2012

Relish the happiness and refresh with the brands of PEPSICO

Department of Commerce
Sri Krishna Arts and Science College
Autonomous College affiliated to Bharathiar University Accredited by NAAC with 'A' Grade An ISO 9001-2008 Certified Institution Coimbatore

Relish the happiness and refresh with the brands of PEPSICO

Done by:

Co-ordinator

In partial fulfillment of the requirements for the awards of the degree of Bachelor of Commerce.

Sri Krishna Arts and Science College

Autonomous College affiliated to Bharathiar University Accredited by NAAC with 'A' Grade An ISO 9001-2008 Certified Institution Coimbatore

DEPARTMENT OF COMMERCE SRI KRISHNA ARTS AND SCIENCE COLLEGE COIMBATORE 641 008

CERTIFICATE This is to certify that the Institutional training report entitled RELISH THE HAPPINESS AND REFRESH WITH THE BRANDS OF PEPSICO submitted to Bharathiar University, in partial fulfilment of the requirements for the award of the degree of Bachelor of Commerce is a record of the bonafide work done by under my supervision and guidance and the report has not formed the basics for the award of any Degree/Diploma/Associateship/other similar title to any candidate of any university.

GUIDE

HOD

PRINCIPAL This report has been submitted to the Viva-voce examination held at Sri Krishna Arts and Science College. Viva-voce conducted on Internal examiner External examiner Place Date : : : : COIMBATORE :

ACKNOWLEDGEMENT
I am greatly indebted to great people who have given their kindly help and valuable co-operation for completing my institutional training. I thank our beloved Principal Mr. K. Sundararaman and I express my gratitude to Dr. P. Baba Gnanakumar, Vice Principal, Sri Krishna Arts and Science College, Coimbatore. Then, I thank our Mrs. T. Usha Rani, Head of Department of Commerce for providing all support and encourage given to complete the training and the report. I express my gratitude to Ms. R. Vennila, M.Com., M.Phil., M.B.A., PGDCA., for her valuable guidance and necessary advices. I am particularly grateful to her for the patience she has shown in going through the manuscript of this report. I thank my training supervisor, Mr. Kumar Natarajan (South Market Unit Finance Planner) PepsiCo India Holdings Pvt. Ltd. who guided and helped me during the entire period of my training and Mr. Paresh Huria, Vice President Supply Chain, South Market Unit, PepsiCo Chennai who gave me the opportunity to do the training in their esteemed organization. I also thank Mr. Shailesh Kuttappan for his motivation he gave me during the training period.

DEPARTMENT OF COMMERCE SRI KRISHNA ARTS AND SCIENCE COLLEGE COIMBATORE 641 008

DECLARATION I hereby declare that the Institutional training report work entitled RELISH THE HAPPINESS AND REFRESH WITH THE BRANDS OF PEPSICO submitted to the Bharathiar University in partial fulfillment of the requirements for the degree of Bachelor of Commerce is an original work and it has not been formed the basis for the award of any Degree, Diploma, Associate ship, Fellowship or other similar title to any other University or body during the period of my study. I hereby declare that the contents in this report are not copied from any websites or books. Even if it is copied, it is done by obtaining the prior permission of the author or respective organizations.

PLACE DATE

: COIMBATORE :

TABLE OF CONTENTS
S.No
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Description
Strategic Business Organizational Dynamics Unique Selling Proposition Quality Policy & Standards Ethical Values Case Study Growth Opportunity SWOT Analysis Specialized Department Snap Shot Annexure

Page No
1 25 41 47 56 60 74 75 78 83 89

COMPANY PROFILE
Pepsico India Holdings Pvt. Ltd.

