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PROJECT REPORT

On

TRAINEE SALES EXECUTIVE AT THE DISTRIBUTOR AND


RETAILER LEVEL
OF

SUBMITTED BY:
KARAN KHATRI
DEEPSHIKHA COLLEGE OF MANAGEMENT
AND SCIENCE

UNIVERSITY OF RAJASTHAN
JAIPUR
INDEX
1.) Acknowledgement
2.) Preface
3.) Introduction to Pepsi Worldwide
4.) The Top Brass at Pepsi Worldwide
5.) Bottling
6.) Product Profile
7.) Pepsi in India
8.) Terms and Terminology
9.) Research Methodology
10.) Work Process at VARUN BEVERAGESL
11.) TPM in Food and Beverages Industry
12.) Territory Division of Project
13.) Findings
14.) Recommendations
ACKNOLEDGEMENT

I owe a deep sense of gratitude to the members of the quality department and other
staff of Varun (Pepsi India)Beverages Pvt. Ltd. Balmukandpura, Jaipur for
their co-operation in designing and maturing the project Total Product
Management at the Distributor and Retailer level of Pepsi india.

I am thankful to Quality Assurance Manager, Senior Executive, Quality Assurance


and other officers of the quality department and other departments at Varun(Pepsi
India) Beverages Pvt. Ltd. for their sincere support in making this project a
success.

.
I am also grateful to all the distributors and retailers of Pepsi india for extending
their valuable support and time for answering our survey questions. I would like to
acknowledge the help of all those who have directly or indirectly contributed
towards making of this project.

It was indeed a wonderful experience to work with Varun(Pepsi India) Beverages


Pvt. Ltd.

(KARAN KHATRI)

PREFACE
I feel great pleasure in doing my project Total project Management at the Sales
, Distributor and Retailer Level of Varun (Pepsi India) Beverages Pvt. Ltd.
with Pepsi India. Their whole hearted support enabled me to complete this project.

This project is on Quality initiatives taken by Pepsi india in pursuit of TQM


Phase- III certification for the Balmukandpura Plant in Jaipur.

In the I phase of the project I collected various samples from the Distributors and
Retailers and surveyed the warehouses along various quality parameters with the
help of questionnaires and observation method.

In the second phase I analyzed the data generated in the I phase, generated report
on its basis and presented the same to the quality department officials with the
help of bar graphs, pie-charts and histograms.
INTRODUCTION TO PEPSI INDIA WORLDWIDE

This project builds off what our group submitted for project three, a research
project based on the ever-popular company PepsiCo. In this project we talked
again about what Pepsis missions and goals are, how they fare against todays
competition market, what products and services they offer in order to stay with the
game, and technology and innovation Pepsi has implemented in the past and plans
on implementing in the future. We also built on project three and used outside
sources to analyze Pepsis strengths and weaknesses as a company as a whole.
The final part of the assignment displays an information business model for Pepsi,
with key issues and ideas they incorporate in their daily activities. The work
system and business organization of PepsiCo are broken down into their
component parts and examples of each part are listed below the heading.
We will again leave out a reference page at the end and in place tell you the only
sites visited for information were the interesting and creative www.Pepsi.com, the
useful and informative site www.PepsiCo.com, and www.businessweek.com for an
outsiders opinion.
This project concludes with four self-evaluations from each group member, each
explaining our take on this project as a whole
The basic proposition of the business is simple, solid and timeless. The company
aims at bringing refreshment, value, joy and fun to its stakeholders, they
successfully nurture and protect brands, particularly Pepsi India. That is the key
to fulfilling our ultimate obligation to provide consistently attractive returns to the
owners of our business.

More than a billion times every day, thirsty people around the world reach for
Pepsi India products for refreshment. They deserve the highest qualityevery
time. Our promise to deliver that quality is the most important promise we make.
And it involves a worldwide, yet distinctively local, network of bottling partners,
suppliers, distributors and retailers whose success is paramount to our own. Our
investment in local communities in over 200 countries totals billions of dollars in
jobs, facilities, and marketing, the purchase of local goods and services, and local
business partnerships. Always and everywhere, we pursue continuous innovation
in the products we offer, the processes we use to make them, the packages we
develop and the ways we bring them to market.

The Pepsi India system is one of the most diverse organizations on earth, with a
rich mosaic of talented colleagues who bring a variety of intellectual, professional,
ethnic and cultural perspectives to our enterprise. They reflect the nations, cultures
and languages of the world. Our policy is to foster an inclusive environment that
encourages all employees to develop and perform to their fullest potential.

SPEECH BY CHAIRMAN

Our workplace must be a place where everyone's ideas and contributions are
valued. Our employees deserve equal treatment under our policies governing
compensation, advancement, health, safety and other aspects of workplace life. We
understand that fairness in the workplace, coupled with the opportunity to develop
individual capabilities, fosters our collective success.

Responsible stewardship of the environment is a top priority for The Pepsi India
Company. By preserving and enhancing our natural world, we brighten the future
for our planet and for each other. We put this principle into practice through The
Pepsi India Environmental Management System, known as EKOSYSTEM. We
operate our business as stewards of the environment, with a commitment to
continually move our business toward sustainability: striving to consume fewer
natural resources, and to recover and reuse resources more extensively. Our
commitment to protect the environment extends throughout our organization,
involving officers, managers and employees at all levels. We are accountable for
our actions, conducting assessments of our environmental performance and taking
action toward continuous improvement in all that we do. Society advances on the
strength of community: people sharing their ideas and resources to reach common
goals. We seek to strengthen local communities worldwide through our support for
education, through partnerships with other organizations and through acts of
citizenship by the people of Pepsi India.

We support education because of its power to expand opportunities for individuals


and increase understanding between cultures. We partner with national and
international organizations to alleviate economic disadvantage and help improve
the quality of life in local communities. Together with our local bottling partners,
we strengthen communities by giving with our hands and our hearts, as partners in
the promise of a better life.

There's never been a better time to be a part of The Pepsi India Company. Our
people are dedicated to strengthening relationships with stakeholders and
communities everywhere.
Steven S Reinemund
Chairman, Board of Directors, and Chief Executive Officer
Michael D. White
Vice Chairman
The Pepsi India Company Steven S REINEMUND leads The Pepsi India
Company into the new century with a firm commitment to the values and spirit of
the world's greatest brand. He was elected chairman and chief executive officer in
February 2000 and is the 11th person in the history of the Company to hold this
title.

Under Steven S Reinemund leadership, we have positioned The Pepsi India


Company for growth, guided by our mission to provide branded beverages that
refresh people around the world, anywhere, any time, everyday. By moving key
decision-making closer to local markets, we have spurred innovation, accelerated
growth and fostered deeper connections to consumers. Simply put, we are closer
than ever to you.
A talented and highly experienced worldwide management team coordinates our
new, nimble and entrepreneurial network.

Across more than 200 countries ... more than 100 languages ... a multitude of
cultures and geographies, The Pepsi India Company strives to be a special part of
people's lives. This privilege comes with a responsibility. We have chosen to take a
leadership role, knowing that our differences make us stronger in our business and
in our communities - each and every day.
We embrace our commitment to diversity in all its forms at The Pepsi India
Company as a core value. Diversity - of race, gender, sexual orientation, ideas,
ways of living, cultures and business practices - provides the creativity and
innovation essential to our economic well-being. Equally important is a highly
motivated, healthy and productive workforce that achieves business success
through superior execution and superb customer satisfaction.
In today's volatile economic environment, this kind of performance requires
unprecedented commitment to the principles of integrity and leadership. We are
intent on keeping that commitment.

