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Mohit Pepsi Project Report
Mohit Pepsi Project Report
Mohit Pepsi Project Report
H.P University
PREFACE
Theoretical knowledge without the practical exposure is of life value. Theoretical studies in classroom are not sufficient to understand the functioning and nature of research. Thserefore it becomes necessary to undergo any research project work. Practical project supplements the theoretical studies i.e. it covers what is left uncovered in the classroom. It exposes a student to invaluable pleasure of experiences. I complete my research project on the topic MARKET SHARE OF PEPSI IN THE TOWNSHIP OF KATHUA . During the research project, I got an opportunity to learn valuable things, which I could not have been able to learn from theory classes. In order to use theoretical knowledge,I got the opportunity of doing Industrial training from JAI BEVERAGESJAMMU.Which holds the sole rights for the production of popular beverage brand PEPSICO in the state of J&K. In nutshell, whole my project was invaluable experience in the pursuit of knowledge. In the forthcoming pages attempt has been made to present a comprehensive report concerning different aspects of my research. The overall gain to me will be reflected in the report itself.
Acknowledgement
It is said, No learning is possible without any proper guidance and no research endeavour is a solo exercise, some contribution is performed by various individals. By acknowledging the guidance, support and assistance, I pay my deepest sense of gratitude to the Management of JAI BEVERAGES LTD. I am very much thankful to the management of the JAI BEVERAGES LTD for giving me an opportunity to do this project as a part of my MBA programme. The completion of this project is a successful and satisfactory outcome of so many helping hands. I think it proper to express my deep obligation to my advisers. First and foremost, I am especially thankful to Mr. MANOHAR GUPTA(Territory Development Manager) for his active co-operation and help for the completion of my project at Jammu. I also thankful to Mr. RAJAT and staff member of the organization for rendered service and provide various information to my purpose. Their suggestions are helping me in various stages. I am immensely thankful to Mr.VIKAS SHARMA(Customer Executive,Kathua) for giving me proper guidance and co-operation at all the time. My special wishes and thanks shall always be for those who responded me and extended their co-operation in preparing and collecting data by which this Project Report has been smoothly conducted.
EXECUTIVE SUMMARY
The project was undertaken to study the market share of Pepsi in JAMMU area. The population consists of all those retailers in the defined area who stock and sell relevant brands of cold drinks Coca Cola and Pepsi. With a view to find the market share of Pepsi in JAMMU area and to determine the most dominating flavour of cold drinks in Jammu area, we interviewed the retailers. The research study shows that the share of Pepsi is 43 percent as compared to that of Coke The study revealed that Pepsi is able to sustain the tough competition from Coke. In order to sustain in such a competitive market it is imperative for PEPSI to invest substantially in advertisements, sales promotion and packaging.
Introduction
Pepsi is one of the world's most famous brands much like its rival Coca Cola. Pepsi Cola was originally called Brad's Drink after its creator, Caleb Bradham, a pharmacist from North Carolina. Pepsi was a carbonated soft drink he created to serve his drugstore's customers. The new name, Pepsi-Cola, was first used on August 28. The Pepsi logo is a simple globe with the Pepsi colors in the background and the word Pepsi in the foreground. Pepsi has changed its logo and its slogans a number of times since its introduction in 1898. The Pepsi slogans through the years are listed below
1909-1939: Delicious and Healthful 1939-1950: Twice As Much For A Nickel Too 1950-1963: The Light Refreshment 1953-1961: Be Sociable 1961-1963: Now It's Pepsi For Those Who Think Young 1963-1967: Come Alive! You're In The Pepsi Generation 1967-1969: Taste That Beats The Others Cold 1969-1973: You've Got A Lot To Live, Pepsi's Got A Lot To Give 1973-1975: Join The Pepsi People Feelin' Free 1975-1978: Have A Pepsi Day
1978-1981: Catch That Pepsi Spirit 1981-1982: Pepsi's Got Your Taste For Life! 1983-1983: Pepsi Now! 1984-now: Pepsi, The Choice Of A New Generation
Company Profile:
Type
Public (NYSE: PEP) Food Non-alcoholic beverage New Bern N.C, U.S. (1890) Caleb Bradham, Donald M. Kendall and Herman W. Lay Purchase, New York, U.S. Worldwide Indra Nooyi (Chairperson and CEO) Pepsi Diet Pepsi Mountain Dew AMP Energy Aquafina Sierra Mist SoBe Starbucks Frappuccino Lipton Iced Tea 7up Mirinda Izze Tropicana Products Copella Naked Juice Gatorade Propel Fitness Water Quaker Oats Company Lay's Doritos Cheetos Kurkure Fritos Rold Gold Ruffles Tostitos
Industry
Key people
Products
Company Perspectives:
Our Mission and Vision
At PepsiCo, we believe being a responsible corporate citizen is not only the right thing to do, but the right thing to do for our business. 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. Performance with Purpose At PepsiCo, we're committed to achieving business and financial success while leaving a positive imprint on society - delivering what we call Performance with Purpose. Our approach to superior financial performance is straightforward - drive shareholder value. By addressing social and environmental issues, we also deliver on our purpose agenda, which consists of human, environmental, and talent sustainability.
