Project report on Marketing Mix on Pepsi

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CONTENTS SUBJECT

PAGE NUMBER

CHAPTER-1: A. Introduction B. Objective C. Scope D. Research Methodology - Primary Data - Secondary Data - Sampling Method - Data Analysis E. Limitation F. CHAPTER PLANNING G. Notes & References

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CHAPETER-2: A.

Introduction to Industry

B. Company Profile CHAPTER-3: A. Literature Review B. Theoretical Framework CHAPTER 4: A. Data Analysis CHAPTER 5:

Finding

`

Suggestion Conclusion Bibliography Appendix -

Questionnaires

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CHAPTER-1 INTRODUCTION Marketing: “The process of ascertaining consumer needs, converting them into a product or service & then moving the product or service to 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.” “Marketing is so basic that it can’t be considered a separate function. It is the whole business seems from the point of view of its final results that is from the customer’s point of view Business success is not determined by the producer but by the customer.” 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. It is one of the important line activities of business operation. It consists of the ownership of goods. Goods are not complete products until they are in the hands of the customer. It is the process by which products are made available to the ultimate consumers from their point of origin. It consists of all those activities, which are meant to ensure the flow of goods & services from the producer to the consumer. Therefore, marketing thinking must start with a crystallization of needs of consumer segment of which the efforts will ultimately be aimed. In terms of needs, the product or service must be developed or improved so that ultimately the product satisfies such needs of the consumer segment involved. Today marketer, have to take tough decisions because today’s market place is venomously more complex. Domestic markets, at one time safe from foreign invaders are now the happy hunting grounds of giant global corporation as well as global niche specialists. Major strides in technology have considerably shortened time & distance. New products are launched & astonishing pace are available worldwide in a short time. Communicating ones media are proliferating new distribution channels & formats keep appearing. Competitors are everywhere & hungry. ----------------- Sales Promotion@PepsiCo-2009-----------------

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Marketing Mix :( 4Ps OF MARKETING)

Marketing mix is a by-product of customer oriented marketing approach. After identifying the market & gathering the basic information about it, the next step in the direction of market programming is to decide upon the instruments & the strategy for meeting the needs of the customers & challenges of rival sellers. According to W.J. Stanton, “ Marketing mix is a combination of four elements such as product, pricing structure, distribution system & promotional activities used to satisfy the needs of an organization’s target market & at the same time achieves its marketing objectives. Every business enterprise has to determine its marketing-mix for the satisfaction of the needs of the customers. Marketing mix represents a blending of decision in four areas product, pricing, promotion & physical distribution. These elements are inter-related, because decision in one area usually affects action in the others. Marketing mix is marketing manager’s instrument for the attainment of marketing goals. It is composed of four ingredients, i.e., (i) product (ii) price (iii) promotional activities (iv) distribution. These elements constitute the core of marketing system of a firm. A marketing manager implements his strategies & policies through these instruments.

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Marketing mix represents a blending of four elements namely product, price, promotion & distribution. Determination of marketing mix is an important decision which the marketing manager has to take. The basic purpose of marketing mix is to satisfy the needs & wants of the customer in most effective manner. As the needs of customers & the environmental factors change, marketing mix is also changed.

Sale Promotion: Sales promotion is one of the 5 aspects of promotional mix. (The other four parts of the promotional mix are advertising, personal selling, direct marketing and publicity/public relations.) Media and non-media marketing communication are employed for a predetermined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples: 1. Under the crown (UTC) 2. Refilling. 3. Point of purchase displays 4. Rebates etc. Sales promotions can be directed at the customer, sales staff, or distribution channel members (such as retailers). Businesses can target sales promotions at three different audiences: consumers, resellers, and the company's own sales force. Sales promotion acts as a competitive weapon by providing an extra incentive for the target audience to purchase or support one brand over another. It is particularly effective in spurring product trial and unplanned purchases. Most marketers believe that a given product or service has an established perceived price or value, and they use sales promotion to change this price-value relationship by increasing the value and/or lowering the price. Compared to the other components of the marketing mix (advertising, publicity, and personal selling), sales promotion usually operates on a shorter time line, uses a more rational appeal, returns a tangible or real value, fosters an immediate sale, and contributes highly to profitability. Activities, materials, devices, and techniques used to supplement the advertising and marketing efforts and help coordinate the advertising with the personal selling effort. Sweepstakes are among the best-known sales promotion tools, but other examples include special displays, coupons, promotional discounts, contests, and gift offers. My subject of study is that how the company’s promotional schemes stimulates the products demand and how the retailers response over scheme, what nature of the outlets (i.e. seasonal &non-seasonal), how they know about promotional scheme (i.e. through SMS, salesman, CE etc), whether the outlets prefer to ----------------- Sales Promotion@PepsiCo-2009-----------------

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sell RGB [Regular glass bottle], PET [plastic bottle], CAN, Acquafina mineral water, Leher soda.

OBJECTIVE OF STUDY  To know the sales promotion tools used by PepsiCo Company.  To know about the sales promotion impacts on sale of the product of PepsiCo

Company in CTC.  To find out the best promotional tool preferred by the retailers.  To know the peak periods of sales promotion activities.  To analyze the strength & weakness of PepsiCo.

 To determine the standard of sales & services & public relation.

SCOPE OF STUDY Scope of study on PepsiCo India Ltd, the area of the study is CTC. In the duration of study and project period, I observed that the market response of PepsiCo Product is in good position, but sales volume is not at par. The Sales promotion policy of our company is affected due to competitor’s Marketing strategy. 1. I prepared questioners on sales promotions to know the response of current promotion packs given by company to retailers in the market. 2. Through this project, I will come to know that which type of promotional scheme outlets want. 3. I can easily know how the sale promotion affects the “Annual Sales volume”. 4. We can know the percentage of exclusive and mixed outlets of PepsiCo India products. 5. We can know the nature of outlets. (i.e. Seasonal vs. Non seasonal).

