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SUMMER TRAINING REPORT

ON

A COMPARATIVE ANALYSIS OF SALES AND DISTRIBUTION OFPEPSI AND COKE IN PATNA DEEPOT 2 AREAUNDER

LUMBINI BEVERAGES PVT.LTD.HAJIPUR, PATNA

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENTFOR THE AWARD OF THE DEGREE OF

MASTER IN BUSINESS ADMINISTRATION

(Session 2009-2011)PATNA UNIVERSITY, PATNA

2011

Under the Supervision and Guidance of Submitted by

Prof. (DR.) B. N. PANDEYMANOHAR KUMARHead & Director Management Programme Roll- 15Deptt.Of A.E. & Commerce, PU MBA (2009-11)


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CERTIFICATE OF THE SUPERVISOR

This is to certify that Mr. MANOHAR KUMAR, Class Roll No. 15,Session:2009-11, has prepared the summer training report entitled ACOMPARATIVE ANALYSIS OF SALES AND DISTRIBUTION OF PEPSI AND COKE IN PATNA DEEPOT 2AREA under my general supervision in the partialfulfillment of therequirement of the MBA course of the PATNA UNIVERSITY..

Signature of the Supervisor

Prof. (DR.) B. N. PANDEY

Head & Director

Management ProgrammeDeptt.of A.E. & Commerce, P.U.


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ACKNOWLEDGMENT

This humble endeavor bears the imprint of many persons who were inone way or the other helpful in the completion of our report. We would liketo take this opportunity to present our vote of thanks to our guide who acted

as lighting pillar to enlighten our way through out this study. This studywould not have been possible without the kind assistance and guidance ofmany people who indeed were helpful, cooperative and kind during theentire course of our project.

We have tried our best to study A COMPARATIVE ANALYSIS OF SALES ANDDISTRIBUTION OF PEPSI AND COKE IN PATNA DEEPOT 2 AREA.

First and foremost, I express deep sense of gratitude to my honourableprofessor Dr. B.N.Pandey, Director, Mgt.programme, Deptt. of A.E. &Commerce, P.U., who assigned me the task of completing this summertraining report.

In this research we are highly grateful to our honourable supervisorDr. B.N.PandeyDirector, Mgt.programme, and other faculties of ourdepartment for his support and encouragement throughout the project.Besides this we are also thankful to all the respondents, who havecooperated with us in answering our queries and filling the questionnaire.

This project has been a great source of learning and experience.

Submitted ByMANOHAR KUMARMBA (2009-11), ROLL-15PATNA UNIVERSITY

PREFACE

Training as we know is essential to supplement to theoretical knowledgewith the practical knowledge and to inculcate efficiency. It was observed


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that due to lack of practical knowledge most of the managers are ineffectivein their job. Due to this reason Summer Training of eight weeks hasbeenmade an integral part of the syllabus of MBA by Patna University.

Summer training report is considered a major component of the training.Summer training remains incomplete till the report has been presentedand/or written. The purpose of summer training is not well served unless thefindings and experiences gained are made known to others. Writing of reportis the last step in the Summer Training Programme.

Thus, the purpose of training and subsequent of report writing is meantboth as a mean of gaining first hand experience in the organization and alsoan academic exercise. In the above mentioned context, an attempt has beenmade for getting this practical training.

The training is done under LUMBINI BEVERAGES PVT.LTD.Hajipur, Patna. The Summer Training Report, which is prepared after eightweeks of training period, is here for the partial fulfillment for the award ofthe degree of MBA (Marketing).

The topic A COMPARATIVE ANALYSIS OF SALES AND

DISTRIBUTION OF PEPSI AND COKE IN PATNA DEEPOT 2AREA, has been selected to understand the market share of both thecompanies in soft drinks market and to understand the effectiveness of thesales and distribution strategy of both the companies in the depot 2 area,i.e.,Boring Canal Road Area. Through this study an attempt has been made tounderstand the strategies regarding sales, promotion, customer satisfaction,placing of these two companies.

I would like to express my sincere gratitude to all those persons whodirectly or indirectly helped me in the preparation of the summer trainingreport.

MANOHAR KUMAR

CONTENT

Letter of the Department (i)Certificate of the Organization (ii)Certificate of the Supervisor (iii)

Acknowledgement (iv)Preface (v)


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PARTICULARS PAGE Nos.Chapter I: Introduction

Introduction of the StudyImportance of the StudyObjectives of the StudyScope of the StudyResearch MethodologyHypothesis of the StudyLimitation of the Study

Chapter II:Introduction to Soft Drink Industry

The FMCG Industry in India

Beverage Industry in India-A Brief InsightMajor Players of Soft Drink IndustryPepsi Company profile

Chapter III: Organizational Profile

Introduction of LBPLAbout the PEPSI Brands

About competitors Brand

Chapter IV: Data Analysis and InterpretationInterpretation of Outlets.

Market Share of Different Outlets.

Market Share of Cooling

Percentage Share of GSB of Different Soft Drinks.

Percentage Share of Satisfaction.from Distribution


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Chapter V:Conclusion and SuggestionsConclusion

Suggestions

Annexure:

BibliographyQuestionnaire

CHAPTER-I

INTRODUCTION

Good marketing is no accident, but a result of careful planning and execution.

Marketing practices are continually being refined and reformed in virtually all

industries to increase the chances of success. Marketing excellence is rare and

difficult to achieve. Marketing is both art and science there is constant

tension between the formulated side of marketing and the creative side.


