Analysis Of Market Share Gaps Of Pepsico

ANALYSIS OF MARKET SHARE GAPS A STUDY CONDUCTED FOR

PEPSICO A PROJECT REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF REQUIREMENTS OF THE TWO YEARS FULL TIME POST GRADUATION DIPLOMA IN MANAGEMENT SUBMITTED BY:

SAROJ KUMAR SINGH

2K81/IB/23 UNDER THE GUIDENCE OF

Prof. MURLI MOHAN

ASIA-PACIFIC INSTITUTE OF MANAGEMENT

3&4 INSTITUTIONAL AREA, JASOLA VIHAR NEW DELHI

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DECLARATION

I hereby declare that the project report entitled “ANALYSIS OF MARKET SHARE GAPS OF PEPSICO” has been prepared by me as part of partially fulfillment of my diploma degree.

The project report is my bonafide report. The results embodied in this project report have not been submitted partially to any other university or college for the award of any diploma degree.

SAROJ KUMAR SINGH 2K81/IB/23

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ACKNOWLEDGEMENT I owe deep sense of gratitude to my beloved institution, Asia pacific institute of management, for molding me into a real management student.

I convey my wholehearted thanks to Mr. Arvind Rathore (Franchise General Manager, PEPSICO) for enlightened guidance and inspiration during my project work.

It is with profound sense of gratitude that I wish to reveal my overwhelming thanks to Prof. MURLI MOHAN my project guide who has rendered his valuable counsel and guidance in completing this project. I would also like to thank all my faculty members for their valuable suggestions.

Lastly, I put forth my due thanks to my parents, friends and all well wishers for their full fledged and tremendous support in completing this project work successfully and to all the respondents who have cooperated for the collection of data.

SAROJ KUMAR SINGH 2K81/IB/23

CONTENTS

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PARTICULARS PAGE NO. 1. Introduction to Organisation.………….……………………01-11 2. Review of literature..…………………... ...………………….12-15 3. Research Design………………………………………………16-20 4. Introduction to Data Analysis………………………………..21-62 Swot Analysis…………………………………………..63-67 5. Findings and Recommendation……………….……………..68-72 6. Conclusion………………………………………….. ………...73-74 7. Executive Summary……………….…………………………..75-78 8. Bibliography…………………………………………………... 79.

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CHAPTER:-01 INTRODUCTION TO ORGANISATION

5

Pepsi is a soft drink produced and manufactured by PepsiCo. It is sold in many places such as retail stores, restaurants, schools, cinemas and from vending machines. The drink was first made in the 1880s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on June 16, 1903. There have been many Pepsi variants produced over the years since 1898. In October 2008, Pepsi announced they would be redesigning its logo and re-branding many of its products by early 2009. Countries such as Australia and Indontinue to use the old design on all packaging. PepsiCo entered India in 1989 and has grown to become one of the country’s leading 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.$1 billion since the company was established in the country. PepsiCo provides direct and indirect employment to 150,000 people including suppliers and distributors. PepsiCo nourishes consumers with a range of products from treats to healthy eats, that deliver joy as well as nutrition and always, good taste. PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew,

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in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana100% fruit juices, and juice based drinks – Tropicana Nectars, Tropicana Twister and Slice. Local brands – Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands.

PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay products are free of trans-fat and MSG. It manufactures Lay’s Potato Chips, Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands. The company’s high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers. Frito Lay’s core products, Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary nutritional labeling on their packets. The group has built an expansive beverage and foods business. To support its operations, PepsiCo has 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. In addition to this, PepsiCo’s Frito Lay foods division has 3 state-ofthe-art plants. PepsiCo’s business is based on its sustainability vision of making tomorrow better than today. PepsiCo’s commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers.

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MISSION STATEMENT: "To be the world's premier consumer products company focused on convenience 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."

VISION: "PepsiCo's responsibility is to continually improve all aspects of the world in which we operate – environment, social, economic – creating a better tomorrow than today." Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company

THE ORGANISATIONAL VALUE OF PEPSI:

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PepsiCo values reflect its aspirations - the kind of company they want Pepsico to be. Pepsi express their values in the form of a commitment. Pepsi’s commitment is :

Sustained Growth is fundamental to motivating and measuring our success. Our quest for sustained growth stimulates innovation, places a value on results, and helps us understand whether today's actions will contribute to our future. It is about growth of people and company performance. It prioritizes making a difference and getting things done.

Empowered People means we have the freedom to act and think in ways that we feel will get the job done, while being consistent with the processes that ensure proper governance and being mindful of the rest of the company's needs.

Responsibility and Trust form the foundation for healthy growth. It's about earning the confidence that other people place in us as individuals and as a company. Our responsibility means we take personal and corporate ownership for all we do, to be good stewards of the resources entrusted to us. We build trust between ourselves and others by walking the talk and being committed to succeeding together.

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PRODUCTS

Pepsi

Mountain Dew

•

Yedigun

•

Shani

•

Pepsi

•

Mountain Dew

•

Fiesta

•

Caffeine Free Pepsi

•

Diet Mountain Dew

•

D&G (License)

•

Diet Pepsi

•

Caffeine Free

•

Mandarin (License)

