Pepsi Report

Amity International Business School

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SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL FULFILMENT OF POST GRADUATE DEGREE IN INTERNATIONAL BUSINESS

SHIFTING CONSUMER CHOICE TOWARDS HEALTHIER DRINKS OF PEPSICOSUBMITTED BY: BHANU PRATAP SINGH MBA-IB (2007-2009) Roll No. : A1802007F16

INDUSTRY GUIDE Mr. Sharad Vatss Mkt. Development Manager VARUN BEVERAGES LMT. Greater Noida

FACULTY GUIDE Mr. Nitin Garg

AMITY INTERNATIONAL BUSINESS SCHOOL NOIDA

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ACKNOWLEDGEMENT

I express my sincere gratitude to my industry guide Mr. SHARAD VATSS ( Mkt. Development Manager , VARUN BEVERAGES LMT. , Greater Noida ) for his able guidance , continuous support and cooperation throughout my project , without which the present work would not have been possible. I would also like to thank the entire team of PEPSICO & specially to Mr. Manish Dangwal ( M.E., WEST U.P ) , Mr. S.S.Rawat (MKT. DEVELOPMENT CO-ORDINATOR) , Mr. Arun Rawat, CUSTOMER EXECUTIVE) for the constant support and help in the successful completion of my project. Also , I am thankful to my faculty guide Mr. NITIN GARG of my institute ,for her continued guidance and invaluable encouragement .

Signature (Student)

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CERTIFICATE OF ORIGIN

This is to certify that Mr. Bhanu Pratap Singh , a student of post graduate Degree in International Business , Amity International Business School , Noida has worked in PEPSICO under the able guidance of Mr. SHARAD VATSS , designation (Mkt. development Manager , VARUN BEVERAGES LMT. , GREATER NOIDA ) . The period for which he was on training was for 8 weeks , starting from 7th MAY 2008 to 7th JULY 2008. This Summer internship report has the requisite standard for the partial fulfillment the post Graduate Degree in International Business .To the best of our ,knowledge no part of this report has been reproduced from any other report and the content are based on original research.

Signature (Faculty Guide)

Signature (Student)

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Company Certificate

(LETTER HEAD of the Company)

TO WHOM IT MAY CONCERN

This is to certify that Mr. Bhanu Pratap Singh , student of Amity International Business School, Noida , undertook a project on SHIFTING CONSUMER CHOICE TOWARDS HEALTHIER DRINKS OF PEPSICO at [VARUN BEVERAGES ] , PEPSI bottling plant , (Greater Noida , Noida Depo. ) from 7th MAY 2008 to 7th JULY 2008. Mr. BHANU PRATAP SINGH has successfully completed the project under the guidance of Mr. SHARAD VATSS (MKt Development Manager). He is a sincere and hard-working student with pleasant manners. We wish him all success in his future endeavors.

Mr. SHARAD VATSS Marketing Development Manager Varun Beverages Lmt. Greater Noida.

CONTENTS

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PART AINTRODUCTIONa.

Company Overview : PEPSICO WORLDPepsiCos missionShareholders Corporate Citizenship PepsiCo Headquarters ABOUT THE PEPSICO FAMILY Bottling History of Pepsico Stock of Pepsico

b. c.

Company profile : Pepsi co. India Pepsi co. India Performance with Purpose

Company profile : R.K.J. Group Overview of R.K.J. Group Hierarchy system of Mkt. Dept

PART BINDUSTRY PROFILEa.

Industry profile: F.M.C.G. IndustryOverview of F.M.C.G. Industry Concept of F.M.C.G. Industry F.M.C.G. Industry Economy Conmen F.M.C.G. Product. Market Potential of F.M.C.G. Leading F.M.C.G. Companies An Overview of Food Processing Industry. F.M.C.G. Product & Categories. Analysis of F.M.C.G. Sector. F.M.C.G. in India. Top- Ten F.M.C.G. Co.

Tropicana History

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Why Does Tropicana Taste So Good? ADVERTISEMENT STRATEGY Distribution ChannelDistributor Retailer

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About the Organized Fruit Juice Market

PART C 1-Product Information1 a. Tropicana Pure Premium

Orange Juice Grapefruit Juice Orange Juice Blends

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Specialty Orange Juice Fiber Low Acid Healthy Heart Healthy Kids Antioxidant Advantage

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Light 'n Healthy Light 'n Healthy with Calcium Light 'n Healthy with Pulp

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Tropicana Organics Organic Orange Juice

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Amity International Business School Organic Orchard Medley

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Other Tropicana Products Chilled Juices and Juice Beverages: Assorted Refrigerated Juice Drinks Non-Refrigerated Juices & Juice Drink Tropicana Pure Tropicana Fruit Squeeze Tropicana Fruit Smoothies Tropicana Twister

PART DRESEARCH METHODOLOGYa. b. c. d. e. f. g. Objective Methodology Analysis of Data Findings Limitation Suggestion Conclusion

PART - EGraph representations & analysis of survey data

Questionnaire

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PART Fa. b. c. d. Limitations Suggestions Conclusion S. W. O. T. Analysis Strength, Weaknesses Opportunities Threats

PART Ga. b. c. d. Learning Experience BIBILIOGRAPHY Case Study Synopsis

Company Overview

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PepsiCo is a world leader in convenient foods and beverages, with 2007 revenues of more than $35 billion and 168,000 employees.PepsiCo brands are available in nearly 200 countries and territories and generate sales at the retail level of about $92 billion. Some of PepsiCo's brand names are more than 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001. PepsiCo offers product choices to meet a broad variety of needs and preference -- from fun-for-you items to product choices that contribute to healthier lifestyles.

PepsiCos mission

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Amity International Business School To be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors 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.

ShareholdersPepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange in the United States. The company is also listed on the Amsterdam, Chicago and Swiss stock exchanges. PepsiCo has consistently paid cash dividends since the corporation was founded.

Corporate CitizenshipAt PepsiCo, we believe that as a corporate citizen, we have a responsibility to contribute to the quality of life in our communities. This philosophy is expressed in our sustainability vision which states: PepsiCos responsibility is to continually improve all aspects of the world in which we operate environment, social, economic -- creating a better tomorrow than today. Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

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PepsiCo Headquarters(PepsiCo World Headquarters, Purchase, New York)

PepsiCo World Headquarters is located in Purchase, New York, approximately 45 minutes from New York City. The seven-building headquarters complex was designed by Edward Durrell Stone, one of America's foremost architects. The building occupies 10 acres of a 144acre complex that includes the Donald M. Kendall Sculpture Gardens, a world- acclaimed sculpture collection in a garden setting. The grounds are open to the public, and a visitor's booth is in operation during the spring and summer.

ABOUT THE PEPSICO FAMILY

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FRITO-LAY NORTH AMERICA

PepsiCo's snack food operations had their start in 1932 when two separate events took place. In San Antonio, Texas, Elmer Doolin bought the recipe for an unknown food product a corn chip and started an entirely new industry. The product was Fritos brand corn chips, and his firm became the Frito Company. That same year in Nashville, Tennessee, Herman W. Lay started a business distributing potato chips. Mr. Lay later bought the company that supplied him with product and changed its name to H.W. Lay Company. The Frito Company and H.W. Lay Company merged in 1961 to become Frito-Lay, Inc. Major Frito-Lay products include Lays potato chips, Doritos flavored tortilla chips, Tostitos tortilla chips, Cheetos cheese flavored snacks, Fritos corn chips, Ruffles potato chips, Rold Gold pretzels, Sun Chips multigrain snacks, Munchies snack mix, Lays Stax potato crisps, Cracker Jack candy coated popcorn and Go Snacks. Frito-Lay also sells a variety of branded dips, Quaker Fruit & Oatmeal bars, Quaker Quakes corn and rice snacks, Grandmas cookies, nuts and crackers.

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PEPSICO INTERNATIONAL

Pepsi-Cola began selling its products outside the United States and Canada in the mid-1930s, Operations grew rapidly beginning in the 1950s. Today, PepsiCo beverages are available in more than 200 countries and territories. Brands include Aquafina, Gatorade and Tropicana. In addition to brands marketed in the United States, PepsiCo International brands include Mirinda, Seven-Up and many local brands. PepsiCo began its international snack food operations in 1966. Today, products are available in nearly 200 countries. Often PepsiCo snack food products are known by local names. These names include Gamesa and Sabritas in Mexico, Walkers in the United Kingdom, Simths in Australia, Matutano in Spain, Elma Chips in Brazil, and others. The company markets Frito-Lay brands on a global level, and introduces unique products for local tastes

QUAKER FOODS NORTH AMERICA

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The Quaker Oats Company was formed in 1901 when several American pioneers in oat milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour and William Heston had established the Quaker Mill Company. The figure of a man in Quaker clothes became the first registered trademark for breakfast cereal and remains the hallmark for Quaker Oats today. Ferdinand Schumacher, known as "The Oatmeal King," had founded German Mills American Oatmeal Company in 1856. Combining The Quaker Mill Company with the Stuart and Schumacher businesses brought together the top oats milling expertise in the country as The Quaker Oats Company. The first major acquisition of the company was Aunt Jemima Mills Company in 1926, which is today the leading manufacturer of pancake mixes and syrup. Gatorade was acquired in 1983. In 1986, The Quaker Oats Company acquired the Golden Grain Company, producers of Rice-A-Roni. PepsiCo merged with The Quaker Oats Company in 2001.

