RESEARCH REPORT

ON
“(COMPARATIVE ANALYSIS OF PEPSI,
CRACKING EXCLUSIVE COKE CUSTOMERS
TO PEPSI&SATISFACTION LEVEL OF
RETAILERS)”
AT
PEPSICO (NEW DELHI)

UNDER THE GUIDENCE: UNDER THE SUPERVISION:

Mr. RAJIV KUMAR Mr. R.CHANDRA

SUBMITTED BY:-
NISHANT KUMAR
ROLL NUMBER: 1405008392, BBA (2016-2017)
SMU SIKKIM MANIPAL UNIVERSITY DWARKA SECTOR 19

1
 TABLE OF CONTENTS

1. ACKNOWLEDGEMENT 3
2. DECLARATION 4
3. OBJECTIVE OF PROJECT 7
4. ABOUT INDUSTRY 8
5. JAIPURIA WITH PEPSI 21
6. PEPSI IN INDIA 27
7. PRODUCT PROFILE OF PEPSI 29
8. DETAILED ANALYSIS 35
9. OBSERVATION 39
10.ABOUT TROPICANA 40
11.INTRODUCTION TO FINDINGS 58
12.COMPETITOR MARKET SHARE AND STRENGTH 62
13.SWOT ANALYSIS 73
14.RESEARCH METHODOLOGY 77
15.CONCLUSION 83
16.RECOMMENDATION 94
17.BIBLIOGRAPHY 108
18.QUESTIONNAIRE 109

2
ACKNOWLEDGEMENT

I would like to express my heartiest gratitude to Mr. RAJIV KUMAR for giving

opportunity to associate myself to the world’s largest soft drink company and to

carry out my project title “Comparative Analysis of Pepsi, Cracking exclusive

coke customer TO Pepsi& Satisfaction levels of RETAILERS”.

I am sincerely thankful to Mr. RAJIV KUMAR Under whose guidance I

have successfully completed this project and the time spent with them has been a

great learning experience. I am also thankful to the entire staff and members for their

co-operation and held they rendered.

DECELARATION

I hereby declare that the Research report is result of my own work

for the fulfillment of academic requirement. This report is
solely the work of the under sign and nobody is allowed to
use, copy, edit anything by any person. Prior permission
has to be taken from appropriate authority of any further use.

NISHANT KUMAR
BBA FINAL YEAR
(6 SEMESTER)

3
 MEANING OF PROJECT

The word “Project” has great specification in the field of management before
starting any work we must have an idea about its basic. The meaning of the
alphabets of the “Project” are as follows:-
“P” – The work ‘p’ signify the phenomenon of planning which deals
symbolization and roper arrangement of Sensex and suggestion on
respectively in accordance with need.
“R” – It stand for associated with word resource with which guides to
promote planning.
“O” – This letter stands overhead expenses on UN estimated expenses, that
occurs in manufactures designed or layout of project.
“J” – This letter stands for joint effort i.e. Project work which is undertaking
should be completed with a combined. Effort.
“E” – This stand for engineering i.e. worker undertaken is to be employing
technical processes.
“C” – This stand for the phenomenon of constriction on which is more
essentially and basic form of work.
“T” – This stand for the techniques unless techniques to works is not
Known.

4
 CONCLUSION
In general we came to conclusion. That Research is systematic conclusion discussed
proposed particular subject which, inclusion complete information about required to
machine tools, appliances need the various operations required to be done in well
sequences.

OBJECTIVE

Today the study of practical training has become an integral part of all professional

education and those aspiring for post graduate degree in marketing management are

no exceptions. The purpose of practical training for management student is to make

them understand the management of working organization in all its aspects

especially in the area of their specialization. It also helps them to broaden their

horizon and effectively getting the experience which will prove to be useful, when

they integrate the theoretical concept with the practical working of an organization.

I really feel proud elated and privileged to complete the training. The duration gave

thorough knowledge of the working in the organization particularly in distribution

system and market survey which is most complex of all marketing activities. My

training project title is “Comparative Analysis of Pepsi, CRACKING

EXCLUSIVE coke Customer To Pepsi & Satisfaction levels OF Retailers”.

5
 ABOUT INDUSTRY

PepsiCo is a world leader in convenience foods and beverages, with 2007 revenues
of more than $39 billion and more than 185,000 employees across the world. Its
world renowned brands are available in nearly 200 countries and territories.
PepsiCo entered India in 1989 and has grown to become the country’s largest selling
food and beverage companies. One of the largest multinational investors in the
country, PepsiCo has established a business which aims to serve the long term
dynamic needs of consumers in India.
PepsiCo India and its partners have invested more than U.S. $700 million since the
company was established in the country in 1989. In India, PepsiCo provides direct
employment to 4,000 people and indirect employment to 60,000 people including
suppliers and distributors.
PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7
UP, Mirinda and Mountain Dew, in addition to low calorie options– Diet Pepsi and
7Up Light; hydrating and nutritional beverages such as Aquafina drinking water,
isotonic sports drinks - Gatorade, and 100% natural fruit juices and juice based
drinks – Tropicana, Tropicana Twister and Slice. Our local brands – Lehar Evervess
Soda, Dukes Lemonade and Mangola complete our diverse spectrum of brands.

6
PepsiCo’s snack food company, Frito-Lay, is the leader in the branded potato chip
market and was amongst the first companies to eliminate the use of trans fats and
MSG in its products. It manufactures Lay’s Potato Chips; Cheetos extruded snacks,
Uncle Chips and traditional nankeen snacks under the Kurkure and Lehar brands.
The company’s high fiber breakfast cereal, Quaker Oats, along with Lehar Lites, low
fat and roasted snack options enhance the choices available to the growing health
and wellness needs of our consumers. Frito Lay’s core products, Lay’s, Kurkure,
Uncle Chips and Cheetos are cooked in Rice Bran Oil to significantly reduce
saturated fats and all of its products contain voluntary nutritional labeling on their
packets.
The group has built an expansive beverage, snack food and exports business and to

support the operations are the group’s 43 bottling plants in India, of which 15 are

company owned and 28 are franchisee owned. In addition to this, PepsiCo’s Frito

Lay snack division has 3 state of the art plants. PepsiCo’s business is based on its

sustainability vision of making tomorrow better than today. Our commitment to

living by this vision every day is visible in our contribution to our country,

consumers, farmers and our people

7
The Quaker Oats Company was formed in 1901 when several American pioneers in
oat milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour and
William Heston had established the Quaker Mill Company. The figure of a man in
Quaker clothes became the first registered trademark for breakfast cereal and
remains the hallmark for Quaker Oats today.
In Cedar Rapids, Iowa, John Stuart and his son, Robert, and their partner, George
Douglas, operated the largest cereal mill of the time. Ferdinand Schumacher, known
as "The Oatmeal King," had founded German Mills American Oatmeal Company in
1856.

Combining The Quaker Mill Company with the Stuart and Schumacher businesses
brought together the top oats milling expertise in the country as The Quaker Oats
Company.
The first major acquisition of the company was Aunt Jemima Mills Company in
1926, which is today the leading manufacturer of pancake mixes and syrup.
Gatorade was acquired in 1983.

8
In 1986, The Quaker Oats Company acquired the Golden Grain Company, producers
of Rice-A-Roni.
PepsiCo merged with The Quaker Oats Company in 2001.

LATIN AMERICAS FOODS

The Latin Americas Foods business includes operations in Brazil, Argentina,
Colombia, Peru and Venezuela. This business continues to grow organically and
through acquisitions like the Lucky snacks business in Brazil.

