Summer Internship Project Report On

Sales & Distribution of PepsiCo

Undertaken At: Tripty Drinks Pvt. Ltd. Jagatpur, Cuttack

Submitted for partial fulfillment of M.B.A Degree Submitted By Manas Kumar Sahu Registration No-1106287004

External Guide: Mr. Ashwini Dash Asst. Manager (Sales) Tripty Drinks Pvt. Ltd.

Internal Guide: Mrs. S. Sagarika Mohanty Asst. Prof. Marketing GITA, BBSR

GANDHI INSTITUE FOR TECHNOLOGICAL ADVANCEMENT, BBSR

GUIDE CERTIFICATE
This is to certify that Mr Manas Kumar Sahu, a student of MBA 3rd semester 2ndyear GANDHI INSTITUTE FOR TECHNOLOGICAL ADVANCEMENT,BBSR has undergone this project of SALES & DISTRIBUTION OF PEPSI CO on JAGATPUR,CUTTACK Under the supervision of Asst. Prof. S. Sagarika Mohanty and submitted satisfactory project report during session 2012-2013. This report satisfies entire practical fulfillment for the Biju Patnaik University of Technology Examination. In the sincere efforts of the student hard-work, this report satisfies the practical study of them certified by Biju Patnaik University of Technology.
DATE: Mohanty Marketing GITA, BBSR Mrs. S. Sagarika

Asst.Prof. of

ACKNOWLEDGEMENT
I would like to express my gratitude to all those who gave me the opportunity to complete this project. I would like to thank my Institute authorities & my internal guide Asst.Prof. S.Sagarika Mohanty. For providing me the opportunity to work with one of the most prestigious organization. I want to thank the Head of Training Department Mr. Sanjay Gupta for giving me permission to commence this summer training project in the first instance, to do the necessary research work & to use departmental data & resources. I would also like to thank the External or Company Guide Mr. Ashwini Kumar Dash. I am also thankful to the staff members, thanks to my parents whose constant support enabled me to complete this project work. Tha nk You

Manas Kumar Sahu Regd.No :1106287004

DECLARATION
I do hereby declare that in an endeavor of this nature of M.B.A, Gandhi Institute for Technological Advancement, Bhubaneswar, this project is the representation of my original project work done in entitled Sales & Distribution of PepsiCo. Undertaken At: Tripty Drinks Pvt. Ltd., Jagatpur, Cuttack.

This report is neither submitted to any other Institute/University, nor published in any time before.

MANAS KUMAR SAHU REGD.NO1106287004 GITA, BBSR

PREFACE
Marketing is merely a civilized form of warfare in which better are on with words, disciplined thinking, power of original ideas, forward vision & quick action couple with keeping in mind the customer desire. Having merely an understanding of customer is not enough today. The most difficult part of the whole nation is to retain those customers as brand loyal. In sharing sixties, companies could ignore their competitors because most markets were growing. The product is the most important tool in the marketing mix. Without a product, there is no question of marketing. The whole marketing program is based on the product. The buyer purchases a product only because it serves the customer by satisfying his needs & desire & therefore, he pays for it. Thus, a product is a bundle of potential utility, because customer is more interested in the benefits he gets

from the product rather than the product characteristics in a physical sense. Distribution channel & retail activity is a term in which every company & competitors are trying to eat each others share away. It is my great advantage that Tripty Drinks Pvt. Ltd. has given me this opportunity to understand the sales & Distribution activity of the company. I am highly obliged to receive this existing opportunity to work & gain experience from such immensely cooperative, dynamic a challenging organization. I hope that you will appreciate with my work.

EXECUTIVE SUMMERY

Project Title Name of the Company Place of work

: :

Sales & Distribution of PepsiCo PepsiCo

Jagatpur, Cuttack

Duration

5 Weeks

External Guide Internal Guide

: :

Mr. Ashwini Dash

Asst.Prof. S. Sagarika Mohanty To know the opportunity & threat in the field of marketing.

Major Objective

Content

Chapter-1 Introduction1. About Marketing 2. Objective of the study 3. Limitation of the study 4. Research Methodology

Chapter-2 Company Profile5. History 6. Corporate Governance 7. PepsiCo India 8. Soft drinks Market in India 9. Brand of PepsiCo 10. Mission & Vision of PepsiCo 11. About Tripty Drinks 12. Product line of PepsiCo 13. Theoretical aspect of the topic

Chapter-3 Findings of the study14. Presentation, Analysis & Interpretation of Data

