ON COMPARATIVE ANALYSIS OF MARKET SHARE

. UNDER LUMBINI BEVERAGES PVT. LTD IN PATNA

Submitted to :

LALIT NARAYAN MISHRA INSTITUTE OF ECONOMIC DEVELOPMENT & SOCIAL CHANGE

Under the guidance of:DR CHANDRA SINGH AHMAD

LECTURER of L.N MISHRA INSTITUTE OF ECONOMIC DEVELOPMENT & SOCIAL CHANGE BAILEY ROAD - PATNA

Submitted by :NAUSHAD
Roll no - 08053 M B A ( Marketing & Finance ) Session 2008-10

PEPSI
A PROJECT REPORT
ON COMPARATIVE ANALYSIS OF MARKET SHARE UNDER LUMBINI BEVERAGES PVT .LTD

PROJECT REPORT
SUBMITTED IN THE PARTIAL FULFILMENT FOR THE AWARD OF DEGREE OF MASTER IN BUSINESS ADMINISTRATION

(2008-2010)

L N Mishra Institute of Economic development, PATNA

(Approved by AICTE, Ministry of India & Magadh University, Bodh Gaya)

C
L

Under the guidance of :DR CHANDRA SINGH

LECTURER of L.N MISHRA INSTITUTE OF ECONOMIC DEVELOPMENT & SOCIAL CHANGE BAILEY ROAD PATNA 800001
2

Submitted by :NAUSHAD AHMAD

ROLL NO -08053 M B A (MARKETING & FINANCE) SESSION 2008-10

PREFACE
Training as we know is essential to supplement to theoretical knowledge with the practical knowledge and to inculcate efficiency. It was observed that due to lack of practical knowledge most of the managers are ineffective in their job. Due to this reason summer training of eight weeks has been made an integral part of the syllabus of MASTER OF BUSINESS ADMINISTRATION by the L.N MISHRA

PATNA Summer training report is considered a major component of the training.

Summer training remains incomplete till the report has been presented and/or written. The purpose of summer training is not well served unless the findings and experiences gained are made known to others. Writing of report is the last step in the Summer Training Programme. Thus, the purpose of training and subsequent of report writing are meant both as a mean of gaining first hand experience in the organization and also an academic exercise. In the above-mentioned context, I had a privilege of getting this practical training. The training is done under LUMBINI BEVERAGES PVT. LTD Hajipur (Vaishali). The Summer Training Report, which is prepared after Six weeks of training period is here for the partial fulfillment for the award of the degree of MBA (Marketing with Finance). The topic A Comparative analysis of Market share of PEPSI in Patna with

special reference of PEPSI INDIA. Ltd. under Lumbini Beverages, was

selected to understand the various activities involved in marketing during supply of product from plant to end user, like promotional activities, sales promotion, advertising, distribution channel, merchandising policy etc. I would like to express my sincere gratitude to all those persons who help me in the prepration of the project.

ACKNOWLEDGEMENT
This project report is a sincere attempt to carefully and systematically gather facts about and evaluate the sales promotion and market research of M/s Lumbini Beverages Pvt. Ltd., Hajipur, as a part of the course curriculum of MASTER OF BUSINESS ADMINISTRATION , From L.N MISHRA, Patna which is based on Eight Weeks duration. For the completion of my project report man y person directly or indirectly assisted me. e m First and foremost, I express deep sense of gratitude to my honourlable Guide Dr. CHANDRA SINGH lecturer of L . N Mishra Patna who guided me during the project I also express to Mr.Arun Kumar, TDM Patna . M/s Lumbini Beverages Pvt. Ltd., Hajipur , my profound sense of gratitude of who provide me an opportunity to work and also guide me at every to work and also guide me at every step of my project. His proper direction and constant inspiration provide to be an asset for this project. I am also grateful to Mr. N.K.PRASAD HRD Manager Mr.Harish,Mr.Nitin,Mr.Sanjay Dutta (C.E.O) , Lumbini Beverages Pvt. Ltd., Hajipur. For giving me opportunity to learn and conduct research in their esteemed organization. Words are too little to express my gratitude to them. I would like to thank CE - Mr.Vikash Kumar & P.S.R- Pankaj kumar,Distributor (M/s Janta Enterpises ) for this kind Co-operation to compile my project.

Since the reader would like to know the general details of 2-cola giants, therefore, chapter includes a discussion of theoretical aspects and its application is included. Further to help the reader to understand the finding with graphical representation , conclusions and suggestions are also included, which very much helps to know that where LUMBINI BEVERAGES PVT. LTD., stands in the soft-drink market. What is the market value of Pepsi and how Pepsi is doing against Coca-Cola.I hope this report will be special interest to the marketing students, who are on look for such real life situations beyond their classroom studie

CONTENTS
Preface & Acknow ledgement PARTICULARS PAGE NOS

PAGE NOS. 1.1 1.2 1.3 1.4 1.5 2.1 2.2 Chapter 1 : Introduction of the Research Introduction of the research topic Reason for selecting this topic Importance of the research Research objectives Research scope Chapter 2: Soft drinks industry profile Soft drinks industry in India History of Pepsi 10-15 07-09

2.3 2.4 3.1 3.2 3.3 3.4 3.5

Pepsi The Indian experience Characteristics of soft drinks Chapter 3: Organization and Product profile A brief history of Lumbini beverage Pvt. Ltd Profile LBPL Organizational hierarchy SWOT analysis Product profile 16-21

PARTICULARS

PAGE NOS.

