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PROJECT REPORT ON

The Sales promotion activities of PepsiCo.

Submitted in partial fulfilment of the requirements for the award of the degree of BACHELOR OF BUSINESS ADMINISTRATION To Guru Gobind Singh Indraprastha University, Delhi

Under the Guidance of: Ms. Poonam Aggarwal

Submitted by: Ankur Sharma BBA VI Sem.(E) 06821301709

Session 2011 - 12

Acknowledgement
I take this opportunity to express my deep sense of gratitude to my faculty guide, Ms. Poonam Aggarwal for her constant encouragement, valuable suggestions and constructive criticism in

bringing this project to a successful completion. I extend my heartiest thanks to my faculty guide, for her help and suggestions whenever needed at various stages of the project. I am profoundly indebted to my parents whom affection and inspiration has always stood by me. I thank all my friends who have helped and encouraged me throughout the training period. Finally, I thank God for always being there with me.

ANKUR SHARMA

EXECUTIVE SUMMARY

Title of the project: The Sales promotion activities of PepsiCo. Functional area for STR: Marketing Introduction of the topic: Sales promotion is a marketing technique designed to create sales for a product over a defined period of time. Sales promotion can be directed at: 1. 2. The ultimate consumer (a pull strategy encouraging purchase) The distribution channel (a push strategy encouraging the channels to stock the product). This is usually known as selling into the trade Objectives and scope:

Objectives of the project:


1. 2. 3. To determine the actual sales of the company. To compare the financial position of the company against the rival coke. To know the marketing strategies of the company.

Scope of the project:


1. Data reported are based on January-December calendar years, with the majority of data covering 2010. Availability of data (primary and secondary) Changing trend of employee requirement Changing and unstable market trends Changing company approaches and policies Research tool: Questionnaires and the evaluation of the performance to check the effectiveness of training imparted. The questions were both structured and unstructured.

2. 3. 4. 5.

Sample size: I have selected a sample of 50 people.

Major findings: 1. The opening of the new lab in Science Park, adjacent to Yale's campus, is part of a major shift by PepsiCo to fundamentally improve the nutritional profile of its vast portfolio of foods and beverages. 2. Within the past two years, the company has added world-renowned clinical scientists and experts in nutrition, food safety, epidemiology and health policy to its staff.

Suggestions 1. 2. Advertisement of the companys products needs improvement. Coverage of rural areas should be more, as done by coke.

Conclusion 1. Financial position of the company is good as it covers large market shares, as compare to other competitors (Coke, RC cola).

CONTENTS S.No. 1 Certificate Details: 3 4 5 6 7 8 Acknowledgement Executive Summary Chapter-1: Introduction Chapter-2: Review of Literature Chapter-3: Research Methodology 7 19 22 Topic Page No. 1

Chapter-4: Data Reduction, Presentation and Analysis 25

9 10 11 12 figure no. 1.1

Chapter-5: Data Interpretation Chapter-6: Summary & Conclusions References/Bibliography Appendices Topic 4 Ps of marketing

31 32 36

page 8

1.2 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11

Indra Nooyi Nature of outlets Type of outlet Focus brand Types of scheme Promotional scheme Promotional scheme by outlet Promotional tools Purchase behaviour Promotional expense Factors for sales growth Outlet reaction

13 25 25 26 26 27 27 28 28 29 29 30

CHAPTER-1 INTRODUCTION 1. Introduction to the study:

