abhishek_pepsi_abhi

8/7/2019 Abhishek_pepsi_abhi

http://slidepdf.com/reader/full/abhishekpepsiabhi 1/53

1

INTRODUCTION

India with a population of more the 100crore is potentially one of the largest consumer in

the markets in the world with urbanization and development of economy, tastes and

interests of the people changes according to the advance nation.

Beverage industry is one of the fast growing industries in India. It can be divided into two

sections i.e. carbonated and noncarbonated. The carbonated drinks can be further

classified into Cola, Lemon, orange, Mango & Apple segments etc.

This project is basically a survey conducted indifferent parts of Patna central in this

survey I went to all the outlets in the area of Patna central that were currently selling soft

drinks of our brand Pepsi and our competitors brand Coca cola. We also went to the

shops that were currently not selling soft drinks but could sell in the near future.

The main aim of this survey is to analyze all the activities like sales promotion,

distribution channel, advertising etc in that area. In this survey I analyzed the distribution

gap of company and also analyzed the competitor¶s distribution channels. By analyzing

the data which was collected through stringent effort I come to know, in which area Pepsi

was having strong domination and in which area company need to give more stress on its

distribution channel. This survey also gives focus on potential area where company could

get a good business. A comparative distribution analysis is done based on type of vehicle

and frequency of vehicle, i.e. in a particular area which type of vehicle is going for Pepsi

and Cock and how many times in a week the vehicle is going in that particular area.

The analysis of market is based on the presence of warm stock and in the outlet. A

category wise analysis i.e. cola, cloudy, clear, orange, soda, water, juice is also done in

the survey.

India where more than 50% of the total population exists below poverty line the

consumer can¶t afford such high price for soft drinks. As result the trading activating



3

OBJECTIVES

The following were the main objectives of the project:

Primary Objective

1. To Compare Promotional technique used by Pepsi and Coca-cola.

2. To find out major strength and weakness Of Promotional Techniques of Pepsi.

Secondary Objective

1. To get acknowledge about which company provides better facility.

2. To know which type of signage provided by the Company.



4

COMPANY PROFILE

HISTORY OF PEPSI

Pepsi-Cola Company founded by CALEB D. BRADHAM in 1890 at North Carolina in

USA. Its CEO is ROGER ENRICO and in India Pepsi Co holding its chairman MR.

RAJIV BAKSHI. The headquarters of Pepsi-Co. in India is at Gurgaon. Presently it is

operated in 196 countries.

Pharmacist CALEB invented it to cure the disease '"DISPARSIA". It is from this wordthat was related to Pepsi. Soon it entered the American market as soft drink which at that

time was mostly dominated by Coca-Cola, but soon Pepsi was able to dominate the Cola

market and thereafter it has been no looking back. Pepsi and Coca-Cola are engaged in

ferocious cold war that has taken the whole world by storm.

Pepsi stands 51 st positions among the fortunate 500 companies of the world. Its total

capital is approx $3000crore and total sales annually is worth $37crore, half of which

comes from beverages and other half from the Sack foods division. The beverages arm of

the Pepsi co. is Pepsi-Cola Company and the snack-food company is called Frinto-Lay-

Tnc. The year 1998 is the centennial year of Pepsi. Its total profit in the year 1996-199 7

was worth Rs. 45crore approx. The total number of employees engaged in this business is

4.25lakhs globally.

PEPSI-THE INDIAN EXPERIENCE

Previously there were many ad tags"YehiHai Right Choice Baby" &"Nothing

Official about it", which immediately ring a bell-it¶s to be a Pepsi. But today this ad.

Tag has been changed and now it's "YehHaiYongistaan mere jaan". Pepsi in a short

span of its operations in India has found a place in hearts and minds of the Indian

consumers. The success has pnmarily been due to the innovate and passionate Indian

team which has been built over the years. Pepsi is a trendsetter managed and run by



5

Indians, where important decisions are taken locally. Pepsi started its operation in India

in 1988 in Kanpur and since Pepsi Co. has set up a fully integrated operation India viz.

Manufacturing, Research and Development, Marketing distribution and franchising

Covering fruit Vegetable processing, export, snack foods and beverages. In 1993 Pepsi

Co. set up a HOLPED company to further accelerate growth through new initiatives and

joint ventures. Pepsi Co. is fully committed to India and the national objective of

development of technology and accelerating exports and employment. It has invested

500crore in India to develop the local market Pepsi has distributed exclusive franchises in

India to bottle its total product. There are 34 bottling plants of Pepsi in India. Pepsi

directly controls some and rests are under various franchises.

BEVERAGE INDUSTRY

In India, beverages form an important part of the lives of people. It is an industry, inwhich the players constantly innovate, in order to come up with better products to gainmore consumers and satisfy the existing consumers.

BEVERAGES

Alcoholic Non-Alcoholic

Carbonated Non-Carbonated

Cola Non-Cola Non-Cola



6

BEVERAGE INDUSTRY IN INDIA

Beverage industry is one of the fast growing industries in India. It can be divided into twosections i.e Alcoholic and Non-Alcoholic. The Non-Alcoholic drinks can be further classified into Carbonated and Non-carbonated. Again Carbonated is divided in two

category Cola and Non-cola (according to flavor). Non-carbonated contains non-colaflavor.If the behavioral patterns of consumers in India are closely noticed, it could be observedthat consumers perceive beverages in two different ways i.e. beverages are a luxury andthat beverages have to be consumed occasionally. These two perceptions are the biggest

challenges faced by the beverage industry. In order to leverage the beverage industry, it

is important to address this issue so as to encourage regular consumption as well as and tomake the industry more affordable. Four strong strategic elements to increase consumption of the products of the beverageindustry in India are:

y The quality and the consistency of beverages needs to be enhanced so that

consumers are satisfied and they enjoy consuming beverages.

y Consumer education is a must to bring out benefits of beverage consumption

whether in terms of health, taste, relaxation, stimulation, refreshment, well-being

or prestige relevant to the category.

y Communication should be relevant and trendy so that consumers are able to find

an appeal to go out, purchase and consume.

The beverage market has still to achieve greater penetration and also a wider spread of distribution. It is important to look at the entire beverage market, as a big opportunity, for brand and sales growth in turn to add up to the overall growth of the food and beverageindustry in the economy.

