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ANALYSIS OF SALES IN PEPSI IPL 2015 AT PEPSICO INDIA

HOLDINGS PRIVATE LIMITED BANGALORE

ORGANIZATION STUDY

Submitted to

RAJAGIRI COLLEGE OF SOCIAL SCIENCES (AUTONOMOUS)

(Affiliated to Mahatma Gandhi University, KOTTAYAM)

In partial fulfilment of the requirements for the award

Of

MASTERS OF BUSINESS ADMINISTRATION (MBA)

(2014-2016)

By

AAKASH ASOKAN

Reg. No: 1421003

RAJAGIRI COLLEGE OF SOCIAL SCIENCES (AUTONOMOUS)

RAJAGIRI VALLEY P.O

KOCHI-682039

DECLARATION

I hereby declare that the report entitled “Organization study of PepsiCo India Holdings Private

Limited, Bangalore” is a bonafide record of the organization based project study done by me at

PepsiCo India Holdings Pvt. Ltd, Bangalore during the period 2nd April 2015 to 28th May 2015 as

part of my MBA program at Rajagiri College of Social Sciences, (Autonomous) Kochi, Kerala.

This study has been undertaken in partial fulfillment of the requirement for the award of Master

of Degree in Business Administration by Mahatma Gandhi University, Kottayam, Kerala.

I also declare that this report is the result of my sincere effort and has not been submitted in full or

part thereof, to any other university or institution for the award of any degree or diploma.

PLACE: KOCHI

DATE: 07/07/2015 AAKASH ASOKAN

ACKNOWLEDGEMENTS

My gratification and elation on the successful completion of this organization based report would

be incomplete without mentioning the names of all the people who helped me with it and without

whose guidance and encouragement this wouldn’t have been successful. Above all I thank the

Almighty for his grace and blessings at each and every stage of the project.

I express my sincere gratitude to Dr. Binoy Joseph, Principal, Rajagiri College of Social

Sciences (Autonomous), Kakkanad for showing his overwhelming support and interest shown in

the work.

I would like to express my deepest gratitude to project guide Mr. Nishanth G, Marketing

Development Manager, PepsiCo India Holdings Private Ltd., Bangalore for his constant

support and guidance during the study.

I would like to express my respectful thanks to Mr. Suresh Babu, Assistant Marketing Manager

PepsiCo India Holdings Pvt. Ltd., Bangalore for their support and help for the successful

completion of the study.

I extend my sincere thanks to Prof. Abraham Joseph, Faculty Member, Rajagiri College of

Social Sciences (Autonomous), Kochi, Kerala for having spared his valuable time and for all the

guidance given in executing the project as per requirements.

Last but not the least I would like to record my deepest sense of gratitude to my family and friends

for their support and constant encouragement.

TABLE OF CONTENTS

PROFILE STUDYOF THE ORGANIZATION ........................................................................ 5

INDUSTRY ANALYSIS .............................................................................................................. 6

PEPSICO – AN INTRODUCTION ............................................................................................ 9

HISTORY AND INCORPORATION....................................................................................... 10

PEPSICO INDIA ........................................................................................................................ 18

PEPSICO’S MISSION ............................................................................................................... 20

PEPSICO’S VISION .................................................................................................................. 20

FINANCIAL STATEMENT OF PEPSICO INC, AND SUBSIDARIES .............................. 22

PEPSICO’S BUSINESS MODEL ............................................................................................. 23

ORGANIZATIONAL STRUCTURE ....................................................................................... 26

PRODUCT OR SERVICE PROFILE ...................................................................................... 29

CUSTOMERS OF PEPSICO .................................................................................................... 32

FUNCTIONAL DEPARTMENTS ............................................................................................ 34

FUTURE GROWTH AND PROSPECTS ................................................................................ 36

SWOT ANALYSIS OF PEPSICO ............................................................................................ 37

ROUTINE WORK ...................................................................................................................... 44

PEPSI IPL -2015-SALES DATA ............................................................................................... 50

FINDINGS AND SUGGESTIONS ............................................................................................ 55

RECOMMENDATIONS ............................................................................................................ 56

BIBLIOGRAPHY ....................................................................................................................... 58

EXECUTIVE SUMMARY

This project report is basically to understand the theoretical and functional aspects of an

organization. The project study was under taken at the Bangalore unit of PepsiCo India Holding

Pvt. Ltd., one of the major multinational companies. This study was aimed at an overall exposure

to the working of the organization there by identifying the specific problems faced by it and

suggesting recommendations or solutions.

The first part of this report deals with profile study of the organization covering specific topics like

Industry profile, incorporation and history of the organization, organization structure of PepsiCo

India Holdings Pvt. Ltd. The second part of the report deals with routine work in the organization

and in the stadium .This part gives information about the topic “Analysis of Sales of Pepsi Co

(India Holdings Pvt LTD Bangalore) during IPL 2015.”

The purpose of the study is to understand the consumer’s perception towards Pepsi Co products

and the various marketing strategies used by the company to capture the sales during the matches.

This also gives a clear view about the perception of consumers towards soft drinks. The study is

totally confined to improve the sales of Pepsi Co products in the stadium.

SECTION I

PROFILE STUDYOF THE ORGANIZATION

INDUSTRY ANALYSIS

The food & beverage industry is usually defined by its output of products that satisfies various

demands of people on food & drinks. In today’s world, the food & beverage industry has expanded

a lot. It has spread across all walks of life. Hotel, restaurants, industrial canteen, bars, soft drink

and juice companies, hospital canteen, railway, airways, candy manufacturers, all are now part of

food & beverage industry. The basic function of this industry is to serve food & drink to people

and thereby satisfy their needs. The main aim is to achieve customer satisfaction. The ever rising

consumer attraction towards the readymade food keeps the industry boosted for decades. As per

Food Processing’s Annual list 2014, top 5 food and beverage companies in the world include

PepsiCo Inc., Tyson Foods Inc., Nestle, JBS USA and Coca- Cola.

Products manufactured by the beverage industry include: bottled water, juice, sparkling and still

drinks, syrups, nectars, ready-to-drink and regular teas and coffees, dairy drinks, energy drinks,

sports drinks, fruit powders, and alcoholic drinks such as beer, wine, cider and spirits. The non-

alcoholic beverage industry is the fastest growing sector. This rapid growth is partially due to the

combination of maturity of the carbonated soft drink sector and heavy investments by major food

and beverage companies.

Soft drink industry is growing at 6% to 7% every year. Global beverage players, Coke and Pepsi

have a combined market share of about 95%, Campa Cola has 1% share and the rest is with the

local players and some fake players. There are about 110 soft drink producing units in India, of

which almost 60% is owned by Indian bottlers. The beverage industry is broadly classified into

water and flavored drinks. Flavored is divided into Alcoholic and Non-Alcoholic drinks.

Nonalcoholic includes milk based drinks, fruit based drinks, 100% fruit juice, hot beverages and

soft drinks.

Among the non-alcoholic drinks, carbonated soft drinks form the core part. Coca-Cola, PepsiCo

and Cadbury-Schweppes are the dominant players in this field. Cola segment has a market share

of around 62% which includes the drinks like Pepsi, Coca-Cola, Thumps up, Diet Pepsi and Diet

Coke. The remaining non- cola products includes the flavors like orange, cloudy lime, clear lime

and mango. Soft drinks are available in variants like glass bottles, aluminum cans and PET

(Polyethylene Terephthalate) bottles. They are also available in disposable containers.

Market preference in India varies with regions. Cola markets are dominated in the metro cities and

northern states like Uttar Pradesh, Punjab, and Haryana etc. Orange flavors and sodas are more

preferred by the southern states. Western states prefer mango flavors and drinks like diet Pepsi and

diet coke constitutes only 0.7% of the total carbonated beverage market. The per capita

consumption of soft drinks in India is about 5 to 6 bottles, same in Nepal, 17 in Pakistan, 21 in Sri

Lanka, 73 in Thailand, 173 in Philippines and 605 in Mexico. Steady growth and increasing sales

show highly rewarding future for the soft drink business in India. This industry also supports

growth of industries like refrigeration, glass, transportation and sugar.

NCAER (National Council of Applied Economic Research) conducted a study and it says that 91%

of the soft drink sales are made to the lower, middle and upper middle classes. Indian beverage

market is growing at a rate of about 6% a year, Chinese by 16% and the Russian market expanded

at almost four times the rate of growth of the Indian market. The two major players contributing

to the growth of Indian market is Coca-Cola and PepsiCo. Coca-Cola claims a market share of

51%, while Pepsi has a share of 46%.

Soft drinks industry continues growth in India mainly due to the demand for juices and bottled

water. Carbonated drinks and other sports and energy drinks are facing pressure due to growing

health concerns. They still continue to grow because of the brand name they hold and the efforts

they take. Both Coca-Cola and PepsiCo have been expanding their non-carbonated drink line-ups,

as consumers seem to be shifting away from carbonated soft drinks. New flavors were launched

by the leading companies like Coca-Cola India Pvt Ltd and PepsiCo India Holdings Pvt Ltd which

helped them in maintaining consumer’s interest in spite of slowdown. This made the consumers

buy the product at least once to taste the new variety. Smaller domestic companies like Hector

Beverages Pvt Ltd and Pioma Industries Ltd also introduced guava flavors, which is new in the

market.

Since the demand for juices has increased, the global beverage leaders, PepsiCo and Coca-Cola

compete mainly on juices. They are very close to each other in case of carbonates, bottled water

and juices. PepsiCo launched Tropicana Coconut Blends and Coca- Cola introduced Minute Maid

Guava flavor in 2013 to attract consumers. The factors like convenient location and easy to buy

products helped to continue the dominance of traditional channels to continue. But the modern

formats like hypermarkets and the modern trade which provides better assortments and price is

gaining an edge over the other.

As per Market Research Company Euro monitor International, global soft drinks volumes

expanded over four percent in 2013 and value sales grew by more than five percent with a retail

market size of over US $531.3 billion dollars. While the US remains the world's largest market in

both value and volume, markets such as China, Brazil and Mexico are also growing rapidly. The

2013 retail soft drink market size in China totaled US $66.5 billion with 15.2% percent fixed

growth. Brazil and Mexico's totals were US $22.5 billion and US $28.3 billion with 8.0% percent

fixed and 8.2% percent growth, respectively.

