A PROJECT

ON

Distribution Network of Pepsi vis a vis Other

Soft Drinks in Guwahati City.
North East Pure Drinks (Pvt.) Ltd.
PepsiCo
Guwahati

DISSERTATION SUBMITED TO IMT CDL (Ghaziabad)

IN PARTIAL FULLFILMENT OF THE REQUIREMENT FOR THE
DIPLOMA OF
PGDM (Marking)
Prepared by
MD GOLAM MUSTAFA
PGDM, Batch-2008-2010

Under the guidance ofSAGAR HASABNIS

Infosys BPO
PUNE -411057
Aug. - 2010

CERTIFICATE

This is to certify that the work incorporated in the dissertation entitled

Distribution Network of Pepsi vis a vis Other Soft Drinks in Guwahati
City submitted to IMT CDL (Ghaziabad) by Md. Golam Mustafa for the
award of :Post Graduate Diploma in Management carried out by him
under my supervision from May 2010 to August 2010. Such material as
obtained from the other sources has been duly acknowledged in the thesis.

Sagar Hasabnis
(Research guide)

Place: Pune
Infosys BPO
Date: 20th Sep. 2010.

DECLARATION

I declare that my Dissertation on the topic entitled Distribution

Network of Pepsi vis a vis Other Soft Drinks in Guwahati City is
submitted to IMT CDL (Ghaziabad) for the award of Post Graduate
Diploma in Management ,.
This dissertation has not been submitted by me elsewhere for the
award of my degree or diploma-part or full. The information gathered by
me from elsewhere for the dissertation is original, true and factual. Such
material as obtained from other sources has been duly acknowledged in
the dissertation.

Place: Pune

Md. Golam Mustafa

Infosys BPO
Date: 20th Sep. 2010.

AKNOWLEDGMENT
3

I consider it my duty to express sincere thanks to all those

who were instrumental in the successful completion of this study.

I gratefully acknowledge the insightful and enriching

guidance given by my esteemed guide Sagar Hasabnis. His
cooperation and supervision in every aspect of my research was
useful in providing confidence and encouragement to complete
the research work in time.
I t is my duty to express my sincere thanks to Great Organization
Infosys for providing the opportunities to do such a diploma from
a great institution like IMT CDL (Ghaziabad) . I would like to
express my sincere thanks to my Center Head Amit Ramesh
Parab and manager Terence Bob for providing the opportunities
to do such diploma from this cooperation. I am also

very

grateful to my BHR Arveend Manages, Tahmina Delvi, HR

provide me .different kinds of help during the course.

I am indebted to my parents, especially my father late. Idrish

Ali Ahmed B.A. BT. who helped me all the way (financially,
economically, physically, mentally etc.) and all of my family members

who supported and encouraged me during the project work. Without

their help this work would not been have been completed.
I am very grateful to the North East Pure Drinks (Pvt.) Ltd.
Who provided me the different kinds of data relating to the soft
drink market in the Guwahati city.

It is also my duty to express my sincere gratitude to all of my

friends, team leads, seniors and colleges who support and
encourage duration the dissertation.

Place: Pune

Md. Golam Mustafa

Infosys BPO
Date: 20th Sep. 2010.

CONTENTS

Chapter No.

Particulars

Page No.

1. Introduction

08-18

i.

Executive Summery

04

ii.

Rural Areas in and around Haryana

05

iii.

Litrary Review

08

iv.

Training and Development

09

v.

The Need of Training and Development

vi.

Methodology

15

vii.

Scope of the study

16

viii. Limitation

14

17

2. Company Profile
i.
ii.
iii.
iv.
v.
vi.

North East Pure Drinks PVT. LTD.

Company Profile.
Pepsi Head Quarters.
Honors 2007.
Honors 2008
Milestone 2009

3. Theoretical Framework
i.
ii.
iii.
iv.

34-38

What is distribution Network.

Distribution Network.
The Significance of Distribution Network.
Marketing Research.

4. Research Methodology
i.
ii.
iii.

19-33
20
22
23
24
27

34
34
35
36

39-44

Research Design.
Method of data collection.
Instruments used for data collection.
6

40
42
43

iv.
v.

Primary Data Collection.

Secondary Data Collection.

5. Data Analysis and Interpretations.

i.

44
44
45-61

Analysis and Interpretation of retailers point of view

46

6. Findings.

62

7. Recommendations

64

8. Conclusion.

66

9. Questionnaire.

69

10.

71

Bibliography

INTRODUCTION

EXECUTIVE SUMMARY

The title of the project is Distribution Network of Pepsi vis a

vis Other Soft Drinks in Guwahati City. It is the

distribution of Pepsi product to their ultimate customer through various
8

distribution channels. The duration of the project was two months (1st
June 31st July) under the organizational guidance Rajashree
Goswami(M.D.C.) and Mr. Gyanesh Awasthi (A.D.C.)
North East Pure Drinks Pvt. Ltd is a franchise of PepsiCo, India operating
for the entire northeast .The company has its bottling plant at Rani
Patgaon, Guwahati. NEPD is a part of RRJ group operating for Pepsi in
other parts of the country. The unit manager is Mr. L.D. Sharma. There are
four Territory Development Manager who look into the total operations of
North East Pure Drinks for the entire north east. Apart from this marketing
activities are looked into by a separate marketing team. In the city of
Guwahati, there are two distributors Bhawani Distributors and
Kamakhya Enterprises. Apart from this the NEPD depot, Zoo Road also
functions as a distributors in certain areas of Guwahati.

