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INTRODUCTION
India with a population of more the 100 crores is potentially one of the largest consumer
markets in the world with urbanization and development of economy, tastes and interests of
the people changes according to the advance nation.
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 can be further
classified into Cola, Lemon, Orange, Mango & Apple segments etc.
Marketing includes all the activities like promotion, distribution, advertising etc. to fulfill
the demands of all segments of consumers. Marketing is also convert social needs into
profitable opportunities. So this topic provides all the essentials to the theoretical
knowledge with practical knowledge and to inculcate the efficiency. It is also a requirement
for the company to improve its service and product quality to achieve the ultimate goal.
India where more than 50% of the total population exists below poverty line the consumer
can’t afford such high price for soft drinks. As a result the trading activities of the soft
drinks industry are concentrated in and around big cities and town where the purchasing
power of population is considered comparatively high.
Soft drinks industries in India has annual sale of about 5000 crores with per capita
consumption of soft drinks at a low of eight bottles per annum is due to price factor.
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So, marketing is both philosophy and technology. It is technology because it suggests ways
and means for effective production and distribution of goods and services in the market to
give maximum satisfaction to the consumer.
In this regard the marketing management with have to apply to marketing technology in the
conceptual philosophy of a system.
It is the process of system analysis in the marketing management for effective research and
can be defined, “systematic objective and exhaustive study of tasks relevant to any problem
in the field of marketing”.
PURPOSE OF STUDY
A project cum training is an essential part of MBA curriculum. This study was conducted
on “A comparative assessment of the Pepsi performance in the cold drink market in
JODHPUR and promotional activities in JODHPUR region”.
It also helps to make improvements in service and quality of the Pepsi product, for their
long term existence in the market and earning profit.
Simultaneously, it is also helpful to me to learn about the consumer’s behavior and their
demand for the beverages in particular area (market).
To know the brand acceptance of Pepsi in the cold drink market in JODHPUR.
To determine the factors which persuade the retailer for sale of Pepsi
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To find out the company’s position & market share in the soft drink market.
Simultaneously, it is also helpful for me to learn the consumer behavior and observe their
attitude toward demand of particular products practically.
To know the stock position of Pepsi and its competitors at different outlets.
To know per day sale of Pepsi brand and its competitors in crates.
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To know how many outlets are covered with glow signboard of Pepsi?
SCOPE OF STUDY
The main scope of this research is ascertaining the various methods to increase the sales
volume and distribution activity of concerned company.
The methods include regular measures to make the position in the market and taking
measures to confirm the brand position. One of the most important aspects of this study is
also to increase the market segment for the products.
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• Two way transportation (one filled bottles to market and second empty
bottles from market
• Questionnaires.
• Sample size.
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• The respondents were too busy to give exact answer to all questions.
• There is chance of under estimation of sales and income as it is the nature of human
beings.
• The results may not hold good in the long run as taste and preference of human
beings are subject to change over a period of time.
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INDUSTRY PROFILE
OVERVIEW
PepsiCo is a world leader in convenient foods and beverages, with 2006.Revenues of more
than $35 billion and more than 168,000 employees across the world. Its world renowned
brands are available in nearly 200 countries and territories.
PepsiCo is among the world’s largest consumer products companies focused on convenient
foods and beverages. They were proud on their products are some of the world’s best
known brands and they are enjoyed by billions of people around the world every day. There
products are recognized for their quality, taste and value, and increasingly, for their
contribution to healthier diets.
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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
become a publicly-traded company in March 1999 through one of the largest initial public
offering in the history of the New York stock exchange.
PBG generates nearly $11 billion in annual sale. It operates in the United State, Canada,
Greece, Mexico, Russia, Spain and Turkey, accounting for more than one half of the Pepsi-
Cola beverage sold in north America and about 40% of the Pepsi-Cola system volume
worldwide.
OUR CUSTOMER
In the U.S. and Canada, most of PBG's volume is sold in supermarket, following by the
convenience and gas channel, where Pepsi brand have the market-share lead. The balance of
volume is sold in mass merchandising outlets, restaurant and other fountain account.
In the U.S., Canada and Mexico, our sales people interact directly with most customers to
sell and promote Pepsi products (Direct Store Delivery). In other international territories,
PBG serves customers with a combination of Direct Store Delivery and third-party
distributors.
Among the services we provide to our customers are proven methods to grow not only
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Pepsi brand sales, but sales in the overall beverage category. Ultimately, our goal is to help
our customers grow their beverage business by making our strong product line-up readily
available to consumers at every shopping occasion.
OUR ORGANIZATION
The people at PBG reflect the company’s emphasis on superior sales capability and service.
In North America more than one-half of PBG employees work in sales, following by nearly
one-third in operation.
Our organizational structure, based on a general management model, reflects the same
priorities. The Vice President/General Managers of PBG's market units lead marketing and
sales efforts in contiguous geographic areas with common major customers. We designed
our organization to give our market units the autonomy to serve the needs of individual
customers, develop market-specific strategies, and respond to local marketplace dynamics.
