Chapter I INTRODUCTION

INTRODUCTION Pepsico entered in India 1989 and has grown to become the country largest selling beverage and food products. Pepsico was first made in New Bern, North Carolina in the United States in the early 1890s by pharamacist Caleb Bradham. On August, 28, 1898, Brads Drink was changed to Pepsco and later. Trademarked on June 16, 1903. There are several theories on the origin of the word Pepsico.

Chapter II ABOUT INDUSTRY

ABOUT INDUSTRY PepsiCo is a world leader in convenience foods and beverages, with 2007 revenues of more than $39 billion and more than 185,000 employees across the world. Its world renowned brands are available in nearly 200 countries and territories. PepsiCo entered India in 1989 and has grown to become the countrys largest selling 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 in 1989. In India, PepsiCo provides direct employment to 4,000 people and indirect employment to 60,000 people including suppliers and distributors.

PepsiCo Indias expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options Diet Pepsi and 7Up Light; hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, and 100% natural fruit juices and juice based drinks Tropicana, Tropicana Twister and Slice. Our local brands Lehar Evervess Soda, Dukes Lemonade and Mangola complete our diverse spectrum of brands

PepsiCos snack food company, Frito-Lay, is the leader in the branded potato chip market and was amongst the first companies to eliminate the use of trans fats and MSG in its products. It manufactures Lays Potato Chips; Cheetos extruded snacks, Uncle Chipps and traditional namkeen snacks under the Kurkure and Lehar brands. The companys high fibre breakfast cereal, Quaker Oats, along with Lehar Lites, low fat and roasted snack options enhance the choices available to the growing health and wellness needs of our consumers. Frito Lays core products, Lays, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary nutritional labeling on their packets.

The group has built an expansive beverage, snack food and exports business and to support the operations are the groups 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. In addition to this, PepsiCos Frito Lay snack division has 3 state of the art plants. PepsiCos business is based on its sustainability vision of making tomorrow better than today. Our commitment to living by this vision every day is visible in our contribution to our country, consumers, farmers and our people

The Quaker Oats Company was formed in 1901 when several American pioneers in oat milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour and William Heston had established the Quaker Mill Company. The figure of a man in Quaker clothes became the first registered trademark for breakfast cereal and remains the hallmark for Quaker Oats today. In Cedar Rapids, Iowa, John Stuart and his son, Robert, and their partner, George Douglas, operated the largest cereal mill of the time. Ferdinand Schumacher, known as "The Oatmeal King," had founded German Mills American Oatmeal Company in 1856.

Combining The Quaker Mill Company with the Stuart and Schumacher businesses brought together the top oats milling expertise in the country as The Quaker Oats Company. The first major acquisition of the company was Aunt Jemima Mills Company in 1926, which is today the leading manufacturer of pancake mixes and syrup. Gatorade was acquired in 1983. In 1986, The Quaker Oats Company acquired the Golden Grain Company, producers of Rice-A-Roni. PepsiCo merged with The Quaker Oats Company in 2001. LATIN AMERICAS FOODS The Latin Americas Foods business includes operations in Brazil, Argentina, Colombia, Peru and Venezuela. This business continues to grow organically and through acquisitions like the Lucky snacks business in Brazil.

PEPSICO INTERNATIONAL

PepsiCo International includes all PepsiCo businesses in the United Kingdom, Europe, Asia, Middle East and Africa. Pepsi-Cola began selling its products outside the United States and Canada in the mid-1930s, opening in the United Kingdom in 1936. Operations grew rapidly beginning in the 1950s. Brands include Aquafina, Gatorade and Tropicana. In addition to brands marketed in the United States, PepsiCo International brands include Seven-Up and many local brands.

PepsiCo began its international snack food operations in 1966. Often PepsiCo snack food products are known by local names. These names include Walkers in the United Kingdom, Smiths in Australia, Matutano in Spain, and others. The company markets Frito-Lay brands on a global level, and introduces unique products for local tastes.

HISTORY OF PEPSI COLA

Pepsi-Cola was first made in New Bern, North Carolina in the United States in the early 1890s by pharmacist Caleb Bradham. On August 28, 1898, "Brad's drink" was changed to "Pepsi-Cola" and later trademarked on June 16, 1903. There are several theories on the origin of the word "pepsi".

The only two discussed within the current PepsiCo website are the following: 1) Caleb Bradham bought the name "Pep Kola" from a local competitor and changed it to Pepsi-Cola.

2) "Pepsi-Cola" is an anagram for "Episcopal". A large church across the street from Bradham's drugstore. There is a plaque at the site of the original drugstore documenting this while PepsiCo has refuted this theory.

Another theory is that Caleb Bradham and his customers simply thought the name sounded good.

As Pepsi was initially intended to cure stomach pains, many believe Bradham coined the name Pepsi from either the condition dyspepsia

(stomachache or indigestion) or the possible one-time use of pepsin root as an ingredient (often used to treat upset stomachs). It was made of carbonated water, sugar, vanilla, rare oils, and kola nuts. Whether the original recipe included the enzyme pepsin is disputed.

In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore into a rented warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in six-ounce bottles and sales increased to 19,848 gallons. In 1905, Pepsi received its first logo redesign since the original design of 1898. In 1906, the logo was changed again. In 1909, automobile race pioneer Barney Oldfield endorsed Pepsi-Cola in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer before a race" In 1923, Pepsico went bankrupt due to high sugar prices as a result of World War I, assets were sold and Roy C. Megargel bought the Pepsi trademark. Eight years later, the company went bankrupt again, resulting in a reformulation of the Pepsi-Cola syrup formula.

During The Great Depression, Pepsi gained popularity following the introduction in 1934 of a 12-ounce bottle. With twelve ounces a bottle instead of the six ounces Coca-Cola sold, PepsiCo turned the price difference to its advantage with a slick radio advertising campaign which was the first use of a jingle in advertising. "Pepsi cola hits the spot / Twelve full ounces, that's a lot / Twice as much for a nickel, too / PepsiCola is the drink for you," encouraged price-watching consumers to switch to Pepsi, while obliquely referring to the Coca-Cola standard of six ounces a bottle for the price of five cents (a nickel), instead of the twelve ounces Pepsi sold at the same price. Coming at a time of economic crisis, the campaign succeeded in boosting Pepsi's status. From 1936 to 1938, PepsiCo's profits doubled.

Introduced in 1964, Diet Pepsi was the United States's first national diet soft drink

FUTURE PLAN OF PEPSI

PEPSI EXPLORING TO ENTER WHITE BEVERAGES
Taking forward its increased thrust on the health platform, food and beverages major PepsiCo is toying with the idea of entering the milk and/or soya-based beverage category. "We are investigating entering the white drinks category which could be milk or even soya based. It would definitely be a value-added product where we could create a niche for ourselves," Mr Rajeev Bakshi, Chairman, PepsiCo India, said.

