Professional Documents
Culture Documents
Initial Pepsi Full Version 1
Initial Pepsi Full Version 1
BY
Saurabh Srivastava
Of
(Mrs.Sunita Ratnamakar)
Prof- Marketing
A Project Report
Submitted to the
July 2010
Hyderabad 500078
www.vishwavishwani.ac.in
ORIGIN OF A COMPANY:-
It can be said with absolute certainty that the RKJ Group has carved out a special niche for itself.
Its services touch different aspects of commercial and civilian domains like those of bottling,
Food Chain and Education. Headed by Mr. R. K. Jaipuria, the group as on today can laid claim
The business of the company was started in 1991 with a tie-up with Pepsi Foods Limited to
which brand and technical support was provided by the Principals viz., Pepsi Foods Limited. The
manufacturing facilities were restricted at Agra Plant only. Varun Beverages Ltd. is the flagship
The group also became the first franchisee for Yum Restaurants International [formerly PepsiCo
Restaurants (India) Private Limited] in India. It has exclusive franchise rights for Northern &
Eastern India. It has total 46 Pizza Hut Restaurants & 1 KFC Restaurant under its company.
It diversified into education by opening our first school in Gurgaon under management of Delhi
Public School Society. The schools of the group are run under a Registered Trust namely
Champa Devi Jaipuria Charitable Trust. Companies are medium sized, professionally managed,
unlisted and closely held between Indian Promoters and foreign collaborators.
The group added another feather to its cap when the prestigious PepsiCo “International Bottler of
the Year” award was presented to Mr. R. K. Jaipuria for the year 1998 at a glittering award
ceremony at PepsiCo’s centennial year celebrations at Hawaii, USA. The award was presented
by Mr. Donald M. Kendall, founder of PepsiCo Inc. in the presence of Mr. George Bush, the 41 st
President of USA, Mr. Roger A. Enrico, Chairman of the Board & C.E.O., PepsiCo Inc. and Mr.
Vision:-
Mission:-
Their Success:-
value.
Their People:-
At RKJ Group they are creating an environment where our employees enjoy a
Their employees are equipped with the necessary tools, training and
Pepsi
Diet Pepsi
Pepsi Aha
Slice
Mirinda
7-Up
TYPES OF PRODUCTS:-
Non-alcoholic soft drink beverage market can be divided into fruit drinks and soft drinks. Soft
drinks can be further divided into carbonated and non-carbonated drinks. Cola, lemon and
oranges are carbonated drinks while mango drinks come under non-carbonated category. The
soft drinks market till early 1990s was in hands of domestic players like campa, thumps up,
Limca etc but with opening up of economy and coming of MNC players Pepsi and Coke the
market has come totally under their control. While worldwide Coke is the leader in carbonated
drinks market in India it is Pepsi which scores over Coke but this difference is fast decreasing
(courtesy huge ad-spending by both the players). Pepsi entered Indian market in 1991 coke re-
entered (After they were thrown out in 1977, by the then central government) in 1993.
Carbonated soft drinks major Pepsi India is now putting together a ‘cocktail’ to take a bigger
‘slice’ of the fruit juice market. Close on the heels of the launch of its global lemon drink Twist
in an Indian avatar as Pepsi Aha, Pepsi, once again, is all set to roll out another global product—
in a localized version. Come June 2002, and Pepsi will roll out the blends of its international fruit
drink Twister in the country, albeit, with a difference. In India, Twister blends will be launched
as mixed fruit cocktails under Pepsi’s existing juice brand Slice. Pepsi spokesperson, when
contacted, confirmed the launch but said the products will be launched on an ‘experimental
basis’ for three to four months beginning June 2002. However, confirmed sources said that the
product has been test-launched and is ready for a formal launch in June. Globally, the proposed
Slice fruit blends exist under Twister brand and are available in over 10 flavors and in various
packaging options.
However, in India, while the blends will be decided as per local tastes and as per the availability
of fruit pulp, packaging will be restricted to cartons only. Among the four to five flavors
planned, strawberry-peach and kiwi-guava are some of them. However, the new product could be
priced a little higher than Slice since Twister—originally—is believed to have more than 15 per
cent juice content. Slice, on the other hand, is a 15 per cent juice drink positioned at the mass-
end; against the 100 per cent fruit juice Tropicana, which is at the top-end. Pepsi’s decision to
launch Twister flavors as Slice variants rather than the original brand itself follows the
The company had at one time contemplated bringing Twister in its original self to India but the
plan was later shelved. “Internally we have been debating whether to go ahead with Twister or
keep Slice as a mother brand for juices,” the Pepsi spokesperson said. The move, point out
industry observers, is clearly aimed at saving costs of launching an altogether new brand and
instead cash in on the potential of a existing juice brand. A Rs 200-crore brand, Slice was
originally launched as a mango drink in returnable glass bottles. Last year, in fact, Pepsi
launched a new advertising campaign to rejuvenate the brand’s mango positioning. And early
this year, it was launched in cartons and more recently—three new flavors—orange, leechi and
Burdened by high cost of production of returnable glass bottles, Pepsi India has decided to look
setting up a new carton line (tetrapack) at its existing bottling plant at Noida in Uttar Pradesh.
