CHANNEL OF DISTRIBUTION OF PEPSI AT MUZAFFARPUR WITH REFERENCE TO LUMBINI BEVERAGES PVT. LTD.

HAJIPUR

Submitted in partial fulfillment of the requirements for

Master of Business Administration (MBA)

Under Uttrakhand Technical University

By

Shahnawaz Saba
Enrollment No. : 0121MBA022 Batch of 2012 - 14 Under the guidance of
Mentor Internal Guide

Mr.U.N.Singh
T.D.M. (Muzaffarpur) LBPL

Dr.P.R.Bhattacharyya
Dean,DBS Dehradun

Doon Business School

122Mi, Behind Pharma City, Selaqui, Dehradun-248001, Uttarakhand

Batch of 2012-14
Channel of Distribution of Pepsi i

CERTIFICATE

This is to certify that Mr. Shahnawaz Saba, who is the student of Doon Business School, Dehradun has completed his project on the topic Channel of Distribution of Pepsi in Muzaffarpur from Lumbini Beverages Pvt. Ltd. Hajipur, under my guidance.

He has done this project by himself. I wish him success in future.

Mr. U.N.Singh T.D.M., PEPSI, Muzaffarpur

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ACKNOWLEDGEMENT
I express our thanks to Lumbini Beverages Pvt. Ltd. for granting me the permission to work with the esteem organization. I am also thankful to Mr. Bhupendra Singh (HRManager) Lumbini Beverages Pvt. Ltd, Hajipur. who guided and helped us in all possible ways they could, at every stage of the project.

I am highly indebted to Mr. U.N.Singh (T.D.M., Muzaffarpur) of M/s LBPL, Hajipur (Pepsi) who provided me an opportunity to work and also guided me at every stage on my project. His proper direction and constant inspiration proved to be an asset for this project.

I sincerely and grateful thank to my honorable internal guide Dr. P.R.Bhattacharyya, Doon Business School, Dehradun, whose valuable guidance, supervision and cooperation enabled me to complete this project. My humble thanks are due to all our professors for guiding me during the eight weeks training as my training mentor.

I would also like to thank all the Executives, distributors & staff of Muzaffarpur area who provided us all the relevant information and their kind support, on the basis of which this report has been prepared.

Lastly I would like to pay our special regards to my parents for their encouragement and full support for completion of this project work.

(Shahnawaz Saba)

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Executive Summary
The distribution network of PEPSI is well known for its efficiency but company constantly strives for the betterment of their distribution network system.

Emphasis of our study was to focus on the customer of company i.e., the retailers. The Retail Mapping of Muzaffarpur is an integral step for the assessment, development and betterment of this system. The distribution system not only comprises the movement of the products but also incorporates the merchandising of the product, which is very broad in its purview.

The project incorporates the analysis of the performance of Pepsi and probing into opportunities of increasing the market share in Muzaffarpur. The entire process had to be in an organized manner in order to deliver meaningful results for the purpose of decisionmaking.

PEPSI boasts of having the maximum market share in the beverage segment in and is in constant process for the betterment of its product performance and customer as well retailers satisfaction.

Distribution channel is having an important role in positioning of the product because we know that distribution channel is tool by which we can make reach our product to the final consumers.

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CONTENTS
Part - A
1.
INDUSTRY PROFILE a) b) 2. The Lumbini Beverages Pvt. Ltd. Profile of Lumbini Beverages Pvt. Ltd.

Company Profile of Pepsi a) b) c) d) e) Mission, Vision & Popular Slogans Quality Policy Product Profile Competitors information Organizational Hierarchy of LBPL

3. 4.

MCKINSEYS 7S FRAME

SWOT Analysis Learning Experience

5.

Part - B
1. General Introduction a) b) c) 2. 3. 4. 5. 6. 7. Statement of the Problem Objective of the study Limitations of the study

Research Methodology Data Analysis and Interpretation Scope of the study Conclusion and Recommendations Annexure Bibliography

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1. INDUSTRY PROFILE
1.1 THE LUMBINI BEVERAGES PVT. LTD.
Lumbini Beverages Pvt. Ltd. (LBPL) is situated at Industrial Area, Hajipur in Vaishali District of Bihar. Mr. Charan Khilani, who is resident of Kolkata, established in the year 1997. It is one of the Pepsi Foods bottling plants in Bihar. Ananda Marketing Pvt. Ltd. was a marketing division of Lumbini Beverage Pvt. Ltd. But, now LBPL does its marketing itself.

1.2 PROFILE OF LUMBINI BEVERAGES PVT. LTD.

Company Land Area Location and Authority 13 Acres EPIP, Industrial Area, Hajipur 844101 Name of Director Name of CEO Industrial License No.: Factory License no. Charan Khilani Indira Krishnamurthy Nooyi Regn. No. H 12375 (C) 66750/ VLI Date 16.08.2009 F.P.O. License No.: Capacity Nature of product No of employees Labors on any day in the Control Board 10607/97 1500 bottles per minute Pepsi, Mirinda, Soda, Slice, Aquafina 200+100 (max) Seasonal Season No. 1877. Date 07-04-1997

In April 1997 Pepsi Cola international decided that Steel City Beverage will cover south Bihar (now Muzaffarpur) only. According Pepsi Cola international decided to open another bottling plant at Hajipur named Lumbini Beverages Pvt. Ltd. which will distribute Pepsi product in whole Bihar. Ananda Marketing as a marketing division of Lumbini Beverages Pvt. Ltd. Hajipur started functioning in April 1997; Managing Director of Lumbini Beverages Pvt. Ltd. Hajipur is Mr. Charan Khelani. The director of this organization Mr. Ravi Khelani and Mr. Manoj Khelani.

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But from 01-04-19s97 Pepsi Foods Ltd. India decided to open another bottling plant which is situated at Hajipur namely Lumbini Beverages Pvt. Ltd. Operating only for North Bihar.

It is operating with the help of distributors all over Bihar exclusively stocking Pepsi range of products. It sells its product through different distributor of PEPSI in Patna. Though this plant has just completed one year of establishment, yet in the very first season it has given its competitor very tough fight. Before some months Ananada Marketing Pvt. Ltd. was the marketing division of Lumbini Beverages Pvt. Ltd. but at this time, Lumbini Beverages Pvt. Ltd. is doing marketing in its own name.

Thus it can be seen that Lumbini Beverages Pvt. Ltd. has made tremendous move towards the introduction and development of soft drink industries on the whole, and North Bihar in Particular. It has made production of perfect hygiene and standard Soft Drink as main objective.

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2. Company Profile of Pepsi:

In 1893, Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins experimenting with many different soft drink concoctions. Like many pharmacists at the turn of the century he had a soda fountain in his drugstore, where he served his customers refreshing drinks, that he created himself. His most popular beverage was something he called "Brad's drink" made of carbonated water, sugar, vanilla, rare oils, and pepsin and cola nuts.

One of Caleb's formulations, known as "Brad's drink", created in the summer of 1893, was later renamed Pepsi Cola after the pepsin and cola nuts used in the recipe. In 1898, Caleb Bradham wisely bought the trade name "Pep Cola" for $100 from a competitor from Newark, New Jersey that had gone broke. The new name was trademarked on June 16th, 1903. Bradham's neighbor, an artist designed the first Pepsi logo and ninety-seven shares of stock for Bradham's new company were issued.

2.1 Evolution of Pepsi:

1898 One of Caleb's formulations, known as "Brad's Drink," a combination of carbonated water, sugar, vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola" on August 28, 1898. Pepsi-Cola receives its first logo. 1902 The instant popularity of this new drink leads Bradham to devote all of his energy to developing Pepsi-Cola into a full-fledged business. He applies for a trademark with the U.S. Patent Office, Washington D.C., and forms the first Pepsi-Cola Company. Channel of Distribution of Pepsi viii

The first Pepsi-Cola newspaper advertisements appeared in the New Bern Weekly Journal. 1903 "Doc" Bradham moves the bottling of Pepsi-Cola from his drugstore into a rented warehouse; he sells 7,968 gallons of syrup in the first year of operation. Pepsi's theme line is "Exhilarating, Invigorating, Aids Digestion."

1904 -

Bradham purchases a building in New Bern known as the "Bishop Factory" for $5,000 and moves all bottling and syrup operations to this location. Pepsi is sold in six-ounce bottles. Sales increase to 19,848 gallons.

1905 -

Pepsi-Cola's first bottling franchises are established in Charlotte and Durham, North Carolina. Pepsi receives its new logo, its first change since 1898.

1906 -

Pepsi gets another logo change, the third in eight years. The modified script logo is created with the slogan, "The Original Pure Food Drink."

