PepsiCo Summer Internship Project

5/12/2018

PepsiCo Summer InternshipProject-slidepdf.com

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Summer Internship Project On

“A study on sales promotion strategies of PepsiCo products”

Submitted in partial fulfillment of PGDM program 2010-12

Submitted by

Shailendra Kumar Upadhyay PGDM/18/050 Company Mentor

Faculty Mentor

Mr. Niraj Singh Customer Executive (CE) PepsiCo India Holding Pvt. Ltd. Sigra, Varanasi, UP

Dr. Etinder Pal Singh Professor ASM, Dwarka

Apeejay School of Management New Delhi July 2011 1

Apeejay School of Management, Dwarka,

New Delhi http://slidepdf.com/reader/full/pepsico-summer-internship-project

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CERTIFICATE (COLLEGE GUIDE)

This is to certify that the project work done on “ A study on sales promotion strategies of PepsiCo products“ Submitted to Apeejay School of

Management, Dwarka by Shailendra Kr Upadhyay in partial fulfillment of the requirement for the award of PG Diploma in Business Management, is a bonafide work carried out by him/her under my supervision and guidance. This work has not been submitted anywhere else for any other degree/diploma. The original work was carried out during 2nd may 2011 to 30th June 2011 in (PepsiCo India Holding Pvt. Ltd.)

Date:

Dr. Etinder pal singh Professor (Academic mentor)

ASM, Dwarka Apeejay School of Management Sec-8, Institutional area, Dwarka New Delhi-110077

Seal/Stamp of the Organization

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DECLARATION

I, the undersigned, hereby declare that Project Report entitled “A study on sales promotion strategies of PepsiCo products” written and submitted by

me to Apeejay School of Management, Dwarka, New Delhi in partial fulfillment of the requirements for the award of Post Graduate Diploma in Management under the guidance of Dr. Etinder Pal Singh (Academic Mentor) and Niraj singh(Corporate mentor) is my original work and the

conclusions drawn therein are based on the material collected by myself.

Date-

Signature

Place Shailendra kr Upadhyay PGDM-1 A PGDM/18/050

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Acknowledgement

I am thankful to Dr. Etinder pal singh, Professor of Apeejay School of Management, Dwarka who showers his ever graceful guidance by extending his cooperation in giving an opportunity to do my summer project report on “A study on sales promotion strategies of PepsiCo products”. I take this opportunity to place on record my grateful thanks and sincere gratitude to Mr. Niraj Singh(C E) PepsiCo India holding Pvt Ltd, Varanasi area, who has given me this opportunity to conduct this project work in this organization. My study would not have been completed if I had not been able to get the support and guidance of Mr. Rahul Srivastava (ADC) and Mr. Manish Iyer (TDM) and other employees of the organization.

I am also highly indebted to my esteemed guide Dr.Deepankar Chakrabarti (Dean of ASM) whose continued and invaluable guidance can never be forgotten by me and without whom, this study could not have got the present shape. Lastly, I would express my grateful thanks to my family members and my friends who inspired me to put in my best efforts for the preparation of the Project Report. The project was undertaken under the guidance of PepsiCo India holdings pvt. Ltd. to survey the market of Varanasi in order to know the sales promotion strategies by company to distributors and the retailers and to recommend the company for more sales promotions. 5



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TABLE OF CONTENTS

CHAPRER-1 EXECUTIVE SUMMERY ……………………………………..8 CHAPTER-2 INDUSTRY INTRODUCTION………………………………9                 

COMPANY PROFILE………………………………………………………….10 COMPANY AT A GLANCE……………………………………………………11 BRIFE HISTORY………………………………………………………………..12-13 MILESTONE OF COMPANY…………………………………………………14-18 LIST OF TAG LINE……………………………………………………………..19-21 CHAIRMAN & CEO…………………………………………………………….22 VISION & MISSION…………………………………………………………….23 VALUE & PHILOSOPHY………………………………………………………24 COMMUNITY……………………………………………………………………24 CUSTOMER………………………………………………………………………24 COMPETATIVE ANALYSIS……………………………………………………25-26 SUSTAINABLE ADVANTAGES……………………………………………….27-28 SWOT ANALYSIS………………………………………………………………..29-30 ORGANISATIONAL STRUCTURE…………………………………………...32 DISTRIBUTION CHANNAL…………………………………………………...33 MANUFACTURING PROCESS……………………………………………….34 BOTTLING PLANTS ……………………………………………………………35

CHAPTER-3 TOPIC INTRODUCTION   

SALES PROMOTION……………………………………………………………36-37 SALES PROMOTION ORIANTATION………………………………………..38-41 SALES PROMOTION STRATEGIES…………………………………………..43-44

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KINDS……………………………………………………………………………...45 SHORT TERM IMPACT OF SALES PROMOTION…………………………46 LONG TERM IMPACT OF SALES PROMOTION…………………………..47

CHAPTER-4  

RESEARCH OBJECTIVES…………………………………………..48 RESEARCH METHODOLOGY……………………………………..49

     

PROBLEM DEFINITION TYPE OF RESEARCH DESIGN SAMPLE SIZE SOURCE OF DATA COLLECTION SAMPALING TECHNIQUES

CHAPTER-5  

DATA ANALYSIS AND INTERPRETATION…………………….5065 FINDIGS…………………………………………………………………66

CHAPTER-6   

CORPORATE LEARNING……………………………………………67 LIMITATION…………………………………………………………….68 CONCLUSION ………………………………………………………….6970

CHAPTER-7

RECOMONDATION…………………………………………71 7



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CHAPTER-8 CHAPTER-9

BIBILIOGRAPHY…………………………………………….72 ANNEXURE …………………………………………………..73-

74

EXECUTIVE SUMMARY PepsiCo is a world leader in a convenient food and beverages with revenues of more than $45 billion and more than 1, 60, 000 employees. The company consists of Frito-lay North America, PepsiCo Beverages North America, PepsiCo International and Quaker Foods North America. PepsiCo brands are available in nearly 200 countries and territories and generate sells and the retail level of about $85 billion. PepsiCo is the world’s premier consumer products company focused on convenient foods and beverages. This project work entitled “A study on sales promotion strategies of PepsiCo products”, was done to become familiar with the working of PepsiCo (PepsiCo India

Holding Private Limited) and to know the strategies used by PepsiCo in the sales promotion. The important objectives of the project were to find out: what are the various types of promotional strategies used in marketing, in which way the strategies are implemented, what is the market share of the company, which promotional strategy is used most, what is the impact of sales promotion during off season, how retailers react to

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new sales promotions,

what are the various tools that the company uses during sales

promotion, and which type of promotional offers retailers prefer etc. The project is entirely based on my observations made during the two months spent at PepsiCo India Holdings Pvt Ltd, Varanasi and visits to various markets of Varanasi. Based on my learning and experience, I have made some suggestions to improve the sales promotion activity and services.

Industry Introduction:

Beverage industry is one of the fast growing industries in India .it can be divided into two sections i.e. carbonated and non-carbonated. The carbonated drinks that can be further classified into cola, lemon orange, mango and apple segments.

Marketing includes all the activities like promotion, distribution, advertising etc. To fulfill all the segments of consumers. Marketing is also to convert social needs into profitable opportunities. So this topic provides all the essentials to theoretical knowledge with practical knowledge and to inculcate the efficiency. It is also requirement for the company to improve their service and product quality for achieving their ultimate goal.

As far as the soft drink market is concerned, it is facing the cut throat competition because of the availability of a large number of indirect as well as direct competitors. 9



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Single company offers the soft drink to the market in different taste and flavors. In this industry entire range of flavors are produced by other competitors also.

More often it becomes impossible to differentiate between the same flavors of two different brands, when served in plane container, range also. All these factors together make the situation complicated. Besides both corresponding brands have the similar price.

