Published on January 28, 2016
1. Summer Training Project Report Sales & Distribution of PepsiCo Undertaken At: TRIPTY DRINKS PVT LTD JAGATPUR, CUTTACK Submitted for partial fulfillment of award of M.B.A By Saurabh Kumar Roll No - 1439970144 ACME INSTITUTE OF MANAGEMENT & TECHNOLOGY
2. CERTIFICATE OF THE SCHOOL This is to certify that AYAN MAILK, a student of 12TH from SACRED HEARTS SR. SEC SCHOOL has done his PROJECT WORK of PHYSICAL EDUCATION. The project work entitled “VOLLEYBALL”. Signature Signature Mr. GOMES SIR Mr.RANVIR SINGH RAWAT P.H.E TEACHER PRINCIPAL CERTIFICATE
3. This is to certify that Mr. Nawanshu Birla, is a student of Delhi Public School has successfully completed his project entitled “Baseball ” under my supervision for the session 2015-16 in partial fulfillment of XIIth Class. I wish him all success Teacher Signature DATE:- PLACE:-
4. ACKNOWLEDGEMENT I would like to express my gratitude to all those who gave me the opportunity to complete this project. I would like to thank my Institute authorities & my internal guide for providing me the opportunity to work with one of the most prestigious organization. I want to thank my physical education teacher for giving me permission to commence this project in the first instance, to do the necessary research work & to use departmental data & resources.
5. DECLARATION I do here by that in an endeavor of this nature of graduate diploma in business management, ACME Institute of Management of Technology , this major project is the representation of my original project done in entitled “Sales and Distribution of PepsiCo” . This report is neither submitted to any other institute/university, nor published in any time before. Saurabh Kumar M.B.A (2014-2016) ABIT JRD TATA INSTITUTE OF MANAGEMENT CDA, SECTOR-1, CUTTACK
6. PREFACE Marketing is merely a civilized form of warfare in which better are on with & gain words, disciplined thinking, and power of original ideas, forward vision & quick action couple with keeping in mind the customer desire. Having merely an understanding of customer is not enough today. The most difficult part of the whole nation is to retain those customers as brand loyal. In sharing sixties, companies could ignore their competitors because most markets were growing. The product is the most important tool in the marketing mix. Without a product, there is no question of marketing. The whole marketing programme is based on the product. The buyer purchases a product only because it serves the customer by satisfying his needs & desire & therefore, he pays for it. Thus, a product is a bundle of potential utility, because customer is more
7. interested in the benefits he gets from the product rather than the product characteristics in a physical sense. Distribution channel & retail activity is a term in which every company & competitors are trying to eat each other’s share away. It is my great advantage that Tripty Drinks Pvt.Ltd has given me this opportunity to understand the sales & Distribution activity of the company. I am highly obliged to receive this existing opportunity to work experience from such immensely cooperative, dynamic a challenging organization. I hope that you will appreciate with my work.
8. EXECUTIVE SUMMARY PROJECT TITLE : SALES&DISTRIBUTION OF PEPSI NAME OF THE COMPANY : PEPSICO PLACE OF WORK : JAGATPUR,CUTTACK,ORISSA DURATION : 1½ MONTHS ORGANISATION GUIDE : Mr. SANJAY KU. GUPTA INTERNAL GUIDE : Mrs. PALLAVI MISHRA MAJOR OBJECTIVE : TO KNOW THE OPPURTUNITY AND THREAT IN THE FIELD OF MARKETING
9. CONTENTS SL NO PARTICULARS PAGE NO 1 Introduction 2 Objective of Training 3 Objective of the study 4 Limitation of the study 5 Research Methodology 6 Company Profile 7 History of PepsiCo 8 About Soft Drinks Industry 9 All PepsiCo Brands 10 Mission, Vision of PepsiCo 11 About Tripty Drinks 12 Product Line of PepsiCo 13 Brand of PepsiCo 14 About the Topic 15 SWOT Analysis 16 Life Project in Cuttack. 17 Data Analysis 18 Suggestion 19 Conclusion 20 Bibliography 21 Questionnaire
10. INTRODUCTIO N MARKETING “The process of ascertaining consumer needs, converting them into a product or service & then moving the product or service to
11. the final consumer or user to satisfy such needs & wants of specific customer segment or segments with emphasis on profitability, ensuring the optimum use of resources available to the organization. According to kotler “Marketing is a social &managerial function which includes individual&organization as a group obtains what they need, desire and what their organization could create through creating, offering and exchanging of products of value to others”. According to Stanton “marketing is a total system of interacting business activities design to plan, price and to promote the distribute want satisfying products &services to present& potential consumers”. According to me “marketing means, push the product to the market & pull the customer towards the business. we can say that the main aim of the marketer is to convert the want of the customer to the need of the customer. “Thus marketing job is to convert societal needs into profitable opportunities. Hence, marketing occupies an important position in the organization of a business unit. Today marketer, to courage face the same tough decisions but today’s market place is more complex. Domestic markets, at one time safe from foreign invaders are now happy hunting grounds of Giant Corporation as well as niche specialists. Major strides in technology have considerably shortened time& distance. New products are launched &astonished pace and are