Incidentally, products revolving around the "health" platform have emerged as the growth driver for the company this year. According to Mr. Bakshi, among the company's product portfolio, Diet Pepsi saw the largest growth in 2005 followed by juices and water. "The carbonated business has also done well this year, and we have seen a double-digit growth in value sales, despite the fact that we increased prices of our soft drinks by about 18% this year due to cost pressures," he said. Meanwhile, health drink Gatorade, which PepsiCo launched this year, has also been able to generate volumes. "By the end of this year, sales of Gatorade will be about 20% of that of Tropicana (in value terms) and it is growing. We would be rolling out newer flavours of Gatorade over the next few months," said Mr Bakshi, who is bullish on the premium category and feels that this segment could well be the growth trigger for the FMCG sector, which has instead been concentrating on the mass market. The company is diversifying into newer businesses in the agriculture domain as well. Even as PepsiCo has identified seaweeds as a key driver for exports and its Florida oranges project in Punjab is running on track, the company is now looking at producing organic fertilisers in India. "We would be producing organic fertilisers, which would

increase yields of cash crops by 20%. A completely new technology is being utilised for this project," he said, declining to divulge any further details. For the Florida Oranges project, the company along with Government of Punjab is in the process of setting up two plants in the State for processing fruits. The plants would be run by Pepsi which would also then be selling the intermediate product (concentrate/juice) to other firms, in India or abroad. Currently, around 4 million saplings (of Florida oranges) have been planted in Punjab in tie-up with the Punjab Government. Though there would be a gestation period of about 6-7 years before the project bears fruit, it would allow the country to compete at the global level in the juices category. Currently, Brazil and the US are the major producers for juice.

PEPSICO IN INDIA
This $ 30,40 billion, New York (US) based Pepsi Company, had to start from scratch after entering the country in 1989. Deep blue Pepsi, is a broad based food and beverage Company, deriving more than 60% of its sales and operating profits from its snack foods and restaurant business. Pepsi started its commercial production in 1990 with plants, one at Channo (Sangrur) and other at jahura (Distt. Hoshiarpur). Pepsi drink which was introduced six year back, has now become the house hold name thought the country.

The Marketing efforts of Pepsi in the first three years were so successful, that Pepsi had taken major market share of Parle and Parle has to face hard times. PepsiCola has been positioned as a drink for the young. Its popular slogan YEHI HAI RIGHT CHOICE BABY go to show that the appeal is significantly for the younger generation in a popular, much aired

commercial, Bollywood star Sachin Tendulkar. began to cdroon in the tune only after hed guzzled, the right cola, made the smart choice (A-Ha!). Behind the hype in an effort invisible to consumer Pepsi pumped in Rs.300 crore to add muscle to its infrastructure in bottling and distribution. At present Pepsi is at war with Coke at National level.

VISSION OF PEPSI IN INDIA

Provide exceptional strategic leadership in the Pepsi. India System resulting in consumer and customer preference and loyalty through Pepsi commitment to them, and in a highly profitable Pepsi corporate branded beverage system.

MISSION OF PEPSI IN INDIA

Create consumer products, services and communications customers service and bottling system strategy processes and tools in order to create competitive advantage and deliver superior value to : Consumers as a superior beverage experience. Consumers as an opportunity to grow profits through the use of finished drinks. Bottlers as an opportunity to make reasonable to grow profits and volume. TCCC as trademark enhancement and positive economic value added. Suppliers as an opportunity to make reasonable profits when creating real value added in an environment of system wide team work, flexible Business system and continuous improvement. CCI associates as superior career opportunity.

Indian society in the from of a contribution to economic and social Development

JAIPURIA WITH PEPSI

With a legacy of decades in the industrial arena, the Jaipuria Group of companies now stands at the one thousand five hundred crore mark . The group boasts of its several world class business arenas like those of textiles, bottling, education ,information technology, food chain and retailing, apart from numerous other business segments. JAIPURIA GROUP is a Rs.1500 crore, family controlled, reputed business house with over a century of operations in diversified fields. The group as on today can boast of expertise and leadership in the fields of food and beverages ,textiles and real estate development with varied interests in a wide range of products and services. The Jaipuria group under the leadership of the three brothers S.K Jaipuria, R.K Jaipuria, and C.K Jaipuria has today become one of the leading business houses of the country.

The Jaipuria Group, since 1975 has been a renowned and reputed in the field of soft drink bottling. Since its foray into this field the group bottled almost all the major

soft drink brands that existed in India like Coca- Cola ,Thumps up , Limca and Spirite etc. Today the Jaipuria Group commands almost 60% of the Pepsi business in India . With an impressive turnover and plants equipped with the latest technology . The Jaipuria Group can boast of being the biggest name in the country when it comes to soft drink manufacturing.

The Group has a major presence in most part of the country, with its 22 fully operational plants running successfully across the country.

Pepsi Co is a world leader in convenient foods and beverages, with revenues of about $ 25 billion and over 142,000 employees . The company consists of the snack

businesses of Frito-Lay international , the beverages businesses of Pepsi-Cola North America , Gatorade/ Tropicana North America and PepsiCo Beverages

International, and Quaker Foods North America , manufacturer and marketer of ready-to-eat cereals and other food products . PepsiCo Brands are available in nearly 200 countries and territories. Many of PepsiCos brand names are over 100 years old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi Cola and Frito Lay. Tropicana was acquired in 1998 and PepsiCo merged with the Quaker Oats Company including Gatorade in 2001. PepsiCos success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of our people.

The following are the major areas of operations of the Jaipurai Group.

 Food and Beverages Textiles Information Technology Real estate Education

PRODUCT PROFILE

Pepsi Company limited manufacturing many brand of the soft drinds to satisfy the need of consumer, each brand has its own flavour and taste beca use different brands are liked by different segments of customer. There are ten brands of of Pepsi named as following

Pepsi Pepsi diet 7Up Mountain Dew Mirinda orange Mirinda lemon Slice Aquafina

Evervess Soda Tropicana

Carbonated drinks:

1.

Pepsi

It

is

the

main

carbonated

product

of

the company. Of the 173 outlets studied maximum were used Pepsi but the number of consumption per day was very poor in quantity. A major portion of this consumed by the exclusive outlets, which were mostly located in the town.

White Drinks:
2.7Up:

It is the main product of the company. I I have worked with the distribution have seen that 7Up is the highest selling product of the company. Out of 173 outlets same numbers of outlets were consumed 7upwith very high quantity. So this is the most popular product of Pepsi.

3. Mountain Dew:

Out of 173 outlets visit I have seen that of outlets quantity. were consumed this product , in very less this product was used as the alternative 7Up, but more or less 30% of the total

4. Slice:

Slice is only juice product of Pepsi. In all outlets This product is available because of its demand among children and adults

Mirinda:
There are two types of flavor of Mirinda. One is Mirinda Lemon, Mirinda Orange. Though both are the same in the market position, but Lemon flavor is the most demanded.

Aquafina :
Aquafina is only water product from Pepsi. During the work of two monthwith the distributon of pepsi I have found that Aquafina usre was either the elite class or middle class customer.

EVERESS (SODA) This is a soda drink and doesnt come under the category of CSDs. It has no colour ,no taste no flavour . It is

generally used as a supplement with alcoholic drinks . The adults generally consume it. PESI DIET It is considered as cola drink and it contains balanced calorie contents and it is better option for health conscious people.

ADVERTISING
Advertising is a promotion of goods or services, by a sponsor (a firm or person) who can be identified and who has paid for this communication. The purpose of advertising is to led to an immediate sale, or a sale at some later date when the customer may find a need for the product. The purpose of advertisement is to sell something a good service, idea, person or place, either now or later this goal, reached by setting specific objective that can be expressed individual adds. that are incorporated into an advertising campaign recall again from the buying decision process that buyers go through a series of stages from unawareness to purchase. Thus the immediate objective of an and may be to move target customers to the next stage in the hierarchy say from awareness to interest.

specific advertising objective will be dictated by the firms overall marketing strategy. Typical objective are : 1. Support personal selling Advertising may be used to acquaint prospect with sellers company and product, easing the way for the sales force. 2. Improve Dealer Relations : Wholesalers and retailer like to see a manufacturer support its product. 3. Introduction New Product : Consumer need to be informed even about line extensions that make used of familiar brand name. Varun Beverage lays emphasis on advertising at the core centers. They lay their banners and hoardings at all the important places and see to it that they do space on media. The product like Dew, Slice, 7UP and Mrinda Lemon and Mrinda Orange belong to one group i.e. Pepsi, advertise on nation side basis for its products, by hireling time and space on media. To promote the product and to create the awareness of the product every year they are spending Rs. 10/- per crate for the advertisement. They are spending the amount for wall painting, dealersboard, glow singns, hoardings, banners, stickers, posters and buntings.