Industry

Foods Beverages Non Alcoholic

Founded

1989

Headquarters 3 B, D L F Corporate Park, S Block, Qutab Enclave, Phase-3, Gurgaon, Haryana - 122002 Area served Key people All over India Manu Anand (CEO) Revenue Divisions INR 415.5 crores (2011) Pepsico Beverages Frito Lay foods

Module 1 STRATEGIC BUSINESS

ABOUT THE COMPANY

PepsiCo is a world leader in convenient foods and beverages, with 2011 revenues of more than $65 billion and more than 157,000 employees. The company consists, Frito-Lay North America PepsiCo Beverages North America PepsiCo International PepsiCo brands are available in nearly 200 countries and territories and generate sales at the retail level of about $85 billion. Many of PepsiCo's brand names are more than 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001. PepsiCo offers product choices to meet a broad variety of needs and preference -- from fun-for-you items to product choices that contribute to healthier lifestyles. Shareholders PepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange in the United States. The company is also listed on the Amsterdam, Chicago, Swiss and Tokyo stock exchanges. PepsiCo has consistently paid cash dividends since the corporation was founded. Corporate Citizenship At PepsiCo, they believe that as a corporate citizen, they have a responsibility to contribute to the quality of life in their communities. This philosophy is expressed in their sustainability vision which states: PepsiCos responsibility is

1|Page

to continually improve all aspects of the world in which they operate environment, social, economic -- creating a better tomorrow than today. Their vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

HISTORY OF PEPSICO WORLDWIDE Timeline

1965

Description

PepsiCo, Inc. is founded by Donald M. Kendall, President and Chief Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay, through the merger of the two companies. The new company reports sales of $510 million and has 19,000 employees. Major products of the new companies are: Pepsi-Cola Company: Pepsi-Cola (formulated in 1898) Diet Pepsi (1964) Mountain Dew Frito-Lay, Inc.: Fritos brand corn chips Lay's brand potato chips Cheetos brand cheese flavoured snacks (1948)

1966

Doritos brand tortilla chips are introduced. They are destined to become the most popular snack chip in the U.S.

1969

Bold, modern Pepsi-Cola packaging using red, white and blue is introduced. "You've got a lot to live, Pepsi's got a lot to give,"

2|Page

becomes the advertising theme.

Mountain Dew changes its slogan to "Get That Barefoot Feelin' Drinkin' Mountain Dew."

1970

PepsiCo sales pass the $1 billion mark. The company has 36,000 employees.

PepsiCo moves from New York City to new world headquarters in Purchase, N.Y.

Pepsi introduces the industry's first two-litre bottle.

Pepsi is the first company to respond to consumer preference with lightweight, recyclable, plastic bottles.

1971

PepsiCo Chief Executive Officer Donald M. Kendall assumes the position of chairman of the Board of Directors on the retirement of Herman W. Lay. Lay maintains an active role in the corporation until his death December 6, 1982.

Andrall E. Pearson is appointed president of PepsiCo, a position he holds until his retirement in 1984.

1972

Mountain Dew, acquired by Pepsi-Cola in 1964, switches its advertising and package graphics from hillbillies to action-oriented scenes. Sales climb and Mountain Dew will become one of the 10 best-selling soft drinks in the United States.

3|Page

1974

PepsiCo sales pass the $2 billion mark.

Pepsi-Cola becomes the first American consumer product to be produced, marketed and sold in the former Soviet Union.

1975

PepsiCo has 49,000 employees

Pepsi Light, with a distinctive lemon taste, is introduced as an alternative to traditional diet colas.

1977

PepsiCo acquires Pizza Hut Inc.

PepsiCo passes the $3 billion mark in sales.

1979

Opening of PepsiCo Research and Technical Center in Valhalla, N.Y.

PepsiCo reaches $5 billion in sales.

PepsiCo's international snack food operations continue to grow. It is now larger than Frito-Lay at the time of its merger with Pepsi-Cola.

1980

PepsiCo Food Service International (PFSI) is formed to focus on overseas development of restaurants.

PepsiCo now has 111,000 employees.

Pepsi is #1 in sales in take-home market.

1981

PepsiCo passes $7 billion in sales.

4|Page

Tostitos brand crispy round tortilla chips are introduced by Frito-Lay.

1983

PepsiCo is restructured to focus on its three core businesses: soft drinks, snack foods and restaurants. Transportation and sporting goods businesses are sold.

Slice and Diet Slice, the first major soft drinks with fruit juice, are introduced.

Herman W. Lay Award of Excellence established at Frito-Lay to recognize world-class selling excellence.

1985

PepsiCo is now the largest company in the beverage industry. The company has revenues of more than $7.5 billion, more than 137,000 employees.

Frito-Lay expands into new headquarters in Plano, Texas.

PepsiCo's first line of sweet snacks, Sonrics, is added in Mexico.