The plant with a capacity of 5,000 to 7,000 cases per day will be used to pack Pepsi’s juice drink
Slice and its new variants in 200-ml cartons. The product is currently being packaged at Varun
Beverages at Boranada Road Jodhpur.The Noida slim line carton plant—which is expected to
take off shortly—will cater to the north market and will help the company cut huge
transportation costs.
Since the entry of Pepsi co. to India in 1987, the soft drink Industry has undergone a radical
change. When Pepsi entered parley was the leader with ‘Thumps UP’ being its flagship brand.
Other product offerings by parley included Limca & Gold Spot. Another upcoming player in the
market was the erstwhile bottle of Coca-Cola, Pure Drinks. Its offerings included Campa Cola,
With the re-entry of Coca-Cola in the Indian market, Pepsi had to go in for more
aggressive marketing to sustain its market share. The chronology the initial phase of the “Coal
July 1986
An application for soft drinks-cum-snack food joint venture by Pepsi, Voltas and Punjab
Agro is submitted to the government after an earlier proposed alliance- 1985, between Pepsi and
Final approval for the Pepsi Foods Limited (P.F.L) project granted by the Cabinet
March 1990
May 1990
The government clears the Pepsi project again but with a change in brand name to Lehar
Pepsi. Simultaneously it rejects the Coca-Cola application. Citra form the Parle stable hits the
market.
Dec 1991
Pepsi extends its soft drinks reach on national scale. Products launched Delhi and
Bombay.
Jan 1992
Brito Foods application cleared by the FTPB. Pepsi and Parle start initial negotiations for
Jan 1993
Pepsi launches Teem and Slice. Captures about 25.30% of the soft drinks market in about
two years.
July 1993
Volta’s pulls out of PFL joint venture. Pepsi decides to raise equity to 92% Reports of
July 1994
July 1995
1997
1998
1999
Pepsi has launched its Diet Pepsi Can and 1.5 Liters pet battles for health conscious
people.
1997
Refusing to dilute its equity state Coca-Coal winds up operations in the country. Parle
2001
2005
Mirinda lemon zinger, 7UP.Ice was launched by Pepsi.
2006
2007
Pepsi Gold was launched.
With a Legacy of decades in the industrial arena, the Jaipuria Group of Companies now stands at
the one thousand five hundred Crore marks. The group boasts of its several world-class business
arenas like those of Textiles, Bottling, education, and information technology, Food Chain and
Retailing, apart from numerous other business segments JAIPURIA GROUP is a Rs.1500 Crore,
family controlled, reputed business house with over a century of operations in diversified fields.
The group as on today can boast of expertise and leadership in the fields of food and beverages,
textiles and real estate development with varied interests in a wide range of products and
services.
The Jaipuria Group under the leadership of the three brothers SK Jaipuria, RK Jaipuria and CK
Jaipuria has today become one of the leading business houses of the country.
The following are the major areas of operations of the Jaipuria Group:
Textiles
Information Technology
Real Estate
Education
It can be said with absolute certainty that the RKJ Group has carved out a special niche for itself.
Our services touch different aspects of commercial and civilian domains like those of Bottling,
Food Chain and Education. Headed by Mr. R. K. Jaipuria, the group as on today can lay claim
The business of the company was started in 1991 with a tie-up with Pepsi Foods Limited to
which brand and technical support was provided by the Principals viz., Pepsi Foods Limited. The
The group also became the first franchisee for Yum Restaurants International [formerly PepsiCo
Restaurants (India) Private Limited] in India. It has exclusive franchise rights for Northern &
Eastern India. It has total 27 Pizza Hut Restaurants under its company.
