A Project report on
“SURVEY OF VISI-PURITY & CHARGING” Submitted to
Aaradhna Soft drink co. Kanpur A Sister concern of
PepsiCo India Holding (pvt.) Ltd. In Partial Fulfillment of Requirement for the Award of Degree of
Master of Business Administration Submitted by:
Jamaal khan Under the guidance of:
Mr. Sameer wali ASM (PepsiCo India Holding (pvt.) Ltd.)
Jayawant Institute of Management Studies, Pune-33
0
DECLARATION
I, the undersigned, hereby declare that the Project Report entitled
Market survey of PepsiCo on display
effectiveness
written and submitted by me to the Aaradhna Soft drink co. Kanpur, a Sister concern of PepsiCo India Holding (pvt.) Ltd., in partial fulfillment of the requirement for the award of degree of Master of Business Administration under the guidance of Mr.
Sameer wali (ASM) PepsiCo India Holding (pvt) Ltd is my original work and the conclusions drawn therein are based on the material collected by myself.
Place: Kanpur Date: 5 / 08/2009
Research Student
Jamaal khan
1
ACKNOWLEDGEMENT Its gives me great pleasure in acknowledging the invaluable assistance extended to me by various person in the successful completion of the project. I express my sense of independence gratitude to the Mr. AMOL SHARMA (TDM), Mr. SAMEER WALI (ASM) and Customer executive Mr. VAISHNAV SHRIVASTAV and other sales force of PepsiCo India Holding (pvt) Ltd. Kanpur, who guided and encourage me from time to time for the successful completion of this project report. I express our thanks to Aradhana Soft drink co. Kanpur, for granting me the permission to work with the esteem organization. I am also thankful to MR. SAMEER WALI (ASM) Aradhana Beverages Ltd. Kanpur who guided and helped us in all possible ways they could, at every stage of the project. My humble thanks to my all the professors for guiding me during the two months training as my training mentor. I would also like to thank all the Executives, distributers & staff of Kanpur area who provided us all the relevant information and their kind support, on the basis of which this report has been prepared.
2
CONTENT Chapter No. No.
Particular
Page
Executive summary of the Project. Chapter I
:
Introduction
6-7
Chapter II
:
Objective of the study
8-9
Chapter III
: Profile of the organization
10-12
Chapter IV
: PepsiCo history
13-23
Chapter V
: Structure of bottling plant
24-28
Chapter VI
: Visi-cooler planogram
29-35
Chapter VII
: Research methodology
36-39
Chapter VIII : Data Presentation, Analysis &Interpretation
40-52
Chapter IX
: Findings, suggestion & conclusion 53-58
Chapter V
:
Bibliography
SWOT Analysis
59-61
62
3
EXCUTIVE SUMMARY
Beverage industry is one of the fast growing industries in India. It can be divided into two sections i.e. carbonated and Non –carbonated. The carbonated drinks can be further classified into Cola, Lemon, Orange, Mango, and Apple segments. Marketing includes all the activities like promotion, distribution, advertising etc., to fulfill the all segment of consumers. Marketing is also to convert social needs into profitable Opportunities. So this topic provides all the essential to theoretical knowledge and to inculcate the efficiency. It is also requirement for the company to improve their service and quality for achieving their ultimate goal.
PROJECT TITLE
Market survey of PepsiCo on display effectiveness
REASON FOR SELECTING THIS TOPIC The topic has been already given by the company to collect information about current status of the Visi cooler that is given by the company to the retailer for selling of every brand soft drink of PepsiCo. The main objective of the research was to know the company’s position in the soft drink market by doing Visi purity & Charging of every visi cooler.
4
LOCATION The location for the project was
1.Rawatpur 2. Ashok nagar
DURATION The duration for the project was 1st June 2009 TO 30th July 2009
5
INTRODUCTION OF PROJECT
Modern age is full of competition. Today only way of success is your continuous efforts towards the growing market needs and satisfying them. It is the marketer job to know what the market speaks i.e. the ever changing needs of the customer through market research & adopt them fruitfully. It is must for all the companies to make policies according to the customer and the government. Today to succeed for any organization has to target its customer needs, to create a culture in the organization i.e. market conscious & responsive to customer needs.
Soft drinks industry has become big business in India in recent years. The soft drinks business underwent major change with the entry of PEPSI and re-entry of COCO-COLA in India in the late 80s when parle with brands like Thumbs up, Limca & gold spot was a clear leader. Coco-Cola took up the product line of parley in 1993-94; today both brands are the Indians favorite soft drinks.
Market survey of PepsiCo on display effectiveness
In this project the main task is visi purity and charging Visi purity and charging- Means in the visi cooler no other brand of soft drink or other items are allowed to display with PepsiCo products like water, chocolates, juice, milk etc. if visi cooler displaying other items of another brand of soft drink then it means visi 6
cooler is not pure. So it is mandatory for the retailer to put only PepsiCo product in the visi cooler and visi should be charge at least 70% because it’s enough effective for the display of every brand of PepsiCo. If visi is not pure and charge so it gives very bad impression on the consumer’s perception about PepsiCo’s product line.
ADVANTAGES OF VISI PURITY & CHARGING 1. Easily Brand execution & display. 2. Every product of PepsiCo is easily display. 3. Customers have easy access to choose his favorite soft drink from the Varity of product. 4. It is also very helpful for retailer to set the product according to the sequence of planogram. 5. Customer can see a whole range of product of PepsiCo.
7
OBJECTIVE & SCOPE
OBJECTIVE OF STUDY
This study offers an opportunity to the student of management to develop the required skill and in sights for making the best use of experiment and judgment to practical life. To gain an insight into why individuals act in certain consumption related way & Learning what & external influence compel them to act as they do. So the main Objective is to study of Visi purity & charging of retail outlet in Kanpur south.