SOFT DRINKS INDUSTRIES IN INDIA

A soft drinks is a non-alcoholic beverage. It is artificially flavored and contains no

fruit juice or pulp. India with population of more than 100crore is one of the largest

consumer markets in the world after China. Soft drinks is is a typical consumer product

purchased by individuals to quench thirst and secondly for refreshment.

Searching for the point of origin of Indian soft drinks I first document on Gold

Spot, which was the first brand soft drinks in India. It was introduced by PARLE during

later part of 40¶s Cola giant, Coca-Cola was the first foreign soft drink to be introduced in



7

India in 1965, Coca Cola made a very good beginning and dominated the whole scheme

right from the world go. It (Coca-Cola) faced no competition at that time.

This extraordinary success of soft drinks can be attributed to the following factors:

2 Absence of contemporary competitive brand.

3 Euphoric image build up in the Western countries proceeded the entry into India

Market, and

4 Indians are very found by nature of foreign goods, services etc. due to prolonged

foreign rules.

PARLE EXPORTS PVT.LTD.Later in 1970 introduced Limca, Lemony Soft

drinks. Before Limca introduced they had tentatively introduced Cola, Pepino, which

they had to withdraw in the face of battering confrontation with Coca-Cola soon.

Three of four groups of Indian companies, which had the required production capacity

started their own brands of Cola. Lemon, Orange, but failed to achieve their goal on a

national basis.

India always has love and hate relationship with MNC¶s which gave a significant

opportunities to soft drink industries in India when Coca-Cola decided to windup its

operations in 1977 rather than bowing to the Indian government insisting on:-

1. Dilution of equity, as the government felt that lots of foreign currency was being

wasted.

2. Manufacturing of the top-secret concentrate in India.

3. Disclose of the chemical composition of the essence.

This left a large vacuum in the popular soft drink market, and a vista was opened

to any company with the requisite, technical, marketing and organizational skills.

The existence of Coca-Cola from India in 1977 accelerated the growth of several

Indian soft drinks. New soft drink in the form of Tetra pack enters the market among

Frooti, Jump-In, and Tree-top Ire the prominent once. Till 1977 their equipped bottling

plants and the distribution network a longing to be of no use. It took them one year to



8

develop new formula to survive and gradually came up with Campa. Lemon, Orange and

Cola that order.

However Parle, the pioneer in the soft drinks, blazed its way to national

prominence with their product ³Thumps-Up´, bearing the slogan ³Happy Days Are

Here Again´. This particular slogan helped to win over the loyalists or addicts to Coca-

Cola. Soon the Indian Soft drinks industries started at a phenomenal rate, and all Parle

products Gold-Spot, Limca and Thumps-Up became the brand leader in their own

segment.

In spite of all these the drinks market still has large gap, as claim by soft drink

manufacturers. To fill these gaps there are many soft drinks concentrate and squashes

flooded the market. The Indian soft market basically offered three flavors i.e. Orange,

Lemon, and Cola.

1988 saw the coming of the multinational company PEPSI entering the Indian market. 11

years after the existence of Coca-Cola. It had name, fame and edge of being one of the

best in the game and it also offered stiff competition to Parle and Coke. Now Pepsi is

going all out to prove that they are the best.

THE INDIAN BEVERAGE MARKET

India's one billion people, growing middle class, and low per capita consumption

of soft drinks made it a highly contested prize in the global CSD market in the early

twenty-first century. Ten percent of the country's population lived in urban areas or large

cities and drank ten bottles of soda per year while the vast remainder lived in rural areas,

villages, and small towns where annual per capita consumption was less than four bottles.

Coke and Pepsi dominated the market and together had a consolidated market share

above 95%. While soft drinks were once considered products only for the affluent, by

2003 91 % of sales were made to the lower, middle and upper middle classes. Soft drink

sales in India grew 76% between 1998 and 2002, from 5,670 million bottles to over



9

10,000 million and were expected to grow at least 10% per year through 2012.28 In spite

of this growth, annual per capita consumption was only 6 bottles versus 17 in Pakistan,

73 in Thailand, 173 in the Philippines and 800 in the United States With its large

population and low consumption, the rural market represented a significant opportunity

for penetration and a critical battleground for market dominance. In 2001,Coca-Cola

recognized that to compete with traditional refreshments including lemon water, green

coconut water, fruit juices, tea, and lassi, competitive pricing was essential. In response

Coke launched a smaller bottle priced at almost 50% of the traditional package.

PRODUCT PROFILE

Some special product of Pepsi in Indian scenario:

(i)BEVERAGES :

Pepsi has set up a concentrate plant in 1989 at Channo, District Sangrur, Punjab,

With an investment of 55 million the state of the art Plant houses a world - class

laboratory where soft drinks from all over the world are tested. This concentrate plant

supplies Pepsi. 7-Up Teem, Mirinda, Orange, Apple &Lemon flavors to all the PepsI

bottling plant in South Asia.

Pepsi has 34 Botting plant in India, out of which 8 are company owned and 26 are

ovmed by Indian franchisee, Pepsi Co. has invested heavily on up graduation of these

bottling plants and has put 5 green field project in backward areas such as Jaipur and

Bazapur in V.P. Bharuch in Gujarat, Sonapur in West Bengal and Naclamangala in

Karanataka. New ProJect is coming up in Maharashtra and Tamilnadu.

In addition to; the Companies Own Bottling Operation (COMBO). Pepsi has

26 Franchisee owned Bottling units in India. These franchisee manufacturers are

also planning to install substantial additional capacities. In last two years PepsiCo.'s

franchisees have put new bottling plant at jaipur, Bhopal, Hajipur (Bihar). Guntur (AP.)

and Guwahati (Assam) with further investments. Pepsi CO.'s franchisee are amongst the



10

best in the Pepsi world.

(ii)JUICES :Pepsi Co. Plans to launch juices in a bog way in India, there by helping the

fanners in fruit procurement. Pepsi Co.

Agriculture scientists have undertaken research on Mango, Guava and Oranges and these

fruits would be the priority area for the juice launch in India.

presently Pepsi has one juice brand. The name of the juice is Tropicana orange and

Tropicana Apple. No preservatives has been added in this two flavors.

