PepsiCo Summer Internship Project

``
Summer Internship Project

On
“A study on sales promotion strategies of PepsiCo

products”
Submitted in partial fulfillment of PGDM program
2010-12
Submitted by
Shailendra Kumar Upadhyay
PGDM/18/050
Company Mentor Faculty Mentor

Mr. Niraj Singh Dr. Etinder Pal Singh
Customer Executive (CE) Professor
PepsiCo India Holding Pvt. Ltd. ASM, Dwarka
Sigra, Varanasi, UP
Apeejay School of Management

New Delhi
July 2011
1 Apeejay School of Management, Dwarka,

New Delhi
``

New Delhi
``
CERTIFICATE
(COLLEGE GUIDE)
This is to certify that the project work done on “A study on sales promotion
strategies of PepsiCo products“ Submitted to Apeejay School of
Management, Dwarka by Shailendra Kr Upadhyay in partial fulfillment of
the requirement for the award of PG Diploma in Business Management, is a
bonafide work carried out by him/her under my supervision and guidance.
This work has not been submitted anywhere else for any other
degree/diploma. The original work was carried out during 2nd may 2011 to
30th June 2011 in (PepsiCo India Holding Pvt. Ltd.)
Date: Dr. Etinder pal singh

Professor
(Academic mentor)
ASM, Dwarka
Apeejay School of Management

Sec-8, Institutional area, Dwarka
Seal/Stamp of the Organization New Delhi-110077

New Delhi
``
DECLARATION
I, the undersigned, hereby declare that Project Report entitled “A study on

sales promotion strategies of PepsiCo products” written and submitted by
me to Apeejay School of Management, Dwarka, New Delhi in partial
fulfillment of the requirements for the award of Post Graduate Diploma in
Management under the guidance of Dr. Etinder Pal Singh (Academic
Mentor) and Niraj singh(Corporate mentor) is my original work and the
conclusions drawn therein are based on the material collected by myself.
Date- Signature
Place
Shailendra kr Upadhyay
PGDM-1 A
PGDM/18/050

New Delhi
``
Acknowledgement
I am thankful to Dr. Etinder pal singh, Professor of Apeejay School of Management,

Dwarka who showers his ever graceful guidance by extending his cooperation in giving
an opportunity to do my summer project report on “A study on sales promotion strategies
of PepsiCo products”.
I take this opportunity to place on record my grateful thanks and sincere gratitude to Mr.
Niraj Singh(C E) PepsiCo India holding Pvt Ltd, Varanasi area, who has given me this
opportunity to conduct this project work in this organization. My study would not have
been completed if I had not been able to get the support and guidance of Mr. Rahul
Srivastava (ADC) and Mr. Manish Iyer (TDM) and other employees of the
organization.
I am also highly indebted to my esteemed guide Dr.Deepankar Chakrabarti (Dean of

ASM) whose continued and invaluable guidance can never be forgotten by me and
without whom, this study could not have got the present shape.
Lastly, I would express my grateful thanks to my family members and my friends who
inspired me to put in my best efforts for the preparation of the Project Report.
The project was undertaken under the guidance of PepsiCo India holdings pvt. Ltd. to
survey the market of Varanasi in order to know the sales promotion strategies by
company to distributors and the retailers and to recommend the company for more sales
promotions.

New Delhi
``
TABLE OF CONTENTS
CHAPRER-1 EXECUTIVE SUMMERY ……………………………………..8
CHAPTER-2 INDUSTRY INTRODUCTION………………………………9
 COMPANY PROFILE………………………………………………………….10
 COMPANY AT A GLANCE……………………………………………………11
 BRIFE HISTORY………………………………………………………………..12-13
 MILESTONE OF COMPANY…………………………………………………14-18
 LIST OF TAG LINE……………………………………………………………..19-21
 CHAIRMAN & CEO…………………………………………………………….22
 VISION & MISSION…………………………………………………………….23
 VALUE & PHILOSOPHY………………………………………………………24
 COMMUNITY……………………………………………………………………24
 CUSTOMER………………………………………………………………………24
 COMPETATIVE ANALYSIS……………………………………………………25-26
 SUSTAINABLE ADVANTAGES……………………………………………….27-28
 SWOT ANALYSIS………………………………………………………………..29-30
 ORGANISATIONAL STRUCTURE…………………………………………...32
 DISTRIBUTION CHANNAL…………………………………………………...33
 MANUFACTURING PROCESS……………………………………………….34

New Delhi
``
 BOTTLING PLANTS ……………………………………………………………35
CHAPTER-3 TOPIC INTRODUCTION
 SALES PROMOTION……………………………………………………………36-37
 SALES PROMOTION ORIANTATION………………………………………..38-41
 SALES PROMOTION STRATEGIES…………………………………………..43-44
 KINDS ……………………………………………………………………………...45
 SHORT TERM IMPACT OF SALES PROMOTION…………………………46
 LONG TERM IMPACT OF SALES PROMOTION…………………………..47
CHAPTER-4
 RESEARCH OBJECTIVES…………………………………………..48
 RESEARCH METHODOLOGY……………………………………..49
 PROBLEM DEFINITION
 TYPE OF RESEARCH DESIGN
 SAMPLE SIZE
 SOURCE OF DATA COLLECTION
 SAMPALING TECHNIQUES
CHAPTER-5

New Delhi
``
 DATA ANALYSIS AND INTERPRETATION…………………….50-65
 FINDIGS…………………………………………………………………66
CHAPTER-6
 CORPORATE LEARNING……………………………………………67
 LIMITATION…………………………………………………………….68
 CONCLUSION ………………………………………………………….69-
70
CHAPTER-7 RECOMONDATION…………………………………………71
CHAPTER-8 BIBILIOGRAPHY…………………………………………….72
CHAPTER-9 ANNEXURE …………………………………………………..73-

74
EXECUTIVE SUMMARY
PepsiCo is a world leader in a convenient food and beverages with revenues of more
than $45 billion and more than 1, 60, 000 employees. The company consists of Frito-lay
North America, PepsiCo Beverages North America, PepsiCo International and Quaker
Foods North America. PepsiCo brands are available in nearly 200 countries and

New Delhi
``
territories and generate sells and the retail level of about $85 billion. PepsiCo is the
world’s premier consumer products company focused on convenient foods and
beverages.
This project work entitled “A study on sales promotion strategies of PepsiCo

products”, was done to become familiar with the working of PepsiCo (PepsiCo India
Holding Private Limited) and to know the strategies used by PepsiCo in the sales
promotion. The important objectives of the project were to find out: what are the various
types of promotional strategies used in marketing, in which way the strategies are
implemented, what is the market share of the company, which promotional strategy is
used most, what is the impact of sales promotion during off season, how retailers react to
new sales promotions, what are the various tools that the company uses during sales
promotion, and which type of promotional offers retailers prefer etc.
The project is entirely based on my observations made during the two months spent at
PepsiCo India Holdings Pvt Ltd, Varanasi and visits to various markets of Varanasi.
Based on my learning and experience, I have made some suggestions to improve the sales
promotion activity and services.
Industry Introduction:

New Delhi
``
Beverage industry is one of the fast growing industries in India .it can be divided into two
sections i.e. carbonated and non-carbonated. The carbonated drinks that can be further
classified into cola, lemon orange, mango and apple segments.
Marketing includes all the activities like promotion, distribution, advertising etc. To
fulfill all the segments of consumers. Marketing is also to convert social needs into
profitable opportunities. So this topic provides all the essentials to theoretical knowledge
with practical knowledge and to inculcate the efficiency. It is also requirement for the
company to improve their service and product quality for achieving their ultimate goal.
As far as the soft drink market is concerned, it is facing the cut throat competition
because of the availability of a large number of indirect as well as direct competitors.
Single company offers the soft drink to the market in different taste and flavors. In this
industry entire range of flavors are produced by other competitors also.
More often it becomes impossible to differentiate between the same flavors of two
different brands, when served in plane container, range also. All these factors together
make the situation complicated. Besides both corresponding brands have the similar
price.