Marketing can be defined as The process of ascertaining consumer needs, converting them into a product or service & then moving the product or service to the final consumer or user to satisfy such needs & wants of specific customer segment or segments with emphasis on profitability, ensuring the optimum use of resources available to the organization. Marketing is so basic that it cant be considered a separate function. It is the whole business seems from the point of view of its final results that is from the customers point of view Business success is not determined by the producer but by the customer. According to some scholars, marketing means, push the product to the market & pull the customer towards the business. We can say that the main aim of the marketer is to convert the want of the customer to the need of the customer. Thus marketing job is to convert societal needs into profitable opportunities. Hence, Marketing occupies an important position in the organization of a business unit. It is one of the important line activities of business operation. It consists of the ownership of goods. Goods are not complete products until they are in the hands of the customer. It is the process by which products are made available to the ultimate consumers from their point of origin. It consists of all those activities, which are meant to ensure the flow of goods & services from the producer to the consumer. Domestic markets, at one time safe from foreign invaders are now the happy hunting grounds of giant global corporation as well as global niche specialists. Major strides in technology have considerably shortened time & distance. New products are launched & astonishing pace are available worldwide in a short time. 7

Marketing Mix : ( 4Ps OF MARKETING)

Fig. 1.1 Marketing mix is a by-product of customer oriented marketing approach. According to W.J. Stanton, Marketing mix is a combination of four elements such as product, pricing structure, distribution system & promotional activities used to satisfy the needs of an organizations target market & at the same time achieves its marketing objectives. Every business enterprise has to determine its marketing-mix for the satisfaction of the needs of the customers. Marketing mix represents a blending of four elements namely product, price, promotion & distribution. Determination of marketing mix is an important decision which the marketing manager 8

has to take. The basic purpose of marketing mix is to satisfy the needs & wants of the customer in most effective manner. As the needs of customers & the environmental factors change, marketing mix is also changed.

Sale Promotion: Sales promotion is one of the 5 aspects of promotional mix. (The other four parts of the promotional mix are advertising, personal selling, direct marketing and publicity/public relations.) Media and non-media marketing communication are employed for a predetermined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples:1. Under the crown (UTC)2. Refilling.3. Point of purchase displays4. Rebates etc. Sales promotions can be directed at the customer, sales staff, or distribution channel members (such as retailers). Businesses can target sales promotions at three different audiences: consumers, resellers, and the company's own sales force. Sales promotion acts as a competitive weapon by providing an extra incentive for the target audience to purchase or support one brand over another. It is particularly effective in spurring product trial and unplanned purchases. Most marketers believe that a given product or service has an established perceived price or value, and they use sales promotion to change this price-value relationship by increasing the value and/or lowering the price. Compared to the other components of the marketing mix (advertising, publicity, and personal selling),sales promotion usually operates on a shorter time line, uses a more rational appeal, returns tangible or real value, fosters an immediate sale, and contributes highly to profitability. Activities, materials, devices, and techniques used to supplement the advertising and marketing efforts and help coordinate the advertising with the personal selling effort. Sweepstakes are among the best-known sales promotion tools, but other examples include special displays, coupons, promotional discounts, contests, and gift offers.My subject of study is that how the companys promotional schemes stimulates the products demand and how the retailers response over scheme, what nature of the outlets (i.e. seasonal &non-seasonal), how they know about promotional scheme (i.e. through SMS, salesman, CE etc), whether the outlets prefer to sell RGB [Regular glass bottle], PET [plastic bottle], CAN, Acquafina mineral water, Leher soda.

2.

Objectives of study:

1.

To know the sales promotion tools used by PepsiCo Company.

2.

To know about the sales promotion impacts on sale of the product of PepsiCo Company in CTC.

3.

To find out the best promotional tool preferred by the retailers.

4.

To know the peak periods of sales promotion activities.

5.

To analyze the strength & weakness of PepsiCo.

6.

To determine the standard of sales & services & public relation.

1.

Scope of study:

Scope of study on PepsiCo India Ltd, the area of the study is CTC. In the duration of study and project period, I observed that the market response of PepsiCo Product is in good position, but sales volume is not at par. The Sales promotion policy of our company is affected due to competitors Marketing strategy. 1. I prepared questioners on sales promotions to know the response of current promotion packs given by company to retailers in the market 2. Through this project, I will come to know that which type of promotional scheme outlets want. 3. I can easily know how the sale promotion affects the Annual Sales volume. 4. We can know the percentage of exclusive and mixed outlets of PepsiCo India products. 5. We can know the nature of outlets. (i.e. Seasonal vs. Non seasonal). 6. We can know the reaction of the outlets owners towards promotional schemes. 7. Future forecast of sale after getting sale promotion to the outlets. Hence we can say that, a well planed & future oriented sales promotion will give a good sales volume.