Chapter-4 Discussion & Conclusion15. Issues 16. Recommendations 17. Conclusion

Chapter-5 Bibliography & Questionnaire18. Bibliography 19. Questionnaire

Chapter-i INTRODUCTION

Relevance of the project topic

The process of ascertaining consumer needs, converting them into a product or service & then moving the product or service to the final consumer or user to

satisfy such needs & wants of specific customer segment or segments with emphasis on profitability, ensuring the optimum use of resources available to the organization. Marketing is so basic that it cant be considered a separate function. It is the whole business seems from the point of view of its final results that is from the customers point of view.Business success is not determined by the producer but by the customer. According to me marketing means, push the product to the market & pull the customer towards the business. We can say that the main aim of the marketer is to convert the want of the customer to the need of the customer. Thus marketing job is to convert societal needs into profitable opportunities. Hence, Marketing occupies an important position in the organization of a business unit. It is one of the important line activities of business operation. It consists of the ownership of goods. Goods are not complete products until they are in the hands of the customer. It is the process by which products are made available to the ultimate consumers from their point of origin. It consists of all those activities, which are meant to ensure the flow of goods & services from the producer to the consumer. Therefore, marketing thinking must start with a crystallization of needs of consumer segment of which the efforts will ultimately be aimed. In terms of needs, the product or service must be developed or improved so that ultimately the product satisfies such needs of the consumer segment involved.

Today marketer, have to take tough decisions because todays market place is venomously more complex. Domestic markets, at one time safe from foreign invaders are now the happy hunting grounds of giant global corporation as well as global niche specialists. Major strides in technology have considerably shortened time & distance. New products are launched & astonishing pace are available worldwide in a short time. Communicating ones media are proliferating new distribution channels & formats keep appearing. Competitors are everywhere & hungry.

SUPPLIER

COMPANY COMPETITO R

MARKETING
INTERMEDIARI ES

END USER

Objective of the Study

Primary Objective: Find out the position of PepsiCo in Cuttack market & the distribution of the company in Pahala market. Secondary Objective: Find out the marketing channel of PepsiCo & the mode of distribution. To know the stock position of PepsiCo & its competitor ready to be served. To ascertain the performance of the PepsiCo brand. To know the market share of PepsiCo product. To analyze the strength & weakness of PepsiCo.

To measure the effectiveness of the distribution network satisfying the retailer.

Limitation of the study

The major limitation of the study was that the depth study in the subject could not be done because of limited time. The other limitations are: The company doesnt declare all the data & the internal data are kept confidential. Though every sincere & possible effort has been made to collect the data, some retailers were uncooperative in providing the actual data. The project is done in Cuttack may not represent the figure of the whole India. Since the data collected was representative based the accuracy is questionable. Some questions created confusion among the respondents. Income considered is doubtful.

Method of study
Universe of Study Sample Size Method of Study

: : :

Cuttack, Pahala 75 Retail Outlet Questionnaire Method, Direct personal interview Method & Distributor or Store Audit Method.

Two type of data collection method were adopted: Primary data collection- Primary data were collected through the open end & close end questions of the questionnaire, direct interaction with the customer & the outlets & some data are collected from the distributor & from the stores. Secondary data collection- Secondary data were collected from the website of PepsiCo that is PepsiCo.com & from some management organizations. Research Plan: To find out the sale, stock & the problems of each outlet I divided the Cuttack district to some geographical areas & I visit each area everyday & I cover all the outlets comes under the area. In Cuttack city to find out the stock of different flavor I also divided the Pahala to some geographical areas & each area I visit two times to find out the particular sale of carets, pets & my can etc. Research Instrument: Here the common research instrument is the questionnaire through which primary data is collected from the different retail stores. Contact Method: At first I directly met the retail stores & introduced myself as a MBA student & then collected the data required for my project work such as Name of outlet, Address, Contact person, Contact number, Type of shop, Monopoly or Mix counter, Visicooler is given by the company or own freeze, Quantity of each brand & at last Problems & Demands. Respondent: General Store, Betel Shop, Hotel, Restaurant, Fast food centre, Pay phone shop, Juice centre, Ice cream parlors, Grocery shop, Other shops.

Chapter-ii COMPANY PROFILE

History

Headquartered in Purchase, New York, with Research and Development Headquarters in Valhalla, NY, The Pepsi Cola Company began in 1898 by a Pharmacist and Industrialist Caleb Bradham, Like many pharmacists at the turn of the century he had a soda fountain in his drugstore, where he served his customers refreshing drinks, that he created himself. His most popular beverage was something he called "Brad's drink" made of carbonated water, sugar, vanilla, rare oils, pepsin and cola nuts. "Brad's drink", created in the summer of 1893, was later renamed Pepsi Cola in 1898 after the pepsin and cola nuts used in the recipe. In 1898, Caleb Bradham wisely bought the trade name "Pep Cola" for $100 from a competitor from Newark, New Jersey that had gone broke. The new name was trademarked on June 16th, 1903. Bradham's neighbor, an artist designed the first Pepsi logo and ninety-seven shares of stock for Bradham's new company were issued. After seventeen years of success, Caleb Bradham lost Pepsi Cola. He had gambled on the fluctuations of sugar prices during W.W.I, believing that sugar prices would continue to rise but they fell instead leaving Caleb Bradham with an overpriced sugar inventory. Pepsi Cola went bankrupt in 1923. In 1931, Pepsi Cola was bought by the Loft Candy Company Loft president, Charles G. Guth who reformulated the popular soft drink. Guth struggled to make a success of Pepsi and even offered to sell Pepsi to the Coca-Cola company, who refused to offer a bid. In 1940, history was made when the first advertising jingle was broadcast nationally. The jingle was "Nickel Nickel" an advertisement for Pepsi Cola that referred to the price of Pepsi and the quantity for that price. "Nickel Nickel" became a hit record and was recorded into fifty-five languages. In 1964, Diet Pepsi was introduced. But it only became known as PepsiCo when it merged with Frito Lay in 1965. Until 1997, it also owned KFC, Pizza Hut, and Taco Bell, but these fast-food restaurants were spun off into Tricon Global Restaurants, now Yum! Brands, Inc. PepsiCo purchased Tropicana in 1998, and Quaker Oats in 2001. In December 2005, PepsiCo surpassed Coca-Cola Company in market value for the first time in 112 years since both companies began to compete.