1986

Wayne Calloway becomes chairman of the Board of Directors and chief executive officer in May when Donald M. Kendall retires.

The corporation is reorganized and decentralized. Beverage operations are combined under PepsiCo Worldwide Beverages; snack food operations are combined under PepsiCo Worldwide Foods.

PepsiCo purchases Kentucky Fried Chicken, the leader in the quick service chicken market.

5|Page

PepsiCo purchases 7Up International, the third largest franchise soft drink operation outside the United States.

PepsiCo passes $10 billion in sales.

PepsiCo is listed on the Tokyo stock exchange.

Chester Cheetah makes his prime-time television debut for Frito-Lay with a fully animated commercial for Cheetos cheese flavoured snacks.

1988

Pepsi-Cola International enters a landmark joint venture agreement in India.

Worldwide retails sales of Doritos brand tortilla chips hit $1 billion. It is the world's largest selling snack chips brand.

1990

PepsiCo acquires a controlling interest in Gamesa, Mexico's largest cookie company.

PepsiCo signs the largest commercial trade agreement in history with the Soviet Union.

1991

Pepsi-Cola forms joint venture with Thomas J. Lipton Co. to develop and market tea-based drinks.

Frito-Lay launches Sunchips, its first multigrain snack.

Frito-Lay introduces Cheetos Paws.

6|Page

1993

Both PepsiCo beverages and snack food operating profits pass the $1 billion mark.

Frito-Lay introduces Baked Tostitos brand Tortilla Chips.

Pepsi-Cola International introduces Pepsi Max, a soft drink with unique blend of sweeteners that delivers maximum cola taste in a no-sugar product.

Pepsi-Cola introduces Aquafina bottled water into test market.

1994

Pepsi-Cola is first major soft drink maker to begin producing and distributing its product in Vietnam.

Pepsi-Cola International acquires Indian company, its first big bottling plant in Bombay.

China gets cheese-less Cheetos, the first time a major snack-food brand will be produced in China for Chinese tastes.

PepsiCo sales reach $30.4 billion. There are 470,000 employees worldwide, making PepsiCo the third largest employer.

1995

Frito-Lay aggressively expands its low/no-fat snack segment. Baked Lays is introduced.

PepsiCo will introduce Lay's brand potato chips in 20 markets throughout the world. PepsiCo is on-line at http://www.pepsico.com

7|Page

1997

Pepsi-Cola North American bottling operations become a separate unit called The Pepsi-Cola Bottling Co.

National roll-out of Aquafina bottled water.

Frito-Lay announces plans to buy the 104-year-old snack, Cracker Jack, a candy-coated mix of popcorn and peanuts from Borden Foods Corp.

Frito-Lay introduces Doritos 3D's Tortilla Chips, a triangle-shaped chip.

1998

Pepsi-Cola introduces two-liter plastic bottle with built-in "grip handle" that makes it easier to grip and pour.

Pepsi introduces new look called the "Globe" which prominently features a 3-dimensional Globe against a blue ice backdrop.

PepsiCo acquires Tropicana Products from Seagram Company Ltd., the biggest acquisition ever undertaken by PepsiCo. Its major brand is Tropicana Pure Premium Juices.

1999

In March, The Pepsi Bottling Group, the world's largest Pepsi bottler, begins trading on the New York Stock Exchange. It is listed under the symbol PBG. The $2.3 billion public offering is among the biggest initial public offerings in stock market history. Lipton introduces Iced Tea Green Tea with Honey and Diet Peach.

Tropicana juices are entering the huge India market for the first time.

8|Page

2001

Indra K. Nooyi was elected as a director and also became the president of PepsiCo.

Mirinda is launched in Italy.

PepsiCo merges with The Quaker Oats Company, creating a $25 billion food and Beverage Company focused on the rapidly growing consumer demand for convenience.

2002

Gatorade introduces new Gatorade ICE in three flavours- Orange, Lime and Strawberry.

PepsiCo reorganizes to unite all North American beverage operations, including Pepsi-Cola, Tropicana and Gatorade, into one new division -- PepsiCo Beverages and Foods North America.

2003

Pepsi-Cola launches Sierra Mist nationally.

Pepsi announces four-year sponsorship agreement with the UK Football Association.