There are 15 U.S. Pepsi bottling plants. The Pepsi trademark is registered in Canada. Syrup sales rise to 38,605 gallons. The federal government passes the Pure Food and Drug Act, banning substances such as arsenic, lead, barium, and uranium, from food and beverages. This forced many soft drink manufacturers, including Coca-Cola, to change their formulas. Pepsi-Cola, being free of any such impurities, claimed they already met federal requirements. 1907 Pepsi-Cola Company continues to expand; the company's bottling network grows to 40 franchises. Pepsi-Cola sells more than 100,000 gallons of syrup. Pepsi trademark is registered in Mexico. Syrup sales rise to 104,026 gallons. Channel of Distribution of Pepsi ix

1908 -

Pepsi-Cola becomes one of the first companies to modernize delivery from horse drawn carts to motor vehicles. Two hundred fifty bottlers in 24 states are under contract to make and sell Pepsi-Cola.

1909 -

Automobile race pioneer Barney Oldfield endorses Pepsi-Cola in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer before a race."

1910 -

The first Pepsi-Cola bottlers' convention is held in New Bern, North Carolina.

1920 -

Pepsi theme line speaks to the consumer with "Drink Pepsi-Cola, it will satisfy you."

After seventeen years of success, Caleb Bradham lost Pepsi Cola. He had gambled on the fluctuations of sugar prices during W.W.I, believing that sugar prices would continue to rise but they fell instead leaving Caleb Bradham with an overpriced sugar inventory. Pepsi Cola went bankrupt in 1923 and its assets were sold to a North Carolina concern; Craven Holding Corporation for $30,000.

Roy C. Megargel, a Wall Street broker, buys the Pepsi trademark, business and good will from Craven Holding Corporation for $35,000, forming the Pepsi-Cola Corporation.

1928 -

After five continuous losing years, Megargel reorganizes his company as the National Pepsi-Cola Company, becoming the fourth parent company to own the Pepsi trademark.

1931 -

U.S. District Court for Eastern District Virginia declares the National Pepsi-Cola Company bankrupt, the second bankruptcy in Pepsi-Cola history.

In 1931, Pepsi Cola was bought by the Loft Candy Company Loft president, Charles G. Guth who reformulated the popular soft drink. Charles G Guth, president of the Loft company struggled to make a success of Pepsi. He3 commanded the reformulation Channel of Distribution of Pepsi x

of the Pepsi syrup formula, and even offered to sell Pepsi to the Coca-Cola company, who refused to offer a bid.

1933 -

By the end of the year, Guth's new Pepsi-Cola Company is insolvent. In a series of moves, he acquires Megargel's interest in the company, giving himself 91% ownership of Pepsi.

1934 -

A landmark year for Pepsi-Cola. The drink is a hit and to attract even more sales, the company begins selling its 12-ounce drink for five cents (the same cost as six ounces of competitive colas). The 12-ounce bottle debuts in Baltimore, where it is an instant success. The cost savings proves irresistible to Depression-worn Americans and sales skyrocket nationally.

Caleb Bradham, the founder of Pepsi-Cola and "Brad's Drink," dies at 66 (May 27th, 1867-February 19th, 1934). 1935 Guth moves the entire Pepsi-Cola operation to Long Island City, New York, and sets up national territorial boundaries for the Pepsi bottler franchise system.

1936 -

Pepsi grants 94 new U.S. franchises and year-end profits reach $2,100,000.

1938 -

Walter S. Mack, Jr., V.P. of Phoenix Securities Corporation is elected President of the Pepsi-Cola Company. Mack, who considers advertising the keystone of the soft drink business, turns Pepsi into a modern marketing company.

1939 -

The "Pepsi & Pete" comic strip introduces the "Twice as much for a nickel" theme in newspapers.

Pepsi-Cola Company names Mack as CEO.

The Board of Directors removes Guth from the Pepsi payroll after he plans to personally acquire a competing cola.

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In 1940, the Pepsi Cola company made history when the first advertising jingle was broadcast nationally on the radio. The jingle was "Nickel Nickel" an advertisement for Pepsi Cola that referred to the price of Pepsi and the quantity for that price "Nickel Nickel" became a hit record and was recorded into fifty-five languages.

1941 - The New York Stock Exchange trades Pepsi's stock for the first time.

In support of the war effort, Pepsi's bottle crown colors change to red, white, and blue.

1942 -

One on many company sponsored efforts to allow soldiers to communicate with friends or family. This record was made in New York City but often booths would be set up with mobile recording equipment that was bought to where the soldiers were. Shell material on solid core. 78 rpm.

1943 -

Pepsi's theme line becomes "Bigger Drink, Better Taste."

1948 - Corporate headquarters moves from Long Island City, New York, to midtown Manhattan.

1950 -

Alfred N. Steele becomes President and CEO of Pepsi-Cola. Mr. Steele's wife, Hollywood movie star Joan Crawford, is instrumental in promoting the company's product line.

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Pepsi receives its new logo, which incorporates the "bottle cap" look. The new logo is the fifth in Pepsi history.

1953 -

"The Light Refreshment" campaign capitalizes on a change in the product's formula that reduces caloric content.

1955 -

Herbert Barnet is named President of Pepsi-Cola.

1959 -

Pepsi debuts at the Moscow Fair. Soviet Premier Khrushchev and U.S. Vice President Nixon share a Pepsi.

1960 -

Young adults become the target consumers and Pepsi's advertising keeps pace with "Now it's Pepsi, for those who think young."

1962 -

Pepsi receives its new logo, the sixth in Pepsi history. The 'serrated' bottle cap logo debuts, accompanying the brand's groundbreaking "Pepsi Generation" ad campaign.

1963 -

After climbing the Pepsi ladder from fountain syrup salesman, Donald M. Kendall is named CEO of Pepsi-Cola Company. Pepsi-Cola continues to lead the soft drink industry in packaging innovations, when the 12-ounce bottle gives way to the 16ounce size. Twelve-ounce Pepsi cans are first introduced to the military to transport soft drinks all over the world.

1964 -

Diet Pepsi, introduced as America's first national diet soft drink. Pepsi-Cola acquires Mountain Dew from the Tip Corporation.

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1965 - Expansion outside the soft drink industry begins. Frito-Lay of Dallas, Texas, and Pepsi-Cola merge, forming PepsiCo, Inc.

Military 12-ounce cans are such a success that full-scale commercial distribution begins.

Mountain Dew launches its first campaign, "Yahoo Mountain Dew...It'll tickle your innards."

1970 -

Pepsi leads the way into metrics by introducing the industry's first two-liter bottles. Pepsi is also the first company to respond to consumer preference with lightweight, recyclable, plastic bottles. Vic Bonomo is named President of Pepsi-Cola. The Pepsi World Headquarters moves from Manhattan to Purchase, NY.

1974 -

First Pepsi plant opens in the U.S.S.R. Television ads introduce the new theme line, "Hello, Sunshine, and Hello Mountain Dew."

1976 -

Pepsi becomes the single largest soft drink brand sold in American supermarkets. The campaign is "Have a Pepsi Day!" and a classic commercial, "Puppies," becomes one of America's best-loved ads. As people get back to basics, Pepsi is there as one of the simple things in life.

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1977 - At 37, marketing genius John Sculley is named President of Pepsi-Cola.

1978 - The company experiments with new flavors. Twelve-pack cans are introduced.

1980 - Pepsi becomes number one in sales in the take home market.

1981 -

PepsiCo and China reach agreement to manufacture soft drinks, with production beginning next year.

1982 -

Pepsi Free, a caffeine-free cola, is introduced nationwide. Pepsi Challenge activity has penetrated 75% of the U.S. market.

1983 -

Mountain Dew launches the "Dew it to it" theme.

1984 -

Pepsi advertising takes a dramatic turn as Pepsi becomes "the choice of a New Generation." Lemon Lime Slice, the first major soft drink with real fruit juice, is introduced, creating a new soft drink category, "juice added." In subsequent line of extensions, Mandarin Orange Slice goes on to become the number one orange soft drink in the U.S.

Diet Pepsi is reformulated with NutraSweet (aspartame) brand sweetener.

1985 -

After responding to years of decline, Coke loses to Pepsi in preference tests by reformulating. However, the new formula is met with widespread consumer rejection, forcing the re-introduction of the original formulation as "Coca-Cola Classic." The cola war takes "one giant sip for mankind," when a Pepsi "space can" is successfully tested aboard the space shuttle. By the end of 1985, the New Generation campaign earns more than 58 major advertising and film-related awards. Pepsi's campaign featuring Lional Richie is the most remembered in the country, according to consumer preference polls.

1986 -

Chairman Donald M. Kendall retires and is succeeded by D. Wayne Calloway. 7Up international is acquired in Canada. Pepsi-Cola acquires Mug Root Beer.

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1987 -

Pepsi-Cola President Roger Enrico is named President/CEO of PepsiCo Worldwide Beverages. Pepsi-Cola World Headquarters moves from Purchase to Somers, New York. After a 27 year absence, Pepsi returns to Broadway with the lighting of a spectacular new neon sign in Times Square.

1988 -

Craig Weatherup is appointed President/CEO of Pepsi-Cola Company.