PEPSICO INTERNATIONAL

PepsiCo International includes all PepsiCo businesses

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

9
 PepsiCo began its international snack food operations in 1966. Often PepsiCo
snack food products are known by local names. These names include Walkers in the
United Kingdom, Smiths in Australia, Matutano in Spain, and others. The company
markets Frito-Lay brands on a global level, and introduces unique products for local
tastes.

10
HISTORY OF PEPSI COLA

Pepsi-Cola was first made in New Bern, North Carolina in the United

States in the early 1890s by pharmacist Caleb Bradham. On August 28,

1898, "Brad's drink" was changed to "Pepsi -Cola" and later trademarked

on June 16, 1903. There are several theories on t he origin of the word

"Pepsi".

The only two discussed within the current PepsiCo website are the

following:

1) Caleb Bradham bought the name "Pe p Kola" from a local competitor

and changed it to Pepsi-Cola.

2) "Pepsi-Cola" is an anagram for "Episcopal". A large church across

the street from Bradham's drugstore. There is a plaque at the site of the

original drugstore documenting this while PepsiCo has refuted this

theory.

11
Another theory is that Caleb Bradham and his customers simply thought

the name sounded good.

As Pepsi was initially intended to cure stomach pains, many believe

Bradham coined the name Pepsi from either the condition dyspepsia

(stomachache or indigestion) or the possible one -time use of pepsin root

as an ingredient (often used to treat upset stomachs). It was made of

carbonated water, sugar, vanilla, rare oils, and kola nuts. Whether the

original recipe included the enzyme pepsin is disputed.

In 1903, Bradham moved the bottling of Pepsi -Cola from his drugstore

into a rented warehouse. That year, Bradham sold 7,968 gallons of

syrup. The next year, Pepsi was sold in six -ounce bottles and sales

increased to 19,848 gallons. In 1905, Pepsi received its first logo

redesign since the original design of 1898. In 1906, the logo was

changed again. In 1909, automobile race pioneer Barney Oldfield

12
endorsed Pepsi-Cola in newspaper ads as "A bully drink...refreshing,

invigorating, a fine bracer before a race"

In 1923, Pepsico went bankrupt due to high sugar prices as a result of

World War I, assets were sold and Roy C. Megargel bought the Pepsi

trademark. Eight years later, the company went bankrupt again,

resulting in a reformulation of the Pepsi -Cola syrup formula.

During The Great Depression, Pepsi gained popularity following the

introduction in 1934 of a 12 -ounce bottle. With twelve ounces a bottle

instead of the six ounces Coca-Cola sold, PepsiCo turned the price

difference to its advantage with a slick radio advertising campaign

which was the first use of a jingle in advertising. "Pepsi cola hits the

spot / twelve full ounces, that's a lot / Twice as much for a nickel, too /

Pepsi-Cola is the drink

for you," encouraged price-watching consumers to switch to Pepsi,

while obliquely referring to the Coca -Cola standard of six ounces a

bottle for the price of five cents (a nickel), instead of the twelve ounces

13
Pepsi sold at the same price. Coming at a time of economic crisis, the

campaign succeeded in boosting Pepsi's status. From 1936 to 1938,

PepsiCo's profits doubled.

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

diet soft drink

14
 FUTURE PLAN OF PEPSI

PEPSI EXPLORING TO ENTER WHITE BEVERAGES

Taking forward its increased thrust on the health platform, food and

beverages major PepsiCo is toying with the idea of entering the milk

and/or soya-based beverage category.

"We are investigating entering the white drinks category which could be

milk or even soya based. It would definitely be a value -added product

where we could create a niche for ourselves," Mr Rajeev Bakshi,

Chairman, PepsiCo India, said.

Incidentally, products revolving around t he "health" platform have

emerged as the growth driver for the company this year. According to

Mr. Bakshi, among the company's product portfolio, Diet Pepsi saw the

largest growth in 2005 followed by juices and water. "The carbonated

business has also done well this year, and we have seen a double -digit

growth in value sales, despite the fact that we increased prices of our

soft drinks by about 18% this year due to cost pressures," he said.

15
Meanwhile, health drink Gatorade, which PepsiCo launched this year ,

has also been able to generate volumes. "By the end of this year, sales

of Gatorade will be about 20% of that of Tropicana (in value terms)

and it is growing. We would be rolling out newer lavours of Gatorade

over the next few months," said Mr Bakshi, w ho is bullish on the

premium category and feels that this segment could well be the growth

trigger for the FMCG sector, which has instead been concentrating on

the mass market.

The company is diversifying into newer businesses in the agriculture

domain as well. Even as PepsiCo has identified seaweeds as a key

driver for exports and its Florida oranges project in Punjab is running

on track, the company is now looking at producing organic fertilizers in

India. "We would be producing organic fertilizers, which would

increase yields of cash crops by 20%. A completely new technology is

being

utilized for this project," he said, declining to divulge any further

details.

For the Florida Oranges project, the company along with Government of

Punjab is in the process of setting up two plants in the State for

processing fruits. The plants would be run by Pepsi which would also

16
then be selling the intermediate product (concentrate/juice) to other

firms, in India or abroad.

Currently, around 4 million saplings (of Flo rida oranges) have been

planted in Punjab in tie-up with the Punjab Government. Though there

would be a gestation period of about 6 -7 years before the project bears

fruit, it would allow the country to compete at the global level in the

juices category. Currently, Brazil and the US are the major producers

for juice.

17
JAIPURIA WITH PEPSI

With a legacy of decades in the industrial arena, the Jaipuria Group of companies

now stands at the one thousand five hundred crore mark. The group boasts of its

several world class business arenas like those of textiles, bottling, education,

information technology, food chain and retailing, apart from numerous other

business segments.

JAIPURIA GROUP is an Rs.1500 crore, family controlled, reputed business house

with over a century of operations in diversified fields.

The group as on today can boast of expertise and leadership in the fields of food and

beverages, textiles and real estate development with varied interests in a wide range

of products and services.

The Jaipuria group under the leadership of the three brothers S.K Jaipuria, R.K

Jaipuria, and C.K Jaipuria has today become one of the leading business houses of

the country.

The Jaipuria Group, since 1975 has been a renowned and reputed in the field of soft

drink bottling. Since its foray into this field the group bottled almost all the major

soft drink brands that existed in India like Coca- Cola ,Thumps up , Limca and

Spirite etc.

18
Today the Jaipuria Group commands almost 60% of the Pepsi business in India.

With an impressive turnover and plants equipped with the latest technology. The

Jaipuria Group can boast of being the biggest name in the country when it comes to

soft drink manufacturing.

The Group has a major presence in most part of the country, with its 22 fully

operational plants running successfully across the country.

Pepsi Co is a world leader in convenient foods and beverages, with revenues of

about $ 25 billion and over 142,000 employees. The company consists of the snack

businesses of Frito-Lay international, the beverages businesses of Pepsi-Cola North

America, Gatorade/ Tropicana North America and PepsiCo Beverages International,

and Quaker Foods North America, manufacturer and marketer of ready-to-eat

cereals and other food products. PepsiCo Brands are available in nearly 200

countries and territories.

Many of PepsiCo’s brand names are over 100 years old, but the corporation is

relatively young. PepsiCo was founded in 1965 through the merger of Pepsi –Cola

and Frito –Lay. Tropicana was acquired in 1998 and PepsiCo merged with the

Quaker Oats Company including Gatorade in 2001.

PepsiCo’s success is the result of superior products, high standards of performance,

distinctive competitive strategies and the high integrity of our people.

19
The following are the major areas of operations of the Jaipurai Group.

 Food and Beverages

 Textiles

 Information Technology

 Real estate

 Education

20
OFFICES AND PLANTS

The offices of Jaipurai Group spread across all state in India which is given below.