Although Pepsi India was first created in the United States, it quickly became
popular wherever it went. Our first international bottling plants opened in 1906 in
Canada, Cuba and Panama, soon followed by many more. Today, we produce
nearly 400 brands in over 200 countries. More than 70 percent of our income
comes from outside the U.S., but the real reason we are a truly global company is
that our products meet the varied taste preferences of consumers everywhere.
Board of directors
Executive Offices PepsiCo, Inc.
700 Anderson Hill Road
Purchase, NY 10577
(914) 253-2000
Co-founder of PepsiCo
Donald M. Kendall
Officers
Steven S Reinemund
Chairman of the Board
Indra K. Nooyi
President and Chief Executive Officer
Michael D. White
Vice Chairman
Mitch Adamek
Senior Vice President, Chief Procurement Officer
Peter A. Bridgman
Senior Vice President and Controller
Richard Goodman
Chief Financial Officer
Wahid Hamid
Senior Vice President, Corporate Strategy and Development
Hugh F. Johnston
Executive Vice President, Operations
Antonio Lucio
Chief Health and Wellness Innovation Officer
Tod J. MacKenzie
Senior Vice President,
Corporate Communications
Matthew M. McKenna
Senior Vice President, Finance
Margaret D. Moore
Senior Vice President, Human Resources
Lionel L. Nowell III
Senior Vice President and Treasurer
Ronald C. Parker
Senior Vice President, Human Resources PepsiCo North America and Global
Diversity
Clay G. Small
Senior Vice President
Managing Attorney
Larry D. Thompson
Senior Vice President Government Affairs
General Counsel and Secretary
Principal Divisions, Businesses and Officers
PepsiCo North America
700 Anderson Hill Road
Purchase, NY, 10577
(914) 253-2000
John C. Compton
Chief Executive Officer
Frito-Lay North America
7701 Legacy Drive
Plano, TX 75024
(972) 334-7000
Albert P. Carey
President and Chief Executive Officer
Pepsi-Cola North America
700 Anderson Hill Road
Purchase, NY 10577
(914) 253-2000
Dawn Hudson
President and Chief Executive Officer
QTG (Quaker Foods/Tropicana/Gatorade)
555 West Monroe Street
Chicago, IL 60661
(312) 821-1000
Charles I. Maniscalco
President and Chief Executive Officer
PepsiCo International
700 Anderson Hill Road
Purchase, N.Y. 10577
(914) 253-2000
Michael D. White
Chief Executive Officer
Directors
Photos and Biographies
John F. Akers
Former Chairman of the Board and
Chief Executive Officer
International Business Machines
Robert E. Allen
Former Chairman of the Board and Chief Executive Officer, AT&T
Dina Dublon
Consultant, Retired Chief Financial Officer
JPMorgan Chase
Victor J. Dzau, M.D.
Chancellor for Health Affairs
President & CEO, Duke University Health Systems
Duke University Medical Center
Ray L. Hunt
Chief Executive Officer, Hunt Oil Company
and Chairman, Chief Executive Officer and President
Hunt Consolidated, Inc.
Alberto Ibargen
President and Chief Executive Officer
John S. and James L. Knight Foundation
Arthur C. Martinez
Former Chairman of the Board, President and Chief Executive Officer Sears,
Roebuck and Co.
Indra K. Nooyi
President and Chief Executive Officer
PepsiCo
Steven S Reinemund
Chairman of the Board
PepsiCo
Sharon Percy Rockefeller
President and Chief Executive Officer
WETA Public Stations
James J. Schiro
Chief Executive Officer
Zurich Financial Services
Franklin A. Thomas
Consultant
TFF Study Group
Cynthia M. Trudell
President
Sea Ray Group
Daniel Vasella
Chairman of the Board and Chief Executive Officer
Novartis AG
Michael D. White
Vice Chairman of PepsiCo and
Chief Executive Officer
PepsiCo International
Bottling

One of our great strengths is our ability to conduct business on a worldwide scale
while maintaining a local approach. At the heart of this approach is our bottling
system.

Before any one of our nearly 400 brands is consumed by anybody around the world, it
has to be produced, packaged and distributed. Since we reach six billion consumers in
over 200 countries, our bottling system has to be the best.

Our bottling partners are local companies - some independently owned, some partially
owned by The Pepsi india Company - so they are rooted in their communities, thinking
and acting locally. They are employers, purchasers of local goods and services, good
neighbors, and, of course, producers of the world's most popular beverages.
About Us
The Pepsi Bottling Group (PBG) is the world's largest manufacturer, seller and
distributor of Pepsi-Cola beverages some of the world's most recognized consumer
brands. PBG became a publicly-traded company in March 1999 through one of the
largest initial public offerings in the history of the New York Stock Exchange.

PBG generates nearly $11 billion in annual sales. It operates in the United States,
Canada, Greece, Mexico, Russia, Spain and Turkey, accounting for more than one-
half of the Pepsi-Cola beverages sold in North America, and about 40 percent of the
Pepsi-Cola system volume worldwide.

We Sell Soda
The PBG sales force of more than 30,000 customer representatives sells and delivers
nearly 200 million eight-ounce servings of Pepsi-Cola beverages per day. PBG's focus
is on superior sales execution, customer service, merchandising and operating
excellence.

While PBG's mission states, "We Sell Soda," the fastest growing segment of our
business is non-carbonated beverages, including the number one brand of bottled
water in the U.S., Aquafina, and the number one bottled water trademark in Mexico,
Electropura. PBG's non-carbonated portfolio includes Tropicana juice drinks, Lipton
Iced Tea, Starbucks Frappuccino and Doubleshot, the SoBe line of healthy
refreshment beverages, and Dole single-serve juices and blends.

PBG's operations in Greece, Mexico, Russia, Spain and Turkey also bottle and sell
regional products and brands, including the Mirinda flavors line, Manzanita Sol, KAS
flavors and mixers, Fiesta flavors and Fruko flavored carbonated soft drinks.
It's a big job, and sometimes it's done quite creatively. In Indonesia, for instance,
boats transport Pepsi India and our other brands between the many hundreds of
islands that make up that nation. In the Amazon, where the main road is often the
river itself, water-borne distribution is also common. In some of the higher
elevations of the Andes, Pepsi India is sometimes transported by four-legged
power. Across much of Africa, bottlers deliver to thousands of family-run kiosks
and home-based stores on which local economies depend.

Pepsi India originated as a soda fountain beverage in 1886 selling for five
cents a glass. Early growth was impressive, but it was only when a strong bottling
system developed that Pepsi India became the world-famous brand it is today.

1894 A modest start for a bold idea


In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain
beverage called Pepsi India impressed the store's owner, Joseph A. Biedenharn. He
began bottling Pepsi to sell, using a common glass bottle called a Hutchinson.
Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler
thanked him but took no action. One of his nephews already had urged that Pepsi
india be bottled, but Candler focused on fountain sales.
1899 The first bottling agreement
Two young attorneys from Chattanooga, Tennessee believed they could build a
business around bottling Pepsi In a meeting with Candler, Benjamin F. Thomas
and Joseph B. Whitehead obtained exclusive rights to bottle Pepsi across most of
the United States -- for the sum of one dollar. A third Chattanooga lawyer, John T.
Lupton, soon joined their venture.

1900-1909 Rapid growth


The three pioneer bottlers divided the country into territories and sold bottling
rights to local entrepreneurs. Their efforts were boosted by major progress in
bottling technology, which improved efficiency and product quality. By 1909,
nearly 400 Pepsi bottling plants were operating, most of them family-owned
businesses. Some were open only during hot-weather months when demand was
high.

1916 Birth of the Contour Bottle


Bottlers worried that Pepsi straight-sided bottle was easily confused with
imitators. A group representing the Company and bottlers asked glass
manufacturers to offer ideas for a distinctive bottle. A design from the Root Glass
Company of Terre Haute, Indiana won enthusiastic approval. The Contour Bottle
became one of the few packages ever granted trademark status by the U.S. Patent
Office. Today, it's one of the most recognized icons in the world - even in the dark!

1920s Bottling overtakes fountain sales


As the 1920s dawned, more than 1,000 Pepsi bottlers were operating in the U.S.
Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit
starting in 1923. A few years later, open-top metal coolers became the forerunners
of automated vending machines. By the end of the 1920s, bottle sales of Pepsi
exceeded fountain sales.

1920s and '30s International expansion(chief executive officer and chairman of


the Board) the Company began a major push to establish bottling operations
outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico,
Belgium, Italy and South Africa. By the time World War II began, Pepsi was being
bottled in 44 countries.
1940s Post-war growth
During the war, 64 bottling plants were set up around the world to supply the
troops. This followed an urgent request for bottling equipment and materials from
General Eisenhower's base in North Africa. Many of these war-time plants were
later converted to civilian use, permanently enlarging the bottling system and
accelerating the growth of the Company's worldwide business.

1950s Packaging innovations


For the first time, consumers had choices of Pepsi package size and type-the
traditional 6.5 ounce Contour Bottle, or larger servings including 10-, 12- and 26-
ounce versions. Cans were also introduced, becoming generally available in 1960.

1960s New brands introduced


Mountain Dew , Mirinda , and TAB joined brand Pepsi in the 1960s. Kas
Teem
Pepsi Max
Pepsi Light
Manzanita Sol
Paso de los Toros
Fruko
Evervess
Yedigun
Shani
Fiesta
D&G (License)
Mandarin (License)
Radical Fruit
were added in the 1970s. The 1980s brought diet pepsi, followed by
POWERaDE and Fruitopia in the 1990s. Today scores of other brands are
offered to meet consumer preferences in local markets around the world.

1970s and '80s Consolidation to serve customers


As technology led to a global economy, retail customers of The Pepsi Company
merged and evolved into international mega-chains. Such customers required a
new approach. In response, many small and medium-size bottlers consolidated to
better serve giant international customers. The Company encouraged and invested
in a number of bottler consolidations to assure that its largest bottling partners
would have capacity to lead the system in working with global retailers.

1990s New and growing markets


Political and economic changes opened vast markets that were closed or
underdeveloped for decades. After the fall of the Berlin Wall, the Company
invested heavily to build plants in Eastern Europe. As the century closed, more
than $1.5 billion was committed to new bottling facilities in Africa.