Knowing the popularity of executions of PepsiCo between the consumer & Retailers. To find out the satisfaction level of executions of PepsiCo between consumer & Retailers. How to retain & increase market share. To provide relevant research data which enable PepsiCo management for their policy framing & strategy formulation. Handling the grievances of consumers & retailer. To increase the sell of PepsiCo product with the help of Visi purity & charging. To improve the purity & charging of Visi-Cooler. To understand brand pack availability in the market. 8
IMPORTANCE & RELEVANCE OF THE STUDY
This
8
weeks
training
in
an
organization is for MBA course is not the answer of all problems, which arise in 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. Right decision at right time itself helps an organization to run smoothly. The
training
in
any
organization
gives us an idea of different marketing activities and
main
emphasis
activities” business comes
to
aspect
is
taken
an
is
given
and
also
tactfully
executive,
on it
“Promotional is
when
the
way
seen
how
any
problem
of
problem
solving, right decision making and knowledge of different
types
of
marketing
activities
gives
much importance to this study. Through only in 50 days it was not possible to understand it so deeply but overall ideas would be developed.
9
COMPANY PROFILE PEPSICO INDIA HOLDING (PVT.) LTD. TYPE
: public
FOUNDED
: New York (1965)
HEADQUATERS: purchase, New York AREA SERVED
: Worldwide
KEY PEOPLE
: INDRA K. NOOYI (CEO)
INDUSTRY
: Non alcoholic beverage, Fruit Drink, carbonated drink etc.
Market cap
: USD 107.19 Billions (2008-2009)
Revenue
: USD 39.474 Billions (2007-2008)
Operating income : USD 7.170 Billions (2007-2008) Net income
: USD 5.658 Billions (2007-2008)
Total assets
: USD 34-628 Billions (2007-2008)
Division
: Food, American beverages,
Employees
: 1980000 (2008-2009)
Website
: www.pepsico.com
10
Corporate Values The PepsiCo driven organization. group’s growth and values underpinning follows:
group has always been a value These values continue to direct the business. The five core PepsiCo the way we do business are as
Integrity: We must conduct our business fairly, with honesty and transparency. Everything we do must stand the test of people scrutiny. Understanding: We must be caring, respectful, compassionate and humanitarian towards our colleagues and customers round the world and always work for the benefit of India. Excellence: We must constantly strive to achieve the highest possible standard in our day-to-day work and in the quality of goods and services we provide. Unity: We must work cohesively with our colleague across the group and with our customers and partners around the world to build strong relationship based on tolerance, understanding and mutual co-operation. Responsibility: We must continue to be responsible and sensitive to the countries, communities and environments in which we work always ensuring that what comes from the people goes back to the people many times over.
11
Vision & mission of the organization
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.
.
Mission Our mission is to be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce 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
12
“PEPSI CO” – HISTORY
AN OVERVIEW 1893--Caleb Brad ham, a young pharmacist from New Bern, North Carolina, begins experimenting with many different soft drink concoctions; patrons and friends sample them at his drugstore soda fountain. 1898--One of Caleb's formulations, known as "Brad's Drink," a combination of carbonated water, sugar, vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola" on August 28, 1898. Pepsi -Cola receives its first logo. 1902--The instant popularity of this new drink leads Brad ham to devote all of his energy to developing Pepsi -Cola into a full-fledged business. He applies for a trademark with the U.S. Patent Office, Washington D.C., and forms the first Pepsi-Cola Company. 1903--"Doc" Brad ham moves the bottling of Pepsi-Cola from his drugstore into a rented warehouse; he sells 7,968 gallons of syrup in the first year of operation. Pepsi's theme line is "Exhilarating, Invigorating, and Aids Digestion." 1904--Brad ham purchases a building in Ne w Bern known as the "Bishop Factory" for $5,000 and moves all bottling and syrup operations to this location. Pepsi is sold in six -ounce bottles. Sales increase to 19,848 gallons. 1905--Pepsi-Cola's first bottling franchises are established in Charlotte a nd Durham, North Carolina.
13
1906--Pepsi gets another logo change, the third in eight years. The modified script logo is created with the slogan, "The Original Pure Food Drink." There are 15 U.S. Pepsi bottling plants. The Pepsi trademark is registered in Ca nada. Syrup sales rise to 38,605 gallons.The federal government passes the Pure Food and Drug Act, banning substances such as arsenic, lead, barium, and uranium, from food and beverages. This forced many soft drink manufacturers, including Coca -Cola, to change their formulas. Pepsi -Cola, being free of any such impurities, claimed they already met federal requirements. 1907--Pepsi-Cola Company continues to expand; the company's bottling network grows to 40 franchises. Pepsi-Cola sells more than 100,000 gallons of syrup. Pepsi trademark is registered in Mexico. Syrup sales rise to 104,026 gallons. 1908--Pepsi-Cola becomes one of the first companies to modernize delivery from horse drawn carts to motor vehicles. Two hundred fifty bottlers in 24 states are under contract to make and sell Pepsi-Cola. 1909--Automobile race pioneer Barney Old field endorses Pepsi-Cola in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer before a race." 1910--The first Pepsi-Cola bottlers' convention is held in New Bern, North Carolina. 1920--Pepsi theme line speaks to the consumer with "Drink Pepsi-Cola, it will satisfy you." 1923--Pepsi-Cola Company is declared bankrupt and its assets are sold to a North Carolina concern, Craven Holding Corporation, for $30, 000. Roy C. Mega gel, a Wall Street broker, buys the Pepsi trademark, Business and good will from Craven Holding Corporation for $35,000, forming the Pepsi-Cola Corporation. 14
1928--After five continuous losing years, Mega gel reorganizes his company as the National Pepsi Cola Company, becoming the fourth parent company to own the Pepsi trademark. 1931--U.S. District Court for Eastern District Virginia declares the National Pepsi -Cola Company bankrupt, the second bankruptcy in Pepsi-Cola history. The Loft candy company acquires the National Pepsi -Cola Company. Charles G. Goth, president of Loft, assumes leadership of Pepsi and commands the reformulation of Pepsi -Cola syrup formula. 1933--By the end of the year, Goth’s new Pepsi Cola Company is insolvent. In a series of moves, he acquires Megargel's interest in the company, giving himself 91% ownership of Pepsi. 1934--A landmark year for Pepsi -Cola. The drink is a hit and to attract even more sales, the company begins selling its 12-ounce drink for five cents (the same cost as six ounces of competitive colas). The 12-ounce bottle debuts in Baltimore, where it is an instant success. The cost savings proves irresistible to Depression -worn Americans and sales skyrocket nationally. Caleb Brad ham, the founder of Pepsi-Cola and "Brad's Drink," dies at 66 (May 27th, 1867 -February 19th, 1934). 1935--Guth moves the entire Pepsi -Cola operation to Long Island City, New York, and sets up national territorial boundaries for the Pepsi bottler franchise system. 1936--Pepsi grants 94 new U.S. year-end profits reach $2,100,000.