In 2008 PepsiCo. donated a half-million dollars to Parents, Families and Friends of Lesbians and Gays, an action which resulted in a boycott of the brand led by the American Family Association. Corporate governance Current members of the board of directors of PepsiCo are Indra Nooyi C.E.O., Robert E. Allen, Dina Dublon, Victor Dzau, Ray Lee Hunt, Alberto Ibargen, Arthur Martinez, Steven Reinemund, Sharon Rockefeller, James Schiro, Franklin Thomas, Cynthia Trudell, and River King. On October 1, 2006, former Chief Financial Officer and President Indra Nooyi replaced Steve Reinemund as chief executive officer. Nooyi remains the corporation's president, and became Chairman of the Board in May 2007. Mike White is the President of Pepsi International Division Frito-Lay

The Frito Company & H. W. Lay Company merged in 1961 to become Frito-Lay Inc. PepsiCo began its international snack food operations in 1966. Today, with operations in more than 40 countries, it is the leading multinational snack chip company, accounting for more than one quarter of international retail snack chip sales. Major Frito-Lay products include Ruffles, Lays & Doritos brands snack chips. Other major brands include Cheetos cheese flavored snacks, Tostitos tortilla chips, Santitas tortilla chips, Rold Gold pretzels & Sun chips multigrain snacks. Frito-Lay also sells a variety of snack dips & cookies, nuts & crackers. Pepsi-Cola

Today consumers spend about $33 billion on Pepsi-Cola beverages. Pepsi brand & other PepsiCo products include Diet Pepsi, Pepsi One, Mountain Dew, Slice, Sierra Mist & Mug brands. PepsiCo also offers a variety of non-carbonated beverages including Aquafina bottled water, Fruit works & all sports drinks.

In 1992 PepsiCo formed a partnership with Thomas J. Lipton Co. Today Lipton is the biggest selling ready- to-drink coffee through a partnership with Starbucks. In 2001 SoBe became a part of PepsiCo. SoBe manufactures & markets an innovative line of beverages including fruit blends, energy drinks, dairy-based drinks, exotic teas & other beverages with herbal ingredients. Outside the U. S, PepsiCo soft drink operations include the business of 7Up international. Gatorade & Tropicana

PepsiCo acquired Tropicana including the Dole juice business, in August 1998. Today the Tropicana brand is available in 63 countries. Principal brands in North America are Tropicana Pure Premium, Tropicana Seasons Best, Dole juices & Tropicana Twister. Internationally the other brands include Fruit Vita, Looza & Copella. Tropicana pure Premium is the third largest brand of all food products sold in grocery stores in U.S.A. Gatorade sports drinks were acquired by the Quaker Oats Company in 1983 & became a part of PepsiCo with merger in 2001. Gatorade is the first isotonic sport drink created in 1965 by researchers at the University of Florida for the schools football team, The Gators, Gatorade is now the worlds leading sport drink. Quaker Foods

The Quaker Oats Company was formed in 1901 when several American pioneers in oat milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour & William Heston had established the Quaker Mill Company & registered the now famous trademark. The figure of a man in Quaker clothes became the first registered trademark for breakfast cereal & remains the hallmark for Quaker Oats today.

In 1986, the Quaker Oats Company acquired the Golden Grain Company, producers of Rice-A-Roni. PepsiCo merged with the Quaker Oats Company in 2001.