From the General Manager to the frontline customer representative, the entire PBG sales
force competes on a local level to serve existing customers and to win new accounts.
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The Company's success hinges on the thousands of face-to-face transactions our frontline
employees conduct with customers every day. That is an exciting, empowering career
proposition for the individuals who make up PBG's sales force and for the teams that
support and lead them. The Company is an equal opportunity employer and values the
diversity of its workforce.
As an independent entity, PBG benefits from a much sharper definition of its role and is
able to execute its business strategy more effectively on a local market level. PepsiCo's
focus is on what it does best, which is developing innovation, building its powerful brands
and creating the world-class marketing programs to support them. And, as PepsiCo's largest
bottler, we at PBG can do what we do best: making, selling and delivering more of those
brands, more profitably than ever before.
PepsiCo’s mission is “To be the world premier consumer Products Company focused on
convenient food and beverages”. We seek to produce healthy financial rewards to investors
as we provide opportunities for growth and enrichment to our employees, our business
partners and the Communities in which we operate. And in everything’s wed, we strive for
honesty, fairness ail, At PepsiCo, we believe that as a corporate citizen, we have a
responsibility to contribute to the quality of life in our communities.
Our vision is put into action through programs and focus on environmental stewardship,
activities to benefit society, and a commitment to build shareholder value by making
PepsiCo a truly sustainable Company.
Soft drinks are a non- alcoholic beverage. It is artificially flavored and contains no fruit or
pulp. India with more than 110crores population is one of the largest consumer markets in
the world after China. Soft drinks is a typical consumer product purchased by individuals to
quench thirst and secondly for refreshment.
Searching for the point of origin of Indian soft drinks, I first document on gold spot this
was the first brand soft drink in India. It was introduced by Parle during later part 40’s .cola
giant; coca cola was the foreign soft drink to be introduced in India in 1965.
Coca-Cola made a very good beginning and dominated the whole scheme right
from the world go. It faced no competition at that time.
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Indians are very fond of foreign goods, services etc. due to prolonged foreign
rules.
Parle Exports Pvt. Ltd. introduced Limca, Lemony soft drink in later 1970. Before Limca
was introduced they had tentatively introduced Cola, Pepino, which they had to withdraw
soon in the face of battering conformation with Coca Cola.
Three of four groups of Indian companies, which had the required production capacity,
started their own brand of Cola, orange, Lemon but failed to achieve their goal on national
basis.
India always has love and hate relationship with MNC’S which gave significant
opportunities to soft drink industries in India when Coca-Cola decided to bind up it was
being wasted.
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This left a large vacuum in popular soft drink market, and a vista was opened to any
company with requisite technical, marketing and organizational skills.
The existence of coca cola from India in 1977 accelerated the growth of several Indian soft
drinks in the form of tetra pack entered the market, among the Fruity, jump-in, and tree top
where the prominent one. Till 1977 there equipped bottling plants and the distribution
network were of no use. It looks them one year to develop new formula to survive and
gradually came up with lemon, orange, and cola.
However Parle the pioneer in the soft drinks blazed its way to national prominence with
their product “Thums -up” bearing the slogan “Happy days are here again”. This
particular slogan helped to win over the loyalists or addicts to Coca-Cola.
Indian soft drink industry started at a phenomenal rate, and all Parle products, Gold Spot,
Limca and Thums -up became the brand leader in their own segment.
In spite of all these, the drink market still had large gaps, as claimed by soft drink
manufacturers. To fill these gaps, many soft drink concentrate and squashes flooded the
market .The Indian soft market basically offered three flavors i.e. Orange, Lemon and Cola.
1988 saw the entry of the multinational company PEPSI to the Indian market, 11 years after
the existence of Coca-Cola. It had name, fame and edge of being one of the best in the game
and it also offered stiff competition to Parle and Coke.
HISTORY OF PEPSI
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Pharmacist CALEB it to cure the disease “DISPARSIA”, It is from this word that was
related to Pepsi. Soon it entered the American market as soft drink which at that time was
mostly dominated by Coca-Cola, but soon Pepsi was able to dominate the Cola market and
thereafter it has been no looking back. Pepsi and Coca-Cola are engaged in a ferocious cold
war that has taken the whole world by storm. Pepsi stands 51st position among the fortunate
500 companies of the world.
Its total capital is approx $3000 crores and total sales annually are worth $37 crores, half of
which comes from beverages and other half from food division. The beverages arm of the
PepsiCo. Is Pepsi-Cola company and the snack food company is called Frito -lay-Inc.
Previously there were three tags “Yehi Hai Right Choice Baby”, “Nothing Official about
It”& “Yeh Dil Mange More” which was immediately ring a bell-it’s to be a Pepsi. Pepsi in
short span of its operations in India has found a place in hearts and minds of the Indian
consumers. The success has primarily been due to the innovative and passionate Indian
team which has been built over the years. Pepsi is a trendsetter managed and run by
Indians, where important decision is taken locally.
