed by the PepsiCo are as follows:
For PepsiCo. Cricketers: Sachin Tendulka Rahul Dravid Mohd. Kaif. Yuvraj singh Harbhajan singh. Sourav Ganguly. Zaheer Khan Ajit Agarkar Cine Stars Kareena Kapoor
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Shahrukh Kajol SALMAN KHAN Fardeen Khan Amitabh Bachhan Govinda Rani Mukherjee. Tennis Stars : Leander Paes Mahesh Bhupati Football Players Cyrus Broacha Bhaichung Bhutia
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2. A BOTTLE THAT IS CHILLED IS SOLD: - In the industry it is considered that a bottle is chilled or putting in cooling compartment is sold. That is the reason the policy providing triages come up because according to the contract the shopkeeper has to keep only & only Pepsis products in the visicooler.
3. A BOTTLE LOSS TO COKE IS A GAIN TO PEPSI: - The competition is so strong between the two companies i.e. fighting is on for each bottle that is to be sold in the market. Competitive bidding goes on for each & every prestigious outlet in their region. Monopolizing entries & fat foods joint s is their first priority.
4. EMPTY KA HI KHEL HAI: - [Empty plays an important role]: - As discussed earlier the distribution points keeps on putting up distribution schemes for retailers i.e. like two bottles of solution free with the purchase of every one carat of solution. Now these schemes
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have timed well keeping minding the environmental conditions & schemes provided by the other company. These schemes are of twenty-four hours duration. If a scheme is launched & there is no empty in the market for refill, the whole effort goes in vain that is the reason is said ki sub empty ka khel hai.
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9/12/24/32/63/12/55/12/22/15/10/22/-
192/263/540/360/ 531/263/630/264/492/332/215/492/-
15/-
160/199/-
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PRICING OF EMPTIES
QUANTITY PRICE
200ml 300ml The Shell Cost Rs 100/- each Empty bottle Rs 6/- each
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TERRITORY DEV.
QUALITY CONTROL MANAGER MARKETING EXECUTIVE EXECUTIVE SHIPPING MGR. SALESMAN TRANSPORT MGR.
CUSTOMER
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DISTRIBUTION NETWORK
Total market of JAIPUR is divided into, 1 C&F Agent & 8 distributors take care of JAIPUR. Market and is having a market share of 48% of the total JAIPUR .
PROMOTION: -
The promotion budget is set by the Head Office and thereby is distributed among the different bottlers all over the country on the basis of there past performances & requirements.
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Jaipur
Distributors
Distributors
C&F
Retailers
Retailers
Retailers
Retailers
CONSUMERS
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DISTRIBUTION STRATEGIES
A Company can choose any of the following distribution types: Exclusive Distribution Selective Distribution Intensive Distribution PEPSI HAS STRATEGY. ADOPTED THE INTENSIVE DISTRIBUTION
INTENSIVE DISTRIBUTION: A Strategy of intensive distribution is characterized by placing the goods or services in as many outlets as possible. When the consumer requires a great deal of location convenience, it is important to offer greater intensity of Distribution. This strategy is generally used for convenience items such as Tobacco, gasoline, and soap, snack foods & bubblegum.
Manufactures are constantly tempted to move from exclusive or selective distribution to more intensive distribution to increase their coverage and sales and you could find Pepsi in nursing homes, confectionery shops, departmental stores; you name it & Pepsi is available there.
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They are proactively addressing these emerging trends by approaching distribution and channels in a much broader way. They are shifting emphasis from mere reach or availability expansion to touching consumers with a 3- way convergence- of product availability, brand communication and higher level of brand experience.
They are thus going beyond delivering products and creating greater engagement and interaction around the purchasing experience.
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Product Availability
Point Of Purchase
Brand Communication
Brand Experience
Pepsis reinvention of distribution is built on an understanding of emerging consumer trends, the retail environment and the growth drivers of our brands. Pepsis distribution system is a key external resource. Normally it has taken years to build and cannot be easily changed. It ranks in importance with key internal resources such as manufacturing, research, engineering and field sales personals. It represents significant corporate commitment to set policies and practices that constitute the basic fabric on which is woven an extensive set of long run relationship.
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Marketing channel perform the following functions To gather the information about potential and current customers, and competitors. To reach agreements on Price To list orders with manufacturers. They provide the successive storage and movement of physical products.
It can be defined as backward and forward integration i.e. starting from supplier of the raw material to the end customer. The physical flow of Pepsi from its manufacturing unit at Kosi (Varun Beverages) to various retailers in JAIPUR is as follows-
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FLAVORS: Cola Orange Clear Lemon Cloudy Lemon Berry Ginger Mango Slice
Out of these products the 70% of the sales of the company come from the Cola brand, which is the market leader in the most part of the country of these kinds of packaging in which the product is available make them 80% of the sales come from these bottles. The businesses of returnable bottles are very cumbersome and make the market very complex and demanding.