TROPICANA JUICE MARKET IN ASIA

The tropical juice market in Asia can give some insights into the future of the market in India. Way back in 1998, despite the growing popularity of tropical juices, there were indications that traditional suppliers would not be able to serve the market. There were adverse economic and weather conditions also in Thailand and India. Mango production In India was hit hard by higher than normal temperatures, followed by floods. There were certain adverse conditions in Thailand such as weather conditions, economic crisis, depreciation in bath, low purchasing power and less import demand, leading to shortage of transport containers and a rise in shipping costs.

This suggests that such developments, whatever they are, affect demand. This is evident in the fact that there was a threat to

Asias strong position in the international juice market even when demand for tropical juices grew.

In the global market, the European and US importers are the major buyers of tropical juices. These importers mainly demand mixed tropical drinks. In Europe, many juice concentrates (including guava, banana, papaya, and others) are mixed with orange and pineapple to form nectars and special tropical blends. Netherlands is the largest continental importer of juices for mixing purposes and usually does so for resale to the rest of Europe.

In the U.S., the tropical juices are also enjoying increasing popularity. From 1994-1996, the total volume of banana juice imports grew by 15 percent whereas imports of tropical juices

excluding banana and pineapple increased by 50 percent during the same period, both in volume and value terms.

The long-term trend in the U.S. juice market points toward increasing popularity for tropical juices. An important reason being sighted for this increase is the growing number of Asian and Latin American

immigrants, which in turn has sustained the growth of ethnic based food stores. A more recent development is the popularity of multivitamin drinks during hot weather. These drinks are prepared by mixing juices such as mango, papaya, guava and others with vitamins and health related supplements.

FRUIT BEVERAGES MARKET

The fruit drink market has recently witnessed expansion with the entry of several new players. The market has been progressing in terms of product content and there are three major product contents available. * * * Drinks : Juice with pulp content less than 40% Nectars : Juice with pulp content between 40-80% Juices : juice with pulp content more than 80%

With development in the tetra-pack market, there is a natural progression from drinks to nectars to juices. While traditionally fruit drinks were aimed at children, the new brands like Onjus, Real, and Life have focused on young adults and professionals. Take the case of market leader Parle Agro which has launched Yo Frooti and Yo Appy with a new slim pack to attract youngsters. Although fruit drinks focus strongly on out-of-home consumption, the juices and nectars have been concentrating on takeaways or in-home

consumption. With more choice coming in, the tetra-pack market is likely to witness further segmentation.

MARKET SIZE, GROWTH AND DEMAND

The total fruit beverage market is placed at Rs. 22 billion with the fruit based beverage market constituting 25% of the overall market. Thus the fruit based market has currently a potential of Rs.5.5-6 billion. Until 3 years ago, the market, which largely consisted of fruit drinks, was growing at 30% due to its low base. But with the launch of new products in the niche segments like nectars and juices, the fruit drink market growth reduced to 10% as compared to 30% growth rate of juices and nectars.

The pure fruit juices segment is estimated at 100 crores and is growing at 40 % growth rate while the synthetic segment is at 10 % only. The per capita consumption of juices in India is estimated at 200 ml which is expected to rise given China has attained a consumption level of 1500ml. As per the study by McKinsey and Co and CII, the market size of all fruit beverages is projected to grow very fast to Rs 20 Bln level by the year 2000 from Rs 3.5 Bln level currently. This figure is not

inclusive of exports. The worth of tetra-pack market is currently estimated to be around Rs.400 crore, which is 10% of the total soft drink market. At present, the tetra-pack market is growing at a rate of 10%-12%, and in the near future, companies like PepsiCo Inc. (Tropicana) are expecting a growth rate of 40%. But Godrej Foods is skeptical of the growth rates and estimates it to be at 15% due to

onslaught of carbonated soft drinks.

In- home packs do not witness any seasonality in the market and there distribution patterns remain normal

throughout the year. Out-of-home packs like 250 ml face a lot of peaks and troughs and there is a lot of seasonality, which has to be looked after to manage demand and shoot profits.

Demands Past & Future

Year 1990-91 1991-92 2001-02 1992-93 2006-07 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 '000 MT 137.6 147.4 579.2 157.5 1043.7 176.9 211.0 262.2 298.2 340.0 390.9 447.6 510.3

From the above table, the growth in market can be seen as increasing constantly from 7 to 16 % in 1999-2000. In the next six to seven years, the market is poised to grow at 20% approximately. The fruit beverages market in the Indian continent is segmented zone-wise as follows:

Zone wise Shares

Segment North India East India West India South India Share (%) 25 20 31 24

Thus the fruit beverage market has more acceptance in Northern and Western India, which is due to the climactic conditions prevailing there relative to the rest of the country.

MARKET GROWTH RATES

1990-91 - 1996-97 1996-97 2002-03 2002-2006-07

13.8% 14.2% 18.5%

SEGMENTATION

There has been no general acceptance of the product forms in the fruit drinks market. The consumer is basically concerned if it is a fruit juice or synthetically constituted product. clearly Product delimited. segmentation, Under the therefore, fruit drinks should the be first

segmentation is between real fruit drinks and synthetic drinks. The former is based on natural fruit pulp or juice. The others are synthetic products containing fruit flavors. Broad taste preferences could be another way to define the market. The market is at present segmented on the basis of fruit pulp content. For the purpose of segmentation, on the basis of fruit pulp content, the market can be

segmented as: Fruit juice with pulp content more than 80%. Brands falling in this category are Onjus and Real. Recently Tropicana has also entered this segment Fruit Nactar with pulp content between 40%-80%. Life and X's comes in this category.

Fruit Drinks with pulp content less than 40%. Frooti and Jumpin are the popular brands in this category.

Segmentation could also be on the basis of the benefits provided to the consumer: One benefit could be the nutrition content it gives to the consumer. So one market could be the health-conscious segment. Second benefit is thirst quenching, so the other segment could be those buying the drink or nectar for satisfying the thirst and especially for those on the move. Another very broad segmentation is the type of situation in which the drink or nectar is used: People who are on the move i.e. those traveling and People who are using it on the breakfast table as a part of their menu. Players very often choose one or more of such

segmentations to differentiate their product and target market and accordingly plan their distribution and

promotion patterns.

CONSUMER HABITS AND PRACTICES

The Indian lifestyle has a traditional predilection for fresh fruits and vegetables or those processed at home. People go in for fresh fruits vending from kiosk fountains, which produce instant juices from fresh fruits in the presence of the consumer. One reason is the unavailability of

hygienically produced and well-preserved products with the use of preservatives. The fact that it is packed denies its freshness. This was also a reason why some of the real but branded fruit juices launched in the late 1980s and early 1990s did not succeed. Taste is often the secondary consideration in the Indian market for beverages. Fruits

juices also lose on roughage, which is an important part of fruit nutrition. Few people know the difference between a juice and nectar.

In general, the Indian consumers have become health conscious now and are looking for healthy and natural and appetizing juices. They are

moving

away

from

synthetic

drinks

to

natural

and

wholesome fruit juices. At present Per capita consumption of juices in India is estimated at a fraction of a litre -200ml.

The consumption of fruit juices in take-home packs is estimated at 17250 mn. lt onsumers go for convenient and economy products. So small packs are well suited for travelers and children and large take home packs for families and price conscious people.