We diversified into education by opening our first school in Gurgaon under management of
Delhi Public School Society. The schools of the group are run under a Registered Trust namely
Companies are medium sized, professionally managed, unlisted and closely held between Indian
The group added another feather to its cap when the prestigious PepsiCo “International Bottler of
the Year” award was presented to Mr. R. K. Jaipuria for the year 1998 at a glittering award
ceremony at PepsiCo’s centennial year celebrations at Hawaii, USA. The award was presented
by Mr. Donald M. Kendall, founder of PepsiCo Inc. in the presence of Mr. George Bush, the 41st
President of USA, Mr. Roger A. Enrico, Chairman of the Board & C.E.O., PepsiCo Inc. and Mr.
Continuously excel to achieve and maintain leadership position in the chosen businesses; and
delight all stakeholders by making economic value additions in all corporate functions.
MAIN CREDENTIALS:-
2. Jaipuria group was adjudged “Best Bottler “out of more than 2000 bottles all over the world
BUSINESS SEGMENTS:-
The RKJ Group is divided into three-business segments- Beverage, Food and Education. It has a
leading market position in each of its three business segments. Our balanced portfolio produced a
solid business performance. Products and services, which look to the future, ensure that we will
Indian Beverages industry’s size is Rs. 8000 Crores and it is dominated by two player’s viz.
Pepsi & Coke only. This high profile industry has lot of potential for growth as per capita
The RKJ group is India's leading supplier of retailer brand Carbonated and Non-Carbonated soft
drinks, with beverage manufacturing facilities in India and Nepal. Its experience in the beverage
industry dates back to the sixties when it had the first franchise at Agra.
The group manufactures and markets carbonated and Non-Carbonated Soft Drinks and Mineral
Water under Pepsi brand. The various flavors and sub-brands are Pepsi, Mirinda Orange,
Mirinda Lemon, Mountain Dew, and 7UP, Slice Mango, Evervess Soda and Aquafina.
It has the license to supply beverages in the territories of Western U.P., part of M.P., half of
Haryana, whole of Rajasthan, Goa, 3 districts of Maharashtra, 9 districts of Karnataka and whole
of Nepal. The group has in total 18 bottling plants in India & Nepal and is responsible for
In order to later to this increasing demand, new bottling plants are being set up at alwer, kosi,
Jodhpur, Kathmandu and goa to produce400-600 bottles per minute, which would mainly cater
to northern markets of India. And in future, they will also be used to manufacture fruits mince-
FOOD INDUSTRY:-
The last decade has been a period of dynamic growth for non-alcoholic drinks and has witnessed
completely new segment of the food market in India taking shape. Food market at stake in India
is enormous. The food chain and the forces acting on the food chain are changing rapidly, and in
India's sheer size and diversity are enough to make it an attractive market for nearly every major
food, beverage and agribusiness company. A KSA Technopak study indicates that the fast food
To capitalize on the RKJ group’s significantly important relationship with Pepsi Foods, it
decided to venture into food sector, which is second largest business for Pepsi all over the world.
PepsiCo Restaurants (India) Private Limited in India. It has exclusive franchise rights for
Northern & Eastern India. Out of 56 operational Pizza Hut restaurants in the country 27
All these restaurants are making good profits & are dominating the market. The name of business
The India ice creams and frozen desserts market forms part of the food industry. Ice
creams and frozen desserts are convenience products, which are ideally suited to the emerging
The RKJ group has its presence in the Ice Cream segment since 1991, when it started
manufacturing and marketing Ice Cream under the brand name of “Gaylord” in the state of U.P.
During 1996 it sold its brand to Brooke Bond and started supplying Ice Cream to Hindustan
Lever as their Ice Cream souring plant. After working for 10 years in this field, during 2003 it
has launched its own brand in technical and marketing collaboration with Candia of France.
OBJECTIVES OF VARUN BEVERAGES:-
To observe the implementation and working of sales club programme at different sections
in Noida.
To monitor the customer awareness about the sales club programme whether they are
To check out that all the required materials for sales club programmed are given to
shop.
PRODUCT PORTFOLIO:-
Refreshment beverages
Sports drinks
Light; hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports
drinks - Gatorade, and 100% natural fruit juices and juice based drinks – Tropicana, Tropicana
Twister and Slice. Our local brands – Lehar Evervess Soda, Dukes Lemonade and Mangola
PepsiCo’s snack food company, Frito-Lay, is the leader in the branded potato chip market and
was amongst the first companies to eliminate the use of trans fats and MSG in its products. It
manufactures Lay’s Potato Chips; Cheetos extruded snacks, Uncle Chipps and traditional
namkeen snacks under the Kurkure and Lehar brands. The company’s high fiber breakfast cereal,
Quaker Oats, along with Lehar Lites, low fat and roasted snack options enhance the choices
available to the growing health and wellness needs of our consumers. Frito Lay’s core products,
Lay’s, 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.