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The world economy has undergone a radical transformation in the last two

decades Geographical and cultural distance have shrunk significantly with the

improvements in the production, transportation and communication. These

advances have permitted companies to widen substantially both these markets

and their supplier sources. And thus the role of marketing becomes wide.

Marketing is the specialization subject of MBA curriculum. When a flood of

consumer products are coming into the market, every company needs people

specialized in marketing to promote their product.

Marketing deals with identifying and meeting human and social needs.

One of the shortest definitions of marketing is meetings needs profitably.

The 21st century is the era of Advertising, Marketing and Sales Production;

Marketing is to convert social needs into profitable opportunities. As it is said

Marketing thinkingstarts with the human needs and wants. Apart from

basic necessities of air, water, shelter and clothing, every person has strong

desire for recreation and entertainment. They have strong preference for

particular brand of basic and services. Marketing serves as the link between the

societys needs and its pattern of Industrial response.

Beverage industry is one of the fast growing industries in India. It can be dividedinto two sections i.e., carbonated and Non-carbonated. The carbonated drinks thatcan be further classified into Cola, Lemon Orange, Mango and Apple segments.When I was told to select the topic I was a bit nervous because I was new inthe marketing field, but after a minute I suggest our group leader to selectthis topic for study. This topic is an important activity of any businessorganization. This topic was very helpful to collect information aboutcurrent happening in the market. It also helps to make improvements inservice and quality of the product, for their long time existence in the marketand getting profit.

Simultaneously, it is also helpful for me to learn the consumerbehavior and retailers behavior and observe their attitude towards demandof particular products practica


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OBJECTIVES OF THE STUDY

1. To know the stock position of Pepsi and its competitors.

2. To study the marketing and promotional activities at various retailoutlets.

3.To know the per day sale of PEPSI brand and its competitors in crates.

4. To study the percentage share of Pepsis cooling equipments.

5.To know how many outlets are covered with glow signboard of PEPSI.

6.To know the satisfaction level of retailers regarding distributionstrategy of PEPSI.

.

scope of the study may be as follows:-

The main scope of this research is ascertaining the various methods to increase the salesvolume and distribution activity of the concern. The methods include regular measure tomake the brand position in the market and taking measures to confirm the brand inposition. One of the most important aspects of this study is also to increase the marketsegment and share of the products.

1. To Target market segment.2. To evaluate awareness about Pepsi Company.3. To Compare of Pepsi products to competitors.4. To Identify of market potential.5. To evaluate customers need with company product.6. To Collect suggestions for product improvements etc.

Methodology

All the findings and conclusion obtained are based on the survey done in theworking area. Within the time limit, an attempt has been made to select thesample representative of the whole group. During my job training Imaintained different routes during my dealer survey. I had to collected data


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from the distributers of Patna under Lumbini Beverages Pvt. Ltd., Patna andthe organization itself.

Data Source:-

Retailers and Dealers (Cold Drinks stalls, Ice Stalls, Hotels, Restaurants, Sweet Shops,Pan Shops, General Stores, Telephone Booths etc), Distributor internal Companys

records, websites of the companies etc.

Data Type:-The Secondary data will be collected. The primary data may also be used.

Research Approaches:-Observation Method, Analytical Research and Survey Method

Sampling Procedure:-

Simple Random Sampling and Census Sampling

Primary data collection:-

All the dealers/retailers would be personally visited and interviewed. There would be aformat for collecting the details of the dealers. The format will be filled by taking theinformation from the dealer or by monitoring the shops.

Secondary data collection:-

The secondary data would be collected on the basis of organizational files, officialbulletins and records, official journals, published data in the annual general report andthrough various preserved information in the data base at the Pepsi sites e.g.,www.pepsico.com,www.pepsizone.com,www.cocacolaindia.com, etc.

Hypothesis of the Study

Null Hypothesis (Ho):-

Pepsi is the market leader in the sales of soft drink industry.

Alternate Hypothesis (H1):-

Pepsi is not the market leader in the sales of soft drink industry.
http://www.pepsico.com/http://www.pepsico.com/http://www.pepsizone.com/http://www.pepsizone.com/http://www.pepsizone.com/http://www.cocacolaindia.com/http://www.cocacolaindia.com/http://www.cocacolaindia.com/http://www.cocacolaindia.com/http://www.pepsizone.com/http://www.pepsico.com/


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Limitations of the Study

1.It will not be possible to understand thoroughly about the

different marketing aspects of liquor industry in a span of

two months.

2.All the work shall be limited in Patna area, so, the findings

should not be generalized. The findings of survey will be strictly

based on the response of consumers, retailers, since it is difficult

to ascertain the authenticity of their statement.

3.Many of the time the respondents were not ready to co-

operate.

4.Some of the time the exact figure of brands will notbe revealed

by the respondents.


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CHAPTER-II

Introduction to the Soft Drink Industry

A BRIEF INSIGHT:- THE FMCG INDUSTRY IN INDIA

Fast Moving Consumer Goods (FMCG), also known as Consumer

Packaged Goods (CPG) are products that have a quick turnover and

relatively low cost. Consumers generally put less thought into the

purchase of FMCG than they do for other products.