•

Caffeine Free Diet

Mountain Dew

•

Radical Fruit

Pepsi

•

Mountain Dew Code

•

Diet Pepsi Max

Red

•

Jazz Diet Pepsi

•

•

Diet Pepsi Lime

Code Red

•

Diet Pepsi Vanilla

•

•

Pepsi Wild Cherry

LiveWire

•

Diet Pepsi Wild

•

Cherry •

Diet Mountain Dew

Mountain Dew

Mountain Dew

Lipton (Partnership) •

Lipton Brisk

•

Lipton Iced Tea Lipton Pure Leaf

Voltage

Pepsi ONE

10

Sierra Mist

AMP Energy

•

Sierra Mist

•

AMP Energy

•

Diet Sierra Mist

•

AMP Energy Sugar

•

Sierra Mist

Free

Cranberry Splash •

Sierra Mist Free

Cranberry Splash

Tropicana •

Tropicana lemonade

and punches •

Tropicana Light

lemonade and punches •

Tropicana Twister

sodas

Ocean Spray (License) •

Ocean Spray juices

•

AMP Energy

Overdrive •

AMP Energy Relaunch

•

AMP Energy

SoBe •

SoBe juice drinks,

dairy, and teas •

SoBe Lean diet juice

drinks, dairy, and teas •

SoBe Life Water

•

SoBe Adrenaline Rush

Aquafina •

Aquafina

•

Aquafina FlavorSplash

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•

Ocean Spray juice

•

Aquafina Sparkling

drinks

Starbucks (Partnership) More • •

Ethos Water

(License)

Frappuccino ready-to-

drink coffee •

Starbucks Doubleshot Starbucks Doubleshot

•

Manzanita Sol

•

•

Slice

Energy

•

FruitWorks juice

drinks •

•

Starbucks Iced Coffee

Mirinda

Directors Shona Brown Ian M. Cook Dina Dublon Victor J. Dzau Ray L. Hunt Alberto Ilarquen Arthur C. Martinez 12

Indra K Nooyi Sharon Percy Rockefeller James J Schiro Lloyed Trotter Daniel Vasella

PARTNERS PepsiCo partners with The Energy and Resources Institute (TERI) to implement watershed management projects in Neelamangala and Uttaranchal PepsiCo partners with the International Labor Organisation on creating and implementing its HIV/AIDS Workplace Policy.

Partnership with Alternative Development Initiatives (ADI) on Watershed Management Projects in Kerala, Punjab and Maharashtra PepsiCo Partnership with Exnora in its award winning Waste To Wealth initiative PepsiCo partners with CSMCRI for sustainable livelihood seaweed farming project in coastal Tamil Nadu Partnership with CAP Foundation to train and provide alternate livelihood 13

options for Tsunami affected communities in AP and Tamil Nadu. PepsiCo partners with Project Healing Touch to provide ex-servicemen with sustainable livelihoods. PepsiCo partners with Swashrit Society to promote active and healthy lifestyles among kids through the Get Active programme

FRANCHISE OF PEPSI IN DELHI:

Jai Drinks Pvt Ltd E-32 Phase Ii, 110020, U.T p: 26386472

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It is mainly responsible for providing the service in the South and south-West part of delhi.

PEARL DRINKS limited K G MARG CONNAUGHT PLACE, NEW DELHI 110001, NEW DELHI p: 23716782 The Pearl Drinks Limited provides services to the areas, which belongs to North and North- west delhi.

Trans Yamuna

The Trans Yamuna covers mainly covers the Eastern and North-Eastern part of Delhi, in these areas maximum number of distributor operations takes place.

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CHAPTER 02 LITERATURE REVIEW

MARKETING: Marketing is an integrated communications-based process through which individuals and communities discover that existing and newly-identified needs and wants may be satisfied by the products and services of others.

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Marketing is defined by the American Marketing Association as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.The term developed from the original meaning which referred literally to going to market, as in shopping, or going to a market to buy or sell goods or services. The Chartered Institute of Marketing, which is the world's largest marketing body, defines marketing as "The management process responsible for identifying, anticipating and satisfying customer requirements profitably. Marketing practice tended to be seen as a creative industry in the past, which included advertising, distribution and selling. However, because marketing makes extensive use of social sciences, psychology, sociology, mathematics, economics, anthropology and neuroscience, the profession is now widely recognised a science, allowing numerous universities to offer Master-of-Science (MSc) programmes. The overall process starts with marketing research and goes through market segmentation, business planning and execution, ending with pre and post-sales promotional activities. It is also related to many of the creative arts. The marketing literature is also infamous for re-inventing itself and its vocabulary according to the times and the culture.

MARKET SHARE: Market share, in strategic management and marketing is, according to Carlton O'Neal, the percentage or proportion of the total available market or market segment that is being serviced by a company. It can be expressed as a company's sales revenue (from that

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market) divided by the total sales revenue available in that market. It can also be expressed as a company's unit sales volume (in a market) divided by the total volume of units sold in that market. It is generally necessary to commission market research (generally desk/secondary research, although sometimes primary research) to estimate the total market size and a company's market share.

MARKET SHARE ANALYSIS: Market share analysis is an important part of market analysis and indicates how well a firm is doing in the marketplace compared to its competitors. It is a part of marketing research process. Stages of marketing research process Problem Definition The first step in any marketing research project is to define the problem. In defining the problem, the researcher should take into account the purpose of the study, the relevant background information, what information is needed, and how it will be used in decision making. Problem definition involves discussion with the decision makers, interviews with industry experts, analysis of secondary data, and, perhaps, some qualitative research, such

as focus groups. Once the problem has been precisely defined, the research can be designed and conducted properly. Development of an Approach to the Problem

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Development of an approach to the problem includes formulating an objective or theoretical framework, analytical models, research questions, hypotheses, and identifying characteristics or factors that can influence the research design. This process is guided by discussions with management and industry experts, case studies and simulations, analysis of secondary data, qualitative research and pragmatic considerations. Data Preparation and Analysis Data preparation includes the editing, coding, transcription, and verification of data. Each questionnaire or observation form is inspected, or edited, and, if necessary, corrected. Number or letter codes are assigned to represent each response to each question in the questionnaire. The data from the questionnaires are transcribed or key-punched on to magnetic tape, or disks or input directly into the computer. Verification ensures that the data from the original questionnaires have been accurately transcribed, while data analysis, guided by the plan of data analysis, gives meaning to the data that have been collected. Univariate techniques are used for analyzing data when there is a single measurement of each element or unit in the sample, or, if there are several measurements of each element, each RCH variable is analyzed in isolation. On the other hand, multivariate techniques are used for analyzing data when there are two or more measurements on each element and the variables are analyzed simultaneously

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CHAPTER 03 RESEARCH DESIGN

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INTRODUCTION TO THE STUDY:

This project has been done on Market Share Analysis of PEPSICO. In this project the system and procedure of market share analysis has been presented in detail. Title of the study: A project is complete study on market share analysis with reference to “PEPSICO”.

