Ganesh Roll No 20854100049mba Au

A study on

RETAILER’S PERCEPTION OF PEPSI CO SOFTDRINKS
With reference to

PEARL BOTTLING PVT. LTD. (PEPSI) VISAKHAPATNAM
A project report Submitted to “Andhra university” Visakhapatnam in partial Fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION
Submitted by

!S"#$% &"eg $o!'()*+),-.
Under the guidance of

Mr. N.V. PADDA RAJU, M.B.A
Asst. Professor

/he 0epartment of 1anagement studies
REGENCY INSTITUTE OF TECHNOLOGY YANAM-533464 &%!/! 2f uducherry. 3ear ,('(

1

CONTENTS
P !" N#$ CHAPTER %$  #ntroduction  $eed for the study  2bjectives of the study  1ethodology  4imitations CHAPTER '$ #ndustry profile CHAPTER 3$  5ompany profile! CHAPTER 4$  /heoretical Frame Work CHAPTER 5$  0ata Analysis and #nterpretation CHAPTER 6$  Findings  Suggestions  5onclusion ANNE*URE &%-&4 )6 - &( 66 - )5 5%-65 3( - 5( %(-'& %-&

BIBLIOGRAPHY

&5

2

CHAPTER-I INTRODUCTION

3

INTRODUCTION

$on6alcoholic 7everage industry can be classified into two types namely the fruit drinks industry and sot drink industry! Fruit drinks are made from e8tracts of natural fruits whereas soft drinks and flavored carbonated water containing sugar! /he soft drink industry is one of the most profitable industries in the world! #t is no surprise that the world9s leading 1ultinational 5ompany is a soft drink brand! /he major players in soft drink industry are the archrivals : coca : cola and epsi! /hese two companies are

competing in the soft drink market! 7oth companies are American based 1ultinational companies and are well known for having fought similar wars fiercely in other parts of the world! 7ut the average #ndian consumer is neither interested in the war not curious about what is happening in the soft drink market! epsi was established in the year ';*- from its inception till date epsi has created a name for itself! epsi employees over -<((<((( employees world wide and turnover is of a billions dollars! epsi 5o has been consistently featuring in the fortune maga=ines most flavored companies list! #n #ndia epsi started its operations in early ';;(s after the #ndian >conomy opened up! /he project titled R"+ ,-".’/ 0".1"0+,#23 deals in order in order to know the views of retailer towards the epsi services to them!

4

PROMOTIONAL ACTIVITIES$
7asically the promotional activities are of two types which are most fre?uently offered by beverage companies to the retailer and consumers! /hey are as follows

'! 52$S%1>" "212/#2$S ,! /"A0> S5@>1>S CONSUMER PROMOTIONS:
/hese are the promotions which are mostly offered to consumersAcustomers! Some of the promotions which are offered to them are coupons< gifts etc! these are helpful to companies to attract more consumers!

TRADE SCHEMES:
/hese schemes are mostly offered to the retailers which are ?uite helpful to gain trust and also encourage them to sell more number of cases! 7y offering these types of promotions to both consumer and retailers the soft dinks companies can gain more share in the competitive market!

RETAILERS PERCEPTION$
/he meaning of perception is views< awareness and insight! 7y knowing the views of retailers towards there services and also awareness of there offers providing to them! 7y

gathering the insight of retailers towards their company which is ?uite helpful for them to overcome there drawbacks in order to sustain in competitive market!

5

NEED FOR THE STUDY
/he present study is conducted considering the following aspects! Firstly

Visakhapatnam is a perspective of soft drink marketing in the country< which is highly promising with a lot of potential< which is to be tapped! Secondly< the behavior of the target consumers are highly vibrant showing the past movement in this life that is also market drive! /he marketing has Accompanied to representations< both formal and informal marketing!

@aving considered one by one of both consumer and retailer in present day market an attempt was made to study the perception of both consumers and retailers on the channels of distribution of Visakhapatnam! Soft drink industry has got a special place in marketing consumer product! World over< the market rivalry between international giants like epsi and coke are widely known as cold wars! #ndian soft drink industry is dominated few players like arle drinks etcB! /hat with the liberali=ation in ';;(9s in the #ndian >conomy< the competitors in this industry have increased tremendously and the end consumer had got the wide range of chief choices among! #t is the time to take the steps to improve the market share of the epsi products! @ence focus had laid on its marketing functions like perceptual activities distribution levels in marketing! epsi brands in general and market share of soft drinks in

6

OB4ECTIVES OF THE STUDY

 /o know the mode of buying of soft drinks by retailers!  /o know weather customers are aware of promotional activities provided by epsi 5ompany!  /o provide the marketing practices practiced by pearl bottling beverages private limited!  /o know the impact of advertisements on increase of sales!  /o give the views of retailers towards the trade schemes provided by epsi are satisfied or not!  /o know about the e8tent of satisfaction of retailers towards the services of epsi!  /o know the current consumption of soft drinks either it is increased or decreased by comparing with previous year!  /o know the sales of different levels customers in the basis of satisfaction aspects!

7

METHODOLOGY

1arketing research is the “Systematic design< collection< analysis< and reporting of data and finding relevant to a specific 1arketing situation facing the company”! 5ollection of data plays a key role in marketing research! /he accuracy of the collected data is of great significance for drawing correct and valid conclusions from the investigation! /his had done through following two sources! /hey are as follows!

•

rimary data sources

• Secondary data sources Primary data:
/he primary data is the first hand information which has6been collected as follows!  A set of structured non disguised ?uestion near was utili=ed for the project!  /he prepared ?uestion near consists of ,( sample ?uestions related to the topic “">/A#4>"S >"5> /#2$ A$0 "212/#2$A4 A5/#V#/#>S”!  /he data re?uired is collected through survey conducted!

8

 7ase on the responses given by consumers # prepared the data analysis and interpretation

Secondary data:
Secondary data can be defined as data collected by some one else for purpose of solving the problem being investigated! #t is second hand information< for this sis referred internet< books records< maga=ines!

LIMITATIONS

/he project report has been suffered from the following limitationsC '! /he study is conducted with the data according to it ,! Some errors may arise when the respondents give false information Few respondents do not pay proper attention due to lack of time )! /he study has limited to only two months! As such an in depth understanding of the retailers couldn9t be had! available and the analysis Was made

9

10

CHAPTER-II
INDUSTRY PROFILE

11

SOFT DRINKS INDUSRTY PROFILE

T5" H,/+#.6 #7 S#7+ D.,28/$
Soft drinks can trace their history back to the mineral water Found in natural springs! 7athing in natural springs has long been considered a healthy thing to doC and mineral water was said to have curative powers! Scientists soon discovered that gas harmonium or carbon dio8ide was behind the 7ubbles in natural mineral water! /he first marketed soft drinks &non6carbonated. appeared in the 'Dth 5entury! /hey were made from water and lemon juice sweetened with @oney! #n '*D*< the 5ompanies de 4emonades of aris were granted a 1onopoly for the sale of lemonade soft drinks! Vendor would carry /anks of lemonade on their backs and dispensed cups of the soft drink to /hirsty arisians.

4#/"05 P.,"/+-"6$
#n 'D*D< the first drinkable man6made glass of carbonated water was 5reated by >nglishmen 0octor Eoseph riestley! /hree years later< Swedish chemist /orero

7ergman invented a Fenerating apparatus that made carbonated water from chalk by the use of sulfuric acid! 7ergmanGs apparatus allowed imitation mineral water to be produced in large amounts!

4#52 M +5"9/$
#n '+'(< the first %nited States patent was issued for the Hmeans of mass 1anufacture of imitation mineral watersH to Simons and "endell of 5harleston< South 5arolina! @owever< carbonated beverages did not achieve great popularity in

America until '+),< when Eohn 1athews #nvented his apparatus for the making

12

carbonated water! Eohn 1athews /hen mass6manufactured his apparatus for sale to soda fountain owners.

H" -+5 P.#0".+,"/ #7 M,2". - : +".$
/he drinking of either natural or artificial mineral water was considered A healthy practice! /he American pharmacists selling mineral waters 7egan to add medicinal and flavorful herbs to unflavored mineral water! /hey used birch

bark< dandelion< sarsaparilla< and fruit e8tracts! Some @istorians consider that the first flavored carbonated soft drink was that made in '+(D by 0octor hilip Syng hysick of hiladelphia! >arly American pharmacies with soda fountains became a

popular part of 5ulture! /he customers soon wanted to take their HhealthH drinks home with them and a soft drink bottling industry grew from consumer demand!

T5" S#7+ D.,28 B#++-,2! I2;</+.6$
2ver '<-(( %!S! patents were filed for either a cork< cap< or lid for the 5arbonated drink bottle tops during the early days of the bottling #ndustry! 5arbonated drink bottles are under a lot of pressure from the Fas! #nventors were trying to find the best way to prevent the carbon 0io8ide or bubbles from escaping! #n '+;,< the H5rown 5ork 7ottle SealH Was patented by William ainter< a 7altimore machine shop operator! #t was the first very successful method of keeping the bubbles in the bottleI

A<+#= +,1 P.#;<1+,#2 #7 G- // B#++-"/$
#n '+;;< the first patent was issued for a glass6blowing machine for the automatic production of glass bottles! >arlier glass bottles had all been @and6blown! Four years later< the new bottle6blowing machine was in operation! #t was first operated by the inventor< 1ichael 2wens< an >mployee of 4ibby Flass 5ompany! Within a few years< glass bottle roduction increased from '<-(( bottles a day to -D<((( bottles a day!
13

H#=-P 8/ 2; V"2;,2! M 15,2"/$
0uring the ';,(s< the first “@om6 aksH were invented! H@om6 aksH are the familiar si86 pack beverage carrying cartons made from cardboard! Automatic vending machines also began to appear in the ';,(s! /he soft 0rink had become an American mainstay!

T,=" -,2" 5,/+#.6 #7 /#7+ ;.,28/$
'D;+ '+'( '+'; '+)'+-( '+-' '+*' '+DK '+D* '++' '++'++* '+;, '+;+ '+;; ';') /he term Hsoda waterH first coined! First %!S! patent issued for the manufacture imitation mineral waters! /he Hsoda fountainH patented by Samuel Fahnestock! /he first bottled soda water in the %!S! A manual hand J foot operated filling J corking device< first used for bottling soda water! Finger ale created in #reland! /he term HpopH first coined! /he first ice6cream soda sold! "oot beer mass produced for public sale! /he first cola6flavored beverage introduced! 5harles Aderton invented H0r epperH in Waco< /e8as! 0r! Eohn S! Feorgia! emberton invented H5oca65olaH in Atlanta<

William ainter invented the crown bottle cap! H epsi65olaH is invented by 5aleb 7radham! /he first patent issued for a glass blowing machine< used to produce glass bottles! Fas motored trucks replaced horse drawn carriages as delivery vehicles!

14

15

';,( ';,( ';,) ';,;

/he %!S! 5ensus reported that more than -<((( bottlers now e8ist! >arly /he first automatic vending machines dispensed sodas into cups! Si86pack soft drink cartons called H@om6 aksH created! /he @owdy 5ompany debuted its new drink H7ib64abel 4ithiated 4emon64ime SodasH later called HD upH! #nvented by 5harles 4eiper Frigg! Applied color labels first used on soft drink bottles< the coloring was baked on the face of the bottle /he first diet soft drink sold called the H$o65al 7everageH a gingerale sold by Lirsch! /he first aluminum cans used! /he pull6ring tab first marketed by the ittsburgh 7rewing 5ompany of ittsburgh< A! /he pull6ring tab was invented by Alcoa! /he Schlit= 7rewing company introduced the H op /opH beer can to the nation in 1arch< invented by >rmal Fra=e of Lettering< 2hio! Soft drinks in cans dispensed from vending machines!

