CONTENTS

Chapter 1: Introduction to the Study

1.0

Introduction

1.1

Purpose of the Study

1.2

Importance and Relevance of the Study

1.3

Research objective

1.4

Scope of Study

1.5

Characteristics of soft drinks

1.6

Methodology to be used

1.7

Limitations of Study

Chapter 2: Industry Profile

2.0

Overview

2.1

Mission and vision of PepsiCo

2.2

History of Pepsi

2.3

Pepsi the Indian experience

Chapter 3: Introduction of the organization

3.0 Lumbini beverage Pvt. Ltd.
3.1 Profile of LBPL
3.2

Organizational hierarchy

3.3

Production process

3.4

Product profile

3.5

SWOT analysis

Chapter 4: Marketing Strategy & Distribution Channel

4.0

Marketing strategy

4.1

Marketing mix

4.2

Promotional activities

4.3

Advertising & sales promotion L.B.P.L

4.4

Merchandising policy

4.5

Distribution channel of LBPL

Chapter 5: Product Performance of Pepsi

5.0

Targeting product comparison

5.1

Product availability

5.2

Pricing of product

5.3

Pepsi performance in comparison

Chapter 6: Data Analysis and Interpretation

6.0

Interpretation of outlets

6.1

Market share

6.2

Market share of different soft drinks

6.3

Market share of equipments

6.4

Percentage share of glow sign board

6.5

Percentages of satisfied distributers

Chapter 7: Market survey

2

7.0

Research methodology

7.1

Dealer survey

7.2

Limitations of the research

Chapter 8: Conclusions and Suggestions

8.0

Conclusions

8.1

Suggestions
Annexure
Glossary of terms
Questionnaire
Bibliography

INTRODUCTION

India with a population of more the 100crore is potentially one of

the largest consumer markets in the world with urbanization and
development of economy, tastes and interests of the people
changes according to the advance nation.
Beverage industry is one of the fast growing industries in India. It
can be divided into two sections i.e. carbonated and non
-carbonated. The carbonated drinks can be further classified into
Cola, Lemon, Orange, Mango & Apple segments etc.
Marketing includes all the activities like promotion, distribution,
advertising etc. to fulfill the demands of all segments of
consumers. Marketing is also convert social needs into profitable
opportunities. So this topic provides all the essentials to the
theoretical knowledge with practical knowledge and to inculcate
the efficiency. It is also a requirement for the company to improve
its service and product quality to achieve the ultimate goal.
Marketing is about winning this new environment. It is about
understanding what consumers wants a supplying its more
efficiency and more conveniently.
India where more than 50% of the total population exists below
poverty line the consumer cant afford such high price for soft
drinks. As a result the trading activities of the soft drinks industry
are concentrated in and around big cities and town where the
purchasing power of population is considered comparatively high.
Soft drinks industries in India has annual sale of about
5000crores, with per capita consumption of soft drinks at a low of
eight bottles per annum is due to price factor.
So, marketing is both philosophy and technology. It is technology
because it suggests ways and means for effective production and

distribution of goods and services in the market to give maximum

satisfaction to the consumer.
In this regard the marketing management with have to apply to
marketing technology in the conceptual philosophy of a system. It
is the process of system analysis in the marketing management
for effective research and can be defined, systematic objective
and exhaustive study of tasks relevant to any problem in the field
of marketing .
PURPOSE OF STUDY
A project cum training is an essential part of MBA +PGDM
curriculum. This study was conducted on A comparative
assessment of the Pepsi performance in the cold drink
market in Patna and promotional activities in Patna
central region.
It also helps to make improvements in service and quality of the
Pepsi product, for their long term existence in the market and
earning profit.
Simultaneously, it is also helpful to me to learn about the
consumers behavior and their demand for the beverages in
particular area (market).
Executive training was undertaken on the following
objectives:
To know the brand acceptance of Pepsi in the cold drink
market in Patna.
To determine the factors which persuade the retailer for sale
of Pepsi?
To know the effects of anti-cola advertisement on sale of
Pepsi.
5

 To find out the companys position & market share in the

soft drink market.
To find out the exclusive outlets of Pepsi & its competitors.
To find out the various competitors of Pepsi & their strategy.
To find out promotional activities of Pepsi & its competitors.
To understand the acceptance of Pepsi as compared to coke
To identify the organizational features of Pepsi.

IMPORTACE OF THE STUDY

The topic has been already given to the company to collect
information about current happening in the market. It also
helps to makes improvement in service and quality of the
product, for their long term existence in the market and
earning profit.
Simultaneously, it is also helpful for me to learn the consumer
behavior and observe their attitude toward demand of
particular products practically.
RESEARCH AND OBJECTIVES
The following were the main objectives of the
research:
To know the stock position of Pepsi and its competitors at
different outlets.
To study the marketing and promotional activities at various
retail outlets.
To know per day sale of Pepsi brand and its competitors in
crates.
6

 To study the percentage share of Pepsis cooling equipments.

To know how many outlets are covered with glow signboard
of Pepsi?
To know the market share of Pepsi products.

