Pepsico MPR Marketing Project
Pepsico MPR Marketing Project
REPORT
ON
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Certificate
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Acknowledgement
Thank you
HIMANSHI RAJE KURMI
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Declaration
i. The work contained in the report is original and has been done by me under the
general supervision of my supervisor.
ii. The work has not been submitted to any other Institution for any other
degree/diploma/certificate in this university.
iii. I have followed the guidelines provided by the university in writing the report.
iv. Whenever I have used materials (data, theoretical analysis and text) from other
sources, I have given due credit to them in the text of the report and giving their
details in the reference.
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INDEX
COLLEGE CERTIFICATE 2
COMPANY CERTIFICATE
ACKNOWLEDGEMENT 3
STUDENT DECLARATION 4
IX Conclusions 74-75
X Suggestions 76-77
BIBLIOGRAPHY 78
ANNEXURE 79-82
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CHAPTER – 1
EXECUTIVE SUMMARY
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EXECUTIVE SUMMARY
Today many new companies are coming in to existence and because of these the
competition is also growing rapidly. Because of this reason they have to compete
with their competitors constantly. In some industries the new companies may not
come into existence but the competition between the existing companies is
growing more and more. The soft drink industry is mainly suffering with this
particular problem. The Companies have to continuously compete with their
competitors to get good, market share and good profits. To face their competitors
they have to know their position and the competitor’s position in the market. For
this, the companies will compare itself with their competitor that means they will
do the comparative analysis in all aspects
I was carried out this project at Neeraj Enterprises, Bhopal. They are distributor of
PepsiCo beverage in the selected area of Bhopal.
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In this comparative analysis the researcher will take any two or more similar
products (That means the functioning of the products are almost same) and
compare the common and the similar features of the products to find out that which
the best one is.
In comparative analysis the Company will compare itself with the company which
is in the top position in that industry or which is top in the position in that
particular area or region; from this they can understand their position in that
industry. It will be very useful know what is the strength and weakness of the
Company and the company will try rectify the problems in order to increase their
performance to reach and to beat out that other company with whom they are
comparing their company.
SOFT DRINK
A Soft Drink (also referred to as soda, pop, soda pop or fizzy drink) is a non-
alcoholic beverage typically containing water and a flavoring agent. Many are
carbonated and sweetened, and may contain additional ingredients such as fruit
juice. Small amounts of alcohol may be present, but the level would generally
remain under 0.5 of the total volume for the drink to be considered non-alcoholic
Soft Drinks are most often consumed chilled, and sometimes at room temperatures.
Common Soft Drinks include cola, flavored water, sparkling water, iced tea, sweet
tea, sparkling lemonade (or other lemon- lime soft drinks), squash, fruit punch, root
beer, orange soda, grape soda, cream soda, and ginger ale.
SOFT DRINKS INDUSTRY IN INDIA
Soft Drinks Bounces back after a somewhat subdued performance in 2006 due to a
recurrence of the pesticides controversy, soft drinks sales bounced back strongly to
record double-digit volume growth in 2007. With carbonates growth back on a
positive unpaired curve alongside burgeoning sales of fruit/vegetable juice and
bottles water,
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Soft drinks showed impressive growth in 2007. Off-trade volumes grew slightly
faster than on trade volumes, driven by higher consumption of packaged and
branded soft drinks at home and on the go.
The emergence of supermarkets/hypermarkets, heavy consumer promotions and
various new product launches played a key role in driving off trade volume
growth. Bottled Water and Fruit/vegetable juice continue to be Star Performers
Soft drinks sales in 2007 were propelled by bottled water and fruit/vegetable juice
with their healthier positioning helping to drive sales of soft drinks. While
carbonates posted single digit growth in 2007, rebounding from the pesticides
controversy of 2006, it was bottled water and fruit/vegetable juice that stormed
ahead with high double digit growth rates. Poor municipal infrastructure for tap
water has pushed sales of bulk packaged water to households. Fruit/vegetable juice
is growing as a result of increased consumer expenditure on naturally healthy (NH)
beverages. While functional drinks and RTD tea also posted impressive growth in
2007, they were growing from a very small base and are yet to achieve a critical
mass in terms of establishing a loyal consumer base. Coca-Cola India and PepsiCo
India slip in shares with consumers showing a growing preference for healthier soft
drinks such as bottled water and fruit/vegetable juice rather than carbonates in
2007, the two carbonates giants suffered a marginal decline in share.
PEPSICO
The summer of 1898, as usual, was hot and humid in New Bern, North Carolina.
So a young pharmacist named Caleb Braham Began experimenting with
combinations of spices, juices, and systems trying to create a refreshing new drink
to serve his customers. He succeeded beyond all expectations because he invented
the beverage known around the world as Pepsi-Cola.
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COCA-COLA
Dr. John Pemberton, an Atlanta pharmacist, invented Coca-Cola. He concocted the
formula in a three-legged brass kettle in his backyard on May 8, 1885. He mixed a
combination of lime, cinnamon, coca leaves, and the seeds of a Brazilian shrub to
make the fabulous beverage. Coca-Cola debuted in Atlanta’s largest pharmacy,
Jacob’s Pharmacy, as a five-cent non-carbonated beverage. Later on, the
carbonated water was added to the syrup to make the beverage that we know today
as Coca-Cola.
This study focuses on the comparison of Services provided by the PepsiCo and
Coca- Cola Company. This mainly focuses on the distribution services provided
by the both companies. And this study covers other aspects of the services
provided by the both companies like information of the Refrigerators using by the
retailers. And it focuses on the problems of the retailers what they facing.