Availability in chilled form and brand awareness plays a crucial role in purchase decision. This has implications for

the need for form.

availability of the product and in the right

While

there

is

no

aversion

to

consumption

of

fruit

beverages by any age group, the main consumers of this market are people in the age group of 30 and below. Young adults and teenagers predominantly consume tetra pack drinks. Brand loyalty is very low, as all the products taste the same. But brand loyalty is high in case of kids. Though there is a lot of difference between brand awareness and brand loyalty. Consumers are money conscious where the purchase of fruit beverages is concern.

Consumers are not ready to explore the market. They do not want to change their taste and are stuck to their old brands. Orange and other drinks are slowly picking up and breaking the loyalty towards old brands.

TRENDS IN THE INDUSTRY

Current growth rate of the fruit beverage industry is estimated to be 50-60% above the last year. The decibel levels of Real and Tropicana and the gap that existed for packaged juices have spurred this growth according to the industry analysts.

Consumption of fruit juices in take home packs is estimated at 17250 million liters and could increase to 21570 million liters in the coming few years. The entry of other global players, who are entering both with and without domestic alliances, will expand the domestic market faster with their promotion strategies. These strategies would mostly take up the form of a full-fledged media campaign.

There are few changes in the consumer behavior as well, which have spurred the market for fruit juices viz

Consumers are turning away from the high-calorie, sugar

loaded juice drinks in favor of more natural, vitaminfortified products.

Culture of orange juice with break fast is growing very fast. In the western markets, all-natural juices are the strongest growth leaders and are slowly replacing the concentrated fruit beverages and novel fruit drinks.

Also, consumers increasingly prefer chilled or ready to drink products over from-concentrate variety.

The growth of white spirits market is causing juices to grow as well. It is acknowledged that rum or vodka taste best with a variety of juices or juice mixtures, Gin goes well with grape fruit juice and Bourbon Whiskey can be mixed with Peach, Apricot, Mango, Papaya and orange juices. Owing to the same trend some fanciful juice

mixtures like Raspberry with Mango have started gaining popularity. (Source: Nations Restaurant News.15 t h March 1999)

The developments in the western markets have always have had a trickle down effect on the Indian market, so a lot of changes can be anticipated in the product & packaging of

these products in the near future.

OBJECTIVE OF THE STUDY

Today the study of practical training has become an integral part of all professional education and those aspiring for post graduate degree in marketing management are no exceptions. So, to fulfillment my project to I made following objective: To comparative analysis of Pepsi Products To analyzing customer satisfaction levels

To Identify the SWOT analysis of Pepsico

To Identify marketing activity of Pepsico To gain practical working knowledge.

RESEARCH METHODOLOGY COLLECTION OF DATA

There are several ways to collect data like primary and secondry sources. Primary data has been collected through questionnaire. Secondry data has been collected through books, journals, magazines,website,etc.

RESEARCH DESIGN
In the survey done by me , I have used the the descriptive research design. Data collected by me is the primary data with the face to face interview method. UNIVERSE - finite - simple random sampling

SAM PLING METHOD

SAMPLING PLAN

SAMPLE UNIT

RESEARCH PLAN

Meaning of Research plan After identifying and defining the problem as also accomplishing the relating task, researcher must arrange his ideas in order and writer them in the form of an experimental plan or what can be describe as research plan.

Developing the research plan The next stage of marketing research calls for developing the most efficient plan for gathering the needed information. Designing the research plan callas for decision on the data sources, research approaches, research instrument, sampling method. plan and contact

DATA SOURCES
The next step is to determine the sources of data to be used. As there are two methods of data collection. (i) (ii) Primary data Secondary data

I have selected both the methods for collecting the data but more emphasis is on primary data collection. As a primary source of data, I used the simple but most effective method i.e. questionnaire. In this method, usually some questions are asked to the persons to whom they are concerned with and

on the basis of their answers the analysis is to be made. These questionnaires are a very effective means of collecting the data and it is also the cheapest method.

In the questionnaire I used hybrid questions, which were asked to the retailers of Outer Noida city. These questionnaires include the questions like their preference, awareness, perceptions etc.

Secondary data are those which have already been passed through the statistical process . To understand the status of Pepsi

Company, some websites helped me in collecting the data in a better way. Some other sources of secondary data were

newspaper, magazines, journals, etc. and the data collected from the above mentioned sources helped me in getting information about the brief history of Pepsi Company.

RESEARCH APPROACHES Primary data can be collected into five ways: Observations, Focusgroup, Survey, Behavioral data and experiment and here I have used survey research and surveys are best suited for exploratory research.

RESEARCH INSTRUMENTS Marketing researcher has a choice of main research instrument in collecting primary data, questionnaire and mechanical device . I have used only one research instrument i.e. questionnaire.

QUESTIONNAIRE In this report, I have used one questionnaire in which I asked hybrid questions . This questionnaire generally covers the

questions which are based to the following matter preference, perception, validity, suggestions of the responded.

SAMPLING PLAN I have collected the primary data from retailers and secondary data through internet and libraries etc.

SAMPLE SIZE Large sample give more reliable results than small sample . I have taken sample size of 100 from total population in this area.

AREA OF SURVEY Survey was completed in this different areas of outer Noida city.

SAMPLE PROCEDURE To obtain a representative sample , I have used simple random sampling, which comes in probability sampling.

CONTACT METHOD Once the sampling has been determined the mark research must decide how the prospect /targeted retailer should be contracted. For this purpose , I simply went to retailers shop and used questionnaire from them randomly.

COLLECTING THE INFORMATION After these steps , I have collected all informations from different sources.

ANALYZE THE INFORMATION The step in the marketing process in to extract finding from the collected data. I have tabulated the data in develop frequency distribution

PRESENT THE FINDINGS As the last step I have presented the findings that are relevant to the major marketing decision facing management.

Chapter III COMPETITOR: SHARE AND STENGTH

COMPETITOR: MARKET SHARE & STRENGTH

The Competitor: Market Share & Strength

In cold drinks segment, Pepsi has large potential for the sales of their products. As far as cold drinks products is concerned the soft drinks industry has only two-product supplier. 1.Coca-cola 2. Pepsi However, considering the volume of sales and perception of the consumer the main competitor for Pepsi would be, Coca-cola. Cocacola has a good number of sale volumes. A clearer picture of who is eating out Pepsis share can be obtained by finding out the market share of each player. Keeping in mind the same obtained the market share of each supplier of Pepsi products. The market has too many players with a number of unbranded ones. I have put together these unbranded ones as the Local brand. The market share is calculated purely in terms of volumes sold, therefore it was imperative to calculate the market share for each of the Pepsi products apart from the overall market share where all the Pepsi products were put together and summation was taken. Individual products share was calculated so that Pepsis position in each of the products may be known.

Rivalry with Coca-Cola

While some people claim that Pepsi tastes exactly the same as Coca-Cola, other people say they can tell a difference in the two sodas. In the past, the difference in taste between Pepsi and The
Coca-Cola Company's Coca-Cola was even greater than it is today.

