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ANALYSIS OF MARKET SHARE GAPS

A STUDY CONDUCTED FOR

PEPSICO
A PROJECT REPORT
SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF
REQUIREMENTS OF THE TWO YEARS FULL TIME POST
GRADUATION DIPLOMA IN MANAGEMENT

SUBMITTED BY:

SAROJ KUMAR SINGH


2K81/IB/23

UNDER THE GUIDENCE OF

Prof. MURLI MOHAN

ASIA-PACIFIC INSTITUTE OF MANAGEMENT


3&4 INSTITUTIONAL AREA, JASOLA VIHAR
NEW DELHI

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DECLARATION

I hereby declare that the project report entitled “ANALYSIS OF MARKET SHARE

GAPS OF PEPSICO” has been prepared by me as part of partially fulfillment of my

diploma degree.

The project report is my bonafide report. The results embodied in this project report have

not been submitted partially to any other university or college for the award of any

diploma degree.

SAROJ KUMAR SINGH


2K81/IB/23

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ACKNOWLEDGEMENT

I owe deep sense of gratitude to my beloved institution, Asia pacific institute of

management, for molding me into a real management student.

I convey my wholehearted thanks to Mr. Arvind Rathore (Franchise General Manager,

PEPSICO) for enlightened guidance and inspiration during my project work.

It is with profound sense of gratitude that I wish to reveal my overwhelming thanks to

Prof. MURLI MOHAN my project guide who has rendered his valuable counsel and

guidance in completing this project. I would also like to thank all my faculty members

for their valuable suggestions.

Lastly, I put forth my due thanks to my parents, friends and all well wishers for their full

fledged and tremendous support in completing this project work successfully and to all

the respondents who have cooperated for the collection of data.

SAROJ KUMAR SINGH


2K81/IB/23

CONTENTS

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PARTICULARS

PAGE NO.

1. Introduction to Organisation.………….……………………01-11

2. Review of literature..…………………... ...………………….12-15

3. Research Design………………………………………………16-20

4. Introduction to Data Analysis………………………………..21-62

Swot Analysis…………………………………………..63-67

5. Findings and Recommendation……………….……………..68-72

6. Conclusion………………………………………….. ………...73-74

7. Executive Summary……………….…………………………..75-78

8. Bibliography…………………………………………………... 79.

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CHAPTER:-01

INTRODUCTION TO

ORGANISATION

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Pepsi is a soft drink produced and manufactured by PepsiCo. It is sold in many places

such as retail stores, restaurants, schools, cinemas and from vending machines. The drink

was first made in the 1880s by pharmacist Caleb Bradham in New Bern, North Carolina.

The brand was trademarked on June 16, 1903. There have been many Pepsi variants

produced over the years since 1898.

In October 2008, Pepsi announced they would be redesigning its logo and re-branding

many of its products by early 2009. Countries such as Australia and Indontinue to use the

old design on all packaging.

PepsiCo entered India in 1989 and has grown to become one of the country’s leading

food and beverage companies. One of the largest multinational investors in the country,

PepsiCo has established a business which aims to serve the long term dynamic needs of

consumers in India.

PepsiCo India and its partners have invested more than U.S.$1 billion since the company

was established in the country. PepsiCo provides direct and indirect employment to

150,000 people including suppliers and distributors.

PepsiCo nourishes consumers with a range of products from treats to healthy eats, that

deliver joy as well as nutrition and always, good taste. PepsiCo India’s expansive

portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain

Dew,

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in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages

such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana100% fruit

juices, and juice based drinks – Tropicana Nectars, Tropicana Twister and Slice. Local

brands – Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range

of brands.

PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty snack market and

all Frito Lay products are free of trans-fat and MSG. It manufactures Lay’s Potato Chips,

Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and

Lehar brands. The company’s high fibre breakfast cereal, Quaker Oats, and low fat and

roasted snack options enhance the healthful choices available to consumers. Frito Lay’s

core products, Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to

significantly reduce saturated fats and all of its products contain voluntary nutritional

labeling on their packets.

The group has built an expansive beverage and foods business. To support its operations,

PepsiCo has 43 bottling plants in India, of which 15 are company owned and 28 are

franchisee owned. In addition to this, PepsiCo’s Frito Lay foods division has 3 state-of-

the-art plants. PepsiCo’s business is based on its sustainability vision of making

tomorrow better than today. PepsiCo’s commitment to living by this vision every day is

visible in its contribution to the country, consumers and farmers.

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MISSION STATEMENT:

"To be the world's premier consumer products company focused on convenience foods

and beverages. We seek to produce healthy financial rewards to investors as we provide

opportunities for growth and enrichment to our employees, our business partners and the

communities in which we operate. And in everything we do, we strive for honesty,

fairness and integrity."

VISION:

"PepsiCo's responsibility is to continually improve all aspects of the world in which we

operate – environment, social, economic – creating a better tomorrow than today."

Our vision is put into action through programs and a focus on environmental

stewardship, activities to benefit society, and a commitment to build shareholder value by

making PepsiCo a truly sustainable company

THE ORGANISATIONAL VALUE OF PEPSI:

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PepsiCo values reflect its aspirations - the kind of company they want Pepsico to be.

Pepsi express their values in the form of a commitment. Pepsi’s commitment is :

Sustained Growth is fundamental to motivating and measuring our success. Our quest

for sustained growth stimulates innovation, places a value on results, and helps us

understand whether today's actions will contribute to our future. It is about growth of

people and company performance. It prioritizes making a difference and getting things

done.

Empowered People means we have the freedom to act and think in ways that we feel

will get the job done, while being consistent with the processes that ensure proper

governance and being mindful of the rest of the company's needs.

Responsibility and Trust form the foundation for healthy growth. It's about earning the

confidence that other people place in us as individuals and as a company. Our

responsibility means we take personal and corporate ownership for all we do, to be good

stewards of the resources entrusted to us. We build trust between ourselves and others by

walking the talk and being committed to succeeding together.

