Sales & Promotion of Pepsi 2
Sales & Promotion of Pepsi 2
Sales & Promotion of Pepsi 2
PROJECT REPORT OF
SALES & PROMOTION
OF
IN KANPUR AREA
FOR THE PARTIAL FULLFILLMENT FOR THE AWARD OF
DEGREE
MASTER OF BUSINESS ADMINISTRATION
( Vinayaka SUBMITED
mission University
BY: )
Lalit Kumar
Reg. No. 204033080392
1
July 2010
Study Center Code UP017
2
CERTIFICATE
This is to certify that Project entitled Sales And Promotion of Pepsi is the bonafide record
of independent project work done by Anurag Kumar Reg. No.
204033080391, under
My super vision during August 2009 to 2010 submitted to the directorate of
distance education Vinayaka Mission University in partial fulfillment for the award of
3
DECLARATION
I hereby certify that the survey, data collection and analysis work related to
Summer Training Project Report on “sales and promotion of Pepsi” has been carried
4
SALES & PROMOTION
OF PEPSI
5
6
CONTENTS
DESCRIPTION PAGE NO
1.1 Objective
• Organisation Structure
1.4 Credentials
4.1 Conclusion
4.2 Recommendation
4.3 Limitation
5.1 Appendix
Questionare
8
9
ACKNOWLEDEMENT
A task undertaken without offering prayers to almighty and talking blessings from the
elders is not a good beginning. Likewise the work completed without acknowledging the
assistance to those who were always by my sides to make my efforts fruitful in the task
left incomplete.
In the beginning, I would like to express my sincere thanks to my Institute teachers for
giving me an opportunity to take the practical experience of working life.
I convey my sincere thanks to Mr. Sameer Wali ADC (Admin), Pepsico holding Pvt.
Ltd. ChandraNagar Kanpur has been providing me the proper guidance and current
information throughout this summer training project effectively and efficiently has been
completed at the time of submission.
I would also like to pay thanks to all my classmates and friends and my family members
for co-operating with me and helping me to complete the project.
Anurag Kumar
MBA
Reg. No.
204033080391
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Executiv
e
Summar
y
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EXECUTIVE SUMMARY
The distribution network of PEPSI is well known for its efficiency but company
constantly strives for the betterment of their distribution network system. Emphasis of
our study was to focus on the customer of company i.e., the retailers.
development and betterment of this system. The distribution system not only comprises
the movement of the products but also incorporates the merchandising of the product,
The project incorporates the analysis of the performance of PEPSI and probing
into opportunities of increasing the market share in KANPUR . The entire process had to
Purpose of decision-making. The project was that of market research with surveys
and observations as its major phases with the objective of gathering of all important
PEPSI boasts of having the maximum market share in the beverage segment in
KANPUR and is in constant process for the betterment of its product performance and
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Introductio
n
13
INTRODUCTION
senior officials of PEPSI for the purpose of amendments in the pre-existing distribution
network in order to review and strengthen the routes. The findings of the project are very
crucial for the increment of the market share of PEPSI in the KANPUR & Beverage
Market.
Though the process is an ongoing one but the decisions have to be taken on a
strong base, supported by facts and figures and that too on papers. This support can only
be provided with the help of an extensive and through analysis of the market and the data
collected thereof.
The Marketing Development Co-ordinator who was the lead or the project head
delivered the objectives of the project to us expressly and we had to submit the day report
to him along with the draft report. He was the in charge of the project and gave
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Objectiv
15
To analyze, interpret and study the entire beverage market of KANPUR
Comparative study of the various brands, packs and flavors available in the
market.
Analysis of the strong and weak point of the competitors products and compare it
with PEPSI.
To assess the reach and feasibility of the product and give the output for further
investment for enhancing the distribution network along with assessing the
Assess the promotional measures in the context to the sales of PEPSI and
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As obvious that any company is concern with the increase in sales of its products,
our project was in line with the companies’ objectives and all steps incorporate in the
and policies which were quite material for the efficient and effective results and
The market research was conducted in compliance of the given guidelines delivered
1. Profitability
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2. Improvement
3 Sales
18
Compan
y Profile
19
THE COMPANY PROFILE: PEPSI CO.
Caleb Bradham a New Bern N.C druggist who formulated Pepsi Cola founded
Pepsi Cola Beverage business at turn of the century. Pepsi Cola Company now produces
and markets nearly 200 refreshment beverages to retail, restaurants and food service
customers in more then 190 countries and territories around the world and generates
New York.
Pepsi Co. is the world leader in the food chain business. It consists of many
companies amongst which the prominent ones are Pepsi Cola, Frito-lay, Pepsi food
international, Pizza-hut, KFC and Taco bell. The group is presently into three most
The beverages segment primarily market it Pepsi diet, Pepsi Mountain Dew and
other brands worldwide and 7UP outside the U.S.market. They are positioned in close
The Snacks food divisions manufacture and distribute and markets others snacks
worldwide.