PepsiCo India
History
PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. Others claim that firstly Pepsi was banned from import in India, in 1970, for having refused to release the list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on the market shortly afterwards. These controversies are a reminder of "India's sometimes acrimonious relationship with huge multinational companies." Indeed, some argue that PepsiCo and The Coca-Cola Company have "been major targets in part because they are well-known foreign companies that draw plenty of attention." In 2003, the Centre for Science and Environment (CSE), a non-governmental organization in New Delhi, said aerated waters produced by soft drinks manufacturers in India, including multinational giants PepsiCo and The Coca-Cola Company, contained toxins, including lindane, DDT, malathion and chlorpyrifos pesticides that can contribute to cancer, a breakdown of the immune system and cause birth defects. Tested products included Coke, Pepsi, 7 Up, Mirinda, Fanta, Thums Up, Limca, and Sprite. CSE found that the Indian-produced Pepsi's soft drink products had 36 times the level of pesticide residues permitted under European Union regulations; Coca Cola's 30 times. CSE said it had tested the same products in the US and found no such residues. However, this was the European standard for water, not for other drinks. No law bans the presence of pesticides in drinks in India. The Coca-Cola Company and PepsiCo angrily denied allegations that their products manufactured in India contained toxin levels far above the norms permitted in the developed world. But an Indian parliamentary committee, in 2004, backed up CSE's findings and a government-appointed committee, is now trying to develop the

world's first pesticides standards for soft drinks. Coke and PepsiCo opposed the move, arguing that lab tests aren't reliable enough to detect minute traces of pesticides in complex drinks. On December 7, 2004, India's Supreme Court ruled that both PepsiCo and competitor The Coca-Cola Company must label all cans and bottles of the respective soft drinks with a consumer warning after tests showed unacceptable levels of residual pesticides. Both companies continue to maintain that their products meet all international safety standards without yet implementing the Supreme Court ruling. As of 2005, The Coca-Cola Company and PepsiCo together hold 95% market share of soft-drink sales in India. PepsiCo has also been accused by the Puthussery panchayat in the Palakkad district in Kerala, India, of practicing "water piracy" due to its role in exploitation of ground water resources resulting in scarcity of drinking water for the panchayat's residents, who have been pressuring the government to close down the PepsiCo unit in the village. In 2006, the CSE again found that soda drinks, including both Pepsi and CocaCola, had high levels of pesticides in their drinks. Both PepsiCo and The Coca-Cola Company maintain that their drinks are safe for consumption and have published newspaper advertisements that say pesticide levels in their products are less than those in other foods such as tea, fruit and dairy products. In the Indian state of Kerala, sale and production of Pepsi-Cola, along with other soft drinks, was banned by the state government in 2006, but this was reversed by the Kerala High Court merely a month later. Five other Indian states have announced partial bans on the drinks in schools, colleges and hospitals. Soft drinks market in India Non-alcoholic soft drink beverage market can be divided into fruit drinks & soft drinks. Soft drinks can be further divided into carbonated & non-carbonated drinks. Cola, lemon & oranges are carbonated drinks while mango flavor comes under noncarbonated category. India is one of the top five markets in terms of growth of the soft drinks market. The per capita consumption of soft drinks in the country is estimated to be around 6 bottles per annum in the year 2011. It is very low compared to the corresponding figures in US (600+ bottles per annum). But being one of the fastest growing markets and by the sheer volumes, India is a promising market for soft drinks. The major players in the soft drinks market in India are PepsiCo and Coca-Cola Co, like elsewhere in the world. Coca-Cola acquired a number of local brands like Limca, Gold Spot and Thums Up when it entered Indian market for the second time. Pepsi Cos soft drink portfolio also consists of Miranda and 7Up along with Pepsi. The market share of each of the company is more or less the same, though there is a conflict in the estimates quoted by different sources

The major ingredient in a soft drink is water. It constitutes close to 90% of the soft drink content. Added to this, the drink also contains sweeteners, Carbon dioxide, Citric Acid/Malic acid, Colors, Preservatives, Anti Oxidants and other emulsifying agents, etc.

BRANDS OF PEPSICO

PEPSI DIET PEPSI PEPSI ONE

SEASONS BEST LIPTON ICE TEA TROPICANA JUICE

PEPSI MAX SABRITAS FRAPPUCCINO MIRINDA MOUNTAIN DEW SIERRA MIST AQUAFINA

GATORADE RUFFLES 7UP LAYS DORITOS DOLE JUICE TOSTITOS

ROLD GOLD

SOBE

Mission of PepsiCo
Our mission is to be the worlds premier consumer Products Company focused on convenient foods & beverages. We seek to produce financial rewards to investors as we provide opportunities for growth & enrichment to our employees, our business partners & the communities in which we operate & in everything we do, we strive for honesty, fairness & integrity.

Vision of PepsiCo
PepsiCos responsibility is to continually improve all aspects of the world in which we operate- environment, social, economiccreating a better tomorrow than today. Our vision is put into action through programs & a focus on environmental stewardship, activities to benefit society, & a commitment to build shareholder value by making PepsiCo a truly sustainable company.

