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MARKET SURVEY OF PEPSICO RETAILERS ON DISPLAY EFFECTIVNESS

By: Jamaal Kkhan Jayawant Institute of Mgmt. Studies, Pune-33

Presentation Outline:        

Company Overview Objectives of the study Products offered (brands) Scope of the study Research design & Methodology Data Analysis & Interpretation Findings of the study Recommendations & Conclusion

Company Overview   

     

International company – offers convenient snacks, foods and beverages PepsiCo entered in India in 1989. 43 bottling plants in India, of which 16 are company owned and 27 are franchisee owned Market >500 varieties of food & beverage products in > 200 countries market capital = 107.19bn US$ (2008-09) Revenues >US$ 39bn (2007-08) Over 198,000 employees (2008-09) CEO : Mr. Sanjeev Chadha. India Headquarters : Gurgaon.

Objectives of the study   

 

To find out the most popular brand of PepsiCo & satisfaction level of its retailer. To check out the Plano gram (POG) norms, whether retailer followed it properly or not. To find out that proper merchandising & display of the brands are they effective or not & relation between company & its retailer. To help the company in increasing its sales & finding out the benefits of Visi-charging.

Products Offered (Brands) 

Frito Lay Brands - snacks, potato & corn chips, salsa and dips etc



Pepsi-Cola brands - carbonated drinks, water, coffee



Gatorade brands – drinks for sports professionals



Tropicana brands - juices



Quaker Brands - cereals, oatmeal bars

Scope of the study 



The training in the organization is very important for a student who is undergoing with such course. This course is not the answer for the entire problem which arises in the practical field. There is no certain formula for any particular problem but the aim of this study is to develop the ability of decision making. A right decision at right time itself helps an organization to run smoothly. This training in an organization given an idea how decision are taken tact fully when any problem comes to an executive. So the way of problem right decision making and knowledge of different type of marketing activities give much importance to the study. Though only in two months it was not possible to understand it so deeply but an overall idea could develop.

Research design & Methodology 



Research Type:Exploratory research. Data collection technique:1) Primary Data :Questionnaire Method.

2) Secondary Data:Website Books & company publications.

Contd…… 



Sample description:1. Sampling technique:non-probability sampling (judgment) 2.Sample size:100 retailers supplying PepsiCo brands in Kanpur south. Sample analysis was done by means of statistical tools.

Data Analysis & Interpretation 

There are more than 200 outlets are exist in both area including Rawatpur, Pandu nagar & Ashok nagar but due to time constraint those outlets are given to me by my project guide in PepsiCo which are not performing better up to the mark of PepsiCo’s guidelines. In Ashok nagar area only 48 outlets are assigned to me & remaining outlets I had visited were under the aegis of Rawatpur & Pandu nagar.

Contd…… 

Areas covered by me are

Area

No. of outlet

Ashok nagar

36

Rawatpur

47

Pandu nagar

17

Total

100

Type of outlet

Outlet type

Respondents

%age

Convenience Grocery Eatery

38 45 17

38 45 17

Total

100

Interpretation: from the above chart we can conclude that grocery shop followed by convenience store are having majority of PepsiCo outlet.

Table 1. Most profitable brands

Brands Pepsi Mirinda 7up Mountain dew Slice Total

Respondents 08 27 15 43 07 100

Interpretation: from the above chart we can observe that Mountain Dew(45%) followed by Mirinda (27%) is the leading brands (in terms of sales) of PepsiCo in Kanpur south.

%age 08 27 15 43 07

Table 2. Effect of advertisement on sales.

Option

Respondents %age

Yes

66

66

No

34

34

Total

100

Interpretation: The above pie chart suggests that sales of PepsiCo brands are affected by advertisement campaign.

Table 3.Seasonal shortage of popular PepsiCo brands.

Option 0 times 1 times 2 times More than 2 times

Respondents 07 12 35 46

Total

100

%age 07 12 35 46

Interpretation: From the above pie chart it is clear that majority of the retailer faces shortage of soft drinks 2 or more than 2 times.