STATEMENT OF THE PROBLEM: In this period of globalization, where the whole world has become like a small market, it is essential that organizations effort continuously to invest on time, money and skills of their personnel to be able to meet customer’s demands in terms of qualitatively products. crash by any organization to implement this will only bring death of such organization, this has been witnessed in the recent time. Surely, amongst others the prime cause may to have incomplete personnel incapable of giving qualitative output. Therefore finding out the position of product to get the knowledge of current scenario and react to the findings accordingly is the only way to remain in business.

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OBJECTIVES OF STUDY:

The main purposes of study are to:

1)

To gain complete information about the product from market.

2) To analyze the market share gaps of product. 3) To know the customer feedback about product. 4) To summarize the findings and offer suggestions.

TOOLS AND TECHNIQUES For this report two kinds of data have been used: Primary data, Secondary data.

Primary data: It was collected through questionnaires further this data are processed and tabulated using graphs. The tables were analyzed and the findings have been drawn accordingly.

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Secondary data: The secondary data refers to information provided to the trainees about outlets, which worked as a guideline for survey. The secondary data collected for this market research from company profile and internet.

SAMPLE TECHNIQUE Sample size: A sample of 900 outlets has been taken who participated in the research procedure.

Sample procedure: The samples were taken on the basis of guidelines provided by PEPSICO.

Search instruments: A questionnaire was used for the survey. The questionnaire was only close ended in order to extract only the required data from the analysis.

Plan of analysis: For the analysis of data in this study the tools used are percentage, average and graphs. The feedback of customers is also used.

LIMITATION OF THE STUDY: The limitation of this report is as follows:-

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1.

As the project is prepared for academic purpose it suffers for the limitation of the time and due to which an analytical study into all the strategies adopted by the organization was not possible.

2. There was no frequent availability of customers as they were busy within day to

day work.

CHAPTER SCHEME

Chapter 1. Introduction to marketing. Introduction to Market Share Analysis.

Chapter 2. Research methodology deals with the various sub chapters like introduction to the study statement of problem objectives of the study methodology, sampling technique research instrument plan of analysis and limitation of the study.

Chapter 3. Company profile deals with the origin growth

Chapter 4. Deals with the details of the data analysis from the questionnaire filled by the respondents.

Chapter 5. This chapter includes the survey of the findings. 24

Suggestion and conclusion.

CHAPTER- 4 INTRODUCTION TO DATA ANALYSIS 25

This chapter deals with analysis and interpretation of all the data collected for PEPSICO, by means of questionnaire for this research.

All the data collected is primary data, which was collected from hundreds of respondents by different customers in three different zones of pepsico in Delhi. named as JAI DRINKS PRIVATE LIMITED, PEARL DRINKS LIMITED AND TRANS YAMUNA.

All the data collected are tabulated for better understanding and also interpretation of each table has given below.

Interpretation and inferences drawn for every question is summarize and also is presented with help of bar diagram for understanding collected data in glance.

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Areas covered in Franchise zones Jai Drinks Pvt Ltd -JAMIA NAGAR -CHIRAG DELHI -BHARAT NAGAR -ALAKNANDA -GAUTAM NAGAR

Peral drinks limited -AZADPUR -ASHOK VIHAR PHASE 1 -ASHOK VIHAR PHASE 2 -ASHOK VIHAR PHASE 3 27

-ASHOK VIHAR PHASE 4 -WAZIRPUR

Trans Yamuna -JAFFRABAAD -MAUJPUR

ZONE- JDPL AREA- JAMIA NAGAR, CHIRAG DELHI, GAUTAM NAGAR, ALAKNANDA

1] TABLE SHOWING DISTRIBUTION OF OULETS ACCORDING TO MARKET SHARE OF PEPSI IN PARTICULAR OUTLET.

MARKET SHARE 0% 1-30% 30-50% MORE THAN 50%

NUMBER OF OUTLETS 8 12 61 99

% IN MARKET 4 7 34 55

28

4%

7%

55%

100 90 80 70 60 50 40 30 20 10 0

0% 1-30% 30-50% MORE THAN 50%

34%

99

61

8 0%

12 1-30%

30-50%

MORE THAN50%

29

INTERPRETATION: In the above table 8 outlets fall under 0% category, 12 in 1-30%, 61 in 30-50% and the highest number 99 lies in more than 50% share outlets.

INFRENCES: From the above information majority 55% of outlets falls in more than 50% share outlets, where if we take 1-50% combine it also covers 73 outlets, there are 4% oulets are there which is having monopoly of coca-cola.

2] TABLE SHOWING OVERALL MARKET SHARE OF PEPSI AND COCACOLA

PRODUCT

MARKET SHARE

PEPSI

53.6

COCA-COLA

46.4

30

46.4

PEPSI 53.6

COCA-COLA

INTERPRETATION: From the above Information it can be understood that 53.6% of total market share of cold drinks market belongs to Pepsi and rest lies with coca-cola.

INFRENCES: So, it is very clear that market share of Pepsi is quite high in comparison of coca-cola and the coca-cola is also providing healthy competition with almost 46% of market share of cold drinks market.

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3] TABLE SHOWING NUMBER OF COOLERS USED IN THE MARKET. PRODUCT PEPSI COOLERS

NUMBER 73

COCA-COLA COOLERS

41

OWN COOLERS

86

37% 42%

PEPSI COOLERS COCA-COLA COOLERS OWN COOLERS

21%

32

90 80

86 73

70 60 50 41

40 30 20 10 0 PEPSI COOLERS

COCA-COLA COOLERS

OWNCOOLERS

INTERPRETATION: From the above Information it can be understood that 37% of total market uses Pepsi coolers, 21% uses coca-cola coolers and rest uses own coolers.