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CHAPTER-2
OBJECTIVES OF THE
STUDY
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OBJECTIVES OF THE STUDY:
SCOPE OF STUDY:
1. This study focuses only on the beverage products.
2. The study only focuses on strategies used by PepsiCo & Coco-cola only.
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IMPORTANCE OF THE STUDY:
1. This study is help to the company to know the problems of retailers.
2. This study also helps to the distributors to know the satisfaction of the
retailers about the distribution services.
3. This study help to the distributors to know the stock of both companies
products maintaining by the different retailers.
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CHAPTER-3
INDUSTRY PROFILE
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INDUSTRY PROFILE
BEVERAGE
Any type of liquid specifically prepared for human consumption. Beverages in
addition to basic need form part of the culture of human society. Different types of
beverages are as fallow
WATER
Despite the fact that most beverages, including juice, soft drinks, and carbonated
drinks, have some form of water in them; water itself is often not classified as a
beverage, and the word beverage has been recurrently defined as not referring to
water but the bottled water that is processed through proper filtration and
purification comes under the beverage category.
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3.1 (B) TYPES OF BEVERAGES
ALCOHOLIC BEVERAGES
An alcoholic beverage is a drink containing ethanol, commonly known as
alcohol, although in chemistry the definition of an alcohol includes many other
compounds. Ethanol (alcohol) is a psychoactive drug that has a depressant effect.
Beers: The two main types of beer are ale and lager; each type has a distinct
production processes. Mass-produced beer is typically aged for only a week or two
after its fermentation and has an alcohol content of 4%–6% ABV. Other kinds of
beer may be fermented and aged for several months.
Wines: Wine involves a longer (complete) fermentation process and a long aging
process (months or years) that results in an alcohol content of 9%–16% ABV.
Sparkling wine can be made by adding a small amount of sugar before bottling,
which causes a secondary fermentation to occur in the bottle.
Spirits: Unsweetened, distilled, alcoholic beverages that have an alcohol content
of at least 20% ABV are called spirits. Spirits are produced by distillation of a
fermented product; this process concentrates the alcohol and eliminates some of
the congeners.
NON-ALCOHOL BEVERAGES
A non-alcoholic beverage is a beverage that contains no alcohol. Non-alcoholic mixed
drinks (including punches, "virgin cocktails", or "mock tails") are often consumed by
children; people whom wishing to enjoy flavorful drinks without alcohol. Non-
alcoholic beverages contain no more than .5 percent alcohol by volume. It also includes
drinks that have undergone an alcohol removal process such as non-alcoholic beers and
de-alcohol zed wines.
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Non-alcoholic variants:
Low Alcohol Beer
Non-Alcoholic Wines
Sparkling Cider
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SOFT DRINKS
A soft drink is a beverage that does not contain alcohol. The name "soft
drink" specifies a lack of alcohol by way of contrast to the term "hard drink". The
term "drink", while nominally neutral, sometimes carries connotations of alcoholic
content. Beverages like colas, flavored water, sparkling water, iced tea, lemonade,
squash, and fruit punch are among the most common types of soft drinks. Many
carbonated soft drinks are optionally available in versions sweetened with sugars
or with non-caloric sweeteners.
HOT BEVERAGES
Coffee-based beverages: Cappuccino, Coffee Espresso, Café aula it, Frappe,
Flavored Coffees (mocha etc)
Hot Chocolate: It is a heated beverage that typically consists of shaved chocolate
or cocoa Powder, heated milk or water, and sugar.
Hot cider: It is an alcoholic beverage usually made from the fermented juice of
apples, although pears are also used. In the United Kingdom, pear cider, which has
no apple content, is known as Perry.
Tea-based beverages: Tea, Green Tea, Flavored Tea, Pearl Milk Tea.
Herbal teas: An herbal tea, tisane, or ptisan is an herbal infusion made from
anything other than the leaves of the tea bush (Camellia sinensis). Originated from
both China and Middle East.
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OTHERS
Some substances may either be called food or drink, or accordingly be eaten with a
spoon or drunk, depending on solid ingredients in it and on how thick it is, and on
preference.
Soups: Soup is a food that is made by combining ingredients such as meat and
vegetables in stock or hot/boiling water, until the flavor is extracted, forming a
broth.
The soft drink market in India is dominated by the two global majors Pepsi and
Coca- Cola. Coca-Cola, which had winded up its India operations during the
introduction of the FERA regime, reentered India 16 years later in1993. Coca-Cola
acquired a major chunk of the soft drink market by buying out local brands
Thumps Up, Limca and Gold Spot from Parle Beverages. Coca Cola has also
acquired Cadbury Schweppes soft drink brands Crush, Canada Dry and Sport Cola
in early 1999 and now recently in Oct '00 it acquired distribution rights of these
brands from IFB Agro Limited.
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Pepsi although started a couple of years before Coca Cola in 1991, has a lower
market share today. It has bought over MuBBAi based Duke’s range of soft drink
brands. Both the cola manufacturers come up with their own market share figures
and claim to have increased their share. Recently in August '00 Pepsi claimed to
have increased its market share for first five months of calendar year 2000, to 49%
from earlier levels of 47.3%, while Coke claims to have increased its share in the
market to 57% in the same period from55% in the corresponding period last year.
Coke figures are based on ORG's data while that of Pepsi are based on IMRB data.
Coca-Cola started out as an insignificant one-man business and over the last one
hundred and ten year has grown into one of the largest companies in the world. Dr.
