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A Project Report submitted in partial fulfillment of the requirement for the award of degree in &AST'( O) BUS*N'SS AD&*N*ST(AT*ON By !Avinash +(eg" No: ,--.,,--/.) Under the esteemed guidance of: Dr!B! NAL*N* (Assistant Professor)
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Academy of Management Studies, Gitam
D'CLA(AT*ON
hereby declare that this project report entitled !Distribution channel of pepsi " with special reference to Lumbini Beverage vt!Lt" # #isa$hapatnam"% submitted by me to the &ollege of ' (A) *+( (U(, -. )A*A',),*(% #isa$hapatnam% in partial fulfillment of the award of the degree of )aster of Business Administration / also declare that this project wor$ is the result of my own effort and has not been submitted to any other uni0ersity1institution for the award of any other 2egree12iploma% fellowship or similar titles/
#isa$hapatnam 2ate
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C'(T*)*CAT' BY 0U*D'
(his is to certify that this project entitled 7D*ST(*BUT*ON C2ANN'L ON ' S* !with special reference to Lumbini Beverage vt!Lt" % #isa$hapatnam is a bona fide wor$ submitted by &r! !Avinash in partial fulfillment of the requirements for the degree of )aster of Business Administration to &ollege of 0*TA& *NST*TUT' O) &ANA0'&'NT#0*TA& UN*$'(S*TY# $*SA12A ATNA&
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DECLARATION
% A0inash declaring that all the information gi0en in this project report is true and correct as far as $now/ am also declaring that all the wor$ in this project is done by me and not copied from anywhere/
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CERTIFICATE
(his is to certify that &r! Avinash who is the student of Aca"em9 of &anagement Stu"ies# 0itam has completed his project on the topic 7A Brief Stu"9 of 'ffectiveness of Channel of Distribution of epsi ro"uct in $i:ag; from Lumbini Beverages vt! Lt" % under my guidance/ 8e has done this project by himself/ wish him success in future/
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PREFACE
(here is a famous saying !(he theory without practical is lame and practical without theory is blind/" (his modern era is era of consumers/ &onsumers satisfy themsel0es according to their needs and desires% so they choose that commodity from where they e:tract ma:imum satisfaction/ t has been identified that in the beginning of 31 st century the mar$et was obser0ed a drastic change/ (he successful brand presents itself in such a way that buyers buy them in special 0alues which match their needs/ )ar$eting is an important part of any business and ad0ertisement is the most important part of mar$eting/ +ummer training is an integral part of the P'2) and student of )anagement ha0e to undergo training session in a business organi6ation for ; wee$s to gain some practical $nowledge in their speciali6ation and to gain some wor$ing e:perience/ -ur institution has come forward with the opportunity to bridge the gap by imparting modern scientific management principle underlying the concept of the future prospecti0e managers/ (o the emphasis on practical aspect of management education the faculty of Academy of )anagement +tudies% 'itam has with a modern system of practical training of repute and following management technique to the student as integral part of P'2)/ in according with the abo0e obligation under going project in !<umbini Be0erages P0t/ <td/ 8ajipur/ (he title of my project is 7A Brief Stu"9 of 'ffectiveness of Channel of "istribution of epsi pro"uct in $i:ag; &ertainly this analysis e:plores my abilities and strength to its fullest e:tant for the achie0ement of organi6ation as well as my personal goal/
(Avinash) ;
Academy of Management Studies, Gitam
ACKNOWLEDGEMENT
want to render my ac$nowledgement to the following distinguished persons who helped me in completing my project wor$ successfully/ ta$e this opportunity to sincerely e:press my profound gratitude to Dr!B!NAL*N*% A++ +(A*( PR-.,+--R% 2epartment of )BA% who ha0e been our project guide and who ha0e helped me in preparation of the project report/ am highly indebted to the )anagement of Lumbini Beverage vt!Lt" for permitting me to do the project/ )y special than$s to &r!&!1 (ASAD 98R )anager)% $isa%hapatnam# for allowing me to underta$e this project and for all the facilities pro0ided to me% and for gi0ing encouragement% inspiration and guidance/ also than$ all my family members and friends for their cooperation and encouragement during the project/
+ !Avinash6
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CONTENTS
Title Chapter ,! *ntro"uction to the Stu"9 -bjecti0e of the +tudy mportance and rele0ance of the +tudy
+cope of the +tudy )ethodology used in the study <imitation of the study Chapter -! *ntro"uction of the Soft Drin%s in *n"ia 8istory of +oft 2rin$s in ndia 8istory of Pepsi Production Process Product )anufactured and )ain &onsumer Chapter /! Organi:ational Structure 8istory and -rgani6ational +tructure of <umbini Be0erages P0t/ <td/ #i6ag Chapter 5! Chapter .! Chapter =! Chapter >! A Theoretical frame <or% of Channel of "istribution Channel of "istribution of Lumbini Beverages vt! Lt"! erformance of A Conclusion an" Suggestions
?uestionnaire
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CHAPTER 1.