INFRENCES: Since 42% of cooler market is still vacant and waiting for Pepsi or Cocacola to grab it as soon as possible, this 42% creates a very big opportunity to increase the market share by repenetrating the market with coolers.

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4] TABLE SHOWING THE CHANNEL TYPE SHARE IN THE MARKET.

CHANNEL TYPE GROCERY

NUMBER 120

CONVENIENCE

18

EATRY

40

22% GROCERY CONVENIENCE EATRY

10% 68%

34

120

120

100 80 60 40

40 18

20 0 GROCERY

CONVENIENCE

EATRY

INTERPRETATION: In the above information its visible that there are 120 outlets work as grocery, 18 outlets work as convenience and 40 eatry.

INFRENCES: The majority is grocery with 68% share of total market channel type and the rest is enjoyed by convenience and eatry, which shows the market, is high populated due to residential area.

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5] TABLE SHOWING MONTHLY AVERAGE SALES OF PEPSI AND COCACOLA IN CARETS IN MARKET.

MONTHLY AVG. SALE 0

PEPSI 6

COCA-COLA 12

1-30

87

85

30-70

40

42

70-100

15

15

MORE THAN 100

32

26

90

87 85

80 70 60 50 40

40 42 32

30 20 10 0

6

15 15

12

0

26

PEPSI COCA-COLA

1--30

30-70

70-100

MORE THAN 100

INTERPRETATION: From the above Information it can be understood that PEPSI has more monthly average sale. INFRENCES: There are less outlets in compare of coca-cola which has 0 monthly average sales, Pepsi has more shops which have monthly turnover of 1-30 carats of Pepsi, but in the category 30-70carets of monthly average sale Pepsi is lagging behind in comparison of coke. In more than 70 category Pepsi is still dominating.

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6] TABLE SHOWING MODE OF SERVICE OF PEPSI AND COCA COLA MODE OF SERVICE DIRECT

NO. OF PEPSI OUTLET 56

NO. OF COCA-COLA OUTLET 75

DISTRBUTOR

80

58

WHOLESALER

43

47

PRESELL

01

00

80

75

80

70 60

56

58

50

43

40

47 PEPSI COCA-COLA

30 20 10

1

0 DIRECT

DISTRBUTOR

WHOLESALER

0

PRESELL

37

1% 24%

31% DIRECT DISTRBUTOR WHOLESALER PRESELL

44%

PIE CHART SHOWING PERCENTAGE OF MODE OF SERVICE OF PEPSI 0% 26% 42%

DIRECT DISTRBUTOR WHOLESALER PRESELL

32%

PIE CHART SHOWING PERCENTAGE OF –COLA MODE OF SERVICE OF COCA-COLA.

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INTERPRETATION: From the above Information the mode of service of Pepsi and coca-cola is clear. The Pepsi covers it maximum operation through distributor, where coca-cola covers through direct operation through its tata 407.

INFRENCES: The 44% outlets are covered through distributors, direct Pepsi covers 31% and 24% through wholesaler and just 1% with the help of presell service. Where Coca-cola covers 42% directly, 32% through distributor, and rest through its various wholesalers. So Coca-cola believes more on direct service through company to customers. 7] TABLE SHOWING SERVICE FREQUENCY OF PEPSI AND COCA-COLA: SERVICE FREQUENCY

NO. OF OUTLETS (PEPSI)

DAILY MORE THAN 3 TIMES LESS THAN 3 TIMES

136 3 41

160 140 120 100 80 60 40 20 0

136

NO. OF OUTLETS (COCA-COLA) 148 13 19

148

PEPSI COCA-COLA

41 3 DAILY

13

19

MORE THAN 3 LESS THAN 3 TIMES TIMES

39

INTERPRETATION: The above table shows the service frequency of Pepsi and Cocacola by various means of transportation.

INFRENCES: In both the cases maximum outlets gets daily service but coca-cola covers more number of outlets, it also provides more than 3 times service in a week in more number of outlets in comparison of Pepsi, so it can be easily said that coca-cola has a better service frequency than Pepsi.

8] TABLE SHOWING THE VARIOUS FEEDBACK OF CUSTOMERS REGARDING THE SEVICES PROVIDED BY PEPSI: FEEDBACK SATISFIED SERVICE ISSUE SCHEME ISSUE

NO. OF OULET 83 27 70

39% 46%

SATISFIED SERVICE ISSUE SCHEMEISSUE

15%

40

90 80

83 70

70 60 50 40

PEPSI

27

30 20 10 0 SATISFIED

SERVICE ISSUE

SCHEME ISSUE

INTERPRETATION: The above table shows the satisfaction level of customer of Pepsi, The customer feedback is categorized in three different area, the first area directly belongs to the group of satisfied customer, in second category customer with service issue falls and in the last category customers with scheme issue comes.

INFRENCES: According to the pie chart 46% customers are satisfied and says that they are pleased with the service provided by the Pepsi, 15% customers are having service issue and rest all falls in scheme issue. It directly reflects the better service and better market share of Pepsi

ZONE- PDL 41

AREA- AZADPUR, ASHOK VIHAR AND WAJIRPUR

1] TABLE SHOWING DISTRIBUTION OF OULETS ACCORDING TO MARKET SHARE OF PEPSI IN PARTICULAR OUTLET.

MARKET SHARE 0% 1-30% 30-50% MORE THAN 50%

NUMBER OF OUTLETS 132 81 128 159

% IN MARKET 26 16 26 32

26%

32%

0% 1-30% 30-50% MORE THAN 50% 16% 26%

42

159

160 140

132

128

120 100

81

80 60 40 20 0

0%

1-30%

30-50%

MORE THAN 50%

INTERPRETATION: In the above table 132 outlets fall under 0% category, 81 in 130%, 128 in 30-50% and the highest number 159 lies in more than 50% share outlets.