The basic Objective was to know the stock position of Pepsi and its
competitors at different outlets, finding out the distribution network of
Pepsi vis a vis other soft drink in the market, finding out the satisfaction
level of the retailers with the distribution system of Pepsi, find out the most
demanded brand of Pepsi in the market and ranking Pepsi with Coke and
others in terms of offer given to the retailers was also an important
objective, getting suggestions from the retailers through which the overall
distribution system of Pepsi can be improved, the marketing and
promotional activities at various retail outlets and the per day sale of
Pepsi brand and its competitors in Crates.
After the survey it was found from the analysis that Coca Cola has an
overall lead in all the market. Other brand like Litchi, Frooti which are also
found to have a strong market presence. The sale of MIRINDA is highest
9

among the PEPSI product in the market of Guwahati city. On the other
hand Slice, a product of PEPSI has poorest availability in the market
although the Pepsi products are covering the market rapidly at present time
(In the month of June and July).

It is also found from the analysis that in the city there are only 3 (three)
distributors of Pepsi, in comparison Coke has 5 (five) distributors.
In order to improve the market penetration allotting more of distributors
can be done to gain location advantages and also more intensive
distribution consuming less money and time. Again the company should
always inform the retailers about the new schemes so that the product can
be sold in large quantity.

INTRODUCTION
Guwahati (Assamese: , previously spelled Gauhati) is a
major city in eastern India, often considered as the gateway to the NorthEast Region (NER) of the country and is the largest city within the region.
Dispur, the capital of the Indian state of Assam is situated within the city.
Guwahati is one of the most rapidly growing cities in India. Today, the city
10

straddles between the LGB International Airport in the west to Narengi in

the east for almost 45 kilometers and between the southern bank of the
Brahmaputra river and the foothills of the Shillong plateau for around 15
kilometres. Moreover, the city is also getting gradually expanded to the
northern bank of Brahmaputra. Guwahati with population just 0.2 million
in 1971 is a million plus city today. Guwahati Municipal Corporation
(GMC), the city's local government covers an area of 216 km, while
Guwahati Metropolitan Development Authority (GMDA), the planning
and development authority covers an area of 340 km.

Beverage industry is one of the fast growing industries in India. It

can be divided into two sections i.e. carbonated and non-carbonated. The
carbonated drinks can be further classified into Cola, Lemon Orange,
Mango and Apple segments.
Marketing includes all the activities like promotion, distribution,
advertising etc., to fulfill the needs of all the segment of consumers.
Marketing is also about converting social needs into profitable
opportunities. So this topic provides all the essentials to theoretical
knowledge with practical Knowledge to inculcate the efficiency. It is also
the requirement of the company to improve their service and product
quality for achieving their ultimate goal.

REASON FOR SELECTING THIS TOPIC:-

It is very important to understand the customers and their need

properly to increase the sales along with the revenue of the organization.
Once the need and demand are know to suppliers then it become very easy
to supply and meet the customers expectations. The topic has been given

11

by the company to collect information about current happening in the

market. It will help them to makes improvements in service and quality of
the product, for their long time existence in the market and getting profit.
Basically this research is very helpful for the organization to understand
the customers needs, their market position, demand for their products,
customers expectations and the process to increase the demand for their
products.
Again as a student of PGDM, it also very important to understand
the customers behavior, culture, expectations and how to handle the
customers properly. Hence, it is also helpful for me to learn the consumer
behavior and observe their attitude towards demand of particular products
practically

OBJECTIVE

The Objectives are divided into two parts :

1. Primary Objectives and 2. Secondary Objectives.

12

The primary objectives of the project are as follows-

1. The main objective of the study was to find out the distribution
network of Pepsi vis a vis other soft drink in the market.
2. Study about the satisfaction level of the retailers with the
distribution system of Pepsi.
3. To find out the most demanded brand of Pepsi in the market and
ranking Pepsi with Coke and others in terms of offer given to the retailers
was also an important objective.
4. To gather suggestions from the retailers through which the overall
distribution system of Pepsi can be improved.

The following were the main secondary objectives of the Project:1. To study the percentages share of Pepsis cooling equipments.
2. To know the market share of Pepsi products.

HYPOTHESIS OF THE STUDY

The main hypotheses of this study are :

1.

Coca Cola has an overall lead in all the market.

13

2.

Other brand like Litchi, Frooti which are also found to

have a strong market presence.

3.

Promotion system of the soft drink is poor in Guwahati

city.
4.

Distribution system is comparatively poor.

METHODOLOGY

This study on Distribution Network of Pepsi vis a vis Other

Soft Drinks in Guwahati City will be based on :

14

 Primary data
Secondary Data
Primary dataPrimary data are those which are collected a fresh or fast
time, and thus happens to be originally in character. The
primary data can be collected through the following
methods,
1. Questionnaire methods.
2. Personal interview methods.
3. Sampling methods.
4. Observation methods.
Secondary MethodsOn the other hand, secondary data are those which are
already been collected by some one else and which have
already been passed through the statistical process,
i.e. - Company manuals, Yearly Magazines, Newspapers etc.

SCOPE OF THE STUDY

The main scope of this research is ascertaining the various methods
to increase the sales volume and distribution activity of the concern. The
methods include regular measures to make the brand position in the

15

market and taking measures to confirm the brand in position. One of the
most important aspects of this study is also to increase the market
segment for the products.
Many more scopes of this topic may be as follows:
o

Target market segment.

Evaluating awareness about Pepsi Company.

Comparison of Pepsi product to competitors.

Identification of market potential.

Evaluating customers need with company product

Collecting suggestions for product improvement etc.

LIMITATIONS
1. Data of competing brands was difficult to obtain as most of the
data kept confidential by companies.

16

3. Unavoidable response error.

4. Lack of documented data by retailers.
5. Lack of proper response from consumer/retailers.
6. Lack of communication between respondents and researcher due to
Illiteracy and lack of knowledge.
7. More time and money consuming.

17

COMPANY PROFILE

NORTH EAST PURE DRINKS (PVT.) LTD.