SCOPE OF STUDY
The main scope of this research is ascertaining the various
methods to increase the sales volume and distribution activity of
concerned company. The methods include regular measures to
make the position in the market and taking measures to confirm
the brand position. One of the most important aspects of this
study is also to increase the market segment for the products.
OTHER SCOPE OF THIS TOPIC MAY BE AS FOLLOW:

Target market segment

Comparison of Pepsi products with its competitors.
Identification of market potential.
Evaluating customers need with company products.
Collecting suggestions for product improvement etc.
Evaluating awareness about Pepsi Company.

CHARECTERISTICS OF THE SOFT DRINKS

7

 Unfinished goods (required chilling before consumption).

Two way transportation (one filled bottles to market and
second empty bottles from market
Heavy expenses on advertisement and promotions
More attention to retailer .several schemes and other
facilities provided to them
New flavor are introduced from time to time
Highly competitive market with only two equally strong
players
METHODOLOGY OF THE RESEARCH
For the purpose of gathering data from various dealers
and consumer, I preferred collection of primary data with the help
of open and close-ended questionnaires.

Defining the problem and the research objectives.

Developing the research plan.
Questionnaires.
Sample size.

LIMITATION OF THE STUDY

The finding of the study may not be applicable to other
places except Patna.
The respondents were too busy to give exact answer to all
questions.
There is chance of under estimation of sales and income as
it is the nature of human beings.
This study analysis is opinion of retailers only.
The results may not hold good in the long run as taste and
preference of human beings are subject to change over a
period of time.
There are chances of sampling error.
8

 Chances of biased data collections to respondents.

OVERVIEW
PepsiCo is a world leader in convenient foods and beverages, with
2006.Revenues of more than $35 billion and more than 168,000
employees across the world. Its world renowned brands are
available in nearly 200 countries and territories.
Building for the future
PepsiCo is among the worlds largest consumer products
companies focused on convenient foods and beverages. They
were proud on their products are some of the worlds best known
brands and they are enjoyed by billions of people around the
world every day. There products are recognized for their quality,
taste and value, and increasingly, for their contribution to
healthier diets.
ABOUT US:
the Pepsi Bottling Group (PBG) is the world's largest
manufacturer, seller and distributor of Pepsi-Cola beverages,
Some of the world's most recognized consumer brands. PBG
9

became a publicly-traded company in March 1999 through one of

the largest initial public offerings in the history of the New York
Stock Exchange.
PBG generates nearly $11 billion in annual sales. It operates in
the United States, Canada, Greece, Mexico, Russia, Spain and
Turkey, accounting for more than one-half of the Pepsi-Cola
beverages sold in North America, and about 40 percent of the
Pepsi-Cola system volume worldwide.

OUR CUSTOMERS
In the U.S. and Canada, most of PBG's volume is sold in
supermarkets, followed by the convenience and gas channel,
where Pepsi brands have the market-share lead. The balance of
volume is sold in mass merchandising outlets, restaurants and
other fountain accounts.
In the U.S., Canada and Mexico, our sales people interact
directly with most customers to sell and promote Pepsi products
(Direct Store Delivery). In other international territories, PBG
serves customers with a combination of Direct Store Delivery
and third-party distributors.
Among the services we provide to our customers are proven
methods to grow not only Pepsi brand sales, but sales in the
overall beverage category. Ultimately, our goal is to help our
customers grow their beverage business by making our strong
product line-up readily available to consumers at every shopping
occasion.

10

OUR ORGANIZATION
The people at PBG reflects the Company's emphasis on superior
sales capability and service. In North America, more than onehalf of PBG employees work in sales, followed by nearly onethird in operations.
Our organizational structure, based on a general management
model, reflects the same priorities. The Vice President/General
Managers of PBG's market units lead marketing and sales efforts
in contiguous geographic areas with common major customers.
We designed our organization to give our market units the
autonomy to serve the needs of individual customers, develop
market-specific strategies, and respond to local marketplace
dynamics. From the General Manager to the frontline customer
representative, the entire PBG sales force competes on a local
level to serve existing customers and to win new accounts.
The Pepsi Bottling Group is a fast-paced, customer-focused
company, with an entrepreneurial spirit. We offer careers in sales
and sales operations, manufacturing, finance, human resources,
information technology, field marketing, and general
management. The Company's success hinges on the thousands of
face-to-face transactions our frontline employees conduct with
customers every day. That is an exciting, empowering career
proposition for the individuals who make up PBG's sales force
and for the teams that support and lead them. The Company is
an equal opportunity employer and values the diversity of its
workforce
PBG AND PEPSICO
PBG became an independent, publicly-traded company in March
1999. PepsiCo retains an equity interest in PBG of about 40
percent.
11

As an independent entity, PBG benefits from a much sharper

definition of its role and is able to execute its business strategy
more effectively on a local market level. PepsiCo's focus is on
what it does best, which is developing innovation, building its
powerful brands and creating the world-class marketing
programs to support them. And, as PepsiCo's largest bottler, we
at PBG can do what we do best: making, selling and delivering
more of those brands, more profitably than ever before.
PepsiCo world headquarters is located in purchase, New
York, approximately 45 minutes from New York City. The sevenbuilding headquarter complex was designed by Edward Durrell
Stone, one of Americas foremost architects. The building
occupies 10 acres of a 144- acre complex that includes the
Donald M. Kendall sculpture Gardens, a world acclaimed sculpture
collection in a garden setting. PepsiCo global CEO is Indira K.
Nooyi and Sanjiv Chadha is Indian PepsiCo CEO.
MISSION AND VISION OF PEPSICO
PepsiCos mission is to be the world premier consumer Products
Company focused on convenient food 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 everythings wed, we strive for honesty, fairness ail,
At 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 we operate environmental,
social, economicalcreating a better tomorrow than today.
12