Frito-Lay announces new line of snacks made with organic ingredients called "Natural Snacks."

Pepsi-Cola trademark turns 100 years old.

Pepsi Vanilla is launched in the United States.

Gatorade introduces Gatorade Endurance Hydration Formula -- a specialized sports drink to meet the needs of endurance athletes.

9|Page

2006

Quaker Snacks Unveils Breakfast Cookies.

Doritos unveils new packaging, including an updated logo.

PepsiCo Launches Pepsi Limon in Peru.

PepsiCo India re-launches Mirinda.

SoBe Launches New SoBe Life Water.

2007

PepsiCo signs Maria Sharapova for International endorsement of Gatorade and Tropicana

Ruffles unveils new packaging to reflect its switch to 100% pure sunflower oil

Aquafina launches Aquafina Alive - a low calorie, vitamin-enhanced water beverage

2008

Pepsi to take over New Year's Eve 2009 in New York City's Time Square with new packaging design and messages

SoBe

Lifewater

launches

first-ever,

zero-calorie,

naturally-

sweetened enhanced water in the US

PepsiCo honoured by Environmental Protection Agency as water efficiency leader Pepsi Malaysia wins bronze award at the Malaysian Effie Awards for its marketing and advertising achievements

10 | P a g e

2009

PepsiCo is named to the 'Best Companies for Multi Cultural Women' list by Working Mother magazine SoBe Lifewater introduces two new zero-calorie flavours Acai Fruit Punch and Mango Melon

Pepsi celebrates its 75th anniversary in Canada

PepsiCo creates Baked Snacks North America

Business Unit to meet consumers interest in more nutritious snacks and foods

PepsiCo opens new Russian beverage plant in Domodedovo, the largest bottling plant in PepsiCo's global system

PEPSICO INDIA
PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab government- owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. Others claim that firstly Pepsi was banned from import in India, in 1970, for having refused to release the list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on the market shortly afterwards. These controversies are a reminder of "India's sometimes acrimonious relationship with huge multinational companies." Indeed, some argue that PepsiCo and The Coca-Cola Company have "been major targets in part because they are well-known foreign companies that draw plenty of attention." PepsiCo has grown to become one of the countrys leading food and beverage companies. One of the largest multinational investors in the country,

11 | P a g e

PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India. PepsiCo India and its partners have invested more than U.S. $1 billion since the company was established in the country. PepsiCo provides direct and indirect employment to 185,000 people including suppliers and distributors. PepsiCo India Holdings Pvt. Ltd. operates through its subsidiaries including Pepsi Foods Ltd, Frito - Lay India, and Tropicana Beverages Company. The company, through its subsidiaries manufactures, bottles, and exports fruit juices and carbonated beverages and packaged snacks such as Lays, Ruffles, Fritos, and Cheetos. PepsiCo India is based in Gurgaon, India.

BEVERAGES SEGMENT
PepsiCo nourishes consumers with a range of products from treats to healthy eats that deliver joy as well as nutrition and always, good taste. PepsiCo Indias expansive portfolio includes iconic refreshment beverages. The multifarious products of Pepsico in beverages segment are:

Beverage Brands 1. PEPSI

Pepsi has become a friend to youth and youth culture. Over generations, youngsters have grown up with Pepsi and have shared an emotional connect with it unlike with any other cola brand. Be it parties, hangouts with friends, or just another day at home, a day is never complete without the fizz of Pepsi! Pepsi, cricket and Bollywood have been joined at the hip since the colas entry into India. Shah Rukh Khan, Sachin Tendulkar, Saif Ali Khan, Amitabh

12 | P a g e

Bachchan, Kareena Kapoor, Priyanka Chopra, Virender Sehwag, M.S. Dhoni, John Abraham, Ranbir Kapoor and Deepika Padukone are some of the celebrities who have endorsed Pepsi. The Pepsi My Can is undoubtedly the most popular cola pack of all time. It is not just a pack but a definitive style. TAGLINE: LIVE FOR NOW