PepsiCo has two modes of operations. They are COBO and FOBO.

18

COBO-Company owned business operations.

FOBO-Franchise owned business operations.
North East Pure Drinks (Pvt.) Ltd. is a franchise of PepsiCo, India
operating for the entire north east. The company has its bottling plant at
Rani Patgaon. Guwahati. NEPD is a part of the RKJ group operating for
Pepsi in other parts of the country. The unit manager is Mr. L.D. Sharma.
There are four Territory Development Managers who look into the total
operations of North East Pure Drinks for the entire north east. Apart from
this marketing activities are looked into by a separate marketing team. In
the city of Guwahati, there are two distributors - Bahrain Disributors and
Kamakhya Enterprises. Apart from this the NEPD depot, Zoo Road also
functions as a distributor in certain areas of Guwahati.

COMPANY PROFILE

19

PepsiCo is a world leader in convenient snacks, foods and

beverages, with revenues of more than $39 billion and over 185,000
employees
PepsiCo, Inc. is founded by Donald M. Kendall, President and Chief
Executive Officer of Pepsi- Cola and Herman W. Lay, Chairman and Chief
Executive Officer of Frito-Lay, through the merger of the two companies.
Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New Bern,
N.C. pharmacist. Frito-Lay, Inc. was formed by the 1961 merger of the
Frito Company, founded by Elmer Doolin in 1932, and the H. W. Lay
Company, founded by Herman W. Lay, also in 1932.
The company consists of PepsiCo Americas Foods (PAF), PepsiCo
Americas Beverages (PAB) and PepsiCo International (PI).
PAF includes Frito-Lay North America, Quaker Foods North
America and all Latin America food and snack businesses, including
Sabritas and Gamesa businesses in Mexico. PAB includes PepsiCo
Beverages North America and all Latin American beverage businesses. PI
includes all PepsiCo businesses in the United Kingdom,
Europe, Asia, Middle East and Africa. PepsiCo brands are available in
nearly 200 countries and generate sales at the retail level of more than $98
billion.

20

Some of PepsiCo's brand names are more than 100-years-old, but

the corporation is relatively young. PepsiCo was founded in 1965 through
the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998
and PepsiCo merged with The Quaker Oats Company, including Gatorade,
in 2001.
PepsiCo offers product choices to meet a broad variety of needs and
preference -- from fun-for-you items to product choices that contribute to
healthier lifestyles.
PepsiCos mission is 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 partners and the
communities in which we operate. And in everything we do, we strive for
honesty, fairness and integrity

PepsiCo Headquarters

21

PepsiCo World Headquarters is located in Purchase, New York,

approximately 45 minutes from New York City. The seven-building
headquarters complex was designed by Edward Durrell Stone, one of
America's foremost architects. The building occupies 10 acres of a 144acre complex that includes the Donald M. Kendall Sculpture Gardens, a
world- acclaimed sculpture collection in a garden setting.
The collection of works is focused on major twentieth century art,
and features works by masters such as Auguste Rodin, Henri Laurens,
Henry Moore, Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro
and Claes Olden berg. The gardens originally were designed by the world
famous garden planner, Russell Page, and have been extended by Franois
Goff net. The grounds are open to the public, and a visitor's booth is in
operation during the spring and summer
PepsiCos mission is To be the world's 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

HONORS 2007

22

Indra Nooyi Named Among Fortunes 25 Most Powerful

Doritos Mexico Recognized by Expansion Magazine as One of

Mexicos Marketing Monsters

PepsiCos Indra Nooyi Named Among The Wall Street Journal 50

Women to Watch 2007

PepsiCo is Latina STYLEs company of the year.

Frito-Lay Guatemala Wins Second Golden EFFIE Award for

Tortrixs Advertising Campaign.

PepsiCo Named to Best Green Companies for Americas Children

List in Working Mother Magazine.

Gamesa Wins EFFIE Gold for the First Time in the Macrosnack
Category for Advertising.

EPA Recognizes PepsiCo as Green Power Partner of the Year.

Smiths Snack Food Company, a division of PepsiCo Australia, Won

2007 Grand Champion Supplier of the Year.

Pepsi Cola Mexicana Wins First EFFIE Award in the History of the
Business Unit.

PepsiCo Named Among Best Companies to Work for in Spain by

CRF International.

PepsiCo Named Among Top 50 Workplaces for Women in U.K. and

Ireland by The Times.

Indra Nooyi Tops FORTUNEs List of the 50 Most Powerful

Women in Business.

Seven PepsiCo Products on Women's Health Magazine's '100 Best

Packaged Foods for Women' List.

Pepsi Pinball commercial nominated for an Emmy.

PepsiCo was named one of the Best Graduate Employers in China

by university students in China, for the second year in a row.

23

Doritos Crash the Super Bowl program won the 2007 Cannes Gold
Medal Lions Award in the Fast Moving Consumer Goods category.

The Lays 100% Pure Joy commercial won the Public Relations
Society

of

Americas

Silver

Anvil

Award.

Doritoss Crash the Super Bowl campaign won a Platinum Hermes

Creative

Award

from

the

Association

of

Marketing

and

Communication Professionals in the Publicity Campaign category.