The Indian FMCG industry witnessed significant changes through the

1990s. Many players had been facing severe problems on account of

increased competition from small and regional players and from slow

growth across its various product categories. As a result, most of the

companies were forced to revamp their product, marketing,distribution and customer service strategies to strengthen their

position in the market.

By the turn of the 20th century, the face of the Indian FMCG industry

had changed significantly. With the liberalization and growth of the

Indian economy, the Indian customer witnessed an increasing

exposure to new domestic and foreign products through different

media, such as television and the Internet. Apart from this, social

changes such as increase in the number of nuclear families and the

growing number of working couples resulting in increased spending

power also contributed to the increase in the Indian consumers'


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personal consumption. The realization of the customer's growing

awareness and the need to meet changing requirements and

preferences on account of changing lifestyles required the FMCG

producing companies to formulate customer-centric strategies. These

changes had a positive impact, leading to the rapid growth in the

FMCG industry. Increased availability of retail space, rapid

urbanization, and qualified manpower also boosted the growth of the

organized retailing sector.

HLL led the way in revolutionizing the product, market, distribution

and service formats of the FMCG industry by focusing on rural

markets, direct distribution, creating new product, distribution andservice formats. The FMCG sector also received a boost by

government led initiatives in the 2003 budget such as the setting up

of excise free zones in various parts of the country that witnessed

firms moving away from outsourcing to manufacturing by investing in

the zones.

Though the absolute profit made on FMCG products is relatively

small, they generally sell in large numbers and so the cumulative

profit on such products can be large. Unlike some industries, such as

automobiles, computers, and airlines, FMCG does not suffer from

mass layoffs every time the economy starts to dip. A person may put

off buying a car but he will not put off having his dinner.

Unlike other economy sectors, FMCG share float in a steady manner

irrespective of global market dip, because they generally satisfy

rather fundamental, as opposed to luxurious needs.


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The FMCG sector, which is growing at the rate of 9% is the fourth

largest sector in the Indian Economy and is worth Rs.93000 crores.

The main contributor, making up 32% of the sector, is the South

Indian region. It is predicted that in the year 2010, the FMCG sector

will be worth Rs.143000 crores. The sector being one of the biggest

sectors of the Indian Economy provides up to 4 million jobs. (Source:

HCCBPL, Monthly Circular, March)

The FMCG sector consists of the following categories:

Personal Care- Oral care, Hair care, Wash (Soaps), Cosmetics

and Toiletries, Deodorants and Perfumes, Paper products

(Tissues, Diapers, Sanitary products) and Shoe care; the majorplayers being; Hindustan Lever Limited, Godrej Soaps, Colgate,

Marico, Dabur and Procter & Gamble.

Household Care- Fabric wash (Laundry soaps and synthetic

detergents), Household cleaners (Dish/Utensil/Floor/Toilet

cleaners), Air fresheners, Insecticides and Mosquito repellants,Metal polish and Furniture polish; the major players being;

Hindustan Lever Limited, Nirma and Ricket Colman.

Branded and Packaged foods and beverages- Health

beverages, Soft drinks, Staples/Cereals, Bakery products

(Biscuits, Breads, Cakes), Snack foods, Chocolates, Ice-creams,Tea, Coffee, Processed fruits, Processed vegetables, Processed

meat, Branded flour, Bottled water, Branded rice, Branded

sugar, Juices; the major players being; Hindustan Lever

Limited, Nestle, Coca-Cola, Cadbury, Pepsi and Dabur.


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Spirits and Tobacco:- the major players being; ITC, Godfrey,

Philips and UB.

BEVERAGE INDUSTRY IN INDIA:- A BRIEF

INSIGHT


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In India, beverages form an important part of the lives of people. It

is an industry, in which the players constantly innovate, in order to

come up with better products to gain more consumers and satisfy the

existing consumers.

FIGURE 1: BEVERAGE INDUSTRY IN INDIA

The beverage industry is vast and there various ways of segmenting

it, so as to cater the right product to the right person. The different

ways of segmenting it are as follows:

Alcoholic, non-alcoholic and sports beverages. Natural and Synthetic beverages.

In-home consumption and out of home on premises

consumption.

BEVERAGES

Alcoholic Non-Alcoholic

Carbonated Non-Carbonated

Cola Non-Cola Non-Cola


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Age wise segmentation i.e. beverages for kids, for adults and

for senior citizens.

Segmentation based on the amount of consumption i.e. high

levels of consumption and low levels of consumption.

If the behavioral patterns of consumers in India are closely noticed, it

could be observed that consumers perceive beverages in two

different ways i.e. beverages are a luxury and that beverages have to

be consumed occasionally. These two perceptions are the biggest

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

beverage industry, it is important to address this issue so as to

encourage regular consumption as well as and to make the industry

more affordable.

Four strong strategic elements to increase consumption of the

products of the beverage industry in India are:

The quality and the consistency of beverages needs to be

enhanced so that consumers are satisfied and they enjoy

consuming beverages.

The credibility and trust needs to be built so that there is a very

strong and safe feeling that the consumers have while

consuming the beverages.

Consumer education is a must to bring out benefits of beverageconsumption whether in terms of health, taste, relaxation,

stimulation, refreshment, well-being or prestige relevant to the

category.


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Communication should be relevant and trendy so that

consumers are able to find an appeal to go out, purchase and

consume.

The beverage market has still to achieve greater penetration and also

a wider spread of distribution. It is important to look at the entire

beverage market, as a big opportunity, for brand and sales growth in

turn to add up to the overall growth of the food and beverage

industry in the economy.