';)K ';-, ';-D ';*,

';*)

';*-

16

';** ';D( ';D) ';DK ';D;

/he American 7ottlers of 5arbonated 7everages renamed /he $ational Soft 0rink Association! lastic bottles are used for soft drinks! /he >/ & olyethylene /erephthalate. bottle created! /he stay6on tab invented! #ntroduced by the Falls 5ity 7rewing 5ompany of 4ouisville< L3! 1ello 3ello soft drink is introduced by the 5oca 5ola company as competition against 1ountain 0ew!

F>$>S#S 2F #$0#A$ S2F/ 0"#$L 1A"L>/
#ndia having a hot climate has always has always been a place of variety of drinks to cool< off from the hot sunny days! erhaps this aspect has served as a boom to soft drinks markets that made a simple appearance to the middle of hostile people
17

but boom gained as access that has carried over the past five decades which has also seen the ups and downs of this thirst ?uenching market! With the introduction of liberali=ation policies< many foreign multinational have started business ventures in #ndia! /he first attempt to enter #ndia market in the soft drinks market was made by coke pure drinks pvt!4td! 0elhi was the first franchise bottles of coca6cola! >8port corporation in ';-( with Swedish 1ovement started by Eanata party 55>5 was asked to reduce its foreign capital holding K(M and delivers the know how to #ndia company! /his refused forced 55>5 to leave the country in ';DD! With the leaning of coca6cola the domestic soft drinks market got a lift and is raise to capture the #ndia market with arle as the main leader< gold spot<

/humps6up <1aa=a and Lismat become a house hold name! #ts market share grew to *(M in ';;' and it emerged as the market leader! /he first challenge to the supremacy of arle brands came from epsi cola in may ';;(! epsi that was in #ndia from ';-*6*' had left the country< as its products were not found acceptable to the #ndia public! epsi 5ompany in corporation< the ,, billion worth soft drinks< snacks and fast foods 5ompany has finally entered the #ndia market! /he unjab agro #ndustry 5orporation with )*M e?uity and tata

group company Voltas with ,KM e?uity were the promoters of epsi which itself had K(M e?uity! 4ater Volta9s share was ac?uired by epsi leaning only +M to unjab agro #ndustries! /he epsi 5ompany has been using “4>@A"” as prefi8 to each of its brand names! 4ater it was allowed by the government to drop the prefi8! Another challenge to arle came from coca6cola! /hus the #ndia soft drink market was
18

dominated by epsi< arle and coke in the ensuring days! 5oca6cola merged with arle in the year ';;)! Which year the season started off early with epsi and 5oca : 5ola

introducing diet cans for the first time in #ndia! 7y buying over local competitor the two American 5ola giants have cleared up the arena and are backing all the power behind the #ndian franchisees of their globe girdling brands! /hey are N with each other to capture the market by increasing the capital base in the count if epsi will be investing "s! )(( crores< coke will be pumping in eight times much "s! ,<K(( crores! /he total investment is a si=e and scale that the "s! '+9 corres soft drinks business has never been before! 7oth players see an enormous potential in this country< where swigging carbonated beverage is still considered treat< virtually a lu8ury! /he soft drink industry in #ndia has annual sales e8ceeding "s! ',<((( crore and most of the bottling companies have been doing flourishing business! #n fast five year all the bottling companies have grown and e8panded their activities in the market and by placing more and more of their soft drink cases in the mark and by improving refrigeration< supply of electric bottle coolers< etc!< to retailers! "apid changes in beverages packaging< taste and concentration changing the industry into a dynamic one liking for non : conventional foods are beverages there is good possibility that per capital< consumption will go up! Soft drinks are available mainly in three flavors< 5ola< 4emon and 2range According to estimatesC cola dominates the market with K(M market share!

19

4emon flavored drinks come second with )(M market share and 2range flavored drinks third with a ,(M. market share! 2ther flavors account for the rest of the market! Also< the Fovernment of #ndia considers soft drinks as non :essential commodity! /hus< heavy e8cise duty is levied on bottled soft drink! #n a country like #ndia where more than D(M of the population e8ists belowN he poverty line< the trading activities of soft drinks industry is concentrated in and around being and cities where the purchasing power of people is considered to be comparatively high! 5onse?uently< by World standard< #ndia9s per capital consumption of these servings is rock bottom< less even than our neighbors akistan and 7angladesh! #ntake &7ottles. 5ountry #ndia akistan 7angladesh er 5apita ';;( ';;) )!D ')!( D!( -!) )(!) ''!(

/he low consumption of soft drinks in #ndia may be attributed to the fact the prices of soft drinks are inflated due to high e8cise duties and ta8es! A bottler must pay as much as )DM of price per case as e8cise duty< sales and turnover ta8! A further '(M goes into e8penditure on local advertising and sales promotion! 0istribution and transport cost take care of another '(M. "aw material costs< concentrate sugar< citric : acid< bottle costs< etc!< eat off another ')M! roduction costs in terms of fuel< power maintenance and labour account for another 'KM!
20

/his leaves the bottlers a margin of a 'KM J KM of this would go into over : heads and interest charges< trimming down the margin to shrimphy KM 6 -M! Since the retail price of a bottle of a ,((ml soft drink ranges between "s! - to *< )((ml soft drink ranges between "s! ; to '(! A bottling operation is variable only with large volumes! @owever< the cola giants feel that per capita consumption can only go up and up! As incomes< so do life styles< a pattern they have seen in many of the ';countries they sell their universal products in! /he fi==y drinks industry longs in a'(M growth on an average with estimated sales of 'K( millions cases &one case ,K bottles of )((ml each.! /hese are heady growth figures the industry was both surprise by and unprepared for! 7ottles are disappearing from the shelves faster then they can be replaced! #n peak season< they found themselves short of capacity! >ven though they were working three shifts a day that is round the clock production! /hey had to turn around their trucks faster to satisfy the great #ndian thirst! #ndustry sources put down the main reason for growth as high competitive activity! 5ertainly< until 5oco65ola entered the scene< the business was growing at a fairly pace of -M! /he increase in the number of cases reflects higher demand< but does not ?uite accurately measure the fact that so many more liters of the fi==y stuff is being sold< but bottle si=es too been appeared from ,-(ml to )((ml! With growth rates =ooming into double digits< bottlers have been propelled into e8panding capacities! With their big /ime pans< the 1$5s have changed the face of this business< long dominated by small time business men! /he 5ola makers with their ambitious targets and in order to reach them have to build capacity< infrastructure
21

and also make their bottles more available and affordable! /here are )< ((<((( retailers stocking soft drinks in #ndia! Also soft drinks in #ndia! Also soft drinks which retail any where between "s! ;!(( and '(!(( is e8pensive when measured against purchasing power! According to our study< it takes an #ndian '!- hours of work to be able buy a bottle< in other countries the norm being only - minutes! As the soft drink manufactures concur their strategies< keeping an eye on each other< the clear winner of the soft drinks is so fat the consumer!

epsi Foods & . 4td!
epsi< which was in #ndia from ';-*6*'< had left this country< as its products were not acceptable to the #ndian ublic! 7ut in ';;( it entered the #ndian 1arket in collaboration with unjab Agro #ndustries 5orporation & A#5. and

Volta9s! epsi produces 5ola< 1ango< 2range< 5lear 4emon and 5loudy 4emon flavors unde the brand names of 4ahar epsi! Slice< 1iranda< 4ehar D :up and teem respectively! "ecently epsi 5ompany has ac?uired the 0ukes 5ompany of 7ombay!

5oca: 5ola arleN
5oca : 5ola >8port 5orporation which left #ndia in ';DD has re6entered #ndian soft drink! #t has tied up with the arle group which owns /humpsup< 4imca< 1a=a< 5itra and Fold : Spot! 5oca :5ola along with its original brands 5oke< Fanta is maintaining even the earle9s brands of soft drinks!

5adbury SchweppesN

22

Schweppes has launched ) brands in &';;-. four months and in 0elhi< their 2range 5rush has picked up a )(M market share against 5oke9s Fanta< epsi and 1iranda! /he other two brands at 5anada 7ray and Schweppes /onic water Sunkist! /his 7ritish beverage gains also has stake in 0r! epper9s!

7ackgroundN
$on6alcoholic soft drink beverage market can be divided into fruit drinks and soft drinks! Soft drinks can be further divided into carbonated and non : carbonated drinks! 5ola< 4emon and 2ranges are carbonated drinks! Whole

1ango drinks come under non6carbonated category! /he soft drinks market till early ';;(9s was in hands of domestic players like 5ampa< /humps6up< 4imca etc!< but with opening up of economy and coming of 1$5 players epsi and 5oke the market has come totally under their control! While World wide 5oke is the leader in carbonated drinks market in #ndia< it is epsi which scores over coke but this difference is fast decreasing &5ourtesy huge Ad6spending by both the players.! epsi entered #ndian ';;)! epsi has been targeting in products towards youth and it has struck right chord with the market and the sales have been doing well by sticking to this youth band wagon! 5oke on the other hand struggled initially in establishing it self in the market! #n a span of D years of its operations in the country it changed its 5>2 four times but finally they seen to have started understanding the pulse of #ndian consumption! Fountains also dispense them in disposable containers!

SegmentationN

23

/he soft drink market can be segmented as the basis of place of consumption on the basis of type of product! /he segmentation as the basis of place of consumption divides the market into two partsN • 2n6premise +(M of the consumption of soft drinks is on premise i!e!< restaurants< railway stations< cinema etc!< • At home the rest ,(M of the market compromises of the soft drink purchased for consumption at home! • /he market channels can be segmented on the basis of types of products into cola products a non : cola products! • 5ola products account for nearly *'6*,M of the total soft drinks market! /he brands that fall in this category are epsi< 5oca65ola< /humps :up< 0iet 5oke< 0iet epsi etc! • $on65ola segment which constitutes )*M can be divided into K categories based on the types of flavors available namely! 2range 5lear 4ime
•

5loudy 4ime 1ango

Orange N Flavor based soft drinks constitute around 'DM of the market!
/he segment is largely dominated by national brands like Fanta of 5oca6 5ola and 1iranda 2range of epsi co< which collectively from '-M of the market rest of the market is in hands of smaller brands like O5rush9 &earlier of 5adbury Schweppes and now of 5oca65ola.< OFold Spot9 etc!!

24

•

Cloudy Lime : Flavor constitutes 'KM of the market and is largely
dominated by 4imca of 5oca65ola and 1iranda 4emon of epsi 5o! 4imca is the market leader with around D(6D-M of the market followed by 1iranda 4emon!