John Pemberton, and Atlanta Pharmacist, invented Coca-Cola. He concocted the
formula in a three-legged brass kettle in his backyard on May 8, 1886. He mixed a
combination of lime, cinnamon, coca leaves, and the seeds of a Brazilian shrub to
make the fabulous beverage. Coca-Cola debuted in Atlanta’s largest Pharmacy,
Jacob’s Pharmacy, as a five cent non-carbonated beverage. Later on, the
carbonated water was added to the syrup to make the beverage that we know today
as Coca-Cola. In the mid 1970, more than half Coca-Cola sold was outside of the
U.S. Coca-Cola products outsell closest competitor by more than two to one. One
in every two cola and one in every there soft drinks is a Coca- Cola product. The
best-known trademark in the world is sole in about one hundred and forty countries
to 5.8 billion people in eighty different languages. This is why Coca-Cola is the
largest soft drink company in the world. For more than 65 years, Coca-Cola has
been a sponsor of the Olympics Advertisements for Coca-Cola started on the radio
in the 1930s and on the television in 1950. Currently Coca-Cola is advertised on
over five hundred TV channels around the world.
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COKE’S CORPORATE VISION
For more than a century, Coke has consistently delivered the simple promise of
“Coca- Cola”. This has enabled Coke to sustain a long track record of growth.
Amidst all the years of success, the most pivotal moments in Coke’s history came
when they had to change their business dramatically. They had to do this to meet
new challenges of the evolving world. But each time, Coke’s predecessors
sustained growth momentum because of three consistent factors.
The Company remained focus on the basic promise of Coca-Cola, which has not
only endured, but also indeed carried Coke. Coca-Cola has been Coke’s consistent
theme throughout the 115 year history.
Working with strong ideals, always striving to behave in ways consistent with the
brand itself. Coke’s leaders had the vision, foresight and the courage to innovate
and adapt the mechanics of business to be enabled to thrive within the business
conditions of each particular day.
COKE’S OUSTER FROM INDIA
The company left India in 1977 after the newly elected Janaty Party Government
came to power at the Centre for the first time. They asked the company to divest
60% of its business and divulge its secret Coca-Cola formula.
THE RE-LAUNCH OF COCA-COLA IN INDIA
Coca-Cola came back to India after 16 years when it was launched on October 24,
1993, at Agra. The Godrej group, Great Eastern Shipping and the Britannia
Industries Ltd, led by Rajan Pillai, initially wooed Coca-Cola. In March 1991, it
signed an MOU with BIL and the Chandrasekhar government accepted this
proposal. But relationship between the two companies turned sour over the export-
oriented clause and finally on June 23, 1993, Coca-Cola got the permission to enter
the country with a 100 per cent unit in India. On September 22, 1993, the company
bought out the Parle Brand.
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3.1(E) PRODUCTS OF COCA-COLA
THUMPS UP
Strong cola taste for exciting personality. Thumps Up is a leading carbonated soft
drink and most trust brand in India. Originally introduced in 1977 and later on was
acquired by the Coca-Cola Company in 1993.
Thumps-Up is known for its strong, fizzy taste and its confident, mature and
uniquely masculine attitude. This brand clearly seeks to separate the men from the
boys.
LIMCA
The drink that can cast a tangy refreshing spell on anyone, anywhere. Born in
1971, Limca has been the original thirst choice, of millions of consumers for over
3 decades. The brand has been displaying healthy volume growth year on year and
Limca continue to be the leading flavor soft drink in the country with a market
share of 12%. The success formula of Limca lies in its sharp fizz and lemony bite
combined with the single minded positioning of the brand as the ultimate refresher
has continuously strengthened the brand franchise. Limca energizes refreshes and
transforms. Dive into the zingy refreshment of Limca and walk away a new
person.
FANTA
Internationally, Fanta- the orange drink of the Coca-Cola Company is seen as one
of the favorite drink since 1940’s. Fanta entered the Indian market in the year
1993. Over the years Fanta has occupied a strong market place and is identified as
“The Fun Catalyst”. Perceived a fun youth brand, Fanta stands for its vibrant color,
tempting taste and tingling bubbles that not just uplifts feelings but also helps free
spirit thus encouraging one to indulge in the moment. This positive imagery is
associated with happy, cheerful and special times with friends. Fanta is available
around the country in 200 ml, 30ml, 1.5 liter and 2.25 liter and 330 ml cans.
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SPRITE
Worldwide Sprite is ranked as the No. 4 Soft Drink and is sold in more than 190
countries. In India, Sprite was launched in year 1999 and today it has grown to be
one of the fastest growing soft drinks, leading the clear lime category.
Today Sprite is perceived as a youth icon. Why? With a strong appeal to the
youth Sprite has stood for straightforward and honest attitude. Its clear crisp
refreshing taste encourages the today’s youth to trust their instincts, influences
them to be true to who they are and to obey their thirst. Sprite is available around
the country in 200 ml, 300ml, 500ml, 500ml+100ml free, 1.5 liter, 2 liter 2.25 liter
and 330 ml cans.
MAAZA
Mazza was launched in 1976. Here was a drink that offered the same real taste of
fruit juices and was available throughout the year. In 1993, Coca-Cola India
acquired Maaza. Mazza currently dominates the fruit drink category. Over the
years, brand Mazza has become synonymous with Mango. This has been the result
of such successful campaign like “Taaza Mango, Mazza Mango” and “Botal Main
Aam, Maaza Hai Naam”. Consumers regard Maaza as wholesome natural, fun
drink, which delivers the real experience of fruit. The current advertising of Maaza
positions it as an enabler of fun friendship moments between moms and kids as
mom trust the brand and the kids love its taste. It is available in SKUs of 200ml
RBG, 250ml RGB, 125ml Tetra pack and 200 Tetra pack.