PepsiCo at a Glance Type

Public

Traded as

NYSE:PEP

Industry

Food & Beverage

Founded

North Corolina US

Founder(s)

Donald Kendall & Herman lay

Headquarters

New York, US

Area served

Worldwide 10



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Key people

Indra Nooyi (CEO)

Products

19 brands of PepsiCo

Revenue

US$ 57838 billion(2010)

Operating income

US$ 8332 billion(2010)

Net income

US$ 6338 billion(2010)

Total Assets

US$ 68153 billion(2010)

Total Equity

US$ 21476 billion(2010)

Employees

294000 (2010)

Divisions

PepsiCo America, Asia, Europe, Africa

Website

www.pepsico.com

COMPANY PROFILE

PepsiCo is one of the largest companies there is that is engaged in the food, beverage, and snack industries. Their address is 700 Anderson Hill Road, Purchase, N.Y. 10577.

Their phone number is 914-253-2000 and their fax number is 914-253-2070. Their stock symbol is PEP and they are listed on the NYSE. The company URL is www.pepsico.com. Business Summary: PepsiCo, Inc. is engaged in the snack food, soft drink, juice, and fast food franchise businesses. The Company, through its subsidiaries, markets, sells and distributes various snacks in the United States and internationally, manufactures concentrates of Pepsi, Mountain Dew and other brands for sale to franchised bottlers in the United States and international markets and produces, markets, sells and distributes juices under several Tropicana trademarks in the United States and internationally.

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PepsiCo’s domestic snack food business is conducted by Frito-Lay North America, and its international snack food business is conducted through Frito-Lay International. The Company's soft drink business operates as the Pepsi-Cola Company and is comprised of two business units, Pepsi-Cola North America (PCNA) and Pepsi-Cola International (PCI). In December 2000, the Company announced an agreement under which a subsidiary of PepsiCo will merge with The Quaker Oats Company, and Quaker will become a wholly owned subsidiary of PepsiCo. Quaker is a large worldwide marketer of foods and beverages. It manufactures and markets Gatorade thirst quencher, along with hot cereals, pancake syrups, grain-based snacks, cornmeal, hominy grits and value-added rice products. The proposed merger is subject to certain closing conditions, including approval by shareholders of both companies and regulatory approvals. The transaction is expected to close in the first half of 2001. PepsiCo also operates several food franchises including Pizza Hut, KFC, and Taco Bell. Financial Summary: PepsiCo, Inc. manufactures markets and sells soft drinks and concentrates (Pepsi-Cola, Mountain Dew, Slice, etc.), snack foods (Frito-Lay) and Tropicana branded juices. For the 12 weeks ended 3/24/01, net sales increased 8% to $4.54 billion. Net income increased 18% to $498 million. Revenues benefited from volume gains across all divisions. Net income also reflects an increased gross profit due to higher effective net pricing.

A Brief History of PepsiCo Born in the Carolinas in 1898, Pepsi-Cola has a long and rich history. The drink is the invention of Caleb Bradham (left), a pharmacist and drugstore owner in New Bern, North Carolina. The summer of 1898, as usual, was hot and humid in New Bern, North Carolina. So a young pharmacist named Caleb Bradham began experimenting with combinations of 12



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spices, juices, and syrups trying to create a refreshing new drink to serve his customers. He succeeded beyond all expectations because he invented the beverage known around the world as Pepsi-Cola. Caleb Bradham knew that to keep people returning to his pharmacy, he would have to turn it into a gathering place. He did so by concocting his own special beverage, a soft drink. His creation, a unique mixture of kola nut extract, vanilla and rareoils, became so popular his customers named it "Brad's Drink." Caleb decided to rename it "Pepsi-Cola," and advertised his new soft drink. People responded, and sales of Pepsi-Cola started to grow, convincing him that he should form a company to market the new beverage. In 1902, he launched the Pepsi-Cola Company in the back room of his pharmacy, and applied to the U.S. Patent Office for a trademark. At first, he mixed the syrup himself and sold it exclusively through soda fountains. But soon Caleb recognized that a greater opportunity existed to bottle Pepsi so that people could drink it anywhere.

The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially registered with the U.S. Patent Office. That year, Caleb sold 7,968 gallons of syrup, using the theme line "Exhilarating, Invigorating, Aids Digestion." He also began awarding franchises to bottle Pepsi to independent investors, whose number grew from just two in 1905, in the cities of Charlotte and Durham, North Carolina, to 15 the following year, and 40 by 1907.By the end of 1910, there were Pepsi-Cola franchises in 24 states. Pepsi-Cola's first bottling line resulted from some less-than-sophisticated engineering in the back room of Caleb's pharmacy. Growth was phenomenal, and in 1909 Caleb erected a headquarters so spectacular that the town of New Bern pictured it on a postcard. Famous racing car driver Barney Oldfield endorsed Pepsi in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer before a race." The previous year, Pepsi had been one of the first companies in the United States to switch from horse-drawn transport to motor vehicles, and Caleb's business expertise captured widespread attention. He was even mentioned as a possible candidate for Governor. A 1913 editorial in the Greensboro Patriot praised him for his "keen and energetic business sense."

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Only two plants remained open. It wasn't until a successful candy manufacturer, Charles G. Guth, appeared on the scene that the future of Pepsi-Cola was assured. Guth was president of Loft Incorporated, a large chain of candy stores and soda fountains along the eastern seaboard. He saw Pepsi-Cola as an opportunity to discontinue an unsatisfactory business relationship with the Coca-Cola Company, and at the same time to add an attractive drawing card to Loft's soda fountains. He was right. After five owners and 15 unprofitable years, Pepsi-Cola was once again a thriving national brand.

Milestone of company 

1898 Caleb Bradham, a New Bern, North Carolina, pharmacist, renames "Brad's Drink," a carbonated soft drink he created to serve his drugstore's fountain customers. The new name, Pepsi-Cola, is derived from two of the principal



ingredients, pepsin and kola nuts. It is first used on August 28. 1902 Bradham applies to the U.S. Patent Office for a trademark for the Pepsi-Cola name.



1903 In keeping with its origin as a pharmacist's concoction, Bradham's advertising praises his drink as "Exhilarating, invigorating, aids digestion."

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1905 A new logo appears, the first change from the original created in 1898.



1906 The logo is redesigned and a new slogan added: "The original pure food drink." The trademark is registered in Canada.



1907 The Pepsi trademark is registered in Mexico.

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1909 Automobile racing pioneer Barney Oldfield becomes Pepsi's first celebrity endorser when he appears in newspaper ads describing Pepsi-Cola as "A bully drink...refreshing, invigorating, a fine bracer before a race." The theme "Delicious and Healthful" appears, and will be used intermittently over the next two decades.

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1920 Pepsi appeals to consumers with, "Drink Pepsi-Cola. It will satisfy you."

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1932 The trademark is registered in Argentina.

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1934 Pepsi begins selling a 12-ounce bottle for five cents, the same price charged by its competitors for six ounces.

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1938 The trademark is registered in the Soviet Union.

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1939 A newspaper cartoon strip, "Pepsi & Pete," introduces the theme "Twice as Much for a Nickel" to increase consumer awareness of Pepsi's value advantage.



1940 Pepsi makes advertising history with the first advertising jingle ever broadcast nationwide. "Nickel, Nickel" will eventually become a hit record and will be translated into 55 languages. A new, more modern logo is adopted.



1941 In support of America's war effort, Pepsi changes the color of its bottle crowns to red, white and blue. A Pepsi canteen in Times Square, New York, operates throughout the war, enabling more than a million families to record messages for armed services personnel overseas.



1943 The "Twice as Much" advertising strategy expands to include the theme, "Bigger Drink, Better Taste."

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1949 "Why take less when Pepsi's best?" is added to "Twice as Much" advertising.

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1950 "More Bounce to the Ounce" becomes Pepsi's new theme as changing soft drink economics force Pepsi to raise prices to competitive levels. The logo is again updated. 15



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1953 Americans become more weight conscious, and a new strategy based on Pepsi's lower caloric content is implemented with "The Light Refreshment" campaign.

 1954 "The Light Refreshment" evolves to incorporate "Refreshing without Filling." 