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PRODUCTS

• Yedigun
Pepsi Mountain Dew
• Shani

• Pepsi • Mountain Dew • Fiesta

• Caffeine Free Pepsi • Diet Mountain Dew • D&G (License)

• Diet Pepsi • Caffeine Free • Mandarin (License)

• Caffeine Free Diet Mountain Dew • Radical Fruit

Pepsi • Mountain Dew Code

• Diet Pepsi Max Red

• Jazz Diet Pepsi • Diet Mountain Dew Lipton (Partnership)

• Diet Pepsi Lime Code Red


• Lipton Brisk
• Diet Pepsi Vanilla • Mountain Dew

• Pepsi Wild Cherry LiveWire • Lipton Iced Tea

• Diet Pepsi Wild • Mountain Dew Lipton Pure Leaf

Cherry Voltage

• Pepsi ONE

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Sierra Mist AMP Energy

• Sierra Mist • AMP Energy

• Diet Sierra Mist • AMP Energy Sugar

• Sierra Mist Free

Cranberry Splash • AMP Energy

• Sierra Mist Free Overdrive

Cranberry Splash • AMP Energy Relaunch

• AMP Energy

SoBe
Tropicana

• SoBe juice drinks,


• Tropicana lemonade
dairy, and teas
and punches
• SoBe Lean diet juice
• Tropicana Light
drinks, dairy, and teas
lemonade and punches
• SoBe Life Water
• Tropicana Twister
• SoBe Adrenaline Rush
sodas

Aquafina
Ocean Spray (License)

• Aquafina
• Ocean Spray juices
• Aquafina FlavorSplash

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• Ocean Spray juice • Aquafina Sparkling

drinks

Starbucks (Partnership)

More
• Frappuccino ready-to-

• Ethos Water drink coffee

(License) • Starbucks Doubleshot

• Manzanita Sol • Starbucks Doubleshot

• Slice Energy

• FruitWorks juice
• Starbucks Iced Coffee
drinks

• Mirinda

Directors

Shona Brown

Ian M. Cook

Dina Dublon

Victor J. Dzau

Ray L. Hunt

Alberto Ilarquen

Arthur C. Martinez

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Indra K Nooyi

Sharon Percy Rockefeller

James J Schiro

Lloyed Trotter

Daniel Vasella

PARTNERS

PepsiCo partners with The Energy and Resources Institute (TERI) to implement

watershed management projects in Neelamangala and Uttaranchal

PepsiCo partners with the International Labor Organisation on creating and

implementing its HIV/AIDS Workplace Policy.

Partnership with Alternative Development Initiatives (ADI) on Watershed

Management Projects in Kerala, Punjab and Maharashtra

PepsiCo Partnership with Exnora in its award winning Waste To Wealth initiative

PepsiCo partners with CSMCRI for sustainable livelihood seaweed farming

project in coastal Tamil Nadu

Partnership with CAP Foundation to train and provide alternate livelihood

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options for Tsunami affected communities in AP and Tamil Nadu.

PepsiCo partners with Project Healing Touch to provide ex-servicemen with

sustainable livelihoods.

PepsiCo partners with Swashrit Society to promote active and healthy lifestyles

among kids through the Get Active programme

FRANCHISE OF PEPSI IN DELHI:

Jai Drinks Pvt Ltd

E-32 Phase Ii, 110020, U.T

p: 26386472

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It is mainly responsible for providing the service in the South and south-West part of

delhi.

PEARL DRINKS limited

K G MARG CONNAUGHT PLACE, NEW DELHI 110001, NEW DELHI

p: 23716782

The Pearl Drinks Limited provides services to the areas, which belongs to North and

North- west delhi.

Trans Yamuna

The Trans Yamuna covers mainly covers the Eastern and North-Eastern part of Delhi, in

these areas maximum number of distributor operations takes place.

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CHAPTER 02

LITERATURE REVIEW

MARKETING:

Marketing is an integrated communications-based process through which individuals and

communities discover that existing and newly-identified needs and wants may be

satisfied by the products and services of others.

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Marketing is defined by the American Marketing Association as the activity, set of

institutions, and processes for creating, communicating, delivering, and exchanging

offerings that have value for customers, clients, partners, and society at large.The term

developed from the original meaning which referred literally to going to market, as in

shopping, or going to a market to buy or sell goods or services.

The Chartered Institute of Marketing, which is the world's largest marketing body,

defines marketing as "The management process responsible for identifying, anticipating

and satisfying customer requirements profitably.

Marketing practice tended to be seen as a creative industry in the past, which included

advertising, distribution and selling. However, because marketing makes extensive use of

social sciences, psychology, sociology, mathematics, economics, anthropology and

neuroscience, the profession is now widely recognised a science, allowing numerous

universities to offer Master-of-Science (MSc) programmes. The overall process starts

with marketing research and goes through market segmentation, business planning and

execution, ending with pre and post-sales promotional activities. It is also related to many

of the creative arts. The marketing literature is also infamous for re-inventing itself and

its vocabulary according to the times and the culture.

MARKET SHARE:

Market share, in strategic management and marketing is, according to Carlton O'Neal,

the percentage or proportion of the total available market or market segment that is being

serviced by a company. It can be expressed as a company's sales revenue (from that

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market) divided by the total sales revenue available in that market. It can also be

expressed as a company's unit sales volume (in a market) divided by the total volume of

units sold in that market. It is generally necessary to commission market research

(generally desk/secondary research, although sometimes primary research) to estimate

the total market size and a company's market share.

MARKET SHARE ANALYSIS:

Market share analysis is an important part of market analysis and

indicates how well a firm is doing in the marketplace compared to its

competitors. It is a part of marketing research process.

Stages of marketing research process

Problem Definition

The first step in any marketing research project is to define the problem. In defining the

problem, the researcher should take into account the purpose of the study, the relevant

background information, what information is needed, and how it will be used in decision

making. Problem definition involves discussion with the decision makers, interviews

with industry experts, analysis of secondary data, and, perhaps, some qualitative

research, such

as focus groups. Once the problem has been precisely defined, the research can be

designed and conducted properly.

Development of an Approach to the Problem

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Development of an approach to the problem includes formulating an objective or

theoretical framework, analytical models, research questions, hypotheses, and identifying

characteristics or factors that can influence the research design. This process is guided by

discussions with management and industry experts, case studies and simulations, analysis

of secondary data, qualitative research and pragmatic considerations.