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2.
BRIEF HISTORY

Company Profile:

PepsiCo, Inc. is founded by Donald M. Kendall, President and Chief Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay, through the merger of the two companies. Pepsi-Cola was created in the late 1890s by Caleb Bradham , a New Bern, N.C. pharmacist. Frito-Lay, Inc. was formed by the 1961 merger of the Frito Company, founded by Elmer Dolin in 1932, and the H. W. Lay Company, founded by Herman W.Lay, also in 1932. Herman Lay Is chairman of the Board of Directors of the new company; Donald M. Kendall is president and chief executive officer. The new company reports sales of $510 million and has19,000 employees. 1.4.1 COMPANY PROFILE PepsiCo entered India in 1989 and has grown to become one of the countrys leading food and beverage companies. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India. PepsiCo India and its partners have invested more than U.S.$700 million since the company was established in the country. PepsiCo provides direct employment to 4,000 people and indirect employment to 60,000 people including suppliers and distributors. PepsiCo nourishes consumers with a range of products from treats to healthy eats that deliver joy as well as nutrition and always, good taste. PepsiCo Indias expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Miranda and Mountain Dew, in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks 11

Gatorade,Tropicana100% fruit juices, and juice based drinks Tropicana Nectars, Tropicana Twister and Slice. Local brands Lehar Evervess Soda, Dukes Lemonade and Mangolaadd to the diverse range of brands. PepsiCos foods company, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay products are free of trans-fat and MSG. It manufactures Lays Potato Chips, Cheetos extruded snacks, Uncle Chips and traditional snacks under the Kurkure and Lehar brands. The companys high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers. Frito Lays core products, Lays, Kurkure, Uncle Chips and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary nutritional labelling on their packets. The group has built an expansive beverage and foods business. To support its operations, PepsiCo has 43 bottling plants in India, of which 15 are company owned and28 are franchisee owned. In addition to this, PepsiCos Frito Lay foods division has 3state-of-the-art plants. PepsiCos business is based on its sustainability vision of making tomorrow better than today. PepsiCos commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers

1.

Manufacturer : PepsiCo. 12

2. 3.

Country of origin : United States Introduced : 16 June 1903

Fig.1.2 Indra Krishnamurthy Nooyi

(born October 28, 1955 in Chennai, Tamil Nadu,India) is the chairwoman and chief executive officer of PepsiCo, the world's fourth-largest food and Beverage Company. On August 14, 2006, Nooyi was named the successor to Steve Reinemund as chief executive officer of the company. She was effectively appointed as CEO by PepsiCo's board of directors on October 1, 2006.According to the polls Forbes magazine conducted, Nooyi ranks fifth on the 2007 list of The World's 100 Most Powerful Women.

1.4.2Mission and vision of PepsiCo


Our mission is to be the worlds premier consumer Products Company focused on convenient foods & beverages. We seek to produce financial rewards to investors as we provide opportunities for growth & enrichment to our employees, our business partners & the communities in which we operate & in everything we do, we strive for honesty, fairness & integrity.