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The restaurant segment primarily consists of the operations of the worldwide
Pizza-Hut, Taco bell and KFC chains PFS, PepsiCo’s restaurant distribution operation,
When Coca Cola changed its formula in 1985, Pepsi Stepped up its competition
with its long time archrival claiming victory in the Cola-wars. Coke and Pepsi expended
their rivalry to tea in 1991 when Pepsi formed a venture with No.1 Lipton in response to
“Pepsi Co is going blue”. This was the new color adopted by the company to
strengthen its brand globally. Also the company is changed colors from Generation X to
GENERATION NEXT.
Although Pepsi holdings over the years have become diverse in such fields as the
Snacks industry and Restaurants industry, this portfolio will discuss its core business and
its highly successful business of Beverages. The soft drink industry customer base is
probably the widest and deepest base in a world that is flooded with some many
categories. According to Beverage Digest the customer base for soft drinks is a whopping
95% of regular users in the United States. This represents a large field of potential
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Pepsi prefers to segment itself as the beverage choice of the “New Generation”,
in Pepsi’s advertising campaigns are referring to the markets that marketers refer to as
They have high expectations in life and are very mobile and active. They adopt a lifestyle
of living for today and not worrying about long-term goals. Those Pepsi’s main emphasis
on this segment they also have a focus on the 12 to 18 year old market. Pepsi believes if
they can get this market to adopt their product then they could establish a loyal customer
for life.
Pepsi Cola throughout its 100 years of existence has developed much strength.
One of the strengths that have developed Pepsi into such a large corporation is a strong
franchise system. The strong franchise system was the backbone of success along with a
great entrepreneur spirit. Pepsi’s franchise system and distributors is credited to bring
Pepsi from a 7,968 gallons of soda sold in 1903 to nearly 5 billion gallons in the year of
1997.
Pepsi also has the luxury to spend 225 million dollars in advertising a year. This
enormous ad budget allows Pepsi to reinforce their products with reminder advertising
and promotions. This large budget also allows Pepsi to introduce new products and very
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Pepsi also has had the good fortune of making very wise investments. Some of the best
investments have been in their acquiring several large fast food restaurants. They have
also made wise investments in snack food companies like Frito Lay, which at present
time is the largest snack company in the world. Probably high on the list of strengths is
Pepsi has four soft drinks in the top ten beverages in the world. These brands are
Pepsi, Mountain Dew, Diet Pepsi, and Caffeine Free Diet Pepsi. Some other strong
brands are All Sport, Slice, Tropicana, Starbucks, Aquarian and a license agreement with
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Organizational Structure
Chairman
President
Unit Manager
TDM
ADC
Helper Helper
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Product
Profile
25
PRODUCT POSITIONING OF PEPSI CO.
These terms adopted in Pepsi’s advertising campaigns are referring to the markets
between the ages of 18 to 29. They have high expectations in life and are very mobile and
active. They adopt a lifestyle of living for today and not worrying about long-term goals.
Though Pepsi’s main emphasis is on this segment but they also have a focus on the 12 to
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The rich deep blue coloring represents eternal youthfulness and openness.
Marketing plans like “Yeh Dil Maange More”, “Got Another Pepsi”, “Ye
Pyass Hai Badi” have made Pepsi one of the coolest brands recognized among teens
in the top five and the only beverage product in this category.
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PEPSI-COLA LOGOS
The Pepsi-Cola logo has changed many times over the years. Here's a
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2009
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Slogans and Logos
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1949 Why Take Less When Pepsi's Best?
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1984 The Choice of a New Generation
1987 America's Choice
1989 A Generation Ahead
1992 Gotta Have It
1993 Be Young, Have Fun, Drink Pepsi
1995 Nothing Else is a Pepsi
2003
2004
a2005
2006
2009
Youngistan ka wao
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STRENGTH & WEAKNESSES
OF PEPSI CO.
Pepsi Cola throughout its 100 years of existence has developed much strength.
One of the strengths that have developed Pepsi into such a large corporation is a strong
franchise system. The strong franchise system was the backbone of success along with a
great entrepreneur spirit. Pepsi’s franchise system and distributors is credited to bring
Pepsi from a 7,968 gallons of soda sold in 1903 to nearly 5 billion gallons in the year of
1997.
Pepsi also has the luxury to spend 225 million dollars in advertising a year. This
enormous ad budget allows Pepsi to reinforce their products with reminder advertising
and promotions. This large budget also allows Pepsi to introduce new products and very
Pepsi-Cola bottlers and food service customers. This includes some of the world's best-
loved and most-recognized advertising. New advertising and exciting promotions keep
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Pepsi-Cola brands young. The company manufactures and sells soft drink
products.
Pepsi also has had the good fortune of making very wise investments. Some of
the best investments have been in their acquiring several large fast food restaurants. They
have also made wise investments in snack food companies like Frito Lay, which at
35
Probably high on the list of strengths is Pepsi’s beverage line up. Pepsi has four
soft drinks in the top ten beverages in the world. These brands are Pepsi, Mountain
Dew, Diet Pepsi, and Caffeine Free Diet Pepsi. Pepsi also has the No.1 tea in the
United States, Lipton Tea. Some other strong brands are All Sport, Slice, Tropicana,
Pepsi Cola like any company has weaknesses. Ironically, the one strength that has
been credited for most of its success in the past has now become a weakness for Pepsi.