1. New Delhi 11. PATNA

2. Mumbai 12. JAIPUR

3. Kolkata 13. Indore

4. Chennai 14. Bhopal

5. Hyderabad 15. Gwalior

6. Agra 16. Vishakhapatnam

7. Guwahati 17. Udaipur

8. Chandigarh 18. Goa

9. Lucknow 19. Dharwad

10. Varanasi 20. Jamshedpur

21
 PEPSI IN INDIA

This $ 30, 40 billion, New York (US) based Pepsi Company, had to start from

scratch after entering the country in 1989. Deep blue Pepsi, is a broad based food

and beverage Company, deriving more than 60% of its sales and operating profits

from its snack foods and restaurant business.

Pepsi started its commercial production in 1990 with plants, one at Channo

(Sangrur) and other at jahura (Dist. Hoshiarpur). Pepsi drink which was introduced

six year back, has now become the house hold name thought the country.

The Marketing efforts of Pepsi in the first three years were so successful, that Pepsi

had taken major market share of Parle and Parle has to face hard times. Pepsi-Cola

has been positioned as a drink for the young. Its popular slogan “YEHI HAI RIGHT

CHOICE BABY” go to show that the appeal is significantly for the younger

generation in a popular, much aired commercial, Bollywood star Sachin Tendulkar.

Began to cdroon in the tune only after he’d guzzled, the right cola, made the smart

choice (A-Ha!).

Behind the hype in an effort invisible to consumer Pepsi pumped in Rs.300 crore to

add muscle to its infrastructure in bottling and distribution.

At present Pepsi is at war with Coke at National level.

22
 PRODUCT PROFILE

Pepsi Company limited manufacturing many brand of the soft drinds to satisfy the

need of consumer, each brand has its own flavour and taste beca use different brands

are liked by different segments of customer. There are ten brands of of Pepsi named

as following

Pepsi

Pepsi diet

7’Up

Mountain Dew

Mirinda orange

Mirinda lemon

Slice

Aquafina

Evervess Soda

Tropicana

23
 Carbonated drinks:

1. Pepsi

It is the main carbonated product of

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

White Drinks:

2. 7’Up:

It is the main product of the company. I

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

24
3. Mountain Dew:

Out of 173 outlets visit I have seen that this

product was used as the alternative of 7’Up,
but more or less 30% of the total outlets were
consumed this product , in very less quantity.

4. Slice:

Slice is only juice product of Pepsi. In all outlets

This product is available because of its demand

among children and adults

Mirinda:

There are two types of flavor of Miranda.

One is Miranda Lemon, Miranda Orange.
Though both are the same in the market position, but
Lemon flavor is the most demanded.

25
 Aquafina :

Aquafina is only water product from Pepsi.

During the work of two month with the
distribution of Pepsi I have found that Aquafina user
was either the elite class or middle class customer.

TROPICANA

These drinks are prepared by mixing juices such as mango, papaya,

guava and others with vitamins and health related supplements. These
juices are mostly preferred to kids and woman.

EVERESS (SODA)
This is a soda drink and doesn’t come under the category of CSD’s. It
has no color, no taste no favour. It is generally used as a supplement
with alcoholic drinks. The adults generally consume it.

PESI DIET
It is considered as cola drink and it contains balanced calorie contents
and it is better option for health conscious people.

26
 ADVERTISING

Advertising is a promotion of goods or services, by a sponsor (a firm or person) who

can be identified and who has paid for this communication. The purpose of
advertising is to led to an immediate sale, or a sale at some later date when the
customer may find a need for the product.
The purpose of advertisement is to sell something a good service, idea, person or
place, either now or later this goal, reached by setting specific objective that can be
expressed individual ads. that are incorporated into an advertising campaign recall
again from the buying decision process that buyers go through a series of stages
from unawareness to purchase. Thus the immediate objective of an and may be to
move target customers to the next stage in the hierarchy say from awareness to
interest.
Specific advertising objective will be dictated by the firm’s overall marketing
strategy. Typical objective are:
1. Support personal selling Advertising may be used to acquaint
prospect with seller’s company and product, easing the way for
the sales force.
2. Improve Dealer Relations: Wholesalers and retailer like to see a
manufacturer support its product. .
3. Introduction New Product: Consumer need to be informed even
about line extensions that make used of familiar brand name.
They lays emphasis on advertising at the core centers. They lay
their banners and hoardings at all the important places and see to
it that they do space on media.
The product like Dew, Slice, 7UP and Miranda Lemon and
Miranda Orange belong to one group i.e. Pepsi, advertise on

27
nation side basis for its products, by hireling time and space on
media.
To promote the product and to create the awareness of the product
every year they are spending Rs. 10/- per crate for the
advertisement. They are spending the amount for wall painting,
dealer’s board, glow signs, hoardings, banners, stickers, posters
and buntings.

28
 DETAILED ANALYSIS DONE BY MYSELF

THE SURVEY

 The survey named as EDS {EVERY DEALER SURVEY}.

 The survey has been conducted to check the cooler management, availability

of products & activation of Pepsi cola in various outlets.

 The survey has been covered in two phases. First phase covered the two round

survey of the market developers in the respective market. The second phase

covered the survey of sales executive in the respective market. The no. of

Shops covered in different clubs were:

 The survey was based on three topics.

 Firstly we have to check the Cooler management i.e. the cooler which was

provided by the company to the customer, are properly managed/working or

not. And lastly the most important aspect of cooler management was the brand

order.

 Secondly, we have to check the availability of the product i.e. whether the

product is available to the customer or not.

 Lastly, we have to check the Activation, which is a very important because

activation helps to boost the sales. Activation is done through boards i.e.

glow sign. DPS, flangs and Combo boards. Mostly combo boards are given

to the E & D outlets. And is very helpful in attracting the customers. Rack

29
 with header is provided to the Grocery outlets which should be fully

charged.

MARKET SEGMENTATION
The market was segmented in three groups.

1. Channel
2. Consumer income
3. Customer weight

CHANNEL

In the channel segment the outlets were divided into three parts namely:-

 Eating & Drinking

 Convenience

 Grocery

In the eating & Drinking segment, survey conducted on the outlets namely

restaurants, Hotels, Dhabas etc.

In the Grocery segment survey conducted on the grocery & Departmental stores.

In the convenience segment survey conducted on outlets such as confectionaries,

PCOs, Pan Shops, Juice shops etc.

30
CONSUMER INCOME

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

 High

 Medium

 Low

CUSTOMER WEIGHT

The market was segmented also according to customer weight and was divided into

two groups.

 Large

 Medium

Diamonds outlets are those outlets which are having sales of more than 800 C/s per
Annum.
Gold outlet are those which are having sales of 500-799 C/s per Annum.

31
OBSERVATIONS

 The areas covered by us were among the strongest area in bareilly for

Pepsi and the most potential area for Slice {NON CARBONATED}

because of the large no. of Grocery Stores and Confectionaries present

per unit area.

 In bareilly 75-80% outlets having excellent cooler management, proper

availability of product and activation scheme.

 In bareilly outlets having good cooler management, proper availability

of products and activation scheme.

 In Bareilly having some problem in distribution of product.

32
TROPICANA
Tropicana was the new product of PepsiCo which was launched in 2003. Tropicana

was made by pure fruits which is very good for health. The Tropicana is made of

Orange, Mango, Pineapple, Papaya, and Guava. Tropicana is mainly preferred by

Children’s, Women’s, and Youngster.