1989 -

Pepsi lunges into the next decade by declaring Pepsi lovers "A Generation Ahead." Chris Sinclair is named President of Pepsi-Cola International. introduces an exciting new flavor, Wild Cherry Pepsi. Pepsi-Cola

1990 -

American Music Award and Grammy winner rap artist Young MC writes and performs songs exclusively for national radio ads for Pepsi. Ray Charles joins the Pepsi family by endorsing Diet Pepsi. The slogan is "You Got The Right One Baby."

1991 -

Craig E. Weatherup is named CEO of Pepsi-Cola North America, as Canada becomes part of the company's North American operations. Pepsi introduces the first beverage bottles containing recycled polyethylene terephthalate (or PET) into the marketplace. The development marks the first time recycled plastic is used in direct contact with food in packaging.

1992--

Pepsi-Cola launches the "Gotta Have It" theme which supplants the longstanding "Choice of a New Generation."

Pepsi-Cola and Lipton Tea Partnership is formed. Pepsi will distribute single serve Lipton Original and Lipton Brisk products. Crystal Pepsi: a refreshing, clear soda that is caffine free has 100% natural flavors, no preservatives and is low in sodium, goes national. Mountain Dew introduces the popular theme line, "Get Vertical."

1993 -

Brand Pepsi introduces its slogan, "Be Young. Have Fun. Drink Pepsi." Pepsi-Cola profits surpass $1 billion. Pepsi introduces an innovative 24-can multipack that satisfies growing consumer demand for convenient large-size soft drink packaging.

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"The Cube" is easier to carry than the traditional 24-pack and it fits in the refrigerator.

1994 -

New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi CEO Craig Weather up explaining the relationship between freshness and superior taste to consumers. Pepsi Foods International and Pepsi-Cola International merge, creating the PepsiCo Foods and Beverages Company.

1995 -

In a new campaign, the company declares "Nothing else is a Pepsi" and takes top honors in the year's national advertising championship.

1996 -

In February of this year, Pepsi makes history once again, by launching one of the most ambitious entertainment sites on the World Wide Web. Pepsi World eventually surpasses all expectations, and becomes one of the most landed, and copied, sites in this new media, firmly establishing Pepsi's presence on the Internet.

1997 -

In the early part of the year, Pepsi pushes into a new era with the unveiling of the GeneratioNext campaign. GeneratioNext is about everything that is young and fresh; a celebration of the creative spirit. It is about the kind of attitude that challenges the norm with new ideas, at every step of the way. PepsiCo. announces that, effective October 6th, it will spin off its restaurant division to form Tricon Global Restaurants, Inc. Including Pizza Hut, Taco Bell, &KFC, it will be the largest restaurant company in the world in units and secondlargest in sales.

1998 -

Pepsi celebrates its 100th anniversary. PepsiCo. Chairman and CEO Roger A. Enrico donate his salary to provide scholarships for children of PepsiCo employees. Pepsi introduces PepsiOne - the first one calorie drink without that diet taste!

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2.1.12000 Milestones: Pepsi - Cola revives its Pepsi Challenge advertising campaign. Challenge includes Pepsi One and Diet Coke as well as well as regular cola. Pepsi Cola team up with yahoo Inc., the biggest web navigation company, in a Pepsi- Cola revives its Pepsi Challenge advertising campaign. Challenge includes Pepsi One and Diet Coke as well as well as regular cola. Pepsi Cola team up with yahoo Inc., the biggest web navigation company, in a Multimedia marketing campaign aimed at teens and young adults. Tropicana, in a joint venture with Galaxy Foods Co., introduced an icy smoothie soymilkand-fruit drink, made with juice, fruit puree along with soymilk and soy protein. Aquafina brand bottled water became the best-selling brand of single-serve bottled Water in US ret ail channels. Pepsistuff.com, a website for merchandise, discounts and digital music files form biggest names in movies, music, video games. Apparel and sports is launched in joint promotional with Yahoo.

2.1.22001 Milestones:
Pepsi-Cola Company launched Dole single-serve juices in vending machines, coolers and other retail outlets throughout the United States. Pepsi-Colas flagship brand had the new tagline, The joy Of Pepsi.

Tropicana celebrated a company milestone of 300 billion fresh an orange squeezed since the company began making countrys first ever mass distributed, not-from-concentrate juice in1947.

Pepsi-Cola launches the bold new Mountain Dew Code Red nationwide in United Sates. Tropicana introduced smoothies. A natural juice-based product, smoothies combine fruit juices and non-fat yogurt into a smooth, filling drink that delivers nutrition, taste and convenience.

Frito-Lay introduces Lay's Bistro Gourmet potato chips. Pepsi-Cola Company introduces a "Pepsi Twist." Regular and diet versions of thecrisp new cola with lemon are entering retail outlets in selected U.S. markets.

SLAM, the orange brand Mirinda, is launched in Italy. xviii

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On August 2, PepsiCo merges with The Quaker Oats Company, creating a $25 Billion food and Beverage Company focused on the rapidly growing consumer Demand for convenience.

2.1.32002 Milestones:

Aquafina debuts new line of great-tasting enhanced waters. Aquafina Essentials target active, health-conscious adults in four lightly sweetened varieties including B-Power, Calcium+, Daily C and Multi-V in 20-oz. bottles.

Gatorade introduced new Gatorade ICE in three flavors- Orange, Lime and Strawberry. Tropicana Pure Premium announced sponsorship of Disney's award-winning show The Lion King.

Tropicana Pure Premium introduces 14-oz. single-serve resalable bottle you can take with you for the on-the-go- consumers. Diet Pepsi has a new look.

"Mr. Green," a green-tinted carbonated soft drink with caffeine and ginseng, is launched under SoBe's New Age beverage line in April.

Aquafina debuts new line of great-tasting enhanced waters. Aquafina Essentials target active, health-conscious adults in four lightly sweetened varieties including B-Power, Calcium+, Daily C and Multi-V in 20-oz. bottles. PepsiCo published Health and Wellness Philosophy.

Frito-Lay announces plans to introduce Lay's Reduced Fat chips and Cheetos Reduced Fat snacks. Brand Pepsi has a new look.

Tropicana introduces a new campaign with the tag line "So pure. So alive.

Tropicana Pure Premium." PepsiCo introduced Marathon Kids, a program that encourages kids and their families to be more physically active and it got huge success throughout the world.

2.1.42003 Milestones:
Pepsi-Cola launches Sierra Mist nationally. PepsiCo launches "Get Active/Stay Active" program. Quaker Chewy introduces Quaker Chewy Wholesome Favorites and Quaker

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2.1.5 Chewy Trail Mix. .

Gatorade unveils In-Car Hydration System for NASCAR Drivers. SoBe sponsors U.S. Open Snowboarding Championships. Frito-Lay announces new line of snacks made with organic ingredients called Natural Snacks."

PepsiCo creates PepsiCo International, the business that will unite all international snack, beverage and food units in an effort to drive faster growth and improved profitability around the world. PepsiCola trademark turned 100 years old. Pepsi Vanilla is launched in the United States. Tropicana introduced Tropicana 100% Juice Blends.

2.1.6 2004 Milestones:

PepsiCo Launches 'Health Roads' Wellness Benefit for Associates and Their Families

PepsiCo's new "Smart Spot" program is featured as an example of the food industry's focus on health and wellness in today's edition of USA Today.

Frito-Lay Launches Doritos and Cheetos Halloween Treat Multi-Sacks. Frito-Lay's 24-count Multi-Sack variety pack won the Institute of Packaging Professional's (IOPP) Integrity Award, one of the industry's top awards, at this year's Ameri Star Packaging Awards.

2.1.7 2005 Milestones:

PepsiCo India re-launches Mirinda SoBe Launches New SoBe Life Water Cheetos kicks off the biggest marketing campaign in its history with "Under cover Chester," an integrated communications platform that asks consumers to help Chester Cheetah recover the stolen recipe for Cheetos In selected cities cross the United States, Pepsi distributes more than three million free cans of newly reformulated Diet Mountain Dew, marking the largest single-day sampling effort in company history. Frito-Lay announces the launch of a new line of snack chips called Lay's Channel of Distribution of Pepsi xx

Sensations and Tostitos Sensations

Frito-Lay launches Tostitos Multigrain; new snack brings flavor of four wholesome grains to one of America's favorite tortilla chips.

Lay's Introduces Hot 'n Spicy KC Masterpiece BBQ Potato Chips. Frito-Lay cuts saturated fat in Lay's more than 50% for the health of the consumers. Tropicana debuts Tropicana Pure--a new line of 100% premium juices Indra Krishnamurthy Nooyi named Chief Executive Officer of PepsiCo as of October 1, 2006

Frito-Lay kicks of its nationwide rollout of Lay's with 100% Pure Sunflower Oil PepsiCo announces it will acquire New Zealand snack company Bluebird Foods

2.1.8 2007 Milestones

PepsiCo signs Maria Sharapova for International endorsement of Gatorade and Tropicana.

PepsiCo announces new Diversity & Inclusion Leadership Award inspired by Steve Reinemund. Aquafina launches Aquafina Alivea low calorie, vitamin-enhanced water beverage. Fritos Corn Chips celebrates 75th Anniversary with retro packaging.