•

Clear Lime: /he segment of the market witnessed good growth initially
with all the players launching their brands available in this segment are D6 up of epsi< Sprite of 5oca65ola and 5anada 0ry &earlier of 5adbury

Schweppes and now of 5oca65ola.! /he segment constitutes )M of the /otal soft drinks market!
•

Mango : /his flavor segment constitutes ,M of the total soft drinks
market and it directly competes with mango based fruit drinks like Frooti! /he leading brands in this segment are 1aa=a of 5oca65ola< 1ango &earlier of 0ukes now epsi 5o!. and slice of epsi 5o! /here is very thin line of difference between the 5lear and 5loudy 4ime! /he most obvious feature are that 5lear 4ime has to be bottled in green bottles as sunlight harms the drink and changes the taste! /here are some small local brands at city or regional levels! 1ost of terse are either merging with the two big players! &5oca65ola< epsi. or they command a very small : less than )M of the total market in their respective areas!

1arket si=e and FrowthN
Soft drink market si=e for F3 ,((( was around ,D( mn cases &*K+mn bottles.! /he market< which was witnessing -6*M growth in the early ;(9s and even slowed down growth at around ,6)M in late +(9s!
25

resently the market growth has slowed down with growth rate of D6+M per annum compared to be D((( mn bottles! /he market growth of ,,M till last year has got stifled due to high e8cise duty of K(M leading to higher price f the end product!

1arket 5haracteristicsN
/he soft drink market is highly skewed in terms of place of consumption< in terms of regional distribution of soft drink flavors as well as in terms of SL%S! While +(M of the consumption in impulse based outside home ,(M come from consumption at home! /his tend is slowly changing with increase in occasion bed sales! 5hanging life style< increasing urbani=ation and impact of liberali=ation has slowly and gradually started moving the market from impulse to occasion led and has refrigeration led consumption! /he market preferences are highly regionally based! While cool drinks have main markets in metro cities and northern states of % < unjab< @aryana etc!< 2range flavored drinks are popular in southern states! Sodas too are sold largely in southern states besides sales through bars! Western markets have preference towards mango flavored drinks! 0iet coke presently constitutes just (!DM of the total carbonated beverage market! #n terms of SL%S the market is skewed towards )((ml which constitutes around +(6+-M of the market< rest is the form of other pack si=es< but with increasing occasion led and home refrigeration led consumption the sales of bigger SL%S like more than # ''r! ack si=es has increased these has led to increase in contribution from >/ bottle sales to
26

'-M of the total turnover in F322< and most of these >/ bottle sales< upto D-M are in urban areas! Another skew ness is in terms of the year when the consumption takes places! 1ost of the sales of soft drinks take place during summers while just -6*M of total sales take place in winners! #n summers the high season lasts D(6D- days which contributes more than -(M of the total yearly sales! /he distribution network of 5oca65ola had *!- laks outlets across the country : in F3(( which the company is planning to increase to + lakhs by F3('! 2n the other hand epsi 5o9s distribution network had * lakh outlets across the country during F3(( which it is planning to increase to D!- lakh by F3('!

1ajor players and market sharesN
/he soft drink market in #ndia is dominated by the two global majors epsi and 5oca65ola! 5oca65ola< which had winded up its #ndia operations during the introduction of the F>"A regime< reentered #ndia '* years later in ';;)! 5oca65ola ac?uired major chunk of the soft drink marked by buying out local brands /humps6up< 4imca and Fold soft from arle beverages! 5oca65ola had also ac?uired 5adbury Schweppes soft drinks brands crush< 5anada 0ry and sport cola in early ';;; and now recently in 2ct ,((( it ac?uired distribution rights of these brands from #F7 Agro limited! epsi although started a couple of years before 5oca65ola in ';;' has a lower market share today! #t has bought over 1umbai based 0uke9s
27

range of soft drink brands! 7oth the 5ola manufacturing up with their own market share figures and claim to have increased their share! "ecently in August ;; epsi claimed to have increased its market share for first give months of calendar year ,(((< to K;M from earlier levels of KD!)M! While coke claims to have increased it9s in the market to -DM in the same period from --M in the corresponding period last year! 5oke figures are based on 2"F9s date while that of epsi are based on #1"F data!

1arket Share &in M.
7rand epsi 5oca65ola 1s &2rg.M K'M -DM #1"7 K;M K+M

Advantages and 4imitations of Franchise $etworkN AdvantagesN • • • • "educed investment levels in manufacturing e?uipments! Savings on management time! "egular supply of components! "educed interfacing and dealing with labour

4imitationsN
• 4arge volumes
28

• •

Financial Support Pualify

1anufacturing rocessN
Soft drinks may be carbonated or non : carbonated! For carbonated drinks carbonation forms a critical part of the process! #n carbonation carbon dio8ide is dissolved in the water< which is used in manufacturing the drink< ! $ormally the ingredients in soft drinks are as follows : acidulate &crifnic< malic or phosphoric acid.< sweetener< flavour and preservative!

"etailer9s erceptionN
A survey was conducted to study the retailer9s view of the present market< future trend and the consumer behaviour patterns! /he bindings of the survey are as followsN Q "etailers stated that the consumers are loyal to the particular segment of the soft drink i!e! 5ola< 2range or 4emon! 7ut as far the loyalty for the brands in each segment is concerned< it is not very significant! Q K)M of the retailers surveyed told that in soft drinks advertising is the key component in drinking sales! While ),M stated promotional schemes and ,(M brand loyalty as the reasons! Q As consumers are not brand loyal where the purchase of soft drinks is concerned< the retailer push becomes a critical issue! /hey usually sell the product in which they et the ma8imum benefit! For this< the companies try to offer them higher margins!

29

Q While distributors get margin of "s! +6; per crate &' crate R ,K bottles. at )6KM 1" < retailers are given a margin of '(6',M of 1" ! /he retailers not happy with this as the cost of refrigerations is very : coolers is very high for soft drinks< to over come this problem the companies visi6coolers to their main retailer!

epsi AdvertisingN
epsi< like many other soft drinks< began as a series of e8periments at a drugstore soda fountain! 7y ';;+< pharmacist 5aleb 7radham had decided on the best of his concoctions< and dubbed his potion< “ epsi65ola!” /he company grew steadily< if not always smoothly &the firm went belly :up in ';,) and again in ';)'.< hanging hands< merging< and beng bought out! 7y the ';K(s< epsi was a going< national concern &and a patriotic one< using red< white< and blue for its bottle cap colors.! #n the early ';-(s< the company switched its print ad focus from one using black and white cartoons to a sophisticated campaign using many of the best young &though often similar in style. illustrators! #t9s credit to this campaign and its artists that the ads from this era still have a fresh< up6to6date appeal and look! 1ost of these ads could be successfully republished by epsi today!

Note : As usual for all scans found on the American Art Archives site< these are
copyright American Art Archives and may not be used for any other purpose without written permission from American Art Archives! /hese scans are not in the public domain!

Advertising:
/he main motive behind the purpose of advertisement of the bottle of > S# 5ollege t! 4td! #s to maintain the brand loyalty through recalling the

30

memory of the user9s soft drinks as to attract the potential consumer who consumes a soft drink on the spur of the movement! All the bottles of #ndia has to advertise the product epsi< Dup< 1iranda< orange< 1iranda 4emon< Slice< guidance of the epsi 5o! epsi lemon and teem as per the norms and

vt! 4td! 2f #ndia! 2n the national basis of epsi 5o!

vt! 4td! 0oes the advertisement on e8tensive basis using of the media< the media e8tensively used are newspapers< short add9s films< "adio< /V and now #$/>"$>/ also! /he main slogan use by > S# 5ola roduct is 3aha 0ill 1anage 1ore as haaB! /he main modelers in this advertisement is the best Sharukh Lhan< Larina Lapoor and Adman Sami! /he > S# 52! also used 5inema Slides< 5utouts<

@anners< /angulars! Stickers< Wall aintings< Flow Sign 7oards! Visi 5oolers< Fridge< Fridge has been a major part of the company!

31

CHAPTER-III
COMPANY PROFILE

32

COMPANY PROFILE
I2+.#;<1+,#2$
5aleb braham< a pharmacist and drugstore owner in $ew bern< $orth

carolina< introduced a beverage in the year '+;+ known around the world as > S#6 524A which as a long and rich history! /he customer named it as “7rad9s 0rink”! #n ';(, 5aleb launched epsi6cola company and applied to %S patent office for a

trade mark! /he business began to grow < and on '* th june< ';()< “ epsi6cola ” was officially registered with %S patent office ! /hat year 5aleb sold D<;*+ gallons of syrup< using the theme line “>8hilarating #nvigorating< Aids 0igestion”!

#n ';(- a new logo appears the first change from the original created in '+;+! #n ';(* the logo is registered and new slogan added “ /he original ure Food 0rink” !

#n ';(;

a

famous

racing car

driver 7arney 2ld6field was the first celebrity

endorser for the ';*K!

epsi! epsi has introduced a new product named 0iet6 epsi in the year

epsi was lunched one of the most ambitious entertainment sites on the World Wide Web in the year ';;* and become one of the most launched and copied sites in this new medium< firmly establishing epsi presence on the internet!

33

PEPSI AT INTERNATIONAL LEVEL
epsi co the world leader in the convenient snacks< foods and beverages with the revenue of more than S ); billion and '< +-<((( employees! /he company

consists of epsico American Foods & AF.< epsico American 7everages & A7.< and epsi5o international & #.!

PAF$ PEPSICO AMERICAN FOODS!
/he epsi5o American Foods includes Frito6lays $orth America< ?uakes snack business including

food $orth America and all 4atin American food and sabritas and gamesa business in 1e8ico!

PAB$ PEPSICO "E#ERA$ES!
/he epsi5o 7everages includes $orth American and all 4atin American beverages business!

PI$ THE PEPSICO INTERNATIONAL!
/he epsi5o #nternational includes business in the %nited Lingdom< >urope< Asia< and 1iddle >ast J Africa! /he epsi5o brand available is nearly ,(( countries and generates sales at the retail level of more than S ;+ billion! /he epsi is the ) rd largest beverage in the world< the first and second place are occupied by $estle and Lraft Foods!

34

HEAD >UARTERS
/he epsi5o head ?uarters is located in $ew 3ork< appro8imately K- minutes

from the $ew 3ork city< %SA!

MISSION$
/o convenient to be foods the world premier consumer products company focused on

and

beverages! /hey produce healthy and financial rewards

investors! /hey

also provide opportunities for the growth and enrichment to the

employees< business partners and the community which they operate!

V,/,#2$
/he company vision is to put action through the program and society and a

focus on the environmental

stewardship activities to benefit

commitment to build share holders value by making company!

epsi5o a truly sustainable

CEO$
/he former 5>2 of epsi is S/>>V>!S!">#1%$0 up to August ,((*< $ew 3ork %SA! /he ,((*! present 5>2 of epsi5o is #$0"A $223>< from September

35

PEPSICO IN INDIA
epsi5o entered in #ndia in ';+; in the span of a little more than a decade< has grown to become country9s largest selling soft drinks company! /he company heavily invested in #ndia making one of the largest multinational investors! /he group has

built and e8pansive beverage< snack food and e8ports business!

IN INDIA PEPSI PERFORMS IT OPERATIONS IN T:O %. COBO(COMPANY O%NED "OTTLES OR$ANISATIONS & '. FOBO(FRANCHISED O%NED "OTTLE OR$ANISATONS&
/hey are ); bottling plants in #ndia< out of which 'D are company owned and ,, are franchisee owned!

CO"O: COMPANY O%NED "OTELLIN$ OR$ANI'ATION!
#n this the company directly perform its operations in #ndia and supply the products directly to the retailers! /he head?uarters is located at Furagoan< @arayana!