PepsiCo was given the title of 2007 Outstanding Employer of China

in Shanghai Region jointly by CRF, Holland's professional publication
and ranking organization, and China Business News Group

Covalence published its Ethical Ranking for 2006, ranking PepsiCo

6th for Best Reported Performance

The Hay Group and Chief Executive magazine rank PepsiCo as #3 in

the 2006 Top 20 Best Companies for Leaders

PepsiCo has been named to the 100 Best Corporate Citizens list for
2007 by Business Ethics Magazine

Diversity Business names PepsiCo as one of America's Top

Organizations for Multicultural Business Opportunities

Catalyst honors PepsiCo with the 2007 Catalyst Award for its
strategic business initiatives in the advancement of women in business

PepsiCo named among "Most Influential Multinationals in China"

for the third consecutive year

Human Rights Campaign names PepsiCo as one of the Best Places to

Work for GLBT Equality

PepsiCo China was awarded a 2006 Best Corporate Public Image

Award for its brand image of vitality and youthfulness

PepsiCo recognized among the 2007 100 Best Corporate Citizens in

the US by CRO magazine

24

PepsiCo named to List of Americas Top Corporations for

Womens Business Enterprises

Sams Club Aquafina Return the Warmth program has won the
very top environmental honor from the Cause marketing Forum

Fortune Magazine ranks PepsiCo once again to the Top 10 of

Americas Most Admired Companies in the World

Institutional Investor magazine has identified PepsiCo as one of

Americas Most Shareholder-Friendly Companies

PepsiCo makes #10 in the LOHAS Index for the its corporate social
responsibility program and communications

PepsiCo is named EPAs Energy Star Partner of the Year

Business Week names PepsiCo in its 2007 Best Performers List

PepsiCo receives 2007 Catalyst Award

PepsiCo in Top 10 of DiversityIncs Top 50 Companies for Diversity

list

Indra Nooyi receives India Abroad award

HONORS 2008

25

PepsiCo Honored With 2008 Energy Star Partner of the Year

Award

PepsiCo Named Among DiversityInc's List of Top 50 Companies for

Diversity

PepsiCo Named in the Top 10 companies for LGBT (Lesbian, Gay,

Bisexual and Transgender) Employees by Diversity Inc.

2009 Milestones

26

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 Lifewater 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

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 reNewabottle

PepsiCo Russia celebrates 50th Anniversary

Gatorade introduces limited-edition Jordan series bottles

PepsiCo pairs with CBS to launch first-ever video player packaged in a print ad

PepsiCo products make 'Best Foods for Women' list in Women's Health
magazine

EPA awards PepsiCo's Chicago office with Energy Star certification

Pepsi kicks off its 2009 partnership with the NFL

Smartfood adds Peanut Butter Apple flavor to its lineup

Mountain Dew introduces 'UltraViolet,' Dew's first diet line extension

PepsiCo sponsors National Urban League Conference

PepsiCo reaches merger agreements with Pepsi Bottling Group and

PepsiAmericas

PepsiCo agrees to acquire Amacoco, Brazil's largest coconut water company

27

PepsiCo launches its first lightly carbonated fruit-based beverage in Brazil,

Frutzzz

Aunt Jemima brand celebrates 120 years

PepsiCo is awarded several 2009 beverage innovation honors during Drinktec

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

PepsiCo again named to Dow Jones Sustainability World Index and Dow Jones
Sustainability North America Index

Propel supports Breast Cancer Awareness with its hope.nowpropelled

website, special packaging and pink caps

Consumer Reports magazine names Quaker Chewy 90 Calorie Granola Bar

among best during a taste test on lower-fat snack options

United Nations Association of New York honors Frito-Lay for its

environmental efforts

28

PepsiCo ranks among top companies on Corporate Social Responsibility Index

by the Boston College Center for Corporate Citizenship

PepsiCo signs as partner of new Meadowlands Stadium, the future home of the
New York Jets and New York Giants

Pepsi Brazil wins the top spot for 'The Most Admired in Brazil' by Brazilian
business magazine Carta Capital

PepsiCo named 'Corporation of the Year' by Southern Florida Minority

Supplier Development Council for its diligence, commitment and legacy of
diversity

The European Union approved the proposed mergers of PepsiCo, Pepsi

Bottling Group and PepsiAmericas

PepsiCo Hope delivers more than 50,000 free, healthier snacks and breakfasts
to Dallas children

Frito-Lay receives the United Nations Association of New York's 2009 Annual
Humanitarian Award in recognition of Frito-Lay's accomplishments in
environmental corporate social responsibility

PepsiCo Russia signs the Russian Advertisers Association's pledge to eliminate

advertising to children under 12

Pepsi wins 'Football Promoter of the Year' award in Nigeria for its involvement
with the development of grassroots football

PepsiCo and Calbee Foods Company announce strategic alliance to make and
sell a wide range of food products in Japan

Gamesa-Quaker's Stila brand named 'Brand of the Year' in Mexico at the 6th
Anahuac/AI Ries Marketing Awards

IZZE brand launches new flavor of sparkling juiceIZZE Sparkling Lime

PepsiCo open first overseas green plant in China as part of its $1 billion
investment in the country

The Environmental Protection Agency (EPA) names PepsiCo as one of its 2008
Water Efficiency Leaders, for its efforts of water efficiency and environmental
sustainability

PepsiCo's Valhalla, NY R&D site receives LEED certification for its

environmental sustainability efforts

PepsiCo International introduces first non-alcoholic, flavored malt drink,

Bario, into Saudi market
29

Pepsi Jordan wins the King Abdullah Excellence Award, Jordan's most
prestigious award on a country level

PepsiCo receives 'Corporation of Year' award from United Cerebral Palsy in

recognition of its EnAble program, which champions inclusion for people with
different abilities in the workplace

PepsiCo's World Headquarters in Purchase, NY, was named as the winner of

the 2009 Landmark Award by the American Society of Landscape Architects
and the National trust for Historic Preservation

Frito-Lay North America announces new partnership with Terra Cycle, a

company that will repurpose Frito-Lay snack packaging into merchandise

PepsiCo named to Ethisphere's 'Most Ethical Companies' for 2009

Quaker is honored with 2008-2009 Brand Laureate Heritage Award for the
'Best Brands-Consumers' by the Asia Pacific Brand Foundation in Malaysia

PepsiCo Chicago is recognized by BusinessWeek magazine as one of the top

'green' headquarter locations in the U.S.