franchises
and
1938--Walter S. Mack, Jr., V.P. of Phoenix Securities Corporation is elected President of the Pepsi-Cola Company. Mack, who considers advertising the keysto ne of the soft drink business, turns Pepsi into a modern marketing company.
15
1962--Pepsi receives its new logo, the sixth in Pepsi history. The 'serrated' bottle cap logo debuts, accompanying the brand's groundbreaking "Pepsi Generation" ad campaign. 1963--After climbing the Pepsi ladder from fountain syrup salesman, Donald M. Kendall is named CEO of Pepsi -Cola Company. Pepsi-Cola continues to lead the soft drink industry in packaging innovations, when the 12 -ounce bottle gives way to the 16 -ounce size. Twelve-ounce Pepsi cans are first introduced to the military to transport soft drinks all over the world. 1964--Diet Pepsi, America's first nati onal diet soft drink, debuts. Pepsi-Cola acquires Mountain Dew from the Tip Corporation. 1965--Expansion outside t he soft drink industry begins. Frito-Lay of Dallas Texas and Pepsi -Cola merge, forming PepsiCo, Inc. Military 12-ounce cans are such a success that full-scale commercial distribution begins. Mountain Dew launches its first campaign, "Yahoo Mountain Dew...It'll tickle your innards." 1970--Pepsi leads the way into metrics by introducing the industry's first two -liter bottles. Pepsi is also the first company to respond to consumer preference with light -weigh, recyclable, Plastic bottles. Vic Bonomo is named P resident of Pepsi-Cola. The Pepsi World Headquarters Manhattan to Purchase, NY.
moves
from
1974--First Pepsi plant opens in the U.S.S.R . Television ads introduce the new theme line, "Hello, Sunshine, and Hello Mountain Dew." 1976--Pepsi becomes the singl e largest soft drink brand sold in American supermarkets. The campaign is "Have a Pepsi Day!" and a classic commercial, "Puppies," becomes one of America's 16
best-loved ads. As people get back to basics, Pepsi there as one of the simple things in life. 1977--At 37, named
marketing genius John Scullery is President of -Pepsi-Cola.
1978--The Company experiments with new flavors. Twelve-pack cans are introduced. 1980--Pepsi becomes number one in sales in the take home market. 1981--PepsiCo and manufacture soft beginning next year.
China reach agre ement to drinks, with production
1982--Pepsi Free, a caffeine -free introduced nationwide. Pepsi
cola,
is
Challenge activity has penetrated 75% of the U.S. market. 1983--Mountain Dew launches the "Dew it to it" theme. 1984--Pepsi advertising takes a dramatic turn as Pepsi becomes "the choice of a New Generation." Lemon Lime Slice, the first major soft drink with real fruit juice, is introduced, creating a new soft drink category, "juice added." In subsequent line of extensions, Mandarin
Orange Slice goes on to become the number one orange soft drink in the U.S. Diet Pepsi is reformulated with NutraSweet (aspartame) brand sweetener. 1985--After responding to years of 17
1991--Craig E. Weather up is named CEO of Pepsi-Cola North America, as Canada becomes part of the company's North American operations. Pepsi introduces the first beverage bottles containing recycled polyethylene terephthalate (or PET) into the marketplace. The development marks the first time recycled plastic is used in direct contact with food in packaging. 1992--Pepsi-Cola launches the "Gotta Have It" theme which supplants the longstanding "Choice of a New Generation." Pepsi-Cola and Lipton Tea Partnership is formed. Pepsi will distribute single serve Lipton Original and Lipton Brisk products. Crystal Pepsi: a refreshing, clear soda that is caffeine free has 100% natural flavors, no preservatives and is low in sodium, goes national. Mountain Dew introduces the popular theme line, "Get Vertical." 1993--Brand Pepsi introduces its slogan, "Be Young. Have Fun. Drink Pepsi." Pepsi -Cola profits surpass $1 billion. Pepsi introduces an innovative 24 -can multi pack that satisfies growing consumer demand for convenient large -size soft drink packaging. "The Cube" is easier to carry than the traditional 24 pack and it fits in the refrigerator. 1994--New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi CEO Craig Weather up explaining the relationship between freshness and superio r taste to consumers. Pepsi Foods International and Pepsi -Cola International merge, creating the PepsiCo Foods and Beverages Company. 1995--In a new campaign, the company declares "Nothing else is a Pepsi" and takes top honors in the year's national advert ising championship. 18
1996--In February of this year, Pepsi makes history once again, by launching one of the most ambitious entertainment sites on the World Wide Web. Pepsi World eventually surpasses all expectations, and becomes one of the most landed and copied, sites in this new media, firmly establishing Pepsi's presence on the Internet. 1997--In the early part of the year, Pepsi pushes into a new era unveiling of the Generation Next campaign. Generation Next everything that is young a nd fresh; a celebration of the creative is about the kind of attitude that challenges the norm with new every step of the way.