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BRIEF PROFILE OF COCA-COLA
Type Soft drink (Cola)
Introduced 1886
COMPANY PROFILE
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COMPANY PROFILE
PepsiCo established its business operations in India in 1989 and PepsiCo entered
India in 1989 and has grown to become the country’s largest selling food and
Beverage Company. 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 nourishes consumers with a range of products from treats to healthy eats
that delivery joy as well as nutrition and always, good taste. PepsiCo India’s
expansive portfolio includes iconic refreshment beverages Pepsi, 7up, 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 drink-
Gatorade, Tropicana 100% fruit juices, and juice based drinks Tropicana Nectars,
Tropicana Twister and Slice, non- carbonated beverage and a new innovation
Nimbooz by 7up. Local brands Lehar Evervess Soda, Dukes Lemonade and
Mangola add to the diverse range of brands. PepsiCo’s foods Company, Frito-Lay,
is the leader in the branded salty snack market and all Frito Lay products are free of
trans-fat and MSG. It manufactures Lay’s Potato Chips; Cheetos extruded snacks,
Uncle Chips and traditional snacks under the Kurkure and Lehar brands and the
recently launched „Aliva’ savoury crackers. The Company’s high fiber breakfast
cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful
choices available to consumers. Frito Lay’s core products, Lay’s, Kurkure, Uncle
Chips 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 36 bottling plants in India, of which 13 are Company Owned
and 23 are franchisee owned. In addition to this, PepsiCo’s Frito Lay foods division
has 3 state-of-the-art plants. PepsiCo’s business is based on its sustainability vision
of making tomorrow better than today. PepsiCo’s commitment to living by this
vision every day is visible in its contribution to the country, consumers and farmers.
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ESTABLISHMENT
PespsiCo has grown to become one of the country’s leading food and beverage
companies. One of the largest multinational investors in the country, PepsiCo has
Born in the Carolinas in 1898, Pepsi-Cola has a long and rich history. The drink is the
invention of Caleb established a business which aims to serve the long term dynamic
needs of consumers in India.
HISTORY OF PEPSICO
Bradham (left), a pharmacist and drugstore owner in New Bern, North Carolina.
The summer of 1898, as usual, was hot and humid in New Bern, North Carolina.
So a young pharmacist named Caleb Bradham began experimenting with
combinations of spices, juices, and syrups trying to create a refreshing new drink to
serve his customers. He succeeded beyond all expectations because he invented the
beverage known around the world as Pepsi-Cola.
Caleb Bradham knew that to keep people returning to his pharmacy, he would have
to turn it into a gathering place. He did so by concocting his own special beverage,
a soft drink. His creation, a unique mixture of kola nut extract, vanilla and rare oils,
became so popular his customers named it "Brad's Drink." Caleb decided to
rename it "Pepsi-Cola," and advertised his new soft drink. People responded, and
sales of Pepsi-Cola started to grow, convincing him that he should form a company
to market the new beverage. In 1902, he launched the Pepsi-Cola Company in the
back room of his pharmacy, and applied to the U.S. Patent Office for a trademark.
At first, he mixed the syrup himself and
Sold it exclusively through soda fountains. But soon Caleb recognized that a greater
BRAND HISTORY
Pepsi is a hundred year old brand loved by over 200 million people worldwide.
The largest single selling soft drink brand in India is the ubiquitous socialize at
every occasion.
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Youngistan loves it; 200 million peoples worldwide love it. But what has
made Pepsi the single largest selling soft drink brand in Indian is actually a
formula concocted a century ago in a far away continent.
1886, United States of America, Caleb Bradman, the man with a plan, got on
to formulate a blockbuster digestive drink and decided to call it Brads drink.
It was this doctor’s potion that was to become Pepsi Cola in 1898, and
eventually, Pepsi in 1903.
Pepsi has always played on the front foot and since its inception has come
out with revolutionary concepts like Diet, 2L bottles, recyclable plastic cola
bottles and the enviable My Can.
BRAND ADVANTAGE
Pepsi has become a friend to the youth and has led many youth cultures.
Youngster over the generations have grown up with Pepsi and share an
emotional connect with it, unlike any other cola brand be it parties,
hangouts, or just another day at home, a day is never complete without the
fizz of Pepsi!
Pepsi, Cricket and Bollywood have been joined at the hip since the
beginning. Shah Rukh Khan, Sachin Tendulkar, Saif Ali Khan, Amitabh
Bachchan, Kareena Kapoor, Priyanka Chopra, Virender Sehwag, M.S.
Dhoni, John Abraham, Ranbir Kapoor and Deepika Padukone are a few
celebrities who will go any length for a chilled Pepsi.
The Pepsi My Can is undoubtedly the most popular cola pack of all times. It is
not
just a pack but a style statement for today’s youth.
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OUR MISSION
Our mission is to be the world’s premier consumer Products Company focused on
convenient foods and beverages. We seek to produce financial rewards to
investors 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.
OUR VISION
“PepsiCo’s 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.
Pepsi is a hundred year old brand loved by over 200 million people worldwide.
The largest single selling soft drink brand in India is the ubiquitous socialize at
every occasion.
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1886, United States of America, Caleb Bradman, the man with a plan, got on
to formulate a blockbuster digestive drink and decided to call it Brads drink.