Our vision is put into action through programs and focus on

environmental stewardship, activities to benefit society, and a
commitment to build shareholder value by making PepsiCo a truly
sustainable Company.
HISTORY OF PEPSI
Pepsi-Cola Company was founded by CALEB D BRADHAM in
1890 at North Carolina in USA. Its CEO is Indira k.Nooyi and in
India PepsiCo. Holding its chairman is Mr.Rajiv Bakshi. The head
office of PepsiCo in India is at Gurgaon. Presently it operates in
196 countries.
Pharmacist CALEB it to cure the disease DISPARSIA, It is from
this word that was related to Pepsi. Soon it entered the American
market as soft drink which at that time was mostly dominated by
Coca-Cola, but soon Pepsi was able to dominate the Cola market
and thereafter it has been no looking back. Pepsi and Coca-Cola
are engaged in a ferocious cold war that has taken the whole
world by storm.
Pepsi stands 51st position among the fortunate 500 companies of
the world. Its total capital is approx $3000crore and total sales
annually are worth $37crore, half of which comes from beverages
and other half from food division. The beverages arm of the
PepsiCo. Is Pepsi-Cola company and the snack food company is
called Frinto-lay-Inc.

PEPSI THE INDIAN EXPERIENCE

Previously there were three tag Yehi Hai Right Choice Baby,
Nothing Official about It& yeh Dil Mange More which
was immediately ring a bell-its to be a Pepsi. Pepsi in short span
13

of its operations in India has found a place in hearts and minds of

the Indian consumers. The success has primarily been due to the
innovative and passionate Indian team which has been built over
the years. Pepsi is a trendsetter managed and run by Indians,
where important decision is taken locally.
Pepsi started its operation in India in 1988in Kanpur and since
PepsiCo. Has set up a fully integrated operation India viz.
manufacturing, research and development, marketing distribution
and franchising covering fruit/vegetable processing, export,
snack and food beverages, In 1993 PepsiCo. Set up a holding
company to further accelerate growth through new initiatives and
joint ventures PepsiCo is fully committed to India and the national
objectives of development of technology and accelerating exports
and employment. It has invested 500crore in India to develop the
local market. Pepsi has distributed exclusive franchises in India to
bottle its total products. There 34 bottling plant of Pepsi in India.
Pepsi directly controls some and rest is under various franchises.

14

Chapter 3: Introduction of the organization

3.0

Lumbini Beverage Pvt. Ltd.

3.1

Profile of LBPL

3.2

Organizational hierarchy

3.3

Production process

3.4

Product profile

15

BOARD OF DIRECTORS
1. Mr. Charan Khilani (Director)
2. Mr. Ravi Khilani (Managing Director)
3. Mr. Manoj Khilani (Plant Director)
4. Mr. G.P.Singh (CEO)
5. Mr. Arun Kumar Singh (TDM, Patna)

16

ORGANIZATIONAL HIERARCHY

17

The process of manufacturing of aerated water (soft drink) like pepsi brand
product is divided into five main parts such as:1) WATER TREATMENT.
18

2)
3)
4)
5)

SYRUP MAKING.
BOTTLE WASHING.
FILLING.
TESTING OF PRODUCT.

WATER TREATMENT
Water treatment is very essential in soft drinks plant as the nature and quality of
varies from place to place. To set uniform and standard water, the process of
treatment is carried on. The water taken out from bore well having depth of
500m by the help of motor pump & pipe lines. are connected to the storage tank
where is pre-chlorinated by chlorinator & then by the help of pipeline comes to
a treatment tank called Coagulation tank where to this water, solution of
different strength of bleaching powder, ferrous sulphate, hydrated lime are
added through dosing pump to reduce the alkalinity hardness, kills the bacteria
and the pH become 7.5.Mechanical stripper mixes the chemical & then
suspended matter settles down as sludge& clear water passes to retention tank.
From this tank the water passes through sand filter containing fine sand and
pebbles & carbon filter containing granular carbon & finally through the water
polisher ,micron filter, UV lamp to ensure clear & sanitary water for use.
Further water is used in bottle washer &boiler needs softening .For this
purpose, the water from storage tank after passing through two water filter beds
containing fine sand and granular carbon respectively comes through a bed of
resin where it is softened. This softened water is essential to use in the boiler &
bottle.Water to reduce scale formation inside the machines.