This former strength is the franchise system. The franchise system in Pepsi Corporate
view has become a liability. Pepsi in today’s market must be able to act as one instead of
The franchise system has become a hurdle to Pepsi because many of these
franchises have become very strong and will not be dictated by PepsiCo on how to
handle their operations. Some of these franchises are unwilling to support certain Pepsi
products and at times produce their own private label products that are in direct
Secondly the franchisees are not willing to make capital expenditures to keep up
with Coca-Cola who is a firm believer in reinvesting into their infrastructure (Coca Cola
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As mentioned earlier Pepsi has tried to elevate this problem by spinning off their
interest in fast food restaurants but at present time are still guilty by association to many
of the large fountain accounts. The franchise system has also affected fountain sales due
to the fact franchisees are not willing to buy expensive fountain equipment to place in
accounts mainly because the profit margin is so low and could take years to recoup their
Unfortunately for Pepsi they were a “Johnny Come Lately” into this arena. Pepsi
has tried to enter this market by trying to do in three years what took Coke 50 years to
do. This area will take years for Pepsi to mature simply due to Coke’s dominance in the
international market and the strong ties that Coke has developed with these markets and
their governments.
Pepsi customers buy nearly five billion gallons of soft drinks per year. Pepsi
customers buy their products because of taste, price, packaging and promotional factors
and of a wide variety of brands. Pepsi customers also buy their products due to the high
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Pepsi products are distributed to many outlets. For example, supermarkets where Pepsi
buys large shelf area and display areas so the customer can find them easier, viz,
Convenience stores, Restaurants, Movie theaters and almost and other conceivable spots.
Pepsi has a competitive advantage over Coke because of the image it portrays.
Pepsi promotes itself as the choice of the “New Generation”. Pepsi gets this advantage
by implementing such large marketing projects like “Project Globe”. This marketing
plan, which Pepsi spent 637 million dollars over five years, is to introduce the new rich
deep blue coloring of its packaging. The rich deep blue coloring represents eternal
youthfulness and openness. Marketing plans like this made Pepsi one of the coolest
brands recognized among teens in the top five and the only beverage product in this
category.
Another competitive advantage that Pepsi has is in their product Mountain Dew.
Mountain Dew has grown a staggering 74.1% over the last five years. Mountain Dew has
a 6.3% market share and has recently become the No.4 soft drink in America. At this
current pace Mountain Dew will be come the first non-cola to reach the 1billion gallon
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Pepsi also has an advantage as an innovator in their field. They are the first soft
drink makers to introduce a new one-calorie soda called Pepsi-One with, just approved
This new sweetener is slated to be a break through for diet soda in which it limits
the after taste associated with diet soda and brings a more cola taste to the product. Pepsi
has always been a strong No.2 against Coke and have become one of the world’s largest
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PEPSI-THE INDIAN EXPERIENCE
• Pepsi is one of the most well known brands in the world today available in over
160 countries. The company has an extremely positive outlook for India. "Outside
North America two of our largest and fastest growing businesses are in India and
China, which include more than a third of the world’s population." (PepsiCo’s
• This reflects that India holds a central position in Pepsi’s corporate strategy.
India is a key market for PepsiCo, and at the same time the company has added value to
Indian agriculture and industry. PepsiCo entered India in 1989 and is concentrating in
three focus areas – Soft drink concentrate, Snack foods and Vegetable and Food
processing.
• Faced with the existing policy framework at the time, the company entered the
Indian market through a joint venture with Voltas and Punjab Agro Industries. With the
introduction of the liberalization policies since 1991, Pepsi took complete control of its
operations. The government has approved more than US$ 400 million worth of
investments of which over US$ 330 million have already flown in.
team. Pepsi has 19 company owned factories while their Indian bottling partners own 21.
The two advertisements tags: ‘yehi hai right choice baby’ and ‘nothing official
about it’ immediately ring a bell- it’s got to be Pepsi.
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The advertisement tag ‘yehi hai right choice baby’ was the first
‘Hinglish’ slogan ever used in the in the Indian market. This slogan proved to be the
best suited one for Pepsi and it was a mega hit and at that moment of time.
Pepsi in a short span of its operations in India has found a place in the hearts and
minds of the Indian consumers. The success has primarily been due to the innovative and
passionate Indian team, which has been built over the years. Pepsi is a trendsetter
managed and run by Indians, where important decisions are taken locally.
Pepsi started its operations in India in 1989 and since then PepsiCo has set up a
Snack Foods & Beverages. In the mean time Pizza Hut and Frito Lay’s are the examples
Pepsi has 40 bottling plants in India, out of which 16 are company owned and 24 are
owned by Indian franchisees. One of the major players in franchisee is RKJ Group.
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The RKJ group is India's leading supplier of retailer brand Carbonated and Non-
Carbonated soft drinks, with beverage manufacturing facilities in India and Nepal. Its
experience in the beverage industry dates back to the sixties when it had the first
franchise at Agra
It has the license to supply beverages in the territories of Western U.P., part of
Karnataka and whole of Nepal. The group has in total 18 bottling plants in India & Nepal
and is responsible for producing and marketing 44% of Pepsi requirement in India.