INFRENCES: From the above information majority 32% of outlets falls in more than 50% share outlets, where if we take 1-50% combine it also covers 42% outlets, there are 26% oulets are there which is having monopoly of coca-cola.

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2] TABLE SHOWING OVERALL MARKET SHARE OF PEPSI AND COCACOLA

PRODUCT

MARKET SHARE

PEPSI

36.2

COCA-COLA

63.8

36.2 PEPSI COCA-COLA 63.8

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INTERPRETATION: From the above Information it can be understood that 36.2% of total market share of cold drinks market in belongs to Pepsi and rest lies with coca-cola.

INFRENCES: So, it is very clear that market share of Coca-cola is quite high in comparison of Pepsi and the Pepsi is also providing healthy competition with almost 36% of market share of cold drinks market.

3] TABLE SHOWING NUMBER OF COOLERS USED IN THE MARKET. PRODUCT PEPSI COOLERS

NUMBER 87

COCA-COLA COOLERS

122

OWN COOLERS

347

16%

22% 62%

PEPSI COOLERS COCA-COLA COOLERS OWN COOLERS

45

347

350 300 250 200 150 100

122 87

50 0 PEPSI COOLERS

COCA-COLA COOLERS

OWNCOOLERS

INTERPRETATION: From the above Information it can be understood that only 16% of total market uses Pepsi coolers, 22% uses coca-cola coolers and rest uses own coolers.

INFRENCES: Since 62% of cooler market is still vacant and waiting for Pepsi or Cocacola to grab it as soon as possible, this 62% creates a very big opportunity to increase the market share by repenetrating the market with coolers.

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4] TABLE SHOWING THE CHANNEL TYPE SHARE IN THE MARKET.

CHANNEL TYPE GROCERY

NUMBER 301

CONVENIENCE

147

EATRY

52

10%

29% 61%

GROCERY CONVENIENCE EATRY

47

350 300

301

250 200 147

150 100

52

50 0 GROCERY

CONVENIENCE

EATRY

INTERPRETATION: In the above information its visible that there are 301 outlets work as grocery, 147 outlets work as convenience and 52 eatry.

INFRENCES: The majority is grocery with 61% share of total market channel type and the rest is enjoyed by convenience and eatry, which shows the market, is high populated due to residential area.

48

5] TABLE SHOWING MONTHLY AVERAGE SALES OF PEPSI AND COCACOLA IN CARETS IN MARKET.

MONTHLY AVG. SALE 0

PEPSI 122

COCA-COLA 22

1-30

253

251

30-70

92

179

70-100

14

32

MORE THAN 100

19

16

300 253251

250 200 150

179

50 0

PEPSI COCA-COLA

122

100

92 22 0

14 1--30

30-70

32

70-100

19 16 MORE THAN 100

INTERPRETATION: From the above Information it can be understood that PEPSI has less monthly average sale. INFRENCES: There are more outlets in compare of coca-cola which has 0 monthly average sales, Pepsi has more shops which have monthly turnover of 1-30 carats of Pepsi, but in the category 30-70carets of monthly average sale Pepsi is lagging behind in comparison of coke. In more than 70 category Pepsi is again lagging behind.

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6] TABLE SHOWING MODE OF SERVICE OF PEPSI AND COCA COLA MODE OF SERVICE DIRECT

NO. OF PEPSI OUTLET 120

NO. OF COCA-COLA OUTLET 181

DISTRBUTOR

188

218

WHOLESALER

87

82

PRESELL

01

00

250 218 200

181

188

150 PEPSI COCA-COLA

120 100

8782

50 1 0

0 DIRECT

WHOLESALER

50

0% 22% 30% DIRECT DISTRBUTOR WHOLESALER PRESELL

48%

PIE CHART SHOWING PERCENTAGE OF MODE OF SERVICE OF PEPSI

17%

0% 38%

DIRECT DISTRBUTOR WHOLESALER PRESELL

45%

PIE CHART SHOWING PERCENTAGE OF –COLA MODE OF SERVICE OF COCA-COLA.

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INTERPRETATION: From the above Information the mode of service of Pepsi and coca-cola is clear. The Pepsi covers it maximum operation through distributor, where coca-cola covers through direct operation through its tata 407.

INFRENCES: The 48% outlets are covered through distributors, Pepsi covers direct 30% and 22% through wholesaler and just 0% with the help of presell service. Where Coca-cola covers 38% directly, 45% through distributor, and rest through its various wholesalers.

7] TABLE SHOWING SERVICE FREQUENCY OF PEPSI AND COCA-COLA: SERVICE FREQUENCY

NO. OF OUTLETS (PEPSI)

DAILY MORE THAN 3 TIMES LESS THAN 3 TIMES

262 05 233

400 350 300 250 200 150 100 50 0

NO. OF OUTLETS (COCA-COLA) 396 55 49

396

262

233 PEPSI COCA-COLA 55

49

5 DAILY

MORE THAN 3 LESSTHAN 3 TIMES TIMES

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INTERPRETATION: The above table shows the service frequency of Pepsi and Cocacola by various means of transportation.

INFRENCES: In both the cases maximum outlets gets daily service but coca-cola covers more number of outlets, it also provides more than 3 times service in a week in more number of outlets in comparison of Pepsi, so it can be easily said that coca-cola has a better service frequency than Pepsi.

8] TABLE SHOWING THE VARIOUS FEEDBACK OF CUSTOMERS REGARDING THE SEVICES PROVIDED BY PEPSI: FEEDBACK SATISFIED SERVICE ISSUE SCHEME ISSUE

NO. OF OULET 216 276 08

2%

43%

SATISFIED SERVICE ISSUE

55%

SCHEME ISSUE

53

300 250

276 216

200 150 PEPSI

100 50 8

0 SATISFIED

SERVICE ISSUE

SCHEME ISSUE

INTERPRETATION: The above table shows the satisfaction level of customer of Pepsi, The customer feedback is categorized in three different area, the first area directly belongs to the group of satisfied customer, in second category customer with service issue falls and in the last category customers with scheme issue comes.