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3. DISPLAY MATERIAL Stickers Banners G.S. Boards D.P.S. Boards Racks Counters Umbrellas Table&Chair
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In Jaipur work is done by O B S method. In this method fist day order is taken & next day deleivery is done. In this method the is divided into two parts and one day order is taken of first route and another day the order is taken from second route. Order is taken by P S R. In Jaipur two distributor. Shree shyam Enterprises Ankur Agencies Shree je Distributer Guru kripa Gudiya Anuchana
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RESARCH METHODOLOGY
Research in common refers to a search of knowledge. One can also define research as a scientific & systematic search for pertinent information of a specific topic. It is the pursuit of truth with the help of study observation, comparison & experiment.
After deciding the objective of marketing research the next step is deciding Resach plan for gathering effective information related to this research project. The research consists of following steps, which are discussed subsequently.
Research Design:
Descriptive Research: In my market survey descriptive research process was carried out to describe the market characteristics, consumer profiles, distribution strategies, and market potential.
Data Source:
During project study I use both primary as well as secondary data source. For primary data collection I visited various retailers in Jaipur & for secondary data I went through Books, Journals & Internet. The information collected is relevant, correct & unbiased.
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Research Design:
I followed survey technique for collecting the data. In market survey research approach. Here, I carried out information from retailers have carefully selected the instrument & methods of surveying like I have chosen personal contact methods because of higher response rate & meaningful responses this helped me to get the general feedback in Pepsi, etc.
Reach Instrument: The research instrument used was EDS form. In which market information detail of each outlet should be filled in EDS form. For this I have visited each & every outlet & check all the brands & packs of Pepsi are available or not or which one is available in comparison with Coke & filled it in EDS forms. In my research process I have used closed ended & open-ended questionnaire where respondents could answer in their own manner. Through this I was able to extract information from the respondents about Pepsis products & the competitors.
Sampling Plan:
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Sampling Size: I have surveyed about each & every outlet of the area specified to me so size would reach upto 350 retailers.
Elementary Retailers.
Contact Method:
In my research process, I have collected information through personal interview process with the help of EDS. Form given by the company because it is the most reliable & accurate method for collecting primary data. Through this, the analysis of body language & facial expressions can be made.
In this market study I have used pie chart for data analysis & interpretation because pie chart is the easiest & comprehensive medium for presentation of data.
Sampling
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45
Route - Kalwar road Salesman - Kamlendr singh Total Outlets 70 Vehicle Mahindra Pick up
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Route - Sirsi road Salesman - Ishwar singh Total Outlets - 75 Vehicle Mahindra Pick up
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Route - Sindhi camp Salesman - Harish deewan Total Outlets 100 Vehicle Mahindra Pick up
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Route - Railway station Salesman - Abhay singh Total Outlets - 60 Vehicle Mahindra Pick up
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Route - Khatipura Salesman - Narayan singh Total Outlets - 60 Vehicle Mahindra Pick up
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Demographic Profile
15%
5% 20%
20%
40%
Year
10-15
15-20
20-25
No. 1
25-30
above 30
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Time Preference
30%
60% 10%
Evening
Morning
No. 2
Any time
52
6%
1%
41%
52%
Pepsi
Coke
Thums Up
No. 3
Other
53
2% 38%
s
60%
Pepsi
Coke
No. 4
Others
54
2%
8%
90%
One
Two
55
1%
41%
52%
6%
Pepsi
Thamsup
Coke
Campa
No. 6 (I)
56
30%
70%
Limca
Mirinda Lemon
No. 6 (ii)
57
49% 51%
Sprite
7 Up
No. 6 (iii)
58
11%
89%
Yes
No. 7
No
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SWOT ANALYSIS
STRENGTH Pepsi is a well-established co., so it has a good reputation in the market. Advertising of Pepsi is much more aggressive than Coke. Backed by huge promotion at national & international level. Lot of SGAs provided in the market. . WEAKNESS Non-fulfillment of commitments on time, made to shopkeepers. Incompetent salesman who do not give the schemes in the market regularly. Unavailability of various demanded flavors like Mountain Dew & Mirinda Lemon. Not proper control over distribution network.
OPPURTUNITY May tie up or liaison with major showrooms, computer centers & restaurant. Huge publicity of Lemon Miranda /Slice has created a lot of demand. Company has brand equity in the eyes of customers, so its new products can easily penetrates in the market. Untapped market.
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THREAT Threat of competitors new brand entry in the market in near future. Restrictions made by Govt. agencies that soft drinks are harmful & non-nutritive.