Now let’s have a look into the bottled water industry. It can be divided into two primary business

models, which is home & office delivery and retail bottled water. The home and office delivery

portion accounts for around 12% of the bottled water market and 88% by the retail sale. Today,

with a rise in health awareness, poor quality of tap water, increase in tourism and the ease of

availability of bottled water, the per capita consumption of bottled water in India is on the increase.

The total market was valued at Rs.60 billion in 2013 and is expected to grow at a rate of 22 percent,

to reach Rs.160 billion in 2018. Indian bottled water market is dominated by five players

accounting for a share of 67%. They include Bisleri, Coca-Cola, PepsiCo, Parle and Dhariwal.

Considering the demand of soft drinks, during summer season, there is demand from the customer

side. They will come to stores asking for soft drinks. But, otherwise the companies will have to

push the products aggressively. Sales promotions play a major role in such times. Sales will not

double and all, but will definitely increase by 20-30%.

Nature of competition: Oligopoly. An oligopoly is a market structure in which a few firms

dominate. When a market is shared between a few firms, it is said to be highly concentrated.

Although only a few firms dominate, it is possible that many small firms may also operate in the

market. In the soft drinks industry 95% of the total market share is constituted by the dominant

players Pepsi and Coke. The main characteristics of firms operating in a market with few close

rivals include interdependence i.e. they cannot act independently, profit maximization, ability to

set price i.e. they are price setters rather than price takers, high entry and exit barriers, few

dominant players, products may be homogenous or differentiated, can retain long run profits and

non-price competition.

Challenges faced by the industry: Main challenges faced by the food and beverages industry

includes Climate change, Global economic downturn, Obesity and diet-related illnesses, food

safety and consumer trust and the evolving simplicity trends among the consumers.

PEPSICO – AN INTRODUCTION

PepsiCo Inc. is an American Multinational Corporation with its headquarters at Purchase, New

York, United States. It manufactures and distributes food and beverage products in more than 200

countries. It was formed in 1965 by Donald Kendall and Herman Lays in North Carolina, U.S with

the merger of Pepsi-Cola Company and Frito- Lay, Inc. Since then the company expanded from

Pepsi to a broader range of products. Among the expansions, the largest is the acquisition of

Tropicana in 1998 and the merger with Quaker Oats in 2001. PepsiCo has net revenues of more

than $65 billion. Now the company owns several brands and among them, 22 brands including

Pepsi, Lays, Gatorade generates more than $1 billion each in revenues.

As per the market research company, Information Resources, Inc. (IRI), PepsiCo owns nine of the

forty largest packaged good’s trademarks in US. The recipe for Pepsi was first developed by Caleb

Bradham in the 1890s. Food products include chips, cereals, pasta, flavored snacks, rice and dairy

based products and beverage products include carbonated soft drinks, sports drinks, juices, bottled

water and ready to drink tea and coffee. Indra Krishnamurthy Nooyi is the Chief Executive officer

of PepsiCo since 2006.

The global food and beverage leader employs around 2,74,000 people worldwide. PepsiCo’s

people have a commitment towards sustainable growth by investing in a healthier future for people

and our planet. They believe, it also means successful future of PepsiCo. This unique commitment

is called Performance with Purpose. PepsiCo promises to provide a wide range of food and

beverages, to find innovative ways to reduce its impact on the environment by reducing energy,

water and packaging volume, to provide great workplace to employees and to respect, support and

invest in the local communities where they operate. Primary competitor of the company in the

beverage market is Coca- Cola.

HISTORY AND INCORPORATION

1898 - Born in the Carolinas in 1898, Pepsi-Cola has a long and rich history. The drink is the

invention of Caleb Bradham, a pharmacist and drugstore owner in New Bern, North Carolina. He

began experimenting with combinations of spices, juices, and syrups trying to create a refreshing

new drink to serve his customers. Caleb Bradham’s creation, a unique mixture of kola nut extract,

vanilla and rare oils, became so popular his customers named it "Brad's Drink". Caleb decided to

rename it "Pepsi-Cola", and advertised his new soft drink. People responded, and sales of Pepsi-

Cola started to grow, convincing him that he should form a company to market the new beverage.

The new name, Pepsi-Cola, is derived from two of the principal ingredients, pepsin and kola nuts.

It was first used on August 28.

1902 – Bradham launched the Pepsi-Cola Company in the back room of his pharmacy, and applied

to the U.S. Patent Office for a trademark. At first, he mixed the syrup himself and sold it

exclusively through soda fountains. But soon Caleb recognized that a greater opportunity existed

to bottle Pepsi so that people could drink it anywhere.

1903 - The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially registered

with the U.S. Patent Office. That year, Caleb sold 7,968 gallons of syrup, using the theme line

"Exhilarating, Invigorating, Aids Digestion."

1905 - A new logo appears, the first change from the original created in 1898.He also began

awarding franchises to bottle Pepsi to independent investors, whose number grew from just two in

1905, in the cities of Charlotte and Durham, North Carolina, to 15 the following year, and 40 by

1907. By the end of 1910, there were Pepsi-Cola franchises in 24 states.

Building a strong franchise system was one of Caleb's greatest achievements. Local Pepsi-Cola

bottlers, entrepreneurial in spirit and dedicated to the product's success, provided a sturdy

foundation. They were the cornerstone of the Pepsi-Cola enterprise. By 1907, the new company

was selling more than 100,000 gallons of syrup per year.

1906 - The logo is redesigned and a new slogan added: "The original pure food drink." The

trademark is registered in Canada.

1909 - Caleb erected a headquarters so spectacular that the town of New Bern pictured it on a

postcard. Famous racing car driver Barney Oldfield endorsed Pepsi in newspaper ads as "A bully

drink...refreshing, invigorating, a fine bracer before a race." The previous year, Pepsi had been one

of the first companies in the United States to switch from horse-drawn transport to motor vehicles,

and Caleb's business expertise captured widespread attention. He was even mentioned as a possible

candidate for Governor. The theme "Delicious and Healthful" appears, and will be used

intermittently over the next two decades.

1910- The first Pepsi-Cola bottler’s convention is held in New Born in North Carolina.

1920 - Pepsi-Cola enjoyed 17 unbroken years of success. Caleb now promoted Pepsi sales with

the slogan, "Drink Pepsi-Cola. It will satisfy you." Then after World War I, the cost of doing

business increased drastically. Sugar prices see sawed between record highs and disastrous lows,

and so did the price of producing Pepsi-Cola. Caleb was forced into a series of business gambles

just to survive, until finally, after three exhausting years, his luck ran out and he was bankrupted.

By 1921, only two plants remained open.

A successful candy manufacturer, Charles G. Guth, appeared on the scene assuring the future of

Pepsi-Cola. Guth was president of Loft Incorporated, a large chain of candy stores and soda

fountains along the eastern seaboard. He saw Pepsi-Cola as an opportunity to discontinue an

unsatisfactory business relationship with the Coca-Cola Company, and at the same time to add an

attractive drawing card to Loft's soda fountains. He was right. After five owners and 15

unprofitable years, Pepsi-Cola was once again a thriving national brand.

One oddity of the time, for a number of years, all of Pepsi-Cola's sales were actually administered

from a Baltimore building apparently owned by Coca-Cola, and named for its president. Within

two years, Pepsi could earn $1 million for its new owner. With the resurgence came new

confidence, a rarity in those days because the nation was in the early stages of a severe economic

decline that came to be known as the Great Depression.

1934- A land mark year for Pepsi-Cola, the drink is a hit and to attract even more sales, the

company begin selling it 12-ounce drink for five cents (the same cost as 6-ounce of competitive

colas). The 12-ounce bottle debuts in Baltimore, where it is an instant success. The cost saving

proves irrespirable to depression-worn Americans and sales skyrocket nationally.

1936- Pepsi grand’s 94 new US franchises and year-end profit reach $2100000.

1938- Water S Mack, Jr, V.P of phoenix Securities Corporation, president of the Pepsi-Cola

company considers advertising the key stone of the soft drink business, turns Pepsi into a modern

marketing company.

1939 - A newspaper cartoon strip, "Pepsi & Pete," introduces the theme "Twice as Much for a

Nickel" to increase consumer awareness of Pepsi's value advantage.

1940- The pepsi-cola company made history when the first advertisement jingle was broadcast

nationally on the radio. The jingle was “nickel nickel” an advertisement for Pepsi-cola that referred

to the price of Pepsi and the quantity for that price “nickel nickel” became a hit record and was

recorded into 55 languages.

1941 - In support of America's war effort, Pepsi changes the color of its bottle crowns to red, white

and blue. A Pepsi canteen in Times Square, New York, operates throughout the war, enabling more

than a million families to record messages for armed services personnel overseas.

1942- One on many company sponsored effort to allow soldiers to communicate with friends or

family. This record was made in New York City. But often booths would be setup with mobile

recording equipment that was bought to where the soldiers were.

1943- Pepsi’s theme line becomes “Bigger drink, Better taste”.

1948- Corporate headquarters moves from Long Island City, New York to Midtown, Manhattan.

1950-Alfred N. Steele becomes president and CEO of Pepsi cola. Mr. Steele’s wife, Hollywood

movie star Joan Crawford, is instrumental in promoting the company’s product line. Pepsi receives

its new logo, which incorporates the “Bottle Cap” look. The new logo is the fifth in Pepsi history.

1953- “The Light refreshment” campaign capitalizes on a change in the products formula that

reduces caloric content.

1954 - "The Light Refreshment" evolves to incorporate "Refreshing without Filling."

1958 - Pepsi struggles to enhance its brand image. Sometimes referred to as "the kitchen cola," as

a consequence of its long-time positioning as a bargain brand, Pepsi now identifies itself with

young, fashionable consumers with the "Be Sociable, Have a Pepsi" theme. A distinctive "swirl"

bottle replaces Pepsi's earlier straight-sided bottle.

1959- Pepsi debuts at the Moscow fair. Soviet president Khrushchev and US vice president Nixon

share a Pepsi.

1961 - Pepsi further refines its target audience, recognizing the increasing importance of the

younger, post-war generation. "Now it’s Pepsi, for those who think Young" defines youth as a

state of mind as much as a chronological age, maintaining the brand's appeal to all market

segments.

1962- Pepsi receives its new logo, the sixth in Pepsi history. The “serrated” bottle cap logo debuts,

accompanying the brands ground breaking “Pepsi generation” ad campaign.