1958 Pepsi struggles to enhance its brand image. Sometimes referred to as "the kitchen cola," as a consequence of its long-time positioning as a bargain brand, Pepsi now identifies itself with young, fashionable consumers with the "Be Sociable, Have a Pepsi" theme. A distinctive "swirl" bottle replaces Pepsi's earlier straight-sided bottle.



1959 Soviet Premier Nikita Khrushchev and U.S. Vice-President Richard Nixon meet in the soon-to-be-famous "kitchen debate" at an international trade fair. The meeting, over Pepsi, is photo-captioned in the U.S. as "Khrushchev Gets Sociable."

 1961 Pepsi further refines its target audience, recognizing the increasing importance of the younger, post-war generation. "Now its Pepsi, for those who think Young" defines youth as a state of mind as much as a chronological age, maintaining the brand's appeal to all market segments. 

1963 In one of the most significant demographic events in commercial history, the post-war baby boom emerges as a social and marketplace phenomenon. Pepsi recognizes the change, and positions Pepsi as the brand belonging to the new generation-The Pepsi Generation. "Come alive! You're in the Pepsi Generation" makes advertising history. It is the first time a product is identified, not so much



by its attributes, as by its consumers' lifestyles and attitudes. 1964 A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising.

 1966 Diet Pepsi's first independent campaign, "Girl watchers," focuses on the cosmetic benefits of the low-calorie cola. The "Girl watchers" musical theme becomes a Top 40 hit. Advertising for another new product, Mountain Dew, a

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regional brand acquired in 1964, airs for the first time, built around the instantly recognizable tag line, "Ya-Hoo, Mountain Dew!" 

1967 When research indicates that consumers place a premium on Pepsi's superior taste when chilled, "Taste that beats the others cold. Pepsi pours it on" emphasizes Pepsi's product superiority. The campaign, while product-oriented, adheres closely to the energetic, youthful, lifestyle imagery established in the initial Pepsi Generation campaign.

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1969 "You've got a lot to live. Pepsi's got a lot to give" marks a shift in Pepsi Generation advertising strategy. Youth and lifestyle are still the campaign's driving forces, but with "Live/Give," a new awareness and a reflection of contemporary events and mood become integral parts of the advertising's texture.

 1973 Pepsi Generation advertising continues to evolve. "Join the Pepsi People, Feeling' Free" captures the mood of a nation involved in massive social and political change. It pictures us the way we are-one people, but many personalities. 

1975 The Pepsi Challenge, a landmark marketing strategy, convinces millions of consumers that Pepsi's taste is superior.

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1976 "Have a Pepsi Day" is the Pepsi Generation's upbeat reflection of an improving national mood. "Puppies," a 30-second snapshot of an encounter between a very small boy and some even smaller dogs, becomes an instant commercial classic.

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1979 With the end of the '70s comes the end of a national malaise. Patriotism has been restored by an exuberant celebration of the U.S. bicentennial, and Americans are looking to the future with renewed optimism. "Catch that Pepsi Spirit!" catches the mood and the Pepsi Generation carries it forward into the '80s.

 1982 With all the evidence showing that Pepsi's taste is superior, the only question remaining is how to add that message to Pepsi Generation advertising. The answer? "Pepsi's got your Taste for Life!" a triumphant celebration of great times and great taste.

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1983 The soft drink market grows more competitive, but for Pepsi drinkers, the battle is won. The time is right and so is their soft drink. It's got to be "Pepsi



Now!" 1984 A new generation has emerged-in the United States, around the world and in Pepsi advertising, too. "Pepsi. The Choice of a New Generation" announces the change, and the most popular entertainer of the time, Michael Jackson, stars in the first two commercials of the new campaign. The two spots quickly become "the most eagerly awaited advertising of all time."

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1985 Lionel Richie leads a star-studded parade into "New Generation" advertising followed by pop music icons Tina Turner and Gloria Estefan. Sports heroes Joe Montana and Dan Marino are part of it, as are film and television stars Teri Garr and Billy Crystal. Geraldine Ferraro, the first woman nominated to be vice president of the U.S., stars in a Diet Pepsi spot. And the irrepressible Michael J. Fox brings a special talent, style and spirit to a series of Pepsi and Diet Pepsi commercials, including a classic, "Apartment 10G."

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1987 After an absence of 27 years, Pepsi returns to Times Square, New York, with a spectacular 850-square foot electronic display billboard declaring Pepsi to be "America's Choice."

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1988 Michael Jackson returns to "New Generation" advertising to star in a four part "episodic" commercial named "Chase." "Chase" airs during the Grammy Awards program and is immediately hailed by the media as "the most-watched commercial in advertising history."

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1989 "The Choice of a New Generation" theme expands to categorize Pepsi users as "A Generation Ahead!"

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1990 Teen stars Fred Savage and Kirk Cameron join the "New Generation" campaign, and football legend Joe Montana returns in a spot challenging other celebrities to taste test their colas against Pepsi. Music legend Ray Charles stars in a new Diet Pepsi campaign, "You got the right one baby."

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1991 "You got the Right one Baby" is modified to "You got the Right one Baby, Uh-Huh!" The "Uh-Huh Girls" join Ray Charles as back-up singers and a campaign soon to become the most popular advertising in America is on its way. Supermodel Cindy Crawford stars in an award-winning commercial made to introduce Pepsi's updated logo and package graphics.

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1993 "Be Young, Have fun, Drink Pepsi" advertising starring basketball superstar Shaquille O'Neal is rated as best in U.S.

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1994 New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi CEO Craig Weatherup explaining the relationship between freshness and

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superior taste to consumers. 1995 In a new campaign, the company declares "Nothing else is a Pepsi" and takes top honors in the year's national advertising championship.

Source: http://www.pepsico.com/Company/Our-History.html

List of tag lines of PepsiCo 19



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1939–1950: "Twice as Much for a Nickel" 1950–1957: "Any Weather is Pepsi Weather" 1957–1958: "Say Pepsi, Please" 1961–1964: "Now it’s Pepsi for Those Who Think Young " 1964–1967: "Come Alive, You're in the Pepsi Generation" 1969–1975: "You've got a Lot to Live, and Pepsi's got a Lot to Give " 1975–1977: "Have a Pepsi Day" 1977–1980: "Join the Pepsi People (Feeling Free)" 1980–1981: "Catch That Pepsi Spirit" 1981–1983: " Pepsi's got your taste for life"

1983–1984: "Pepsi Now! Take the Challenge!" 1984–1988: " Diet Pepsi. The Choice of a New Generation" 1988–1989: "Diet Pepsi. The Taste That's Generations Ahead" 1989–1990: "Diet Pepsi. The Right One" 1986–1987: "We've got the Taste" 1987–1990: "Pepsi's Cool " 1990–1991: "You got the right one Baby UH HUH" 1990–1994: "Yehi hai right choice Baby UH HUH "

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1995: "Nothing Else is a Pepsi" 1995–1996: "Drink Pepsi. Get Stuff." 1996–1997: " Pepsi: There's nothing official about it" 1997–1998: "Generation Next " 1998–1999: "It’s the cola" 1999–2000: " For Those Who Think Young"/"The Joy of Pepsi-Cola" 1999–2006: "Yeh Dil Maange More!" 2006–2007: "Why You Doggin' Me"/"Taste the one that's forever young" 2000–2008: "Pepsi ye pyaas heh bari" 2008–2009: "Something for Everyone"

2009–2010: "Yeh hai youngistaan meri jaan" 2009–2010: "My Pepsi My Way" 2010–present: "every Pepsi Refreshes the World " 2011–present: "Change the game" 2011–present " Dunya Hai Dil Walon Ki"

Source: http://pickprogrammer.net/SLOGAN.aspx

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Changes in logo of PepsiCo

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CHAIRMAN AND CEO OF PEPSICO

Indra Nooyi is CEO of PepsiCo; Ranked No.4 on Forbes magazine's annual surveys of the

100

most

powerful

women

in

the

world.