TROPICANA JUICE MARKET IN ASIA

The tropical juice market in Asia can give some insights into the future

of the market in India. Way back in 1998, despite the growing

popularity of tropical juices, there were indications that traditional

suppliers would not be able to serve the market. There were adverse

economic and weather conditions also in Thailand and India. Mango

production In India was hit hard by higher than normal t emperatures,

followed by floods. There were certain adverse conditions in Thailand

such as weather conditions, economic crisis, depreciation in bath, low

purchasing power and less import demand, leading to shortage of

transport containers and a rise in shi pping costs.

This suggests that such developments, whatever they are, affect

demand. This is evident in the fact that there was a threat to Asia’s

33
strong position in the international juice market even when demand for

tropical juices grew.

In the global market, the European and US importers are the major

buyers of tropical juices. These importers mainly demand mixed

tropical drinks. In Europe, many juice concentrates (including guava,

banana, papaya, and others) are mixed with orange and pineapple to

form nectars and special tropical blends. Netherlands is the largest

continental importer of juices for mixing purposes and usually does so

for resale to the rest of Europe.

In the U.S., the tropical juices are also enjoying increasing popularity.

From 1994-1996, the total volume of banana juice imports grew by 15

percent whereas imports of tropical juices excluding banana and

pineapple increased by 50 percent during the same period, both in

volume and value terms.

The long-term trend in the U.S. juice market poi nts toward increasing

popularity for tropical juices. An important reason being sighted for

this increase is the growing number of Asian and Latin American

immigrants, which in turn has sustained the growth of ethnic based food

stores. A more recent development is the popularity of multivitamin

drinks during hot weather. These drinks are prepared by mixing juices

34
such as mango, papaya, guava and others with vitamins and health

related supplements.

FRUIT BEVERAGES MARKET

The fruit drink market has recently witnessed expansion with the entry

of several new players. The market has been progressing in terms of

product content and there are three major product contents available.

* Drinks: Juice with pulp content less than 40%

* Nectars: Juice with pulp content between 40-80%

* Juices: juice with pulp content more than 80%

With development in the tetra-pack market, there is a natural

progression from drinks to nectars to juices. While traditionally fruit

drinks were aimed at children, the new brands lik e Onjus, Real, and

Life have focused on young adults and professionals. Take the case of

market leader Parle Agro which has launched

Yo Frooti and Yo Appy with a new slim pack to attract youngsters.

Although fruit drinks focus strongly on out -of-home consumption, the

juices and nectars have been concentrating on takeaways or in -home

consumption. With more choice coming in, the tetra -pack market is

likely to witness further segmentation.

35
MARKET SIZE , GROWTH AND DEMAND

The total fruit beverage market is pla ced at Rs. 22 billion with the fruit

based beverage market constituting 25% of the overall market. Thus the

fruit based market has currently a potential of Rs.5.5 -6 billion. Until 3

years ago, the market, which largely consisted of fruit drinks, was

growing at 30% due to its low base. But with the launch of new

products in the niche segments like nectars and juices, the fruit drink

market growth reduced to 10% as compared to 30% growth rate of

juices and nectars.

The pure fruit juices segment is estimated at 100 crores and is growing

at 40 % growth rate while the synthetic segment is at 10 % only. The

per capita consumption of juices in India is estimated at 200 ml which

is expected to rise given China has

Attained a consumption level of 1500ml. As per the study by McKinsey

and Co and CII, the market size of all fruit beverages is projected to

grow very fast to Rs 20 Bln level by the year 2000 from Rs 3 .5 Bln

level currently. This figure is not inclusive of exports. The worth of

tetra-pack market is currently estimated to be around Rs.400 crore,

which is 10% of the total soft drink market. At present, the tetra -pack

market is growing at a rate of 10%-12%, and in the near future,

36
companies like PepsiCo Inc. (Tropicana) are expecting a growth rate of

40%. But Godrej Foods is skeptical of the growth rates and estimates it

to be at 15% due to onslaught of carbonated soft drinks.

In- home packs do not witness any seasonality in the market and there

distribution patterns remain normal throughout the year. Out -of-home

packs like 250 ml face a lot of peaks and troughs and there is a lot of

seasonality, which has to be looked after to manage demand and shoot

profits.

37
Demands Past & Future

Year '000 MT

1990-91 137.6

1991-92 147.4

1992-93 157.5

1993-94 176.9

1994-95 211.0

1995-96 262.2

1996-97 298.2

1997-98 340.0

1998-99 390.9

1999-00 447.6

2000-05 510.3

2005-09 579.2

2009-15 1043.7
38
From the above table, the growth in market can be seen as

Increasing constantly from 7 to 16 % in 1999 -2000. In the next six to

seven years, the market is poised to grow at 20% approximately.

The fruit beverages market in the India n continent is segmented zone-

wise as follows:

Zone wise Shares

Segment Share (%)

North India 25

East India 20

West India 31

South India 24

Thus the fruit beverage market has more acceptance in Northern and

Western India, which is due to the climacti c conditions prevailing there

relative to the rest of the country.

39
MARKET GROWTH RATES

1990-91 - 1996-97 13.8%

1996-97 – 2002-05 14.2%

2006-2009-14 18.5%

SEGMENTATION

There has been no general acceptance of the product forms in the fruit

drinks market. The consumer is basically concerned if it is a fruit juice

or synthetically constituted product. Product segmentation, therefore,

should be clearly delimited. Under the fruit drinks the first

segmentation is between real fruit drinks and synthetic drinks. The

former is based on natural fruit pulp or juice. The others are synthetic

Products containing fruit flavors.

Broad taste preferences could be another way to define the market. The

market is at present segmented on the basis of fruit pulp conten t. For

the purpose of segmentation, on the basis of fruit pulp content, the

40
market can be segmented as: Fruit juice with pulp content more than

80%. Brands falling in this category are Onjus and Real. Recently

Tropicana has also entered this segment Fruit Nactar with pulp content

between 40%-80%. Life and X's comes in this category.

Fruit Drinks with pulp content less than 40%. Frooti and Jumpin are the

popular brands in this category. Segmentation could also be on the basis

of the benefits provided to the consumer:

One benefit could be the nutrition content it gives to the consumer. So

one market could be the health -conscious segment.

Second benefit is thirst quenching, so the other segment could be those

buying the drink or nectar for satisfying the thirs t and especially for

those on the move. Another very broad segmentation is the type of

situation in which the drink or nectar is used:

People who are on the move i.e. those traveling and

People who are using it on the breakfast table as a part of their me nu.

Players very often choose one or more of such segmentations to

differentiate their product and target market and accordingly plan their

distribution and promotion patterns.

41
CONSUMER HABITS AND PRACTICES

The Indian lifestyle has a traditional predilect ion for fresh fruits and

vegetables or those processed at home. People go in for fresh fruits

vending from kiosk fountains, which produce instant juices from fresh

fruits in the presence of the consumer. One reason is the unavailability

of hygienically produced and well-preserved products with the use of

preservatives. The fact that it is packed denies its freshness. This was

also a reason why some of the real but branded fruit juices launched in

the late 1980s and early 1990s did not succeed. Taste is ofte n the

secondary consideration in the Indian market for beverages. Fruits

juices also lose on roughage, which is an important part of fruit

nutrition. Few people know the difference between a juice and nectar.

In general, the Indian consumers have become health conscious now and

are looking for healthy and natural and appetizing juices. They are

moving away from synthetic drinks to natural and wholesome fruit

juices. At present Per capita consumption of juices in India is estimated

at a fraction of a liter -200ml.

The consumption of fruit juices in take -home packs is estimated at

17250 mn lt.

42
Consumers go for convenient and economy products. So small packs are

well suited for travelers and children and large take home packs for

families and price conscious people.

Availability in chilled form and brand awareness plays a crucial role in

purchase decision. This has implications for the need for

Availability of the product and in the right form.