New Delhi
``
PepsiCo at a Glance
Type Public
Traded as NYSE:PEP
Industry Food & Beverage
Founded North Corolina US
Founder(s) Donald Kendall & Herman lay
Headquarters New York, US
Area served Worldwide
Key people Indra Nooyi (CEO)
Products 19 brands of PepsiCo
Revenue US$ 57838 billion(2010)
Operating income US$ 8332 billion(2010)
Net income US$ 6338 billion(2010)
Total Assets US$ 68153 billion(2010)
Total Equity US$ 21476 billion(2010)
Employees 294000 (2010)
Divisions PepsiCo America, Asia, Europe, Africa
Website www.pepsico.com
COMPANY PROFILE

New Delhi
``
PepsiCo is one of the largest companies there is that is engaged in the food, beverage,
and snack industries. Their address is 700 Anderson Hill Road, Purchase, N.Y. 10577.
Their phone number is 914-253-2000 and their fax number is 914-253-2070. Their stock
symbol is PEP and they are listed on the NYSE. The company URL is www.pepsico.com.
Business Summary: PepsiCo, Inc. is engaged in the snack food, soft drink, juice, and fast
food franchise businesses. The Company, through its subsidiaries, markets, sells and
distributes various snacks in the United States and internationally, manufactures
concentrates of Pepsi, Mountain Dew and other brands for sale to franchised bottlers in
the United States and international markets and produces, markets, sells and distributes
juices under several Tropicana trademarks in the United States and internationally.
PepsiCo’s domestic snack food business is conducted by Frito-Lay North America, and
its international snack food business is conducted through Frito-Lay International.
The Company's soft drink business operates as the Pepsi-Cola Company and is comprised
of two business units, Pepsi-Cola North America (PCNA) and Pepsi-Cola International
(PCI). In December 2000, the Company announced an agreement under which a
subsidiary of PepsiCo will merge with The Quaker Oats Company, and Quaker will
become a wholly owned subsidiary of PepsiCo. Quaker is a large worldwide marketer of
foods and beverages. It manufactures and markets Gatorade thirst quencher, along with
hot cereals, pancake syrups, grain-based snacks, cornmeal, hominy grits and value-added
rice products.
The proposed merger is subject to certain closing conditions, including approval by

shareholders of both companies and regulatory approvals. The transaction is expected to
close in the first half of 2001. PepsiCo also operates several food franchises including
Pizza Hut, KFC, and Taco Bell.
Financial Summary: PepsiCo, Inc. manufactures markets and sells soft drinks and
concentrates (Pepsi-Cola, Mountain Dew, Slice, etc.), snack foods (Frito-Lay) and
Tropicana branded juices. For the 12 weeks ended 3/24/01, net sales increased 8% to
$4.54 billion. Net income increased 18% to $498 million. Revenues benefited from

New Delhi
``
volume gains across all divisions. Net income also reflects an increased gross profit due
to higher effective net pricing.
A Brief History of PepsiCo
Born in the Carolinas in 1898, Pepsi-Cola has a long and rich history. The drink is the
invention of Caleb Bradham (left), a pharmacist and drugstore owner in New Bern, North
Carolina.
The summer of 1898, as usual, was hot and humid in New Bern, North Carolina. So a
young pharmacist named Caleb Bradham began experimenting with combinations of
spices, juices, and syrups trying to create a refreshing new drink to serve his customers.
He succeeded beyond all expectations because he invented the beverage known around
the world as Pepsi-Cola.
Caleb Bradham knew that to keep people returning to his pharmacy, he would have to
turn it into a gathering place. He did so by concocting his own special beverage, a soft
drink. His creation, a unique mixture of kola nut extract, vanilla and rareoils, became so
popular his customers named it "Brad's Drink." Caleb decided to rename it "Pepsi-Cola,"
and advertised his new soft drink. People responded, and sales of Pepsi-Cola started to
grow, convincing him that he should form a company to market the new beverage.
In 1902, he launched the Pepsi-Cola Company in the back room of his pharmacy, and
applied to the U.S. Patent Office for a trademark. At first, he mixed the syrup himself and
sold it exclusively through soda fountains. But soon Caleb recognized that a greater
opportunity existed to bottle Pepsi so that people could drink it anywhere.
The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially registered
with the U.S. Patent Office. That year, Caleb sold 7,968 gallons of syrup, using the theme
line "Exhilarating, Invigorating, Aids Digestion." He also began awarding franchises to
bottle Pepsi to independent investors, whose number grew from just two in 1905, in the
cities of Charlotte and Durham, North Carolina, to 15 the following year, and 40 by

New Delhi
``
1907.By the end of 1910, there were Pepsi-Cola franchises in 24 states. Pepsi-Cola's first
bottling line resulted from some less-than-sophisticated engineering in the back room of
Caleb's pharmacy. Growth was phenomenal, and in 1909 Caleb erected a headquarters so
spectacular that the town of New Bern pictured it on a postcard. Famous racing car driver
Barney Oldfield endorsed Pepsi in newspaper ads as "A bully drink...refreshing,
invigorating, a fine bracer before a race." The previous year, Pepsi had been one of the
first companies in the United States to switch from horse-drawn transport to motor
vehicles, and Caleb's business expertise captured widespread attention. He was even
mentioned as a possible candidate for Governor. A 1913 editorial in the Greensboro
Patriot praised him for his "keen and energetic business sense."
Only two plants remained open. It wasn't until a successful candy manufacturer, Charles
G. Guth, appeared on the scene that the future of Pepsi-Cola was assured. Guth was
president of Loft Incorporated, a large chain of candy stores and soda fountains along the
eastern seaboard. He saw Pepsi-Cola as an opportunity to discontinue an unsatisfactory
business relationship with the Coca-Cola Company, and at the same time to add an
attractive drawing card to Loft's soda fountains. He was right. After five owners and 15
unprofitable years, Pepsi-Cola was once again a thriving national brand.

New Delhi
``
Milestone of company
 1898 Caleb Bradham, a New Bern, North Carolina, pharmacist, renames "Brad's
Drink," a carbonated soft drink he created to serve his drugstore's fountain
customers. The new name, Pepsi-Cola, is derived from two of the principal
ingredients, pepsin and kola nuts. It is first used on August 28.
 1902 Bradham applies to the U.S. Patent Office for a trademark for the Pepsi-Cola
name.
 1903 In keeping with its origin as a pharmacist's concoction, Bradham's
advertising praises his drink as "Exhilarating, invigorating, aids digestion."
 1905 A new logo appears, the first change from the original created in 1898.
 1906 The logo is redesigned and a new slogan added: "The original pure food
drink." The trademark is registered in Canada.
 1907 The Pepsi trademark is registered in Mexico.
 1909 Automobile racing pioneer Barney Oldfield becomes Pepsi's first celebrity
endorser when he appears in newspaper ads describing Pepsi-Cola as "A bully
drink...refreshing, invigorating, a fine bracer before a race." The theme "Delicious
and Healthful" appears, and will be used intermittently over the next two decades.
 1920 Pepsi appeals to consumers with, "Drink Pepsi-Cola. It will satisfy you."
 1932 The trademark is registered in Argentina.
 1934 Pepsi begins selling a 12-ounce bottle for five cents, the same price charged
by its competitors for six ounces.
 1938 The trademark is registered in the Soviet Union.
 1939 A newspaper cartoon strip, "Pepsi & Pete," introduces the theme "Twice as
Much for a Nickel" to increase consumer awareness of Pepsi's value advantage.
 1940 Pepsi makes advertising history with the first advertising jingle ever
broadcast nationwide. "Nickel, Nickel" will eventually become a hit record and
will be translated into 55 languages. A new, more modern logo is adopted.
 1941 In support of America's war effort, Pepsi changes the color of its bottle
crowns to red, white and blue. A Pepsi canteen in Times Square, New York,

New Delhi
``
operates throughout the war, enabling more than a million families to record
messages for armed services personnel overseas.
 1943 The "Twice as Much" advertising strategy expands to include the theme,
"Bigger Drink, Better Taste."
 1949 "Why take less when Pepsi's best?" is added to "Twice as Much"
advertising.
 1950 "More Bounce to the Ounce" becomes Pepsi's new theme as changing soft
drink economics force Pepsi to raise prices to competitive levels. The logo is
again updated.
 1953 Americans become more weight conscious, and a new strategy based on
Pepsi's lower caloric content is implemented with "The Light Refreshment"
campaign.
 1954 "The Light Refreshment" evolves to incorporate "Refreshing without
Filling."
 1958 Pepsi struggles to enhance its brand image. Sometimes referred to as "the
kitchen cola," as a consequence of its long-time positioning as a bargain brand,
Pepsi now identifies itself with young, fashionable consumers with the "Be
Sociable, Have a Pepsi" theme. A distinctive "swirl" bottle replaces Pepsi's earlier
straight-sided bottle.
 1959 Soviet Premier Nikita Khrushchev and U.S. Vice-President Richard Nixon
meet in the soon-to-be-famous "kitchen debate" at an international trade fair. The
meeting, over Pepsi, is photo-captioned in the U.S. as "Khrushchev Gets
Sociable."
 1961 Pepsi further refines its target audience, recognizing the increasing
importance of the younger, post-war generation. "Now its Pepsi, for those who
think Young" defines youth as a state of mind as much as a chronological age,
maintaining the brand's appeal to all market segments.
 1963 In one of the most significant demographic events in commercial history, the
post-war baby boom emerges as a social and marketplace phenomenon. Pepsi
recognizes the change, and positions Pepsi as the brand belonging to the new