CEO:
SA$E>>V 5@A00A &1%F161A"L>/ %$#/ F>$>"A4 1A$AF>".

SALESDIRECTOR:
/A$ 1A3A VA/S

FO"O:

?FRANCHISED O%END "OTTLIN$ OR$ANI'ATION!
36

#n #ndia epsi was franchised by the 4 ,0<., !.#<0 #7 ,2;</+.,"/! /he largest manufacturer of distributor of epsi products in glass ApetA/etra with a direct and in direct employment over '-<((( than -(( distributors! /he group manufactures and markets carbonated and non : carbonated Soft drinks and mineral water under epsi brands! /he various flavors and sub6 brands are follows! CSD (CARBONATED SOFT DRINKS)$ 12%$/A#$ 0>W D6% > S# 0#>/ > S# >V>"V>SS S20A 1#"#$0A 4>12$ 1#"#$0A 4>12$ 2"A$F> people! 1anaging distributor network of more

PURIFIED DRINKING :ATER$
A?uafina

4UICES$
/ropicana< Slice Fattrodes

SNACKS$
37

Frito lays< kurkure< chitoos!

H#2#./ #7 4 ,0<., B"@". !"/$
5@A#"1A$ 1!0! 5>2 66 Sh! 5k Eaipuria 66 "uchrians Eaipuria 66 Sh! 1adhu taneja

H" ;-A< .+"./$
/he head ?uarters of Eaipuria 7everages is located at DELHI !

V,/,#2$
/o achieve '*-( crore turnover with pat of '(M by ,('( and lets grow together!

M,//,#2$
 Superior roducts!  @igh Standards of erformance!  0istinctive 5ompetitive Strengths!  @igh #ntegrity of its works!  Food romotional support!

A15,"@"="2+/$
 1ost admired corporation in the world by fortune maga=ine ';+;<;(<;'<;,!  >ntering in #ndia ';;(!

38

 #ntroducing of A?uafina water bottle in the year ';;K!  Starting of epsi5o online in the year ';;*!  5elebrating a '((th anniversary with first world wide bottle conference in the year ';;+!  'st time of introducing , lts< plastic bottles with bottle grip handle!

PEPSI PHRASES$
/he epsi marketing phrase has also changed many times! /he marketing folks at the company felt to invent new phrases whenever they thought the public would be receptive to the change!

';);N H/wice as 1uch for a $ickelH ';-(N H1ore 7ounce to the 2unceH ';-(N HAny Weather is epsi WeatherH ';-DN H/he 4ight "efreshmentH ';-+N H7e Sociable< @ave a epsiH ';*'N H$ow #tGs epsi for /hose Who /hink 3oungH ';*)N H5ome Alive< 3ouGre in the epsi FenerationH! ';*DN H&/aste that beats the others cold. epsi ours #t 2nH! ';*;N H3ouGve Fot a 4ot to 4ive< and epsiGs Fot a 4ot to FiveH ';D-N H@ave a epsi 0ayH
39

';DDN HEoin the epsi eople &Feeling Free.H ';+(N H5atch /hat epsi SpiritH 0avid 4ucas composer ';+'N H epsiGs got your taste for lifeH ';+)N H epsi $owT /ake the 5hallengeTH ';+KN H epsi! /he 5hoice of a $ew FenerationH &5ommercial with featuring epsi version of 7illie Eean. ';+*N HWeGve got the /asteH &5ommercial with /ina /urner. ';;(N H3ou got the right one 7aby %@ @%@H & sung by "ay 5harles . ';;'N HFotta @ave #tHAH5hill 2utH ';;,N H7e 3oung< @ave Fun< 0rink epsiH ';;-N H$othing >lse is a epsiH ';;*N H epsiN /here9s nothing official about itH &0uring the Wills World 5up &5ricket. held in #ndiaA akistanASrilanka. ';;DN HFenerationH!H With /he Spice Firls” ';;+N H3eh 0il 1ange 1oreH&#n @indi meaning H1y heart wants moreH. ';;;N HAsk for 1oreHAH/he Eoy of epsi65olaH &5ommercial with 7ritney 1ichael Eackson<

SpearsA5ommercial with 1ary E! 7lige. ,(()N H#tGs the 5olaHAH0are for 1oreH ,((-N HWild /hingHAHAsk For 1oreH &With Eennifer 4ope= J 7eyoncU Lnowles.

40

,((*N HWhy 3ou 0ogginG 1eHAH/aste the one thatGs forever youngH 5ommercial featuring 1ary E! 7lige ,((DN H1ore @appyHAH/aste the one thatGs forever youngH &1ichael Ale8ander. ,((+N H3eh hai 3oungistaan 1eri EaanTH &#ndia. ,((+N H epsi StuffH Super 7owl 5ommercial &Eustin /imberlake.

M .8"+ S5 ."$
/he below table shows the market share of epsi in #ndia< in both 5obo< Fobo! COBO KDM K-M -(M 'D FOBO -)M --M -(M ,,

1arket Area Volume of 5# $o!2f! lants

PROFILE OF PEARL BOTELLING PVT.LTD AT VISAKHAPATNAM
Lrishna 1ohan 7everages 4imited &L!1!7!5. was incorporated in ';+, at 1adhurawada in Visakhapatnam district of Andhra radesh for the purpose of

manufacturing soft drinks! /he company had started commercial production for 5amp6 5ola roducts! #t produces 5ola< 2range and 4emon flavors under the brands of /hrill< "ush and Spirit! #t also produced 1c0owell Soda and 7agpiper Soda! #t produces these drinks under franchise agreements< but the company could not e8ist in the market due to stiff competition from arle products! #n February ';;, the company signed to manufacture and market epsi product under franchise agreements! Franchise is contrast which gives to company the right to do the business under the name and image principals! According to this agreement< L!1!7!5 has been giant9s consent!
41



/o manufacture soft drinks using Supplied by epsi Foods!

the 5oncentrate

 

/o sell the soft drinks at prices fi8ed by

epsi!

/o advertise and market within specified areas for epsi roducts!

From April ,)"0< L!1!7!5! Started distributing the stocks received from 5uttack lant< 5ommercial production started in L!1!7!5! from Eune ';;, onwards! #nitially four brands vi=! epsi< J D6up< 1irinda < and >!V! soda were bottled

and distributed where as Slice was supplied by 5uttack plant! #n 1ay ';;)< a cloudy lemon flavor called /eem was introduced which was not very well received by consumers because of the well established “4imca”! #n April ';;+< a new cloudy lemon flavor “1#"#$0A 4>12$ ” was introduced after discontinuing /eam!

D"/1.,0+,#2 2; L <215 #7 0.#;<1+/
7"A$0 $A1> epsi 1irinda D6up 1irinda 4ime Soda F4AV2%" 5ola 2range 5lear 4emon 5loudy 4emon Soda 0A/> April ';;, April ';;, April ';;, April ';;, April ';;,

/he company distributes its products in five districts! /hey areN  Visakhapatnam  Srikakulam  Vijianagaram
42

 >ast Fodavari  West Fodavari

FINANCIAL STRUCTUREN
Any company to start and operate its business has to invest its capital in fi8ed assets and floating assets and also in meeting the daily re?uirements of the company! @owever< depending on the nature of the business and the product being offered by the company the ratio of the investment of capital in fi8ed and floating assets differ!

PLANT LAY-OUT$
/he lay6out of the bottling plant of epsi confirms to the products on lines from Fermany< which

lay6out! /he machines and e?uipment have been imported products the best

capital investment in the World! /he machinery and all the

e?uipments is arranged according to the se?uence of operations< the machines and workers are speciali=ed in drink industry! /hey are speciali=ed in operations such as the syrup< clearing the bottles< filling the bottles< creating and sealing the bottles with crown! All these operations are carried on a continuous movement!

THE REASONS FOR CHOOSING THE PRODUCT LAY-OUT ARE$
 /here is continuous supply of material!  /he brands are all standardi=ed products!  /he demand for products brands are reasonable stable! ! 0ue to above reasons the product lay6out offers certain advantages! /he

production cycle is speedened up! Since the company follows a continuous movement< the cost of material handling goes low! /he total floor space re?uired by the machine is less than for other types of plant lay6outs!
43

PLANT CAPACITY$

/he company installed latest up to automatic plant confirming to plant lay6out! /he capacity of the plant is ,K((( bottles per hour i!e!< at the speed on the K(( 7! !1! implying K(( bottles per minute! #n the months from 1arch to Eune< the plant is used to its full capacity by running their shifts every day! >ach shift consists of + hours! So< during the summer season the plant is run round the clock< i!e! ,K hours! /his is because the demand reaches its peak in its summer months! /he company has to produce enough bottles of soft drinks at a speed to keep in pace with the disappearance of soft drinks from the shelves of the retailers!

PRODUCTION SCHEDULE$

/he production schedule is fi8ed by taking into consideration the present or current market demand< the availability of empty bottles and also the inventory position of differ flavors! /he production schedule for each brand is fi8ed daily< filling the bottles of each brand and flavor! /his has an advantage in that the branded products can be manufactured once at a time! /he glass bottles used for filling soft drinks are of the volumes of

containing )((ml of soft drinks! /here are also bottles of -(( ml capacities to be filled soft drinks!

44

>UALITY CONTROL$
7 4 takes great care to maintain the ?ualityV control of the products in their

factory! /he bottles are visually e8amined for impurities continuously< as the bottles move out! Samples are checked every ten minutes of production time by the chemist for its ?uality and hygiene condition! /he chemical analysis is also made for flavors< gas contents and sugar percentages! /he appearance< smell and taste of the products are also checked! #f any defects are noticed the production is suspended and the connecting measures are taken so as to set right the bottling process irregularities< further samples from each batch are dispatched to the affiliated parent agency company in each week for ?uality check up! 1oreover< agency of the company also lifts sample from the market at random for ?uality checkup at any to make sure that the ?uality is maintained to the e8act standard of the parent company! At the end of the production schedule< daily all the e?uipment< plant floor and wet patches are cleaned with bleaching power of some other solution< the standards of hygiene maintained inside the production shops are commendable!

SYRUP MAKING$
#n this process the syrup of a particular is prepared by heating sugar with activated carbon power and filter aid &@yflocessuper cell. in treatment tank for a specified time and up to a colors< odour and some 2rganic impurities are removed from sugar syrup! /his treated syrup then passes through filter press< fitted with filter papers and heat e8changers and clear syrup is collected in the syrup making tank< the essence of particular product will be added for which a re?uired amount sugar is taken for treatment! Sugar syrup and essence are
45

particular temperature! 0uring the treatment most of the

mi8ed in the tank with the help of

mechanical

stirrer and eventually the

flavor syrup is ready to be used in the end use product!

:ATER TREATMENT$
/his is the second in the process of soft drink manufacture! Water is the basic ingredient in the soft drink< which comprises up to ;(M of the ?uality! @ence< the ?uality of water is brought to treatment tank and then water treatment chemicals such as hydrated lime< bleaching powdered Ferro sulphate are added to the tank and mi8 thoroughly with the help of mechanical stirrer!

THE REASONSFOR :ATER TREATMENT IS$
 #t removes hardness and converts the water into soft water!  #t frees the water from micro organisms!  "educes the alkalinity to a re?uired level!  "emoves suspended matter in water! /his treated water passes though the specially designed filtration plant containing chemical such activated carbon &granular. and finally the manufacturer will get the water suitable for soft drink bottling! For maintaining e?uipments in hygiene conditions soda bicarbonate is used!