Bottling history of Pepsi co.

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Company History: The Pepsi Bottling Group, Inc. (PBG) is the world's largest manufacturer, seller, and distributor of Pepsi-Cola beverages. Separated from parent PepsiCo, Inc. in 1999, it accounted that year for 55 percent of Pepsi-Cola beverages sold in the United States and 32 percent worldwide. Pepsi Bottling Group's strongest presence is in the United States and Canada, but it also holds exclusive Pepsi franchises in Greece, Russia, and Spain as well as in most U.S. states and Canadian provinces. The company delivers its products directly to stores without using wholesalers or other middlemen. In addition to its extensive production and distribution facilities, PBG leases and operates about 20,000 vehicles and owns more than 1.1 million soft drink dispensing and vending machines. PepsiCo holds a controlling interest in the firm. Independent Company: 1999-2000 In March 1999, PepsiCo spun off its soft drink bottling and distribution operations--what was known within the organization as Pepsi COBO (company-owned bottling operations). The Pepsi Bottling Group Inc. In the fifth largest initial public offering in U.S. stock market history, PepsiCo sold 100 million shares at $23 a share. Retaining a 40 percent interest in the newly public company, PepsiCo placed two senior officials on its board of directors. In addition, PBG was required to submit its annual operating plan to PepsiCo for its approval and was using only PepsiCo-approved vendors. In return, PBG was expecting a high level of funded marketing support from PepsiCo. Pepsi Bottling Group was focusing on enhancing the one-third of its business defined as 'cold drink' or single serve. This profitable area had been growing rapidly as consumers increased their snacking. PBG doubled its spending on new coolers and vending machines between 1997 and 1999, adding about 175,000 new pieces of equipment. The company also was acquiring more bottlers in areas primarily contiguous to its existing operations, in order to realize cost savings in raw materials, manufacturing, warehousing, logistics, and general administration. Weatherup, who had been president and chief executive officer of Pepsi-Cola North America (1990-96) and chairman and CEO of its parent, Pepsi-Cola Co. (1996-99), and who then became the first chairman and CEO of Pepsi Bottling Group, said the company intended to grow 1 to 2 percent a year by acquisitions, averaging six to ten deals a year. One pressing problem was to increase Pepsi Bottling Group's operations outside North America, which were accounting for only 8 percent of total revenues. Russian operations suffered a heavy blow in 1998, when the value of the ruble collapsed, leading to a $212 million restructuring asset writedown. But in its first year as an independent company, PBG registered $7.51 billion in revenues--a 13 percent gain over the previous year. Net income was $118 million. These figures improved to $7.98 billion and $229 million, respectively, in 2000.

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Pepsi-Cola Bottling Group had 67 production facilities (60 owned) and 320 distribution facilities (258 owned) at the end of 2000 in parts of 41 states, the District of Columbia, eight Canadian provinces, Spain, Greece, and Russia. PBG's brands included Pepsi Cola, Diet Pepsi, Mountain Dew, Lipton Brisk, Lipton's Iced Tea, Pepsi One, Slice, Mug, Aquafina (bottled water), Starbucks Frappaccino, Fruitworks, and, outside the United States, 7UP, Pepsi Max, Mirinda, and Kas. PBG also had the right to manufacture, sell, and distribute soft drink products of other companies in some territories. About 80 percent of PBG's volume in 2000 was sold in the United States. In 1999 Pepsi-Cola brands held about 29 percent of the carbonated soft drink market in the United States, compared with 40 percent for Coca-Cola Co. brands. The long-term debt was $3.27 billion at the end of 1999. PepsiCo owned 37.9 percent of PBG's outstanding common stock in February 2001. It also held all of the outstanding Class B stock. By the terms of Pepsi Bottling Group's master syrup agreement with PepsiCo, PBG had the exclusive right to manufacture, sell, and distribute fountain syrup to local customers in its territories and to act as a manufacturing and delivery agent for national accounts within its territories that specifically requested direct delivery without using a middleman. Also under this agreement, PBG had the exclusive right to service fountain equipment for all of the national account customers within its territories. PBG was purchasing the concentrates to manufacture PepsiCo's soft drink products. Other raw materials were generally being purchased from multiple suppliers, but with PepsiCo acting as the agent. By the terms of Pepsi Bottling Group's master bottling agreement with PepsiCo authorizing PBG to manufacture, package, sell, and distribute the cola beverages bearing the Pepsi-Cola and Pepsi trademarks, PBG was required to pay the concentrate prices determined by PepsiCo and to deploy the types of containers authorized by PepsiCo. PepsiCo also had the right to approve PBG's annually presented three-year financial plan but did not have the right to withhold approval unreasonably. Failure to carry out the approved plan in all material respects could result in a termination of the agreement. PBG had the right to determine the prices at which it sold its products. Although PBG had an extensive distribution system in the United States and Canada, in Russia, Spain, and Greece, it was using a combination of direct store distribution and distribution through wholesalers.

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Stock of the Pepsi co.

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Company Profile: Pepsi co. IndiaPepsiCo In IndiaPepsiCo entered India in 1989 and has grown to become one of the countrys leading food and beverage companies. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India. PepsiCo India and its partners have invested more than U.S.$700 million since the company was established in the country. PepsiCo provides direct employment to 4,000 people and indirect employment to 60,000 people including suppliers and distributors. PepsiCo nourishes consumers with a range of products from treats to healthy eats, that deliver joy as well as nutrition and always, good taste. PepsiCo Indias 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, isotonic sports drinks - Gatorade, Tropicana100% fruit juices, and juice based drinks Tropicana Nectars, Tropicana Twister and Slice. Local brands Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands. PepsiCos 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 Lays Potato Chips, Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands. The companys high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers. Frito Lays core products, Lays, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary nutritional labeling on their packets. 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, PepsiCos Frito Lay foods division has 3 state-ofthe-art plants. PepsiCos business is based on its sustainability vision of making tomorrow better than today. PepsiCos commitment to living by this vision every day is visible in its contribution to the country, consumers.

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Performance With PurposePerformance with Purpose articulates PepsiCo India's belief that its businesses are intrinsically connected to the communities and world that surrounds it. Performance with Purpose means delivering superior financial performance at the same time as we improve the world. To deliver on this commitment, PepsiCo India will build on the incredibly strong foundation of achievement and scale up its initiatives while focusing on the following 4 critical areas that have a business link and where we believe that we can have the most impact . PepsiCo India continues to replenish water and expand its expertise in water conservation. PepsiCo Indias Agri-partnerships with farmers help farmers across the country earn more PepsiCo India continues to convert Waste to Wealth, to make our cities cleaner. This award winning initiative will establish Zero Solid Waste centres in districts throughout the country

PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. Others claim that firstly Pepsi was banned from import in India, in 1970, for having refused to release the list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on the market shortly afterwards. These controversies are a reminder of "India's sometimes acrimonious relationship with huge multinational companies." Indeed, some argue that PepsiCo and The Coca-Cola Company have "been major targets in part because they are well-known foreign companies that draw plenty of attention."

In 2003, the Centre for Science and Environment (CSE), a non-governmental organization in New Delhi, said aerated waters produced by soft drinks manufacturers in India, including multinational giants PepsiCo and The Coca-Cola Company, contained toxins, including lindane, DDT, malathion and chlorpyrifos pesticides that can contribute to cancer, a breakdown of the immune system and cause birth defects. Tested products included Coke, Pepsi, 7 Up, Mirinda, Fanta, Thums Up, Limca, and Sprite. CSE

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found that the Indian-produced Pepsi's soft drink products had 36 times the level of pesticide residues permitted under European Union regulations; Coca Cola's 30 times. CSE said it had tested the same products in the US and found no such residues. However, this was the European standard for water, not for other drinks. No law bans the presence of pesticides in drinks in India. The Coca-Cola Company and PepsiCo angrily denied allegations that their products manufactured in India contained toxin levels far above the norms permitted in the developed world. But an Indian parliamentary committee, in 2004, backed up CSE's findings and a government-appointed committee, is now trying to develop the world's first pesticides standards for soft drinks. Coke and PepsiCo opposed the move, arguing that lab tests aren't reliable enough to detect minute traces of pesticides in complex drinks. On December 7, 2004, India's Supreme Court ruled that both PepsiCo and competitor The Coca-Cola Company must label all cans and bottles of the respective soft drinks with a consumer warning after tests showed unacceptable levels of residual pesticides . Both companies continue to maintain that their products meet all international safety standards without yet implementing the Supreme Court ruling. As of 2005, The Coca-Cola Company and PepsiCo together hold 95% market share of soft-drink sales in India. PepsiCo has also been alleged to practice "water piracy" due to its role in exploitation of ground water resources resulting in scarcity of drinking water for the natives of Puthussery panchayat in the Palakkad district in Kerala, India. Local residents have been pressuring the government to close down the PepsiCo unit in the village. In 2006, the CSE again found that soda drinks, including both Pepsi and Coca-Cola, had high levels of pesticides in their drinks. Both PepsiCo and The Coca-Cola Company maintain that their drinks are safe for consumption and have published newspaper advertisements that say pesticide levels in their products are less than those in other foods such as tea, fruit and dairy products. In the Indian state of Kerala, sale and production of Pepsi-Cola, along with other soft drinks, was banned by the state government in 2006[, but this was reversed by the Kerala High Court merely a month later. Five other Indian states have announced partial bans on the drinks in schools, colleges and hospitals.