Pepsi started its operation in India in 1988 in Kanpur and since PepsiCo. Has set up a fully
integrated operation India viz. manufacturing, research and development, marketing
distribution and franchising – covering fruit/vegetable processing, export, snack and food
beverages, In 1993 PepsiCo. Set up a holding company to further accelerate growth through
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new initiatives and joint ventures PepsiCo is fully committed to India and the national
objectives of development of technology and accelerating exports and employment. It has
invested 500crore in India to develop the local market. Pepsi has distributed exclusive
franchises in India to bottle its total products.
There 34 bottling plant of Pepsi in India. Pepsi directly controls some and rest is under
various franchises.
Pepsi has set up a concentrate plant at Channo, District Sangur, Punjab, with an investment
of 55 million. The state of the art plant house a world – class laboratory where soft drinks
from all over the world are tested.
This concentrate plant supplies Pepsi. 7-up teem, Miranda, Orange, Apple & Lemon flavors
to all Pepsi bottling plant in south Asia. Pepsi has 34 bottling plant in India out of which
8company are owned and 26 are owned by Indian franchises. PepsiCo has invested heavily
on up- gradation of this bottling plant and has put 5 green field projects in backward areas
such as Jaipur, Bazapur in U.P., Bharuch in Gujrat, and Sonapur in W.B.and Naclamangala
in Kernatka. New project are coming out Maharashtra and Tamil Nadu. In addition to the
Company Owned Bottling Operation [COBO], Pepsi has 26 Franchises Owned
Bottling Company [FOBO] units in India. These franchises manufacturers are also
planning to install substantial additional capacities. In last two years PepsiCo’s franchisees
have put up bottling plant in Jaipur, Bhopal, Hajipur [Bihar], Guntur [A.P.] and Guwahati
[Assam].
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JUICE
Pepsi Co. plans to launch juices in big way in India, there by helping the farmer in fruit
procurement. PepsiCo agriculture scientist has undertaken research on mango, guava and
orange and these fruits would be the priority area for the juices launch in India. Presently
Pepsi has one juices brand.
EMPLOYMENTS OPPERTUNITIES:
Pepsi provide direct and indirect employment to person in supplying it’s raw material,
packing materials, distribution vehicles, glass bottle, plastic carets, display rack, fridge etc.
and to small artisans, painting and small trader in market places activity. All the Pepsi
business in India is either in industries with backward linkages with farmer or in service
industry being highly distribution oriented. The Pepsi system operate over 300 trucks
(Direct Operations), 8000 three wheeler (Distributors) and at least 1000 push carts, serving
over half a million outlets in India. By the year 2005 the no. of outlets to be served are
expected to be doubled.
DEVELOPING SPORTS:
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Today Pepsi is one of the main sponsors for sports related activities in India. It has
continued to promote up coming new players of cricket, football, hockey etc. Pepsi was the
official sponsors of the world cup 2007.
Pepsi has developed a Pepsi cricket academy, which would develop over 500 young cricket
enthusiasts in next 5 years. Similarly Pepsi cricket coaching camps and clinics are held to
coach young boys in north and south.
COMMUNITY RELATIONS:
Most of the bottling plant Pepsi is located in backwards area, there by giving huge
employment opportunities in this area. Pepsi, as responsible company, undertakes social
project in and around the bottling plant.
These include support to the education centre, sponsors inoculation camps, providing free
health check up, initiating sanitation, drives, promoting literacy drives and helping villages
to put up bus shelter etc.
REVENUES GENERATIONS:
It is estimated that PepsiCo, and its franchises generates over Rs.600crores to the exchequer
by the collection of excise and sales tax.
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INTRODUCTION OF ORGANISATION
VARUN Beverages pvt Ltd. is franchisee of PepsiCo. India. VARUN Beverages Ltd. a
rupees 17 crores unit was promoted by the family of RJ GROUP in the year 1996 with the
proper infrastructure approved by PepsiCo Headquarter and the unit went into production,
subsequent and marketing operation from 1997. Mr. Ravi Jaipuria is MD of this company
the plant has 57 production staff 30 executives and 32 tem members within marketing and
seller functions during the pick session i.e. Between April-July the no. of production staff
at times is increased to take care of increased production functions.
The unit has capacity of bottling 400-600 bottles per minute or3000 crates of 24 bottles on a
daily basis, i.e. when production schedule is on through out the day with three shift
production system. The plant follows international quality audit standard for the purpose of
maintaining quality controls in the quality of the product because the quality control
function, by far is the most important criteria for purpose of competing in terms of quality
in the contest of the market competition.