BOTTLING$
#n this process both the concentrate and the purified water are mi8ed together along with carbon dio8ide gas and then bottled! #n soft drinks field< only reusable glass bottles sparkling clean and they are sterili=ed before the beverage is filled! For this purpose the company makes use of machine known as O7ottle Washer9! For cleaning of bottles

46

washing chemicals

such as caustic soda and tri6sodium phosphate are used! #n the the dirty bottles are fed and the passing through various designed

bottle washing system< in one end of washer bottles are washed automatically while

chambers containing chemical solutions at different temperatures and concentration! @ot water is used for cleaning the bottles! /he bottles< after sterili=ation are collected at the other end of the washer! /hey are then sending towards OFiller9 on conveyor belts! 7efore the beverage reaches the filling machine fit is saturated with carbon dio8ide gas in 5arbonated after being chilled! /his carbon dio8ide gas gives OFi==9 to the soft drinks and along side prolarges the shelf life of the products! /he bottles then are moved on the conveyor belts to the filling machines where the beverage is filled under pressure and bottles are sent to the crowner where sealing is done with the help of crowns! /he crowns are used to retain the carbonation< flavors as well as to protect the products from spoilage and contamination!

CRATING$
/he bottles collected from conveyor belts area placed manually into plastic crakes! >ach plastic case has capacity of ,K bottles! /hese crakes protect the bottles from breakage and for easy handling of bottles! /hese crakes are put on specially designed vans for carrying bottles and are sent to various consumption points!

PRODUCTS$
/he products being offered by pearl 7everages in mainly si8 flavors namely cola< lemon clear< lemon cloudy< orange< mango< and soda! earl beverages have bottling facilities for other brands!

47

/@> "20%5/S A"> AS F2442WSN
epsi 1irinda orange 1irinda lemon Dup 1ountain dew Slice >verest soda 0iet epsi A?uafina water

PRODUCT PROFILE$
/he products manufacture by pearl bottling private limited in the range as it is not independent to diversify its products when re?uired! /his is because it is a unit of epsi food private limited< which supplies the concentrates for different brands of soft drinks!

P"0/,$
#t is the leading and most selling brand of the company! #t contains cola flavor and competing with coca cola and thumbs up!

C#=0#/,+,#2$
Sugar 5alA'((ml 5af & @ 1. ''M KKM ''M ,!KM
48

4ead

(!'M

MIRINDA ORANGE
#t is a second most selling brand of the company! #t contains orange flavor and competing with Fanta in its segment!

C#=0#/,+,#2$
Sugar 5alA'((ml 5af & @ 4ead 1. 'KM -*M nil ,!+M (!'M

MIRINDA LEMON
#t is the third most selling brand of the company it contains cloudy lemon flavor and competing with limca in its segment!

C#=0#/,+,#2$
Sugar 5alA'((ml 5af & @ 4ead 1. ',M K+M nil ,!-M nil

B<0$
#t is another brand of the company which contains pure lemon flavor and competing with spirit in its segment!

C#=0#/,+,#2$
Sugar ')M
49

5alA'((ml 5af & @ 4ead 1.

-,M nil )!)M nil

SLICE
#t is also a well selling brand of the company< which contains pure mango flavor! #t is competing with maa=a in its segmentC it does not contain any carbonates!

SODA EVERESS
#t is pure soda produced by the same company competing With coca cola< kinley!

DISTRIBUTION SETUP$
earl bottling vt 4td! 5overs the five district of the territory through 'D,

distributors appointed at various locations for secondary distribution! !7! ! !< ">A5@>S /@> ,,(( 2%/4>/S 2F Vi=ag city trough its four

dealers! >ach dealer is assigned a specific area which is further divided! 0ealer is given to salesmen depending upon the potential of his route! Visakhapatnam is divide into four =ones and the market is survived byN  S!"! >nterprises  $!"! >nterprises  Surudhana sales  5!5! enterprises

50

/he total covered by the plant is put to around'-< ((( nos!< in the five districts in the Visakhapatnam city contributes to ,,(( out lets!

ORGANICATION STRUCTURE AND MANAGEMENT OF PEARL BOTELLING PRIVATE LIMITED$

/he

word “2rgani=ation” has

two

meanings! #n

the

first instance< it

signifies institution or functional group and the second meaning refers to the process of organi=ing the way of work which is arranged and allocated among the members of the organi=ation< so that the goal of the organi=ation can be achieved efficiently! /he organi=ation process involved the balancing of the companies on one hand changes on the other hand! 2rgani=ation structure gives stability and reliability to the action of its members! 2rgani=ation structure can be defined as the relationship e8isting among the various jobs and positions within an organi=ation an organi=ation structure specifies its division of work activities and shows how different functions or activities are linked /he following table shows the description of the employees along with the designation and also the number of employees!

S.NO.
' , ) K * D

D"/1.,0+,#2
Feneral 1anager &finance. 5ommercial 1anager 1arketing 0ept!1anager /erritory 0ept!1anager Administration roduction 1anager Asst! ersonal 1anager
51

N#. #7 "=0-#6""/
' ' ' K ' ' '

+ ; '( '' ', ') 'K ''* 'D '+ '; ,( ,' ,,

Store >8ecutive 5entral >8ecutives "oute Agents Sales /raining 5hemist Accountant Supervisors 5lerks 2perations >lectricians Fitters 5omputer cum /elephone operator Security Fuards

) ,-( ' ) + + '( ) , ', * ') )

2ffice boys Sweepers J@elpers

ORGANICATION CHART OF K.M.B.C.

1anaging 0irector

Factor 1anager

>8ecutive manager Feneral 1anager &Sales J 1arketing.
52

Finance 1anger

Sales Supervisor &0irect 1arket.

Sales Supervisor &0irect 1arket.

0irect cum Salesmen

0irect cum Salesmen

4oader

4oader

53

CHAPTERI#
THEORETICAL FRAME%OR(

54

THEORETICAL FRAME :ORK
INTRODUCTION$
Food marketing is no accident< but a result of careful planning and e8ecution !marketing practices are continually being refined and reformed in virtually all industries to increase the chances of success! 7ut marketing e8cellence is rare and difficult to achieve! 1arketing is both “art” and a “science” :there is a constant tension between the formulated side of marketing and the creative side!

IMPORTANCE OF MARKETING$
Financial success often depends on marketing ability! Finance< operations< accounting and other business functions will not really matter if there is not

sufficient demand for products and services so company can

make a profit! /here

must be a top line for there to be a bottom line! 1any companies have now crested a chief marketing officer< or 512< position to put marketing on a more e?ual footing with other c6level e8ecutives such as the chief e8ecutive officer &5>2.< and chief financial officer &5F2.! 1arketing is tricky< however< and it has6been the Achilles heel of many formerly prosperous companies! 4arge< well6known businesses such as sears< 4evi9s< general motors< Lodak< and Wero8 have confronted newly empowered customers and

new competitors< and have had to rethink their business models! >ven market leaders such as 1icrosoft< wall6mart< #ntel< and $ike recogni=e that they cannot afford to

rela8 !jack Welch< gee9s brilliant former 5>2< repeatedly warned his companyN “change or die”!

55

7ut making the right decisions is not always easy! 1arketing managers must make major decisions such as what features to design into a new product< what prices to offer customers< where to sell products and how much to spend on advertising or sales! /hey must also make more detailed decisions such as the e8act

Wording or color for new packaging! /he companies at greatest risk are those that fail to carefully monitor their customers and competitors and to continuously improve their value offerings! /hey take a short6term< sales6driven view of their business and ultimately< they fail to satisfy their stockholders their employees< their suppliers< and their channel partners! Skillful is a never ending pursuit!

THE SCOPE OF MARKETING$
/o prepare to be a marketer< you need to understand what marketing is< how it works< what is marketed< and who does the marketing!

:HAT IS MARKETING
1arketing deals with identifying and meeting human and social needs! 2ne of the shortest definitions of marketing is “meeting needs profitably”! When e7ay

recogni=ed that people were unable to locate some of the items they desired most and created an online auction clearinghouse or when #L>A noticed that people wanted good furniture at a substantially lower price and created knock down furniture<

they demonstrated marketing savvy and turned a private or social need into a profitable business opportunity! /he American 1arketing Association offers the following formal definitionN 1arketing is an organi=ational function and a set of processes for creating and for managing customers

<communicating and delivering value to customers

relationships in ways that benefit the organi=ation and its stake holders !5oping with
56

e8change process calls

for

a

considerable amount of work and still! 1arketing

management takes place when at least one party to a potential e8change thinks about the means of achieving desired responses from other parties! We see marketing management as the art and science of choosing target markets and getting< keeping< and growing customers through creating< delivering and communicating superior customer value! We can distinguish between a social and managerial defition of

marketing !A social defition shows the role of marketing plays in society! 2ne marketer said that marketing9s role is to “deliver a higher standard of living!” @ere is a social defition that serves our purpose marketing is a societal process by which individuals and groups obtain what they need and want through creating offering and freely

e8changing products and services of value with others! For a managerial defition marketing has often been described as “the art of sealing products”< but people are surprised when they hear theorist< puts it this wayN /here will always one can assume be need for some selling !7ut the aim of marketing so to make selling superflous!/he aim of marketing is to know and that the most important part of market management

understand the customer so well that the product or service fits him and sells itself! #deally marketing should result in a customer who is ready to buy! All that should be lay

needed then is to make the product or service available! When Sony designed its

station< when Fillette launched its mach### ra=or< and when /oyota introduced its 4e8us automobile< these manufactures were swamped with orders because they had designed the right product based on careful marketing homework !/he success of #ndicia the first indigenously designed car in #ndia by /ata 1otors is another case study! 7acked by strong consumer insight < the company designed a vehicle with larger luggage space and legroom and offered it at a price affordable to meet the typical
57

#ndian middle6class aspiration! /he company communicated indica9s value proportion of offering more space and legroom and offered it at a price affordable to meet the typical #ndian middle6class aspiration !/he company communicated #ndicas value proportion of offering more space through the advertisement tagline more car per car the subse?uent introduction of indigo and of marina e8panded the product range

the company! >ach of these introductions was backed my e8tensive market research!

E*CHANGE AND TRANSACTIONS$
A person can obtain a product in one of four ways! 2ne can self6produce the product or services when one hunts< fishes or gathers fruit! 2ne can product< as in a holdup use force to get a

or burglary! 2ne can beg as happens when a homeless

person asks for food Cor one can offer a product< a service or money in e8change for something he or she desires!

E*CHANGE$
which is the core concept of marketing is the process of obtaining a desired product from someone by offering something in return !for e8change potential to e8ist five conditions must be satisfiedN '! /here are at least two parties! ,! >ach party has something that might be value to the other party! )! >ach party is capable of communication an delivery! K! >ach party is free to accept or reject the e8change offer! -! >ach party believes it is appropriate or desirable to deal with the

58

2ther partyN
Whether e8change actually takes place depends on whether the two parties can agree on terms that will leave them both better off &or at least not worse off. than before! >8change is a value creating process because it normally leaves both parties better off! /wo parties are engaged in e8change if they are negotiating trying to arrive at mutually agreeable terms! When an agreement is reached< we say that a TRANSACTION takes place! A transaction is trade of values between two or more parties!