Tropicana launches Tropicana Fruit Squeeze, a 20-calorie drink with real Tropicana fruit juice.

Lay's launches 'Share the Joy' program to help the Make a Wish Foundation raise funds.

PepsiCo Announces 25% Dividend Increase and Raises Share Repurchase Target; Nooyi Assumes Chairman Title.

EPA Names PepsiCo 2007 ENERGY STAR(R) Partner of the Year. PepsiCo Makes Largest Corporate Purchase of Renewable Energy Certificates. Pepsi launches "Design Our Pepsi Can" National Promotion. Indra Nooyi receives the Outstanding American by Choice Award. PepsiCo makes Fortune magazine's '100 Best MBA Employers' list. Indra Nooyi named as 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.

Pepsi wins Webby Award for its execution of the "Best Sports Website" xxi

Channel of Distribution of Pepsi

PepsiCo earns spot in Black Enterprise Magazine's '40 Best Companies for Diversity'.

2.1.9 2008 Milestones:

PepsiCo Foundation announces two major new grants to Water Partners and Safe Water Network programs to provide access to safe water and sanitation in developing countries.

PepsiCo Foodservice and Naked Juice Expand Starbucks Presence. PepsiCo International's China Foods Wins "China's Top Leaders 2008" Award. Wall Street Journal Article Recognizes PepsiCo for Leadership in Employment of People with Different Abilities. PepsiCo and Frito-Lay Join Smart Way in Commitment to Reduce Greenhouse Gas Emissions.

PepsiCo Beats Coke in Race to Launch New Natural Sweetener (Stevia). PepsiCo Commits to Reducing Acryalmide Levels in Potato Chip Products and Restructured Potato Snacks in California.

Subway Names PepsiCo "Vendor of the Year" for Sustainability Leadership.

2.1.10 2009 Milestones

PepsiCo is named to the 'Best Companies for Multi Cultural Women' list by Working Mother magazine

PepsiCo joins Ceres, a leading coalition of investors, environmental groups and public interest organizations working to address sustainability efforts Near East brand launches two new productsPearled Couscous side dish and Near East Gourmet Meal Kits SoBe Life water introduces two new zero-calorie flavors Acai Fruit Punch and Mango Melon

Pepsi celebrates its 75th anniversary in Canada PepsiCo honored with 'Respect Award' for its commitment to diversity by the Gay, Lesbian and Straight Education Network (GLSEN)

PepsiCo-Almarai joint ventures acquires stake in Jordanian dairy company, Teeba Frito-Lay Turkey honored with 'Environment-Friendly Industrial Plant' award from the Kocaeli Chamber of Industry

PepsiCo creates Baked Snacks North America Business Unit to meet consumers interest in more nutritious snacks and foods

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PepsiCo opens new Russian beverage plant in Domodedovo, the largest bottling plant in PepsiCo's global system

Naked Juice becomes the first nationally distributed brand to use 100% recycled plastic bottles with the Naked re newabottle

Aunt Jemima brand celebrates 120 years PepsiCo is awarded several 2009 beverage innovation honors during Drink tec trade show

Sabritas and PepsiCo Mexico Beverages receive three Effie 'Top Marketing Campaign' awards TrueNorth expands offerings with three new nut/fruit combinationsApple Cinnamon, Citrus Burst and Almond Cranberry

IZZE Sparkling Juice launches at Panda Express restaurants across the country PepsiCo Brazil signs pledge to change marketing campaigns to children PepsiCo says it will form new bottling unit; Eric Foss, 27-year industry veteran, will be CEO

PepsiCo joins Healthy Weight Commitment Foundation to help reduce obesity in the US

PepsiCo wins U.S. EPA SmartWay Environmental Excellence award for its leadership in conserving energy

Sabritas and Gamesa-Quaker unveiled the first every hybrid trucks in Mexico PepsiCo U.K. and Ireland were named as one of the 'Top 50 Places Where Women Want To Work' by The Times, an influential UK newspaper and online publication

PepsiCo is recognized at two events for its dedication to Talent Sustainability and dedication to Asian American employees2009 Best Companies for Asian Pacific Americans from Asian Entrepreneur, Top 10 Companies for Asian Americans from AMBA

2.2Mission To be the worlds premier consumer Products Company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business and the communities in which we operate. And in everything we do, we strive for honesty fairness and integrity. 2.3 Vision To improve all aspects of the world in which we operate environment, social economic creating a better tomorrow than today. We believe in Sustainability. Channel of Distribution of Pepsi xxiii

2.3.1 Popular Slogans The main slogan being used by Pepsi Food (soft drink) all over India for its cola product has been, More Cricket, More Pepsi Have a Pepsi Day Ask for more Aazadi Dil ki Yeh pyas hai badi Nothing official about it Ye Dil Mange More Yahi Hai Right Choice Baby Oye bubbly Ye Hai Youngistan Meri Jaan 2.4Logo

Quality Policy PepsiCo believes that environmental stewardship and protecting the health and safety of our people underpin our core values and help us deliver on Performance with Purpose, our goal to deliver long-term, sustainable financial performance. We believe that environmental incidents and occupational injuries and illnesses are preventable and we aspire to an incidentfree workplace. We implement our EHS policy through the PepsiCo Global Environmental, Health and Safety Management System (GEHSMS).

Guided by our Values and consistent with our Global Code of Conduct, PepsiCo has established these Environmental, Health and Safety Principles:

1. Ownership Culture: We build a proactive culture by driving ownership of environment, health and safety at the individual, managerial and organizational levels. We engage, consult with, and train our people and actively encourage participation.

Channel of Distribution of Pepsi xxiv

2. Business Integration: We include environmental, health and safety considerations in both our short- and long-term business decisions.

3. Resource Allocation: We provide appropriate resources to implement our environmental, health and safety management system to identify, assess and control risks. We share environmental, health and safety best practices across the company.

4. Regulatory Compliance: We apply appropriate environmental, health and safety management practices in order to comply with company standards, applicable legal requirements, and other requirements. We conduct regular audits to verify compliance.

5. Performance Measurement: We establish meaningful metrics and monitor our environmental, health and safety performance against goals, using these metrics to guide our continual improvement.

6. Continual Improvement: We monitor emerging issues and keep abreast of regulatory changes, technological innovations and stakeholder interests in order to implement effective and sustainable solutions to minimize waste, reduce resource consumption, protect natural resources, reduce energy consumption, and create a healthy and safe work environment.

7. Stakeholder Collaboration: We collaborate with our contractors, licensed bottlers, suppliers, customers and local communities to reduce the environmental, health and safety impacts of daily operations, technology and products. By working with governments, academia, nongovernmental organizations, business associations and other interested stakeholders, we strive to develop effective and sustainable solutions to environmental, health and safety challenges we face in our business activities. 8. Annual Review: We annually review the companys performance in implementing this policy and update it as needed.

It is the responsibility of our senior leaders to ensure this policy is understood and effectively communicated, and implemented throughout PepsiCo, worldwide. All employees are responsible for understanding the impacts of this policy on their day-to-day work practices and are expected to apply and support the principles stated above. Channel of Distribution of Pepsi xxv

Channel of Distribution of Pepsi xxvi

2.5Product Profile Lumbini Beverage Pvt. Ltd. is said to be a Asias largest fobo bottle plant in the Hajipur district of Bihar. Producing as many as variety of product for the Pepsi Co. Coco-cola does not produce the PET at its Patna plant they fulfill its from Guwahati plant.

2.5.1 Products:

The main products of Lumbini Beverages Pvt. Ltd. are such as:

Product Pepsi 200 ml, 300 ml, 500 ml, 2000 ml Mirinda (O) 200 ml, 300 ml, 600ml, 1000 ml, Slice 250 ml, 500ml, 1200ml,

Colour Burnt Sugar

Flavour Cola

Sunset

Orange

Cloudy Mango (Sunset) Non-Colour Clear Lemon Tetrazin 1000ml

Mango

200 T.P. 7 UP 300 ml, 600ml, 2000 ml. Mountain Dew 600 ml, 2000ml, Team (Soda) 300 ml, 600ml Aquafina Water

Lime Lemon Lemon Colourless

PEPSICOLA Its cola flavor and its name sake is cola and its ingredients like carbonated water, sugar added (10gm/100gm) first major brand of Pepsi cola is sold as caffeine free Pepsi. But today its sold as contain no fruit and caffeine.

MIRINDA its a brand of soft drinks available in fruit varieties including orange lemon grape fruit. Strawberry, apple, pineapple,
Channel of Distribution of Pepsi xxvii

banana, passion fruit and grape fruits. Its part of beverage area often referred to as the flavor segment compromising carbonated and non carbonated fruit flavor beverage.

MOUNTAIN DEW Mountain dew (and its energy drink counterpart known as AMP) often incurs the disapprovals of some health experts due to its relatively high caffeine content for a soft could lead to allergic reaction to some people this has also led to an urban legend mountain dew reduces the Sperm count of male drinkers mountain dew like many citrus acid and sodium benzoate.