Data Preparation and Analysis

Data preparation includes the editing, coding, transcription, and verification of data. Each

questionnaire or observation form is inspected, or edited, and, if necessary, corrected.

Number or letter codes are assigned to represent each response to each question in the

questionnaire. The data from the questionnaires are transcribed or key-punched on to

magnetic tape, or disks or input directly into the computer. Verification ensures that the

data from the original questionnaires have been accurately transcribed, while data

analysis, guided by the plan of data analysis, gives meaning to the data that have been

collected. Univariate techniques are used for analyzing data when there is a single

measurement of each element or unit in the sample, or, if there are several measurements

of each element, each RCH variable is analyzed in isolation. On the other hand,

multivariate techniques are used for analyzing data when there are two or more

measurements on each element and the variables are analyzed simultaneously

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CHAPTER 03

RESEARCH DESIGN

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INTRODUCTION TO THE STUDY:

This project has been done on Market Share Analysis of PEPSICO. In this project the

system and procedure of market share analysis has been presented in detail.

Title of the study: A project is complete study on market share analysis with reference to

“PEPSICO”.

STATEMENT OF THE PROBLEM:

In this period of globalization, where the whole world has become like a small market, it

is essential that organizations effort continuously to invest on time, money and skills of

their personnel to be able to meet customer’s demands in terms of qualitatively products.

crash by any organization to implement this will only bring death of such organization,

this has been witnessed in the recent time. Surely, amongst others the prime cause may to

have incomplete personnel incapable of giving qualitative output. Therefore finding out

the position of product to get the knowledge of current scenario and react to the findings

accordingly is the only way to remain in business.

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OBJECTIVES OF STUDY:

The main purposes of study are to:

1) To gain complete information about the product from market.

2) To analyze the market share gaps of product.

3) To know the customer feedback about product.

4) To summarize the findings and offer suggestions.

TOOLS AND TECHNIQUES

For this report two kinds of data have been used: Primary data, Secondary data.

Primary data: It was collected through questionnaires further this data are processed and

tabulated using graphs. The tables were analyzed and the findings have been drawn

accordingly.

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Secondary data: The secondary data refers to information provided to the trainees about

outlets, which worked as a guideline for survey. The secondary data collected for this

market research from company profile and internet.

SAMPLE TECHNIQUE

Sample size: A sample of 900 outlets has been taken who participated in the research

procedure.

Sample procedure: The samples were taken on the basis of guidelines provided by

PEPSICO.

Search instruments: A questionnaire was used for the survey. The questionnaire was only

close ended in order to extract only the required data from the analysis.

Plan of analysis: For the analysis of data in this study the tools used are percentage,

average and graphs. The feedback of customers is also used.

LIMITATION OF THE STUDY:

The limitation of this report is as follows:-

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1. As the project is prepared for academic purpose it suffers for the limitation of the

time and due to which an analytical study into all the strategies adopted by the

organization was not possible.

2. There was no frequent availability of customers as they were busy within day to

day work.

CHAPTER SCHEME

Chapter 1. Introduction to marketing.

Introduction to Market Share Analysis.

Chapter 2. Research methodology deals with the various sub chapters like introduction

to the study statement of problem objectives of the study methodology, sampling

technique research instrument plan of analysis and limitation of the study.

Chapter 3. Company profile deals with the origin growth

Chapter 4. Deals with the details of the data analysis from the questionnaire filled by the

respondents.

Chapter 5. This chapter includes the survey of the findings.

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Suggestion and conclusion.

CHAPTER- 4

INTRODUCTION TO

DATA ANALYSIS

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This chapter deals with analysis and interpretation of all the data collected for PEPSICO,

by means of questionnaire for this research.

All the data collected is primary data, which was collected from hundreds of respondents

by different customers in three different zones of pepsico in Delhi. named as JAI

DRINKS PRIVATE LIMITED, PEARL DRINKS LIMITED AND TRANS YAMUNA.

All the data collected are tabulated for better understanding and also interpretation of

each table has given below.

Interpretation and inferences drawn for every question is summarize and also is presented

with help of bar diagram for understanding collected data in glance.

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Areas covered in Franchise zones

Jai Drinks Pvt Ltd

-JAMIA NAGAR

-CHIRAG DELHI

-BHARAT NAGAR

-ALAKNANDA

-GAUTAM NAGAR

Peral drinks limited

-AZADPUR

-ASHOK VIHAR PHASE 1

-ASHOK VIHAR PHASE 2

-ASHOK VIHAR PHASE 3

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-ASHOK VIHAR PHASE 4

-WAZIRPUR

Trans Yamuna

-JAFFRABAAD

-MAUJPUR

ZONE- JDPL

AREA- JAMIA NAGAR, CHIRAG DELHI, GAUTAM NAGAR, ALAKNANDA

1] TABLE SHOWING DISTRIBUTION OF OULETS ACCORDING

TO MARKET SHARE OF PEPSI IN PARTICULAR OUTLET.

MARKET SHARE NUMBER OF OUTLETS % IN MARKET


0% 8 4
1-30% 12 7
30-50% 61 34
MORE THAN 50% 99 55

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4%
7%

0%
1-30%
55% 34% 30-50%
MORE THAN 50%

100 99
90
80
70
61
60
50
40
30
20
12
10 8
0
0% 1-30% 30-50% MORE
THAN50%

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INTERPRETATION: In the above table 8 outlets fall under 0% category, 12 in 1-30%,

61 in 30-50% and the highest number 99 lies in more than 50% share outlets.

INFRENCES: From the above information majority 55% of outlets falls in more than

50% share outlets, where if we take 1-50% combine it also covers 73 outlets, there are

4% oulets are there which is having monopoly of coca-cola.

2] TABLE SHOWING OVERALL MARKET SHARE OF PEPSI AND COCA-

COLA

PRODUCT MARKET SHARE

PEPSI 53.6

COCA-COLA 46.4

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46.4 PEPSI
53.6 COCA-COLA

INTERPRETATION: From the above Information it can be understood that 53.6% of

total market share of cold drinks market belongs to Pepsi and rest lies with coca-cola.