MAJOR PLAYERS OF SOFT DRINK INDUSTRY

1. Cadbury Schweppes plcMajor global beverage and confectionery company.Manufactures, markets, and distributes branded products aroundthe world. Including Schweppes, Dr Pepper, and Snapple.
http://www.cadburyschweppesnews.com/EN/http://www.cadburyschweppesnews.com/EN/http://www.cadburyschweppesnews.com/EN/


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2. Clearly CanadianOne of the pioneers of the New Age or Alternative beverageindustry, bottling natural and flavored sparkling water.

3. Coca-ColaSyrups, concentrates and beverage bases for Coca-Cola and over160 other company soft-drink brands are manufactured and soldby The Coca-Cola Co. and its subsidiaries in nearly 200countries around the world.

4. Cott CorporationLeading worldwide supplier of premium retailer brandedbeverages and the world's fourth largest soft drink company.

5. Dr. Pepper/Seven Up

Dr. Pepper is the oldest major soft drink in the U.S. and theprincipal brand of Dr. Pepper/Seven Up, Inc.

6. Nantucket NectarsThe Juice Guys started their business delivering soft drinks andother useful items to visiting yachtsmen in Nantucket Harbor in1989. They now supply 35 states, Canada, and other countries.

7. Pepsi Bottling GroupWorld's largest manufacturer, seller and distributor of Pepsi-Cola beverages with operations in the U.S., Canada, Greece,Russia, Spain and Turkey.

8. PepsiCoPepsi-Cola Company, Frito-Lay Company, and TropicanaProducts, Inc.

9. Vermont Pure SpringsBottlers of Vermont Pure Natural Spring Water, taken from theGreen Mountains of Vermont after being naturally filtered forup to 20 years.
http://www.clearly.ca/http://www.clearly.ca/http://www.cocacola.com/http://www.cocacola.com/http://www.cott.com/http://www.cott.com/http://www.drpepper.com/http://www.drpepper.com/http://www.juiceguys.com/http://www.juiceguys.com/http://www.pbg.com/http://www.pbg.com/http://www.pepsico.com/http://www.pepsico.com/http://www.vermontpure.com/http://www.vermontpure.com/http://www.vermontpure.com/http://www.pepsico.com/http://www.pbg.com/http://www.juiceguys.com/http://www.drpepper.com/http://www.cott.com/http://www.cocacola.com/http://www.clearly.ca/


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PEPSI-COMPANY PROFILE

Pepsi Co. Inc., headquartered in New Virginia, USA started itsoperations in 1898 under the leadership of Mr. Peter Thompson. Sincethen, Pepsi Co. Inc. has reached new heights. Later a snack foods

division and fruit juice division were also started, namely Frito LayCompany and Tropicana Company. Currently, Mr. Steve Reinamondholds the chairmanship of the Pepsi Co. Inc.

Pepsi Co. Inc. is amongst the top 100 corporations worldwide.

Core Business - Beverage and Snack foods

Net sales - US $ 20 Billion + (Rs. 80,000 Cr.)

Employee Strength - > 1,50,000

Operations in - > 190 countries

The parent company, Pepsi Co. Inc. has three sub divisions:

1. Pepsi Cola Company - Beverages

Net Sales - US$ 10.5 Billion

Only one major competitor

Market leader in > 40 countries.

2. Frito Lay Company - Packaged Foods

Net Sales - US $ 10.4 Billion World's largest Snack Food Company

3. Tropicana Company - Fruit and Vegetable juices

Net Sales - US $ 2.2 Billion

Employee strength - > 4,000

Dominant market share in U.S.

Operations in > 29 countries

Pepsi Cola company has two sub divisions:

(a)Pepsi Cola International (PCI)

(b)Pepsi Cola North America


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Pepsi Cola Company has its presence felt in 190 countries. PCI has its

several business units worldwise i.e. in China, Burma, Australia,

Pakistan, Bangladesh, Dubai, Africa, India, Nepal, Sri Lanka, Europe,

Spain and Russia.

The business units of Pepsi in India started as Pepsi Foods Limited in1989. The turnover of pepsiIndia including FOBO sales is 3000countries.

The business of Pepsi is to make and supply the concentrate to

COBO JV FOBO

Pepsi Pepsi &

Partner

Local

Bottler

Makes,sells anddeliverproduct

Makes sellsand deliver

product

Makes,sales anddeliverproduct

The concentrate is made around the world in Uruguay, Argentina,Brazil, Venezuela, Mexico, Peurto Rico, United States, Canada,Ireland, Turkey, Pakistan, India and China. The revenues receivedfrom selling the concentrate are used for advertisement, marketing andgeneral administration.

Pepsi Co's net sales exceed the ravishing figure of US $ 20 Billion.There are million of sales each day. Although the margin per case isquite low but large numbers make the revenues remarkable, so each

sales counts.

MARKETING

The Carbonated soft drink market has become a major business inIndia in recent years with an annual turnover of nearly 2500 crores.


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The industry is being dominated by key share players - New Yorkbased Pepsi Co. Inc.

Atlanta based Coca Cola company and UK based Cadbury Schwepes.The marekt is estimated to be growing at a rate of 20% p.a.Throughout the globe these major players have been battling it out fora bigger chauntic of the evergrowingsoftdrink market now with thearrival of these giants. India is a part of the ongoing soft drink battle.