Chapter 4: Marketing Activities 4.1 Market Segmentation 4.2 Promotional activities 4.3 Merchandising policy 4.4 Advertising Strategy of the company 4.5 5.1 5.2 5.3 6.1 6.2 Distribution channel of LBPL Chapter 5: Market Survey Research methodology Dealer survey Limitations of research Chapter 6: Data Analysis and Intrpretation Interpretation of outlets Market Share of different soft drink

22-28

29-32

33-43

6.3 6.4 6.5 7.1 7.2 Annexures

Market share of chilling equipments Percentage share of glow sign board Percentage of satisfaction distribution Chapter 7: Conclusions and Suggestions Conclusions Suggestion 46-49 44-45

Glossary of Terms Questionnaire Bibliography

CHAPTER-1 INTRODUCTION OF THE TOPIC 1.1) INTRODUCTION 7

1.2) REASON FOR SELECTING THIS TOPIC 1.3) IMPORTANCE OF THE REASERCH 1.4) RESEARCH OBJECTIVES 1.5) RESEARCH SCOPE

1.1

INTRODUCTION

Beverage industry is one of the fast growing industries in India. It can be divided into two sections i.e. carbonated and Non-carbonated. The carbonated drinks that can be further classified into Cola, Lemon Orange, Mango and Apple segments. 1.2 REASON FOR SELECTING THIS TOPIC

The topic has been already given by the company to collect information about current happening in the market. It also helps to makes improvements in service and quality of the product, for their long time existence in the market and getting profit. Simultaneously, it is also helpful for me to learn the consumer behaviour and observe their attitude towards demand of particular products practically.

1.3

IMPORTANCE OF THE REASEARCH

The training in the organization is very important for a student who is undergoing with such Course. This course is not the answers for all the problems, which arises in the practical field. There is no certain formula for any particular problem, but the aim of this study is to develop the ability of decision- making. Right decisions at right time itself help the organization to run smoothly. The training in an organization gives an idea how decisions are taken when any problem comes to an executive. So the way of problem solving, right decisions making and knowledge of different type marketing actiivites give much importance to the study. Simultaneously, it is also beneficial for the company to make certain change in quality /service/price of the product according to consumer demands. For long running a business organization such types of improvements iin needed time to time.

1.4

RESEARCH OBJECTIVES

The following were the main objectives of the research:1. 2. To know the stock position of Pepsi and its competitors at different outlets. To study the marketing and promotional activities at various retail outlets. a. b. 3. 1.5 To know the per day sale of Pepsi brand and its competitors in Crates. To study the percentages share of Pepsis cooling equipments.

To know how many outlets are covered with glow signboard of Pepsi. RESEARCH SCOPE

The main scope of this research is ascertaining the various methods to increase the sales volume and distribution activity of the concern. The methods include regular measures to make the brand position in the market and taking measures to confirm the brand in position. One of the most important aspects of this study is also to increase the market segement for the products. Many more scope of this topic may be as follows: i. Target market segment. ii. iii. iv. v. vi. Evaluating awareness about Pepsi Company. Comparison of Pepsi product to competitors. Identification of market potential. Evaluating customers need with compay product Collecting suggestion for product improvement etc.

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CHAPTER-2 SOFT DRINKS-INDUSTRIES PROFILE 2.1) 2.2) 2.3) 2.4) SOFT DRINKS INDUSTRIES IN INDIA HISTORY OF PEPSI PEPSI-THE INDIAN EXPERIENCE CHARACTERISTICS OF SOFT DRINKS 2.1 SOFT DRINKS INDUSTRIES IN INDIA

A soft drinks is a non-alcoholic beverage. It is artificially flavored and contains no fruit juice or pulp. India with population of more than 100 crore is one of the largest consumer markets in the world after China. Soft drinks is a typical consumer product purchased by individuals to quench thirst and secondly for refreshment. Searching for the point of origin of Indian soft drinks I first document on Gold Spot, which was the first brand soft drinks in India. It was introduced by PARLE during later part of 40s. Cola giant, Coca-Cola was the first foreign soft drink to be introduced in India in 1965, Coca Cola made a very good beginning and dominated the whole scheme right from the world go. It (Coca-Cola) faced no competition at that time. This extraordinary success of soft drinks can be attributed to the following factors: Absence of contemporary competitive brand. Euphoric image build up in the Western countries proceeded the entry into India Market, and Indians are very found by nature of foreign goods, services etc. prolonged foreign rules. due to

11

PARLE EXPORTS PVT. LTD. Later in 1970 introduced Limca, Lemony Soft drinks. Before Limca introduced they had tentatively introduced Cola, Pepino, which they had to withdraw in the face of battering confrontation with Coca-Cola soon. Three of four groups of Indian companies, which had the required production capacity started their own brands of Cola. Lemon, Orange, but failed to achieve their goal on a national basis.

