A

Project Report
On

Distribution channel of Pepsi in Hajipur

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
SINHGAD INSTITUTE OF BUSINESS
ADMINISTRATION AND COMPUTER APPLICATION
(2014-2016)

Submitted to:

Submitted by:

SIBACA (LONAVALA, PUNE),

Under

Navneet shukla
PERM REG NO: 2051403626

SAVITRIBAI PHULE UNIVERSITY OF PUNE

TABLE CONTENTS
CHAPTER N0.

01

CONTENT
TITLE PAGE

01-02

ACKNOWLEDGEMET

03

DECLARATION

04

PREFACE

05

EXECUTIVE
SUMMARY

06

INTRODUCTION

07

1. Objectives
2.Company profile
3.History of the company
4.Organizational
Structure
5.Brand Packs

02

RESEARCH
METHODOLOGY

03

FINDING AND
ANALYSIS
1.Data Analysis
2.Findings
3.Swot Analysis

04

PAGE NO.

CONCLUSIONS &
RECOMMENDATIONS
1.Conclusion
2.Recommendation
3. Limitation

08
09-10
11-18
19
20-23

24-27

28-47
48-49
50-51

52
53-55
56

05

BIBLIOGRAPHY

57

06

QUESTIONARIES

58-60

ACKNOWLEDEMENT
A task undertaken without offering prayers to almighty and talking blessings from the elders is
not a good beginning. Likewise the work completed without acknowledging the assistance to
those who were always by my sides to make my efforts fruitful in the task left incomplete.
In the beginning, I would like to express my sincere thanks to my Institute teachers for giving me
an opportunity to take the practical experience of working life.
I convey my sincere thanks to Mr. KISHLAY KUMAR (Customer executive), LUMBINI
BEVERAGE Pvt. Ltd., HAJIPUR, BIHAR and Prof. ARACHANA BORDE,
SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION AND COMPUTER
APPLICATION. LONAVALA, PUNE. both of them has been providing me the proper
guidance and current information throughout this summer training project effectively and
efficiently has been completed at the time of submission.
I would also like to pay thanks to all my classmates and friends and my family members for cooperating with me and helping me to complete the project.

NAME: Navneet shukla

PERM REG NO: 2051403626
(2014-2016)

STUDENTS DECLARATION
I hereby declare that summer internship project report entitled Distribution
channel of Pepsi in HAJIPUR. Submitted for the partial fulfillment of the
requirements for the award of Master of Business Administration is the outcome of
original study undertaken by me and the has not formed the basis for the award of
any degree, diploma or any other similar title.

Name: Navneet shukla

Place: HAJIPUR
PERM REG NO: 2051403626

PREFACE
Summer training project is necessary part for fulfillment of MBA course. The emphasis
in the project is providing the study and an insight into Indian FMCG Business Scenario.
The summer training project is designed to provide participation of BBA program as on
the job experience. This has given a chance to try and apply the academic knowledge and gain
insight into corporate culture. This helps in developing decision-making abilities and emphasizes
on active participation by the student.
I undertook my Project in Lumbini beverage pt. Ltd, Hajpur, a leading Bottler and
Marketing partner of the Pepsi Foods. During the training, I had worked on the project
Distribution channel of PEPSI in HAJIPUR.
I gained valuable experience & knowledge during the survey. The Project consists of my
findings after tabulation of collected data, then analyzed conclusions were drawn and finally
suggestions were put forward.

EXECUTIVE SUMMARY
The distribution network of PEPSI is well known for its efficiency but company constantly
strives for the betterment of their distribution network system. Emphasis of our study was to
focus on the customer of company i.e., the retailers. The Retail Mapping of HAJIPUR is an
integral step for the assessment, development and betterment of this system. The distribution
system not only comprises the movement of the products but also incorporates the
merchandising of the product, which is very broad in its purview.
The project incorporates the analysis of the performance of PEPSI and probing into
opportunities of increasing the market share in HAJIPUR. The entire process had to be in an
organized manner in order to deliver meaningful results for the
Purpose of decision-making. The project was that of market research with surveys and
observations as its major phases with the objective of gathering of all important information
material for strengthening the position of PEPSI in HAJIPUR.
PEPSI boasts of having the maximum market share in the beverage segment in HAJIPUR
and is in constant process for the betterment of its product performance and customer as well
retailers satisfaction.

CHAPTER N0. - 01

INTRODUCTION
The Project Distribution channel of PEPSI in HAJIPUR Is designed on the lines of
basic investment decisions to be taken by the senior officials of PEPSI for the purpose of
amendments in the pre-existing distribution network in order to review and strengthen the routes.
The findings of the project are very crucial for the increment of the market share of PEPSI in the
HAJIPUR Beverage Market.
Though the process is an ongoing one but the decisions have to be taken on a strong base,
supported by facts and figures and that too on papers. This support can only be provided with the
help of an extensive and through analysis of the market and the data collected thereof. The
Marketing Development Co-ordinator who was the lead or the project head delivered the
objectives of the project to us expressly and we had to submit the day report to him along with
the draft report. He was the in charge of the project and gave guidelines and directions to
approach the project.

OBJECTIVE

To analyze, interpret and study the entire beverage market of HAJIPUR.

Comparative study of the various brands, packs and flavors available in the market.

Analysis of the strong and weak point of the competitors products and compare it with
PEPSI.

