A PROJECT REPORT ON

SUBMITTED BY:-

KASHISH ANAND GUPTA OF XII COMMERCE

BUSINESS STUDIES

SUBMITTED TO:MR.HEMANG M. LATTE FACULTY-BUSINESS STUDIES S.D.JAIN MODERN SCHOOL

EXECUTIVE SUMMARY
PEPSI is the world leader in the convenient foods and beverages with the revenue of about $39 billion (2010-11) and over 198000(2010-11) employees. The companies consist of the snack business of FRITO lay NORTH AMERICA. Pepsi is available in about 200 countries and territories. In INDIA, PEPSI has an extremely positive outlook. Pepsi gain entry in INDIA in 1988 by creating a joint venture with the Punjab government owned PUNJAB AGRO.INDUSTRIAL CORPORATION (PAIC) and VOLTAS INDIA LIMITED. This joint venture marketed and sold LEHER PEPSI until 1991, when the use of foreign brands allowed; PEPSICO bought out its partners and ended the joint venture in 1994. The study of PROJECT REPORT OF PEPSI provides the details to inculcate the efficiency. It is also the requirement for the company to improve their service and quality for achieving their ultimate goal. The main objective of the research was to know the companys position in the soft drink market.

The duration for this project was for two month

DECLARATION
I KASHISH.A.GUPTA would like to declare that the project report of PEPSI is my original work. It has been done with a view to comply with the partial requirement towards the fulfilment of the The duration for this project was for one month objective as specified by the CBSE board. I also ensure that the data which is gathered has not been submitted to any other organisation/institution for any other purpose.

THANK YOU

Kashish gupta Student of XIIth Commerce Faculty BUSINESS STUDIES

Mr Hemang Latte Entrepreneurship S.D. Jain Modern School

External Examiner

INDEX
Sr no. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Particulars FEATURES REASON FOR SELECTING THIS PRODUCT FLAVORS OR VARITIES OF PEPSI COMPETITIVE BRAND OF PEPSI USP OF PEPSI PERMISSION AND LICENSE LABEL-LOGO AND TAG LINE PROFIT MARGIN PACKAGING OF THE PRODUCT DISTRIBUTION CHANNEL WAREHOUSES MEANS OF TRANSPORT WAYS OF PROMOTING

FEATURES
PEPSI is a carbonated soft drink that is produced and manufactured by PepsiCo. Created and developed in 1898 and introduced as "Brad's Drink", it was later renamed as Pepsi-Cola on June 16, 1903, then to Pepsi in 1961 Pepsi is made with carbonated water, high fructose corn syrup, caramel color, sugar, Phosphoric acid, caffeine, citric acid and natural flavors. A can of Pepsi (12 fl ounces) has 41 grams of carbohydrates (all from sugar), 30 mg of sodium, 0 grams of fat, 0 grams of protein, 38 mg of caffeine and 150 calories. The caffeine-free Pepsi-Cola contains the same ingredients but without the caffeine.

REASONS FOR SELECTING THIS PRODUCT

Pepsi has stayed in this market for almost one century. So they are so experienced and stationed in people's mind deeply. Now no one doesn't know the brand Pepsi-Cola Whenever the name Pepsi is heard, people will conjure up the image of fresh and cool drink. Pepsi-Cola is not only in high quality, cool and fresh but also have a competitive price in Chinese market. Sometimes Pepsi-Cola even has a lower price than Coca-Cola In China Pepsi is such an experienced powerful global company, Which has a basic of a great fund. So it has the ability to place a Idle sum of money to the promotion. We can see that the advertisement of Pepsi-Cola is so attractive. It also invited the top famous people to advertise for it. The advertisement is so elaborate and attractive so that Pepsi gained the special prize of the advertisement Granny. Pepsi also compares with the competitors and find their disadvantages to update its own quality, flavor and also package promptly in order to satisfy the consumers' need. This is the biggest advantage of Pepsi company. Pepsi company also produce the Diet-Cola to meet the people who more concern their health.

VARIETIES AND FLAVOURS OF PEPSI

U.S.A.