Company profile: R.K.J. GroupOverview of R.K.J. Group

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Ravi K Jaipuria (RKJ), one of PepsiCo Indias largest franchisee bottler, says that despite a slump in Pepsi sales, he is going ahead with capacity expansion plans with an investment of Rs 100 crore over a period of next six months. The investment will see setting up of two new plants through Varun Beverages (a bottling company of RKJ and part of the Rs 1,200-crore Jaipuria Group) at Bhiwadi and Jaipur in Rajasthan and also a foray into the manufacture of crowns and plastic shells for glass bottles, RKJ chairman Ravi Jaipuria told FE. One of the largest franchisee bottlers for Pepsi, the Jaipuria group collectively forms about 45 per cent of Pepsis total franchisee business. According to Varun Beverages president-finance Mr RP Gandhi, the company is spending Rs 60 crore to set up a new bottling plant at Bhiwadi, Rajasthan, with an installed capacity of 80 lakh cases. A 15-acre plot has already been acquired by the company and the plantcommissioned last monthis expected to come up by March 2004. Additionally, the company plans to raise capacities at its Kosi plant in UP by 30 lakh cases, pumping in an investment of Rs 15 crore. As part of its backward integration venture, Mr Jaipuria is setting up a new plant for manufacture of crowns and plastic shells at Ajmer Road, Jaipur, with an investment of Rs 25 crore. While admitting that Pepsis sales were hurt post-cola contamination controversy, Mr Jaipuria, however, maintained that it was difficult to assess whether the slump was due to the controversy or a lean monsoon. Weather has played a spoilt sport, too, and the season has been dull so we cant really say whether sales have been hit by the pesticides issue alone, he said, adding that otherwise 2003 has been an excellent year for soft drinks sales. With the new initiatives, the RKJ group which operates through two companiesVarun Beverages and Devyani Beverageshopes to achieve a sales turnover of Rs 600 crore by the end of 2004, and Rs 720 crore by 2004. The company posted a sales turnover of Rs 500 crore in 2002.

The RKJ group led by Mr Jaipuria has seven Pepsi bottling plants spread around the country in Greater Noida and Kosi (UP), Alwar and Jodhpur (Rajasthan), Goa, Dharwar (Karnataka) and Kathmandu. The total capacity at these units is about 220 lakh cases per year or 5,000 bottles per minute. Besides the soft drinks business, RKJ is also firmly entrenched in the foods and education business. Part of the Rs 1,200-crore Jaipuria Group, which has interests in diverse fields including Pepsi, Pizza Hut (hes the sole franchisee of Pizza Hut in North India) and DPS Schools, Mr Ravi Jaipuria has more recently set his eyes on the emerging dairy market.

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He has formed a joint venture company with brother Mr CK Jaipuria to bring in the French dairy major Candia into the country. It recently launched a range of ice-creams branded Cream Bell in the country. Apart from Mr Ravi Jaipuria, Mr CK Jaipuria is Pepsis largest franchisee bottler and owns Pepsi bottling units in Jammu, Vizag, Guntur and Delhi.

Hierarchy system of Mkt. DeptRA CE ADC TDM RA RA CE AVC TDM MDM UM EXECUTIVE DIRECTOR RA CE TC TDM

Before, we really go into individuals role and responsibilities we must be first clear about hierarchy and reporting system which is being shown through under given chart.

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As per the client RA is the front line person of sales organization. As per chart. A) B) C) D) E) F) RA is controlled and guided by C.E. C.E. Report to A.V.C. & TDM AVC Reports TDM on daily basis and also to Unit Manager on weekly basis. TC & ADC who have supporting roles reports to TDM and also to units manager. TDM Reports to unit Manager and also to executive Director. Unit Manager Reports to Executive Director.

PART B INDUSTRY PROFILE

Industry Profile: F.M.C.G. IndustryOverview of F.M.C.G. IndustryWE regularly talk about things like butter, potato chips, toothpastes, razors, household care products, packaged food and beverages, etc. But do we know under which category these things come? They are called FMCGs. FMCG is an acronym for Fast Moving Consumer Goods, which refer to things that we buy from local supermarkets on daily basis, the things that have high turnover and are relatively cheaper.

F.M.C.G. Concept:FMCG industry, alternatively called as CPG (Consumer packaged goods) industry primarily deals with the production, distribution and marketing of consumer packaged goods. The Fast Moving Consumer Goods (FMCG) are those consumables which are normally consumed by

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the consumers at a regular interval. Some of the prime activities of FMCG industry are selling, marketing, financing, purchasing, etc. The industry also engaged in operations, supply chain, production and general management.

FMCG industry economyFMCG industry provides a wide range of consumables and accordingly the amount of money circulated against FMCG products is also very high. The competition among FMCG manufacturers is also growing and as a result of this, investment in FMCG industry is also increasing, specifically in India, where FMCG industry is regarded as the fourth largest sector with total market size of US$13.1 billion. FMCG Sector in India is estimated to grow 60% by 2010. FMCG industry is regarded as the largest sector in New Zealand which accounts for 5% of Gross Domestic Product (GDP).

Common FMCG products:Some common FMCG product categories include food and dairy products, glassware, paper products, pharmaceuticals, consumer electronics, packaged food products, plastic goods, printing and stationery, household products, photography, drinks etc. and some of the examples of FMCG products are coffee, tea, dry cells, greeting cards, gifts, detergents, tobacco and cigarettes, watches, soaps etc.

Market potentiality of FMCG industrySome of the merits of FMCG industry, which made this industry as a potential one are low operational cost, strong distribution networks, presence of renowned FMCG companies. Population growth is another factor which is responsible behind the success of this industry.

Leading FMCG companiesSome of the well known FMCG companies are Sara Lee, Nestl, Reckitt Benckiser, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi and Mars etc.

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An overview of the food processing industryThough India is the world''s second largest producer of fruits and vegetables, hardly five percent of the produce is processed. India is the land of spices producing all varieties worth over Rs. 3,500 crore ($900 million) amounting to 25-30 percent of the world production, which is processed for value-addition and export. It grows 22 million tonnes of oilseeds covering most of the varieties. Other important plantation products include tea, coffee, cocoa and cashew. According to estimates, 30 per cent of the annual produce of vegetables and fruits of India is wasted due to lack of preservation facilities. This is equal to the annual produce of fruits and vegetables of the whole of UK! This fact alone indicates the vast scope that exists in food processing technology in terms of cold chains and food preservation industry. The Indian food industrys sales turnover stood at Rs 140,000 crore in the year 2000. It is estimated that this industry requires about Rs 29,000 crore in investment over the next five years to create necessary infrastructure, expand production facilities and stateof-the-art- technology to match international quality and standards. According to official statistics, India exported processed fruits and vegetables worth Rs 6000 million in 1999-2000. The horticulture production is around 102 million tonnes. Foreign investment since 1991, when economic liberalisation started, stood at Rs 8,800 crore. Products that have seen a growing demand especially in the Middle East countries include pickles, chutneys, fruit pulps, canned fruits and vegetables, concentrated pulps and juices, dehydrated vegetables and frozen fruits and vegetables. Among plantations in India, tea is a major foreign exchange earner. India is the largest producer and exporter of black tea. In coffee India is the second largest producer of coffee in the world after Brazil. With the announced increase in excise duty to 70 percent from 35 percent, the greatest worry of the Indian tea and coffee industry has been removed, that of the removal of quantitative restrictions from 1 Aril 2001. In the face of these India tea and coffee would have faced stiff competition within the country as well as from countries like Sri Lanka in tea and from Brazil in coffee. The biggest bottleneck in expanding the food processing sector, in terms of both investment and exports, is lack of adequate infrastructure. Without a strong and dependable cold chain vital sector like food processing industry, which is based mostly on perishable products cannot survive and grow. Even at current level of production, farm produce valued at Rs 70,000 million is wasted every year because there are not enough storage, transportation, cold chain facilities and other infrastructure supports. Cold chain facilities are miserably inadequate to meet the increasing production of various perishable products like milk, fruits, vegetables, poultry, fisheries etc. Agriculture and agro products remain the most important sector of the Indian economy. They contribute nearly one third of the GDP and accounts for 64 percent of the workforce.