To assess the reach and feasibility of the product and give the output for further
investment for enhancing the distribution network along with assessing the efficiency of
the current distribution system.

Assess the promotional measures in the context to the sales of PEPSI and focusing our
study on the customer of company i.e., the retailers.
As obvious that any company is concern with the increase in sales of its products, our

project was in line with the companies objectives and all steps incorporate in the project were
directed to give an overview so as to attain its objectives
The market research conducted by us was in accordance to the companys rules and
policies which were quite material for the efficient and effective results and inferences to be
drawn from the entire process. The market research was conducted in compliance of the given
guidelines delivered to us expressly to achieve the given objectives, which were as under:
1. Profitability
2. Improvement
3

Sales

4. To satisfy the customer

COMPANY PROFILE
In 1893 Caleb Brahma, a young pharmacist from New Bern, North Carolina, begins
experimenting with many different soft drink concoctions; patrons and friends
Sample them at his drug store soda fountain.
In 1898 One of Caleb's formulations, known as "Brad's Drink," a combination of
carbonated water, sugar, vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola" on August 28,
1898. Pepsi-Cola receives its first logo.
Pepsi-Cola North America, headquartered in Purchase, N.Y., is the refreshment beverage
unit of PepsiCo Beverages and Foods North America, a division of PepsiCo, Inc. PepsiCo
Beverages and Foods North America also comprises PepsiCo's Tropicana, Gatorade and Quaker
Foods businesses in the United States and Canada.
Pepsi-Cola North America's carbonated soft drinks, including: Pepsi, Diet Pepsi, Pepsi
Twist, Mountain Dew, Mountain Dew Code Red, Sierra Mist, and Mug Root Beer account for
nearly one-third of total soft drink sales in the United States.
Pepsi-Cola North America's non-carbonated beverage portfolio includes Aquafina,
which is the number one brand of bottled water in the United States, Dole single-serve juices and
SoBe, which offers a wide range of drinks with herbal ingredients.
The company also makes and markets North America's best-selling, ready-to-drink iced teas and
coffees via joint ventures with Lipton and Starbucks, respectively.
PepsiCo, Inc. is one of the world's largest food and beverage companies.
The company's principal businesses include:
Frito-Lay snacks
9

 Pepsi-Cola beverages
Gatorade sports drinks
Tropicana juices
Quaker Foods
PepsiCo, Inc. was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana
was acquired in 1998. In 2001, PepsiCo merged with the Quaker Oats Company, creating the
worlds fifth-largest food and beverage company, with 15 brands each generating more than $1
billion in annual retail sales. PepsiCos success is the result of superior products, high standards
of performance, distinctive competitive strategies and the high level of integrity of our people.
There are many who feel that Pepsi-Cola had the first move advantage in India. Little do they
know about Pepsi-Colas initial foray into Indian soft drinks industry way back in 1956?
CocaCola had entered the country just a year back in 1955. But later Pepsi-Cola
withdrew from the country in 1961 due to bottling problems. Pepsi-Cola entered India in April
1989 by setting operation in beverages, snacks & agribusiness. At this time Parle had 70% of the
market share of the total soft drink market. Initially it faced some trouble in entering the market
due to strong resistance from most of the domestic soft drink industry and the advocates of
Swadeshi. The Indian economy was not liberalized and proved to be another barrier. PepsiCola removed these barriers by:
Promising the government to focus considerable selling efforts in the rural area to help
economic development Promising to help boost the expert of agricultural products
Offering to transfer the food processing, packaging & water treatment technology to India.

10

THE HISTORY OF PEPSI-COLA

1893: Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins
experimenting with many different soft drink concoctions; patrons and friends sample them at his
drugstore soda fountain.
1898: One of Caleb's formulations, known as "Brad's Drink," a combination of carbonated
water, sugar, vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola" on August 28, 1898.
Pepsi-Cola receives its first logo.
1902: The instant popularity of this new drink leads Bradham to devote all of his energy to
developing Pepsi-Cola into a full-fledged business. He applies for a trademark with the U.S.
Patent Office, Washington D.C., and forms the first Pepsi-Cola Company.
The first Pepsi-Cola newspaper advertisements appeared in the New Bern Weekly
Journal
1903:"Doc" Bradham moves the bottling of Pepsi-Cola from his drugstore into a rented
warehouse;
Pepsi's

he
theme

sells
line

7,968
is

gallons

of

syrup

"Exhilarating,

in

the

first

Invigorating,

year
Aids

of

operation.
Digestion."

1904: Bradham purchases a building in New Bern known as the "BishopFactory" for $5,000
and moves all bottling and syrup operations to this location. Pepsi is sold in six-ounce bottles.
Sales increase to 19,848 gallons.
1905: Pepsi-Cola's first bottling franchises are established in Charlotte and Durham, North
Carolina.