Ever since Pepsi has entered the Indian market in 1990 it has pumped1000 crores into its Indian operations, while Coke has committed toinvest 2400 crores, with seven huge investments at stake we canrightly said that the battle of supermacy has just begun.

In the carbonated soft drink market there are basic carry fourcategories or sectors which aer given below :

1. Cola - e.g., Pepsi, Coke, Thums Up.

2. Orange - Fanta, Mirinda Orange

3. Cloudy Lemon - Limca, Mirinda Lemon4. Clear Lemon - 7 Up, Sprite

Sector chose - Cola

Major brands in the market sector and market share

Coke - This brand is owned by Atlanta based Coca Cola company. Ithas a market share of 20.1% in India. Coke has been positioned as anall time an occasion drink and not as a special treat beverage.

Pepsi - It is a brand owned by New York based PepsiCo Inc. Pepsi isbeing targeted at teens and twenty same things whom the company hasidentified as its core customers. It has a market share of 26.5%.

Thums Up - Coca Cola owned Thums Up has a market share of14.5%. It has acquired a macho image and much of its advertisingtargets the 20-29 age group.

Other categories available in the market

Category - Orange

Fanta - It is a brand owned by Coca Cola. It has a market share of 6%Fanta is being projected as a fun drink, the first love of 13 to 19 yearsold.

Mirinda Orange - Pepsi owned Mirinda Orange has a total marketshare of 7.5%. It has been positioned to directly to compete with CocaCola's Fanta.


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Category - Cloudy Lemon

Limca- It has a market share of 9%. Limca is owned by Coca Cola.Limca is to anyone who wants to take a breathe with its catchline("Take it easy").

Mirinda Lemon - Pepsi owned Mirinda Lemon is trying to brake intothe Cloudy lemon drink segment which constitutes 12% of the 2500crore segment drink market and is growing at a rate of 11% p.a.

Category - Clear Lemon

7 Up - Pepsi relaunched 7 UP for the second time in Feb 1998, ropingtenure stars. Mahesh Bhupati and Leander Paes to endorse the brand.This brand is being projected as a refreshing drink with its catch line.Doubly refreshing. It has a market share of 3%.

Both the major players i.e. Pepsi and Coke see an enormous potentialin this country where flashing a carbonated beverage is stillconsidered a treat, virtually a luxury. Consequently by worldsstandards India's percapita consumption of eight bottles is less thaneven than of Pakistan and Bangladesh where it is four times thatmuch. Soft drinks which retail anywhere from 6-10 Rs. are expensivewhen compared against the purchasing power of the people.

According to one study it takes an Indian 1.5 hrs of work to be able to

buy a bottle of soft drink, in other countries this norm is minutes. Butwith the growing middle class (150-200) million.

This situation is likely to change. The middle class is emerging as theconsumption community of the country. The numbers of the middleclass are better educted, and exposed to the life styles of the rich.Their aspirations have been constantly growing and they often spendmore than what they earn to cope up with their new social image.

Analysis has shown that over the years the expenditure on non fooditems is constantly on a rise with a change in the mindsets of people

"Yesterdays luxuries are fast becoming todays necessities". Eatinghabits of consumers and taste changing on average Indian is nowspending his income more liberally than ever before and this changehas caused the growth of Fast Food and soft drink in India.

In India 90% of the soft drinks are consumed outside the house onspecial occasions on with friends, the product is more of a life stylestatement than simple means of quenching thirst. It is also an impulse


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driven purchase. Going by the trends in the market different brandare consumed by different sets of consumers for e.g. Orange brand ismostly consumed by children, Lemon drinks are mostly consumed byolder age groups and Cola brands are generally consumed byteenagers and people in their twenties.

DISTRIBUTION CHANNEL

Distribution channel can be described by the number of channel isinvolved. Each layer of marketing intermediaries that performed samework in bringing the products and its ownership closes to the finalbuyer is a channel in the soft drink industry of different length are asfollows.

Single level channel or zero level channel

This channel is called direct marketing channel, has no intermediarylevel. It consists of a company selling directly to consumer e.g. whenwe are delivering to the party order of certain number of crates of softdrinks to consumer directly.

Second level channel

We have three wheelers who are supplying not only to the smallshopkeepers but also to the house the remaining channels are

indirectly marketing channels. Second contain one intermediary level.In consumer markets, this level is typically a retailers.e.g. We sellbottle to retail outlets that in turn sell them to find consumer.

Third level channel

Channel third contains two intermediary levels, a whole seller andretailers, in this system we sellers our products in large quantity to thewholesaler of called as agencies in our trade who them sell then to thesmall retailers. This type of system is adopted when we are not able toour agencies so that our product could reach to the retailers where our

van or three wheelers scooter cannot go. Multi level channel


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This channel contains three intermediaries level. The wholesalers,jobber and retailers. In this the job of the jobber is that, the purchasethe crates from wholesalers and then sells them to the retailers. Thissystem is adopted by in these cases where the agency does not have itsown distribution system.

A company can choose any of the following distribution type .

Exclusive Distribution

Selective Distribution

Intensive Distribution

Pepsi has adopted the intensive distribution strategy.


A strategy of intensive distribution is characterized by placing thegoods of service in as many outlets as possible, when the consumersrequires a great deal of location convenience, it is important to after

greater intensity of distribution. This strategy is generally used forconvenience items such as tabacoo products, gasoline, and soap andsnack foods and bubblegum.

