Professional Documents
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Market Share of Pepsi
Market Share of Pepsi
PROJECT REPORT
ON
PEPSI
Submitted By :
Mr. RAJENDRA PRASAD
1. INTRODUCTION :-
2.
. COMPANY PROFILE-IN U.S.
COMPANY PROFILE-IN INDIA
BUSINESS SEGMENT
BEVERAGE INDUSTRY
FOOD INDUSTRY
ADVERTISEMENT AND ADD CONCEPT
2. DISTRIBUTION NETWORK
NETWORK DESIGN
DISTRIBUTION STRATEGIES
DISTRIBUTION CHANNELS
4. RESARCH METHODOLOGY
5. DATA ANALYSIS
MARKET FINDINGS
ROUTEWISE
QUESTIONNAIREWISE
6. SWOT ANALYSIS
7. CONCLUSION
8. LIMITATIONS
9. RECOMMENDATIONS/SUGGESTIONS
10. BIBLIOGRAPHY
11. ANNEXURE
QUESTIONNAIRE
EVERY DEALER SURVEY (EDS)
LOGO OF THE PEPSI BRAND
EXECUTIVE SUMMARY
2.HANUMAN NAGAR
3.PROFESSER COLONY
4.BHOTHNATH ROAD
5.PROFESSER COLONY
6.DOCTORS COLONY
7.RAJENDRA NAGAR
8.CHANWARI ROAD
The emphasis in the project is providing the study and an insight into
Indian BEVERAGES Business Scenario. The Summer Project is
designed to provide participation of MBA 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 express our thanks to Lumbini Beverages Pvt. Ltd for granting me the
permission to work with the esteem organization. I am also thankful to
Mr. Manish Singh(S.O.), Lumbini Beverage Pvt. Ltd. who guided and
helped us in all possible ways they could, at every stage of the project.
My humble thanks are due to all our professors for guiding me during the
two months training as my training mentor.
I would also like to thank all the Executives, distributors & staff of
Kankarbagh area who provided us all the relevant information and their
kind support, on the basis of which this report has been prepared.
Lastly I would like to pay our special regards to my parents for their
encouragement and full support for completion of this project work.
RAJENDRA PRASAD
INTRODUCTION
Soft drinks industry has become big business in India in recent years.
The soft drink business under went major change with the entry of PEPSI
and re-entry of COCA-COLA in India in the late 80s when Parley with
brands like Thumsup, Limca & Gold spot was a clear leader. Coca-Cola
took up the product line of parley in 1993-94; today both brands are the
Indians favorite soft drinks
COMPANY PROFILE-PEPSI CO. (US)
The beverages segment primarily market Pepsi diet, mountain dew and
other brands worldwide and 7UP outside the U.S. market. They are
positioned in close competition with Coca-Cola inc. of USA. A point to
be noted is that coca cola get 80% of its profit from international
operation while same figure of Pepsi co. stand at 6%, the segment is also
in the bottling plants and distribution facilities.The restaurant segment
primarily consists of the operations of the worldwide pizza hut, Taco
Bell and KFC. Long time no.2 player in the cola wars, Pepsi co. is
widening the play field, over the last years; the company has invested
more than $2billion in its worldwide operations. When Coca-Cola
changed its formula in 1985, Pepsi stepped up its competition with its
long time archival claiming victory in the cola wars. Coke and Pepsi
expanded their rivalry to tea in 1991 when Pepsi formed a venture with
#1 Lipton in response to coke’s announced venture with nestle (Nestea) it
has won over 30% of the ready to drink tea market, a part of the so called
"new age” beverages segment.
The beverage industry has witness the phenomenal growth over the last
few years necessitating capacity increase and builds up of commensurate
infrastructure to meet the business growth, which is accordingly matched.
PepsiCo’s success is the result of superior products, high standards
of performance, distinctive competitive strategies and the high integrity
of our people.
COMPANY PROFILE-JAIPURIA GROUP: IN INDIA
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:
The business of the company was started in 1991 with a tie-up with Pepsi
Foods Limited to manufacture and market Pepsi brand of beverages in
geographically pre-defined territories in which brand and technical
support was provided by the Principals viz., Pepsi Foods Limited. The
manufacturing facilities were restricted at Agra Plant only.
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.
MAIN CREDENTIALS
2. Jaipuria group was adjudged “Best Bottler “out of more than 2000
bottles all over the world for the year 1996-97.
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 be well placed in growth markets.
Cream Velley
BEVERAGE INDUSTRY
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-
based soft drinks like slice and mangola .
We also put a freshness date on every can and bottle. Soft drinks may
lose some flavor over time so our freshness date tells consumers when the
product is freshest and best tasting.
Every can and bottle of Pepsi-Cola products has a Nutrition Facts panel,
which shows the number of calories and other nutrients per serving.
There is essentially no fat in any Pepsi-Cola a product. The main
ingredients found in Pepsi-Cola products include carbonated water,
carbohydrates, sugar, sodium, potassium and caffeine. For a complete
breakdown by ingredients by product, see our product information for
Pepsi, Diet Pepsi, Mountain Dew, Slice and Aquafina.