Vision of PepsiCo 13

PepsiCos responsibility is to continually improve all aspects of the world in which we operateenvironment, social, economic- creating a better tomorrow than today. Our vision is put into action through programs & a focus on environmental stewardship, activities to benefit society, & a commitment to build shareholder value by making PepsiCo a truly sustainable company. MILESTONES 2008 Milestones PepsiCo Honoured With 2008 Energy Star Partner of the Year Award 2007 Milestones PepsiCo signs Maria Sharapova for International endorsement of Gatoradeand Tropicana Tropicana launches Tropicana Healthy Heart with Omega-3s, the first national orange juice to include omega-3s Pepsi launches Design Our Pepsi Can National Promotion Indra Nooyi receives the Outstanding American by Choice Award PepsiCo makes Fortune magazines 100 Best MBA Employers list Pepsi, Diet Pepsi and Mountain Dew topped the 2007 Brand Keys Customer Loyalty Engagement Index which tracks consumers relationships with brands Mountain Dew Unveils unique limited edition aluminium bottles PepsiCo named a 2007 Working Mother Best Company for Multicultural Women PepsiCo wins two awards Best Environmental/Wildlife Campaign and Best Cause Marketing Event -- at Fifth Annual Cause Marketing Halo Awards 2006 Milestones PepsiCo India re-launches Miranda PepsiCo, the National Hockey League (NHL) and the National Hockey League Players' Association (NHLPA ) sign an exclusive multi-year beverage and snack deal

1.

PepsiCo, National Hockey League and National Hockey League Players A s s o c i a t i o n sign multi-year deal, giving PepsiCo exclusive rights in t h e beverage, sports beverage, bottled water and snack categories. With this deal, Gatorade becomes the official sports drink of NHL.

1.4.3 Marketing System Product:

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Pepsi carbonated water, sugar, added flavour package & drinking water. Introduction of Natural colour drink is on the cards.

Positioning: Besides retailing, the company focuses on institutional sales, special event to make the product available for additional mileage. Price: The company maintains a steady price due to tight competition. It encourages more retail margin as compared to the competitors. However, company does not believe in compromising the quality of the product. Promotion: Schemes & incentives are also given keeping on eye on the competitive activity from time to time. Company has also introduced a consumer awareness scheme to create better brand awareness of the product. Publicity: A company as promotional measure for value sale gives publicity. Adequate point of purchase materials, adequate display materials & participation in important local festival are also a part of promotional measure of the company.

Channel of Distribution: Distributors are appointed all over Orissa for marketing the product. Customer executives appointed by the company support them. Marketing Strategy: Besides stamping the urban market, the companys focus is on penetration in the periphery rural area.

1.4.5 Product Range of PepsiCo


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Fig. 1.3

PepsiCo Brands 16

1.

Pepsi

The mother product. It is a carbonated water 2. Slice

-is a line of fruit-flavoured soft drinks. 3. 7 Up

-is a brand of a lemon-lime flavoured non caffeinated soft drink.4. 4. Miranda

-is a brand of soft drink available in fruit including orange flavors.5. 5. Mountain Dew

-is a caffeinated, sweet, citrus flavoured soft drink produced.6. 6. Aquafina

-Mineral Water:

SWOT Analysis of PepsiCo

1.

STRENGTH OF PEPSICO INDIA:

1. Its brand. 2. Huge market coverage, company existence not only in urban area but also in the rural area 3. Large number of product line to satisfy consumer. 4. Verity of scheme for the retailer throughout the year. So, that retailer will earn huge profit and also get satisfaction after selling PepsiCo product. 5. Company also gives time to time schemes for the consumer. So that, final consumer interest for repurchase &enjoy the benefit. 6. PepsiCo Indias Agri-Partnerships with farmers help farmers across the country earn more. 7. Good CSR Image.

2.

WEAKNESS PEPSICO INDIA:

1. In distribution channel distributor is the additional person which is not responsible for the company, because there is no direct link between company and the retailer. 2. Sales person also not feel that they are working for company, they think only for the distributor. 3. Pepsi the brand is not appreciated by the BBSR consumer, which is mother product.

3.

OPPORTUNITY OF PEPSICO INDIA 17

1. Pepsi could develop new products or product designing of Pepsi Brand for the BBSR market 2.Competitors have poor products such as Fanta, limca. 3. End-users respond to new ideas, such as launch other flavour of slice. 4. Pepsi have a great chance to extend to rural area.5.New specialist applications, such as Sponsorship, trade fair, free sample.

4.