Table 4. Scheme attraction, provided by PepsiCo.

Schemes Free bottles on crate Monopoly discount Brands display scheme Target based forfeit Total

Respondents 48 31 06 15 100

%age 48 31 06 15

Interpretation: The above chart clearly shows that 48% of the retailers like free bottles scheme followed by 31% who prefer monopoly discount.

Table 5. Behavior of PepsiCo officials.

Interpretation:

Behavior Excellent Good Satisfactory Poor Very poor Total

Respondents 03 12 41 31 13 100

%age 03 12 41 31 13

It is clear from the above chart that behavior of officials is not up to the mark. Only 56% retailers are satisfied (including excellent, good & satisfactory behavior).

Table 6. Performance level visicooler.

Performance level Excellent Good Satisfactory Poor Very poor Total

Respondents 21 58 09 09 03 100

%age 21 58 09 09 03

Interpretation: from the above chart we can conclude that performance level of visi-cooler is up to the mark. It is happen due to frequent visit of technician.

Table 7. Retailer’s opinion on planogram (POG).

Option Strictly followed Wastage of time Followed with some changes Useless Total

Respondents 04 27 45

%age 04 27 45

24 100

24

Interpretation: The above chart shows activation of planogram in which 45% of the retailers had said that some changes are necessary followed by 27% of the retailers who said that it is wastage of time.

Table 8. Status of visi-charging on avg. customer visit.

Visi charging status 0-20% 21-40% 41-70% More than 70% Total

Respondents 02 34 45 19 100

%age 02 34 45 19

Interpretation: from the above chart we can conclude that avg. visi charging is lies betwee 41% to 70%. This is not up to the avg. level fixed by PepsiCo.

Table 9. Daily Sales of PepsiCo products in crates in a day.

No. of crates 1 to 2 2 to 4 4 to 6 More than 6 Total

Respondents 07 12 58 23 100

%age 07 12 58 23

Interpretation: from the above pie chart we can assume that 58% of the retailers sold the 4 to 6 crates per day followed by 23% retailers who sell more than 6 crates.

Table 10. Peak session for soft drink sale.

Session Jan. to mar. April to June July to sep. Oct. to dec. Total

Respondents 00 56 44 00 100

%age 00 56 44 00

Interpretation: it is clear from the above chart that the sale of PepsiCo products is more in April to June session

Table 11. Effectiveness of Sales promotion technique of PepsiCo regarding Nimbooz.

Promotional effectiveness Excellent Good Satisfactory Poor Very poor Total

Respondents 00 27 51 19 03 100

%age 00 27 51 19 03

Interpretation: it is inferred from the above table that the Sales promotion technique of its newly launched product Nimbooz is satisfactory in the eyes of retailers.

Table 12. Sales impact of prime location of visicooler.

Option Highly increased Medium increased Low increased No effect Total

Respondents 37 29 20 14 100

%age 37 29 20 14

Interpretation: from the above chart we can conclude that the location of visi-cooler in outlet play very vital role in improvement of sales.

Table 13. Display of crates as a part of Merchandising in outlet.

Crate display 2 to 4 4 to 6 6 to 8 More than 8 Total

Respondents 27 42 20 11 100

%age 27 42 20 11

Interpretation: from the above chart we can infer that 42% outlets are displaying the 4 to 6 crates as a part of merchandising.

Table 14. Problem solving approach of PepsiCo officials.

Option 1 to 2 days 2 to 3 days 3 to 4 days More than 4 Total

Respondents 21 15 19 45 100

%age 21 15 19 45

Interpretation: from the above chart we can conclude that PepsiCo is not considering much focus on retailer’s problem.

Table 15. Satisfaction from execution done by PepsiCo.

Option Yes No Can’t say Total

Respondents 24 68 08 100

%age 24 68 08

Interpretation: from the above chart we can infer that 68% of the retailers are not satisfied by the execution done by PepsiCo at their outlet.