12. available worldwide in a short time. Communicating ones media are proliferating new distribution channels and formats keep appering.competitors are everywhere-and hungry. OBJECTIVE OF THE STUDY
13. OBJECTIVE OF THE STUDY TITLE: SALES AND DISTRUBUTION OF PEPSICO: Geographical scope of the study is the Cuttack city. The data I have collected from 179 different outlets in different areas of the city. The main objective of the study is mainly concerned with Pepsi Company in finding out the position of the PEPSI Company in Cuttack market in the present scenario. PRIMARY OBJECTIVE: Find out the position of PEPSI Company in Pepsi market and the distribution of the company. SECONDARY OBJECTIVE: Find out the marketing channel of Pepsi Company and the mode of distribution. To acquire the knowledge about how the different soft drinks are divided in the market of Orissa. To know the stock position of pepsi&its competitors. To know about the stock position of Pepsi &its competitors at different outlets.
14. To ascertain the performance of the Pepsi brand. To know the market share of Pepsi product. To analyze the strength &weakness of Pepsi To measure the effectiveness of this distribution network satisfying the retailer. OBJECTIVE OF THE TRAINING
15. OBJECTIVE OF THE TRAINING Summer training is necessary for all the students doing M.B.A/PGDBM.Many reasons are there for implementing training in M.B.A/PGDBM programme. The most important objective is that the student is clearly exposed to the market. Suppose a student is sent to some organization for the training for the purpose of marketing .in that case he/she gains a close understanding of how marketing people are working. One can know how to find the market segment, how to fix the price of product, how marketing strategies are formulated and implementation done etc. The objective of my project is: To determine the position of PCL soft drinks product in Cuttack. To determine the market share of PEPSI company in the Cuttack market. To determine the main competitors of PEPSI in Cuttack market.
16. To determine the standard of sales and services and public relation. To determine the distribution channel of PEPSI in Cuttack mark LIMITATION OF THE STUDY LIMITATION OF THE STUDY The major limitation of the study was that in depth study in the subject couldn’t be done due to time consideration.
17. The other limitations are: The company doesn’t declare all the data and internal data are kept confidential. Though every sincere and possible effort has been made to collect the data, some retailers, mostly betel shops were uncooperative in providing the data. Even though some of the retailers were scolded me when I was talking about Pepsi. The study was small in size to gather accurate information about the project. The project is done in Cuttack city may not represent the whole India. Since the data collected was representative based, the accuracy was questionable. RESEARCH METHODOLOGY
18. RESEARCH METHODOLOGY Universe of study : Cuttack Sample size : 179 Method of study : questionnaire method, direct personal Interview method &distributor or Store audit method. Two types of data collected method were adopted. Primary data collection Secondary data collection Primary data were collected through the open end & a close End questions of the questionnaire, direct interaction with the customers and the outlets and some data are collected from the distributor and from the stores was done. Secondary data were collected from the website of pepsi.com and some management organizations. Research plan: To find out the stock of different flavor I divided Cuttack city some geographical areas and each part I visit 5 times to find out a particular sale of carets,pets,my can etc.
19. Research instrument: Here the common research instrument is the questionnaire through which primary data is collected from different retail counters. Contact method: At first I directly met the retail counters and introduced myself as M.B.A student and then collected the data required for my project work such as name of outlet, address, type of shop, working hours, monopoly counter of Pepsi or coca cola or general, problems demands of each counter and at last quantity of each brand. Respondent: General store. Betel shop. Restaurant. Fast food centre. Juice centre. Ice cream parlors. Grocery shop. Other shops.
20. COMPANY PROFILE
21. COMPANY PROFILE Pepsi is one of the world's most famous brands much like coca cola its rival Pepsi Cola was originally called Brad's Drink after its creator, Caleb Bradham, a pharmacist from North Carolina. Pepsi was a carbonated soft drink he created to serve his drugstore's customers. The new name, Pepsi-Cola, was first used on August 28. The Pepsi logo is a simple globe with the Pepsi colors in the background and the word Pepsi in the foreground. Pepsi has changed its logo and its slogans a number of times since its introduction in 1898. The Pepsi slogans through the years are listed below 1909-1939: Delicious and Healthful. 1939-1950: Twice As Much For A Nickel Too. 1950-1963: The Light Refreshment. 1953-1961: Be Sociable. 1961-1963: Now It's Pepsi For Those Who Think Young.