(iii) EMPLOYMENT OPPORTUNITIES :

Pepsi provides direct and indirect employment to persons in supplying it's raw materials,

packing materials, distribution vehicles, glass bottles. plastic crates, display racks etc.

And to small artisans, paintings and small traders in market places activities.

All the Pepsi's business in India is either in Industries with backward linkages with

farmers or in service industries, being highly distribution oriented. He Pepsi system

operates over 300 trucks (direct operations). 8000 three-wheeler (distributors) and at least

1000 push carts, serving over half a million outlets in India. By the year 2

005 the number of outlets to be served are expected to be doubled.

(iv) DEVELOPING SPORTS :

PEPSI today is one of the main sponsors related activities in India has continued to

promote upcoming new players of Cricket, Hockey and Football In Mohali, Disclose of

the chemical composition of the essence.

Pepsi has developed a PepsiCricketAcademy, which would develop over 500 Young

Cricket enthusiasts in next five years. Similarly Pepsi cricket coaching camps and clinics

are held to coach young boys in North and South.



11

(v)COMMUNITY RELATIONS :-Most of the bottling plats of Pepsi are located in

backwards areas, thereby giving huge employment opportunities in these areas. Pepsi as a

responsible company undertakes social projects in and around the bottling plants. These

include supports to the education centers. Sponsors inoculation camps, providing free

health checkup, initiating sanitation, drives, promoting literacy drives and helping

villages to put up bus shelter etc.

(vi)REVENUE GENERATION :

It is estimated that Pepsi-Co and its franchises generates over Rs. 500crore (in 1977)to

the exchequer by the collection of excise duty and sales tax.

CHARACTERSISTICS OF SOFT DRINKS

1. Unfinished goods (Required chilling before consumption).

2. Two -way transportation ( Once filled bottles to market and

3. Second empty bottles from market).

4. Heavy expenses on advertisement and promotions.

5. More attention to retailers. Several schemes and other facilities provided to them.

6. Next flavors are introduced time to time.

7. Highly competitive market with only two equally strong Players.

A BRIEF HISTORY OF L.B.P.L

Lumbini Beverage Pvt. Ltd. Is situated at Industrial Area, Hajipur in Vaishali district

of Bihar. Mr. CharanKhilani, who is a resident of Kolkata, established it in the year

1997. It is one of the Pepsi Foods bottling Plants in Bihar. ³Ananda Marketing Pvt.

Ltd.´, was a marketing division of ³Lumbini Beverage Pvt. Ltd.´ But, now´ L.B.P.L.

does its marketing itself.



12

PROFILE OF LUMBINI BEVERAGE PVT.LTD.

CompanyLand Area : 12 Acres

Location and Authority : EPIP, Industrial Area,

Hajipur

Name of Director/Occupier : Mr.CharanKhilani

Name of the M.D. : Mr. Ravi Khilani

Name of CEO : Mr. G.P. Singh

Name of F.M. : MrDhawan

Name of H.R. manager : Mr. N.K. Prasad

Industrial License No. : Regn. No.- H 12475(C)

Factory License No. 66750/VLI

Date- 16.08.97

F.P.O. License No. 10607/97

Capacity : 1500 bottles per minute

Nature of products : Soft drinks, Pepsi, Mirinda,7up, Soda,Slice, Aquafina.

No of employees :200+150(max) Seasonal labors

Control Board : No. 1877. Date- 07.04.97

BOARD OF DIRECTORS :

1. Mr. Charan Khilani (Director)

2. Mr. Ravi Khilani (Managing Director)

3. Mr. Manoj Khilani (Plant Director)

4. Mr. G.P. Singh (C.E.O.)

5. Mr. Arun Kumar Singh (TDM, Patna)



13

ORGANISATIONAL STRUCTURE

BOARD OF DIRECTOR

MANAGING DIRECTOR

DIRECTOR

CEO

HR MANAGER FINANCE MANAGER H.O.S. PLANT MANAGER

(HEAD OF SALES)

HR EXECUTIVE A/C ASSISTANT SHIFT MANAGER

A/C CLERK WORK OPERATOR

Q.C

T.D.M. M.E.M. M.D.M.

( Territory Development Manager) (Marketing Equipment Manager)(Marketing Development Manager )

B.D.M. M.E. M.D.C.(Business Development Manager)

A.D.C. SENIOR TECHNICIAN MARCHANDISER (Area Development Co-ordinator)

C.E.(Costumer Executive )

P.S.R.(Pre Sales Representative )

R.A.(Route Agent)



14

SWOT ANALYSIS

STRENTHS :

1. Lumbini Beverage Pvt. Ltd. Is Franchise Owned Bottling Organization (FOBO)of world¶s most famous soft drinks Pepsi Co.

2. LBPL uses state of the art and fully automatic machines and technology for the

production and of soft drinks.

3. It has very strong network and built market and currently holds all the parts of the

state.

4. It has wide range of product varieties.

WEAKNESSES :

1. No cost cutting program for the products.

2. Promotional activities in the rural market is not up to the mark as compared to the

Urban market.

3. Brand Pepsi in cola flavor is one of the popular lagging behind with its nearest

competitor, only due to high sugar content and less thrilling taste.

4. Not viability of the products on demand.

OPPORTUNITIES :

1. LBPL makes the buying process more convenient of efficient (It provides the

Pepsi products at required places i.e. direct to distributors and to retailers through

distributors.)

2. The executives of company meet the need for more information and advice to

distributors/retailers/customers.

3. It takes return the leakage, burst bottles etc.

THREATES :

One of the products of their competitor in lime flavor as a very good market share

due to its taste. Coca-Cola is now spending more and more to boost up the sale.



15

PRODUCTS



16

PRODUCT SEGMENTATION

Pepsi segmented its products into 7 groups they are as follows

Cola , Cloudy, Clear , Soda , Orange, Juice, Water

The products of pepsi vis-à-vis its competitor¶s products according to the segments wasgiven in the following table.

