A Summer Training A Summer Training Project Report onProject Report on

““A Consumer decision analysis for the purchase of A Consumer decision analysis for the purchase of PEPSICO Refreshment beverages and the problem PEPSICO Refreshment beverages and the problem

identification of PEPSICO Visi Coolers in the identification of PEPSICO Visi Coolers in the Nainital District of Uttarakhand (India)”Nainital District of Uttarakhand (India)”

Presented By: Presented By: NIMISH PANTNIMISH PANT

ROLL NO 10ROLL NO 10 PGDM (BATCH: 2010-PGDM (BATCH: 2010-

2012)2012)

INTRODUCTION Fast Moving Consumer Goods (FMCG), are products that are sold Fast Moving Consumer Goods (FMCG), are products that are sold quickly at relatively low cost. Though the absolute profit made quickly at relatively low cost. Though the absolute profit made on FMCG products is relatively small, they generally sell in large on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be quantities, so the cumulative profit on such products can be large. large. FMCG industry, alternatively called as CPG (Consumer packaged FMCG industry, alternatively called as CPG (Consumer packaged goods) industry primarily deals with the production, distribution goods) industry primarily deals with the production, distribution and marketing of consumer packaged goods. and marketing of consumer packaged goods. The Fast Moving Consumer Goods (FMCG) are those The Fast Moving Consumer Goods (FMCG) are those consumables which are normally consumed by the consumers at consumables which are normally consumed by the consumers at a regular interval. Some of the prime activities of FMCG industry a regular interval. Some of the prime activities of FMCG industry are selling, marketing, financing, purchasing, etc. The industry are selling, marketing, financing, purchasing, etc. The industry also engaged in operations, supply chain, production and also engaged in operations, supply chain, production and general management.general management.

Company Company ProfileProfile• Caleb Bradham: Caleb Bradham: Inventor of Pepsi Cola and former Inventor of Pepsi Cola and former

President of President of PEPSICOPEPSICO• June 16, 1903: June 16, 1903: First Pepsi Cola Trademark was First Pepsi Cola Trademark was registeredregistered• Founders: Founders: Donald M. Kendall, Herman W. LayDonald M. Kendall, Herman W. Lay• Founded at Delaware in June 8, 1965Founded at Delaware in June 8, 1965• Reincorporated in North Carolina in 1986Reincorporated in North Carolina in 1986• Divisions: Divisions: PEPSICO Americas Foods, PEPSICO PEPSICO Americas Foods, PEPSICO

Americas Americas beverages, PEPSICO Europe, beverages, PEPSICO Europe, PEPSICO Asia, PEPSICO Asia, PEPSICO Middle East and Africa.PEPSICO Middle East and Africa.

• Employees till year 2010: Employees till year 2010: 2, 94,000 worldwide2, 94,000 worldwide• Category: Category: PublicPublic• Founded: Founded: 1965 at New York1965 at New York

BUSINESSBUSINESS• PepsiCo's food and beverage products are available globally through a PepsiCo's food and beverage products are available globally through a

variety of go-to-market systems, including direct store delivery (DSD), variety of go-to-market systems, including direct store delivery (DSD), broker-warehouse, and food service and vending.broker-warehouse, and food service and vending.

BRANDSBRANDS• PepsiCo has hundreds of brands around the world. These are some of PepsiCo has hundreds of brands around the world. These are some of

the more popular ones: Pepsi-Cola, Diet Pepsi, Mountain Dew, Miranda, the more popular ones: Pepsi-Cola, Diet Pepsi, Mountain Dew, Miranda, 7UP, Lay's, Ruffles, Doritos, Fritos, Funyuns, Go Snacks, Sunchips and 7UP, Lay's, Ruffles, Doritos, Fritos, Funyuns, Go Snacks, Sunchips and Cracker Jack.Cracker Jack.

LOCATIONLOCATION• PepsiCo World Headquarters is located in Purchase, New York, PepsiCo World Headquarters is located in Purchase, New York,

approximately 45 minutes from New York City. PepsiCo brands are approximately 45 minutes from New York City. PepsiCo brands are available in nearly 200 countries. available in nearly 200 countries.

Following are the models available in visi coolers of pepsi:Following are the models available in visi coolers of pepsi:• 220 litre220 litre 280 litre280 litre 340 litre340 litre 350 litre350 litre• 575 litre575 litre 400 litre400 litre 800 litre800 litre• 1200 litre double door sliding visi cooler1200 litre double door sliding visi cooler

Following are the companies from which pepsi have tie up Following are the companies from which pepsi have tie up for visi cooler manufacturing:for visi cooler manufacturing:

• EVERESTEVEREST• VOLTASVOLTAS• CAREERCAREER

OBJECTIVESOBJECTIVES

The main objective of the study was to analyze the current The main objective of the study was to analyze the current trend analysis of the market and to identify the upcoming trend analysis of the market and to identify the upcoming requirements of the consumers including the retailer’s requirements of the consumers including the retailer’s problems in Nainital District. Along with the sub objective of problems in Nainital District. Along with the sub objective of this study are:this study are:

• To find out in how many outlets there is only PepsiCo visi-To find out in how many outlets there is only PepsiCo visi-cooler.cooler.