INTRODUCTION TO THE STUDY
Ob@ective Of The Stu"9 *mportance An" (elevance Of The Stu"9 Scope Of The Stu"9 ðo"olog9 Use" *n The Stu"9 Limitation Of The Stu"9
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Pepsi company has pumped in Rs/ 5EE crores 9F ?4 million) as fresh capital and has recently recei0ed permission from the foreign in0estment board in Rs/ 5EE crores 9F?4 million) more/ (he in0estment phase will continue and could add unto Rs/ =EE crores o0er the ne:t three years/ (he figure is not cast in stone if 0olume e:ceeds according to e:pectation/ (hey will increase capital e:penditure/ Apart from these things there is an e:pression which can not 0erify easily that is Pepsi has made qualitati0e gains/ (he foremost is its image from being perennially seen as a loosing company itAs now got the image of being a winner/ (his major turn around is not small achie0ement considering that since it was established in 1?>? ta$ing the hard ship route prior to liberali6ation and weighed down by e:port commitment/ Pepsi has won more battles than it has lost/ n April 1??5 #oltas and Punjab ArgoAs sta$es were bought o0er con0erting Pepsi foods from a three way joint 0enture to be a fully owned subsidiary wee$ bottlers who did not ha0e the financial capacities were gi0en massi0e support in the form in interest free loans to upgrade their operating capacity / But the strategy which has pro0ed to be winner was the position% Pepsi decided to ta$e in &ompany -wned Bottling -peration 9&-B-)/ .or this another subsidiary Pepsi&o% ndia holding was set up as an in0estment 0ehicle% capitali6ed ?4 million dollar/ @ithin a year 1??7 Pepsi has bought o0er 4 bottlers including du$es in )umbai% which was running in )aharastra which has been bought o0er from #oltas high speed imported lines with a speed of ;EE bottles per minute was installed in 2elhi/ Pepsi has a strong franchisee in the GaipuriaAs of Pearl drin$s/
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to &oca &ola% which joined with Parle to do business in ndia/ (hey are trying their best to regain prestige which it had before/ (he much ri0al of Parle is Pepsi an American concern/ t started business on the ndian soil just a few years ago/ (oday% it has occupied ;3K shares of +oft 2rin$s mar$et in ndia/ *ow Pepsi is going all out to pro0e that they are the best/ But now due to some factors competition among them has become stiffen/ +o in this way the important acti0ities ha0e increased/
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Purposi0e +election Personal nter0iew used multiple choice question and ran$ing system
n inter0iew schedule
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during my training period/ +o could not collect all information regarding my topic/ +hortage of time factor was one of the biggest constraints/ )ost stress was gi0en on the primary data as it was difficult to collect secondary data from the organi6ation and distribution since it is difficult to ascertain the authenticity of their statements/ iii) All the obser0ation and recommendation will be made on the feed bac$ obtained from sur0ey/
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CHAPTER$%
INTRODUCTION TO THE SO&T DRIN' IN INDIA
2istor9 Of The Soft Drin% *n *n"ia 2istor9 Of epsi ro"uction rocess ro"uct &anufacturing An" &ain Consumers
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HISTORY OF PEPSI
Pepsi&o is a U+A based company ha0ing its head quarters at *ew Bor$ with the net worth of F5EH7E million/ (he a0erage sales of the company are appro: ?E million bottles per month/ Pepsi made it first international mo0e in Russia in 1?4?/ 2uring the Chrushche0 era% within 53 years Pepsi emerged as the biggest competitor for &oca &ola/ Pepsi is a0ailable in 144 countries/ n any soft drin$% on the globe Pepsi food is one of the largest soft drin$ companies in the world with its headquarters in *ew Bor$/ t was in0ented by Pharmacist &ulab 2/ Baradham in 1>?> to cure the disease !2yspepsia"/ t is from this word that its name was related to Pepsi/ +oon it entered the American mar$et as soft drin$% which at that time mostly dominated by &oca &ola% but soon Pepsi able to dominate the &ola mar$et% and there after it ne0er loo$ed bac$/ Pepsi and &oca &ola are engaged in ferocious cola war that has ta$en the whole world by storm/ Pepsi entered the ndian soft drin$ in Canpur in 1?>> and began its production in )ay 1??E and soon it was gi0ing the local contenders run for their money in soft drin$ mar$et/ t comes out with da66ling mar$eting inno0ation that roc$ed the cola mar$et% li$e selling the product through function Pepsi outlets/ ts ad0ertisement agency was !8industan (homson Association" 98(A)/ ts ad0ertisement budget for 1??4H1??; was 0alued at Rs/ 37 crores which is li$ely to be increased manifold in coming years/ Pepsi food is one of the largest and best foreign in0estments in ndia/ (ill today it has in0ested Rs/ 4EE crores in ndia to de0elop the local mar$et/ Pepsi has distributed e:clusi0e franchises in ndia to bottle its total product/ (here are 3> bottling plant of Pepsi in ndia/ +ome are directly controlled by Pepsi and rest is under 0arious franchisees/ Pepsi stands 41st position among the fortune 4EE companies of the world/ ts total capital is appro: F5EEE crores and total sales annually is worth F5= crores/ ts total profit in the year 1??;H?= was worth Rs/ 74> crores appro:/ (he total number of employees engaged in the business is 74/34 la$hs globally/ 31