India always has

love and hate relationship with MNCs which gave a significant

opportunities to soft drink industries in India when Coca-Cola decided to windup its operations in 1977 rather than bowing to the Indian government insisting on: Dilution of equity, as the government felt that lots of foreign currency was being wasted. Manufacturing of the top-secret concentrate in India. Disclose of the chemical composition of the essence.

This left a large vacuum in the popular soft drink market, and a vista was opened to any company with the requisite, techanical, marketing and organizational skills. The existence of Coca-Cola from India in 1977 accelerated the growth of several Indian soft drinks. New soft drink in the form of Tetra pack enters the market among Frooti, Jump-In, and Tree-top Ire the prominent once. Till 1977 their equipped bottling plants and the distribution network a longing to be of no use. It took them one year to develop new formula to survive and gradually came up with Campa. Lemon, Orange and Cola that order.

However Parle, the pioneer in the soft drinks, blazed its way to national prominence with their product Thumps-Up, bearing the slogan Happy Days Are Here Again. This particular slogan helped to win over the loyalists or addicts to Coca-Cola. Soon the Indian Soft drinks industries started at a phenomenal rate, and all Parle products Gold-Spot, Limca and Thumps-Up became the brand leader in their own segment.

12

In

spite

of

all these the drinks market still has large gap, as claim by soft drink

manufacturers. To fill these gaps there are many soft drinks concentrate and squashes flooded the market. The Indian soft market basically offered three flavors i.e. Orange, Lemon, and Cola. 1988 saw the coming of the multinational company PEPSI entering the Indian market. 11 years after the existence of Coca-Cola. It had name, fame and edge of being one of the best in the game and it also offered stiff competition to Parle and Coke. Now Pepsi is going all out to prove that they are the best. 2.2. HISTORY OF PEPSI CEO is ROGER ENRICO and in India Pepsi Co. holding its chairman MR. Pepsi-Cola Company founded by CALEB D BRADHAM in 1890 at North Carolina in USA.Its RAJIV BAKSHI. The head quarters of Pepsi-Co. in India is at Gurgaon.Presently it is operated in 196 countries. Pharmacist CALEB inventd it to cure the disease DISPARSIA. It is from this word that was related to Pepsi. Soon it entered the American market as soft drink which at that time was mostly dominated by Coca-Cola, but soon Pepsi was able to dominate the Cola market and thereafter it has been no looking back. Pepsi and Coca-Cola are engaged in ferocious cold war that has taken the whole world by storm. Pepsi stands 51st position among the fortunate 500 companies of the world. Its total capital is approx $3000 crore and total sales annually is worth $37 crore, half of which comes from beverages and other half from the Sack foods division. The beverages arm of the Pepsi co. is Pepsi-Cola Company and the snack-food company is called Frinto-Lay-Inc. The year 1998 is the centennial year of Pepsi. Its total profit in the year 1996-1997 was worth Rs. 45 crore approx. The total number of employees engaged in this business is 4.25 lakhs globally.

13

2.3

PEPSI-THE INDIAN EXPERIENCE

Previously there were two ad tags Yehi Hai Right Choice Baby & Nothing Official About It, which immediately ring a bell-its to be a Pepsi. But today this ad. tag has been changed and now its Yeh hai youngistan meri jaan. Pepsi in a short span of its operations in India has found a place in hearts and minds of the Indian consumers. The success has primarily been due to the innovate and passionate Indian team which has been built over the years. Pepsi is a trendsetter managed and run by Indians, where important decisions are taken locally. Pepsi started its operation in India in 1988 in Kanpur and since Pepsi Co. has set up a fully integrated operation India viz. Manufacturing, Research and Development, Marketing distribution and franchising Covering fruit/Vegetable processing, export, snack foods and beverages. In 1993 Pepsi Co. set up a hold company to further accelerate growth through new initiatives and joint ventures. Pepsi Co. is fully committed to India and the national objective of development of technology and accelerating exports and employment. It has invested 500 crore in India to develop the local market Pepsi has distributed exclusive franchises in India to bottle its total product. There are 34 bottling plants of Pepsi in India. Pepsi directly controls some and rests are under various franchises. Some special features in Indian scenario: 1. BEVERAGES: Pepsi has set up a concentrate plant in 1989 at Channo, District Sangrur, Punjab, With an investment of 55 million the state of the art Plant houses a world class laboratory where soft drinks from all over the world are tested. This concentrate plant supplies Pepsi. 7-Up Teem, Mirinda, Orange, Apple & Lemon flavors to all the Pepsi bottling plant in South Asia Pepsi has 34 Botting plant in India, out o;f which 8 are company owned and 26 are owned by Indian franchisee, Pepsi Co. has invested heavily on up graduation of these bottling plants and has put 5 green field project in backward areas such as Jaipur and Bazapur in