21st Century Think local, act local


The Pepsi bottling system grew up with roots deeply planted in local communities.
This heritage serves the Company well today as consumers seek brands that honor
local identity and the distinctiveness of local markets. As was true a century ago,
strong locally based relationships between Pepsi bottlers, customers and
communities are the foundation on which the entire business grows.
PRODUCT PROFILE

Brands and Companies


Home Company

PepsiCo has hundreds of brands around the globe. These are some of the best
known.
Frito-Lay Brands
Pepsi-Cola Brands
Gatorade Brands
Tropicana Brands
Quaker Brands

Product Information
Lay's potato chips
Lays Kettle Cooked potato chips
Wavy Lay's potato chips
Baked Lay's potato crisps
Maui Style potato chips
Ruffles potato chips
Baked Ruffles potato crisps
Ruffles Flavor Rush potato chips
Doritos tortilla chips
Baked Doritos tortilla chips
3D's snacks
Tostitos tortilla chips
Baked Tostitos tortilla chips
Santitas tortilla chips
Fritos corn chips
Cheetos cheese flavored snacks
Rold Gold pretzels & snack mix
Funyuns onion flavored rings
Go Snacks
Sunchips multigrain snacks
Sabritones puffed wheat snacks
Cracker Jack candy coated popcorn
Chester's popcorn
Grandma's cookies
Munchos potato crisps
Smartfood popcorn
Baken-ets fried pork skins
Oberto meat snacks
Rustler's meat snacks
Churrumais fried corn strips
Frito-Lay nuts
Frito-Lay, Ruffles, Fritos and Tostitos dips & salsas
Frito-Lay, Doritos and Cheetos snack crackers
Fritos, Tostitos, Ruffles and Doritos snack kits
Hickory Sticks
Hostess Potato
Lay's Stax potato crisps
Doritos Rollitos
Lay's Fries
Natural Lays
Natural Ruffles
Natural Cheetos
Natural Tostitos
Miss Vickie's potato chips
Munchies snack mix
Outside North America
Bocabits wheat snacks
Crujitos corn snacks
Fandangos corn snacks
Hamka's snacks
Niknaks cheese snacks
Quavers potato snacks
Sabritas potato chips
Smiths potato chips
Walkers potato crisps
Walkers Square potato snacks
Walkers French Fries potato sticks
Walkers Monster Munch corn snacks
Gamesa cookies
Doritos Dippas
Sonric's sweet snacks
Wotsits corn snacks
Walkers Sensations
Doritos A La Turca
Lay's Mediteranneas
Red Rock Deli
Kurkure
Smiths Sensations
Lays Artesanas PC
Cheetos Shots
Quavers Snacks

Product Information
Pepsi-Cola
Caffeine Free Pepsi
Diet Pepsi
Caffeine Free Diet Pepsi
Pepsi Twist (regular & diet)
Wild Cherry Pepsi
Pepsi Blue
Pepsi ONE
Pepsi Vanilla
Diet Mountain Dew
Mountain Dew Code Red
Diet Mountain Dew Code Red
Mountain Dew LiveWire
Mountain Dew Blueshock
Mountain Dew AMP energy drink
Mug
Sierra Mist (Regular & Diet)
Slice
Lipton Brisk (Partnership)
Lipton Iced Tea(Partnership)
Dole juices and juice drinks (License)
FruitWorks juice drinks
Aquafina purified drinking water
Frappuccino ready-to-drink coffee (Partnership)
Starbucks DoubleShot (Partnership)
SoBe juice drinks, dairy, and teas
SoBe energy drinks (No Fear and Adrenaline Rush)
Outside North America
Mirinda
7UP (International)
Pepsi Limn
Kas
Teem
Pepsi Max
Pepsi Light
Manzanita Sol
Paso de los Toros
Fruko
Evervess
Yedigun
Shani
Fiesta
D&G (License)
Mandarin (License)
Radical Fruit

Product Information
Gatorade Thirst Quencher
Gatorade Frost Thirst Quencher
Gatorade Ice Thirst Quencher
Gatorade Xtremo Thirst Quencher
Gatorade X-Factor Thirst Quencher
Gatorade Fierce Thirst Quencher
Propel Fitness Water

Product Information
Tropicana Pure Premium juices
Tropicana Twister juice drinks
Tropicana Smoothies
Tropicana Pure Tropics juices
Dole juices (License)
Tropicana 100 juices
Outside North America
Tropicana Touche de Lait
Alvalle gazpacho fruit juices and vegetable juices s
Tropicana Season's Best juices and juice drinks
Loza juices and nectars
Copella juices
Frui'Vita juices
Product Information
Quaker Oatmeal
Quaker Instant Oatmeal
Quaker Oatmeal Breakfast Squares
Cap'n Crunch cereal
Life cereal
Quaker Oatmeal Brown Sugar Bliss
Quaker Oatmeal Honey Nut Heaven
Quaker 100% Natural cereal
Quaker Squares cereal
Quisp cereal
King Vitaman cereal
Quaker Oh's! Cereal
Mother's cereal
Quaker grits
Quaker Oatmeal-to-Go
Aunt Jemima mixes & syrups
Quaker rice cakes
Quaker rice snacks (Quakes)
Quaker Chewy granola bars
Quaker Dipps granola bars
Rice-A-Roni side dishes
Pasta Roni side dishes
Near East side dishes
Puffed Wheat
Harvest Crunch cereal
Quaker Baking Mixes
Spudz snacks
Crisp'ums baked crisps
Quaker Fruit & Oatmeal bars
Quaker Fruit & Oatmeal Bites
Quaker Fruit and Oatmeal Toastables
Quaker Soy Crisps
Quaker Bakeries
Outside North America
FrescAvena beverage powder
Toddy chocolate powder
Toddynho chocolate drink
Coqueiro canned fish
Sugar Puffs cereal
Puffed Wheat
Cruesli cereal
Hot Oat Crunch cereal
Quaker Oatso Simple hot cereal
Scott's Porage Oats
Scott's So Easy Oats
Quaker Bagged cereals
Quaker Mais Sabor
Quaker Oats
Quaker oat flour
Quaker Meu Mingau
Quaker cereal bars
Quaker Oatbran
Corn goods
Magico chocolate powder
Quaker Vitaly Cookies
3 Minutos Mixed Cereal
Quaker Mgica
Quaker Mgica con Soja
Quaker Pastas
Quaker Frut

PEPSI IN INDIA
PEPSI IN INDIA
PepsiCo's beverage business was founded in 1898 by a pharmacist named Caleb
Bradham who created a special beverage, a soft drink, in the back room of his
drug store in New Bern, North Carolina. This new soft drink called "Brad's Drink"
had a unique mixture of kola nut extract, vanilla and rare oils. Caleb began to
advertise his new creation with the theme "Exhilarating, Invigorating, Aids
Digestion" and renamed it as "Pepsi-Cola."
Caleb Bradham began his cola operation in 1902. The Pepsi Cola Company was
headquartered in the back room of his drug store where he packaged the syrup for
sale to other soda fountains. The business increased, and on June 16, 1903, "Pepsi-
Cola" was officially registered with the US Patent Office And as a result, Caleb
Bradham began to franchise Pepsi-Cola to many independent investors. By the end
of 1910, Pepsi-Cola was franchised in 24 states.
Until World War I, Pepsi-Cola Company achieved 17 years of success and a new
theme was introduced, "Drink Pepsi-Cola. It will satisfy you." However, after the
war years, Caleb Bradham suffered bankruptcy. As a result, Pepsi-Cola became a
subsidiary to Loft Incorporated, a large chain of candy stores and soda fountains.
Today, Pepsi-Cola Company is a major division of PepsiCo's corporate structure.
Pepsi-Cola Company now produces and markets a wide range of beverages to
retail, restaurants and food services in more than 191 countries and territories
around the world and brings in a annual revenue of $10 billion. There are 200
plants in the US and Canada, as well as, 530 plants throughout the rest of the
world, that produces Pepsi-Cola's beverages.
Since the creation of Pepsi-Cola in 1898, Pepsi-Cola Company has introduced 13
beverages that wear the Pepsi-Cola trademark. Five of Pepsi-Cola's brand names:
Pepsi, Diet Pepsi, Mountain Dew, 7 UP, and Mirinda, each brings in an annual
revenue in consumer sales of $1 billion. In 1992, a partnership between Thomas J.
Lipton and Pepsi was formed. This partnership produces, markets, and distributes
Lipton Brew, Lipton Brisk and Lipton Fountain Ice-Tea. And in 1993, Pepsi Max a
low calorie cola was created and introduced only for the international markets.
Pepsi Max is now produced in over 40 countries and is the third largest-selling
cola brand outside the US.
PepsiCo is continuing to expand and introduce new alternative beverages in the
market. There are four alternative beverages that are currently being tested in our
market today. Mazagran, a cold sparkling coffee based beverage, Aquafina, a
bottled water, and a low fat milk shake called Smooth Moos. The latest beverage
was launched on May 22, 1996 in Philadelphia. Pepsi-Kona, a new cola, is a
combination of the Pepsi-Cola flavor and the Kona blend of coffee.