with the is about spirit. It ideas, at
PepsiCo. Announces that, effective October 6th, it will spin off its restaurant division to form Tricon Glo bal Restaurants, Inc. Including Pizza Hut, Taco Bell, & KFC, it will be the largest restaurant company in the world in units and second -largest in sales. 1998--Pepsi celebrates its 100th anniversary. PepsiCo. Chairman and CEO Roger A. Enrico donate his sal ary to provide scholarships for children of PepsiCo employees. Pepsi introduces Pepsi One - the first one calorie drink without that diet taste! 2000--Although Pepsi is a great place to work, Steven Truitt (aka 'struitt') takes his skills and hard work elsewhere (for more money of course!), therefore putting an end to his Pepsi page! For
More information about Pepsi, choose a search engine and search for 'Pepsi' or visit www.pepsi.com or www.Pepsi Co.com.
As an MNC, on the globe, Pepsi Foods Ltd is one of the largest soft drink companies in the world with its head quarters in New York. 19
BRANDS OF COMPANY
20
21
.
22
23
Structure of bottling plant
COBO
FOBO
There are 43 bottling plants have exist in different parts of India. From which 15 bottling plants are company owned such as COBO & 28 bottling plants are franchise based like FOBO.
COBO:Cobo stands for company owned bottling Operations, the company has total control of its decisions & the implementation but it has to invest its own money on plant and machinery, glass & infrastructure. There are 3 bottling in UP which is based on COBO. 1) Jainpur 2) Sathariya 3) Bazpur
Jainpur plant covers Lucknow & Kanpur. Sathariya is serving Gorakhpur, Allahabad & Banaras. Bazpur plant gives their services to Bareilly. Jainpur is the third largest COBO plant in India. It has three production lines, mentioned as under. Kettner – 600 Bottles Per Minute (BPM) - Carbonated Soft Drink (CSD) 24
Sasib- 400 Bottles Per Minute (BPM)- Carbonated Soft Drink (CSD)-Multi serves Slice Line – 200 Bottles per Minute (BPM) The COBO structure is as under. Pepsi Food Limited (PFL) PepsiCo India Holding (Production &Plant) PepsiCo India M k t (Support Infrastructure, Marketing Sales& distribution) In U.P. there are six warehouses at the following places.
1) ALLAHABAD 2) BANARA 3) BAREILLY 4) GORAKHPUR 5) KANPUR 6) LUCKNOW
FOBO:Fobo stands for franchise Owned Bottles Operations in India Pepsi has franchise. In case the company supplies its soft drink concentrate to its bottle syrup. Pepsi has taken a more capital-intensive route of owning and running its own plants alongside those of its franchises. Getting into Fobo has helped PepsiCo on several fronts. First, it has enabled Pepsi to focus on marketing operation as much as it has an operational front. Another gain of (bottles) & infrastructure the cost burden has been reduced.
25
The FOBO structure is as under. Pepsi Food Limited (PFL) Syrup Franchise (Bottlers) Franchise invest in plants & machines, Glass (Bottles) Truck & Infrastructure PepsiCo India Marketing Co. (Sales & Marketing) There are FOBO’s in many cities in India some of them are at:
AGRA
GOA
BIHAR
DELHI
BHUBNESHWAR
NAGPUR
HYDERABAD
PUNJAB
26
PRICE LIST OF PRODUCTS
PEPSI
MIRINDA
MOUNTAIN DEW
7 UP
SLICE
200 ML
Rs.8
300 ML
Rs.10
250 ML
Rs.15
600 ML
Rs.20
2 LTR. 200 ML
Rs.55 Rs.8
300 ML
Rs.10
250 ML
Rs.15
600 ML
Rs.20
2 LTR. 200 ML
Rs.55 Rs.8
300 ML
Rs.10
250 ML
Rs.15
600 ML
Rs.20
2 LTR. 200 ML
Rs.55 Rs.8
300 ML
Rs.10
250 ML
Rs.15
600 ML
Rs.20
2 LTR. 250 ML
Rs.55 Rs.10
600 ML
Rs.22
1.25 LTR. 200 ML
Rs.40 Rs.10 27
NIMBOOZ
200 ML
Rs.10
350 ML 200 ML
Rs.15 Rs.15
TPOPICANA
600 ML
Rs.30
AQUAFINA
1 LTR.
Rs.12
28
VISICOOLER PLAN-O-GRAM
Introduction of Plan -O- Gram
PepsiCo visi plan-O-Gram has its own importance. It focuses on the all brands of Pepsi. It is also known as brand Execution. It is also very useful to identify and choose the brand for the customer. In this plan –o- gram the brands are kept in a order in visi cooling equipments. There are different types of visi cooling equipments and for each type of visi different types of plan-o-gram is used. These different types of plan-o-gram are as following.
