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Chapter - 1: Introduction of Ceo of Pepsi Co .LTD Global Scenario of Pepsi Introduction To The Company
Chapter - 1: Introduction of Ceo of Pepsi Co .LTD Global Scenario of Pepsi Introduction To The Company
Chapter - 1: Introduction of Ceo of Pepsi Co .LTD Global Scenario of Pepsi Introduction To The Company
INTRODUCTION
SWOT ANALYSIS
OBJECTIVES
Nooyi was born in Madras, Tamil Nadu, India. She was educated at Holy Angels Anglo
Indian Higher Secondary School in Madras. She received a Bachelor's degree in Physics,
Chemistry and Mathematics from Madras Christian College in 1974 and a Post Graduate
Diploma in Management (MBA) from Indian Institute of Management Calcutta in 1976.
Beginning her career in India, Nooyi held product manager positions at Johnson & Johnson
and textile firm MetturBeardsell. She was admitted to Yale School of Management in 1978
and earned a Master's degree in Public and Private Management. While at Yale, she
completed her summer internship with Booz Allen Hamilton. Graduating in 1980, Nooyi
joined the Boston Consulting Group (BCG), and then held strategy positions at Motorola and
Asea Brown Boveri.
Nooyi joined PepsiCo in 1994 and was named president and CFO in 2001. Nooyi has
directed the company's global strategy for more than a decade and led PepsiCo's
restructuring, including the 1997 divestiture of its restaurants into Tricon, now known as
Brands. Nooyi also took the lead in the acquisition of Tropicana in 1998, and merger with
Quaker Oats Company, which also brought Gatorade to PepsiCo. In 2007 she became the
fifth CEO in PepsiCo's 44-year history.
According to BusinessWeek, since she started as CFO in 2000, the company's annual
revenues have risen 72%, while net profit more than doubled, to $5.6 billion in 2006.
Nooyi was named on Wall Street Journal's list of 50 women to watch in 2007 and 2008, and
was listed among Time's 100 Most Influential People in The World in 2007 and 2008. Forbes
named her the #3 most powerful woman in 2008. Fortune ranked her the #1 most powerful
woman in business in 2009 and 2010. On the 7th of October 2010 Forbes magazine ranked
her the 6th most powerful woman in the world.
Compensation
While CEO of PepsiCo in 2011, Nooyi earned a total compensation of $17 million which
included a base salary of $1.6 million, a cash bonus of $2.5 million, pension value and
deferred compensation was $3 million.
Forbes magazine ranked Nooyi fourth on the 2008 and 2009 list of The World's 100 Most
Powerful Women. Fortune magazine has named Nooyi number one on its annual ranking of
Most Powerful Women in business for 2006, 2007, 2008, 2009 and 2010. In 2008, Nooyi was
named one of America's Best Leaders by U.S. News & World Report. In 2008, she was
elected to the Fellowship of the American Academy of Arts and Sciences.
In January 2008, Nooyi was elected Chairwoman of the US-India Business Council (USIBC).
Nooyi leads USIBC's Board of Directors, an assembly of more than 60 senior executives
representing a cross-section of American industry.
Nooyi has been named 2009 CEO of the Year by Global Supply Chain Leaders Group.
In 2009, Nooyi was considered one of "The TopGun CEOs" by Brendan Wood International,
an advisory agency. In 2010 she was named #1 on Fortune's list of the "50 Most Powerful
Women" and #6 on Forbes' list of the "World's 100 Most Powerful Women".After five years
on top, PepsiCo's Indian American chairman and CEO IndraNooyi has been pushed to the
second spot as most powerful woman in US business by Kraft's CEO, Irene Rosenfeld.
Nooyi was named to Institutional Investor's Best CEOs list in the All-America Executive
Team Survey in 2008 to 2011
The project highlighted that the companies that will prosper will be those that have prepared
for future challenges - like water scarcity, climate change and obesity – and, critically, those
that are actively helping to overcome these challenges now.
One outcome of the Scenarios and Strategy work is that PepsiCo is building a team to focus
on sustainable agriculture, so it can mitigate the risks that climate and water crises pose to its
supply chains, now and in the future. The project work has also contributed to the
development of new strategies for the business on the environment and health and wellness.
