PROJECT REPORT

On
STRATEGY FOR MARKETING THROUGH RETAIL OUTLETS

FOR
THE PARTIAL FULFILLMENT OF THE AWARD OF THE DEGREE OF
MASTER OF BUSINESS ADMINSTRATION
FROM GGS IP UNIVERSITY
DELHI
BATCH: 2013-2015

SUBMITTED BY:

SUBMITTED TO:

Vijay Singh

Prof. Uma Luthra

MBA-10

ARMY INSTITUTE OF MANAGEMENT & TECHNOLOGY,

GREATER NOIDA (UP) 201306
1

Supervisor Certificate
This is to certify that Vijay Singh, a student of Master of Business Administration, Batch
MBA-10, Army Institute Management & Technology, Greater NOIDA, has successfully
completed his project under my supervision.

During this period, he worked on the project titled STRATEGY FOR MARKETING
THROUGH RETAIL OUTLETS in partial fulfillment for the award of the degree of
Master of Business Administration of GGSIP University, Delhi.

To the best of my knowledge the project work done by the candidate has not been
submitted to any university for award of any degree. His performance and conduct has
been good.

(Signature)
Prof (Dr.) Uma Luthra
AIMT-Gr. NOIDA

Date:

Certificate of Originality

I, Mr. Vijay Singh, Roll No. ________of MBA 10 batch of Army Institute of Management
& Technology has undergone a Summer Internship in Varun Beverages for a duration of 8
weeks on a project title , hereby declare that this project STRATEGY FOR
MARKETING THROUGH RETAIL OUTLETS is my original piece of work.

Signature of the student:

Student Name:
Date

ACKNOWLEDGEMENT

I want to show my sincere gratitude to all those who made this study possible. First of all I am
thankful to the helpful staff and the faculty of Army Institute of Management and Technology.
Second I would like to extend my sincere thanks to my Industry Guide, Mr. Santosh Modi for
his/her untiring cooperation. One of the most important tasks in every good study is its critical
evaluation and feedback which was performed by my faculty guide Prof (Dr.) Uma Luthra. I
am very thankful to my Faculty as well as Industry guide for investing his precious time to
discuss and criticize this study in depth, and explained the meaning of different concepts and
how to think when it comes to problem discussions and theoretical discussions. My sincere
thanks go to my Institute and family, who supported and encouraged me.

Vijay Singh
Course MBA

Table of content
CHAPTER

TOPIC

PAGE NO.

Executive Summary
1

Introduction
1.1Overview of the company
1.1.1Company profile
1.1.2 History of soft drinks
1.1.3 Introduction of Pepsi
1.1.4 PepsiCo India
1.1.5 Brand Names and Details
1.1.6 Pepsi Brands

9
9
9
9
11
12
17

1.2 Japuria Group

1.2.1 RKJ Group
1.2.2 Varun Beverage Ltd.
1.2.3 The competitive area amount Pepsi & Coke
1.2.4 Promotion of the Company
1.2.5 Swot analysis
1.2.6 Achievements and Awards

18
18
19
20
21
22
24

RESEARCH OBJECTIVE

25

LITERATURE REVIEW

27

RESEARCH METHODOLOGY

30

DATA ANALYSIS

33

FINDINGS AND CONCLUSION

47

SUGGESTIONS

50

LIMITATION

52

BIBLIOGRAPHY

54

10

APPENDIX

56

EXECUTIVE SUMMERY
Beverage Industry is one of the fast growing industries in India. It can be divided into two
sections that i.e. carbonated & Non carbonated. The carbonated drink for the classified into
cola, lemon, orange, mango & apple segments. Marketing includes all the activities like
promotions, distribution, advertising etc. To fulfill the all segment of the consumers marketing is
also to convert social needs into profitable opportunities.
The project is Strategy for marketing through retail outlets
PepsiCo are facing problems regarding product and display of the product in the premises of the
outlets so as the result the sale of the product has not been achieving the sales target set by the
company.
So this topic entire essential to theoretical knowledge & to inculcate the efficiency. It also
requirement for the company to improve their service and quality for achieving their ultimate
goal
The topic has been given by the company to collect information about the current status given by
the company to the retailer for selling of every branch soft drink of PepsiCo.
The main objective of the research was to know the companys position in the soft drink market
by doing brand display and trading schemes.
This study covers marketing through retail outlets. During my study I covered all the major areas
of the south and west Delhi. I surveyed around 100 retail outlets. This study covers all the majors
dimensions considered essential for proper sale and merchandising management. Some of them
include sales support trade schemes, profit schemes and looking after the proper re
imbursement on trade scheme are very much essential step to be taking by PepsiCo. The retailer
in the Goa seems to be unhappy with the support material provided by the PepsiCo, which it has
to look into Immediately Company executives must try to build good relationship with the
retailers by addressing their problems continuously

Chapter I
Introduction

1.1

OVERVIEW OF THE COMPANY:

1.1.1
Company Profile
Varun Beverages Ltd. is a private ltd to which franchise is given by Pepsi Food Ltd. for bottling
of the various Pepsi brands.
Managing Director of the company is Mr. Ravi Kumar Jaipuria, leading top businessman (In Soft
drink Market) in India.
1.1.2 History of Soft Drinks:
The history of soft drinks began with the end of the last century. Its history dates back to the civil
war in USA in 1860.At the time people were suffering from many diseased.
Problem at that time was how to cure all these disease since no remedy was present at that time.
It was a big question for American people. So in 1885, Mr. JihnPalmwartion, made a drink and
registered it as FRENCH WINE COLA. In the beginning the drink was made with mixture of
cocaine and alcohol but later on it was converted and changed into a soft drink. Now it is named
as Coca-Cola. A new named Pepsi-Cola came in the year 1887.
1.1.3 Introduction of PepsiCo:
PepsiCo, Inc. is currently one of the most successful consumer product company in the world
with annual revenues exceeding $30 billion and has more than 4,80,000 employees.
PepsiCo, Inc. began as a successor to a company incorporated in 1931, known as Loft Inc. Once
known as Pepsi-Cola, the company expanded its business and adopted its current name, PepsiCo,
after a merger with Frito-Lay in 1965.
PepsiCos products are recognized and are the most respected all around the globe.
Currently, PepsiCo division operates in three major US and International businesses: beverages,
snack foods and restaurants.
PepsiCo is a global food and beverage leader with net revenues of more than $65 billion and a
product portfolio that includes 22 brands that generate more than $1 billion each in annual retail
sales. Our main businesses Quaker, Tropicana, Gatorade, Frito-Lay and Pepsi-Cola make
hundreds of enjoyable foods and beverages that are loved throughout the world. PepsiCos
people are united by our unique commitment to sustainable growth by investing in a healthier
future for people and our planet, which we believe also, means a more successful future for
PepsiCo. We call this commitment Performance with Purpose: PepsiCos promise to provide a
wide range of foods and beverages from treats to healthy eats; to find innovative ways to
minimize our impact on the environment by conserving energy and water and reducing
packaging volume; to provide a great workplace for our associates; and to respect, support and
invest in the local communities where we operate..
The operations increasing success has been based on high standards of performance, marketing
strategies, competitiveness, determination, commitment and the personal and professional
integrity of their people, products and business practices. PepsiCos overall mission is to increase
9

the value of our shareholders investment through sales growth, investments and financial
activities.
PepsiCo believes their success depends upon the quality and value of their products by providing
a safe, whole some, economically, efficient and a healthy environment for their customers and by
providing a fair return to their investors while maintaining the highest standard quality.

Name
Industries served

PepsiCo Inc.
Beverages
Food founded in 1965
Geographic areas served
Worldwide
Headquarters
U.S., New York
Current CEO
IndraNooyi
Revenue
$ 65.492 billion (2012)
Profit
$ 6.178 billion (2012)
Employees
297,000
Main Competitors
The Coca-Cola Company, Dr Pepper Snapple Group, Inc.,
Mondelez International, Inc., Hansen Natural Corporation,
National Beverage Corp., Kraft Foods Inc., The Kellogg
Company, ConAgra Foods, Inc., Nestl S.A. and others.
PepsiCo is a world leader in convenient snacks, foods and beverages.

Products: Pepsi Tropicana, Gatorade Lays Doritos Frappuccino Mountain Dew

PepsiCo, Inc. is one of the worlds largest food and beverage companies. The companys
principal businesses include:
Frito-Lay snacks
Pepsi-Cola beverages
Gatorade sports drinks
Tropicana Juices
10

Quaker Foods

PepsiCo was found in 1965through the merger of Pepsi-Cola and Frito Lay.

1.1.4 PEPSICO IN INDIA:

PepsiCo is a world leader in convenient foods and beverages, with 2006 revenues of more than $
35 billion and more than 1,68,000 employees across the world. Its world renowned brands are
available in nearly 200 countries and territories.
PepsiCo entered in India in 1989 and in the span of a little more than a decade, has grown to
become the countrys largest selling food and beverage companies. One of the largest
multinational investors in the country. PepsiCo established a business which aims to serve the
long term dynamic needs of consumers in India.
The group has built an expensive beverages, snack foods and exports business and to support the
operations are the groups 37 bottling plants in India of which 16 are company owned and 21 are
franchisee owned. In addition to this, PepsiCos Frito Lay snack division has 3 state of the art
plants.
PepsiCos business is based on its sustainability vision of making tomorrow better than today.
Our commitment to living by this vision everyday is visible in our contribution to our country,
consumers, farmers and our people.

Providing Consumers with balance and choice:

PepsiCo Indias expansive portfolio includes iconic refreshment beverages Pepsi, 7UP, Mirinda
and Mountain Dew in addition to low calorie options- DictPepsi and 7Up Light, hydrating and
nutritional beverages such as Aquafina drinking water, isotonic sports drinks- Gatorade and 100
% natural fruit juices and juice based brand drinks Tropicana and slice.
Our local brands- Lehar Everest Soda, Dukes Lemonade and Mangole complete our diverse
spectrum of brands.
PepsiCos snack food company; Frito Lay, is the leader in the branded potato chip market and
was amongst the first companies to eliminate the use of trans fats and msg in its products. It
manufactures Lays potato chips.
PepsiCo India has 40 bottling plants in India.
11

 PepsiCo generates direct employment for more than 4000 people in India and indirect
employment for 60,000 people.
Sells more than 200 million crates annually.
PepsiCo generates estimated annual retail sales of U.S. $ 700 million in India
PepsiCo annually exports from India are worth over U.S.$60 Million.
1.1.5 Brand Name & Detail:PEPSI

Brand History
Pepsi is a hundred-year-old brand loved by over 200 million people worldwide. The
largest single selling soft drink brand in India, Pepsi is ubiquitous on just about every
social occasion.

Youngistaan loves it. 200 million people worldwide love it. But what has made
Pepsi the single largest selling soft drink brand in India is actually a formula concocted a
century ago in a faraway continent.
1886, the US. Caleb Bradman, a man with a plan formulated a blockbuster of a
digestive drink and decided to call it Brads drink. The potion was to become Pepsi Cola
in 1898, and eventually, Pepsi in 1903.
Since its inception, Pepsi has always been at the forefront of the beverage
industry and has come up with revolutionary concepts such as Diet Pepsi, 2l bottles,
recyclable plastic cola bottles and the enviable My Can.
Brand Advantage