While there is no aversion to consumption of fruit beverages by a ny age

group, the main consumers of this market are people in the age group of

30 and below. Young adults and teenagers predominantly consume tetra

pack drinks. Brand loyalty is very low, as all the products taste the

same. But brand loyalty is high in ca se of kids. Though there is a lot of

difference between brand awareness and brand loyalty. Consumers are

money conscious where the purchase of fruit beverages is concern.

Consumers are not ready to explore the market. They do not want to

change their taste and are stuck to their old brands. Orange and other

drinks are slowly picking up and breaking the loyalty towards old

brands.

43
TRENDS IN THE INDUSTRY

Current growth rate of the fruit beverage industry is estimated to be 50 -

60% above the last year. The d ecibel levels of Real and Tropicana and

the gap that existed for packaged juices have spurred this growth

according to the industry analysts.

Consumption of fruit juices in take home packs is estimated at 17250

million liters and could increase to 21570 million liters in the coming

few years. The entry of other global players, who are entering both with

and without domestic alliances, will expand the domestic market faster

with their promotion strategies. These strategies would mostly take up

the form of a full-fledged media campaign.

There are few changes in the consumer behavior as well, which have

spurred the market for fruit juices viz

Consumers are turning away from the high -calorie, sugar loaded juice

drinks in favor of more natural, vitamin -fortified products.

Culture of orange juice with break fast is growing very fast.

In the western markets, all-natural juices are the strongest growth

leaders and are slowly replacing the concentrated fruit beverages and

novel fruit drinks.

44
Also, consumers increasingly prefer chilled or ready to drink products

over from-concentrate variety.

The growth of white spirits market is causing juices to grow as well. It

is acknowledged that rum or vodka taste best with a variety of juices or

juice mixtures, Gin goes well with grape fruit juice and Bourbon

Whiskey can be mixed with Peach, Apricot, Mango, Papaya and orange

juices. Owing to the same trend some fanciful juice mixtures like

Raspberry with Mango have started gaining popularity. (Source:

Nations Restaurant News.15 t h March 1999)

The developments in the western markets have always have

had a trickle-down effect on the Indian market, so a lot of

changes can be anticipated in the product & packaging of

these products in the near future.

45
INTRODUCTION
TO
FINDINGS

46
INTRODUCTION TO FINDINGS

The actual percentage of users of Pepsi, 7’Up, Mountain Due, Slice, Merinda &
Aquafina would come around 7%, 55%, 10%, 10%, 12%, 6% of the outlets. The
relatively high percent definitely owes to the South Bengal Division. The
percentage, which I have mentioned abve, got from every outlet visit when I have
work with the distribution of Pepsi.

60 Most Demanded Flavour

50

40

30

20

10

0
Pepsi 7'Up Mountain Due Slice Merinda Aquafina
Flavour

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

47
BUSINESS SEGMENTS

Indian Beverages industry’s size is Rs. 8000 Crores and it is dominated by two
players viz Pepsi & Coke only. This high profile industry has lot of potential for
growth as per capita consumption in India is 9 bottles a year as compared to 20
bottles in Sri Lanka, 14 in Pakistan, while 12 bottles a person in Nepal.

The RKJ group is India's leading supplier of retailer brand Carbonated and Non-
Carbonated soft drinks, with beverage manufacturing facilities in India and Nepal.
Its experience in the beverage industry dates back to the sixties when it had the first
franchise at Agra. The family manufactures and markets Carbonated and Non-
Carbonated Soft Drinks and Mineral Water under Pepsi brand. The various flavors
and sub-brands are Pepsi, Miranda Orange, Miranda Lemon, Mountain Dew,
and 7UP, Slice Mango, Slice Orange, Evervess Soda and Aquafina.

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

48
COMPETITOR:

MARKET SHARE & STRENGTH

49
The Competitor: Market Share & Strength

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

Rivalry with Coca-Cola

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

50
In 1985, The Coca-Cola Company, amid much publicity, changed the formula. Some
authorities believe that New Coke, as the reformulated drink came to be known, was
invented specifically to respond to Pepsi. Numerous blind taste tests suggested that
more consumers preferred the taste of Pepsi (which is believed to have more lemon
oil, less orange oil, and uses vanillin rather than vanilla) to Coke. In taste tests,
drinkers were more likely to respond positively to sweeter drinks, and Pepsi had the
advantage over Coca-Cola because it is much sweeter.

Coca-Cola outsells Pepsi in the US overall because Coca-Cola is sold exclusively in

more locations, such as restaurants that sell Coca-Cola, but not Pepsi.

By most accounts, Coca-Cola was India's leading soft drink until 1977 when it left
India after a new government ordered the company to turn over its secret formula for
Coca-Cola and dilute its stake in its Indian unit as required by the Foreign Exchange
Regulation Act (FERA). In 1988, Pepsi gained entry to India by creating a joint
venture with the Punjab government-owned Punjab Agro Industrial Corporation
(PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi
until 1991 when the use of foreign brands was allowed; Pepsi bought out its partners
and ended the joint venture in 1994. In 1993, Coca-Cola returned in pursuance of
India's Liberalization policy. In 2005, Coca-Cola and Pepsi together held 95% market
share of soft-drink sales in India. Coca-Cola India's market share was 60.9%. Others
claim that due to rumors of the use of cocaine, Coke was banned for a long time in
India and recently the ban was lifted, however, Pepsi had maintained a commanding
market share.

Pepsi had long been the drink of Canadian Francophones and it continues to hold its
dominance by relying on local Québécois celebrities (especially Claude Meunier, of

51
La Petite Vie fame) to sell its product. "Pepsi" eventually became an offensive
nickname for Francophones viewed as a lower class by Anglophones in the middle of
the 20th century. The term is now used as a historical reference to French-English
linguistic animosity (During the partitionist debate surrounding the 1995
referendum, a pundit wrote, "And a wall will be erected along St-Laurent street [the
traditional divide between French and English in Montréal] because some people
were throwing Coke bottle one way and Pepsi bottles the other way").

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

More importantly, Pepsi outsells its rival in grocery and convenience stores in the
U.S. (regarded as an indicator of consumer preference), with Coca-Cola's dominance
in exclusive restaurant, Movie Theater, amusement park, college, and stadium deals
giving Coke the overall sales advantage. In the U.S., Pepsi's total market share was
about 31.7 percent in 2004, while Coke's was about 43.1 percent.

In Russia, Pepsi once had a larger market share than Coca-Cola. However, Pepsi's
dominance in Russia was undercut as the Cold War ended. Pepsi had made a deal
with the Soviet Union for scale production of Pepsi in 1972. When the Soviet Union
fell apart, Pepsi, was associated with the old Soviet system, and Coca Cola, just
newly introduced to the Russian market in 1992, was associated with the new
system. Thus, Coke rapidly captured a significant market share away from Pepsi that

52
might otherwise have needed years to build up. By July 2005, Coca-Cola enjoyed a
market share of 19.4 percent, followed by Pepsi with 13 percent.
According to Consumer Reports, the overall advertising of the two companies still
involve tv commercials that endorse the image of youth, beauty, family togetherness,
fun, pleasure, celebrity and patriotism. These components are expected to bring
positives to the company so that the rivalry will continue on

How I calculated the market share:

From the study of 573 outlets almost every outlets were consuming at least one of
the Pepsi products. Consumption of each of the outlets was taken and was
segregated as per the product.

Two factors required to find the market share were, one, total market size in terms of
sales volume, two, total sales volume of individual brand or company. The total
sales volume for each of the brands company by summating the sales volume of
each of the products of a company.