14

U.P. Bharuch in Gujarat, Sonapur in West Bengal and Naclamangala in Karanataka. New Project is coming up in Maharashtra and Tamilnadu. In addition to; the Companies Own Bottling Operation (COMBO), Pepsi has 26 Franchisee owned Bottling units in India. These franchisee manufacturers are also planning to install substantial additional capapcities. In last two years Pepsi Co.s franchisees have put new bottling plant at jaipur, Bhopal, Hajipur (Bihar). Guntur (A.P.) and Guwahati(Assam) with further investments. Pepsi Co.s franchisee are amongst the best in the Pepsi world. 2. JUICES: Pepsi Co. launch juices in a bog way in India, there by helping the farmers in fruit procurement. Pepsi Co. Agriculture scientists have undertaken research on Mango, Guava and Oranges and these fruits would be the priority area for the juice launch in India. presently Pepsi has one juice brand.The name of the juice is Tropicana orange and Tropicana Apple . No preservatives has been added in this two flavours. 3. EMPLOYMENT OPPORTUNITIES:. Pepsi provides direct and indirect employment to persons in supplying its raw materials, packing materials, distribution vehicles, glass bottles, plastic crates, display racks etc. And to small artisans, paintings and small traders in market places activities. All the Pepsis business in India is either in Industries with backward linkages with farmers or in service industries, being highly distribution oriented. He Pepsi system operates over 300 trucks (direct operations). 8000 three-wheeler(distributors) and at least 1000 push carts, serving over half a million outlets in India. By the year 2005 the number of outlets to be served are expected to be doubled. 4. DEVELOPING SPORTS: PEPSI today is one of the main sponsors related activities in India has continued to promote upcoming new players of Cricket, Hockey and Football. In Mohali, Disclose of the chemical composition of the essence.

15

Pepsi has developed a Pepsi Cricket Academy, which would develop over 500 Young Cricket enthusiasts in next five years. Similarly Pepsi cricket coaching camps and clinics are held to coach young boys in North and South. 5. COMMUNITY RELATIONS: Most of the bottling plats of Pepsi are located in backwards areas, thereby giving huge employment opportunities in these areas. Pepsi as a responsible company undertakes social projects in and aroung the bottling plants. These include supports to the education centers. Sponsors inoculation camps, providing free health checkup, initiating sanitation, drives, promoting literacy drives and helping villages to put up bus shelter etc. 6. REVENUE GENERATION: It is estimated that Pepsi-Co and its franchises generates over Rs. 500 crore (in 1977) to the exchequer by the collection of excise duty and sales tax. 2.4 CHARACTERSISTICS OF SOFT DRINKS Unfinished goods (Required chilling before consumption). Two -way transportation ( Once filled bottles to market and Second empty bottles from market). Heavy expenses on advertisement and promotions. More attention to retailers. Several schemes and other facilities provided to them. Next flavours are introduced time to time. Highly competitive market with only two equally strong Players.

16

CHAPTER - 3

ORGANIZATION PROFILE
3.1) A BRIEF HISTORY OF LUMBINI BEVERAGE PVT. PTD. 3.2) 3.3) 3.4) 3.5) PROFILE OF L.B.P.L. ORGANIZATIONAL. HIERARCHY. SWOT ANALYSIS PRODUCT PROFILE

17

3.1

A BRIEF HISTORY OF L.B.P.L.

Lumbini Beverage Pvt. Ltd. Is situated at Industrial Area, Hajipur in Vaishali district of Bihar. Mr. Charan Khilani, who is a resident of Kolkata, established it in the year 1997. It is one of the Pepsi Foods bottling Plants in Bihar. Ananda Marketing Pvt. Ltd., was a marketing divisions of Lumbini Beverage Pvt. Ltd. But, now L.B.P.L. does its marketing itself. 3.2 PROFILE OF LUMBINI BEVERAGE PVT. LTD. Company Land Area Location and Authority Name of Director/Occupier Industrial Licence No. : : : : 9.30 Acres EPIP, Industrial Area, Hajipur- 844101 Charan Khilani Regn. No. H 12475(C) Factory Licvence No. 66750/VLI Date 16.08.97 F.P.O. Licence No.- 10607/97 Capacity Nature of product No of employees Control Board : : : : 1500 bottles per minute Soft drink, Pepsi, Mirinda, Soda, Slice, Aquafina,Tropicana 150+150(max.) any Seasonal laboures on day in the Season

NO. 1877. Date 07.04.97

18

3.3.A.1

ORGANIZATIONAL HIERARCHY BOARD OF DIRECTOR MANAGING DIRECTOR DIRECTOR

CEO
FINANCE MANAGER A/C ASSISTANT PLANT MANAGER SHIFT ENGINEER WORKER/ OPERATOR P.A.M H.R MANAGER H.R.EXECUTIVE

SHIPPING COORDINATOR

A/C CLERK

HOS
T.D.M A.D.C M.E.M SINIOR TECHNICIAN TECHNICIAN M.D.M. M.D.C EXECUTIVE M.E

C.E

19

3.4

SWOT ANALYSIS STRENTHS: 1. most Famous soft drinks Pepsi Co. 2. 3. 4. LBPL uses state of the art and fully automatic machines and technology for It has very strong network and built market and currently holds all the parts the production and bottling of soft drinks. of the state. It has wide range of product varieties. Lumbini Beverage Pvt. Ltd. Is franchise Owned Operation (FOBO) of worlds

WEAKNESSES: 1. No cost cutting program for the products. 2. Promotional activities in the rural market is not upto the mark as compared to the Urban market. 3. Brand Pepsi in cola flavor is one of the popular lagging behing with its nearest competitor, only due to high sugar content and less thrilling taste. 4. Not viability of all the products on demand.