THREATS OF PEPSICO INDIA

1. Market demand very seasonal .2. Retention of key staff is critical. 3. Retailer distract from core business, such as retailer demanded to keep slice onlyand not for Pepsi. 4. Legislation could impact; mean local taxation policy and business policy of state& central government.

CHAPTER-II REVIEW OF LITERATURE

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1.

Sales promotion is diverse collection of incentive tools, mostly, short term designed to stimulate quicker and/ or greater purchase of particular products/services by consumers (Kotler, 1998)

2.

Sales promotions are classified as price and non- price based on the nature promotions (Campbell and Diamond, 1992; Blattberg and Neslin, 1990).

3.

Sales promotion is one of the four aspects of promotional mix. (The other three parts are advertising, personal selling, and public relations.)-scribd.

4.

Sales promotions targeted at the consumer are called consumer sales promotionsWikipedia

Sales: Sales are the activities involved in selling products or services in return for money or other compensation. It is an act of completion of a commercial activity. The "deal is closed", means the customer has consented to the proposed product or service by making full or partial payment (as in case of instalments) to the seller. Academically, selling is thought of as a part of marketing, however, the two disciplines are completely different. Sales often form a separate grouping in a corporate structure, employing separate specialist operatives known as salesmen(singular: salesman). Sales are considered by many to be a sort of persuading "art". Contrary to popular belief, the methodological approach of selling refers to a systematic process of repetitive and measurable milestones, by which a salesman relates his offering of a product or service in return enabling the buyer to achieve his goal in an economic way. A sale is completed by the seller, the owner of the goods. It starts with consent (or agreement) to an acquisition or appropriation or request followed by the passing of title (property or ownership) in the item and the application and due settlement of a price, the obligation for which arises due to the seller's requirement to pass ownership, being a price he is happy to part with ownership of or any claim upon the item. The purchaser, though a party to the sale does not execute the sale, only the seller does that. To be precise the sale completes prior to the payment and gives rise to the obligation of payment. If the seller completes the first two above stages (consent and passing

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ownership) of the sale prior to settlement of the price the sale is still valid and gives rise to an obligation to pay. Objectives of Sale Promotion 5. 6. 7. 8. 9. 10. 11. Stimulating business user or household for demand product Improving the market performance of middle men and sales people To attract new customer. To increase impulse selling. To encourage greater use by existing customers. Superior Merchandizing. Increase stocks & sales pus

Consumer Sales Promotion Sales promotions targeted at the consumer are called consumer Sales promotions. Consumer sales promotions are steered toward the ultimate product users typically individual shoppers in the local market. Following are some of the key techniques used in consumer-oriented sales promotions. 12. Consumer sales promotion techniques:

1. Price deal: A temporary reduction in the price, such as happy hour 2.Loyal Reward Program: Consumers collect points, miles, or credits for purchases and redeem them for rewards. Two famous examples are Pepsi Stuff and Advantage. 3.Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage marked on the package. 4.Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price (for example, 25 percent extra). 5.Coupons: coupons have become a standard mechanism for sales promotions. 6.Loss leader: the price of a popular product is temporarily reduced in order to stimulate other profitable sales 7.Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for delivery. 8.On-shelf couponing: Coupons are present at the shelf where the product is available. 9. Checkout dispensers: On checkout the customer is given a coupon based on products purchased. 10.On-line couponing: Coupons are available on line. Consumers print them out and take them to 20

11.Mobile couponing: Coupons are available on a mobile phone. Consumers show the offer on a mobile phone to a salesperson for redemption. 12. Online interactive promotion game: Consumers play an interactive game associated with the promoted product. See an example of the Interactive Internet Ad .