1963 - In one of the most significant demographic events in commercial history, the post-war baby

boom emerges as a social and marketplace phenomenon. Pepsi recognizes the change, and

positions Pepsi as the brand belonging to the new generation-The Pepsi Generation. "Come alive!

You're in the Pepsi Generation" makes advertising history. It is the first time a product is identified,

not so much by its attributes, as by its consumers' lifestyles and attitudes.

1964 - A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising.

1965 - PepsiCo, Inc. was established through the merger of Pepsi-Cola and Frito-Lay. 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, former chairman

and CEO of Frito-Lay, was chairman of the board of directors of the new company; Donald M.

Kendall, former president and CEO of Pepsi-Cola, was president and chief executive officer.

1969 - "You've got a lot to live. Pepsi's got a lot to give" marks a shift in Pepsi Generation

advertising strategy. Youth and lifestyle are still the campaign's driving forces, but with

“Live/Give," a new awareness and a reflection of contemporary events and mood become integral

parts of the advertising's texture.

1970- Pepsi leads the way into metrics by introducing the industry’s first two litter bottles. Pepsi

is also first company to respond to consumer preference with light weight, recyclable, plastic

bottles. The Pepsi world headquarters moves from Manhattan to purchase, NY.

1974- First Pepsi plant opens in the USSR. Television ads introduce the new theme line, “hello,

sunshine, hello mountain dew.”

1976 - "Have a Pepsi Day" is the Pepsi Generation's upbeat reflection of an improving national

mood. "Puppies," a 30-second snapshot of an encounter between a very small boy and some even

smaller dogs, becomes an instant commercial classic.

1978- The company experiment with new flavors. 12 pack cans are introduced.

1980- Pepsi becomes number one in sales in the take home market.

1981- PepsiCo and china reach government agreement to manufacture soft drinks, with production

beginning next year.

1982- Pepsi free, a caffeine-free cola is introduced nationwide. Pepsi challenge activity has

penetrated 755 of the US market.

1983- Mountain dew launches the “dew to it” theme.

1984 - A new generation has emerged-in the United States, around the world and in Pepsi

advertising, too. "Pepsi the Choice of a New Generation" announces the change, and the most

popular entertainer of the time, Michael Jackson, stars in the first two commercials of the new

campaign. The two spots quickly become "the most eagerly awaited advertising of all time."

1985- After responding to years of decline, coke loses to Pepsi in preference tests by reformulating.

However, the new formula is met with wide spread consumer rejection, forcing the reintroduction

of the original formulation as “Coca-Cola classic” the cold war takes “one giant sip for mankind,”

when a Pepsi ‘space can” is successfully tested abroad the space shuttle. By the end of 1985, the

new generation campaign earns more than 58 major advertising and film-related awards. Pepsi’s

campaign featuring Lionel Richie is the most remembered in the country, according to consumer

preference polls.

1986 - 7up international is acquired in Canada. Pepsi-Cola acquires Mug Root Beer.

1987 - Pepsi-Cola world headquarters moves from purchase to Somers, New York. After a 27 year

absence, Pepsi returns to Broadway with the lighting of a spectacular new neon sign in Times

Square.

1988 - Michael Jackson returns to "New Generation" advertising to star in a four-part "episodic"

commercial named "Chase." "Chase" airs during the Grammy Awards program and is immediately

hailed by the media as "the most-watched commercial in advertising history."

1989 – Pepsi lunges into the next decade by declaring Pepsi lovers “A Generation ahead”. Pepsi-

Cola introduces an exciting new flavor wild cherry Pepsi.

1990 - Teen stars Fred Savage and Kirk Cameron join the "New Generation" campaign, and

football legend Joe Montana returns in a spot challenging other celebrities to taste test their colas

against Pepsi. Music legend Ray Charles stars in a new Diet Pepsi campaign, "You got the right

one baby."

1991 – Pepsi introduces first beverage bottles containing recycled polyethylene PET into the

market place. The development marks the first time recycled plastic is used in direct contact with

food in packaging.

1992 - Celebrities join consumers, declaring that they "Gotta have it." The interim campaign

supplants "Choice of a New Generation" as work proceeds on new Pepsi advertising for the '90s.

Mountain Dew growth continues, supported by the antics of an outrageous new Dew Crew whose

claim to fame is that, except for the unique great taste of Dew, they've "Been there, Done that,

Tried that."

1993 – Brand Pepsi introduces its slogan, “Be young. Have fun. Drink Pepsi.” Pepsi- Cola profit

surpass One billion dollar. Pepsi introduces an innovative 24 – can multi pack that satisfies

growing consumer demand for convenient large-size soft drink packaging. “The cube” is easier to

carry than the traditional 24pack and it fits in the refrigerator.

1994 - New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi CEO

Craig Weather up explaining the relationship between freshness and superior taste to consumers.

1995 - In a new campaign, the company declares "Nothing else is a Pepsi" and takes top honors in

the year's national advertising championship.

1996-in February of this year, Pepsi makes history once again, by launching one of the most

ambitious entertainment sites on the World Wide Web. Pepsi world eventually surpasses all

expectations, and becomes one of the most landed and copied, sites in the new media, and firmly

establishing Pepsi’s presence on the internet.

1997- In the early part of the year, Pepsi pushes into a new era with the unveiling of the generation

next campaign. Generation next is about everything that is young and fresh; a celebration of the

creative spirit. It is about the kind of attitude that challenges the norm with new ideas, at every

step of the way. PepsiCo announces that, effective October 6th, it will spin off its restaurant to

form triton globe restaurant, Inc. including pizza hut, taco bell &Kfc, and it will be the largest in

sales.

1998- Pepsi celebrates its 100th anniversary. PepsiCo chairman and CEO Roger A.Enrico denoted

his salary to provide scholarship for children of PepsiCo employees. Pepsi introduces Pepsi One-

the first one calorie drink without that diet taste. PepsiCo acquires Tropicana Products from

Seagram Company Ltd., the biggest acquisition ever undertaken by PepsiCo. Frito-Lay becomes

the snack chip leader in South and Central America as it enters a joint venture with Empreseas

Polar SA of Venezuela.

1999 - Tropicana juices enter the India market for the first time.

2000 - PepsiCo, Inc. reaches agreement to acquire a majority stake in South Beach Beverage

Company, whose highly innovative SoBe brand has made it one of industry's most successful

companies.

2001 - PepsiCo merges with The Quaker Oats Company.

2002 -Quaker Oatmeal celebrates the 125th anniversary of the nation's number-one choice for a

nutritious, hot breakfast cereal.

2003 - Pepsi-Cola launches Sierra Mist in the United States. Frito-Lay removed trans-fat from

nearly its entire snack chips portfolio, including Lay's potato chips, Tostitos tortilla chips and

Cheetos cheese flavored snacks. Pepsi-Cola trademark turns 100 years old.

2004 - PepsiCo publishes its first Corporate Citizenship report in the 2003 Annual Report.

2005 - PepsiCo celebrates its 40th anniversary.

2006 - Pepsi celebrates its participation in its 20th consecutive Super Bowl. IndraNooyi named

chief executive officer of PepsiCo. Pepsi acquires IZZE Beverage Company. PepsiCo announced

its intent to acquire Naked Juice Company and the New Zealand snack company Bluebird Foods.

PepsiCo completes the acquisition of Stacy's Pita Chip Co.

2007 - PepsiCo introduces Performance with Purpose, making it one of the first contemporary

companies to recognize the important interdependence between corporations and society. PepsiCo

and Pepsi Americas jointly acquire Sandora, a leading juice company in Ukraine.

2008 - PepsiCo announces plans to invest US $1 billion in China over the next four years as part

of the strategy to expand in emerging markets and broaden the portfolio of locally relevant

products.

2009 - PepsiCo and Calbee Foods Company announce a strategic alliance to make and sell a wide

range of food products in Japan. PepsiCo introduces the first climate-friendly vending machines

to the United States.

2010 - PepsiCo completed the acquisition of The Pepsi Bottling Group, Inc. and PepsiAmericas,

Inc., its two largest anchor bottlers. PepsiCo announces its intent to acquire Russia's Wimm-Bill-

Dann, Russia's leading branded food-and-beverage company. AMP Energy Juice launches across

the United States.

2011 - PepsiCo and Tingyi Holding, one of the major food and beverage companies in China,

announce an agreement to form a strategic alliance in China. PepsiCo acquires Mabel, a leading

producer of cookies, crackers and snacks in Brazil.

2012 - Diet Mountain Dew, Brisk and Starbucks ready-to-drink beverages join PepsiCo's portfolio

of billion-dollar brands, bringing the total to 22. Pepsi launches reduced-calorie cola innovation

Pepsi Next.

2013 - Müller Quaker Dairy, a joint venture between PepsiCo and The Müller Group, open a new

state-of-the-art yogurt manufacturing facility in Batavia, New York.

As per the latest news new non-cola beverage sweetened with stevia and sugar will be launching

in US this year. While cola products combining stevia and sugar will be tested in the other markets.

PEPSICO INDIA

PepsiCo entered India in 1989 and in a short period, has grown into one of the largest food and

beverage businesses in the country. PepsiCo growth in India has been guided by its global vision

of “Performance with Purpose”. This means that while businesses maximize shareholder value,

they have a responsibility to all the stakeholders, including the communities in which they operate,

the consumers they serve and the environment whose resources they use.

PepsiCo India has two types of operation namely:

1. Company owned Bottling Operation (COBO):

PepsiCo India sets up own bottling units (factories). The company also does marketing of the

beverage. There are 4 such units in India. They are Karnataka & Kerala, Tamil Nadu, Mumbai and

AndraPradhesh&Telugana.

2. Franchisee owned Bottling operation (FOBO):

Where PepsiCo authorized bottling units manufacture and market the Pepsi brands in certain

agreed area.

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.

Large investor and one of the largest food & beverage businesses in India: One of the largest

US multinational investors in the country, PepsiCo has been consistently investing in India and

has built an expansive beverage and snack food business supported by 38 beverage plants and 3

food plants. PepsiCo and its partners recently announced an additional targeted investment of Rs.

33,000 Crore in India by 2020 in the areas of product innovation, increasing manufacturing

capacity, ramping up market infrastructure, strengthening supply chain and expanding company’s

agriculture programme.

