Project Report on

“ Customer Satisfaction Towards PepsiCo”

Submitted in partial fulfillment of the requirement for the record

of the degree of

Bachelor of Business Administration Department Of

Business Administration Session (2020-2021)

Under the guidance of Submitted by:-

Hariom Tiwari
Roll no:- 0403119
Batch BBA (2019-2022)

DAYANAND ACADEMY OF MANAGEMENT STUDIES, KANPUR

AFFILIATED TO:-
C.S.J.M UNIVERSITY, KANPUR
 CHAPTER – 1

(INTRODUCTION)

2
1.1 Customer Satisfaction Towards Pepsi

Satisfaction means fulfillment or gratification of need, desire or appetite.

Customer satisfaction or dissatisfaction is the feeling derived by the consumer
when he/she compares the product’s actual performance with the performance
that he/she expects of it. When the product performance matches the expected
performance, the customer experience satisfaction; when it falls short of the
expectation, the Customer experience dissatisfaction. And when the
performance exceeds expectations, the Customer is highly satisfied or delighted.
Customer satisfaction is a key indicator of success of an organization. Customer
satisfaction can be two types which as follows:-

1. Product satisfaction
2. Service satisfaction

Customers buy good and services to meet specific needs. When people
feel a need,they are motivated to take action to fulfill it. In many
instances, purchase of a good and services may be seen as offering the
best solution to meeting a particular need. Subsequently customer may
compare what they received against what they expected, especially if it
cost them money, time, or effort that could have been devoted to
obtaining an alternative solution.

Customer satisfaction has been a subject of the great interest to the organizations and
researchers alike. The prime objective of organizations is to maximize profits and to
minimize cost. Profit maximization can be obtained through increase in sales with

3
lesser costs. One of the important factors that can help to increase sales is customer
satisfaction, because satisfaction leads to customer loyalty, recommendations and
repeat purchasing (Wilson et al., 2008, p. 79).

Customers became very vital for business during the marketing era of the 1950s
when companies could produce what they can sell and not just selling what they can
produce as it was during the production era. The focus on customers has increased
more as the consumption era shifts to post-consumption; where organizations are
obliged to render more services in addition to what they provide as offers to their
customers (David, A., 2009). What are the qualities of these services provided to
customers? Are the customers satisfied with these services? Thus this research
originated from the fact that customer is the key to business. In fact, customer
satisfaction is the most important tool that helps to increase sales and generate profits
for the business. Moreover, the importance of customer satisfaction and service
quality has been proven relevant to help improve the overall performance of
organizations (Magi & Julander, 1996, p. 40).

Consumer: An end user, and not necessarily a purchaser, in the distribution chain of
a good as service see also customer. A consumer is a person or organization that uses
economic services or commodities. Customer: A customer is an individual or
business that purchases the goods or services produced by a business. Attracting
customer is the primary goal of the businesses, because it is the customer who
creates demand for goods and services.

4
1.2 INDUSTRY PROFILE

The Pepsi comes under Soft drink Industry

India with a population of more than 1.1billion is potentially one of the largest
consumer markets in the world after China. Soft drinks come under this category.
Soft drink is basically purchased in India basically for two reasons namely to quench
thirst and for refreshment.

The Indian economy currently is passing through a bullish phase with increasing per
capita income. Subsequently the lifestyle of the Indian Consumer is Also changing
with Increased spending on entertainment, refreshment, etc. that is why soft drink
companies are looking forward to India with great enthusiasm in the future to
increase their revenue.

The Soft drink industry in India dates back to the 1940 when parle introduced the
first branded Soft drink called gold spot. In 1990, coming of the multinational brand
Pepsi and immediately started giving stiff competition to parley and Coke.

The parent company of Pepsi was founded in 1890 at North Carolina in USA. Its
CEo is Roger Enrico . prosody India holding pvt.ltd. in headquartered in gurgaon
and its CEO is Ms. Indra Nyui. Is India it gas 34 bottling plants of which 8 are
company owned bottling outlets.

5
SMV Beverage is a franchise owned bottling outlet. Coco cola reentered the Indian
market in 1993 in collaborations with parley India ltd..

1.3 COMPANY PROFILE

PepsiCo, Incorporated (short for Pepsi Company) is a large conglomerate with

interest in manufacturing , marketing and selling a wide variety of carbonate
and non carbonate beverages, as well as salty, Sweet and gain based snacks,
and other foods. Beside the Pepsi cola brands ( including mountain dew), the
company owns the brands Quaker Oats, Gatorade, Frito-Lay, Tropicana.

Indra Nooyi, Chief executive of PepsiCo since 2006, has focused on

maintaining the company’s leadership in the snack food industry by being on
the forefront of marketing healthier snacks and striving for a net- zero impact
on the environment. This focus on healthier food’s and lifestyle is part of
Nooyis “performance with purpose “ philosophy.