Segment Pepsi Products

Cola Pepsi

Cloudy Mirinda Lemon

Clear7up

Mountain Dew

Orange Mirinda

Soda Lehar Soda

Juice

Twister

Slice

Tropicana

Water Aquafina

2.12 PRICE LIST

PRODUCTS

GLASS(ML)/CAR PET(ML)/BOX CAN(ML)

/BOX

TET

RA

200

ML

PRICE/

B

200 250 300 350 500 600 1000 1200 2000 250 330

PEPSI 168 - 214 - - 454 - - 459 330 - 8(200ml)

MIRINDA 168 - 214 - - 454 - - 459 330 - 8

(200ml)

7UP 168 - 214 - - 454 - - 459 330 - 10

(300ml)

MOUNTAIN

DEW168 - - - 454 - - 459 - 8

(200ml)

SLICE - 214 - - 498 - - 532 - - - 12 (200ml)

P.SLICE 258 - - - - - - - - - - -

TWISTER - - - 468 - - - - - - -

AQUAFINA 100 - - - - 144 - - - -15

(1000ml)

TROPICANA 391 - - - - - - - - - - 409

SODA - - 108 - - 264 - - - - - -

* Above figure are the prices of products in Rs.



17

PRODUCTION PROCESS

The process of manufacturing of aerated water (soft drink) like Pepsi brand product isdivided into five main parts such as :-

1.

WATER TREATMENT.2. SYRUP MAKING.3. BOTTLE WASHING.4. FILLING.5. TESTINGOF PRODUCT.

1. WATER TREATMENT

Water treatment is very essential in soft drinks plant as the nature and quality of

varies from place. toset uniform and standard water, the process of treatment is carried

on. the water taken out form Bore well having depth of 500m by the help of motor pump

& pipe lines. Are connected to the storage tank where is pre-chlorinated by chlorinator &

then by the help of pipeline comes to a treatment tank called ³coagulation tank´ where to

this water , solution of different strength of bleaching powder, ferrous soleplate, hydrated

lime are added through dosing pump to reduce the alkalinity hardness, kills the bacteria

and the ph become 7.5.mechanical stripper mixes the chemical & then suspended matter

settles down as sludge & clear water passes to retention tank. from this tank the water

passes through sand filter containing fine sand and pebbles & carbon filter containing

granular carbon & finally through the water polisher, micron filter, up lamp to ensure

clear & sanitary water for use. Further water is used in bottle washer& boiler needs

softening . For this purpose , the water from storage tank after passing through two water

filter beds containing fine sand and granular carbon respectively comes through a bed of

resin where it is softened. Thigh softened water is essential to use in the boiler & bottle.

To the scale formation warder has to reduce inside machines.

2. SYRUP MAKING

For the syrup making of particular brand, calculated quality of sugar, water, activated

carbon (power) & by flow super cell known as filter aid are taken into a sugar space to

enter stream & also filter by motor with agitated sugar syrup called raw syrup is prepared

by dissolving the sugar with continues stirring and heating by steam supplied by oil fried



18

boiler. This hot syrup by the help of pump is filtered through a filter press attached with

the series of quality filter paper to separate out carbon partials.

Clear hot syrup by the help of ss pipeline passes through water P.H.E. for cooling then

another P.H.E. circulated by glycol for further cooling. The chilled syrup comes to the

mixing tank, which is cleaned and sanitized prior to use. After circulation of sugar

quantity by bricks hygrometer, concentrate are added and mixed thoroughly by the

mechanical stirrer filter to the tank. This syrup is known as finished syrup ready to drink

the concentration manly. The liquid part are also kept in a cold store , the temperature of

the finished syrup is fixed in the room temperature is also maintained by air conditioner.

All the containers used in the syrup making are cleaned and sanitized by sodium bi-

carbonate, strong chlorine and hot caustic soda solution.

3. BOTTLEWASHING.

Bottle washing is an important part in the soft drink plant. The empty durable and

restorable bottle used are returned form market in plastic crates, and fed to bottle washing

machine (washer).the machine has double end system with circular chain to carry the

bottle. Caustic soda, tri sodium ±phosphate, sodium glaciate is added to the caustic tank

filled in with water heated by strum supplied by bathe bailer. The empty bottle enter tothe caustic solution and finally washed with water through spray-jets filter dared

discharged in other end. The washed bottles after proper inspection are directed to filing

machine through conveyor. Cleaning and smooth running of chain carrying bottle, SU-

260 and SU-773 are used for bottle cleaning, shinning and mold removing concentration.

4. FILLING

Finished syrup and treated water lime and concentrated to a dosing pump, which mixes

syrup and water in the ratio of 1:5 and syrup mixed with water enters to carbonate tank to

mix with carbon dioxide gas, which are preserved in cylinders for use. The Cylinder is

connected through carbon dioxide pressure and temperature of lilied; we use receding

control (Taylor). The syrup passed through P.H.E that is cooled itself the circulation of

chilled glycol supplied by chilling compressor. To run the machine for chilling F-22 gas



19

is used. The syrup being chilled easily mixes with carbon dioxide and enters to filter for

billing. The filter is fitted with filing valves and lift cylinders. The lift cylinders function

pressure of air supplied by an air compressor. The syrup known as beverages in this stage

is filled in the cleaned bottle, which are durable in the nature and returnable by the buyer.

A counter pressure of carbon dioxide gas filled to the filing machine. After beverages is

filled in the bottle goes to the crowner where with help of crown corks the bottle are

sealed (crowned) to project the carbonation, flavor outside contamination and spoilage.

The refinished product are coded decoding machine and inspected properly by inspection

light while passing through the conveyor fitted with ss chains. the empty plastic rated

passing through a conveyor enter to crates, which are durable in nature and returnable by

buyer, put on plates and sent shipping for shipment. The entire containers in contact with

syrup are properly cleaned and sanitized soda-bio-crab, hot water, hot caustic soda

solution and strong chlorine base.

5. TESTING OF PRODUCT

Finally the finished syrup during bottling is tested in laboratory to meet the parameters

and also get the standard and quality product. to maintain the standard and informality in

products, the sugar contents and carbonation in the filled bottle are checked in regular

intervals by brink hydrometers refract meter and pressured gauge. A digital pH meter

tested the pH. Electronic digital balance is used to the weight chemical to conduct test in

lab. The purity of carbon dioxide is checked by carbon dioxide purity tester. The

microbiology test of the products and water used in syrup making and production are also

done to ensure that the product is free from any bacteriological contamination. To

conduct the micro test, hot sterilizer incubator autoclave, pads filter membranes are

product used. The diesel generator is operated in case of electricity failure for smooth

operation of the plant and for drawn electricity from the state electricity board the

transformer is used.