It was this doctor’s potion that was to become Pepsi Cola in 1898, and
eventually, Pepsi in 1903.
Pepsi has always played on the front foot and since its inception has come
out with revolutionary concepts like Diet, 2L bottles, recyclable plastic cola
bottles and the enviable My Can.
7UP, the refreshing clear drink with natural lemon and lime flavor was created in
1929. 7Up was launched in Indian in 1990 and its international mascot Fido Dido
was used for advertising in 1992 to position the brand as a cool drink for
youngsters. Fido became an instant hit with his trendy look, laid back attitude and
refreshing take on life. During the brand’s early years in India, 7Up gained market
leader status in the lemon lime category by being one of the first to be nationally
distributed as well as being marketed as a healthier alternative to other soft drinks.
The main formula of Mountain Dew was invented in Virginia, named and first
marketed in Johnson City, Tennessee and Knoxville, Tennessee in 1948. In India,
Mountain Dew set the soft drink category ablaze in 2003 with their iconic launch
campaign “Cheetah Bhi Peeta Hai”.
D) AQUAFINA – The Purest Part Of You
Aquafina was first launched in USA in the year 1994 and with its unique
purification system and great taste; Aquafina soon became the bestselling brand in
the country. In India, Aquafina’s journey began with the Bombay launch in 1999
and it was rolled out
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nationally by the year 2000. On the strength of its brand appeal and distribution,
Aquafina has become one of India’s leading brands of bottled water in a relatively
short span.
Slice was launched in India in 1993 as a refreshing mango drink and quickly went
on to become a leading player in the category. In 2008, Slice was re-launched with
a „winning’ product formulation which made the consumers fall in love with its
taste. With refreshed pack graphics and clutter breaking advertising, Slice has
driven strong appeal within the category.
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A BRIEF PROFILE OF PEPSICO
Industry Food
Beverages
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Mirinda
Izze
Tropicana
Products Products Copella
Naked Juice
Gatorade
Propel Fitness Water
Quaker Oats Company
Lay's
Doritos
Cheetos
Kurkure
Fritos
Rold Gold
Ruffles
Tostitos
Slice
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Divisions PepsiCo Americas (PepsiCo Ameri
Food, PepsiCo Americas Beverages),
PepsiCo International
Website PepsiCo.com
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CHAPTER – V
THEORITICAL BACKGROUND
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THEROTICAL BACKGROUND
Comparative study means the comparison between the similar things e.g. Products,
Place, Technologies, Living beings and etc. Regarding the features, nature,
functions, behavior, SWOT (Strength, Weakness, Opportunity and Threats) and
many other characters is called comparative analysis. In this comparative analysis
the researcher will take any two or more similar products (that means the
functioning of the products are almost same) and compare the common and the
similar features of the products to find out that which the best one is.
In comparative analysis the Company will compare itself with the company which
is in the top position in that industry or which is top in the position in that
particular area or region; from this they can understand their position in that
industry. It will be very useful know what is the strength and weakness of the
Company and the company will try rectify the problems in order to increase their
performance to reach and to beat out that other company with whom they are
comparing their company.
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Direct mail distribution channels work on a large scale. Materials advertising the
product and presenting an offer usually target a specific audience most likely to
purchase the item. Direct marketing materials inform and compel the
Target audience to take immediate action and respond at once by mailing in the
order form. The reward for the urgent responses is often a discount price or added
value such as free gifts.
It is defined as a chain of intermediaries; each passing the product down the chain
to the next organization, before it finally reaches the consumer or end user. This
process is known as the “Distribution Chain” or the “Channel”. Each of the
elements in these chains will have their own specific needs, which the producer
must take into account, along with those of the all-important end-user.
CHANNELS
Distribution channels may not be restricted to physical products alone. They may
be just as important for moving a service from producer to consumer in certain
sectors, since both direct and indirect channels may be used. Hotels, for example,
may sell their services (typically rooms) directly or through travel agents, tour
operators, airlines, tourist boards, centralized reservation systems, etc. If we
mention in a single sentence the distribution channel is nothing but it is a process
of transfer the products or services from Producer to Customer or end user.
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There have also been some innovations in the distribution of services. For
example, there has been an increase in franchising and in rental services - the latter
offering anything from televisions through tools. There has also been some
evidence of service integration, with services linking together, particularly in the
travel and tourism sectors. For example, links now exist between airlines, hotels
and car rental services. In addition, there has been a significant increase in retail
outlets for the service sector. Outlets such as estate agencies and building society
offices are crowding out traditional grocers from major shopping areas. Channel
decisions
Channel strategy
Gravity & Gravity
Push and Pull strategy
Product(or service)
Cost
Consumer location
RETAIL CHANNEL
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3. Eatery Channel- Eatery channel includes different hotels, restaurants etc.
OTHER TYPES
1. Indirect Channel
The indirect channel is used by companies who do not sell their goods directly to
consumers. Suppliers and manufacturers typically use indirect channels because
they exist early in the supply chain. Depending on the industry and product, direct
distribution channels have become more prevalent because of the internet.
2. Direct Channel
Distributors, wholesalers and retailers are the primary indirect channels a company
may use when selling its products in the marketplace. Companies choose the
indirect channel best suited for their product to obtain the best market share; it also
allows them to focus on producing their goods.
Selling agents and internet sales are two types of direct distribution channels.
Selling agents work for the company and market their products directly to
consumers through mail order, storefronts or other means. The internet is an easy
distribution channel because of the global availability to consumers.