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PRODUCTION PROCESS
(he process of manufacture of Aerated water 9soft drin$) li$e Pepsi brand product is di0ided into mainly fi0e parts such as ,! Water Treatment -! S9rup &a%ing /! Bottle Washing 5! )illing .! Testing of ro"uct
+,6 (ater Treat ent) $ @ater treatment is 0ery essential in soft drin$s plants as
the nature and quality of water 0aries from place to place/ (o set uniform and standard water the process of treatment is carried on/ (he water ta$en out from bore well by the help of motor pump and pipe line are collected in storage tan$ where is pre chlorinated by chlorinators and by the help of pipe lines comes to treatment tan$ called coagulation tan$ where to this water solutions of different strength of bleaching powder% ferrous sulphate% hydrated lime are added through dosing pump to reduce al$alinity% hardness% $ill the bacteria /(he chemical are mi:ed by mechanical stripper and then the suspend mattress settle down as sludge and clear water passes to retention tan$/ .rom this tan$% the water passes through sand filter containing fine sand and pebbles and carbon filter containing granular carbon and finely through water polisher% micron filter% and U# lamp to ensure clear and sanitary water for use/ .urther water used in bottle washer and boiler need softening /for this purpose %the water from storage tan$ %after passing through two filter beds contain fine sand and granular carbon respecti0ely comes to pass through bad resin were it is softened /this soft water is essential to use in and bottle washer to reduce scale formation inside the machines/
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+-6 S*ru! +a,in#)$ .or syrup ma$ing of particular brand% calculate quantity of
sugar water acti0ated carbon and high flow super cell $nown as filter aid ta$en in to sugar to enter steam and also filled by a motor with agitator/ +ugar syrup called rawHsyrup is prepared by dissol0ing the sugar with continuous stirring and heating by steam supplied by fired boiler/ (his hot syrup by the help of pump is filtered through a filter press attached with a series of quality filter paper to separate out carbon particles/ &lear hot syrup by the help of ++ pipe lines passes through water P/8/,/ for cooling and the then another P/8/,/ circulated by glycol for further cooling/ (he chilled syrup comes to a mi:ing tan$ to use calculating of sugar quantity by Bri: 8ydrometer% concentrate added and mi: thoroughly by a mechanical +tirrer fitted to the tan$/ (his syrup is now finished syrup ready for use/ (he concentrate mainly% the liquid part are $ept in a cold store% the temperature of finished syrup is also maintained by airHconditioner/ All the containers used for syrup ma$ing are cleaned and saniti6ed by +odaHBiH&rab% strong chlorine solution and hot caustic soda solution/
+/6 -ott"e (ashin#) Bottle washing is an important part in soft drin$ plant/ (he
empty durable and returnable bottle used are returned from mar$et in plastic carats are fed to a bottle washing machine 9washer)/ (he machine has double end system with circular chain to carry the bottles/ &austic soda (riH+odium Phosphate% +odium 'lausonate is adding to the caustic by the supplied/ (he &austic tan$ filled in with water heated by steam supplied by the boiler/ (he empty bottles enter to the hot &austic tan$ in one end and after being cleaned by hot &austic solution and finally washed with water through spray jets fitted are discharged in other end/ (he washed bottle proper inspections are +U 51? and +U >45 used for con0eyor cleaned and smooth running of chain carrying bottles/ +U 3;E and +U ==5 is used for bottle cleaning% shining% and mold remo0ing/
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+56 &i""in#) $ .inished syrup and treated water lime are commi:ed to a dosing
pump which mi:es syrup and water with ratio of 1:4 and the syrup mi:ed with water enters to carbonator tan$ to mi: &-3 gas% which is preser0ed in cylinder for use/ (he cylinders are connected through &- 3 manifold to tan$ to use requisite quantity of gas/ (o control &-3 pressure and temperature of liquidI we used recording control 9(aylor)/ (he syrup passed through a P/8/,/ which is called itself by circulation of chilled glycol supplied chilling .H33 gas used/ (he syrup being chilled easily mi:ed with &-3 gas and enters to filter for bottling/ (he filter is connected with filling 0al0es and lift cylinders/ (he lift cylinder functions by pressure of air supplied by an air composer/ (he syrup is $nown as be0erage in this stage is filled in the cleaned bottles which are durable in nature and returnable by buyer filling machine 9filter) by a counter pressure of carbon dio:ide gas/ After be0erage filled in bottle it goes to the crowner where with the help of crown croc$s the bottles are sealed 9crowned) to project the carbonation% fla0or% outside contamination and spoilage/ (he finished products are coded by a coding machine and inspected properly by inspection light while passing through the con0eyor where finished product are accumulated enters to carat washer machine and it is washed mo0es through the con0eyor where finished product are accumulated/