PepsiCo is listed in the top 20 'Ideal Employer MBA Ranking' in Fortune

magazine

PepsiCo China beverage group named 'Supplier of the Year' by Wal-Mart

China

FLNA and Oberto Sausage Co. hagree to end partnership for distribution and
sales of OhBoy! Oberto brand meat snack products in the U.S. and Canada

Tropicana becomes the first North American brand to be independently

certified by the Carton Trust, an organization established to address climate
change

Sierra Mist launches new flavorSierra Mist Ruby Splash

Pepsi becomes official beverage of Norwegian Cruise Lines

PepsiCo acquires Karinto snack business in Peru

Frito-Lay SunChips announces plans to begin using the first fully compostable
snack chip bag made from plant-based materials to significantly improve the
environmental impact

PepsiCo's Mexico divisions, Gamesa-Quaker, Sabritas and Gatorade, receive

the distinctive Corporate Social Responsibility award from Cemefi, the
Mexican Center for Philanthrop, for their Talent Sustainability efforts

30

Wal-Mart Mexico names PepsiCo Beverages Mexico as the 'Supplier of the

Year'

Aquafina, Diet Pepsi, Pepsi and Mountain Dew top the 2009 Brand Keys
Customer Loyalty Engagement Index

Lipton launches new Sparkling Green Teathe first-ever sparkling beverage

from the Lipton trademark

Consumer Reports names Quaker products among its top choices at

supermarkets in their 'Great Every Day Products' article

The U.S. Environmental Protection Agency awards PepsiCo a 2009 Energy

Start Sustained Excellence Award for its energy efficiency program

PepsiCo announces intention to acquire its two largest anchor bottlers, The
Pepsi Bottling Group and PepsiAmericas

PepsiCo's TorTrix brand receives the 'Hall of Fame of Guatemalan Brands'

award from the American Marketing Association

PepsiCo introduces three new productsPepsi Natural, Pepsi Throwback and

Mountain Dew Throwback, all sweetened with natural sugar

PepsiCo Ireland is recognized as one of the '50 Best Workplaces' by The Great
Places to Work Institute

PepsiCo Chicago Sustainability Center achieves LEED Platinum certification

from the U.S. Green Building Council, making it the fist in the Consumer
Products sector to receive the prestigious Platinum distinction

Frito-Lay launches $2 line for consumers seeking value

PepsiCo India launches Nimbooz by 7Up, a beverage inspired by India's

favorite lemonade drink

Tropicana introduces Trop50, the first orange juice with the all-natural
sweetness of Stevia

PepsiCo is recognized for its Diversity and Inclusion program by three leading
business publicationsDiversityMBA, DiversityInc., and
DiversityBusiness.com

PepsiCo introduces first climate-friendly vending machines to the U.S.

Gatorade's G2 launch topped Information Resource Inc.'s list of most

successful product launches of 2008

Aquafina launches the Eco-Fina Bottle, the lightest weight bottle in the market

Frito-Lay introduces new Smartfood popcorn clusters

31

Doritos SuperBowl XLIII ad ranked number one by USA Today's Ad Meter

AMP Energy unveils three new line extensionsAMP Energy Lightning, AMP
Energy with Black Tea and AMP Energy with Green Tea

PepsiCo scores major league, multiyear sponsorship with both New York Mets
and New York Yankees

Latina Style magazine recognizes PepsiCo among the leading companies for
Latinas at the Style 50 Awards and Diversity Leaders Conference

Spitz Brand has been named one of Canada's '50 Best Managed Companies' by
the National Post

PepsiCo Greater China opens newest bottling plant, Chengdu Pepsi Beverage
Co. Ltd. in West China

PepsiCo named 'Corporation of the Year' by Southern Florida Minority

Supplier Development Council for its diligence, commitment and legacy of
diversity

Gatorade India establishes new training center for most-talented cricket players

Frito-Lay North America adds more than 1,000 fuel-efficient vehicles to its
fleet

PepsiCo announces a multi-year distribution agreement with Rockstar Energy

Drink

Tostitos brand crowns six University of Texas fans as the champions of the
Tostitos 'Race for the Bowl' competition and awards them $200,000 for their
school's scholarship fund

IZZE Sparkling Juice becomes available at Sam's Club

Frito Lay Turkey launches its second better-for-you snack, Cheetos Rings

Eleven PepsiCo China bottling plants are honored as '2008 Enterprise of

Excellence in Water Saving' facilities at the 2008 Chinese Beverages Industry
Association annual meeting

32

THEORETICAL FRAMEWORK

What is distribution network-

33

Channel of distribution or trade channel for a product is the route taken by

the title of the goods as they come from the producer to the ultimate
consumer or industrial user
-

- Willam Standton

Channel of distribution is a team of merchants and agents, business

institutions that combine physical movement and title movement of
products in order to create useful assortments for specific markets.
- Prof. C. Glenn Walters

Distribution network
The distribution network is an important Part of the marketing.
Ultimate purpose of manufacturing any goods and services is to hand over
same to the end users or customers for its utilization. the entire function of
getting goods into the hands of customers is called as distribution . the
channel of distribution means the intermediaries engaged in moving goods
from the place of production to the place of consumption .In other words,
the route by which the goods move from the place of production to the
place of production is called as the channel of distribution.
The channel of distribution is an important part of Marketing Mix in any
business organization. It is the path way for the flow of ownership
possession of goods and services. The transfer of ownership and physical
possession are two important aspects.
Transfer of ownership is an exchange process which includes channels of
distribution.

The significance of distribution network

34

Distribution network is a very powerful element in the marketing mix.