THE SEQUENCE PLANOGRAM–
P 7 O D S
OF
BRANDS
ACCORDING
TO
Pepsi 7up Orange(mirinda) Dew Slice
29
PLAN-0-GRAM FOR 3 SHELF VISI COOLER DISPLAY
30
PLAN-0-GRAM FOR 4 SHELF VISI COOLER DISPLAY
31
PLAN-0-GRAM FOR 5 SHELF VISI COOLER DISPLAY
32
PLAN-0-GRAM FOR OPEN CHILLER
33
PLAN-0-GRAM DISPLAY
FOR
DOUBLE
DOOR
VISI
COOLER
34
LIMITATIONS OF PLAN-O-GRAM
Most of the Retailers are unaware about the benefits of Planogram (POG) so they are not taking much interest in this activity. All of the retailers having very keen interest in Visicharging but many of them don’t care about VIsi-purity. Because they are putting other local brands of eatables for more profit.
SUGGESTIONS
It must be responsibility of Pre sales representative (PSR) & other officials of PepsiCo to motivate the shopkeeper about the benefits of Visi-purity & charging. Planogram (POG) is also included in that conversation.
35
RESEARCH METHODOLOGY INTRODUCTION Marketing Research is a process of collecting and analyzing marketing and ultimately to arrive at a certain conclusion. Aradhana Soft Drink Company Is a concern which is marketing the product having different brands Thus a survey method of marketing research is essentially exploratory in nature. Thus I opted for “Questionnaire” method for conductive survey about the marketing of Pepsi through retailer in Kanpur (south) region.
Importance of marketing Research.
Marketing Research have its importance not only for consumer market; it also effectively to the producer of goods and services The use of marketing research in consumer market may be explained on the basis of following services by it: -
1.
It ascertains the position of a company in specified Industry.
2.
It indicates the present future trend of industry and points out how the company’s affairs are to be turned up.
3.
It helps in development &
introduction of new
product.
36
Since the study is exploratory in nature. A personal interview with each retailer was aid of questionnaire was selected
as
the
method
of
obtaining
data
the
questionnaire to use in Kanpur to facilitate tabulation and analysis of data were designed for segment retailers. Field experience showed that listing the respondents to the questionnaire failed to touch upon certain parameters and it was found necessary to let the respondents have free had and let the designed information filter lengthy discussion, through some aspects of questionnaire adequately touch upon.
The questionnaire was prepared by researches and the researcher also filled himself interviewing the retailers these himself interviewing the retailers. For interviewing the retailers these himself interviewing the retailers. For interview as far as those languages were used which they can understand clearly; such as Hindi &English. The researched used to stand in front of the randomly chosen retail outlet. This is a comprehensive master plan of the study undertaken, given a general statement of the method used and procedure followed. Since the study is both exploratory and descriptive in nature. A personal interview with each retailer with each retailer with the help of questionnaire was selected to obtain data. The questionnaire to be used in Kanpur (south) only.
37
Data source:- The various source of information broadly divided in 2 categories. (a) Primary source:Source from where first hand information are gathered directly are called primary source and information thus collected is called primary data. In case of the above study the primary source was RETAILER. (b) Secondary source : The data that are collected for anther purposes already exist somewhere is called secondary data. With regard to my study the secondary sources where records of the company. Magazines and papers .
DATA COLLECTION METHOD.
The following methods are widely used for collection data. (1) Survey method. (2) Observation method. In
the
above
–mentioned
method.
Survey
and
observation method was mainly used for the undertaken topic. Survey method was mostly used for collection of data
through
personal
interview
with
the
help
of
a
framed questionnaire in case of retail outlets. Such as general
store.
Grocery
shop,
sweet
shop,
pan
shop, 38
restaurants
and
some
others.
As
far
as
retailers
are
concerned .Besides survey. Observation method was also used to get data by watching the retailer . RESEARCH instrument
INSTRUMENT : refers
to
means
by
In
this
which
regard
an
research
is
conducted. In this case of all the respondents’ questionnaire was used.
39
Data analysis & interpretation There are more than 150 outlets are exist in both area including Rawatpur & Ashok nagar but due to time constraint those outlets are given to me by sameer sir which are not performing better up to the mark of PepsiCo’s guidelines. In Ashok nagar area only 27 outlets are assigned to me & remaining outlets I had visited were under the aegis of Rawatpur.
Areas covered by me are 1) Rawatpur 2) Ashok nagar
No. of outlet visited by me in Ashok nagar
Sr.no. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
outlet name
Customer ID Chawla corner 7935 shesh pan shop 4378 Anurag res. 1609 Nirmal bakery 4380 Agrahari canteen 4354 Laxmi t stall 4355 Hotel celebration 7318 Kanha cont. 7063 Balaji bakers 5075 Gupta stationers 7939 Medical college 4281 canteen Baba bhojnalaya 1291 Aijaz PCO 7886 Adil cold drink 7890 Bajpai gen store 7360 Vineet gen store 4407 Gupta jalebi 5900 Popular g/s 4411
outlet type
visi size eatery 220 convenience 165 eatery 320 eatery 330 eatery 330 eatery 250 eatery 320 eatery 320 eatery 285 grocery 285 grocery 285 eatery convenience convenience grocery grocery convenience grocery
315 400 280 280 220 570 340 40
19 20 21 22 23 24 25 26
Sunil g/s Nirdosh pan shop Monkey chaurasiya Anandeshwar jalpan Harsh book stall Parag dairy Ashoka bakery Laxman pan shop
1592 1539 1607
grocery 220 convenience 340 convenience 280
3678
eatery
280
4372 2485 4413 4369
eatery convenience eatery convenience
340 280 400 220
No. of outlet visited by me in Rawatpur
Sr.no.