Company History
PepsiCo, Inc. is one of the world's top consumer product companies with many of the world's most important and valuable trademarks. Its Pepsi-Cola Company division is the second largest soft drink business in the world, with a 21 percent share of the carbonated soft drink market worldwide and 29 percent in the United States. Three of its brands--Pepsi-Cola, Mountain Dew, and Diet Pepsi&mdashe among the top ten soft drinks in the U.S. market. The Frito-Lay Company division is by far the world leader in salty snacks, holding a 40 percent market share and an even more staggering 56 percent share of the U.S. market. In the United States, Frito-Lay is nine times the size of its nearest competitor and sells nine of the top ten snack chip brands in the supermarket channel, including Lay's, Doritos, Tostitos, Ruffles, Fritos, and Chee-tos. Frito-Lay generates more than 60 percent of PepsiCo's net sales and more than two-thirds of the parent company's operating profits. The company's third division, Tropicana Products, Inc., is the world leader in juice sales and holds a dominant 41 percent of the U.S. chilled orange juice market. On a worldwide basis, PepsiCo's product portfolio includes 16 brands that generate more than $500 million in sales each year, ten of which generate more than $1 billion annually. Overall, PepsiCo garners about 35 percent of its retail sales outside the United States, with Pepsi-Cola brands marketed in about 160 countries, Frito-Lay in more than 40, and Tropicana in approximately 50. As 2001 began, PepsiCo was on the verge of adding to its food and drink empire the brands of the Quaker Oats Company, which include Gatorade sports drink, Quaker oatmeal, and Cap'n Crunch, Life, and other ready-to-eat cereals. When Caleb D. Bradham concocted a new cola drink in the 1890s, his friends' enthusiastic response convinced him that he had created a commercially viable product. For 20 years, 'Doc' Bradham prospered from his Pepsi-Cola sales. Eventually, he was faced with a dilemma; the crucial decision he made turned out to be the wrong one and he was forced to sell. But his successors fared no better and it was not until the end of the 1930s that PepsiCola again became profitable. Seventy years later, PepsiCo, Inc. was a mammoth multinational supplier of soft drinks, juices, and snack food. PepsiCo's advance to that level
was almost entirely the result of its management style and the phenomenal success of its television advertising.
Key Dates:
1898: Pharmacist Caleb D. Bradham begins selling a cola beverage called Pepsi-Cola. 1905: Bradham begins establishing a network of bottling franchises. 1923: Bradham's company goes bankrupt. 1928: Roy C. Megargel reorganizes the firm as the National Pepsi-Cola Company. 1931: Company again goes bankrupt and is resurrected by the president of Loft Inc., Charles G. Guth. 1933: The size of Pepsi bottles is doubled, increasing sales dramatically. 1936: Pepsi-Cola Company becomes a subsidiary of Loft. 1939: First national radio advertising of the Pepsi brand. 1941: Loft and Pepsi-Cola merge, the new firm using the name Pepsi-Cola Company. 1964: Diet Pepsi debuts; Mountain Dew is acquired from Tip Corporation. 1965: Pepsi-Cola merges with Frito-Lay to form PepsiCo, Inc., with the two predecessors becoming divisions. 1967: Frito-Lay introduces Doritos tortilla chips to the national U.S. market. 1977: PepsiCo acquires Taco Bell.