This bottling unit at Boranada(Jodhpur) has created a source of employment for a large no.
of population residing in the Rajasthan and has also come out with quality/treated water
resources, which is now being thought of diverting in to near by agriculture sector as an
ongoing source to facilitate of management. This unit in the year to come should one of the
most important industrial zones in this part of the country and this reality manufacturing
and marketing unit should be a set of attraction as far as commercial activity are concerned.
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Profile of VBL
Labors
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ORGANIZATIONAL HIERARCHY
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The process of manufacturing of Aerated water (soft drink) like Pepsi brand
product is divided into five main parts such as:-
1) WATER TREATMENT.
2)SYRUP MAKING.
3)BOTTLE WASHING.
4)FILLING.
5)TESTING OF PRODUCT.
WATER TREATMENT
Water treatment is very essential in soft drinks plant as the nature and quality of varies from
place to place. To set uniform and standard water, the process of treatment is carried on.
The water taken out from bore well having depth of 500m by the help of motor pump &
pipe lines. are connected to the storage tank where is pre-chlorinated by chlorinator & then
by the help of pipeline comes to a treatment tank called “Coagulation tank” where to this
water, solution of different strength of bleaching powder, ferrous sulphate, hydrated lime
are added through dosing pump to reduce the alkalinity hardness, kills the bacteria and the
pH become 7.5.Mechanical stripper mixes the chemical & then suspended matter settles
down as sludge& clear water passes to retention tank. From this tank the water passes
through sand filter containing fine sand and pebbles & carbon filter containing granular
carbon & finally through the water polisher ,micron filter, UV lamp to ensure clear &
sanitary water for use.
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Further water is used in bottle washer & boiler needs softening .For this purpose, the water
from storage tank after passing through two water filter beds containing fine sand and
granular carbon respectively comes through a bed of resin where it is softened. This
softened water is essential to use in the boiler & bottle.
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Firstly the water should be taken out from the earth through motor from bore well which is
about 500m deep. After that it store in the underground tank which is also know as storage
tank having capacity of 1.5 lakh liter at that time the hardness of water is 6.8 PPM(Parts Per
Million) it has two in number. Then it reaches at coagulation tank having capacity of 80,000
liters in which ferrous, lime and bleaching powder is there which is used to remove the
hardness of the ground water then it reaches to intermediate tank and after that it passes
through sand filter in which
small pebbles and fine sands are there ,where they remove small particles and transfer to the
ACF i.e. activated carbon filter in which mainly chlorine is used having volume of 30 cubic
meter per gram then it passes through 5 micron cartilage and UV light to remove small
microbes.
SYRUP MAKING
For the syrup making of the particular brand, calculated quality of sugar, water, activated
carbon (powder) & by flow super cell known as filter aid are taken into a sugar space to
enter stream & also filter by motor with agitated sugar syrup called raw syrup is prepared
by dissolving the sugar with continues stirring and heating by steam supplied by oil fried
boiler. This hot syrup by the help of pump is filtered through a filter press attached with the
series of quality filter paper to separate out carbon particles. Clear hot syrup by the help of
SS pipeline passes through water P.H.E. for cooling then another P.H.E. circulated by
glycol for further cooling. The chilled syrup comes to the mixing tank, which is cleaned and
sanitized prior to use. After circulation of sugar quantity by Brix Hygrometer, concentrate
are added and mixed thoroughly by the mechanical stirrer filter to the tank. This syrup is
known as finished syrup ready to drink the concentration mainly. The liquid part are also
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kept in a cold store, the temperature of the finished syrup is fixed in the room temperature
is also maintained by air conditioner. All the containers used in the syrup making are
cleaned and sanitized by sodium bi- carbonate, strong chlorine and hot caustic soda
solution.
BOTTLE WASHING
Bottle washing is an important part in the soft drink plant. The empty durable and restorable
bottles used are returned from market in plastic crates, and fed to bottle washing machine
(washer).
The machine has double end system with circular chain to carry the bottles. Caustic soda, tri
sodium–phosphate, sodium glyconate are added to the caustic tanks filled in with water
heated by stream supplied by bathe boiler. The empty bottles enter to the caustic solution
and finally washed with water through spray-jets fitter dared discharged in other end. The
washed bottles after proper inspection are directed to filling machines through conveyor.
SU-260 and SU-773 are used for bottle cleaning, shinning and mold removing
concentration.
FILLING
Finished syrup and treated water lime are concentrated to a dosing pump, which mixes
syrup and water in the ratio of 1:5 and syrup mixed with water enters to carbonate tank to
mix with carbon-di-oxide gas. Which are preserved in cylinders for use? The cylinder is
connected through carbon-di-oxide pressure and temperature of liquid; we use recording
control (Taylor). The syrup passed through PHE that is cooled itself by the circulation of
chilled glycol supplied by chilling compressor. To run the machine for chilling F-22 gas is
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used. The syrup being chilled easily mixes with carbon di oxide and enters to filter for
billing .The filter is fitted with filing valves and lift cylinders. The lift cylinder functions
pressure of air supplied by an air compressor. The syrup known as beverages in this stage is
filled in the cleaned bottle, which are durable in the nature and returnable by the buyer.