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FMCG Products and Categories- Personal Care, Oral Care, Hair Care, Skin Care, Personal Wash (soaps); - Cosmetics and toiletries, deodorants, perfumes, feminine hygiene, paper products; - Household care fabric wash including laundry soaps and synthetic detergents; household cleaners, such as dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellents, metal polish and furniture polish; FMCG in 2006 The performance of the industry was inconsistent in terms of sales and growth for over 4 years. The investors in the sector were not gainers at par with other booming sectors. After two years of sinking performance of FMCG sector, the year 2005 has witnessed the FMCGs demand growing. Strong growth was seen across various segments in FY06. With the rise in disposable income and the economy in good health, the urban consumers continued with their shopping spree. - Food and health beverages, branded flour, branded sugarcane, bakery products such as bread, biscuits, etc., milk and dairy products, beverages such as tea, coffee, juices, bottled water etc, snack food, chocolates, etc. - Frequently replaced electronic products, such as audio equipments, digital cameras, Laptops, CTVs; other electronic items such as Refrigerator, washing machines, etc. coming under the category of White Goods in FMCG; Sector Outlook FMCG is the fourth largest sector in the Indian Economy with a total market size of Rs. 70,000 crores. FMCG sector generates 5% of total factory employment in the country and is creating employment for three million people, especially in small towns and rural India.

Analysis of FMCG SectorStrengths: 1. Low operational costs 2. Presence of established distribution networks in both urban and rural areas 3. Presence of well-known brands in FMCG sector

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Weaknesses: 1. Lower scope of investing in technology and achieving economies of scale, especially in small sectors 2. Low exports levels 3. "Me-too" products, which illegally mimic the labels of the established brands. These products narrow the scope of FMCG products in rural and semi-urban market. Opportunities: 1. Untapped rural market 2. Rising income levels, i.e. increase in purchasing power of consumers 3. Large domestic market- a population of over one billion. 4. Export potential 5. High consumer goods spending Threats: 1. Removal of import restrictions resulting in replacing of domestic brands 2. Slowdown in rural demand Tax and regulatory structure

F.M.C.G. in India.

The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the economy. A well-established distribution network, intense competition between the organized and unorganized segments characterize the sector. FMCG Sector is expected to grow by over 60% by 2010. That will translate into an annual growth of 10% over a 5year period. It has been estimated that FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores in 2010. Hair care, household care, male grooming, female hygiene, and the chocolates and confectionery categories are estimated to be the fastest growing segments, says an HSBC report. Though the sector witnessed a slower growth in 2002-2004, it has been able to make a fine recovery since then. For example, Hindustan Levers Limited (HLL) has shown a healthy growth in the last quarter. An estimated double-digit growth over the next few years shows that the good times are likely to continue. Growth Prospects With the presence of 12.2% of the world population in the villages of India, the Indian rural FMCG market is something no one can overlook. Increased focus on farm sector will boost rural incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure facilities will improve their supply chain. FMCG sector is also likely to benefit from growing demand in the market. Because of the low per

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capita consumption for almost all the products in the country, FMCG companies have immense possibilities for growth. And if the companies are able to change the mindset of the consumers, i.e. if they are able to take the consumers to branded products and offer new generation products, they would be able to generate higher growth in the near future. It is expected that the rural income will rise in 2007, boosting purchasing power in the countryside. However, the demand in urban areas would be the key growth driver over the long term. Also, increase in the urban population, along with increase in income levels and the availability of new categories, would help the urban areas maintain their position in terms of consumption. At present, urban India accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 34%. However, rural India accounts for more than 40% consumption in major FMCG categories such as personal care, fabric care, and hot beverages. In urban areas, home and personal care category, including skin care, household care and feminine hy it is estimated that processed foods, bakery, and dairy are long-term growth categories in both rural and urban areas. giene, will keep growing at relatively attractive rates. Within the foods segment Indian Competitiveness and Comparison with the World Markets The following factors make India a competitive player in FMCG sector: Availability of raw materials Because of the diverse agro-climatic conditions in India, there is a large raw material base suitable for food processing industries. India is the largest producer of livestock, milk, sugarcane, coconut, spices and cashew and is the second largest producer of rice, wheat and fruits &vegetables. India also produces caustic soda and soda ash, which are required for the production of soaps and detergents. The availability of these raw materials gives India the location advantage. Labor cost comparison

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Low cost labor gives India a competitive advantage. India's labor cost is amongst the lowest in the world, after China & Indonesia. Low labor costs give the advantage of low cost of production. Many MNC's have established their plants in India to outsource for domestic and export markets.

Top- Ten F.M.C.G. Co.S. NO. Companies 1. 2. 3. 4. 5. 6. 7. 8 9. 10. Hindustan Unilever Ltd. ITC (Indian Company) Nestl India GCMMF (AMUL) Dabur India Asian Paints (India) Cadbury India Britannia Industries Procter & Gamble Hygiene and Health Care Marico Industries Tobacco

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Tropicana History

Tropicana was founded in 1947 by Anthony Rossi as a Florida fruit packaging business. In 1954 Rossi pioneered a pasteurization process for orange juice. He started his own fruit packing business and shipped jars of sectioned fruit and fresh juice to hotels and restaurants in refrigerated trucks. One of his first customers, the Waldorf-Astoria Hotel, had a standing order for 1,000 gallons of juice and fruit jars each week. In 1954, his team of engineers developed a new process called flash pasteurization, which raises the temperature of the juice for a very short time, making it safe for an extended shelf life. For the first time, consumers could enjoy the fresh taste of pure not-from-concentrate 100% Florida orange juice in a ready-to-serve package. Once that challenge was met, Rossi found unique and interesting ways to get Tropicana Pure Premium orange juice to New York as quickly as possible. The S.S. Tropicana, a tanker ship to transport the chilled juice, and the "Great White" Tropicana Train, still an icon on the Eastern seaboard of the United States, are two transportation innovations that helped build Pure Premium to its megabrand status. The juice, Tropicana Pure Premium, is the companys flagship product and is the number three most sold item in America's grocery stores. Today, Tropicana products are enjoyed almost everywhereNorth America, Latin America, Europe and Asia. PepsiCo acquired Tropicana, the only truly global juice business (including the Dole juice business) in August 1998.

Why Does Tropicana Taste So Good?Tropicana is 100% Pure and Natural Orange Juice. That's it. That's our secret. Our juice is made from fresh oranges that are selected, not just picked, from over 400 different Florida groves. The quality of our fruit combined with our unique blending capabilities ensures that amazing, straight-from-the-orange taste everybody loves. That's how it's been for over 50 years, and that's how it's going to stay

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ADVERTISEMENT STRATEGYThe aim of advertising is to bring the advertised the product as well as features, uses and services to notice of the consumer. Advertising is any paid form of non-personal presentation or promotion of ideas, goods or services by an identified sponsor. Advertising aims at drawing attention to a product. It is the most visible marketing tool. Which seeks to transmit an effective market from the marketer to a group of individuals. The marketers paid responding the advertising activity. Advertising: unlike salesman ship that interacts with buyer face to face is non-personal. It is directed as a mass audience and not at individuals as in personal setting. In modern business as Indian Economy is opening up the competition is hooting up, Coke & Pepsi have made forced entry in the soft drinks industries. Both have greatly affected the advertising activities. There the new was cry if the Cola combatants as they continue these bottle for the Rs. 3000 cr. Soft drink market. That they have made the right choice. The advertising strategy of Pepsi has always been aggressive where as the ad of Coke has been slow, artistic and straightforward. The goal of Pepsi ad has always to attract teenagers as against Coke grave to all consumers attention. There have been three motives of Coke ad To make it acceptable to all. Make it available to all arms where its required. To fix up a very moderate and reasonable price.