The scenarios were developed specially for PepsiCo and were based on extensive desk
research, a series of workshops and over 100 interviews on possible future environment and
health trends. The interviewees ranged from senior executives at PepsiCo, including
Chairman and CEO Indra Nooyi, to external experts like Gro Harlem Brundtland, the former
Prime Minister of Norway and ex-Director General of the World Health Organisation. We
also held a number of implications workshops in the US, India, China, Latin America and
Europe.
This work is seen as a critical piece of strategic thinking for the business. Robert Schasel,
Director of Energy & Resource Conservation at PepsiCo, who commissioned the work said:
“I can't express strongly enough my sincere appreciation and gratitude for the work that the
Forum team has done on this project. The incredible amount that we have achieved in such a
short time is truly amazing. The workshops were all very professionally run and highly
engaging.
Derek Yach, Senior Vice President, Global Health Policy, PepsiCo said:
“Issues like climate change, hunger and obesity and changing agricultural supply chains
all have a strategic impact on our business. The Scenarios and Strategy 2030, with
Forum For The Future was a professional and inspiring process that enable us to
identify risks and opportunities that will impact the core business today and in the
future. As a result PepsiCo will be better prepared and stronger as a company.”
“I could not be more thrilled with our experience with Forum. It was the first time at
PepsiCo that we have taken such a formalized and rigorous long-term view of our
business risks and opportunities.
Forum helped us see what we knew in our heart...that the magnitude of the global crises
we face cannot be solved in the short-term. Similarly, companies that will be successful
in 20 years are those who recognize and respect the long term trends, and who are
nimble enough to address them.
The design and activation of Forum's process is, in a word, comprehensive. They leave
no stone unturned during their expert interviews, desk research, and field validation.
We now think strategically, LONG term, thanks to Forum.”
E-mail:jbpl@nde.vsnl.net.in
Website: www.jaibeverages.com
The year was 1999 and Pepsi Company in India was very eager to improve its extremely
poor market share(less than 3% in the state of Jammu and Kashmir).
That was when it approached the soft drink maestros of India- the Jaipuria family, C.K
Jaipuria in particulars, for starting a plant in J&K in spite of all the odds, the non-inductive
climate in the state for a new business venture, he took a bold step and went ahead with
accepting the challenge and taking the franchise in the name of his elder son-Mr. Anurag
Jaipuria, and Jai Beverages Pvt. Ltd. Was born. From the day of the decision to this day in
2007, there has been no looking back. In this short span of time, the company has been
formed, sprawling compound of erstwhile M/S HINUSTAN LEVERS LTD. Taken over from a
supportive SIDCO, a prestigious unit in J&K, after an initial investment of Rs. 27.1 crores,
has been established with full backing of the ministry of Industries (J&K govt.) and an ultra-
modern plant which releases all the effluent water after full treatment at a very reasonable,
and much under the pollution boards max acceptable BOD and COD levels. In fact, work is
on to stop all the treated effluent going out and instead to utilize this water internally for
horticulture. In the other words, the water is being put back in to the earth to retain the water
table. Further, work has been done to grow more trees within the premises, in the line with
the universal endeavor of making the earth green. With coming of this prestigious plant,
there has been an upsurge in the economy of the people of the area in particular, and the
state in general. The direct, and indirect employment generated by the unit has already
surpassed a figure of 650 and is growing steadily. The excise deposited to the govt.
exchequer has already crossed an amount of Rs. 361 lakhs, and is again growing. The once
semi deserted main road of the industrial Complex has become very busy and would soon
be required to be widened. In short, coming of the Jai beverages pvt. Ltd. Into the state of
J&K and surely made a big mark into the industrialization of the state with many big
industrial houses watching eagerly the outcome of this prestigious unit.
Jai beverages pvt. Ltd. is a part of diversified Jaipuria group being the major franchise of the
Pepsi in India. The group has 22 Pepsi’s bottling plant in India and Nepal. The new
beverages plant having state of art machinery from Krones, KHS, O&H, Gaulin & Magplast
among the international industrial giants and Hildon, Tula IDMS etc. among the Indian
manufacturers. The fully automatic plant is being run by team of professionals who have
already made a mark for themselves by creating history in the international Pepsi system by
achieving the gold medal in the first year of operations from over 400 plants worldwide.