In 1985, The Coca-Cola Company, amid much publicity, changed the formula. Some authorities believe that New Coke, as the reformulated drink came to be known, was invented specifically to respond to Pepsi. Numerous blind taste tests suggested that more consumers preferred the taste of Pepsi (which is believed to have more lemon oil, less orange oil, and uses vanillin rather than vanilla) to Coke. In taste tests, drinkers were more likely to respond positively to sweeter drinks, and Pepsi had the advantage over Coca-Cola because it is much sweeter. Coca-Cola outsells Pepsi in the US overall because Coca-Cola is sold exclusively in more locations, such as restaurants that sell Coca-Cola, but not Pepsi. y most accounts, Coca-Cola was India's leading soft drink until 1977 when it left India after a new government ordered the company to turn over its secret formula for Coca-Cola and dilute its stake in its Indian unit as required by the Foreign Exchange Regulation Act (FERA). In 1988, Pepsi gained entry to India by creating a joint

venture with the Punjab government-owned Punjab Agro Industrial

Corporation (PAIC) and Voltas India Limited. This joint venture

marketed and sold Lehar Pepsi until 1991 when the use of foreign brands was allowed; Pepsi bought out its partners and ended the joint venture in 1994. In 1993, Coca-Cola returned in pursuance of India's Liberalization policy. In 2005, Coca-Cola and Pepsi together held 95% market share of soft-drink sales in India. Coca-Cola India's market share was 60.9%. Others claim that due to rumors of the use of cocaine, Coke was banned for a long time in India and recently the ban was lifted, however, Pepsi had maintained a commanding market share. Pepsi had long been the drink of Canadian Francophones and it continues to hold its dominance by relying on local Qubcois celebrities (especially Claude Meunier, of La Petite Vie fame) to sell its product. "Pepsi" eventually became an offensive nickname for Francophones viewed as a lower class by Anglophones in the middle of the 20th century. The term is now used as a historical reference to French-English linguistic animosity (During the partitionist debate surrounding the 1995 referendum, a pundit wrote, "And a wall will be erected along St-Laurent street [the traditional divide between French and English in Montral] because some people were throwing Coke bottle one way and Pepsi bottles the other way").

According to Consumer Reports, in the 1970's, the rivalry continued to heat up the market. Research proved that Pepsi is preferred over Coca-Cola. The way that they proved this was by blind taste tests that were conducted in stores. These tests were called "Challenge Booths." The sales of Pepsi started to climb, and Pepsi kicked off the "Challenge" across the nation. More importantly, Pepsi outsells its rival in grocery and

convenience stores in the U.S. (regarded as an indicator of consumer preference), with Coca-Cola's dominance in exclusive restaurant, movie theater, amusement park, college, and stadium deals giving Coke the overall sales advantage. In the U.S., Pepsi's total market share was about 31.7 percent in 2004, while Coke's was about 43.1 percent. In Russia, Pepsi once had a larger market share than Coca-Cola. However, Pepsi's dominance in Russia was undercut as the Cold
War ended. Pepsi had made a deal with the Soviet Union for scale

production of Pepsi in 1972. When the Soviet Union fell apart, Pepsi, was associated with the old Soviet system, and Coca Cola, just newly introduced to the Russian market in 1992, was associated with the new system. Thus, Coke rapidly captured a significant
market share away from Pepsi that might otherwise have needed

years to build up. By July 2005, Coca-Cola enjoyed a market share of 19.4 percent, followed by Pepsi with 13 percent.

According to Consumer Reports, the overall advertising of the two companies still involve tv commercials that endorse the image of youth, beauty, family togetherness, fun, pleasure, celebrity and patriotism. These components are expected to bring positives to the company so that the rivalry will continue on

How I calculated the market share:

From the study of 573 outlets almost every outlets were consuming at least one of the Pepsi products. Consumption of each of the outlets was taken and was segregated as per the product. Two factors required to find the market share were, one, total market size in terms of sales volume, two, total sales volume of individual brand or company. The total sales volume for each of the brands company by summating the sales volume of each of the products of a company.

Shareholders:
PepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange in the United States. The company is also listed on the Amsterdam, Chicago, Swiss and Tokyo stock exchanges. PepsiCo has consistently paid cash dividends since the corporation was founded.

MARKET SHARE

MARKET SHARE

MARKET SHARE PEPSI

MARKET SHARE COCA COLA

MARKET SHARE DOULAS

MARKET SHARE PEPSI

MARKET SHARE COCA COLA

MARKET SHARE DOULAS

The coverage Ratio

Before moving on to the details of each competitor, a light on coverage ratio would be of grate significant, so as to understand where Pepsi India is actually standing in the Soft Drinks market. Defining coverage ratio, the ratio of number of outlets a particular company has as its users to the total number of users in the market. The resultant will obviously be in decimal. Higher the results, better the ratio, better the presence of the company in the market and vice-versa. The coverage ratio will enable us to understand the penetration of each company in the market. Coverage ratio will also enable us to solve an hypothesis whereby we can get an idea of what sales volume can he archive if we attain particular coverage ratio, furthers the benchmark can also be done. How I calculated the Coverage Ratio?

It is calculated using the formula: No. Of users of particular brand

C.R. =

Total number of users

Interpreting the formula, coverage ratio can be obtained by dividing the number of users of a particulars brand to the total number of users of Pepsi. The reason is that coverage ratio would put light on the distribution reach and the number of customers one company has. Further coverage ratio would solve the purpose of knowing how many customers a particular company can have as its maximum. The maximum any compact can have as its customer is the maximum number of users of Pepsi in the whole market and it can not include any of the non users in their probable customers or potential customers, hence total number of Pepsi users was taken as the denominator. To find the coverage ratio the outlets were segmented as per their brand or brands. The outlets using the same product were brought under the same column and then they were summated to find the total no. of users of a particular brand was then divided by the total no. of outlets in the whole market. Substituting the relevant values for a particular company the coverage ratio was obtained for each of them. The table of

coverage ratio can be seen following the graph. Graphically the coverage or the penetration is as follows

ANALYSIS OF COVERAGE RATIO

PEPSI COCA - COLA LOCAL PEPSI BRAND

LOCAL

COCA - COLA 0 0.2 0.4 0.6

COVERAGE RATIO

COMPETATIVE PRICE ANALYSIS:

Now, with competitive price analysis a perfect picture of Pepsi Co India Holdings Private Limited in the beverage market can be

drawn. The competitive price analysis is as shown in the following pageThe compepative price analysis shows that Pepsi Co India has very competitive prices; in fact it has lower prices for a number of products. However, the only troublemakere is the local player who has a very good hold on carbonated product and juice. There are a number of local players with price maximum up to Rs. 8 for one bottle of cold drinks to its outlets and as low as, believe it or not Rs. 6/bottle. However it would be best interest for Pepsi to ignore such local players and concentrate on outlets that believe in quality.mong major competitor, the one and only Coca-Cola have more or less same prices, with almost all the prices being at per. However my study revealed that almost every one of them negotiate hugely as per the potential of the customer. For e.g. Coca Cola offers its products for as same price. Product as per Pepsis / Coca Colas Pepsi / CocaCola 7up / Sprite Mountain Dew Merinda Orange / Fanta Merinda 10.00 10.00 8.00 Pepsi (Rs.) / 300ml 10.00 10.00 10.00 10.00 Coca-Cola (Rs.) / 300ml 10.00 10.00 ----10.00 8.00 -------8.00 Local (Rs.) / 300ml

Lemon / Limca Slice / Mazza Aquafina / Kinle 10.00 12.00 10.00 12.00 ----10.00

LOCAL PLAYERS:

The last but not the least among competitors is the local players. Just with a single product i.e. cold drinks, the local players have a market share of 1.60% many names emerged among the local players, like Doulas, Citra etc. The local products have low price, mainly due to price factor.

However the low price strategy of local players has not enabled to emerge them as market leader with just such less percentage of market share

Chapter IV

SWOT ANALYSIS

Swot Analysis
Strength
1. Improved Quality Control 2. Latest Technology 3. Heavy Investment in both Infrastructure and Sales Promotion campaigns. 4. Modified and Attractive Packaging. 5. Strong Advertising Network

Weakness
1. Entire infrastructure needs a face lift. 2. Unskilled labour. 3. Tight Cash Policy. 4. Fear of retrenchment among the workers.