22. 1963-1967: Come Alive! You're In The Pepsi Generation. 1967-1969: Taste That Beats The Others Cold. 1969-1973: You've Got A Lot To Live, Pepsi's Got A Lot To Give. 1973-1975: Join The Pepsi People Feelin' Free. 1975-1978: Have A Pepsi Day. 1978-1981: Catch That Pepsi Spirit. 1981-1982: Pepsi's Got Your Taste For Life! 1983-1983: Pepsi Now! 1984-now: Pepsi, the Choice of a New Generation.
23. HISTORY OF PEPSICO PEPSICO HEADQUARTER: PepsiCo world headquarters is located in purchase, New York. Edward Durrell, one of America’s foremost architects, designed the seven building complex. PepsiCo is a world in convenient foods and beverages, with revenue of about$27 billion and over 1, 43,000 employees. The building occupies 10 acres out of a 144 acre complex that includes the Donald M.kendall sculpture gardens, a gardens were originally designed by world famous garden planner, Russell page, and have been extended by François goffinet .the ground are open to the public, and a visitors booth is in operation during the spring &summer.
24. HISTORY: The Pepsi cola company began in 1898, but it only became known as PepsiCo when it merged with Frito lay in 1965. PepsiCo purchased Tropicana in 1998, and Quaker oats in 2001.the brand was trademarked on june16, 1903, though pharmacist celeb Braham first made the drink on august 28, 1898.pepsi was originally intended to cure stomach pains. In 1903, Braham moved the bottling of Pepsi cola from his drug store into a rented warehouse. This year Braham sold 7968 gallons of syrup. The next year Pepsi was sold six ounce bottles and sales increased to 19848 gallons. In 1905 Pepsi received its first logo redesigned from the original design of 1898.in 1923 Pepsi went bankrupt due to higher sugar prices as a result of World War 1,assets were sold and Roy c Megeral bought the Pepsi trademark. Eight years later, the company went bankrupt again, resulting in a reformulation of the peps cola syrup formula. During the great depression, Pepsi gained popularity fallowing the introduction in 1929 of a 10-ounce bottle initially priced at 10 cents, sales were slow, but when the price was slashed to 5 cents, sales increased substantially. During the year 1936- 1938 the profit was doubled. Founded: New York Head quarter: Purchase, USA
25. Area surved: World Wide Key people: Indrakrshinamurty Nooyi (CEO) Industry: Food &Non Alcoholic Beverages Revenue: USD43.251 Billion Total Employee: 1, 85,000 Total Assets: USD 35.994 Billion Total Equity: USD12.106 Net Income: USD 5.142 Billion CORPORATE CITIZENSHIP PepsiCo believes that as a corporate citizen, it has a responsibility to contribute to the quality of life in our communities. This philosophy is put into action through support of social agencies,
26. projects and programs. The scope of this support is extensive- ranging from sponsorship of local programs and support of employee volunteer activities, to contributions of time, talent and funds to programs of national impact. Each division is responsible for its own giving program. Corporate giving is focused on giving where PepsiCo employees volunteer. FRITO- LAY PepsiCo’s snacks food operations had their start in 1932 when two separate events took place. In San Antonio, Texas, Elmer doolin bought the recipe for an unknown food product- a com chip-and started an early an entirely new industry. The product was Fritos brand com chips, and his firm became the Frito Company. That same year in Nashville, Tennessee, Herman w.fay started his own business distributing potato chips. Mr. Lay later bought the company that supplied him with the product and changed its name to H.W. lay company. The Frito Company and H.W.lay Company merged in 1961 to become Frito-lay Inc. Major Frito-lay products include ruffles, la/s and dortis brands snack chips. Other major brands include cheetos cheese flavored snacks, Tostitos tortilla chips, santitas tortilla chips, Rold
27. gold pretzels and sun chips multigrain snacks. Frito-lay also sells a variety of snacks dips and cookies, nuts and crackers. PEPSICOLA Caleb Bradham, a New Bern, north druggist, who first formulated Pepsi-cola, founded PepsiCo’s beverage business about at the turn of the century. Today consumers spend $33 billion on Pepsi cola beverges.Brand Pepsi and other peps cola products including Diet Pepsi, Pepsi one, mountain dew , slice sierra mista and mug brands – account for nearly one- third of total soft drinks sales in the united states, a consumer marker totaling about $60 billion. Pepsi-cola also offers a variety of non carbonated beverages including Aquafina bottled water, fruit works and all sport. Pepsi-cola began selling its products internationally in 1934 with aerations in Canada. Operations grew rapidly beginning in the addition to brands marketed in the United States like mirinda and Pepsi max. GATORADE &TROPICANA
28. The company entered the concentrate orange juice Tropicana which was founded in 1947 by Anthony Rossi as a Florida fruit packaging business in 1949, registering Tropicana as a trademark. The Tropicana brand is available in 63 countries. Principal brands in North America are Tropicana pure premium, Tropicana seasons best, Dole juice and Tropicana twister. Internationally, principal brands include Tropicana pure premium and Dole juices along with fruit vita, looza and copella.Tropicana pure premium is the third largest brand of all food products sold in grocery stores in the United States. Gatorade sports drinks were acquired by the Quaker oats company in 1983 and became a part of PepsiCo with the merger in 2001.Gatorade is the first isotonic sports drink, created in 1965 by researchers at the university of Florida for the school’s football team, “The Gators”, Gatorade is now the world’s leading sport drink.