20

RAW MATERIAL INPUTS:-

A soft drink butting plant the following things as a raw materials:-

2 Sugar

3 Flavor

4 Water

5 Carbon dioxide

6 Crown cork

7 Glass bottle

8 Plastic crate.

Sugar

High purity crystal sugar is required the sugar syrup for soft drink. the main supplier of

lumbini beverages Pvt. Ltd. is M/s KCP Ltd. Chennai. The requirement of sugar is

around 800 gm par carat for all flavors.

Flavor

Pepsi food ltd. is supplying all essence of flavor for lumbini beverages Pvt. Ltd. from

their plant Chennai, Bhawnagar (Punjab).

Water

The required water of lumbini beverages Pvt. Ltd. is being met from the high yielding

deep boring well with pumps. Adding softening plant & DM plant so as to meet the

required quality of water then treats the raw taken out from these well. Water quality is

being strictly adhered through regular sampling & analysis.

Carbon dioxide

Carbon dioxide gas of required purity is being carried on from Hindustan Gas India Ltd.

and also from IOC Patna and Barauni, as per requirement of flavor. The usual

consumption of carbon dioxide is 1 kg per 10 carats in case of Pepsi, 1 kg per 5 carats of



21

soda water and rest flavor 1 kg per 114 carats.

Crown cork

Lumbini Beverages Pvt. Ltd. Takes crown cork from amnesic crown ltd. Bhopal andGhaziabad respectively.

Glass bottle

Lumbini Beverages Pvt. Ltd. Takes flint and green glass bottle from Hindustan national

glass ltd. Tapovan (Hrishikesh).

Plastic carats

Lumbini beverages Pvt. Ltd. Takes plastic carats from neelkamal plastic ltd.

Nasik& supreme industry¶s Ltd. Nasik.



22

THEREOTICAL BACKGROUND

PROMOTIONAL ACTIVITIES

Promotional activities play a greater and important role in the marketing effort carried

Out by PEPSICO. It is for more create and maintain a image of its products.

PROMOTIONAL ACTIVITIES CARRIED OUT BY µLUMBINI BEVERAGE

PVT. LTD.

LBPL carry out its promotional activities as a controlled and integrated program of

Communication and material design to present its soft drink to the prospective customer.

The tools used by Lumbini Beverage Pvt. Ltd., for fulfilling the various purposes of

its

Promotional activities are the following:-

(I) Point of Purchase:

A sensible man does not have to go for too find out whatever a common panwala knowsthat People buy with their eyes. Every item of sale in a shop is displayed in front where

people Can see it at the first sight. It is the same with all the shops ad vendors in towns

either selling Consumer goods or selling soft drinks. Rather in selling all product like

PEPSI display is more help it is an essential element because soft drink is bought a

impulse on the spur of the movement. Thus the product is tested when it is brought at

people¶s attention.

(ii) Special event market:

The dealer at special event sport places the banners and stall of Pepsi¶s products. Like

picnic, Cricket match, social activities are also used to cater the people. It help in

promoting the sale As well as in creating an image of products.



23

(iii) Media planning:

A very important part of advertising is to decide the medium of advertising and how

much to spend in each media:

1. Newspaper

2. Radio3. TV4. Hoarding

Product of sales materials (paintings, glow signs, D. Borard)

Advertising is one of the important factors which all put together results sales. It has

to be backed by the distribution network, effective servicing, dealer, goodwill and so

on. Thus advertising has to be very carefully woven with the entire demands of

marketing.

PROMOTIONAL ACTIVITIES CARRIED IN ARA:

1. Point of purchase (POP)

2. Special events (fair show, Road show etc.)

3. Hoarding

4. By Newspaper, TV. Radio etc.

MERCHANDISING POLICY

In today¶s fast moving industry and highly competitive market, only those

products are likely to be purchased which are capable of hitting the impulse of the

consumers. The products appeal should be able to penetrate and get embedded into

the perpetual space of the consumer¶s mind. The concerned products should induce to

the consumers. Pepsi believes that ³Jo Dikhta Hai Wahi Bikta Hai´ i.e. any product

which is visible is bound to be sold.



24

METHODS OF MERCHANDISING:

1. Visi cooler placement

2. Glow signboard

3. Paintings

4. Crate Stacking

5. Umbrella

6. Banners

7. Display

ADVERTISING STRATEGY OF THE COMPANY

The main motive behind the purpose of advertising of the PEPSI co. is to maintain the

brand loyalty though recalling the memory of the users of soft drinks as to attract the

potential consumers who consume a soft drink. On the national basis the media

extensively used are: Newspaper, short advertising films, Radio, T.V.

Besides the advertising being carried out by Pepsi Co. Lumbini Beverage Pvt. Ltd.,

Hajipur also carries out its own promotional program of which advertisement is animportant aspect. The Lumbini Beverage Pvt. Ltd. is free to use any media, messages,

copy etc. as when required by them but single factor which remain the same as used for

each Pepsi Co¶s bottling company on national level. Now the main slogan being used by

PEPSI Co. all over India for its Cola Products has been ³Y ehhaiyoungistanmerijaan´.

The main Model in the advertising is the Cricketer- M.S. Dhoni, Actor- Amitabh

Bachcan, SharukhKha, RambirKapoor Actress- KareenaKapoor, PreetiZinta,

DeepikaPadukone etc.



25

MARKET SEGMENTATION

The soft drink being a FMCG product has a wider and scattered market. Thus to enable

concentrated effort of marketing activities in different scattered market, the entire

market is broken down into the following segments.

1. Route Market

2. Home Market

3. At work market

ROUTE MARKET

Outlet in this market caters to those people who are engaged in shopping, eating,outgoing to and from work, in amusement enters etc.

HOME MARKET

Outlets in this market cater to people buying prominently for home consumption Either

by case or loose bottles.

AT WORK MARKET :

Outlet in this market caters to people working in officers. Factories etc. An attempt

is always Made to make soft drinks readily and conveniently available all day long while

people are Actively working.

Retailer Sales promotion

To promote the sale of the various products of Pespi Co Lumbini Beverages Pvt. Ltd.

Provides various offers to boost the sales and motivate them to sale the Pepsi Co

products. There are Various schemes are:

F ree Schemes:



26

Glass Scheme I

Free 1 bottle up to 2 purchases on 200 ml.