This group has brought name and fame to the Pepsi as in all this regions Pepsi is
at the commanding position and in the mean this group has diversified itself into ice
cream, suiting and shirting’s, restaurants, beer plant in Mauritius & edible oil plant in Sri
Lanka
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PEPSI-COLA IN INDIAN SCENARIO
Since the entry of Pepsi-Cola to India in 1989, the soft drink industry has under
gone a radical change. When Pepsi-Cola entered, Parle was the leader with the
Thumps-up being its flagship brand. Other products offering by Parle included
Limca & Gold spot, another upcoming player in the market was, the erstwhile
for more aggressive marketing to sustain its market share. The chronology of the
• 1998: In September, final approval for the Pepsi Foods Ltd. Project granted by
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• 1990: In May, The government cleared the Pepsi-Cola project again but with a
• 1991: Pepsi-Cola extended its soft drinks business and reached at national scale.
• 1992: In January, Brito foods application is cleared by the FIPB. Pepsi-Cola and
Parle start initial negotiation for a strategic alliance but took break off after a
while.
• 1993: Pepsi-Cola launched “Slice and Teem” captured about 25-30% of the soft
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• 1997: Pepsi-Cola brought “Mirinda Orange” opposite to “Fanta”.
• 1999: Pepsi-Cola launched “Diet Pepsi” in can and 1.5 Lit. “PET” bottle for
• 2003: Pepsi-Cola launched “Pepsi Blue” to get the favour of world cup season.
• 2005: Pepsi-Cola launched Mirinda in “Straw Berry” flavour to get the favour of
movie Batman.
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PEPSI-COLA PHRASES
The Pepsi-Cola marketing phrase has also changed many times
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.
PROFILE
47
• GLASS BOTTLES
• DISPOSABLE CANS
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• PET JARS
FLAVOUR PACKS:
• MIRANDA ORANGE
ORANGE:
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MOUNTAIN DEW
• 7UP
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MANGO:
• SLICE MANGO
MINERAL WATER:
• AQUAFINA
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THE RKJ GROUP
It can be said with absolute certainty that the RKJ Group has carved out a special niche for
itself. Their services touch different aspects of commercial and civilian domains like those
of Bottling, Food Chain and Education. Headed by Mr. R. K. Jaipuria, the group as on
today can lay claim to expertise and leadership in the fields of education, food and
beverages.
The business of the company was started in 1991 with a tie-up with Pepsi Foods
territories in which brand and technical support was provided by the Principals viz., Pepsi
Foods Limited. The manufacturing facilities were restricted at Agra Plant only.
The group also became the first franchisee for Yum Restaurants International
[formerly PepsiCo Restaurants (India) Private Limited] in India. It has exclusive franchise
rights for Northern & Eastern India. It has total 27 Pizza Hut Restaurants under its
company.
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The group added another feather to its cap when the prestigious PepsiCo
“International Bottler of the Year” award was presented to Mr. R. K. Jaipuria for the year
USA. The award was presented by Mr. Donald M. Kendall, founder of PepsiCo Inc. in
the presence of Mr. George Bush, the 41st President of USA, Mr. Roger A. Enrico,
Chairman of the Board & C.E.O., PepsiCo Inc. and Mr. Craig Weatherup, President of
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Credenti
als
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MAJOR CREDENTIALS
1996-1997.
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LOCATIONS OF BOTTLING PLANTS OF
PEPSI IN INDIA
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Swot Analysis
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SWOT ANALYSIS
STRENGTH:
WEAKNESS:
3) Supply in certain area is very irregular and also route agents are not covering full
routes.
4) Poor signage and display is making the routes week for the sale of Pepsi.
5) Interpersonal relationship with the company officials and the route agent is not
satisfactory.
OPPORTUNITY:
1) It is observed that in some newly establishing areas many new outlets are opening
, Pepsi needs to concentrate on these new outlets and can gradually increase its
2) Large number of mix outlets can be changed to Pepsi exclusive and coke
exclusive to mix only by luring them good and efficient supply, glow sign and
cooling equipments.
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THREATES:
1) Coke is the only nearest competitor and it is catching up in the market penetration
2) Some local brands commonly known as kancha , Tip Top , Shine and the launch
of Catch soft drink a product of DS group are causing decrease in sale in some
areas.
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Research
Methodol
ogy
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RESEARCH METHODOLOGY
OBJECTIVE OF RESEAECH:-
The Main objective of research in this project was to get the detailed analysis
RESEARCH PROBLEM:-
To what extent does the penetration level of the PepsiCo product's and the
other merchandising objects like cooling equipments, Ice Boxes, Glow signs,
Dealer boards, Paintings and Racks leads the penetration of such things from,
Coca-Cola during the summer period in the period in the year 2008 in Kanpur
districts and Its rural area and urban area, distributed via direct and indirect
routes. What were the factors responsible for this level of penetration?
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TYPE OF STUDY:-
Primary study.