INFRENCES: So, it is very clear that market share of Pepsi is quite high in comparison

of coca-cola and the coca-cola is also providing healthy competition with almost 46% of

market share of cold drinks market.

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3] TABLE SHOWING NUMBER OF COOLERS USED IN THE MARKET.

PRODUCT NUMBER
PEPSI COOLERS 73

COCA-COLA COOLERS 41

OWN COOLERS 86

37%
42% PEPSI COOLERS
COCA-COLA COOLERS
OWN COOLERS

21%

32
90 86

80
73
70

60

50
41
40

30

20

10

0
PEPSI COOLERS COCA-COLA OWNCOOLERS
COOLERS

INTERPRETATION: From the above Information it can be understood that 37% of

total market uses Pepsi coolers, 21% uses coca-cola coolers and rest uses own coolers.

INFRENCES: Since 42% of cooler market is still vacant and waiting for Pepsi or Coca-

cola to grab it as soon as possible, this 42% creates a very big opportunity to increase the

market share by repenetrating the market with coolers.

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4] TABLE SHOWING THE CHANNEL TYPE SHARE IN THE MARKET.

CHANNEL TYPE NUMBER


GROCERY 120

CONVENIENCE 18

EATRY 40

22%

GROCERY
CONVENIENCE
10%
EATRY
68%

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120 120

100

80

60

40
40

20 18

0
GROCERY CONVENIENCE EATRY

INTERPRETATION: In the above information its visible that there are 120 outlets

work as grocery, 18 outlets work as convenience and 40 eatry.

INFRENCES: The majority is grocery with 68% share of total market channel type and

the rest is enjoyed by convenience and eatry, which shows the market, is high populated

due to residential area.

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5] TABLE SHOWING MONTHLY AVERAGE SALES OF PEPSI AND COCA-

COLA IN CARETS IN MARKET.

MONTHLY AVG. SALE PEPSI COCA-COLA


0 6 12

1-30 87 85

30-70 40 42

70-100 15 15

MORE THAN 100 32 26

90 87 85
80
70
60
50
40 40 42 PEPSI
32 COCA-COLA
30 26
20 15 15
12
10 6
0
0 1--30 30-70 70-100 MORE
THAN 100

INTERPRETATION: From the above Information it can be understood that PEPSI has

more monthly average sale.

INFRENCES: There are less outlets in compare of coca-cola which has 0 monthly

average sales, Pepsi has more shops which have monthly turnover of 1-30 carats of

Pepsi, but in the category 30-70carets of monthly average sale Pepsi is lagging behind in

comparison of coke. In more than 70 category Pepsi is still dominating.

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6] TABLE SHOWING MODE OF SERVICE OF PEPSI AND COCA COLA

MODE OF SERVICE NO. OF PEPSI OUTLET NO. OF COCA-COLA OUTLET


DIRECT 56 75

DISTRBUTOR 80 58

WHOLESALER 43 47

PRESELL 01 00

80
80 75
70
60 56 58
50 47
43
40 PEPSI
30 COCA-COLA
20
10
1 0
0
DIRECT DISTRBUTOR WHOLESALER PRESELL

37
1%
24%
31%
DIRECT
DISTRBUTOR
WHOLESALER
PRESELL

44%

PIE CHART SHOWING PERCENTAGE OF MODE OF SERVICE OF PEPSI

0%
26%

DIRECT
42%
DISTRBUTOR
WHOLESALER
PRESELL

32%

PIE CHART SHOWING PERCENTAGE OF –COLA MODE OF SERVICE OF


COCA-COLA.

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INTERPRETATION: From the above Information the mode of service of Pepsi and

coca-cola is clear. The Pepsi covers it maximum operation through distributor, where

coca-cola covers through direct operation through its tata 407.

INFRENCES: The 44% outlets are covered through distributors, direct Pepsi covers

31% and 24% through wholesaler and just 1% with the help of presell service. Where

Coca-cola covers 42% directly, 32% through distributor, and rest through its various

wholesalers. So Coca-cola believes more on direct service through company to

customers.

7] TABLE SHOWING SERVICE FREQUENCY OF PEPSI AND COCA-COLA:

SERVICE FREQUENCY NO. OF OUTLETS (PEPSI) NO. OF OUTLETS


(COCA-COLA)
DAILY 136 148
MORE THAN 3 TIMES 3 13
LESS THAN 3 TIMES 41 19

160 148
140 136
120
100
80
PEPSI
60
41 COCA-COLA
40
20 13 19
3
0
DAILY MORE THAN 3 LESS THAN 3
TIMES TIMES

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INTERPRETATION: The above table shows the service frequency of Pepsi and Coca-

cola by various means of transportation.

INFRENCES: In both the cases maximum outlets gets daily service but coca-cola

covers more number of outlets, it also provides more than 3 times service in a week in

more number of outlets in comparison of Pepsi, so it can be easily said that coca-cola has

a better service frequency than Pepsi.

8] TABLE SHOWING THE VARIOUS FEEDBACK OF CUSTOMERS


REGARDING THE SEVICES PROVIDED BY PEPSI:

FEEDBACK NO. OF OULET


SATISFIED 83
SERVICE ISSUE 27
SCHEME ISSUE 70

39%
SATISFIED
46%
SERVICE ISSUE
SCHEMEISSUE

15%

40
90
83
80
70
70
60
50
40
PEPSI
30 27
20
10
0
SATISFIED SERVICE SCHEME
ISSUE ISSUE

INTERPRETATION: The above table shows the satisfaction level of customer of

Pepsi, The customer feedback is categorized in three different area, the first area directly

belongs to the group of satisfied customer, in second category customer with service

issue falls and in the last category customers with scheme issue comes.

INFRENCES: According to the pie chart 46% customers are satisfied and says that they

are pleased with the service provided by the Pepsi, 15% customers are having service

issue and rest all falls in scheme issue. It directly reflects the better service and better

market share of Pepsi

ZONE- PDL

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AREA- AZADPUR, ASHOK VIHAR AND WAJIRPUR

1] TABLE SHOWING DISTRIBUTION OF OULETS ACCORDING

TO MARKET SHARE OF PEPSI IN PARTICULAR OUTLET.