INFRENCES: According to the pie chart 43% customers are satisfied and says that they are pleased with the service provided by the Pepsi, 55% customers are having service issue and rest all falls in scheme issue. It directly reflects the poor service and poor market share of Pepsi.

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ZONE- TY AREA- MAUJPUR AND JAFFRABAAD

1] TABLE SHOWING DISTRIBUTION OF OULETS ACCORDING TO MARKET SHARE OF PEPSI IN PARTICULAR OUTLET.

MARKET SHARE 0% 1-30% 30-50% MORE THAN 50%

NUMBER OF OUTLETS 36 26 86 67

% IN MARKET 17 12 40 31

17% 31% 12%

0% 1-30% 30-50% MORE THAN 50%

40%

55

90 80 70 60 50 40 30 20 10 0

86 67

36 26

0%

1-30%

30-50%

MORE THAN 50%

INTERPRETATION: In the above table 36 outlets fall under 0% category, 26 in 130%, 86 in 30-50% and the highest number 67 lies in more than 50% share outlets.

INFRENCES: From the above information 31% of outlets falls in more than 50% share outlets, where if we take 1-50% combine it also covers 52% outlets, there are 17% oulets are there which is having monopoly of coca-cola.

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2] TABLE SHOWING OVERALL MARKET SHARE OF PEPSI AND COCACOLA

PRODUCT

MARKET SHARE

PEPSI

41.6

COCA-COLA

58.4

41.6 58.4

PEPSI COCA-COLA

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INTERPRETATION: From the above Information it can be understood that 41.6% of total market share of cold drinks market in belongs to Pepsi and rest lies with coca-cola.

INFRENCES: So, it is very clear that market share of Coca-cola is quite high in comparison of Pepsi and the Pepsi is also providing healthy competition with almost 41.6% of market share of cold drinks market.

3] TABLE SHOWING NUMBER OF COOLERS USED IN THE MARKET. PRODUCT PEPSI COOLERS

NUMBER 53

COCA-COLA COOLERS

41

OWN COOLERS

135

23%

59%

18%

PEPSI COOLERS COCA-COLA COOLERS OWN COOLERS

58

140

135

120 100 80 60

53 41

40 20 0 PEPSI COOLERS

COCA-COLA COOLERS

OWNCOOLERS

INTERPRETATION: From the above Information it can be understood that only 23% of total market uses Pepsi coolers, 18% uses coca-cola coolers and rest uses own coolers.

INFRENCES: Since 59% of cooler market is still vacant and waiting for Pepsi or Cocacola to grab it as soon as possible, this 59% creates a very big opportunity to increase the market share by repenetrating the market with coolers.

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4] TABLE SHOWING THE CHANNEL TYPE SHARE IN THE MARKET.

CHANNEL TYPE GROCERY

NUMBER 111

CONVENIENCE

82

EATRY

22

10%

52% 38%

GROCERY CONVENIENCE EATRY

60

120

111

100 82

80 60 40

22

20 0 GROCERY

CONVENIENCE

EATRY

INTERPRETATION: In the above information its visible that there are 11 outlets work as grocery, 82 outlets work as convenience and 22 eatry.

INFRENCES: The majority is grocery with 52% share of total market channel type and the rest is enjoyed by convenience and eatry, which shows the market, is high populated due to residential area.

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5] TABLE SHOWING MONTHLY AVERAGE SALES OF PEPSI AND COCACOLA IN CARETS IN MARKET.

MONTHLY AVG. SALE 0

PEPSI 30

COCA-COLA 07

1-30

69

45

30-70

87

124

70-100

26

33

MORE THAN 100

03

06

140 124

120 100

87

80

69

60 40

30

20 0

PEPSI COCA-COLA

45 26

33

7 0

3 6 1--30

30-70

70-100

MORE THAN 100

INTERPRETATION: From the above Information it can be understood that PEPSI has less monthly average sale. INFRENCES: There are more outlets in compare of coca-cola which has 0 monthly average sales, Pepsi has more shops which have monthly turnover of 1-30 carats of Pepsi, but in the category 30-70carets of monthly average sale Pepsi is lagging behind in comparison of coke. In more than 70 category Pepsi is again lagging behind.

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6] TABLE SHOWING MODE OF SERVICE OF PEPSI AND COCA COLA MODE OF SERVICE DIRECT

NO. OF PEPSI OUTLET 15

NO. OF COCA-COLA OUTLET 5

DISTRBUTOR

134

5

WHOLESALER

56

205

PRESELL

0

0

250 205

200 150

134

PEPSI COCA-COLA

100 56

50 15 0

5

DIRECT

5

0 0 WHOLESALER

63

0% 7% 27% DIRECT DISTRBUTOR WHOLESALER PRESELL 66%

PIE CHART SHOWING PERCENTAGE OF MODE OF SERVICE OF PEPSI 0% 2%2% DIRECT DISTRBUTOR WHOLESALER PRESELL 96%

PIE CHART SHOWING PERCENTAGE OF –COLA MODE OF SERVICE OF COCA-COLA.

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INTERPRETATION: From the above Information the mode of service of Pepsi and coca-cola is clear. The Pepsi covers it maximum operation through distributor, where coca-cola covers through wholesalers.

INFRENCES: The 66% outlets are covered through distributors, Pepsi covers direct 7% and 27% through wholesaler and just 0% with the help of presell service. Where Cocacola covers 96% through wholesalers.