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OPPORTUNITIES 1. LBPL makes the buying process more convenient of efficient ( It provides the Pepsi products at required places i.e. direct to distributors and to retailers through distributors). 2. 3. The executives of company meet the need for more information and advice to distributors/retailers/customers. It takes return the leakage, burst bootles etc.

THREATS: 1. 2. 3.5 One of the products of their competitor in lime flavor as a very good market share due to its taste Coca-Cola is now spending more and more to boost up the sale. PRODUCT PROFILE

The product profile of LUMBINI BEVERAGE PVT.LTD. is: No. of product Pepsi Pepsi Pepsi Pepsi Pepsi Pepsi cane Mirinda Mirinda Mirinda Mirinda Mirinda Quantity 200 ml. 300 ml. 600 ml. 500 ml. 2000 ml. 330 ml 200 ml. 300 ml. 600 ml. 5000 ml. 2000 ml. Colour Burnt-Sugar Burnt-Sugar Burnt-Sugar Burnt-Sugar Burnt-Sugar Burnt-Suger Sunset Sunset Sunset Sunset Sunset Flavor Cola Cola Cola Cola Cola Cola Orange Orange Orange Orange Orange

21

Mirinda cane 7up 7up 7up 7up 7up 7up cane M. dew M dew M. dew Aquafina TROPICANA TROPICANA

33o ml 200 ml. 300 ml. 500 ml 600 ml 2000 ml 330 ml 300 ml 500 ml 600 ml 1000 ml 350 ml 1000 ml

Sun set None Colour None Colour None colour None colour None colour None colour None colour Non colour None colour None colour Sun set Redish

Orange Lime Lime Lime Lime Lime Lime Lemon Lemon Lemon Water Orange Apple

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CHAPTER 4 MARKETING ACTIVITIES 4.1) 4.2) 4.3) 4.4) 4.5) MARKET SEGMENTATION PROMOTIONAL ACTIVITIES MERCHANDISING POLICY ADVERTISEMENT STRATEGY OF THE COMPANY DISTRIBUTION CHANNEL LBPL.

23

4.1 MARKET SEGMENTATION The soft drink being a FMCG product has a wider and scattered market. Thus to enable concentrated effort of marketing activities in different scattered market, the entire market is broken down into the following segments. Route Market Home Market At work market ROUTE MARKET: Outlet in this market cater to those people who are engaged in shopping, eating, outgoing to and From work, in amusement enters etc. HOME MARKET: Outlets in this market cater to people buying prominently for home consumption Either by case or loose bottles. AT WORK MARKET: Outlets in this market cater to people working in officers. Factories etc. An attempt is always Made to make soft drinks readily and conveniently available all day long while people are Actively working.

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4.2

PROMOTIONAL ACTIVITIES

Promotional activities play a greater and important role in the marketing effort carried Out by PEPSI CO. It is for more create and maintain a image of its products.

PROMOTIONAL ACTIVITIES CARRIED OUT BY LUMBINI BEVERAGE PVT. LTD: LBPL carry out its promotional activities as a controlled and integrated program of

Communication and material design to present its soft drink to the prospective customer. The tools used by Lumbini Beverage Pvt. Ltd., for fulfilling the various purposes of its Promotional activities are the following:(I) Point of Purchase: A sensible man does onot have to go for too find out whatever a common panwala knows that People buy with their eyes. Every item of sale in a shop is displayed in front where people Can see it at the first sight. It is the same with all the shops advendors in towns either selling Consumer goods or selling soft drinks. Rather in selling lla product like PEPSI display is more help it is an essential element because soft drink is bought a impulse on the spur of the movement. Thus the product is tested when it is brought at peoples attention. (ii) Special event market: The dealer at special event sport plalces the banners and stall of Pepsis products. Like picnic, Cricket match, social activities are also used to cater the people. It help in promoting the sale As well as in creating an image of products.

25

(iii)

Media planning:

A very important part of advertising is to decide the medium of advertising and how much to spend in each media: Newspaper Radio TV Hoarding Product of sales materials ( paintings, glow signs, D.Board) Advertising is one of the important factors which all put together results sales. It has to be backed by the distribution network, effective servicing, dealer, goodwill and so on. Thus advertising has to be very carefully woven with the entire demands of marketing. PROMOTIOAL ACTIVITIES CARRIED IN PATNA: Point of purchase (POP) Special events ( fair show, Road show etc.) Hoarding By Newspaper, TV. Radio etc. 4.3 MERCHANDISING POLICY In todays fast moving industry and highly competitive market, only those products are likely to be purchased which are capable of hitting the impulse of the consumers. The products appeal should be able to penetrate and get embedded into the perpetual space of The concerned product should induce to the consumers. Pepsi the consumers mind. be sold.

believes that Jo Dikhta Hai Wahi Bikta Hai i.e. any product which is visible is bound to

26

METHODS OF MERCHANDISING: Visicooler placement Glow signboard Paintings Crate Stacking Umbrella Banners Display Special Schemes

4.4

ADVERTISING STRATEGY OF THE COMPANY The main motive behind the purpose of advertising of the PEPSI co. is to maintain the brand loyalty though recalling the memory of the users of soft drinks as to attract the potential consumers who consume a soft drink. On the national basis the media extensively used are : Newspaper, short advertising films, Radio, T.V. Besides the advertising being carried out by Pepsi Co. Lumbini Beverage Pvt. Ltd., Hajipur also carries out its own promotional program of which advertisement is an important aspect. The Lumbini Beverage Pvt. Ltd. Is free to use any media, messages, copy etc. as and when required by them but single factor which remain the same as used for each Pepsi Cos bottling company on national level. The main slogan being used by PEPSI Co. bottle all over India for its Cola Products has been The choice of new Generation. The main Model in the advertising is the Best Cricketer-Sachin Tendulkar, Best Actor Amitabh Bachchan, Sharukh Khan, Best Actress Kareena Kapoor, Preeti Zinta,Dipika padukon

27

4.5

DISTRIBUTION CHANNEL OF LUMBINI BEERAGE PVT. LTD.