29. QUAKER FOODS The Quaker Oats company was formed in 1901 when several American pioneers in oat milling came together to incorporate. In Ravenna, Ohio, Henry d. Seymour and William heston had established the Quaker mill company and registered the now famous trademark.seymour wanted his product to be a symbol of honesty, integrity and strength. The figure of a man in Quaker clothes became the first registered trademark for breakfast cereal and remains the hallmark for Quaker oats today. In Cedar Rapids, lowa, john Stuart and his son Robert, and their partner George Douglas, operated the largest cereal mill of the time. Ferdinand Schumacher, known as the oatmeal king, had founded German mills American Oatmeal Company in 1856. The first major acquisition of the company was aunt jemina Mills Company in 1926, which is today leading manufacturer of pancake mixes and syrup. In 1986, the Quaker oats company acquired the golden grain company, producers of rice-a-roni.Pepsico merged with the Quaker oats company in 2001.
30. MISSION OF PEPSI “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.” VISION OF PEPSI “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. PERFORMANCES WITH PURPOSE At PepsiCo, we are committed to achieving business and financial success while leaving a positive imprint on society – delivering what we call performance with purpose. Our approach to superior financial performances is straightforward- drive shareholder value. By addressing the
31. environmental issues, we also deliver on our purpose agenda, which consists of human, environmental and talent sustainability. ALL PEPSI COLA BRANDS
32. ABOUT TRIPTY DRINKS ABOUT TRIPTY DRINKS M/s Tripty drinks (p) limited is a well known manufacturing organization in the state of Orissa for manufacturing and sales of soft drinks since last 32 years. This unit was incorporated itself as a manufacturing unit in the year 1968 and started its production in1969. Since its inception the unit is engaged in manufacturing soft drinks of different brands.Intially they grew by manufacturing “coca” brands of the product. There after they took the franchise of “Mc Dowell” and since 1991 they have been manufacturing “Pepsi” brand products. It is the only bottling unit of “Pepsi” brand of product. In the state of Orissa Pepsi is brought to you by the renowned tripty drinks pvt ltd, jagatpur (Cuttack) best professionally managed company promoted by the jaipuria group .the promoters for the last thirty five years in manufacturing national and world renowned brands such as Pepsi ,7up , slice, mirinda, mountain dew ,etc.has helped deliver to the customer consistent quality comparable to the best of international standards. Today’s fast paced life style and ever changing Drinks style demand superior quality, ready to use in convenient packaging. The Pepsi drinks meet these demands. PEPSI is the ideal choice for the both classes as well the masses for the individual consuming low quantities as well as high establishment. The seemingly vast gap in catering to a vast and varied consumer base has been bridged by introducing “contain no fruit in a hygienic convenient bottle packages.”
