Initial Report on Pepsi(Saurabh Srivastava

8/9/2019 Initial Report on Pepsi(Saurabh Srivastava

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ORIGIN OF A COMPANY :-

It can be said with absolute certainty that the RKJ Group has

carved out a special niche for itself. Its services touch different

aspects of commercial and civilian domains like those of

Bottling, Food Chain and Education. Headed by Mr. R. K.

Jaipuria, the group as on today can laid claim to expertise and

leadership in the fields of education, food and beverages.

The business of the company was started in 1991 with a tie-up with Pepsi Foods

Limited to manufacture and market Pepsi brand of beverages in geographically

pre-defined territories in which brand and technical support was provided by the

Principals viz., Pepsi Foods Limited. The manufacturing facilities were restricted

at Agra Plant only.

Varun Beverages Ltd. is the flagship company of the group.

The group also became the first franchisee for Yum Restaurants

International [formerly PepsiCo Restaurants (India) Private Limited] in India. It

has exclusive franchise rights for Northern & Eastern India. It has total 46 Pizza

Hut Restaurants & 1 KFC Restaurant under its company.

It diversified into education by opening our first school in Gurgaon under

management of Delhi Public School Society. The schools of the group are run

under a Registered Trust namely Champa Devi Jaipuria Charitable Trust.

Companies are medium sized, professionally managed, unlisted and closely held

between Indian Promoters and foreign collaborators.

The group added another feather to its cap when the

prestigious PepsiCo International Bottler of the Year award

was presented to Mr. R. K. Jaipuria for the year 1998 at a


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glittering award ceremony at PepsiCos centennial year

celebrations at Hawaii, USA. The award was presented by Mr.

Donald M. Kendall, founder of PepsiCo Inc. in the presence of

Mr. George Bush, the 41st President of USA, Mr. Roger A. Enrico,

Chairman of the Board & C.E.O., PepsiCo Inc. and Mr. Craig

Weatherup, President of Pepsi Cola Company.

Vision

Being the best in everything we touch and handle.

Mission

Continuously excel to achieve

and maintain leadership position

in the chosen businesses; and

delight all stakeholders by

making economic values in all corporate functions.


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Their Success

Production of innovative, high quality

retail branded beverages combined with

world-class packaging.

Driven by a management

team with a relentless focus on achieving superior

customer service, driving earnings improvement and

increasing shareholder value.

Their People

At RKJ Group they are creating an

environment where our employees enjoy a

greater degree of empowerment both

individually and in their work teams.

Their employees are equipped with the

necessary tools, training and management

backup for strong performance and

accountability, as well as in an environment of

open communication and involvement.


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Different Product of PepsiCo

Pepsi

Diet Pepsi

Pepsi Aha

Slice

Mirinda7-Up

Aquafina MineralWater

TYPES OF PRODUCTS:

Non-alcoholic soft drink beverage market can be divided into fruit drinks and softdrinks. Soft drinks can be further divided into carbonated and non-carbonateddrinks. Cola, lemon and oranges are carbonated drinks while mango drinks comeunder non-carbonated category. The soft drinks market till early 1990s was inhands of domestic players like campa, thumps up, Limca etc but with opening upof economy and coming of MNC players Pepsi and Coke the market has cometotally under their control. While worldwide Coke is the leader in carbonateddrinks market in India it is Pepsi which scores over Coke but this difference is fastdecreasing (courtesy huge ad-spending by both the players). Pepsi entered Indian


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market in 1991 coke re-entered (After they were thrown out in 1977, by the thencentral government) in 1993.

Carbonated soft drinks major Pepsi India is now putting together a cocktail totake a bigger slice of the fruit juice market. Close on the heels of the launch of its

global lemon drink Twist in an Indian avatar as Pepsi Aha, Pepsi, once again, is allset to roll out another global productin a localized version. Come June 2002, andPepsi will roll out the blends of its international fruit drink Twister in the country,albeit, with a difference. In India, Twister blends will be launched as mixed fruitcocktails under Pepsis existing juice brand Slice. Pepsi spokesperson, whencontacted, confirmed the launch but said the products will be launched on anexperimental basis for three to four months beginning June 2002. However,confirmed sources said that the product has been test-launched and is ready for aformal launch in June. Globally, the proposed Slice fruit blends exist under Twister

brand and are available in over 10 flavors and in various packaging options.