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6. We can know the reaction of the outlets owners towards promotional schemes. 7. Future forecast of sale after getting sale promotion to the outlets. Hence we can say that, a well planed & future oriented sales promotion will give a good sales volume.

Research Methodology The methodology used in conducting the research work on PEPSICO INDIA LTD major emphasis on its Sale Promotion which involved the following steps:

1. Defining the problem and deciding research Objective: 1. Shortfall of the sales volume after giving huge promotional activity towards outlets. 2. To get various information about PepsiCo Outlets.

2. Develop the Research plan: A plan was developed how to collect the required information i.e. whom to contact for gathering the relevant data. Data is the foundation of all research .It is the raw material for any research functions. Therefore, it requires great care to select the sources of data. Data or facts may be obtained from several sources. Data sources can either be primary or secondary.

A. Primary data: Collection of primary data was conducted by visiting various retail outlets for the preparation of the thesis report. • Personal Interview • Questionnaire.

B. Secondary data:

The sources from which secondary data was collected: • Press releases of the company. • Book, Magazines and Newspaper. • Newsletters and in-house journals. • Websites such as:

www.pepsicoindia.com, www.google.com, www.youngistaan.com

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www.wikipedia.com,

3. Contact Method: At first I directly met the retail stores & introduced myself as a MBA student & then collected the data required for my project work such as Name of outlet, Address, Contact person, Contact number, Type of shop, Monopoly or Mix counter, Visicooler is given by the company or own freeze, Stock in Visi, Quantity of each brand & at last Problems & Demands.

Respondent: • General Store • Betel Shop • Hotel • Restaurant • Fast food centre • Pay phone shop • Juice centre • Ice cream parlors • Grocery shop • Other shops

5. Collection of information: The primary information was collected by face-to-face and direct interview with the owners of outlets at the CTC. They are provided with the relevant information regarding the profile of the company. The secondary sources of information were various websites of the company, newspapers & magazines such as education times and times of India etc

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6. Analyzing the data:The data collected was carefully analyzed.

7. Reporting and conclusions and recommendations: This is the most vital part of the work undertaken. After collection and analysis of data, it was recorded in form as prescribed. The major part of the report is the findings also include charts and diagram etc, and the report also mentions the limitations of the project undertaken. The conclusions have been drawn out of the findings and various recommendations have been given in the end of the report.

Limitation of the study The major limitation of the study was that the depth study in the subject could not be done because of limited time.

The other limitations are:  The company doesn’t declare all the data & the internal data are kept confidential.  Though every sincere & possible effort has been made to collect the data, some retailers were uncooperative in providing the actual data.  The project is done in CTC may not represent the figure of the whole India.

 Since the data collected was representative based the accuracy is questionable.  Some questions created confusion among the respondents. 

The respondents were not interested to fill up the questionnaire due to lack of interest.

 The sample has taken only 20 respondents. They may not represent the whole

population. 

Lack of secondary data Collection of the recent brochures, in house journals, etc of the company was relevant to a little extent. But most of the necessary information is not available in the company.

CHAPTER PLANNING

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In the growing global competition, the productivity of any business concern depends upon the behavioral aspect of consumers. This topic deals with the sale promotion of the customer on PepsiCo product, service and solution in CTC. This project report contains 5 different chapters. The report begins with the introduction part which gives a brief idea regarding topic of the project. In addition to the above two points it also contains the rational of the study, objective, scope, research methodology, limitation and last but not least notes & references of preparing this management thesis. The second chapter discussion of the Industry Introduction to Industry: Beverages Industry and Company Profile which Includes: brief history of PepsiCo India, Company Profile, Mission, Milestone, Awards, PepsiCo logo & Product, Performance with Performs, SWOT analysis PepsiCo India. The third chapter provides a comprehensive coverage of literature review & the theoretical approach for the project. The fourth chapter provides a comprehensive coverage the total database of the survey & analysis of data through graphical representation of data. The fifth chapter deals with the findings and conclusion part which is very much important after analysis is made. In each of the five chapters as described above, every chapter has been scheduled in a manner so as to enable the reader to appreciate the contents easily. The report is supported by figures and data where ever necessary a view to assist the reader in developing clear cut understanding of the topic. I hope this report will be extremely useful for those it is meant. Constructive healthy suggestions for improvements of the report will be great fully appreciated.

REFERANCE 1. Saxena, Ranjan, ‘Marketing Management’, TATA McGRAW HILL, New Delhi, Third Edition. 2. Kotler, Philip, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha,‘Marketing Management’, PEARSON Prentice Hall, New Delhi, Twelfth Edition. 3. Ramaswamy, V. S., S Namakumari, ‘Marketing Management’, MACMILLAN INDIA LTD., Third Edition.

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4. Schatzman, Bovee Thill, ‘Business Communication Today’, PEARSON Prentice Hall, New Delhi, Seventh Edition. 5. Bryman, Alan, Emma Bell, ‘business research method’, OXFORD, second Edition.

CHAPTER: 2  Introduction to Industry:  Beverages Industry  Soft drinks market in India 

Company Profile: 

A brief history of PepsiCo India

 Company Profile  

Mission &Vision Milestone

 Tripty Drinks Pvt. Ltd  Performance with Purpose  PepsiCo logo & Products Brands 

SWOT analysis of PepsiCo India.

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Introduction to Industry: BEVERAGES INDUSTRY Soft drink was started with the idea of quenching the thirst of the persons traveling. It was also felt that reliable good water was not available everywhere. So people would rely on their packed bottle and with the idea it made these drink available mostly at these place where water was not available is on highways and long distance train. Slowly and slowly with its beautiful tests these become very poplar and they are not only available in the markets and street corner but also people have started keeping it in their houses. Parle export Pvt. limited is regard as the first Indian company introducing Limca a Lemon drink Complimentary to their well entrenched gold spot in 1970. The credit of popularizing the soft drink goes to coca cola this was the drink, which was linked, by all ladies, gents and children. Now a day, the soft drink for quenching Thirst but it looks more often they are taken of habits. Gold spot is considered as the first branded soft drink established.