33. LOCATION AND AREA COVRRAGES BY TRIPTY DRINKS M/s Tripty Drinks pvt ltd is located at jagatpur industrial area, 7 km away from Cuttack city, the old capital of the state of Orissa and heart of business activities in the state. The factory is situated on the bank of the river “Mahanadi”, the largest river in the state and in the side of National highway -5. The factory is also close to railway station and correctly located for transport of raw materials and finished products. The factory acquires 7.6 acres of land out of which 2.5 acres are built up for factory s plant and machinery and administrative offices. SILENT FEATURE OF THE COMPANY:- 1. Date of incorporation :12.05.1967 2. Commencement of production :16.07.1968 3. Registered office : jagatpur,cuttack-754021 4. Production capacity : 38 lakhs crates per annum 5. Go down stock capacity :1,20,000 crates 6. Total land area : 7.6 acres 7. Built up area : 2.5 acres 8. Market covered : Orissa state
34. DEPARTMENT OF TRIPTY DRINKS The bottling plant jagatpur, Cuttack is a franchisee operated bottling operation plant and is owned by the jaipuria group. Previously the goenka owned it .but it was brought over by the jaipuria and many infrastructures have been added since, not to mention the state of art plans with major automation. Tripty drinks do the bottling and the marketing division is Tripty drinks pvt ltd. At the top of the organization hierarchy is Mr. P.S Kumar (CEO), between known as BUM and business unit in the state. The four departments of Tripty Drinks are:- 1. FINANCE 2. TECHNICAL 3. HUMAN RESOURCES 4. MARKETING AND SALES MR. SANJAY KUMAR GUPTA is the head of the sales with 15 year experience backing him up. Under him the other supporting bodies are:
35. Marketing Development Manager(MDM) Territory Development Manager(TDM) Account Development co-ordinates(ADC) Customer Executives(CE) THE PROCESS OF MANUFACTURING The process of manufacturing of Aerated water (soft drinks) and fruits juice under Pepsi brand is divided into mainly five parts such as: Water treatment Syrup making Bottle washing Filling Crowning and coding Testing of the product MARKETING SYSTEM Product: “Pepsi” carbonated water, sugar & added flavor package drinking water. Introduction of natural color drink is on the cards.
36. Positioning: Besides retailing, the company focuses on institutional sales, special event to make the product available for additional mileages. Price: The company maintains a steady price due to tight competition. It encourages more retail margin as compared to the competitors. However, company does not believe in compromising the quality of the product. Promotion: Schemes and incentives are also given keeping on eye on the competitive activity from time to time. Company has also introduced a consumer’s awareness scheme to create better brand awareness of the product. Publicity: A company as promotional measure for value sale gives publicity. Adequate point of purchase materials, adequate display materials and participation of important local festival are also part of the promotional measure of the company. Channel of distribution:
37. Distributors are appointed all over Orissa for marketing the product. Customer executives appointed by the company support them. Marketing strategy: Besides stamping the urban market, the company focus is on penetration in the periphery rural area.
38. BRAND OF PEPSICO RGB PET PRODUCT 200 ml 250 ml 300 ml 500 ml 600 ml 1 lit 1.2 lit 1.5 lit 2 lit TETRA MY CAN PEPSI y y y y y y 7UP y y y y y y SLICE y y y y MIRINDA(O) y y y y y y MIRINDA(L) y y M.DEW y y y y y y AQUAFINA y y EVERNESS y y
39. DISTRIBUTION CHANNEL OF PEPSI A distribution channel is a set of interdependent involved in the process of making a product or service available for use or consumption or industrial user. We know that consumer of any age or sex engaged in any activity needs a proper distribution to make available everywhere. If there is a proper feeding of the dealers, the company is in the better position to supply and satisfy that impulses demand of the customers. As the number of dealer increases, the dealer index goes down and the sales increases. Then also product will be available in more places and more accessible areas, as a result the consumption of product will increase. Therefore, the per capita consumption that is the average number of bottles consumed by a person over a year will increase .this of course means an increase in total sales. A distribution system must have adequate number of vehicles and to supply the product at each and every outlet first. In Pepsi the coordination between channels is very good. In Pepsi the company tripty drinks pvt ltd sale its product directly in cash. There is no credit system .and the distributor sales the product through personal vehicle to the outlet. So the main objective of the distribution channel is to cover up the wise area at proper time and in adequate quantity clearing up of all transactions having no bad debts and reducing