39
5.1(C) FUNCTIONS OF DISTRIBUTION CHANNEL
Distribution channel perform a number of functions that make possible the flow of
goods from the producer to the customer. These functions must be handled by
someone in the channel to channel; the functions themselves cannot be eliminated.
Channels provide time, place, and ownership utility. They make products available
when, where, and in the sized and quantities that customers want. Distribution
channels provide a number of logistics or physical distribution functions that
increase the efficiency of the flow of goods from producer to customer.
Distribution channels create efficiencies by reducing the number of transaction
necessary for goods to flow from many different manufacturers to large numbers of
customers.
40
BUYING AND BUILDING PRODUCT ASSORTMENT
a. Breaking Bulk
Along with building assortments, this function is one of the fundamental reasons
for the existence of distributors. The term refers to the fact that whereas
manufacturers normally produce large quantities of limited number of products and
wholesalers and retailers purchase large quantities of goods from manufacturers
but sell only one or a few at a time to many different customers. Producers want to
produce in bulk quantities. Thus, it is necessary for intermediaries to break
homogeneous lots into smaller units.
b. Categorizing
Functions that make the purchase process easier for customers and manufacturers.
Intermediaries often provide customer services such as offering credit to buyers
and accepting customer’s returns. Customer services are oftentimes more
important B2B markets in which customers purchase larger quantities of higher-
priced products. Although often confused with logistics, the facilitating functions
of intermediaries supplement the entire marketing flow of the product and are
separate from logistics. The facilitating functions include financially supporting
the marketing chain by investing in storage capabilities.
1. Customer Needs
a. Assortment of Goods: Pepsi has a wide assortment of goods. Inn beverages
some very famous are Pepsi, Mirinda, 7Up, Slice etc. Aquafina, Lehar Soda
also.
b. Ubiquitous: Restaurant, Pan shops, Kinana Stores, Confectionaries, Pepsi
on wheels, all these are some examples of the fact that the product Pepsi is
ubiquitous.
2 Number of Intermediaries
1. Intensive Distribution: Pepsi Co follows and intensive distribution
strategy. To support their product in as many outlets as possible.
2. Increases market coverage.
3. Competing against Coca-Cola and other local companies.
42
2. Terms and Responsibilities
Price Policy: Distributors: 3 to 5% is the profit margin Retailers: 10% to 16%
is the profit margin.
3. Territorial Rights
Distributors are given territorial rights and are not allowed to work beyond
their territories.
4. Conditions of Sale
Payment is done through cheque or cash. A Guarantee of damaged goods provided.
PepsiCo
43
DISTRIBUTION CHANNEL
44
CHAPTER – VI
RESEARCH
METHODOLOGY
45
RESEARCH METHODOLOGY
A sincere attempt has been made to know the Procedure and Documentation for
Exporting Grapes. The Research Methodology used to serve the above purpose
involves.
Data Collection
There are two types of data considered for collecting information.
Primary Data
Data has been mainly collected form primary source. The method was
combination of direct personal interview backed by questionnaires method i.e. a
questionnaire being drafted and data being collected by meeting soft drink retailers
directly.
As per the nature of my study I have collected primary information from customers
of telecom users and also from the company officials.
Secondary Data
Data have obtained regarding the information relates to soft drink industry profile
i.e. industry growth, present status of industrial background, govt. And trade
report, company records, sales force reports etc.
To study the basic of comparative study I have referred various marketing related
books and magazines. Also to collect the information about company & telecom
industry I have referred various sites.
Research Instrument
Questionnaire for consume.
Sample Size
Sample size taken for consumer is 100.
46
Sampling Method
This includes all the method used for making different samples for the purpose of
study. The above are different types of data collection methods. In this study I
used the survey method. In a survey method I have taken 100 samples. I
surveyed the retailers of PepsiCo and Coca-Cola in India City.
LIMITATIONS:
4. This study is done only within period of 52 days. (25th May 2011 to 15 July
2011).
5. In this study making comparison between two major soft drinks companies
one of the PepsiCo & other is Coca-Cola.
6. There is nothing doing comparative study about local or any other companies.
47
CHAPTER – VII
DATA ANALYSIS
AND
INTERPRETATION
48
Que : - 1) which brand you maintain maximum stock?
Table No.1: the following table shows the maximum stocks of different brands
maintained by the Retailers.
Products No. of Respondents Percentages
Pepsi 20 23%
Coca-Cola 41 27%
Both 39 50%
49
Interpretation
The above table reveals the information about the maximum stocks of PepsiCo
and Coca-Cola maintained by the different retailers in India. From 100 retailers 20
retailers are maintain only products of PepsiCo and 41 retailers are maintain a
stock of Coca-Cola only and remaining 39 retailers are maintain a stocks of both
Companies.
50
Que: - 2) which product of PepsiCo you have maintained?
Table No.2: The following table shows the information of the numbers of
retailers who are maintaining the different products of PepsiCo.
Types of Products No. of Respondents Percentages
Pepsi 06 10.17%
7up 02 03.38%
Mirinda 03 05.08%
Slice 02 03.39%
All 46 77.98%
Total 59 100%
51
Interpretation:
The above chart shows the information about different types of products of
PepsiCo. The PepsiCo has the different brands like PepsiCo, 7up, Miranda, Slice
etc these are the major products of PepsiCo. As per the table 10.17% retailers
maintaining the stock of Pepsi, 03.38% retailers are maintaining the stock of 7up,
05.08% retailers are maintaining the stock of Miranda, 03.39% retailers are
maintaining the stock of Slice and remaining 77.98% retailers are maintaining the
stock of all products of the PepsiCo.