Opportunity
2. Wide Market 3. Good Rural Market 4. Direct Distribution

Threats
1. Stiff competition 2. Illegal distribution done by some distributors 3. Changing of consumer preferences

Chapter V DATA ANALYSIS

DATA ANALYSIS THE SURVEY The survey named as EDS {EVERY DEALER SURVEY}. The survey has been conducted to check the cooler management, availability of products & activation of Pepsi cola in various outlets. The survey has been covered in two phases. First phase covered the two round survey of the market developers in the respective market. The second phase covered the survey of sales executive in the respective market. covered in different clubs were: The survey was based on three topics. Firstly we have to check the Cooler management i.e. the cooler which was provided by the company to the customer, are properly managed/working or not. and lastly the most important aspect of cooler management was the brand order. The no. of Shops

 Secondly, we have to check the availability of the product i.e. whether the product is available to the customer or not. Lastly, we have to check the Activation, which is a very important because activation helps to boost the sales. Activation is done through boards i.e. glow sign. DPS, flangs and Combo boards. Mostly combo boards are given to the E & D outlets. and is very helpful in attracting the customers. Rack with header is provided to the Grocery outlets which should be fully charged.

CUSTOMER ANALYSIS
As mentioned earlier, of the 573 outlets, almost all of them were used Pepsi product. Though the whole study was primarily targeted towards grasping the product. Among these outlets it was very easy to satisfy the customers demand for drinks without having actually to product them, but simply order it from one of the distributors. I have seen that almost 85% of the customer was search for 7up or as alternative Mirinda lemon flavor the responses of the non-users was tabulated and it is shown in the next pages;

Customer Demand

pepsi 7'up Mountain Due Mirinda slice

aquafina

All said and done, life does not seem to be very easy for these outlets that were the exclusive counters. Most of them being located in the upper graded zones of south Bengal were finding it very difficult to meet their ends. Few outlets were planning to pull down their shutters sooner or later. They also faced seasonal fluctuations, with better business from May to July. Still only a selected few seemed aggressive enough to revamp the whole business by expanding into other segments like Ice Cream, Lassie etc.

Problems:
Many problems surfaced for the reluctance to distribute among these outlets, the prime once being as follows; Poor distribution network. Problem of availability of the demanded flavor. Problem of time management of distribution to the outlets. Payment problem of outlets. Problem of freezing materials.. Dispute product problem.

However the good news for Pepsi is that couple of outlets having learnt from their experience. On the bottom line, Pepsi should have a constant on this segment especially the bigger players. The potential customers amongst these outlets have been dealt in Drinks potential section.

THE USERS ANALYSIS

Contrary to the non-users of the Pepsi in soft drinks market, the users of Pepsi have a complete different outlook on ward head till toe.

Amongst the users I had structured approach to get answers to several questions, as this was the segment on which my whole study has based. The task I decided to attain for myself in this part of the world i.e., the user were as follows,

To understand what the outlet actually looks out for while buying a Pepsi. Does the outlet sick to one brand or does he keep on using different ones? How satisfied is he with the current brand? How is the best according to the outlet, in terms of quality, service, and price?

 Where does Pepsi Co India Holdings PVT ltd?

Further to understand the position of Pepsi India in the whole market both the Pepsi users And the Pepsi non users were studied in detail in order to rasp the opinion towards Pepsi thereby understanding user was its position. several Regarding questions Pepsi the to user was segregated in to two i.e. Pepsi user and Pepsi non-user. The Pepsi asked related satisfaction, performance.

The non-user was asked as to whether he was aware of Pepsis Presence in bulk industrial products? Why doesnt he use Pepsi, will he use it in the future? Why did he stop using had he been using it in the past?

The findings of the above have enabled to carve a clear picture of where Pepsi stands.

In order to under stand what the outlet looks out for the while buying a Pepsi product from a particular company two questions were asked, one close ended and one open ended. The open-ended question solved the purpose of finding what the customer actually looks out for, while buying a particular brand. Following examples will make things clearer. The question first asked to the out let was, 1.What makes in buy a particular brand?

The option was qulity, price, and availibility size of packing, contract, and service. Lets say the outlet says he looks out only for quality while buying a brand. But under all possibilities, quality may not be the only factor, which the outlet looks out for, service may also be the factor, availability can be and price can be the most important factor and usually it does happen that any consumer does not prefer to say that he is price conscious.

Therefore in order to overcome this limitation, a question was put in the end, as to would he use Pepsi? The same outlet who said that he looks out only for quality may say this time that the price should be compepitive, so this gives an clear indicating the out let

looks out for price while buying a product, similarly one may actually he looks out for size of package while buying .any hidden decisions making process will thus be revealed. As a matter of fact, there were 131 outlets, who answered differently to the two questions, but the good think was a majority 255 answered honestly as the answered to both the questions were same. The answered to the fast question i.e. what makes them buy a particular brand had 85.14 out of 295 responses as they looked out for quality, whereas last question asked to weather they would use Pepsi saw just 68.75 responses saying that they looked out for quality whereas 77.75 responses said that they would consider the price, in this case and increase of 31%. Other factors like availability, size of packing, contract, and service had more or less the sane number of responses in both questions with 39.78 persons looking for availability while 23.58 considering to availability and last as most important factor in the last question The respectively. Size of packing had 5.16 and 8.95 responses for first question could
90 80 70 60 50 40 30 20 10 0 QUALITY PRICE AVABILITY SIZE CONTACT SERVICE

discrepancies graph.

ACTUAL VS HIDDEN RESPONSES

respectively.

be observed in the

NO OF RESPONDENTS

ACTUAL HIDDEN

FACTORS FOR BUYING

Switch over factor

The next thing I studied among the outlets was preferred to use same brand every time or keep on changing each time. This was done to understand the usage pattern and the steadiness in sales that can be generated through steady customers.

The findings revealed that 245 out of 295 allays stuck to the same brand with many not even trying something else not even once. However this doesnt imply these outlets are averse to try anything new or renewed brands, with as many as 146 of them saying that they are ready to try new products, if satisfied then they may stick to new one.

There were 50 of the 295 outlets that said that they keep on changing brands. Nevertheless these were couple of outlets that

kept changing their brands, as they believed it enabled them to cater as per taste of customer.

The most preferred brand

In an effort to find the most preferred brand amongst the outlets, I asked the outlets that according to them were the best supplier of the products. After selecting one brand I would ask them to give a score on a scale of ten. From the scales the cumulative for each brand was taken and average was taken giving the percentage label of satisfaction amongst the outlets considering a Particular brand to be best. As in 7ups case almost every outlets gave their votes for this product.

MARKET SEGMENTATION

The market was segmented in three groups. 1. Channel 2. Consumer income weight 3. Customer

CHANNEL In the channel segment the outlets were divided into three parts namely : Eating & Drinking Convenience Grocery In the eating & Drinking segment, survey conducted on the outlets namely restaurants, Hotels, Dhabas etc. In the Grocery segment survey conducted on the grocery & Departmental stores.

In the convenience segment survey conducted on outlets such as confectionaries, PCOs, Pan Shops, Juice shops etc.

CONSUMER INCOME The market was segmented according income of the customer i.e. High

 Medium Low

CUSTOMER WEIGHT The market was segmented also according to customer weight and Large Medium was divided into two groups.

Diamonds outlets are those outlets which are having sales of more than 800 C/s per Annum.

Gold outlet are those which are having sales of 500-799 C/s per Annum.