However, in India, while the blends will be decided as per local tastes and as perthe availability of fruit pulp, packaging will be restricted to cartons only. Amongthe four to five flavors planned, strawberry-peach and kiwi-guava are some ofthem. However, the new product could be priced a little higher than Slice sinceTwisteroriginallyis believed to have more than 15 per cent juice content.Slice, on the other hand, is a 15 per cent juice drink positioned at the mass-end;against the 100 per cent fruit juice Tropicana, which is at the top-end. Pepsisdecision to launch Twister flavors as Slice variants rather than the original branditself follows the companys decision to make Slice the mother juice brand in

India.

The company had at one time contemplated bringing Twister in its original self toIndia but the plan was later shelved. Internally we have been debating whether togo ahead with Twister or keep Slice as a mother brand for juices, the Pepsispokesperson said. The move, point out industry observers, is clearly aimed atsaving costs of launching an altogether new brand and instead cash in on the

potential of a existing juice brand. A Rs 200-crore brand, Slice was originallylaunched as a mango drink in returnable glass bottles. Last year, in fact, Pepsilaunched a new advertising campaign to rejuvenate the brands mango positioning.

And early this year, it was launched in cartons and more recentlythree newflavorsorange, leechi and guavawere added to the brand.

Burdened by high cost of production of returnable glass bottles, Pepsi India hasdecided to look at the most sought after packaging alternativeflexible packaging

more seriously. The company through one of its prime bottler Mr. Ravi Jaipuriaof Varun Beverages Ltd is now setting up a new carton line (tetrapack) at its


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existing bottling plant at Noida in Uttar Pradesh.

The plant with a capacity of 5,000 to 7,000 cases per day will be used to packPepsis juice drink Slice and its new variants in 200-ml cartons. The product iscurrently being packaged at Varun Beverages at Boranada Road Jodhpur.The

Noida slim line carton plantwhich is expected to take off shortlywill cater tothe north market and will help the company cut huge transportation costs.

COMPANY PROFILE :-

Since the entry of Pepsi co. to India in 1987, the soft drink Industry has undergone

a radical change. When Pepsi entered parley was the leader with Thumps UP

being its flagship brand. Other product offerings by parley included Limca & Gold

Spot. Another upcoming player in the market was the erstwhile bottle of Coca-

Cola, Pure Drinks. Its offerings included Campa Cola, Camps Lemon and Campa

Orange.

With the re-entry of Coca-Cola in the Indian market, Pepsi had to go in for

more aggressive marketing to sustain its market share. The chronology the initial

phase of the Coal Wars in India was

July 1986


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An application for soft drinks-cum-snack food joint venture

by Pepsi, Voltas and Punjab Agro is submitted to the government

after an earlier proposed alliance- 1985, between Pepsi and

Duncans of the Goenkas fails to take off.

Sept.1988

Final approval for the Pepsi Foods Limited (P.F.L) project

granted by the Cabinet Committee on Economic Affairs of the

Rajeev Gandhi Government.

March 1990

Pepsi Cola and Seven up Launched in limited market in North India.

May 1990

The government clears the Pepsi project again but with a change in brand

name to Lehar Pepsi. Simultaneously it rejects the Coca-Cola application. Citra

form the Parle stable hits the market.

Dec 1991

Pepsi extends its soft drinks reach on national scale. Products launched

Delhi and Bombay.

Jan 1992

Brito Foods application cleared by the FTPB. Pepsi and Parle

start initial negotiations for strategic alliance but talks break off

after a while.

1993


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Pepsi launches Teem and Slice. Captures about 25.30% of

the soft drinks market in about two years.

July 1993

Voltas pulls out of PFL joint venture. Pepsi decides to raise equity to 92%

Reports of coke Parle negotiations gain strength.