Marketing channel is a set of interdependent organization involve in the
process of marketing product or service available to the customer or end
user for consumption. the goods and services manufactured at one place
are made available to the customer through the path way called channels of
distribution . Channels of distribution satisfy the demand of the customers
by supplying goods and services at the right place, at right price, and in the
right quality and quantity.
Thus, marketing channels provides time and place utility for goods.
Marketing channels play significant role for the producers who lacks
financial resources for undertaking the direct marketing. Moreover, there
are many producers who are interested in undertaking production job only
for such producers entire distribution and marketing responsibility is
shouldered by marketing channels. In the modern world of specialization
and division of labor, role played by marketing channels is very vital for
manufacturer and customers. They provide important connecting link
between the two.

Marketing Research
35

The marketing research as the systematic design collection, analysis,

and reporting of data and findings relevant to a specific marketing situation
facing the company.

The Marketing Research Process

Effective marketing research involves the six steps; two of them are
discussed below:
1.

Define the problem and the Research Objectives:

The problems should not be defined either too broadly or too
narrowly. To define the research problem, we should know the
contents, the scope and decisions to be made. That means working
backwards from the decisions can be a good way of defining
problems because the purpose of research is to generate meaningful
information. This will help in taking effective decisions.

2. Develop the Research Plan:

The second stage of marketing research requires developing the
most efficient plan for gathering the needed information. This
involves decisions on the data sources, research approaches,
research instruments, sampling plan, and contact methods.
i) Data Sources: The researcher can gather secondary data, primary data,
or both. Secondary data are data that were collected for another
purpose and already exist somewhere. Primary data are data freshly
gathered for a specific purpose or for a specific research project.
36

ii) Research Approaches: Primary data can be collected in five ways:

through observation, focus groups, surveys, behavioral data and
experiments.
The research is done through Survey Research Method. Surveys
are best suited for descriptive research. Companies undertake
surveys to learn about peoples knowledge, beliefs, preferences and
satisfaction. It requires development of a survey instrument, usually
a questionnaire, which the respondents are asked to fill up.
iii) Research Instruments: Marketing researchers have a choice of three
main research instrument in collecting primary data: questionnaire,
qualitative measures, and mechanical devices.
The research is actually worked through Questionnaire.

questionnaire consists of a set of questions resented to respondent.

Because of its flexibility, the questionnaire is by far the most
common instrument use to collect primary data, questionnaires need
to be carefully developed, tested, and debugged before they are
administered on a large scale. In preparing a questionnaire, the
researcher carefully chooses the questions and their form, wording,
and sequence, the form of the question can influence the response.
iv) Sampling plan: After deciding on the research approach and
instruments, the marketing researcher must design a sampling plan.
This calls for three decisions.

37

a) Sampling unit: The marketing researcher must define the target

population that will be sampled.
b) Sample Size: Large samples give more reliable results than small
samples. However, it is not necessary to sample the entire target
population or even a substantial portion to achieve reliable results.
Samples of less than 1 percent of a population can often provide
good reliability, with a credible sampling procedure.
c) Sampling procedure: To obtain a representative sample, a
probability sample of the population should be drawn. Probability
sampling allows the calculation of confidence limits for sampling
error.
v) Contact Methods: Once the sampling has been determined, the
marketing researcher must decide how the subject should be
contacted:
Personal Interview: Personal interviewing is the most versatile
method. The interviewer can ask more questions and record
additional observations about the respondent, such as dress and body
language, At the same time it is most expensive methods and
requires more administrative planning and supervision than the
other.

38

Research Methodology

RESEARCH METHODOLOGY

39

A company can obtain marketing research in a number of ways.

Most large companies have their on market research department. The
marketing research manager normally reports to the marketing voice
president and act as a study director, administrator, company consultant
and advocate.
Research can be defined as a scientific and systemic search for
pertinent

information on a particular subject/topic. It is also a systematic

investigation to establish facts or collect information on a particular

subject.
It is a research for knowledge through objectives and systemic
methods of finding solutions to a problem, investigation into a subject or a
problem.

Research Design40

A survey undertaken to assess of retailers distribution network of

Pepsi vis a vis Coke and others. An explanatory research design was
adopted to conduct the survey to provide a better understanding of Retailer
and Customers needs, has been able to satisfy their needs and expectation.
In the absence of adequate and relevant secondary data, Primary data had
to collect. This was accomplished through the formulation of a schedule of
questions and data was collected by meeting the respondents personally.

Type of Research: Descriptive

Nature of Research: Quantitative Research
Type of Questionnaire: Straight Forward
Type of Questionnaire: Structured and Formalized
Type of Analysis: Statistical

Method of data collection:

41

The task of data collections begins after a research problem has been
defined and research design / plan chalked out. while deciding about the
method of data collection to be used for the study, the researcher should
keep in mind two types of data .

Primary data
Secondary Data
Primary dataPrimary data are those which are collected afresh or fast time, and thus
happens to be original in character. We have collected the primary data
through the sample surveys, observation or through direct communication
with respondent in one form or another through personal interviews
i.e. - Questionnaires methods etc.
Secondary MethodsOn the other hand, secondary data are those which are already been
collected by some one else and which have already been passed through
the statistical process,
i.e. - Company manuals, Yearly Magazines, Newspapers etc.

Instrument used for data collection42

1) Questionnaire
2) Personal interview
Questionnaire
A questionnaire consists of a set of questions presented to a
respondent form for their answers. Because of its flexibility the
questionnaire is by for the most common instrument used to collect
the primary data. A good questionnaire should be simple, direct,
unbiased wording.
I have used general type of questionnaire which is
instructed and non - distinguished in nature .Instructed and non
distinguished questionnaire means that the questions are preserved
with exactly with the same wording and in the same order with
identification of all respondents.