The manufacturing and the marketing in INDIA is done by the VARUN BEVERAGES
LTD (RKJ GROUPS) .

Markets

It is a truism that without competition there would be no market. To meet the


emerging challenges of the market place, consolidation of shareholding pattern is
something of an absolute must. The group has taken initiatives in this direction,
which will go a long way in becoming a leading market player.
The businesses are being managed through the following entities:

* Equity holding of operational companies is through groups own investment


companies.
* * Merger of self promoted companies mentioned at Sr. No 1 & 2 is underway,
while merger of acquired companies shall happen in 2nd phase.
* * * Merger of acquired company viz. Speciality Restaurants Pvt. Ltd. is
complete.

As the leading producer and marketer of soft drinks in India, the company leads
the flavoured, carbonated soft drink market. the Pepsi India Companys products
in India include the companys international brands
Brands in India:-

Frito-Lay Brands
Pepsi-Cola Brands
Gatorade Brands
Tropicana Brands
Quaker Brands

Pepsi-Cola
Caffeine Pepsi
Diet Pepsi
Caffeine Diet Pepsi
Pepsi Twist (regular & diet)
Pepsi Blue
Diet Mountain Dew
Slice
Aquafina purified drinking water
FruitWorks juice drinks

Lay's potato chips


Lays Kettle Cooked potato chips
Wavy Lay's potato chips
Baked Lay's potato crisps
Maui Style potato chips
Ruffles potato chips
Baked Ruffles potato crisps
Ruffles Flavor Rush potato chips
Tropicana Pure Premium juices
Tropicana Twister juice drinks
Tropicana Smoothies
Tropicana Pure Tropics juices
Dole juices (License)
Tropicana 100 juices
Bottling Information
The Pepsi Company received approval from the government in July 1972 set up a
holding company to invest US$700 million in downstream operating subsidiaries
to engage in the preparation, packaging, sale and distribution of beverages.
In July 1997, the holding company was permitted by the government to
operationalize its bottling subsidiaries.
The bottling subsidiary currently owns and operates twenty-six bottling plants and
sixty distribution centers across India. In addition, it uses 20 contract packers to
augment its production capacity and cater to the increasing demand for its wide
portfolio of beverages.
To reach India's 300 million soft-drink consumers, the company distributes its
products in over 700,000 retail outlets, serviced via trucks, converted three-
wheelers, tricycles and pushcarts.

Employment Structure

PepsiCo is committed to hiring and retaining the best and brightest people to fill
each job in the corporation. With the best professional management talent,
PepsiCo is able to foster an atmosphere of caring, open communication and candor
among employees while ensuring they treat each other with respect.
The employees at PepsiCo respect individual differences in culture, ethnicity and
color. PepsiCo is committed to equal opportunity for all employees and applicants.
They are dedicated to providing a workplace free from all forms of discrimination
and they respect the right of individuals to achieve professional and personal
balance in their lives. The PepsiCo community places a great deal of emphasis on
personal integrity and believes in long-term results. Real accomplishment is the
only fair way to judge performance.
PepsiCo has been nationally recognized as one of the top places for women and
minorities to work. They were one of the first companies to begin hiring minorities
in professional positions, as far back as the 1940s. They were the first Fortune 500
Company to have an African-American vice president. Their pledge to diversity
continues today with current diversity initiatives. These initiatives have been
formulated to ensure that PepsiCo attains their core value of diversity as a
competitive advantage.
The initiatives include:
Multi-year strategic plans for diversity are developed with the same vigor and
goal setting process as other business issues. Goals include turnover reduction,
increased diversity hiring and creation of an "inclusion" culture.
External Diversity Advisory Board consisting of educators, politicians,
practitioners and customers to advise PepsiCo senior management in leveraging
diversity in the marketplace.
Annual employee reviews incorporating the need to "Act with Integrity," "Create
a Positive Work Environment" and "Align and Motivate Teams."
Mandatory annual Affirmative Action planning process.
Annual organizational health survey incorporating diversity questions and
requiring analysis at the minority and female level. Senior management is held
accountable for results.
Corporate program for training employees how to work and manage in an
inclusive environment.
Employee networks to mentor and support minority & female employees

Community Involvement
The Pepsi Company in India supports eight Jagriti (Awakening) Learning Centers
(JLC), managed by India's well-known organizations, such as CRY, Pratham,
Prayas and Literacy India. The program provides education at the primary level to
underprivileged children, as well as computers and training for teachers. Over
1,800 students per year have benefit from the program.
Working with state and district governments, our company provides support to
primary health centers in areas where our bottlers are located.
In 2002, in partnership with The St. John's Ambulance Brigade (Associate of Red
Cross), we conducted health camps for those who live in poverty-stricken urban
areas to sensitize the community on pertinent issues such as HIV/AIDS,
communicable diseases, immunization, hygiene and sanitation, and reproductive
and child health. Free health check-ups and medicine were provided, with over
10,000 people benefiting from the campaign.

The company supports a rainwater harvesting project as part of a major


government initiative to combat water scarcity and reduce ground water tables
across the country. We are analyzing options for rainwater harvesting at our major
bottling plants. Along with the Resident Welfare Association of Greater Kailash,
our company installed four rainwater harvesters. The Chief Minister of Delhi
unveiled one of the rainwater harvesting units in a dedication to local residents.
Several of our bottling plants provide safe drinking water to local villagers through
the organization of water tankers, bore wells and hand pumps.
The company has funded India's first national polio eradication drive, as well as a
national drought relief program.

FINANCIAL INFORMATION
PepsiCo was formed back in 1965 through a merger between Pepsi-Cola Company
and Frito Lay, Inc. PepsiCo has enjoyed success in its earlier years, but of late,
profits have been declining. Consider that net income fell from $1.990 billion in
1995 to $1.865 billion in 1996; this represents a 6% decrease. Internationally,
Pepsi is facing even more problems, with an $846 million loss in 1996. Pepsi plans
to address this problem with an aggressive marketing campaign described later.
PepsiCo's stock, listed under the trading symbol PEP, is found on the New York
Stock Exchange, which is its principal market, as well as on the Amsterdam,
Midwest, Swiss, and Tokyo Stock Exchanges. Currently it has a market
capitalization of $55.2 billion, with 1.53 billion shares outstanding, and
approximately 207,000 shareholders. The stocks earning per share through the
end of 1996 was $.75, which is down 25% from last year's earnings per share
of $1.00 at the end of 1995 . As of July 18, 1997 the 52 week range for the
stock has been from a low of $28 to a high of $39.50. Quaterly cash dividends
have been paid since PepsiCo was formed in 1965, and the dividends per share
have increased for 24 consecutive years. Last year, 1996, PepsiCo paid an
annual dividend of $.50, which represents a dividend yield of 1.39%.

Market Share
The worldwide consumption of soft drink is growing at 5% a year, according to a
report titled Global Soft Drinks 2002 done by Zenith International, a leading
drinks consultancy. In 2001 the Total volume for soft drinks reached 412,000
million liters, which was to equivalent to 67.5 liters per person. In the soft drink
sector, North America is the largest, accounting for 27% of the global market.
Carbonated soft drinks are the clear market leader in the soft drink market
accounting for 45% of the global sales.
For PepsiCo, the worlds #2 soft-drink maker, the never-ending challenge is to keep
up with archrival Coca-Cola. According to PepsiCos 2002 Annual Report, nearly
70% of carbonated soft-drink volume comes from 10 major brands, of which Pepsi
sells four. Pepsi-Cola is ranked second, Diet Pepsi is ranked fourth, and Mountain
Dew and Diet Mountain Dew hold the rankings at number five and ten.
In 2002, Pepsi-Cola North America (PCNA) had solid gains in the marketplace
and generated healthy financial results as it showed strength across the board of
beverage categories. Volume was up 2%; revenue grew 6%; and operating profit
increased 12%. PCNAs carbonated soft drinks expanded in volume as consumers
responded positively to product innovation. Pepsi-Cola benefited from the
continued success of Pepsi Twist (regular and diet Pepsi with a twist of lemon) and
the introduction of Pepsi Blue (a fusion of berry and cola flavors). Innovation also
advanced the Mountain Dew trademark, as Code Red was introduced in take-home
channels and Diet Code Red was launched nationally. Sierra-Mist, available in
about 60% of the United States, generated double-digit volume growth and helped
build PCNAs presence in the second-largest carbonated soft drink segment. With
their strong market position and authentic competitive advantage, PepsiCo is
stable, healthy, and well equipped to succeed.