RESEARCH DESIGN
observed and how the information and data gathered are to be analyzed.
SAMPLE DSSIGN:-
For the project we used non-probabilistic sampling that can also be termed as
The data collected for the project was primary data. The data was collected
investigation. The interview was very structured because we only ask the
Types of data
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1. Primary data
2. Secondary data
The entire project was divided into five phases and each phase had its individual
significance and supplemented each other. The process had to be started from the grass
root level and it was very important to understand the market for this FMCG product,
A. Route Riding
B. Retail Tracking
C. Corporate Tracking
The entire process was more of a Descriptive Research type and incorporated a
formal study of the specific problems faced by most FMCG companies an exploring the
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opportunities in the untapped market. The survey was conducted on the basis of
PEPSI product preference and evaluation of sales forecast in the new and
measures. The data collected had to be systematically arranged, analyzed and reported in
The observation approach was adopted in the process by gathering the data
essential and material for the decision-making and with clear objective of increasing the
market share of PEPSI in the KANPUR market. Customer preferences and satisfaction
was also important in assessing the market share but that was very clear that customers
generally do not have loyalty towards the product in the Beverage industry rather what
matters the most is the product availability which will be discussed later.
All the phases mentioned above have been discussed along with the observations,
problems, and other dimensions which have been encountered and experience in detail in
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A. ROUTE RIDING :
The Beverage Industry or to be more specific, the Soft Drinks Industry has one of
the most active network in term of its production, supply, distribution, marketing,
consumption and also personal relations at the very second level of its distribution
network. That is the reason why it is sometimes said to be “Very Fast Moving
Consumer Goods”.
Due to the above stated reason it becomes very essential to study and analyze the
market of these products from the grass root level. So in the Soft Drinks Company as
PEPSI, route riding becomes the first and foremost step in any of the activities to be
During the very initial days we were required to exercise Route Riding, the
• To understand and analyze the market in its raw and basic form.
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• To undertake the comparative study of the various brands and flavour
market and the market share and growth potential of each brand individually.
Route Riding is basically accompanying Pepsi Vans along with the route agents
and understanding the way they conduct merchandising activities right from the charged
vans leave the depot to the entry of empty vans back to the depot. The Route Riding
phase was for the initial twenty days in which we had covered twenty different routes.
The Route Riding is a crucial phase because the actual dealing with the retailers
and their dealing with the customers can be very efficiently understood through this
The Routes i.e., the Pepsi Vans were charged and left the depot by 7:30 in the
morning, accompanied by the Route Agent (Ra’s). The RA’s were given the route
planners and the particulars of the products, flavors, and quantities along with the billing
materials. The vans had to cover the entire route and the RA had to do the merchandising
and sales against cash, which was a significant feature of this industry. The targets were
given twice or thrice in a week that was a challenge for them and after achieving these
targets the RA’s was awarded with some special incentives. As there exists a player like
Coca Cola. So it had a lot to do with schemes, discounts and other incentives.
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VISI
PURITY
64
The routes were allocated on the basis of individual areas and the demand of the
product in that particular area. The RA’s been responsible for the accomplishment of
their sales target on their routes and was given incentives on achieving the targets. Not
only this, the RA’s also had the responsibility of moving the flavors and packs in
proportion along with the proper display of the products for proper visibility and
The RA’s had the responsibility of setting up Monopoly PEPSI Sales Counters
where no products except that of PEPSI would be available amongst the soft drinks and
especially of Coca Cola. These monopoly sales counters enjoyed special benefits in terms
of discounts, schemes, VISI’s (fridges), display boards, glow signboards, wall paintings,
The RA’s had to achieve their sales target and surrender the daily sales proceeds
with the concerned Customer Executives along with the route planner and billing
materials and gate pass along with the details of sales on their route.
The entire activities of the RA’s was controlled by the Customer Executives, who
also assisted the RA’s in achieving their targets and were in charge of the sales
performance in their assigned areas. A Customer Executive had nine to ten RA’s under
him and was responsible for their performances as well. He was also concerned with the
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promotional activities on his routes and handling of policy matters in the
We as Research trainees were required to study and analyze the activities of the
RA’s and be familiar with the market. We had been provided Market Analysis Sheets by
the MDC in which we were required to record the observations of the retail outlets on a
particular route.
• The quantity of the cold and warm stocks of all brands and flavors available at the
activities.
• Inquiring about the behavior and merchandising of RA’s in accordance with the
products, if any.
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• Inquire about the performance of various brands and flavors packs and
• Last but not the least, assessment of the effectiveness of, assessment of the
signs, signage, wall paintings, posters, banners, racks, shelves, counters, VISI’s,
and also impact of nation wide advertising on brand loyalty by the customers.