SLICE is line fruit flavored soft drinks. Varieties of slice have included Apple, Fruit PUNCH, Grape, Passion fruit, Peach, Mandarin Orange, Pineapple, Strawberry, Cherry, Cola, Red, Cherry Lime and Dr related product are Fanta, Sprite, Sierra Mist.

7UP 7up is brand of lemon line flavored non-caffricated soft drinks. 7up plus is family of fruit flavored soft drinks touted as a healthy alternative it contains no caffeine and contain 2 crab per serving as well as % apple juice two additional flavors have been added to the line cherry and island fruit. 7up launched a range of flavored water. AQUAFINA It is a brand of bottle water. Aquafina uses PepsiCos own seven-step purification system, which it calls Hydro-7, which includes charcoal filtration, reverse osmosis and ozonation. Aquafina uses the term Purified Drinking Water on its label. Aquafina is sold in 12-fluid ounce, 500milliliter (16.9fl oz), 20-ounce, 24 ounce, and 1 liter and 1.5. liter bottles.
DIET SODA

Channel of Distribution of Pepsi xxviii

Diet soda are sugar free, artificially sweetened, non alcoholic carbonated beverage generally marketed towards health conscious people, diabetics, athletics, and other who want to lose weight/ stay fit. Scheme : Pepsi, under Lumbini Beverages has offered a lot of scheme for sales Promotion schemes. 1. 2. Free scratch card two cases of 200ml Free scratch card on one cases of 2 Ltr.

Besides all these schemes on 10th June 2005 to 25th June the company celebrated the OYE BABLI schemes day where he retailer were given the following schemes. 1. 2. 3. Free 2 Bottles of 200ml. On purchase of each case of 200ml. Free 2Ltr. Pet bottle on purchase on purchase of one case of 2 Ltr. Free 3 canes of 250ml Bottle on purchase of one case of 2 Ltr.

2.5.2 Different Price Range of the Product

Price/Carat Pepsi 7up Mirinda (O) Mininda (L) Slice Mountain Dew

200ml Rs. 216 Rs. 168 Rs. 168 Rs. 168 Rs. 168 Rs. 168

250ml 300ml --------------------------------------------------

500ml -------------------------

600ml Rs. 492 Rs. 492 Rs. 492 Rs. 492 Rs. 492 Rs. 492

1.5 ltr. -----------------

2.0 ltr Rs. 504 Rs. 504 Rs. 504 Rs. 427

Rs. 582 --------Rs. 504

NOTE :- In one carat = 24 bottle In one pet = 12

Channel of Distribution of Pepsi xxix

2.5.3 Contains of Pepsi

Carbonated Water High fructose corn syrup and or sugar Caramel Color, Phosphoric acid, Caffeine, Citric acid and Natural flavors Calories Total Fat Sodium Potassium Total carbohydrates Sugars Protein Caffeine 100 0g 5 mg 0 mg 27 mg 27 g 0g 0.25 g

Channel of Distribution of Pepsi xxx

2.6 Competitors Information: PepsiCo is facing the competition mainly by Coke. It has competition for all its products by Coke.

COCO-COLA:-It is carbonated soft drinks sold in stores, restaurants in more than 200 Countries. It is produced by the Coco- Cola Company and is often referred to as simply Coke as Cola or POP. Originally intended as a patent medicine when invented in the late 19th century by John Stith Pemberton, Coco-Cola was brought out by businessman Asa Griggs cadler, whose marketing tactics led coke to its dominance of the world soft drinks market throughout the 20 century.

The Coco-Cola Company produces concentrate, which is then sold to various licensed CocoCola bottlers throughout the world. The major fight between Pepsi and Coco-Cola product is as follows:-

(1) PEPSI (2) SLICE (3) 7UP (4) MIRINDA (5) NIMBOOZ (6) PEPSI MAX
(7) AQUAFINA

COCO-COLA MAAZA SPRITE FANTA LIMCA THUMPSUP KINLEY WATER

Channel of Distribution of Pepsi xxxi

2.7 Organizational Hierarchy of LBPL

An ideal organizational structure facilities management and the operation of the enterprise and its helps the organization in achieving its goal.

In a simple term in which various parts or components are interrelated or inter connected and this way it is the established pattern or relationship among various position and activities. Thus structure is the relationship among various function of the organization in the established manner.

The managing director holds the top position. At present, the managing director of Lumbini Beverage Pvt. Ltd. is Mr. Charan Khilani. But overall policies regarding management decisions and all executives function or performance look after by the day to day decision and general administration well as management. The M. D. has given the power of attorney and authority to director Mr. Ravi Khilani. Mr. Ravi Khilani who is well advised by the M.D.

The director Mr, Ravi Khilani looks after all functional departments that sales production, accountant, personnel and purchased, Though the manager all the functional departments his specially designated as head of personnel department.

Every department have to report directly to the managing director and is responsible to his only for working in spite of this all department are under the control of the director Mr. Ravi Khilani because he is the Chief executive of the company cited earlier. The overall organizational structure can be shown as:

Channel of Distribution of Pepsi xxxii

OVERALL ORGANIZATIONAL STRUCTURE OF LUMBINI BEVERAGE PVT. LTD.

Managing Director (MD) C.E.O

H.O.S.

T.D.M

B.D.M

A.D.C

C.E

P.S.R

R.A/ MERCHANDISER

The manager marketing is incharge of all marketing activities that is sales promotion, publicity, and advertisement, marketing study and shipping. But the main function of the marketing is to exercise the control over the channel of distribution.

Channel of Distribution of Pepsi xxxiii

The managers marketing assisted by sales executives, city sales executives and rural sales executives and sales executive incharge of shipping department. This can be presented by the organizational chart of the sales department as follows :-

DIRECTOR

MANAGING DIRECTOR

TDM
C.E.

P.S.R.

SALESMAN

LOADERS

Channel of Distribution of Pepsi xxxiv

3. MCKINSEYS 7S FRAME:

McKinseys 7s model states that:-There are seven basic dimensions, which represent the core of managerial activities. These are the levels which the executives use to influences complex and large organizations. There was a concerned effort on the part of the originators of the model to coin the managerial variables with cords beginning with the letter S so as to increase the communicator power of the model. Companies in which these soft elements are present are usually more successful in implementation of the strategy. (1) Strategy:-The direction and scope of the company over the long term. (2) Structure:-The basic organization of the company, its department, reporting lines, areas of expertise and responsibility. (3) System:-Formal and informal procedures that govern everyday activities concerning everything from managerial information system, through to the system at the point of contact with the customer. (4) Skill:-The capabilities and competencies that exist within the company and what it does towards valued behavior. (5) Shared value:-The values and belief of the company which ultimately guide towards valued behavior. (6) Staff:-The Company people resources and how they are developed, trained and motivated. (7) Style:-The leadership approach of top management and the company overall operating approach.

4. SWOT Analysis:
Channel of Distribution of Pepsi xxxv

During the summer training, I have studied about the sales promotion activities of L.B.P.L. while communicating about the schemes to retailers; I have interviewed retailers on the basis of framed questionnaire. This helps me in studying the following points:-

Strength:

Weakness:
No cost cutting programs for the projects Promotional activities in the rural market are not up to the mark as compare to the urban market. Brand Pepsi in cola flavor is one of the popular lagging behind being with its nearest competitor, only due to high sugar content and less thrilling taste. Not viability of all the products on demand.

Lumbini beverage Pvt. Ltd. Is franchise own Operation (FOBO) of worlds most famous soft drinks PepsiCo.

LBPL users state of art fully automatic machines and technology for the production and bottling of soft drinks.

It has very strong network and built market and currently holds all the parts of the state. It has wide range of project varieties.

Opportunity:
convenient of efficient at The executive of company meet the need for more information.

Threat:
lime flavor as a very good market share due to its taste. Coca-Cola is now spending more and more to boost the sale.

LBPL Makes the buying process more One of the products of their competitor in

It takes return. The leakage burst bottle etc.

4.1 STRENGTH: Lumbini beverage Pvt. Ltd. Is franchise own Operation (FOBO) of worlds most famous soft drinks PepsiCo. LBPL users state of art fully automatic machines and technology for the production and bottling of soft drinks.

Channel of Distribution of Pepsi xxxvi

 It has very strong network and built market and currently holds all the parts of the state. It has wide range of project varieties.

4.2 WEAKNESS: No cost cutting programs for the projects Promotional activities in the rural market are not up to the mark as compare to the urban market. Brand Pepsi in cola flavor is one of the popular lagging behind being with its nearest competitor, only due to high sugar content and less thrilling taste. Not viability of all the products on demand.

4.3 OPPORTUNITIES: LBPL Makes the buying process more convenient of efficient at The executive of company meet the need for more information. It takes return. The leakage burst bottle etc. 4.4 THREATS: One of the products of their competitor in lime flavor as a very good market share due to its taste. Coca-Cola is now spending more and more to boost the sale.

Channel of Distribution of Pepsi xxxvii

5.LEARNING EXPERIENCE
The study was helpful in the following respects; To understand how exactly an organization works. To know how important is retailers and how it increases sales of pepsi. To interact with people and get their views on organizational issues. Importance of Marketing in an organization. To understand the need for Channel of Distribution.