Pepsi has become a friend to youth and youth culture. Over generations,
youngsters have grown up with Pepsi and have shared an emotional connect with it
unlike with any other cola brand. Be it parties, hangouts with friends, or just another day
at home, a day is never complete without the fizz of Pepsi!
Pepsi has always fuelled youth passions like cricket, Bollywood, music and now
football. Youth icons like MS Dhoni, RanbirKapoor, Didier Drogba, VirendarSehwag,
Sachin Tendulkar, Priyanka Chopra and DeepikaPadukone have endorsed Pepsi since
its launch in India.
Pepsi Changed the Game during the 2011 cricket world cup by challenging
convention, celebrating the unorthodox and by becoming the official sponsor of
12

everything that was unofficial about the sport! Change the Game even as a thought has
gained enormous popularity and generated tremendous buzz.
Taking the same theme forward in 2012, Pepsi changed the game yet again by
taking the lead in celebrating the exciting new platform of football. Having brought the
biggest international football stars and pitching them against the mighty Indian
cricketers in a classic faceoff for Pepsi is something which only a brand like Pepsi can
deliver.
7 UP

Brand History
7UP, the refreshing clear drink with a natural lemon and lime flavour was created in 1929. 7UP
was launched in India in 1990 and its international mascot Fido Dido was used for advertising in
1992 to position the brand as a cool drink for youngsters. Fido became an instant hit with his
trendy look, laid-back attitude and unconventional take on life. During the brands early years in
India, 7UP gained market leader status in the lemon lime category by being one of the first to be
nationally distributed besides being marketed as a healthier alternative to other soft drinks.
Brand Advantage
For the past two years, 7UPs ambition as a brand has been to capture and own the lemon
refreshment territory within the clear lime category. Lemon has proven to be a clear and
relevant differentiator for the brand. Further, the emotional connect with the idea of upliftment
through refreshment has led to an impressive payoff for the brand.
After establishing itself as The Lemon Drink in January 2009, 7UP has continued to build on
the theme of mood upliftment with its new tagline Mood Ko Do Lemon Ka Lift.

13

AQUAFINA

Brand History
Aquafina was first launched in the US in 1994. With its unique purification system and great
taste, Aquafina soon became the bestselling brand in the country.
In India, Aquafinas journey began with its launch in Bombay in 1999 and it was rolled out
nationally by 2000. On the strength of its brand appeal and distribution, Aquafina has become
one of Indias leading brands of bottled water in a relatively short span of time.
Brand Advantage
Aquafina goes through a five step state-of-the-art purification process to give consumers pure
water and perfect taste.
Aquafina has been built through refreshing and sharp advertising. The What a Body campaign
has helped the brand to drive premium, modern and youthful imagery in an otherwise
undifferentiated category.
Bottled across India in 19 plants, Aquafina is available across more than half a million outlets.
Catering to diverse consumer needs and occasions, it is available in various pack sizes like
300ml, 500ml, 1 ltr and 2 ltr bottles and in bulk water jars of 25 ltrs.
Aquafina is the face of PepsiCos water conservation initiatives and builds awareness about
Pepsicos efforts to replenish and restore the water table through its pack labels.
14

MIRINDA

2012 Brand Campaign

Mirinda has always stood for great bold taste that unleashes uninhibited fun. Taking the
promise forward, Mirinda launched two new exciting flavors- Orange Mango and
Orange Masala which appeal to the Indian palette. While Orange Mango is the perfect
mix of the sweet candy taste of mango flavor and the tanginess of original Mirinda
Orange; Orange Masala tickles the taste buds with a hint of fruit masala flavor added to
Mirinda Orange. The launch was supported by a robust 360-degree campaign including
outdoor, online and a consumer engagement programme to bring alive the taste
experience.
Brand History
Mirinda is an international soft drink brand from Spain that was launched in India in
1991. The irresistible taste of Mirinda was communicated through our 1996 Mirinda
Men campaign, the 2000 Taste Pe Atka, Mirindaaaa campaign and the Taste
AisaChaye Character FislaJaye campaign of 2003.
In 2008, the brand decided to up the ante and deliver a brand philosophy that would
resonate strongly with consumers. Consequently, Mirinda adopted a bold and vibrant
colour, great orangey taste and sparkling bubbles that encouraged one to be more
15

carefree, spontaneous and playful and occasionally give in to an impulse of uninhibited

fun. This was conveyed through the PagalpantiBhiZarooriHai campaign with Asin in
2008. In 2009, Mirinda established orange as the core of the brand with Orange
DikhaTohMooh Bola Mirindaaaa.

SLICE

Brand History
Slice was launched in India in 1993 as a refreshing mango drink and quickly went on to
become a leading player in the category.
In 2008, Slice was relaunched with a winning product formulation that made consumers
fall in love with its taste. With new pack graphics and clutter-breaking advertising, Slice
has built a powerful appeal.
Brand Advantage
With the launch of the Aamsutra campaign in 2008, its winning taste and appealing
pack graphics, Slice created a great deal of excitement in its category and celebrated
the indulgence in mangoes like no other brand had done before.
While other players have portrayed the mango as a simple and innocent fruit, Slice
celebrates the sheer indulgence and sensuality involved in consuming a mango. The
creative Aamsutra idea communicates the experience of extreme sensuous pleasure
through the act of drinking Slice.
Slice was the first brand ever in the Juice and Juice Drinks category to sign on
Bollywood diva Katrina Kaif as the brand ambassador for Slice.

16

In 2009, Slice took the notion of indulgence to a whole new level with the launch of the
Slice Pure Pleasure Holidays, giving its consumers a chance to win luxurious allexpenses-paid holidays to dream European destinations like Paris, Vienna, Greece and
Venice.