A growing portfolio of enjoyable and wholesome snacks and beverages: PepsiCo India’s

portfolio reflects its commitment to nourish consumers with a diverse range of fun and healthier

products. The portfolio includes several healthier treats like Quaker Oats, Tropicana juices,

Tropicana fruit powders, rehydrator Gatorade, Tata Water plus, Lay’s baked range, Quaker

flavoured oats and Quaker NutriUpma&NutriPoha breakfast range with the power of wholegrain.

Model partnership with over 24,000 farmers: PepsiCo India has pioneered and established a

model of partnership with farmers and now works with over 24,000 happy farmers across nine

states. PepsiCo provides quality seeds, extension services, disease control packages, bank loans,

weather insurance, and the latest technological practices.

Global leader in water conservation: In 2009, PepsiCo India achieved a significant milestone,

by becoming the first business to achieve ‘Positive Water Balance’ in the beverage world, and has

been Water Positive since then. This fact has been independently assured by Deloitte Touché

Tohmatsu India Pvt. Ltd. In 2012, PepsiCo India saved 8.2 billion liters more that it consumed in

its manufacturing operations. The company made this possible through innovative irrigation

practices like direct seeding, community water recharging initiatives, and by reducing the

consumption of water in its manufacturing facilities.

Care for the environment: PepsiCo India is now focused on reducing its carbon footprint. More

than 40 per cent of its energy is today generated from renewable sources such as bio mass & rice

husk boilers and wind turbines. PepsiCo in partnership with the NGO Exnora and local

municipalities has also been working on a unique waste collection and treatment program called

‘Waste-to-Wealth’.

Exemplary employment practices: PepsiCo India provides direct and indirect employment to

almost 2,00,000 people. The company believes in providing employment and growth opportunities

to local talent. Its ‘College of Leadership’, ensures early identification of talent, and employees’

focused development through critical experiences.

Infrastructure facility: PepsiCo has a very good canteen service for its employees where they are

served with good and nutritious food and drinks. It maintains a very good communication system

internally and externally as it is facilitated or equipped with telephones, computers and the internet

services. The PepsiCo offices are being redesigned according to the modern requirement with

cabinets, office furniture's, systems, fans, air conditions, stationeries, etc. PepsiCo is having

pleasant ambience in its entire unit and in head office. It is being equipped with all kind of modern

facilities that are required.

PEPSICO’S MISSION

Our mission is to be the world's premier consumer products’ company focused on convenient foods

and beverages. We seek to produce financial rewards to investors even as we provide opportunities

for growth and enrichment to our employees, our business partners and the communities in which

we operate. And in everything we do, we strive for honesty, fairness and integrity.

PEPSICO’S VISION

PepsiCo's responsibility is to continually improve all aspects of the world in which we operate –

environmental, social, economic – creating a better tomorrow than today.

Our vision is put into action through programmes and a focus on environmental stewardship,

activities to benefit society and a commitment to build shareholder value by making PepsiCo a

truly sustainable company.

Performance with Purpose

At PepsiCo, we're committed to achieving business and financial success while leaving a positive

imprint on society – delivering what we call Performance with Purpose.

Our approach to superior financial performance is straightforward – drive shareholder value. By

addressing social and environmental issues, we also deliver on our purpose agenda, which consists

of human, environmental, and talent sustainability.

QUALITY POLICY

1) The best delivery.

2) The best product in the market place.

3) The highest quality.

4) The best testing.

CORPORATE OFFICE

PepsiCo India Holdings Private Limited,

2nd Floor, Tower A, Global Business Park, M.G. Road,

Sikenderpur, Gurgaon, Haryana, 122002

HEAD OFFICE

PepsiCo India comes under AMEA (Asia, Middle East, and Africa) region.

PepsiCo India Holdings Private Limited,

3B, DLF Corporate Park, 'S' Block, Qutab Enclave,

Phase-III, Gurgaon – 122002, Haryana, India

Tel: 91-124-2880699

4 UNITS IN INDIA

1) Karnataka & Kerala

2) Tamil Nadu

3) Mumbai

4) AndraPradhesh&Telugana

FINANCIAL STATEMENT OF PEPSICO INC, AND SUBSIDARIES

2014 Financial Highlights:

53%

47%

Mix of Net Revenue

Food Beverage

32%

22%20%

12%

10%

4%

Net Revenues

PepsiCo Americas Beverages Frito-Lay North America PepsiCo Europe

Latin America Foods PepsiCo AMEA Quaker Foods North America

Summary of Operations 2014 2013 %change

Net revenue $66,683 $66,415 –%

Core total operating profit $10,313 $10,061 2.5%

Core earnings per share attributable to PepsiCo $ 4.63 $ 4.37 6%

Free cash flow, excluding certain items $ 8,259 $ 8,162 1%

Capital spending $ 2,859 $ 2,795 2%

Common share repurchases $ 5,012 $ 3,001 67%

Dividends paid $ 3,730 $ 3,434 9%

(in millions except per share data; all per share amounts assume dilution)

PEPSICO’S BUSINESS MODEL

Diversified business model: PepsiCo Inc. (PEP) has a diversified business model with a strong

presence in food and beverage products. In a scenario where carbonated soft drinks have been

continually declining, PepsiCo’s significant presence in the snack food category gives it an edge

over its closest rival, The Coca-Cola Company (KO), which is heavily dependent on sparkling or

carbonated beverages. In 2014, PepsiCo’s food business accounted for 52% and its beverage

business accounted for 48% of the company’s $66.4 billion revenues.

Complementary products: PepsiCo benefits from its presence in two complementary categories:

food and beverages. There is a high coincidence of purchase between these two categories.

According to Information Resources, Inc. (or IRI), a market research company, 54% of US

consumers who buy salty snacks also buy a beverage in the same basket. For instance, PepsiCo

states that when Frito-Lay snacks are merchandised along with Pepsi carbonated soft drinks (or

CSDs), it results in higher sales.

Leveraging category strength: The presence of one category of business in a region makes

PepsiCo’s entry easier into the complementary category. For instance, PepsiCo is able to leverage

its beverage business in emerging markets to develop its snacks business.

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Competitors have a similar business model: PepsiCo’s peers Kraft Foods Group Inc. (KRFT)

and Mondelez International, Inc. (MDLZ) also have a presence in the food and beverage

categories. In 2013, Kraft Foods derived 10% of its $18.2 billion in revenue from refreshment

beverages and food. That year, MondelezInternational derived about 17% of its $35.3 billion of

revenue from beverages and snack food. The companies mentioned above are part of the consumer

staples sector.

PEPSICO’S THREE-CHANNEL DISTRIBUTION NETWORK

PepsiCo Inc. (PEP) is a leading food and beverage company with an impressive global presence.

The company’s products reach the market through the following three channels: direct store

delivery (or DSD), customer warehouse, and third-party distributor networks. PepsiCo chooses the

relevant distribution channel based on customer needs, product characteristics, and local trade

practices.

Direct store delivery: Under the DSD system, PepsiCo delivers products directly to retail stores.

Of the three channels, DSD enables PepsiCo to merchandise with maximum visibility. It’s more

suitable for products that are restocked often and are sensitive to promotions and marketing.

Customer warehouse: The customer warehouse system is a less expensive distribution channel.

It’s ideal for products that are less fragile and perishable, have lower turnover, and are not

purchased impulsively.

Third-party distributor networks: PepsiCo distributes food and beverage products to

restaurants, businesses, schools, and stadiums through third-party food service and vending

distributors and operators.

There are two types of sales. Primary sales and Secondary sales. Both primary and secondary sales

are important for the company. Primary sales happen between the manufacturer and the distributor.

That is, from the company, products are made available to the distributors. The products are taken

from the factory at Nelamangala, Bangalore.

PepsiCo India Holdings Pvt Ltd (Factory), 34 Km Stone, National Highway,

TeppadaBegur, Nelamangala, Bangalore – 562123.

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In order to decide on the distribution point location, company will look into certain factors like

How many outlets are there in and around that region?

No. of vehicles required?

Manpower required?

Stocks needed?

After deciding on such factors, a distribution point will be selected. For each distribution point

there will be one CE and 2-3 PSRs depending on the requirement.

Secondary sales happen between distributors and retailers. It means generating sales from market.

PSRs are responsible for generating orders. They go to different outlets in the region, speak with

the customers, convince them and get the orders. They are considered as the key people as they

are the frontline employees who have direct contact with the customers (retailers). They only know

the pulse of the market. PSRs have a vital role in maintaining route, increasing Pepsi share,

increasing cooler effectiveness etc. In order to decide on the sales promotion activities, their

contribution is very important. Some customers ask for additional benefits or they’ll ask why you

are not providing the benefits which the other company (competitor) provides. Likewise, PSRs can

understand customer expectations and what the competition is doing, which can be used by the

company to decide on promotional activities.

Depending on the orders, vehicles and manpower will be decided for the distribution purpose.

Manpower includes loaders, drivers and collection/ delivery agents. There are two kinds of loaders.

Primary loaders are responsible for unloading company stocks at the distribution point and

secondary/ route loaders are responsible for unloading stocks at the outlets. Collection or delivery

agents are responsible for delivering the stocks at the outlets and collecting cash. Most of the times

a single person will be the driver and delivery agent in order to reduce the cost.

Visi Coolers and signage’s are provided to the outlets. Visi coolers are given only to those outlets

with 365 day business. Some outlets will be opened during summer and they will ask for coolers.

It will not be provided to such small outlets. In order have these coolers; the retailers should sign

an agreement with the company stating that they’ll keep the coolers for these many years. For

getting the coolers, there are some conditions to be followed.

Coolers are in different sizes. For every 100 liters of cooler, the retailer should buy at least 3 cases

of glass bottles and 6 cases of any other stocks initially in order to have cooler. Retailers are not

supposed to keep the competitor products in Pepsi’s visi coolers. But, whether they follow this or

not depends on the relationship they have with the company staff. Some PSRs become successful

in making them do so. But some are not.

ORGANIZATIONAL STRUCTURE

Organizational Hierarchy of PepsiCo India Holding Private Ltd.: The head office of PepsiCo

India is situated in Gurgaon, Haryana. In PepsiCo Bangalore there is only sales department with

HR and marketing being the support system.90 % of employees in Karnataka Kerala region come

under sales department. The rest 10 % include Human resource, marketing and IT.