11

Pepsi receives its new logo, its first change since 1898.
1906: Pepsi gets another logo change, the third in eight years. The modified script logo is created
with the slogan, "The Original Pure Food Drink."
There are 15 U.S. Pepsi bottling plants. The Pepsi trademark is registered in Canada. Syrup sales
rise to 38,605 gallons.
The federal government passes the Pure Food and Drug Act, banning substances such as arsenic,
lead, barium, and uranium, from food and beverages. This forced many soft drink manufacturers,
including Coca-Cola, to change their formulas. Pepsi-Cola, being free of any such impurities,
claimed they already met federal requirements.
1907: Pepsi-Cola Company continues to expand; the company's bottling network grows to 40
franchises. Pepsi-Cola sells more than 100,000 gallons of syrup.
Pepsi trademark is registered in Mexico. Syrup sales rise to 104,026 gallons.
1908: Pepsi-Cola becomes one of the first companies to modernize delivery from horse drawn
carts to motor vehicles. Two hundred fifty bottlers in 24 states are under contract to make and
sell Pepsi-Cola.
1909: Automobile race pioneer Barney Old field endorses Pepsi-Cola in newspaper ads as "A
bully drink...refreshing, invigorating, a fine bracer before a race."
1910: The first Pepsi-Cola bottlers' convention is held in New Bern, North Carolina.
1920: Pepsi theme line speaks to the consumer with "Drink Pepsi-Cola, it will satisfy you."
1923: Pepsi-Cola Company is declared bankrupt and its assets are sold to a North Carolina
concern, Craven Holding Corporation, for $30,000.
Roy C. Megargel, a Wall Street broker, buys the Pepsi trademark, business and good will from
Craven Holding Corporation for $35,000, forming the Pepsi-Cola Corporation.

12

1928: After five continuous losing years, Megargel reorganizes his company as the National
Pepsi-Cola Company, becoming the fourth parent company to own the Pepsi trademark.
1931:U.S. District Court for Eastern District Virginia declares the National Pepsi-Cola Company
bankrupt, the second bankruptcy in Pepsi-Cola history.
The Loft candy company acquires the National Pepsi-Cola Company. Charles G. Guth , president
of Loft, assumes leadership of Pepsi and commands the reformulation of Pepsi-Cola syrup
formula.
1933: By the end of the year, Guth's new Pepsi-Cola Company is insolvent. In a series of moves,
he acquires Mega gels interest in the company, giving himself 91% ownership of Pepsi.
1934: A landmark year for Pepsi-Cola. The drink is a hit and to attract even more sales, the
company begins selling its 12-ounce drink for five cents (the same cost as six ounces of
competitive colas). The 12-ounce bottle debuts in Baltimore, where it is an instant success. The
cost savings proves irresistible to Depression-worn Americans and sales skyrocket nationally.
Caleb Bradham, the founder of Pepsi-Cola and "Brad's Drink," dies at 66 (May 27th, 1867February 19th, 1934)
1935: Guth moves the entire Pepsi-Cola operation to Long Island City, New York, and sets up
national

territorial

boundaries

for

the

Pepsi

bottler

franchise

system.

1936: Pepsi grants 94 new U.S. franchises and year-end profits reach $2,100,000.
1938: Walter S. Mack, Jr., V.P. of Phoenix Securities Corporation is elected President of the
Pepsi-Cola Company. Mack, who considers advertising the keystone of the soft drink business,
turns Pepsi into a modern marketing company.

13

1939: The "Pepsi & Pete" comic strip introduces the "Twice as much for anickel" theme in
newspapers.
Pepsi-Cola Company names Mack as CEO
The Board of Directors removes Guth from the Pepsi payroll after he plans
1940: Pepsi-Cola Company makes advertising history with "Nickel, Nickel," the first
advertising jingle ever broadcast nationwide onradio.
1941: The New York Stock Exchange trades Pepsi's stock for the first time.
In support of the war effort, Pepsi's bottle crown colors change to red, white, and blue.
1943:

Pepsis

theme

line

becomes

"Bigger

Drink,

Better

Taste."

1948: Corporate headquarters moves from Long Island City, New York, to midtown Manhattan.
1950: Alfred N. Steele becomes President and CEO of Pepsi-Cola. Mr. Steele's wife, Hollywood
movie star Joan Crawford, is instrumental in promoting the company's product line.
Pepsi receives its new logo, which incorporates the "bottle cap" look. The new logo is the fifth
in Pepsi history.
1955: Herbert Barnet is named President of Pepsi-Cola.
1959: Pepsi debuts at the Moscow Fair. Soviet Premier Khrushchev and U.S. Vice President
Nixon share a Pepsi.
1960: Young adults become the target consumers and Pepsi's advertising keeps pace with "Now
it's Pepsi, for those who think young."
1963: After climbing the Pepsi ladder from fountain syrup salesman, Donald M. Kendall is
named CEO of Pepsi-Cola Company.
Pepsi-Cola continues to lead the soft drink industry in packaging innovations, when the 12-ounce
bottle gives way to the 16-ounce size.