D) COMPANY’S VISION
“To be the best consumer products company in the eyes of our suppliers, customers,
d. Filtered Water instead of Spring Water makes the production, logistics, and
profit margins a lot greater on their bottled water sales(Aquafina)
Weaknesses
b. A huge lobby against soft drink industry led by leaders like Baba Ramdev
will hurt as these leaders have a huge fan following in the country.
Opportunities
Threats
REVIEW LITERATURE
The purpose of this paper is the study of factors responsible for brand preference
in fmcg products, increasing competition, more due to globalization, is
motivating many companies to base their strategies almost entirely on building
brands. Brand preference means to compare the different brands and opt for the
most preferred brand. This brand preference is influenced by various factors .According
to this study many factors were find out for preferring a brand like Brand persona Brand
constancy Brand loftiness Brand value .In the identification of factors affecting the brand
preference, it was concluded that brand persona is the most effective factor that affects the
brand preference. This brand persona deals with the personality aspect s or the
external attributes of brand, thus it can be said that consumer prefer any brand by
looking at the external attributes of a brand.
By choosing to formulate a new beverage, the researchers noted that the new
product would need to be differentiated by improving the sensory characteristics .F o u r
factors were identified for the formulation: four colour
i n t e n s i t i e s ) , t h r e e f l a v o r i n g s , t w o l a b e l t yp e s ( s o f t v e r s u s h a r d ) , a n d
t w o p a c k s i z e s ( s t a n d a r d v e r s u s oversize). By using both quantitative
(hedonic testing) and qualitative (focus groups ) a p p r o a c h e s , t h e
researchers found that “the main factors which drive
c o n s u m e r preference for this concept are colour intensity and flavoring”. Indeed, colour
intensity accounted for 43 per cent and flavour 32 per cent of the consumers’ overall liking.
“Pack s i z e a n d l a b e l t yp e a r e t a k e n i n t o a c c o u n t b y t h e c o n s u m e r t o a
l e s s e r e x t e n t , ” t h e y added. “This methodology of a qualitative screening associated to a
conjoint analysis on relevant sensory attributes has shown good performances to fit
consumers’ expectation: it has now to be reproduced, as every brand, concept and
product is a unique combination designed for a specific consumer group,” concluded the
researchers
Source: Food Quality and Preference Volume 19, Issue 8, Pages 719-726By Stephen
Daniels, 07-Oct-2008
S o u r c e - B e v e r l y J . T e p p e r a n d A my C . Tr a i l J o u r n a l o f F o o d
S c i e n c e a n d Technology, 15 September 1998
ABSTRACT Preference tests were performed for varieties of cola drinks, orange juices and
using three response protocols: the traditional paired preference test with the "no preference"
option, a 9-point hedonic scale and a 6-point hybrid hedonic/purchase intent scale. The
different stimuli to be assessed were presented in pairs, but putatively identical stimuli were
also presented as a "placebo" pair. Performance on the placebo pair with identical
stimuli p r o v i d e d a m e a s u r e o f t h e h i d d e n d e m a n d c h a r a c t e r i s t i c s o f t h e
t e s t p r o t o c o l . T h e presentation of the different pairs provided a measure of preference
accompanied by such h i d d e n d e m a n d e f f e c t s . C o m p a r i s o n b e t w e e n t h e t w o
a l l o w e d a b e t t e r m e a s u r e o f preference per se. The order of presentation of the
identical and different pairs did show occasional slight evidence of contrast effects. For the
placebo "identical" pairs, a majority of consumers reported false preferences. Liking
questions with the hedonic and hybrid s c a l e s e l i c i t e d f e w e r f a l s e
p r e f e r e n c e s t h a n p r e f e r e n c e q u e s t i o n s w i t h t h e p a i r e d preference
protocol. Yet, the effects tended to be slight. The 6 -point hedonic/purchase intent
scale exhibited the fewest false preferences in the placebo condition, and this was because
of its fewer categories rather than any cognitive strategy change el icited by its
different labels.
Source-Davis Woman’s Journal of Food Science and Technology, July 31, 2007
Bad Points
Can be slightly more flat-tasting and with less fizz.