Tripty Drinks (P) Ltd

M/S Tripty Drinks (P) Limited is a well known manufacturing organization in the state of Orissa for manufacturing & sales of Soft Drinks since last 44 years. This unit was incorporated itself as a manufacturing unit in the year 1968 & started its production in 1969. Since its inception the unit is engaged in manufacturing soft drinks of different brands taking franchisee from the brand name owner. Since 1991 Tripty drinks have been manufacturing PepsiCo brand of products. In the State of Orissa PepsiCo products is brought to you by Tripty Drinks, Jagatpur best professionally managed company promoted by the Jaipuria Group. The promoters vast experience for the last thirty five years in manufacturing national & world renowned brands has helped to deliver to consumers consistent quality comparable to the best of International Standards. Pepsi is the ideal choice for both the classes as well as the masses for individual consuming low quantities as well as high establishment. The seemingly vast gap in catering to a vast & varied consumer base has been bridged by introducing Contain no fruit in a hygienic convenient bottle packages. The company firmly believes in modernization & up-gradation of facilities in order to offer its customers the very best. At Tripty Drinks the implicit belief is in achieving leadership status through quality assurance & every effort is focused in this direction. The latest state-of-the-art plant delivers the finest quality juice, adhering to the most stringent norms. Strict supervision is enforced by diligent people at every step of the production process. The juice products manufactured are hygienically handled & very effort is made to retain its freshness. Consistency in taste is achieved to the expert in-house QC Professionals. By blending in superior quality with the fine arena of business the company looks forward to establishing leadership in near future. By concocting a superb strategy the professionals at Tripty Drinks have exemplified their marketing & sales capabilities to enhance the value of PepsiCo. The marketing gurus at Tripty drinks have understood the finer nuances of marketing. The significance of the 5 ps, product, packaging, pricing, place & promotions has been used to fine turn the strategies. The core management team controls the entire network on all India bases & finally monitors the movement of the product in the market place.

The daily feedback allows for prompt & swift corrective action to tackle problems, strengthen the brand & achieve rapid growth of all those who associate with publicity & advertising strategies have been designed to be in tandem with the market needs, & this is expected to further boost the sales as well as create a brand name to reckon with.

Location & area coverage by Tripty Drinks

M/S Tripty Drinks (P) Limited is located at Jagatpur Industrial Estate, 7 km away from Cuttack City, the old capital of the state of Orissa & heart of business activities in the state. The factory is situated on the bank of the river Mahanadi, the largest river in the state & in the side of National Highway 5. The factory is also close to the railway station & correctly located for transport of raw materials & finished products. The factory acquires 7.6 acres of land out of which 2.5 acres are built-up area for factorys plant & machinery & administrative offices.

Silent Features of the Company

Date of incorporation Commencement of production Registered office Production capacity Go down stock capacity Total land area Built up area Market covered

: : : : : : : :

12.05.1967 16.07.1968 Jagatpur, Cuttack-754021 42 lakhs crates per annum 1,20,000 crates 7.6 acres 2.5 acres Odisha state

Product Line of PepsiCo FLAVOUR

COLA (PEPSI)

ORANGE (MIRINDA)

LEMON (MIRINDA) COLD DRINKS

LIME & LEMON (MOUNTAIN DEW)

MANGO (SLICE)

PEPS I

7UP

MIRIND A (ORANG E)

MIRIN DA (LEMO N)

SLIC E

MOUNTAI N DEW

Brand of PepsiCo
RGB Produ ct Pepsi 7up Slice Mirind a (o) Mirind a (L) M.Dew Y Y Y
200M L 250M L 300M L 500M L 600M L

PET
1LT 1.2L T 1.5 LT 2LT TETRA 200ML MY CAN

Y Y Y

Y Y Y Y Y Y

Y Y Y Y

Y Y

Y Y Y

Y Y

The major aspect of my project was to survey the Cuttack town for assessing the distribution channel & retail activity of PepsiCo brand soft drinks, market flow of soft

drinks & market share of PepsiCo thereof. I did the job diligently I tried to cover up many areas & I was able to touch a large number of retail shops dealing with soft drinks of giant companies, i.e., PepsiCo & Coca-Cola Company. Some of the main findings of my survey of the market are produced below. In the market of Cuttack City the demand of PCI & CCX companies is not only high, but also increasing gradually. Of them 7up, Mirinda, Slice, Thums up, Sprite, Fanta, Maaza, are mostly demanded by the customers. Here Coca-Cola is the main competitor of PepsiCo. Here in the Cuttack City the position of PepsiCo is slightly better because of better quality, good distribution & effective supervision. In established areas I found PepsiCo & Coca-Cola monopoly counters are more in number whereas in other areas the retailer are maintaining mixed outlets to attract more & more consumers & meet their varied tastes. Even some retailers keep Parle products like Frooti, Appy & Grappy along with other soft drinks of PepsiCo. Some of the Pepsi retailers are well established with sound infrastructure while others are not so well footed. The latter are in need of direct assistance & credit from the company to boost their business. Though the retailers cordially assisted me in conducting my survey, some distributors did not disclose the detailed information regarding various schemes of the company. Most of the retailers are also not aware of those schemes, because of their ignorance. As a result, they are deprived of the benefits of those schemes. Most of the Pepsi retailers provided with company chilling machines, i.e., Visicoolers to stock PepsiCo products & chill them. Though the monopoly outlets use the company Visicooler exclusively for PepsiCo products, but most of them are found to be stocking other items like water pouch, Omfed products & Amul products. The mixed outlets, on the other hand, use the PepsiCoVisicooler for stocking the products of competitor in addition to PepsiCo products. Some of them also stock other products like Omfed milk, Curd etc. Some of the machines are found to have become old & gone out of order due to lack of proper maintenance. They need replacement.