14

1964: Diet Pepsi, America's first national diet soft drink, debuts.
Pepsi-Cola acquires Mountain Dew from the Tip Corporation.
1965: Expansion outside the soft drink industry begins. Frito-Lay of Dallas, Texas, and PepsiCola merge, forming PepsiCo, Inc.
Military 12-ounce cans are such a success that full-scale commercial distribution begins.
Mountain Dew launches its first campaign, "Yahoo Mountain Dew...It'll tickle your innards."
1970: The Pepsi World Headquarters moves from Manhattan to NY.
1974: First Pepsi plant opens in the U.S.S.R.
Television ads introduce the new theme line, "Hello, Sunshine, and Hello Mountain Dew."
1977: At 37, marketing genius John Sculley is named President of Pepsi-Cola.
1978: The Company experiments with new flavors. Twelve-pack cans are introduced.
1980: Pepsi becomes number one in sales in the take home market.
1983: Mountain Dew launches the "Dew it to it" theme.
1984: Pepsi advertising takes a dramatic turn as Pepsi becomes "the choice of a New
Generation."
1985: After responding to years of decline, Coke loses to Pepsi in preference tests by
reformulating. However, the new formula is met with widespread consumer rejection, forcing the
re-introduction of the original formulation as "Coca-Cola Classic."
The cola war takes "one giant sip for mankind," when a Pepsi "space can" is successfully
tested aboard the space shuttle.
1986: Chairman Donald M. Kendall retires and is succeeded by D. Wayne Calloway.
Pepsi-Cola acquires Mug Root Beer.

15

1987: Pepsi-Cola President Roger Enrico is named President/CEO of PepsiCo Worldwide

Beverages.
1988: Craig Weather up is appointed President/CEO of Pepsi-Cola Company.
1989: Pepsi lunges into the next decade by declaring Pepsi lovers "A Generation Ahead."
1990: American Music Award and Grammy winner rap artist Young MC writes and performs
songs exclusively for national radio ads for Pepsi. Ray Charles joins the Pepsi family by
endorsing Diet Pepsi. The slogan is "You Got The Right One Baby."
1991: Craig E. Weather up is named CEO of Pepsi-Cola North America, as Canada becomes part
of the company's North American operations.
Pepsi introduces the first beverage bottles containing recycled polyethylene terephthalate (or
PET) into the marketplace. The development marks the first time recycled plastic is used in
direct contact with food in packaging.
1992: Pepsi-Cola launches the "Gotta Have It" theme which supplants the longstanding
"Choice of a New Generation."
Pepsi-Cola and Lipton Tea Partnership is formed. Pepsi will distribute single serve Lipton
Original and Lipton Brisk products.
Crystal Pepsi: a refreshing, clear soda that is caffeine free, has 100% natural flavors, no
preservatives and is low in sodium, goes national.
Mountain Dew introduces the popular theme line, "Get Vertical."
1993: Brand Pepsi introduces its slogan, "Be Young. Have Fun. Drink Pepsi".
Pepsi-Cola profits surpass $1 billion.
1994: New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi CEO
Craig Weather up explaining the relationship between freshness and superior taste to consumers.

16

Pepsi Foods International and Pepsi-Cola International merge, creating the PepsiCo Foods and
Beverages Company.
1995: In a new campaign, the company declares "Nothing else is a Pepsi" and takes top honors
in the year's national advertising championship.
1996: In February of this year, Pepsi makes history once again, by launching one of the most
ambitious entertainment sites on the World Wide Web. Pepsi World eventually surpasses all
expectations, and becomes one of the most landed and copied, sites in this new media, firmly
establishing Pepsi's presence on the Internet.
1997: In the early part of the year, Pepsi pushes into a new era with the unveiling of the
Generation Next campaign. Generation Next is about everything that is young and fresh; a
celebration of the creative spirit. It is about
1998: Pepsi celebrates its 100th anniversary.
PepsiCo. Chairman and CEO Roger A. Enrico donate his salary to provide scholarships for
children of PepsiCo employees.
Pepsi introduces Pepsi One - the first one calorie drink without that diet taste!
2000: Although Pepsi is a great place to work, Steven Truitt (aka 'struitt') takes his skills and
hard work elsewhere (for more money of course!), therefore putting an end to his Pepsi page!
Throughout the next few decades, the drink continued to flourish, expanding its presence around
the globe and battling soda industry leader Coca Cola for market share with aggressive
marketing campaigns and promotion, including its famous Pepsi Generation and "Pepsi
Challenge" ad campaigns.

17

In 2015: the company announced it would discontinue using aspartame as the sweetener in Diet
Pepsi, and replaced it with sucralose, another artificial sweetener. The move was pitched as
addressing customer concerns about the health risks of aspartame.

18

ORGANIZATIONAL STRUCTURE

Chairma
n
Preside
nt
Unit
Manage
r
TDM
ADC
Custome
r
Executiv
e
Distribut
ers A,B,C

Custome
r
Executiv
e
Distribut
ers E,F

Route
Agents

Route
Agents

Helper

Helper

19

PEPSI BRANDS AND PACK PROFILE

BRAND PACKS:
The products are generally available in three kinds of packaging:

GLASS BOTTLES

DISPOSABLE CANS

PET JARS
20

FLAVOUR PACKS

COLA (Carbonated Soft Drink) :

PEPSI
21

 MIRANDA ORANGE

MOUNTAIN DEW

7UP

22

 MANGO :
SLICE MANGO

MINERAL WATER :
AQUAFINA

CHAPTER N0. - 02
23

RESEARCH METHODOLOGY
INTRODUCTION
Research in common language refers to the search of knowledge. One can also define research as
a scientific and systematic search of relevant information on a specific topic. In fact, research is
an art of scientific investigation.