General Comments
Despite people constantly saying the opposite, it is easy to tell the difference between Coca
Cola and Pepsi. Pepsi's less fizzy, more flat taste can be a nice contrast and is more subtle
than its counterpart. Pepsi Max is far nicer than Diet Pepsi and whilst Pepsi Max Twist is
initially nice, it can be rather sickly after a few cans of it.
7. Good Points
not intense, not to fizzy
Bad Points
sometimes tastes flat
General Comments
Pepsi is a good cheap beverage, i think it tastes better then coke, because when i drink coke
my mouth go nasty and feels weird.anyway.good after taste. Pepsi is harder to buy then coke
and less popular but i like it better, and most people like coke all because its more popular
and overrated, Pepsi has caramel in it which makes it taste better,it is very refreshing and has
that nice soft touch. nice drink.affordable sweet.
8. Good Points
good taste, doesn't taste bad when flat, not as fizzy
Bad Points
goes flat fairly quick, expensive (same price as coke)
General Comments
Pepsi is a good product, although compared to coke I’d rather buy Pepsi but i don’t drink it
that often.
Bad Points
Bad for you ... but don't worry, it won't kill you, so don't try to make it so
Expensive at around a whopping 55p (and rising)
General Comments
In my very important opinion (yeah), it is a little better than Coke, simply because it doesn't
have the same nasty after taste.
People often compare Pepsi and Coke, but I think that this is unfair, as they are in fact quite
different from each other - the main difference being in taste - Pepsi is fresher and not as
strong as Coke.
Bad Points
Not like Coke
General Comments
If you see Pepsi on the shelf, or if you're thinking of buying a can/bottle then go for it. You
only live once as they say in the bible. But, the bible also says be aware of false prophets.
Bad Points
Lots of sugar and it rots your teeth!
General Comments
A lot of people will say that Coke is a lot better than Pepsi, but I disagree and say that Pepsi
is better than Coke. Coke just tastes too sweet for me, while Pepsi is just right! Value for
money is very good, and I think it is cheaper than main rival Coca Cola in most stores around
the UK.
The only problem is that I think that it has even more sugar in it than Coke, despite it not
tasting as sweet.
Bad Points
nothing really bad about it, except that it tends to get flat fairly easily.
General Comments
I could drink Pepsi all day (and I usually kind of tend to), it's just great all American cola that
tastes very good and leaves a good after taste as well. Man, Caleb Bradham was on to
something when he invented this.
RESEARCH METHODOLOGY
RESEARCH DESIGN
SAMPLING PLAN
DATA COLLECTION
POPULATION
SAMPLING UNIT
SAMPLING FRAME
SAMPLING TECHNIQUE
SAMPLING SIZE
This chapter describes the research methodology adopted to achieve the objectives
of the study. It includes the scope of the study, research design and collection of
data and analysis of data.
Research design
A research design is an arrangement of conditions for collection and analysis of data
in a manner that aims to combine relevance to the research purpose with economy
in procedure. It constitutes the blueprint for collection, measurement and analysis of
data.
Data collection
For my research study the data has been collected by both the primary and
secondary means. For primary collection I adopted the structured questionnaire,
which was filled by 100 respondents. The secondary data of my research has been
collected through newspapers, some web sites ,journals and some previous
researches.
Population
Retalier
Sampling frame
A sampling design is a definite plan for obtaining a sample from a given population. It
refers to the technique or the procedure the researcher would adopt in selecting
items for the sample.
.
Sampling technique
Sampling size
ATTRIBUTES RETAILERS
1year-3years 11
4year-6year 19
7year-9year 27
10year and above 43
Table 5.1
Retailers in business
1year-
3year
11%
10year-above 4year-6year
43% 19%
7year-9year
27%
Figure 5.1
Analysis: From the above table and pie chart, 43 retailers are in this business from
10 years-above and 27 retailers are from 7 years-9 years
Interpretation: There are many retailers working with soft drinks companies in
Jammu but most of the retailers are working from a long time in this particular
business.
ATTRIBUTES RETAILERS
Coca-Cola and Pepsi both 65
Pepsi 19
Coca-Cola 16
Any other 0
Table no 5.2
Retailers
other
0%
Coca-Cola
16%
Pepsi
19%
Coca-Cola and
Pepsi
65%
Figure 5..2
Analysis: From the above table and pie chart, there are 65 retailers are working
with both Pepsi and Coca-Cola Company, 19 with Pepsi and 16 with Coca-Cola.