Free 2 bottles up to 10 case purchase on 200 ml.

Free 3 bottles 11 case or more.

Glass Scheme II

Free one 300ml RBG and a scratch card on purchase of Pepsi Mirinda on 200ml case.

PET Scheme

Free 1 bottle up to 2 case purchases on 600ml.

Free 2 bottles up to 10 case purchase on 600ml.

Free 3 bottles 11 case or more.

Discount Scheme

Discount of Rs.25 on purchase of tetra pack of Tropicana case.

MARKETING STRATEGY:

Marketing Strategy is the complete and unbeatable

plan designed specifically for attaining the marketing objective of the firm. The market

objective indicates what the firm indicates, what the firm wants to achieves, the

marketing strategy provides for achieving them.

The marketing is not idea. It is well outlined plan, and there are different ways to

formulating it. Basically formulating of marketing strategy consists of two main steps.

Selecting a target market, assembling the marketing mix, actually, the target marketingand marketing mix together constitute the marketing strategy of the firm.

When the Pepsi food company entered in the Indian soft drink market, the market was

already prevailed by coke and previously it was Parle. Pepsi tried to establish in Indian

with a unique marketing policy. Pepsi took into consideration of youth segment target



27

market. Though the advertisement of Pepsi highlighted the style of living of young

generation with different walk of life, Pepsi brought in its advertisement different

stalwart¶s personalities from fields like young cine stars, sport stars and famous

personalities from different fields. It has attracted the young generation and of

course increase the sale of Pepsi, also organized many national and international

sports events to attract the young generation.

MARKET MIX OF L.B.P.L

The set of controllable tactical tools:

A product, place, service and promotion (4 p¶ s) that the firm blends to

product the response it wants in the target market. These are the following 4 ps.

Products: That could meet the identified needs of chosen consuming groups.

Place: It performs various functions like transportation, warehousing, channel

management etc. so the products easily reach the consumer.

Promotion: The firm carries out a no. measure like personal selling, advertising and

sales promotion programmed with view to communicate to the consumer and promoter

of the product. It is the mechanism to achieve the consumptions of marketing process,

striking the level of price that is accepted to the firm as well as consumer.

PROMOTIONAL ACTIVITIES ( FOR RETAILERS)

Promotional activities consist of various means of communicating persuasively

with the target audience. The important methods are:

Advertisement :

Identifying a sponsors pay¶s media (such as T.V.) to transmit to target consumer.



28

Personal selling :-

Where sales representative employed by the firm engage in interpersonal

communication with individual consumer and prospective customers.

Sales promotion:-

Where the market utilization, displays, demonstrations, premiums, contests or similar

devices.

Publicity and Public relation :-

Help to stimulate supportive news items about the firm and the its product thathave

greater credibility with public than advertisement.

Of all the methods of promotional activities that constitute the promotion mix, sales

promotion is the only one method that makes use of incentives to complete the ³ Push

Pull promotional strategy ´ of motivating the sales force, the distributor and the

consumer transacting a sale.

According to ³ American Marketing Association ´ sales promotion refer ³

Those activities other personal selling, advertising and publicity, that stimulate

consumer Purchasing and dealer effectiveness, such as display , shows and

exhibition, demonstration and various other non-recurrent selling efforts not in

ordinary. ³ Sales promotion´ is also known by the name of ³Extra Purchasing

Value´ (E.P.V).

ADVERTISING & SALES PROMOTION IN L.B.P.L

Advertising and also promotion activities play a vital role in entire marketingefforts.

Without these aspects a qualityproduct can not survive in the market. Advertising and

sales promotion tools are most essential for the modern global marketing. This chapter

has therefore been devoted to the studies of advertising and sales promotional activities

in LumbiniBeverage Pvt. Ltd. The two basic objectives for carrying out such various



29

promotional activities by Lumbini Beverages Pvt. Ltd. is ³To generate more sales as

well as to create and maintain an image of is product´ L.B.P.L.carries out its

promotional activities as controlled and integrated programmers of communication and

material design present its soft drink to the perspective customers. It also helps in

communicating the need satisfying of soft drink to facilitate the sales eventually to

contribute towards the profit in long run.

The sales used L.B.P.L for fulfilling the various purposes for itspromotional

activities are the following:

1. Food µN¶ Fizz

2. Space Club

3. Pyaasbujhao profit badhao

4. Agreement

5. GOD(Glass on deposit)

6. Displaying equipments

7. Scratch card, lucky draw & prize.



30

RESEARCH METHODOLOGY

All the findings and conclusion obtained were based on the survey done in the

working area i.e. Ara central. Within the time limit, I tried my best to select the sample

representative of the whole group. During my job training I maintained different routes

during my dealer survey.

Data- Sources

Retailers/Dealers (Cold Drinks stalls Ice Stalls Hotels Restaurants Sweet Shop Pan Shop,

General Stores, Telephone Booths etc), Distributor internal Company¶s Records etc.

Research-Approahes

Survey

Research-Instrument :

Interview Schedule

Sampling- Plan :

Sampling unit Distributor Retailer

Sampling size 01 115

Sampling procedure :

Census Survey

RESEARCHDESIGN

The research design adopted is descriptive. Descriptive research includes surveys and

observational techniques.

(a) DATA USED FOR ANALYSIS

The data used for analysis in the study has been collected in two forms namely

primary and secondary data.

Primary Data

The primary data is the data collected afresh by the researcher. The primary data

were collected through the survey method.



31

Secondary Data

The secondary data have been collected through the historical data which is available

with the Coca Cola, company profiles and websites.

(b) TOOLS OF DATA COLLECTION

The tools used for data collection is Qualitative and Observation Method.

LIMITATIONS OF PROJECT

The following were the limitations of the project:

1. The finding of the study may not be applicable to other places except ARA.

2. The respondents were too busy to give exact answer to all questions.

3. There is chance of under estimation of sales and incomes as it is the nature of

human beings.

4. This study analysis is opinion of retailers only.

5. The results may not hold good in the long run as taste and preference of human

beings are subject to change over a period of time.