outlet name
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Sanjay pan shop Ziyalal pan shop Nalanda hotel Ajanta restaurent Avishkar bakery Shivam fast food Vinod fast food Deepak PCO Ajay pan shop Chaurasiya PCO Maharana telecom Shani pan shop New meet g/s Pankaj pan shop Goldi gen. store Maa durga gen. store Maa laxmi PCO Hot n juicy Mayank PCO Bauwaa pan shop Rahul T stall Ravi pan shop Eye hospital canteen
Customer ID 8765 4356 234 2345 8453 7754 2499 8331 5645 600 5676 8046 2342 2324 4564 1890 8015 7854 4562 654 8025 5673 356
outlet type
visi size
convenience convenience eatery eatery convenience eatery eatery convenience convenience convenience convenience convenience grocery convenience grocery grocery convenience eatery convenience convenience eatery convenience eatery
280 280 340 340 570 280 340 220 280 570 280 340 280 280 340 280 280 340 280 280 280 300 340 41
24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67
Jai gurudev gen. store Om prov. Store Baba pan shop Raj pan shop Brijwasi sweets Prakash sweets Sanjay T stall Super confectionary Honey PCO Guddu gen. store Chandreshwar bakery Babli pan shop Balaji sweets Meena mishthan Deepak sweets Munna PCO Vinod pan shop Sharma T stall Shekhar telecom Aman kool center Karan cold drink Rajesh pan shop Vern cold drink Dewa food plaza Vijay hotel Bhagwan das Rakesh prov. Store Awashti prov. Store Chander pan shop Raju sweets Dharamveer pan Arbaaj cold drink Lucky hotel Sanjay pan shop Angad pan shop Siddiqui gen store Mani PCO Mahoba pan shop janta pan shop Sanjay kirana store Chaurasiya treat Akeel cold drink Ashol T stall Dhannu T stall
2868 4564 7645 6788 5667 1354 7697 687 7243 3126 6756 7270 2487 4543 6784 1049 3354 233 531 7771 2569 2342 5674 224 600 846 1220 1458 1991 2123 5838 3867 4403 4364 4392 4464 4476 4596 4626 4465 5743 5766 5903 4456
grocery eatery convenience convenience eatery eatery eatery convenience convenience eatery convenience convenience eatery eatery convenience convenience convenience eatery convenience eatery convenience convenience convenience eatery eatery convenience grocery grocery convenience eatery convenience convenience eatery convenience convenience grocery convenience convenience convenience grocery eatery convenience convenience eatery
340 340 280 300 400 300 300 340 280 280 340 220 300 340 280 280 220 300 220 340 340 340 220 340 400 280 280 300 220 340 280 280 400 280 220 280 220 340 300 320 570 280 280 220 42
68 69 70
Kesarwani pan Gupta gen store Shanshaw icecream
7238 7272 7426
eatery grocery eatery
340 300 400
Outlet status before my visit
Date
Area
20/06/09 22/06/09 23/06/09 24/06/09 25/06/09 26/06/09 27/06/09 29/06/09 30/06/09 1/7/09 2/7/09 3/7/09 4/7/09 5/7/09 6/7/09 7/7/09 8/7/09 9/7/09 10/7/09 11/7/09 14/07/09 15/07/09 16/07/09 17/07/09 18/07/09 20/07/09 21/07/09 22/07/09 23/07/09 24/07/09 25/07/09 27/07/09
Rawatpur Rawatpur Rawatpur Rawatpur Rawatpur Rawatpur Rawatpur Rawatpur Ashok nagar Ashok nagar Ashok nagar Ashok nagar Ashok nagar Ashok nagar Ashok nagar Ashok nagar Ashok nagar Ashok nagar Ashok nagar Ashok nagar Ashok nagar Ashok nagar Ashok nagar Ashok nagar Rawatpur Rawatpur Rawatpur Rawatpur Rawatpur Rawatpur Rawatpur Rawatpur
outlet covered 20 27 18 23 18 17 18 17 26 18 15 10 11 11 11 11 26 20 18 24 19 20 20 26 20 19 23 20 22 24 20 18
no. of visi pure 12 15 9 11 10 10 11 11 12 6 8 5 4 6 8 11 20 15 15 20 16 15 16 20 17 15 18 14 15 19 17 16
no. of avg. visi charging 10 12 8 10 7 9 9 10 10 7 7 6 5 6 9 11 16 13 12 15 13 14 16 17 14 17 15 13 14 17 16 13
avg. sku per visi 10 10 9 10 7 8 9 9 12 10 9 11 9 10 11 19 12 12 13 12 12 13 13 12 11 12 12 10 11 13 12 13 43
28/07/09 Rawatpur 29/07/09 Rawatpur 30/07/09 Rawatpur
19 20 15
18 18 15
15 15 14
12 12 12
Outlet status after my visit
Date
Area
outlet covered
20/06/09 22/06/09 23/06/09 24/06/09 25/06/09 26/06/09 27/06/09 29/06/09 30/06/09 1/7/09 2/7/09 3/7/09 4/7/09 5/7/09 6/7/09 7/7/09 8/7/09 9/7/09 10/7/09 11/7/09 14/07/09 15/07/09 16/07/09 17/07/09 18/07/09 20/07/09 21/07/09 22/07/09 23/07/09 24/07/09 25/07/09
Rawatpur Rawatpur Rawatpur Rawatpur Rawatpur Rawatpur Rawatpur Rawatpur Ashok nagar Ashok nagar Ashok nagar Ashok nagar Ashok nagar Ashok nagar Ashok nagar Ashok nagar Ashok nagar Ashok nagar Ashok nagar Ashok nagar Ashok nagar Ashok nagar Ashok nagar Ashok nagar Rawatpur Rawatpur Rawatpur Rawatpur Rawatpur Rawatpur Rawatpur
20 27 18 23 18 17 18 17 26 18 15 10 11 11 11 11 26 20 18 24 19 20 20 26 20 19 23 20 22 24 20
no. of no. of avg. visi pure visi charging 18 13 23 16 15 12 17 17 15 14 15 14 16 13 16 13 22 18 10 9 10 9 9 7 9 9 10 9 11 10 11 11 25 21 18 15 17 15 22 18 18 15 19 16 19 16 24 20 19 17 19 18 22 20 16 14 20 18 22 20 19 17
avg. sku per visi
13 14 10 11 9 10 9 9 13 11 11 12 10 11 15 20 13 14 14 13 13 13 13 13 12 13 12 11 12 14 12 44
27/07/09 28/07/09 29/07/09 30/07/09
Rawatpur Rawatpur Rawatpur Rawatpur
18 19 20 15
18 19 20 15
17 16 18 14
13 13 14 14
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Breakup of size Visi-cooler Availability of Visi-cooler at different outlet of Ashok nagar. Total no. of Visi-cooler= 57
Visi size 220 lt. 280 lt. 340 lt. 570 lt. 1200 lt.