New Delhi
``
generation-The Pepsi Generation. "Come alive! You're in the Pepsi Generation"
makes advertising history. It is the first time a product is identified, not so much
by its attributes, as by its consumers' lifestyles and attitudes.
 1964 A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising.
 1966 Diet Pepsi's first independent campaign, "Girl watchers," focuses on the
cosmetic benefits of the low-calorie cola. The "Girl watchers" musical theme
becomes a Top 40 hit. Advertising for another new product, Mountain Dew, a
regional brand acquired in 1964, airs for the first time, built around the instantly
recognizable tag line, "Ya-Hoo, Mountain Dew!"
 1967 When research indicates that consumers place a premium on Pepsi's superior
taste when chilled, "Taste that beats the others cold. Pepsi pours it on" emphasizes
Pepsi's product superiority. The campaign, while product-oriented, adheres
closely to the energetic, youthful, lifestyle imagery established in the initial Pepsi
Generation campaign.
 1969 "You've got a lot to live. Pepsi's got a lot to give" marks a shift in Pepsi
Generation advertising strategy. Youth and lifestyle are still the campaign's
driving forces, but with "Live/Give," a new awareness and a reflection of
contemporary events and mood become integral parts of the advertising's texture.
 1973 Pepsi Generation advertising continues to evolve. "Join the Pepsi People,
Feeling' Free" captures the mood of a nation involved in massive social and
political change. It pictures us the way we are-one people, but many personalities.
 1975 The Pepsi Challenge, a landmark marketing strategy, convinces millions of
consumers that Pepsi's taste is superior.
 1976 "Have a Pepsi Day" is the Pepsi Generation's upbeat reflection of an
improving national mood. "Puppies," a 30-second snapshot of an encounter
between a very small boy and some even smaller dogs, becomes an instant
commercial classic.
 1979 With the end of the '70s comes the end of a national malaise. Patriotism has
been restored by an exuberant celebration of the U.S. bicentennial, and Americans

New Delhi
``
are looking to the future with renewed optimism. "Catch that Pepsi Spirit!"
catches the mood and the Pepsi Generation carries it forward into the '80s.
 1982 With all the evidence showing that Pepsi's taste is superior, the only question
remaining is how to add that message to Pepsi Generation advertising. The
answer? "Pepsi's got your Taste for Life!" a triumphant celebration of great times
and great taste.
 1983 The soft drink market grows more competitive, but for Pepsi drinkers, the
battle is won. The time is right and so is their soft drink. It's got to be "Pepsi
Now!"
 1984 A new generation has emerged-in the United States, around the world and in
Pepsi advertising, too. "Pepsi. The Choice of a New Generation" announces the
change, and the most popular entertainer of the time, Michael Jackson, stars in the
first two commercials of the new campaign. The two spots quickly become "the
most eagerly awaited advertising of all time."
 1985 Lionel Richie leads a star-studded parade into "New Generation" advertising
followed by pop music icons Tina Turner and Gloria Estefan. Sports heroes Joe
Montana and Dan Marino are part of it, as are film and television stars Teri Garr
and Billy Crystal. Geraldine Ferraro, the first woman nominated to be vice
president of the U.S., stars in a Diet Pepsi spot. And the irrepressible Michael J.
Fox brings a special talent, style and spirit to a series of Pepsi and Diet Pepsi
commercials, including a classic, "Apartment 10G."
 1987 After an absence of 27 years, Pepsi returns to Times Square, New York, with
a spectacular 850-square foot electronic display billboard declaring Pepsi to be
"America's Choice."
 1988 Michael Jackson returns to "New Generation" advertising to star in a four-
part "episodic" commercial named "Chase." "Chase" airs during the Grammy
Awards program and is immediately hailed by the media as "the most-watched
commercial in advertising history."
 1989 "The Choice of a New Generation" theme expands to categorize Pepsi users
as "A Generation Ahead!"

New Delhi
``
 1990 Teen stars Fred Savage and Kirk Cameron join the "New Generation"
campaign, and football legend Joe Montana returns in a spot challenging other
celebrities to taste test their colas against Pepsi. Music legend Ray Charles stars in
a new Diet Pepsi campaign, "You got the right one baby."
 1991 "You got the Right one Baby" is modified to "You got the Right one Baby,
Uh-Huh!" The "Uh-Huh Girls" join Ray Charles as back-up singers and a
campaign soon to become the most popular advertising in America is on its way.
Supermodel Cindy Crawford stars in an award-winning commercial made to
introduce Pepsi's updated logo and package graphics.
 1993 "Be Young, Have fun, Drink Pepsi" advertising starring basketball superstar
Shaquille O'Neal is rated as best in U.S.
 1994 New advertising introducing Diet Pepsi's freshness dating initiative features
Pepsi CEO Craig Weatherup explaining the relationship between freshness and
superior taste to consumers.
 1995 In a new campaign, the company declares "Nothing else is a Pepsi" and
takes top honors in the year's national advertising championship.

New Delhi
``
Source: http://www.pepsico.com/Company/Our-History.html
List of tag lines of PepsiCo
1939–1950: "Twice as Much for a Nickel"
1950–1957: "Any Weather is Pepsi Weather"
1957–1958: "Say Pepsi, Please"
1961–1964: "Now it’s Pepsi for Those Who Think Young"
1964–1967: "Come Alive, You're in the Pepsi Generation"
1969–1975: "You've got a Lot to Live, and Pepsi's got a Lot to Give"
1975–1977: "Have a Pepsi Day"
1977–1980: "Join the Pepsi People (Feeling Free)"
1980–1981: "Catch That Pepsi Spirit"
1981–1983: "Pepsi's got your taste for life"
1983–1984: "Pepsi Now! Take the Challenge!"
1984–1988: "Diet Pepsi. The Choice of a New Generation"
1988–1989: "Diet Pepsi. The Taste That's Generations Ahead"
1989–1990: "Diet Pepsi. The Right One"
1986–1987: "We've got the Taste"
1987–1990: "Pepsi's Cool"

New Delhi
``
1990–1991: "You got the right one Baby UH HUH"
1990–1994: "Yehi hai right choice Baby UH HUH"
1995: "Nothing Else is a Pepsi"
1995–1996: "Drink Pepsi. Get Stuff."
1996–1997: "Pepsi: There's nothing official about it"
1997–1998: "Generation Next"
1998–1999: "It’s the cola"
1999–2000: "For Those Who Think Young"/"The Joy of Pepsi-Cola"
1999–2006: "Yeh Dil Maange More!"
2006–2007: "Why You Doggin' Me"/"Taste the one that's forever young"
2000–2008: "Pepsi ye pyaas heh bari"
2008–2009: "Something for Everyone"
2009–2010: "Yeh hai youngistaan meri jaan"
2009–2010: "My Pepsi My Way"
2010–present: "every Pepsi Refreshes the World"
2011–present: "Change the game"
2011–present "Dunya Hai Dil Walon Ki"

New Delhi
``
Source: http://pickprogrammer.net/SLOGAN.aspx
Changes in logo of PepsiCo

New Delhi
``
CHAIRMAN AND CEO OF PEPSICO
Indra Nooyi is CEO of PepsiCo; Ranked No.4 on Forbes magazine's annual surveys of
the 100 most powerful women in the world.
Indra Nooyi is the newly appointed CEO of PepsiCo-the world's second-largest soft drink
maker. She joins the select band of women who head Fortune 500 companies. Presently,
there are only 10 Fortune 500 companies that are run by women, and she is the 11th to
break into the top echelons of power. Prior to becoming CEO, Indra Nooyi was President,
Chief Financial Officer and a member of the Board of Directors of PepsiCo Inc.
she spent her childhood in Chennai. Her father worked at the State Bank of Hyderabad
and her grandfather was a district judge. She did her BSc. in Chemistry from Madras
Christian College and subsequently earned a Master's Degree in Finance and Marketing
from IIM Calcutta. Indra Nooyi also holds a Master's Degree in Public and Private
Management from the Yale School of Management. Before joining PepsiCo in 1994,
Indra Nooyi was Senior Vice President of Strategy and Strategic Marketing for Asea
Brown Boveri, and Vice President and Director of Corporate Strategy and Planning at
Motorola. She also had stints at Mettur Beardsell and Johnson & Johnson. At PepsiCo,