:HAT IS MARKETEDD $
1arketing people involved in marketing '( types of entitiesN goods< services<

e8periences< events< persons< places< properties< organi=ations< information< and ideas!

GOODS$
hysical goods constitute the bulk of most countries production and marketing effort! >ach yea < #ndian companies market cars < trucks< television sets< machine tools <

machines < industrial chemicals < watches < cosmetics and various other mainstays of modern economy! $ot only do companies market their goods< but thanks in part to the

internet< even individuals can effectively market goods!

SERVICES$
As economies advance< a growing production services! Services proportion the work of their activities is focused on

include

of airlines< hotels< car rental firms<

barbers and beauticians< maintenance and

repair people< as well as professionals

working within or for companies< such as accountants< bankers< lawyers< engineers< doctors< software programmers< and management consultants! 1any market offerings
59

consist of a variable mi8 of goods and services! At s fast6food restaurant< for more e8amples< the customers consume both a product and service!

EVENTS$
1arketers promote time based events< such as major trade shows< artistic

performances< and company anniversaries! Flobal sporting events such as the 2lympics or world cup are promoted aggressively to both companies and fans! /here is whole profession of meeting planners who work out the details of an event and make sure it comes off perfectly!

E*PERIENCES$
7y orchestrating several services and goods< firm can create< stage< and market e8periences! An amusement park or a water park represents e8periential marketingN customers< by taking different “rides” in the amusement park or the water park enjoy the thrill provided by these e8periences! So does “theme restaurant” that creates

the ambience of a village in "ajasthan or Fujarat

PERSONS$
5elebrity marketing is a major in business! /oday many film stars have agents< personal managers and use the services of the public relations agencies! 1any leading sports personalities use the services of professional sports marketing agencies to get

endorsement contracts and to advice them on personal brand building! 1anagement consultant tom peters< himself a master at self6branding< has advised each person to become a brand!

60

PLACES$
5ities< sates< regions< and whole nations compete actively to attract tourists< factories< company head?uarters< and new residents! development specialists< real lace marketers include economic

estate agents< commercial banks< local business to attract

associations< and advertising and public relations agencies! #n order

investments from domestic and international companies governments of various states in #ndia are competing with each other! Fovernment reprenstatives make a detailed presentation to the major investors to highlight the advantages that these companies will get on investing in their state!

PROPERTIES$
roperties are intangible rights of ownership of either property or financial property! roperties are bought and sold< and this re?uires marketing! "eal estate agents work for property owners or sellers or buy residential or commercial real estate! #nvestment companies and banks are involved in marketing individual investors! securities to both institutional and

ORGANISATIONS$
2rgani=ations actively work to build a strong< favorable< and uni?ue image in the minds of their publics! 5ompanies spend more money on the corporate identity ads! %niversities< museums< performing art organi=ations< and non6profits all use marketing to boost their public images and to compete for audiences and funds!

INFORMATION$
#nformation can be produced and marketed as a product! /his is essentially what

schools and universities produce and distribute at a price to parents< students< and communities! >ncyclopedias and most nonfiction books market information! /he
61

production< packaging< and distribution of information is one of our society9s major industries!

IDEAS$
>very market offering includes a basic idea! 5harles revson of "evlon bservedN “ the factory< we make cosmeticsC in the store we sell hope!” roducts in and

services

are platforms for delivering some idea or benefits!

:HO MARKETSD
A marketer is someone who seeks a response from another party< called the

prospect! #f two parties are seeking to sell something to each other< we call them both marketers! 1arketers are skilled in stimulating demand for a company9s products< but this is limited a view of the tasks they perform! Eust as production and logistics professionals are responsible for supply management< marketers are responsible for demand management! 1arketing managers seek to influence the level< trimming< and composition of demand to meet the origination9s objectives! >ight demand states are possibleN

NEGATIVE DEMAND$
5onsumers dislike the product and pay a price to avoid it!

NOE*ISTENT DEMAND$
5onsumers may be unaware or uninterested in the product!

LATENT DEMAND$
5onsumers may share a strong need that cannot be satisfied by an e8isting product!

DECLINING DEMAND$
62

5onsumers begin to buy the product less fre?uently or not at all!

IRREGULAR DEMAND$
5onsumer purchases vary on a seasonal< monthly< weekly< daily< or even hourly basis!

FULL DEMAND$
5onsumers are ade?uately buying all products put into the market place!

OVERFULL DEMAND$
1ore consumers would like to buy the product than can be satisfied!

UN:HOLESOME DEMAND$
5onsumers may attract to products that they have undesirable social conse?uences! /hus marketing is every where! Formally or informally< people and organi=ations engage in a vast number of activities that could be called marketing ! Food marketing has become an increasingly vital ingredient for business success! And marketing profoundly affects our day6to6day lives! @ence marketing is embedded in every thing we do!

RETAILERS PERCEPTION$
7efore going to the topic we just have brief idea about the retailers and perception!

RETAILNG$
"etailing includes all the activities involved in selling goods or services directly to final consumers for personal< nonbusiness use! A retailer or retail store enterprise wholesales volume comes primarily from retailing! is any business

63

Any organi=ation selling to final consumers6whether it is a manufacturer< wholesaler< or retailer is doing retailing! #t does not matter how the goods or services are sold or where they are sold!

TYPES OF RETAILRES$
5onsumers today can shop for goods and services in a wide variety of retail organi=ations! /here are store retailers< non store retailers< and retail organi=ations! erhaps the best

known type of retailers is the department store! "etail6store types pass through stages of growth and decline that can be described as the retail life cycle! A type emerges< enjoys a period of accelerated growth< reaches maturity< and then declines! #n the %!S! market< department stores took +( years to reach maturity in '( years! As the organi=ed retail sector is in a nascent state in #ndia< many retail formats< though e8isting in small numbers for decades< will take time to grow and mature! /he most important retail store types are described below!

THE MA4OR TYPE OF RETAIL STORES ARE AS FOLLO:S$
SPECIALTY STORE$
$arrow product line! Athlete9s foot< tall man< the limited< the boy shop!

DEPARTMENT STORE$
Several product lines! Sears< jc enney< $ordstrom< 7loomingdale9s!

SUPER MARKET$
4arge< low6cost< low margin< high6volume< self6services store designed to meet total needs for food and household products< Lroger< jewel< food emporium!

64

CONVENIENCE STORE$
Small store in residential area< often open ,KAD< limited line of high turnover convenience products plus takeout! D6eleven< circle k!

DISCOUNT STORE$
Standard or specialty merchandiseC low6price< low6margin< high6volume stores! Wall6

mart< Lmart< circuit city< crown book stores!

OFF-PRICE RETAILER$
4eftover goods< overruns< irregular merchandise sold at less than retail< factory

outlets< independent off6price retailers< Filenes9s basement< /!E!1a88< warehouse clubs sam9s clubs< price65ostco< 7E9s wholesale!

SUPER STORE$
@uge selling space< routinely purchased food and household items< plus services! 5ategory killer such as pet smart< staples< home depotC combination store such as jewel< 2scoC hyper market!

CATALOG SHO: ROOM$
7road selection of high6markup< fast6moving< brand6name goods sold by catalog at discount< customers pick up merchandise at the store! #nside edge ski and bike!

PERCEPTION$
A motivated person is ready to act! @ow the motivated person actually acts influenced by his or her view or perception of the situation! erception is the process by which an individual selects< organi=e and interprets information inputs to create a meaningful picture of the workld! erception depends not only on the physical stimuli< but also on the stimuli9s relation
65

to the surrounding field and on conditions within the indiidual!/he key point is that perception can very widely among individuals e8posed to the same reality! 2ne person might perceive a fast6talking salesperson as aggressive and insincereN another< as intelligent and helpful! >ach will respond differently to the salesperson! #n marketing< perceptions are more important than the reality< as it is perception that will affect consumer9s actual behavior! eople can emerge with different perception of the same objective because of three perceptual processesN selective attention< selective distortion< and selective retention!

SELECTIVE ATTENTION$
#t has been estimated that the average person may be e8posed to over -( to '(( ads or brand communications a day! 7ecause a person cannot possibly attend to all of these< most stimuli will be screened out :person called selective attention! Selective attention means that marketers have to work hard to attract consumers notice! /he real challenge is to e8plain which stimuli people will notice! @ere are some findings! '! eople are more likely to notice stimuli that relate to a current needN A person who is motivated to buy a computer will notice computer adsC he or she will be less likely to notive 0V0 ads! ,! eople are more likely to notice stimuli that they anticipateN 3ou are more likely to notice computers than radios in a computer store because you do not e8pect the store to carry radios! )! eople are more likely to notice stimuli whose deviations are large in relation to the

normal si=e of the stimuliN 3ou are more likely to notice and ad offering "s!'(( off the list price of a computer than one offering "s!- off!
66

Although people screen out much of the surroundings stimuli< they are influenced by une8pected stimuli< such as sudden offers in the mail< over the phone< or from a salesperson! 1arketers may attempt to promote their offers intrusively to bypass selective attention filters!

SELECTIVE DISTORTION$
>ven noticed stimuli do not always come across in the way the senders intended! Selective distortion is the tendency to interpret information in a way that will fit our preconceptions! 5onsumers will often distort information to be consistent to be consistent with prior brand and product beliefs! A stark demonstration of the power of consumer brand beliefs is the typical result of product sampling tests! #n “blind “taste< one group of consumers samples the product knowing which brand it is! #nvariably< difference arises in the opinions of the two groups despite the fact that the two groups are literally consuming e8actly the same product! Selective distortion ca n work to the advantage of marketers with strong brands when consumers distort neutral or ambiguous brand information to make it more positive !#n other words< beer may seem to taste better< a car may seem to drive more smoothly< the wait in a bank line may seem shorter< and so on< depending on the particular brands involved!

SELECTIVE RETENTION$
eople will fail to register much information to which they are e8posed in memory< but will tend to retain information that supports their attitudes and belifs!7ecause of selective retention< we are likely to remember good points about a product we like and forget good points about competing products!Selectve retention again works to the advantage of strong brands! #t also e8plains why marketers need to use repetition in sending message to their target market :to make sure their message is not overlooked!

67

REATAILER’S PERCEPTION$
A survey was conducted to study the retailer9s views of the present market< future trend and the consumer behavior patterns! /he bindings of the survey are as follows!  "etailers stated that the consumers are loyal to the particular segment of the soft drink i!e! 5ola< 2range or 4emon! 7ut as far the loyalty for the brands in each segment is concerned< it is not very significant!  K)Mof the retailers surveyed told that in soft drinks advertising is key component in drinking sales! While ),M stated promotional schemes and,(M brand loyalty as the reasons!  As consumers are not very loyal where the purchase of soft drinks is concerned< the retailer push becomes a critical issue! /hey usually sell the product in which they get the ma8imum benefit! For this< the companies try to offer them higher margins! While distributors get margin of "s +6; per crate &' crateR,K bottles. at )6KM 1" < retailers are given a margin of '(6',M of 1" ! /he retailers not happy with this as the cost of refrigeration is very high for soft drinks< to over come this problem the companies visi6 coolers schemes to their main retailers!