19

Description of the above ray diagram

Firstly the water should be taken out from the earth through motor from bore
well which is about 500m deep. After that it store in the underground tank
which is also know as storage tank having capacity of 1.5lakh litre at that time
the hardness of water is 6.8 ppm.it has two in number. Then it reaches at
20

coagulation tank having capacity of 80,000 litres in which ferrous, lime and
bleaching powder is there which is used to remove the hardness of the ground
water then it reaches to intermediate tank and after that it passes through sand
filter in which small pebbles and fine sands are there ,where they remove small
particles and transfer to the ACF i.e. activated carbon filter in which mainly
chlorine is used having volume of 30 cubic meter per gram then it passes
through 5 micron cartilage and UV light to remove small microbes.

21

PRODUCT PROFILE

22

3.5

SWOT ANALYSIS

After doing 8 weeks field work and survey I can take it out the SWOT analysis
for Lumbini Beverages Pvt. Ltd. and Pepsi Brand.
Strength
Lumbini Beverages Pvt..Ltd. is Franchisee Owned Bottling
Organization (FOBO) of worlds famous cold drink company Pepsi.
LBPL uses state art and fully automatic machines and technology for
the production and bottling of the soft drink.
It has a very strong network and built market and currently holds all
the parts of the state.
It has wide range of product varieties & takes back breakage, burst
bottles etc.
Though it has strong brand equity, brand image , it can survive in the
most competitive situation.
It has built market & market share and holds more % with respect to
its competitors.
Customer retention and satisfaction after sales is good.
Weakness
No cost cutting program for the products.
Promotional activities in the rural market are not up to the mark as
compared to the urban market.
Brand Pepsi in the cola flavor is one of the popular lagging behind its
nearest competitor, only due to high sugar content and less thrilling
taste.
Not availability of all the products on demand.
Lacking of communication with retailers.
Timing of distribution is not very good.
The cooling system is not distributed properly.

23

Opportunities
Although in the cola market there are many competitors, Pepsi still
has the opportunity to enlarge its market share because the cola in
the market is quite monotonic. Most of the end user is young people.
There are still some people who do not like the taste of the cola. So
we can try to provide some other taste of cola such as adding some
lime juice. We can change the flavor in order to meet different taste of
different people.
New innovative idea for advertisement like road show like bheja fry
7up try & mountain dew campaign

Threats
As to the threats, all of us know that Pepsi-Cola and Coca-Cola have
the completion for about 80 years. Although Pepsi-Cola have won
several times during this completion. The market share of Pepsi-Cola
is a little bit smaller than Coca-Cola.
There is another threat nowadays, some local cold drinks such as
sudha dairy and anuj dairy cola have takes their feet in the market.
One of the products of their competitors in clear lime and lime flavor
as a very good in market share due to its taste.
Coca-Cola is now spending more & more to boost up the market share
& sale.

Chapter 4: Marketing Strategy & Distribution Channel

24

4.0

Marketing strategy

4.1

Marketing mix

4.2

Promotional activities

4.3

Advertising & sales promotion L.B.P.L

4.4

Merchandising policy

4.5

Distribution channel of LBPL

MARKETING STRATEGY:
Marketing Strategy is the complete and unbeatable plan designed specifically
for attaining the marketing objective of the firm. The market objective

25

indicates what the firm indicates, what the firm wants to achieves, the
marketing strategy provides for achieving them.
The marketing is not just idea. It is a well outlined plan, and there are
different ways to formulating it. Basically formulating of marketing strategy
consists of two main steps.
Selecting a target market, assembling the marketing mix, actually, the target
marketing and marketing mix together constitute the marketing strategy of
the firm.
When the Pepsi food company entered in the Indian soft drink market, the
market was already prevailed by coke and previously it was Parle. Pepsi
tried to establish in India with a unique marketing policy. Pepsi took into
consideration of youth segment target market. Though the advertisement of
Pepsi highlighted the style of living of young generation with different walk
of life, Pepsi brought in its advertisement different stalwarts personalities
from fields like young cine stars, sport stars and famous personalities from
different fields. It has attracted the young generation and of course increase
the sale of Pepsi, also organized many national and international sports
events to attract the young generation.
MARKET MIX OF L.B.P.L
The set of controllable tactical tools:

26

A product, place, service and promotion (4ps) that the firm blends to
produce the response it wants in the target market. These are the following
4ps.
Products: - That could meet the identified needs of chosen
consuming groups.
Place:

It

performs

various

functions

like

transportation,

warehousing, channel management etc. so the products easily reach

the consumer.
Promotion: - The firm carries out a no. measure like personal selling,
advertising and sales promotion programmed with view to
communicate to the consumer and promoter of the product.
It is the mechanism to achieve the consumptions of marketing
process, striking the level of price that is accepted to the firm as well as
consumer.

4Ps policies of the Pepsi products:

1.

Product: - There are five lines of products of soft drink in India that is
almost matched with international quality product line.
Pepsi - 200 ml, 300ml, 600ml. and 2000 ml.
Miranda - 200 ml, 300ml, 600ml. and 2000 ml.
7 up - 200 ml, 300ml, 600ml. and 2000 ml.

27

 Mountain Dew - 200 ml, 600ml. and 2000 ml.

Slice - 250 ml, 500ml, and 1000 ml.
2.

Price: - Product price are fixed by Pepsi Co India according to competitors

product price.

3.

Place: - Pepsi has a strong channel of distribution, and intermediaries

command the distribution work.
Plant - Depot - Distributor - Consumer.
By this simple distribution, Pepsi is doing well. The company is trying to
reach every remote village area. The company has succeeded to some extent
in reaching its target.