Slogans of PEPSI:
1992: Be Young, Have fun , Drink Pepsi
1995: Nothing else is a Pepsi
1996: Pepsi : Theres nothing official about it
1997: Generation Next. With Spice Girls
1998: Yehdil Mange More (in Hindi My heart wants more)
1999: Ask for more
2003: Its the cola / Dare for more
2005: Wild things / Ask for more
2006: Why you Doggin Me / Taste the one thats forever young
2007: More Happy / Taste the one that is forever young (Michael Alexander)
2008: YehhaiYoungistaanmerijaan !
2008: Pepsi Stuff
2013: Oh Yes Abhi

1.1.6 PEPSICO BRANDS:

PEPSICO

Snack Foods
Frito Lay

Beverages
Pepsi

Restaurants
KFC
Pizza Hut
Taco Bell

17

1.2 JAIPURIA GROUP

Indian Beverages Industrys size is Rs. 8000 crores and it is
dominated by two players viz Pepsi and Cola only.
The high profile industry has lot of potential for growth as per capita consumption in India is 8
bottles a year as compared to 20 bottles in Srilanka, 14 in Pakistan. While 12 a person in Nepal.
The RKJ Group is Indias leading supplier of retailer brand carbonated and Non-carbonated soft
drinks with beverage manufacturing facilities in India Nepal. Its exp in the beverage Industry
dates back to the sixties when it had the first Franchisee in Agra.
The group manufactures and markets carbonated and non-carbonated soft drinks and Mineral
water under Pepsi Brand. The various flavors and sub brands are Pepsi, Miranda Orange,
Miranda Lemon, and Mountain Dew, 7 Up, Slice Mango, Slice Orange, Everest Soda and
Aquafina.
It has the licenses to supply beverages in the territories of Western UP, Part of MP, half of
Haryana, Whole of Rajasthan, Goa, 3 Districts of Maharashtra, 9 Districts of Karnataka and
whole of Nepal, The group has in total 18 bottling plants in India and Nepal and is responsible
for providing and marketing 44% of Pepsi requirement in India.
1.2.1 R.K.J. GROUP

Varun Beverages Ltd. Pepsi

Devyani Foods Industries Pvt. Ltd. -Cream Bell
Costa Coffee
Pizza Hut
D.P.S.
Saint Mantas
KFC

1.2.2VARUN BEVERAGES LTD.

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Varun Beverages Ltd was the new start was born in 1999 among the Jaipuria Group.
This is raising sun of Jaipuria group. Mr. Ravi kant Jaipuria who is the chairman of this bottling
plant has good result.
The main object of this unit is manufacturing, production, selling, distribution and bottling of
beverages, created water soft drinks etc.
Mr. Ravi Kant Jaipuria got the best Pepsi Bottle award in 1998 for the Best Bottler of the world.
The Pepsi award is the highest honorable award to any franchisee.
It can be said with absolute certainty that the RKJ Group has carved out a special niche for itself.
Our services touch different aspects of commercial and civilian domain like those of Bottling,
Food Chain and Education.
Varun Beverages Ltd. is a franchise of PepsiCo International and produces glass bottled soft
drinks of the Pepsi brand in the states. Pepsi Co is a world leader in food and beverages
industries with revenues of about $25 billion and has 142,000 employees. It has its Corporate
Office is in U.S.A. Pepsi Co Beverages International is involved in beverage manufacturing.
The Head Office of VARUN BEVERAGES is located in Haryana. It is a private limited
company owned by Mr. Ravi Jaipuria.
MISSION
Its overall mission is to increase the value of their shareholders through sales growth, cost
control and wise investments. They believe commercial success depends up on offering quality
and value to customers and consumers.
VISION
To produce best Quality products at lower cost which can be made possible through optimization
of resources, better discipline, team work, multi-tasking and high consumer satisfaction.
OUR SUCCESS:
Production of innovative, high quality retail branded beverages combined with world class
packaging. Driven by a management team with a relentless focus on achieving superior customer
service, driving earnings improvement and increasing shareholder value
OUR PEOPLE:
At RKJ we are creating an environment where our employees enjoy a greater degree of
empowerment both individually and in their work teams.
Our employees are equipped with the necessary tools, training and management backup for
strong performance and accountability, as well as with an environment of open communication
and involvement.
1.2.3 The Competitive Area among PepsiCo and Coke:
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The soft drink market all over the world as been witnessing a neck-to-neck battle between the
two major players; Coca Cola and Pepsi since very beginning The thirst quenchers are trying
hard to have the major piece of the apple of overall carbonated soft drink market. Both the
players are spending their energies in building capacity, infrastructure, promotional activities etc.
PepsiCo is facing the completion mainly by Coke. It has a competition for all its products by
Coke.
Both the competitors have distinct vision and priorities about the Indian soft drink market.
Through having so much difference and distances with one another, they both consider India as a
huge potential market as per the capita consumption hare in more 3 servings per year against in
International of 80. Throughout they are putting best efforts to woe Indian consumer who has to
work for 1.5 hours to buy a bottle cross over for both the athletes running for getting for No.1
position.
Coca-Cola is well set with its 53 bottling sites throughout the country giving it an edge over
competition by possessing a well built manufacturing and distribution set up on the other side of
picture, Pepsi, with two more year in India, has been able to set an image of winner this giants
are ready to turn every stone of opportunity with a mind set of long tenure this time.
Pepsi is quite aggressive in approach to Indian Consumer. They are desperately working in the
strategy to be winner side in the hot cola war between two big barons. Pepsi had pumped a large
amount on visibility of its blue-red and white logo. They have been going with aggressive
marketing by putting Sachin Tendulkar and now Shahrukh Khan is there advertisement to
endorses their brand, the role models for its targeted consumer the teenagers. They have increase
the fizz in the market price by introducing the dispensers called fountain Pepsi and been enjoying
a lead over its rival there.
The Major fight between the Pepsi and Coca-Cola products is as follows:
For
Pepsi ----------- Coca Cola
Slice ------------Mazza
7-Up ----------- Sprite
Miranda --------Fanta
Nimbooz-------Limca
Pepsi Max------Thumps Up
Aquafina------- Kelley Water

1.2.4 Promotion of the Company:

20

All advertisement expenditure is incurred by PepsiCo India, but only D.P Board, wall painting,
S.G.A.s etc. Company spends on it around 8-9% total sales company invested 305 crore rupees
in advertisement budget.
Radio
TV
Hoardings
Road Signs
Sticker
Neon Light
1.2.5 SWOT ANALYSIS:
SWOT analysis of Pepsi for 2013.
PepsiCo SWOT analysis 2013

Strengths

Weaknesses

1 Product diversity
2 Extensive distribution channel
3 Corporate Social Responsibility
(CSR) projects
4 Competency in mergers and
acquisitions
5 22 brands earning more than $1
billion a year
6 Successful marketing and
advertising campaigns
7 Complementary product sales
8 Proactive and progressive
Opportunities