SLICE 250ml
Plant has employed about 200 employees with separate company uniform on permanent and
causal basis. There are 40 managers/ officers/ supervisors and rest of workmen. Plant is
dispatching near about 125-150 tracks in peak seasons per day to various location. This Plant
SALES FORCE:- There is a dedicated sales force at every C&F and Distributor point. Every
Salesman is assigned a specific route that he has to cover every day. The Salesman has to take
care of all the Shops on the designated route and address and inform (to the Sr. CE / CE) about
any issue any retailer has on the route. The Salesmen are also assigned the task of providing all
the information to the retailers regarding the daily schemes and the details of all the promotion
schemes launched from time to time. These include informing the retailer about the promotional
scheme, registration for the scheme, terms and conditions of the scheme etc. The Salesman is
also assigned the task of registering maximum possible outlets on his assigned route.
Pricing Strategies:-
List Price: The Price of each product is fixed and there is no discrepancy. Salesmen are not
authorized to make any change, alteration or give discounts unless authorized by the Company.
Discounts: Discounts are provided to Wholesalers and Slums but there is no discount for
retailers. The discounts are negotiated directly with the Company and the C&F or the Distributor
Allowances: Allowances are given to salesmen on achieving their daily targets. This target is
given to every Salesman every day before he goes on his designated route. The Depot In charge
(Sr. C E / C E) gives the target to every salesman in consultation with the TDM.
Payment period and Credit terms: No credit is provided. The payment procedure is not
flexible as the retailers are required to make on the spot payments. At times, they defer the
payment and in that case, the Salesman either shows a shortage or pays the rest of the amount by
himself. The wholesalers are also required to make in advance but at times they also defer the
2ltr
Dew(300ml,600ml,2ltr) 12/-,25/-,55/-
Mirinda(300ml,600ml,2ltr) 12/-,25/-,55/-
Slice(250ml,500ml,1ltr) 13/-,26/-,50/-
Cans(pepsi,dew,slice,mirinda 30/-
)
Promotion Strategies:-
Sales Promotion: This is the most frequently used form of promotion which is used to
increase the sale of the selected product. These promotions are used from time to time depending
upon the sale of the products. If the sale of any particular product declines or shows a declining
trend then a suitable Sales Promotion Campaign is launched to increase the sale of that product.
and FOBO (Franchisee owned Bottling Operations) have no say in the advertising campaigns
and their planning. The advertising account of Pepsi is handled by JWT (J Walter Thomson) in
Sales Force: There is a dedicated sales force at every C&F and Distributor point. Every
Salesman is assigned a specific route that he has to cover every day. The Salesman has to take
care of all the Shops on the designated route and address and inform (to the Sr. CE / CE) about
any issue any retailer has on the route. The Salesmen are also assigned the task of providing all
the information to the retailers regarding the daily schemes and the details of all the promotion
schemes launched from time to time. These include informing the retailer about the promotional
scheme, registration for the scheme, terms and conditions of the scheme etc. The Salesman is
also assigned the task of registering maximum possible outlets on his assigned route.
Market share:-
Market Shares
37.6
44.3
Coca Cola
Cadbury,Parle,RC-Cola
Pepsi
14.7
Competition:-
Coke v. Pepsi
CHALLENGE
Market structure:-
COMPANY
COBO FOBO
WAREHOUSE
C&F DISTRIBUTOR
SALESMEN SALESMEN
RETAILER CUSTOMER
CUSTOMER
Initially the focus of the Company remains on reaching all the markets and then the Company
shifts its focus on increasing the frequency of sales in the respective markets so that the sales and
Company (PepsiCo): PepsiCo India provides the salt to all the bottling plants in the Country that
FOBO: These are Franchise owned bottling operations. R K Jaipuria group does all the
franchisee-bottling operations for PepsiCo India; currently R K J Group has 17 bottling plants for
Pepsi.
Warehouses: These are Company or franchisee owned warehouses spread over various
locations that cover the respective territories and come under the purview of their respective
Area or Territory Offices. Stocks are sent from the bottling plants to these warehouses, from
where they are sent to the C & F centers and Distributor Points.
C & F Centers: These are the biggest centers in the distribution network and receive proper
assistance from the Company (either COBO or FOBO). The C & F center is owned by a private
player and not by the Company. The vehicles (Delivery Vans) are owned by the Company, and
Distributors: These are small, compared to C & F centers. Everything at the Distributor point
owned and managed by the distributor, even the salespersons are on the Distributors payroll.