New Delhi
``
Indra Nooyi played key roles in the Tricon spin-off, the purchase of Tropicana, the public
offering of Pepsi Cola bottling group and the merger with Quaker Foods. Indra Nooyi has
been ranked No.4 on Forbes magazine's annual survey of the 100 most powerful women
in the world.
Source: http://en.wikipedia.org/wiki/Indra_Nooyi
MISSON
The main objective of the company is to provide best quality products to its consumer.
Another objective is to provide healthy rewards to its investor, good reward to its
employee and other investor and partners who financially help the company
VISION

New Delhi
``
The vision of the company is to improve in all aspects in which they operate. By
improving in social and economical environment, they want to make tomorrow better
than today.
Source: http://www.pepsico.com/Company/Our-Mission-and-Vision.html
PepsiCo Values & Philosophy
Our Values & Philosophy area reflection of the socially and environmentally responsible
company we are committed to delivering sustained growth through empowered people
acting responsibly and building trust.
What It Means
Sustained Growth is fundamental to motivating and measuring our success. Our quest for
sustained growth stimulates innovation, places a value on results, and helps us understand
whether today's actions will contribute to our future. It is about the growth of people and
company performance. It prioritizes both making a difference and getting things done.
Empowered People means we have the freedom to act and think in ways that we feel will
get the job done, while adhering to processes that ensure proper governance and being
mindful of company needs beyond our own. Responsibility and Trust form the foundation
for healthy growth. We hold ourselves both personally and corporately accountable for
everything we do. We must earn the confidence others place in us as individuals and as a
company. By acting as good stewards of the resources entrusted to us, we strengthen that
trust by walking the talk and following through on our commitment to succeeding
together.
Diversity brings new perspectives into the workplace and encourages innovation, as well
as the ability to identify new market opportunities.

New Delhi
``
Respect others and succeed together.
Our mutual success depends on mutual respect, inside and outside the company. It requires
people who are capable of working together as part of a team or informal collaboration.
While our company is built on individual excellence, we also recognize the importance and
value of teamwork in turning our goals into accomplishments.
COMMITMENT
Diversity isn't just the right thing to do. It's the right thing to do for our business, and
we're committed to making diversity and inclusion a way of life at PepsiCo.
In our business, understanding different cultures is a major advantage. In fact, we view
diversity as a key to our future. Our brands appeal to an extraordinarily diverse array of
customers. And they are sold by an equally diverse group of retailers.
To truly understand the needs of our customers and consumers -- and succeed in the
marketplace -- PepsiCo must reflect that diversity in our employees, our suppliers and in
everything we do.
Offering a workplace where diversity is valued helps we build the top-quality workforce
so crucial to our success -- by enabling us to attract and retain great people from a wide
spectrum of backgrounds.
Community
We are committed to celebrating and supporting diversity in our community through our
corporate giving and community programs. PepsiCo gives to the community through
the PepsiCo Foundation, the PepsiCo Community Affairs Department and PepsiCo
divisions. The PepsiCo Foundation and our operating divisions gave grants to more than
1,000 community organizations, of which a significant portion were organizations
championing diversity. We also support organizations through gifts in-kind, such as
product, premiums, printing, meeting arrangements, and equipment donations, support of
events, conventions, journals and meetings.

New Delhi
``
Customers
We are committed to marketing our products to all groups, treating all customers with
respect, sensitivity and fairness, while providing some of the greatest products on earth.
Early in its history -- as far back as the 1940s -- Pepsi-Cola recognized the importance of
diversity. Pepsi pioneered targeted marketing and national lifestyle advertising featuring
minorities. We developed education and sports programs spotlighting minorities. We
partnered with many groups to create programs that contribute to minority communities.
We sponsored major music tours by entertainers such as Tina Turner. We support
minority media and interests. Over the years, our success has been recognized with
numerous awards. Most importantly, our products are purchased and enjoyed by all
groups of consumers.
Suppliers:
We are committed to welcoming business partners who represent all people and
purchasing quality products and services from a diverse supplier base. PepsiCo is a
leader in seeking out and working with minority and women suppliers. In 2006, we
surpassed $1 billion in spending with minority and women vendors. It is our policy to
promote the utilization of eligible M/WBE vendors in all aspects of the company's
business.
Competitor:
Pepsi cola have a grate competition with other soft drinks and water, but the major
competitor of Pepsi is Coke. Coke gives a direct competition to Pepsi cola. Coke covers
almost 41% of market share and indirectly Pepsi have competition with
Fruit juice and mineral water which capture around 11% market.

New Delhi
``
SUSTAINABLE ADVANTAGE
Three major sustainable advantages give PepsiCo a competitive edge as we operate in

the global marketplace.
1 Big, muscular brands;

2 Proven ability to innovate and create
differentiated products; and
3 Powerful go-to-market systems.
Making it all work are our extraordinarily talented

and dedicated people. When we take these
competitive advantages and invest in them with dollars generated from top-line growth
and cost-saving initiatives, we sustain a value cycle for our shareholders.
In essence, investing in innovation fuels the building of our brands.
This in turn drives top-line growth.
Dollars from that top-line growth are strategically reinvested back into new products
and other innovation, along with cost-savings projects.

New Delhi
``
Thus, the cycle continues.
Highlights of PepsiCo in India:
 World leader - Convenient Foods and Beverages

 Revenues of more than $35 billion
 More than 1,68,000 employees
 Available in nearly 200 countries and territories
 Group’s 37 bottling plants in India
 16 are company owned and 21 are franchisee owned
 Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats
Company in 2001
 Generates direct employment for more than 4000 people in India and indirect
employment for 60,000 people
 Annual exports from India are worth over U.S$60 million

New Delhi
``
 PepsiCo Founded in 1965 through the merger of Pepsi-Cola and Frito-Lay
 PepsiCo entered India in 1989
Source: www.allfreeessays.com/essays/Pepsi-And-Its-MarketIng
SWOT ANALYSIS OF PEPSICO

New Delhi
``
SS Things
Thingsthe
thecompany
companydoes
doeswell.
well.
rn al
In t e
W
W Things
Thingsthe
thecompany
companydoes
doesnot
notdo
dowell.
well.
al
O
O
Conditions
Conditionsin
that favor
inthe
theexternal
externalenvironment
strengths.
that favor strengths.
environment
te rn
Ex Conditions
Conditionsininthe
theexternal
externalenvironment
T
environment
T that
that do not relate to existingstrengths
favor
do not
areas
relate
of
to existing
current
strengthsor
weakness.
favor areas of current weakness.
or
Strengths-
1. Believe on the customer satisfaction.
2. Pepsi has a broader product line and outstanding reputation.
3. Record revenues and increasing market share
4. Number one maker of snacks, such as corn chips and potato chips
5. Great brands, strong distribution, innovative capabilities
6. popular with younger people, wide array of brands
7. has a big share , popular, well know by costumers, higher celebrities for promotion
8. Company has good market share in Varanasi city.
9. Company has a Brand Equity among Consumers.
Weaknesses-

New Delhi
``
1- No provision for regular replacement of damage of bottles.

2- Distribution is not proper so we can say not justified.
3- not as popular with older crowd, not associated with key restaurants (i.e. coke /
McDonalds', while Pepsi / Pizza Hut)
Opportunities-
1. water related products, non-soft drinks, energy drinks

2. Increase the coverage areas.
3. Increase market share by improving service
4. Increase the target consumer every year.
5. Company can go for more Monopoly counters.
Threats-
1. Distributors are reducing in Varanasi city.