+.6 Testin# o. !ro/uct)$ .inally the finished syrup during bottle is tested in
laboratory to meet the parameters and also to get a standard and quality products to maintain the standard and information and uniformity in products the sugar contents and carbonation in the bottle are chec$ed in regular inter0als by Bri:H hydrometers% Refrectometer and pressure gauge/ (he dead weight tested is used to calculate pressure gauge to $now the correct pressure/ (A D Ph are tested by digital Ph meter/ ,lectronic digital balanced is used to weight chemical to conduct test in lab/ (he purity of &- 3 is chec$ed by &-3 purity tester/ (he chlorine comparators/ (he microbiology test of the product and water used in syrup ma$ing and production are also done to ensure that the product is free from 34
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any bacteriological contamination/ (o conduct the micro test hot sterili6er incubator% autocla0e% pads filter membranes% media are produced and used/ (he 2iesel generator is operated in case of electricity failure for smooth operation of the plant/ (o drawn electricity for the +tate ,lectricity Board the transformer is used/ The steps involve" in the pro"uction process areA4 .irst the for$ lift supplies the empty bottles which are collected from the distributions/ (hen depalletising is done i/e/ separating cases filled or empty bottles from the wooden plan$s/ Uncasing is done by separating empty bottles from the cases1carats/ ,mpty bottles are then fed into the bottle washer where stream with some chemical is used for washing/ @ashed bottles are then send to the filler where premi: 9&omposed of syrup% treated water bul$ &-3) is filled in it/ (he whole concentrated is chilled with glycol before filling and then crowning is done/ (he filled bottles are passed through in$jet coder for printing price and date/ (hen again the filled bottles are send for final light inspection and from there they are collected on a table/ <astly the filled bottles are arranged in the crates 9casing) and then palleti6ing is done for storing it in the warehouse/ PR,PARA( -* -. +BRUP (reated water L +ugar M .la0our
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PRODUCT MANUFACTURED
(he product manufactured by !<umbini Be0erages P0t/ <td/ are 0ery limited ranges as it is not independent to di0ersity its products/ t is a unit of Pepsi food P0t/ <td/ which supplies concentrates for drin$s/ (hey are:H Pro/ucts Pepsi )irinda )irinda )irinda = Up )ountain 2ew +lice <ehar soda Pet Pet &an Aquafina 9)ineral @ater) 0uantit* 5EE ml% 3EEml 5EE ml% 3EEml 5EE ml% 3EEml 5EE ml% 3EEml 5EE ml% 3EEml 5EE ml% 3EEml 5EE ml 5EE ml 1/4 lt/ 3 lt/ 55E ml 1 lt/ Co"our Brunt sugar +unHset (etra6ine (etra6ine &olorless &olorless +unset (etra6ine Brunt sugar Brunt sugar Brunt sugar &olorless &"avour &ola -range <ime )ango <emon <emon )ango <emon &ola &ola &ola @hite
CONSU+ERS
(he main consumers of these products naturally are youth/ Besides the direct consumer it is also used for the some purpose of pro0iding it to the mass by hoteliers% restaurant owners and 0arious other soft drin$ peddlers/ (hese products are the choice of the new generation/ (hus it can be said that it is a product of mass consumption/
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CHAPTER 1.
OR2ANI3ATIONA4 STRUCTURE
2istor9 an" Organi:ational Structure of Lumbini
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Before some months !Ananda )ar$eting P0t/ <td/ was the mar$eting di0ision of <umbini Be0erages P0t/ <td/ But at this time% <umbini Be0erages P0t/ <td/ is doing mar$eting with its own name/ (hus it can be seen that <umbini Be0erages P0t/ <td/ has made tremendous mo0e towards the introduction and de0elopment of soft drin$s industries on the whole% and *orth Bihar in particular/ t has made production of perfect hygiene and standard +oft 2rin$ as main objecti0e/
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OVERALL ORGANIZATIONAL STRUCTURE OF LUMBINI BEVERAGES PVT. LTD., HAJIPUR BOA(D O) D*('CTO( &ANA0*N0 D*('CTO( C'O
2OS
T!D!&! !
&!'!&!
&!D!&!
?!C!
A!D!C! C!'!
&!D!C!'C'CUT*$' &!'/
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(he mar$eting manager is in charge of all mar$eting acti0ities i/e/ sales promotion% publicity and ad0ertisement% mar$eting study and shipping/ But the main function of the mar$eting is to e:ercise the control o0er the channel of distribution/ (he mar$eting manager is assisted by sales e:ecuti0es% city sales e:ecuti0es and rural sales e:ecuti0es and sales e:ecuti0e of shipping department as follows:H
2 R,&(-R
8,A2 -. +A<,+
+(A( +( & A*
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CHAPTER 5.