Shareholders:

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

53
 MARKET SHARE

MARKET SHARE PEPSI

MARKET SHARE COCA COLA

MARKET SHARE DOULAS

The coverage Ratio:

Before moving on to the details of each competitor, a light on coverage ratio would
be of great significant, so as to understand where Pepsi India is actually standing in
the Soft Drinks market.

Defining coverage ratio, the ratio of number of outlets a particular company has as
its users to the total number of users in the market. The resultant will obviously be in

54
decimal. Higher the results, better the ratio, better the presence of the company in the
market and vice-versa.

The coverage ratio will enable us to understand the penetration of each company in
the market. Coverage ratio will also enable us to solve an hypothesis whereby we
can get an idea of what sales volume can he archive if we attain particular coverage
ratio, furthers the benchmark can also be done.

How I calculated the Coverage Ratio?

It is calculated using the formula:

No. Of users of particular brand
C.R. = Total number of users

Interpreting the formula, coverage ratio can be obtained by dividing the number of
users of a particulars brand to the total number of users of Pepsi.

The reason is that coverage ratio would put light on the distribution reach and the
number of customer’s one company has. Further coverage ratio would solve the
purpose of knowing how many customers a particular company can have as its
maximum. The maximum any compact can have as its customer is the maximum
number of users of Pepsi in the whole market and it can not include any of the non-
users in their probable customers or potential customers, hence total number of Pepsi
users was taken as the denominator.
To find the coverage ratio the outlets were segmented as per their brand or brands.
The outlets using the same product were brought under the same column and then

55
they were summated to find the total no. of users of a particular brand was then
divided by the total no.of outlets in the whole market.
Substituting the relevant values for a particular company the coverage ratio was
obtained for each of them. The table of coverage ratio can be seen following the
graph. Graphically the coverage or the penetration is as follows

56
COMPETATIVE PRICE ANALYSIS:

Now, with competitive price analysis a perfect picture of Pepsi Co India Holdings
Private Limited in the beverage market can be drawn. The competitive price analysis
is as shown in the following pageThe compepative price analysis shows that Pepsi
Co India has very competitive prices; in fact it has lower prices for a number of
products. However, the only troublemakere is the local player who has a very good
hold on carbonated product and juice. There are a

Number of local players with price maximum up to Rs. 8 for one bottle of cold
drinks to its outlets and as low as, believe it or not Rs. 6/bottle. However it would be
best interest for Pepsi to ignore such local players and concentrate on outlets that
believe in quality. Among major competitor, the one and only Coca-Cola have more
or less same prices, with almost all the prices being at per. However my study
revealed that almost every one of them negotiate hugely as per the potential of the
customer. For e.g. Coca Cola offers its products for as same price.

Product as per Pepsi (Rs.) / Coca-Cola Local (Rs.)

Pepsi’s / Coca 300ml (Rs.) / 300ml /300ml
Cola’s
Pepsi / Coca- 10.00 10.00 8.00
Cola
7’up / Sprite 10.00 10.00 ----
Mountain Dew 10.00 ----- -----
Merinda Orange 10.00 10.00 8.00
/ Fanta
Merinda Lemon 10.00 10.00 8.00

57
/ Limca

Slice / Mazza 10.00 10.00 -----

Aquafina / Kinle 12.00 12.00 10.00

LOCAL PLAYERS:

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

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

58
Swot Analysis

Strength
1. Improved Quality Control

2. Latest Technology

3. Heavy Investment in both Infrastructure and Sales Promotion campaigns.

4. Modified and Attractive Packaging.

5. Strong Advertising Network

Weakness
1. Entire infrastructure needs a face lift.

2. Unskilled labour.

3. Tight Cash Policy.

4. Fear of retrenchment among the workers.

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

Threats
1. Stiff competition

2. Illegal distribution done by some distributors

3. Changing of consumer preferences

59
VISSION OF PEPSI IN INDIA

Provide exceptional strategic leadership in the Pepsi. India System resulting in

consumer and customer preference and loyalty through Pepsi commitment to them,

and in a highly profitable Pepsi corporate branded beverage system.

MISSION OF PEPSI IN INDIA

Create consumer products, services and communications customer’s service and

bottling system strategy processes and tools in order to create competitive advantage

and deliver superior value to:

 Consumers as a superior beverage experience.

 Consumers as an opportunity to grow profits through the use of finished

drinks.

 Bottlers as an opportunity to make reasonable to grow profits and volume.

 TCCC as trademark enhancement and positive economic value added.

 Suppliers as an opportunity to make reasonable profits when creating real

value added in an environment of system wide team work, flexible Business

system and continuous improvement.

 CCI associates as superior career opportunity.

60
RESEARCH METHODOLOGY

RESEARCH DESIGN

Marketing research is the backbone of Marketing. The basic objective of this

research was to analyze the impact of signages on the overall sale of CSD drinkers

with reference to Outer bareilly City.

A research design specifies the methods and procedures for conducting the

particular study. Broadly speaking, research design can be grouped under 3

categories –

1. Exploratory research

2. Descriptive research

3. Causal research

But the nature of my research is exploratory research as it focuses on the discovery

of ideas. Its goal is to shed light on the real nature of the problem and to suggest

possible solution and it involves number of steps.

RESEARCH PLAN

Meaning of Research plan

After identifying and defining the problem as also accomplishing the relating task,

researcher must arrange his ideas in order and writer them in the form of an

experimental plan or what can be describe as research plan.

61
Developing the research plan

The next stage of marketing research calls for developing the most efficient plan for

gathering the needed information. Designing the research plan calls for decision on

the data sources, research approaches, research instrument, sampling plan and

contact method.

DATA SOURCES

The next step is to determine the sources of data to be used. As there

are two methods of data collection.

(i) Primary data

(ii) Secondary data

I have selected both the methods for collecting the data but more emphasis is on

primary data collection.

As a primary source of data, I used the simple but most effective method i.e.

questionnaire. In this method, usually some questions are asked to the persons to

whom they are concerned with and on the basis of their answers the analysis is to be

made. These questionnaires are a very effective means of collecting the data and it is

also the cheapest method.

62
In the questionnaire I used hybrid questions, which were asked to the retailers of

Outer bareilly city. These questionnaires include the questions like their preference,

awareness, perceptions etc.

Secondary data are those which have already been passed through the statistical

process. To understand the status of Pepsi Company, some websites helped me in

collecting the data in a better way. Some other sources of secondary data were

newspaper, magazines, journals, etc. and the data collected from the above

mentioned sources helped me in getting information about the brief history of Pepsi

Company.

RESEARCH APPROACHES

Primary data can be collected into five ways:

Observations, Focus-group, Survey, Behavioral data and experiment and here I have

used survey research and surveys are best suited for exploratory research.

RESEARCH INSTRUMENTS

Marketing researcher has a choice of main research instrument in collecting primary

data, questionnaire and mechanical device. I have used only one research instrument

i.e. questionnaire.

63
QUESTIONNAIRE

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

questionnaire generally covers the questions which are based to the following matter

preference, perception, validity, suggestions of the responded.

SAMPLING PLAN

I have collected the primary data from retailers and secondary data through internet

and libraries etc.

SAMPLE SIZE

Large sample give more reliable results than small sample . I have taken sample size

of 100 from total population in this area.

AREA OF SURVEY

Survey was completed in this different areas of outer bareilly city.

SAMPLE PROCEDURE

To obtain a representative sample , I have used simple random sampling, which

comes in probability sampling.

64
CONTACT METHOD

Once the sampling has been determined the mark research must decide how the

prospect /targeted retailer should be contracted. For this purpose , I simply went to

retailers shop and used questionnaire from them randomly.

COLLECTING THE INFORMATION

After these steps , I have collected all information’s from different sources.