After beverages is filled in bottle goes it goes to the crowner where with the help of crown
corks the bottle are sealed(crowned) to protect the carbonation, flavor outside
contamination and spoilage. The finished product are coded decoding machine and
inspected properly by inspection
Light while passing through the conveyor fitted with SS chains. The empty plastic rated
passing through a conveyor enter to crates, which are durable in nature and returnable by
buyer, put on plates and sent shipping for shipment. The entire container in contact with
syrup are properly cleaned and sanitized by bicarb soda, hot water, hot Caustic soda
solution and strong chlorine base.
TESTING OF PRODUCT
Finally the finished syrup during bottling is tested in laboratory to meet the parameters and
also to get the standard and quality product. To maintain the standard and informality in
products, the sugar contents and carbonation in the filled bottle are checked in regular
intervals by Brink hydrometers refract meter and pressured gauge. A digital pH meter tests
the pH. Electronic digital balance is used to the weight chemical to conduct test in the lab.
The purity of carbon dioxide is checked by a carbon dioxide purity tester. The microbiology
test of the products and water used in syrup making and production are also done to ensure
that the product is free from any bacteriological contamination. To conduct the micro test,
hot sterilizer incubator autoclave, pads filler membranes are product used.
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Sugar
Flavor
Water
Carbon di oxide
Crown cork
Glass bottle
Plastic crate.
Sugar
High purity crystal sugar is required to produce the sugar syrup for soft drink. The main
supplier of sugar for VARUN beverages Pvt. Ltd. is M/s KCP Ltd.chennai. The usual
requirement of sugar is around 800 gm par carat for all flavors.
Flavor
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Pepsi food Ltd. is supplying all essence of flavor for VARUN Beverages Pvt. Ltd. from
their plant Chennai, Bhavnagar (Punjab).
Water
The required water of VARUN Beverages Pvt. Ltd. is being met from the high yielding
deep boring well with pumps. Adding softening plant & DM Plant so as to meet the
required quality of water then treats the raw water taken out from these well. Water quality
is being strictly adhered through regular sampling & analysis.
Carbon dioxide
Crown Cork
VARUN Beverages Ltd. takes crown cork from Manksic Crown Ltd., Bhopal and
Ghaziabad respectively.
Glass Bottle
VARUN Beverages Pvt. Ltd. takes flint and green glass bottle from Hindustan National Glass Ltd.
Tapovan (Hrishikesh).
Plastic carats
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VARUN Beverages Pvt. Ltd. takes plastic crates from Neelkamal Plastic Ltd., Nasik and
Supreme Industries Ltd., Nasik.
PRODUCT PROFILE
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SWOT ANALYSIS
After doing 8 weeks field work and survey I can take it out the SWOT analysis
for VARUN Beverages Pvt. Ltd. and Pepsi Brand.
• Strength
• VBL uses state art and fully automatic machines and technology for the
production and bottling of the soft drink.
• It has a very strong network and built market and currently holds all the parts
of the state.
• It has wide range of product varieties & takes back breakage, burst bottles
etc.
• Though it has strong brand equity, brand image, it can survive in the most
competitive situation.
• It has built market & market share and holds more % with respect to its
competitors.
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• Weakness
• Promotional activities in the rural market are not up to the mark as compared
to the urban market.
• Brand Pepsi in the cola flavor is one of the popular lagging behind its nearest
competitor, only due to high sugar content and less thrilling taste.
• Opportunities
• Although in the cola market there are many competitors, Pepsi still has the
opportunity to enlarge its market share because the cola in the market is
quite monotonic. Most of the end user is young people. There are still some
people who do not like the taste of the cola. So we can try to provide some
other taste of cola such as adding some lime juice. We can change the flavor
in order to meet different taste of different people.
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• New innovative idea for advertisement like road show like “ bheja fry 7up
try” & mountain dew campaign
• Threats
• As to the threats, all of us know that Pepsi-Cola and Coca-Cola have the
completion for about 80 years. Although Pepsi-Cola have won several times
during this completion. The market share of Pepsi-Cola is a little bit smaller
than Coca-Cola.
• There is another threat nowadays, some local cold drinks such as Sudha
Dairy and Anuj Dairy cola have takes their feet in the market.
• One of the products of their competitors in clear lime and lime flavor as a
very good in market share due to its taste.
• Coca-Cola is now spending more & more to boost up the market share &
sale.
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MARKETING STRATEGY
Marketing Strategy is the complete and unbeatable plan designed specifically for attaining
the marketing objective of the firm. The market objective indicates what the firm indicates,
what the firm wants to achieves, the marketing strategy provides for achieving them.
The marketing is not just idea. It is a well outlined plan, and there are different ways to
formulating it. Basically formulating of marketing strategy consists of two main steps.