1994

Pepsi brought Dukes& Sons

1995

Pepsi launched Cans having capacity of 330 ml in various

flavors.

1997

Pepsi brought Mirinda Orange opposite to Fanta.

1998

Pepsi launched Lemon Mirinda to give taught competition to

Limca.

1999

Pepsi has launched its Diet Pepsi Can and 1.5 Liters pet

battles for health conscious people.

1997

Refusing to dilute its equity state Coca-Coal winds up operations in the

country. Parle launches Thumps Up and Drinks launches Campa Cola.


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2001

Pepsi launched Aquafina.

2003

Pepsi launched Mountain Dew

2005

Mirinda lemon zinger, 7UP.Ice was launched by Pepsi.

2006

Bubbly Pepsi was launched.

2007

Pepsi Gold was launched.

Company vision

To become truly global company, by continuing to build a

competitive and profitable worldwide refreshment beverage

business.

OBJECTIVES OF VARUN BEVERAGES:-

To observe the implementation and working of sales club

programme at different sections in Noida.


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To monitor whether it is successfully implemented in the

market.

To monitor the customer awareness about the sales club

programme whether they are fully aware about the

programme or not.

To check out that all the required materials for sales club

programmed are given to customer/ retailer or not.

To find out the effect on increasing the sales b/z of sales club

programmed at partial shop.

To monitor the purity of vis-cooler at sales club account.To monitor the purity of sack at sales club account.

To monitor whether updates in the programmed book is clan

in time or not.

To make the books available to the customers.

PRODUCT PORTFOLIO :-

Refreshment beverages


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Sports drinks

100% natural fruit juices and juice based drinks

Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options Diet Pepsi and 7Up

Light; hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports

drinks - Gatorade, and 100% natural fruit juices and juice based drinks Tropicana, Tropicana

Twister and Slice. Our local brands Lehar Evervess Soda, Dukes Lemonade and Mangola

complete our diverse spectrum of brand

PepsiCos snack food company


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PepsiCos snack food company, Frito-Lay, is the leader in the branded potato chip market andwas amongst the first companies to eliminate the use of trans fats and MSG in its products. Itmanufactures Lays Potato Chips; Cheetos extruded snacks, Uncle Chipps and traditionalnamkeen snacks under the Kurkure and Lehar brands. The companys high fiber breakfast cereal,Quaker Oats, along with Lehar Lites, low fat and roasted snack options enhance the choicesavailable to the growing health and wellness needs of our consumers. Frito Lays core products,Lays, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reducesaturated fats and all of its products contain voluntary nutritional labeling on their packets.

PRODUCT BOTTLEFILLING

PEPSI 300ml, 200ml

MIRINDA ORANGE 300ml, 200ml

MIRINDA LEMON 300ml, 200ml

SLICE 250ml

7-UP 300ml, 200ml

EVERVESS SODA 300ml


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MOUNTAIN DEW 300ml, 200ml

Plant is producing 10 million cases every year.

Plant has employed about 200 employees with separate companyuniform on permanent and causal basis. There are 40 managers/

officers/ supervisors and rest of workmen. Plant is dispatching

near about 125-150 tracks in peak seasons per day to various

location. This Plant spreads over 75 acres.

DISTRIBUTION NET WORK:-

SALES FO RCE:- There is a dedicated sales force at every C&F

and Distributor point. Every Salesman is assigned a specific

route that he has to cover every day. The Salesman has to take


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care of all the Shops on the designated route and address and

inform (to the Sr. CE / CE) about any issue any retailer has on

the route. The Salesmen are also assigned the task of providing

all the information to the retailers regarding the daily schemes

and the details of all the promotion schemes launched from time

to time. These include informing the retailer about the

promotional scheme, registration for the scheme, terms and

conditions of the scheme etc. The Salesman is also assigned the

task of registering maximum possible outlets on his assigned

route.

Pricing Strategies :-

List Price: The Price of each product is fixed and there is no

discrepancy. Salesmen are not authorized to make any change,

alteration or give discounts unless authorized by the Company.