Wholesalers: These are smaller than C & F centers and Distributor points and get the stock
directly from the Company or Franchisee. They get their stock directly from the Company and
thus get special rates and extra discounts from the Company.
Slums: They are generally smaller than the Wholesalers are. However, they get special
Wholesalers and Slums have different designated markets and are not supposed to operate in the
Retailer: Retailers are the most important chain in the distribution channel of Pepsi as they are
the only point of contact with the customers. Retailers get their stock from all the other channel
ORGANISATIONAL STRUCTURE:-
ABOUT THE CUSTOMERS:-
As my company guide given me the topic of promotional merchandising I had covered several
shops and I understand this concept equally well by covering almost 20 shops in 15 days. These
are as follows:
Retail shops
Food Marts
Shopping Malls
Bakery Shops
Food Court
SEGMENTATION:-
GEOGRAPHIC:-
TARGET AREA – Domestic users, Restaurants, Bars, School and College canteens.
DEMOGRAPHIC:-
Age – 14 to 30
Psychographic:-
Behavioral:-
PRODUCT POSITIONING:-
Pepsi prefers to position itself as the beverage choice of the “New Generation”,
These terms adopted in Pepsi’s advertising campaigns are referring to the markets that
ages of 18 to 29. They have high expectations in life and are very mobile and active. They adopt
a lifestyle of living for today and not worrying about long-term goals. Though Pepsi’s main
emphasis is on this segment but they also have a focus on the 12 to 18 year old market.
The rich deep blue coloring represents eternal youthfulness and openness. Marketing
plans like “Yeh Dil Maange More”, “Got Another Pepsi”, “Ye Pyass Hai Badi” have made
Pepsi one of the coolest brands recognized among teens in the top five and the only beverage
This statistics and charts are totally depend on the market survey to find the consumer behavior
BUSSINESS OBJECTIVES:-
To find out the problems faced by channels of distribution.
To find out what are the various programmes they apply to increase the sales of their brand.
To find out the problems faced by the merchandiser to promote the products.
Going threw various retail shops to find out their suggestion about the customers.
PERSONAL DETAILS :-
NAME:- __________________________
1. AGE
A) 17-20
B) 21-24
C) 25-28
D) 29 and Above
2. GENDER
(A) Male
(B) Female
3. EDUCATION
(A) High school
(B) Under graduate
(C) Graduate
(D) Post Graduate
(E) Others
MARKET SURVEY:-
5. Through which medium did you come to know about your preferred soft drink brand?
(A) Hoardings & Banners
(B) Newspapers & Magazines
(C) T.V./ Radio
(D) Word of mouth
(E) Others
NO OF FLAVOURS
AVALIABILITY &
CONVINIENCE
PRICE
CLEANLINESS OF
BOTTLES/ NOT DAMAGED
MANUFACTORING DATE/
EXPIRY DATE
FREQUENCY OF
ADVERTISEMENT
BRAND AMBASSADOR
BRAND VALUE/ BRAND
NAME
CALORIE CONTENT
PROMOTION SCHEMES/
DISCOUNTS
VISUAL APPEAL OF
PACKAGING
INGRIDIENTS
SWOT ANALYSIS:-
STRENGTH:
WEAKNESS:
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:
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.
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.
THREATS:-
NGO’s – NGO’s like CSE can seriously hamper the sales and prospects of companies operating
in this industry. This happened during the pesticide controversy involving both coke and Pepsi.
HEALTH – Growing health awareness among people and some of ill effects of carbonated
beverages have pursued many people to switch over to non-carbonated beverages that can
seriously hamper the long-term prospects of the entire Industry and not Pepsi.
ENVIRONMENT – Environmental concerns are often raised because of the massive amount
of water extracted by the bottling plants resulting in the drop in groundwater level which affects
recommendations for PepsiCo India(Trans-Yamuna and Agra markets) after the analysis of the
There should be and correct feedback from the retailers on the performance of salesmen.
This will help improve their efficiency and accountability. Moreover, this will also help
in reducing the confusing that the retailers have at times because the salesman does not
The periodical maintenance check of Vizicoolers is done at three months. This should be
A complete survey of the every territory should be done for stands, banners logo racks
etc. and then a proper budget and plan should be made for their availability at the
required places, instead of doing it in bits and pieces as the current practice is this will
There should be incentives for salesmen for every display they enroll because they are
assigned this task and if they get incentives for the same then it will greatly increase the
completely new and untapped market which will help in providing the impetus for Diet
Pepsi
Pepsi should start more aggressive marketing of its Diet Pepsi range of products as they
have very good growth and future prospects while there is not much growth in the