Sheet (specimen on the next page) and reported to the MDC along with other information
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RETAIL MAPPING OF KANPUR :
The Retail Mapping is the integral part of the project and the most crucial is
involving heavy investment on account of increasing the routes and starting new routes
and promotional measures on those routes to increase its market share in KANPUR &
NCR. The new routes, exploring new markets required the decision to be supported with
facts and figures which had to be provided by the Research trainees on the basis of the
The retail mapping had to be conducted on the basis of the Retail Tracking Sheet
(RTS), which had been developed by the Marketing Development Coordinator and
Customer Executives of the KANPUR & NCR unit which incorporated the retail outlets,
their addresses, proprietor, respondent etc and served as a vital database for all market
since then for PEPSI in KANPUR and had to be incorporated in the project in accordance
share of PEPSI.
• Classification of all retail outlets in KANPUR into five broad categories viz, On
Route, Non Existence, Non Potential, Reachable and Non Reachable under the
The duration for the completion of the Retail mapping took duration of 20 days.
The entire survey was guided and directed by the Customer Executive and Daily report
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had to be presented to him after assessment and analysis along with other
and presented in a predefined format, which was further reviewed by the Marketing
Development Coordinator.
The Retail Mapping process incorporated of including of new outlets, which have
been omitted or newly opened, and the product availability on all these outlets. The
major thrust was on segregating the market for Strong Area Programme and Weak Area
Programme.
The Strong Area refers to the routes on which the sales targets are met without
much effort and have continuous demand for the products. These areas are performing to
the standards and are contented with the level of promotion schemes and other sales
boosting measures. The marketing efforts are nominal in these areas because of the
surplus demand and the area of concern is only to ensure the proper and efficient supply
of the products to meet the demand. In the KANPUR market approximately 32% of the
market can be said to be strong areas and these areas include the well-developed markets
as shopping malls, movie theatres, convenes, hotels, restaurants and bars etc. For
these Strong areas, SAP only aims at maintaining the performance of the product and
enhancing the sales volume. It is not the area of serious concern for the company.
On the contrary the Weak Area refers to those areas or routes, which are critically low in
sales and the targets, are tough to achieve and require aggressive marketing support. The
demand in these areas is fluctuating or rather feeble. The routes are the area of concern
for the company as the demand is very low due to many reasons and the major one is the
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existence of the player like Coca Cola in the market. Other reasons could be poor
These weak areas had to be identified and the cause of their inferior performance had to
be traced through the Retail Mapping and the company had to be provided with the facts
and figures to take legitimate measure on the basis of the findings of the deficient
performance of the product in these areas. This involved the aggressive marketing
strategy and heavy investment decisions to strengthen these markets. For this purpose the
classification of the outlets into five categories was very crucial along with the other
findings and observations discussed later. These five heads of classification have been
discussed as under.
ON ROUTE :
It refers to the retail outlets, which are covered by the Route Agents and visited
daily for sales and merchandising. The outlet is visited daily and actively
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NON EXISTENCE:
It refers to the outlets which were merchandising the product are no more in
existence, i.e., they have diversified their business activity or have closed.
NON POTENTIAL:
It refers to those outlets, which are in existence but have very low potential in
terms of sales or are not keenly interested in merchandising the products of soft
drink.
would turn to be potential in near future. It was also the area of operation of
PEPSI.
POTENTIAL OUTLETS :
72
It refers to those outlets, which have the potential for the merchandising of
PEPSI and have the required investment capabilities and can be the profitable
these potential outlets, which were already merchandising PEPSI, and those,
which did not, dealt with beverage products. The possibilities of setting
monopoly counter were very fair at these outlets and were given special
below:
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REACHABLE POTENTIAL OUTLETS :
products can be made available with the PEPSI vans. The reachability
outlets.
It refers to those Potential outlets which are not accessible by the PEPSI
vans. These outlets had to be considered because the sales volume can be
74
C. CORPORATE MAPPING :
KANPUR being an entirely industrial city had huge potential for the sales of
PEPSI in corporate as these concerns had factories, offices and canteens and the officials
and workers base was very strong. The process of Retail Mapping was followed by the
Corporate Mapping, which incorporated of tracing of the organizations and assessing the
market for PEPSI in these areas. Apart from these the database had to be updated to turn
the non-potential market in the corporate into profitable liaisons for the increment of
sales volume.
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THE OBJECTIVES OF CORPORATE MAPPING WERE:
Trace the organizations with and without canteens and cafeterias and
Estimate the brand preference of PEPSI and COKE in the corporate and
Equipments.
these organizations as well as when the product has the optimum consumption
e.g. daily, delegations, meetings, parties, or other occasions and the customers
thereof.
tapping these markets and locate the weak points in corporate having Coca
76
The Corporate Mapping was the supplementary programmed in the project to
boost the sales performance of PEPSI in KANPUR and capture the market share of its
nearest competitor. The analysis and findings were recorded on the format provide by the
preference and seriousness along with all the relevant details about the organization. The
The corporate matters had to be given a special care as these had huge potential
for the product. The specimen copy of the Corporate Mapping format is attached for
reference. The findings and observations have been discussed in the coming pages.
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D. ANALYSIS OF FINDINGS AND
OBSERVATIONS:
The main objective of the company is to increase the brand preference and market
share so any information material form this point of view had to be take into account
along with the formats provided by the company for predefined information recording
and analysis of those recordings and present the information in an organize and
systematic manner in a condensed form reflecting the actual position of the market.