PROMOTIONAL ACTIVITIES$
/he promotional activity is an in direct mode of advertising! >very company will announces attraction promotional activities for consumers in order to attract !/his intense< they provide some promotions like his pricing< coupons< one plus one offers< contests offers< gifts etc!!! #n F15F sector promotional activities will play major role is creating demand and brand name for their products! /his is the reason why companies are investing huge on promotional activities by advertising with brand ambassadors!

68

CHAPTER-#
DATA ANALYSIS AND INTERPRETATION

69

DATA ANALYSIS AND INTERPRETATION

%). T E-" /5#9,2! +5" @ ,- E,-,+6 #7 /#7+ ;.,28 E. 2;/ + 2#. #7 #<+-"+/ ,2 @,F ! = .8"+. TABLE %$
S!$o ' , ) K 1arket lace epsi ) 5oke * * -

Fajuwaka 5hinawaltair Lancharapalem Eagadamba

CHART$

7 6 5 4 3 2 1 0 Gajuwaka Chinawaltair Kancharlapalem Jagadamba 3 5 6 5 6 5 5 5

Pep i C!ke

A2 -6/,/ G I2+".0."+ +,#2$

70

#n the table shows in Fajuwaka Average epsi J 5oke drinks available in markets is -J* respectively! #n chinawaltair Average respectively and Lancharapalem the epsi J 5oke brands availability is -J*

epsi J 5oke brands availability in market )J-

respectively and #n Eagadamba the both brands availability in market is e?ual i!e! -Jrespectively! /han this it is clear that coke brands are available mostly in the retailer shops that epsi become the retail shops are mostly attracted by the their travel schemes!

71

'). T E-" /5#9,2! / -"/ (2#. #7 E#++-"/ 0". ; 6) #7 ;,77"."2+ E. 2;/ + /"@". - #<+-"+/ ,2 @,F !. TABLE '$
roducts epsi 5oke Fajuwaka K-, 5hinawaltair K, -( Lancharapalem K+ KEagadamba K; -,

CHART$

Sales Per Day
60 50 40 30 20 10 0 Gajuwaka Chinawaltair Kancharlapalem Jagadamba Pep i C!ke 45 52 42 52

50

4"

45

4#

A2 -6/,/ G I2+".0."+ +,#2$
/he table shows the pepsi brands are less than the sales of coke! the average sales of both coke and pepsi in bottles per day is K;JK*! #n every market the coke brands are fully dominates the pepsi brands because of its ads< flavour brands name and consumer promotions!

72

3. T E-" /5#9,2! +5" 0 ++".2 #7 /".@,1" ."A<,."="2+. TABLE 3$
S!$o ' , ) K 1arket Fajuwaka 5hinawaltair Lancharapalem Eagadamba 0aily -) *( *-Alternate 0ay ,D ,,( )( Weekly twice ,( '''-

CHART
service requirement.
70 60 50 40 30 20 10 0 60 65 55 $ail% 27 20 25 15 30 20 15 15 &lternate'$a% (eekl%'twice

53

G aj uw ak a

C hi na w al

ap al em

ha r

A2 -6/,/ G I2+".0."+ +,#2$
/he above chart represents that -)M of retailers re?uired daily service ,-M re?uired alternate days for service and ')M retailers are re?uired service weekly twice! From the above table we can observe the owner of the outlets re?uiring daily service this is became most retailer order the content based on sales on the previous day
73

K

an c

Ja

ga da

m ba

ta ir

either less or more some of the them re?uire alternative day9s this is became in rural area the soft drink consumption is very low!

4). T E-" /5#9,2! +5" / +,/7 1+,#2 -"@"- 9,+5 +5" P"0/, /".@,1". TABLE 4$
S!$o ' , ) K 1arket Fajuwaka 5hinawaltair Lancharapalem Eagadamba Food '', K '( Satisfaction D+K ;( +7ad '( K * -

CHARTN
the satisfaction level with the Pepsi service
100 #0 "0 70 60 50 40 30 20 10 0 "4 #0 "5 G!!d )ati *acti!n 15 10 12 +ad 4 4 6 10 5

75

wa ka

ta ir

Ka nc ha ra pa le m

G aj u

na wa l

A2 -6/,/ G I2+".0."+ +,#2$
/he above table shows that '(!,-M of owners of outlets told the service of pepsi good and +)!-M of outlets is told pepsi service is satisfactory! 1ost of retailers feel felt the services offered by epsi is satisfactory i!e! &average. than coke< the retailer are not know the trade
74

Ch i

Ja ga d

am

ba

schemes offered by pepsi and also the supply of soft drinks when ever needed both in cash and credit!

5).T E-" /5#9,2! +5" ."+ ,-".’/ / +,/7 1+,#2 #77"."; E6 P"0/, G 1#8". TABLE 5$
S!$o ' , ) K 1arket Fajuwaka 5hinaWalthair Lancharapalem Eagadamba epsi *' *( *, D(

/ +# +5" +. ;" /15"="/

5oke ); K( )+ )(

CHART$

trade schemes offered by Pepsi & coke.
"0 70 60 50 40 30 20 10 0 Gajuwaka China(althair Kancharapalem Jagadamba 3# 61 60 40 62 70

3" 30

Pep i C!ke

A2 -6/,/ G I2+".0."+ +,#2$
/he above table shows that the *KM retailers are told epsi offered good trade schemes to them! in )*M retailers told coke offered good trade schemes!
75

1ost of the retailers have said that the trade schemes offered by the pepsi are good that than coke became it offers for buying a case of epsi!

6). T E-" /5#9,2! +5" / +,/7 1+,#2 #7 +5" ."+ ,-".’/ / +# +5" 1#2/<=". 0.#=#+,#2 #77"./ E6 P"0/, G 1#8". TABLE 6$
S! $o ' , ) K 1arket Fajuwaka 5hinaWaltair Lancharapalem Eagadamba epsi -D( 'D K+ 5oke K)( +) -,

CHART$
Consumer Promotion offered by Company

4"

55 Gajuwaka China'(altair Kancharapalem Jagadamba 70

17

A2 -6/,/ G I2+".0."+ +,#2$
/he above table shows the consumer promotions K)M retailer are told that pepsi are the best and -DM retailers told that the cola brand promotions are best!

76

1ost of the retailers said that consume promotion offered by pepsi is just low than the cola became it offers a low level of schemes than the cola!

B).T E-" /5#9,2! +5" "77"1+,@"2"// #2 / -"/ #7 /#7+ ;.,28/ E6 +5" T.V ;@".+,/"="2+/.
TABLE B$
S!$o ' , ) K 1arket Fajuwaka 5hinaWaltair Lancharapalem Eagadamba 3es ;; ;+ '(( ;D $o ' , ( )

CHART$

Effect of T. . advertisements on sales of soft drinks
100,5 100 ##,5 ## #",5 #" #7,5 #7 #6,5 #6 #5,5

0 1 2 3 100 ## #" #7 Gajuwaka China'(altair Kancharapalem Jagadamba -! .e

A2 -6/,/ G I2+".0."+ +,#2$

77

#n the above table the effected on /!V! ads on the sales of soft drinks shows high percent of people told that yes! /he effect of sales has been charged by the /!V! advertisements

). T E-" /5#9,2! +5" C#=0 .,/#2 #7 / -"/ ,2 +5" 6" . '((& 9,+5 +5" 0."@,#</ 6" .. TABLE )$
S!$o ' , ) K 1arket Fajuwaka 5hinaWaltair Lancharapalem Eagadamba Food ))K( )D 4ess ,)( ,)D Same K( )),*

CHART$
Comparison of sales in the year !""# with the previous year.
45 40 35 30 25 20 15 10 5 0 40 35 25 35 30 25 26 G!!d /e )ame 35 40 35 37 37

Gajuwaka

China(altair

Kancharapalem

Jagadamba

A2 -6/,/ G I2+".0."+ +,#2$
/he above table shows that in all four markets )DM of retailer saying that the sales are increases< ,;M of retailers are said that sales are decreased compared to last year and )KM owners have said that sales are same compared to previous years!

78

Some retailers feel that the sales is good in summer become of over heat when compared to previous year from retailers feels because of pesticides issue and from other business like coconut< badam milk and butter milk!

&) T E-" /5#9,2! +5" 0".1"2+ !" #7 / -"/ #7 H<,1" E /"; ;.,28/ + /"@". = .8"+ ." / ,2 @,F !. T E-" &$
M of juice based drink sales S!$o market ' , ) K CHART$ Fajuwaka 5hinaWaltair Lancharapalem Eagadamba ,,( ))D K-( ,)D K( )( K( ,* )(M ,(M '(M

percenta$e of sales of %uice based drinks
60 50 40 30 20 10 0 Gajuwaka 1 China(altair 2 Kancharapalem 3 Jagadamba 4 25 45 40 30 20 50 35 25 40 37 37 26 300 200 100

A2 -6/,/G ,2+".0."+ +,#2$
79

/he table shows the sales of juice based drinks in outlets of each market in vi=ag! /he total market ac?uire )(M share in sales of )(M range! And ac?uire K-M share in ,(M sales in overall market! And secure ,-M market share in sales of '(M juice based drinks!

80

%() T E-" /5#9,2! +5" 1#2;,+,#2 #7 P"0/, @,/,/ 1##-". / +# +5" /+#. !" #7 #+5". E. 2;/. TABLE %($
5oke X 2ther S!$o 1arket epsi only 7rands along with pepsi ' , ) K Fajuwaka 5hinaWaltaire Lancharapalem Eagadamba '; D ', +;' ;) ++

CHART$
condition of Pepsi visis cooler
100 #0 "0 70 60 50 40 30 20 10 0 "5 #1 #3 "" Pep i'!nl% C!ke'1'2ther'+rand al!ng'with'pep i

15

#

7

12

wa ka

Ka nc ha ra pa le m

na ( al ta ire

G aj u

A2 -6/,/ G I2+".0."+ +,#2$
#n the above table shows the epsi visis cooler usage percentage is lower than the coke X own cooler usage percentage! /he retailer have not been used the coolers is at cause of electricity bill and other causes!

Ch i

Ja ga d

am

ba

81

%%) T E-" /5#9,2! +5" ." /#2/ 7#. 8""0,2! #7 #+5". 0.#;<1+/ ,2 0"0/, @,/,/ 1##-".. TABLE %%$
S!$o ' , ) K 1arket Fajuwaka 5hinaWaltair Lancharapalem Eagadamba >lectricity M -,, -) KK $o own cooler M KD+ KD -*

CHART$
reasons for keepin$ of other products in pepsi visis cooler.
#0 "0 70 60 50 40 30 20 10 0 7" 55 45 22 53 47 44 56 3lectricit%'0 -!'!wn'c!!ler'0

wa ka

na ( al ta ir

Ka nc ha ra pa le m

G aj u

A2 -6/,/ G I2+".0."+ +,#2$
#n the above table the retailers has been keeping other products in pepsi visit for purpose of electricity bill is KKM and the purpose of no own cooler is -*M!