6. Chances of biased data collections to respondents.



32

DATA ANALYSIS & INTERPRETATION

1. TYPES OF SHOP OR OUTLETS

Types of shop No of Retailers Percentage

Grocery 30 26%

Convenience 35 30%

Eatery 50 44%

Total 115 100%

Interpretation: In this Ara and Aracentral area there is mixture of Grocery, convenience

and eatery. In which the maximum number of outlets belongs to eatery and least number

belongs to convenience. So the distributors should distribute the product segment wise

accordingly. Many types of retailers in the market to sell the Pepsi & Coke products I

have taken that the list form company & classified that shops according to company

guidelines. General & Kirana store are measure things for company because their share in

one-third, so company always try to make good relationship ship with them because 20%

sell form them.

26%

30%

44%

Shop/Outlets

Grocery Convenience Eatery



33

2. (A) INTERPRETATION OF COOLING EQUIPMENTS (OYE)

COOLERS No. Percentage

Pepsi 20 17%

Coca cola 60 53%

Own 35 30%

INTRERPREATATION :From the above graph we can conclude that the

number of coolers distributed from Coca Cola to the dealers is more comparing

to Pepsi. And many of the shop keep their own cooling equipment. This definitely

an edge of coca-cola over Pepsi.

17%

53%

30%

Oye

Pepsi Coca cola Own



34

2.(B) MARKET OF VISI COOLER

COOLERS No Percentage

PCI 30 20%

CCI 85 57%

OWN 35 23%

Total 115 100%

INTRERPREATATION :

From the above diagram, it is clear that 57% of VISI cooler is of Coca-Cola while 20% is

that of Pepsi and own is 23%.

20%

57%

23%

VISI COOLER

PCI CCI OWN



35

3. MARKET OF DIFFERENCE SOFT DRINK :-

Cola Market:

Product No of Retailers Percentage

Pepsi-Cola 36 31%

Coca-Cola 16 14%

Thumps Up 63 55%

Total 115 100%

INTRERPREATATION :There is dominancy of Thumps Up in the Cola segment of

soft drink in the market. Pepsi is its competitors.

31%

14%

55%

No of retailer

Pepsi- cola Coco-cola Thumsup



36

(A) Clear Market :


Sprite 55 53%

Mountain Dew 34 25%

7 Up 26 22%

Total 115 100%

INTRERPREATATION :There is dominancy of sprite in Clear segment of soft drinks

in the market. And overall coca-cola capture approx 48% market share in clear segment

but dew and 7up provide and alternative to sprite and in this section Pepsi product

combined together and capture more then 50% market share.

53%

25%

22%

Clear Market

sprite mountain dew 7up



37

(B) Orange Flavored Market:


Fanta 69 60%

Mirinda 46 40%

Total 115 100%

INTRERPREATATION :The chart shows that is two types of orange flavor available

Mirinda belongs to PepsiCo and the fanta belongs to coca-cola products. It is clearly

from the above graph the coke product i.e. Fanta demand is more than the Mirinda. So

Fanta is the market leader in this segment.

60%

40%

ORANGE FLAVOURfanta Mirinda



38

(C) JUICE MARKET :

30%

47%

2%

4%13%

4%

Juice Marketslice maaza Twister Min made up Frooti others

Product No of Reatailers Percentage

Slice 34 30%

Mazza 54 47%

Twister 2 2%

Min made Pulp 5 4%

Frooti 15 13%

Others 5 4%

Total 115 100%



39

INTRERPREATATION :There is dominancy of Mazza belongs to caca-cola brand is

juice segment of soft drink in the market. And overall coca-cola approx 47% market

share in juice segment and slice belongs to PepsiCo get the second place in the market

share and capture 30% market share. Third position goes to Frooti which is a pearl

product. The newly launched product of PepsiCo and coca-cola are Tropicana twister and

minute made pulpy respectively also moving good in this segment where twister has

more market then pulpy orange. In other segment have a products like real fruit juice,

dabur juice and other and this have a market share of 4%.



40

5. WATER PREFER BY RETAILERS .

Water Market :


Aquafina 23 20%

Kinley 23 20%

Other 69 60%

Total 115 100%

INTRERPREATATION :There is dominancy of other in which comes biselery, local

brands, etc have a market share of 60% and the share of PepsiCo, Aquafina and kinley

has almost equal market share.

20%

20%60%

Water Market

Aquifina Kinley others



41

6 . PERCENTAGE OF COMPANY SIGNAGE

Company No of Retailers Percentage

Pepsi 40 35%

Coca-cola 52 45%

Other 6 5%

No boards 17 15%

Total 115 100%

INTRERPREATATION :From the above chart it is clear that 35% of glow sign board

is of Pepsi while 45% is that of coca-cola and rest 5% belongs to other and 15% is of no

boards.

35%

45%

5%15%

Company signage

Pepsi Coco-cola Others No board



42

7. KIND OF SIGNAGE IN YOUR OUTLET

Types of Signage No of Retailers Percentage

Flex Board 40 35%

Dealer Board 35 30

Glow Signage Board 10 9%

Others 30 26%

Total 115 100%

INTRERPRETATIONS:-

This Graph Show the Most of the Retailers Get the flex Board Rather than Glow SignBoard. Because the rate of the flex board is cheap than Glow Sign Board.

35%

30%

9%

26%

Kind of Signage

flex Board Dealer Board glow Sign Board Others



43

8. KIND OF PACKAGING

Types of Product No of retailers Percentage

Can 20 18%

Plastic Bottle 30 27%

Glass 60 54%

Tetra Pack 5 1%

Total 115 100%

INTRERPREATATION:-

According to graph Glass bottle Most demanded by the customers and after that plasticBottle Prefer by the customers.

18%

27%54%

1%

PackagingCan Plastic bottle Glass Tetrra poack



44

9. SCHEME/DISCOUNT PROVIDED BY COMPANY

No of Product No of Retailers Percentage

Pepsi 40 35%

Coca-Cola 65 56%

Others 10 9%

Total 115 100%

INTRERPRETATION:-

As the graph shows Most of the Retailers get more scheme/Discount By the Coca- Cola.

35%

56%

9%

Scheme/Discount

Pepsi Coca-Cola Others



45

10. EFFECTIVE ADVERTISEMENT

Types of Adv No of retailers Percentage

Television 60 59%

Magazine/News Paper 10 10%

Display 30 30%

Wall panting/ Hoarding 15 1%

Total 115 100%

INTRERPREATATIONS:-

Television is the more Effective Advertisements rather Than Display.