Manufacturing are constantly tempted to move from exclusive orselective distribution to more intensive distribution to increase theircoverage and sales you could find Pepsi in nursing homes,confectionary shop, department stores, you name it and Pepsi asavailable.

SEGMENTATION VARIABLES

Major segmentation of soft drink market

Region - The Carbonated soft drink market on be segmented on thebasis of different regions of the country. For e.g., Coca Cola scannedthe four regions in the country to see which is the most preferredbrands in each region based on the findings some brands weredesigned be more visible than others in a particular region. TodayCalcutta and Mumbai see more of Thums Up while Chandigarh sees

more of Coke.Demographic

Age - Consumer wants change with age hence age is a majorsegmentation variable used by the carbonated soft drinkmanufacturers. Consequently different brands are targeted atconsumers keeping their age requirment in mind. For e.g. Cola drinksare mostly targeted at teenagers and people. In their twenties.


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Gender - It provides vital information with regards to an individualstaste and preference for e.g. females prefer non cola brands whereasmales / men prefer Cola brands.

P.L.C - In U.S. and U.K the carbonated softdrinks market with a percapita consumption of over 300 drinks is in the maturity stage of itsproduct life cycle. The Indian market is in the growth stage with themarket growing as a rate of nearly 20%. The volumes could reach one

billion cares within 10 years. in the last summer reason Coca Colagains it has sold over 70 million cares of all its light brands (CocaCola, Fanta, Thums Up, Limca, Gold Spot, Maza, Citra, Kinley Soda).Individually too the brand has done well so far according to companydata brand Coke for instance has grown by 3% Limca has grown by23% and Fanta volumes have swelled by an unbelievable 70%. On theother hand Pepsi has recorded an impressive 42% growth over the lastyear. in April alone it showed a whooping 65% jump in its volumeover 1999, and in May it has sold 19 million cases.

If growth more or less keeps pace Pepsi hopes to close the year withtotal sales of 105 million cases. Coke and Pepsi have already invested2400 cr and 1000 cr respectively in their Indian operations, such hugeinvestments coupled with the market growth rate along with otherrelated factors market is shore to grow at a zooming rate.

MARKETING STRATEGIES ADOPTED BY PEPSI

Pepsi has gone in for concentration segmentation since the beginning.

Pepsi has targeted the youth segment instead [eg.here GenerationNext, or Be young have fun drink Pepsi type slogans were all over thecountry.] trying to be something to all segments. Pepsi has since thebeginning strove to achieve its international position as a drink fornew generation, and has succeeded in positioning itself for theyounger generation.Pepsi Colas Strategy is based on

Target core brands

Focus on business growth

Satisfy market priorities

Focus on franchising with building care of company owner.

Pepsi also has a very well managed distribution system and coupledwith aggressive marketing and advertising policy has achieved thenumber one position in Indian Soft drinks market. India is one very


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few country where Pepsi had been able to beat its rival Coke fornumber one spot.

Pepsi has adopted the intensive distribution strategy.


A strategy of intensive distribution is characterized by placing thegoods of service in as many outlets as possible, when the consumers

requires a great deal of location convenience, it is important to aftergreater intensity of distribution. This strategy is generally used forconvenience items such as tabacoo products, gasoline, and soap andsnack foods and bubblegum.

Manufacturing are constantly tempted to move from exclusive orselective distribution to more intensive distribution to increase theircoverage and sales you could find Pepsi in nursing homes,confectionary shop, department stores, you name it and Pepsi asavailable.

PEPSI PRODUCTS

Category Brands

PepsiPepsi-Cola, Caffeine Free Pepsi, Diet Pepsi Caffeine Free DietPepsi, Pepsi Twist (regular & diet), Wild Cherry Pepsi, Pepsi Blue,Pepsi ONE

Other USbeverages

Pepsi-Cola, Mountain Dew , Mug, Sierra Mist, Slice (soda); Lipton* (iced tea); Dole* (juices and fruit drinks); FruitWorks (juicedrinks); Aquafina (water); Frappuccino*, Starbucks* (coffeedrinks); SoBe (juice drinks and teas)l AMP (energy drink),Gatorade (sports drink), Propel Fitness Water (enahnced water)

Tropicanabrands

Tropicana (juices and smoothies, Loza (juices and nectars)Copella , Frui'Vita (juices), Alvalle ( fruit juices and vegetablejuices)

Otherbeverages(outside US)

Mirinda, Pepsi Limn, Kas, Teem. Manzanita Sol, Paso de losToros, Fruko , Evervess, Yedigun , Shani, Fiesta, D&G*,Mandarin*, Radical Fruit

Frito-Lay Lay's. Maui Style, Miss Vickie's , Ruffles, Sabritas (potato chips);


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snacks Quavers (potato snacks); Doritos, 3D, Santitas, Tostitos (tortillachips), Fritos (corn chips). Cheetos, Niknaks (cheese snacks), RoldGold (pretzels) Funyuns (onion rings), Go Snacks, Sunchips(multigrain chips), Sabritones, Bocabits (wheat snacks); CrackerJack (candy coated popcorn), Chester's, Smartfood (popcorn),Gamesa . Grandma's (cookies), Baken-ets (fried pork skins),Oberto, Rustler's (meat snacks)l Churrumais, Crujitos, Fandangos,Wotsits (corn snacks), Frito-Lay (nuts); Frito-Lay, Ruffles, Fritosand Tostitos (dips and salsas); Frito-Lay, Doritos and Cheetos