MARKET SHARE NUMBER OF OUTLETS % IN MARKET


0% 132 26
1-30% 81 16
30-50% 128 26
MORE THAN 50% 159 32

26%
32%
0%
1-30%
30-50%
MORE THAN 50%
16%

26%

42
160 159

140 132 128


120
100
81
80
60
40
20
0
0% 1-30% 30-50% MORE
THAN 50%

INTERPRETATION: In the above table 132 outlets fall under 0% category, 81 in 1-

30%, 128 in 30-50% and the highest number 159 lies in more than 50% share outlets.

INFRENCES: From the above information majority 32% of outlets falls in more than

50% share outlets, where if we take 1-50% combine it also covers 42% outlets, there are

26% oulets are there which is having monopoly of coca-cola.

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2] TABLE SHOWING OVERALL MARKET SHARE OF PEPSI AND COCA-

COLA

PRODUCT MARKET SHARE

PEPSI 36.2

COCA-COLA 63.8

36.2

PEPSI
COCA-COLA

63.8

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INTERPRETATION: From the above Information it can be understood that 36.2% of

total market share of cold drinks market in belongs to Pepsi and rest lies with coca-cola.

INFRENCES: So, it is very clear that market share of Coca-cola is quite high in

comparison of Pepsi and the Pepsi is also providing healthy competition with almost

36% of market share of cold drinks market.

3] TABLE SHOWING NUMBER OF COOLERS USED IN THE MARKET.

PRODUCT NUMBER
PEPSI COOLERS 87

COCA-COLA COOLERS 122

OWN COOLERS 347

16%

PEPSI COOLERS
22% COCA-COLA COOLERS
OWN COOLERS
62%

45
350 347

300

250

200

150
122

100 87

50

0
PEPSI COOLERS COCA-COLA OWNCOOLERS
COOLERS

INTERPRETATION: From the above Information it can be understood that only 16%

of total market uses Pepsi coolers, 22% uses coca-cola coolers and rest uses own coolers.

INFRENCES: Since 62% of cooler market is still vacant and waiting for Pepsi or Coca-

cola to grab it as soon as possible, this 62% creates a very big opportunity to increase the

market share by repenetrating the market with coolers.

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4] TABLE SHOWING THE CHANNEL TYPE SHARE IN THE MARKET.

CHANNEL TYPE NUMBER


GROCERY 301

CONVENIENCE 147

EATRY 52

10%

GROCERY
29% CONVENIENCE
61% EATRY

47
350

301
300

250

200

147
150

100

52
50

0
GROCERY CONVENIENCE EATRY

INTERPRETATION: In the above information its visible that there are 301 outlets

work as grocery, 147 outlets work as convenience and 52 eatry.

INFRENCES: The majority is grocery with 61% share of total market channel type and

the rest is enjoyed by convenience and eatry, which shows the market, is high populated

due to residential area.

48
5] TABLE SHOWING MONTHLY AVERAGE SALES OF PEPSI AND COCA-

COLA IN CARETS IN MARKET.

MONTHLY AVG. SALE PEPSI COCA-COLA


0 122 22

1-30 253 251

30-70 92 179

70-100 14 32

MORE THAN 100 19 16

300
253251
250

200
179
150
122 PEPSI
100 92 COCA-COLA

50 32
22 14 19 16
0
0 1--30 30-70 70-100 MORE
THAN 100

INTERPRETATION: From the above Information it can be understood that PEPSI has

less monthly average sale.

INFRENCES: There are more outlets in compare of coca-cola which has 0 monthly

average sales, Pepsi has more shops which have monthly turnover of 1-30 carats of

Pepsi, but in the category 30-70carets of monthly average sale Pepsi is lagging behind in

comparison of coke. In more than 70 category Pepsi is again lagging behind.

49
6] TABLE SHOWING MODE OF SERVICE OF PEPSI AND COCA COLA

MODE OF SERVICE NO. OF PEPSI OUTLET NO. OF COCA-COLA OUTLET


DIRECT 120 181

DISTRBUTOR 188 218

WHOLESALER 87 82

PRESELL 01 00

250
218
200
188
181

150
120 PEPSI
100 COCA-COLA
8782

50

0 1 0
DIRECT WHOLESALER

50
0%
22%
30%

DIRECT
DISTRBUTOR
WHOLESALER
PRESELL

48%

PIE CHART SHOWING PERCENTAGE OF MODE OF SERVICE OF PEPSI

0%
17%

38% DIRECT
DISTRBUTOR
WHOLESALER
PRESELL

45%

PIE CHART SHOWING PERCENTAGE OF –COLA MODE OF SERVICE OF


COCA-COLA.

51
INTERPRETATION: From the above Information the mode of service of Pepsi and

coca-cola is clear. The Pepsi covers it maximum operation through distributor, where

coca-cola covers through direct operation through its tata 407.

INFRENCES: The 48% outlets are covered through distributors, Pepsi covers direct

30% and 22% through wholesaler and just 0% with the help of presell service. Where

Coca-cola covers 38% directly, 45% through distributor, and rest through its various

wholesalers.

7] TABLE SHOWING SERVICE FREQUENCY OF PEPSI AND COCA-COLA:

SERVICE FREQUENCY NO. OF OUTLETS (PEPSI) NO. OF OUTLETS


(COCA-COLA)
DAILY 262 396
MORE THAN 3 TIMES 05 55
LESS THAN 3 TIMES 233 49

400 396
350
300
262
250 233
200
PEPSI
150
COCA-COLA
100
55 49
50
5
0
DAILY MORE THAN 3 LESSTHAN 3
TIMES TIMES

52
INTERPRETATION: The above table shows the service frequency of Pepsi and Coca-

cola by various means of transportation.

INFRENCES: In both the cases maximum outlets gets daily service but coca-cola

covers more number of outlets, it also provides more than 3 times service in a week in

more number of outlets in comparison of Pepsi, so it can be easily said that coca-cola has

a better service frequency than Pepsi.