Indra Nooyi is the newly appointed CEO of PepsiCo-the world's second-largest soft drink maker. She joins the select band of women who head Fortune 500 companies. Presently, there are only 10 Fortune 500 companies that are run by women, and she is the 11th to break into the top echelons of power. Prior to becoming CEO, Indra Nooyi was President, Chief Financial Officer and a member of the Board of Directors of PepsiCo Inc. she spent her childhood in Chennai. Her father worked at the State Bank of Hyderabad and her grandfather was a district judge. She did her BSc. in Chemistry from Madras Christian College and subsequently earned a Master's Degree in Finance and Marketing from IIM Calcutta. Indra Nooyi also holds a Master's Degree in Public and Private Management from the Yale School of Management. Before joining PepsiCo in 1994, Indra Nooyi was Senior Vice President of Strategy and Strategic Marketing for Asea Brown Boveri, and Vice President and Director of Corporate Strategy and Planning at Motorola. She also had stints at Mettur Beardsell and Johnson & Johnson. At PepsiCo, Indra Nooyi played key roles in the Tricon spin-off, the purchase of Tropicana, the public offering of Pepsi Cola bottling group and the merger with Quaker Foods. Indra Nooyi has 23



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been ranked No.4 on Forbes magazine's annual survey of the 100 most powerful women in the world. Source: http://en.wikipedia.org/wiki/Indra_Nooyi

MISSON

The main objective of the company is to provide best quality products to its consumer. Another objective is to provide healthy rewards to its investor, good reward to its employee and other investor and partners who financially help the company

VISION

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The vision of the company is to improve in all aspects in which they operate. By improving in social and economical environment, they want to make tomorrow better than today.

Source: http://www.pepsico.com/Company/Our-Mission-and-Vision.html

PepsiCo Values & Philosophy

Our Values & Philosophy area reflection of the socially and environmentally responsible company we are committed to delivering sustained growth through empowered people acting responsibly and building trust. What It Means

Sustained Growth is fundamental to motivating and measuring our success. Our quest for sustained growth stimulates innovation, places a value on results, and helps us understand whether today's actions will contribute to our future. It is about the growth of people and company performance. It prioritizes both making a difference and getting things done. Empowered People means we have the freedom to act and think in ways that we feel will get the job done, while adhering to processes that ensure proper governance and being mindful of company needs beyond our own. Responsibility and Trust form the foundation for healthy growth. We hold ourselves both personally and corporately accountable for everything we do. We must earn the confidence others place in us as individuals and as a company. By acting as good stewards of the resources entrusted to us, we strengthen that trust by walking the talk and following through on our commitment to succeeding together. Diversity brings new perspectives into the workplace and encourages innovation, as well as the ability to identify new market opportunities.

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Respect

others

and

succeed

together.

Our mutual success depends on mutual respect, inside and outside the company. It requires people who are capable of working together as part of a team or informal collaboration. While our company is built on individual excellence, we also recognize the importance and value of teamwork in turning our goals into accomplishments.

COMMITMENT Diversity isn't just the right thing to do. It's the right thing to do for our business, and we're committed to making diversity and inclusion a way of life at PepsiCo. In our business, understanding different cultures is a major advantage. In fact, we view diversity as a key to our future. Our brands appeal to an extraordinarily diverse array of customers. And they are sold by an equally diverse group of retailers. To truly understand the needs of our customers and consumers -- and succeed in the marketplace -- PepsiCo must reflect that diversity in our employees, our suppliers and in everything we do. Offering a workplace where diversity is valued helps we build the top-quality workforce so crucial to our success -- by enabling us to attract and retain great people from a wide spectrum of backgrounds.

Community We are committed to celebrating and supporting diversity in our community through our corporate giving and community programs.

PepsiCo gives to the community through

the PepsiCo Foundation, the PepsiCo Community Affairs Department and PepsiCo divisions. The PepsiCo Foundation and our operating divisions gave grants to more than 1,000 community organizations, of which a significant portion were organizations championing diversity. We also support organizations through gifts in-kind, such as product, premiums, printing, meeting arrangements, and equipment donations, support of events, conventions, journals and meetings.

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Customers We are committed to marketing our products to all groups, treating all customers with respect, sensitivity and fairness, while providing some of the greatest products on earth. Early in its history -- as far back as the 1940s -- Pepsi-Cola recognized the importance of diversity. Pepsi pioneered targeted marketing and national lifestyle advertising featuring minorities. We developed education and sports programs spotlighting minorities. We partnered with many groups to create programs that contribute to minority communities. We sponsored major music tours by entertainers such as Tina Turner. We support minority media and interests. Over the years, our success has been recognized with numerous awards. Most importantly, our products are purchased and enjoyed by all groups of consumers.

Suppliers: We are committed to welcoming business partners who represent all people and purchasing quality products and services from a diverse supplier base. PepsiCo is a leader in seeking out and working with minority and women suppliers. In 2006, we surpassed $1 billion in spending with minority and women vendors. It is our policy to promote the utilization of eligible M/WBE vendors in all aspects of the company's business.

Competitor:

Pepsi cola have a grate competition with other soft drinks and water, but the major competitor of Pepsi is Coke. Coke gives a direct competition to Pepsi cola. Coke covers almost 41% of market share and indirectly Pepsi have competition with Fruit juice and mineral water which capture around 11% market.

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SUSTAINABLE ADVANTAGE

Three major sustainable advantages give PepsiCo a competitive edge as we operate in the global marketplace. 1

Big, muscular brands;

2

Proven ability to innovate and create differentiated products; and

3

Powerful go-to-market systems.

Making it all work are our extraordinarily talented and dedicated people.

When we take these

competitive advantages and invest in them with dollars generated from top-line growth and cost-saving initiatives, we sustain a value cycle for our shareholders. In essence, investing in innovation fuels the building of our brands. This in turn drives top-line growth.

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Dollars from that top-line growth are strategically reinvested back into new products and other innovation, along with cost-savings projects. Thus, the cycle continues.

Highlights of PepsiCo in India:



World leader - Convenient Foods and Beverages



Revenues of more than $35 billion



More than 1,68,000 employees



Available in nearly 200 countries and territories



Group’s 37 bottling plants in India



16 are company owned and 21 are franchisee owned



Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company in 2001



Generates direct employment for more than 4000 people in India and indirect employment for 60,000 people



Annual exports from India are worth over U.S$60 million



PepsiCo Founded in 1965 through the merger of Pepsi-Cola and Frito-Lay

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PepsiCo entered India in 1989

Source: www.allfreeessays.com/essays/Pepsi-And-Its-MarketIng

SWOT ANALYSIS OF PEPSICO

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l r n a e t I n

l n a r e t E x

SS W W O O T T

Things Thingsthe thecompany companydoes doeswell. well.

Things Thingsthe thecompany companydoes doesnot notdo dowell. well.

Conditions Conditions in inthe theexternal externalenvironment environment that thatfavor favorstrengths. strengths.

Conditions Conditionsin inthe theexternal externalenvironment environment that do not relate to existing that do not relate to existingstrengths strengthsor or favor areas of current weakness. favor areas of current weakness.

Strengths1. Believe on the customer satisfaction. 2. Pepsi has a broader product line and outstanding reputation. 3. Record revenues and increasing market share 4. Number one maker of snacks, such as corn chips and potato chips 5. Great brands, strong distribution, innovative capabilities 6. popular with younger people, wide array of brands 7. has a big share , popular, well know by costumers, higher celebrities for promotion 8. Company has good market share in Varanasi city. 9. Company has a Brand Equity among Consumers.

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Weaknesses-

1-No provision for regular replacement of damage of bottles. 2-Distribution is not proper so we can say not justified. 3-not as popular with older crowd, not associated with key restaurants (i.e. coke / McDonalds', while Pepsi / Pizza Hut)

Opportunities-

1. water related products, non-soft drinks, energy drinks 2. Increase the coverage areas. 3. Increase market share by improving service 4. Increase the target consumer every year. 5. Company can go for more Monopoly counters.