Discounts: Discounts are provided to Wholesalers and Slums

but there is no discount for retailers. The discounts are

negotiated directly with the Company and the C&F or the

Distributor point is not involved in the price negotiation.


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Allowances: Allowances are given to salesmen on achieving

their daily targets. This target is given to every Salesman

everyday before he goes on his designated route. The Depot In

charge (Sr. C E / C E) gives the target to every salesman in

consultation with the TDM.

Payment period and Credit terms:No credit is provided. The

payment procedure is not flexible as the retailers are required to

make on the spot payments. At times, they defer the paymentand in that case, the Salesman either shows a shortage or pays

the rest of the amount by himself. The wholesalers are also

required to make in advance but at times they also defer the

payment and make the payment at a later date.

Products Price List

Aquafina(1ltr) 14/-

Pepsi(300ml,600ml,

2ltr

12/-,25/-,55/-


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Dew(300ml,600ml,2ltr) 12/-,25/-,55/-

Mirinda(300ml,600ml,2ltr) 12/-,25/-,55/-

Slice(250ml,500ml,1ltr) 13/-,26/-,50/-Cans(pepsi,dew,slice,mirinda

)

30/-

Promotion Strategies :-

Sales Promotion: This is the most frequently used form of

promotion which is used to increase the sale of the selectedproduct. These promotions are used from time to time depending

upon the sale of the products. If the sale of any particular

product declines or shows a declining trend then a suitable Sales

Promotion Campaign is launched to increase the sale of that

product.

Advertising: Advertising is done by PepsiCo. COBO

(Company owned Bottling Operations) and FOBO (Franchisee

owned Bottling Operations) have no say in the advertising

campaigns and their planning. The advertising account of Pepsi

is handled by JWT (J Walter Thomson) in association with theCorporate office of PepsiCo India.

Sales Force: There is a dedicated sales force at every C&F and

Distributor point. Every Salesman is assigned a specific route


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that he has to cover every day. The Salesman has to take care of

all the Shops on the designated route and address and inform (to

the Sr. CE / CE) about any issue any retailer has on the route.

The Salesmen are also assigned the task of providing all the

information to the retailers regarding the daily schemes and the

details of all the promotion schemes launched from time to time.

These include informing the retailer about the promotional

scheme, registration for the scheme, terms and conditions of the

scheme etc. The Salesman is also assigned the task of registering

maximum possible outlets on his assigned route.

Market share :-

Competition:-


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Market structure:-


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RETAILERCUSTOMERCUSTOMER

Initially the focus of the Company remains on reaching all the markets and then the Company

shifts its focus on increasing the frequency of sales in the respective markets so that the sales and

profitability of the Company can be increased.

COMPANYCOBOFOBOWAREHOUS

E

C & FDISTRIBUTO

R

WHOLESALE

R

SLUMSRETAILERSALESME

N

SALESME

N


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Company (PepsiCo): PepsiCo India provides the salt to all the bottling plants in the Country that

carry out the bottling operations.z

COBO: These are Company owned bottling operations operating directly under the Company.

Out of 32 bottling plants, PepsiCo owns 15.

FOBO: These are Franchise owned bottling operations. R K Jaipuria group does all the

franchisee-bottling operations for PepsiCo India; currently R K J Group has 17 bottling plants for

Pepsi.

Warehouses: These are Company or franchisee owned warehouses spread over various

locations that cover the respective territories and come under the purview of their respective

Area or Territory Offices. Stocks are sent from the bottling plants to these warehouses, from

where they are sent to the C & F centers and Distributor Points.

C & F Centers: These are the biggest centers in the distribution network and receive proper

assistance from the Company (either COBO or FOBO). The C & F center is owned by a private

player and not by the Company. The vehicles (Delivery Vans) are owned by the Company, and

the Salesmen at the C & F points are on the Company Payroll.

Distributors: These are small, compared to C & F centers. Everything at the Distributor point

owned and managed by the distributor, even the salespersons are on the Distributors payroll.