Selecting a target market, assembling the marketing mix, actually, the target marketing and
marketing mix together constitute the marketing strategy of the firm.
When the Pepsi food company entered in the Indian soft drink market, the market was
already prevailed by coke and previously it was Parle. Pepsi tried to establish in India with
a unique marketing policy.
Pepsi took into consideration of youth segment target market. Though the advertisement of
Pepsi highlighted the style of living of young generation with different walk of life, Pepsi
brought in its advertisement different stalwart’s personalities from fields like young cine
stars, sport stars and famous personalities from different fields. It has attracted the young
generation and of course increase the sale of Pepsi, also organized many national and
international sports events to attract the young generation.
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2. Price: - Product price are fixed by Pepsi Co India according to competitors product
price.
3. Place:- Pepsi has a strong channel of distribution, and intermediaries command the
distribution work.
Plant - Depot - Distributor - Consumer.
By this simple distribution, Pepsi is doing well. The company is trying to reach
every remote village area. The company has succeeded to some extent in reaching
its target.
4. Promotion :- In the specific, sales promotion methods are those sales activities that
supplement both - personal selling and advertising and co-ordinate them and help to
make them effective such as display, shows and exposition and demonstrations and
other recurrent selling efforts not in ordinary route.Pepsi has variety of tools and
techniques of sales promotion. Like for example sales promotion letters, catalogs, point
of purchase (POP), display, customer service program and demonstration of free sample.
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thecon sum er.
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en tiledtoredeemspecific trial, bu ildloy alty
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product freeor inpart re-pu rch aserate, solicit
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upan
s
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.C oupon sm ay
bedistribu tedbye-m ail,
bym ediaadv ertisements,
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dealersonp urchase.
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invitedtocom p eteonbasis aw arenessan dstim u
late
ofcreativeskills.T helatter interest inthebrand
isbasedo nth ech anceo r acqu aint consum ersw ith
C onsumer luckfactor. bran du sag eandb enefits
5. contestsand bu ildtrafficat thestore
luckyd raws precipitatebrand
purchase. Obtain
consum er feedback,
pjrom oteadv ertisimen t
them eo fthecom p any.
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annormaltrade T opu shm oresalesto
6. D
isco
unts
an
dcashdiscoun
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ery
T hosespecial display s, T oattract trafficat th e
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at retail stores, rem ind
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storetosupp ortthesaleo f im pu lsebu yin
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d. visibilitytoth
ead vertising
cam paig n.
39
VARUN BEVEREGES Ltd.
Advertising and also promotion activities play a vital role in entire marketing efforts.
Without these aspects a quality product can not survive in the market. Advertising and sales
promotion tools are most essential for the modern global marketing. This chapter has
therefore been devoted to the studies of advertising and sales promotional activities in
VARUN Beverage Pvt. Ltd. The two basic objectives for carrying out such various
promotional activities by VARUN Beverages Pvt. Ltd. is “To generate more sales as well as
to create and maintain an image of its product” VBL. carries out its promotional activities
as controlled and integrated programmers of communication and material design present its
soft drink to the perspective customers. It also helps in communicating the need satisfying
of soft drink to facilitate the sales eventually to contribute towards the profit in long run.
The sales used VBL. for fulfilling the various purposes for its promotional activities
are the following:-
Food ‘N’ Fizz
Space Club
Payaas bujyhao profit badhao
Agreement
GOD(Glass on deposit)
Displaying equipments
Scratch card, lucky draw & prize.
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VARUN BEVEREGES Ltd.
MERCHANDISING POLICY
In today’s fast moving industry and highly competitive market, only those products are
likely to be purchased which are capable of hitting the impulse of the consumers. The
products appeal should be able to penetrate and get embedded into the perpetual space of
the consumer’s mind.
The concerned product should induce to the consumers. Pepsi believes that “Jo Dikhta Hai
Wahi Bikta Hai” i.e. any product which is visible is bound to be sold.
METHODS OF MERCHANDISING
Visi cooler placement
Glow signboard
Paintings
Crate Stacking
Umbrella
Banners
Display
Special Schemes
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VARUN BEVEREGES Ltd.
COMPANY
DEPOT
DISTRIBUTORS
RETAILERS
CONSUMERS
ABOUT DISTRIBUTORS
At first, soft drink is supplied to distributors. Retailers cannot take the delivery directly
from the company. They have to take it from their respective or nearest distributors. The
distributors selected on the basis of assurance given by them regarding minimum sales,
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VARUN BEVEREGES Ltd.
which they have to maintain annually. The selection is also done on the financial position
and reputation of distribution in the market. As for example, first priority is given to those
people who are in cigarette business. Depending upon market, each distributor in its initial
stage, deposit some security money. This amount varies between five thousands to the
thousand. The distributors, at first have to seek the permission of the sales department for
the number of cases of soft required by them.
After getting the proper authority from the sales department, they take the delivery from the
shipping department paying the requisite either in cash or as demand draft.