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DISTRIBUTION CHANNELThere are two marketing channels that involves in the transfer of product from the producer to customer. The two marketing channel intermediaries are known as distributor and retailer. PepsiCo distribution network had 6 lakhs outlets across the country during Eyoo which its planning to increase to 7.5 lakhs by Eyoo on the other hand Coca- Cola had 6.5 lakh outlets across the country in Eyoo which the company is planning to increase 8 lakh by Eyoo. Distributor Distributor are agents of the country who makes orders to the company with the help of paying in advance through draft, stock the products in their go down and supply them to outlets through their team of salesman who are allowed to sell company products to retailers in a specified area. The company divides the area into rules. Every rules is concerned by one unit i.e. one salesman, one delivery, one driver, one helper etc. Company finds the targets for each distributors according to market size, market potential last year sales growth consumption a deposit of empties. The company evaluates their distributor at the end of the year and makes plans for next year. Company has agreement with the distributor before appointing them. Distributor are awarded with a fair margin of Rs.9% for their service company gives many gifts like hand bags, T- shirt, caps etc. If the distributor is not completing with the condition of these agreement, company may retire the area of distributors or may even terminate the relationship.

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RetailersRetailers are sold particular soft drinks. The sale of B.S.D. depend a lot entirely on retailers wish for instance if retailers does not keep Pepsi cola and if his shop is at the prime location then certainly the customer with turn towards other cola drinks etc. This all goes to prove that retailers are king. So retailer requires special focus from the company. PepsiCo not only sell the flavors but also tries to sell the glass bottles and carats to the retailers. PepsiCo provides affair margin of Rs 24 per carats to the retailers so that retailers can maintain adequate amount of ready stock and quick rotation of glass bottle could be facilitated.

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About the Organized Fruit Juice MarketThe branded fruit juice market in India is estimated to be worth Rs 1500 crore organized fruit beverage market (nectars, drinks and juices combined) and the segment is growing at about 30 per cent per annum. Big players like Dabur, Pepsi, Godrej and Parle Agro are already in the market and in view of the swift growth in the market, newcomers like Surya Foods and Agro, Mother Dairy, Ladakh Foods; Pioma Industries have come into the market with new products in the recent years. Amit Burman, Chief Executive Officer, Dabur Foods, told Food & Beverage News in an interview that the market share of Dabur's Real Fruit juice is now 60 per cent. No doubt Dabur's Real Fruit juice is the market leader followed by Pepsi's Tropicana. The two major fruit juice makers in India, Tropicana and Dabur are going all out to tease Indian taste buds with ethnic flavors. However, Godrej's Jumpin is slowly achieving its space in the fruit juice market. Godrej Industries Foods Division has introduced fruit juices under the Xs brand, which earlier only consisted of nectars. Parle Agro's Frooti and N-Joi too are doing well in the market. Delhi NCR-based Surya Foods and Agro Ltd, manufacturers of Priyagold biscuits, has forayed into the juices segment. Mother Dairy has recently launched the Safal brand of juices. Safal is currently available in orange, mixed fruit, grape and an orange-apple combination. Ladakh Foods, makers of the Leh Berry seabuckthorn berry drink, has now launched an apple-peach combination juice and a mixed fruit variant. Ahmedabad-based Pioma Industries, makers of the Rasna brand of soft drink concentrates, test marketed a diluted mango juice in Andhra Pradesh recently. There are now racks filled with fruit juices, nectars and drinks.

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Product InformationTropicana Pure Premium :Tropicana Pure Premium is not-from-concentrate, which means it's 100% juice with no water added. Plus, an 8oz glass counts as two servings of fruit* and is an excellent source of Vitamin C. So add taste and nutrition to your morning with a delicious glass today. Available in a variety of flavors, Tropicana Pure Premium is available in Orange Juice, Grapefruit Juice, and Orange Juice Blended Flavors.

Tropicana Pure Premium (orange juice)Tropicana Pure Premium orange juice is made from one thing. Oranges. With a strong history of great taste and quality, no wonder it's America's #1 selling orange juice. Available in a variety of pulp levels to satisfy everyone in your family: Original with No Pulp , Homestyle with Some Pulp, and Grovestand with Lots of Pulp. Also look for our Calcium fortified products: Calcium + Vitamin D with No Pulp, and Grovestand (Lots of Pulp) with Calcium.

Tropicana Pure Premium (grapefruit juice)Add a glass of refreshing Tropicana Pure Premium 100% Pure Grapefruit Juices to your healthy diet. One 8oz glass provides a full day's supply of Vitamin C, is naturally fat free and 90 calories per serving. And Tropicana Pure Premium Grapefruit Juice is not from concentrate, so there's no water added.

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Amity International Business School Try Tropicana Pure Premium Sweet Grapefruit, Ruby Red Grapefruit and Golden Grapefruit 100% Juice.

Tropicana Pure Premium (orange juice blends)Tropicana Pure Premium Blends are the perfect balance of fresh tasting, pure squeezed orange juice, with a splash of flavor. Tropicana Pure Premium Blends are an excellent source of vitamin C, and with no added sweeteners, they are a delicious healthy treat for the entire family. Enjoy a glass any time of the day. The available flavors are Orange Pineapple Orange Tangerine Orange Strawberry Banana

Specialty Orange JuiceTropicana is dedicated to meeting the individual nutritional needs of you and your family while bringing you our amazing straight-from-the-orange taste. The newest addition to the Tropicana family, Tropicana Pure Premium with Fiber, can help your family meet their daily fiber needs!

Specialty Orange Juice (fiber) acid)

Specialty Orange Juice (low

Tropicana Pure Premium Orange Juice with Fiber is the winner of Health Magazine's 2007 Best of Food Award in the Juice category! Here's why: A convenient and easy way to incorporate more fiber into your diet, with the freshsqueezed taste and quality of Tropicana Contains 3 grams of added fiber, the same amount of fiber as a whole orange, in every 8 oz. glass

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Helps the digestive system stay healthy and regularContains juicy bits of delicious pulp

Rediscover your favorite part of the morning. Tropicana Pure Premium Low Acid Orange Juice is alive with the smooth taste of 100% pure squeezed orange juice, plus all the vitamins and minerals you expect from Tropicana - with less acidity. Reduced acid 100% pure squeezed orange juice Smooth great taste Full day's supply of vitamin C and a good source of calcium All of the nutrients of regular orange juice

Specialty Orange Juice(healthy hearts) & (healthy kids)

Tropicana Healthy Heart is the first national orange juice that is an excellent source of Omega-3 EPA & DHA* which help to promote cardiovascular health. In fact, health professionals recommend eating a variety of foods containing Omega-3 fatty acids as part of a heart healthy diet. And of course, Healthy Heart maintains that amazing straight-from-the-orange taste of Tropicana Pure Premium with the natural nutrients found in 100% pure squeezed orange juice. *Contains 50mg of EPA and DHA combined per serving, which is 30% of the 160mg Daily Value for a combination of EPA and DHA based on statements from the institute of medicine.

Get your kids' day off to a great start with the natural taste and nutrition of Tropicana Pure Premium Healthy Kids Orange Juice. Here is a tasty way for your kids to get the important vitamins they need. Tropicana Pure Premium Healthy Kids Orange Juice is specially formulated with a taste kids love. It has essential vitamins and minerals to support their growing bodies. An excellent source of vitamins A, C and E and calcium Supports a healthy immune system Builds strong bones with FruitCal, a highly absorbable form of calcium that growing bones need to be strong

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Specialty Orange Juice (antioxidant advantage)Tropicana Pure Premium Antioxidant Advantage Orange Juice gives you the essential nutrients needed to maintain your body's first line of defense- a healthy immune system. In addition to the nutrients found in 100% pure squeezed orange juice, Antioxidant Advantage contains 3 times the antioxidant nutrient content of regular orange juice* - and that's just one of the many reasons to enjoy a glass today. It's an excellent source of essential antioxidants (vitamin C and E) and selenium to help protect against free radicals to promote healthy cells and tissues. It helps reduce the effects of oxidation. It's naturally fat free, cholesterol free and sodium free.

Light 'n HealthyManaging your weight does not mean you have to sacrifice taste! With half the calories of regular orange juice, Tropicana Light 'n Healthy orange juice beverages are a delicious way to help achieve your weight management goals with the amazing-straight-from-the-orange you would expect from Tropicana. In addition, it is packed with vitamin C and has potassium - both valuable nutrients that are found in regular orange juice. Start you day out light with Tropicana Light 'n Healthy.

Light 'n Healthy, with Calcium Less Sugar & Calories Start your day off with great tasting Tropicana Light 'n Healthy with Calcium. It has one-half less sugar and calories than orange juice, contains a full day's supply of Vitamin C and is an excellent source of calcium. Plus Tropicana uses Fruit Cal, a more absorbable form of calcium than that in calcium carbonate supplements (the most popular calcium supplements).

Ingredients :

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Amity International Business School : Filtered water, not from concentrate pasteurized orange juice, natural flavors, acesulfame potassium and sucralose (Splenda); Vitamins & Minerals: Fruit Cal (calcium hydroxide. Malic acid, citric acid), potassium citrate, ascorbic acid (vitamin C), beta-carotene, tocopherol (vitamin E), magnesium phosphate, niacin amide (vitamin B3), thiamin hydrochloride (vitamin B1), riboflavin (vitamin B2), and pyridoxine hydrochloride (vitamin B6)

Light'n Healthy, with Pulp Less Sugar & Calories Start your day off with great tasting Tropicana Light 'n Healthy with Pulp. It has one-half less sugar and calories than orange juice. Tropicana Essentials Light 'n Healthy with Pulp is a great way to get your vitamin C with the full taste of plump juicy pulp.