Findings of the study 

  



On the basis of questionnaire I have found that sale of mountain dew is 43%. Mirinda 27%, 7up 15%, Pepsi 8% & slice 7% respectively. 46% retailers faced the shortage of popular brands more than 2 times, 35% 2 times & 12% 1 time. 48% retailers like free bottles scheme, while 31% & 15% like monopoly & target based benefit respectively. I was also observed that official’s behavior is not up to the mark because 31% & 13% retailers had measure the performance level up to poor & very poor respectively. 58% respondents have said that their visi-cooler’s performance is good, while 21%, 9%, 9%, & 3% said excellent, satisfactory, poor, very poor respectively.

Contd….. 

 

 

About planogram, 45% said some changes are necessary, 27% said wastage of time, 24% said useless while 4% respondents agree that it should be strictly followed. 58% of the respondents sells 4 to 6 crates in a day, while 23% retailers sells more than 6 crate each day. Peak session of sales of soft drink is April to June, 56% retailers agree with this statement; while 44% said that peak session is July to Sep. There is a very good response of newly launched product Nimbooz. 37% of the retailers have said that prime location impact is very important in improvement in sales.

Contd….. 

 

42% of the retailers display 4 to 6 crates as a part of merchandising, while 27%, 20%, & 11% are followed by displaying 2 to 4, 6 to 8, & more than 8 respectively. 45% of the retailers are unhappy with PepsiCo because they are very careless about sorting out their problem. I have found that 68% of the retailers are not satisfied with the execution done by PepsiCo.

Recommendations 







PepsiCo should start the manufacturing of its own packaged water pouch under the brand of Aquafina so that there will be no problem of visi-impurity. From this step PepsiCo’s product line as well as its revenue would be increased. Company should motivate their competent and honest salesman so that they could provide schemes to the retailers & make them happy. Supply van from warehouse should be departed on time so that there would be no delay in delivery of product. From this step retailers will be happier. Proper feedback system should be develop by its officials & ensure a randomly visit of outlet by them. It will help to build a strong & healthy relationship between company & retailer

Contd….. 





It is often seen that some salesman’s don’t intimate schemes to the retailer & few of the retailer complaint about it. So there should be frequent visits of Customer Executives to their respective areas to keep the shop-keepers benefited with various schemes. Most of the retailers are complaining about non-fulfillment of commitment regarding their leakage & breakage. Company should make sure that the retailers get fulfill their commitment on this issue so that they will be satisfied. PepsiCo should try to give some credit facility to the distributors & retailers so that they can bring brands more than their credit worthiness & try to sell maximum no of SKU from their outlet.

Conclusion 





After visiting nearly 100 outlet I found that Pepsi and it’s brands are not doing a good job in Kanpur. It’s clear that Pepsi(61%) has lagging coke (39%) in the soft drinks market at Rawatpur in Kanpur (south) area .If we compare it’s signage and display material than Pepsi has an edge over coke. At this time it is completely depend on the retailer that which brands has offers to the customers? Although the company has been able to satisfy the retailers. The company must take the immediate step in order to resolve it’s dispute with these retailers. It was also found that the schemes that are brought up in the market by Pepsi & coke after every couple of day is not making any net effect on the sale of cola, whereas one is cannibalizing others market only.

Contd…..  





It was also seen that Pepsi brand is better sold than coke, but is Thumsup, which is making the major different in the market. The sale in age wise section, it was found that 200 ml is sold the age group with same frequency but 300 ml is sold mostly in 25-45 years of age group where as CAN is sold in high younger generation only. Finally 2 lit. are used only for family or party purpose. The study reveals the immediate steps are not taken in the replacement of damaged or breakage goods. The rival company. Coca-Cola is very quick in this area and efficient also. The study reveals that the commitment of supplying gift items or incentive is not carried out on scheduled time.

Thank You

[email protected]

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