1978: PepsiCo acquires Pizza Hut. 1981: Frito-Lay introduces Tostitos tortilla chips. 1986: The Kentucky Fried Chicken (KFC) chain is acquired.
1997: Taco Bell, Pizza Hut, and KFC are spun off into a new company called Tricon Global Restaurants. 1998: PepsiCo acquires Tropicana Products for $3.3 billion. 1999: Pepsi Bottling Group is spun off to the public, with PepsiCo retaining a 35 percent stake. 2000: PepsiCo reaches an agreement to acquire the Quaker Oats Company for $13.4 billion.
Marketing
A large advertisement made to resemble a Pepsi cup at the theme park, Nickelodeon Universe inside the Mall of America. The first of many new designs of Pepsi cans which were released in 2007.In 1975, Pepsi introduced the Pepsi Challenge marketing campaign where PepsiCo set up a blind tasting between Pepsi-Cola and rival Coca-Cola. During these blind taste tests the majority of participants picked Pepsi as the better tasting of the two soft drinks. PepsiCo took great advantage of the campaign with television commercials reporting the test results to the public..In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy. By 2002, the strategy was cited by Promo Magazine as one of 16 "Ageless Wonders" that "helped redefine promotion marketing."
In 2007, PepsiCo redesigned their cans for the fourteenth time, and for the first time, included more than thirty different backgrounds on each can, introducing a new background every three weeks.
Celebrity endorsers
Like Coca-Cola, Pepsi and its associated beverages have had various celebrity endorsers and continue to use them.
Celebrity Endorsements:
Pepsi Slice Mirinda Coke Thumsu p
Imran Khan
Akshay Kumar
Slogans
1950: "More Bounce to the Ounce" 1950: "Any Weather is Pepsi Weather" 1957: "The Light Refreshment" 1958: "Be Sociable, Have a Pepsi" 1961: "Now It's Pepsi for Those Who Think Young" 1963: "Come Alive, You're in the Pepsi Generation". 1967: "(Taste that beats the others cold) Pepsi Pours It On". 1969: "You've Got a Lot to Live, and Pepsi's Got a Lot to Give" 1975: "Have a Pepsi Day" 1977: "Join the Pepsi People (Feeling Free)" 1980: "Catch That Pepsi Spirit" David Lucas composer 1981: "Pepsi's got your taste for life" 1983: "Pepsi Now! Take the Challenge!" 1984: "Pepsi. The Choice of a New Generation" (Commercial with Michael Jackson, featuring Pepsi version of Billie Jean)
1986: "We've Got The Taste" (Commercial with Tina Turner) 1990: "You got the right one Baby UH HUH" ( sung by Ray Charles for Diet Pepsi ) 1991: "Gotta Have It"/"Chill Out" 1992: "Be Young, Have Fun, Drink Pepsi" 1993: "Right Now"Van Halen Song for the Crystal Pepsi Ad 1995: "Nothing Else is a Pepsi" 1996: "Pepsi:There's nothing official about it" (During the Wills World Cup(Cricket) held in India/Pakistan/Srilanka)
1997: "GeneratioNext"." With the Spice Girls " 1998: "Yeh Dil Mange More"(In Urdu meaning "My heart wants more")(Pakistan) 1999: "Ask for More"/"The Joy of Pepsi-Cola" (Commercial with Britney Spears/Commercial with Mary J. Blige)
2000: "Aazadi dil ki" (India) 2003: "It's the Cola"/"Dare for More" 2005: "Wild Thing"/"Ask For More" (With Jennifer Lopez & Beyonc Knowles) 2006: "Why You Doggin' Me"/"Taste the one that's forever young" Commercial featuring Mary J. Blige
2007: "More Happy"/"Taste the one that's forever young" (Michael Alexander) 2008: "Yeh hai Youngistaan Meri Jaan!" (India) 2008: "Pepsi Stuff" Super Bowl Commercial (Justin Timberlake) 2008: "epsi is #1" v commercial (Luke Rosin) 2010:Youngistaan WOW!