Personal InterviewThis method has been used in order to know the quality of
service by the distributor to the retailers at the end customers in
terms of delivery of products, taking timely order, attitude of sales
man etc. the method of collecting of data for the information
through personal interview was carried out in a instructed way.

Primary data collection43

The primary data are collected by using the following

techniques:
Research TechniqueSurvey method technique was used to collect the data.
Contact Method

Interviews with respondent.

Sampling Plana.

Sample Size-225

b.

Sample Element Distributors and Retailers

c.

Sample Extent Whole Guwahati City

d.

Sample Duration-1st June 20th August

e.

Research Instrument Self designed questionnaire

Secondary data collection:

Secondary data are collected from the different sources like
different newspaper, magazine and internal.

44

Data Analysis and

Interpretations:
Sample Size: 225

45

Analysis and Interpretation of retailers

point of view1] The different brands of soft drinks kept in various retail store.

Pepsi
52

Coke
46

Others
127

InterpretationThe survey was conducted among 225 retailers. Out of 225 retailers,
23% retailers sales only Pepsi.20% retailers sales Coke and rest of the
57% retailers sales all the brands.

46

2.

Order of PEPSI and COKE stock by the retailers.

Distributor
225

Wholesaler
0

Other
0

Interpretation:Out of 225 outlets, 100% retailers i.e. both PEPSI & COKE outlets
are used to order their stock to distributor.

47

4. The stock order is delivered at right time to the retailer.

Yes
No

209
16

Interpretation:Out of 225 outlet 209 retailer get stock ordered at time and rest of
the 16 retailer do not get stock ordered at right time.

48

5. Period of delivery to retailer.

Daily
Weekly
When Needed

87
08
130

Interpretation:Out of 225 respondent 57% have revealed that their delivery period
is when need the stock, 39% said that their delivery period is daily and 8%
revealed their delivery period once in a week.

49

6. Daily selling of PEPSI or COKE by the retailers.

Pepsi:-

<50
50-100
>100
Total

200 ml 300 ml 500 ml 1 liter

> 1 liter

Total

0
0
0
0

6
3
1
10

121
41
17
179

60
19
9
88

39
13
5
57

16
6
2
24

Interpretation:According the above diagram 200 ml product is not available in the market and
121 retailers sale less than 50 bottles (200 ml, 300ml, 500, 1 liter, >1 liter),
41 retailers sale 50 to 100 bottles, 17 retailers sale more than 100 bottles
of PEPSI products in a day.
Coke:-

50

<50
50-100
>100
Total

200 ml 300 ml 500 ml 1 liter

> 1 liter

Total

0
0
0
0

6
2
2
10

118
35
18
171

61
15
9
85

33
13
4
50

18
5
3
26

Interpretation :According the above diagram 200 ml product is not available in the market and
118 retailers sale less than 50 bottles (200 ml, 300ml, 500, 1 liter, >1 liter),
35 retailers sale 50 to 100 bottles, 18 retailers sale more than 100 bottles
of COKE products in a day.

7. Retailers satisfaction with the distribution of PEPSI.

51

InterpretationOut of 217 outlets who sales Pepsi in their retail store,167 outlets
said that they are satisfied with the distribution of Pepsi and rest of the 50
outlets said that they are not satisfied with the distribution of Pepsi.

8.

Retailers satisfaction with the distribution of COKE.

52

Interpretation-

Out of 223 outlets who sales COKE in their retail store, 202 outlets said
that they are satisfied with the distribution of COKE and rest of the 21
outlets said that they are not satisfied with the distribution of COKE.

9.

Cash

The mode of payment made by the retailers.

213
53

Cheque
Both

09
03

InterpretationSurvey was conducted among 225 retailers. Out of this 95% retailers
have said that their mode of payment is cash, 4% retailers said that their
mode of payment is cheque and rest 1% used to pay by both cash and
cheque.

10. The largest selling product of PEPSI.

PEPSI
7 Up

26
27

54

MIRINDA
SLICE
MOUNTAIN DEW

119
03
07

InterpretationAccording to the diagram 65% retailers ranked Mirinda as the

highest selling, 15% have ranked 7Up as the highest selling, 14% have
ranked Pepsi as the highest selling,4% retailers have ranked Mountain Dew
as the highest selling and 2% have ranked Slice as the highest selling
product of PEPSI in their retail store.

11.The largest selling product of COKE.

Coca Cola
Sprite
Fenta
Limca

8
30
65
15
55

Maza

70

InterpretationAccording to the diagram 37% retailers ranked Maza as the

highest selling, 35% have ranked Fenta as the second highest selling, 16%
have ranked Sprite as the third highest selling, 8% retailers have ranked
Limca as the forth highest selling and 4% have ranked Coca Cola as the
lowest selling product of PEPSI in their retail store.

12. The mode of trade promotional offers given by Pepsi.

SCHEME
GIFT
MONEY BACK
DISCOUNT

188
12
0
21
56

OTHERS

04

Interpretation:Diagram shows that 84% retailers got schemes on glass bottles, 5%

retailers got gift, 9% retailers got discount and rest of the 2% retailers got
other type of promotional offers.

13.

The retailers satisfaction regarding overall distribution.

PEPSI
COKE
BOTH

86
74
65

57

InterpretationThe above diagram shows that out of total 225 retailers, 38% have
ranked Pepsi as highest, 33% retailers have ranked Coke as the highest and
29% retailers have ranked both Pepsi and Coke together as the highest on
part of overall satisfaction of brands.

SWOT ANALYSIS:-

S = Strengths
W = Weakness
O = Opportunities
T = Threats
So, now we define these terms for North East Pure Drinks Pvt. Ltd.

58

Strengths: Brand Name:- Very much known in the market.

Brand Value.
Good Reputation in the market.
Marketing Driven Company.