01 to 05 38 64.41%
05 to 10 09 15.25%
10 to 15 08 13.60%
Above 15 04 06.78%
Total 59 100%
52
Interpretation:
The above table shows the information about the crates of PepsiCo maintaining by
the retailers. 64.47% retailers are maintaining crates between 1 to 5, 15.25%
retailers are
maintaining between 5 to 10, 13.60% retailers are maintaining between 10 to 15,
06.78% retailers are maintaining above 10 and 41 retailers are not maintaining the
crates of PepsiCo.
Thumps-up 05 06.25%
53
Sprite 04 05.00%
Fanta 05 06.25%
Mazza 03 03.75%
All 63 78.75%
Total 80 100%
Interpretation:
The above chart shows the different types of products of Coca-Cola which is
maintained by the retailers. The Coca-Cola has different types of products like
Thumps-up, Sprite, Fanta, Mazza etc. As per the above table 06.25% retailers are
maintaining Thumps only, 05.00% retailers are maintaining only Sprite, 06.25%
retailers are maintaining Fanta only, 03.75% retailers are maintaining only Mazza
and remaining 78.75% retailers are maintaining all the products of Coco-Cola.
54
Que : - 5) How many crates of coca cola you have maintained?
Table No.5: The following table shows the information of crates of Coca-Cola
maintaining by the retailers.
01 to 05 43 53.75%
05 to 10 17 21.25%
10 to 15 11 13.75%
Above 15 09 11.25%
Total 80 100%
55
Interpretation:
The above table shows the information about the crates of Coca-Cola maintaining
by the retailers. 53.75% retailers are maintaining crates between 1 to 5, 21.25%
retailers are
maintaining between 5 to 10, 13.75% retailers are maintaining between 10 to 15,
11.25% retailers are maintain above 15 and other 20 retailers are not maintaining
the crates of Coca-Cola.
56
Que : - 6) Why you choose of PepsiCo?
Table No.6: The following table shows the information of why the retailers
are prefers PepsiCo products.
Reasons No. of Respondents Percentages
Service 16 27.12%
Schemes 04 06.78%
Others 07 11.86%
Total 59 100%
Interpretation:
The above graph shows the demand for PepsiCo products. As per the table the
54.24% retailers are said they maintain the products of PepsiCo because of
consumers
57
demand.27.12% retailers are said they prefer the PepsiCo products because of
services provided by the Company. 06.78% retailers are said they maintain
products of PepsiCo because of Schemes. And 11.86% retailers prefer the products
of PepsiCo because of other things like Taste, Low cost etc.
Services 15 18.75%
Schemes 11 13.75%
Others 05 06.25%
Total 80 100%
58
Interpretation:
The above chart shows the demand of Coca-Cola products. As per the table the
61.25% retailers are said they maintain the products of Coca-Cola because of
consumers demand.18.75% retailers are said they prefer the Coca-Cola products
because of services provided by the Company. 11% retailers are said they maintain
products of Coca-Cola because of Schemes. And 06.25% retailers prefer the
products of Coca-Cola because of other things like Taste, Low cost etc.
200 ml 49 49%
300 ml 12 12%
500 ml 08 08%
All 20 20%
59
Interpretation:
The above chart shows the different quantities maintaining by the retailers. As per
above chart 49% retailers are maintaining 200 ml bottles, 12% retailers are
maintaining 300ml bottles, 08% retailers maintaining 500ml bottles,11% retailers
maintaining 1.5 Liters. And 20% retailers maintaining all quantity. Because of
huge demand for 200 ml bottles the more retailers prefers only 200ml bottles.
Total 59 100%
60
Interpretation:
The above chart showing the demand for the different products of PepsiCo. As per
the chart 32.21% retailers said more consumers prefers Pepsi, 35.59% retailers said
consumers prefers 7up, 18.64% retailers said more consumers prefers Miranda and
13.56% retailers said consumers prefers Slice.
Thumps-up 28 35.00%
61
Sprite 31 38.75%
Fanta 12 15.00%
Mazza 09 11.25%
Total 80 100%
Interpretation:
The above chart showing the demand for the different products of Coca-Cola. As
per the chart 35% retailers said more consumers prefers Thumps-up, 38.75%
retailers said consumers prefers Sprite, 15% retailers said more consumers prefers
Fanta and 11.25s% retailers said consumers prefers Mazza.
62
Que: - 11) which companies’ refrigerator you are using?
Table No.11: The following table showing the refrigerators using by the retailers.
PepsiCo 21 21%
Coca-Cola 11 11%
Both 12 12%
Own 47 47%
All 09 09%
Interpretation:
The above chart showing the information about which types of refrigerators using
the retailers. The 21% retailers are using PepsiCo refrigerator, 11% retailers are
using Coca-
63
Cola, 47% retailers are using their own refrigerator,09% retailers are using all the
refrigerators and 12% retailers using the refrigerators provided by the PepsiCo and
Coca- Cola.
Total 59 100%
64
Interpretation:
The above chart showing the capacity of refrigerator using the retailers. 32.20%
retailers are using 165 Liters refrigerator, 35.59% retailers are using 215 Liters
refrigerator, 22.03% retailers are using 350 Liters refrigerator and 10.17% retailers
are using Deep Fridge.
65
215 Liters. 23 28.75%
Total 80 100%
Interpretation:
The above chart showing the capacity of refrigerator using the retailers. 32.50%
retailers are using 165 Liters refrigerator, 28.75% retailers are using 215 Liters
refrigerator, 22.50% retailers are using 350 Liters refrigerator and 16.25% retailers
are using Deep Fridge.