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(o identify the source of supply for the product line at the final buyers le0el (he channel of distribution is a structure which organi6ed and presents a choice among alternati0e channels of distribution of the different mar$eting situations faced by retailers% whole sellers and producers with in the structure/ t may be considered as a series of function which must be performed in order to ma$e producers efficiency/ (o bearing ma:imum profits of all institutions concerned a channel of distribution should be treated as a unit of total system of action/ (he acti0ities of the manufacturer need to be coordinated with these middlemen used in the distribution of gi0en product/ (he important of middlemen in channel of distributional can be o0er emphasi6ed/ t is that whoH 1/ &ollects concentrates the output of 0arious producers% 3/ +ubdi0ides these into lot desired by the customers gathers 0arious items together in the assortment wanted and 5/ 2isperses the assortment to consumer industrial buyers/ (he role of middlemen that of specialist in concentration equali6ation and dispersion besides he side in the creation of the time from and procession utilities/
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CHANNEL DYNAMICS
2istribution channel do not stand still/ *ew wholesaling and retailing institution emerge and new channel system e0ol0es/ (here are four types of mar$eting channels/ ,! Conventional Distribution Channel A &hannel consist one or more independent wholesaler and retailers/ ,ach is a separate business see$ing to ma:imi6e its own profits e0en if this goal reduces profit for the system as a whole/ *o/ of channel members has complete or substantial control o0er the other members/ -! $ertical &ar%eting Channel (his is most recent mar$eting channel/ A distribution channel system as producers% wholesaler and retailers act as unified systems/ -ne channel member% the channel captain owns the others or franchises them or has so much power that they all coHoperate/ (he channel captain can be the producer% the wholesaler or the retailer/ /! 2ori:ontal &ar%eting Channel A distribution channel system in which two or more unrelated companies put together resources or programmes to e:ploit an emerging mar$eting opportunity/ 5! &ulti Channel &ar%eting n the past% many companies sold to single mar$et through a single channel/ )ulti channel mar$eting occurs when a single firm uses two or more mar$eting channels to reach one or more customer segments/
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('TA*L*N0
ncludes all the acti0ities in0ol0ed in selling goods or ser0ices directly to final consumers for personal nonHbusiness use/ A retailer or retail store is any business enterprise whose sales 0olume comes primarily from retailing/ Retailers are the last but not the least in the mar$eting channel through whom the e0entual transfer of ownership of goods ta$e place/ (he use of retailer boils down to their superior efficiency in ma$ing goods widely a0ailable and accessible to target mar$ets/ n most of the cases the retailers performs the important functions mentioned as under/ 1/ nformation 3/ Promotion 5/ *egotiation 7/ -rdering 4/ .inancing ;/ Ris$ (a$ing =/ Physical Possession >/ Payment ?/ (itle (he major types of retailer are as following:H 1/ Specialt9 StoreA 4 (hey sell narrow product line with deep assortment/ 3/ Departmental storesA 4 (hey sell se0eral product line with each line operated as separate department managed by specialist buyers or merchandisers/ 5/ Super mar%etA 4 (hey are relati0ely large% low cost% low margin% high 0olume self ser0ice operation designed to ser0e total needs for food% laundry and household maintenance product/ 7/ Convenience StoreA 4 (hese are relati0ely small store located near residential areas% open long hours% se0en days a wee$ and carrying an united lines of high turn o0er con0enience products at slightly higher prices/ 7E
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4/ Discount StoreA 4 (hese sell standard merchandise at lower prices with lower margins and higher 0olumes/ ;/ Off price (etailersA 4 (hese sell the merchandise which are bought at less than regular wholesale prices and sold as less than retail/ (hese may be of three types mentioned as under: a6 )actor9 or"ers b6 *n"epen"ent off price retailers c6 Warehouse clubs + Wholesale clubs 6
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Cha!ter 6.
CHANNE4 O& DISTRI-UTION O& 4U+-INI -E7ERA2ES P7T. 4TD.