The information had to be recorded in the format along with the relevant
information as per the objectives of the research and an analysis of that information had
can be drawn. Generally those information had to be presented in percentages and the
other findings and observations had to be evaluated and a list of findings had to be
arranged in order of their seriousness and areas of serious concern along with the outlet
details.
After the analysis sheets and formats have been surrendered to the C.E’s after
analysis by the trainees it was further analyzed and evaluate by him and a brief analysis
was made each day of the daily report. The CE’s further forwarded these reports after
retaining the reference copy, to MDC for further review and reference.
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SEGREGATION OF KANPUR :
As discussed earlier that the major objective of the Retail Mapping of KANPUR
was to segregate the market for PEPSI for the Strong Area Programme and the Weak
Area Programme. These Programmers have been discussed under the Retail Mapping
Head. The Data and fact collected by the survey had to be analyzed and presented in a
The finding of the Route Riding and the Survey conducted during the Retail
Mapping and the Corporate Mapping were combined together and analyzed together to
reach a final report ie, the RETAIL MAPPING SUMMARY or THE CONDENSED
DRAFT REPORT, which gave the entire picture of the actual position if PEPSI in
KANPUR . The report so prepared was on the basis of the Retail Tracking Sheet and the
The reports were analyzed thoroughly by the Customer Executives and a meeting
was held for the assessment of the routes and the reasons of unfavorable performance in
the weak areas and how to improve the sales on those routes. The discussion comprised
of the further investments for the enhancement and extension of the routes and the level
of promotional measures required in these areas. The performance of Coca Cola was also
79
reviewed simultaneously and a comparative study was made to assess the
performance and growth in the industry. These data and figures were compared
with that of the last year and a growth percentage was reached which also served as a
to be very dynamic in nature. The Customer Executives had to formulae day to day
strategies and these were communicated to RA’s in the morning when they were going to
leave the depot and this interaction among R.A.and C.E. was to be known as Gate
Meeting.
was to be formulated.
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Findings
&
Observati
on
81
FINDINGS & OBSERVATION
information, data, facts and figures and significant findings and observation to
the project had to be listed in order of their relevance and seriousness and
Soft drink business’s behavior is not governed by brand loyalty so the availability
of the right brand, at the right place, at the right time is the key for winning
The most important and satisfying observation was that, PEPSI had
approximately 64% market share in the soft drinks market in KANPUR and
some of its brands like Mirinda Orange and Mountain Dew were performing
above standards apart from PEPSI Cola in spite of the Coca Cola with two cola
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The present distribution system of PEPSI is the best in the entire FMCG
The retailers played a very critical role in the increment in the sales volume of the
product and the had to be kept satisfied in order to increase the market share by
counter, signage, wall paintings and better amount for purchase of shelf space for
display.
The existence of sub-dealers and super stockiest are also the major area of
problem, as they do not move the schemes and other display materials and
incentives information to the retailers, which is one of the reasons for the
dissatisfaction of retailers.
83
The cut throat competition between PEPSI and COKE had lead to the
never ending cola war and price war which has brought down the profit
margins which is one of the major grievances apart from the common complains
The other major issue was the supply of PEPSI from the bottling plants in Delhi
and Punjab against the company policies. These plants supplied the products at
Another critical issue was the presence of duplicate products of PEPSI in the
market. The details of these outlets have been surrendered to the company for
The position of PEPSI in the corporate was not up to the mark and Coca Cola had
a better scene in this context. One of the reasons can be assigned to the product
84
Analysi
s
85
MARKET STATUS OF PEPSI PRODUCT
PEPSI-COLA PRODUCTS
Slice
20%
Mirinda
Lemon
Mountain 3%
Dew
19%
• The percentage of selling of different brands of pepsi in
kanpur
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PREFERENCE OF SOFT DRINKS IN
QUANTITY
2 LT.
24%
200 ML
330 ML
(CAN) 37%
2%
600 ML
12%
300 ML
25%
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Once in a
week
Never Twice in a
3%
1% week
Occasional 12%
y
4%
Daily Often
13% 67%
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The other Statistics and finding have been presented in the
form of various charts on the coming pages:
10%
• The segmentation of demand of pepsi based
on age over 100 persons.
50%
89
CONSUMTION OF PEPSI BRAND
PEPSI
O T H ER S , 5 M .D E W
7 U P, 1 0
S L IC E , 1 5 P E P S I, 4 0 M IR IN D A
S L IC E
M IR IN D A , 1 5 M . D E W , 1 5 7UP
O TH E R S
90
MARKET SHARE OF PEPSI AND
COKE IN KANPUR
O TH E R S ,
11 PEPSI
P E P S I,
45 COCK
CO C K , 44 O TH E R S
• This figure shows the market share of pepsi and coke in kanpur
91
Which brand purchase is the most?
PEPSI Vs COKE
43
PEPSI
57% COKE
92
CONCLUSION
&
RECOMMEND
ATION
93
Conclusi
on
94
CONCLUSION
The business of Soft Drink industry is significantly based upon the impulse
them in such a manner so that it can motivate the consumer and generate a thirst in
Though, PEPSI has a strong position in KANPUR with the support of its efficient
attractive schemes but there still exists potential market in Kanpur to be exploited and a
suitable Weak Area Programme or the Strong Area Programme has to be formulated to
improve its market share depending upon the area under consideration.