Trade Sales Promotion: Sales promotions targeted at retailers and wholesale are called trade sales promotions. Trade sales promotions target resellers wholesalers and retailers who carry the marketer's product. A trade sales promotion is targeted at resellers wholesalers and retailers who distribute manufacturers' products to the ultimate consumers. The objectives of sales promotions aimed at the trade are different from those directed at consumers. In general, trade sales promotions hope to accomplish four goals: 13. Develop in-store merchandising support, as strong support at the retail store level is the key to closing the loop between the customer and the sale. 14. Control inventory by increasing or depleting inventory levels, thus helping to eliminate seasonal peaks and valleys. 15. Expand or improve distribution by opening up new sales areas (trade promotions are also sometimes used to distribute a new size of the product). 16. Generate excitement about the product among those responsible for selling it. Some of the most common forms of trade promotions profiled below include point-of-purchase displays, trade shows, sales meetings, sales contests, push money, deal loaders, and promotional allowances.

CHAPTER-III RESEARCH METHODOLOGY


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1. 2. 3. 4. 5. 6.

Research Type: descriptive Sampling Design: simple random Sample Size: 50 Sample Location: Delhi Research Instrument: questionnaire Analytical Tool: pie charts

The methodology used in conducting the research work on PEPSICO INDIA LTD major emphasis on its Sale Promotion which involved the following steps: 1. Defining the problem and deciding research Objective: 2. Shortfall of the sales volume after giving huge promotional activity towards outlets. 3. To get various information about PepsiCo Outlets. 4. Develop the Research plan: A plan was developed how to collect the required information i.e. whom to contact for gathering the relevant data. Data is the foundation of all research The methodology used in conducting the research work on PEPSICO INDIA LTD major emphasis on its Sale Promotion which involved the following steps:

1. Defining the problem and deciding research Objective: 2. Shortfall of the sales volume after giving huge promotional activity towards outlets. 3. To get various information about PepsiCo Outlets. 4. Develop the Research plan.

A plan was developed how to collect the required information i.e. whom to contact for gathering the relevant data. Data is the foundation of all research .It is the raw materials for any research functions. Therefore, it requires great care to select the sources of data. Data or facts may be obtained from several sources. Data sources can either be primary or secondary 22

1.

Primary data: Collection of primary data was conducted by visiting various retail outlets for the preparation of the thesis report. Personal Interview Questionnaire.

2.

Secondary data: The sources from which secondary data was collected: Press releases of the company. Book, Magazines and Newspaper. Newsletters and in-house journals. Websites such as: www.pepsicoindia.com, http://www.google.com/,www.youngistaan.com www.wikipedia.com,

3.

Contact Method: At first I directly met the retail stores & introduced myself as a BBA student & then collected the data required for my project work such as Name of outlet, Address, Contact person, Contact number, Type of shop, Monopoly or Mix counter, Visi cooler is given by the company or own freeze, Stock in Visi, Quantity of each brand& at last Problems & Demands.

Questionnaire

1.Name of Outlets: . 23

2.Contact Number: . 3.Location of Outlets: 4.Name of Distributor: 5.Nature of Outlets: Seasonal: Non-Seasonal 6.Type of Outlets: Mixed: Exclusive: 7.Focus Brand: RGB/PET/CAN/Mineral Water/Soda 8.How you know about Scheme: SMS/ Salesmen/ C.E/ Other sources 9.Which Scheme you know: 10.Which type of Scheme you received: 11.Which type of scheme you appreciate: 12.How the processes to getting scheme are: Slow/ Fast. 13.Does the sales man daily visit your store? Y/N 14.Does the salesman tell you about companys Scheme: Y/N 15.Is Any Agreement: Yes/ No. If yes, then 1.with PSI: 2.with CCX: 16.Do you know the name of C.E? 17.Promotional tools Available: Rack/Visi/Signboards/pop Display 18.\Do you purchase PepsiCo products if offers are given to you even if you have a large stock? 19.Why do you sell Pepsi products? High margin/High Customer demand/More schemes/Product quality & packaging/heavy Advertisement 20.Are you satisfied with the total marketing effort of PepsiCo? Y/N 21.Problem/Suggestion

Signature

CHAPTER-IV DATA REDUCTION, PRESENTATION AND ANALYSIS


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1.

Nature of Outlets

Fig. 4.1 The survey revealed that about 90% of the total outlets are non seasonal, that means they sale PepsiCo product throughout the year. And rest 10%outlets are seasonal.