ANALYZE THE INFORMATION

The step in the marketing process in to extract finding from the collected data. I have

tabulated the data in develop frequency distribution

PRESENT THE FINDINGS

As the last step I have presented the findings that are relevant to the major

marketing decision facing management.

65
CONCLUSION

 Overall retailers are happy with the current composition of signage but they

are intend to pay back more to the company, if company provides more

maintenance and facilities to the retailers in terms of signage.

 A brand name PEPSI has its supremacy in many areas but due to some

reasons it is losing its market, and one of them is its improper composition of

signage’s which is not good in long run further the things are getting worse

due

 to the non-communication between retailers and the company.

 The sales is increasing due to these effective signage but not too much and

that is the matter of concern as they are the part of the physical evidence

which place an important role in overall experience of the customer.

66
 CUSTOMER ANALYSIS
Customer Analysis:

As mentioned earlier, of the 573 outlets, almost all of them were used Pepsi product.

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

Customer Demand

pepsi
7'up
Mountain Due
Mirinda
slice
aquafina
.

67
All said and done, life does not seem to be very easy for these outlets that were the
exclusive counters. Most of them being located in the upper graded zones of south
Bengal were finding it very difficult to meet their ends. Few outlets were planning to
pull down their shutters sooner or later. They also faced seasonal fluctuations, with
better business from May to July. Still only a selected few seemed aggressive
enough to revamp the whole business by expanding into other segments like Ice
Cream, Lassie etc.

Problems:

Many problems surfaced for the reluctance to distribute among these outlets, the
prime once being as follows;

 Poor distribution network.

 Problem of availability of the demanded flavor.

 Problem of time management of distribution to the outlets.

 Payment problem of outlets.

 Problem of freezing materials..

 Dispute product problem.

However the good news for Pepsi is that couple of outlets having learnt from their
experience.

On the bottom line, Pepsi should have a constant on this segment especially the
bigger players. The potential customers amongst these outlets have been dealt in
Drinks potential section.

68
The Users Analysis:

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

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

 To understand what the outlet actually looks out for while buying a Pepsi.

 Does the outlet sick to one brand or does he keep on using different ones?

 How satisfied is he with the current brand?

 How is the best according to the outlet, in terms of quality, service, and price?

 Where does Pepsi Co India Holdings PVT ltd?

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

69
The non-user was asked as to whether he was aware of Pepsi’s Presence in bulk
industrial products? Why doesn’t he use Pepsi, will he use it in the future? Why did
he stop using had he been using it in the past?

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

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

The question first asked to the out let was,

1.What makes in buy a particular brand?

The option was qulity, price, and availibility size of packing, contract, and service.

Let’s say the outlet says he looks out only for quality while buying a brand. But
under all possibilities, quality may not be the only factor, which the outlet looks out
for, service may also be the factor, availability can be and price can be the most

70
important factor and usually it does happen that any consumer does not prefer to say
that he is price conscious.

Therefore in order to overcome this limitation, a question was put in the end, as to
would he use Pepsi? The same outlet who said that he looks out only for quality may
say this time that the price should be compepitive, so this gives an clear indicating
the out let looks out for price while buying a product, similarly one may actually he
looks out for size of package while buying .any hidden decisions making process
will thus be revealed.

As a matter of fact, there were 131 outlets, who answered differently to the two
questions, but the good think was a majority 255 answered honestly as the answered
to both the questions were same. The answered to the fast question i.e. what makes
them buy a particular brand had 85.14 out of 295 responses as they looked out for
quality, whereas last question asked to weather they would use Pepsi saw just 68.75
responses saying that they looked out for quality whereas 77.75 responses said that
they would consider the price, in this case and increase of 31%. Other factors like
availability, size of packing, contract, and service had more or less the sane number
of responses in both questions with 39.78 persons looking for availability while
23.58 considering to availability as most important factor in the last question
respectively. Size of packing had 5.16 and 8.95 responses for first and last question
respectively. The discrepancies could be observed in the graph.

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 ACTUAL VS HIDDEN RESPONSES

90

80

70

60

50
NO OF
RESPONDENTS ACTUAL
40
HIDDEN
30

20

10

0
QUALITY PRICE AVABILITY SIZE CONTACT SERVICE

Switch over factor

FACTORS FOR BUYING

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

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

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Nevertheless these were couple of outlets that kept changing their brands, as they
believed it enabled them to cater as per taste of customer.

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

The most preferred brand

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

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RECOMMENDATION

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Recommendation:

Set aggressive targets –this is my recommendation. Be it market share, coverage

ratio, sales volume, sales figures, marketing strategies or anything for that matter
pertaining to the growth of sales of Pepsi products used by outlets. With a relatively
weaker position in the outlets markets, aggression in all approaches would make
things better. I don’t imply to say that Pepsi lacks aggression, but what I mean to say
is Pepsi needs to be more aggressive than what it currently is.

Recommendations on prime concerns for Pepsi to improvise sales:

Now, based on analysis of the customer, many factors have emerged as decision-
making factors for buying Pepsi. I would like to recommend a matrix for optimal
profits through selective approach of factors on the basis of which purchases are
done. The recommended matrix is as seen in the next page.
I have taken a three by three matrix. The reason for the same is that I wanted to have
a broader perspective. It was just impossible to mention that price factor should be
given high level of importance, which would otherwise mean if price were not given
high level of importance. It has to be given low level of importance. This means that
there can’t be a in between for important factors such as price. Thus an additional
column and a row were required in order to have andin between’ in the matrix. So
the three different levels would be ‘high’, ‘low’, & ‘medium’. With the three options
available a better understanding of the level of importance that is required is
possible.
The matrix is as shown in below page;

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The Matrix indicates the level of sales increase that can be generated through
the various levels of importants assigned to various factors.

Sales Increase High

Medium

Low

Low Medium High

Level of importance for each factor
Convection of quality amongest outlet.

Availability.

Appropriate combination of price & quality.

Distribution of sample.

Combination of dristribuation of samples & price.

Awareness of Pepsi’s Amonungest Outlets.

Quality of Packaging.

Appropriate price.
This matrix based on the customer analysis, indicates the immediate point of
concern for Pepsi required generating sales. The X-axis, which shows the level of

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importance a factor should be dealt with, has three factors in its high level
importance column. The three factors are

Conviction of quality

Availability

Awareness

It is very important for Pepsi to improve on availability. How ever ‘availability’

factor lies in the Medium sales growth row.

The top priority for Pepsi would be recommended to position itself as a high quality
product. This is again ironical, till now Pepsi has lost a sale volume due to perceived
inferior quality or lack of faith in Pepsi’s quality. Widely appreciated for its quality
at retail level Pepsi should work out a strategy to overcome the perception of few
outlets that have negative thought regarding Pepsi’s quality. It simply can’t be true
that Pepsi has inferior quality. However, even if there happens to be some problem
with quality of Pepsi it should be immediately rectified with. During My study I
didn’t come across any grievous complaints except for some problems being
expressed upon the melting of the products. The complaints are mentioned in the
individual outlet section. However, it is very very important for

Pepsi to work on its image as the quality product. Conviction in quality of Pepsi can
lead to an additional sale, which is very significant part of the market size. If
importance is not given to this factor this additional part can never be achieved.
Therefore, it deserves to be on top right of the matrix demanding for highest
attention.

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The factor the stood unique amongst all others was the combination of ‘price &
quality’. Capable of making Pepsi the market leader, I recommended that this factor
be approached selectively on the basis of the customer. By asking for ‘price &
quality’, the customer is actually asking for a competitive price

without any compromises on the quality. Anything that asks for reduction in price
should be approached cautiously. However, it can’t be given high level of
importance, because it would be unwise to compromise on price all the
time. The level of importance this factor require is somewhere between high and
medium, in other words appropriate importance given to ‘price-quality’ factor would
generate high sales growth.