Wholesalers: These are smaller than C & F centers and Distributor points and get the stock

directly from the Company or Franchisee. They get their stock directly from the Company and

thus get special rates and extra discounts from the Company.

Slums: They are generally smaller than the Wholesalers are. However, they get special

discounts from the C & F centers and Distributor points.

All the different players in the distribution channel namely C & F centers, Distributor points,

Wholesalers and Slums have different designated markets and are not supposed to operate in the

market designated to any other player.

Retailer: Retailers are the most important chain in the distribution channel of Pepsi as they are

the only point of contact with the customers. Retailers get their stock from all the other channel

members in the distribution channel.

ORGANISATIONAL STRUCTURE:-


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ABOUT THE CUSTOMERS:-

As my company guide given me the topic of promotional merchandising I had covered several

shops and I understand this concept equally well by covering almost 20 shops in 15 days. These

are as follows:

Retail shops

Food Marts

Shopping Malls

Bakery Shops

Food Court

SEGMENTATION:-


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GEOGRAPHIC:-

REGION (URBAN AND RURAL AREAS) [INDIA]

CLIMATE (HOT AND DRY)

TARGET AREA Domestic users, Restaurants, Bars, School and College canteens.

DEMOGRAPHIC:-

Age 14 to 30

Gender Male and Female

Family size no bar

Family lifecycle unmarried, married ,Income 5000+

Psychographic:-

Social class Middle Class and Upper Class

Pepsi attempts to capture the youth of today by focusing on their personality, lifestyle and

attitude of youth through advertisement

Behavioral:-

Occasions Parties, Birthdays, Sports and regular occasions

Benefits Quality and taste

Loyalty status Strong

Readiness stage Aware, Interested

PRODUCT POSITIONING :-


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Pepsi prefers to position itself as the beverage choice of the New

Generation, Generation Next, or just as the Pepsi Generation.

These terms adopted in Pepsis advertising campaigns are referring to the

markets that marketers refer to as Generation X. The Generation X consumer is

profiled to be between the ages of 18 to 29. They have high expectations in life and

are very mobile and

active. They adopt a lifestyle of living for today and not worrying about long-term

goals. Though Pepsis main emphasis ison this segment but they also have a focus

on the 12 to 18 year old market.

The rich deep blue coloring represents eternal youthfulness and openness.

Marketing plans like Yeh Dil Maange More, Got Another Pepsi, Ye Pyass

Hai Badi have made Pepsi one of the coolest brands recognized among teens in

the top five and the only beverage product in this category.

BUYING PATTERN OF CONSU MERS:-


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This statistics and charts are totally depend on the market survey to find the

consumer behavior and their buying pattern. This questionnaire is as follows:-

MARKET RESEARCH

QUESTIONARES

PERSONAL DETAILS :-

NAME:- __________________________

1. AGE

A) 17-20B) 21-24

C) 25-28

D) 29 and Above

1. GENDER

(A)Male

(B)Female

1. EDUCATION

(A)High school

(B)Under graduate

(C)Graduate

(D)Post Graduate

(E) Others


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MARKET SURVEY :-

1. Which brand of soft drinks do you mostly prefer?

(A)Coca Cola

(B)Pepsi co

(C)Parle

1. Whom so you buy soft drinks for? (Tick one)

(A)Family

(B)Children(C) Institutional purposes/ Social occasions

1. How often do you have a softdrink?

(A)1-3 times a week

(B)4-6 times a week

(C)More than 6 times a week

(D)Rarely

1. What quantity do you usually prefer to buy?

(A)200-250ml

(B)300ml

(C)500ml bottle

(D)1-2ltr

1. Through which medium did you come to know about your preferred soft

drink brand?

(A)Hoardings & Banners(B) Newspapers & Magazines

(C)T.V./ Radio

(D)Word of mouth

(E) Others


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1. Which is the most preferred channel for purchasing a soft drinks?