Soft drinks market in India Non-alcoholic soft drink beverage market can be divided into fruit drinks & soft drinks. Soft drinks can be further divided into carbonated & non-carbonated drinks. Cola, lemon & oranges are carbonated drinks while mango flavor comes under non-carbonated category. India is one of the top five markets in terms of growth of the soft drinks market. The per capita consumption of soft drinks in the country is estimated to be around 6 bottles per annum in the year 2003. It is very low compared to the corresponding figures in US (600+ bottles per annum). But being one of the fastest growing markets and by the sheer volumes, India is a promising market for soft drinks. The major players in the soft drinks market in India are PepsiCo and Coca-Cola Co, like elsewhere in the world. Coca-

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Cola acquired a number of local brands like Limca, Gold Spot and Thums Up when it entered Indian market for the second time. Pepsi Co’s soft drink portfolio also consists of Miranda and 7Up along with Pepsi. The market share of each of the company is more or less the same, though there is a conflict in the estimates quoted by different sources The major ingredient in a soft drink is water. It constitutes close to 90% of the soft drink content. Added to this, the drink also contains sweeteners, Carbon dioxide, Citric Acid/Malic acid, Colors, Preservatives, Anti Oxidants and other emulsifying agents, etc. The market in India is slowly moving from non-alcoholic carbonated drinks to fruit based drinks and also to plain bottled water. Soft drinks market in India grew at a slower rate in 2003 and 2004 compared to 2002.In 2004, with 12% growth volume reached over 3.0 billion liters. However, the growth rate marked a slowdown from just below 17% in 2002. This poorer performance stemmed mainly from slower growth within carbonates. Bottled water and 100% juices continued to expand at robust rates, appealing to the health conscious.

BRIEF HISTORY PepsiCo, Inc. is founded by Donald M. Kendall, President and Chief Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay, through the merger of the two companies. Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist. Frito-Lay, Inc.was formed by the 1961 merger of the Frito Company, founded by Elmer Doolin in 1932, and the H. W. Lay Company, founded by Herman W.Lay, also in 1932. Herman Lay is chairman of the Board of Directors of the new company; Donald M. Kendall is president and chief executive officer. The new company reports sales of $510 million and has 19,000 employees.

COMPANY PROFILE PepsiCo entered India in 1989 and has grown to become one of the country’s leading food and beverage companies. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India. PepsiCo India and its partners have invested more than U.S.$700 million since the company was established in the country. PepsiCo provides direct employment to 4,000 people and indirect employment to 60,000 people including suppliers and distributors. PepsiCo nourishes consumers with a range of products from treats to healthy eats that deliver joy as well as nutrition and always, good taste. PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and

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Mountain Dew, in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana100% fruit juices, and juice based drinks – Tropicana Nectars, Tropicana Twister and Slice. Local brands – Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands. PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay products are free of trans-fat and MSG. It manufactures Lay’s Potato Chips, Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands. The company’s high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers. Frito Lay’s core products, Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary nutritional labeling on their packets. The group has built an expansive beverage and foods business. To support its operations, PepsiCo has 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. In addition to this, PepsiCo’s Frito Lay foods division has 3 state-of-the-art plants. PepsiCo’s business is based on its sustainability vision of making tomorrow better than today. PepsiCo’s commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers.

Manufacturer Country of origin Introduced

PepsiCo. United States 16 June 1903

Indra Krishnamurthy Nooyi (born October 28, 1955 in Chennai, Tamil Nadu, India) is the chairwoman and chief executive officer of PepsiCo, the world's fourthlargest food and Beverage Company. On August 14, 2006, Nooyi was named the

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successor to Steve Reinemund as chief executive officer of the company. She was effectively appointed as CEO by PepsiCo's board of directors on October 1, 2006. According to the polls Forbes magazine conducted, Nooyi ranks fifth on the 2007 list of The World's 100 Most Powerful Women.

Mission of PepsiCo

“Our mission is to be the world’s premier consumer Products Company focused on convenient foods & beverages. We seek to produce financial rewards to investors as we provide opportunities for growth & enrichment to our employees, our business partners & the communities in which we operate & in everything we do, we strive for honesty, fairness & integrity.”

Vision of PepsiCo

“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 & a focus on environmental stewardship, activities to benefit society, & a commitment to build shareholder value by making PepsiCo a truly sustainable company.

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MILESTONES 2008 Milestones • PepsiCo Honored With 2008 Energy Star Partner of the Year Award

2007 Milestones • PepsiCo signs Maria Sharapova for International endorsement of Gatorade and Tropicana • Tropicana launches Tropicana Healthy Heart with Omega-3s, the first national orange juice to include omega-3s • Pepsi launches “Design Our Pepsi Can” National Promotion • Indra Nooyi receives the Outstanding American by Choice Award • PepsiCo makes Fortune magazine’s ‘100 Best MBA Employers’ list • Pepsi, Diet Pepsi and Mountain Dew topped the 2007 Brand Keys Customer Loyalty Engagement Index which tracks consumers’ relationships with brands • Mountain Dew Unveils unique limited edition aluminum bottles • PepsiCo named a 2007 Working Mother ‘Best Company for Multicultural Women’ • PepsiCo wins two awards –Best Environmental/Wildlife Campaign and Best Cause Marketing Event -- at Fifth Annual Cause Marketing Halo Awards

2006 Milestones • PepsiCo India re-launches Mirinda • PepsiCo, the National Hockey League (NHL) and the National Hockey League Players' Association (NHLPA ) sign an exclusive multi-year beverage and snack deal