40. the channel conflict by proper task clarity with targeted sales figure, job and necessary supervision of the work by the executives. FOCUS ON MARKETING STRATEGIES OF PEPSI The marketing strategy used by Pepsi involves the fallowing. Focus on availability of product in market Focus on availability of products in outlet. Pepsi products visible to customers Regular market vigilance by market developer Distribution of according to locality Focus on monopoly outlets. Aggressive outlets. Target core brands. Satisfy market priorities. Focus on availability of product in market: Pepsi works on “DIKHEGA TO BIKEGA” philosophy. This is the main formula for marketing strategy to each company. So availability of product in market is clear. For this reason, the
41. market developer daily comes to the market to check the product availability. Focus on availability of product in outlet: There is a difference between availability of product in market as well as in outlet. So Pepsi wants its product to be available in each outlet in the market. Focus on visibility of Pepsi products in outlet: The aim of Pepsi is that its product should visible to the customers so it gives VISI-COOLERS &rack to outlets. Availability of visi-coolers &rack ensure that more &more products are visible to the customers. Regular market vigilance by market developer: To know the position of Pepsi products in the market, Pepsi appoints some executives those go to the market &check availability of products, take care of company assets, check visi- coolers, talk to outlet owners about any problem &take feedback about the product. Distribution of product according to locality: Pepsi distributes its product according to locality. Say for example it distributes more RGB in an area where there are more bars &restaurants. Focus on monopoly counters:
42. Outlets which sales only Pepsi products are known as MONOPOLY outlets. These monopoly outlets give more sales to the company .so company gives extra schemes, discounts gifts to those outlets. SCHEME IN PEPSI SOFT DRINKS REFILLING SCHEME: for the retailer purchase of 1 case of RGB (Returnable Glass Bottle) two or three bottle free. SCRATCH CARD: For the retailer winning prize by scratching lucky coupon. UTC: (under the crown) for both the retailer as well the customer will get the amount coded under the crown. QPS: (quantity per sale) this scheme is only for the retailer to motivate for high selling volume. In this scheme the will get free bottles according to the cases of PET, RGB CAN and AQUAFINA. KEY ACCOUNT: In this scheme the company ties up with mall, restaurant, big retail shop and hotel on the basis of annual sales volume. The company may tie up to Rs.10 or Rs.25 per case selling. CARD ACCOUNT: Under the scheme the company ties up with betel shop, small shopkeeper, retail outlet at Rs.3 or Rs. 4 or Rs.5 per case of selling. DISPLAY SCHEME: Under this scheme company give gift to the retailer who displays the Pepsi products in the visi very well.
43. SWOT ANALYSIS
44. SWOT ANALYSIS SWOT analysis is a simple framework for generating strategic alternatives from a situation analysis. It is applicable to either the corporate level or the business unit level &frequently appears in marketing plans.swot stands for strength, weakness, opportunities and threat. STRENGTH: • Brand image of the company • Market share of the company • The staff of the companies are very corporative • Operational capacity of the company • Variety of scheme for retailers throughout the year WEAKNESS: • Taste of Pepsi is not so good in compare to Thumps-up. • High demand low supply • Low market share in peak season • Poor feedback from the retailer
45. OPPORTUNITY: • Giving more offer to the retailer • Retailer will get the maximum profit • Profit margin will be good by adopting update &aggressive marketing strategy THREATES: • Competitor may come with new strategy • External problem may affect company image • Breaking of Pepsi monopoly outlets • Market demand very seasonal
46. LIVE PROJECT IN CUTTACK MARKET LIVE PROJECT IN CUTTACK MARKET During my project period, I worked in the Cuttack market with the fallowing team: 1) Mr. Sanjay Kumar Gupta(head of sales) 2) Mr. Ashwini Dash (Territory development manager) 3) Mr. P. Swain (Account Development Co-ordinate) 4) Mr. Ashish Rath(Customer Executive) 5) Lullu Behera(Sales Person) 6) Muna Moharana (Sales Person) 7) Chotu (Sales person) PROCESS IN WHICH I WORKED: First, I travelled with the Ashish sir (customer executive) to know the area covered by the distributer for two days. After knowing the area properly, I tried to touch each and every PEPSI outlet everyday so that Pepsi monopoly counters get adequate stock every day.
47. During the period, I made sure that schemes are given properly to the retailers which included educating retailers to the benefits of the scheme &in the process increase the sales. I did plannogram for visi-coolers and ensured that at least 5 plannograms are done per day. Then I worked on to make Pepsi product available in and every outlet of my area .it was during this period when I cracked coke outlets. I also visited coke counter to bring order by using the scheme offered that time. I also developed new counters for Pepsi during my period of work. During this period, I also maintained DSR &EDSR REPORT. During the period, I motivated some of the coke counter to keep Pepsi products& finally they agreed to keep it. I really thankful to Ashish sir for giving his support to me throughout project period in respect of both on the job &off the job case.