OBSERVATIONS

 The areas covered by us were among the strongest area in Noida for Pepsi and the most potential area for Slice {NON CARBONATED} because of the large no. of Grocery Stores and Confectionaries present per unit area. In Noida Sector 37,39,49 and sector 52 75-80% outlets having excellent cooler management, proper availability of product and activation scheme. In Noida Sector 11,12,57 and Sector 58 outlets having good cooler management, proper availability of products and activation scheme. In Noida Sector 1,2,3,5,15, having some problem in

distribution of product.

Chapter VI FINDINGS

FINDINGS

FINDINGS
The actual percentage of users of Pepsi, 7Up, Mountain Due, Slice, Merinda & Aquafina would come around 7%, 55%, 10%, 10%, 12%,

6% of the outlets. The relatively high percent definitely owes to the South Bengal Division. The percentage, which I have mentioned above, got from every outlet visit when I have work with the distribution of Pepsi.
M o st De man d e d F lav o u r

60 50 40 30 20 10 0
Peps i 7'Up

M ountain Due Slice Fla vour

M erinda

A quafina

The graph shows comparative demand level for different flavors. So soft drinks market growing steadily and 7up being the most demanded flavors. Pepsi Co India Holdings PVT Ltd has a huge potential in the soft drinks industry. However its journey will definitely not be smooth, as the market is highly sensitive to many factors especially quality.

BUSINESS SEGMENTS

Indian Beverages industrys size is Rs. 8000 Crores and it is dominated by two players viz Pepsi & Coke only. This high profile industry has lot of potential for growth as per capita consumption in India is 9 bottles a year as compared to 20 bottles in Sri Lanka, 14 in Pakistan, while 12 bottles a person in Nepal. The RKJ group is India's leading supplier of retailer brand Carbonated and Non-Carbonated soft drinks, with beverage manufacturing facilities in India and Nepal. Its experience in the beverage industry dates back to the sixties when it had the first franchise at Agra. The family manufactures and markets Carbonated and Non-Carbonated Soft Drinks and Mineral Water under Pepsi brand. The various flavours and sub-brands are Pepsi, Mirinda Orange, Mirinda Lemon, Mountain Dew, and 7UP, Slice Mango, Slice Orange, Evervess Soda and Aquafina.

It has the license to supply beverages in the territories of Western U.P., part of M.P., half of Haryana, whole of Rajasthan, Goa, 3 districts of Maharashtra, and 13 districts of Karnataka and whole of Nepal. The group has in total 18 bottling plants in India & Nepal and is responsible for producing and marketing 44% of Pepsi requirement in India.

CONCLUSION

CONCLUSION

Overall retailers are happy with the current composition of signage but they are intend to pay back more to the company, if company provides more maintenance and

facilities to the retailers in terms of signage. brand name PEPSI has its sumpremacy in many areas but bue to some reasons it is loosing its market, and one of them is its improper composition of signages which is not good in long run further the things are getting worse due to the non communication between retailers and the company. The sales is increasing due to these effective signage but not too much and that is the matter of concern as they are the part of the physical evidence which place an important role in overall experience of the customer.

RECOMMENDATION

Recommendation:
Set aggressive targets this is my recommendation. Be it market share, coverage ratio, sales volume, sales figures, marketing strategies or anything for that matter pertaining to the growth of sales of Pepsi products used by outlets. With a relatively weaker position in the outlets markets, aggression in all approaches would make things better. I dont imply to say that Pepsi lacks aggression, but what I mean to say is Pepsi needs to be more aggressive than what it currently is.

Recommendations on prime concerns for Pepsi to improvise sales:

Now, based on analysis of the customer, many factors have emerged as decision-making factors for buying Pepsi. I would like to recommend a matrix for optimal profits through selective approach of factors on the basis of which purchases are done. The recommended matrix is as seen in the next page. I have taken a three by three matrix. The reason for the same is that I wanted to have a broader perspective. It was just impossible to mention that price factor should be given high level of importance, which would otherwise mean if price were not given high level of importance. It has to be given low level of importance. This means that there cant be a in between for important factors

such as price. Thus an additional column and a row were required in order to have andin between in the matrix. So the three different levels would be high, low, & medium. With the three options available a better understanding of the level of importance that is required is possible. The matrix is as shown in below page; The Matrix indicates the level of sales increase that can be generated through the various levels of importants assigned to various factors. Sales Increase High

Medium

Low

Low

Medium

High

Level of importance for each factor Convection of quality amongest outlet. Availability. Appropriate combination of price & quality. Distribuation of sample.

Combination of dristribuation of samples & price. Awarenessof Pepsis Amonungest Outlets. Quality of Packaging. Appropriate price. This matrix based on the customer analysis, indicates the immediate point of concern for Pepsi required generating sales. The X-axis, which shows the level of importance a factor should be dealt with, has three factors in its high level importance column. The three factors are

Conviction of quality Availability Awareness

It is very important for Pepsi to improve on availability. How ever availability factor lies in the Medium sales growth row.

The top priority for Pepsi would be recommended to position itself as a high quality product. This is again ironical, till now Pepsi has lost a sale volume due to perceived

inferior quality or lack of faith in Pepsis quality. Widely appreciated for its quality at retail level Pepsi should work out a strategy to overcome the perception of few outlets that have negative thought regarding Pepsis quality. It simply cant be true that Pepsi has inferior quality. However, even if there happens to be some problem with quality of Pepsi it should be immediately rectified with. During My study I didnt come across any grievous complaints except for some problems being expressed upon the melting of the products. The complaints are mentioned in the individual outlet section. However, it is very very important for

Pepsi to work on its image as the quality product. Conviction in quality of Pepsi can lead to an additional sale, which is very significant part of the market size. If importance is not given to this factor this additional part can never be achieved. Therefore, it deserves to be on top right of the matrix demanding for highest attention. The factor the stood unique amongst all others was the combination of price & quality. Capable of making Pepsi the market leader, I recommended that this factor be approached selectively on the basis of the customer. By asking for price & quality, the customer is actually asking for a competitive price

without any compromises on the quality. Anything that asks for reduction in price should be approached cautiously. However, it cant be given high level of importance, because it would be unwise to compromise on price all the time. The level of importance this factor require is somewhere between high and medium, in other words appropriate importance given to price-quality factor would generate high sales growth.

The next significant circle is the chlorophyll green circle in the second column, overlapping the high sales growth and medium sales growth row indicating price factor. Though capable of generating high sales, I have recommended medium importance for the price factor. The reason for the sum is price factor it. Pepsi doesnt require giving products at cheap rates, as the prices are already competitive. Pepsi require to be concentrating more on increasing the awareness of their competitive prices, which many a outlets are not aware of. Since I have recommended medium importance to the quality factor, the resultant sales may turn out to be lesser than the expected. This will obviously be because every one may not buy as the prices may not be reduce as per their expectations and many cases not even single rupee may be reduced.

The other significant factors are sample distribution, which needs to be treated according to the merit of the customer. Sales volume depends on sample distribution, however it is not possible to distribute samples recklessly and thus this factor doesnt need not need high level of importance. However a Selective approach of distribution of samples is capable of generating above average growth. The remaining three factors, which are; Combination of appropriate Price & Availability. Combination of sample distribution and price. Size of package.

Each of these three factors is capable of generating very low sales growth therefore it does deserve very low importance. However price and availability does needs greater attention, because anything that has to do with availability should be taken seriously, since losing sales due to unavailability would be ridiculous.

The bottom line would be to concentrate more on availability, awareness, and position Pepsi as a high quality product. Factors such as price and distribution of samples should be worked on the

merit of the customer. Following this I have charted customer ratings based on the potential of the customer, these ratings along with decision-making factors of purchase will give a clear idea of how Pepsi should proceed.