Pepsi hard to inspire vision and direction for large global company. Not all PepsiCo products bear the company name PepsiCo is far away from leader Coca-cola in the international market - demand is highly elastic. OPPORTUNITY: Food division should expand internationally Noncarbonated drinks are the fastest-growing part of the industry There are increasing trend toward healthy foods Focus on most important customer trend - "Convenience". THREATS: F&B industry is mature Pepsi is blamed for pesticide residues in their products in one of their most promising emerging market. e.g. in India Over 50 percent of the company's sales come from Frito-L ay; this is a threat if the market takes a downturn PepsiCo now competes with Cadbury Schweppes, Coca-Cola, and Kraft foods (because of broader product line) which are well-run and financially sound competitors. Size of company will demand a varied marketing program; Social, cultural, economic, political and governmental constrains. STRATEGIES:
The purpose of the strategy is to increase the EPS by 15% per annum and increase PepsiCo's stock price. There are two ways to increase the EPS, first is to increase the income and second to decrease the amount of stocks outstanding.
PepsiCo in India
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 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. As of 2005, The Coca-Cola Company and PepsiCo together hold 95% market share of softdrink sales in India. PepsiCo has also been accused by the Puthussery panchayat in the Palakkad district in Kerala, India, of practicing "water piracy" due to its role in exploitation of ground water resources resulting in scarcity of drinking water for the panchayat's residents, who 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.
executive vice president, operations, and will add global procurement and IT to his responsibilities. PepsiCo said Nooyi has directed the company's global strategy for over a decade and was the primary architect of its restructuring, including the divestiture of its restaurants into the success Brands, Inc., the spin-off and public offering of company-owned bottling operations into anchor bottler Pepsi Bottling Group, acquiring Tropicana, and the merger with Quaker Oats that brought the vital Quaker and Gatorade businesses to PepsiCo.Recently, Nooyi has been driving critical cross-business initiatives to enhance operations and enable PepsiCo meet the changing needs of consumers and retailers, the company said.Speaking on behalf of PepsiCo's board of directors, presiding Director Robert E Allen said: "We have seen first hand the difference that Indra has made on the business andthe people, and we look forward to working even more closely with her to usher in the next generation of dramatic growth and advancement that has been a hallmark of PepsiCo since its founding." On her part, Nooyi described her elevation as a humbling experience. "I am humbled by the opportunity to lead PepsiCo, and profoundly grateful to follow in the footsteps of Steve Reinemund, Roger Enrico, Wayne Calloway and Don Kendall". "Steve has steered the company to a strong and enviable position, and he will be a continuing source of wisdom and perspective. I am equally fortunate to have amazing partners, not only on the board and executive team, but in the 1,57,000 bright, talented colleagues around the world who deliver the results every day and are as committed as I am to continue capturing every growth opportunity," Nooyi said. As CEO, Nooyi's leadership team of direct reports will include the company's division chiefs - Michael D. White, PepsiCo vice chairman and chairman and CEO of PepsiCoInternational, who is also a member of the board of directors; Albert P Carey, President and CEO of FritoLay North America; John C Compton, President and CEO of Quaker-Tropicana- Gatorade; Thomas Greco, President of PepsiCo Sales; and Dawn Hudson, President and CEO of PepsiCola North Americ."
PepsiCo nourishes consumers with a range of products from tasty treats to healthy eats that deliver enjoyment, nutrition, convenience as well as affordability
Beverages
PepsiCo Indias expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Nimbooz, 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.
Foods
PepsiCos food division, 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.
ORGANIZATION CHART
VICE PRESIDENT
GENERAL MANAGER
BRAND MANAGER
CUSTOMER EXECUTIVE S
CUSTOMER EXECUTIVES
DIET PEPSI
7UP
Great Taste.
MOUNTAIN DEW
MIRINDA ORANGE
MIRINDA LEMON
SLICE
PACK AVAILABLE AND RATES:DRINKS 200ML 300ML 500ML 1Ltr. 1.2Ltr. 1.5Ltr.