(A) Retail/ Grocery Store

(B) Supermarket/ Hypermarket

(C)Cineplex

(D)Pan Shops

(E) Restaurants(F) Others

1. Do the following reasons influence your consumption of soft drinks?

FACTORS VERY LESS

IMPORTANT

LESS

IMPORTANT

NO

INFLUENCE

IMPORTANT VERY

IMPORTANT

FLAVOUR

NO OF FLAVOURS

AVALIABILITY &

CONVINIENCE

PRICE

CLEANLINESS OF

BOTTLES/ NOT

DAMAGEDMANUFACTORING

DATE/

EXPIRY DATEFREQUENCY OF

ADVERTISEMENT

BRAND

AMBASSADORBRAND VALUE/

BRAND NAMECALORIE CONTENT

PROMOTION

SCHEMES/

DISCOUNTS


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VISUAL APPEAL OF

PACKAGING

INGRIDIENTS

2. Which is the most important characteristic for choosing the channel?

(A)Pricing

(B)Ambience

(C)Location/Nearness

(D)Service

(E) Display/Merchandising

(F) Reputation

(G)Occasion

(H)Others

1. Are you satisfied with the price of your soft drinks?

(A)Yes

(B) No

SWOT ANALYSIS :-

STRENGTH:

1) Good market penetration.

2) Motivated channel partner.

3) Well defined routes.

WEAKNESS:

1) All flavour were not available in at least 80% shops.

2) Complaint handling was not up to mark.


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3) Supply in certain area is very irregular and also route agents are not covering

full routes.

4) Poor signage and display is making the routes week for the sale of Pepsi.

5) Interpersonal relationship with the company officials and the route agent is

not satisfactory.

OPPORTUNITY:

It is observed that in some newly establishing areas many new outlets are

opening , Pepsi needs to concentrate on these new outlets and can gradually

increase its sale in these area.

Large number of mix outlets can be changed to Pepsi exclusive and coke

exclusive to mix only by luring them good and efficient supply, glow sign and

cooling equipments.

THREATS:-


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NGOs NGOs like CSE can seriously hamper the sales and prospects of companies

operating in this industry. This happened during the pesticide controversy involving

both coke and Pepsi.

HEALTH Growing health awareness among people and some of ill effects of

carbonated beverages have pursued many people to switch over to non-carbonated

beverages that can seriously hamper the long-term prospects of the entire Industry

and not Pepsi.

ENVIRONMENT Environmental concerns are often raised because of the massive

amount of water extracted by the bottling plants resulting in the drop in

groundwater level which affects the local population adversely.

RECOMMENDATION:-

This is one of the most important and most difficult part of the study. I arrived at

certain recommendations for PepsiCo India(Trans-Yamuna and Agra markets) after

the analysis of the data. Some of the important recommendations are as follows

There should be and correct feedback from the retailers on the performance

of salesmen. This will help improve their efficiency and accountability.

Moreover, this will also help in reducing the confusing that the retailers have

at times because the salesmen does not explain the schemes properly.

As already mentioned Vizicoolers are a major reason of dissatisfaction among

retailers. The periodical maintenance check of Vizicoolers is done at threemonths. This should be done at an interval of 45 days or 60 days instead of

the current practice of 90 days


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A complete survey of the every territory should be done for standys, banners

logo racks etc. and then a proper budget and plan should be made for their

availability at the required places, instead of doing it in bits and pieces as the

current practice is this will help with promotion at every retailer level

There should be incentives for salesmen for every display they enroll because

they are assigned this task and if they get incentives for the same then it will

greatly increase the efficiency of the promotional activities.

Pepsi should also introduce a version of Diet Pepsi Cola as a sports drink

range this is a completely new and untapped market which will help in

providing the impetus for Diet Pepsi

Pepsi should start more aggressive marketing of its Diet Pepsi range of

products as they have very good growth and future prospects while there is

not much growth in the carbonated beverages sector.

WHO AND WHO`S

DEPARTMENTAL HEAD OF THE COMPANY- MR Deepak Bhalla

CEO OF THE COMPANY- MR Ravi Kant Jaipuria


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Initial Report on Pepsi(Saurabh Srivastava

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