1 Overdependence on Wal-Mart
2 Low pricing
3 Questionable practices (using tap
water but labeling it as mountain
spring water)
4 Much weaker brand awareness
and market share in the world
beverage market compared to
Coca-Cola
5 Too low net profit margin

Threats

1 Growing beverages and snacks

consumption in emerging markets
(especially BRIC)
2 Increasing demand for healthy food
and beverages
3 Further expansion through
acquisitions
4 Bottled water consumption growth
5 Savory snacks consumption growth

21

1
2
3
4

Changes in consumer tastes

Water scarcity
Decreasing gross profit margin
Legal requirements to disclose
negative information on product
labels
5 Strong dollar
6 Increased competition from
Snyders

STRENGTHS
1. Product diversity. PepsiCo has several hundreds of brands, which include: carbonated and
noncarbonated drinks, water, savory and whole grain-based snacks. Product diversification
strengthens PepsiCo because it doesnt have to rely on few key products or seasonal sales and
isnt significantly affected by changes in customer tastes.
2. Extensive distribution channel. PepsiCo products are served to more than 10 million stores per
week in more than 200 countries.
3. CSR. The firm recognizes its role in a society and engages in education, recycling, water
usage reduction, obesity fighting and other projects throughPepsiCo Foundation, thus increasing
its brand awareness and customer loyalty.
4. Competency in mergers and acquisitions. The key to PepsiCo growth is its successful mergers
and acquisitions of beverage, bottling and snacks companies. PepsiCo acquired such brands as
Gatorade, Tropicana, Doritos, Quaker Oats and many others.
5. 22 brands earning more than $1 billion a year. The company doesnt have to rely on one or
two of its product to bring most of the revenues. Instead, Pepsi has 22 brands that contribute
significantly to its income, serving different industries and satisfying various consumer tastes.
6. Successful marketing and advertising campaigns. More than $2 billion spent on advertising
over 2012 resulted in PepsiCos growing market share over its main competitors, including Coca
Cola Company, which spent even more on advertising.
7. Complementary product sales. In its annual financial report, PepsiCo revealed one of its
studies results that about 30% of customers who buy its snacks also buy its beverages. PepsiCos
decision to diversify its product range is firms competitive advantage too.
8. Proactive and progressive. According to New York Times food industry writer Melanie
Warner, PepsiCo, by many critics, is considered to be most proactive and progressive food
company.
WEAKNESSES
1. Overdependence on Wal-Mart. More than 13% of PepsiCo revenues come from Wal-Mart
store chain. Wal-Mart has a significant buyer power and can easily dictate prices over PepsiCo
leaving it with very small margins. In addition, if PepsiCo would lose Wal-Mart it would lose
13% of its revenue and competitive advantage.
2. Low pricing. PepsiCo usually prices its products lower than its competitors. Low price is
associated with low quality and PepsiCo products are usually perceived as ones.
3. Questionable practices. PepsiCo is using and selling tap water but places view of mountains
on its water bottle labels, thus deceiving people that it is mountain spring water when it is not.
PepsiCo has also been criticized for using water in India with higher than allowed amount of
pesticides in it.
4. Weak brand awareness. The Coca Cola has the largest share market of beverages in the world
and much stronger brand awareness than Pepsi, placing it at competitive disadvantage.
5. Too low net profit margin. PepsiCos net profit margin is 9.7% compared to Coca Colas
18.55% and Nestls 11%.

22

OPPORTUNITIES
1. Growing beverages and snacks consumption in emerging markets. PepsiCo has made large
investments in BRIC countries to expand its market share as these countries represent the fastest
growing food and beverages markets in the world. If PepsiCo is successful it will increase its
revenues and global market share significantly. In addition, it will be able to rely less on US
market.
2. Increasing demand for healthy food and beverages. Due to many programs to fight obesity,
demand for healthy food and beverages has increased drastically. PepsiCo has an opportunity to
further expand its product range with beverages and snacks that have low amount of sugar and
calories.
3. Further expansion through acquisitions. So far, PepsiCo has been successful in acquiring other
companies and adding new growing brands to its portfolio.
4. Bottled water consumption growth. Consumption of bottled water is expected to grow both in
US (PepsiCos largest bottled water market) and the rest of the world.
5. Savory snacks consumption growth. The same opportunity PepsiCo has in growing its revenue
selling snacks as this market is also expected to grow.
THREATS
1. Changes in consumer tastes. Consumers around the world become more health conscious and
reduce their consumption of carbonated drinks, drinks that have large amounts of sugar, calories
and fat.
2. Water scarcity. Water is becoming scarcer around the world and increases in both cost and
criticism for PepsiCo over the large amounts of water used for production.
3. Decreasing gross profit margin. PepsiCos gross profit margin was decreasing over the past
few years and may continue to decrease due to higher water and other raw material costs.
4. Legal requirements to disclose negative information on product labels. Some researches show
that particular ingredients, consumed in extra large quantities, in some of PepsiCo products could
cause cancer. For this reason, many governments consider to pass legislation that requires
disclosing such information on product labels. Products containing such information may be
perceived negatively and lose its customers.
5. Strong dollar. More than 50% of PepsiCos income is from outside US. Due to strong dollar
performance against other currencies PepsiCos income should fall.
6. Increased competition from Snyders. Snyders increase its US savory snacks market share by
1.6% and almost all of it was taken from PepsiCo.

23

1.2.6 Achievements / Awards:

PepsiCO in India is among 12 American companies selected as finalists for the Secretary
of states prestigious 2010 award for corporate excellence.
PepsiCO was recognized with a Asia region HR star award in 2006.
PepsiCo Palakkad plant won Golden Peacock National Award for a Management in 2001
and 2002.
Award for Best HR strategy in the line with business PepsiCo India Holding Pvt. Ltd.
(Frito Lays Division).
Award for Excellence in Training PepsiCo India Holding Pvt. Ltd. (Frio Lays Division).
PepsiCo India has been recognized by ILO in their Annual Report as a model partner for
the HIV/AIDS program.