3.

Promotion :- In the specific, sales promotion methods are those sales

activities that supplement both - personal selling and advertising and coordinate them and help to make them effective such as display, shows and
exposition and demonstrations and other recurrent selling efforts not in
ordinary route.
Pepsi has variety of tools and techniques of sales promotion.
Like for example sales promotion letters, catologs, point of purchase (POP),
display, customer service program and demonstration of free sample.
PROMOTIONAL ACTIVITIES (FOR RETAILERS)
Promotional activities consist of various means of communicating
persuasively with the target audience. The important methods are:

28

Advertisement: - Where an identified sponsors pays media

(such as

TV) to transmit to target consumer.

Personal selling:- Where sales representative employed by the firm engage
in interpersonal communication with individual consumers and prospective
customers.
Sales promotion:- Where the market utilizes displays, demonstrations,
premiums, contests or similar devices.
Publicity and Public relation:- Help to stimulate supportive news items
about the firm and its product that have greater credibility with public than
advertisement.
Of all the methods of promotional activities that constitute the promotion
mix, sales promotion is the only one method that makes use of incentives to
complete the Push Pull promotional strategy of motivating the sales
force, the distributor and the consumer transacting a sale.
According to American Marketing Association sales promotion refers
Those activities other personal selling, advertising and publicity, that
stimulate consumer Purchasing and dealer effectiveness, such as display,
shows and exhibition, demonstration and various other non-recurrent selling
efforts not in ordinary. Sales promotion is also known by the name of
Extra Purchasing Value (E.P.V.).

29

VISI COOLAR DISPLAY,OYE BUBBLY CAMPAIGN

MS DHONI,

SHAHRUKH,

DIPIKA

MEANING AND OBJECTIVE OF SALES PROMOTION

30

SL.
No
1

2.

3.

4.

Sales
Promotion
Price off offers

Quantity off
offer

Primium

Coupans

M eaning

Obje ctive

Offering product at lower

than the normal price

To encourageimmediate
sales, attract non nusers,
induce new product trial.

offering more quantity of

the sa me p ro d uc t a t no
e xt r a c o s t o r a ve r y
no mina l inc re a s e in the
price the larger quantity
pack.

To e nc o ur a ge lo nge r
d uration co nsump tio n,
highest or excess quantity
mo v e me n t fr o m t h e
fa c t o r y, t r a d e u p
c o n s u me r fo r h ig h e r
quantity packs size.

O f fe r o f a n a r t ic l e o f
me r c ha nd is e a s a n
incentive in order to sell
product of service

To encourage purchase
s t imula t e lo ya lt y, o ff
season sales promotion,
induce trial of premium to
the consumer.

W he n t he c o ns ume r is
entiled to redeem specific
standeard certifecate for a
p r o d uc t fre e o r in p a r t
p a yme nt. C o up o ns a r e
u s e d b y b o t h t h e
ma nufa c t ur e r s a nd t he
d e a l e r s fo r s a le s
promotion. Coupons may
be distributed by e- mail,
by media advertisements,
d o o r - t o - d o o r. I n s id e
p ro d uc t p a c k a ge o r b y
dealers on purchase.

to e nc o ura ge p ro d uc t
trial, build loyalty, trade
up regular users stimulate
re-purchase rate, solicit
enquiries.

W h e n in d iv id u a ls a r e T o c r e a t e b r a n d
invited to compete on basis awareness and stimulate
of creative skills. The latter int e r e s t in t h e b r a nd
is based on the chance or acquaint consumers with
luck factor.
brand usage and benefits
build traffic at the store
p r e c ip it a t e b r a nd
p ur c ha s e . O b t a in
c o ns ume r fe e d b a c k ,
pjromote advertisiment
theme of the company.

5.

Consumer
contests and
lucky draws

6.

Discounts

O ther than normal trade

and cash discounts.

Point-ofPurchase
(POP)

Tho se sp ec ial d isp la ys, To attract traffic at the

racks banner, exhibits, that r e t a il s t o r e s , r e mind
a re p la c e d in t he re ta il customers, encourage
store to support the sale of impulse buying, ensure
a a brand.
visibility to the advertising
campaign.

7.

31

To push more sales to

trade early cash recovery

ADVERTISING & SALES PROMOTION IN LBPL

Advertising and also promotion activities play a vital role in entire
marketing efforts. Without these aspects a quality product can not survive in
the market. Advertising and sales promotion tools are most essential for the
modern global marketing. This chapter has therefore been devoted to the
studies of advertising and sales promotional activities in Lumbini Beverage
Pvt. Ltd. The two basic objectives for carrying out such various
promotional activities by Lumbini Beverages Pvt. Ltd. is To generate more
sales as well as to create and maintain an image of its product L.B.P.L.
carries out its promotional activities as controlled and integrated
programmers of communication and material design present its soft drink to
the perspective customers. It also helps in communicating the need
satisfying of soft drink to facilitate the sales eventually to contribute towards
the profit in long run.
The sales used L.B.P.L. for fulfilling the various purposes for its
promotional activities are the following: Food N Fizz
Space Club
Payaas bujyhao profit badhao
Agreement
GOD(Glass on deposit)
Displaying equipments
32

 Scratch card, lucky draw & prize.