(crackers); Hamka's, Munchies, Sonric's (snacks) Munchos,Smith's, Walkers (potato crisps)

Quakerbrands

Quaker (cereal, granola bars, snack foods, baking mixes) Cap'nCrunch, Life, Quisp, King Vitaman, Mother's, Sugar Puffs, PuffedWheat, Harvest Crunch, Cruesli, Quake, Scott's Oats, Oat BranCrispies (cereal), Harvese Chewy (granola bars), Aunt Jemima(mixes, Coqueiro (canned fish)and syrups), Crisp'ums, Spudz(snacks) Toddynho (chocolate drink),

CHAPTER-III

Organizational Profile

Introduction of LBPL

A BRIEF HISTORY OF LUMBINI BEVERAGES PVT. LTD.

Lumbini Beverages Pvt. Ltd. is situated at Industrial Area, Hajipur inVaishali district of Bihar. Mr. CharanKhilani, who is a resident of Kolkata,established it in the year 1997. It is one of the Pepsi Foods bottling Plants in

Bihar. Ananda Marketing Pvt. Ltd., was a marketing division of LBPL.But now LBPL does its marketing itself.

PROFILE OF LUMBINI BEVERAGE PVT. LTD.

Company Land Area : 9.30 Acres.Location and Authority : EPIP, Industrial Area, Hajipur-844101.


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Name of the Director : CharanKhilani.Name of the CEO : Mr. G.P. Singh.Industrial License No. : Registration No. H12475(C),

Factory Lic. No. 66750/VLI,Date-16.08.1997,

FPO License No. 10607/97.Capacity : 1500 bottles per minute.Nature of the product : Cola, juice based, lime based, water,

Lemon Based, Orange flavored etc.No. of the Employees : 150+200(max.) Seasonal laboures on

any day in the season.Control Board : No. 1877. Date-07/04/1997.

Product Profile of the LBPLProduct Flavour Colour Quantity

Pepsi Cola Burnt-Sugar 200ml


Pepsi(CAN) Cola Burnt-Sugar 250ml

Pepsi(CAN) Cola Burnt-Sugar 330ml


Pepsi Cola Burnt-Sugar 2lt

Pepsi Diet (CAN) Cola Burnt-Sugar 330ml

Pepsi Diet (CAN) Cola Burnt-Sugar 500ml

Mirinda Orange sunset 200ml

Mirinda Orange Sunset 300ml

Mirinda(CAN) Orange Sunset 330ml

Mirinda Orange Sunset 600ml

Mirinda Lemon Tetrazin 300ml

Mirinda Orange Sunset 2lt

7up Lime No colour 200ml




7up Lime No colour 2lt

7up(CAN) Lime No colour 330ml

Mountain Dew Lemon No colour 200ml




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Mountain Dew Lemon No colour 2lt

MountainDew(CAN)

Lemon No colour 330ml

Slice Mango Yellow 200ml



Slice Mango Yellow 1.2lt

Tropicana Twister Orange Sunset 350ml

Tropicana Twister Orange Sunset 1.2lt

Tropicana Many ------- 200ml

Tropicana Many ------- 1lt

Aqua Fina NA ------- 500ml

Aqua Fina NA ------- 1lt

Aqua Fina NA ------- 2lt

Distribution Channel of Lumbini Beverage Pvt. Ltd.

To make its products available at the right place, at the right time in themarket, at the right place, the sales department of the company plays majorattention towards controlling the channel of distribution.

The company right from its beginning stage maintains single type ofmarketing channel. The nature of channel is as follows:

Company Distributors RetailersConsumers

1. About Distributors

At first, soft drink is supplied to distributors. Retailers cannottake the directly from the company. They have to take it fromtheir respective of nearest distributors. The distributorsselected on the basis of assurance given by them regardingminimum sales, which they have mention annually. Theselection is also done on the financial position and reputationof distributing in the market. AS for the example, firstpriority is given to those people who are in cigarette business.

Depending upon market each distributor in its initial stage,deposit some security money. This amount varies betweenfive to ten thousand.


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CHAPTER-IV

DATA ANALYSIS AND INTERPRETATION:-1. INTERPRETATION OF OUTLETS.

2. MARKET SHARE OF DIFFERENT OUTLETS.

3. MARKET SHARE OF COOLING.

4. EQUIPMENTS OF DIFFERENT SOFT DRINKS.

5. PERCENTAGE SHARE OF GLOW SIGN BOARD OF

DIFFERENT SOFT DRINKS.

6. PERCENTAGE SHARE OF SATISFACTION OF DISTRIBUTION.


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4.1: No. of outlets in different market areas in which the studyhas been done are as follows:-S. No. Location No. of outlets1 RAJA POOL 7

2 GOSAI TOLA 103 KURJI 114 DIGHA 12

TOTAL 40

Interpretation:-The company has broader coverage in this area as coke. The company

must target this area to increase the sales volume.

4.2: Types of Outlet:-

S. No. Type No. of outlets1 EATRY 9

2 GROCERY 153 CONVENIENT 16

Total 40

Shop surveyed at different locations

RAJA POOL

GOSAI TOLA

KURJI

DIGHA


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Interpretation:-The maximum number of outlet in this area of GROCERY CLASS. So the

PEPSI must ensure the proper delivery of its products in GROCERYCLASS .