For every region (For example, Karnataka, Kerala etc.), there is a unit manager under whom there

are many Territory Development Managers (TDM). Karnataka is divided into different territories

and TDMs are responsible for sales in their particular territory. There are many Customer

Executives (CE) under each TDM. The next level includes the frontline employees called Pre

Sales Representatives (PSR).

UM-Unit Manager: In charge of day to day operations and supervisions of all the functions within

the unit including operations, logistics, sales and distribution and marketing. The unit manger

reports to the CEO India at Gurgaon.

TDM- Territory Development Manager: TDM is the in charge of the sales and distribution

network of particular territory within a zone. Responsible for the daily, monthly and annual sales

within the territory decides the daily schemes for products and incentives for salespersons'. He is

also responsible for cost effectiveness, profit generation and profit maximization within the

territory.

MDM-Marketing Development Manager: MDM is the responsible for all the marketing

activities and their effectiveness within the territory. Decide the format and time frame of the

marketing and the promotional activities and the incentives given to the retailers.

SDM- Sales Development Manager: He is responsible for maintaining cooler purity i.e. to ensure

that the Pepsi coolers consist of their products only. Coolers should also be 100% charged.

ASM-Area Sales Manager: Reports to the TDM. He is directly responsible for any issues in the

area and is supposed to ensure the smooth functioning of the entire sales and distribution network

in the area. ASM is responsible for timely disposable of any issue faced by the retailers. He decides

and approves the boards, displays and hoardings in the area.

SM- Sales manager

MDC-Marketing Development Coordinator: Reports to MDM, and is in charge of carrying out

all the marketing activities in the area. He is responsible for the execution and success of marketing

and promotional activities, Coordinates with outside agencies for displays, boards, checks

conducted in the market. He is also responsible to keep a check on the expenditure of the marketing

activities in the market.

BDM- Business Development Manger

BDC- Business Development Coordinator

Customer executives come under every TDMs, ASMs and MDCs. Each distributor point will have

one CE and PSRs (Pepsi sales representatives) under him.

CE-Customer Executive: He is supposed to report to the ADC and in charge of salespersons. He

is required to visit the market and accompany every salesperson as frequently as possible. He is

the first person to get the information about the market / area and is the first contact if the

salesperson or retailers face issue and responsible for assigning and achieving daily sales target

given to the salespersons.

ME-Marketing Executive: Reports to the MDC and is responsible for daily functioning of the

marketing activities in the including awareness of promotions in the market and the response in

the market.

Salesperson: They are the most important asset for the company as they are the ones who sell the

products, are responsible for acquiring new customers, and retain the old ones. Their work also

includes informing the retailers about the promotions and the new scheme launched. They are also

required to push for the sale of new product launched in the market and make sure that the retailers

are following the company guidelines regarding the launch and the maintenance of visi coolers.

They report to the CE.

Marketing Assistant: Reports to the ME and is responsible for the distribution and usage of the

displays and boards in the area. Also has to check whether retailers are following the guidelines of

the company regarding promotional displays, other displays and displays in the visicoolers. They

report to the ME.

Recruitment Sources:

1. Internal reference-20%

2. Internal job posting-30%

3. Naukri-10%

4. Consultance-40%

Training Process: For all fresher’s, the HR team arrange a 15 days training programme. They call

it as 15 days baby care programme. They send the fresher’s to the market for 15 days with a CE

(buddy). After learning the market, fresher’s have 3 days of training session. For all CEs & sales

managers, now Pepsi implemented a 4DX programme (4 discipline execution program).

Performance appraisal: Performance management program.

1. Objectives (should be smart)

2. Managerial rating

3. Calibration

4. Focal pointing

Industrial Relations: The Company has a very cordial atmosphere. It is mainly a people Focus

Company than engineering or technical oriented. It is informal during approach and formal during

results. The management and union have joined hands for the achievement of organizational

objectives.

Leave system:

Personal leaves- Unlimited

Sick leaves- 30 days

Maternity leave- 6 months

Sabbatical- If he complete 3 years, he can take leave for 6 months to 1 year. No salary.

Annual leaves- 26 days

Motivation: Every unit has their own sales driven tactics, engagement calendar-celebrating days,

rewards and recognition. So it will vary from units to units. Newsletter every week congratulating

5 top performing customer executives, contests, incentives, meeting coffee with Unit Manager,

Team outing, cricket match, family day etc… are some of the other usual activities.

PRODUCT OR SERVICE PROFILE

PepsiCo nourishes consumers with a range of products from treats to healthy eats that deliver joyas

well as nutrition and always, good taste. PepsiCo India’s expansive portfolio includes iconic

refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options

such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water,

isotonicsports drinks - Tropicana100% fruit juices, and juice based drinks – Tropicana Nectars,

Tropicana Twister and Slice. Local brands – Lehar Evervess Soda 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 Chips 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 Chip

sand Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its

products contain voluntary nutritional labeling on their packets.

PepsiCo offers products to over 200 countries and territories, and their Global Brands are their

biggest sellers. There are 22flagship food and beverages brands for PepsiCo and there are three

categories of products. They are

1. Good for You: At PepsiCo, Good for You means just those nutritious products that include

fruits, vegetables, whole grains, low-fat dairy, nuts, seeds and key nutrients, with limits on

sodium, sugar and saturated fat that meet global dietary requirements. These are the foods

and beverages that fuel our body, our performance and our lifestyle.

2. Better for You: Indulging yourself doesn't mean feeling guilty. Better for you brands offer

snacks baked with lower fat content, snacks with whole grains, and beverages with fewer

or zero calories and less added sugar.

PepsiCo’s carbonated beverages: PepsiCo has a strong carbonated beverage portfolio that

includes its leading brand, Pepsi-Cola, and other brands such as Mountain Dew and Miranda.

PepsiCo and Coca-Cola together hold about a 70% share of the US carbonated soft drink (or

CSD) volumes.

Noncarbonated beverages: PepsiCo’s noncarbonated beverage portfolio includes leading brands

such as Tropicana in the juice category and Aquafina in the bottled water category. The company’s

Naked Juice brand comprises premium juices and protein smoothies. The company also sells

ready-to-drink teas such as Lipton and coffee products through joint ventures with Unilever and

Starbucks. In the fast-growing sports and energy drinks category, the company owns the popular

Gatorade brand.

Because of continually declining carbonated sales volumes and rising health awareness, PepsiCo

is looking to expand into healthier beverages. PepsiCo’s Tropicana brand launched three new

flavors of Farm stand 100% juice, which is made of one serving of fruit and one serving of

vegetables per 8 ounces. PepsiCo’s Naked Juice introduced the Chia Sweet Peach and Chia Cherry

Lime flavors, which include chia seeds that are rich in omega-3 oils, antioxidants, protein, and

fiber. Naked Juice also introduced the Kale Blazer with green vegetables.

Food section also consists of many categories of products.

Snack foods: PepsiCo’s Frito-Lay unit manufactures some of the most popular snacks, including

Lay’s potato chips, Doritos tortilla chips, Cheetos cheese flavored snacks, Tostitos tortilla chips

and branded dips, Ruffles potato chips, Fritos corn chips, and Santitas tortilla chips. Frito-Lay

North America’s joint venture with Strauss Group manufactures Sabra refrigerated dips and

spreads.

Health food: In 2001, PepsiCo merged with The Quaker Oats Company. Today, the company’s

food offerings comprise ready-to-eat cereals, rice, pasta, dairy, and other products. Key brands

include Quaker oatmeal, Quaker Chewy Granola Bars, Cap’n Crunch cereal, Life cereal, and Rice-

A-Roni side dishes.

With consumers shifting to healthier foods, PepsiCo is focused on developing new products with

lower sodium and fat levels. The company is also using new technologies such as air popping to

bring out lower-fat products. In air popping, the snacks are heated and pressurized until they pop.

Since 2013, the company has introduced the following three air-popped potato chip products:

Walkers Pops in the United Kingdom, Smith’s Popped in Australia, and Lay’s Air Pops in the

United States. These air-popped chips contain half the fat of regular potato chips.

PepsiCo’s nutrition portfolio: PepsiCo Inc.’s (PEP) nutrition business has been growing

significantly over the past few years. In 2013, the company’s nutrition business represented about

20% of PepsiCo’s net revenue. PepsiCo has the following four core nutrition brands:

Quaker

Tropicana

Gatorade

Naked Juice


PepsiCo is expanding its portfolio of nutritional products and looking for entry into new product

categories such as dairy, hummus and other fresh dips, and baked grain snacks.

Healthier variants: PepsiCo is also working to improve the health quotient of its existing snacks

and beverage products. The company aims to reduce the average amount of saturated fats per

serving in key global food brands by 15% by 2020 and reduce the average amount of sodium per

serving in food products by 25% by 2020, compared to 2006 levels.

In the beverage category, PepsiCo added many new low- and zero-calorie variants. For instance,

PepsiCo Mexico reduced sugar in Miranda by 25% per serving in 2013.In September 2014, the

three major soft drink makers, The Coca-Cola Company (KO), PepsiCo, and Dr Pepper Snapple

Group, Inc. (DPS), pledged to reduce calorie consumption in sugary drinks in the United States by

20% by 2025.

The industry leaders plan to achieve this goal through packaging changes, reducing serving sizes,

expanding low- and no-calorie drinks products, and using its marketing skills to educate customers.

PepsiCo is also acquiring or entering into alliances with companies that own healthy products. For

instance, in 2011, PepsiCo acquired Wimm Bill Dan Foods, a leading Russian company in the

dairy category.

Beverage products offered by PepsiCo India Holdings Pvt. Ltd. Bangalore:

1. Carbonated soft drinks: Pepsi, Mirinda, 7up, Mountain Dew.

2. Non-Carbonated fruit based drinks: Slice, Tropicana twister Orange/apple taste.

3. 100% fruit Juices: Tropicana 100% fruit juice.

4. Packaged drinking water: Aquafina.

5. Soda drinks: Lehar Evervess Soda.

CUSTOMERS OF PEPSICO

PepsiCo’s customers include authorized bottlers and independent distributors, including

foodservice distributors and retailers. PepsiCo normally grants its bottlers exclusive contracts to


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sell and manufacture certain beverage products bearing its trademarks within a specific geographic

area. These arrangements provide PepsiCo with the right to charge its bottlers for concentrate,

finished goods and Aquafina royalties and specify the manufacturing process required for the

product quality.