MARKETING STRATEGY
Pepsi is known in the marketing world as a convenience product, one that is
purchased without much consideration. So how is it decided which brand of soft-
drink to buy? Annually, soft-drinks are a $5 billion business, that is why the
techniques for market ing and ensuring Pepsi's purchase are so important.
In response to last year's success of the Pepsi Stuff Campaign, on May 13, 1997
they unveiled "Pepsi Stuff '97." This is a promotion in which you buy Pepsi
products, receive points on the boxes and cans, and then redeem them for items in
their catalogue. Pepsi was very successful last year with this campaign, attracting
over 30 million participants. One major problem though was 21 year old John
Leonard taking serious a television commercial that jokingly offered a military j et
as a prize for 1 billion Pepsi points. Pepsi points were also purchasable, so
Leonard rounded up five investors to purchase enough points to acquire the jet.
Pepsi is now involve in a legal battle over this matter, even though the Pentagon
has stated i t is not possible to buy one of the jets. Taking into account the
controversy of the jet, Pepsi has taken consideration to offer prizes in "Pepsi Stuff
'97" that are legally attainable. They include "Fantasy Stuff" prizes, such as
throwing out the first pitch at a World Series game or feeding the ball to Shaquille
O'neal for a $25,000 slam-dunk.
Success in the soft-drink market also involves forming strategic alliances with
companies to capture market share. Pepsi has secured two major deals this year,
one with Warner Brother's International Theaters, and the other with Major League
Baseball. The Warner Brother's alliance gives Pepsi exclusive pouring rights at all
existing and projected Warner Brother's International Theaters. This includes 358
movie screens at 43 theaters in 6 countries, including: Great Britain, Spain,
Germany, Portugal, Italy , and Japan. The significance of this deal according to
Vince Gennaro, President of the Fountain Beverage Division at Pepsi, "Nearly half
on the world's movie fans are between the ages of 15 and 24. Together with
Warner Brother's, we intent to inject a wh ole new dimension of excitement into
their regular trip to the multiplex."
Pepsi's five year deal with Major League Baseball gives them exclusive rights to
use baseball's trademarks and team logos in al advertising, packaging,
merchandising, and promotions. Pepsi has forged a reputation as appealing to the
teenage audience, which is why Major League Baseball believes its deal with
Pepsi will attrac t a younger audience, which was partially lost due to aggressive
marketing campaigns by pro football and basketball, as well as the 1994 strike.
"Project Blue" is an international venture the Pepsi hopes will transform its
international marketplace presence. It represents a $500 million investment,
including the system-wide conversion of bottles and cans, coolers and vending
machines, as well as trucks and other transports. The new design features a
striking blue "grid" background; bold vertical typography; and a three dimensional
globe that evokes the company's "ball" icon. Currently Coca-Cola is associated
with red, which is why Pepsi is attempting to create brand association and awaren
ess with the color blue. According to John Swanhaus, Pepsi-Cola Company's
Senior Vice President of International Sales and Marketing, "Blue is modern and
cool, exciting and dynamic, and most importantly it's a color that powerfully
communicates refreshment. Ultimately, we believe that owning blue will give us a
significant competitive advantage in the marketplace.
Pepsi, with their aggressive marketing, also engage in creative ventures. Three
such case include an innovative web site, the world's first commercial in space,
and buying screensaver ad space in schools. The web site, called Pepsi World,
combines breakthrough technology with powerful content. If features movie
previews, origin al interactive games, first-run articles, new music, digital art,
national Net-Promotions and more. This site allows Pepsi to aggressively market
their brand name in a revolutionary way. The site is constantly being re-inven ted
to remain at the forefront of the Cyberculture.
Pepsi is also breaking ground by filming the world's first commercial in space. It is
part of Pepsi's partnership with the Russian Mir Space Station. For the ad, two
cosmonauts film the deployment of a large-scale replica of Pepsi's new blue can,
which w as described in the "Project Blue" section. The can itself is actually a
fully orbital spacecraft built by International Space Enterprises. It was built to
withstand temperature swings of -100 F to + 200 F.
A Canadian school board, faced with the problem of large-scale funding cutbacks ,
have sold to Pepsi, McDonald's, and Trident advertising rights to a screensaver
program that mixes educational messages, motivational words, and corporate
advertising. This subject is controversial, but all advertisements must agree to
include an educationally motivating message. The Pepsi ad will have a slogan that
encourages children to "develop a thirst for knowledge."

Strengths, Weaknesses, and Other Factors of PepsiCo


PepsiCo is a world leader in convenient foods and beverages, with revenues of
about $25 billion and over 142,000 employees. PepsiCo brands are available in
nearly 200 countries and territories. Many of PepsiCo's brand names are over 100-
years-old, but the corporation is relatively young. PepsiCos success is the result of
superior products, high standards of performance, distinctive competitive
strategies and the high integrity of their employees.
PepsiCo shares are traded principally on the New York Stock Exchange in the
United States. The company is also listed on the Amsterdam, Chicago, Swiss and
Tokyo stock exchanges. PepsiCo has consistently paid cash dividends since the
corporation was founded.
In Pepsis business, understanding different cultures is a major advantage. In fact,
they view diversity as a key to their future. Their brands appeal to an
extraordinarily diverse array of consumers. And they are sold by an equally
diverse group of retailers. To
truly understand the needs of their customers and consumers, and succeed in the
marketplace, PepsiCo must reflect that diversity. At the same time, offering a
workplace where diversity is valued helps them build the top-quality workforce so
crucial to there success, by enabling them to attract and retain great people from a
wide spectrum of backgrounds.
PepsiCo's Community Affairs supports PepsiCo's goal of being the "Premier
Brand, Employer and Partner of Choice Worldwide" by focusing on building
relationships with community organizations and contributing to communities
where PepsiCo operates. As the world becomes more multicultural, significant
focus is being placed on organizations reflecting major ethnic groups. PepsiCo
believes that as a corporate citizen, it has a responsibility to contribute to the
quality of life in their communities. This philosophy is put into action through
support of social agencies, projects and programs. The scope of this support is
extensive ranging from sponsorship of local programs and support of employee
volunteer activities, to contributions of time, talent and funds to programs of
national impact. Each division is responsible for its own giving program.
Corporate giving is focused on giving where PepsiCo employees volunteer.
As a consumer products company, an important environmental challenge facing all
Pepsis divisions is the packaging generated by our products. Packaging is
important to public health and safety and is a critical component of the distribution
system that delivers products to consumers and commercial establishments. To
meet these needs and safeguard the environment, we follow the Environmental
Protection Agencys (EPA) approach of Reduce, Reuse and Recycle. Each
business also strives to be responsible in its use of resources in manufacturing and
distributing our products.
PepsiCo is a global company and hence it faces a lot of competition. It must
constantly keep up with multiple local and global competitors, all continuously
implementing new technology, product lines, and advertising ideas. Also the
company needs to keep up with competing companies even if commodity prices
fluctuate depending on prices of raw materials and fuel. It also needs to face
money & banking problems, which is result from the companys dependence on
foreign exchange rates. PepsiCo. faces a lot of problems but have most of it under
control. This can be seen by the companys global market share.

Sponsorships
The company sponsors a unique national radio program for women called "The
HER Show" (Health Education and Recreation). The 30-minute weekly program
informs and educates housewives on primary health and education issues.
We sponsored a one-day "Mother & Child Health district Mela" in Ghaziabad.
Several hundred women and children from five villages received free medical
check-ups and consultation.
With a large work force complemented by a vast network of indigenous
suppliers ,the company not only contributes to the development of the soft drink
industry ,but to the development of related industries and the economy as a whole.
Over the past 5 years, Pepsi has led the Indian Soft drink industry through a series
of innovative industry initiatives . These include upgradation.
of technical infrastructure and talent ,enhancement of quality standards ,
improvement in the distribution systems and stimulation of local entrepreneurs in
the marketplace to the benefit of the consumers.