MERCHANDISING POLICY
In todays fast moving industry and highly competitive market, only those
products are likely to be purchased which are capable of hitting the impulse
of the consumers. The products appeal should be able to penetrate and get
embedded into the perpetual space of the consumers mind. The concerned
product should induce to the consumers. Pepsi believes that Jo Dikhta Hai
Wahi Bikta Hai i.e. any product which is visible is bound to be sold.

METHODS OF MERCHANDISING

Visi cooler placement

Glow signboard

Paintings

Crate Stacking

Umbrella

Banners

Display

Special Schemes

DISTRIBUTION CHANNEL OF L.B.P.L

33

To make its products available at the right place, at the right time in the
market, at the right place, the sales department of the company plays major
attention towards controlling the channel of distribution.
The company right from its beginning stage maintains single type of
marketing channel. The nature of channel is as follows:
COMPANY

DEPOT

DISTRIBUTORS

RETAILERS

CONSUMERS
ABOUT DISTRIBUTORS
At first, soft drink is supplied to distributors. Retailers cannot take the
delivery directly from the company. They have to take it from their
respective or nearest distributors. The distributors selected on the basis of
assurance given by them regarding minimum sales, which they have to
maintain annually. The selection is also done on the financial position and
reputation of distribution in the market. As for example, first priority is
given to those people who are in cigarette business. Depending upon market,
34

each distributor in its initial stage, deposit some security money. This
amount varies between five thousands to the thousand. The distributors, at
first have to seek the permission of the sales department for the number of
cases of soft required by them. After getting the proper authority from the
sales department, they take the delivery from the shipping department
paying the requisite either in cash or as demand draft.
The distributors can be dropped if they fail to achieve the required target to
sales. They can be also dropped when they dont follow the instructions
given by the company or when they charge high price or when they are
engaged in black marketing, loading etc. But the company has not dropped
any of its distributors till now.
The supply of soft drinks to the distributors depends upon the ups and
downs in the sales. But, in the initial stages, the distributors have to sell up
to a minimum target set by the company or as decided by an agreement
between the company and the distributors. In the last stages soft drink is
supplied as and when demanded by the distributors.
ABOUT RETAILERS
The distributors select the retailers. There is no relation between the
company and its retailers. On the other hand there are no definite and fixed
criteria for the selection for appointment of retailers from the side of
distributors. Any one like Panwala, Cigarette shop or any other

35

shopkeeper can have the stall for the sale of soft drinks and they are called
or dealers. They have to give assurance to the concerning distributors for
better sales and at the time of taking delivery they have to deposit the
security that is the change for the empty bottles with specified purchasing
price.
Generally, there is no compulsion on the part of distributors to provide the
transportation facilities to their retailers, but the distributors of the big areas
like Patna, Muzzaffarpur, Patna provides the transportation facilities to their
respective retailers. The distributors and retailers are independent to sell as
they want but are controlled to some extent by the company also, as they
have to give some assurance regarding minimum sale. It happens so because
they are given some incentives also. They are fully independent to gear up
the market, as they want.

36

Chapter 5: Product Performance of Pepsi

5.0 Training product comparison
5.1 Product availability
5.2 Pricing of products
5.3 Pepsi Performance in comparison

Comparative Products
37

SL.No.

Major CSD Brands

Flavor

PCI

CCI

1.

Clola

Pepsi

Coca-Cola,
Thums Up

2.

Clear Lime

7 Up, Mountain Dew

Sprite

3.

Cloudy Lime

Mirinda-Lime

Limca

4.

Orange

Mirinda

Fanta

In above table, I have shown product target in the market. Both companies try to
substitute each other product in the market. When a company dont fulfill
the demand of market then other company substitute that product with own
product. In the market many time seen that consumer demand a product
according to his desire, but due to lack of supply he switch over of substitute
product. So, companies always want with substitute product for enlarging
his market share.
Here, Thums Up and Coca-Cola is substitute for Pepsi, Sprit is substitute
for 7 Up and Mountain Dew, Fanta is substitute for Mirinda & Limca is
substitute for Miranda Lime.

CHAPTER 6: DATA ANALYSIS AND INTERPRETATION

6.0 Interpretation of outlets
6.1 Market share
38

6.2 Market share of different soft drinks

6.3 Market share of equipments
6.5 Percentage share of glow sign board
6.6 Percentage of satisfied distributors

INTERPRETATION OF OUTLETS
TPYES OF OUTLETS

39

1 0 O th e r

9 P h o n e b o o th s

1 G e n e r a l/ K ir a n a s to r e s

8 Ic e - c re a m /
Ic e -c e n te rs
7 c o ld d r in k s
c e n tre
7 C in e m a H a ll
5 H o te l
2 sw eet shop
4 R e s ta u r a n ts
3 P an shop

Interpretation : Many types of retailers in the market to sell the pepsi &
Coke products I have taken that list form company & classified that shops
according to company guidelines. General & Kirana stores are measure thing for
company because their share in one - third So company always try to make good
relationship ship with them because 20% sell come form them.