Threats-

1. Distributors are reducing in Varanasi city. 2. Constant competition with coke. Olympic branding from coke. 3. Other drink companies are increasing competition. 4. Decline in market reputation due to ineffectiveness & declaring service. 5. Aggressive marketing strategies of Coke.

Source: http://www.marketingteacher.com/swot/pepsi-swot.html

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PEPSICO’S PRODUCTS

Following are main products of PepsiCo (India) pvt limited.



Pepsi



Mirinda Lemon



Mountain Dew



7 Up Slice

Pepsi Diet

 

Mirinda Orange

Lehar Soda

Aquafina



Lays



Uncle Chips

Nimbooz Tropicana

Lehar Namkeen Kurkure Cheetos

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Organizational chart

Unit Manager Territory Development Manager

Marketing Development Manager

Assistant Sales and Development

Marketing Development Coordinator

Manager

Customer Executives

Sales Trainees

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Distribution Channel “Marketing channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption”

PepsiCo’s Plant Indenting

Primary Sale

Distributor

Market / Retailers

Secondary Sale

Consumer

Distribution Objective 

Minimize total distribution costs for a given service output



Determine the target segments and the best channels for each segment 35



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Objectives may vary with product characteristics



E.g. perishables, bulky products, non-standard items, products requiring installation &

maintenance.

MANUFACTURING PROCESS The bottling factory is having a manufacturing process comprising of water treatment, plant producing 1oo*bacterial free soft water as for specification prescribed by COKE & PEPSI. The soda sugar making unit is there to prepare sugar syrup, standard mixed percentage. There is an intermixing unit where through a semi automatic process sugar syrup. The both flavor water and CO2 is punched together resulting into the soft drinks of a particular flavor. There is a huge bottle washing machine where the markets returned bottled are washed continuously in the super heated water, chlorine and then soft chilled water. Through the exhausted washing system the bottles are carried out of the washer with the help conveyer and automatically hundreds of bottles washed and cleaned. Bottles are led by conveyer to the filling machine unit, where the ready soft drink mixture is put in 800 bottled per minute. Simultaneously through an automatic system all the bottle is crowned with the help of crowning machine. The ready to go the market bottles are then passed through aggressive inspection and collected into carats (1 carats contains 24 bottles) with the help of automatic case packer machine. After that pet containing soft drinks are sent to the warehouses and immediately the payment of the excise duty to the Govt. For packed bottle kept in the warehouses are insured and, ultimate stage of the production line is to dispatch it. The product reaches into the market through a network of distribution system.

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BOTTLING PLANT IN INDIA

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There are total 46 bottling plants across India, in which 35 plants are of soft drinks and 11 plants are of mineral water.

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Introduction to the topic

Introduction:

The importance of consumer sales promotion in the marketing mix of the soft drink category throughout the world has increased. Companies spend considerable time in planning such activities. However, in order to enhance the effectiveness of these activities, manufacturers should understand consumer and retailer interpretations of their promotional activities. The study here pertains to consumer’s perceptions regarding sales promotion. Some past researches have suggested that promotion itself has an effect on the perceived value of the brand. This is because promotions provide utilitarian benefits such as monetary savings, added value, increased quality and convenience as well as hedonic benefits such as entertainment, exploration and self-expression. Broadly speaking most of the companies using Marketing Mix which includes… Price Place (Channel of Distribution) Product Promotion

These are the four basic pillar of marketing mix. Most of the marketing strategies are built on the basis of these criteria. Promotion is one of the important elements of marketing mix. There are so many elements of promotion such as …

Advertising Direct Marketing Public Relations Sales Promotion

Traditionally, sales Promotions have been used by marketer to increase sales in the short term. However, in the last few decades this communication tool has evolved and now is 39



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considered from a strategic point of view. For this reason, it is necessary to realize new studies in this area and study how consumers evaluate sales promotions.

Sales promotions have grown in both importance and frequency over the past few decades. Although an accurate estimate for total sales promotions expenditures does not exist, we can be sure that the trend is up.

Sales promotion serves three essential roles: It informs, persuades and reminds prospective customers about a company and its products. Even the most useful product or brand will be a failure if no one knows that it is available. As we know, channels of distribution take more time in creating awareness because a product has to pass through many hands between a producer and consumers.

Therefore, a producer has to inform channel members as well as ultimate consumers about the attributes and availability of his products. The second purpose of promotion is persuasion. The cut throat competition among different products puts tremendous pressure on their manufacturers and they are compelled to undertake sales promotion activities. The third purpose of promotion is reminding consumers about products availability and its potential to satisfy their needs.

From these elements Sales Promotion is the element which is in the focus of this project. Further Sales Promotion is quite broad term it includes …

 

Consumer Oriented Sales Promotion Trade Oriented Sales Promotion

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Sales Promotion from the Consumers point of view

Long-term impact

In order to understand ability of the promotions to increase long-term sales, respondents were asked about continuity of purchase of a brand after the withdrawal of promotion. Majority of the respondents indicated that they would not continue. But some of said they would. Thus, it could be inferred that promotions in this category (low involvement products) might encourage trial and brand switching but not long term loyalty. Preference of Schemes:

Price off was the most preferred type of scheme. Maximum customers’ ranked price-offs as number one or two.

Perceived Quality:

Majority of respondents had a perception that the quality of the promoted brands remained the same during promotion, while some of them felt that it was inferior to before. It can be inferred that promotions were not leading to negative brand quality perceptions. It is found that some customer strongly preferred to buy their regular brand and said that sales promotion would not weaken their loyalty towards the brand.

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Sales promotion from the retailer’s point of view:

Perceptions on Scheme Preference

It was found that retailer perceived price offs as a better form of sales promotion activity. Price offs in their opinion had relatively a greater impact compared to any other form of sales promotion activity like Bonus packs, Premium, Contests etc. Retailers preferred price offs the most, then bonus pack, premium, contests, in order of importance.

Perceptions about Buying Roles

Retailers viewed that the person who came to the shop (who may be a maid, son, daughter, daughter-in-law and child) was the decider of a toilet soap brand and not the Income provider (e.g. head of the family). It could be inferred that visibility of information about the sales promotion activity at the point of purchase could result into the purchase of a promoted brand.

Perceptions about their role in decision-making

Retailer had relatively very low influence in affecting choice. It could be inferred that visibility and awareness about the scheme were the critical success factors so that pull could be created. Perceptions about Response to Sales Promotion Offers

They believed that younger age-groups were more experimental in nature, amenable to trying new brands, and sought/looked for or asked whether there were any) sales promotion schemes running on any toilet soap at the time of purchase.

Perceptions about Communications of Sales Promotion Schemes 42



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Retailers perceived that role of word of mouth and television advertising played an important part in providing information inputs to consumers regarding sales promotion activities.

Dealer-Retailer Dynamics

At the time of sales promotion activities, dealers had tendency to push unwanted stocks onto the smaller retailers. In fact these retailers preferred to stock variety of brands and wanted payment for shelf and window display to increase traffic into their store. However, supermarkets and big retailers were pampered and given special services and given better margins and better allowances.

Margins

It was found that in sales promotion schemes margins varied from 6 to15% depending of the size of the retail outlet, bargaining power of a retailer, quantity ordered by him etc. Mostly margins were linked to size of the volumes that were ordered.

Nature of POP

Retailers indicated that most of the POP (Point of Purchase) materials were meant for brand advertisement and not for giving information regarding the schemes. Thus it could be inferred that company’s follow up was not adequate.

Servicing during duration of Scheme

In stock-out situation during the running of the sales promotion schemes, smaller retailers had to wait for replenishment of stocks till the next scheduled weekly visit by the dealer salesman but big retailers were serviced on telephonic request for replenishment of stocks. This clearly indicated the disparity in treatment.

Gifts for Retailer motivation 43



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Companies at times were rewarding retailers by giving free gifts like thermos flasks or clocks if they sold more than certain quantity in a given period. Companies were making a half-hearted effort to motivate retailers.