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• PepsiCo, National Hockey League and National Hockey League Players Association sign multi-year deal, giving PepsiCo

exclusive

rights

beverage, sports beverage, bottled water and snack categories. With this

in

the deal,

Gatorade becomes the official sports drink of NHL

Tripty Drinks (P) Ltd. M/S Tripty Drinks (P) Limited is a well known manufacturing organization in the state of Orissa for manufacturing & sales of Soft Drinks since last 32 years. This unit was incorporated itself as a manufacturing unit in the year 1968 & started its production in 1969. Since its inception the unit is engaged in manufacturing soft drinks of different brands taking franchisee from the brand name owner. Since 1991 Tripty drinks have been manufacturing “PepsiCo” brand of products. In the State of Orissa PepsiCo products is brought to you by Tripty Drinks, Jagatpur best professionally managed company promoted by the Jaipuria Group. The promoter’s vast experience for the last thirty five years in manufacturing national & world renowned brands has helped to deliver to consumer’s consistent quality comparable to the best of International Standards. Pepsi is the ideal choice for both the classes as well as the masses for individual consuming low quantities as well as high establishment. The seemingly vast gap in catering to a vast & varied consumer base has been bridged by introducing “Contain no fruit in a hygienic convenient bottle packages.” The company firmly believes in modernization & up-gradation of facilities in order to offer its customers the very best. At Tripty Drinks the implicit belief is in achieving leadership status through quality assurance & every effort is focused in this direction. The latest state-of-the-art plant delivers the finest quality juice, adhering to the most stringent norms. Strict supervision is enforced by diligent people at every step of the production process. The juice products manufactured are hygienically handled & very effort is made to retain its freshness. Consistency in taste is achieved to the expert in-house QC Professionals By blending in superior quality with the fine arena of business the company looks forward to establishing leadership in near future. By concocting a superb strategy the professionals at Tripty Drinks have exemplified their marketing & sales capabilities to enhance the value of PepsiCo. The marketing gurus at Tripty drinks have understood the finer nuances of marketing. The significance ----------------- Sales Promotion@PepsiCo-2009-----------------

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of the 5 p’s, product, packaging, pricing, place & promotions has been used to fine turn the strategies. The core management team controls the entire network on all India bases & finally monitors the movement of the product in the market place. The daily feedback allows for prompt & swift corrective action to tackle problems, strengthen the brand & achieve rapid growth of all those who associate with publicity & advertising strategies have been designed to be in tandem with the market needs, & this is expected to further boost the sales as well as create a brand name to reckon with.

Location & area coverage by Tripty Drinks M/S Tripty Drinks (P) Limited is located at Jagatpur Industrial Estate, 7 km away from Cuttack City, the old capital of the state of Orissa & heart of business activities in the state. The factory is situated on the bank of the river “Mahanadi”, the largest river in the state & in the side of National Highway 5. The factory is also close to the railway station & correctly located for transport of raw materials & finished products. The factory acquires 7.6 acres of land out of which 2.5 acres are built-up area for factory’s plant & machinery & administrative offices.

Silent Features of the Company Date of incorporation Commencement of production Registered office

: :

12.05.1967 16.07.1968

:

Production capacity

:

Go down stock capacity Total land area Built up area Market covered

: : : :

Jagatpur, Cuttack754021 38 lakhs crates per annum 1,20,000 crates 7.6 acres 2.5 acres Orissa state

Marketing System Product: “Pepsi” carbonated water, sugar, added flavor package & drinking water. Introduction of Natural color drink is on the cards. Positioning:

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Besides retailing, the company focuses on institutional sales, special event to make the product available for additional mileage. 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 & incentives are also given keeping on eye on the competitive activity from time to time. Company has also introduced a consumer 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 & participation in important local festival are also a part of promotional measure of the company. Channel of Distribution: 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’s focus is on penetration in the periphery rural area. The Manufacturing Process The process of manufacturing of aerated water (Soft Drinks) & fruit Juice under PepsiCo Brand is divided into mainly five parts such as: • Water Treatment • Syrup Making • Bottle Washing

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• Filling • Crowning & Coding • Testing of the product Water Treatment: Water Treatment is very essential in soft drinks plant as the nature & quality of water varies from place to place. To set uniform & standard water the process of treatment is carried on. The water taken from bore well by the help of water pump & pipe lines are collected in a storage tank where is pre-chlorinated by chlorinate & then by the help of pipelines comes to a treatment tank called coagulator tank where this water solution of different strength of bleaching powder, ferrous sulphate, hydrate line are added through dosing pump to reduce alkalinity, hardness & kill the bacteria. A mechanical stirrer mixes the chemical & then the suspended water settles down as sludge & clean water passes through retention tank. From this tank, the water passes through sand filter containing fine sand & pebbles & carbon filter contains granular carbon & finally through water polisher, micron filter, UV lamp to ensure clear & sanitary water for use. Further water used in the bottle washer & boiler needs softening. For this purpose the water from storage tank, after passing through two filter beds containing fine sand & granular carbon happens. Through a bed of resin where it is softened, this soft water is essential for use in bottle washer to reduce scale formation inside the machine. Syrup Making: For syrup making of a particular brand, collect quantity of sugar, water activated carbon (Powder) & Hyflow super cell known as filter aid are taken into a sugar dissolving tank which is specially designed making a vacuum space to enter steam & also fitted by a motor with agitator. Sugar syrup called raw syrup is prepared by developing the sugar with continuous stirring & heating by steam supplied by oil-fired boiler. This hot syrup with the help of a pump is filtered through a filter press attach with a series of quality filter paper to separate out carbonated particles. Bottle Washing: Bottle Washing is an important part in soft drink plant. The emptied durable & returnable bottles are used & returned from market in plastic crates are fed to bottle washing machine. The machine double end system with circular chin to carry the bottles caustic soda, tri-sodium phosphate & sodium-gluconate are added to the caustic tank filled in with water heated by steam supplied by the boiler. The empty bottles enter to the ----------------- Sales Promotion@PepsiCo-2009-----------------