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Channe !" D#$%&#'(%#!n !" L()'#n# Be*e&a+e$ P*%. L%,. Ma,h(&a-a,a, #n *#.a+
(o ma$e its products a0ailable at the right places at the right time in the mar$et% the sales department of the company pays major attention on controlling the channels of distribution/ +ingle type of mar$ets channel is maintained by the company right from its pioneering stage/ (he nature of the channel is as follows:H &ompany 2istributors 2ealers 2ifferent -utlet -wners &onsumers At first the soft drin$s supplied to the distributors directly/ Retailers or owners of any outlet can not ta$e the deli0ery from company/ (hey ha0e to ta$e the products from their respecti0e or nearest distributor/ (here are about 4E distributors and innumerable number of retail outlets operating with the company in its entire mar$et areas which contains total Bihar/ n all the important places of entire territory this company has its distributors/ (hese distributors selected on the basis of assurance gi0en by them regarding the minimum sales which they ha0e to maintain annually/ (he selection is also done on the basis of the financial position and reputation of distributor in the mar$et/ As for e:ample in appointing a distributor first engaged in soft drin$ business second priority is gi0en to those people who are in cigarette selling business/ 2epending upon the mar$et% each distributor in the initial stage has to deposit some security money/ 75
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(he retailers are selected by the distributor fi:ed criteria for the selection or appointment or retailers from the side of the distributor/ Any one li$e Panwala% &igarettewala or any other shop$eeper can ha0e the stall for the sale of soft drin$s and they are called retailers or outlet owners/ (hey ha0e to gi0e assurance to the concerning distributor for better sale and at the time of ta$ing deli0ery they ha0e to deposit the security i/e/ the charges if the empty bottles with specified retailers purchasing price/ (he charges if the empty bottles with specified retailers purchasing price/ (he distributor at first has to see$ the permission of sales department for the number of cases of soft drin$s required by them/ After getting the proper authority from sales department paying the requisite amount either cash or demand draft/
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(AREHOUSIN2
,0ery company has to store its finished goods until they sold/ A strong facility is necessary because production and consumption cycles rarely match/ @arehousing is not a simply storing acti0ity but a pac$age of ser0ices that enables the smooth running of the industry/ (he stores must be in constant touch with the use department in order to pro0ide uninterrupted ser0ices to the manufacture and its decision since wor$ing capital is loc$ed up in the warehousing stores in equal to money/ (he stores functions can be organi6ed in the following manner:H a) (o recei0e raw material components equipments etc/ b) (o meet the demand of use department by issuing the order c) Accounting the transaction properly/ d) )inimi6ing obsolescence surplus and scrap by right identification and using correct preser0ation method/ (he company supply finished products frequently to different distributors as per the demand/ ,0ery distributor $eeps a minimum stoc$ of different products of the product line so that the uninterrupted supply could not affect/ n the industrial sector ser0ice of optimi6ation where boils down to any e:ercise of optimi6ation where limited a0ailable resources are to be distributed equitably/ (he problem arises from the material that are in stoc$ the form of capital cost% storage loss% pilferage obsolescence% insurance% handling% documentation etc/ +er0ices le0el that can be maintained and hence the concept stores in money should be understood by e0ery body in the organi6ation/
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*N$'NTO(Y D'C*S*ON
+,6 Bran"ing an" ac%aging
-ut of the total mar$et acti0ities some are directly performed and controlled by !<umbini Be0erages P0t/ <td/" itself some are followed according to the standing instruction of !Pepsi .oods P0t/ <td/ +o far as the process of branding and pac$aging is concerned the !<umbini Be0erages P0t/ <td/" Along with the authori6ed bottle in ndia adopt the same pattern/
+-6
Wholesaling
@holesaling includes all the acti0ities in0ol0ed in selling goods or ser0ices to those who buy for resale or business use/ )anufactures use wholesalers because wholesalers can perform function better and more cost effecti0ely than the manufacture can/ (hese functions are not limited to selling and promoting% buying and assortment building bul$ bar$ing% warehousing% transporting financial ris$ bearing dissemination of mar$eting information and pro0ision of management ser0ices and consulting/ <i$e retailers wholesaler must decide on target mar$et% product assortment and ser0ices promotion and place/ (he most successful wholesalers are those who adopt their ser0ices to meet and target customerAs needs% recogni6ing that e:isting to add 0alue to the channel/
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+/6 (etailing
Retailing includes all the acti0ities in0ol0ed in selling goods or ser0ices directly to find consumer for their personal nonHbusiness use/ A retailer or retail store is any enterprise which sales 0olume comes primarily form retailing/ All mar$eter retailers must prepare mar$eting plans that include decision on target mar$et/ +o the mar$eting channels can be 0iewed as a set of interdependent organi6ation with high potential for conflict/ (hen why would any business chosen to become part of channel system/
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T(ANS O(TAT*ON