Perceptions about mass media announcements

Retailers viewed that whenever sales promotion scheme was announced on TV, it created pull and they were more than willing to stock such brands. Hence there was very little awareness leading to unsold stock till 6 months.

Handling Problems

Many a time’s retailers had to handle various sales promotion offers simultaneously in a category and also across categories and there was no formal communication planning either from the dealer or the company. Remembering each offer and handling was a problem especially for a small retailer which was often an as one-man show.

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Source: http://www.nos.org/Secbuscour/24.pdf

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Why do Sales promotion schemes affect sales?

There are three mechanisms behind these facts. It is Purchase quantity, Brand switching and Category expansion.

First, consumer can increase the quantity they buy just because the product is on sale.

Second, consumers are inducing to purchase another brand different from the one they

would have purchased when there is no promotional incentive.

Finally, consumer’s total consumption of the product category is increased by the

promotion. However, in the long term this positive effect may be diluted because a promotional campaign has no permanent effect in the sales of the firm

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Sales Promotion Strategy

Sales are the lifeblood of a business, without sales there would be no business in

the first place; therefore it is very important that if a business wants to succeed, it should have a sales promotion strategy in mind. The primary objective of a sales promotion is to improve a company’s sales by predicting and modifying your target customer’s purchasing behavior and patterns. Sales promotion is very important as it not only helps to boost sales but it also helps a business to draw new customers while at the same time retaining older ones. There are a variety of sales promotional strategies that a business can use to increase their sales, however it is important that we first understand what a sales promotion strategy actually is and why it is so important. A sales promotion strategy is an activity that is designed to help boost the sales of a product or service. This can be done through an advertising campaign, public relation activities, a free sampling campaign, a free gift campaign, a trading stamps campaign, through demonstrations and exhibitions, through prize giving competitions, through temporary price cuts, and through door-to-door sales, telemarketing, personal sales letters, and emails. The importance of a sales promotion strategy cannot be underestimated. This is because a sales

promotion

strategy

is

important

to

a

business

boosting

its

sales.

When developing a sales promotion strategy for your business, it is important that you keep the following points in mind. •

Consumer attitudes and buying patterns

•

Your brand strategy

•

Your competitive strategy

•

Your advertising strategy

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Other external factors that can influence products availability and pricing

There are three types of sales promotion strategies: •

A push strategy

•

A pull strategy

•

A combination of the two

A Push Strategy: A ‘push’ sales promotion strategy involves ‘pushing’ distributors and retailers to sell your products and services to the consumer by offering various kinds of promotions and personal selling efforts. What happens here is that a company promotes their product/services to a reseller who in turn promotes it to another reseller or to the consumer. The basic objective of this strategy is to persuade retailers, wholesalers and distributors to carry your brand, give it shelf space, promote it by advertising, and ultimately ‘push’ it forward to the consumer. Typical push sales promotion strategies include; buy-back guarantees, free trials, contests, discounts, and specialty advertising items. PepsiCo

use

such

type

of

strategy

for

maximum

time

A Pull Strategy: A ‘pull’ sales promotion strategy focuses more on the consumer instead of the reseller or distributor. This strategy involves getting the consumer to ‘pull’ or purchase the product/services directly from the company itself. This strategy targets its marketing efforts directly on the consumers with the hope that it will stimulate interest and demand for the product. This pull strategy is often used when distributors are reluctant to carry or distribute a Pepsi product. Typical pull sales promotion strategies include; samples, 48



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coupons, cash refunds or rebates, loyalty programs and rewards, contests, sweepstakes, games, and point-of-purchase displays.

A Combination of Two Strategies: A ‘combination’ sales promotion strategy is just that; it is a combination of a push and a pull strategy. It focuses both on the distributor as well as the consumers, targeting both parties directly. It offers consumer incentives side by side with dealer discounts.

The Short term Impact of Promotions: Let’s have look at the impact of promotions on purchase behavior during the promotional period i.e. the week or the month when the promotion was being run. The majority of the empirical studies have focused on the impact of promotions in the short term. The key findings across the studies are discussed below.

Temporary price reductions (price off) substantially increase sales:

There is ample evidence to show that promotions lead to dramatic increases in sales of promoted brand in the short term. Studies have consistently reported high sales effects and high price elasticity of brands which are on promotion. The economic rationale for the promotional response is clear – temporary price cuts increase the value of the product to the consumer and it leads to immediate action. Sales boost can be quantified on the basis of brand switching, primary demand expansion and consumer stockpiling during a promotion.

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Sales Promotion leads to brand substitution with the product category:

The sales ‘bump’ during the promotional period into sales due to brand switching, purchase time acceleration and stockpiling. Studies on brand switching have shown that brand switching effects within a category are asymmetric such that promotions on higher quality brands impacts weaker brands disproportionately. During a promotion, higher quality brands induce a large number of consumers to switch to them as compared to lower quality brands. One explanation advanced for this finding by researchers is that large share brands have higher brand equity and attract switchers more than low share brands Sales Promotion leads to purchase acceleration/stockpiling effects:

In response to a promotion, consumers may buy more quantity of the product category or buy at an earlier time than usual (purchase acceleration effect). If consumers buy extra quantity during a promotion or earlier than normal, then they are not in the market to buy products once the promotion is over. Thus purchase acceleration is demonstrated through A lengthening of inter purchase times after a promotion. Purchase acceleration was more likely to be exhibited in increased purchase quantity than in shortened inter purchase times. Results showed that consumers mostly made up for the large quantity purchased by waiting longer until purchasing again. Results indicated that heavy users tended to accelerate purchases more than light users. There was negligible difference in the acceleration propensities of high versus low income groups. Sales Promotion leads to primary demand expansion for a category:

While it was traditionally assumed that consumption rates remain fixed during and after a promotion, but from this project I came to know that promotions also have a primary demand expansion effect. When a primary demand expansion occurs, promotion 50



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induced increase in purchase quantities does not significantly extend the time till the next purchase in the category occurs, thus indicating that there has been an increase in consumption promotions induced consumers to buy more and consume faster. It is found that promotion induced inventory temporarily increased consumption rates within the category e.g. in categories such as bacon, salted snacks, soft drinks and yogurt exhibited primary demand expansions as a result of promotion while bathroom tissue, coffee, detergent and paper towels exhibited stockpiling only.

Sales Promotions affect sales in complementary and competitive categories:

From this project it is found that promotion not only increases sales of main product but it also lead to increase in sales of complementary categories. Found strong cross relationships between products of the promoted product category indicating brand substitution behavior. They stated that retail price promotions work as a form of implicit price bundling whereby the consumer surplus is transferred from the promoted item to non promoted items. Also found that retail price promotions create significant complementary and substitution effects within the store.

The Long term Impact of Promotions: Strategies are builds to reap the benefits for longer period of time; same is true in sales promotion strategies. Let us see impact of promotions effort and study the impact over a longer time period e.g. 4-6 months or even a few years after a sales promotion campaign.

The result showed that consumer promotions for leading brands of established packaged products had no after-effects on the brand’s sales or repeat buying loyalty. The extra sales of a brand while promoted came virtually all from the brand’s existing long-term customer base for which the experience of buying the promoted brand was nothing new.

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It is found that although the short term effects of promotions are strong; these promotions rarely exhibit long term effects. It is observed that each sales component generally lacked a permanent effect and the effect of promotion was short lived and increase in promotions affected consumers’ stockpiling decisions in the long run. They found that the combined short and long-term elasticity of promotions was zero. The stockpiling induced by a promotion was essentially offset by reduced demand in the long term. Thus increased sales were more a result of sales borrowed from the future than increased consumption.

Research Objectives of study



To understand the competitive market of soft drinks.



To analyze the impact of promotional schemes on sales.



To know the various sales promotion strategies.



To investigate the problems of retailers and customers.



To analyze the impact of merchandising on sales.

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Research Methodology

1. Defining the problem: To study “Sales promotion strategies of PepsiCo products” in Varanasi city.

2. Research Type: Descriptive Research – Descriptive research has been conducted as the primary data was studied and analyzed according to the need of the study. 3. Area Selected: Survey was conducted in Varanasi City. 4. Sample unit: Each respondent was considered as a single unit in the survey.