4.3: MARKET SHARE OF DIFFERENT SOFT DRINKS

1. The Cola Markets:Products % Share

Pepsi-Cola 20%Coca-Cola 45%Thumps Up 35%Total 100%

Types of Outlet


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Interpretation:-There is dominancy of Thumps Up in the Cola segment of softdrinks in this market. Pepsi is its competitor.

2. The Orange Flavoured Soft Drinks:-

Products % ShareMirinda 40%Fanta 60%

Total 100%

The Cola Market

Pepsi-Cola

Coca-Cola

Thumps Up


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Interpretation:-

The Graph shows that there is a majority of customers of Fanta inOrange Flavoured Soft Drink Market.

3. Clear Lime Market:-

Products % Share

7 UP 35%Sprite 65%Total 100%

Market Share of orange Soft Drinks

Mirinda

Fanta


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Interpretation:-

There is great dominancy of Sprite in this market. Customers firstlydemand always Sprite. They take 7UP only as the substitute of Sprite.

4.4: PERCENTAGE SHARE OF CHILLING EQUIPMENTS

1. % Share of VISI Coolers:-

Company Name No.

PEPSI 18Coca-Cola 25Own 10Total 53

Market Share in Clear Lime Market

7 UP

Sprite


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Interpretation:-

From the above diagram we can conclude that the number of VISIcoolers distributed from Coca-Cola is much more than PEPSI.

4.5: PERCENTAGE SHARE OF GLOW SIGN BOARD:-

Company Name %Share

PEPSI 35%COCA-COLA 65%TOTAL 100%

% Share of VISI Coolers

PEPSI

COCA-COLA

OWN


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Interpretation:-

From the above diagram it is clear that 35% of glow sign board is ofPEPSI while 65% is that of COCA-COLA .

4.6:RETAILORS SATISFACTION REGARDINGDISTRIBUTION:-

PRODUCT NAME SATISFIEDRETAILORS

PEPSI 22COCA-COLA 30

% SHARE OF GLOW SIGN BOARD

PEPSI

COCA-COLA


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Interpretation:-

Out of 40 retailers only 22 were satisfied with the distribution strategyof Pepsi in that area, where as 30 retailers were satisfied with thecokes distribution strategy.

CHAPTER V

Conclusion

Coke is covering more share in the market in comparison ofPepsi.

Most of the retailers are satisfied by the schemes of both thecompanies.

Retailers willing to sell the Coke brand more over the Pepsi.

The advertisement in that area by Pepsi is lower than theCoke.

The availability of Pepsi product in that area was notsatisfactory.

The schemes from Pepsi are not properly delivered to itsretailers.

RETAILORS SATISFACTION REGARDING

DISTRIBUTION

PEPSI

COCA-COLA


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There is a great need to replace all small cooling machineswith the new one.

There are low retailers of Pepsi in that area.

Measures suggested to PEPSI (LBPL) Patna

Need to provide better schemes to the small retailers as well.Need to reduce the prices to improve their sales.Continuously they need to introduce new schemes.Pepsi need to target other age groups as well.There is a need for replacement of old and defective cooling

machines with new and advanced one.

Bibliography


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MagazinesMarketing strategies by Gyansinghhttp://www.slideshare.net/thismakesmyday/creative-

marketing-battle-coca-cola-and-pepsi-cola-presentation-

621981http://marketing.about.com/http://www.freeessays.cc/db/29/mul22.shtmlhttp://www.academon.com/lib/essay/marketing-strategy-

pepsi.html

Annexure

QUESTIONNAIRE FOR RETAILERS

1) Which soft drink brand preferred by the consumers

a. PEPSIb. COKEc. OTHERS

2) Are the retailers satisfied with schemes of coke??

a) YESb) NO

3) Are the Retailers satisfied with schemes of Pepsi??

a) YESb) NO

4) Customers preference depends upon????
http://marketing.about.com/http://marketing.about.com/http://www.freeessays.cc/db/29/mul22.shtmlhttp://www.freeessays.cc/db/29/mul22.shtmlhttp://www.academon.com/lib/essay/marketing-strategy-pepsi.htmlhttp://www.academon.com/lib/essay/marketing-strategy-pepsi.htmlhttp://www.academon.com/lib/essay/marketing-strategy-pepsi.htmlhttp://www.academon.com/lib/essay/marketing-strategy-pepsi.htmlhttp://www.academon.com/lib/essay/marketing-strategy-pepsi.htmlhttp://www.academon.com/lib/essay/marketing-strategy-pepsi.htmlhttp://www.academon.com/lib/essay/marketing-strategy-pepsi.htmlhttp://www.freeessays.cc/db/29/mul22.shtmlhttp://marketing.about.com/


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a) DISCOUNTb) ADVERTISEMENTc) AVAILABILITYd) BRAND NAME

5) Which brand retailers willing to sell??

a) COKE

b) PEPSI

QUESTIONNAIRE FOR CONSUMERS

1) Which brand is preferred by the consumers????

a) PEPSIb) COKE

2) Are they satisfied by the promotional strategies of coke andPepsi??

a) YESb) NO

3) Do you think home delivery distribution will affect on sales??

a) YESb) NO

4) Does u think that companies need to reduce their prices toimprove their sales????

a) YESb) NO

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