MARKET SHARE Over all market share of the cold drinks cos. in Patna

40

SL. No.

Companies Name

Total (%)

1.

PCI

26

2.

CCI

38

3.

Parle agro

4.

Amul

5.

Other Local Player's

20

Total (%)

100

PCI
CCI
Parle agro
Amul
Other

Interpretation: PCI market share is little bit short in comparing to Coke for
enlarging more market share PCI will have to invest more in the market and it
advertisement.
Over all market share of PCI & CCI in Patna
41

20%
15%

15%
10 %

17 %
13 %

11 %

10%

9 %

8 %

4 %

5%
0%

12 %

1 %

C o la

C le a r
L im e

C lo u d y
L im e

O ra n g

M ango

Interpretation :- On the basis of my collected data in Patna cold drink market I

have reached this stage that I can show overall market share of all cold drink
flavor.

MARKET SHARE OF DEFFERENT SOFT DRINKS

The Cola Market:
Product

% Share

Pepsi - Cola

42 %

Coca-Cola

13 %

Thumps Up

45 %

Total

100 %

Market Share (%)

42

P C I
C C I

Pepsi-Cola
Coca-Cola
Thumps Up

Interpretation: There is dominancy of Thums Up in the cola segment of soft

drinks in the market. Pepsi is its competitor.
The orange flavored soft drinks:
Product

% Share

Mirinda

52 %

Fanta

38 %

Other

10 %

Total

100 %

Diff. orange flavor market share

43

Mirinda
Fanta
Other

Interpretation: The Graph shows that there is a majority of customers of

Mirinda Orange flavor in the market. It dominates the market over Coca-Colas
product Fanta.
Clear Lime Market share :
Product

% Share

7 up

45 %

Sprite

55 %

Total

100 %

Market Share of clear lime

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Dabur Real
Tropicana
Godrej
Others

Interpretation : There is great dominancy of Sprite in the market. Customers

always demand. They take 7 Up only as a substitute of that.
Mango flavor market share :
Product

% Share

Slice

30 %

Maaza

40 %

Frooti
Total

30 %
100 %

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Chapter 7: Market survey

7.0 Research methodology
7.1 Dealer survey
7.2 Limitations of the research

RESEARCH METHODOLOGY:

46

All the findings and conclusion obtained on the survey done in the working
area. With the limit, I tried my best to select the sample representative of the
whole group. During my job training I maintained different routes during
my dealer survey. I have collected data from the Depot of Patna under the
organization itself.
Data-sources
Retailers/Dealers (Cold drinks stalls, Ice stalls, Hotels, Restaurants Sweet
shop, Pan Shop, General Stores, Telephone Booths etc.) Depot internal
Companys Records etc.
Research - approaches
Survey
Research - instrument:
Interview Schedule
Sampling - plan :
Sampling unit

Distributor

Retailer

Sampling size

02

250

Sampling procedure :
Census survey
Contact method
Personal interview

Secondary Data Collection :

47

The secondary data was collected on the basis of organizational files, official
bulletins and records, official journals, published data in the annual general
report and through various preserved information in the data base at the
Pepsi sites e.g. www.pepsico.com, www.pepsizone.com etc.
Primary Data Collection:
All the dealers/ retailers were personally visited and interviewed. There was
a format for collecting the details of the dealers. The format was filled by
taking the information from the dealer of by monitoring the shops.

DEALER-SURVEY
Dealer-survey, as the word indicates, is the survey of every dealer of soft
drinks in the area. For our practical purpose, the dealer not only includes the
authorized dealers, but it also includes all the retailers-big or small grocery
shops, stationery, restaurants, beetles shop etc., besides these, the various
exclusive stalls and sales of pantry cars are also included in it. In a nutshell,
by dealer survey, I mean who is dealing with the soft drink in someway or
the other in large or small quantity directly or indirectly.
Thus, my study includes all such dealers, which includes following aspects:

No of routes covered by Depot

Crate strength

Per day sale

Chilling ad
48

Advertising

Nature of outlet
Schemes of Pay-off
I had to visit each and every outlet and personally interview them. In order
to know the market share of Pepsi and its competitors, I have conducted a
survey ap Patna and its surroundings area. By the help of survey, I can find
out the reason behind non-availability of Pepsi in the specified area.
The knowledge of case-stock indicates our case-in-trade and that of
competitors. This will indicate our case-velocity, which will help to plan
our bottle as whether our distribution is effective or not. If my case-stock is
low then I may decide for a case stocking campaign. Feedback from
market place regarding servicing of dealers will help us to improve our
service in the lacked areas.
Therefore, appropriate marketing strategy can be worked out depending
upon the findings. Some more uses of Dealer-Survey:

Depot-effectiveness
The Survey can improve the distribution network in these ways:

Immediate activation of non-buyers

Improve the dealer coverage

Increase the realignment of routes

Better control through route card

They should visit the counter on the daily basis including the remote places.
49

Salesman should visit the counter on likely basis.

Market knowledge:
Dealer-Survey gives the total profit of the market by following:

Location of dealers

The type of dealer

No of dealers who keep Pepsi, Coca-Cola and comparing the stock,
The marketing inputs with respect to

Advertising

VISI Cooler

Servicing

Training group for future executives:

Good investigators from these surveys can be recruited to take up future
jobs. These people will be ideally suitable, as they would know the market
thoroughly.