The distributors can be dropped if they fail to achieve the required target to sales. They can
be also dropped when they don’t follow the instructions given by the company or when they
charge high price or when they are engaged in black marketing, loading etc. But the
company has not dropped any of its distributors till now.
The supply of soft drinks to the distributors depends upon the ups and downs in the sales.
But, in the initial stages, the distributors have to sell up to a minimum target set by the
company or as decided by an agreement between the company and the distributors. In the
last stages soft drink is supplied as and when demanded by the distributors.
ABOUT RETAILERS
The distributors select the retailers. There is no relation between the company and its
retailers. On the other hand there are no definite and fixed criteria for the selection for
appointment of retailers from the side of distributors.
Any one like “Panwala”, “Cigarette shop” or any other shopkeeper can have the stall for
the sale of soft drinks and they are called or dealers. They have to give assurance to the
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VARUN BEVEREGES Ltd.
concerning distributors for better sales and at the time of taking delivery they have to
deposit the security that is the change for the empty bottles with specified purchasing price.
Generally, there is no compulsion on the part of distributors to provide the transportation
facilities to their retailers, but the distributors of the big areas like JODHPUR,
Muzzaffarpur, JODHPUR provides the transportation facilities to their respective retailers.
The distributors and retailers are independent to sell as they want but are controlled to some
extent by the company also, as they have to give some assurance regarding minimum sale.
It happens so because they are given some incentives also. They are fully independent to
gear up the market, as they want.
COMPARATIVE PRODUCTS
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VARUN BEVEREGES Ltd.
Coca-Cola,
1. Clola Pepsi
Thums Up
In above table, I have shown product target in the market. Both companies try to substitute
each other product in the market. When a company don’t fulfill the demand of market then
other company substitute that product with own product. In the market many time seen that
consumer demand a product according to his desire, but due to lack of supply he switch
over of substitute product. So, companies always want with substitute product for enlarging
his market share.
Here, Thums Up and Coca-Cola is substitute for Pepsi, Sprit is substitute for 7up and
Mountain Dew, Fanta is substitute for Mirinda & Limca is substitute for Miranda Lime.
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VARUN BEVEREGES Ltd.
2000ml
1 Pepsi √ − √ − − √ − −
2. Pepsi diet − − − − √ − − −
3. Pepsi Gold − − − − − √ − −
4. Mirinda √ − √ − − √ − − √
5. Mirinda Lime √ − − − − − − − −
6. M. Sorbet − − − − − √ − − −
7. 7 up √ − √ − − √ − − √
8. M. Dew √ − − − − √ − − √
9. Pepsi Can √ − − √ − − − − −
10. 7 Up Can √ − − √ − − − − −
1 1. Mirinda Can − − − √ −
− − − −
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VARUN BEVEREGES Ltd.
14. Slice − √ − − √ − − √
15. Aquafina − − − − − − √ −
16. Tropicana √ − − − − − √ −
2000ml
4 27
−
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VARUN BEVEREGES Ltd.
4 09
6. M. Sorbet − − − − − − 567 −
4 09
4 09
500 −
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VARUN BEVEREGES Ltd.
7 34 − −
2000ml
1 Pepsi 8 − 10 − − 20 −
− 48
2. Pepsi diet − − − − 20 − −
− −
3. Pepsi Gold − − − − − 25 − −
4. Mirinda 8 − 10 − − 20
− − 48
5. Mirinda Lime 8 − − − − − − −
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VARUN BEVEREGES Ltd.
6. M. Sorbet − − − − − 25 − −
7. 7 up 8 − 10 − − 20 −
− 48
8. M. Dew 8 − − − − 20 −
− 48
9. Pepsi Can − 15 − 25 − − − −
10. 7 up Can − 15 − 25 − − − −
14. Slice − 10 − − 22 − − 45
20
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VARUN BEVEREGES Ltd.
15. Aquafina − − − − 8 − 13 −
16. Tropicana 15 − − − − − −
70 −
− −
1500ml
1. Coca-Cola 8 − 10 − 20 − −
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2. Thums up 8 − 10 − 20 − −
43
3. Sprite 8 − 10 − 20 − −
43
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VARUN BEVEREGES Ltd.
4. Fanta 8 − 10 − 20 − −
43
5. Limca 8 − 10 − 20 − −
43
6. Maaza − 10 − − 25 − 45
7. Coca-Cola Can − − − 20 − − −
8. Thums Up Can − − − 20 − − −
9. Sprite Can − − − 20 − −
− −
− −
− −
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VARUN BEVEREGES Ltd.
13. Kinely − − − − − 15 −
− −
INTERPRETATION OF OUTLETS
TPYES OF OUTLETS
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VARUN BEVEREGES Ltd.