2.Type of outlets:

From the above figure it is clear that out of 20 outlets, 9 Outlets are exclusively Pepsi (PSI) counters, another 5 outlets are of mixed type & the rest 6outlets are exclusively Coca-Cola (CCX) counters. 3. FOCUS BRAND

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Fig. 4.3 From the above study I knew that most of the outlets focus on glass bottles. Other few outlets focus on PET, CAN, Mineral Water or Soda. 4.TYPES OF SCHEMES

Fig. 4.4 The above figure shows that the regular promotional scheme is very much popular because the retailers want permanent income throughout the year. They also like various promotional schemes such as UTC and Scratch card.Incentive based scheme is not much popular because in this scheme some target is given to the owners of the outlets.

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5.PROMOTIONAL SCHEME RECEIVED BYOUTLETS

Fig. 4.5 UTC, Refilling & Scratch card Scheme is most popular & known scheme received by maximum outlets .Gift and Discount /Rebate schemes are not received by maximum outlets because they have some conditions . 6. PROMOTIONAL SCHEMES APPRECIATED BY THEOUTLETS After the survey, I came to know that the retailers appreciate mostly two types of promotional schemes i.e. UTC & Refilling because; here the owners get Benefits of the scheme from sales person on the spot of purchase

Fig 4.6
27

7.Promotional tools Available at different outlets

Fig. 4.7

8. Effect of promotional Schemes on Purchase Behaviour of Retailers

Fig 4.8 28

9.Promotional expenses throughout the year

Fig 4.9 During summer (Mar-June) the demand for cold drink is high soPepsiCo reduces the promotion

10. Factors affecting sales growth

Fig 4.10 29

From the above survey it is clear that sales promotion activity such as high margin, more schemes & heavy advt. has a large impact on sales growth. 11. Reaction of Outlets on overall marketing activities of PepsiCo

Fig 4.11 Most of the outlets are satisfied but some of the outlets report insufficient supply of products and delay in redressed of customer grievances such as repair of visi cooler etc.

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CHAPTER-V DATA INTERPRETATION

1.

Fig. 4.1 showed that about 90% of the total outlets are non seasonal, that means they sale PepsiCo product throughout the year. And rest 10%outlets are seasonal.

2.

From the figure 4.2 it is clear that out of 20 outlets, 9 Outlets are exclusively Pepsi (PSI) counters, another 5 outlets are of mixed type & the rest 6outlets are exclusively Coca-Cola (CCX) counters

3.

the regular promotional scheme is very much popular ,as can be seen form fig. 4.4, because the retailers want permanent income throughout the year. They also like various promotional schemes such as UTC and Scratch card .Incentive based scheme is not much popular because in this scheme some target is given to the owners of the outlets.

4.

UTC, Refilling & Scratch card Scheme is most popular & known scheme received by maximum outlets .Gift and Discount /Rebate schemes are not received by maximum outlets because they have some conditions to be fulfilled for getting it.

5.

From t h e s u r v e y I o b s e r v e d t h a t P e p s i C o p r o v i d e s v a r i o u s t y p e s o f promotional tools to the outlets. The company has provided Visi Coolers and Signboards to maximum outlets but, the supply of Racks and POS Display is not so significant though they can increase sales volume.

6.

According to the Survey it is found that maximum retailers want to purchase more products when promotional offers are given to them even if they have a large stock.

7.

During summer (Mar-June) the demand for cold drink is high so PepsiCo reduces the promotion 31

8.

From the above survey it is clear that sales promotion activity such as high margin, more schemes & heavy advt. has a large impact on sales growth.

9.