• To find out how many outlets sells only PepsiCo product.To find out how many outlets sells only PepsiCo product.• Which company product is more in the outlets?Which company product is more in the outlets?• To find out which company visi cooler are more pure.To find out which company visi cooler are more pure.• Visi -cooler charging and purity. Visi -cooler charging and purity.

RESEARCH METHODOLOGYRESEARCH METHODOLOGY

Define the problemDefine the problem• A. The study is about finding the purchase process of consumer toward A. The study is about finding the purchase process of consumer toward

Refreshment beveragesRefreshment beverages and how and how PEPSICO Visi Coolers PEPSICO Visi Coolers can influence can influence them to purchase pepsi products only.them to purchase pepsi products only.

• B. Target population & Sampling frame (The list of quality service)• C. Sampling method• Locations covered:Locations covered: Nainital District of Uttarakhand-Haldwani, Nainital District of Uttarakhand-Haldwani,

Bhimtal, Bhowali, Jyolikot, Nainital, Lalkuan, Ramnagar, Kaladhungi and Bhimtal, Bhowali, Jyolikot, Nainital, Lalkuan, Ramnagar, Kaladhungi and Lamachaur.Lamachaur.

• These were the nine cities and towns where I have analyzed the current These were the nine cities and towns where I have analyzed the current trend regarding the PEPSICO Visi Coolers from retailers.trend regarding the PEPSICO Visi Coolers from retailers.

• The consumer decision analysis for purchase of PEPSICO products I have The consumer decision analysis for purchase of PEPSICO products I have analyzed in Nainital District: Major cities covered: Haldwani and analyzed in Nainital District: Major cities covered: Haldwani and Nainital.Nainital.

Data AnalysisData Analysis• Out of 100 retailers 100 said that availability and technical Out of 100 retailers 100 said that availability and technical

convenience is very important in case of visi coolers.convenience is very important in case of visi coolers.• Out of 100 retailers only 8 said that Out of 100 retailers only 8 said that

advertisement/awareness regarding the visi coolers is advertisement/awareness regarding the visi coolers is important and 92 said that advertisements/awareness are important and 92 said that advertisements/awareness are very important. etc.very important. etc.

Ratio of the consumers on the six factor basis out of 100 Ratio of the consumers on the six factor basis out of 100 samples:samples:

• Out of 100 consumers 3 consumers strongly disagree to Out of 100 consumers 3 consumers strongly disagree to purchase PepsiCo beverages on special occasions,while1 was purchase PepsiCo beverages on special occasions,while1 was only disagree,21 were neither agree nor disagree,55 were only disagree,21 were neither agree nor disagree,55 were agree and 20 were strongly agree.agree and 20 were strongly agree.

• Out of 100 consumers 8 consumers were strongly disagree to Out of 100 consumers 8 consumers were strongly disagree to consume PepsiCo beverages on the basis of energetic level, consume PepsiCo beverages on the basis of energetic level, while 65 were disagree,19 were neither agree nor disagree,6 while 65 were disagree,19 were neither agree nor disagree,6 were agree and 2 were strongly agree.were agree and 2 were strongly agree.

FindingsFindings• Company product NIMBOOZ is very popular in HALDWANI.Company product NIMBOOZ is very popular in HALDWANI.• PEPSI is providing more schemes to the retailer as compare to Coco-cola.PEPSI is providing more schemes to the retailer as compare to Coco-cola.• Competition with coco-cola and local juice counters. Competition with coco-cola and local juice counters. • Untimely distribution of product in few routes.Untimely distribution of product in few routes.• Coco-cola has provided on an average bigger visi-cooler to retailer as compare to the Coco-cola has provided on an average bigger visi-cooler to retailer as compare to the

Pepsi.Pepsi.• Coco-cola visi-coolers are more pure as compare to Pepsi visi-cooler.Coco-cola visi-coolers are more pure as compare to Pepsi visi-cooler.• Found some dead or useless cooler of company.Found some dead or useless cooler of company.• Found so many outlets which want company’s double door visi-cooler and deep Found so many outlets which want company’s double door visi-cooler and deep

fridge.fridge.• Found so many outlets which do not have company visi-cooler but there name are Found so many outlets which do not have company visi-cooler but there name are

also in the list.also in the list.• There is communication gap in distribution channel so the retailers were not getting There is communication gap in distribution channel so the retailers were not getting

advantage of discounting and trade scheme.advantage of discounting and trade scheme.• Distributor salesmen are not well trained.Distributor salesmen are not well trained.• Shortage of manpower in Haldwani. Shortage of manpower in Haldwani.