Soft drink business’s behavior is not governed by brand loyalty so the emphasis is
not only on creating the market but also on retaining it. The availability of the right brand
and flavor pack, at the right place, at the right time is a key for winning the customer in
soft drink business. Keeping these facts in mind it becomes very important to treat the
retailers with concern and satisfy them by various measures and so that they are loyal
95
Recommendati
ons
96
RECOMMENDATIONS
The Project Retail Mapping was concerned only with providing the organization
with all the necessary information required to strengthen the position of PEPSI in
summarized form. But some critical and major issues, which have been identified on
account of extensive analysis, required suggestions to be put forward on the basis of the
There should be uniformity in, schemes, and discounts, which are offered to the
Activities of sub dealers and super stockiest should be controlled and checked in
order to ensure fair prices and distribution of schemes and incentives to small
Every possible step should be taken for the satisfaction of the retailers, as they are
the most important supplement to the sales promotion measures and nationwide
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advertising campaigns of the company in context of boosting the sales
controlled in order to ensure that they do not supply the product in other
The company should modify its advertising strategy and educate the customers about
its age-old existence and enhance its brand image. This will appeal to the target
customers of middle and older age groups apart from the younger generation in which
First and foremost things are that, whatever the policy is going to be formulated it
should not be same for all the areas. Different policies should be framed and
mind like buying habits, preferences, education level financial position of that
Rural market being a very potential segment needs very quick and prompt efforts
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Many retailers complained regarding irregularly in visit by the
executives. They also said that executive give very bad response to their
complaints. It is necessary that executive should make frequent visit to cover each
Pouches, foreign particles were found in few bottles, so proper quality control
There is a great market of soda (1 Lit.) but the supply of this pack is very poor, so
minimized.
99
Supply of posters, glow-sign boards, tin boards, banners and sun pack
advertisement.
Proper attention should be given to the retailer’s problem so that they take interest
Proper advertisement should be made at railway station, bus stand, posh area,
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A company may create favorable impression among the youth if they
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Limitations
102
LIMITATIONS
Time and money were the greatest limitation in carrying out the survey.
The mere information which we get from the retailers is not sufficient to arrive at
a conclusion.
103
MAIN
KEY POINTS
104
MAIN KEY POINTS
Service aspect of agencies is very effective, they deliver their product according
to the demand a just in time.
After analyzing the market and calculate the weight age, the result comes out that
Mountain Dew is the leading product of Pepsi-Cola.
Most of the place like cinema hall and educational institutions are dominated by
Pepsi-Cola.
105
Retailers have complaint regarding the PET, that more better quality
bottle should be used.
It was seen that Lehar Soda (1 lit.) in particular remains short during the season.
In the market there is only a retailer on which the sale of the different product of
different company depends
106
APPENDIX
107
Questionn
aire
108
QUESTIONNAIRE
Name :
____________________________________
Address :
____________________________________
____________________________________
Contact No. :
____________________________________
109
110
Q 1. which brand is prefer by the customer?
Aquafina 7
Lehar soda 4
Slice 20
Mountain dew 19
Mirinda lemon 3
Mirinda orange 14
Pepsi 24
7up 9
PEPSI
O TH ER S , 5 M .D E W
7 U P, 1 0
S L IC E , 1 5 P E P S I, 4 0 M IR IN D A
S L IC E
M IR IN D A , 1 5 M .D E W , 1 5 7U P
O TH E R S
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Q2. When you prefer colddrink?
Once in a week
Twice in a week
Never
Ocassionally
Daily
Often
Once in a
week
Never
3% Twice in a
1%
week
Occasional 12%
y
4%
Daily Often
13% 67%
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Pepsi
M.Dew
7 Up
Slice
Mirinda
Other
PEPSI
O TH ERS , 5 M .D E W
7 U P, 1 0
S L IC E , 1 5 P E P S I, 4 0 M IR IN D A
S L IC E
M IR IN D A , 1 5 M .D E W , 1 5 7UP
O TH E R S
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Q4.Which brand purchase is the most?
PEPSI 43%
COKE 57%
PEPSI Vs COKE
43
PEPSI
57% COKE
114
a. Leher Soda (Pepsi-Cola) 55%
0%
0%
0%
0%
1%
45%
55%
115
a. Aquafina (Pepsi-Cola) 65%
35%
1
2
65%
116
Bibliogra
phy
117
BIBLIOGRAPHY
MARKETING MANAGEMENT
“KOTLER PHILIP” (pno.20-25)
MARKETING OF PRINCIPLE
.“GARY ARMSTRONG”(pno.85-97)
Pearson Education 11th edition
RESEARCH METHODOLOGY
.“KOTHARI C. R.”(pno.110-125)
New age international publisher (DELHI)
2nd revised edition 2004 reprint 2008
WEBSITE:
www.pepsiworld.com
www.pepsico.com
www.google.com
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