MEANING AND DEFINATION

Research = Re + Search. That is search after search and search. The purpose of such repeated
search is to thoroughly understand the problem, issue, or phenomenon and find the apt and
effective solution to the problem or strategy to deal with the issue or the phenomenon. Such
solution or strategy adds to our stock of knowledge in dealing with the problem or the issue.
In common parlance, research refers to a search for knowledge. Research simply put, is an
Endeavour to discover answers to problems (intellectual and practical) through the application of
scientific method. The Websters International Dictionary gives a very inclusive definition of
research as as careful, critical inquiry or examination in seeking facts or principles, diligent
investigation in order to ascertain something". The 20th Century Chamber Dictionary defines
research as: a careful search or systematic investigation towards increasing the sum of
knowledge.
Research is essentially a systematic enquiry seeking facts through objective, verifiable methods
in order to discover the relationship among them and to deduce from them broad principles or
laws. Research is really a method of critical thinking. It comprises defining and redefining
problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating
data, making deductions and making conclusions and at last, carefully testing the conclusions to
determine whether they fit the formulated hypothesis. Thus the term 'Research* refers to a
critical, careful and exhaustive investigation or inquiry or experimentation or examination having
as its aim the revision of accepted conclusions, in the light of newly discovered facts.

24

TYPE OF RESEARCH DESIGN

In this survey, descriptive research is used. Descriptive research: seeks to determine the
answer to who what, where, how questions. It is used to describe the characteristics of certain
group such as age, sex, occupation income. Descriptive studies are well structured. Since the
existence of the problem was uncertain in this industry.
RESEARCH APPORACH
There are two main type of Research: Qualitative and Quantitative. Qualitative research
uses field research methods, primarily case studies and participant observation within natural
settings.
Qualitative research places great emphasis on methodology, on procedure, and on
statically measures of validity. This report should be organized to show a clear progression from
theory to operation of concepts.
For this project the Quantitative and Qualitative approach was chosen because the
knowledge of the research problem is also depend upon behavior of respondent.

OBJECTIVE OF RESEAECH :The Main objective of research in this project was to get the detailed analysis of the market
position and distribution channel of Pepsi in hajipur..

RESEARCH PROBLEM:To what extent does the penetration level of the PepsiCo product's and the other merchandising
objects like cooling equipments, Ice Boxes, Glow signs, Dealer boards, Paintings and Racks
leads the penetration of such things from, Coca-Cola during the summer period in the period in
25

the year 2008 in Hajipur and Its rural area and urban area, distributed via direct and indirect
routes. What were the factors responsible for this level of penetration?

RESEARCDESIGN
The Research design specifies the method and procedure for acquiring the information needed. It
is the overall pattern or framework of the project that stipulates what information is to be
collected from which sources and by what procedures.
The Design Of our research is descriptive as it concerns the items are to be observed and how the
information and data gathered are to be analyzed.

The good research design would collect the data economically.

Type of research:

Descriptive Research

Research Approach:

Qualitative and quantitative approach

Research Method:

Survey method used for research

Research Duration:

1 JUNE-31 JULY 2015

Sample Universe:

Shopkeepers and Population of Hajipur City in Bihar.

Sampling Unit:

Various markets.

Sample Type:

Random

Sample Size:

1000

26

SAMPLE DSSIGN:For the project we used non-probability sampling that can also be termed as we only targeted the
shops which sells waters.
METHODS OF DATA COLLECTION
The data collected for the project was primary data. The data was collected through personals
interviews, which was in the form of direct personal investigation. The interview was very
structured because we only ask the question as per the EDS format.
Types of data

1.

Primary data

2.

Secondary data

THE MARKET RESEARCH PROCESS

The entire project was divided into five phases and each phase had its individual significance and
supplemented each other.

27

CHAPTER N0. 03

FINDING AND ANALYSIS

Data Analysis
Section-A:
Are your customer satisfied with Peps

Frequency; 50.0

Percent; 100.0

i?
Frequency
Yes

Percent
50

100.0

28

Interpretation: according to my survey all the visit outlet of pepsi who owned both pepsi
and coca cola outlet the customers were satisfied with pepsi.

Do you provide home delivery of Pepsi ?

Frequency
NO

Percent
50

100.0

Frequency; 50.0

Percent; 100.0

Interpretation: According to my survey no one them were provide home delivery to the
customer.

29

Which brand of soft drink do you sell?

Brand

Frequency

Percent

O
nly pepsi-cola

23

46.0

Both

27

54.0

Total

50

100.0

30

Only pepsi-cola; 23
Total; 50
Both; 27

Interpretation: This shows that maximum numbers of outlet were sale both product but
according to my survey in hajipur the outlet of Pepsi is more than the coca cola.
Which quantity of soft drinks you have?
Quantity
200 ml

Frequency

Percent
1

2.0

All

49

98.0

Total

50

100.0

31

200 ml; 1

Total; 50

All; 49

Interpretation: This shows that only two percent of outlet who sold only 200ml pack of
cold drinks.

Which brand of soda do you sell?

Soda brand
Lehar soda
(Pepsi cola)

Frequency

Percent

Kinly (coca
cola)
Total

32

44

88.0

12.0

50

100.0

Lehar soda (pepsi -cola); 44

Total; 50
Kinley (coca cola); 6

Interpretnatio: this shows that 88% of outlets were sold pepsi-cola Lehar soda in
Hajipur region.

Which brand of mineral water do you sell?

Frequency
Aquafina
(pepsicola)

Percent
43

86.0

Kinley (coca
cola)

12.0

Others

2.0

50

100.0

Total

33

Total; 50

Aquafina (pepsi-cola; 43

Others; 1 Kinley (coca cola); 6

Interpretation: this shows that 88% of pepsi-cola Aquafina mineral water were sold in
Hajipur region.