Sales & Marketing relationship Marketing plays a very important part in sales. If the marketing department generates a potential customers list, it can be beneficial for sales. The marketing departments goal is to bring people to the sales team using promotional techniques. 1. Advertising 2. Sales Promotion 3. Publicity 4. Public Relations In most large corporations, the marketing department is structured in a similar fashion to the sales department & the management of these teams must coordinate efforts in order to drive profits & business success. Driving customers through the

door gives the sales department a better chance by ration of selling their product to the consumer.

Distribution Channel of PepsiCo A distribution channel is asset of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or industrial user. We know that consumer of any age or sex engaged in any activity needs a proper distribution to make product available everywhere. If there is a proper feeding of the dealers, the company is in a better position to supply & satisfy that impulse demand of the customers. As the number of dealers increases, the dealer index goes down & the sales increases. Then also product will be available in more places & more accessible areas, as a result the consumption of product will increase. Therefore, the per capita consumption that is average number of bottles consumed by a person over a year will increase. This of course means an increase in total sales. A distribution system must have adequate number of vehicles & staff to supply the product at each & every outlet fast. In PepsiCo the coordination between channels is very good. In PepsiCo the company Tripty Drinks sale its product directly to the distributor in cash. There is no credit system & the distributor sale the product through his personal vehicle to the outlet & the outlet sale it to the customer. So, the main objective of the distribution channel is to cover up the wide area at proper time & in adequate quantity clearing up of all transactions having no bad debts & reducing the channel conflict by proper task clarity with targeted sales figure, job & necessary supervision of the work by the executives.

Distribution Channel of Tripty Drinks Pvt. Ltd

Tripty Drinks (P) Limited

Depot Distributor

Retail er

Customer

Marketing Strategies of PepsiCo

Focus on availability of product in the market- PepsiCo works on Dikhega to bikega philosophy. This is the main formula for marketing strategy of each company. So availability of product in market is clear. For this reason, the market developer daily comes to the market to check their product availability.

Focus on availability of product in outlet- There is a difference between availability of product in market as well as in outlet. So PepsiCo wants its product to be available in each outlet in the market. Focus on visibility of PepsiCo products in outlet- The aim of PepsiCo is that its product should be visible to the customers so it gives Visicoolers & rack to outlets. Regular market vigilance by market developer- To know the position of PepsiCo products in the market, PepsiCo appoints some executives to go to the market & check availability of products, take care of company assets, check Visicoolers, talk to outlet owners about any problem & take feedback about the product. Distribution of product according to locality- PepsiCo distributes its products according to locality. Say for example it distributes more RGB in an area where there are more Bars & Restaurants. Focus on monopoly outlets- Outlets which sale only PepsiCo products are known as Monopoly outlets. These monopoly outlets give more sales to the company. So company gives extra schemes, discounts & gifts to those outlets.

Live Project in Cuttack Market During my five weeks project, I worked in the Pahala & Cuttack market with the following team: 1. Mr. Sanjay Gupta (Head of Sales)
2.

Mr. Ashwini Dash (Assistance manager) Process in which I worked

First I had gone for a market survey in Cuttack and I was able to cover all the outlets distributed by Sambit Agency. Then, I travelled Pahala to Cuttack with Mr. Ashwini Dash to know the area covered by the distributor. After knowing the area properly, I tried to touch each & every outlet of Pepsi so that every counter must get some stock of Pepsi during the off season.

During the period, I made sure that the schemes are properly given to the retailers which included educating retailers of the benefits of the scheme & in the process increase the sales.

I did POG for Visicoolers & ensured that at least 5 Plano grams are done per day.

Then, during the scheme period I visited the Coke counters to receive the order of Pepsi PET bottles & I was able to sell Pepsi products in Coke outlets. Then I worked on to make PepsiCo products available in each & every outlet of my area. It was during this period when I cracked Coke outlets.