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hot caustic tank in one end & after being cleaned by the hot caustic solution & finally washed with water through spray-jets fitted are discharged in other end. Then washed bottles pass on conveyor chain against laminated board for further inspection in the direction filling machine. Filling: Finished syrup &treated water line are connected to a dosing pump which mixes syrup & water with the ratio of 1:5 & syrup mixed with water entered to carbonated tank to mix with carbon dioxide gas are preserved in cylinder for use. The cylinders are connected through CO2 manifold tank to use requisite quantity of gas. The syrup passes through PHE, which is cooled itself by circulation of chilled, glycol supplied chilling compressor. To run the machine F-22 gas is used. The syrup being chilled easily mixes with CO2 gas & enters to the filter for bottling. The filter is fitted with filling valves & lift Cylinders. Crowning & Coding: After beverage is filled in bottles it immediately goes to the crowner where with the help of crown crock the bottles are sealed to protect the carbonating, flavor, outside contamination & spoilage till the contained beverage is consumed. Then sealed bottles passed on the conveyor chain are coded by a coding machine on their way to out end. The sealed bottles are inspected properly against inspection light while passing through the conveyor fitted with SS chain. The empty plastic crates passing through a conveyor enter to crate washer machine & it is washed & moves through the conveyor where finished products are accumulated. Then the products are kept in plastic crates, which are durable in nature & returnable by buyer, put on palates & sent to shipping for shipment. Test of Products: Finally the finished syrup during bottling is tested in laboratory to meet the permanent & also to get standard & quality products.

Performance with Purpose Performance with Purpose articulates PepsiCo India's belief that its businesses are intrinsically connected to the communities and world that surrounds it. Performance with Purpose means delivering superior financial performance at the same time as we improve the world. To deliver on this commitment, PepsiCo India will build on the incredibly strong foundation of achievement and scale up its initiatives while focusing on the following 4 ----------------- Sales Promotion@PepsiCo-2009-----------------

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critical areas that have a business link and where we believe that we can have the most impact. 1. PepsiCo India continues to replenish water & expand its expertise in water conservation PepsiCo 2. PepsiCo India’s Agri-Partnerships with farmer’s helps farmers across the country earn more. 3. PepsiCo India continues to convert waste to wealth, to make our cities cleaner. This award winning initiative will establish zero solid waste centers in districts throughout. 4. PepsiCo India will stay committed to the health & well-being of children. It will continue to provide children with a healthy & fun portfolio while simultaneously tackling the calories outside of the equation by expanding its gets an active programme for kids especially for school going children.

PepsiCo logos

PEPSI

SEASON’S

BEST DIET PEPSI

LIPTON ICE

PEPSI ONE

TROPICANA

PEPSI MAX

GATORADE

SABRITAS

RUFFLES

TEA

JUI

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FRAPPUCCINO MIRINDA

7UP LAY’S

MOUNTAIN DEW SIERRA MIST

DORITOS DOLE JUICE

AQUAFINA

TOSTITOS

ROLD GOLD

SOBE

PepsiCo Brands 1. Pepsi – The mother product. It is a carbonated water. 2. Slice is a line of fruit-flavored soft drinks. 3. 7 Up is a brand of a lemon-lime flavored non caffeinated soft drink. 4. Mirinda is a brand of soft drink available in fruit including orange flavors. 5. Mountain Dew is a caffeinated, sweet, citrus flavored soft drink produced. 6. Acquafina Mineral Water:

SWOT Analysis of PepsiCo STRENGTH OF PEPSICO INDIA: 1. Its brand.

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2. Huge market coverage, company existence not only in urban area but also in the rural area 3. Large number of product line to satisfy consumer. 4. Verity of scheme for the retailer throughout the year. So, that retailer will earn huge profit and also get satisfaction after selling PepsiCo product. 5. Company also gives time to time schemes for the consumer. So that, final consumer interest for repurchase &enjoy the benefit. 6. PepsiCo India’s Agri-Partnerships with farmers help farmers across the country earn more. 7. Good CSR Image.

WEAKNESS PEPSICO INDIA:

1. In distribution channel “distributor” is the additional person which is not responsible for the company, because there is no direct link between company and the retailer. 2. Sales person also not feel that they are working for company, they think only for the distributor. 6. “Pepsi” the brand is not appreciated by the BBSR consumer, which is mother product.

OPPORTUNITY OF PEPSICO INDIA 1. Pepsi could develop new products or product designing of Pepsi Brand for the BBSR market 2. Competitors have poor products such as Fanta, limca. 3. End-users respond to new ideas, such as launch other flavor of slice. ----------------- Sales Promotion@PepsiCo-2009-----------------

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4. Pepsi have a great chance to extend to rural area. 5. New specialist applications, such as Sponsorship, trade fair, free sample.

THREATS OF PEPSICO INDIA 1. Market demand very seasonal. 2. Retention of key staff is critical. 3. Retailer distract from core business, such as retailer demanded to keep slice only and not for pepsi. 4. Legislation could impact; mean local taxation policy and business policy of state & central government.

CHAPTER:-3 A. Literature Review B. Theoretical Framework ----------------- Sales Promotion@PepsiCo-2009-----------------

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Literature Review Sales: Sales are the activities involved in selling products or services in return for money or other compensation. It is an act of completion of a commercial activity. The "deal is closed", means the customer has consented to the proposed product or service by making full or partial payment (as in case of installments) to the seller. Academically, selling is thought of as a part of marketing, however, the two disciplines are completely different. Sales often form a separate grouping in a corporate structure, employing separate specialist operatives known as salesmen (singular: salesman). Sales are considered by many to be a sort of persuading "art". Contrary to popular belief, the methodological approach of selling refers to a systematic process of repetitive and measurable milestones, by which a salesman relates his offering of a product or service in return enabling the buyer to achieve his goal in an economic way. A sale is completed by the seller, the owner of the goods. It starts with consent (or agreement) to an acquisition or appropriation or request followed by the passing of title (property or ownership) in the item and the application and due settlement of a price, the obligation for which arises due to the seller's requirement to pass ownership, being a price he is happy to part with ownership of or any claim upon the ----------------- Sales Promotion@PepsiCo-2009-----------------

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item. The purchaser, though a party to the sale does not execute the sale, only the seller does that. To be precise the sale completes prior to the payment and gives rise to the obligation of payment. If the seller completes the first two above stages (consent and passing ownership) of the sale prior to settlement of the price the sale is still valid and gives rise to an obligation to pay.