Ingredients: Filtered water, not from concentrate pasteurized orange juice, modified food starch, citric acid, malic acid, natural flavors, sucralose (Splenda), and acesulfame potassium; Vitamins & Minerals: potassium citrate, ascorbic acid (vitamin C), beta-carotene, tocopherol (vitamin E), magnesium phosphate, niacin amide (vitamin B3), thiamin hydrochloride (vitamin B1), riboflavin (vitamin B2), and pyridoxine hydrochloride (vitamin B6)

Tropicana Organics Start your day right with the great taste of Tropicana Organic Orange Juice! Our orange juice is made from delicious oranges grown on certified organic farms. Tropicana 100% pure & natural organic orange juice contains a full day's supply of Vitamin C and is a good source of Potassium.

Tropicana, Organic (Orange Juice) & (Organic Orchard Medley)

At Tropicana we know great tasting juice. We also know the importance of being sure you are protecting your family from harmful food practices.

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Amity International Business SchoolWith the launch of Tropicana Organics, we now offer great-tasting, 100% pure & natural juice, grown on certified organic farms. That means you can be sure no synthetic pesticides or other harmful chemicals are used. Just the pure delicious taste of Tropicana Organic Orange Juice & Orchard Medley. Tropicana Organics - Nurturing Your Family Inside and Out! Ingredients:

Organic orange juice from concentrate (filtered water and concentrated organic orange juice) and pure pasteurized organic orange juice.

A delicious combination of crisp apples and juicy pears, Tropicana Organic Orchard Medley is a great-tasting, all-natural juice your family can enjoy throughout the day. Made with fruits grown on certified organic farms, Tropicana Organic Orchard Medley is a delicious way to nurture your family inside & out.

Ingredients: Filtered water, organic pear juice concentrate, organic apple juice concentrate, naturalflavors and ascorbic acid (vitamin C)

Other Tropicana Products1- Chilled Juices and Juice Beverages: Assorted You know Tropicana makes delicious, pure squeezed orange juice, but did you know Tropicana brings you other high quality juices and juice beverages as well? And because it's Tropicana, you know it is made from the best fruits to bring you delicious flavor. Plus Tropicana juices in the chilled aisle at your grocer are kept cold to preserve the nutrients and fresh taste. Once you try them, you'll never want to drink anything else.

a- Orchard style lemonade c- Home style lemonade

b- Cranberry juice cocktail d- Orchard style apple

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e- Grape

2- Refrigerated Juice Drinks

1- Fruit Punch 4- Orangeade 6- Peach Orchard Punch 9- Light Fruit Punch

2- Lemonade 5- Tropical Punch 7- Light Lemonade

3- Berry Punch

8-Light Berry Blend

10- Grape Punch

Other Tropicana Products3. Non-Refrigerated Juice Drinks

100% Orange Juice 100% Orange Juice with Calcium

100% Apple Juice 100% Ruby Red Grapefruit

100% Fruit Punch

100% Strawberry Orange

100% Pineapple Orange

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Light Apple

Light Mixed Berry

Cranberry Cocktail

Grape

Ruby Red Grapefruit

Pineapple Orange

4. (Tropicana Pure)Innocent fruit can feel like a guilty pleasure with Tropicana Pure - 100% juice in 4 flavors. We begin by hand selecting the finest produce of the season. Then our juice blenders artfully craft vibrant flavor pairings that will give your taste buds a lift and your body a boost.

Available in: Pomegranate Blueberry Mango Orange

Triple Berry Valencia Orange

Other Tropicana Products5. (Tropicana Fruit Squeeze)Tropical Tangerine Pink Grapefruit Summer Lemon Lime Raspberry

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6. (Tropicana Fruit Smoothies)Mixed Berry Strawberry Banana

7. (Tropicana Twister)Tropicana Twister - Invigorating Refreshment! Tropicana Twister is the delicious, invigorating juice drink with B vitamins, antioxidant vitamins C and E, and a hit of real Tropicana fruit juice. Tropicana Twister is available in large 1.75L Multi-Serve plastic bottles and convenient 20oz. Single-Serve plastic bottles.

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RESEARCH METHODOLOGY

RESEARCH METHODOLOGYResearch methodology is a procedure designed to the extent to which it is planned and evaluated before conducting the inquiry and the extent to which the method for making decisions is evaluated before conducting the inquiry and the extent to which the method for making decisions is evaluated. The research methodology if scientifically developed enables the research to establish with high degree of confidence, cause and effect relationship between the research between the research activities and observed outcomes.

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Defining research problem:There are two types of research problem, viz., those that relate to states of nature and those that relate to relationship between variables. At the very outset the researcher must single out the problem he wants to study, i.e., he must decide the general area of interest or aspect of a subjectmatter that he would like to inquire into, initially the problem may be stated in a broad general way and then the ambiguities, if any, relating to the problem be resolved. Then, the feasibility of a particular solution has to be considered before a working formulation of the problem can be set up. The best way of understanding the problem is to discuss it with ones own colleagues or with those having some expertise in the matter. In an academic institution the researcher can seek the help from a guide who is usually an experienced man and has several research problems in mind.

Extensive literature survey:Once the problem is formulated, a brief summary of it should be written down. At this juncture the researcher should undertake extensive literature survey connected with the problem. For this purpose, the abstracting and indexing journals and published or unpublished bibliography are the first place to go to. Academic journals, conference proceedings, government reports, books etc. most be tapped depending on the nature of the problem. Several journals and newspapers related to economic market like economic times and brand equity came into use in this phase. Previous reports related to the subject helped in understanding the scenario.

Development of working hypothesis:It is essential for every researcher to formulate certain hypothesis about the market where he has to perform the survey. These hypotheses are formulated on the basis of certain secondary data and the previous market research performed in that market. Magazines and the newspaper too the important source for in formulating the hypothesis. Thats why I too was having certain hypothesis before research, which are as follows: 1. The market of Tropicana must be higher than Other Brand of Juices. 2. The distribution of Tropicana should be more efficient than that of Real Juice.

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Amity International Business School3.

The retailer is satisfied by Tropicana than Real Juice.

4. The promotional schemes of Tropicana are more efficient than Other Brand of Juices. Based on these hypotheses, the researcher has defined the research type and others parts of research methodology which play a vital role in research.

Preparation of research design:A research design is the overall plan or programmed of research. It includes an outline of what the investigator will do from writing the hypothesis and their operational implications to the final analysis of data. Various uses of having a research design are as follows: It provides answers to various questions. It acts as a standard guidepost It helps in carrying out research validity, objectively, accurately and economically.

The research problem having been formulated in clear cut terms, the research will be required to prepare a research design, i.e., he will have to state the conceptual structure within which the research should be conducted. The preparation of such a design facilitates research to be as efficient as possible yielding maximal information. In other words, the function of research design is to provide for the collection of relevant evidence with minimal expenditure of effort, time and money.

Specifying data requirement:The first job is to ask certain questions and find suitable answers for them. we asked ourselves: what specific data will be necessary to test the hypothesis or establish relationship in which we are interested? What variables are to be measured? We have seen that: 1 2 Weather the population of the study is properly defined? Weather the population units possess the desired data?

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Amity International Business School 3 Is there any other more reliable and economical way to get the required data?

Determining sample design:i.

Type of universe: The first step in developing any sample design is to clearlydefine the set of objects, technically called the universe, to be studied. The universe can be finite or infinite. In finite universe the number of items is certain, but in case of an infinite universe the number of items is infinite, i.e., one cannot have any idea about the total number of items.

(In this research the universe is market of juice in Noida) Sampling unit: A decision has to be taken concerning a sampling unit before selectingsample. Sampling units may be a geographical one such as state, district, village, etc., or a construction unit such as house, flat, etc., or it may be a social unit such as family, club, school, etc., or it may be an individual.

ii.

Source list: It is also known as sampling frame from which sample is to be drawn.It contains the names of all items of a universe (in case of finite universe only). If source list is not available, researcher has to prepare it.

iii.

Size of sample: This refers to the number of items to be selected from the universeto constitute a sample. This is a major problem before a researcher. The size of sample should neither be excessively large, nor too small. It should be optimum.

In case of my research project the sample size was 30- (number of outlets) and 100 (consumers) in NOIDA.

Collecting the data:

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Amity International Business School In dealing with any real life problem it is often found that data at hand are inadequate, and hence, it becomes necessary to collect data that are appropriate. There are several ways of collecting the appropriate data, which differ considerably in context of money costs, time and other resources at the disposal of the researcher.