7] TABLE SHOWING SERVICE FREQUENCY OF PEPSI AND COCA-COLA: SERVICE FREQUENCY

NO. OF OUTLETS (PEPSI)

DAILY MORE THAN 3 TIMES LESS THAN 3 TIMES

146 69 0

NO. OF OUTLETS (COCA-COLA) 1 0 214

250 214

200 150

146

100

PEPSI COCA-COLA

69

50 0

1 DAILY

0

0

MORE THAN 3 LESSTHAN 3 TIMES TIMES

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INTERPRETATION: The above table shows the service frequency of Pepsi and Cocacola by various means of transportation.

INFRENCES: In these areas Pepsi has daily visit in maximum number of shops, where as coca-cola does not provide daily service at all.

8] TABLE SHOWING THE VARIOUS FEEDBACKS OF CUSTOMERS REGARDING THE SEVICES PROVIDED BY PEPSI: FEEDBACK SATISFIED SERVICE ISSUE SCHEME ISSUE

19%

NO. OF OULET 174 41 0

0%

SATISFIED SERVICE ISSUE SCHEME ISSUE 81%

66

180

174

160 140 120 100 80

PEPSI

60

41

40 20

0

0 SATISFIED

SERVICE ISSUE

SCHEME ISSUE

INTERPRETATION: The above table shows the satisfaction level of customer of Pepsi, The customer feedback is categorized in three different area, the first area directly belongs to the group of satisfied customer, in second category customer with service issue falls and in the last category customers with scheme issue comes.

INFRENCES: According to the pie chart 81% customers are satisfied and says that they are pleased with the service provided by the Pepsi, 19% customers are having service issue. It directly reflects the good service and good market share of Pepsi.

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SWOT ANALYSIS

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STRENGTHS

 COOLERS IN JDPL & TY- There are more coolers of Pepsi in the area of JDPL and TRANS YAMUNA. Which provides a very better chance to enhance the market share of Pepsi in these areas.

 > 50% - MAXIMUM NUMBER- In all areas Pepsi market share is all most 50% or more than that, which shows that Pepsi is giving very tough competition to its competitors.

 PRESELL METHOD- It is one of the important tool that Pepsi is having for increasing its market share, this system is beneficiary for both customer and business, it helps business to provide effective delivery and less time consuming, where as it provides long hours for small vendors to arrange cash.

 AQUAFINA- This is the worlds Largest selling water, which gives a strong backup to other beverages of Pepsico.

 PRICE DIFFERENCE- The price difference between 500ml pet bottles of Pepsi provides a strong edge to Pepsico.

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WEAKNESSES

 DAMAGED COOLERS- Maximum coolers used by retailers which belong to Pepsi are very old and not in the Proper condition, Which create a sense of negligence in the mind of retailers, due to which retailers wants to switch to cocacola.  FLAVOUR- According to customers Pepsi does not have flavors like coca-cola.  NO CUSTOMER RELATIONSHIP MANAGEMENT- Customers highly believes that there is no customer relationship management in Pepsi.  CARET DESIGN- The caret design of Pepsi does not protect the whole bottle like coca-cola caret, which results in damaged bottles and increased number of replacements  DIFFERENCE IN COMPANY’S RATE AND WHOLESALER’S RATE- This is a common problem in any FMCG sector, but in the case of Pepsi the rates differs more  NO FIX SCHEME- Pepsi company does not provides a fix scheme in a single market, due to which they are loosing customer loyalty towards Pepsi  NO SERVICE IN INNER STREATS- Pepsi does not provides service in inner street like coca-cola, which is one of the important reason of fall in market share of Pepsi.

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OPPORTUNITIES

 OUTLETS USING OWN COOLERS- .There is a big chance for Pepsi to reenter market with coolers to increase the market share as more than 50% outlets are using their own coolers.

 7UP NIMBOOZ- It is the one of the highly demanded cold drinks, which has capacity to enhance the market share of Pepsi by double.

 ROADSIDE MOBILE BOOTH- Though Pepsi has mobile booths but they should increase the numbers, which will help the Pepsi a lot, in increasing its market share.

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THREATS

 COKE PENETRATION IN MARKET WITH COOLERS- Coke is penetrating the market with high number of coolers, by which they can pressurized the retailers for not keeping Pepsi product.

 SCARCITY OF PRODUCT- There is a high scarcity of product in warehouse of Pepsi , which always creates a image of vanishing company in the mind of retailers.

 SMALL AGENCIES- coca-cola is doing tie-ups with small agency, which helps Coca-cola to reach untouched places.

 DUPLICITY OF PEPSI- Duplicity of Pepsi in comparison coca-cola is very high and it just only spoiling the name of Pepsi.

 IMPURE DISTRIBUTORS- The Pepsi have very few number of pure distributor due to large number of demand of limca in the Delhi market.

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CHAPTER- 5 SUMMARY , FINDINGS & RECOMMENDATIONS

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This Market survey has been done to find out the current market scenario of Pepsi, which considers the market share of Pepsi, mode of service, frequency of service, share of Pepsi in particular shop and the most important from the Business point of view is the satisfaction level of customer. The survey provides very much important information, which is necessary to know for a firm to sustain in cut throat competition.

•

The data was collected from the RETAILERS PRESENT IN MARKET. Data is collected with the help of questionnaire.

•

The respondent are basically the owner of the shop or his/her relative, who was currently handling the shop at the time of survey

. •

The survey reports, which are provided to the organization by the trainees, will help the Pepsi to improve their market share in the beverages market.

•

According to the survey Pepsi has decreasing market share.

•

The service of Pepsi is very poor in several areas and the company is neglecting the customer relationship management, due to which retailers are switching to other brands.

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•

According to the survey Pepsi does not have flavors like coca-cola, especially there is no drinks available in Pepsi which can compete with limca and thums up.

•

Pepsi is not capable to meet the demand, as the demand of 7up nimbooz is very high in the market which is capable of increasing the market share of Pepsi, but Pepsi fails to meet the demand.