24

CHAPTER 2
RESEARCH OBJECTIVE

25

2.1Objective of Research

To formulate the marketing strategy of PepsiCo

To judge the satisfaction level of retailers
To study about the services of PepsiCo towards retailers
To study about various schemes of PepsiCo

26

Chapter 3
Literature Review

3.1 What is marketing strategy?

Marketing strategy is a processs that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable
competitive advantage. Marketing strategies includes all basis the strategic initial situation

27

of a company and the formulation, evaluation and selection of market-oriented strategies and
therefore contribute to the goals of the company and its marketing objectives.
DEFINITION of marketing strategy
An organizations strategy that combines all of its marketing goals into one comprehensive
plan. A good marketing strategy should be drawn from market research and focus on the right
products mix in order to achieve the maximum profit potential and sustain the business. The
marketing strategy is the foundation of a market plan.
TRADE SCHEMS

CARD A/C- The retailer for discount only.(all retailer)

Key a/c- provide the discount and gift.(only high volume retailer)

BRANDINGBOARDS-Its is dynamic tool which provide with the outlet name board with
company name or logo.

CROSS PROMATION

PRODUCT/BRAND DISPLAYP-O-G FORM (PLANO GRAM)

3.2 Strategy:
Strategy is the choice of direction and the action the company adopts to achieve the objectives in
a competitive situation.
28

A strategy explains what was the objective of the organization and how the organization go about
to achieve its objective.
Ensure Sustainable, Profitable Growth in Beverages
Unleash the Power of "Power of One."
Rapidly Expand Our "Good-for-You" Portfolio
Continue to Deliver on Environmental Sustainability Goals and Commitments
Cherish PepsiCo Associates and Develop the
Leadership to Sustain Growth
DISTRIBUTION STRATEGY PROMOTION STRATEGY
SYSTEM
Sales forecasting system Order receiving system Order execution system Distribution
system

Card Account : We give the discount. Example: Free Bottle etc

Key account :- It generally happens on hard volume if the sales are increasing then will give the
discount.
Example: Discount with yearly gift.
Bar promotion In this, we provide the benefits on a certain completion of target.
Marketing mix modeling
Marketing mix modeling (MMM) is a term of art for the use of statistical analysis such
as multivariate regressions on sales and marketing time series data to estimate the impact of
various marketing tactics (marketing mix) on sales and then forecast the impact of future sets of
tactics. It is often used to optimize advertising mix and promotional tactics with respect to sales
revenue or profit.

29

Chapter 4
RESEARCH METHODOLOGY

30

Research Methodology:
This research involved a study, which was descriptive as well as explorative in nature it basically
aims at gathering data .
Type of Research:Exploratory Research:
Exploratory Research is main purposes would we to determine the approximate area where the
problem lies and also to identify some attractive courses of action to solve it. The main purpose
of this study is that the researcher can formulate a problem for more precise investigation or of
the developing the working hypothesis from an operational point of view. Research process is
flexible and unstructured. Sample is small and non-representative. This study includes extensive
study of the organization and market survey of retailers to satisfy the objective.
Data Sources:
1. Primary Data
2. Secondary Data
1 Primary Data Collection:
Sources from where firsthand information is gathered directly are called primary source and
information thus called primary data. In case of study the primary source are retailers.
2

Secondary Data Collection:

Sources of secondary data are internet and company documents. Secondary data is used to know
the soft drink industry and the information about the company.
Questionnaire:
Questionnaire consists of questions for retailers, which are of following types:
a) Dichotomous questions that are of yes / no types.
b) Multiple Choice questions
c) Structured questions
d) Close ended questions
Sampling Method:Sampling unit : Individual Retailer
Sampling Method: Random Sampling
Sample Size: 100 Retailers
Sampling Plan: Questionnaire and personal interview
Coverage: South and West Delhi

31

Plans of Analysis:
Systemic objective quantitative analysis of the contents through the questionnaire was done.
Detailed tables were developed showing the data collected from the respondents. From the table
the percentages were calculated on the basis of which the data was analyzed.
The various research measuring tools used are:
Questionnaire
Personal Interview
Tables
Percentage
Pie-charts
Bar-charts

32

Chapter 5
Data analysis

33

Collected data from the following markets

1

Saroijini Nagar Market

Vasant Vihar Market

Rajaury Garden Market

Lajpat Nagar Market

Satya Niketan Market

INA Market
Subhash Nagar Market

34

DATA ANALYSIS
1. Types of outlets a) Convenience
b) Grocery
c) Eatery
Objective: - To find out what kind of outlet is visited.
Table.4.1 Outlet Types
Types of Outlet
Convenience
Grocery
Eatery
Total

Total no. of
respondents
37
19
44
100

Percentage
37%
19%
44%
100%

Table 4.1- Types of Outlets

Convenience

Grocery

Eatery

37%

44%

19%

Inference:-PepsiCo sells most of soft drinks through Eatery outlet.

35

2. Did the advertisement affect the sales of your outlet?

a) Effectiveb) Not effectiveTable.4.2To find out the advertisement effect on sales:
Advertisement
effect the sales of
your outlet
Effective
Not Effective
Total

Total no. of
respondents
96
4
100

Percentage
96%
4%
100%

Advertisement affect the sales of outlet

Effective

Not Effective

4%

96%

Inference: It depicts that PepsiCo affect the sales of outlet through advertisement.

36

3-How many times you faced the shortage of the popular brand of PepsiCo in season?
Shortage of the
brand in season
0 Times
1 Times
2 Times
More than 2 times
Total

Total no. of
respondents
72
10
14
4
100

Percentage
72%
10%
14%
4%
100%

No. of times shortage faced

80
70
60
50

Shortage of the popular

brand in season

40
30
20
10
0

``
Inference:-PepsiCo takes care that shortage is not faced by the retailers.

37

4-Which types of schemes provided attract you?