Primary data can be collected through following techniques: 1. By observation: This method implies the collection of information by way of observation, without interviewing the respondents. The information obtained relates to what is currently happening and is not complicated by either the past behavior or future intentions or attitude of respondents. This method is not involved in our research.

2. Through personal interview: A rigid procedure has been followed and answers to a set of preconceived questions have been sought through personal interview. This method of collecting data is usually carried out in a structured way where output depends upon the ability of the interviewer to a large extent 3. Through telephonic interviews: This method of collecting information involves contacting the respondents on telephone itself. 4. By mailing of questionnaires: The researcher and the respondents do come in contact with each other if this method of survey is adopted. Questionnaires are mailed to the respondents with a request to return after completing the same. This method is not also involved in our research.

5. The use of questionnaire was very limited as schedules were mostly used. Through schedule: Under this method the enumerators are appointed and given training.They are provided with schedules containing relevant questions. These enumerators go to

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Amity International Business School respondents with the schedules. Data is collected by filling up the schedules by enumerators on the basis of replies given by respondents.

Analysis of data:After the data have been collected, the researcher turns to the task of analyzing them. The analysis of data requires a number of closely related operations such as establishment of categories, the application of these categories to raw data through coding, editing, classifying and finally tabulating the collected data.

Preparation of final report:Finally, the report containing all the details of research is prepared containing following parts:a)

Introduction: It contains all the information about the organization and summary ofresearch for managerial assistance.

b)

Summary of finding: After introduction there would appear a statement of findingsand recommendations in non-technical language.

c)

Main report: The main body of the report has been presented in logical sequence andbroken-down into readily identifiable sections.

d)

Conclusion: towards the end of the main text, conclusion of whole research isunderlined.

Some points to be taken care1. Product placed at eye-catching position (front/counter selling) 2. Product to follow the FIFO rules (first in first out), avoid expiry and no dumping. 3. If shopkeeper not sold product in two month then supply should be decrease or less.

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Priority according medium/channel1. 2. 3. 4. Bakery Modern trade High end-foot fall Eatery

Fast moving and slow moving product of Tropicana in NOIDA Fast movingMango, orange, guavas , mixed fruit

Slow movingGrape, peach , pine apple , litchi .

Quality order1. Premium gold 2. Premium 3. Nectar (juicy)

Precautions to be taken care by sellers/retailer1. 200 ml. Placed on top self 2. Dust control, hygiene caution, safe packing (easy handling, safety of the base & corner of the pack) 3. Avoid from the sunlight 4. 200 ml pack keeps six in a row 5. For one liter it should be 1 to 5 6. Prevention from pesticides

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Graph representations & analysis Of survey data

QUISTIONNIAREPlease attention for a while, there are some interesting question given below to get your opinion about your health consciousness.Ques:Ans: Do you think a natural fruit juice is the best option to get remedy from weakness? yes no

Ques: Do you think fullproof scientific packing is more reliable than open glass juice? Ans: yes no

Ques: Which reliable branded juice you prefer for good health? Ans: Ques: Pepsi Your preference among these level of juices. Real

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Amity International Business SchoolAns: 100% fruit contents (20- 80)% 80% juice Juice based drink

Ques: How you know about any branded juice? Ans: Through Media Window-shopping Ques: Which flavors you like most? Ans: Orange Apple Mango Others Brand name Oral Communication

Ques: In which season you most likely to prefer? Ans: Spring Winter Summer

Ques: Do you feel that packed juices are cost effect in term nutrition & hygiene concern? Ans: Yes No

Ques:

Do you think a natural fruit juice is the best option to get remedy from weakness?

Ans:

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Ques: Do you think foolproof scientific packing is more reliable than open glass juice? Ans:

Ques: Which reliable branded juice you prefer for good health? Ans:

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Ques:

Your preference among these level of juices.

Ans:

Ques: How you know about any branded juice?

Ans

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Ques: Which flavors you like most?

Ans:

Ques: In which season you most likely to prefer?

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Ans:

Ques: Do you feel that packed juices are cost effect in term nutrition & hygiene concern?

Ans:

LimitationsSince the project was completed with zeal and enthusiasm yet the project suffered certain limitation.Following are the limitations, which were faced by me during survey:

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Amity International Business School 1. The main problem to get the market for Tropicana is- there are a less number of highincome consumers. 2. Sometimes the retailer had no time, as they were busy. So they were reluctant to provide the information. 3. Responsive were hesitant to give the information under misapprehension. 4. Remote areas remained uncovered because it was not possible to cover them without vehicles.

In spite of all above limitation, all efforts have been made to present the actual scenario of market.

SuggestionsAfter the analysis of research area, the researcher came to know conclusion and the basis of these conclusions the researcher give the suggestions to the company, which is helpful for the establishment in the market. Though PepsiCo takes the main marketing of Tropicana but it should also concern for a separate department of promotion and selling at local market like NOIDA for better result.

Area sales manager should listen the complaint of retailer and should take remedial action.

Distribution channel should make the prompt Company should improve its relation with local persons to achieve publicity. Company should frame effective credit policy for every retailer to overcome the price objection of retailer.

Company should introduce the scheme of extra incentive for the sales person on the target quota basis.

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If the company takes care of the staff, the staff will take care of the customers

ConclusionTropicana is world no. 1 selling company among all the fruit juice products but in India like developing countries with low income level, there is not so easy to create a market immediately, but due to some financial boom there is a hope to get a good industry in near future. Company has to take care of retailer because they can sell anything if they are promoted. But due to indifference of the company towards retailer the Tropicana is losing its sales and the company has to take measure to overcome the problem of retailer to increase the sales of Tropicana.My overall conclusion is that Tropicana is willing to prove its supremacy in the market. Dealers are more or less happy with the service of Tropicana. They have confidence in the standard of quality that Tropicana has maintained over the other fruit juice, they feel; pride to disclose that people ask Tropicana instead of open glass juice.

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SWOT AnalysisS. W. O. T. ANALYSIS OF ORGANISATION

Strength:1. Strong brand image Tropicana is a world no. 1 juice industry. It in fiercely competitive beverage industry. It is highest spoken word after OK worldwide. This relationship in turn helps in increasing sale and maintains its number one position as a global brand. Strong brands also helps the sale peoples associated with Tropicana to have an edge over competitors associates in the market.1. Variety in flavors.

2. In the current market situation Tropicana has more variants. 3. It is a big Organization. 4. Capturing a Broad Market. 5. It is a Multinational Company. 6. Products are highly demanded in market. 7. PepsiCo handles marketing of Tropicana.

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Weaknesses:1. Service is not up to the mark. 2. Unable to break up the monopoly of Real juice. 3. Company not concentrates on the advertisement.

Opportunities:Juice markets : Research has shown that juice market has been growing at 20 percent whereas soft drink industry is growing at 68%. This needs offers new opportunity for the company to extend and have biggest profit margin. But still it can use this segment to increase the sale. People getting more and health conscious its also a factor for juice being the next big thing. A large number of consumers. Large market segment. By removing weaknesses company could be ultimate leader

Threats :1. Increased Competition. 2. Local juice companies have sets very low prices. 3. Peoples mind set-up for open glass juice. 4. Different offers and schemes provided by the other Fruit Juice companies.

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LEARNING EXPERIENCEI spent around seventy days in city of NOIDA for PepsiCo India Ltd. The output of this engagement knew the distribution system and market share of Tropicana in outlets. During my research period I realize that shops are connected with the PepsiCo brand but rarely for the new juice. This is the quality by virtue of which the rarely of Tropicana are so deep in India, but in my view some patience, some dedication, some projection, some marketing art, some application is also still needed in urban areas, city area. In few areas some improvisation is must. Transportation facility is good in NOIDA but in some outer areas facility is not good. In this area are suffering strong position of Pepsi product but in some areas there are shortage of Pepsi product. So retailer procures to sale another brand of soft drinks product. In this direction some improvement is needed by Tropicana Therefore the price of juice in increased to not avoidable extent. In summer especially in May, June, July, when the sun is burning vaguest, people want juice from shops because normal public will not afford always-fresh fruit in their houses. There are few features that make the great impact at my mind during survey of NOIDA . The dynamics of marketing was so adventurous that fulfilled the spend time with energy and joys.

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BIBILIOGRAPHYKotler Philip; Marketing Management; Prentice Hall India; 11th Edition. Chapter Sales promotion Kothari C.R.; Research methodology; New Age International Publishers 2nd Edition

MagazinesBusiness Today Business World

Web sites www.goggle.comwww.tropicana.com & www.tropicana.com/TRP_ProductInformation/

Www.pepsiworld.com www.indiajuice.com Www.pepsiworld-pepsibrand.com

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CASE STUDY Pepsi's Entry into India: A Lesson in GlobalizationAbstract:The case discusses the strategies adopted by the soft drinks and snack foods major PepsiCo to enter India in the late 1980s. To enter the highly regulated Indian economy, the company had to struggle hard to 'sell' itself to the Indian government. PepsiCo promised to work towards uplifting the rural economy of the terrorism affected north Indian state of Punjab by getting involved in agricultural activities. In addition, it made a host of other promises that made its proposal very attractive to the regulatory authorities. The case also discusses the criticisms levelled against the company, in particular, criticism of its failure to honour many of its commitments after it started operations in the country and after the liberalization of the Indian economy. Finally, the case takes a look at the contract farming initiatives undertaken by Pepsi since the 1990s and seeks to critically analyze the strategies used by the company to enter India.