Natural juice are now available whose price are less or same as soft drinks.
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CONCLUSION
1. After visiting nearly 350 outlets I found that Pepsi & its Brands is not doing a good job in jaipur. It is clear that Pepsi (58%) has lagging Coke (38%) in the soft drink market in jaipur region. If we compare it with Signage or display material than Pepsi has an edge over coke. 2. At this time it is solely depends on the retailer which brand he offers to the consumer? Although the company has been unable to satisfy the retailers. The company must take immediate steps in order to resolve its disputes with these retailers.
3. It was also found that the schemes that are brought up in the market by Pepsi & Coke after every couple of day is not making any net effect on the sale of Cola, whereas one is cannibalizing others market only. 4. It was also seen that Pepsi brand is better sold than coke. But it is Thumsup, which is making the major difference in the market.
5. The sale in agewise section, it was found that 200ml is sold in all the age groups with same frequency but 300ml is sold mostly in 16 to 45yr. of age group where as CAN is sold in hi younger generation only. Finally 2lit. Are used only for family or party purpose. 6. It was also seen that Pepsi brand is lagging the Coke especially in Muslim dominated area, which makes a major difference in the market.
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LIMITATIONS
Findings are based on the views expressed by the consumers. So it may suffer from biased prejudices. Weather conditions were not favorable. Some of the respondents were not co-operative & many seem to be having no interest. The study has not been intended on a very large scale, have the possibility of errors, which cannot be ruled out. Time limitations. Area was specified. It is extremely difficult to persuade retailer to respond to questionnaire. The retailer knows us as people from Pepsi there by the responses could have been biased. I had lack of knowledge about the product of the local market. The company does not provide any financial assistance. The time allowed for the project was very short (8 weeks). It was impossible to study deeply in that short period. There was the staying place hearer to local market.
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RECOMMENDATIONS:1. PEPSI, the choice of Generation next is not providing the first choice of young generation. A young generation wants something strong in cold drinks & thus prefers Thumsup. Pepsi should come out with some extra strong taste to catch up maximum young generation & to become exactly Generation Next drink.
2. Company should appoint competent & honest salesman so that they could provide schemes to the entire retailers & cover their full route.
3. It is often seen that some salesman do not intimate schemes to the retailer & few of the retailers complained about it. So there should be frequent visits of Customer Executives to their respective areas to keep the shopkeepers benefited with various schemes.
4. Delay in starting of supply vans from respective depot should be checked & a proper time register should be maintained.
5. Most of the retailers are complaining about non-fulfillment of commitments regarding their sampling. Company should make sure that the retailers get the sampling on time so that they are satisfied.
6. Most of the retailers are complaining about delay & no replacement of burst bottles. Marketing Management should sort some solutions to this major problem of replacing burst bottles.
7. Half filled bottles should also be checked at the time of issue of goods from the distributors godown to the respective routes.
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8. Company should try to give some credit facility to the distributors so that they get motivated.
10. Proper feedback system should be developed by ensuring regular visits & check randomly at the various outlets.
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BIBLIOGRAPHY
WEBSITES: www.pepsi.com www.pepsico.com www.jaipuriagroup.com www.rkjworld.com
BOOKS: Marketing Management- Radha Swami/ Nam kumari Research Methodology-C.R.Kothari Principles of Marketing-P. Kotler & Armstrong
NEWS PAPERS: The Times Of India The Economics Times Hindustan Times Business Today (July edition)
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LIST OF ANNEXURES
QUESTIONNAIRE Questionnaire related to academic purpose, which is prepared to take feedback from retailers. Name of outlet Address Contact person with phone no. Type of outlet:Glossary,kiosk,provision store,eatery,other. Present share of your outlet Pepsi Coke You are interested to sale Pepsi Coke Reason: Salesman s behaviour What are demands of various packs of Pepsi Pack Demand in % 200ml 250/300ml 500ml 1000ml 2000ml Demand of different customer group Group Pepsi Male _____ Female _____ Children _____ Do you get the delivery at right time? Yes No
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Which of the company you feel have better distribution network? Coke Pepsi Others Do you get the benefits of daily schemes launched by the company? Yes No
Which flavor is more demanded? Pepsi Mirinda-Orange Mirinda-Lime Mountain Dew 7UP Slice Is company responsive to your complaints? Yes/No The cooling machine is :Your own / Pepsis / Cokes Is any survey done by other softdrink company? Yes/No
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Are you satisfied with the brands of Pepsi? Yes / No Do you get proper scheme at right time? Yes / No Does coke offer better then Pepsi/ Yes / No How many times delivery van comes? Ones in a day In alternate days Once in a week Any other ,please specify Your recommendations about Pepsi company? Any suggestion .
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