2. Constant competition with coke. Olympic branding from coke.
3. Other drink companies are increasing competition.
4. Decline in market reputation due to ineffectiveness & declaring service.
5. Aggressive marketing strategies of Coke.
Source: http://www.marketingteacher.com/swot/pepsi-swot.html

New Delhi
``
PEPSICO’S PRODUCTS
Following are main products of PepsiCo (India) pvt limited.
 Pepsi Mirinda Orange

 Mirinda Lemon 7 Up
 Mountain Dew Slice
 Pepsi Diet Lehar Soda
 Aquafina Nimbooz
 Tropicana Lehar Namkeen
 Lays Kurkure
 Uncle Chips Cheetos

New Delhi
``
Organizational chart
Unit Manager
Unit Manager
Territory Development Marketing Development

Territory Development
Manager Marketing Development
Manager
Manager Manager
Assistant Sales and Development Marketing Development

Assistant Sales and Development Marketing Development
Coordinator
Manager
Manager Coordinator
Customer Executives
Customer Executives
Sales Trainees
Sales Trainees

New Delhi
``
Distribution Channel
“Marketing channels are sets of interdependent organizations involved in the process of
making a product or service available for use or consumption”
PepsiCo’s Plant
PepsiCo’s Plant
Indenting
Indenting
Primary Distributor
Primary
Sale Distributor
Sale
Market / Secondary
Market / Secondary
Sale
Retailers Sale
Retailers
Consumer
Consumer
Distribution Objective
 Minimize total distribution costs for a given service output

 Determine the target segments and the best channels for each segment
 Objectives may vary with product characteristics

New Delhi
``
 E.g. perishables, bulky products, non-standard items, products requiring installation
& maintenance.
MANUFACTURING PROCESS
The bottling factory is having a manufacturing process comprising of water treatment,

plant producing 1oo*bacterial free soft water as for specification prescribed by COKE &
PEPSI. The soda sugar making unit is there to prepare sugar syrup, standard mixed
percentage. There is an intermixing unit where through a semi automatic process sugar
syrup. The both flavor water and CO2 is punched together resulting into the soft drinks of
a particular flavor.
There is a huge bottle washing machine where the markets returned bottled are washed
continuously in the super heated water, chlorine and then soft chilled water.
Through the exhausted washing system the bottles are carried out of the washer with the
help conveyer and automatically hundreds of bottles washed and cleaned. Bottles are led
by conveyer to the filling machine unit, where the ready soft drink mixture is put in 800
bottled per minute.
Simultaneously through an automatic system all the bottle is crowned with the help of
crowning machine. The ready to go the market bottles are then passed through aggressive
inspection and collected into carats (1 carats contains 24 bottles) with the help of
automatic case packer machine.
After that pet containing soft drinks are sent to the warehouses and immediately the
payment of the excise duty to the Govt. For packed bottle kept in the warehouses are
insured and, ultimate stage of the production line is to dispatch it. The product reaches
into the market through a network of distribution system.

New Delhi
``
BOTTLING PLANT IN INDIA
There are total 46 bottling plants across India, in which 35 plants are of soft drinks and 11
plants are of mineral water.

New Delhi
``
Introduction to the topic
Introduction:
The importance of consumer sales promotion in the marketing mix of the soft drink
category throughout the world has increased. Companies spend considerable time in
planning such activities. However, in order to enhance the effectiveness of these
activities, manufacturers should understand consumer and retailer interpretations of their
promotional activities. The study here pertains to consumer’s perceptions regarding sales
promotion. Some past researches have suggested that promotion itself has an effect on the
perceived value of the brand. This is because promotions provide utilitarian benefits such
as monetary savings, added value, increased quality and convenience as well as hedonic
benefits such as entertainment, exploration and self-expression.
Broadly speaking most of the companies using Marketing Mix which includes…
Price
Place (Channel of Distribution)
Product
Promotion
These are the four basic pillar of marketing mix. Most of the marketing strategies are
built on the basis of these criteria.
Promotion is one of the important elements of marketing mix. There are so many
elements of promotion such as …

New Delhi
``
Advertising
Direct Marketing
Public Relations
Sales Promotion
Traditionally, sales Promotions have been used by marketer to increase sales in the short
term. However, in the last few decades this communication tool has evolved and now is
considered from a strategic point of view. For this reason, it is necessary to realize new
studies in this area and study how consumers evaluate sales promotions.
Sales promotions have grown in both importance and frequency over the past few
decades. Although an accurate estimate for total sales promotions expenditures does not
exist, we can be sure that the trend is up.
Sales promotion serves three essential roles: It informs, persuades and reminds
prospective customers about a company and its products. Even the most useful product or
brand will be a failure if no one knows that it is available. As we know, channels of
distribution take more time in creating awareness because a product has to pass through
many hands between a producer and consumers.
Therefore, a producer has to inform channel members as well as ultimate consumers

about the attributes and availability of his products. The second purpose of promotion is
persuasion. The cut throat competition among different products puts tremendous
pressure on their manufacturers and they are compelled to undertake sales promotion
activities. The third purpose of promotion is reminding consumers about products
availability and its potential to satisfy their needs.
From these elements Sales Promotion is the element which is in the focus of this project.
Further Sales Promotion is quite broad term it includes …

New Delhi
``
 Consumer Oriented Sales Promotion

 Trade Oriented Sales Promotion
Sales Promotion from the Consumers point of view
Long-term impact
In order to understand ability of the promotions to increase long-term sales, respondents

were asked about continuity of purchase of a brand after the withdrawal of promotion.
Majority of the respondents indicated that they would not continue. But some of said
they would. Thus, it could be inferred that promotions in this category (low involvement
products) might encourage trial and brand switching but not long term loyalty.
Preference of Schemes:
Price off was the most preferred type of scheme. Maximum customers’ ranked price-offs
as number one or two.
Perceived Quality:
Majority of respondents had a perception that the quality of the promoted brands
remained the same during promotion, while some of them felt that it was inferior to
before. It can be inferred that promotions were not leading to negative brand quality

New Delhi
``
perceptions. It is found that some customer strongly preferred to buy their regular brand
and said that sales promotion would not weaken their loyalty towards the brand.
Sales promotion from the retailer’s point of view:
Perceptions on Scheme Preference

It was found that retailer perceived price offs as a better form of sales promotion activity.
Price offs in their opinion had relatively a greater impact compared to any other form of
sales promotion activity like Bonus packs, Premium, Contests etc. Retailers preferred
price offs the most, then bonus pack, premium, contests, in order of importance.
Perceptions about Buying Roles

Retailers viewed that the person who came to the shop (who may be a maid, son,
daughter, daughter-in-law and child) was the decider of a toilet soap brand and not the
Income provider (e.g. head of the family). It could be inferred that visibility of
information about the sales promotion activity at the point of purchase could result into
the purchase of a promoted brand.
Perceptions about their role in decision-making

New Delhi
``
Retailer had relatively very low influence in affecting choice. It could be inferred that
visibility and awareness about the scheme were the critical success factors so that pull
could be created.
Perceptions about Response to Sales Promotion Offers
They believed that younger age-groups were more experimental in nature, amenable to
trying new brands, and sought/looked for or asked whether there were any) sales
promotion schemes running on any toilet soap at the time of purchase.
Perceptions about Communications of Sales Promotion Schemes

Retailers perceived that role of word of mouth and television advertising played an
important part in providing information inputs to consumers regarding sales promotion
activities.
Dealer-Retailer Dynamics
At the time of sales promotion activities, dealers had tendency to push unwanted stocks
onto the smaller retailers. In fact these retailers preferred to stock variety of brands and
wanted payment for shelf and window display to increase traffic into their store.
However, supermarkets and big retailers were pampered and given special services and
given better margins and better allowances.
Margins
It was found that in sales promotion schemes margins varied from 6 to15% depending of
the size of the retail outlet, bargaining power of a retailer, quantity ordered by him etc.
Mostly margins were linked to size of the volumes that were ordered.
Nature of POP

New Delhi
``
Retailers indicated that most of the POP (Point of Purchase) materials were meant for
brand advertisement and not for giving information regarding the schemes. Thus it could
be inferred that company’s follow up was not adequate.
Servicing during duration of Scheme

In stock-out situation during the running of the sales promotion schemes, smaller retailers
had to wait for replenishment of stocks till the next scheduled weekly visit by the dealer
salesman but big retailers were serviced on telephonic request for replenishment of
stocks. This clearly indicated the disparity in treatment.
Gifts for Retailer motivation

Companies at times were rewarding retailers by giving free gifts like thermos flasks or
clocks if they sold more than certain quantity in a given period. Companies were making
a half-hearted effort to motivate retailers.
Perceptions about mass media announcements

Retailers viewed that whenever sales promotion scheme was announced on TV, it created
pull and they were more than willing to stock such brands. Hence there was very little
awareness leading to unsold stock till 6 months.
Handling Problems
Many a time’s retailers had to handle various sales promotion offers simultaneously in a
category and also across categories and there was no formal communication planning
either from the dealer or the company. Remembering each offer and handling was a
problem especially for a small retailer which was often an as one-man show.