Ascorbic Acid
Another name for Ascorbic Acid is Vitamin C the Ascorbic Acid used in
our carbonated soft drinks functions as an antioxidant to protect the
flavors, color, and taste. In some beverages we also add it to provide the
nutritive value found in Vitamin C.
Aspartame
Aspartame is a sugar substitute used in our diet beverages and many other
food products. Aspartame is made of the same building blocks as protein,
so it is considered a "nutritive sweetener," but the very small amounts
used in diet drinks contribute no calories.
Blue1
Brominated vegetable oil has been used by the soft drink industry since
1931. It is a widely used food additive that has been extensively tested
and approved by the U.S. Food & Drug Administration.
Brominated vegetable oil is derived from soybean oil that has been
modified in order to keep the flavoring oils well blended.
Caffeine
Caramel
Citric Acid
Citric Acid can be found in citrus fruits such as lemons and oranges.
Citric acid is used to bring out the flavor of other ingredients and imparts
a tang or tartness to beverages. Citric acid is not Vitamin C. the same
fruits that have citric acid often have Vitamin C but the technical name
for Vitamin C is ascorbic acid.
Gum Arabic
Gum Arabic is a purified natural vegetable gum obtained from the acacia
tree and is used in keeping our carbonated beverages well blended.
High Fructose Corn Syrup
High Fructose Corn Syrup (HFCS) is a sugar derived from corn and
provides sweetness and taste to our beverages.
HFCS has the same sweetness as table sugar (sucrose) and has almost the
identical composition of fructose and glucose.
Natural Flavorings
Phosphoric Acid
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
a generally positive manner.
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 industry in India will be
worth $1.27 billion by year 2005.
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. Fast food is the most
happening thing across the world.
The group 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. Out of 56
operational Pizza Hut restaurants in the country 27 restaurants are owned
and run by its company.
All these restaurants are making good profits & are dominating the
market. The name of business entity is Devyani International Private
Limited.
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 lifestyles and eating trends of
Urban India.
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
are as follows:
For PepsiCo.
Cricketers:-
Sachin Tendulka
Rahul Dravid
Mohd. Kaif.
Yuvraj singh
Harbhajan singh.
Sourav Ganguly.
Zaheer Khan
Ajit Agarkar
Cine Stars
Kareena Kapoor
Shahrukh
Kajol
Ranveer kapoor
Fardeen Khan
Amitabh Bachhan
Govinda
Rani Mukherjee.
Tennis Stars :-
Leander Paes
Mahesh Bhupati
Football Players
Cyrus Broacha
Bhaichung Bhutia
KEY ELEMENTS OF THE TRADE
QUANTITY MRP/PCs
RATES
SODA: -
WATER: -
QUANTITY PRICE
UNIT MANAGER
QUALITY CONTROL
MANAGER
MARKETING EXECUTIVE CUSTOMER
EXECUTIVE
SHIPPING MGR.
SALESMAN
TRANSPORT MGR.
DISTRIBUTION NETWORK
Total market of Kankarbagh is divided into, 1 C&F Agent & 8
distributors take care of Sahibabad. Market and Sahibabad is having a
market share of 48% of the total Kankarbagh .
PROMOTION: -
The promotion budget is set by the Head Office and thereby is distributed
among the different bottler’s all over the country on the basis of there
past performances & requirements.
Distribution Network in Kankarbagh
CONSUMERS
DISTRIBUTION STRATEGIES
Exclusive Distribution
Selective Distribution
Intensive Distribution
INTENSIVE DISTRIBUTION:
They are thus going beyond delivering products and creating greater
engagement and interaction around the purchasing experience.
Product
Availability
Point
Of
Purchase
Brand Brand
Communication Experience
PRODUCT: -
Glass Bottles
Pet Bottles
Cans
Fountain rim
FLAVORS: -
Cola
Orange
Clear Lemon
Cloudy Lemon
Berry
Ginger
Mango Slice
Out of these products the 70% of the sales of the company come from the
Cola brand, which is the market leader in the most part of the country of
these kinds of packaging in which the product is available make them
80% of the sales come from these bottles. The businesses of returnable
bottles are very cumbersome and make the market very complex and
demanding.
FACILITIES PROVIDED BY THE COMPANY TO THE
RETAILER
1. VISI COOLER
65 Liter
110 Liter
120 Liter
165 Liter
200 Liter
210 Liter
220 Liter
300 Liter
320 Liter
330 Liter
500 Liter
Cash discount
Stickers
Banners
G.S. Boards
D.P.S. Boards
Racks
Counters
Umbrellas
OBJECTIVE OF THE STUDY
Research Design:
Data Source:
During project study I use both primary as well as secondary data source.
For primary data collection I visited various retailers in Sahibabad & for
secondary data I went through Books, Journals & Internet. The
information collected is relevant, correct & unbiased.