To make its products available at the right place, at the right time in the market, at the right place, the sales department of the company plays major attention towards controlling channel of distribution. The company right from its beginning stage maintains single type of marketing channel. The nature of channel is as follows: COMPANY DISTRIBUTORS RETAILERS CONSUMERS the

I.

ABOUT DISTRIBUTORS:-

At first, soft drink is supplied to distributors. Retailers cannot take the delivery directly from the company. They have to take it from their respective of nearest distributors. The distributors selected on the basis of assurance given by them regarding minimum sales, which they have mention annually. The selection is also done on the financial position and reputation of distributing in the market. As for the example, first priority is given to those people who are in cigarette business. Depending upon market each distributor in its initial stage, deposit some security money. This amount varies between five thousand to ten thousand. The distributors at first have to seek the permission to the sales department for the number of cases of soft drinks required by them. After getting for the proper authority from the sales department, they take the delivery from the shipping department paying the requisite either in cash or as demand draft.

28

The distributors can be dropped if they fail to achieve the required target of sales. They can be also droped when they dont follow the instructions given by the company or when they charge high price or when they are engaged in black marketing, loading etc. But the company has not dropped any of its distributors till now. The supply of soft drinks to the distributors depends upon the ups and downs in the sales. But, in the initial stages, the distributors have to sell up to a minimum target set by the company or as decided by an agreement between the company and the distributors. In the last stages soft drink is supplied as and when demanded by the distributors. II. ABOUT RETAILERS:There is no relation between the company and its

The distributors select the retailers.

retailers. On the other hand there is no definite and fixed criteria from the selection for appointment of retailers from the side of distributors. Any one like Panwala, Cigarette shop or any other shopkeeper can have the stall for the sale of soft drinks and they are called retailers or dealers. They have to give assurance to the concerning distributors for better sales and at the time of taking delivery they have to deposit the security that is the change for the empty bottles with specified purchasing price. Generally, there is no compulsion on that part of distributors to provide the transportation facilities to their retailers, but the distributors of the big areas like Patna, Muzzaffarpur, Patna provide the transportation facilities to their respective retailers. The distributors and retailers are independent to sell as they want but are controlled to some extent by the company also, as they have to give some assurance regarding minimum sale. It happens so because they are given some incentives also. They are fully independent to gear up the market, as they want.

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CHAPTER-5 MARKET SURVEY 5.1) 5.2) 5.3) RESEARCH METHODOLOGY DEALER SURVEY LIMITATIONS OF THE RESEARCH

5.1

RESEARCH METHODOLOGY:

All the findings and conclusion obtained are based on the survey done in the working area. Within the time limit, I tried my best to select the sample representative of the whole group. During my job training I maintained collected organization itself. Data Sources Retailers/Dealers (Cold Drinks stalls Ice Stalls Hotels Restaurants Sweet Shop Pan Shop, General Stores, Telephone Booths etc), Distributor internal Companys Records etc. Research Approaches Survey Research-Instrument : Interview Schedule Sampling Plan : Sampling unit Sampling size Sampling procedure: Distributor 01 Retailer 175 different routes during my dealer of Patna under survey. I have data from the distributors Muskan Agency, Patna and the

30

Census Survey Contact method: Personal Interview.Secondary Data Collection : The secondary data was collection on the basis of organizational files, official bulletins and records, official journals, published data in the annual general report and through various preserved information in the data base at the Pepsi sites e.g. www.Pepsico.com, www.Pepsizone.com etc

Primary Data Collection: All the dealers/retailers were personally visited and interviewed. There was a format for collecting the details the details of the dealers. The format was filled by taking the information from the dealer or by monitoring the shops. 5.2 DEALER-SURVEY

Dealer-Survey as the word indicates, is the survey of soft drinks of every dealer in the area. For our practical purpose the dealer nt only includes the authorized dealers but, it includes all the retailers-big or small grocery shops, staionery, restaurants, beetel shop etc., Besides these the various exclusive stalls and sales of pantry cars are also included in it. In a nutshell, by dealer survey I mean who are dealing with the soft dink in someway or the othe in large or small quantity directly or indirectly. Thus, my study includes all such dealers, which include following aspects: Route wise no of dealers Crate strength Per day sale Chilling ad Advertising

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Nature of outlet Schemes of Pay-offs.