New Delhi
``
Source: http://www.nos.org/Secbuscour/24.pdf

New Delhi
``
Why do Sales promotion schemes affect sales?
There are three mechanisms behind these facts. It is Purchase quantity, Brand switching
and Category expansion.
First, consumer can increase the quantity they buy just because the product is on sale.
Second, consumers are inducing to purchase another brand different from the one they
would have purchased when there is no promotional incentive.
Finally, consumer’s total consumption of the product category is increased by the

promotion. However, in the long term this positive effect may be diluted because a
promotional campaign has no permanent effect in the sales of the firm

New Delhi
``
Sales Promotion Strategy
Sales are the lifeblood of a business, without sales there would be no business in
the first place; therefore it is very important that if a business wants to succeed, it should
have a sales promotion strategy in mind. The primary objective of a sales promotion is to
improve a company’s sales by predicting and modifying your target customer’s
purchasing behavior and patterns.
Sales promotion is very important as it not only helps to boost sales but it also helps a
business to draw new customers while at the same time retaining older ones. There are a
variety of sales promotional strategies that a business can use to increase their sales,
however it is important that we first understand what a sales promotion strategy actually
is and why it is so important.
A sales promotion strategy is an activity that is designed to help boost the sales of a
product or service. This can be done through an advertising campaign, public relation
activities, a free sampling campaign, a free gift campaign, a trading stamps campaign,
through demonstrations and exhibitions, through prize giving competitions, through
temporary price cuts, and through door-to-door sales, telemarketing, personal sales
letters, and emails.
The importance of a sales promotion strategy cannot be underestimated. This is because a

sales promotion strategy is important to a business boosting its sales.
When developing a sales promotion strategy for your business, it is important that you
keep the following points in mind.
 Consumer attitudes and buying patterns

 Your brand strategy
 Your competitive strategy
 Your advertising strategy

New Delhi
``
Other external factors that can influence products availability and pricing
There are three types of sales promotion strategies:
 A push strategy
 A pull strategy
 A combination of the two
A Push Strategy:
A ‘push’ sales promotion strategy involves ‘pushing’ distributors and retailers to

sell your products and services to the consumer by offering various kinds of promotions
and personal selling efforts. What happens here is that a company promotes their
product/services to a reseller who in turn promotes it to another reseller or to the
consumer. The basic objective of this strategy is to persuade retailers, wholesalers and
distributors to carry your brand, give it shelf space, promote it by advertising, and
ultimately ‘push’ it forward to the consumer. Typical push sales promotion strategies
include; buy-back guarantees, free trials, contests, discounts, and specialty advertising
items. PepsiCo use such type of strategy for maximum time
A Pull Strategy:
A ‘pull’ sales promotion strategy focuses more on the consumer instead of the
reseller or distributor. This strategy involves getting the consumer to ‘pull’ or purchase
the product/services directly from the company itself. This strategy targets its marketing
efforts directly on the consumers with the hope that it will stimulate interest and demand
for the product. This pull strategy is often used when distributors are reluctant to carry or
distribute a Pepsi product. Typical pull sales promotion strategies include; samples,

New Delhi
``
coupons, cash refunds or rebates, loyalty programs and rewards, contests, sweepstakes,
games, and point-of-purchase displays.
A Combination of Two Strategies:
A ‘combination’ sales promotion strategy is just that; it is a combination of a push

and a pull strategy. It focuses both on the distributor as well as the consumers, targeting
both parties directly. It offers consumer incentives side by side with dealer discounts.
The Short term Impact of Promotions:
Let’s have look at the impact of promotions on purchase behavior during the promotional
period i.e. the week or the month when the promotion was being run. The majority of the
empirical studies have focused on the impact of promotions in the short term. The key
findings across the studies are discussed below.
Temporary price reductions (price off) substantially increase sales:
There is ample evidence to show that promotions lead to dramatic increases in sales of
promoted brand in the short term. Studies have consistently reported high sales effects
and high price elasticity of brands which are on promotion. The economic rationale for
the promotional response is clear – temporary price cuts increase the value of the product
to the consumer and it leads to immediate action. Sales boost can be quantified on the
basis of brand switching, primary demand expansion and consumer stockpiling during a
promotion.

New Delhi
``
Sales Promotion leads to brand substitution with the product category:
The sales ‘bump’ during the promotional period into sales due to brand switching,
purchase time acceleration and stockpiling. Studies on brand switching have shown that
brand switching effects within a category are asymmetric such that promotions on higher
quality brands impacts weaker brands disproportionately. During a promotion, higher
quality brands induce a large number of consumers to switch to them as compared to
lower quality brands. One explanation advanced for this finding by researchers is that
large share brands have higher brand equity and attract switchers more than low share
brands
Sales Promotion leads to purchase acceleration/stockpiling effects:
In response to a promotion, consumers may buy more quantity of the product
category or buy at an earlier time than usual (purchase acceleration effect). If consumers
buy extra quantity during a promotion or earlier than normal, then they are not in the
market to buy products once the promotion is over. Thus purchase acceleration is
demonstrated through
A lengthening of inter purchase times after a promotion. Purchase acceleration was more
likely to be exhibited in increased purchase quantity than in shortened inter purchase
times. Results showed that consumers mostly made up for the large quantity purchased
by waiting longer until purchasing again. Results indicated that heavy users tended to
accelerate purchases more than light users. There was negligible difference in the
acceleration propensities of high versus low income groups.
Sales Promotion leads to primary demand expansion for a category:
While it was traditionally assumed that consumption rates remain fixed during
and after a promotion, but from this project I came to know that promotions also have a
primary demand expansion effect. When a primary demand expansion occurs, promotion

New Delhi
``
induced increase in purchase quantities does not significantly extend the time till the next
purchase in the category occurs, thus indicating that there has been an increase in
consumption promotions induced consumers to buy more and consume faster. It is found
that promotion induced inventory temporarily increased consumption rates within the
category e.g. in categories such as bacon, salted snacks, soft drinks and yogurt exhibited
primary demand expansions as a result of promotion while bathroom tissue, coffee,
detergent and paper towels exhibited stockpiling only.
Sales Promotions affect sales in complementary and competitive categories:

From this project it is found that promotion not only increases sales of main
product but it also lead to increase in sales of complementary categories. Found strong
cross relationships between products of the promoted product category indicating brand
substitution behavior. They stated that retail price promotions work as a form of implicit
price bundling whereby the consumer surplus is transferred from the promoted item to
non promoted items. Also found that retail price promotions create significant
complementary and substitution effects within the store.
The Long term Impact of Promotions:
Strategies are builds to reap the benefits for longer period of time; same is true in sales
promotion strategies. Let us see impact of promotions effort and study the impact over a
longer time period e.g. 4-6 months or even a few years after a sales promotion campaign.
The result showed that consumer promotions for leading brands of established packaged
products had no after-effects on the brand’s sales or repeat buying loyalty. The extra sales
of a brand while promoted came virtually all from the brand’s existing long-term
customer base for which the experience of buying the promoted brand was nothing new.

New Delhi
``
It is found that although the short term effects of promotions are strong; these promotions
rarely exhibit long term effects. It is observed that each sales component generally lacked
a permanent effect and the effect of promotion was short lived and increase in promotions
affected consumers’ stockpiling decisions in the long run. They found that the combined
short and long-term elasticity of promotions was zero. The stockpiling induced by a
promotion was essentially offset by reduced demand in the long term. Thus increased
sales were more a result of sales borrowed from the future than increased consumption.
Research Objectives of study
 To understand the competitive market of soft drinks.

 To analyze the impact of promotional schemes on sales.
 To know the various sales promotion strategies.
 To investigate the problems of retailers and customers.
 To analyze the impact of merchandising on sales.

New Delhi
``
Research Methodology
1. Defining the problem:

To study “Sales promotion strategies of PepsiCo products” in Varanasi city.
2. Research Type:
Descriptive Research – Descriptive research has been conducted as the
primary data was studied and analyzed according to the need of the study.
3. Area Selected:
Survey was conducted in Varanasi City.
4. Sample unit:
Each respondent was considered as a single unit in the survey.
5. Sample Size:
The sample was done taking 100 units.
6. Collection Of Data:
Mostly, the information which has been collected is primary in nature.
Some secondary data have also been extracted from the various websites, published
journals, magazines, and newspapers.