 I also developed new counters for PepsiCo during my period of work. During the period, I also prepared my DSR (Daily Sales Report)

Cuttack Distributor Profile

There are a total of 14 distributors operating in Cuttack. The details of the distributor under which I worked is as followed: Name: Sambit Agency Address of go down: Pahala, Cuttack Staff Employed: 07 Vehicles: 02 (2 Ace) Area Covered Baranga, KisanNagar,Athagarh,Pahala,Linkroad,NewBazar,Khannagar, PratapNagar, PiraBazar, Naharakanta, C.D.A, Pahala, Baxibazar,Niali. Schemes Given During the Period Period 10.08.2012 - 04.08.2012 Schemes Given (RGB) 2Btl 200/300 ml free on 1Cs 200/300 ml Pep, Mir & Dew:1Btl 7up on 1Cs 7up: (PET) 2Btl 600ml on 1 Cs of 600ml/2ltr (All Flavor): 1Btl

05.09.2012-15.09.2012

500ml Slice on 1Cs Slice 500ml/1.2ltr:2pc Mycan on 1Cs Mycan. (RGB) 2Btl 200/300 ml free on 1Cs 200/300 ml Pep, Mir & Dew:1Btl 7up on 1Cs 7up: (PET) 2Btl 600ml on 1 Cs of 600ml/2ltr (All Flavor): 1Btl 500ml Slice on 1Cs Slice 500ml/1.2ltr:2pc Mycan on 1Cs Mycan.

In order to know the market share of PepsiCo, survey was conducted from 5th Aug, 2012. First, I visited to cuttack & I surveyed 307outlets. Then I surveyed different outlets 98 in Pahala. I have collected the data through Questionnaire & Personal interview. My data was regarding the selling of PepsiCo & Coca-Cola products. After assimilating, recording, classifying, analyzing & inter trapping the finding, final conclusion has been drawn. It is concluded that: Thumps-Up is more demanded than Pepsi.

The demand of Slice is more than Maaza in both Pahala & Cuttack. The demand of Sprite & 7up in Cuttack is approximately same but in Pahala the demand of 7up is more than Sprite.

Mirinda is more demanded than Fanta.

So in order to increase the growth of market share & sales, taste & preferences of the consumer are to be highlighted & to be taken into prior consideration. Hence in order to know the most preferred flavor according the stake a survey work is organized.

For a successful survey work certain points are to be taken into consideration. It is of immense importance that nobody spares his valuable time for the survey purpose. For this time factor is to be kept in mind & accordingly the questionnaire is prepared. Since the research was conducted in Pahala & Cuttack, I had to plan the survey in such a way so that less time was required by a respondent to fill up the questionnaire. The analysis is divided into two sub-parts Analysis of data collected through questionnaire Analysis based on different shop in different areas.

CHAPTER-3

DATA ANALYSIS AND INTERPRETATION

1. Which brand of soft drinks you like most?

Pepsi Coke None of these 31 35 9

Interpretation: From the above graph it is clear that 31 of the 75 outlets like Pepsi & 35 outlets like Coca-Cola products.

2 .Reasons for choosing the soft drinks company?

Availability Brand Name Fashion Taste

27 36 5 7

Interpretation: From the above graph it is clear that most of the retailers are choosing the soft drinks for the brand name.

3.From which brand you are getting more offers? Pepsi Coke Both same Cant say 50 12 10 3

Interpretation: From the above graph it is clear that 50 of the 75 outlets are getting offers from Pepsi brand & 12 of the outlets from Coke.

4. Which brands packaging is more attractive?

Pepsi Coke Both same Cant say

51 16 6 2

5.Which brand gives you more profit? Pepsi Coke Both same Cant say 33 26 13 3

6. What type of promotional activities is more beneficial for your store? Hoading Wall paints Sine board/glow board Window display 35 15 17 8

7 .Which brand of soft drinks Pepsi Coke 50 25 has a strong distributor network in your area?

8. Which product of PepsiCo is preferred most by the customers?

Pepsi

10%

Mirinda 7up Slice Mountain Dew

16% 34% 29% 11%

9.Are you satisfied with the services provided by PepsiCo?

Yes No

51 24

10. NO.1 brand according to you? Pepsi 55 Coke 20

Issues

After completing my survey I found that there are lots of issues lying in the market that makes a result of low performance of PepsiCo. PepsiCo sales volume is very low because The taste of Pepsi brand is not preferable by the customers.

 Strong competitor: Thumps Up New entrants: low cost fruit juice Xing, one rupee water pouch and butter milk. Schemes are not feasible to retailers because they dont get benefit from it. Low promotions in the outlets. Gap between service quality specifications and service delivery. Gap between consumer expectation and management perception. High degree of outlet industry. Sales volume of 200ml is low because customers prefer to buy 300ml at Rs.14 rather than 200ml at Rs.10. Irregular visit to outlets. Promises are not fulfilled. Salesmen are not convincing the retailers about the scheme.

Recommendation

After seeing all the issues I can evaluate the following recommendation which may help the company to overcome the issues. Pepsi Innovation- the challenger can pursue product innovation of Pepsi brand. 3M typically

enters new markets by introducing product improvement. Distribution Innovation- A challenger might develop a new channel of distribution. Regular visit to outlets, convey the retailers. Product Proliferation- The challenger can attack the new entrants by launching fruit juice at low cost, thus giving buyers more choices. Improved services- The challenger can offer new or better services to customers. Company can adjust their least price and give discounts and allowances for early payment, volume purchases and off-season buying.