Chilling equipment owned by you?

Frequency

Percent

Only Pepsi
cola

24

48.0

Both

26

52.0

Total

50

100.0

34

Only pepsi cola; 24

Total; 50
Both; 26

Interpretation: This shows that only 52% of cooling equipment is both Pepsi and coke
were used by outlets but 38% cooling equipment provided by Pepsi.

Do you get timely supply of these brands with proper schemes?

Frequency

Percent

Yes

50

35

100.0

Frequency; 50.0

Percent; 100.0

Interpretation: this shows that the supply of Pepsi products is in regular way or we can
say that supply of materials is on perfect time.

Is your chilling equipment working properly?

Frequency
Pepsi no

yes.....

Percent
41

82.0

18.0

50

100.0

Coca-cola
-yes.....no
Total

36

Pepsi- cola =yes..... no; 41

Total; 50
Coca-cola= yes.....no; 9

Interpretation: This shows that 82% of cooling equipment of Pepsi were run in proper way.

During break down of chilling equipment who gives better service?

Frequency

Percent

Only Pepsi
cola

45

90.0

Only coca
cola

8.0

37

3
Total

Total; 50

2.0

50

100.0

Only pepsi-cola; 45

3; 1 Only coca cola; 4

Interpretation: This shows that 90%of Pepsi chilling equipment were keep cold the
products during light cutoff.

Whose racks do you own?

Frequency

Percent

Only pepsicola

25

50

Both

25

50

38

Total

50

100

Only pepsi-cola; 25
Total; 50
Both; 25

Interpretation: This shows that 50-50% of racks were owned by the sellers of cold drinks
in hajipur markets.

Yes

Is there increase in sales due to display of the racks?

Frequency
Percent
50

39

100.0

Frequency; 50.0

Percent; 100.0

Interpretation: This shows that there were 100% of increase in the sales of cold drinks
due to chilling equipment which are provided by the both company.

Availability of glow boards provided by company through promotional

scheme.
Frequency

Percent

40

Yes

50

100.0

Frequency; 50.0

Percent; 100.0

Interpretation: This shows that the availability of glow boards were very good.

Are your customer Satisfied of Pepsi schemes?

Frequency

Percent

Yes

49

98.0

No

2.0

41

Total

50

100.0

Yes; 49

Total; 50

No; 1

Interpretation: This shows that the 98% of the sellers were satisfied with the scheme
provided by Pepsi.

Is the brand of Pepsi is high on your sale?

Frequency
Yes

Percent
48

42

96.0

No
Total

4.0

50

100.0

Yes; 48

Total; 50

No; 2

Interpretation: This shows that 96% of sellers were agree with that the pepsi increase
their sale of cold drinks.

What percentage increase in sale you get after the schemes offered by Pepsi?
Frequency
5-15%

Percent
2

4.0

43

25-30%
More than
50
Total

8.0

44

88.0

50

100.0

5-15%; 2 25-30%; 4

Total; 50

More than 50; 44

Interpretation: this shows that there were more than 50% sales were increased by
cooling equipment which is provided by Pepsi.

Section - B (Bi-variate analysis)

Are your customer satisfied with Pepsi? * Do you provide home delivery of
Pepsi Crosstabulation

44

Do you
provide
home
deliver
y of
Pepsi
NO
Are your Yes
custome
r
satisfied
with
Pepsi?
Total

TOTAL
50

50

50

50

60
50
40

Are your customer

satisfied with Pepsi? Yes

30

Total

20
10
0

Interpretation: This shows that the sellers or we can say that the outlet of Pepsi does not
provide home delivery to their customer but the customers were satisfied with Pepsi.

45

Are your customers satisfied with Pepsi? * Chilling equipment owned by you?

Crosstabulation.
Count

Are your
customers Yes
satisfied
with
Pepsi?
Total

Chilling
equipment
owned by you?
Only
Pepsi
cola
Both
24
26

24

Total
50

26

50

60
50
40

Are your customer

satisfied with Pepsi? Yes

30

Total

20
10
0

Interpretation: This show that the customers were satisfied with both company and the
chilling equipment of Pepsi is owned by the outlets was is high compare to the coca cola.

46

Section-C (Hypothesis testing):

Hypothesis 1:
Which brand of mineral water do you sell? * Is youre chilling equipment
working properly? Crosstabulation.
Count
Is your chilling equipment
working properly?
Pepsi- cola Coca-Cola =
=yes..... no
yes.....no
Aquafina (pepsiWhich brand of mineral cola
water do you sell?
Kinley (coca cola)
Others
Total

Total

39

43

1
1
41

5
0
9

6
1
50

Chi-Square Tests
Value

Df

Asymp. Sig. (2-sided)

Pearson Chi19.775a
2
.000
Square
Likelihood Ratio
15.118
2
.001
N of Valid Cases
50
A. 4 cells (66.7%) have expected count less than 5. The minimum expected count
is18.

Interpretation: The above chi square test is null hypothesis and it should be accepted.