48. CUTTACK DISTRIBUTORS PROFILE There are 12 distributors operating in Cuttack.The details about the distributor under which I worked. Name: Sree Ram Associates. Address: Badhei Sahi, Buxi Bazaar, Cuttack. Staff employed: 7 Manager: 1, Sales Person: 2, Drivers: 2, Officials: 1, Labors: 1 Vehicles: 2(1 Ace &1 Mahindra auto) AREA COVERED
49. Sahi,MachuaBazar,Mangalabag,BadheiSahi,B.K Road,Rani Hat, Medical Road, Ring Road, Friends Colony,Nuapatana,Kesher Pur,Nayak Sahi, Bania Sahi etc. SCHEMES GIVEN DURING THE PERIOD PERIOD SCHEMES GIVEN 24/07/2009 2BTL 200/300ML FREE ON 1CS 200/300ML PEPSI, M.DEW, and MIRINDA. 25/07/2009 1BTL 7UP FREE ON 1CS 7UP. 26/07/2009 2BTL 600ML FREE ON 1CS 600 ML/2LTR (ALL FLAVOR). 27/07/2009 1BTL500ML SLICE FREE ON 1CS SLICE 500ML/1.2 LTR. 28/07/2009 2PCS MY CAN FREE ON 1CS MY CAN. 30/07/2009 2PCS MY CAN FREE ON 1CS MY CAN.
50. DATA ANALYSIS DATA ANALYSIS In order to know the market share of the Pepsi, survey work was conducted in the month of July, 2009. The functioning of 320 outlets in Cuttack city was examined and the result after interception is revealed later in the study. I have personally visited
51. to the 168 outlets in Cuttack city and collected the data through questionnaire and direct interviewing with the retailers. My data was regarding the selling of the two main brand in Orissa that is Pepsi-cola limited and Coca-cola limited. After assimilating, recording, classifying, analyzing, interpreting and finding, final conclusion has been drawn. It is concluded that. The demand of Pepsi is less than compared to the thumps-up. The demand of slice is more than mazza. But in case of sprite, it is more demanded than 7up. So in order to increase the growth of market share and sales, taste and preferences of the consumers are to be highlighted and to be taken in to prior concentration. Hence in order to know the most preferred flavor according the stake a survey is organized. For a successful survey work certain points are to be taken into consideration. It is of immense of importance that nobody spares valuable time for the survey purpose. For, this time factor is to be kept in mind and accordingly the questionnaire prepared. Since the research was conducted in Cuttack city being the busiest city, I had to plan the survey in such a way so that less time was required by a respondent to complete or fill up the questionnaire. The analysis divided into to two subparts:
52. o Analysis of data collected through questionnaire. o Analysis based on different shop in different areas. A total of 179 outlets were surveyed with the fallowing questionnaire: o Status of outlet o Type of outlet o Annual volume of the outlet o Visi availability of outlet o Total filled RGB in the outlet o Total pet available at the outlet o Total water cases available at the outlet o Best distributor services provided o Best scheme given o Best company people visit o Availability of GLOW signboard o Promotional scheme that is appreciated by retailer o Remarks o Service frequency
53. Number of cases available in the Cuttack market Cuttack market Coca-Cola PepsiCo Product Total % Product Total % Coke 180 4.73 Pepsi-Cola 530 14.48 Thums Up 1050 27.59 7Up 1250 34.15 Fanta 420 11.03 Mirinda 525 14.34 Sprite 1655 43.49 Slice 970 26.50 Limca 140 3.67 M.Dew 385 10.51 Mazza 360 9.46 Total 3805 Total 3660 Coca-Cola & PepsiCo products availability in the market
54. Position of both PepsiCo & Coca-Cola products in the Cuttack market Market Position Products 1 Sprite 2 7up 3 Thums up 4 Slice 5 Pepsi-Cola 6 Mirinda 7 Fanta 8 Mountain Dew 9 Maaza 10 Coke 11 Limca Market Share of Pepsi Vs Coca-Cola available in Cuttack Brand Total Bottle found % PepsiCo 3660 49.02 Coke 3805 50.97 7465 100
55. FINDINGS FINDINGS FINDINGS: Getting customer is not a difficult task but to retain these customers is a difficult task. The behavior of sales people highly matter for increase the sales
56. The sales person were cheated the retailers as they were not given the offers in a proper manner to the retailers. Most of the outlets have been demanding the visi of Pepsi but they have not got it yet. Most of retailers complained that the products were not provided adequately during the peak or season period. Short term sales increases required to reduce inventory promotion that give large immediately benefits such as money off or bonus pack. Sales promotion offers like price –off or free gift induce customers to buy more and more products. Most of the retailers were unhappy with the service frequency of Pepsi. Sales promotion can be measured objectively to judge their success. The survey revealed that about 90% of the total outlets are non –seasonal outlets, which means they sales the products throughout the year. On the other side about 10% of total out lets are sales our product on the season only. This survey also revealed that most number of exclusive counter of Pepsi than that of coca –cola exclusive counter.