%'. T E-" /5#9,2! +5" 1#2/<=0+,#2 #7 /#7+ ;.,28/ E6 @ .,#</ -"@"-/ #7 1</+#="./ ,2 @,F ! = .8"+ ." /.
82

Ch i

Ja ga d

am

ba

TABLE %'$
S!$o! ' , ) K 1arket Fajuwaka 5hinaWaltair Lancharapalem Eagadamba 1ale ) '( ) , Female ( ( ( ( All eople ;D ;( +D ;+ 3outh ( ( '( '(

CHART$

Consumption of Soft drinks.
120 100 "0 60 40 20 0 4ale 5emale &ll'Pe!ple .!uth 3 10 3 2 0 0 0 0 0 0 10 10 #7 #0 "7

#" Gajuw aka China'(altair Kancharlapalem Jagadamba

A2 -6/,/ G I2+".0."+ +,#2$
/he above table shows that KM of male< female (M and ;)M of all the people and -M youth are consuming the soft drinks! From the above chart it is clear that the soft drinks is consumed by all generations of people became of its taste J flavor and strong ness and also it has become one of the daily food habits of the consumers!

%3. T E-" /5#9,2! +5" 0".1"2+ !" #7 </ !" #7 /#7+ ;.,28/ + /5#0 2; ."/,;"21" E6 1</+#="./.
83

TABLE %3$
S!$o! ' , ) K 1arket Fajuwaka 5hinaWaltair Lanchara alem Eagadamba At shop M ;) ;( ;-( At @ome M D '( -(

CHART$
Percenta$e of sales of drinks at shop and residence
120 100 "0 60 40 20 0 Gajuwaka China'(altair KancharaPalem Jagadamba #3 #0 #5 50 7 10 5 50 &t'6!me'0 &t' h!p'0

A2 -6/,/ G I2+".0."+ +,#2$
#n the above table the +,M of people use the soft drinks at shop and remaining people used in the residence!

84

%4) T E-" /5#9,2! +5" E<6,2! #7 /#7+ ;.,28/ / 0". +5" E /,/ #7 1 /5 G 1.";,+ #7 ."+ ,-".’/ ,2 @,F ! = .8"+. TABLE %4$
S!$o! ' , ) K 1arket Fajuwaka 5hinaWaltair Lancharapalem Eagadamba epsi 5ash '(( '(( '(( '(( epsi 5redit ( ( ( ( 5oke 5ash '(( '(( '(( '(( 5oke 5redit ( ( ( (

CHART$
&uy of Soft Drinks
120 100 "0 60 40 20 0 Pep i'Ca h Pep i'Credit C!ke'Ca h C!ke'Credit 0 0 0 0 0 0 0 0 Gajuw aka China'(altair Kancharapalem Jagadamba

100100 100100

100100 100100

A2 -6/,/ G I2+".0."+ +,#2$
#n the table shows the relations between the cash J credit of purchase of soft drinks! /he retailer buys mostly in the basis of cash to the both of 5ola J epsi drinks!

85

%5. T E-" /5#9,2! +5" +#0 E. 2;/ 0<.15 /"; E6 1#2/<="./ #7 P"0/, G 1#8" ,2 ! H<9 8 = .8"+. TABLE %5$
S!$o! ' , ) K 7rands epsi /hums6up D up 1irinda ercentage K+ ,D ''(

CHART$
Top brands Purchased by Consumer in 'a%uwaka

10 15 4" Pep i 7hum 8up 7'up 4irinda 27

A2 -6/,/ G I2+".0."+ +,#2$
/he table shows the top brands are sold in Fajuwaka market! #t shows the epsi is more sales in this market! #t haves K+M and 5ola brand thums6up is ,DM and epsi brands D6up '-M and 1irinda have '(M sales in this market!

86

%6. T E-" /5#9,2! +5" +#0 E. 2;/ 0<.15 /"; E6 1#2/<="./ #7 P"0/, G 1#8" ,2 15,2 9 -+ ,. = .8"+. TABLE %6$
S!$o! ' , ) K 7rands /hums6up epsi Sprite Slice ercentage K, ,D '* '-

CHART$
Top brands Purchased by Consumer in China (altair

15 16 42 7hum 8up Pep i )prite )lice 27

A2 -6/,/ G I2+".0."+ +,#2$
#n the table shows the cola brands thums6up is K,M sales and pepsi is having ,DM and sprite is '*M the fourth brands is slice having '-M sales margin in the 5hinaWaltair 1arket!

87

%B. T E-" /5#9,2! +5" +#0 E. 2;/ 0<.15 /"; E6 1#2/<="./ #7 P"0/, G 1#8" ,2 8 215. 0 -"= = .8"+. TABLE %B$
S!$o! ' , ) K 7rands /hums6up Fanta epsi 4imca ercentage -) '; 'D ''

CHART$
Top brands purchased by consumers in )ancharapalem

11 17 53 1# 7hum 8up 5anta Pep i /imca

A2 -6/,/ G I2+".0."+ +,#2$
#n Lancharapalem market the 'st rank of sales in soft drinks thums6up is -)M and fanta is having ';M and third brand sales of brands! epsi is having 'DM and fourth brand 4imca is ''M in the

%). T E-" /5#9,2! +5" +#0 E. 2;/ 0<.15 /"; E6 1#2/<="./ #7 P"0/, G 1#8" ,2 H ! ; =E = .8"+.
88

TABLE %)$
S!$o! ' , ) K 7rands /hums6up Dup Sprite 4imca ercentage K, )K ') ''

CHART$
Top brands purchased by Consumer in *a$adamba

11 13 42 7hum 8up 7up )prite /imca 34

A2 -6/,/ G I2+".0."+ +,#2$
#n the Eagadamba market the top brand sales is /hums6up in the percentage of K,M and the second brand Dup is )KM and sprite is ')M and final brand limca is having ''M market share!

89

CHAPTER#I
FINDIN$S AND SU$$ESTIONS

90

FINDINGS
Findings from the survey are as followsB
 $o of brands being sold in the market of coke are more than that of epsi!  "etailers re?uire daily services!  0istribution network are not responding in time with regard to retailer re?uirement!  /V Ad9s have so much to do with the increase in sales of epsi  0istribution system is not so very effective in making the products available at each and every nook and corner of the market!  /rade schemes are not e8plained to the retailers properly by the channel members!  5hannel members are not so kind in maintaining sound relationship with the retailers!  epsi is not providing retailers with credit facility!

 5onsumer promotions offered by coke is better than epsi!  eople are more preferring cola brands than non6cola brands! 0ue to health consciousness!  5onsumer promotions offered by 5oca 5ola 5ompany are better than 5ompany!  eople feel that /!V! advertisement definitely increase sales and show impact on consumers!  esticides issue is the main reason for decreasing of sales in ,((+! epsi

 Soft drinks are consumer by all categories of people!  Advertising through television is more liked by the people than through news papers!

91

 1ore percentage of the people like epsi advertisements than 5oke!  1ost people of the people like epsi advertisements than through news papers!  1ore percentage of the people like epsi advertisements than 5oke!  1ost people feel that present ads are good and very few people feel that they are bad!  1any people complaint that bottles of epsi company cool drinks are not properly clean!  /he most of the retailers are satisfied with the sales and promotional activities of epsi!  /he brand preference of the product mainly focused on outlets & anshops< dept! stores.!  /he data collected through the study< can be used to improve the sales J promotional activities and its effectiveness!

92

SUGGESTIONS



epsi should give credit facilty to retailers!

 5oolers should be given to those outlets which make good sales!  /rade schemes should be e8plained clearly to retailers in time and tell him the benefits he will get from that scheme!  Food communication should be maintained between retailer and distributor!  0istributors should go into the market daily because there is a possibility of selling more than one case per day  /argets should be set in such a way that it benefits both the distributor< company and have a raise in sales!  5ompany should look at the promotional activities are reaching to public or not!

93

CONCLUSION

/he project was a great e8perience for me in order to study the marketing aspects in the real world! #t was an opportunity for me to relate what # had studied! /he industry &beverage #ndustry. was a place where there are few major players and many local and regional players< the company< which # represented< was epsi and it gave me lot of opportunity and scope for me to understand the soft drink industry and its market structure and its 0istribution channel! 4ot of valuable information regarding the company and also the retailers has been collected from the survey which helped me to clearly understand the real problems faced by the marketers to distribute and also make the retailers to sel4 the companies products in the market! /he suggestions made to the company were really applicable for the benefit of the company #n order to survive and grow in the e8isting scenario with the cut through competition that is prevail in the market< epsi has to improve the efficiency of its

distribution net work and must try to grab ma8imum market! /hus finally it can be said that the company need to improve channel efficiency needs lot of channel management activities to be done along with various promotional strategies for the customers< wish the company got its objectives achieve!

94

ANNE)URE

95

>UESTIONNAIRE

$ame of the studentN 5ollege J /ownN $ame of the ShopA2wner AddressN '! epsi 5ompany 0rinks available in shopI epsiY /ropicna /wister 1inuate 1aide ,! 5oke 5ompany drinks available in shopI /hums %p Linley Water )! Fanta Linely Soda 5oca 5ola 1aa=a Sprite 4imca 1arinda 2range 1ountain 0ew D%p >vervess Soda 0iet epsi A?uafina Water hone N

/op brands urchased by consumer in your stopI 'st ZZZZZZZZZZZZ )rd ZZZZZZZZZZZZ ,nd ZZZZZZZZZZZZZ Kth ZZZZZZZZZZZZZ

K!

3our Sales in bottles per day ZZZZZZZZZZZZZZ bcttiesI epsi 7ottles Sold ZZZZZZZZZZZZZZZ 5oke 7ottles Sold ZZZZZZZZZZZZZZZ

-!

0o you re?uire Service by drink 5ompnay as follows 0aily Alternate 0ay Weekly , times

*!

Are you satisfied with epsi ServiceI Food satisfaction 7ad

96

D!

Are you satisfied with 5oke ServiceI Food Satisfaction 7ad

+!

/rade selfness offered by which company are good to youI epsi 5oke

;!

5onsumer romotions offered by which companys are best! What is epsi present consumer promotionI epsi 5oke

'(!

0o you feel /V advertisements b y drink 5ompanies help in more sale of 0rinksI 3es $o

''!

@ow is Sale of drinks this year Vs ,((+ in you shopI Food 4ess Same

',!

What is ercentage of Euice based Soft 0rinks Sales in your ShopI )(M ,(M '(M

')!

5ondition of epsi Visis 5oolerI Full of epis 0rinks 0rinks Full of epsi X 5oke epsi 0rinks X 2ther acks

'K!

Why do you keep other products in epsi 5oolerI >lectricity 7ill $o own 5ooler

'-!

What is the percentage contribution of soft drinks business in your total shop businessI ZZZZZZZZZZZZZZZZZZZZZZ

'*!

What is the shop keeper suggestion to improve epsi 5ompany Sales in ,((;I & lease answer back side of the paper.

'D!

Soft 0rinks are consumed by mostlyI
97

1ale 3outh '+!

Female

7y all eople

@ow do you &"etailer buy soft drinksI > S# 52L> 5AS@ 5AS@ 5">0#/ 5">0#/

';!

What is the percentage of sale of drinks at your all your shop consumer residenceI S@2 @21>

Si*nat+re

98

BIBLIOGRAPHY

:EB SITES VISTED$
#nformation collected from various web sites www!pepsico!com www!pepsiworld!com

BOOKS REFFERED$
'. “ "#$5# 4>S 2F 1A"L>/#$F” 66 hilip Lotler ,. “7AS#5 1A"L>/#$F” 66E>"21> 1c5arty ). “">S>A"5@ 1>/@>0242F3” 66Lothari!5!"

MAGCINES$
a. 7usiness #ndia maga=ines b. 7usiness today c. 7usiness line

99