47

 Hypothesis 2:
Which brand of soft drink do you sell? * Which brand of mineral water do you
sell? Cross tabulation
Count
Which brand of mineral water do you T
sell?
o
t
a
l
Aquafina
Kinley (coca
Others
(pepsi-cola
cola)
Only pepsi2
23
0
0
cola
3
Which brand of soft
drink do you sell?
2
Both
20
6
1
7
5
Total
43
6
1
0

Value
Pearson ChiSquare
Likelihood Ratio
N of Valid Cases

Chi-Square Tests
Df
Asymp. Sig. (2-sided)

6.934a

.031

9.593
50

.008

A. 4 cells (66.7%) have expected count less than 5. The minimum expected count is
46.
Interpretation: The above chi-square test is null hypothesis so it should be accepted

FINDINGS & OBSERVATION

48

The reports of each phase of the project had to be supplemented by the information, data, facts
and figures and significant findings and observation to support the feasibility of decisions to be
taken on the basis of the Retail mapping Summary or the CDR. The information so recorded in
each phases of the project had to be listed in order of their relevance and seriousness and
presented in a form to facilitate immediate inference.

Some of the important observations have been listed below:

Soft drink businesss behavior is not governed by brand loyalty so the availability of the
right brand, at the right place, at the right time is the key for winning consumer in soft
drink business.

The most important and satisfying observation was that, PEPSI had approximately 64%
market share in the soft drinks market in HAJIPUR and some of its brands like Mirinda
Orange and Mountain Dew were performing above standards apart from PEPSI Cola in
spite of the Coca Cola with two cola flavor packs i.e., Coke and Thumps up.

The present distribution system of PEPSI is the best in the entire FMCG industry in
HAHIPUR and the major strength of PEPSI. The enhancement in the distribution
network would definitely increase the market share of PEPSI.

The retailers played a very critical role in the increment in the sales volume of the
product and the had to be kept satisfied in order to increase the market share by offering
better schemes, discounts, display materials such as VISIs, racks, counter, signage, wall
paintings and better amount for purchase of shelf space for display.

49

The existence of sub-dealers and super stockiest are also the major area of problem, as
they do not move the schemes and other display materials and incentives information to
the retailers, which is one of the reasons for the dissatisfaction of retailers.

The cut throat competition between PEPSI and COKE had led to the never ending cola
war and price war which has brought down the profit margins which is one of the major
grievances apart from the common complains pertaining to schemes, incentives and
display materials.

The other major issue was the supply of PEPSI from the bottling plants in HAJIPUR
against the company policies. These plants supplied the products at discounted rates and
violated merchandising principles of PEPSI.

Another critical issue was the presence of duplicate products of PEPSI in the market. The
details of these outlets have been surrendered to the company for action against these
outlets.

The position of PEPSI in the corporate was not up to the mark and Coca Cola had a better
scene in this context. One of the reasons can be assigned to the product positioning of
PEPSI and Coca Cola.

50

SWOT ANALYSIS
STRENGTH:
1) Good market penetration.
2) Motivated channel partner.
3) Well defined routes.

WEAKNESS:
1) All brands were not available in at least 80% shops.
2) Complaint handling was not up to mark.
3) Supply in certain area is very irregular and also route agents are not covering full routes.
4) Poor signage and display is making the routes week for the sale of Pepsi.
5) Interpersonal relationship with the company officials and the route agent is not
satisfactory.

OPPORTUNITY:
1) It is observed that in some newly establishing areas many new outlets are opening , Pepsi
needs to concentrate on these new outlets and can gradually increase its sale in these area.
2) Large number of mix outlets can be changed to Pepsi exclusive and coke exclusive to mix
only by luring them good and efficient supply, glow sign and cooling equipments.

51

THREATES:
1) Coke is the only nearest competitor and it is catching up in the market penetration
through price skimming and other promotional scheme.
2) Some local brands commonly known as kancha, Tip Top, Shine and the launch of
Catch soft drink a product of DS group are causing decrease in sale in some areas.

52

CHAPTER NO. - 04

C0NCLUSIONS &
RECOMMENDATIONS

CONCLUSION
The business of Soft Drink industry is significantly based upon the impulse buying, so it
is very necessary to Merchandise products of PEPSI efficiently and present them in such a
manner so that it can motivate the consumer and generate a thirst in consumer to consummate it.

Though, PEPSI has a strong position in HAJIPUR with the support of its efficient
distribution network, aggressive marketing efforts and advertisements along with attractive
schemes but there still exists potential market in HAJIPUR to be exploited and a suitable Weak
Area Programmed or the Strong Area programmer has to be formulated to improve its market
share depending upon the area under consideration.

Soft drink businesss behavior is not governed by brand loyalty so the emphasis is not
only on creating the market but also on retaining it. The availability of the right brand and flavor
pack, at the right place, at the right time is a key for winning the customer in soft drink business.
Keeping these facts in mind it becomes very important to treat the retailers with concern and

53

satisfy them by various measures and so that they are loyal towards PEPSI. Public relation is also
critically important in this industry.

RECOMMENDATIONS
The Project Retail Mapping was concerned only with providing the organization with all the
necessary information required to strengthen the position of PEPSI in HAJIPUR in the form of
reports incorporating all information in an analyzed and summarized form. But some critical and
major issues, which have been identified on account of extensive analysis, required suggestions
to be put forward on the basis of the current market scenario.

There should be uniformity in, schemes, and discounts, which are offered to the retailers
and should be based on a specific parameter such as sales volume, to avoid dissatisfaction
and biasness among the retailers.