Interpretation: most of the retailers are working with both of the companies and
both Pepsi and Coca-Cola have some monopoly outlets in Jammu city.
ATTRIBUTES RETAILERS
Total no. of bottles 34
Pepsi bottles 14
Coca-Cola bottles 20
40
34
35
30
25
20
20
14
15
10
0
Total no. of bottles Pepsi Coca cola
Figure 5.3
Analysis: From the above table and bar chart, there are 34bottles sold every day
both of Pepsi and Coca-Cola Company, 14 with Pepsi and 20 with Coca-Cola.
ATTRIBUTES RETAILERS
Daily 70
Alternative days 14
Weekly 0
Table no 5.4
70
70
60
50
40
30
14
20
10 0
0
Daily Alternative days Weekly 2 days
Supply of Pepsi
Analysis:It is found from table 6.6(A) that 70 retailers have daily supply and 14 have
on alternative days but most of the retailers of jammu required the daily service of
soft drink.
ATTRIBUTES RETAILERS
Daily 60
Alternative days 21
Weekly 0
Table no 5.4
60
60
50
40
30 21
20
10 0
0
Daily Alternative days Weekly 2 days
Supply of Coke
Analysis:It is found from table 6.6(A) that 60 retailers have daily supply and 21have
on alternative daysbut most of the retailers of Jammu required the daily service of
soft drink.
ATTRIBUTES RETAILERS
Pepsi Cash 60
Pepsi Credit 24
Coke Cash 59
Coke Credit 22
Table no 5.5
60 59
60
50
40
24
30 21
20
10
0
Pepsi Cash Pepsi Credit Coke Cash Coke Credit
Mode of Payment
Figure 5.5
Analysis: From the above table and graph, 60 retailers of Pepsi gives cash payment
and 24 retailers have credit facility. The company distributor supplies the product to
the retailer and they will return after some time and collecting the money for those
products. They are giving more time to the retailers to give the payment for the
drinks but Coca Cola company are not giving this kind of facility to their retailers.
Table no 5.6
0.8
0.8
0.6
0.4
0.2
0
Satisfaction level
Satisfication level
Figure no 5.6
Analysis: From the above table and graph, satisfaction level of retailers regarding
supply of Pepsi is 0.8
Interpretation: Most of the retailers are satisfy with the supply of Pepsi .
Table no 5.7
0.75
0.8
0.6
0.4
0.2
0
Satisfaction level
Satisfication level
Figure no 5.7
Analysis: From the above table and graph, satisfaction level of retailers regarding
supply of coke is 0.75
Interpretation: Most of the retailers are satisfy with the supply of Coke but as
compare to Pepsi its less.
ATTRIBUTES RETAILERS
Pepsi 43
Coke 52
Table no 5.8
52
60
43
50
40
30
20
10
0
Pepsi Coke
Scheme offered
Figure no 5.8
Analysis: From the above table and graph that most of the retailers agreed with the
Coke when compared to Pepsi. On an average most of the retailers i.e. 52 voted for
Coke Company for its trade schemes offered to the retailers and the remaining 43
retailer are voted for Pepsi Company for its trade schemes offered to the retailers.
ATTRIBUTES RETAILERS
Pepsi 47
Coke 53
Table no 5.9
53
54
52
50
47
48
46
44
Pepsi Coke
Figure no 5.9
Analysis: From the above table and graph that most of the retailers agreed with the
Coke Company for its consumer promotions offered to the consumers. On an
average most of the retailers i.e. 53 voted for Coke Company for its consumer
promotion and the remaining 47 retailer are voted for Pepsi Company for its
consumer promotions offered to the consumers.
Table no 5.10
0.79
0.8
0.6
0.4
0.2
0
Sales
Sales
Figure no 5.10
Analysis: From the above table and graph, on an average most of the retailers are
saying that T.V Ads will help in the increase in the sales of the Pepsi.
Interpretation: So it is concluded that there will be influence of the T.V. Ads on the
increase of the sales of the Pepsi Company a lot.