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

The other significant factors are sample distribution, which needs to be treated
according to the merit of the customer. Sales volume depends on sample

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distribution, however it is not possible to distribute samples recklessly and thus this
factor doesn’t need not need high level of importance. However a

Selective approach of distribution of samples is capable of generating above average

growth.
The remaining three factors, which are;

Combination of appropriate ‘Price & Availability’.

Combination of sample distribution and price.

Size of package.

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

The bottom line would be to concentrate more on availability, awareness, and

position Pepsi as a high quality product. Factors such as price and distribution of
samples should be worked on the merit of the customer. Following this I have
charted customer ratings based on the potential of the customer, these ratings along
with decision-making factors of purchase will give a clear idea of how Pepsi should
proceed.

Recommendations on marketing strategies

Pepsi may not be successful at the bulk level. However its huge success at the retail
level should be used to promote Pepsi’s at institutional level. The name ‘Pepsi’ is

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sufficient enough to water the month of many a lovers of Pepsi. Thus the best
strategy for Pepsi to boost its sales at institutional level would be to play to its
strength –‘The Brand name’. Just by playing to its strength of brand name Pepsi
could turn the market topsy-turvy over the night. But the question would be how the
‘brand name’ could be played to its strength at the institutional level. My
recommendations on the same would be as follows;

Strategic displays:

During the course of my 8- week market study I would always keep on thinking for
a marketing strategy that can help Pepsi boost its image. Consequently a thought
came into my mind, which I would recommend Pepsi implement. My
recommendation is that every outlet that uses a Pepsi product should put on a small
display, which would proclaim ‘This outlet uses Pepsi’s’.
Pepsi being a successful brand name at the retail level would definitely reap gains
for the outlet in terms of sales of his products. If this helps in boosting the sales of
one of the outlets, which could be fund by analyzing the relative sales of pre-display
and post-display. Then this point could be promoted against non-users of Pepsi, who
may ultimately try Pepsi’s for the same reason.

Certificates of appreciation:
Another way of making a way into the outlets market is through Certificate of
Appreciation what Pepsi can do is offer each of the outlets-‘A Certificate of
Appreciation for the quality of cold drinks at the outlet’. Almost all the outlets of
South Bengal have their own outlets. Each of the outlets can be provided with a offer
to use Pepsi, at the end of which Pepsi will give them a certificate certifying them

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with certain grades on their quality. The criterion for this should be usage of Pepsi.
If the outlet uses any other product he will not be consider for the certificate.
This will solved two purposes;

1) Positioning of the Pepsi as High Quality Product amongst the

outlets, in other words reinforcement of Pepsi as ‘The quality
product’ in the outlets segment.

2) Increase in number of Pepsi users who will use Pepsi’s in an

effort to win a certificate from Pepsi.

One may argue that this will solve the purpose temporarily, as the outlet may stop
using Pepsi once he gets the certificate.the answer for the same is that the certificate
should have a time specification.

However all this should be projected as a customer friendly task, with a view to
increase the sales of Pepsi’s customer i.e. the outlets. At no point should the outlets
feel that this will benefit Pepsi only, rather a feel of mutual gain with a greater
benefit to the outlet should be created.

Awareness amongst Customer’s Customer:

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

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

Customer’s customer who almost has honoured Pepsi with generic name for Pepsi’s
would be the best brand ambassador. The customer’s customer i.e. the end customer
should be made aware of Pepsi usage. A strategy for the same would be to have
displays at outlets. The display should have mouthwatering photographs of Pepsi,
which would help convincing the outlet to put up such Display cards outside their
Outlets.

I would also recommend Pepsi a vision. Just as Pepsi became a generic name for
Pepsi’s, efforts should be to try. An aggressive strategy can definitely help fulfilling
the vision. Only the customer’s customere will help Pepsi realize this vision.

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

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

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Strategic Business Relations with the Outlets are:

Making ‘brand image’ the competitive advantage through the end consumer doesn’t

imply that the outlets should be completely sidelined. Strategic business relation

with outlets is as imperative as other factors.

Strategic business on relations with the Outlets:

Making ‘brabd image’the competitive advantage through the end consumer doesn’t
emply that the outlet should be completely sidelined. Strategic business relations
with outlet are as imperative as other factors.

In fact Pepsi are an extension of Pepsi. As pepsi has a huge presence at retail level,
outlets can be offered retail business opportunities with certain incentives like
Pepsi’s cases at discount rates. This would be of twin benefit as pepsi’s can have
additional sales in retail products, along with additional institutional customer. The
schemes and incentives provided to retailers can be provided to outlet along with a
condition of using Pepsi’s products as ingredients in their products.
A strong integration of the whole chain, right from pepsi to the outlet to the end

consumer is what needed. This can achieve only through the outlet. Frist of the

entire outlet needs to be convinced, so as to put up the display of pepsi’s presence in

this product. It would be obviously not possible to get each and every outlet into

Pepsi’s chain however the maximum should be tried to, especially the ones with

larger potential. Keeping in mind the same I decided to give ratings to the oulet

based on their potential and their chances of getting into pepsi’s chain.

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 BABLIOOGRAPHY

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

MAGZINES AND NEWS PAPER

THE ECONOMICS TIMES
THE TIMES OF INDIA
BUSINESS TODAY
BUSINESS WORLD

WEBSITES
www.pepsi.co.in
www.pepsiworld.com
www.google.com

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 QUESTIONNAIRE

Date: DATE2 0 1 6

`
RESPONDENT NAME :

OUTLET NAME :

UNDER THE DISTRIBUTOR OF :

AGE :

ADDRESS :

PH-NO. :

Q1. What are the different things you prefer?

- -

If the answer is Ice-Cream then please go to ‘A’ part,

If the answer is Lassi then please go to ‘B’ part,

If the answer is Cold-Drinks then please go to ‘C’ part,

85
 Part-‘A’
Q1) According to you what is the growth rate of Ice cream?

Part-‘B’
Q1) According to you what is the growth rate of Lassi?

Q2) Are you planning to introduce Lassi?

Part-‘C’
Q1) Do you store PEPSI?

If NO then go to part ‘I’

If YES then please continue;

Q1. What other brand/s do you use?

Q2. Which brand you preferred most?

Sl. Avg. Monthly

Brand Preferred Price
No. Consumption
1. Pepsi
2. 7’ Up
3. Mountain Dew
4. Miranda
5. Slice
6. Aquafina
7. Evervess Soda
8. Coca-Cola

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 9. Thumps Up
10. Limca
11. Fanta
12. Sprite
13. Mazza
14. Kinley

Q3). Has any other company approached you to offer Cold drinks used in
outlet?

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

Q5) Are you switching your brand?

If YES then please continue;

If NO then go to Q 6.

QA) How frequently you are doing so?

Q6) Rank of the following in increasing order of demand; (Highest demand

grade of ‘A’& lowest demand grade of ‘B’)

Miranda

Q7) According to you what the growth rate is of Pepsi’s product?

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Q8) why are you using the particular brand is it;

Part ‘I’ for Non Users:

Q9) Have you ever-used Pepsi’s products?

Q10) Are you aware of Pepsi’s presence in the market?

Q11) Currently, why are you not using Pepsi’s products or why have you
stopped using Pepsi?

Q12. If I ask you to try Pepsi’s products will you try it?

Conditions any, if yes specify.

Q13) what is your perception about Pepsi?

GENERAI QUESTIONNAIRE:

Q14. What are your expansion plan?

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THANK
YOU

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