Weakness: Less number of distributors.

Less S.K.U.

Opportunities: Market size is huge, so volume sales can be generated.

Opportunities in targeting bulk users and lower segment.

Threats: The perception of consumers.

59

 Willingness of consumer switching from one brand to

another.

60

FINDINGS

FINDINGS
1. In the soft drink, Coca Cola has an overall lead in all the market.
Other brand like Litchi, Frooti which are also found to have a strong
market presence. And Pepsi however seem to lagging behind but during
this two month ie June and July it is found that Pepsi is capturing its
market area very rapidly.

61

2.

Slice has poor availability in the market mainly because of the

stock shortage and also because Slice RGB has not been launched in
Guwahati. The newly launched Tropicana twister is relatively in a better
position but launch of its RGB SKU could help in better distribution.
3.

In the city distribution network, there are only 3 (three)

distributors of Pepsi. Supply to the entire city therefore becomes

cumbersome and leads to distribution lapses. In comparison Coke has 5
(five) distributors in strategic locations which conduct more of localized
operations, thus gaining more of a locational advantage, also more
intensive distribution.
4. About 84% retailers got schemes on glass bottles but the gifts for
space club are yet not provided by the company. The company is going to
provide the gift for space club very soon after the completion of audit.
5. Through the analysis it is found that the sale of MIRINDA is
highest among the PEPSI product and MAZA covers the highest market
among the COKE product in the market of Guwahati city.
6. From the total outlet, 23%

retailers sales only

Pepsi.20%

retailers sales Coke and rest of the 57% retailers sales all the brands.
7. From the total outlet, 100% retailers i.e. both PEPSI & COKE
outlets are used to order their stock to distributor.
8. From the total outlet, 57% have revealed that their delivery period
is when need the stock, 39% said that their delivery period is daily and 8%
revealed their delivery period once in a week.

62

9. Out of 223 outlets who sales COKE in their retail store, 202 outlets said
that they are satisfied with the distribution of COKE and rest of the 21
outlets said that they are not satisfied with the distribution of COKE
10. Out of 217 outlets who sales Pepsi in their retail store, 167
outlets said that they are satisfied with the distribution of Pepsi and rest of
the 50 outlets said that they are not satisfied with the distribution of Pepsi.
11. From the total Sample, 38% have ranked Pepsi as highest, 33%
retailers have ranked Coke as the highest and 29% retailers have ranked
both Pepsi and Coke together as the highest on part of overall satisfaction
of brands.

63

RECOMMENDATIONS

RECOMMENDATIONS

1. In order to improve the market penetration allotting more of

distributions can be done to gain locational advantages and also more
intensive distribution.
2. Appointing Pre Sale Representatives to keep track of retail outlets
instead of supply in ready stoke can help organize distribution and also
save time and money.
64

3. For the availability of the Slice in the market more stoke of Slice to be
maintain by the company.
4. To increase the sale of Pepsi product, the company should always inform
the retailers about the new schemes.
5. Pepsi has SGA s like visicoolers, so by ensuring purity of visicoolers
through effective merchandising it can push the product and also improve
the visibility of the product.

65

CONCLUSION

CONCLUSION
The future of Pepsi is bright. Pepsi at this crucial juncture must get
over its distribution lapses and leverage its world wide larger than life
brand image to gain a strong hold over its competitors. For the cola giant,
it is high time to wake up to the need of the market and acknowledge the
strong market potential of a growing city like Guwahati. Also at the same
time Guwahati is the only big city in the entire North East and also the
gateway to the North East. So the NEPD must take a proactive stand and
things will definitely brighten up.

66

67

APPENDIX

QUESTIONNAIRE

Name of the retail store:

Name of the Proprietor:
Address:

1. What are the different brands of soft drinks you have kept in your retail
store?
(a) PEPSI

(b) COKE

2. Whom do you order your PEPSI stock to?

68

(c) Others

(a) Distributor

(b) Wholesaler

(c) Other

3. Whom do you order for your COKE and other stock to?
(a) Distributor

(b) Wholesaler

(c) Other

4. Do you get the stock ordered at the time?

(a) Yes

(b) No

5. What is your delivery period?

(a)Daily

(b) Weekly

(c) Once in ten days

(d) When needed

6. How much PEPSI or COKE you sale in a day?

PEPSI:
(a) 200ml (

) (b) 300 ml (

) (c) 500ml (

) (d) 1 liter (

) (e) >1 liter ( )

) (b) 300 ml (

) (c) 500ml (

) (d) 1 liter (

) (e) >1 liter (

COKE:
(a) 200ml (

NB: Kindly put the No. of bottles sold in a day in the bracket.

7. Are you satisfied with the distribution of PEPSI?

(a) Yes

(b) No

8. Are you satisfied with the distribution of COKE?

(a) Yes

(b) No

9. What is your mode of payment?

(a) Cash

(b) Cheque

(c) Demand draft

(d) All

10. Which is the largest selling product of PEPSI among the following?

69

(a) Pepsi (b) 7 Up (c) Mirinda (d) Mountain Dew (e) Slice (f) Tropicana
Twister.
11. Which is the largest selling product of COKE among the following?
(a) Coca-cola (b) Sprite (c) Fanta (d) Limca (e) Maza
12. Do you receive any trade promotional offers from Pepsi?
(a)Scheme (b) Gift (c) Money back

(d) Discount (e) Others

13. Whose overall distribution is much more satisfactory to you?

(a) PEPSI

(b) COKE

(c) OTHER

(d) Both PEPSI &

COKE
14. Any complain against the product.
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________

BIBLIOGRAPHY

Books Recommended:-

70

Marketing management

Philip Kotler

Research Methodology-Methods and Techniques

C.R Kothari.

Internet:-

www.pepsico.com

71