Channel of Distribution of Pepsi xxxviii

Part - B

Channel of Distribution of Pepsi xxxix

6. General Introduction:
6.1 Channel of distribution Meaning: A channel of distribution or trade channel is the path or route along which goods move from producers to ultimate consumers or industrial users. In other words, it is the distribution network through which a producer puts his product in the hands of actual users. The channel of distribution includes the original producer, the final buyer and any middlemen-either wholesaler or retailer. The term middleman refers to any institution or individual in the channel which either acquires title to the goods or negotiates or sells in the capacity of an agent or broker. But facilitating agencies that performs or assist in marketing function are not included as middlemen in the channel of distribution. This is because they neither acquire title to the goods nor negotiate purchase or sale. Such facilitating agencies include banks, railways, roadways, warehouses, insurance companies, advertising agencies, etc. The following diagram (chart) is illustrative of the channel of distribution which may exist in a market.

Source Given by TDM ( LBPL)

The above chart indicates that the number of middlemen may vary. If there is direct sale by the produce to the consumers then there is no middleman. But that is very rare. As the chart shows the producer may sell goods to retailer who may then sell the same to consumers. The producer may sell goods to wholesalers who may inturn sell to retailers and the retailer may sell to consumers. The fourth alternative channel of distribution is when any agent/dealer intervenes between the producer and retailers and acts as a middlemen. The agent is Channel of Distribution of Pepsi xl

appointed by the producer for the sale of goods to the retailers. Another alternative channel is there when producers agent sells goods to wholesalers who sell to retailers. Agent/dealer is an independent person/firm buying goods and selling them to retailers. Agent/dealer may also sell to wholesalers who may then sell to retailers and goods are thus made available to consumers. In the channel of distribution there may be more than one agent/dealer and wholesaler.

6.2 Channel of Distribution of Lumbini Beverages Pvt. Ltd.

To make its products available at the right place at the right time in the market get sales department of the market get sales department of the company pays major attention towards controlling the sales of distribution.

Distribution Network of Pepsi

Source Given by TDM ( LBPL)

6.3 DISTRIBUTION STRATEGIES

A Company can choose any of the following distribution types: Exclusive Distribution Selective Distribution Intensive Distribution

PEPSI HAS ADOPTED THE INTENSIVE DISTRIBUTION STRATEGY. Channel of Distribution of Pepsi xli

6.3.1 INTENSIVE DISTRIBUTION: A Strategy of intensive distribution is characterized by placing the goods or services in as many outlets as possible. When the consumer requires a great deal of location convenience, it is important to offer greater intensity of Distribution. This strategy is generally used for convenience items such as Tobacco, gasoline, and soap, snack foods & bubblegum.

Manufactures are constantly tempted to move from exclusive or selective distribution to more intensive distribution to increase their coverage and sales and you could find Pepsi in nursing homes, confectionery shops, departmental stores; you name it & Pepsi is available there.

6.3.2 DISTRIBUTION CHANNEL REDIFINED Pepsi has redefined distribution to strengthen their competitive advantage in the emerging consumer and market scenario. Their earlier focus was to drive wide availability and enable easy access to their brands for consumers. Now they seek to go well beyond this distribution paradigm. Their new approach is more holistic touching consumers in multiple ways at the point of purchase and more importantly, creating opportunities for customers to receive brand message and experience our brands.

They are proactively addressing these emerging trends by approaching distribution and channels in a much broader way. They are shifting emphasis from mere reach or availability expansion to touching consumers with a 3- way convergence- of product availability, brand communication and higher level of brand experience.

They are thus going beyond delivering products and creating greater engagement and interaction around the purchasing experience.

Channel of Distribution of Pepsi xlii

Product Availability

Point Of Purchase

Brand Communication

Brand Experience

Source- Given by distributor Pepsis reinvention of distribution is built on an understanding of emerging consumer trends, the retail environment and the growth drivers of our brands. Pepsis distribution system is a key external resource. Normally it has taken years to build and cannot be easily changed. It ranks in importance with key internal resources such as manufacturing, research, engineering and field sales personals. It represents significant corporate commitment to set policies and practices that constitute the basic fabric on which is woven an extensive set of long run relationship.

7. Statement of the Problem

The study was conducted to know the problems faced by the retailers and distributors and their perception towards the company and the customer's perception towards the PepsiCo.

8. Objective of the Study

I. II. III. IV. To find out the problems faced by the channels of distribution. To increase penetration in the market. To find out availability of Pepsi & Coke in the outlets. To see the distribution gap by which the product is selling.

Channel of Distribution of Pepsi xliii

11. RESARCH METHODOLOGY:

Research in common refers to a search of knowledge. One can also define research as a scientific & systematic search for pertinent information of a specific topic. It is the pursuit of truth with the help of study observation, comparison & experiment.

11.1 DEVELOPING RESARCH PLAN:

After deciding the objective of marketing research the next step is deciding Research plan for gathering effective information related to this research project. The research consists of following steps, which are discussed subsequently.

11.2 Research Design:

11.2.1 Descriptive Research: In my market survey descriptive research process was carried out to describe the market characteristics, consumer profiles, distribution strategies, and market potential.

11.2.2 Data Source: During project study I use both primary as well as secondary data source. For primary data collection I visited various retailers in Muzaffarpur & for secondary data I went through Books, Journals & Internet. The information collected is relevant, correct & unbiased.

11.2.3 Research Technique: I followed survey technique for collecting the data. In market survey research approach. Here, I carried out information from retailers have carefully selected the instrument & methods of surveying like I have chosen personal contact methods because of higher response rate & meaningful responses this helped me to get the general feedback in Pepsi, etc.

11.2.4 Reach Instrument: The research instrument used was EDS form. In which market information detail of each outlet should be filled in EDS form. For this I have visited each & every outlet & check all Channel of Distribution of Pepsi xliv

the brands & packs of Pepsi are available or not or which one is available in comparison with Coke & filled it in EDS forms. In my research process I have used closed ended & openended questionnaire where respondents could answer in their own manner. Through this I was able to extract information from the respondents about Pepsis products & the competitors.

11.2.5 Sampling Plan: In designing the sampling plan following points were considered:

11.2.6 Sampling Unit: It includes who is to be a surveyed retailer of Muzaffarpur.

11.2.7 Sampling Size: I have surveyed about each & every outlet of the area specified to me so size would reach up to 100 retailers.

Elementary Retailers. The geographical limit is the area of Muzaffarpur.

Contact Method: In my research process, I have collected information through personal interview process with the help of EDS. Form given by the company because it is the most reliable & accurate method for collecting primary data. Through this, the analysis of body language & facial expressions can be made.

12. Methods of data interpretation:

In this market study I have used pie chart for data analysis & interpretation because pie chart is the easiest & comprehensive medium for presentation of data. Sampling unit is a single retailers outlet which may be:-provision store, stationery shop, eatery & kiosk.The universe studied is the sum of the retailers in the Muzaffarpur area.

Channel of Distribution of Pepsi xlv

Channel of Distribution of Pepsi xlvi

13. Data Analysis and Interpretation

During the summer training, I have studied about the Channel of Distribution while communicating about the schemes to retailers; I have interviewed retailers on the basis of framed questionnaire. Q.1. Pepsi Co have good distributions channel? TABLE SHOWING WHAT RESPONDENT THINKS ABOUT PEPSI CO DISTRIBUTION CHANNEL Sl No. 1 2 3 4 Particulars Strong Agree Agree Can't Say Disagree Total No of Respondent 32 43 05 20 100 Percentage 32% 43% 05% 20% 100%

ANALYSIS: From above table it can be observed that it can be observed that 43% of the respondent believe that PepsiCo has good distribution channel and 32 % of the retailer and distributer strongly agree that company has best distribution channel while 20% disagree that PepsiCo don't have good distribution channel and 5% of them can't say. GRAPH: 1 SHOWING WHAT RESPONDENT THINKS ABOUT PEPSI CO DISTRIBUTION CHANNEL

20% 5%

32%

Strong Agree Agree

43%

Can't Say Disagree

INTERPRETATION: The data shows that company have good distribution channel but should focus more on their distribution channel and try to convert customer in strongly agree respondent by providing them better services and schemes Channel of Distribution of Pepsi xlvii

TABLE 2. Q.2. Distribution channel has an important role in positioning of the product? TABLE SHOWING DOES DISTRIBUTION CHANNEL IMPORTANT FOR POSITIONING THE PRODUCT Sl No. 1 2 3 4 Particulars Strong Agree Agree Can't Say Disagree Total No of Respondent 30 45 05 20 100 Percentage 30% 45% 5% 20% 100%

ANALYSIS: From above table it can be observed that 45% of the respondent agree that Distribution channel plays an important role in building the positioning of the company and 30% strongly support that While 20% doesn't agree with the statement while 5% chooses can't say.