57. The out lets are mostly focusing on glass bottle (i.e.RGB) after that they focus on plastic bottle (i.e.PET, CAN, mineral water soda etc). The retailer appreciates mostly two type of promotional scheme (i.e.UTC or refilling) because these two schemes, outlets owner gets on the spot of purchase from the sales person. Some of the coke counters are interested to keep the product of Pepsi. But there is no effort made by the Pepsi Company. The study also suggested that most of the outlet owner demanded for large visi –cooler of Pepsi to keep huge amount of product.
58. SUGGESTION SUGGESTION o Proper knowledge should be given to the salesman about the promotional scheme so that they can better understand the importance of promotional activities. o There should be proper regulation on time management for the distributors, so that distributor will open the agency on time. o The distribution should be a within proper interval, so that there is no shortage of products in the market. o There should be a regular meeting between distributor & company about the implementation of sales promotion.
59. o The company should give priority the demand of the retailers. o The company should provide the necessity of visi -cooler to the aspired outlet owners. o Company should make an open interaction for the distribution so that they feel that they are the part of the organization &they will never hesitate to give scheme to the outlets. o There should be proper assessment classes for the distributor so that proper work should be maintained & up to dated. o There should be proper dress codes for the salesman and the driver/. o There should be time schedule for the meeting between top level management &C.E. o Fast repairing of visi cooler will gain the faith &goodwill of the retailer. o Company should provide racks to keep pet bottles for display. o Company should give the facility to provide visi cooler outside the store so that the display will easily do &it is helpful for those stores where the space is a constraint.
60. o Retailer’s feedback should be taken about the customer behavior about various brands. o Efforts should be made to bring more and more monopoly Pepsi counter. o The company should have to take a sincere effort for the supply of products in peak or season period. CONCLUSION CONCLUSION The aim of my project to learn about sales and distribution strategy of Pepsi Company. Because I have a deep interest to know the various sales and distribution of FMCG sector. My observation was the demand of Pepsi was slightly less than that of thumps-up. It also revealed that the shares of sprite have an advantage over maaza but slice is very low in the peak season that should be taken into consideration. It was found that the have better scheme in Cuttack city as well as all over the world.pepsi has a wide variety of product line in comparison to coca cola ltd.M.S Dhoni the ambassador of PepsiCo has targeted the young generation. The survey revealed the some of the points:
61. o It was found that 40% outlets are coke exclusive, 20% outlets are Pepsi exclusive and the rest 40% are mix counters. o It was found that 49% of the outlets were having visi of coke, 30% of the outlets were having pepsin visi and the rest 21% were having own visicoolers. o The mineral water availability of both Pepsi and coke stand at 10%, 12% respectively. o It was found that most of the outlets were keeping RGB of Pepsi as well as RGB of coke. o The availability of Pepsi pets were more than that of coke pets during the survey period. o In respect of scheme, the Pepsi has an edge over coke.
63. BIBILOGRAPHY PHILIPS KOTLER Principle of marketing GARY ARMSTRONG principle of marketing VSP RAO strategic management
64. V HARI KRISHNA strategic management V S RAMASWAMY marketing management S. NAMAKUMARI planning &implementation S DAM RAJENDER The real pepsi,the real Story (journals and magazines) C.R KOTHARI Research methodology WEBSITE ADDRESS: www.pepsiworld.com www .pepsico.com www.pepsiindia.com www.pepsifoods.com www.pepsilogo.com
65. www.google.com QUESTIONNAIRE QUESTIONNAIRE OBJECTIVE: To find out the market share of Pepsi. (Please attempt the entire question by marking circle) 1. Name of the outlet………………………………………… 2. Address: …………………………………………………………………………………………. 3. Name of the retailer:………………………………………..
66. 4. Contact number :……………………………………….. 5. Which company product you are selling more? (a) Pepsi (b)coke 6. How much filled RGB stock of Pepsi you have? (Specify) …………………………………………………………………………………………… 7. How much filled RGB stock of coke you have?(specify) ……………………………………………………………………………………………. 8. How much filled pet stock of Pepsi you have?(specify) ……………………………………………………………………………………………. 9. How much filled pet stock of coke you have?(specify) ……………………………………………………………………………………………. 10. Which company rack you have? (a) Pepsi (b) coke 11. Which company giving you better service? (a) Pepsi (b) coke 12. Which company giving you better scheme? (a) Pepsi (b) coke 13. Which brand of water do you sale more? (a) Pepsi (b) coke
67. 14. What is your annual sale volume of Pepsi?(specify) ………………………………………………………………………………………. 15. What is your annual sale volume of coke?(specify) ………………………………………………………………………………………..