Pepsi: PepsiCo's signature cola flavor and its namesake cola. Pepsi Blue: A blue colored fruity soda (non-cola). Given a huge marketing push, often considered a major flop on the order of New Coke. No longer produced. In Iceland, Pepsi Blue was sold for a brief period of time during the winter of 2003/2004, and in India during the 2003 Cricket World Cup. It was sold for a longer period in Austria, and is still available in some parts of Mexico. It is also still available in Indonesia. It was also sold in the Philippines for a limited time only, usually it appears during Christmas season. Likewise, it was sold for a limited time in Australia, Bulgaria, Poland and Finland. Pepsi Gold: Limited edition gold colored variant as part of a 2006 FIFA World Cup and ICC Cricket World Cup 2007 promotion. It had a hint of ginger, but nowhere near the spice level of Pepsi Red, and was sold in Southeast Asia, Central Europe, Finland, Russia and The Middle East. Re-released as Pepsi Cheer for the 2010 FIFA World Cup. Pepsi Lime: with lime flavor added, introduced onto the market in the spring of 2005. Currently sold in Canada along with Diet Pepsi Lime. Pepsi Raging Razzberry: Available in test markets in 1991 and it has been said that it didn't really taste like raspberry, but was considered a raspberry twist, introduced along with Pepsi Tropical Chill and Pepsi Strawberry Burst. Pepsi Vanilla: Released in Canada and the U.S. in 2003 as Pepsi's answer to Vanilla Coke. Contains vanilla extract as well as both natural and artificial flavors. Even though it's no longer produced, Diet Pepsi Vanilla is currently available. Re-launched as Cherry Vanilla Pepsi in 2010 with the addition of natural cherry flavor.

Europe

Pepsi Blue: sold in Turkey, Denmark and Bulgaria Pepsi Ice Cream: was sold in Russia Pepsi Cappuccino: (also known as Caf Chino and Max Cino) Pepsi with a taste of coffee - was sold in Russia, Romania, and sold in other various parts of Europ

Asia

Pepsi Azuki: An azuki bean-flavored limited Edition Pepsi released on October 20, 2009. Pepsi Baobab: A baobab tree fruit-flavored, limited Edition Pepsi released released on May 25, 2010. Pepsi Black: A soda, similar to Pepsi Dry, with 50% less sugar than regular Pepsi, and blacker in color, released in Summer 2012, by Suntory. Pepsi Caribbean Gold: A limited Edition, golden-colored, white sapote fruit-flavored Pepsi released on July 26, 2011. Pepsi Mont Blanc: a Limited edition Pepsi based on the French chestnut dessert. Sold for a limited time from October, 2010. Pepsi Pink: Limited edition pink, strawberry milk-flavored Pepsi released on November 8, 2011 for a limted time. Pepsi Shiso: Limited edition green shiso-flavored soda sold during summer 2009. Pepsi Strong Shot: A limited edition Pepsi, with a high concentration of caffeine and with extra carbonation. Pepsi White: Limited Edition Pepsi with yogurt flavor, sold in 2008. Salty Watermelon Pepsi: A watermelon flavored Pepsi, sold in Japan in June 2012 for a limited time only.

Diet variants

Diet Pepsi: Low-calorie version of Pepsi. Diet Crystal Pepsi: Low-calorie version of Crystal Pepsi. Diet Pepsi AM: Sugar-free version of Pepsi AM, and introduced in 1987. No longer produced. Diet Pepsi Free (now known as Caffeine-Free Diet Pepsi) Diet Pepsi Jazz flavored colas only available in diet styles. Introduced in July 2006 discontinued in 2009. Diet Pepsi Kona A coffee soda available in test markets in 1997. Diet Pepsi cherry vanilla: Pepsi cherry vanilla, but low calorie. was Only available for 8 weeks in the summer of 2010. Pepsi Light: Lemon-flavored Diet Pepsi sold in the 1970s and 1980s. Pepsi Light: The name under which Diet Pepsi is currently distributed in countries outside the United States, United Kingdom, Australia and other English language countries. Diet Pepsi Lime: A lime-flavored diet Pepsi. Temporarily available. Pepsi Twist Zero: Available in Brazil Diet Pepsi Max: Was available in the United States and Canada. Diet Pepsi with added caffeine and ginseng. This product is not related to Pepsi Max as it has significantly different ingredients and no calories. Diet Pepsi Max was renamed "Pepsi Max" in 2008 along with the redesign of Pepsi.