GRAPH: 2

SHOWING DOES DISTRIBUTION CHANNEL IMPORTANT FOR POSITIONINGTHE PRODUCT

20% 5%

30% Strong Agree Agree Can't Say

45%

Disagree

INTERPRETATION: It shows that our objective is fulfilled by this research and we can say that if we have to promote our product then we should have strong distribution channel. Most of the retailer and distributer support the statement that means if distribution channel is improved more it will help in the positioning of the company.

Channel of Distribution of Pepsi xlviii

TABLE 3. Q.3. you being provided theV.C. coolers by the company? TABLE SHOWING THAT RETAILERS ARE PROVIDED THE V.C COOLERS OR NOT. Sl No. 1 2 Yes No Total Particulars No of Respondent 70 30 100 Percentage 70 30 100%

ANALYSIS: From above table it can be observed that 70% are saying that they are getting V.C. coolers from the company side to keep their product but 30 % are saying that they are not getting any V.C. coolers from the company.

GRAPH 3:

SHOWING THAT RETAILERS ARE PROVIDED THE V.C COOLERS OR NOT.

30%

Yes 70% No

INTERPRETATION: It means company is not focusing on all retailers that major concerns for the organization. Most of the retailers having the V.C. coolers which is given by the company but some of them don't have because they are smaller retails where sales are very less, also some of the retailers puts different brands into the same V.C. coolers by which also they loss their V.C. coolers.

Channel of Distribution of Pepsi xlix

TABLE: 4 Q.4. Pepsi Co has good relationship with the distributors/retailers? TABLE SHOWING THE RELATIONSHIP OF THE COMPANY WITH THE DISTRIBUTORS AND RETAILORS

Sl No. 1 2 3 4

Particulars Strong Agree Agree Can't Say Disagree Total

No of Respondent 32 43 05 20 100

Percentage 32 43 5 20 100%

ANALYSIS: From above table it can be observed that 43% of the retailer and distributor agrees that Pepsi Co has a good relation with them and 32% strongly support the statement while 20% of the retailer and distribution was against the statement means they said PepsiCo doesn't having good relation with them.

GRAPH 4:

SHOWING THE RELATIONSHIP OF THE COMPANY WITH THE RESPONDENT

20% 5%

32% Strong Agree Agree Can't Say

43%

Disagree

INTERPRETATION: It shows that company should thing that how can they maintain better relationship with every retailers and distributors.

Channel of Distribution of Pepsi l

TABLE 5: Q.5. Perception of retailers/distributors towards the PepsiCo's Distribution Channel? TABLE SHOWS THE PERCEPTION OF RETAILERS / DISTRIBUTORS TOWARDS THE PEPSICO'S DISTRIBUTION CHANNEL Sl No. 1 2 3 4 Particulars Excellent Good Bad Worst Total No of Respondent 27 55 13 05 100 Percentage 27 55 13 05 100%

ANALYSIS: From above table it can be observed out of 100 % respondent only 27% are saying that Pepsi Co have excellent distribution channel and 5% are saying that PepsiCo have worst distribution and 13% of them says it has bad distribution channel but 55 % are saying that PepsiCo have good distribution channel.

GRAPH 5:

SHOWS THE PERCEPTION OF RETAILERS / DISTRIBUTORS TOWARDS THEPEPSICO'S DISTRIBUTION CHANNEL

13%

5%

27% Excellent Good Bad

55%

Worst

INTERPRETATION: Here area of concern that how company can make happy those respondent who are thinking that PepsiCo have worst/bad Distribution channel and how can company develop good distribution channel and change the perception of retailers and distributors. Channel of Distribution of Pepsi li

TABLE 6: Q.6. How much time, Company takes to make reach the product at retailer shop? TABLE SHOWS IN HOWMUCH TIME RETAILER SHOP GET THEIR PRODUCTS Sl No. 1 2 3 4 Particulars One day Three Day One Week One Month Total No of Respondent 46 37 17 00 100 Percentage 46 37 17 00 100%

ANALYSIS: From above table it can be observed out of 100 % respondent only 46% of retailers get their stock in one day and 37% of the respondent gets their stock in 3 days while only 17% of the respondent gets their stock in 01 week. GRAPH 6: SHOWS IN HOW MUCH TIME RETAILER SHOP GET THEIR PRODUCTS

0% 17% 46% One day Three Day 37% One Week One Month

INTERPRETATION: Here area of concern that how company can make happy those respondent who don't receive their stock in time. They should provide all the retailers on time stock which help to make good distribution channel and well as build the positioning of the company. Channel of Distribution of Pepsi lii

TABLE 7: Q.7. If better scheme is given then replace with coke" TABLE SHOWS THAT IF BEETER SCHEME IS PROVIDED BY COKE TO THEDISTRIBUTER OF PEPSICO CAN THEY SWITCH Sl No. 1 2 3 4 Particulars Strong Agree Agree Can't Say Disagree Total No of Respondent 30 40 20 10 100 Percentage 30% 40% 20% 10% 100%

ANALYSIS: From above table it can be observed that 40% of the respondent (distributors)Agrees that they can switch over coke if better scheme is provide to them and 30% are strongly agree to switch over coke while 20% can't able to decide but 10% of distributer are loyal to their company they don't want to switch over the Company.

GRAPH 7:

THAT IF BEETER SCHEME IS PROVIDED BY COKE TO THE DISTRIBUTER OFPEPSICO CAN THEY SWITCH

10% 20%

30%

Strong Agree Agree

40%

Can't Say Disagree

INTERPRETATION: It shows that if company has to maintain good relationship with retailers and distributors then company will be focus on better services and schemes otherwise they are ready to switch over the company. TABLE 8: Channel of Distribution of Pepsi liii

Q.8.

You are having logistics facility of company or own? TABLE SHOWS THE STATUS OF THE LOGISTIC FACILITY Sl No. 1 2 Own Company Total Particulars No of Respondent 70 30 100 Percentage 70% 30% 100%

ANALYSIS: From above table it can be observed that 70% of the respondent (distributer) having their own logistics so that they can keep some stock with them while 30% of the respondent don't have their own logistic they depends on company logistics.

GRAPH 8:

SHOWS THE STATUS OF THE LOGISTIC FACILITY

30% Own 70% Company

INTERPRETATION: Most of the respondents having their own logistics which is good for both the company and retailers or customers because retailer can easily got the stock by their distributers and can fulfill the customers wants but if distributers don't have their own logistics then it takes time to reach the products to the retailer.

Channel of Distribution of Pepsi liv

TABLE 9: Q.9. Does Logistic Facility affects the Distribution Channel? TABLE SHOWS THERE IS AN AFFECT OF LOGISTIC FACILITY ON DISTRIBUTION CHANNEL Sl No. 1 2 3 4 Particulars Strong Agree Agree Can't Say Disagree Total ANALYSIS: From above table it can be observed that 60% of the respondent (distributor) agrees that logistic facility affects the distribution channel and 30% strongly supports the statement while 10% of the respondent is against the statement means they said PepsiCo doesn't having good relation with them while there is no respondent disagree that logistic facility affects distribution channel. GRAPH 9: TABLE SHOWS THERE IS AN AFFECT OF LOGISTIC FACILITY ON DISTRIBUTION CHANNEL
0% 10% 30% Strong Agree Agree 60% Can't Say Disagree

No of Respondent 30 60 10 00 100

Percentage 30% 60% 10% 00% 100%

INTERPRETATION: It shows that Company and the distributor must have best logistic facility to deliver the stock and maintain a good relationship with retailers.

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TABLE 10: Q.10. Perception of respondent towards the PepsiCo Distribution channel if V.C coolers provided by the company. TABLE SHOWS THE PERCEPTION OF RESPONDENT TOWARDS PEPSICO IF V.CCOOLERS IS PROVIDED BY THE COMPANY Sl No. 1 2 3 4 Particulars Excellent Good Bad Worst Total No of Respondent 37 58 05 00 100 Percentage 37% 58% 05% 00% 100%

ANALYSIS: From the above table it can be observed that 58% of the respondent (retailer and distributor) says that it is good if company provides them the V.C.coolers and 37% of them says it's excellent if they got the V.C. coolers by the company while 5% of the respondent says its bad but says it worst.

GRAPH 10: SHOWS THE PERCEPTION OF RESPONDENT TOWARDS PEPSICO IF V.CCOOLERS IS PROVIDED BY THE COMPANY
0% 5% 37% Excellent Good 58% Bad Worst

INTERPRETATION: PepsiCo have good distribution channel because they are giving V.C coolers to the retailers, they should provide the V.C. Coolers to the entire retailer so that it help to attract the customers as well building the brand positioning. Channel of Distribution of Pepsi lvi

TABLE 11: Q.11. How many times you go for soft drink in a week? TABLE SHOWS THE NUMBER OF TIMES CUSTOMER VISITING RETAILER FOR SOFT DRINK IN A WEEK Sl No. 1 2 3 4 One Two - Three Three - Five More than Five Total Particulars No of Respondent 10 25 53 12 100 Percentage 10% 25% 53% 12% 100%

ANALYSIS: If we see the table then we find that out of 100% respondent, only 53% respondent are going 3-5 times for soft drink in a week and 25% respondent are saying that they are going 2-3 times in a week while 10% of them goes only once in a week and more there are 12 % of customers who goes more than 5 times in a week.