1 0 O t h e r
9 P h o n e b o o t h s 1 G e n e r a l / K i r a n a
8 I c e - c r e a m /
I c e - c e n t e r s
7 c o l d d r i n k s
c e n t r e
7 C in e m a H a ll
5 H o t e l
2 s w e e t s h o p
4 R e s t a u r a n t s
3 P a n s h o p
Interpretation: Many types of retailers in the market to sell the Pepsi & Coke products I
have taken that list form company & classified that shops according to company guidelines.
General and Kirana stores is measure thing for company because their share in one - third
So company always try to make good relationship ship with them because 20% sell come
form them.
MARKET SHARE
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VARUN BEVEREGES Ltd.
Over all market share of the cold drinks in JODHPUR (MARWAR JN. &
BAR )
2. CCI 30
4. TOTAL 100
PCI
CCI
OTHERLOCALBRAND
Interpretation: PCI market share is little bit short in comparing to Coke for enlarging more
market share PCI will have to invest more in the market and it advertisement.
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VARUN BEVEREGES Ltd.
PCI 26 7.8
CCI 72 21.62
OWN
%
CI
PI
Interpretation: From the above diagram, it is clear that 89 % of Visi cooler is of Coca-
Cola while 1.6% is that of Pepsi and own is 9.23 %.
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VARUN BEVEREGES Ltd.
CCI 70 41.2 %
% of Glow Board
PEPSI
COCACOLA
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VARUN BEVEREGES Ltd.
Interpretation: From the above diagram it is clear that 17 % of glow sign board is of Pepsi
while 83 % is that of Coca-Cola.
MARKET SURVEY
RESEARCH METHODOLOGY:
All the findings and conclusion obtained on the survey done in the working area. With the
limit, I tried my best to select the sample representative of the whole group. During my job
training I maintained different routes during my dealer survey. I have collected data from
the Depot of JODHPUR( MARWAR JN. & BAR) under the organization itself.
Data-sources:
Retailers/Dealers (Cold drinks stalls, Ice stalls, Hotels, Restaurants Sweet shop, Pan
Shop, General Stores, Telephone Booths etc.) Depot internal Company’s Records
etc.
Research – approaches:
Survey
Research - instrument:
Interview Schedule
Sampling - plan:
Sampling unit Distributor Retailer
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VARUN BEVEREGES Ltd.
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VARUN BEVEREGES Ltd.
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VARUN BEVEREGES Ltd.
All the work was limited in JODHPUR area, so the findings should not be generalized. The
finding of survey will be strictly based on the response of consumers, retailers/dealers, since
it is difficult to ascertain the authenticity of their statement.
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VARUN BEVEREGES Ltd.
(1) The whole analysis shows that are only two companies dominating in the soft drinks
market - Pepsi- Cola & Coca - Cola. There is neck-to-neck competition between
these two companies.
(2) Coke has invested more in the market. Distribution of - VISI Coolers and display of
Glow Signs board is far more than Pepsi. So, more investment is needed to break the
brand establishment of Thums Up and Sprite.
(3) In all the areas in JODHPUR, almost all the retailers are not satisfied with the
distribution network of the Pepsi products.
(4) Most of the retailers want glow signboard chilling equipments, which they are
asking from long time.
(5) In Cola segment, Thums-up and in lime segment, Sprite is the main competitor of
Pepsi.
(6) Most of the consumers don’t like the taste of Pepsi due to its sweetness and low fizz.
(7) All the products of Pepsi like 7 up & Slice are not provided when the retailers
demand it.
SUGGESTIONS:
(1) Pepsi should come out with an advertisement, which can block the customers’ mind
and can change the customer’s perception about the product.
(2) Pepsi is sweet and low fizz soft drink that everybody knows, so lots of people do not
like, therefore to catch the customers, Pepsi should come with more fizz like
Thums-up.
(3) Executives should take the feedback from the service of the salesman and the
distributors.
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VARUN BEVEREGES Ltd.
(4) Salesman should have better interaction with the retailers which results in by
company from time to time.
(5) The criteria to provide Glow Signboard, Flax board, VISI Cooler, and OYC
should be changed and a separate department should handle this.
(6) All the Pepsi products should be provided at required level to snatch the
competitor’s market e.g. 7 up for Sprite, Mirinda for Fanta and Slice for Mazza
which is dominating the market at present.
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VARUN BEVEREGES Ltd.
BIBLIOGRAPHY
BIBLIOGRAPHY:
WEBSITES:
www.pepsico.com
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VARUN BEVEREGES Ltd.
www.pepsizone.com
www.cocacola.com
www.amul.com
www.parle.com
www.notjustsurveys.com
QUESTIONNAIRE
Address: ....................................................................................
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VARUN BEVEREGES Ltd.
(c) Both
7. Q. In your opinion which medium is more effective for the sales advertisement?
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VARUN BEVEREGES Ltd.
8. Q. Do you think aggressive advertising further help you it increase the sales
volume of Cola?
10. Q. Would you like any change in distribution channel & any suggestion for
betterment of Pepsi?
.......................................................................................................
Thankin
g you
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