8] TABLE SHOWING THE VARIOUS FEEDBACK OF CUSTOMERS


REGARDING THE SEVICES PROVIDED BY PEPSI:

FEEDBACK NO. OF OULET


SATISFIED 216
SERVICE ISSUE 276
SCHEME ISSUE 08

2%

43% SATISFIED
SERVICE ISSUE
55% SCHEME ISSUE

53
300
276
250
216
200

150
PEPSI
100

50
8
0
SATISFIED SERVICE SCHEME
ISSUE ISSUE

INTERPRETATION: The above table shows the satisfaction level of customer of

Pepsi, The customer feedback is categorized in three different area, the first area directly

belongs to the group of satisfied customer, in second category customer with service

issue falls and in the last category customers with scheme issue comes.

INFRENCES: According to the pie chart 43% customers are satisfied and says that they

are pleased with the service provided by the Pepsi, 55% customers are having service

issue and rest all falls in scheme issue. It directly reflects the poor service and poor

market share of Pepsi.

54
ZONE- TY

AREA- MAUJPUR AND JAFFRABAAD

1] TABLE SHOWING DISTRIBUTION OF OULETS ACCORDING

TO MARKET SHARE OF PEPSI IN PARTICULAR OUTLET.

MARKET SHARE NUMBER OF OUTLETS % IN MARKET


0% 36 17
1-30% 26 12
30-50% 86 40
MORE THAN 50% 67 31

17%
31%
0%
12% 1-30%
30-50%
MORE THAN 50%

40%

55
90 86
80
70 67
60
50
40 36
30 26
20
10
0
0% 1-30% 30-50% MORE
THAN 50%

INTERPRETATION: In the above table 36 outlets fall under 0% category, 26 in 1-

30%, 86 in 30-50% and the highest number 67 lies in more than 50% share outlets.

INFRENCES: From the above information 31% of outlets falls in more than 50% share

outlets, where if we take 1-50% combine it also covers 52% outlets, there are 17% oulets

are there which is having monopoly of coca-cola.

56
2] TABLE SHOWING OVERALL MARKET SHARE OF PEPSI AND COCA-

COLA

PRODUCT MARKET SHARE

PEPSI 41.6

COCA-COLA 58.4

41.6
PEPSI
COCA-COLA
58.4

57
INTERPRETATION: From the above Information it can be understood that 41.6% of

total market share of cold drinks market in belongs to Pepsi and rest lies with coca-cola.

INFRENCES: So, it is very clear that market share of Coca-cola is quite high in

comparison of Pepsi and the Pepsi is also providing healthy competition with almost

41.6% of market share of cold drinks market.

3] TABLE SHOWING NUMBER OF COOLERS USED IN THE MARKET.

PRODUCT NUMBER
PEPSI COOLERS 53

COCA-COLA COOLERS 41

OWN COOLERS 135

23%

PEPSI COOLERS
COCA-COLA COOLERS
59% OWN COOLERS
18%

58
140 135

120

100

80

60 53
41
40

20

0
PEPSI COOLERS COCA-COLA OWNCOOLERS
COOLERS

INTERPRETATION: From the above Information it can be understood that only 23%

of total market uses Pepsi coolers, 18% uses coca-cola coolers and rest uses own coolers.

INFRENCES: Since 59% of cooler market is still vacant and waiting for Pepsi or Coca-

cola to grab it as soon as possible, this 59% creates a very big opportunity to increase the

market share by repenetrating the market with coolers.

59
4] TABLE SHOWING THE CHANNEL TYPE SHARE IN THE MARKET.

CHANNEL TYPE NUMBER


GROCERY 111

CONVENIENCE 82

EATRY 22

10%

GROCERY
52% CONVENIENCE
38% EATRY

60
120
111

100

82
80

60

40

22
20

0
GROCERY CONVENIENCE EATRY

INTERPRETATION: In the above information its visible that there are 11 outlets

work as grocery, 82 outlets work as convenience and 22 eatry.

INFRENCES: The majority is grocery with 52% share of total market channel type and

the rest is enjoyed by convenience and eatry, which shows the market, is high populated

due to residential area.

61
5] TABLE SHOWING MONTHLY AVERAGE SALES OF PEPSI AND COCA-

COLA IN CARETS IN MARKET.

MONTHLY AVG. SALE PEPSI COCA-COLA


0 30 07

1-30 69 45

30-70 87 124

70-100 26 33

MORE THAN 100 03 06

140
124
120
100
87
80
69
60 PEPSI
45 COCA-COLA
40 33
30 26
20
7 3 6
0
0 1--30 30-70 70-100 MORE
THAN 100

INTERPRETATION: From the above Information it can be understood that PEPSI has

less monthly average sale.

INFRENCES: There are more outlets in compare of coca-cola which has 0 monthly

average sales, Pepsi has more shops which have monthly turnover of 1-30 carats of

Pepsi, but in the category 30-70carets of monthly average sale Pepsi is lagging behind in

comparison of coke. In more than 70 category Pepsi is again lagging behind.

62
6] TABLE SHOWING MODE OF SERVICE OF PEPSI AND COCA COLA

MODE OF SERVICE NO. OF PEPSI OUTLET NO. OF COCA-COLA OUTLET


DIRECT 15 5

DISTRBUTOR 134 5

WHOLESALER 56 205

PRESELL 0 0

250

205
200

150
134
PEPSI
100 COCA-COLA

56
50

15
5 5 0 0
0
DIRECT WHOLESALER

63
0% 7%

27%

DIRECT
DISTRBUTOR
WHOLESALER
PRESELL

66%

PIE CHART SHOWING PERCENTAGE OF MODE OF SERVICE OF PEPSI

0%
2%2%

DIRECT
DISTRBUTOR
WHOLESALER
PRESELL

96%

PIE CHART SHOWING PERCENTAGE OF –COLA MODE OF SERVICE OF


COCA-COLA.

64
INTERPRETATION: From the above Information the mode of service of Pepsi and

coca-cola is clear. The Pepsi covers it maximum operation through distributor, where

coca-cola covers through wholesalers.

INFRENCES: The 66% outlets are covered through distributors, Pepsi covers direct 7%

and 27% through wholesaler and just 0% with the help of presell service. Where Coca-

cola covers 96% through wholesalers.