Sales techniques The sale can be made through: i. Direct Sales, involving person to person contact a. Buying Facilitation Method ii. Pro-forma sales iii. Agency-based a) Sales agents (real estate, manufacturing) b) Sales Outsourcing through direct branded representation c) Transaction sales d) Consultative sales e) Complex sales f) Consignment g) Telemarketing or telesales h) Retail or consumer iv. Door-to-door or traveling salesman v. Request for Proposal is an invitation for suppliers, through a bidding process, to submit a proposal on a specific product or service. An RFP is usually part of a complex sales process, also known as enterprise sales. vi. Business-to-business — Business-to-business sales are much more relationship based owing to the lack of emotional attachment to the products in question. Industrial/Professional Sales is selling from one business to another vii. Pharmaceuticals Sales viii. Electronic Web — Business-to-business and business-to consumer

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Electronic Data Interchange (EDI) is a set of standards for structuring information to be electronically exchanged between and within businesses. ix. Indirect, human-mediated but with indirect contact Mail order

Sales and marketing relationship Marketing plays a very important part in sales. If the marketing department generates a potential customers list, it can be beneficial for sales. The marketing department's goal is to bring people to the sales team using promotional techniques. • Advertising • Sales promotion • Publicity • Public Relations. In most large corporations, the marketing department is structured in a similar fashion to the sales department and the managers of these teams must coordinate efforts in order to drive profits and business success. Driving more customers "through the door" gives the sales department a better chance by ratio of selling their product to the consumer.

Promotion It involves disseminating information about a product, product line, brand, or company. It is one of the four key aspects of the marketing mix. (The other three elements are product management, pricing, and distribution.) Promotion is generally subdivided into two parts:

i. Above the line promotion: Promotion in the media (e.g. TV, radio, newspapers, Internet andMobile Phones) in which the advertiser pays an advertising agency to place the ad.

ii. Below the line promotion: All other promotion. Much of this is intended to be subtle enough that the consumer is unaware that promotion is taking place. E.g. sponsorship, product placement, endorsements, sales promotion, merchandising, direct mail, personal selling, public relations, trade shows The specification of these four variables creates a promotional mix or promotional plan. A promotional mix specifies how much attention to pay to each of the four subcategories, and how much money to budget for each. A promotional plan can ----------------- Sales Promotion@PepsiCo-2009-----------------

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have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image. An example of a fully integrated, long-term, large-scale promotion are and Pepsi Stuff.

Objectives of Sale Promotion 1. Simulating business user or household for demand products 2. Improving the market performance of middle men and sales people. 3. To attract new customer. 4. To increase impulse selling. 5. To encourage greater use by existing customers. 6. Superior Merchandizing. 7. Increase stocks & sales push. 8. Better product knowledge (as a spin off). 9. Better shelf-space at retail stores. 10. Immediate results. 11. Improvement Dealer response in future. 12. To supports the advertising program. 13. To support the sales team drive. 14. To support the sales channels - trade. 15. To accelerate the sales 16. To drive the people traffic to the point of sales. 17. To stimulate the people to make the buying decision. 18. To influence the people to choose a particular brand. 19. To help the retail to move the merchandise 20. To help to liquidate the stocks. 21. To help to overcome the competition. 22. To help to gain the market share.

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Internal Factors: • Promotion is accepted by top management as effective sales tools. • Now a day’s top level manager relies and accepts that sales promotion affects sales it will increase the sales volume. • Product managers are qualified to use sales promotions tools product manager relies the importance of sales promotions hence they practice sales promotion tools effectively. • It is the duty product manager to increase the sales volume and this attracts the sales promotions tools to achieve the aimed objective.

External Factors: • There is wide spread use of branding promotional activities are essential as they ar more practical than advertising. • Competitor have become promotional-minded there is cut-throat competition and the market is flooded with numerous products hence promotional activities are essential. • During the period of inflation & recession the consumer are more deal oriented and the promotional technique facilitate sales. • The present stage of trade demands more deals from manufacturers.

Types of Sales promotion

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Consumer Sales Promotion Sales promotions targeted at the consumer are called consumer Sales promotions. Consumer sales promotions are steered toward the ultimate product users— typically individual shoppers in the local market. Following are some of the key techniques used in consumer-oriented sales promotions.

Consumer sales promotion techniques: 1. Price deal: A temporary reduction in the price, such as happy hour 2. Loyal Reward Program: Consumers collect points, miles, or credits for purchases and redeem them for rewards. Two famous examples are Pepsi Stuff and A Advantage. 3. Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage marked on the package. 4. Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price (for example, 25 percent extra). 5. Coupons: coupons have become a standard mechanism for sales promotions. 6. Loss leader: the price of a popular product is temporarily reduced in order to stimulate other profitable sales 7. Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for delivery. 8. On-shelf couponing: Coupons are present at the shelf where the product is available. 9. Checkout dispensers: On checkout the customer is given a coupon based on products purchased. 10. On-line couponing: Coupons are available on line. Consumers

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print them out and take them to 11. Mobile couponing: Coupons are available on a mobile phone. Consumers show the offer on a mobile phone to a salesperson for redemption. 12. Online interactive promotion game: Consumers play an interactive game associated with the promoted product. See an example of the Interactive Internet Ad . 13. Rebates: Consumers are offered money back if the receipt and barcode are mailed to the producer. 14. Contests/sweepstakes/games: The consumer is automatically entered into the event by purchasing the product. 15. Point-of-sale displays: Products or posters are kept near the billing counter to remind about the product.