GRAPH 11:SHOWS THE NUMBER OF TIMES CUSTOMER VISITING RETAILER FOR SOFTDRINK IN A WEEK

12%

10% 25% One Two - Three

53%

Three - Five More than Five

INTERPRETATION: Here we find that walk-in of the customer is more to the retailers shop means large number of soft drinks is selling in the market.

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TABLE 12: Q.12. Which brand's soft drink you usually drink?

TABLE SHOWS THAT WHICH BRAND IS PREFERREDMORE Sl No. 1 2 3 Particulars Pepsi Co Coke Others Total No of Respondent 42 33 25 100 Percentage 42% 33% 25% 100%

ANALYSIS: If we see the chart then we find that out of 100%respondent,42% respondent prefers Pepsi Cowhile 33% respondent prefers Coke and rest 25% respondent prefer others.

GRAPH 12: SHOWS THAT WHICH BRAND IS PREFERRED MORE

25% 42% Pepsi Co Coke 33% Others

INTERPRETATION: In this we find that after having different products in PepsiCo, it can't able to capture the market in larger market. Their competitors are giving tuff competition to their Company.

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TABLE 13: Q.13. Do you get easily your demanded brand in the market? TABLE SHOWS DO THE CUSTOMER EASILY GETS THEIR PREFERRED BRANDIN THE MARKET Sl No. 1 2 Yes No Total Particulars No of Respondent 87 13 100 Percentage 87% 13% 100%

ANALYSIS: From the above table we find that out of 100%respondent,only 87% respondent are agree to say whatever brand they demanded they are easily get that but 13% respondent are saying that they are not getting the demanded brand ,it is major concern that why these respondent are not able to get their demanded brand.

GRAPH 13 : TABLE SHOWS DO THE CUSTOMER EASILY GETS THEIR PREFERRED BRANDIN THE MARKET

13%

Yes No 87%

INTERPRETATION: It proves that PepsiCo is having a good distribution Channel because customers are find to find out their desired product in the retailer shop.

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TABLE 14: Q.14. Why you prefer this brand? TABLE SHOWS THE FACTOR FOR CHOOSING BRAND Sl No. 1 2 3 4 Particulars Availability Advertisement Taste Others Total No of Respondent 18 38 42 02 100 Percentage 18% 38% 42% 02% 100%

ANALYSIS: From the above table we can find that 42% respondent prefer the brand because its taste while38% of the respondent prefers this brand because of its Advertisements while 18% prefers because of Availability while 2% go for others things.

GRAPH 14: SHOWS THE FACTOR FOR CHOOSING BRAND

2% 18% 42% Availability Advertisement 38% Taste Others

INTERPRETATION: This proves what a customer prefers to choose the brand, advertisement also plays a major role in attracting the customer and the taste. Most of the respondent like the of its carbonated fizz so PepsiCo should make their product more fizzy.

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10. Limitations of the Study:

Findings are based on the views expressed by the consumers. So it may suffer from biased prejudices. Weather conditions were not favorable. Some of the respondents were not co-operative & many seem to be having no interest. The study has not been intended on a very large scale, have the possibility of errors, which cannot be ruled out. Time limitations. Area was specified. It is extremely difficult to persuade retailer to respond to questionnaire. The retailer knows us as people from Pepsi there by the responses could have been biased. I had lack of knowledge about the product of the local market. The company does not provide any financial assistance. The time allowed for the project was very short (6 weeks). It was impossible to study deeply in that short period. There was the staying place hearer to local market.

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13. FINDINGS
Some retailers are unable to get the services which are provided by the company. There are some retailers are not happy with services provided by the distributors and the company. There is a gap between the retailers and the company Distributers are not satisfied with the services like margins product availability, credit facility. Customers prefer the taste of Thumbs Up more than the Pepsi Co's product. Most of the time desired products are not available or not chilled due to unavailability of V.C. coolers. In most of the mix outlet company has not provided its V.C. cooler, so it is becoming the major cause for not getting fulfill of the demand. Because retailers are promoting that brand to the consumer which company is satisfying them more in terms of V.C. cooler, Schemes, Relationship etc Retailers are not happy with the MDC (Marketing Development Coordinator) of Pepsi Co. Retailers are saying that what they promise, do not fulfill that. Marinating good relationship with the retailers as well distributors is very important for having a strong distribution channel V.C. cooler have an important role in enhancing the distribution channel and policy. Time concern is very important in good distribution channel, it means providing product at retailers door within a time. Company should provide better facility of logistics because without logistics any company cannot maintain good distribution strategies.

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14. Conclusion
After analyzing all the aspects of the data available and giving some important recommendations a suitable conclusion which should be derived for this study. However , before starting the conclusion part, the objective of the research must be kept in mind so that we can arrive at a befitting conclusion for the research problem. The primary objective of this research was to know distribution channel Strategy of PepsiCo and to know the importance of Distribution channel strategy in Positioning of the product.

The data collected provided a sound base for understanding the overall organizational set up of PepsiCo in India. By analyzing the data and the literature review, following conclusion was inferred. The Sales and Distribution Network of Pepsi is very strong and almost flawless. PepsiCo India had the first mover advantage when it entered the market and it capitalized on that advantage to grab the market. Franchisee based operations combined with the Company's operations add strength to the overall presence of the Company in the market. Franchisee takes care of its operations and PepsiCo does not interfere in its operations. The Franchisees are required to report to the Company at specific time intervals. The Advertising Campaigns are conceived, implemented by the PepsiCo and Franchisee has no say in that.

It is very important to develop good relationship with the retailers by providing them better services and schemes. Maintaining the good relationship with the distributors are very important for the company because they are the main part of the distribution channel.

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15. Suggestions
This is one of the most important and most difficult part of the study. I arrived at certain recommendations for PepsiCo India after the analysis of the data. Some of the important recommendations are as follows. There should be and correct feedback from the retailers on the performance of salesmen. This will help improve their efficiency and accountability. Moreover, this will also help in reducing the confusing that the retailers have at times because the salesman does not explain the schemes properly. As already mentioned V.C. coolers are a major reason of dissatisfaction among retailers. The periodical maintenance check of V.C. coolers is done at three months. This should be done at an interval of 45 days or 60 days instead of the current practice of 90 days. Company should adopt aggressive marketing strategy that it could reach each and every place. Company should have better logistics facility for making reach the product at retailer's door at a right time. Marketing Development Coordinators/ Marketing Executives/ Sales Executives of the company must focus more for making better relationship with retailers. Company should provide V.C. cooler to every retailer. Because who is having V.C. cooler of which company they are promoting the same brand to the consumer. Company should more focus on youth of the country because youths more prefer the soft drinks. Company should focus on the consumers taste and preferences and launch new product according to the consumer taste and need.

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Annexure

16. QUESTIONNAIRE
Name of the Shop/Outlet:- ......................................................................... Address/Location:-....................................................................................
01. PepsiCo have good distributions channel? a. Strongly agree d. strongly disagree 02. b. Agree e. Disagree c. Can't say

Distribution channel has an important role in positioning of the product? a. Strongly agree d. disagree b. Agree c. Can't say

03.

Are you being provided the V.G. coolers by the company? a. yes b. no

04.

PepsiCo has good relationship with the distributors/retailers? a. Strongly agree d. disagree b. Agree c. Can't say

05.

Perception of retailers/distributors towards the Pepsi Co's Distribution Channel? a. Excellent d. worst b. good c. bad

06.

How much time, Company takes to make reach the product at retailer shop? a. One day d. One month. b. 3 day c. One week

07.

If better scheme is given then replace with coke" a. Strongly agree d. strongly disagree b. Agree e. Disagree c. Can't say

08.

You are having logistics facility of company or own? a. own b. Company

09.

Does Logistic Facility affects the Distribution Channel? a. Strongly agree d. disagree b. Agree c. Can't say

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10.

Perception of retailers/distributors towards the PepsiCo Distribution channel if V.C coolers provided by the company. a. Excellent b. Good c. Bad d. Worst

11.

How many times you go for soft drink in a week? a. One d. more than five b. Two to three c. three to five

12.

Which brand's soft drink you usually drink? a. PepsiCo b. Coke c. others.

13.

Do you get easily your demanded brand in the market? a. yes b. No

14.

Why you prefer this brand? a. Availability d. Others. b. Advertisement c. Taste

15.

Any other suggestion of Pepsi .......................................................................................................................................... ..........................................................................................................................................

Thank you!

(Signature of the Respondent)

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17. Bibliography
17.1 BOOKS:

Marketing Management- Radha Swami/ Nam Kumari Research Methodology-C.R.Kothari Principles of Marketing-P. Kotler & Armstrong

17.2 NEWS PAPERS:

The Times Of India The Economics Times Hindustan Times Business Today (July edition)

17.3 WEBSITES:

www.pepsi.com www.pepsico.com

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