Most of the outlets are satisfied but some of the outlets report insufficient supply of products and delay in redressal of customer grievances such as repair of Visi Cooler etc

CHAPTER-VI SUMMARY AND CONCLUSIONS The most basic objective of any sales promotions is to provide extra value that encourages purchase. Short term sales increase is required to reduce inventor. Promotions like price-off or bonus pack gives large & immediate benefit. Sales promotion schemes like price-off or free gift induce customers to buy a new brand. Trade promotions are designed to gain distribution and shelf space. Sales promotions give the consumer an incentive to buy. Sales promotion can be measured objectively to judge their success. PepsiCo gives various promotional tools (Visi Cooler, Racks, Signboards, POP displays) and profitable schemes to the retailers that increase their sales volume. Promotional expenditures ultimately increase sales volume.

Merits of Sales Promotions:


1. 2. 3. 4. 5. 6. 7. 8. 9. 10. It stimulates in the consumers & attitudes towards the products. It creates a better incentive in the consumers to make a purchase. It is a demand creator. It gives direct inducement to the consumer to take immediate action. It is flexible. It can be used at any stage of any product introduction. Sales promotion leads to low unit-cost. It is an effective supports of sales. It helps the salesmen makes his efforts more productive. The promotional tool is the most effective to be used in increasing the sales volume.

Limitations
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1. 2.

The company doesnt declare all the data & the internal data are kept confidential. Though every sincere & possible effort has been made to collect the data, some retailers were uncooperative in providing the actual data.

3. 4. 5. 6. 7. 8.

The project is done in CTC may not represent the figure of the whole India. Since the data collected was representative based the accuracy is questionable Some questions created confusion among the respondents. The respondents were not interested to fill up the questionnaire due to lack of interest. The sample has taken only 20 respondents. They may not represent the whole population. Lack of secondary data Collection of the recent brochures, in house journals, etcof the company was relevant to a little extent. But most of the necessary information is not available in the company.

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SUGGESTIONS

1. Company should give knowledge to the salesman about the promotional Scheme so that they can better understand the importance of promotional activities.

2.There should be a regular meeting between distributor &company about the implementation of sales promotion

3.Fast repairing of ViSi Cooler will gain the faith & goodwill of the customer

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4.Company should provide racks to more outlets to keep Pet bottles for display.

5.Company should adopt the promotional activities properly and noting a trial and error method.

6.Company should arrange training or Seminar programs for retailers to make them aware about the companys sales objective and enhance their selling ability.

7.Company should provide more profitable schemes so that the retailers can happily accept it.

8.Company should spend more on Promotional schemes on the weaker products like Pepsi, Made etc. to boost up Sales

CONCLUSION

SALES PROMOTION is a promise made to the consumers & retailer by the company. Sales promotion, not only has Functional and Mental dimensions but also Social and Spiritual dimensions. The challenge in front of Indian organizations today is to first understand and then satisfy the needs of the customers. The needs of the customers today are experiences and not just the products. The Indian Organizations have to concentrate on delivering the experiences to the customers leading to satisfaction and association with all the dimensions of the brand. These experiences can be delivered by involving the customer in the supply chain which demands improvement from the organization in terms of training the employees and aligning the culture to deliver value to the customers. The participation of the customers can be ensured by using novel methods of communication and 35

branding. The Profit and Sustainability of Indian Brands will depend on how efficiently and quickly the organization can adapt to these new demands of the customers.

BIBLIOGRAPHY
BOOKS: 1. 2. Saxena, Ranjan, Marketing Management, TATA McGraw HILL, New Delhi, Third Edition, P.231 Kolter, Philip, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha, Marketing Management, PEARSON Prentice Hall, New Delhi, Twelfth Edition, P.112 3 Ramaswamy, V. S., S Namakumari, Marketing Management, MACMILLAN INDIA LTD., Third Edition, P.209 4. C.R.Kothari, Business Research methodology , New age publication, P.125 5. Bryan, Alan, Emma Bell, business research method, OXFORD, second Edition.,P.250

MAGAZINES, JOURNALS & NEWS PAPERS 1 Business world 36

2. Economics Times 3.The Times Of India . Websites: www.pepsicoindia.com, www.wikipedia.com, www.google.co.in, www.youngistaan.com www.scribd.com

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