Research Design:
.
.
Contact Method:
In this market study I have used pie chart for data analysis &
interpretation because pie chart is the easiest & comprehensive medium
for presentation of data.
The universe studied is the sum of the retailers in the Kankarbagh area.
DATA ANALYSIS
K.S. TRADERS
Salesman: Manoj
Vehicle: Tata-407(8329)
Total Outlets: 25
Monopoly Outlets: 5
Key A/C's: 1
Fat Dealer: 1
Route: Rajendra Nagar
Salesman: Bhupendra
Total Outlets: 65
Monopoly Outlets: 15
Key A/C's: 1
Fat Dealer: 1
Route: Bhoothnath Road
Total Outlets: 40
Monopoly Outlets: 8
Key A/C's: 0
Fat Dealer: 0
Route: Hanuman Nagar
Salesman: Jitenra
Total Outlets: 40
Monopoly Outlets: 10
Key A/C's: 1
Fat Dealers: 0
Route: Professor colony
Salesman:K.K. Sharma
Vehicle: Tata-407(7756)
Total Outlets: 50
Monopoly Outlets: 10
Key A/C's: 0
Fat Dealers: 0
Route: Doctors Colony
Vehicle: Tata-407
Total Outlets: 35
Monopoly Outlets: 8
Key A/C's: 0
Fat Dealers: 0
Route:Kanti Factory Road
Salesman: BalRaj
Vehicle: Tata-407(7826)
Total Outlets: 60
Monopoly Outlets: 11
Key A/C's: 0
Fat Dealers: 0
Route: Rajendra Nagar
Salesman: Kailash
Total Outlets: 40
Monopoly Outlets: 8
Key A/C's: 1
Fat Dealers: 1
Route: Chanwari Road
Salesman: Sushil
Total Outlets: 40
Monopoly Outlets:8
Key A/C's: 1
Fat Dealers: 1
Demographic Profile
15% 5%
20%
20%
40%
No. 1
Time Preference
30%
60%
10%
No. 2
Market Share of Main Leaders
6% 1%
41% 52%
No. 3
Market Share of Best Flavour Providers
2%
38%
s
60%
2% 8%
90%
No. 5
Market Share in Lemon Flavour
30%
70%
49%
51%
Sprite 7 Up
No. 6 (iii)
Awarness about Diet Pepsi
11%
89%
Yes No
No. 7
FINDINGS OF DISTRIBUTION NETWORK
After visiting nearly 400 outlets I have found there are some common
problems of retailers, which are:
2. Every retailer wants that vehicle should come in the morning so that
they will keep the bottles in the fridge as soon as possible.
6. Sampling due.
STRENGTH
WEAKNESS
OPPURTUNITY
Untapped market.
THREAT
Restrictions made by Govt. agencies that soft drinks are harmful &
non-nutritive.
Natural juice are now available whose price are less or same as soft
drinks.
CONCLUSION
1. After visiting nearly 350 outlets I found that Pepsi & its Brands is not
doing a good job in Sahibabad. It is clear that Pepsi (58%) has lagging
Coke (38%) in the soft drink market in Sahibabad region. If we
compare it with Signage or display material than Pepsi has an edge
over coke.
3. It was also found that the schemes that are brought up in the market by
Pepsi & Coke after every couple of day is not making any net effect
on the sale of Cola, whereas one is cannibalizing others market only.
4. It was also seen that Pepsi brand is better sold than coke. But it is
Thumsup, which is making the major difference in the market.
5. The sale in agewise section, it was found that 200ml is sold in all the
age groups with same frequency but 300ml is sold mostly in 16 to
45yr. of age group where as CAN is sold in hi younger generation
only. Finally 2lit. Are used only for family or party purpose.
6. It was also seen that Pepsi brand is lagging the Coke especially in
Muslim dominated area, which makes a major difference in the market.
LIMITATIONS
The study has not been intended on a very large scale, have the
possibility of errors, which cannot be ruled out.
Time limitations.
The time allowed for the project was very short (8 weeks). It was
impossible to study deeply in that short period.
.
RECOMMENDATIONS:-
1. PEPSI, the choice of Generation next is not providing the first choice
of young generation. A young generation wants something strong in cold
drinks & thus prefers Thumsup. Pepsi should come out with some extra
strong taste to catch up maximum young generation & to become exactly
Generation Next drink.
7. Half filled bottles should also be checked at the time of issue of goods
from the distributor’s godown to the respective routes.
8. Company should try to give some credit facility to the distributors so
that they get motivated.
WEBSITES:
www.pepsi.com
www.pepsico.com
www.jaipuriagroup.com
www.rkjworld.com
BOOKS:
Research Methodology-C.R.Kothari
NEWS PAPERS:
Hindustan Times
QUESTIONNAIRE
Name of outlet
Address
Contact person with phone no.
Type of outlet:-
Glossary,kiosk,provision store,eatery,other.
Yes No
Coke
Pepsi
Others
Yes No
Yes No
Yes No
Yes No