66
Que: -14) what is the frequency of delivery from PepsiCo?
Table No.14: The following table showing the frequency of delivery of PepsiCo
products.
Daily 09 15.25%
Total 59 100%
67
Interpretation:
The above chart showing the frequency of delivery by the wholesaler to the
retailers. The above chart showing the 15.25% retailers said daily, 23.73% retailers
said Twice in a week, 22.03% retailers said once in a week and 38.98% retailers
said order wise. As per the chart more retailers got delivery by order wise.
68
Que: - 15) what is the frequency of delivery from coca cola?
Table No.15: The following table showing the frequency of delivery of Coca-Cola
products.
Frequency of delivery No. of retailers Percentages
Daily 13 16.25%
Total 80 100%
Interpretation:
The above chart showing the frequency of delivery by the wholesaler to the retailers.
The above chart showing the 16.25% retailers said daily, 20% retailers said Twice
69
In a week 23.75% retailers said once in a week and 40% retailers said order wise. As
per the chart more retailers got delivery by order wise.
Both 15 15%
Other 29 29%
70
Interpretation:
The above chart showing the different companies water bottles maintaining by the
retailers. As per the chart 23% retailers are maintaining Aquafina (PepsiCo), 33%
retailers are maintaining Kenley (Coca-Cola),15% retailers are maintaining the
stock of both PepsiCo and Coca-Cola companies and 29% retailers are
maintaining other companies products.
71
CHAPTER – VIII
FINDINGS
72
FINDINGS
1. It is observed that retailers are more prefers to the both brands the
percentages of preference of both brands are 50%.
2. It is observed that more retailers are maintaining the all products of PepsiCo.
4. It is observed that 78% retailers are maintaining the all products of Coca-Cola.
7. I found that more retailers are prefers to 200ml bottles Soft drink.
8. Most of the Consumers demand for the Pepsi, 7Up and Mirinda Products
of PepsiCo.
9. It is observed that the more Consumers demand for the Thumps-up, Sprit
and Fanta products of Coca-Cola.
10. It is observed that the more numbers of retailers are using the refrigerators
which are provided by the PepsiCo and Coca-Cola.
12. The water bottles of both companies are more demanded by the retailers.
73
CHAPTER – IX
CONCLUSION
74
CONCLUSION
Thus, on the basis of the data analysis and interpretation the Competition of
PepsiCo product is the tactical point of the sale and under short term
incentive the retailers can increase the sales.
Competition was high among the retailer located in nearby areas to get more
incentive and further to increase no. of customer’s to their shop can raise
their selling of other product with PepsiCo product.
TV, news paper and outdoor are liked outlet owners and it help them to
increase sale of Pepsi products.
75
CHAPTER – X
SUGGESTIONS
76
SUGGESTIONS
1. The company providing good services but more retailers is facing problems
with the delivery of products by the company in summer period. In summer
time retailers are not get delivery on time that why they prefers other
companies products. So, Company should try to provide their product in
summer period on time.
3. For the increasing the sales of the Company’s products Company should
provide
the promotional tools to their retailers.
4. Some are as are facing problems related to delivery. The Company should
provide the delivery to that area’s which are facing the problems of getting
product on time.
77
BIBLIOGRAPHY
PHILIP KOTLER, GARY ARMSTRONG, PRAFULLA Y.
AGNIHOTRI, ESHAN UL Haque 2022. A South Asian Perspective,
16th Edition.
Web sites
www.indiadairy.co
www.google.co.in
www.pepsicoindia.com
http://en.wikipedia.org/wiki/Sampling
www.researchgate.net
www.statista.com
78
ANNEXURE
ADDRESS:
CONTACT PERSON:
CONTACT NO:
YEAR OF ESTABLISHMENT:
79
1) Which brand you maintain maximum stock?
A. PepsiCo
B. Coca-Cola
C. Both
2) Which product of PepsiCo you have maintained?
A. Pepsi
B. 7 Up
C. Mirinda
D. All
80
6) Why you choose of PepsiCo?
A. Consumers Demand
B. Service
C. Schemes
D. Others
7) Why you choose of coca cola?
A. Consumers Demand
B. Service
C. Schemes
D. Others
8) Which quantity you have maintained maximum stock?
A. 200 ml
B. 300 ml
C. 500 ml
D. 1.5 Ltr
E. All
9) Which product of PepsiCo has maximum demand from customer?
A. Pepsi
B. 7 Up
C. Mirinda
D. Slice
10) Which product of coca cola has maximum demand from customer?
A. Thums Up
B. Sprite
C. Fanta
D. Maaza
81
11) Which companies’ refrigerator you are using?
A. Pepsi Co
B. Coca cola
C. Both
D. Own
E. All
12) What is the capacity of your PepsiCo refrigerator?
A. 165 Ltr
B. 250 Ltr
C. 350 Ltr
D. Deep Fridge
13) What is the capacity of your coca cola refrigerator?
A. 165 Ltr
B. 250 Ltr
C. 350 Ltr
D. Deep Fridge
14) What is the frequency of delivery from PepsiCo?
A. Daily
B. Twice in week
C. Once in week
D. Order wise
15) What is the frequency of delivery from coca cola?
A.Daily
B.Twice in Week
C.Once in Week
D.Order wise
16) Which brand of water you have maintained?
A. Aquafina (PepsiCo)
B. Kenley (Coca-Cola)
C. Both
D. Other
82