7] TABLE SHOWING SERVICE FREQUENCY OF PEPSI AND COCA-COLA:

SERVICE FREQUENCY NO. OF OUTLETS (PEPSI) NO. OF OUTLETS


(COCA-COLA)
DAILY 146 1
MORE THAN 3 TIMES 69 0
LESS THAN 3 TIMES 0 214

250
214
200

150 146

PEPSI
100
69 COCA-COLA
50
1 0 0
0
DAILY MORE THAN 3 LESSTHAN 3
TIMES TIMES

65
INTERPRETATION: The above table shows the service frequency of Pepsi and Coca-

cola by various means of transportation.

INFRENCES: In these areas Pepsi has daily visit in maximum number of shops, where

as coca-cola does not provide daily service at all.

8] TABLE SHOWING THE VARIOUS FEEDBACKS OF CUSTOMERS


REGARDING THE SEVICES PROVIDED BY PEPSI:

FEEDBACK NO. OF OULET


SATISFIED 174
SERVICE ISSUE 41
SCHEME ISSUE 0

0%
19%

SATISFIED
SERVICE ISSUE
SCHEME ISSUE

81%

66
180 174
160
140
120
100
80
PEPSI
60
41
40
20
0
0
SATISFIED SERVICE SCHEME
ISSUE ISSUE

INTERPRETATION: The above table shows the satisfaction level of customer of

Pepsi, The customer feedback is categorized in three different area, the first area directly

belongs to the group of satisfied customer, in second category customer with service

issue falls and in the last category customers with scheme issue comes.

INFRENCES: According to the pie chart 81% customers are satisfied and says that they

are pleased with the service provided by the Pepsi, 19% customers are having service

issue. It directly reflects the good service and good market share of Pepsi.

67
SWOT ANALYSIS

68
STRENGTHS

 COOLERS IN JDPL & TY- There are more coolers of Pepsi in the area of JDPL

and TRANS YAMUNA. Which provides a very better chance to enhance the

market share of Pepsi in these areas.

 > 50% - MAXIMUM NUMBER- In all areas Pepsi market share is all most 50%

or more than that, which shows that Pepsi is giving very tough competition to its

competitors.

 PRESELL METHOD- It is one of the important tool that Pepsi is having for

increasing its market share, this system is beneficiary for both customer and

business, it helps business to provide effective delivery and less time consuming,

where as it provides long hours for small vendors to arrange cash.

 AQUAFINA- This is the worlds Largest selling water, which gives a strong

backup to other beverages of Pepsico.

 PRICE DIFFERENCE- The price difference between 500ml pet bottles of Pepsi

provides a strong edge to Pepsico.

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WEAKNESSES

 DAMAGED COOLERS- Maximum coolers used by retailers which belong to

Pepsi are very old and not in the Proper condition, Which create a sense of

negligence in the mind of retailers, due to which retailers wants to switch to coca-

cola.

 FLAVOUR- According to customers Pepsi does not have flavors like coca-cola.

 NO CUSTOMER RELATIONSHIP MANAGEMENT- Customers highly

believes that there is no customer relationship management in Pepsi.

 CARET DESIGN- The caret design of Pepsi does not protect the whole bottle

like coca-cola caret, which results in damaged bottles and increased number of

replacements

 DIFFERENCE IN COMPANY’S RATE AND WHOLESALER’S RATE- This is

a common problem in any FMCG sector, but in the case of Pepsi the rates differs

more

 NO FIX SCHEME- Pepsi company does not provides a fix scheme in a single

market, due to which they are loosing customer loyalty towards Pepsi

 NO SERVICE IN INNER STREATS- Pepsi does not provides service in inner

street like coca-cola, which is one of the important reason of fall in market share

of Pepsi.

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OPPORTUNITIES

 OUTLETS USING OWN COOLERS- .There is a big chance for Pepsi to reenter

market with coolers to increase the market share as more than 50% outlets are

using their own coolers.

 7UP NIMBOOZ- It is the one of the highly demanded cold drinks, which has

capacity to enhance the market share of Pepsi by double.

 ROADSIDE MOBILE BOOTH- Though Pepsi has mobile booths but they should

increase the numbers, which will help the Pepsi a lot, in increasing its market

share.

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THREATS

 COKE PENETRATION IN MARKET WITH COOLERS- Coke is penetrating

the market with high number of coolers, by which they can pressurized the

retailers for not keeping Pepsi product.

 SCARCITY OF PRODUCT- There is a high scarcity of product in warehouse of

Pepsi , which always creates a image of vanishing company in the mind of

retailers.

 SMALL AGENCIES- coca-cola is doing tie-ups with small agency, which helps

Coca-cola to reach untouched places.

 DUPLICITY OF PEPSI- Duplicity of Pepsi in comparison coca-cola is very high

and it just only spoiling the name of Pepsi.

 IMPURE DISTRIBUTORS- The Pepsi have very few number of pure distributor

due to large number of demand of limca in the Delhi market.

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CHAPTER- 5

SUMMARY , FINDINGS
& RECOMMENDATIONS

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This Market survey has been done to find out the current market scenario of Pepsi, which

considers the market share of Pepsi, mode of service, frequency of service, share of Pepsi

in particular shop and the most important from the Business point of view is the

satisfaction level of customer. The survey provides very much important information,

which is necessary to know for a firm to sustain in cut throat competition.

• The data was collected from the RETAILERS PRESENT IN MARKET. Data is

collected with the help of questionnaire.

• The respondent are basically the owner of the shop or his/her relative, who was

currently handling the shop at the time of survey

• The survey reports, which are provided to the organization by the trainees, will

help the Pepsi to improve their market share in the beverages market.

• According to the survey Pepsi has decreasing market share.

• The service of Pepsi is very poor in several areas and the company is neglecting

the customer relationship management, due to which retailers are switching to

other brands.

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• According to the survey Pepsi does not have flavors like coca-cola, especially

there is no drinks available in Pepsi which can compete with limca and thums up.

• Pepsi is not capable to meet the demand, as the demand of 7up nimbooz is very

high in the market which is capable of increasing the market share of Pepsi, but

Pepsi fails to meet the demand.

• The coolers available in the market, which belongs to Pepsi are very old and

damaged on which Pepsi does not pay any kind of attention, which helps coca-

cola to convert the outlets from Pepsi to Coca-cola.