5. Sample Size: The sample was done taking 100 units.

6. Collection Of Data:

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Mostly, the information which has been collected is primary in nature. Some secondary data have also been extracted from the various websites, published journals, magazines, and newspapers. 7. Data Collection Method: The method of data collection is questionnaire method.

8.

Data Analysis Method & tools: The data analysis instrument used for conducting the research is Tabulation,

Bar Chart, Line Chart and Pie chart.

ANALYSIS & INTERPRETATION:-

Q1. Since how long are you in this business? a) 1-5 years ( )

Durations

Respondents

b) 5-10 years ( )

1-5 years

c) more than 10 years ( )

5-10 years

35

More than 10 years

53

12

Respondents

1-5 years 5-10 years More than 54



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INTERPRETATION:-

Majority of outlets were doing business from 5 to 10 years.

Q.2 which company’s soft drink you would like to purchase in more quantity? a) Pepsi ( )

Company's product

b) coke ( )

c) Others ( )

Pepsi

Respondents

coke

56

55

Others

38

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Respondents

Others

s d n a r B coke

Respondents Pepsi 0

10

20

30

40

50

60

No of respondents

INTERPRETATION:The above graph present that 56% of respondents like to buy Pepsi products, 38%

respondents like to buy coke products, and 6% respondents like to buy other product in more in quantity

Q3. Why you want to purchase a particular company’s product in more quantity? a) High Margin ( )

b) More offers ( )

c) Better Supply ( ) d) More facilities ( )

Particular company

High Margin

More Offers

Better supply

More facilities

Respondents

41

44

10

5

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Respondent

10 %

5% 41 %

High M or Bett M or

44 %

INTERPRETATION:-

From the above data tabulated, it can be inferred that majority of the respondents i.e., 44% of respondents buy product in more quantity due to more offers. This is followed by 41% due to high margin, 10% due to more facility & 5% of respondents due to better supply.

Q4. Do you suggest customers to purchase a certain brand? a) Yes ( )

Suggestion for Products

b) No ( )

c) some time ( )

Yes

Respondents

No 38

57

Some time 36

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Respondents 40 35

s t n 30 e d n 25 o p 20 s e r 15 f o 10 o N 5

0

Res

Yes

No

Some time

INTERPRETATION:Out of sample size, 38% respondents suggest the customers certain brands while 36% respondents don’t suggest and 26% respondents suggest at times.

Q5. If Yes why? a) High margin ( ) b) more promotional offers ( )

Reason for suggestion

High margin

c) quality ( )

More Promotional offers

58

Quality

d) Others ( )

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Respondents

16

14

3

5

Respondents

High margin More Promotio Quality Others

INTERPRETATION:-

Out of respondents who suggest for certain brands to customer in which 16 respondents suggest due to high margin, 14 respondents due to more promotional offers, 3 of due to quality & 5 for others reasons

Q6. Do you think that customer consider promotional schemes while purchasing a particular brand of Soft drinks? a) Yes ( )

b) No ( )

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Consideration of promotional schemes

Yes

No

Respondents

82

18

Respondents

Yes No

INTERPRETATION:-

The above diagram shows that 82% respondents think that customer considers promotional schemes while purchasing a product & 18% respondents don’t think so.

Q7. Which promotional schemes attract more to customer? 60



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a) Price off ( )

b) Extra quantity ( ) c) Display promotion ( ) d) lucky draw ( )

Promotional schemes

Price off

Extra Quantity

Display Promotion

Lucky Draw

Respondents

41

39

8

12

Respondents

45 40 35 30 25 20 15 10 5 0

Price off Extra Qu Display P Lucky Dr

Price off

Extra

Display

Lucky

INTERPRETATION:-

From the above graph it is clear that price off promotional strategy and Extra quantity is more attractive to customers.

Q8. Which of the following promotional schemes you have come across so far? a).Extra quantity ( )

b) scratch card ( )

c) mega display ( ) 61

d) lucky draw ( )



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Mega Current promotional schemes Respondents

display

Extra Quantity 9

Scratch

Lucky

card

Draw

52

22

17

Respondents

Lucky Draw

Scratch card Res Extra Quantity

Mega display

INTERPRETATION:-

Out of total respondents, 52% of respondents are currently using extra quantity schemes followed by 22% for scratch card, 17% for lucky draw and 9% for mega display.

Q9. Which medium do you feel is suitable to promote the various promotional schemes? 62



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a) Hording ( )

b) Signboard ( )

c) news paper ( )

d) others ( )

Medium

Hoarding

Sign board

News paper

Others

Respondents

45

29

15

11

Respondents

Others Ot

News paper

Ne Si Sign board

Ho

Hording

INTERPRETATION:-

Majority of respondents i.e. 44% feel that the best medium of sales promotion schemes is hording followed by 29% for sign board, 15% for news paper and 11% for others.

Q10. Is there any existing scheme on the soft drink you are currently using?

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a) Yes ( )

b) No ( )

Existing schemes

Yes

No

Respondents

62

38

Responden

38% Y es No 62 %

INTERPRETATION:-

Majority of respondents are availing existing schemes

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Q11. If yes, please specify? a) Price off ( ) b) Extra schemes ( ) c) Monopoly ( ) d) others ( )

Type of schemes

Price off

Extra schemes

Monopoly

Others

Respondents

23

25

10

4

Respondents

6% 16%

37%

Price Extra Mono Other

41%

INTERPRETATION:

Out of total respondents who are availing existing schemes, 41% use extra schemes followed by 37% by price off and remaining by others.

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Q12. If you get an attractive promotional offer in the product other than of your choice will you switch over? a) Yes ( ) b) No ( ) c) May be ( )

Changes on choice

Yes

No

May Be

Respondents

32

49

19

Respondent

50 40 30 20

10 0

INTERPRETATION:-

The above diagram shows that 49% of respondents don’t change their choice after getting an attractive offer but 32% of respondents are prone to changing their choice and 19% of respondents are undecided.

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Q13. Give reason for the same? a) cost+quantity ( ) b) quality ( ) c) More benefits ( )

d) season change ( )

Reason

Cost+quantity

Quality

More Benefits

Seasonal change

Respondents

15

2

10

5

Respondent

16% 47%

Cost+q Quality More B Season

31% 6%

INTERPRETATION:-

Above data indicate that out of the respondents who change their choice, 47% change due to cost and quantity, 31% due to more benefits, 16% due to seasonal change and 6% due to quality.

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Q14. Are you satisfied with schemes given along with products? a) Yes ( ) b) No ( )

Satisfaction level

Yes

No

Respondents

39

61

S atisfaction lev

39%

Yes No

61%

INTERPRETATION:-

Out of total respondents, 61% of respondents are not satisfied with existing schemes.

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Q15. Do you want to improve in the service of the company? a) Yes ( ) b) No ( )

Improvement in services

Yes

No

Respondents

72

28

Improvment in services

80 60 No of 40 respondents

Yes No

20 0 Yes

No

INTERPRETATION:Majority of respondents want the company to improve its services.

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Through FAQs 1-The market position of the Pepsi is very strong in area allotted to me. Near about 75% soft drinks sold belong to Pepsi. 2-Dew is the most selling brand in the area and at second position is 7UP & third is slice. 3-Retailers are not getting the benefits provided by the company because agency is more interested in selling to the whole sellers in bulk. 4-When there is any scheme launched by the company, agency sells all the stock to the whole sellers for some benefit. 5-Whole sellers are selling at low price than Agency because of the stock they bought in schemes. 6-Acceseries are provided to the big shops only and they should be on the main road.

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FINDINGS

After analyzing and interpreting data, the outcomes are…….



In the city of Varanasi majority of outlets which keep soft drink products were doing business from 5 to 10 years and out of them most of outlets prefer to keep Pepsi product as well as monopoly outlets also are more for Pepsi.