(ransportation is life blood of business management and commerce/ (he purchase officeAs job in incomplete until and unless he ensures that the material is shipped from the 0endorAs premises located in different areas to his organi6ation/ Purchasing the transportation is a $ey element in his job particularly in the conte:t of the transportation cost/ n deciding to transporting models shippers can choose from pri0ate contract and common carriers/ (ransport decisions must consider the comple: trade off between 0arious transportation mode and their implications for other distribution elements such as warehousing and in0entory/
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DISTRIBUTION OF PEPSI
8ere there are four systems of distribution channels/ &hannel 1/ &hannel 3/ &hannel 5/ &hannel 7/ )anufacturerOOOOOOOOOOOOOOOOOOO&onsumer )anufacturerOOOOORetailerOOOOOOOOOO//&onsumer )anufacturerOOO@holesalerOOOO/RetailerOOOO&onsumer )anufactureOO/@holesalerOOGobberOORetailerOO//&onsumer
Channel of "istribution of Lumbini Beverages vt! Lt"! B9 Lorr9 or Truc% Distributor Dealers of customer
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Academy of Management Studies, Gitam
PERFORMANCE OF Vizag
Patna has a significant role for Pepsi% in products are supplied by !<umbini Be0erages P0t/ <td/% )adhura0ada/A (here are more than eight hundred including e:clusi0e and none:clusi0e outlets of Pepsi in proper 0i6ag/ (he highest sale of this year PPPPPPPPPP cases was in the month of )ay and total sale of this year wasOOOOO//cases so far/ 8ierarchy is also necessary to understand the capacity of Patna town/ 2*'(A(C2Y O) $i:ag Distributor Consumer 'Eecutive Sales &an Accountant $ehicle Loa"er an" Unloa"er
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Academy of Management Studies, Gitam
STUDY ON PRODUCTS
Product line is a group of product% that are closely related because they satisfy a class of needs or used together or sole to the same customer groups or mar$eted through the same types of outlets or fall within gi0en price range/ <umbini Be0erages P0t/ <td/% has the following product line:
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Academy of Management Studies, Gitam
&/RA(,
RA(, 1?3 37E 7>E 7?4 1?3 37E 7>E 7?4 1?3 37E 1?3 37E 7>E 7?4 1?3 7>E 7?4 37E 443 4=; 5;E ;EE 5;E 37E 7>E P,R P&+ RA(, > 1E 3E 44 > 1E 3E 44 > 1E > 1E 3E 44 > 3E 44 1E 35 7> 14 34 13 1E 3E
STUDY ON RETAILERS
(etail Shop t9pe / )onopoly Retail +hop / )i: +hop : : (he shop selling only one companyAs Products (he shop selling many companyAs Products
(he retailers can build a great deal of goodwill for the firm/ (he mar$eting strength depends on the strengths of retail dealers/ Research has conduct sur0ey on different types of outlet li$e ba$eries% cold drin$ parlor% Booth and general stores etc/ According to his sur0ey% the major reasons for selling Pepsi products are: 91) 93) 95) 97) 94) 9;) 9=) Brand mage &ustomer 2emand Profit )argin Ad0ertisement 'ood Ruality +ales Promotion for Retailers +ales Promotion for &onsumers 1>K 3EK E4K 5EK 1EK E=K 1EK
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BRAND PREFRENCE
Pepsi products are most popular brand but &o$e products are 0ery dear brand of consumers due to ad0ertisement/ After the collection of different 0iews from consumer which includes% ser0icemen% students% and businessman and obser0ing the sale of Pepsi products/ (he research has calculated the preference consumption of different Pepsi products by the people of #isa$hapatnam
Bran" reference of Consumers 56 )lavour &ola -range <emon <ime )ango F Consumption 7?K 1;K 13K E=K 1=K
49%
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Academy of Management Studies, Gitam
5) According to my sur0ey the distribution channel people using 1=? pan shops and 13 sweet and ba$ery shops and ? general stores/
4) n my sur0ey people ga0e ran$s li$e this way%for this pepsi 11E people ga0e more importance and for that co$e they responded 4> people and finally 53 people prefer other outlets
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Academy of Management Studies, Gitam
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Chapter >!
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Academy of Management Studies, Gitam
Sugg" #ion
<umbini Be0erages P0t/ <td/ should introduce some change in its mar$eting function and ad0ertising to mar$et more rational/ (he following factors to be worthy of consideration:H 1/ A complain Register should be pro0ided by the company to e0ery distributor in e0ery route so that% retailers1customers can write their problems/ (he complain register should be chec$ed by consumer e:ecuti0e and depot in charge at time to time/ 3/ A clear notification should be gi0en to teach distributor and each route agent to gi0e cash memo 9with printed number) and maintain route card for e0ery transaction/ 5/ Proper care should be gi0en the companyAs employees at the time of scheme close/ +ignature of scheme recei0ing on the cash memo should be ta$en and it should be also maintained in route card/ &laim of scheme should be passed after the deeply stud y of abo0e three points i/e/ difference between opening stoc$ and closing% signature of scheme recei0ing on the cash memo and sells maintained in the route card/ 7/ +ome retailers $eep other companies products in the PepsiAs fridge% while is pro0ided by the company/ (o chec$ additional scheme be gi0en in e0ery month% in the pea$ seasons After the chec$ing of PepsiAs .ridge 95or 7 times in e0ery month ) if t is found that retailer does not $eep other companies products in the PepsiAs Pepsi fridge the claim of scheme should be passed / (hus we can impro0e1increase its sell and employeeAs acti0ities/ 4/ (here is no electricity problem in the whole area of Patna/ .or chilled soft drin$% ice bo: which is compulsory and dredge both should be pro0ided by the company/ ;/ (he numbers of outlets are too much/ +o it is required to short the route and e:tra 0ehicles1tricycles pro0ide in this route/ =/ .acilities pro0ided by the company should be increased/ .acilities requirements should be fulfilled in all the rural and urban area properly after deeply study for 0arious aspects or retailers by the help of company employee and depot incharge/ >/ *umber of tricycle can be installed at 0arious place li$e public during the peal hours i/e/ e0ening and busy roads and chow$s near the townSs commercial 4?