Cash Discount- A price reduction to buyers who pay bills properly. Quality Discount- A price reduction to those who buy large volumes. It must not exceed the cost saving to the seller. Functional Discount- Discount offered by manufacturer to trade channel members if they will perform certain functions, such as selling, storing and recordkeeping. Seasonal Discount- A price reduction to those who buy merchandise or services out of season. Hotels offer seasonal discounts in slow selling periods. Allowance- an extra payment designed to gain reseller participation in special programs. Promotional allowances reward dealers for participating in advertising and sales support programs.

Based on the service quality the company should identify the following four determinants of service quality, in order of importance. Reliability Providing service as promised Dependability in handling customers service problems Providing services at the promised time Maintaining error free records Assurance Employees who instill confidence in customers Making customers feel safe in their transactions Employees who are consistently courteous Employees who have the knowledge to answer customer questions Responsiveness Keeping customer informed as to when services will be performed Prompt service to customers Willing to help customers Readiness to respond to customers request Empathy Giving customers individual attention Having the customers best interests at heart Employees who understand the needs of their customers Improving service differentiation Ordering ease- it refers to how easy it is for the customer to place an order with the company. Delivery- Product or service should be delivered to the customer accurately.

Installation- Buyers of heavy equipment should install good service. Customer training- trained the customers salesman to use the vendors equipment properly and efficiently. Customer consulting- The seller must offer data, information system and advice services to buyers. Intensive advertising promotion The challenger should make heavy advertise in the market at different outlets and in television.

A CHALLENGER SUCCESS DEPENDS ON COMBINING SEVERAL STRATEGIES TO IMPROVE ITS POSITION OVERTIME

CONCLUSION

There are various types of outlets as: groceries, variety store, convenience stores, betel shop, hotels and medicine stores a whole total of 75 outlets who sell the products of PepsiCo. The share in the mind and the share in the heart of the consumers go in favor of Coca Cola and very less to PepsiCo. The main reason is services differentiation of PepsiCo in the market. The main service differentiators are: ordering ease, delivery, installation, customer training, customer consulting and maintenance and repair. And thus other service quality of PepsiCo which makes the sales volume at a low moderate stage is RARE. Reliability Assurance Responsiveness Empathy For this lack of service quality the market share of PepsiCo is very low in Cuttack market. The taste of Pepsi brand is not preferable by the customers but other brands as 7UP, Slice and Mirinda goes as usual. There are some other new entrants seen in the market that cause for lying down PepsiCo in the market as: low cost fruit juice Xing, 1 rupee water pouch and butter milk. The sales of Aquafina purified water of PepsiCo plunged at a very low stage because of 1 rupee water pouch. The promotional pattern as advertising is very high in television, but very less in the market. So, consumers are very less awareness of the PepsiCo products that lie in the outlets. So, the company should give more emphasis on his

product, promotion pattern and service towards retailers to reach the point of the mountain.

BIBLIOGRAPHY

1. Marketing Management (Philip Kotler) 2. Sales Management (Cundiff, Still and Govoni) 3. Product Management (S. A. Chunawalla) 4. Marketing Management(Dhrubadutta Chouwdhary) 5. Basics of Distribution Management (Satish K. Kapoor) 6. Research Methodology (C.R. Kothari)

Website
1. 2. 3. 4. 5.

www.pepsico.com www.pepsifoods.com www.coca-cola.com www.marketingchhannel.com www.google.com

Glossary
1. TDPL: Tripty Drinks Pvt. Ltd. 2. FOBO: Franchise Owned Bottling Operation 3. COBO: Company Owned Bottling Operation 4. PPM: Part Per Million

Questionnaire

Dear Sir, I am a student of MBA from Gandhi Institute For Technological Advancement, Bhubaneswar. I am conducting a

marketing survey of sales and distribution of Pepsi brand soft drinks in Pahala, Cuttack market. Here I want to know some information about Pepsi products from you. I am asking few questions. Your answers will help me for the purpose of my project training. Name. Occupation. Age. Sex.. Which brand of soft drinks you like most? Pepsi Coke None of these Reasons for choosing the soft drinks company? Availability Brand name Fashion Taste From which brand you are getting more offers? Pepsi Coke Both same cant say Which brands packaging is more attractive? Pepsi Coke Both same Cant say Which brand gives you more profit? Pepsi Coke Both same cant say What types of promotional activities are more beneficial for your store? Hoarding signboard/glow board Wall Paints window display No. 1 brand according to you? Pepsi Coke Which brand of soft drinks has a strong distributor network in your area?

Pepsi Coke Which product of PepsiCo is preferred most by the customers? Pepsi Slice 7UP MirindaMountain Dew Are you satisfied with the services provided by PepsiCo? Yes No

Thank you for your cooperation