5%
5%
No. 6 29 16 3 3
11%
220 lt. 280 lt. 28%
340 lt. 570 lt. 1200 lt. 51%
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Availability of Visi-cooler at different outlet of Rawatpur. Total no. of Visi-cooler= 70
Visi size 220 lt. 280 lt. 340 lt. 570 lt. 1200 lt.
No. 3 44 19 4 4
2%
5%
5%
220 lt. 280 lt.
25%
340 lt. 570 lt. 63%
1200 lt.
47
Day wise improvement of Visi purity & charging.
Day 1 to day 8 Outlet status before my visit
60 61
57
54
52
50 45 4000%
53
43
40
Visi-purity
34
Visi-charging Avg. no of sku
day 2
day 4
day 6
day 8
Outlet status after my visit
65 65 60 61 55 5000%
63
60
55 45
55
42 Visi-purity Visi-charging Avg. no of sku in visi
day 2
day 4
day 6
day 8
48
Day 9 to day 16
Outlet status before my visit 60 60
60 56
55
53 4400%
44
46
55
45 35 Visi-purity Visi-charging Avg. no of sku
day 10
day 12
day 14
day 16
Outlet status after my visit
72 70 65 65 60
70 64
61
67 60
55
Visi-purity Visi-charging Avg. no of sku in visi
70% day 10
day 12
day 14
day 16
49
Day to 17 to day 24 Outlet status before my visit
73
70
70 71
60 55
75
79
56
54
51 Visi-purity Visi-charging Avg. no of sku
50% day 18
day 20
day 22
day 24
Outlet status after my visit
84 79
83 83
80
75
70
69 64
62 56
Visi-purity Visi-charging Avg. no of sku in visi
75% day 18
day 20
day 22
day 24
50
Day 25 to day 32 Outlet status before my visit
83 75
79
60
58
56
86 86
84 83
58
Visi-purity Visi-charging Avg. no of sku
75% day 26
day 28
day 30
day 32
Outlet status after my visit
80
89 87
86 85
84 82
70
69
65
60 Visi-purity Visi-charging Avg. no of sku in visi
80% day 26
day 28
day 30
day 32
51
Day 33 to day 40 Outlet status before my visit
78
90 89
89 87
85 85
79
76
75 70
Visi-purity Visi-charging Avg. no of sku
83%
day 34
day 36
day 38
day 40
Outlet status after my visit
87
85
90
75
93 93
90 89
83
78
75
Visi-purity Visi-charging Avg. no of sku in visi
83% day 34
day 36
day 38
day 40
NOTE:- All the numeric value above the column are in %age. 52
Findings of Visi-purity & charging.
No. of outlet visited by me in Rawatpur & Ashok nagar =96 Status before my visit No. of Visi-pure = 22 Avg. No. of Visi-charging = 60% Avg no. of SKU per visi = 10
Status before my visit No. of Visi-pure = 81 Avg. No. of Visi-charging = 85% Avg no. of SKU per visi = 18
Findings of the study After visiting more than 90 outlets I have found that there is very close competition between PepsiCo & its rival Coca cola at some of the very crowded market place like Ashok nagar crossing & Rawatpur station premises. But after very close competition PepsiCo (65%) is very far ahead from its rival Coca cola (35%) in terms of market share in Ashok nagar crossing & Rawatpur station premises. By asking some question from consumer at the time of visi-purity about newly launched product Nimbooz. Most of the respondents including retailers had said that if this 53
flavor would contain a little quantity of gas then it would be more attracting brand. I have also found the main reason of visi impurity is water pouch, which is more profitable to retailer in comparison to PepsiCo’s product. According to Visi strength in market like Ashok nagar & Rawatpur I have found that visi size of 280 lt. is in more demand among the retailer. In Ashok nagar area out of 26 outlet, which I assigned to work 40% outlet selling both rival brands, including coke & Pepsi. 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. I have also found that PepsiCo’s brands have higher market share than coke in brand wise segment, but is Thumsup, which is making the major different in the market. PepsiCo’s Nimbooz brand is growing very rapidly in newly launched segment & it is going to be a future threat to Limca. There was a very huge shortage of Mountain Dew & Slice in both area including Ashok nagar & Rawatpur from 20th June to 10th July.
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Suggestion of the study. 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 departure on time so that there would be no delay in delivery of product. From this step retailers will be happier. 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 shopkeepers 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.
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
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LIMITATIONOF THE STUDY
Since the product under study was consumer goods, which
requires
a
large
sample
to
have
a
correct
study, a sample size of 100 Respondents was too small
for
Researcher
it. to
But have
time a
&
large
money
did
sample.
not
And
allow
also
to
manage a large sample wo uld also be difficult by Researcher alone. Mostly stress was given on primary data, as it was difficult to collect Secondary data from organization & distributors. Weather conditions were not favorable. Some of the respondents were not co-operative and many of them seem to be having no interest. The study has not been intended on a very large scale, have the possibility of errors, which cannot be ruled out. It is impossible to find out the problem faced by the PepsiCo in a time span of 2 months. Area was specified. It is extremely difficult to persuade retailer to respond to questionnaire. The retailer knows us as people from Pepsi there by the responses could have been biased. The company does not provide any financial assistance. The time allowed for the project was short. It was impossible to study deeply in that short period.