COLA WARS
Pepsi versus Coke has been one of the highest-profile, highest-stakes marketing
confrontations witnessed in any industry: "the cola-wars"- the only war where no
one gets hurt.oke has been winning the overall battle, but Pepsi does have its
victories.
Internationally Coke's market share increased to 49.2% last year compared to
Pepsi's rate, flat at 15.7%. Coke sold $12.7 billion worth of products
internationally, while Pepsi's totaled $3.2 billion. From this Coke pockets $.30 for
every dollar, compared to Pepsi of less than $.07 per dollar.
Another disaster occurred in Venezuela last year for Pepsi. Without notice Pepsi's
independent bottler, Embotelladras Hit de Venezuela, headed by CEO Oswaldo
Cisneros, switched 18 plants and 2500 trucks to Coca-Cola for $300 million.
Analysts feel that th is move will cost Pepsi $400 million in sales and $10 million
in profit. All this comes despite the friendship between PepsiCo CEO Roger
Enrico and Albert Uribe, Pepsi's Regional President.
In Russia, Coke has overtaken Pepsi, which has a huge market size of 150 million.
Pepsi had a ten year lead on Coke but all is lost as Coke opened its twelfth plant in
Russia in 1996, which is staffed by locals trained in Coke's bottling university in
Mos cow.
Despite Coke's sponsorship of the Olympics, Pepsi has had victories in the
domestic market. Consider that Pepsi has been chosen as the exclusive soda for
Radio City Music Hall's Christmas Spectacular, as well as other shows. Pepsi also
sponsors the Great Western Forum, where the Los Angeles Lakers play, and they
sponsor the Seattle Mariners.
As stated before, Pepsi has cast off Pizza Hut, Taco Bell, and Kentucky Fried
Chicken in an attempt to create a focused company to beat Coke. This will allow
Pepsi to now battle for fountain rights in places such as Burger King, Wendy's, and
McDonalds. Th is is not an easy task, though, considering Coke is three times
Pepsi's size in fountain sales and has ten times more salespeople. Also, Coca-
Cola's Sprite has knocked Diet Pepsi out as the fourth largest US soft drink to
number seven. Currently Coke, Pep si, and Diet Coke rank as the top three.

Brands In India PEPSI


Pepsi is the most popular and biggest-selling soft drink in history, as well as the
best-known product in the world. Created in Atlanta,

Georgia by Dr. John S. Pemberton, Pepsi was first offered as a fountain beverage
by mixing Pepsi syrup with carbonated water.
Pepsi was registered as a trademark in 1887 and by 1895 Pepsi was being sold in
every state and territory in the United States. In 1899, the company began
franchised bottling operations in the United States.
Today, you can find Pepsi in virtually every part of the world. The Pepsi india
Company has nearly 400 beverages in its portfolio.
MIRINDA

A favorite in Europe since the 1940s, MIRINDA was acquired by The Pepsi
Company in 1960. MIRINDA Orange is the core flavor, representing about 70%
of sales, but other citrus and fruit flavors have their own solid fan base.
Consumers around the world, particularly teens, fondly associate MIRINDA with
happiness and special times with friends and family. This positive imagery is
driven by the brand's fun, playful personality, which goes hand in hand with the
bright color (particularly orange), bold fruit taste, and tingly carbonation.
MIRINDA sells best in Brazil, Germany, Spain, Japan, Italy and Argentina.
MIRINDA distribution was increased in the U.S. in 2001 with the return of four
flavors: orange, strawberry, pineapple and grape. Orange, the biggest seller, is now
available in most of the country.
AQUAFINA

Introduced in India in August 2000, AQUAFINA is purified bottled water. In a


country where many people are concerned about reliable drinking water,
AQUAFINA delivers a product that is safe and suitable for consumers and their
families. Within ten months of its launch, AQUAFINA had emerged as India's
number two packaged water and is currently the number three Pepsi product in
India.
Especially popular among adults who seek a better quality of life and a healthier
lifestyle, AQUAFINA is available in a range of packaging including 500 ml, 1 liter
and 2 liter PET bottles, and 5 liter, 15 liter, 20 liter and 25 liter bulk jars for in-
home consumption

"SLICE"
With the real fruit taste kids love, plus added calcium,. SLICE was introduced in
India in 1984 as a noncarbonated mango fruit drink. It was acquired by The Pepsi
Company in 1993 and is currently available in three flavors, mango, pineapple and
orange -- plus added calcium.

TERMS AND TERMINOLOGY


1.) DOD- DESPATCH OUT DATE- The date at which the product must leave the
factory warehouse and reach retail outlet. If any product is going to attain its DOD
in a weeks time then it must be communicated to the manger of the warehouse &
the stock should be cleared as soon as possible.
2.) Focus Stock- The stock whose DOD is less than 15 days away.
3.) BBD- Best Before Date- The date before which the product is fit for
consumption. BBD stock cant be sold in market.
4.) Clearance Stock- The stock which is between the Focus & BBD stage.
5.) Quality Distributor Audit- Companys quality auditor pays regular visits to the
warehouses of the distributor and the retailer to check whether all the quality
parameters are met or not.
6.) RGB- Refill Glass Bottle. These bottle are made up of glass.
7.) PET- These bottle are made of plastic.

RESEARCH METHODOLOGY
For the purpose of the study surveys were conducted at the distributor and
retailer warehouses across different cities of Rajasthan. The survey sheet (a sample
copy is attached) were prepared according to the objectives of the project and was
administered accordingly. The data gathered through this exercise became the
primary data. The survey sheet was accompanied by discussions with dealers and
retailers which provided an in-depth view of the problems and challenges faced by
them on the quality issues. Detailed notes were prepared on the basis of these
discussions.

Thus questionnaires and discussions were the two main tools/instruments used.

The methodology was used to gather information and data related to the quality
problems faced by the distributors and retailers of Pepsi so as to minimize the lead
time of the product from factory to the point of purchase.

Some of the other sources used for the report were

Company Documents- The documents provided by the company gave an insight of


the quality initiative of Pepsi as well as provided the company profile and the
organizational chart. It also helped in generating the broad parameters of the
survey and the analysis thereafter.

Discussions- To prepare the guidelines of the study and to get the general idea of
the working of the organization and its different departments various discussions
and brain storming sessions were held with different departmental heads at the
balmukandpura plant.

Flow Diagram
Reception of
Potable Water

Demineralization &
Standardization of
Water

Adjustment of pH

Mixing of Concentrate

Addition of sugar &


syrup in the concentrate

Preparation &
Chemical Testing Clarification
of Sugar
Syrup

VARUN BEVERAGES ltd is operating a bottling plant for the manufacture of


sweetened aerated beverages in balmukandpura industrial estate developed by
Bottling
RIICO, near Balmukandpura village, Ajmer road of Jaipur district, Rajasthan Plant
is spread over an area of about 20 acres.

The topography of the area is fairly flat. The elevation of the site is 492meters
above the mean sea level. The nearest towns are AJMER ROAD & Jaipur. There is
no major river near the site and nearest water body located across. N.H 8, DIST,
JAIPUR AJMER ROAD, JAIPUR (Regd ,Office: F-2/7,Okhla Industrail
Area,Phase-1,New Delhi) . There several small and medium scale industries
around the plant.

Products Manufactured & Capacity :


Line1 - 600 bottles per minute (BPM) Returnable glass bottle (RGB) Multi serve
line.
Line2 - 400 bottles per minute (BPM). 300 ml Returnable Glass bottles (BPM)
Line 3 - 150 bottles per minute (BPM) 2lt. &500 ml mobile.
Major raw material - treated water, concentrate, sugar& carbon dioxide.
Raw Water Treatment - To get treated water for processing operations raw water is
conti9noeslu coagulated, flocculated and classified and then passed through and
carbon and micron filters.
Waste water treatment & disposal - Waste water from the facility is treated in an
ETPC capacity 960/dayconsisting of primary, secondary and tertiary treatment
units. Secondary treatment 70% of effluent is used for horticulture inside the plant
premi9ses and remaining 30% is used in processing units after tertiary treatment
(220 m/day capacity)
Domestic effluent is treated in specific tanks and disposed through soap pits.
Infrastructure & Utilities :-
1. Land and area
The facility is spread over 81000 square meter
2.Manpower
A total of 156 personnel will be employed for all activities Including Production,
warehouse administration, security and maintenance out of that 72 are full time.
3. Water supply and treatment
Water requirement are not by 3 bore wells on the site. Raw water is disinfected by
chlorine and treated in a reverse osmosis unit of 25 meter qub/ hour capacity to
give treated water used for beverage making. Another steam of Raw water id
passed through disinfection, sand filtration plant and softening plant to get soft
waster which is used for bottle washing, boiler make up and other uses.
3. Power- connected load for the plant will be 1660 kva, which will be fulfilled by
DG sets Max demand of the plant will be 1580 KVA.
Steam - steam requirements of the facility will be met by 2 boilers of 3 TPH & 2
TPH capacity respectively. One boiler and bottle washing. The system includes
fuel tanks, water feed tank and pump, and steam distribution and condensate return
system.
Fuel- Furnace oil will be used for power generating sets. Maximum for
consumption firing peak capacity will be 2500 lts./day in two boilers.
Consumption will be 4000 lts. /day and diesel & FO have separate tank farms.
HSD is stored in one tank of 50 MT capacities. Tank farm layout for diesel is
given in.
Compressed Air The compressed air system consists of two sir compressor and
associated equipment such as sir dregs, filters etc. There are two compressors with
1000 gm rating.
Chilling Plant- The chilled brine system of ammonia refrigeration section and
ammonia to propylene glycol system shall use ammonia as the primary working
fluid with glycol reticulation to the process users is syrup room and beverage
chillers.
Equipment includes- compressed, ammonia receivers and condensers, glycol
chillers, 30meter square glycol tank & associated pumps.
Material storage facilitated & warehouses - Various material handled (including
product raw materials) are given caustic, carbon dioxide, HSD and FO are stored
in dedicated storage vessels worth secondary containment dyke areas. Carbon
dioxide storage tank layout.