Recommendations on marketing strategies

Pepsi may not be successful at the bulk level. However its huge success at the retail level should be used to promote Pepsis at institutional level. The name Pepsi is sufficient enough to water the month of many a lovers of Pepsi. Thus the best strategy for Pepsi to boost its sales at institutional level would be to play to its strength The Brand name. Just by playing to its strength of brand name Pepsi could turn the market topsy-turvy over the night. But the question would be how the brand name could be played to its strength at the institutional level. My recommendations on the same would be as follows;

Strategic displays:
During the course of my 8- week market study I would always keep on thinking for a marketing strategy that can help Pepsi boost its image. Consequently a thought came into my mind, which I would recommend Pepsi implement. My recommendation is that every outlet that uses a Pepsi product should put on a small display, which would proclaim This outlet uses Pepsis. Pepsi being a successful brand name at the retail level would definitely reap gains for the outlet in terms of sales of his products. If this helps in boosting the sales of one of the outlets, which could be fund by analyzing the relative sales of pre-display

and post-display. Then this point could be promoted against nonusers of Pepsi, who may ultimately try Pepsis for the same reason.

Certificates of appreciation:

Another way of making a way into the outlets market is through Certificate of Appreciation what Pepsi can do is offer each of the outlets-A Certificate of Appreciation for the quality of cold drinks at the outlet. Almost all the outlets of South Bengal have their own outlets. Each of the outlets can be provided with a offer to use Pepsi, at the end of which Pepsi will give them a certificate certifying them with certain grades on their quality. The criterion for this should be usage of Pepsi. If the outlet uses any other product he will not be consider for the certificate. This will solved two purposes; 1) Positioning of the Pepsi as High Quality Product amongst the outlets, in other words reinforcement of Pepsi as The quality product in the outlets segment. 2) Increase in number of Pepsi users who will use Pepsis in an effort to win a certificate from Pepsi.

One may argue that this will solve the purpose temporarily, as the outlet may stop using Pepsi once he gets the certificate.the answer for the same is that the certificate should have a time specification. However all this should be projected as a customer friendly task, with a view to increase the sales of Pepsis customer i.e. the outlets. At no point should the outlets feel that this will benefit Pepsi only, rather a feel of mutual gain with a greater benefit to the outlet should be created.

Awareness amongst Customers Customer:

An irritating view observed amongst number of outlets is that, since the customer does not know the brand used by the outlet in a Pepsi they dont have the necessity to use a popular brand, thus anything that suits to their budget would do.

There is an urgent necessity to eradicate this view amongst outlets, as this has hampered the growth of Pepsi in outlets segment. The best strategy for Pepsi to counter this view would be to play to its strength i.e. the Brand Name. The

Customers customer who almost has honoured Pepsi with generic name for Pepsis would be the best brand ambassador. The customers customer i.e. the end customer should be made aware of Pepsi usage. A strategy for the same would be to have displays at outlets. The display should have mouthwatering photographs of Pepsi, which would help convincing the outlet to put up such Display cards outside their Outlets. I would also recommend Pepsi a vision. Just as Pepsi became a generic name for Pepsis, efforts should be to try. An aggressive strategy can definitely help fulfilling the vision. Only the customers customere will help Pepsi realize this vision.

It would be the best for Pepsi, to target the psyche of the end consumer more than the psyche of the outlet. In a country where many a people consider 7up to be a brand of Pepsi, it is very imperative to cash in on the brand image of Pepsi.

Getting the end consumer in to the act would change the whole scenario. No competitor, be it Coca-Cola or any one else would be able to sustain the competition for Pepsi once Pepsi does so. Asking the end consumer to buy Pepsi out of Pepsi, and there by asking them to discriminate outlets on the basis of usage or non-usage of Pepsi would make each and every outlet asking for Pepsi product.

Strategic Business Relations with the Outlets are:

Making brand image the competitive advantage through the end consumer doesnt imply that the outlets should be completely sidelined. Strategic business relation with outlets is as imperative as other factors.

Strategic business on relations with the Outlets:

Making brabd imagethe competitive advantage through the end consumer doesnt emply that the outlet should be completely sidelined. Strategic business relations with outlet are as imperative as other factors. In fact Pepsi are an extension of Pepsi. As pepsi has a huge presence at retail level, outlets can be offered retail business opportunities with certain incentives like Pepsis cases at discount rates. This would be of twin benefit as pepsis can have additional sales in retail products, along with additional institutional customer. The schemes and incentives provided to retailers can be

provided to outlet along with a condition of using pepsis products as ingredients in their products.

A strong integration of the whole chain, right from pepsi to the outlet to the end consumer is what needed. This can achieve only through the outlet. Frist of the entire outlet needs to be convinced, so as to put up the display of pepsis presence in this product. It would be obviously not possible to get each and every outlet into pepsis chain however the maximum should be tried to, especially the ones with larger potential. Keeping in mind the same I decided to give ratings to the oulet based on their potential and their changes of getting into pepsis chain.

REFERENCES

BOOKS MARKETING MANAGEMENT MARKETING RESEREACH : PHILIP KOTLER : C.R KOTHARI

MAGZINES AND NEWS PAPER THE ECONOMICS TIMES

THE TIMES OF INDIA BUSINESS TODAY BUSINESS WORLD WEBSITES www.pepsi.co.in www.pepsiworld.com www.google.com

QUESTIONNAIRE

Date: DATE RESPONDENT NAME OUTLET NAME UNDER AGE ADDRESS : THE : :

0 7 0 6 2 0 0 8

DISTRIBUTOR :

OF:

PH-NO.

Q1) What are the different things you prefer? Ice-Cream Others Lassi Cold-Drinks

If the answer is Ice-Cream then please go to A part, If the answer is Lassi then please go to B part, If the answer is Cold-Drinks then please go to C part, Part-A Q1) According to you what is the growth rate of Ice cream? Increasing Same Decreasing

Part-B Q1) According to you what is the growth rate of Lassi? Increasing Same Q2) Are you planning to introduce Lassi? Yes Part-C No Decreasing

Q1) Do you store PEPSI? Yes If NO then go to part I If YES then please continue; QI) What other brand/s do you use?

No

Q2) Which brand you preferred most? Sl. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Avg. Monthly Consumpti on

Brand Pepsi 7 Up Mountain Dew Mirinda Slice Aquafina Evervess Soda Coca-Cola Thumps Up Limca Fanta Sprite Mazza Kinley

Preferred

Price

Q3). Has any other company approached you to offer Cold drinks used in outlet? Yes No

Q4) Which Company/ies have given you the offer?

 Pepsi

Coca-Cola

Others

Q5) Are you switching your brand? Yes No

If YES then please continue; If NO then go to Q 6. QA) How frequently you are doing so? Q6) Rank of the following in increasing order of demand; (Highest demand grade of A& lowest demand grade of B) Pepsi Slice 7Up Mirinda Mountain Dew

Q7) According to you what the growth rate is of Pepsis product? Increasing Decreasing Same

Q8) why are you using the particular brand is it; Quality Agreement Price Availability Bulk offer

Part I for Non Users: Q9) Have you ever-used Pepsis products? Yes No

Q10) Are you aware of Pepsis presence in the market? Yes No

Q11) Currently, why are you not using Pepsis products or why have you stopped using Pepsi? Quality Price Availability Packaging

Q12) If I ask you to try Pepsis products will you try it? Yes No

Conditions any, if yes specify. Q13) what is your perception about Pepsi? Very Good Good Avg. Poor

GENERAI QUESTIONNAIRE

Q14) What are your expansion plan? Ice-Cream Lassi Others None