Trade Sales Promotion: Sales promotions targeted at retailers and wholesale are called trade sales promotions. Trade sales promotions target resellers wholesalers and retailers who carry the marketer's product. A trade sales promotion is targeted at resellers wholesalers and retailers who distribute manufacturers' products to the ultimate consumers. The objectives of sales promotions aimed at the trade are different from those directed at consumers. In general, trade sales promotions hope to accomplish four goals: 1) Develop in-store merchandising support, as strong support at the retail store level is the key to closing the loop between the customer and the sale. 2) Control inventory by increasing or depleting inventory levels, thus helping to eliminate seasonal peaks and valleys. 3) Expand or improve distribution by opening up new sales areas (trade promotions are also sometimes used to distribute a new size of the product). 4) Generate excitement about the product among those responsible for selling it. Some of the most common forms of trade promotions profiled below include point-of-purchase displays, trade shows, sales meetings, sales contests, push money, deal loaders, and promotional allowances.

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i. Trade allowances: short term incentive offered to induce a retailer to stock up on a product. ii. Dealer loader: An incentive given to induce a retailer to purchase and display a product. iii. Trade contest: A contest to reward retailers that sell the most products. iv. Point-of-purchase displays: Extra sales tools given to retailers to boost sales. v. Training programs: dealer employees are trained in selling the product. vi. Push money: also known as "spiffs". An extra commission paid to retail employees to push products. vii. Trade discounts (also called functional discounts): These are payments to distribution channel members for performing some function.

Merits of Sales Promotions: 1. It stimulates in the consumers & attitudes towards the products. 2. It creates a better incentive in the consumers to make a purchase. 3. It is a demand creator. 4. It gives direct inducement to the consumer to take immediate action. 5. It is flexible. 6. It can be used at any stage of any product introduction. 7. Sales promotion leads to low unit-cost. 8. It is an effective supports of sales. 9. It helps the salesmen makes his efforts more productive. 10. The promotional tool is the most effective to be used in increasing the sales volume.

Demerits of Sales promotions: 1. Sales promotions are only supplementary devices to supplement selling efforts of others promotional tools. 2. Sales promotions activities are having temporary and short life. 3. Brand image is affected by too many sales promotions activities consumer are of the opinions that due to the lack of popularity and over stocking of products of a company these sales promotional activities are conducted. ----------------- Sales Promotion@PepsiCo-2009-----------------

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4. Discount or rebates are allowed by boosting the prices of the goods. 5. An immediate increase in demands is stimulated by this it is expensive and leads to a rise price of the products. 6. Sales promotion increases the expenses of the company on Sales & distribution expenses. 7. Sales promotion increases the burden on the company men. 8. Sales promotion increases the paper work lengthy & complication too. 9. Sales promotion decreases the storage capacity in the store house. 10. Sales promotion increases the maintenance cost of the firm. 11. Sales promotion gives the chance to the distributor to do malpractice.

THEORITICAL FRAMEWORK Above literature review give the information about the sale, promotion, and salepromotion relationship, type of sale promotion, merit & demerit of sale promotion. From the type of sale promotion I considered only the “Trade sales promotion” because my scope of study restricted to the trade only. There is the various sale promotion techniques is there such as [1] Trade allowances: short term incentive offered to induce a retailer to stock up on a product. [2] Dealer loader: An incentive given to induce a retailer to purchase and display a product. [3] Trade contest: A contest to reward retailers that sell the most products. [4]Pointof- purchase displays: Extra sales tools given to retailers to boost sales. [5] Training programs: dealer employees are trained in selling the product. [6] Push money: also known as "spiffs". An extra commission paid to tail employees to push products. [7] Trade discounts (also called functional discounts): These are payments to distribution channel members for performing some function. But, every trade promotional activity is not effective due to the following reason: 1. Schemes not accepted by the customer, and 2. Scheme is not received by the customer.

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First of all I decided to prepare the questionnaire according to my topic with the help of different book & collected information from the magazine & then decided to walk in for the direct interview from the owner of the outlets of 40 different stores. Next step, I decided to take a random sample of 20 outlets which is the representative of the whole population. Then, prepare table from the collected information & also represent those numeric figure on different chat with the analysis. Then I decided to write finding & then conclusion of the project report.

CHAPTER: 4  Data Analysis

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1. Nature of Outlets

The survey revealed that about 90% of the total outlets are non seasonal, that means they sale PepsiCo product throughout the year. And rest 10% outlets are seasonal.

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2.Type of outlets:

From the above figure it is clear that out of 20 outlets, 9 Outlets are exclusively Pepsi (PSI) counters, another 5 outlets are of mixed type & the rest 6 outlets are exclusively Coca-Cola (CCX) counters.

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3.FOCUS BRAND

From the above study I knew that most of the outlets focus on glass bottles (RGB). Other few outlets focus on PET, CAN, Mineral Water or Soda.

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4. KNOWING ABOUT SCHEME

Sourcesof Inforation By Salesman, 42% 45% By CE, 23%

40% 35%

SMS, 30%

30%

other source, 5% other source

25% 20%

By CE

15%

By Salesman

10% 5%

SMS

0%

From this figure it is clear that most of the outlets get information about the promotional schemes from the salesman of the company. Rests of the outlets get information by SMS, Customer executives or any other sources of information.

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5.TYPES OF SCHEMES

The above figure shows that the regular promotional scheme is very much popular because the retailers want permanent income throughout the year. They also like various promotional schemes such as UTC and Scratch card .Incentive based scheme is not much popular because in this scheme some target is given to the owners of the outlets.

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6.

PROMOTIONAL SCHEME RECEIVED BYOUTLETS

UTC, Refilling & Scratch card Scheme is most popular & known scheme received by maximum outlets .Gift and Discount /Rebate schemes are not received by maximum outlets because they have some conditions to be fulfilled for getting it.

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7. PROMOTIONAL SCHEMES APPRECIATED BY THE OUTLETS

After the survey, I came to know that the retailers appreciate mostly two types of promotional schemes i.e. UTC & Refilling because; here the owners get Benefits of the scheme from sales person on the spot of purchase.