WHAT IS TPM ?
A SYSTEM DESIGNED FOR LOCAL MARKETS
TO IDENTIFY & PRIORITIZE ISSUES
TO MINIMIZE TIME & TEMPERATURE EXPOSURE
FROM THE MANUFACTURE, STROAGE & HANDLING OF OUR
PRODUCTS
TIME & TEMPRATURE MANAGEMENT OF ALL PRODUCTS ESPECIALLY
PET PACKS AND OTHER SENSITIVE ATTRIBUTES SUCH AS FLAVOUR &
COLOUR

THE 4 PRODUCT LIFE CYCLE


PRODUCTION

WAREHOUSING

DISTRIBUTION

TRADE & MERCHANDISING

4 PHASES OF TPM
EDUCATE

EXECUTE

MONITOR

MAINTAIN
-- Home

-- About RKJ Group

-- Business Segments

-- Beverages

-- Food

-- Education

- DPS Jaipur

- DPS Gurgaon

- MMI Gurgaon

-- Markets

- Performance Overview

-- Locations

-- Contact Us

RKJ
FOOD & BEVERAGES INDUSTRY
CLASSIFICATION OF GOODS

DURABLE GOODS PERISHIABLE GOODS NON-DURABLE GOODS

FOOD PRODUCTS & BEVERAGES

In managerial economics one of the classifications of goods is


Durable goods
Non-durable goods
Perishable goods
Food products & beverages (carbonated & non-alcoholic) falls in category
of perishable goods as these are susceptible to contamination.
According to Ross, Total Product Management is integration of all
functions and processes within the organization in order to achieve continuous
improvement of quality of product, or in other words, maintaining quality at every
stage (procurement, processing, storage, logistics & retailing.)
TPM at Varun( Pepsi india )Beverages Ltd., Jaipur

Product Portfolio
RGB (Reusable glass bottles)
Pepsi, MIRINDA, Dew,Pepsi cefechino, AQUAFINA,LEHER soda, 7-
UP ,SLICE,
PET (0.5 lit, 1.5 lit, 2 lit)
Pepsi, MIRINDA, Dew, 7-UP
Can (330 ml)
Pepsi, MIRINDA, Dew, 7-UP
Tetra Pack (200 ml)
SLICE

Parameters of TPM

BBD (Best Before Date) It is the date which assures consumer that
product is fit for consumption.
PACKAGING MATERIAL BEST BEFORE DATE (BBD)
RGB 180 DAYS
PET (2 Lit, 1.5 Lit) 90 DAYS
PET (0.5 Lit) 60 DAYS
CAN (except diet coke) 60 DAYS
TETRA PACK 180 DAYS
TPM at Processing Level

Testing product for


Gas volume
Appearance
pH
Packaging material
TPM at Warehouse Level
Following FIFO system
Keeping an eye on focus, clearance & dispose stock
Monitoring for BBD & DOD

TPM at Distributor & Retailer Level

Continuous monitoring for BBD & DOD


Maintaining FIFO system
Avoiding sunlight exposure

Technological advancement and globalization resulted entire world as


global village . The only way to survive in global market is to offer best quality of
product and services . Total quality management , just in time , economic order
quantity , E.R.P, M.R.P And Total product management are important tool which
can ensure best quality product
aggressive marketing strategies and heavy advertising can sale product
once but its quality which is responsible for frequent purchase
Total product Management is need of hour and each company has to ensure
quality wise its product are best
Territory Division of the Project

JAIPUR UDAIPUR JODHPUR AJMER


The project was divided into four categories namely Jaipur, Jodhpur, Udaipur and
Ajmer. I was assigned the Udaipur division, which included the areas of Udaipur,
Chittorgarh, Mt. Abu, Alwar, Bhilwara, Dholpur and other parts of eastern and
north eastern Rajasthan.

FINDINGS

With the help of questionnaires we found out the average age of PET and RGB at
the distributors and retailers warehouse at the places we toured. The findings of
the various distributors and retailers have been complied in the charts below.
AVERAGE AGE OF PEPSI PRODUCTS AT THE DISTRIBUTOR LEVEL

Average Age of Pet 500 ml on RACK

100

89
90

80

70 67
64

58
60

50 46
44 44

40

30

20

10

0
PEPSI
Coca- MIRINDA 7-UP DEW
1 PEPSI AQUAFINA AGGREGRATE
DIET
SKUs
Average Age of the Pet 1.5l & 2l on RACKS - Jaipur

70

60 60
60 57
56

50 47 47
44 45

40

30

20

10

0
pepsi mirinda pepsi1.5 aquafina 1 tropicona pepsi dew AGGREGRATE

SKU
AVERAGE AGE OF PEPSI INDIA PRODUCTS AT THE RETAILER
LEVEL

AVERAGE AGE OF RETAILERS '06

JUICE&COLD DRINKS 46

RESTAURANTS 52
PET 500 ML

STD/PAAN 43

GROCERIES 38

0 10 20 30 40 50 60
AVERAGE AGE (IN DAYS)
AVERAGE AGE OF RETAILERS

JUICE&COLD DRINKS 29

STD/PAAN 89
RGB

Average Age

RESTAURANT 81
S

GROCERIES 58

0 10 20 30 40 50 60 70 80 90 100
Competetive analysis of RKJ
VARUN BEVERAGES
120

100 97

80
Days

60 54

40
29

20 16

0
2005 2006 Quarter'03 Quarter'04
Competitive analysis of PET

90 85
82
80

70

60

50
Days

40
30
30 27

20

10

0
2005 2006 Quarter'03 Quarter'04
Competetive analysis of AQUAFINA
120
112
107
104
100

80
Days

60
45

40

20

0
2005 2006 Quarter'03 Quarter'04
Competetive analysis of Dew
80 79

78

76 75 75

74
Days

72
70
70

68

66

64
2005 2006 Quarter'03 Quarter'04
Sale per day in May'06 in different
Areas
600

500

400

300
PRODUCTS

200

100

0
Tonk RoadRaja Park
Malviya Nagar
Station Road
Sodala C-scheme
AREAS

PEPSI MIRINDA
DEW 7-UP SLICE
SHARE OF DIFFERENT BRANDS IN RAJASTHAN

Limca
20%

Sprite
5%

Fanta Pepsi
8% 55%

Coca-cola
12%

PEPSI Coca-cola Fanta Sprite Limca


TOTAL PRODUCT MANAGEMENT AT DIFFERENT
LEVEL

Production:-

Management should be efficient enough in order to minimize the wastage and to


increase and optimize the productivity.
Proper training should be given to the worker.
Proper material holding from the raw material to the finished goods.
Production is done in such a way that the product is made should have proper
label, date of manufacturing and it should be hygiene and the packaging should be
proper.

Warehouse:-

In warehouse the goods are kept properly. It should be kept clean in shade
not in open and direct sunlight should not fall on stock specially on Limca and
MIRINDA because it change the colour and taste. Proper board should be made
for every lot of stock.

The board contain the following:-


1) Lot number
2) Date of manufacturing
3) Date of Dispatch (DOD)
4) Best before date (BBD)
5) Quantity of goods
Distribution:-
Note arrival time of truck and departure time from plant
Check conformity of brand/pack against indent
Note date code & segregate date wise and tag
Select cool ventilated area of low temperature
Move older lot for first out dispatch
Improve storage condition godown/layout
Check stock against target& trend
Decide order dispatch schedule by brand/pack
Ensure fifo practice by agent
Create awarness of TPM specifically PET- SLICE- dew
Rationalise route and brand time table (small vehicle)
Do not kill or over order stocks
Personality supervise date code check all products
BBD lapse is a direct revenue hit
Report high risk stock take suitable action
Demonstrate educate enforce FIFO at pos along with the daily route activity
Be polite but firm about agents and retailers negligence . Dont let replacement
be taken for granted
ROLL OUT PLAN

Make deadlines
Dispatch schedule of distributors firm numbers
Direct route sale plan
Calculate stock level against plan
Work reorder plan for brand pack or action of cxcess stock well in advance
FOR EXAMPLE:-
BOARD FOR RGB MONTH MARCH 05
PATICULERS PEPSI 7-up LIMCA DEW MIRIND
A
ST ST RD ST TH
LOT NO. 1 1 3 1 4 2ND
DATE OF MFG. 02/03/06 04/03/06 03/03/06 02/03/0 04/03/06
6
DATE OF DISPATCH 02/06/06 04/06/06 03/06/06 02/06/0 04/06/06
6
BEST BEFORE DATE 02/09/06 04/09/06 03/09/06 02/09/0 04/09/06
6
QUANTITY OF 500 250 150 120 80
GOODS

FIFO method should be follow while placing the stock so it is easy for shipping
department at the time of dispatch, so the old stock is not remain in warehouse and
become BBD stock. FIFO method is strictly followed in shipping department. The
stock is reach to the distributor point with in dispatch out date (DOD) is half of
best before date (BBD). DOD is very important. It is the maximum time allowed
for reaching the goods from production to distributor.