• In maximum areas Pepsi does not provide daily servicing, The

Company’s vehicle visits the area 5 times in a month. The coca-cola

gets the advantage of this negligence and try to cover the area more

than Pepsi.

RECOMMENDATION

75
 STOP DUPLICITY- The very first thing on which Pepsi should work upon is it

should try to stop duplicity, because it does not only decreases the company’s

sales it also spoils the health of customers and Pepsi gets blamed for the damage.

 BETTER CUSTOMER RELATIONSHIP MANAGEMENT- Pepsi customers

reports about misbehavior and misconduct by company, according to survey

Pepsi does not care about customers, so increase the market share Pepsi have to

strengthen its relation with customers and fix a better customer relationship

management.

 DISTRBUTOR SHOULD HAVE PROPER INFORMATION OF AREA- To

increase the market share Pepsi distributors should have the proper knowledge

about the areas in which they have to work, maximum distributors of Pepsi do not

know there area only.

 PROPER AUDIT OF DISTRIBUTORS- As it is earlier mentioned in the report

that Pepsi have very few pure distributors, impure distributors not only spoils the

Pepsi image but they also increases the market share of coca-cola.

 SOME DIRECT DISCOUNTS TO RETAILERS INSTEADE OF

WHOLESALERS- To increase the market share Pepsi should provide a little

discount to the retailers, who directly takes the product from company. The

retailers which takes Pepsi product from wholesaler gets some discount, but in

76
direct operation retailers do not enjoy any type of discount, which de motivates

the retailers and they start buying from wholesaler who compels retailers to take

coca-cola product also , which directly decreases the market share of Pepsi.

 ONE AREA ONE SCHEME- There should be one scheme in one area, In

different scheme one retailers enjoy heavy scheme and another suffers with low

scheme or do not get only, for good market share there should be one scheme in

one area.

 SPECIAL BRANCH FOR COOLER MAINTENANCE- Though Pepsi has more

coolers in some areas but customers not happy with the performance of coolers;

maximum number of coolers is old and not working properly, so to increase the

market share Pepsi should establish a special branch for cooler maintenance.

 SPECIAL GIFTS FOR RETAILERS WHO BUYS SOME EXTRA- To

encourage the market share Pepsi should encourage customers first; it can be

done through appraisal of customers with some special gifts who buys large

amount.

 COVER THE SINGLE SHOP- As it is mentioned in report that Pepsi is failing to

cover the inner streets shops, so to increase the market share Pepsi have to cover

the single shop present in the market.

77
 NEW SHAPED CARETS- The half covered carets of Pepsi results in damaged

bottles, so Pepsi should also launch a new caret like coca-cola, which helps in

decreasing the number of replacements.

 BRINGING NIMBOOZ AS SOON AS POSSIBLE- According to survey Pepsi

do not have flavors like coca-cola, but the 7up nimbooz is highly demanded in

the market, so proper supply of nimbooz in market will certainly increase the

market share of Pepsi.

CONCLUSION

78
Market research is an important tool in development of an organization. Every

organization conducts market research for development of its share in the market.

The market survey done for Pepsi clears the scenario going in the market.

According to the survey Pepsi is loosing its Market share due to bad service, lack of

stock, bad customer relationship management, old flavors, poor maintenance of

equipments in market which belongs to Pepsi and duplicity.

Though Pepsi is loosing its Market share in some markets but still it has various strengths

which will help Pepsi to recover, there are lots of opportunity available in the market,

which Pepsi should utilize in a proper manner to gain its market share back.

79
Pepsi should work on some sectors like customer relationship management, duplicity,

adding new flavors, availability of stock, proper service and market audit.

80
EXECUTIVE

SUMMARY

Pepsi is a soft drink produced and manufactured by PepsiCo. The drink was first made in

the 1880s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was

trademarked on June 16, 1903. There have been many Pepsi variants produced over the

years since 1898.

PepsiCo entered India in 1989 and has grown to become one of the country’s leading

food and beverage companies. One of the largest multinational investors in the country,

81
PepsiCo has established a business which aims to serve the long term dynamic needs of

consumers in India.

PepsiCo India and its partners have invested more than U.S.$1 billion since the company

was established in the country. PepsiCo provides direct and indirect employment to

150,000 people including suppliers and distributors.PepsiCo India’s expansive portfolio

includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in

addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages

such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana100% fruit

juices, and juice based drinks – Tropicana Nectars, Tropicana Twister and Slice. Local

brands – Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range

of brands.

Directors

Shona Brown Ian M. Cook Dina Dublon Victor J. DzauRay L. Hunt

Alberto Ilarquen ArthurC.Martinez Indra K Nooyi Sharon Percy

RockefellerJames J SchiroLloyed TrotterDaniel Vasella

MARKET SHARE

Market share, in strategic management and marketing is, according to Carlton O'Neal,

the percentage or proportion of the total available market or market segment that is being

82
serviced by a company. It can be expressed as a company's sales revenue (from that

market) divided by the total sales revenue available in that market. It can also be

expressed as a company's unit sales volume (in a market) divided by the total volume of

units sold in that market. It is generally necessary to commission market research to

estimate the total market size and a company's market share.

MARKET SHARE ANALYSIS

Market share analysis is an important part of market analysis and indicates how well a

firm is doing in the marketplace compared to its competitors.

Scope of the Project:

The topic of project is to analyze the market share of Pepsi in different markets.

The data for this Project has been collected through market survey, which comprise of

more than 900 shops situated in different location and different franchise zones of

Pepsico.

After getting the data from survey, report reflects that Pepsi has good market share but it

has also lost its share in various important market. Pepsi has poor delivery of product to

retailers and its coolers which all are present in market are old and not in good condition.

Pepsi has also failed to establish a good relation which is making the retailers to switch to

its competitors.

83
This project throws lights on the current scenario and position of Pepsi and its various

strength and weaknesses, this project also briefs various steps which is very necessary for

Pepsi to take for getting the sustained growth and survival in beverage market.

BIBLIOGRAPHY:

1. www.pepsi.com

2. www.pepsi.co.in

3. www.wikipedia.org

4. Marketing Management by Appanaiah and Readdy.

84