PEPSI
RS. 9
RS. 12
RS. 22
RS.35
NA
RS. 50
7UP
RS. 9
RS. 12
RS. 22
RS.35
NA
RS. 50
RS. 12
RS. 22
RS.35
NA
RS. 50
MIRINDA (ORANGE)
RS. 9
RS. 12
RS. 22
RS.35
NA
RS. 50
MIRINDA (LEMON)
RS. 9
RS. 12
RS. 22
RS.35
NA
RS. 50
SLICE
NA
RS. 12
RS. 25
NA
RS. 50
NA
SLICE (TETRAPACK)
RS. 12
NA
NA
NA
NA
NA
AQUAFINA
NA
NA
NA
RS. 15
NA
NA
LEHAR SODA
NA
NA
NA
NA
MARKETING MIX OF PEPSI:1). PRODUCT : PEPSI. 7UP. MOUNTAIN DEW. MIRINDA (ORANGE). MIRINDA (LEMON). SLICE. AQUAFINA. LEHAR SODA. 2). PACKAGING AVAILABLE: 1.5 LITRE (PET). 1.2 LITRE (PET). I LITRE (PET). 500 ML (PET). 330 ML CAN. 300 ML (RGB). 250 ML (RGB). 200 ML (RGB). TETRA PACK (ONLY SLICE). 3). PRICE:-
Price is governed by many factors like cost, Govt. Excise, Sales Tax and Market. Here price is at with the competitors. 4). PROMOTION :Promotion is the aspect of selling and advertising or communicating the benefit of the product or service. To the consumers, as the market segment involved in order to persuade them to purchase such product or service.
RESEARCH OBJECTIVES
To find the market share of Pepsi To increase market share the of Pepsi on the other brands in Kathua (J&K) To determine the most dominating flavour of Pepsi in the market
RESEARCH METHODOLOGY
POPULATION
The population consists of all those retailers in the defined area who stock and sell all relevant brands of cold drinks i.e. Pepsi & Coke.
POPULATION ELEMENT
It is the unit of study of research. All those retailers, which qualify for the above criteria and being covered in the survey, form population element.
Q1).
YES
NO
76%
24%
Interpretation:We find that 55% of RETAILERS get the supply REGULARLY and 45% of RETAILERS don`t get the supply REGULARLY.
Q2).
YES
NO
80%
20%
Interpretation: We find that 80% of RETAILERS get all the BRANDS of PEPSI and 20% of RETAILERS don`t get all the BRANDS of PEPSI.
Q3).
YES
NO
48%
52%
Interpretation:We find that 52% of RETILERS get all SCHEMES REGULARLY and 48% of RETILERS don`t get all SCHEMES REGULARLY.
Q4).
CAN(330ML.)
35%
60%
5%
Interpretation:We found that SELLING of PET is 35%,RGB is 60% and CAN is 5%.
Q5).
YES
NO
90%
10%
Interpretation:We find that Equipments provided to Retailers is 90% and 10% are those who are not getting that Equipments.
Q6).
DISTRIBUTION
ADC
CUSTOMER EXECUTIVES
ADVERTISEMENT
42%
18%
32%
8%
Interpretation:We find that Sales increase by DISTRIBUTORS is 42%, by ADC is 18%, by CUSTOMER EXECUTIVES is 32% and by ADVERTISEMENT is 8%.
Q7).
Are you satisfied with the job of the MERCHANT of your AREA?
HIGHLY SATISFIED
SATISFIED
DISSATISFIED
72%
23%
5%
Interpretation:We find that 72% of RETAILERS are HIGHLY SATISFIED, 23% OF RETAILERS are SATISFIED and 5% of RETAILERS are DISSATISFIED.
Q8). PROFIT?
YES
NO
82%
18%
Interpretation:We find that 82% of RETAILERS got profit and increase in sale and 18% are not got any profit and increase in sale.
Does prime position of your VISICOOLER help you in increasing your sales
YES
NO
89%
11%
Interpretation:We find that 89% of RETAILERS got increase in sale and profit and18% of RETAILERS not got increase in sale and profit.
Q10).
Does RACK and WARMDISPLAY help in increasing your sales and profit?
YES
NO
58%
42%
Interpretation:We find that 58% of RETAILERS says that got increase in sale and profit and 42% of RETAILERS says that not increase in sale and profit.
Q11).
YES
NO
22%
78%
Interpretation:We find that 22% of RETAILERS says that company solve our GRIEVANCES and78% of RETAILERS says that company not solve our GRIEVANCES.
Q12).
YES
NO
92%
8%
Interpretation:We find that SUGGESTIONS given by Retailers is 92% and 8% of Retailers not given any SUGGESTIONS about the company.