LIMITATIONS OF THE RESEARCH

It was not possible to thoroughly understand the different marketing aspects
of soft drinks in a span of two months.
50

The survey was conducted in the peak season when the sale was too high, by
this I cannot get the appropriate result.
Money- as no stipend was given; it was difficult to cover a wide area.
All the work was limited in Patna area, so the findings should not be
generalized. The finding of survey will be strictly based on the response of
consumers, retailers/dealers, since it is difficult to ascertain the authenticity
of their statement.

Chapter 8: Conclusion & Suggestion

Conclusion
Suggestion

51

CONCLUSION
(1)

The whole analysis shows that are only two companies dominating in the
soft drinks market - Pepsi- Cola & Coca - Cola. There is neck-to-neck
competition between these two companies.

(2)

Coke has invested more in the market. Distribution of - VISI Coolers and
display of Glow Signs board is far more than Pepsi. So, more investment is
needed to break the brand establishment of Thums Up and Sprite.

52

(3)

In all the areas in Patna, almost all the retailers are not satisfied with the
distribution network of the Pepsi products.

(4)

Most of the retailers want glow signboard chilling equipments, which they
are asking from long time.

(5)

In Cola segment, Thums-up and in lime segment, Sprite is the main

competitor of Pepsi.

(6)

Most of the consumers dont like the taste of Pepsi due to its sweetness and
low fizz.

(7)

All the products of Pepsi like 7 up & Slice are not provided when the
retailers demand it.

SUGGESTIONS
(1)

Pepsi should come out with an advertisement, which can block the
customers mind and can change the customers perception about the
product.

(2)

Pepsi is sweet and low fizz soft drink that everybody knows, so lots of
people do not like, therefore to catch the customers, Pepsi should come with
more fizz like Thums-up.

(3)

Executives should take the feedback from the service of the salesman and
the distributors.

53

(4)

Salesman should have better interaction with the retailers which results in by
company from time to time.

(5)

The criteria to provide Glow Signboard, Flax board, VISI Cooler, and
OYC should be changed and a separate department should handle this.

(6)

All the Pepsi products should be provided at required level to snatch the
competitors market e.g. 7 up for Sprite, Mirinda for Fanta and Slice for
Mazza which is dominating the market at present.

ANNEXURE
Glossary of Terms
Questionnaire
Bibliography

54

GLOSSARY OF THE TERMS

FOBO

- Franchise Owned Bottling Operation.

COBO

- Company Owned Bottling Operation.

FMCG

- Fast Moving Consumer Goods.

MNCs

- Multinational Companies

MMM

- Master of Marketing Management.

GOD
RBG

- Glass on deposit
- Return on bottle glass.

55

QUESTIONNAIRE
Name of the outlet: ...........................................................................................
Address: ............................................................................................................
1. Q. Which brand of soft drinks you deal in?
(a) Pepsi-Cola

(b) Coca-Cola

(c) Both

(d) Other

2. Q. Which brand of cola provides you better facility?

(a) Pepsi-Cola

(b) Coca-Cola

(c) Both
3. Q. How many crates of Pepsi-Cola & Coca-Cola you sell/day?
56

(a) 0-1 crates

(b) 1-2 crates

(c) 2-3 crates

(d) 3 & above

4. Q. Which companys signage you have in your outlet?

(a) Pepsi

(b) Coca-Cola

(c) Both

(d) No signage

5. Q. Which type of Signage in your outlet?

(a) Flex-Board

(b) Dealer Board

(c) Glow Sign Board

(d) Both

6. Q. Which companys Visi - cooler & Oye you have in your outlet?
(a) Pepsi-Cola

(b) Coca-Cola

(c) Both

(d) Own

7. Q. In your opinion which medium is more effective for the sales

advertisement?
(a) Television

(b) Magazines/Newspapers

(c) Display

(d) Wall paintings/Hoardings

8. Q. Do you think aggressive advertising further help you it increase the

sales volume of Cola?
(a) Yes

(b) No

9. Q. What kind of promotional activities do you like most?

(a) Free bottle scheme

(b) Prize

(c) Discount Crates

(d) Other

............

10. Q. Your recommendation for further sales improvement in your locality?

57

..........................................................................................................
11. Q. Give me two suggestions for betterment of Pepsi-Cola?
(a)....................................................................................
(b)....................................................................................

Thanking you

BIBLIOGRAPHY:
Prof. A.K. Basu (Faculty Guide)
Mr. Arun Kr. Singh (TDM)
Mr. Binay Kr. (DEPT TDM)
Mr. Banwari Shukala (CE)

Marketing management (Phillip Kotler)

Marketing Management (DEP. APP. ECO. & COM)

Research Methodology (C.R. Kothari)

Research Methodology (A.K. Singh)

Business Research Methodology (DEP. APP. ECO. & COM)

58

WEBSITES:
www.pepsico.com
www.pepsizone.com
www.cocacola.com
www.amul.com
www.parle.com
www.fao.com
www.notjustsurveys.com

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