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8.Promotional tools Available at different outlets

From the survey I observed that PepsiCo provides various types of promotional tools to the outlets. The company has provided VisiCoolers and Signboards to maximum outlets but, the supply of Racks and POS Display is not so significant though they can increase sales volume.

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9. Effect of promotional Schemes on Purchase Behavior of Retailers

According to the Survey it is found that maximum retailers want to purchase more products when promotional offers are given to them even if they have a large stock.

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10. Promotional expenses throughout the year

During summer (Mar-June) the demand for cold drink is high so PepsiCo reduces the promotional expenses and at rest of the period promotional expenses is high due to low market demand. During the winter season (Nov-Feb) promotional expenses is maximum.

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11. Factors affecting sales growth

From the above survey it is clear that sales promotion activity such as high margin, more schemes & heavy advt. has a large impact on sales growth.

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12. Reaction of Outlets on overall marketing activities of PepsiCo

Most of the outlets are satisfied but some of the outlets report insufficient supply of products and delay in redressal of customer grievances such as repair of Visi Cooler etc.

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CHAPTER - 5 • Finding • Suggestion • Conclusion

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Findings 1. The

most basic objective of any sales promotions is to provide

extra value that encourages purchase. 2. Short

term sales increase is required to reduce inventory.

Promotions like price-off or bonus pack gives large & immediate benefit. 3. Sales

promotion schemes like price-off or free gift induce

customers to buy a new brand. 4.Trade promotions are designed to gain distribution and shelf space. 5. Sales 6. Sales

promotions give the consumer an incentive to buy. promotion can be measured objectively to judge their

success. 7.

PepsiCo gives various promotional tools (VisiCooler, Racks,

Signboards, POP displays) and profitable schemes to the retailers that increase their sales volume. 8. 9. Pepsi

Promotional expenditures ultimately increase sales volume. provides its products at a special price to various shopping

malls such as Big Bazaar, Pantaloons, Vishal Mega mart, In and out, Sasta Bazaar. Reliance Fresh etc with an aim to promote the Brands.

Suggestion ----------------- Sales Promotion@PepsiCo-2009-----------------

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1.

Company should give knowledge to the salesman about the promotional Scheme so that they can better understand the importance of promotional activities.

2.

There should be a regular meeting between distributor & company about the implementation of sales promotion.

3. Fast repairing of ViSi Cooler will gain the faith & goodwill of the customer. 4.

Company should provide racks to more outlets to keep Pet bottles for display.

5.

Company should adopt the promotional activities properly and not in a trial and error method.

6.

Company should arrange training or Seminar programs for retailers to make them aware about the company’s sales objective and enhance their selling ability.

7.

Company should provide more profitable schemes so that the retailers can happily accept it.

8.

Company should spend more on Promotional schemes on the weaker products like Pepsi, M.dew etc to boost up Sales.

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SALES PROMOTION is a promise made to the consumers & retailer by the company. Sales promotion, not only has Functional and Mental dimensions but also Social and Spiritual dimensions. The challenge in front of Indian organizations today is to first understand and then satisfy the needs of the customers. The needs of the customers today are experiences and not just the products. The Indian Organizations have to concentrate on delivering the experiences to the customers leading to satisfaction and association with all the dimensions of the brand. These experiences can be delivered by involving the customer in the supply chain which demands improvement from the organization in terms of training the employees and aligning the culture to deliver value to the customers. The participation of the customers can be ensured by using novel methods of communication and branding. The Profit and Sustainability of Indian Brands will depend on how efficiently and quickly the organization can adapt to these new demands of the customers.

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BIBLIOGRAPHY BOOKS: 1. Saxena, Ranjan, ‘Marketing Management’, TATA McGRAW HILL, New Delhi, Third Edition. 2. Kotler, Philip, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha,‘Marketing Management’, PEARSON Prentice Hall, New Delhi, Twelfth Edition. 3. Ramaswamy, V. S., S Namakumari, ‘Marketing Management’, MACMILLAN INDIA LTD., Third Edition. 4.C.R.Kothari, Business Research methodology , New age publication. 5. Bryman, Alan, Emma Bell, ‘business research method’, OXFORD, second Edition.

MAGAZINES, JOURNALS & NEWS PAPERS 1. Business world.

3. Economics Times.

Websites: www.pepsicoindia.com, www.wikipedia.com, www.google.co.in, www.youngistaan.com www.scribd.com

Questionnaire ----------------- Sales Promotion@PepsiCo-2009-----------------

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1. Name of Outlets: …………………………………………………. 2. Contact Number: …………………………………………………. 3. Location of Outlets: …………………………………………… 4. Name of Distributor: ……………………………. 5. Nature of Outlets: Seasonal:

Non-Seasonal:

6. Type of Outlets:

Exclusive:

Mixed:

7.

Focus Brand: RGB/PET/CAN/Mineral Water/Soda

8.

How you know about Scheme: SMS/ Salesmen/ C.E/ Other sources

9. Which Scheme you know: ………………………………………. 10.Which type of Scheme you received: ………………………… 11.Which type of scheme you appreciate: ……………………… 12.How the processes to getting scheme are:

Slow/ Fast.

13. Does

the sales man daily visit your store? Y/N

14. Does

the salesman tell you about company’s Scheme:

15.Is Any Agreement: Yes/ No. If yes, then 16. Do

1.with PSI:

2.with CCX:

you know the name of C.E?

17. Promotional 18. Do

Y/N

tools Available: Rack/Visi/Signboards/pop Display.

you purchase PepsiCo products if offers are given to you even if you

have a large stock? 19. Why

do you sell pepsi products? High margin/High Customer demand/More

schemes/Product quality & packaging/heavy Advertisement. 20. Are

you satisfied with the total marketing effort of PepsiCo? Y/N

21. Problem/Suggestion……………………………………

Signature

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