•

The coolers available in the market, which belongs to Pepsi are very old and damaged on which Pepsi does not pay any kind of attention, which helps cocacola to convert the outlets from Pepsi to Coca-cola.

.

•

In maximum areas Pepsi does not provide daily servicing, The Company’s vehicle visits the area 5 times in a month. The coca-cola gets the advantage of this negligence and try to cover the area more than Pepsi.

RECOMMENDATION

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 STOP DUPLICITY- The very first thing on which Pepsi should work upon is it should try to stop duplicity, because it does not only decreases the company’s sales it also spoils the health of customers and Pepsi gets blamed for the damage.

 BETTER CUSTOMER RELATIONSHIP MANAGEMENT- Pepsi customers reports about misbehavior and misconduct by company, according to survey Pepsi does not care about customers, so increase the market share Pepsi have to strengthen its relation with customers and fix a better customer relationship management.

 DISTRBUTOR SHOULD HAVE PROPER INFORMATION OF AREA- To increase the market share Pepsi distributors should have the proper knowledge about the areas in which they have to work, maximum distributors of Pepsi do not know there area only.

 PROPER AUDIT OF DISTRIBUTORS- As it is earlier mentioned in the report that Pepsi have very few pure distributors, impure distributors not only spoils the Pepsi image but they also increases the market share of coca-cola.

 SOME

DIRECT

DISCOUNTS

TO

RETAILERS

INSTEADE

OF

WHOLESALERS- To increase the market share Pepsi should provide a little discount to the retailers, who directly takes the product from company. The retailers which takes Pepsi product from wholesaler gets some discount, but in

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direct operation retailers do not enjoy any type of discount, which de motivates the retailers and they start buying from wholesaler who compels retailers to take coca-cola product also , which directly decreases the market share of Pepsi.

 ONE AREA ONE SCHEME- There should be one scheme in one area, In different scheme one retailers enjoy heavy scheme and another suffers with low scheme or do not get only, for good market share there should be one scheme in one area.

 SPECIAL BRANCH FOR COOLER MAINTENANCE- Though Pepsi has more coolers in some areas but customers not happy with the performance of coolers; maximum number of coolers is old and not working properly, so to increase the market share Pepsi should establish a special branch for cooler maintenance.

 SPECIAL GIFTS FOR RETAILERS WHO BUYS SOME EXTRA- To encourage the market share Pepsi should encourage customers first; it can be done through appraisal of customers with some special gifts who buys large amount.

 COVER THE SINGLE SHOP- As it is mentioned in report that Pepsi is failing to cover the inner streets shops, so to increase the market share Pepsi have to cover the single shop present in the market.

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

NEW SHAPED CARETS- The half covered carets of Pepsi results in damaged bottles, so Pepsi should also launch a new caret like coca-cola, which helps in decreasing the number of replacements.

 BRINGING NIMBOOZ AS SOON AS POSSIBLE- According to survey Pepsi do not have flavors like coca-cola, but the 7up nimbooz is highly demanded in the market, so proper supply of nimbooz in market will certainly increase the market share of Pepsi.

CONCLUSION

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Market research is an important tool in development of an organization. Every organization conducts market research for development of its share in the market.

The market survey done for Pepsi clears the scenario going in the market.

According to the survey Pepsi is loosing its Market share due to bad service, lack of stock, bad customer relationship management, old flavors, poor maintenance of equipments in market which belongs to Pepsi and duplicity.

Though Pepsi is loosing its Market share in some markets but still it has various strengths which will help Pepsi to recover, there are lots of opportunity available in the market, which Pepsi should utilize in a proper manner to gain its market share back.

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Pepsi should work on some sectors like customer relationship management, duplicity, adding new flavors, availability of stock, proper service and market audit.

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EXECUTIVE SUMMARY

Pepsi is a soft drink produced and manufactured by PepsiCo. The drink was first made in the 1880s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on June 16, 1903. There have been many Pepsi variants produced over the years since 1898. PepsiCo entered India in 1989 and has grown to become one of the country’s leading food and beverage companies. One of the largest multinational investors in the country,

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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.$1 billion since the company was established in the country. PepsiCo provides direct and indirect employment to 150,000 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 such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana100% fruit juices, and juice based drinks – Tropicana Nectars, Tropicana Twister and Slice. Local brands – Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands.

Directors Shona Brown

Ian M. Cook

Dina Dublon

Alberto Ilarquen

ArthurC.Martinez

RockefellerJames

J SchiroLloyed

Victor J. DzauRay

Indra K Nooyi

L. Hunt

Sharon Percy

TrotterDaniel Vasella

MARKET SHARE Market share, in strategic management and marketing is, according to Carlton O'Neal, the percentage or proportion of the total available market or market segment that is being

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serviced by a company. It can be expressed as a company's sales revenue (from that market) divided by the total sales revenue available in that market. It can also be expressed as a company's unit sales volume (in a market) divided by the total volume of units sold in that market. It is generally necessary to commission market research to estimate the total market size and a company's market share.

MARKET SHARE ANALYSIS Market share analysis is an important part of market analysis and indicates how well a firm is doing in the marketplace compared to its competitors.

Scope of the Project: The topic of project is to analyze the market share of Pepsi in different markets. The data for this Project has been collected through market survey, which comprise of more than 900 shops situated in different location and different franchise zones of Pepsico.

After getting the data from survey, report reflects that Pepsi has good market share but it has also lost its share in various important market. Pepsi has poor delivery of product to retailers and its coolers which all are present in market are old and not in good condition. Pepsi has also failed to establish a good relation which is making the retailers to switch to its competitors.

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This project throws lights on the current scenario and position of Pepsi and its various strength and weaknesses, this project also briefs various steps which is very necessary for Pepsi to take for getting the sustained growth and survival in beverage market.

BIBLIOGRAPHY: 1. www.pepsi.com 2. www.pepsi.co.in 3. www.wikipedia.org 4. Marketing Management by Appanaiah and Readdy.

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