Free bottles on crate

Monopoly discount
Brand display schemes
Target based benefit

Scheme type
Free Bottle on Crade
Monopoly discount
Brand display
scheme
Target based benefit
Total

Total no. of
respondents
53
6

Percentage
53%
6%

8
33
100

8%
33%
100%

Types of Scheme
Free Bottle on Crade

Monopoly discount

Brand display scheme

Target based benefit

33%
53%
8%

6%

Inference:-Free bottle of scheme is majorly provided by PepsiCo.

38

5- No. of crate sale per day?

1 to2
2 to 4
4 to 6
More then 6

Table No. 4.5:

No of crate sell per
day
1 to 2
2 to 4
4 to 6
More than 6
Total

Total no. of
respondents
58
31
8
3
100

Percentage
58%
31%
8%
3%
100%

No. of crade sell per day

1 to 2

2 to 4

8%

4 to 6

More than 6

3%

31%

58%

Inference: Majority of the retailers sell about 1-2 creates (24-48) bottles per day.

39

6- Which type of cold drink does a consumer prefer most?

PepsiCo
Coca-cola
other

Consumer preference towards

Brand
PepsiCo
Coca Cola
Other
Total

Total no. of
respondents
52
39
9
100

Percentage
52%
39%
9%
100%

Consumer prefernce towards brand

9%
PepsiCo
Coca Cola
39%

52%

Inference: Majorly consumer prefer PepsiCo brand.

40

Other

7 -Are all flavor of available during summer?

All flavor available during
season
Yes
No
Total

Total no. of
respondents
97
3
100

Percentage
97%
3%
100%

All flavor available during season

Yes

No

3%

97%

Inference: The data depicts that all the flavors are available during the season.

41

8-Which flavor of the consumer prefer most between PepsiCo and Coke ?

Consumer
Preference
Mountain Dew
Pepsi Cola
Miranda Orange
Miranda Lemon
7 Up
Slice
Everest Soda
Aquafina

PEPSICO
Pepsi cola
Mountain dew
Miranda orange
Miranda lemon
7up
Slice
Everest soda
Aquafina

COKE
Coke
Thumps Up
Fanta
Limca
Sprit
Mazza
Kelly soda
Kelly water
Consumer
Preference
Thumps Up
Coke
Fanta
Limca
Sprite
Mazza
Kelly Soda
Kelly Water

PepsiCo
14
17
3
2
4
6
2
2

18
16
14
12
10
8
6
4
2
0

Percentage
16
14
3
4
3
7
2
1

Pepsi
Column1
Coke

42

Inference:-There were very little difference between the competitors in terms of consumer
preference.

9-How much you are satisfied with PepsiCo services?

Fully satisfied
Partial satisfied
Not at all

Satisfaction of product level

Fully Satisfied
Partial Satisfied
Not at all
Total

Total no. of
respondents
65
33
2
100

Percentage
65%
33%
2%
100%

Satisfaction of product level

Fully Satisfied

Partial Satisfied

Not at all

2%
33%

65%

Inference:-Almost 65 % respondents were fully satisfied with the PepsiCo brand.

43

10- Would like to deal with PepsiCo Company in future?

Yes
No

Deal with PepsiCo brand in

future
Yes
No
Total

Total no. of
respondents
99
1
100

Percentage
99%
1%
100%

100
90
80
70
60

Column2

50
40
30
20
10
0
Yes

No

Inference: all the respondents were in favor to deal with PepsiCo brand in future.

44

11 Which factor affects the sales volume?

Advertisement
Schemes
Taste
Price

Factor affect the sales volume

Taste
Schemes
Advertisement
Price
Total

Total no. of
respondents
45
30
17
8
100

Percentage
45%
30%
17%
8%
100%

Factor affect the sales volume

45
40
35
30
25
20
15
10
5
0
Taste

Schemes

Advertisement

45

Price

12 Which type of visi cooler do you have?

Pepsi
Coke
Both
Total no. of
respondents
30
30
40

Visi Cooler you have

Pepsi
Coke
Both

Visi Cooler You have

Pepsi

Coke

Both

30%
40%

30%

Inference:- Almost equal the consumers have the visi cooler with them

46

Percentage
30%
30%
40%

Chapter-6
FINDINGS AND CONCLUTION

47

6.1Findings:

From the survey we can conclude that PepsiCo sell most of its products through eatery
and convenience shop.
Pepsi is the largest selling brand of Pepsi cola in Delhi followed by Mountain Dew.
Many of the retailers in Delhi are having Visi Cooler given by PepsiCo.
The performance level of Visi Cooler given by PepsiCo is excellent.
Majority of the retailers sell about 2-4crates per day.
25% retailer display 2 to 4 crates in their outlet & 30 % retailer doesnt display any crate
in their outlet.
PepsiCo try to solve the problem of the retailers with in the duration of 1 to 2 days of
time and they take care that the retailer does not face any shortage of any of the product.
Almost all the retailer are the opinion that they havent run out the stock and PepsiCo has
delivered products quickly to them
Free bottles on crates and brand display schemes are most sought scheme by the PepsiCo
retailers.
The behavior if PepsiCo officials are co-operative and friendly and the retailers are
satisfied with the execution done by the PepsiCo pre sales representative (PSR).
The sales of the PepsiCo products are high during April to June.
The advertisements done by PepsiCo have a huge impact on sales and the retailers are
satisfied with the promotional techniques adopted by PepsiCo.