New Delhi
``
7. Data Collection Method:

The method of data collection is questionnaire method.
8. Data Analysis Method & tools:

The data analysis instrument used for conducting the research is Tabulation,
Bar Chart, Line Chart and Pie chart.
ANALYSIS & INTERPRETATION:-
Q1. Since how long are you in this business?
a) 1-5 years ( ) b) 5-10 years ( ) c) more than 10 years ( )
Durations 1-5 years 5-10 years More than 10 years
Respondents 35 53 12

New Delhi
``
INTERPRETATION:-
Majority of outlets were doing business from 5 to 10 years.
Q.2 which company’s soft drink you would like to purchase in more quantity?
a) Pepsi ( ) b) coke ( ) c) Others ( )
Company's product Pepsi coke Others
Respondents 56 38 6
Respondents
Others
Brands
coke
Respondents
Pepsi
0 10 20 30 40 50 60
No of respondents

New Delhi
``
INTERPRETATION:-
The above graph present that 56% of respondents like to buy Pepsi products, 38%
respondents like to buy coke products, and 6% respondents like to buy other product in
more in quantity
Q3. Why you want to purchase a particular company’s product in more quantity?
a) High Margin ( ) b) More offers ( ) c) Better Supply ( ) d) More facilities ( )
Particular company High Margin More Offers Better supply More facilities
Respondents 41 44 10 5

New Delhi
``
INTERPRETATION:-
From the above data tabulated, it can be inferred that majority of the respondents i.e.,
44% of respondents buy product in more quantity due to more offers. This is followed by
41% due to high margin, 10% due to more facility & 5% of respondents due to better
supply.
Q4. Do you suggest customers to purchase a certain brand?
a) Yes ( ) b) No ( ) c) some time ( )
Suggestion for Products Yes No Some time


New Delhi
``
INTERPRETATION:-
Out of sample size, 38% respondents suggest the customers certain brands while 36%
respondents don’t suggest and 26% respondents suggest at times.
Q5. If Yes why?
a) High margin ( ) b) more promotional offers ( ) c) quality ( ) d) Others ( )
Reason for suggestion High margin More Promotional offers Quality Others

New Delhi
``
INTERPRETATION:-
Out of respondents who suggest for certain brands to customer in which 16 respondents
suggest due to high margin, 14 respondents due to more promotional offers, 3 of due to
quality & 5 for others reasons
Q6. Do you think that customer consider promotional schemes while purchasing a
particular brand of Soft drinks?
a) Yes ( ) b) No ( )
Consideration of promotional schemes Yes No

New Delhi
``
Respondents 82 18
INTERPRETATION:-
The above diagram shows that 82% respondents think that customer considers
promotional schemes while purchasing a product & 18% respondents don’t think so.
Q7. Which promotional schemes attract more to customer?
a) Price off ( ) b) Extra quantity ( ) c) Display promotion ( ) d) lucky draw ( )

New Delhi
``
Promotional schemes Price off Extra Quantity Display Promotion Lucky Draw
INTERPRETATION:-
From the above graph it is clear that price off promotional strategy and Extra quantity is
more attractive to customers.
Q8. Which of the following promotional schemes you have come across so far?
a).Extra quantity ( ) b) scratch card ( ) c) mega display ( ) d) lucky draw ( )

New Delhi
``
Mega Scratch Lucky
Current promotional schemes display Extra Quantity card Draw
INTERPRETATION:-
Out of total respondents, 52% of respondents are currently using extra quantity schemes
followed by 22% for scratch card, 17% for lucky draw and 9% for mega display.
Q9. Which medium do you feel is suitable to promote the various promotional schemes?
a) Hording ( ) b) Signboard ( ) c) news paper ( ) d) others ( )

New Delhi
``
Medium Hoarding Sign board News paper Others
INTERPRETATION:-
Majority of respondents i.e. 44% feel that the best medium of sales promotion
schemes is hording followed by 29% for sign board, 15% for news paper and 11%
for others.
Q10. Is there any existing scheme on the soft drink you are currently using?
a) Yes ( ) b) No ( )

New Delhi
``
Existing schemes Yes No
Respondents 62 38
INTERPRETATION:-
Majority of respondents are availing existing schemes

New Delhi
``
Q11. If yes, please specify?
a) Price off ( ) b) Extra schemes ( ) c) Monopoly ( ) d) others ( )
Extra
Type of schemes Price off schemes Monopoly Others
INTERPRETATION:
Out of total respondents who are availing existing schemes, 41% use extra schemes
followed by 37% by price off and remaining by others.
Q12. If you get an attractive promotional offer in the product other than of your choice
will you switch over?

New Delhi
``
a) Yes ( ) b) No ( ) c) May be ( )
Changes on choice Yes No May Be
INTERPRETATION:-
The above diagram shows that 49% of respondents don’t change their choice after getting
an attractive offer but 32% of respondents are prone to changing their choice and 19% of
respondents are undecided.

New Delhi
``
Q13. Give reason for the same?
a) cost+quantity ( ) b) quality ( ) c) More benefits ( ) d) season change ( )
Reason Cost+quantity Quality More Benefits Seasonal change
INTERPRETATION:-
Above data indicate that out of the respondents who change their choice, 47% change
due to cost and quantity, 31% due to more benefits, 16% due to seasonal change and 6%
due to quality.
Q14. Are you satisfied with schemes given along with products?

New Delhi
``
a) Yes ( ) b) No ( )
Satisfaction level Yes No
Respondents 39 61
INTERPRETATION:-
Out of total respondents, 61% of respondents are not satisfied with existing schemes.

New Delhi
``
Q15. Do you want to improve in the service of the company?

a) Yes ( ) b) No ( )
Improvement in services Yes No
Respondents 72 28
INTERPRETATION:-
Majority of respondents want the company to improve its services.

New Delhi
``
Through FAQs
1-The market position of the Pepsi is very strong in area allotted to me. Near about 75%
soft drinks sold belong to Pepsi.
2-Dew is the most selling brand in the area and at second position is 7UP & third is slice.
3-Retailers are not getting the benefits provided by the company because agency is more
interested in selling to the whole sellers in bulk.
4-When there is any scheme launched by the company, agency sells all the stock to the
whole sellers for some benefit.
5-Whole sellers are selling at low price than Agency because of the stock they bought in
schemes.
6-Acceseries are provided to the big shops only and they should be on the main road.

New Delhi
``
FINDINGS
After analyzing and interpreting data, the outcomes are…….
 In the city of Varanasi majority of outlets which keep soft drink products were
doing business from 5 to 10 years and out of them most of outlets prefer to keep
Pepsi product as well as monopoly outlets also are more for Pepsi.
 Retailers buy products more in quantity because 44% of respondents buy product
in more quantity due to more offers. This is followed by 41% due to high margin,
10% due to more facility & 5% of respondents due to better supply.
 Majority of respondents i.e. 44% feel that the best medium of sales
promotion schemes is hoarding followed by 29% for sign board, 15% for
news paper and 11% for others
 Out of total retailers availing existing schemes, 49% don’t change there choice
after getting an attractive offer but 32% of respondents change their choice and
19% of respondents may or may not change.
 The retailers and dealers of PepsiCo want PepsiCo to improve its servics and ask
for more schemes.
 In the form of competitive analysis the market share of Pepsi is greater than coke.

New Delhi
``
CORPORATE LEARNING
To be a part of PepsiCo India Holdings pvt ltd, was the best opportunity for me to
have :
 A practical exposure of soft dinks (FMCG) world
 Independently understand the customer
 Learn corporate culture
 Learn the technical procedure and analysis of various research system such as
marketing research , Merchentising etc .

New Delhi
``
Limitations of the study
It is well know fact that constraint and limitations are bound to be present in any study do
this also has some limitation as:-
 We considered Varanasi region only because of limited time duration.
 Due to this, the sample size is only 100, which is not very large.
 All the respondents could not fill their questionnaire on their own due to language
problem, time constraints and lack of positive behavior.
 Respondent may give biased answer due to some lack of information about other
brands.
 Findings of the study are based on the assumption that the respondents have given
correct information.

New Delhi
``
CONCLUSION
Hard work and focus makes people successful, success is nothing but taking right
decisions in complex situations.
Overall it was a good exposure at PepsiCo India Holding Pvt Ltd. Before starting the
training at PepsiCo, lot of questions related to working of a FMCG company were
popping in the mind of a budding manager who had a lot of enthusiasm to learn the entire
functioning of the organization and many of the questions got answered during the tenure
at PepsiCo. There are still few questions unanswered and they are the questions that can
be only answered by the Top Management and are practical questions which can also be
answered while working in the industry.
I am very lucky that I have done my internship at PepsiCo India Holding Pvt. Ltd. in
marketing department. During internship I got guidance from both sides, i.e. academic as
wall as corporate. Time to time my mentor gave instructions and guidance relating to my
work in the market.
The basic purpose of summer internship was to have corporate exposure, to learn ways to
handle practical situation and to understand corporate culture.
My entire internship was focused on sales promotion of PepsiCo products and
merchandising.
In which my responsibility was…….
 To understand the market of soft drinks.
 To analyze direct and indirect competitors of Pepsi.
 To promote sales of Pepsi products (Mountain dew)
 To do merchandising (POG, Visi top, Mega promotion, Display etc.)