COMPETITIVE BRAND OF PEPSI

UNIQUE SELLING PREPOSITION OF COCA COLA

Market Leadership. Coca-Cola FEMSA is the largest bottler of Coca-Cola trademark beverages in the world in terms of total sales volume, with operations in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Argentina and Brazil. Business partnerships. Coca-Cola FEMSA is working together with the Coca-Cola Company to develop more advanced joint business models to continue exploring and participating in new lines of beverages, extending existing product lines and effectively advertising and marketing our products. As partners, we have a shared incentive to capture important growth opportunities in Latin Americas fast-growing, but under-developed non-carbonated beverage segment, developing and expanding our still beverage portfolio through innovation, strategic acquisitions and by entering into agreements to jointly acquire companies with The Coca-Cola Company. Strong brand portfolio. The company offers a powerful and wide portfolio of beverages to its customers and consumers, and continuously explores promising beverage categories to capture growth in its different markets. To get closer to its customers and help them to satisfy consumers expanding needs, Coca-Cola FEMSA has become a one-stop shop for its retailers by offering a complete beverage portfolio - including carbonated soft drinks, bottled water, juices, orangeades, isotonics, teas, energy drinks, milk, coffee and even beer in some markets such as Brazil. Collaborative customer relationships. As an organization, Coca-Cola FEMSA continually looks to deepen its customer relationships. Our company is working closely with its largest clients to develop stronger multi-faceted relationships. Among the companys initiatives, are tailoring its extensive portfolio of products and packages for their stores - based on the local markets socioeconomic demographics, relevant consumption occasion and the stores distinctive characteristics. We partner with our customers on multiple fronts-from

knowledge management and capabilities development to go-to-market and point-of-sale execution-to ensure each and every shoppers trip counts. Multi-Segmentation. We have been implementing a multi-segmentation strategy in the majority of our markets. This strategy consists of the implementation of different product/price/package portfolios by market cluster or group. These clusters are defined based on consumption occasion, competitive intensity and socio-economic levels, rather than solely on the types of distribution channels. Client Value Management. We have been transforming our commercial models to focus on our customers value potential using a value-based segmentation approach to capture the industrys potential. We have started the rollout of this new model in our Mexico, Brazil, Colombia and Central America operations. Go-to-market strategies. We continuously evaluate our distribution model in order to fit with the local dynamics of the marketplace and analyze the way we go to market, recognizing different service needs from our customersfrom traditional mom-and-pop retailers to modern hyper and supermarkets, while looking for a more efficient distribution model. As part of this strategy, we are rolling out a variety of new distribution models throughout our territories looking for improvements in our distribution network. Flexible sales and distribution models. We use several sales and distribution models depending on market, geographic conditions and the customers profile: (1) the pre-sale system, which separates the sales and delivery functions, permitting trucks to be loaded with the mix of products that retailers have previously ordered, thereby increasing both sales and distribution efficiency, (2) the conventional truck route system, in which the person in charge of the delivery makes immediate sales from inventory available on the truck, (3) a hybrid distribution system, where the same truck carries product available for immediate sale and product previously ordered through the pre-sale system, (4) the telemarketing system, which could be combined with pre-sales visits and (5) sales through third-party wholesalers of our products. Full Operating Potential. More with less is a key part of the Coca-Cola FEMSA corporate culture. The company continually seeks to optimize manufacturing and distribution capacity to maximize operating efficiency, adapting its organizational processes to address changing competitive, economic, and sociopolitical environments. In addition, we rely on state-ofthe-art market intelligence systems that enable the company to execute and refine its channel-marketing and multi-segmentation strategies, consistent with customers and consumers purchasing patterns and preferences. Sustainable Development. Sustainable development is an important pillar of our Companys strategy. We continually develop programs that ensure the creation of social and economic value by fostering the quality of life of our employees, promoting a culture of health and well-being, supporting our surrounding communities and minimizing our operations environmental impact.

LICENSE AND PERMISSION

LICENSE FOR MANUFACTURE OF SOFT DRINKS FOR SALE IN BOTTLES: (a) No person shall manufacture for sale in bottles or jugs any soft drink or other nonalcoholic beverage (except apple cider) within this State without having first applied for and having received a license from the Department of Health and Social Services. (b) The application shall contain the name of the applicant, the applicant's address and the location of the applicant's manufacturing plant or plants, the name of the beverage or beverages to be manufactured and such other pertinent information as shall be prescribed by the Department of Health and Social Services in pursuance of this chapter. (c) The application shall be accompanied by a fee of $25, upon receipt of which application and fee the Department of Health and Social Services shall issue to the applicant a license for the manufacture of the beverages mentioned in this section. (d) The license shall be for the fiscal year ending June 30, unless sooner revoked, as provided in this chapter, and shall be renewed annually thereafter. DISPOSITION BY DEPARTMENT OF MONEYS COLLECTED: All moneys collected by the Department of Health and Social Services under this chapter shall be paid into the State Treasury. FORM OF LICENSE: All licenses granted shall be numbered and bear the name of the town or city and the street address where the establishment is located. DISPLAY OF LICENSE: A licensee shall display the license in a conspicuous place on the licensed premises. DELIVERY TRUCKS: All delivery trucks and wagons maintained by persons holding licenses shall be kept clean and shall bear the license number and the name of the town or city where the licensed establishment is located. REVOCATION OF LICENSES:

(a) The Department of Health and Social Services may revoke any license issued under this chapter whenever it is determined by itself or the Pathologist and Bacteriologist, Chemist or other properly qualified official that this chapter has been violated. (b) Any person whose license has been revoked shall discontinue the manufacture or sale within this State of soft drinks, syrups or other nonalcoholic beverages until this chapter has been complied with and a new license issued. (c) The Department of Health and Social Services may revoke a license either temporarily until there is a compliance with such conditions as it may prescribe or permanently for the unexpired period of the license. PROCEDURE FOR REVOCATION: Before revoking any license the Department of Health and Social Services shall give written notice to the licensee affected, stating that it contemplates the revocation of the same and giving its reason therefor. The notice shall appoint a time of hearing before the Department of Health and Social Services or its deputies, and shall be mailed by registered mail to the licensee. On the day of hearing the licensee may present such evidence to the Department of Health and Social Services as the licensee deems fit, and after hearing all the testimony, the Department of Health and Social Services shall decide the question in such a manner as to it appears just and right. REGULATIONS GOVERNING LICENSED ESTABLISHMENTS: Persons granted a license to manufacture soft drinks or other nonalcoholic beverages must comply with the following requirements: (1) Every building, room, basement or cellar occupied or used for the preparation for sale, manufacture, packing, storage, sale or distribution of any drink products shall be properly lighted, drained, plumbed and ventilated and conducted with due regard for the purity and wholesomeness of the products therein produced, and with strict regard to the influence of such conditions upon the health of the operatives, employees, clerks or other persons therein employed. The term "drink products" as used in this section includes all waters, beverages, soft drinks and like products, whether simple, mixed or compound, and all substances or ingredients used in the preparation thereof. (2) The floors, side walls, ceilings, furniture, receptacles, implements and machinery of every establishment where drink products are manufactured, packed, stored, sold or distributed shall at all times be kept in a clean, healthful and sanitary condition. (3) Drink products in the process of manufacture, preparation, packing, storing, sale or distribution must be securely protected from flies, dust, dirt, and, as far as may be necessary, from all other foreign or injurious contamination. (4) All refuse, dirt and waste products subject to decomposition and fermentation incident to the manufacture, preparation, packing, storing, selling and distribution of drink products must be removed from the premises daily. (5) All bottling establishments shall be equipped with adequate and sufficient machinery for the automatic soaking, cleaning and rinsing of bottles. All bottles prior to

refilling shall be cleansed and sterilized by soaking in a solution of not less than 3 1/2 percent caustic alkali for a period of not less than 3 minutes and at a temperature not lower than 120 Fahrenheit, to be followed by spraying and rinsing with water from the same source as used in filling, where practicable, or in any case by water of an accepted degree of purity and safety. Bottles too large for the machine shall be washed in the hot alkali solution and rinsed until free from any trace of alkali before refilling. All capping machines shall be provided with automatic crown feed. The reuse of caps, crowns or corks is prohibited. Such caps, crowns and corks shall be at all times so kept or stored as to be shielded from infection and contamination. All containers for the preparation or storage of syrups, fruit juices, extracts and flavors used in the manufacture of beverages shall be of glass, glazedlined metal or stoneware. This shall not apply to those preparations not removed from the manufacturer's shipping package. In no case shall receptacles of galvanized iron be used for liquids to be bottled. Containers shall be covered at all times. The construction of pumps and piping used for conveying syrups, fruit juices and similar liquids shall be such as to permit of ready disconnection and cleaning. Linings of lead or zinc are prohibited. Proper receptacles shall be provided for solid wastes. Floors, walls, ceilings, doors, windows, window ledges, etc., shall be kept clean and free from dust. All fixtures, machinery, utensils and piping shall be maintained in clean condition, using for this purpose hot water, live steam and such chemical agents as may be approved by the Department of Health and Social Services. (6) The clothing of operatives, employees, clerks or other persons must be clean. (7) The side walls and ceilings in that part of bottling establishments in which the beverages or syrups are manufactured shall be kept oil painted or well limewashed, and all interior woodwork in every bottling establishment shall be kept washed and cleansed with soap and water, and every building, room, basement or cellar occupied for use in the preparation, manufacture, packing, storage, sale or distribution of drink products shall have an impermeable floor made of cement or tile, laid in cement, brick or other suitable nonabsorbent material which can be flushed and washed clean with water. (8) The floors, windows and other openings of syrup rooms or any part of a bottling establishment used in the manufacture or mixing of syrups and extracts, etc., shall be fitted with self-closing screen doors and wire window screens made with wire not less than 14 meshes to the inch. (9) No employer shall knowingly permit, require or suffer any person to work in a bottling establishment who is afflicted with any contagious or infectious disease, or with any skin disease. (10) Every bottling establishment shall be provided with or have available for use a convenient washroom and toilet of sanitary construction, but such toilet shall be entirely separate and apart from any room used for the manufacture or storage of drink products. ARTIFICIAL SWEETENERS: The Department of Health and Social Services shall have authority to approve artificial sweeteners for use in carbonated beverages. Such approval shall be in writing and the Department of Health and Social Services will publish a list of such approved