48

49

6.2 Conclusion

PepsiCo is selling most of its products through eatery and convenience outlet; PepsiCo
should try its sales through the other format of outlet.
As it is evident from the survey that only Pepsi and Mountain Dew are the highest selling
brands; PepsiCo must focus on increasing the sales of Mirinda by offering the retailers
handsome margin on it and by using more advertisement and promotion of this brand.
The sales of PepsiCo are high during the month of April to June, the sale of the product
are comparatively low during the other season, therefore PepsiCo should come up with
the innovative promotional technique to increase the sales during the off season or to
maintain the uniform sale throughout the year.
PepsiCo should provide attractive display scheme to the retailers to motivate them to sell
move PepsiCo products and promote it to the customer as their competitor are providing
handsome amount of money to their retailers for proper display.
PepsiCo should maintain sufficient inventory of their product during the summer season
to their manufacturing plant.
PepsiCo should take crucial step so that the Visi-Cooler given by them should be filled
with PepsiCo products as much as possible, not with their local brand or competitors.
PepsiCo should encourage the retailers through innovative scheme and by arranging
yearly contest between the retailers for display.
The PepsiCo retailer should display the more crates within the premises of their shop so
that it would be visible to the customer and it will lead to generate more sales in the
outlet.
The amount on advertisement could be reduced, if emphasis is given on the strategies to
have long term relationship with indirect channel partners who directly come in contact
with the end-users.
The performance levels of the Visi Cooler provided by PepsiCo are of excellent quality.
It is not just enough to devise attractive schemes for the retailers; the company should
also ensure that it is being implemented properly and retailers get what they promised off.
As the findings of the market survey show that many retailers deal with both Pepsi and
Coke brands, PepsiCo has to keep in mind the stiff competition that there in the market
while devising marketing strategies

50

CHAPTER-7
SUGGESTIONS

51

7.1 Suggestions

They should increase another distribution channel in this area as the market is very huge
in this area.

Some customers are also complaining that the distributors are not giving them regular
schemes, so the company should send a supervisor every after 6 months for the survey, to
maintain good relationship with the outlets and also to find out if there is any problem in
their service quality.
Though it is not found during the study, PepsiCo can provide brand display scheme and
glow signboard in order to motivate them to sell and display more PepsiCo Product.
The damage product should be replaced as soon as possible.
The sign board should be provided to all retailers.
Another brand of cola flavor should have strong taste and more fizz so as to attract the
customer who like thumps up more than pepsi.

52

CHAPTER-8
LIMITATION

53

8.1 Limitation of the study:

Since the product under study was consumer goods, which require a large sample to have
a correct study, a sample size 100 respondents was too small for it. But time and money
did not allow researcher to have large sample and also to manage a sample would also be
difficult by researcher alone.
Mostly stress is given to primary data it was difficult to collect secondary data from the
organization and distributors.
Some of the respondents were not co-operative and many of them seem to be having no
interest.
The study has not intended on a very large scale, have the possibility of errors, which
cannot be rule out.
It is impossible to find out all the problem faced by PepsiCo in a span of one month.
Area of collection was specified.
It was extremely difficult to persuade retailer to respond to the questionnaire.
The Company does not provide any financial assistance.
The time allowed for the project was short it was impossible to study deeply in that
period.

54

CHAPTER 9
BIBLIOGHRAPHY

55

10.1BIBLOGRAPHY
Reference Books:
1. Assail H. Reed and Patton M. MARKETING: principle & strategy
H a r c o u r t - B r a c e , S yd n e y 1 9 9 5 .
2 . K o t h a r i C . R . r e s e a r c h m e t h o d o l o g y 2 n d e d i t i o n , Vik a s P u b l i s h i n g
house 2004.
3 . K o t l e r P h i l i p a n d o t h e r s , M a r k e t i n g M a n a g e m e n t , A S o u t h As i a n
p e r s p e c t i v e , 1 3 t h e d i t i o n P e a r s o n p r e n t i c e h a l l ( P P H ) , N e w J e r s e y,
USA 2009.
4. Lamb. J.McDaniel marketing 4 th edition, south-western college
publishing, Cincinnati 1998.
5. Maheshwari SN &Maheshwari SK, Accounting for Management,
3 r d e d i t i o n , 2 0 0 6 , Vik a s P u b l i s h i n g h o u s e .
6. Nargunkar Rajendra, Marketing Research 3 rd edition, The McGraw
H i l l C o m p a n y, N e w D e l h i 2 0 0 8 .
7 . Z i k m u n d a n d D A m i c o M . m a r k e t i n g , 3 r d e d i t i o n , Toh n w i l e y a n d
sons U.S.A.1989.

Web s i t e s :

w w w .p e p s i c o i n d i a . c o m
w w w .r j c o r p . i n
w w w .p e p s i . c o m
w w w .p e p s i z o n e . c o m

56

CHAPTER 11
Appendix
(Questionnaire)

Questionnaire

57

1- Type of outlet?
a) Convenienceb) Groceryc) Eatery2-Did the advertisement affect the sales of your outlet?
a) Effectiveb) Not effective3- How many times you faced the shortages of the popular brand of PepsiCo in season?
a) 0 times
b) 1 timesc) 2 timesd) More than two time4-Which types of schemes provide by PepsiCo attract you?
a)
b)
c)
d)

Free bottles on crate

Monopoly discount
Brand display schemes
Target based benefit

5- How many crates are sold in a day?

a)
b)
c)
d)

1 to22 to 4 4 to 6 More then 6

6- Which type of cold drink does a consumer prefer most?

58

a) PepsiCob) Coca-colac) other

7-Are all flavor of available during summer?

a) Yesb) No8-which flavor of the consumer prefer most?

PEPSICO
COKE
Pepsi cola----------- -------------Coca cola
Mountain dew- ------------------Thumps up
Miranda orange-------------------Fanta
Mirinda lamon ------------------Limca
7up---------------------------------Sprit
Slice-------------------------------Maaza
Everest soda----------------------Killey soda
Aquafina--------------------------Killey water

9- How much you are satisfied with the PepsiCo services?

a) Fully satisfied
b) Partial satisfied
c) Not at all

10- Would you like to deal with PepsiCo Company in future?

a) Yesb) No
59

11 Which factor affects the effect sales volume most?

a)
b)
c)
d)

Advertisement
SchemesTastePrice-

12 Which type of visi cooler you are having?

a) Pepsib) Cokec) Both13- Most sold brand of PepsiCoa)
b)
c)
d)
e)

Pepsi
7Up
Mountain Dew
Slice
Miranda

60