Since PepsiCo does not sell directly to the end consumer it relies on and provides financial

incentives to its customers to assist in the distribution and promotion of its products. For its

independent distributors and retailers, these incentives include volume based rebates, these

incentives are referred to as bottler funding and are negotiated annually with each bottler to support

a variety of trade and consumer programmes, such as consumer incentives, advertising support,

new product support and vending and cooler equipment placement.

Retail consolidation and the current economic environment continue to increase the importance of

major customers like restaurants, shopping malls like Reliance fresh, More, etc.

COMPETITORS INFORMATION

PepsiCo competes with global, regional, and private companies across the food and non-alcoholic

beverage space. In the food industry, the company’s rivals include ConAgra Foods, Inc. (CAG),

Kellogg Company (K), Kraft Foods Group Inc.

(KRFT), Mondelez International, Inc. (MDLZ),

Snyder’s-Lance, Inc. (LNCE), and Nestlé S.A.

(NSRGY).

In the non-alcoholic beverage industry, the Coca-Cola

Company (KO) is PepsiCo’s closest rival. Other peers

in the beverage industry include Dr Pepper Snapple

Group, Inc. (DPS), Cott Corporation (COT), Red Bull

GmbH, and Monster Beverage Corporation (MNST).

Coca-Cola: In competition to Pepsi Company, Coco-

Cola is the only major organized company which is

providing toughest competition in terms of variety of

products, quality of products and market share in the

industry. Coco-Cola has 39 bottling plants in India

PepsiCo. Brands Coca-Cola Brands

Pepsi Coke

7-up Thumps up

Mountain Dew Sprite

7up Ice Citra

Mirinda Orange Fanta

Mirinda Lemon Limca

Slice Maaza

Aquafina (water) Kinley(water)

Lehar Soda Kinley(soda)

Diet Pepsi Diet Coke

Duke Soda

Tin

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which manufactures seven brands of the company and the different brands of Coca-Cola are Coke,

Thumps Up, Maaza, Fanta, Limca, Sprite and Kinley Soda.

Coco-Cola Company re-entered India in the year 1993 and in order to gain market share the

company acquired various top selling brands in the Indian market like Maaza, Limca, Citra, Gold

spot etc. from Parle India Pvt. Ltd. and Thumps up from a local company. The major competitor

of PepsiCo is Coca-Cola along with local/unorganized sector.

FUNCTIONAL DEPARTMENTS

There are 5 main functional departments in PepsiCo.

Marketing Department

Finance and account Department

Purchase & sales Department

Service Department

Personnel Department

Marketing Department: This department is responsible for all marketing aspects of retail

operation. They are the one who are mostly into all with the current and prospective customers.

This department is headed by general manager who is assisted by 2 assistant managers who are in

charge of field sales and other corporate sales. They are further assisted by a team of field sales

executive, and sales executive.

Finance and Accounts Department: This department is responsible for preparation of all account

financial aspects of the dealership and retail operations. This department is under General Manager

who is assisted by a finance manager. Accountants, a cashier, and an EDP/Records officer again

assist the finance manager.

Purchase & Sales Department: Purchase department takes care of total purchase thorough

respective heads to the purchase department. Organization structure of sales department is as

shown.

TDM (territory development manager)

CE (Customer Executive)

PSR (Pre Sales representatives)

The number of Customer Executives (CEs) and PSRs depends on the size and structure of territory.

Services Department: This department is chained with the responsibility of maintaining service

standards. They have to maintain customer satisfaction and after sales service, a long relationship

with the customer. It is again headed by General Manager, who is further assisted by the manager

in charge of sales and services. Here the main objective is to satisfy the customer. In each and

every department this service department plays a major role.

Personnel Department: Personnel management department is responsible for offering service

and coordination of the different activities of various departments. It is again headed by the General

Manager who is assisted by an office manager. It also includes an office secretary, a receptionist,

stenographers and housekeeping assistants. The information flows from the higher superiority to

the lower subordinate.

Objectives of Personnel Department: Growth and satisfaction of the employees of the organization,

maintain an organization climate conducive to human growth, satisfaction and contribution and to

Unit Manager

TDM

CE CE

PSR PSR

TDM

create an environment for team work, and involvement of all personnel for achieving the

company’s objectives.

FUTURE GROWTH AND PROSPECTS

PepsiCo announced that its targeted investment is of Rs. 33000 cores in India by 2020.Hence this

investment will further strengthen PepsiCo’s position as one of India’s leading food and beverage

companies. Strategic imitative will fund investments in innovation manufacturing, selling and go-

to-market infrastructure and agriculture.

Innovation: PepsiCo will continue to expand the range of foods and beverages in its portfolio to

cater to the wide and evolving needs of Indian consumers. PepsiCo has a long history of

successfully innovating for the Indian market, and PepsiCo India already has organically built

eight brands that generate Rs. 1,000 crores or more in estimated annual retail sales (Pepsi, Lay's,

Kurkure, 7UP, Slice, Mirinda, Mountain Dew and Aquafina).

Manufacturing: PepsiCo plans to significantly increase manufacturing capacity to meet the

growing demand for its foods and beverages. PepsiCo and its partners plan to expand their

production capacity in India to more than double current levels by 2020.

Infrastructure: PepsiCo and its partners plan to ramp up selling and delivery infrastructure

throughout the country, with a particular focus on rural market expansion. As part of this strategic

initiative, PepsiCo will work with its partners to deploy new technologies designed to enhance

service to retail customers and increase efficiency across go-to-market systems.

Agriculture: Resources will be allocated to expand PepsiCo's well-known collaborative farming

program, which provides farmers with access to good quality seeds, technical agronomic expertise,

bank loans and crop insurance. This program currently reaches 24,000 farmers, positively

impacting their income and social standing in addition to strengthening the reliability and quality

of PepsiCo's supply chain.

PepsiCo Chairman and Chief Executive Officer IndraNooyi said: "Most importantly, our

investments will be aligned with India's interests," Nooyi added. "We will be guided by

Performance with Purpose, PepsiCo's vision for building a profitable and sustainable 21st century

corporation that is a good investment for our shareholders, a good environment for our employees,

a good citizen in our communities and a good steward of our planet's resources. We believe

Performance with Purpose will drive sustained value for PepsiCo and positively contribute

to India's development well into the future."

SWOT ANALYSIS OF PEPSICO

Strengths:

One of the most popular and globally recognized brands in food and beverage industry.

Have popular subsidiary brands like Lays, Gatorade, Pepsi, Quaker, Tropicana etc.

2nd in the world as leading distributor of carbonated drink.

PepsiCo’s cold drink brands are famous among youngsters. The youngsters are aware of

most of the PepsiCo brands in the market.

Relationship with the local community is an added advantage, as they look into the

development for their people as stated in their mission.

The company has established good bargaining power with the retailers by supplying

necessary cooling equipment’s thus locking them in as exclusive outlets.

Invest more in research and development for more affordable and nutritional products.

Reduced use of water by recycling & purification system. They reuse 75% of water used

in production. The company made this possible through innovative irrigation practices like

direct seeding, community water recharging initiatives, and by reducing the consumption

of water in its manufacturing facilities.

Offers extensive variety of product lines.

Different flavors were created that tailors to the country they are sold in. The company

finds out the taste that the Indians are fond of and introduces a new taste for the fulfillment

of their existing need.

High level of customer loyalty for most of the brands within product portfolio.

CSR activities through PepsiCo Foundation, which works in the sector of education, health,

water conservation etc.

Towards product reformulation – reduce salt, eliminate trans-fat which diminish calories.

Strong marketing strategies like using famous celebrities. Eg- Tiger Wood

Weaknesses:

Supply chain inefficiencies that affect retailers, were solved too slow i.e. there happens

delay in delivery of stock to retailers.

Market share was low in the soft drink industry and continued to decline.

Lower sales of non-carbonated beverages outside North America.

Strong competition in the aerated drinks segment from Coca-Cola leads to high brand

switching.

High level of dependence on large supermarkets such as Wal-Mart.

Aquafina tap water scandal.

Tropicana kids orange juice product recall.

The company lags behind its competitor Coca Cola in taste and providing credit to retailers,

which has made them, lose out significantly in certain regions.

The sale is dependent inversely on monsoons.

There is no proper visibility in market for consumer awareness of each product of PepsiCo.

Lack of schemes for retailer and consumer in comparison to Coca Cola.

Delay in replacement of damaged bottles makes the retailers change their stocking decision

of PepsiCo products.

Opportunities:

The acquisition of anchor bottlers in North America and Europe, enable them to drive

growth, dynamic future and more integrated supply chain.

Consumers are leaning towards healthier foods. With the use of more healthy supplements

PepsiCo can address the issues related to health concern.

With the use of technologies of recycling water, PepsiCo can start planning its operations

in African continent.

Demand for products are high as they were well recognized.

Expand further into the international market. The opportunity for growth in developed

countries is greater as per capita consumption is high.

Increasing presences in the emerging markets in developing countries such as China and

India.

Consistent growth.

Further research in innovations to make better-for-you snacks, and to produce sweeteners

that would lower the calorie content in drinks.

To improve its brand image by involving in more CSR activities to benefit the local

communities.

The untapped rural markets have a vast potential for smaller volume soft drink packs which

currently contribute only 15% of company sales.

There is a huge opportunity for increasing the market sales of packaged drinking water

Aquafina; fruit based juice Tropicana, Tropicana twister and other variants of Tropicana.

There is an opportunity to increase the sales of tetra-packs of slice.

Main sponsor of the Indian Premier League.

Threats:

Declining interest in some products such as the carbonated beverages as the public is

moving towards healthier choices.

Health consciousness amongst people can take a toll on its aerated drinks and snacks food

markets.

New products are constantly entering the market that competes directly with the Pepsi

products. Many of these products offer same benefit but lower price.

Constant competition with Coca cola and other brands pose a threat to their sales and

market share.

Compliance with different government regulations and norms in different countries.

Inflation, economic slowdown and instability causes decline in the purchasing power of

consumers.

High amount of sugar or salt in products being criticized by government and non-

governmental health organizations.

Water scarcity.

Public backlash as a result of accusations about groundwater over utilization and high

pesticide levels in soft drink products.

Change in consumer tastes.