New Delhi
``
 To audit the premium class outlets.
My most challenging task was Mega promotion of retail outlets and my target was 3
outlets for mega promotion. It was challenging task because of convincing retailers for
mega promotion & one mega promotion a retailer have to take stocks worth Rs. 50000-
150000 and no doubt it was a big deal but I achieved my target.
Summer Training was like an eye opener. In other words internship is a trailer of real
corporate world. During internship I learnt that punctuality and hard work is required for
sustaining in the market. Apart from this, at the college, the theoretical concepts were
more like dictionary with lots of words but after Summer Training, the words have their
practical use in corporate life. The things are not exactly done according to the theories in
the book, there are certain modifications done according to the requirements of the
industry.
My Project gives me the true knowledge of customer relationship concepts and also
helped to understand the working environment of the PepsiCo.
The major thing, which I found in my whole project, is as follow:
 The market share of PepsiCo is more than Coke

 The distribution channel of Pepsi Company is very good.
 Advertising policy of Pepsi is better and the company has more focus on
merchandising.
 Retailers are dissatisfied with salesmen behavior so improvement is required in
this area.
 Company relation with retailers is credit based.
 The Company makes great efforts for promoting sales.
 There are no direct communication between retailers and company.
 There are route incharge but more supervision is required.
 Retailers are aware about company scheme and product development.
 Promotional schemes are not distributed honestly among retailers.

New Delhi
``
Recommendations
1. Monthly inspection should be done to find out the problems of retailers.

2. Schemes should be provided to the retailers not to the whole sellers.
3. Accessories should be provided on the basis of sale.
4. Check the selling of whole sellers at lower price than agency.
5. Agency should be more honest in providing benefits to retailers.
6. Salary of sales force should be increased so they may not indulge in
malpractices to earn more.

New Delhi
``
BIBLIOGRAPHY
BOOKS REFFERED:
 Ramaswami.v.s, Marketing management, macmillion publications , 2009(4th
edition) pg 695-671
 Kotler Philip, “Marketing Management” New Delhi, Prentice Hall of India,
2009(13th edition) pg 476-478
 Britannica Encyclopedia
 Kothari.c.r. Research Methodology, pearson publication, 2007(14th edition)pg
156-170
INTERNET:
 www.google.com
 http://www.marketingteacher.com/swot/pepsi-swot.html access on 05/07/11 at
3.30 pm
 http://www.pepsico.com/Company/Our-History.html access on 06/07/11 at 4.00
pm
 www.pepsicoindia.co.in/ home access on 07/07/11 at 11:00 am
 http://www.pepsico.com/Company/Our-Mission-and-Vision.html access on
02/07/11 at 3:30 pm
 www.wikipedia.org
 http://en.wikipedia.org/wiki/PepsiCo access on 03/07/11 at 4:00pm
 http://www.nos.org/Secbuscour/24.pdf access on 04/07/11 at 7.24 pm
NEWS PAPE
 The Hindu
 Dainik jagaran
Magazine:

New Delhi
``
Marketing magazine
http://www.marketingmagazine.co.uk/bulletin/dailynews/article/1075878/?
DCMP=EMC-BreakingnewsfromMarketing
ANNEXURES
A study on sales promotions strategies of PepsiCo Product
I am student of PGDM studying in Apeejay School of Management Dwarka and carrying out
a survey for our academic project “A study on sales promotions strategies of PepsiCo
Product”. So please fill this questionnaire. Your identity would not be revealed and
information will only be used for academic purpose.
GENERAL INFORMATION ABOUT RESPONDENT:
Outlet’s Name:
Outlet’s Address:
Contact no:
QUESTIONNAIRE:
Q1. Since how long are you in this business?

a) 1-5 years ( ) b) 5-10 years ( ) c) more than 10 years ( )
Q.2 which company’s soft drink you would like to purchase in more quantity?
a) Pepsi ( ) b) coke ( ) c) Others ( )
Q3. Why you want to purchase a particular company’s product in more quantity?
a) High Margin ( ) b) More offers ( ) c) Better Supply ( ) d) More facilities ( )
Q4. Do you suggest customers to purchase a certain brand?

a) Yes ( ) b) No ( )
Q5. If Yes why?

a) High margin ( ) b) more promotional offers ( ) c) quality ( ) d) Others ( )

New Delhi
``
Q6. Do you think that customer consider promotional schemes while purchasing a
particular brand of Soft drinks?
b) Yes ( ) b) No ( )
Q7. Which promotional schemes attract more to customer?

a) Price off ( ) b) Extra quantity ( ) c) Display promotion ( ) d) lucky draw ( )
Q8. Which of the following promotional schemes you have come across so far?
a).Extra quantity ( ) b) scratch card ( ) c) mega display ( ) d) lucky draw ( )
Q9. Which medium do you feel is suitable to promote the various promotional schemes?
a) Hording ( ) b) Signboard ( ) c) news paper ( ) d) others ( )
Q10. Is there any existing scheme on the soft drink you are currently using?
a) Yes ( ) b) No ( )
Q11. If yes, please specify?

a) Price off ( ) b) Extra schemes ( ) c) Monopoly ( ) d) others ( )
Q12. If you get an attractive promotional offer in the product other than of your choice
will you switch over?
a) Yes ( ) b) No ( ) c) May be ( )
Q13. Give reason for the same?

a) cost+quantity ( ) b) quality ( ) c) More benefits ( ) d) season change ( )
Q14. Are you satisfied with schemes given along with products?
a) Yes ( ) b) No ( )
Q15. Do you want to improve in the service of the company?

a) Yes ( ) b) No ( )
Shailendra kr Upadhyay
ASM, Dwarka
New Delhi

New Delhi

PepsiCo Summer Internship Project

Hochgeladen von

Dokumentinformationen

Originalbeschreibung:

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

PepsiCo Summer Internship Project

Hochgeladen von

Copyright:

Verfügbare Formate

``

Summer Internship Project

“A study on sales promotion strategies of PepsiCo

Company Mentor Faculty Mentor

Apeejay School of Management

1 Apeejay School of Management, Dwarka,

2 Apeejay School of Management, Dwarka,

Date: Dr. Etinder pal singh

Apeejay School of Management

3 Apeejay School of Management, Dwarka,

I, the undersigned, hereby declare that Project Report entitled “A study on

4 Apeejay School of Management, Dwarka,

I am thankful to Dr. Etinder pal singh, Professor of Apeejay School of Management,

I am also highly indebted to my esteemed guide Dr.Deepankar Chakrabarti (Dean of

5 Apeejay School of Management, Dwarka,

CHAPRER-1 EXECUTIVE SUMMERY ……………………………………..8

CHAPTER-2 INDUSTRY INTRODUCTION………………………………9

 LIST OF TAG LINE……………………………………………………………..19-21

 CHAIRMAN & CEO…………………………………………………………….22

 VISION & MISSION…………………………………………………………….23

 VALUE & PHILOSOPHY………………………………………………………24

6 Apeejay School of Management, Dwarka,

CHAPTER-3 TOPIC INTRODUCTION

 SALES PROMOTION STRATEGIES…………………………………………..43-44

 SHORT TERM IMPACT OF SALES PROMOTION…………………………46

 LONG TERM IMPACT OF SALES PROMOTION…………………………..47

 TYPE OF RESEARCH DESIGN

 SOURCE OF DATA COLLECTION

7 Apeejay School of Management, Dwarka,

CHAPTER-9 ANNEXURE …………………………………………………..73-

8 Apeejay School of Management, Dwarka,

This project work entitled “A study on sales promotion strategies of PepsiCo

9 Apeejay School of Management, Dwarka,

10 Apeejay School of Management, Dwarka,

Industry Food & Beverage

Founded North Corolina US

Founder(s) Donald Kendall & Herman lay

Headquarters New York, US

Area served Worldwide

Key people Indra Nooyi (CEO)

Products 19 brands of PepsiCo

Revenue US$ 57838 billion(2010)

Operating income US$ 8332 billion(2010)

Net income US$ 6338 billion(2010)

Total Assets US$ 68153 billion(2010)

Total Equity US$ 21476 billion(2010)

Employees 294000 (2010)

Divisions PepsiCo America, Asia, Europe, Africa

11 Apeejay School of Management, Dwarka,

The proposed merger is subject to certain closing conditions, including approval by

12 Apeejay School of Management, Dwarka,

A Brief History of PepsiCo

13 Apeejay School of Management, Dwarka,

14 Apeejay School of Management, Dwarka,

15 Apeejay School of Management, Dwarka,

16 Apeejay School of Management, Dwarka,

17 Apeejay School of Management, Dwarka,

18 Apeejay School of Management, Dwarka,

19 Apeejay School of Management, Dwarka,

List of tag lines of PepsiCo

1939–1950: "Twice as Much for a Nickel"

1950–1957: "Any Weather is Pepsi Weather"