Academy of Management Studies, Gitam
centers/ &are should be ta$en to install these tricycles under a shady tree where pro0iding relief from h eat to the prospecti0e customers as well as the 0endor/ ?/ All these tricycles targeted the tired and thirsty consumer or the road and other place% care should be ta$en that soft drin$s in the ice bo: are always chilled and ice readily a0ailable/ 1E/ (he 0endors must be taught to be polite to the consumers/ 11/ (he 0endors can also be pro0ided with uniform by the company in order to gi0e them 0isibility/ 13/ An appropriate name should be gi0en to these tricycles and properly ad0ertisement thus gi0ing them some sort of identity/ 15/ n winters% as the sales from these tricycles may be 0ery low because of seasonal factors Be0erages P0t/ <td/ should thin$ of introducing such pac$s Bea0er its 0arious brands of be0erages / t is 0ital ta$e for !<umbini Be0erages P0t/ <td/ that maintain the performance of Pepsi in future therefore performance of soft drin$ was 0ery good in this year in comparison of co$e/
17/
14/ *ow a day with the introduction of tetra pac$s such as fruity% (ree (op etc/ +o <umbini Be0erages P0t/ <td/ should thin$ of introducing such pac$s of its 0arious brands of be0erages/ 1;/ <umbini be0erages P0t/ <td/ should be pro0ided itAs the rural area also/ At last only this can be said that these suggestions are mot totally but e0en partially can be used by the <umbini Be0erages P0t/ <td/ it would be pleasure for me and is certain that if these are carried out by management % it will helpful in establishing the <umbini Be0erages P0t/ <td/ on a more stronger footing/
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Academy of Management Studies, Gitam
0UESTIONNAIRE
NameA 4 DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!! A""ressA 4 DDDDDDDDDDDDDDDDDDDDDDDDDDDDDD!! DDDDDDDDDDDDDDDDDDDDDDDDD!!!!!!!!!!!!!!!!!!!!!!! Contact NoA 4 DDDDDDDDDDDDDDDDDDDDDDDDDDDDD 91) )onthly sales 9in Rs/) 9a) <ess than 4EEE 9c) 1E%EEE to 14%EEE 93) 9a) E H 4E carets 9c) 1EE to 14E carets 95) @hich type of outletT 9a) 'eneral +tore 9c) Betel +hop 97) 9a) Pepsi &ola 9c) )irinda 9<) 9e) +lice 94) demandsT 9Ran$ them) 9a) Pepsi 9c) -thers 9;) 2o you $now about all fla0ours pac$ 9si6e) and respecti0e wholesale price Pepsi soft drin$s/ 9a) Bes 9=) 9a) E H 4E carets 9c) 1EE to 14E carets 9>) Pepsi :9a) #ery 'ood 9b) 'ood 9b) *o 9b) 4E to 1EE carets 9d) 14E to 3EE carets 9c) Bad ;1
Academy of Management Studies, Gitam
9b) Between 4EEE to 1E%EEE 9d) Abo0e 14%EEE 9b) 4E to 1EE carets 9d) 14E to 3EE carets 9b) 'rocery 9d) +weet +hop 9b) )irinda 9-) 9d) =AUp 9f) )ountain 2ew
@hen a customer comes to your shop which brand of soft drin$s does he1she 9b) &oca &ola
9c) Bad
9d) @orse
@hat is the frequency of the 0isit of Pepsi 1 &o$e e:ecuti0eT Pepsi I9a) 2aily 9b) Alternate 2ay 9c) @ee$ly 9d) .ortnightly &o$e I9a) 2aily 9b) Alternate 2ay 9c) @ee$ly 9d) .ortnightly
91E)
@hich factors affect the sale mostT 9a) Ad0ertisement 9c) Presence 9e) Price 9b) +cheme 9d) (aste 9f) -thers 9b) &oca &ola 9d) -wn
911)
913)
@hat is the position of maintenance wor$ of refrigerator done by Pepsi 1&o$e &ompanyT Pepsi: 9a) 8ighly satisfactory 9b) satisfactory9c)*ot satisfactory &o$e: 9a) 8ighly satisfactory 9b) satisfactory9c)*ot satisfactory
8a0e you been pro0ided with sign board1display rac$ by Pepsi 1&o$e &ompanyT Pepsi: 9a) Bes 9b) *o &o$e : 9a) Bes 9b) *o 8a0e you any type of dissatisfaction regarding the product/ t yes then whyT OOOOOOOOOOOOOOOOOOOOOOOOOOOOOO Please gi0e any suggestion for impro0ement regarding distribution% brand%
bottling etc/ OOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOO///OOOOO 91;) @hat is your opinion about Pepsi productsT OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO Than% You Place:HOOOOOOOO 2ate:H OOOOOOOO +ur0eyed by
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Academy of Management Studies, Gitam