Activities of sub dealers and super stockiest should be controlled and checked in order to
ensure fair prices and distribution of schemes and incentives to small retailers to avoid
discontent among smallholdings and outlets.

Every possible step should be taken for the satisfaction of the retailers, as they are the
most important supplement to the sales promotion measures and nationwide advertising
campaigns of the company in context of boosting the sales and enhancement of the brand
image of PEPSI.

The operations of the bottling plants of the surrounding territories should be controlled in
order to ensure that they do not supply the product in other territories not under their area
of operation.

54

The company should modify its advertising strategy and educate the customers about its age-old
existence and enhance its brand image. This will appeal to the target customers of middle and
older age groups apart from the younger generation in which PEPSI has a good hold.

First and foremost things are that, whatever the policy is going to be formulated it should
not be same for all the areas. Different policies should be framed and implemented at
different areas by looking and keeping various variables in the mind like buying habits,
preferences, education level financial position of that particular area and standard if
living etc.

Rural market being a very potential segment needs very quick and prompt efforts to be
taken to capture this high volume market.

Many retailers complained regarding irregularly in visit by the executives. They also said
that executive give very bad response to their complaints. It is necessary that executive
should make frequent visit to cover each outlet and try to provide them best.

Pouches, foreign particles were found in few bottles, so proper quality control measures
should be implemented as companys reputation are at stake.

There is a great market of soda (1 Lit.) but the supply of this pack is very poor, so the
supply should be made possible quickly.

Quality of PET bottle should be improved so that most problems can be minimized.

Soft drink is still considered a treat virtually a luxury, so it possible company should cut
down its price especially of cans.

55

Supply of posters, glow-sign boards, tin boards, banners and sun pack sheets etc. should
be made at regular interval.

Claim should be provided to the deserving retailers.

Wall painting should be made regularly in the area, as it is a good medium of

advertisement.

Proper attention should be given to the retailers problem so that they take interest to
increase the sale.

Proper advertisement should be made at railway station, bus stand, posh area, major
market and economies place etc.

A company may create favorable impression among the youth if they sponsors small
events like college festivals, university programs, school functions, fashion shows, quiz
programs etc.

Retailers need display material. To enhance the marketing of the product.

56

LIMITATIONS

The retailers in many cases reluctant to answered many questions.

The respondents may be biased on influenced by some other factors.

Time and money were the greatest limitation in carrying out the survey.

A number of retailers (pan-shop) being illiterate, it took us lot of time in collecting

information.

The mere information which we get from the retailers is not sufficient to arrive at a
conclusion.

The seasonal changes affect the sell.

57

CHAPTER NO.05

BIBLIOGRAPHY

1. MARKETING MANAGEMENT
KOTLER PHILIP
Pearson Education Singapore 12th edition
2. MARKETING OF PRINCIPLE
GARY ARMSTRONG
Pearson Education 11th edition
3. RESEARCH METHODOLOGY
KOTHARI C. R.
New age international publisher (DELHI)
2nd revised edition 2004 reprint 2008
4. MAGAZINES:
i.
Advertising Management
ii.
Business India
iii.
Business Today
iv. Business World
5. WEBSITE:
1. www.pepsiworld.com
58

2. www.pepsico.com
3. www.google.com

CHAPTER N0.06

ANEXURE
QUESTIONNAIRE
Name

____________________________________

Address

____________________________________
____________________________________

Contact No.

____________________________________

Q.1. Are your customer satisfied with Pepsi?

a. yes

b. no

Q.2. Do you provide home delivery of Pepsi?

a. Yes b. no
Q.3. How many houses?
a.

b.
59

Q.4. Which brand of soft drink do you sell?

a. Only Pepsi-Cola

b. Only Coca Cola

c. Both.

Q.5. Which quantity of soft drinks you have?

a. 200 ml b. 300 ml c. 500 ml d. 2 lit.

e. All

Q.6. Which brand of soda do you sell?

a. Leher Soda (Pepsi-Cola)
b. Kinley (Coca Cola)
Q.7. Which brand of mineral water do you sell?
a. Aquafina (Pepsi-Cola) b. Kinley (Coca Cola) c. Others.
Q.8. Chilling equipment owned by you?]
a. Only Pepsi-Cola b. Only Coca Cola c. Both
.
Q.9. Do you get timely supply of these brands with proper schemes?
a. Ye

b. No.

Q.10. Is your chilling equipment working properly?

a. Pepsi-Cola
b. Coca-Cola =

= Yes. No.
Yes. No.

Q.11. During breakdown of chilling equipment who gives better service?

a. Only Pepsi-Cola

.b. Only Coca Cola

60

Q.12. Whose racks do you own?

a. Only Pepsi-Cola

b. Only Coca Cola

c. Both.

Q.13. Is there increase in sales due to display of the racks?

a. Yes

b. No.

Q.14. Availability of glow boards provided by company through promotional scheme.

a. Yes

b. No.

Q.15. Are your customer SATISFIED of PEPSI schemes?

a. Yes

b. No

c. Cant Say

Q.16. Is the brand of Pepsi is high on your sale?

a. yes

b. no

c. cant say

Q.17 What % tag increase in sale you get after the schemes offered by PEPSI?
a. 5-15%

b.25- 30%

c. more than 50

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

76

77

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