I have to visit each and every outlet and personally interviewed them. In order to know the market share of PEPSI and its competitors. I have conducted a survey at Patna and its surroundings area. By the help of survey I can find out the reason behind non-availability of Pepsi in the specified area. The knowledge of case-stock indicates our case-in-trade and that of competitors. This will indicate our case-velocity which will help to plan our bottle as whether our distribution is effective or not. If my case-stock is low then I may decide for a case stocking campaign. Feedback from the market place regarding servicing of dealers will help us to improve our servicing in the lacked areas. Therefore, appropriate marketing strategy can be woked out depending upon the findings. Some more uses of Dealer-Survey: (i) Distribution-effectiveness:

The survey can improve the distribution network in these ways: Immediate activation of non-buyers. Improve the dealer coverage Increase the realignment of routes Better control through route card They should visit the counter on the

daily basis including the remote places. Salesman should visit the counter on likely basis.

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(i)

Market knowledge:

Dealer-Survey gives the total profit of the market by following: Location of dealers The type of dealer No of dealers who keep Pepsi Coca-Cola and comparing the stock. The marketing inputs with respect to a) Advertising b) VISI Cooler c) Servicing (ii) Training group for future executives:

Good investigations from these surveys can be recruited to take up future jobs. These people will ideally suitable, as they would know the market thoroughly.

5.4

LIMITATIONS OF THE RESEARCH

1) It was not possible to understand thoroughly about the different marketing aspects of soft drinks in a span of two months. 2) The survey was conducted in the peak season when the sale was too high, by this I cannot get the appropriate result. 3) Money-as no stipend was given, it was difficult to cover a wide area. 4) All the work was limited in Patna area, so, the findings should not be generalized. The

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finding of survey will be strictly based on the

response of consumers, retailers/dealers,

since it is difficult to ascertain the authenticity of their statement. CHAPTER-6

DATA ANALYSIS AND INTERPRETATION

6.1) 6.2)

INTERPRETATION OF OUTLETS MARKET SHARE OF DIFFERENT SOFT DRINKS 6.3) MARKET SHARE OF COOLING

EQUIPMENTS OF DIFFERENT SOFT DRINKS 6.4) PERCENTAGE SHARE OF GLOW SIGN

BOARD OF DIFFERENT SOFT DRINKS 6.5) PERCENTAGE OF SATISFACTION OF DISTRIBUTION

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6.1 (I)

INTERPRETATION OF OUTLET No. of outlets in different market areas are as following: Location Budh marg RBlock Income Tax No. of outlets 21 17 19

SR.NO. 1. 2. 3.

4. 5. 6. 7. 9. 10. 11. 12.

Patna High court Maurya lok Mainpura Kurjee Gardnibag Station road Alkapuri anisabad & chitkohra

02 15 19 29 43 12 09 39

Total

235

Interpretation : The company should target the main potential area like ,Dak bangla road,Maurya lok,station road,gardnibag & chitkohra market, etc. as target market.

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( II ) Types of outlet:
Sr. No. 1 2 3 4 5 6 7 8 9 Type General/Kirana stores Sweet shops Pan shop Restaurants Hotels Cinema Hall Cold drinks centers Ice-cream/ Ice-centers Phone booths TOTAL No. of Outlets 15 12 17 12 08 04 16 08 08 100 % ( Approx ) 15.00% 12.00% 17.00% 12.00% 8.00% 4.00% 16.00% 8.00% 8.00% 100.00%

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1 2 3 4 5 6 7 8 9

Interpretation : The maximum number of outlest in Patna is of Pan shop then cold drink center and then others. So the distributors should distrubute the products segment wise accordingly

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6.2 1.

MARKET SHARE OF DIFFERENT SOFT DRINKS The Cola Markets:

Product Pepsi Coca Cola

% Share 52% 48%

Total

!00%

Market Share Different Cola Products Interpretation : The maximum number of outlest Of in Patna is of General/Kirana stores then betel shops and then others. So the distributors should distrubute the products segment wise accordingly

Pepsi Coca Cola

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Interpretation: There is dominancy of Thumps Up in the Cola segment of soft drinks in the market. Pepsi is its competitor.

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II.

The Orange Flavored Soft Drinks:

Product Mirinda Fanta

% Share 35 % 65 %

Total

100 %

Market share of Orange flavoured soft drink

mirinda fanta

Interpretation : The Graph shows that there is a majority of customers of Fanta, Orange Flavored in the market.

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III.

Clear Lime Market :

Product 7up Sprite Total

% Share 30 % 70 % 100 %

Market Share of different Soft Drinks in Clear lime Market

7 up
7 up

Sprite

Sprite

Interpretation : There is great dominancy of Sprite in the market. Customers firstly demand always Sprite. They take 7up only is substitute of that.

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6.3 1.

PERCENTAGE SHARE OF CHILLING EQUIPMENTS : Percentage Share of VISI Coolers: Product name Pepsi Coca Cola Own Total No. 17 29 4 50 % 34 % 58% 8% 100 %

70 60 50 40 30 20 10 0 pepsi cocacola Own Percentage Share of visi coolers No. Percentage Share of visi coolers %

Intrerpreatation : From the above diagram we can conclude that the number of VISI coolers distributed from Coca Cola to the dealers is much more comparing to Pepsi.

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II.