56
There was the staying place hearer to local market. Region i.e., Urban area therefore the result are applicable to Kanpur region only these findings may not have much re levance in other regions of different from rest of the country
CONCLUSION
1)
The study reveals that the market share of Pepsi in Rawatpur & Ashok nagar area is 61% as compared to Coca-Cola is 39%. Thus Pepsi having a clear edge over Coca-Cola.
2)
Services after sales of Pepsi is not up to satisfaction level is because, I found that few retailers are active in display of Visi coolers and advertisement glow sign boards provided by the company. But in few outlets display system is out of order or not properly working for
the
last
management
few
months
being
casual
or in
a this
year,
thus
area.
The
Pepsi rival
company Coca-Cola being very quick in this area.
3)
Number of route vehicles for delivery of goods is less than the required one for proper coverage of whol e area
of
Kanpur.
Thus,
just -in-time
and
efficient
delivery is affected.
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4)
Comparative advantage of Pepsi -field sales personals are there to keep an eye on the whole market and to approach
where
the
problem
arises.
Two
way
communications occurs for transpar ency in business. Whereas Coca-Cola Company is week in this fields.
5)
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.
6)
The study reveals that there is lack of POP (point -ofpurchase) materials in few areas of Kanpur region.
7)
The study reveals that the commitment of supplying gift items or incentive is not carried out on scheduled time.
8)
The study reveals that in prompting soft drinks in a market,
advertising
media
like
glow
sign
boards,
hoardings, painting etc. plays a vital role in grabbing interest of an outlets to sell soft drinks. Some areas of Kanpur region are not equipped somehow with these advertising media. This media of adver tising is used by both the companies (Pepsi & Coca -Cola) only for its consumer. This helps the company to let the consumer know what their product is all about to an edge its competitors. 9)
The study reveals that the Cola flavor of Pepsi is very mild in taste as compared to the Cola brand of coca-cola, Thumps up.
58
SWOT ANALYSIS STRENGTHS:
PepsiCo’s business segment is comes under FMCG sector so the demand of the product will never be slump. PepsiCo having a good brand perception in consumers mind. Promotional schemes given by PepsiCo to the consumer as well as retailers are very good. Some of the popular schemes are cash money back scheme on slice, 7up & Nimbooz. Retailers are also get benefited from various scheme provided by PepsiCo. Some of the scheme like product display & Club membership are very popular among the retailer. PepsiCo having very large and strong distribution network in comparison to their rival Coca cola.
Effective team management from Top level to lower level. PepsiCo Chairman & CEO Indra k. Nooyi. leads the company in a better approach & won many awards. PepsiCo team having dedicated person & professional attitude. 59
PepsiCo launch new product time to time as according to consumers taste & preferences like it’s newly launched Nimbooz.
PepsiCo covered more area rather than its competitor coke. In comparison to Coca-Cola’s red color, which is brighter and have more visibility Pepsi’s blue color provide relax & same as sky. Advertisement plays a very vital role to know about brands popularity among the consumer. PepsiCo endorses popular celebrity time to time as their brand ambassador who are more popular among youth, teenagers & kids. like Sachin Tendulkar, Shahrukh khan, John Abraham, Katrina kaif, MS dhoni etc. Company distributed more Merchandising asset like Visi cooler, Rack, Umbrellas, Glow sign boards(gsb), banner , poster Rather than its competitor coke.
WEAKNESS: Retailers always complaining about PepsiCo’s official at their outlet.
the
proper
visit
of
In the peak season (summer) there are some distribution problem arises due to excess demand of the product & Irregular delivery by DA. PSR are not concentrating on the merchandising of product which is very necessary for boosting up of sales. In this matter coco cola is far ahead. Agency routes have many loopholes while distributing product to the retailer. Retailers always complaining that they are not getting scheme & benefits by the agency. Irregular delivery of product is also a major problem faced by the retailers. Except some PSR & DA they are not paying much attention towards the fulfilling of commitment made by them to the retailers & they are also not visiting to the retailers who are having their outlets in the streets far from the main road. 60
OPPORTUNITIES:
PepsiCo should sort out the problems of ratailers & find appropriate solution for them to make better brand image in the consumers mind. PepsiCo can also improve the delivery system & enlarge their route in every street of the city according to the feedback of retailers. With the help of this it can achieve their objective by running campaign “HAR STREET KO JEET” PepsiCo also have an opportunity to increase the production of its very popular brand “Mountain Dew” & “Slice” because these brands alone face a huge stock problem during this summer. To make some Changes according to feedback of consumer that which type of taste they want to prefer. PepsiCo can increase their brand awareness among the people By Organizing more promotional program/activity in those area where coke is dominant one. With the help of all the opportunity that is given above PepsiCo can increase their markets share in Kanpur.
THREATS:
There is no proper policy of distributing the merchandising assets of the company to the retailers. Competitors new brand entry in the market near future.
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BIBLIOGRAPHY
REFRENCE BOOKS
Philip
kotler,
Marketing
Management,
11th
edition,
prentice hall of India Pvt Ltd. Ramaswamy and Namakumari, Marketing Management, 3rd Edition, Macmillan India Ltd. G.C. Beri, Marketing Research 3rd edition, Mc Milan India Ltd. C.R. Kothari, Research Methodology.
Websites:
www. Pepsico.com www.Pepsizone.com www.pepsi.com www.pepsiindia.com www.wikipedia.com
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