artificial sweeteners. Bottles or other containers filled with carbonated beverage to which artificial sweetener approved by the Department of Health and Social Services has been added shall be labeled "DIETETIC." The label of each container shall also have printed thereon the name of the artificial sweetener used and the amount of the same which has been added. INGREDIENTS OF BEVERAGE (a) All soft drinks or other nonalcoholic beverages, except nonalcoholic fruit juices, shall consist of a beverage made from pure cane or beet sugar syrup or such other sweetening liquids or substances as shall be permitted by the regulations of the Department of Health and Social Services, containing pure flavoring material with or without added fruit acid, and with or without added color. (b) Nothing in this chapter shall prohibit the use of any other harmless ingredient in the manufacture of soft drinks or other nonalcoholic beverages. (c) This section shall not apply to nonalcoholic beverages, made in imitation of beer, bitter drinks and other similar drinks. (d) When artificial coal tar colors are used nothing but the certified colors as approved by the federal government are permissible. INFORMATION ON CAPS OR LABELS: If any drink product as defined in subdivision (1) of 4311 of this title contains artificial color or flavor, such fact shall be put on the cap or label. Such cap or label shall also bear the name and address of the bottler or manufacturer of such product, except that where the name of the bottler or manufacturer of such product has been blown in the bottle or other container, the bottler or manufacturer shall be exempt from putting the name and address of the bottler or manufacturer of such product on the cap itself. USING CONTAINERS BEARING ANOTHER'S LABEL OR NAME: No person shall fill or refill any glass, jar, bottle or any other container with soda water, mineral water or any other drink or fluid, with intent to sell or vend such water, drink or fluid, which bears the label of any other person or which has blown in such glass, bottle or other container the name of any person without the consent of such person.

LABEL LOGO AND TAG LINE

PROFIT MARGIN OF PEPSI AND COCACOLA

S.NO. PEPSI COCA COLA

MANUFACTURER WHOLESELLER 9-10 8-10 3-5 4-5

RETAILER 10-16 15-17

PACKAGING
Packaging involves designing and producing the container or wrapper for a product. Growing use of packaging as a marketing tool is now evident because of the following reasons. Packaging affluence customers a lot and also they willingly pay more for more convenient packaged product having catchy looks.

DISTRIBUTION CHANNEL
PEPSI BOTTLERS

WAREHOUSES

RETAILERS DISTRIBUTERS

WHOLESELLERS WAREHOUSES

RETAILERS RETAILERS

This type of distribution channel is used by pepsi.

IMPORTANCE OF MIDDLEMEN

 Collects concentrates the output of producers. Subdivides these into the lots desired by the customers gathers various items together in the assortment wanted. Disperses the assortment to consumer industrial buyer. The role of middlemen that of specialist in concentration equalization and dispersion besides he side in the creation of the time from and procession utilities.

WAREHOUSES

A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc.They are usually large plain buildings in industrial areas of cities and towns and villages.They usually have loading docks to load and unload goods from trucks.Sometimes warehouses are designed for the loading and unloading of goods directly from railways, airports, or seaports. Stored goods can include any raw materials, packing materials, spare parts, components, or finished goods associated with agriculture, manufacturing, or commerce.

MEANS OF TRANSPORT

Product is imported from their respective production place according to variant. Shipping is a physical process of transporting commodities and merchandise goods and cargo by sea.

Different sizes of trucks are used by company and wholesalers to distribute their product.

WAYS OF PROMOTION
Promotion is one of the market mix elements. Promotion refers to informing potential buyers about the product and persuading them to buy it. A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image.

PEPSI can be promoted through:-

1. Advertising is a paid, non-personal form of communication used to encourage

or persuade an audience (viewers, readers or listeners; sometimes a specific group of people) to continue or take some new action. Advertisement can be done through print media, television, radio.

2. Quantity gift, offering extra quantity of product.

3. Product Combination, Offering other product as gift with the purchase of product.

4. Sampling, offer of a free sample of product.

5. Refunds