Percentage Share of CC of different soft drinks : Product name Pepsi Coca Cola Own Total No. 4 14 2 20 % 20% 70% 10% 100%

share of Chester Coolers

own

coca cola

No. %age

pepsi

20

40

60

80

100

Interpretation : From the above diagram we can conclude that 70% of ice-boxes are of Coca Cola Company where as only 20% is of Pepsi. Rest 10% is of dealers own.

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6.4

PERCENTAGE OF GLOW BOARD Product 1 2 Pepsi Coca Cola No. 34 49 % 41% 59%

Total

83

100%

50 45 40 35 30 25 20 15 10 5 0 1 2

Series1 Series2 S2 S1

Interpretation : From the above diagram it is clear that 41% of glow sign board is of Pepsi while 59% is that of coca cola .

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6.5 PERCENTAGE SHARE OF SATISFACTION OF DISTRIBUTION :

Product Name Pepsi Coca Cola Total

% 58% 42% 100%

Satisfaction of distribution in %

Pepsi Coca Cola

Coca Cola Pepsi

Interpretation : Pepsi retailers / dealers seem to be much more satisfied by the service provided by distributors then that of Coca Cola.

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Chapter 7

1. 2.

CONCLUSIONS SUGGESTIONS

7.1

CONCLUSIONS

1. companies. 2.

The whole analysis shows that there are only two companies dominating in the soft

drinks market Pepsi Cola and Coca Cola. There is neck to- neck competition in between these

Pepsi has invested more in the market. Distribution of VISI Coolers and display of

Glow Signs board is less than that of Coca Cola but still more investment is needed to break the brand estalishment of Thumps Up and Sprite. 3. All the areas in Budh Marg, I-tax,etc. almost all the retailers are satisfied with the

distribution network of the Pepsi product. 4. Most of the retailers want glow signboard and chilling equipments, which they are

asking from long time. 5. 6. In Cola segment Thumps-up and in lime segment sprite is the main competitors of Pepsi Most of the Consumers dont like the taste of Pepsi due to its sweetness and low fizz. 7. All the products of Pepsi like 7up, & Dew is not provided when the retailers

demand it.

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SUGGESTIONS
1. Pepsi should come out with such an advertisement, which can block the customers mind and can change the customers perception about the product 2. Pepsi is sweet and low fizz soft drinks that everybody knows and so lots of

people do not like, so to cacth the customers, Pepsi should come out with more fizz like Thums up. 3. 4. Company executives should visit the counter on regular basis. Executives should take the feedback from the retailers about the service of the

salesman and the distributors. 5. increase in sales. 6. The criteria to provide Glow Signboard, Flax board , VISI Cooler, and OYC Salesman should have better interaction with the retailers which results in

should be changed and a separate department should handle this. 7. market a present. 8. Dew should be launched in 200ml. RGB. All the Pepsi products should be provided at required level to snatch the

competitors market e.g. 7up for Sprite, Mirinda for Fanta and Slice for Mazzaa which is dominating the

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ANNEXURES

GLOSSARY OF THE TERMS QUESTIONNAIRE BIBLIOGRAPHY

GLOSSARY OF THE TERMS

FOBO COBO FMCG MNCs MMM

- Franchise Owned Botting Operation. - Company Owned Bottling Operation. - Fast Moving Consumer Goods. - Multinational Companies. - Master of Marketing Management.

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QUESTIONNAIRE

Name of the outlet : .................................................................. Address : .......................................................................

l .Q. Which brand of soft drinks you deal in ? (a) Pepsi-Cola (c) Both (b) Coca-cola (d) Other

2.Q. Which brand of cola provides you better facility ? (a) Pepsi-Cola 3.Q. (b) Coca-cola (c) Both

How many crates of Pepsi-Cola & Coca-Cola you sell/day ? (a) 0-1 crates (c) 2-3 crates (b) 1-2 crates (d) 3 & above

4.Q. Which companys signage you have in your outlet ? (a) Pepsi (c) Both (b) Coca-Cola (d) No signage

5.Q.

Which type of Signage in your outlet ? (a) Flex-Board (c) Glow Sign Board (b) Dealer Board (d) Both

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6.Q. Which companys visi - cooler & Oyc you have in your outlet? (a) Pepsi-Cola (d) both (b) Coca-Cola (c) Own

7.Q. In your openion which medium is more effective for the sales advertisment ? (a) Television (c) Display (b) Magazines/Newspapers (d) Wall paintings/Hoardings

8.Q. Do you think that aggressive advertising further help you to increase the sales volume of Cola ? (a) Yes (b) No

9.Q. What kind of promotional activities do you like most ? (a) Free bottle scheme (c) Discount Crates (b) Prize (d) Other .

10.Q. Your recommendation for further sales impromment in your locality ? ...................................................................................

11.Q. Give me two suggestion for betterment of Pepsi-Cola ? (a) (b)

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IV.

BIBLIOGRAPHY REFERENCE BOOKS

Concepts of Marketing: India Ltd. G.C.Beri, Marketing Research 3rd edition, Me Milan India Ltd. News Paper & Magzines Economic Times Kotler Philip, Marketing Management, 11th edition, Prentice hall of India Pvt. Ltd. Ramaswamy And Namakumari, Marketing Management, 3rd Edition, Macmillan

Websites: www.Pepsico.com www.Pepsizone.com

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