The company formed for distribution and bottling is the Pepsi bottling group
Pepsico is a SIC 2080 (beverage) company.

o o wn s f i v e d i ff e r e nt b il li o n -
d o l l a r br a n d s . T h e s e a r e P e p si , T r op i c a n a ,

6
 F r i t o -L a y , Quaker, and Gatorade. The company
owns many other brands as well.

o Pepsi, Caffeine-Free Pepsi, Diet Pepsi/Pepsi Light,

Caffeine-Free Diet Pepsi, Caffeine-FreePepsi Light,
Wild Cherry Pepsi, Pepsi Lime, Pepsi Max, Pepsi
Twist and Pepsi ONE.

o Other U.S. carbonated soft drinks, including Frawg,

Mountain Dew, Mug Root Beer, SierraMist and
Tropicana Twister Soda

o 7 Up (international distribution)

o Other U.S. beverages, including Aquafina

(Flavor Splash, Alive, and Twist/Burst),
Tava,Do l e , Ga t o r a d e , Iz z e , M o u n ta in De w
AM P , P r o p e l F i t n es s W a te r , S o Be , Qu a k e r
M i l k Chillers, Ben & Jerry's MilkShakes, and
Tropicana

o B e v e r a g e s m ar k e t e d o ut si d e t h e U. S. : Al v a l
l e , C o n c o r d i a , Co p el l a , E v e r ve s s , Fi e s t a , Fru
i'Vita, Fruko, Junkanoo, Kas, Loóza, Manzana
Corona, Manzanita Sol, Mirinda, Paso del os T o r o s ,
R a d i c a l F r ui t , S a n Ca rl o s , S c h wi p Sc h wa p ,
S h a n i , T e e m , T ri p l e Ko l a , a n d Yedigun

➢ SWOT ANALYSIS

1. Internal Analysis

7
 1.1 Strengths:-

Strengths describe the factors that which the organization is good at and what
separates it from its competitors. To understand the SWOT Analysis of Pepsi we need
to look at the factors which are its biggest strengths.

–Strong Brand Image: Pepsi has a strong brand image and brand recall and these
factors have helped the brand maintain constant pressure on its competitors. Pepsi also
invests heavily on advertising and marketing that supplements in strengthening the
brand image and brand awareness.

–Loyal Customer Base: Pepsi has a huge loyal customer base. Pepsi is the first and
only choice of the consumers who like its taste.

— Global Presence and Strong Supply chain and Distribution Network: Over all
these years of its existence, Pepsi has managed to build a robust network of Supply
chain and Distribution Network.

Present in over 200+ countries, it’s just because of the strong supply chain and
distribution network that you can get Pepsi even at the most remote places of the world.

–Strong Product Portfolio: Pepsi owns and distributes a wide range of products
brands. Unlike Coca-Cola which is still a beverage company, Pepsi diversified its
product portfolio and merged with Frito-Lay and owns Quaker Oats, Tostitos, and other
food brands.

.
1.2 Weakness :-

Weaknesses stop an organization from performing at its optimum level. They are areas
where the business needs to improve to remain competitive. SWOT analysis of Pepsi
covers different weaknesses which the brand has.

–Reliance on Carbonated drinks: In developed as well as developing countries,

health-conscious consumers have started to shy away from carbonated beverages
containing elevated levels of sugars or artificial sweeteners. All these factors have
muted the growth of the beverage industry. High dependency on sweet carbonated

8
drinks is what is impacting the top line of Pepsi and would need an immediate course
correction.

–Weak Product portfoliocontaining healthy beverages and foods: Consumer needs

and demands are changing and shifting towards healthy beverages (sports drinks) and
foods. Understanding this shift, Pepsi has slowly and steadily started introducing new
healthy products in its product line, Gatorade and Tropicana sub-brands which
Pepsi introduced as healthy beverages, Pepsi also acquired Quaker Oats with an
aim to provide healthy snack options to the customers.

Having said that, Pepsi still has a long way to go in promoting these healthy alternatives
and create strong brand recall among customers.

2. External Analysis

2.1 Opportunities:-

Opportunities refer to the factors which the organization can use to its favor to grow its
market share, sales, brand recognition etc. It’s the second most important factor in
SWOT Analysis of Pepsi as it will shape the future of the company’s strategy.

–Increasing demand for healthy drinks: The demand for healthy drinks and foods is
still at its nascent stage and is growing exponentially, the need of the hour is to
capitalize on this opportunity and grab the maximum market share.

Introduce products to the consumers, market them to create awareness and brand recall,
it’s a chance that no brand can afford to lose.

–Partnerships: Pepsi can look into increasing the market share by partnering with other
non-competing brands, one such example is Coca-Cola had a strong partnership with
Domino’s . So something of the same sorts can be looked into to increase the sales and
market share.

2.2 Threats:-

Threats refer to factors that have the potential to harm an organization in the future.
Given the fact, threats give a brand a far-sighted view about the problems that the brand

9
is likely to face in the future, it is one of the most important factors in the SWOT
Analysis of Pepsi.

— Reducing consumer need/demand for carbonated drinks: With changing time,

consumers are giving up sweetened carbonated drinks and are moving towards health
and energy drinks. This change is demand is likely to impact the sales of Pepsi as their
major chunks of sales come in from carbonated drinks.

— Heavy Competition from Global and Local players: It’s not just Coca-Cola that
Pepsi gets competition from, there are no. of local beverage manufacturers that are
trying to eat away the market share of Coca-Cola. Companies such
as Starbucks and Dunkin’ Brands Group which are not a direct competition of Pepsi,
but have managed to place a dent in the company’s market share.

— Weak Product portfolio: To meet the changing customer needs, Pepsi has
introduced products/brands that are aimed at meeting the customer needs. The need of
the hour is to advertise and market it aggressively so as to create brand awareness and
brand recall.

10