SuggestionsSuggestions• Company should ensure its product availability in the market and on self by Company should ensure its product availability in the market and on self by

accurately demand forecasting. Because product availability builds brand and accurately demand forecasting. Because product availability builds brand and store loyalty, which increase RIM selling.store loyalty, which increase RIM selling.

• Company should maintain close relationship with the retailers by improved Company should maintain close relationship with the retailers by improved downward communication. This can be done by visiting outlets regularly by downward communication. This can be done by visiting outlets regularly by company C.E. company C.E.

• Company C.E must visit different route on weekly basis and take proper Company C.E must visit different route on weekly basis and take proper feedback from the retailers and solve their service related problem.feedback from the retailers and solve their service related problem.

• The sales executive should try to avoid making false commitment for realizing The sales executive should try to avoid making false commitment for realizing short term goals.short term goals.

• Shortage of manpower in Haldwani. Haldwani is big market and company has Shortage of manpower in Haldwani. Haldwani is big market and company has only one Executive which is not sufficient. Company should keep at least two only one Executive which is not sufficient. Company should keep at least two Executives in Haldwani or make an RSPM in this area.Executives in Haldwani or make an RSPM in this area.

• Company should take quick action to solve retailer’s services related problems Company should take quick action to solve retailer’s services related problems like visi-cooler complain .Because in this competitive world if we don’t take care like visi-cooler complain .Because in this competitive world if we don’t take care of our customer quickly someone else will.of our customer quickly someone else will.

• Company should ensure that the distributor’s salesmen are providing Company should ensure that the distributor’s salesmen are providing regular schemes to the retailer when it is there by surprise checks or visits.regular schemes to the retailer when it is there by surprise checks or visits.

• Company should provide proper and regular training to the distributor salesman at Company should provide proper and regular training to the distributor salesman at least twice in a year because they are the one who are representing the company in least twice in a year because they are the one who are representing the company in this market.this market.

• Company should provide some incentive as motivation to the distributor salesman on Company should provide some incentive as motivation to the distributor salesman on the following basis:the following basis:

• Sales volume: whose sales volume is more?Sales volume: whose sales volume is more?• Number of new account open: Those who open more new accounts.Number of new account open: Those who open more new accounts.• Visi- cooler purity and charging: salesman whose route visi-cooler were more pure Visi- cooler purity and charging: salesman whose route visi-cooler were more pure

and charge with company product. and charge with company product. • Company can outsource two – three employees during season time in Haldwani to Company can outsource two – three employees during season time in Haldwani to

ensure the visibility of company product. ensure the visibility of company product. • In order to motivate retailer to keep company visi-cooler pure. Company can provide In order to motivate retailer to keep company visi-cooler pure. Company can provide

some motivation like gifts, discount or schemes to retailer keeping pure visi-cooler some motivation like gifts, discount or schemes to retailer keeping pure visi-cooler this can be done on monthly basis. this can be done on monthly basis.

ConclusionsConclusions• Pepsi has more number of visi-cooler in the market.Pepsi has more number of visi-cooler in the market.• Most of the retailers were selling both Pepsi and Coco-cola product.Most of the retailers were selling both Pepsi and Coco-cola product.• There are certain gaps in company sales and distribution in Haldwani There are certain gaps in company sales and distribution in Haldwani

which are as follows:which are as follows:• Company product availability is average. Company product availability is average. • Relationship of salesman with the retailers was very formal instead of Relationship of salesman with the retailers was very formal instead of

close relationship.close relationship.• No merchandising by salesman in outlets.No merchandising by salesman in outlets.• Untimely distribution of product in certain routes like Rampur Road. Untimely distribution of product in certain routes like Rampur Road. • Lack of communication between company and retailers.Lack of communication between company and retailers.• Services of cooler maintenance staff are not satisfactory.Services of cooler maintenance staff are not satisfactory.• There is good opportunity for the company to introduce Tele-selling and There is good opportunity for the company to introduce Tele-selling and

Pre-selling in Haldwani.Pre-selling in Haldwani.• Coco-cola visi-coolers are more pure as compare to Pepsi or any other Coco-cola visi-coolers are more pure as compare to Pepsi or any other

company. Because they have more manpower as compare to Pepsi.company. Because they have more manpower as compare to Pepsi.