Less visibility may change the people thought for consuming the PepsiCo product as such

products comes with impulse purchases.

Lack of distribution channel effectiveness will hamper the sales of PepsiCo products in the

market.

The competition from established brands like Bisleri, Kinley, Royal Challenge, Bagpiper,

Himalaya, Kingfisher and local brands like Bailey, Oxyrich etc. These brands are very stiff

in packaged drinking water segment. They are a big threat to Aquafina as they offer large

margin of profit per bottle to the retailers.

Local drinks (fruit based, milk based etc.) and drinks from Parley Agro (Frooti and

AppyFizz), Dabur (Dabur Real fruit juices) and Amul’s milk based products are also big

threat for fruit based brands like Slice and Tropicana of PepsiCo.

Innovation is the bedrock of things that PepsiCo drives in HR: Innovation is at PepsiCo’s

heart and it is an integral part of its product portfolio. In India region it has beverage

innovations for local tastes like Pepsi Atom, Tropicana coconut blends and snacks like Kurkure

range and Quaker NutriPoha&NutriUpma.

In terms of people practices, while it emphasize on innovations, it also gives equal focus and

importance to adoption of best practices across geographies. For example, its HR core

processes in India has become best practices now. PepsiCo globally gives a lot of emphasis on

manager quality and the institutionalization of Manager Quality Performance Index (MQPI) in

India is a best practice that is now being replicated globally. Similarly its initiative- ‘ICARE’

(Include, Coach, Appreciate, Respect, and Empathize) is now a best practice that has the

potential of being adopted within the PepsiCo global system. The underlying belief is that by

exhibiting ICARE behaviors, a manager will be able to inspire team members to deliver bigger,

better and faster results.

Keeping true to its philosophy of attracting best talents, it has implemented an IT-enabled

world class recruitment management system. This system is a one-stop shop for the entire

candidate management experience, include\\g linkage to job portals and agency portals.

Therefore, innovation lies in most of the things that we drive in HR. Being a global HR team,

it believes in best practice sharing and it has Talent Sustainability Teams where HR employees

across sectors work for various projects.

It has observed trends in learning process of employees and have made huge progress in

creating online training process under the global umbrella of PepsiCo University. It has

functional and leadership cites across the functional domains and can match any international

curriculum.

Leadership at PepsiCo: PepsiCo globally follows a robust leadership and individual

effectiveness model that works as a beacon for all its leadership development interventions in

terms of key competencies and associated behaviors, which are espoused by all its associates

to meet its performance goals. It is designed to reinforce its inclusive and value-based culture

and its focus on excellence and results.

Important pillars and imperatives on which leadership is built upon are individual’s ability to

“Set the agenda”, “Take others along” and “Do things in the right way”. Its holistic approach

towards leadership and career progression is governed by demonstration of results, functional

excellence, leadership capability and knowing the business and gaining relevant critical

experiences. PepsiCo India has over a period of time built a very strong pipeline by giving

people a mix of different critical experiences within PepsiCo India and internationally and

continues to do so.

Accelerated leadership development programs customized for the regions are the medium

practiced by us to develop and groom internal leaders at all levels. These development

programs, known as academies, are created and conceptualized with the help of top

management Institutes and consultants to ensure best in class learning.

With regard to other learning and development opportunities, it is working towards integrating

its learning processes globally and provide employees with high-end development

opportunities in line with the business realities. These programs shall be aimed at honing up

employees skills that will set them up for future success. Focus would be to develop leaders

and employees at large in areas of digital skills, agile thinking and skills to operate in global

environment.

Unique talent market in AMEA: Asia, Middle East & Africa (AMEA), the sector that India

is a part of, is represented by the most diverse set of markets in the world. India is a great

crucible to learn and develop cross cultural thinking since each region is like a different country

with its own language, cultural identity, food and habits. With a median age of 28, the country

offers immense opportunities for young Gen Y graduates. While the need for education has

emerged as one of the key drivers of this growth, there is a huge skill gap that needs to be

bridged for India to fully leverage the power of its unique demographic dividend.

PepsiCo currently leverages several agencies working in line with government policies to

mobilize talent at the grassroots and make them ready. Project Funnel is its program at India

region to proactively bridge the potential talent gap at front line.

Unified face of HR: It is a one PepsiCo HR team for the company. In today’s virtual world,

distances are not that much of a concern. Its BIS (Business Information Service) team has

worked significantly to enable regions and offices integrated through tele presence meeting

rooms, web casts and other virtual medium.

It is constantly in touch with each other transcending boundaries. For example, at AMEA

sector level, it made Talent Sustainability Teams on various important elements of HR

functioning. These teams had representation of HR managers from different countries and they

regularly meet through web-based tools. These teams have been successful in drawing best

practices from different countries and suggest integrated and common processes for the whole

sector. It is quite excited about achievements of these Talent Sustainability Teams, which has

brought people together and a distinct change in the way we operate and bond.

Structure of the HR department at PepsiCo: Its values promote delivery of sustained growth

through empowered people acting with responsibility and building trust and company abide by

this culture. It is not possible for any global organization to work efficiently and effectively

without empowering people at local levels. Structures in the organizations are enablers in

decision making and that’s what we follow and practice.

One of its guiding principles is diversity and inclusion, which rests heavily on collaborative

efforts. Teams take decisions in a very collaborative manner and we ensure enough

communication amongst managers to keep everyone concerned on a common grid.

PepsiCo, as an organization, are at different stages of evolution in different countries or

regions. Hence, structures are based on the need of delivering business results. Nonetheless,

its approach across all the geographical locations is very much global and integrated.

Diversity challenges in the organization: At PepsiCo, it has unique and talented individuals

who represent a variety of cultures and backgrounds. Its diversity is one of its core strengths

and a competitive business advantage. It is committed to foster and value a diverse and

inclusive work environment — one that allows each and every one of its employees to achieve

professional growth and fulfillment in all they do.

Challenges with regard to diversity differs from geography to geography, in certain parts of

the world if there is an issue of mindset in certain other areas you may find concerns around

infrastructure. In its case, its regional teams work closely with the businesses and local forums

to overcome these issues.

As part of this commitment, in India, it now has a cross-functional Diversity & Inclusion (D&I)

Council that has been actively working on creating a more diverse and inclusive work

environment, with a holistic focus on building infrastructure, talent acquisition retention and

more importantly building an inclusive culture to not only increase gender diversity but also a

gender intelligent organization.

SECTION II

ROUTINE WORK

PEPSI IPL 2015

OBJECTIVE OF THE STUDY

Analysis of the sales of Pepsi products during IPL 2015

ABOUT THE EVENT

The Indian Premier League (IPL), currently known as the Pepsi Indian Premier League for

sponsorship reasons is an annual Indian Twenty20 cricket tournament, founded in 2008 by

the BCCI. It consists of a number of teams which are named after Indian cities and owned by

franchises and is held in India, between April and June.

The IPL is the most-watched Twenty20 league in the world and is also known for its commercial

success. In 2010, the IPL became the first sporting event to be broadcast live on YouTube. The

brand value of the 2014 Indian Premier League was estimated to be around US$7.2 billion.

The IPL is currently supervised by BCCI Vice-President RanjibBiswal, who serves as the League's

chairman and Commissioner.Sundar Raman has been the IPL chief operating officer (COO) since

its first season, after he was appointed by the former IPL Commissioner Alit Modi in 2008.

Of the 11 teams to have competed since its inception, five have won the title: Kolkata Knight

Riders (2 times), Chennai Super Kings(2), Rajasthan Royals (1), Deccan Chargers (1),

and Mumbai Indians (1). Chennai Super Kings are the most successful team so far, having won

the title twice and have managed to qualify for the finals in every season except in 2009 and 2014.

ABOUT IPL 2015

IPL 2015 is the 8th season of the IPL series. The eighth season started on 8 April 2015 and will run

until the final on 24 May 2015. There has been a fresh auction of players among teams. This season

had to be adjusted around a week late than every year because of the tight scheduling of teams due

to the 2015 Cricket World Cup.

http://en.wikipedia.org/wiki/Twenty20_cricket

http://en.wikipedia.org/wiki/Board_of_Control_for_Cricket_in_India

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Twenty20

http://en.wikipedia.org/wiki/2014_Indian_Premier_League

http://en.wikipedia.org/wiki/Board_of_Control_for_Cricket_in_India

http://en.wikipedia.org/wiki/Sundar_Raman

http://en.wikipedia.org/wiki/Lalit_Modi

http://en.wikipedia.org/wiki/Kolkata_Knight_Riders

http://en.wikipedia.org/wiki/Kolkata_Knight_Riders

http://en.wikipedia.org/wiki/Chennai_Super_Kings

http://en.wikipedia.org/wiki/Rajasthan_Royals

http://en.wikipedia.org/wiki/Deccan_Chargers

http://en.wikipedia.org/wiki/Mumbai_Indians

http://en.wikipedia.org/wiki/2015_Cricket_World_Cup

The teams in IPL 2015 includes: 1. Chennai Super Kings 2. Rajasthan Royals 3. Sunrises

Hyderabad 4. Mumbai Indians 5.Royal Challengers Bangalore 6. Kolkata Knight Riders 7. Kings

XI Punjab 8. Delhi Daredevils. From 2013 season, the American food and beverage

company PepsiCo took over title sponsorship for five years valued at ₹396.8 million, and also

exclusive beverage supplier for the IPL teams in the 2013 season.

INTRODUCTION

This is a report showing the analysis of the sales of the Pepsi products during all the matches that

happened at the Chinnaswamy Stadium Bangalore during IPL 2015. This will provide a detailed

report regarding the sales of the PepsiCo products within the stadium and also the factors that

affected the sales of the PepsiCo products in both negative and positive manner. This will also

show the comparison between the sales figures of PEPSI IPL 2014 and PEPSI IPL 2015.The

matches at Bangalore started on13th April 2015 and ended n 17th May 2015. 7 matches were played

at Bangalore out of which 2 matches were washed out due to rain and there was very low sales

during those two matches.

FACTORS AFFECTING THE SALES

Sales is always a dependent variable that depends upon a lot of independent variables. These

variables has got a significant and diverse impact on the sales. These factors mainly includes the

customer preferences, quality of the product, quantity of the product, price of the product,

satisfaction level of the consumers, season, efficient and effective distributing, availability of

stock etc., which is general. Here we analyze the sales within the stadium of the PepsiCo products.