Retailers buy products more in quantity because 44% of respondents buy product in more quantity due to more offers. This is followed by 41% due to high margin, 10% due to more facility & 5% of respondents due to better supply.



Majority of respondents i.e. 44% feel that the best medium of sales promotion schemes is hoarding followed by 29% for sign board, 15% for news paper and 11% for others



Out of total retailers availing existing schemes, 49% don’t change there choice after getting an attractive offer but 32% of respondents change their choice and 19% of respondents may or may not change.



The retailers and dealers of PepsiCo want PepsiCo to improve its servics and ask for more schemes.



In the form of competitive analysis the market share of Pepsi is greater than coke.

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CORPORATE LEARNING

To be a part of PepsiCo India Holdings pvt ltd, was the best opportunity for me to have : 

A practical exposure of soft dinks (FMCG) world



Independently understand the customer



Learn corporate culture



Learn the technical procedure and analysis of various research system such as marketing research , Merchentising etc .

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Limitations of the study

It is well know fact that constraint and limitations are bound to be present in any study do this also has some limitation as:•

We considered Varanasi region only because of limited time duration.

•

Due to this, the sample size is only 100, which is not very large.

•

All the respondents could not fill their questionnaire on their own due to language problem, time constraints and lack of positive behavior.

•

Respondent may give biased answer due to some lack of information about other brands.

•

Findings of the study are based on the assumption that the respondents have given correct information.

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CONCLUSION

Hard work and focus makes people successful, success is nothing but taking right decisions in complex situations.

Overall it was a good exposure at PepsiCo India Holding Pvt Ltd. Before starting the training at PepsiCo, lot of questions related to working of a FMCG company were popping in the mind of a budding manager who had a lot of enthusiasm to learn the entire functioning of the organization and many of the questions got answered during the tenure at PepsiCo. There are still few questions unanswered and they are the questions that can be only answered by the Top Management and are practical questions which can also be answered while working in the industry. I am very lucky that I have done my internship at PepsiCo India Holding Pvt. Ltd. in marketing department. During internship I got guidance from both sides, i.e. academic as wall as corporate. Time to time my mentor gave instructions and guidance relating to my work in the market. The basic purpose of summer internship was to have corporate exposure, to learn ways to handle practical situation and to understand corporate culture. My entire internship was focused on sales promotion of PepsiCo products and merchandising. In which my responsibility was……. 

To understand the market of soft drinks.



To analyze direct and indirect competitors of Pepsi. 74



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To promote sales of Pepsi products ( Mountain dew)



To do merchandising (POG, Visi top, Mega promotion, Display etc.)



To audit the premium class outlets.

My most challenging task was Mega promotion of retail outlets and my target was 3 outlets for mega promotion. It was challenging task because of convincing retailers for mega promotion & one mega promotion a retailer have to take stocks worth Rs. 50000150000 and no doubt it was a big deal but I achieved my target.

Summer Training was like an eye opener. In other words internship is a trailer of real corporate world. During internship I learnt that punctuality and hard work is required for sustaining in the market. Apart from this, at the college, the theoretical concepts were more like dictionary with lots of words but after Summer Training, the words have their practical use in corporate life. The things are not exactly done according to the theories in the book, there are certain modifications done according to the requirements of the industry.

My Project gives me the true knowledge of customer relationship concepts and also helped to understand the working environment of the PepsiCo. The major thing, which I found in my whole project, is as follow:



The market share of PepsiCo is more than Coke

 The distribution channel of Pepsi Company is very good.  Advertising policy of Pepsi is better and the company has more focus on

merchandising. 

Retailers are dissatisfied with salesmen behavior so improvement is required in this area.



Company relation with retailers is credit based.

 The Company makes great efforts for promoting sales .

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There are no direct communication between retailers and company.

 There are route incharge but more supervision is required.  Retailers are aware about company scheme and product development.  Promotional schemes are not distributed honestly among retailers.

Recommendations

1. Monthly inspection should be done to find out the problems of retailers. 2. Schemes should be provided to the retailers not to the whole sellers. 3. Accessories should be provided on the basis of sale. 4. Check the selling of whole sellers at lower price than agency. 5. Agency should be more honest in providing benefits to retailers. 6. Salary of sales force should be increased so they may not indulge in malpractices to earn more.

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BIBLIOGRAPHY

BOOKS REFFERED: 

Ramaswami.v.s, Marketing management, macmillion publications , 2009(4 th edition) pg 695-671



Kotler Philip, “Marketing Management” New Delhi, Prentice Hall of India, 2009(13th edition) pg 476-478



Britannica Encyclopedia



Kothari.c.r. Research Methodology, pearson publication, 2007(14th edition)pg 156-170

INTERNET: 

www.google.com



http://www.marketingteacher.com/swot/pepsi-swot.html access on 05/07/11 at 3.30 pm



http://www.pepsico.com/Company/Our-History.html access on 06/07/11 at 4.00 pm



www.pepsicoindia.co.in/ home access on 07/07/11 at 11:00 am



http://www.pepsico.com/Company/Our-Mission-and-Vision.html access on 02/07/11 at 3:30 pm



www.wikipedia.org 77



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http://en.wikipedia.org/wiki/PepsiCo access on 03/07/11 at 4:00pm



http://www.nos.org/Secbuscour/24.pdf access on 04/07/11 at 7.24 pm

NEWS PAPE 

The Hindu



Dainik jagaran

Magazine: Marketing magazine http://www.marketingmagazine.co.uk/bulletin/dailynews/article/1075878/? DCMP=EMC-BreakingnewsfromMarketing

ANNEXURES

A study on sales promotions strategies of PepsiCo Product I am student of PGDM studying in Apeejay School of Management Dwarka and carrying out a survey for our academic project “A study on sales promotions strategies of PepsiCo Product”. So please fill this questionnaire. Your identity would not be revealed and information will only be used for academic purpose. GENERAL INFORMATION ABOUT RESPONDENT:

Outlet’s Name: Outlet’s Address: Contact no:

QUESTIONNAIRE:

Q1. Since how long are you in this business? a) 1-5 years ( ) b) 5-10 years ( )

c) more than 10 years ( )

Q.2 which company’s soft drink you would like to purchase in more quantity? a) Pepsi ( ) b) coke ( ) c) Others ( ) 78



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Q3. Why you want to purchase a particular company’s product in more quantity? a) High Margin ( ) b) More offers ( ) c) Better Supply ( ) d) More facilities ( ) Q4. Do you suggest customers to purchase a certain brand? a) Yes ( ) b) No ( ) Q5. If Yes why? a) High margin ( ) b) more promotional offers ( )

c) quality ( )

d) Others ( )

Q6. Do you think that customer consider promotional schemes while purchasing a particular brand of Soft drinks? b) Yes ( ) b) No ( ) Q7. Which promotional schemes attract more to customer? a) Price off ( ) b) Extra quantity ( ) c) Display promotion ( ) d) lucky draw ( ) Q8. Which of the following promotional schemes you have come across so far? a).Extra quantity ( ) b) scratch card ( ) c) mega display ( ) d) lucky draw ( )

Q9. Which medium do you feel is suitable to promote the various promotional schemes? a) Hording ( ) b) Signboard ( ) c) news paper ( ) d) others ( ) Q10. Is there any existing scheme on the soft drink you are currently using? a) Yes ( )

b) No ( )

Q11. If yes, please specify? a) Price off ( ) b) Extra schemes ( ) c) Monopoly ( ) d) others ( ) Q12. If you get an attractive promotional offer in the product other than of your choice will you switch over? a) Yes ( ) b) No ( ) c) May be ( ) Q13. Give reason for the same? a) cost+quantity ( ) b) quality ( ) c) More benefits ( )

d) season change ( )

Q14. Are you satisfied with schemes given along with products? a) Yes ( ) b) No ( ) Q15. Do you want to improve in the service of the company? a) Yes ( ) b) No ( )

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Shailendra kr Upadhyay ASM, Dwarka New Delhi

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PepsiCo Summer Internship Project

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