Issues: understand the kind of strategy a multinational company develops to enter highly regulated economies that have immense market potential analyse the importance of formulating and selling a business proposal in such a manner that it becomes attractive to the regulatory authorities of a foreign country appreciate how and why a company changes its strategies in tune with changes in the regulatory environment of a foreign country understand the role big private sector corporations can play in the

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Amity International Business School development of the economies in which they operate, and the financial and social implications (reputation, goodwill) of doing so. The case is aimed at MBA/PGDBA students, and is intended to be part of the strategy and general management curriculum.

Contents:A Letter to Pepsi The Promises That Helped Pepsi Enter Pepsi's Promises - Keep Some, Break Some! India Liberalizes - A Boon For Pepsi Pepsi Goes Farming - Finally Doing Business on its Own Terms

Keywords:Pepsi, PepsiCo, Indian soft drink market, Globalisation, Entry strategy, Megamarketing, Lobbying, Contract farming, Political environment, India's liberalisation, Business environment .

"Convincing India that it needs Western junk has not been easy." 1 - A New Internationalist Magazine Article, commenting on Pepsi's struggle to enter India, in August 1988.

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A Letter to PepsiIn 1988, the New York office of the President of the multi-billion cola company PepsiCo received a letter from India. The company had been trying for some time to enter the Indian market - without much success. The letter was written by George Fernandes (Fernandes), the General Secretary of one of the country's leading political parties, Janata Dal. He wrote, "I learned that you are coming here. I am the one that threw Coca-Cola out, and we are soon going to come back into the government. If you come into the country, you have to remember that the same fate awaits you as Coca-Cola."2 This development did not seem to be a matter that could be ignored. PepsiCo's arch-rival and the world's number one cola company, Coca-Cola, had indeed been forced to close operations and leave India in 1977 after the Janata Dal came to power.3 Even in the late 1980s, India had a closed economy and government intervention in the corporate sector was quite high. However, multinational companies such as PepsiCo had been eyeing the Indian market for a long time for a host of reasons. As the major market for PepsiCo, the US, seemed to be reaching saturation levels, the option to expand on a global scale seemed to have become inevitable for the company. India was a lucrative destination since its vast population offered a huge, untapped customer base. During the late 1980s, the per capita consumption of soft drinks in India was only three bottles per annum as against 63 and 38 for Egypt and Thailand respectively. Even its neighbor Pakistan boasted of a per capita soft drink consumption of 13 bottles. PepsiCo was also encouraged by the fact that increasing urbanization had already familiarized Indians with leading global brands. Given these circumstances, PepsiCo officials had been involved in hectic lobbying with the Indian government to obtain permission to begin operations in the country. However, the company could not deny that many political parties and factions were opposed to its entry into the country. It had therefore become imperative for PepsiCo to come up with a package attractive enough for the Indian government.

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The Promises That Helped Pepsi EnterIn May 1985, PepsiCo had joined hands with one of India's leading business houses, the R P Goenka (RPG) group, to begin operations in the country. The company, along with the RPG group company Agro Product Export Ltd., planned to import the cola concentrate and sell soft drinks under the Pepsi label.

To make its proposal attractive to the Indian government, PepsiCo said that the import of cola concentrate would essentially be in return for exporting juice concentrate from operations to be established in the north Indian state of Punjab. In its proposal submitted to the Ministry of Industrial Development, company sources said that the objectives of PepsiCo's entry into India revolved around 'promoting and developing the export of Indian agro-based products and introducing and developing PepsiCo's products in the country.' However, the government rejected this proposal primarily on two grounds: one, the government did not accept the clause regarding the import of the cola concentrate and, two, the use of a foreign brand name (Pepsi) was not allowed as per the regulatory framework. The association with the RPG group too ended at this juncture. Not willing to sit quietly on the issue, PepsiCo put forward another proposal to the government a few months later.The company knew that the political and social problems4 that plagued Punjab were an extremely sensitive issue for India in the 1980s. PepsiCo's decision to link its entry with the development and welfare of the state was thus a conscious one, aimed at winning the government over. The fact that Punjab boasted a healthy agricultural sector (with good crop yields in the past) also played a role in PepsiCo's decision. Reportedly, the new proposal gave a lot of emphasis to the effects of PepsiCo's entry on agriculture and employment in Punjab. The company claimed that it would play a central role in bringing about an agricultural revolution in the state and would create many employment opportunities. To make its proposal even more lucrative, PepsiCo claimed that these new employment opportunities would tempt many of the terrorists to return to society...

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CONCLUSIONPepsi's Promises - Keep Some, Break Some!Pepsi began by setting up a fruit and vegetable processing plant at Zahura village in Punjab's Hoshiarpur district. The plant would focus on processing tomatoes to make tomato paste. Since the local varieties of tomatoes were found to be of inferior quality, Pepsi imported the required material for tomato cultivation. The company entered into agreements with a few big farmers (well-off farmers with large land holdings) and began growing tomatoes through the contract farming route (though the agro-climatic profile of Punjab was not exactly suitable for a crop like tomato, Pepsi had chosen the state because its farmers were progressive, their landholdings were on the larger side, and water availability was sufficient). Initially, Pepsi had a tough time convincing farmers to work for the company. Its experts from the US had to interact extensively with the farmers to explain how they could benefit from working with the company. Another problem, although a minor one, was regarding financial transactions with the farmers. When the company insisted on payments by cheque, it found out that as many as 80% of the farmers did not even have a bank account..!

India Liberalizes - A Boon For PepsiIn the early 1990s, the Government of India was facing a foreign exchange crisis. The country was finding it extremely difficult to borrow funds from the international markets due to a host of problems on the political, economic and social fronts.

Organizations like the International Monetary Fund agreed to help the Indian government deal with the financial crisis, on condition that it liberalized the Indian economy. As a result, the government decided to liberalize the economy. The removal of the numerous restrictions on foreign trade and the increased role of private equity in Indian markets were the two most prominent features of the government's new economic policy. Pepsi benefited from the economic changes in many ways. The removal of various restrictions meant that it no longer had to

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fulfill many of the commitments it had made at the time of its entry. The government removed the restrictions that bound Pepsi's investments in the soft drinks business to 25% of the overall investments and required it to export 50% of its production...

Pepsi Goes Farming - FinallyThough Pepsi attracted a lot of criticism, many people felt there was a positive side to the company's entry into India. According to a www.agroindia.org article, Pepsi's tomato farming project was primarily responsible for increasing India's tomato production. Production increased from 4.24 million tonnes in 1991-92 to 5.44 million tones in 1995-96. The company's use of high yielding seeds was regarded as one of the reasons for the increase in productivity in tomato cultivation during the same period. Commenting on the above issue, Abhiram Seth, [Seth, the company's Executive Director (Exports and External Affairs)] said, "When we set up our tomato paste plant in 1989, Punjab's tomato crop was just 28,000 tonnes, whereas our own requirement alone was 40,000 tonnes. Today, the state produces 250,000 tonnes. Per hectare yields, which used to be 16 tonnes, have crossed 50 tonnes." Pepsi was, however, not as successful in the chili contract farming venture that was started soon after the tomato venture stabilized...

Doing Business on its Own TermsThe company's contract farming initiatives and its focus on improving Punjab's agricultural sector seemed to indicate that Pepsi had been working towards fulfilling its pre-entry commitments. However, the reality was quite different.

In 2000, the company's exports added up to Rs 3 billion. The items exported included not only processed foods, basmati rice and guar gum , but also soft drink

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concentrate. Though the company did not make the figures public, in all probability, the portion of soft drink concentrate in its exports was much higher than that of any other product. In fact, the company met the soft drink concentrate requirements of many of its plants worldwide through its Indian operations. Even by 2000, of its annual requirement of 25,000 tonnes of potatoes per annum, Pepsi got only 3,000 tonnes from its contract farmers. Given these figures, it would be interesting to see how it planned to achieve its objectives of meeting its complete requirement of potatoes through the contract farming route by 2004

Doing Business on its Own TermsThe company's contract farming initiatives and its focus on improving Punjab's agricultural sector seemed to indicate that Pepsi had been working towards fulfilling its pre-entry commitments. However, the reality was quite different. In 2000, the company's exports added up to Rs 3 billion. The

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