The factors that affects the Sales of PepsiCo products in the stadium includes the following:

SEASON

COMPETITORS(CCD,PARLE,BRITANIA)

AVAILABILITY OF STOCK

VISI COOLERS IN THE STADIUM

HAWKERS WITHIN THE STADIUM

http://en.wikipedia.org/wiki/PepsiCo

http://en.wikipedia.org/wiki/Indian_rupee

KIOSKS IN THE STADIUM

COMMUNICATION

These factors have affected the Pepsi sales in a significant manner and as a result the Pepsi sales

has gone down when compared to last year’s IPL sales.

SEASON

March- April is the best selling season for Pepsi since in it is summer and soft drinks demands are

at the peak during this period. With IPL going on during the same period, Pepsi has great

expectations with its sales during this period. But this time out of 7 matches played at Bangalore

2 got washed out due to the heavy rain in Bangalore city. This has reduced Pepsi’s sales down by

about 50% on those rain spoiled days.

COMPETITORS

The competitors’ products didn’t have a good impact over the sales of Pepsi products. The quality,

quantity, price, appearance, attractiveness have a great impact over the sales of Pepsi’s products.

There no one like a competitor inside the stadium. A few of kiosks of other company’s includes

were Britannia, Café coffee day, papa jones etc. But they were no such a big competitor, Pepsi

were getting more sales when compared with them.

AVAILABLITY OF STOCK

Availability of the stock within the stadium is an important factor that would affect the sales. There

should be sufficient quantity of back up stock in the stadium premises to satisfy the customer

demands in case there is unexpected rise in the demands of Pepsi products. There were a few

shortages for Slice Alphonso and Tropicana Cranberry’s. Other than that there were enough

stocking the warehouses. Even though there were enough stocks there was lack of proper

distribution from the warehouses to all the stands and rooms in the stadium. Proper stocks didn’t

reach at the right time and at the right place where it was needed. There was lack coordination

between the people at the warehouse and the people at each stands and rooms.

VISI COOLERS

Each and every kiosk inside the stadium and the stadium premises had one cooler each and

minimum of two coolers placed in the hospitality rooms. Most of the people prefer chilled

beverages rather than having them at normal temperature. So the VISI coolers were very much

essential. The visi coolers were functioning properly and in some stands there were reports that

there were stinky smells coming out of the coolers. As a result of this many people hesitated to

buy them and they became useless.

HAWKERS INSIDE THE STADIUM

The hawkers are the people who carry Pepsi products and sell them in the stands. There were about

160 hawkers from Pepsi inside the stadium. About 70% of the sales are done by the hawkers. They

were good and but lacked sincerity and were indulged into a lot of malpractices. Most of them

were lazy. The sales would have been more if they had done there more work with enthusiasm.

KIOSKS IN THE STADIUM

A kiosk means a small stall that is setup for the purpose of sales. There were about 27 Pepsi kiosks

inside the stadium. There was good sales at each and every counter. The only problem that was

faced at each kiosk was insufficient back up stock. The stocks got over when the demands were at

the peak.

COMMUNICATION

There was lack of proper communication between the people at the kiosks, stands and hospitality

with the people at the warehouse. Even when messages conveyed regarding the stocks, there were

no proper responses from the part of the people at the warehouse.

SALES REPORT

The sales report of each matches are given below, this report intimates the range of sales occurred

during each matches from the kiosks placed inside the stadium. This report helps in identifying the

most selling stands around the stadium at Banglore. The sales were calculated on the basis of the

cups sold during the match days. Each cups were sold at Rs.50 both 450 ml and 300 ml so the

number of cups sold per match multiplied with 50 gives us the revenue during each match. Due to

rain some matches were delayed and cancelled so there were less sales as expected by the

company.

ACCREDITATION

The first phase of work is to complete the accreditation of the vendors and employees for the IPL

matches to be started from this Monday. This was mainly for the security purposes to be ensured

in the stadium. As a part of this we had to feed the details of the PEPSI vendors, promoters, and

hawkers into the Bookmyshow website. There were nearly 200 members enrolled for Pepsi and

around 50 for Lays. My second phase of work as per the checklist is to go the stadium and see that

there are coolers installed, the stock for the matches are arrived, if not arrange them call the

respective PSR's and to make an analysis of the overall stock sold during the match days and ensure

that there is hike in sales.

PEPSI IPL -2015-SALES DATA

MATCH -1

MATCH 2

0

200

400

600

800

1

CUPS SALES

G LOWER 2 A1 A2 A3 A4

B LOWER B UPPER C LOWER C UPPER 1 C UPPER 2

D1 D2 F/D 1 F/D 2 F/D 3

F/D 4 G LOWER 1 G UPPER 1 G2 UPPER 2 M2

M3 M4 P1 P3 1 P3 2

1115

636

0

200

400

600

800

1000

1200

1

CUP SALES

G LOWER 2 A1 A2 A3 A4 B LOWER B UPPER

C LOWER C UPPER 1 C UPPER 2 D1 D2 F/D 1 F/D 2

F/D 3 F/D 4 G LOWER 1 G UPPER 1 G2 UPPER 2 M2 M3

M4 P1 P3 1 P3 2

MATCH 3

MATCH 4

0

200

400

600

800

1000

1200

1400

CUPS

CUPS SALES




M4 P1 P3 1 P3 2

0

200

400

600

800

1000

1

CUP SALES




M4 P1 P3 1 P3 2

MATCH 5

MATCH 6

0

200

400

600

800

1000

1200

CUPS

CUP SALES




M4 P1 P3 1 P3 2

0

200

400

600

800

1000

CUPS

CUP SALES




M4 P1 P3 1 P3 2

MATCH 7

FINAL SALES REPORT

485 483

0

200

400

600

800

1000

1200

1400

1

CUP SALES




M4 P1 P3 1 P3 2

6975

15396

15716

11254

10679

12417

15112

TOTAL SALES

1 2 3 4 5 6 7

12417

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

TOATL SALES

TOTAL SALES

1 2 3 4 5 6 7

MATCH CUP SALES REVENUE TOTAL

13/4/2015 6975 348750 4377450

19/4/2015 15396 769800

22/4/2015 15716 785800

29/4/2015 11254 562700

2/5/2015 10679 533950

6/5/2015 12417 620850

17/5/2015 15112 755600

348750

769800

785800

562700

533950

620850

755600

OVERALL SALES

MATCH 1 MATCH 2 MATCH 3 MATCH 4

MATCH 5 MATCH 6 MATCH 7

FINDINGS AND SUGGESTIONS

Hawkers are the main source of sales so more hawkers more sales.

From the previous sales report we can find the most selling kiosks so if more hawkers are

assigned in those stands the sales can be increased.

Motivation of hawkers should be done like providing them incentives and the most selling

kiosks should be rewarded.

Stocks should be properly available if less stocks less sales.

Seasonal variations is a major factor during the sales, most of the matches were delayed

and cancelled due to rain. This affected the sales this year.

Technicians and loaders should be more responsive and initiative in doing their work.

There should be sufficient number of lids, straws, apron’s and cleaning materials available

to each kiosk’s.

Mountain Dew was the most selling brand during this IPL season mainly because each of

the kiosk were branded with Mountain Dew.

The gloves provided were not efficient and not of good quality so the hawkers refused to

wear the gloves.

Malpractices such as reselling the cups, selling for more price can be avoided by keen and

vigilant supervising.

When the stocks are placed inside the coolers customers demand for those bottles rather

than in cups and there is a big difference in the price variation too.

Safety of the coolers are to be ensured, in some stands the products were looted and that is

a loss for the company.

Ice cubes are not required in some stands so the promoters should ensure ice cubes are

utilized properly.

RECOMMENDATIONS

Assuming the kiosks will be branded with Mountain Dew next IPL

2016, the changes that can be implemented to push the sales are:

1) Implementing combos with tickets such as attracting the customers by free soft drinks in

the stands .(free coupons tickets)

2) The sales can also be increased by including different price range of products.

3) Improving the promotional activities such as more flex boards branded with Mountain Dew

in each stands.

4) Collaborating soft drinks with Lays and sold as a combo.

5) More promotional activities of supporting the home team RCB.

6) Renovating the kiosks positions in the stadium, some kiosks in the food court were not

properly positioned and they were not visible to the customers so they have to be positioned

in such a way that they are visible to the customers.

7) If we can try shifting the position of free drinking water facility near to the kiosks that is

also a feasible provision of increasing the sales.

8) Allocation of more hawkers in the most selling kiosks more hawkers can bring more sales

in the lower stands.

9) Rewarding and shuffling talented hawkers to stands which are not bringing sales.

10) Incentives – major factor in hiking the sales from hawkers, pressure on the supervisors of

each stands, assigning targets to them.

11) Promote a new use of the product and enhance its Price war with competitors.

12) Public Relations and Brand Image

Pricing of Pepsi Lays Combo for PEPSI IPL 2016

Less Margin more turnover strategy

By pricing the combo in the price range of Rs.70 ( Lays Pepsi)

At this pricing the customers gets attracted to the product as well as the price.

Pull strategy. Customer will be attracted to the product of its price.

Word of mouth –Marketing Technique.

Pricing at Rs.75 or Rs.80 won’t attract the customers so we have to follow a PUSH

strategy.

Reduction of hawkers

INCENTIVE SCHEMES for PEPSI IPL 2016

Hawkers are allotted with 500 cups per match but most of them are not able to

sell even this 500 cups. A new incentive scheme should be launched to attract

and motivate the hawkers and thereby increase the sales.

Hawkers are now paid with Rs.400/match even if he sells 100 cups or 500 cups.

In the new incentive scheme : hawkers who sell more than 500cups should be

paid Rs.100 extra so they feel motivated and thus the sales increases because

70% of the sales during the match comes from the hawkers

BIBLIOGRAPHY

1) http://www.pepsiindia.co.in

2) www.pepsico.com

3) http://en.wikipedia.org

4) www.pepsiproductfacts.com

5) www.ipl2015.com

6) www.bookmyshow.com

http://www.pepsiindia.co.in/

http://www.pepsico.com/

http://en.wikipedia.org/

http://www.pepsiproductfacts.com/

http://www.ipl2015.com/

http://www.bookmyshow.com/

Download - aakash report IPL

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