Table no 5.11
0.79
0.8
0.6
0.4
0.2
0
Sales
Sales
Figure no 5.11
Analysis: From the above table and graph, on an average most of the retailers are
saying that T.V Ads will help in the increase in the sales of the Pepsi.
Interpretation: So it is concluded that there will be same influence of the T.V. Ads
on the increase of the sales of the Coke Company .
Table no 5.12
0
-0.005
-0.01
-0.015
-0.02 -0.023
-0.025
Satisfication level
Figure no 5.12
Analysis: From the above table and graph, satisfaction level of retailers regarding
maintenance of Pepsi Visi cooler is -0.023(Mean score).
Table no 5.13
-0.002
-0.004
-0.006 -0.007
-0.008
Satisfication level
Figure no 5.13
Analysis: From the above table and graph, satisfaction level of retailers regarding
maintenance of Coke Visi cooler is -0.007(Mean score).
2. Most of the retailers of Pepsi require the daily supply, which indicates the high
sales of the soft drinks.
3. Most of the retailers are satisfied with the service of Pepsi Company as compare
to coke.
4. Pepsi distribution is poor as compared to coke distribution channel and mainly all
the Pepsi brands are not available in retailers shop.
8. There is influence of the T.V Ads on the increase in sales of the soft drinks a lot.
9. Pepsi Company is not providing the sufficient Pepsi Visi coolers to the retailer and
compared to coke company there are more Coke Visi cooler in Jammu.
10. Pepsi Company providing credit facility to the retailers not good as compare to
market availability.
11. Retailers are totally not satisfied with the maintenance of Pepsi Visi cooler.
1. Pepsi company has to supply their entire product sufficiently and regularly on time
to the retailers in Jammu.
3. As most of the retailers require daily supply, The company has to supply the
drinks daily to the retailers, so that they can serve the consumers according to their
requirements. If they don’t supply the drinks daily and sufficiently the sales will be
decreased.
5. The trade schemes offered by Pepsi Company to the retailers should be increased
and also profitable to the retailers. If they are satisfied with the offers then they will
promote the drinks more and the profit will be more to the company.
6. Pepsi Company should introduce the new and attractive consumer promotional
offer. Then the consumers will be attracted towards Pepsi brand. Then the profit of
the company will be increased.
7. As the TV ads are influencing the soft drinks sales , the company should design
the new ads in an attractive way .
8. Pepsi Visi coolers are supplied very less to the retailers when compared to coke.
The company has to supply more Visi cooler to the retailers to increase their
business. The company has to check the condition of the Visi coolers regularly and if
any problems are there then they have to rectify those problems.
9. The soft drink companies are not providing the credits. There is a problem to the
retailers because they have to invest the amount before the sales of the soft drinks.
This may be the problem for some retailers with low investment. So it is better to
provide the credit system to the retailers.
10. Pepsi company has to take care of Visi coolers as retailers are not happy with
the maintenance of Visi cooler.
BIBLOGRAPHY
BOOKS
Webliography
QUESTIONNAIRE
ADDRESS_______________________________________________
PHONE__________________________________________________
Q1. From how long haveyou been dealing in some or all of following drinks( pepsi ,
coke,) ?
(A)1year-3year
(B) 4year-6years
(C) 7year-9years
(D) 10year-12years
Q2. What are the various companies of soft drink you are dealing?
Coca-Cola and Pepsi both (If yes then move to Q3 & Q4)
For Pepsi
Daily
Alternate days
Weekly 2 times
For Coke
Daily
Alternate days
Weekly 2 times
Pepsi Cash
Pepsi credit
Coke Cash
Coke Credit
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied
Pepsi
Coke
Rani Juice
Pepsi
Coke
Rani Juice
Q10. What is the influence of T.V Ads on sales of Pepsi in your shop?
Highly Decreased
Decreased
Neutral
Increased
Highly Increased
Q11. What is the influence of T.V Ads on sales of Coke in your shop?
Highly Decreased
Decreased
Neutral
Increased
Highly Increased
Pepsi
Coca Cola
Other
Q13. Please indicate your satisfaction level regarding maintenance of Visi cooler by
Pepsi?
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied
Q14. Please indicate your satisfaction level regarding maintenance of Visi cooler by
Coke?
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied
___________________________________________________________________