59%

10%

30%

1%

AdvertisementTelevision Magazine/Newspaper Display WallPanting



46

11. KIND OF PROMOTIONAL ACTIVITIES

Promotional

activities

no of retailers Percentage

Free Bottle Scheme 55 52%

Prize 15 14%

Discount Crates 35 33%

Others 10 1%

Total 115 100%

INTRERPRATATION:-

Most of the retailers get free bottle scheme and after that they get discount Crates on the

purchase of products.

52%

14%

33%

1%

promotional Activities

Free Bottle scheme Prize Discount Crates Others



47

FINDINGS

1. It is found that in the cola market thiums up is the one of the better Product than Pepsiand Coca-cola.

2.It is found that in the ARA and the CENTRL ARA the supply of Pepsi sign board andglow board is not distributed on proper way.

3.COCA-COLA is the market leader in overall market

4.COCA-COLA is providing more schemes than the PEPSI

5. Vigi cooler is not properly distributed in the hand of retailer ,by which sale effected

badly.

6. Retailers do not get actual schemes due to COMMUNICATION GAP In distributionchannel.

7. Tight vigil should be keep over the distributor.

8. Distribution is not in proper manner,which is affecting the market of Pepsi..9. Sales can increase after locating VISI COOLER outside of outlet.

10.All the products of Pepsi Co like 7up, & Dew is not provided in time when the

retailers demand it.

11.If retailers complaints regarding discounting and trade scheme they are not responded

properly.



48

CONCLUSION

1. Most of the Retailers demand Thumps up because customer likes the taste.

2. Most of the retailers require mainly hording, glow sign board and Signboard,

which they are asking from long time.

3. The whole analysis shows that there are only two companies dominating in the

soft drink¶s market- Pepsi Cola and Coca-Cola. In which Coca-cola is a leader and

Pepsi Co is follower.

4. Pepsi has invested more in the market. Distribution of- VISI Coolers and ICE-

BOX is not as comparison with Coca-Cola but still more investment is needed to

break the brand and establishment of Thumps Up and Sprite.

5. Due to the lack of believe towards the retailers which cause to communication

problem and often distributor not try to reveal the actual schemes.

6. All the areas in Ara and Ara central etc. many retailers are not satisfied with the

distribution network of the Pepsi.

7. Sales is very poor due to shortage of VISI-COOLER so allocation of visi cooler is

also essential.

8. In Cola segment Thumps-up and in lime segment sprite is the main competitors of

Pepsi.

9. Most of the Consumers don¶t like the taste of Pepsi due to its sweetness and low

fizz.

10. Sometimes distributor do not provide the product which is demanded by the

retailers.

11. Due to the monopoly of the distributor they do not try to short out grievances of

the retailers.



49

SUGGESTIONS

1. The Pepsi should improve its flavour.

2. The criteria to provide Glow Signboard, Flax board, should be changed and a

separate department should handle this.

3. It is true that in the ARA and the central ARA Coca-cola is dominating the

market of Pepsi because they are paying proper attention towards there

facility.

4. Company is not providing VISI-COOLER to all the retailers so its main cause

of loss of the company products.

5. Some time distributor do not believe its cause problem for both,so distributor

should make a healthy contact and Pepsi officer should also vigil on all the

issues and Should give the proper information about what offers is going on.

6. All the requirements and grievances of the retailers should be short out within

stipulated time .

7. Taste of the product should be always check and try to make it better as per

demand of the customer.

8. Pepsi officer should always vigil to every work of the distributor as like

scheme distribution ,supply of all products.

9. Executives should take the feedback from the retailers about the service of the

salesman and the distributors.

10. Leakage and blasted bottles as per policy should taken back and distributor

should also increase the vehicles for delivery of goods.

.



50

BIBLIOGRAPHY

BOOKS:-

y Kotler Philip, Marketing Management, 13th edition, Prentice Hall of India Pvt

Ltd.

y Ramaswamy and Namakumari, Marketing Management, 3rd Edition, Macmillan India

Ltd.

y GC beri marketing research Tata McGraw Hill, New delhi.2003: 3rd edition.

y Kothari C.R, Research methodology, New Delhi, New Age International (P) Ltd.

Publishers, 2007.

WEBSITES:-

www.pepsico.com

www.pepsizone.com

www.pepsiindia.com

www.cocacola.com



51

QUESTIONNAIRE FOR RETAILERS

Name the outlet:««««««««««««««««««««««««..

Address:««««««««««««««««««««««««..«««..

Mobile number: «««««««««««««««««««««««««

1. Your shop lies in which category?

(a) Convenience (b) Grocery

(c) Eatery

2. Which company¶s visi cooler &oye you have in your outlet?

(a) Pepsi-Cola (b) Coca-cola

(c) Both (d) Own

3. Q. Which brand of cola provides you better sales support?


(c) Both (d) Others

4Q. Which brand of soft drinks you deal in?


(c) Both (d) Others

5. Q. Which Brand of Water you Deal in ?

(a) Pepsi (b) Coca-Cola

(c) Both (d) Others



52

6. Q. Which company¶s signage you have in your outlet?

(a) Pepsi (b) Coca-cola

(c) Both (d) No signage

7.Q. what kind of signage is offered by the company to you?

(a) Flex-Board (b) Dealer Board

(c) Glow Sign Board (d) Both

8.Q. what kind of packaging do you generally prefer?

(a) can (b) plastic bottle

(c) glass (d) tetra pack

9.Q. which company provides you better commission and good credit faculity?

(a)Pepsi (b)coca-cola

(c) others

10.Q. which media according to you is more effective in boosting sales?

(a) Television (b)Magazines/Newspapers

(c) Display (d)Wall paintings/Hoardings

11Q. What kind of promotional activities do you like most?

(a) Free bottle scheme (b) Prize

(c) Discount Crates (d) Other

12.Q. Your recommendation for further sales improvement in your locality?

««««««««««««««««««««««««««««««««««««



13.Q.sales promotion technique of which company are more effective in boosting

sales?

(a) Pepsi (b) coca-cola

(c)Others

14.Q. Give me two suggestion for betterment of Pepsi-Cola ?

(a) ««««.. ««««««««««««««««««««««««««««««

(b)

«««««««««««««««««««««««««««««««««««

abhishek_pepsi_abhi

Documents