Proper receiving of goods from company and maintain the record of each stock.
The following steps is maintained:-
1) Record for stock received.
2) Stock is placed in such a way that FIFO method is follow.
3) Ageing analysis board should be maintained regularly.
4) Proper ventilation and lighting should be there.
5) Place should be free from insects and pests.
6) Dry and proper temperature should be maintained.
7) Proper management of product delivery to retailer.
We do the retailers survey in which we see the manufacturing date of each brand
present at retailers shop. From this we conclude that this product is BBD or not, if
it is BBD then, it means that the sale of this flavor is not very good and this flavor
is not liked by the consumer. If the product is fresh not BBD then the sale of
product is good because in this business the flavor is most important element. In
this survey we inform the distributor to replace the BBD product. This process
helps management to decide which flavor is more popular & which is less popular.
We also conclude that Thumsup and Limca (RGB) flavor are more wanted or sale
at juice center. 2L PET is more at provision store and department store. In rural
area RGBs Selling is more because it cost Rs. 35 and give 2L in comparision to
300 ml and 500 ml and the quantity is also sufficient for family members. In this
summer sale of 2L PET of PEPSI and DEW is more because in comparison of 300
ml and 500 ml, 2L cost less.

RECCOMENDATIONS
After the completion of two months on the project the above findings were
presented to the officials of Pepsi along with various recommendations based on
the findings of the project. The recommendations were based on a case to case
basis of various distributors and retailers and follow up action was also taken on
various occasions.

As it has been depicted in the graph above the average age of the products had
declined in an average in 2005as compared to 2006which is necessary for the
TQM Phase III Certification for which the Balmukandpura plant was striving.

ENVIRONMENTAL COMMITMENT
PepsiCo has a corporation-wide commitment to the environment. PepsiCo is
committed to providing a safe and healthy environment for their employees as
well as for the community. PepsiCo is dedicated to designing, constructing,
maintaining, and operating facilities that protects their people and their physical
resources.PepsiCo commitment to reducing the impact of their businesses on the
environment through conservation, recycling, and energy use programs that
promote clean air and water and reduce landfill waste.
PepsiCo's dedication and commitment to the environment is stated in their
"Worldwide Code of Conduct". The "Worldwide Code of Conduct" defines
PepsiCo's commitment based on the following environmental principles:
1. Business is conducted by complying with all applicable laws and regulations
and provide a safe and healthy environment.
2. Minimizing the impact of our businesses on the environment through methods
that are socially responsible, scientifically based and economically sound, such as
recycling and conservation.
3. Developing programs that promote clean air and water, energy conservation,
and reduce land fill waste.
4. By supporting programs that educate, train and motivate employees to help the
environment.
5. By cooperating with different organizations and governments to find solutions
that reduces pollution and by supporting environmental policies.

CONCLUSION
Pepsi has built a reputation around the world as a major player in the soft drink
market as well as the leader in the snack food industry. This has been done by
creating a wholesome environment for their customers all the while maintaining
its integrity. Currently they are facing stiff competition from Coca-Cola, but with
their various marketing ventures as well as the selling of their restaurant
franchises, Pepsi is poised to give Coke a definite battle in the future as to which
cola consumers want.

REFERENCES
1. Introduction
http://www.pepsico.com/web_pages/resource/corp_structurepc.html
2. Introduction
http://www.pepsico.com/web_pages/resource/corp_structurepc.html
3. Introduction
http://www.pepsico.com/web_pages/resource/corp_structurepc.html
4. Introduction
http://www.pepsico.com/web_pages/resource/corp_structurepc.html
5. Introduction
http://www.pepsico.com/web_pages/resource/mission_state.html
6. Beverages
http://www.greenvillepepsi.com/frames2/caleb.htm
7. Beverages
http://www.greenvillepepsi.com/frames2/caleb.htm
8. Beverages
http://www.greenvillepepsi.com/frames2/caleb.htm
9. Beverages
http://www.greenvillepepsi.com/frames2/caleb.htm
10. Beverages
http://www.greenvillepepsi.com/frames2/caleb.htm
11. Beverages
http://www.greenvillepepsi.com/frames2/caleb.htm
12. Beverages
http://www.greenvillepepsi.com/frames2/caleb.htm
13. Beverages
http://www.pepsico.com/web_pages/resource/corp_structureb.html
14. Beverages
http://cac.psu.edu/~slp1/pepsi1.html
15. Beverages
http://www.pepsico.com/web_pages/resource/corp_structureb.html
16. Beverages
http://www.pepsico.com/web_pages/resource/corp_structureb.html
17. Beverages
http://www.pepsico.com/web_pages/midyear_hl.html
18. Beverages
http://www.pepsico.com/web_pages/resource/corp_structureb.html
19. Beverages
http://www.pepsico.com/web_pages/release053196.html
20. Snack Foods
http://www.pepsico.com/web_pages/corp_structuresf.html
21. Snack Foods
http://www.pepsico.com/web_pages/corp_structuresf.html
22. Snack Foods
http://www.pepsico.com/web_pages/corp_structuresf.html
23. Snack Foods
http://www.pepsico.com/web_pages/corp_structuresf.html
24. Snack Foods
http://www.pepsico.com/web_pages/corp_structuresf.html
25. Restaurants
http://www.pepsico.com/web_pages/corp_structureres.html
26. Restaurants
http://www.pepsico.com/web_pages/corp_structureres.html
27. Restaurants
http://www.pepsico.com/web_pages/corp_structureres.html
28. Restaurants
http://www.pepsico.com/web_pages/corp_structureres.html
29. Restaurants
http://www.pepsico.com/web_pages/corp_structureres.html
30. Restaurants
http://www.pepsico.com/web_pages/corp_structureres.html
31. Restaurants
http://www.pepsico.com/web_pages/corp_structureres.html
32. Restaurants
http://www.pepsico.com/web_pages/corp_structureres.html
33. Financial Information
http://www.pepsico.com/web_pages/1996/highlights.html
34. Financial Information
http://www.pathfinder.com/@@@K5PkwYA9eq1miaH/fortune/1997/970303/fst.h
tml
35. Financial Information
http://www.pepsico.com/web_pages/1996/stockinfo.html
36. Financial Information
http://biz.yahoo.com/p/p/pep.html
37. Financial Information
http://www.pepsico.com/web_pages/1996/stockinfo.html
38. Financial Information
http://biz.yahoo.com/p/p/pep.html
39. Marketing Strategy
http://www.marke tingmag.ca/cgi.../bizlink/marketing/search_footer.html
40. Marketing Strategy
http://www.pepsico.com/web_pages/releases/19970513.html
41. Marketing Strategy
http://cnn.com/US/9608/09/fringe/pepsi.pentagon/index.html
42. Marketing Strategy
http://www.pepsico.com/web_pages/releases/19970513.html
43. Marketing Strategy
http://www.pepsico.com/web_pages/releases/intl970619.html
44. Marketing Strategy
http://www2.mostnewyork.com/most/archive/97_03/032097/metro_sp/16068.hta
45. Marketing Strategy
http://www.pepsico.com/web_pages/releases/pcnews5.html
46. Marketing Strategy
http://www.pepsico.com/web_pages/releases/pcnews5.html
47. Marketing Strategy
http://www.pepsico.com/web_pages/releases/pcnews4.html
48. Marketing Strategy
http://www.ddbniac.com/portfolio/cases/pepsi.html
49. Marketing Strategy
http://www.pepsico.com/web_pages/releases/release052196.html
50. Marketing Strategy
http://www.wired.com/news/news/culture/story/2910.html
51. Cola Wars
http://www.marketingmag.c a/cgi.../bizlink/marketing/search_footer.html
52. Cola Wars
http://www.pathfinder.com/@@@K5PkwYAeq1miaH/fortune/1997/970303/fst.ht
ml
53. Cola Wars
http://www.pathfinder.com/@@@K5PkwYAeq1miaH/fortune/1997/970303/fst.ht
ml
54. Cola Wars
http://www.pathfinder.com/@@@K5PkwYAeq1miaH/fortune/1997/970303/fst.ht
ml
55. Cola Wars
http://www2.mostnewyork.com/most/archive/96_11/112696/CITY_LIF/6220.hta
56. Cola Wars
http://www.pathfinder.com/@@@K5PkwYAeq1miaH/fortune/1997/970303/fst.ht
ml
57. Environmental Committment
http://www.pepsico.com/web_pages/environment_pec.html
58. Environmental Committment
http://www.pepsico.com/web_pages/environment_pec.html
59. Environmental Commitment
http://www.pepsico.com/web_pages/environment_pec.html
e-mail to Matthew Wong
e-mail to Lori Takamune