2. MIRINDA
Mirinda is an international soft drink brand from Spain that was launched in India in 1991. Mirinda has always been about the irresistible taste of oranges that is now synonymous with the brand. The message was successfully communicated through their 1996 Mirinda Men campaign, the 2000 Taste Pe Atka, Mirindaaaa campaign and the Taste Aisa Chaye Character Fisla Jaye campaign of 2003. When we think Mirinda, we think orange. But Mirinda has also launched many other fruit flavours. Mirinda Lemon was launched in 1998 with the memorable Zor Ka Jhatka Dheere Se Lage campiagn starring Amitabh Bachchan and Govinda. Mirinda has also launched innovative flavors like Apple and Batberry. Mirinda evolved to evoke not just great taste but a lot of fun as well. This was conveyed through another spate of memorable campaigns Fun Ka Naya Mantra, Mirindaaaaa starring Asin and Zayed Khan in 2007 and the Pagalpanti Bhi Zaroori Hai campaign with Asin in 2008. TAGLINE: WEEKEND AAYE THO PAGALPANTI CHAYE

13 | P a g e

3. 7UP
7UP, the refreshing clear drink with a natural lemon and lime flavour was created in 1929. 7UP was launched in India in 1990 and its international mascot Fido Dido was used for advertising in 1992 to position the brand as a cool drink for youngsters. Fido became an instant hit with his trendy look, laid-back attitude and unconventional take on life. During the brands early years in India, 7UP gained market leader status in the lemon lime category by being one of the first to be nationally distributed besides being marketed as a healthier alternative to other soft drinks.

7UPs ambition as a brand has been to capture and own the lemon refreshment territory within the clear lime category. Lemon has proven to be a clear and relevant differentiator for the brand. Further, the emotional connect with the idea of upliftment through refreshment has led to an impressive payoff for the brand. After establishing itself as The Lemon Drink in January 2009, 7UP has continued to build on the theme of mood upliftment with its new tagline Mood Ko Do Lemon Ka Lift. TAGLINE: DIL BOLE I FEEL UP

4. GATORADE
Gatorade, the Worlds No.1 Sports Drink, was born on the field of sport. Gatorade was launched in India in 2004 and over the years, has become an integral part of the kitbags of many leading sportspersons. Gatorade has been tried and endorsed

14 | P a g e

in India by the top sports stars and professionals, including Sachin Tendulkar, Irfan Pathan, Md. Kaif, S. Sreesanth Ramji Srinivasan and Javagal Srinath. Gatorade is an optimal mix of water,

carbohydrates and essential mineral salts that get absorbed instantly to rehydrate, replenish and refuel like no other beverage can. Gatorade quickly restores what the body loses through sweat. Its scientific formulation instantly helps the body restore essential minerals, salts, water and energy lost through action and exercise. Gatorade thus helps one to stay Stronger for Longer. It contains less than half of the sugar that is normally found in energy drinks or soft drinks and even juices. TAGLINE: REHYDRATES REPLENISHES RECHARGES

5. NIMBOOZ
Nimbooz is a great tasting product. It has capitalized on the existing familiarity with and high consumption of unpackaged / home-made nimbu pani. It has remained true to its authentic Indian Identity by using the traditional Matka (Earthen Pot) and Squeezer in the manufacturing process. It is just like home-made nimbu pani. You can enjoy its natural and delicious lemony refreshment anywhere you go. The product is available in three convenient formats, 350ml PET, 200ml RGB and 200ml Tetra at the remarkable price points of Rs15, Rs 10 and Rs 10 respectively. TAGLINE: DIL BOLE I FEEL UP

15 | P a g e

6. SLICE
Slice was launched in India in 1993 as a refreshing mango drink and quickly went on to become a leading player in the category. In 2008, Slice was re-launched with a winning product formulation that made consumers fall in love with its taste. With new pack graphics and clutter-breaking advertising, Slice has built a powerful appeal. With the launch of the Aamsutra campaign in 2008, its winning taste and appealing pack graphics, Slice created a great deal of excitement in its category and celebrated the indulgence in mangoes like no other brand had done before. While other players have portrayed the mango as a simple and innocent fruit, Slice celebrates the sheer indulgence and

sensuality involved in consuming a mango. TAGLINE: PURE MANGO PLEASURE

7. MOUNTAIN DEW
It is a soft drink that exhilarates like no other because of its active, high-energy, extreme citrus taste. The idea of daring, challenges, a can do attitude, adventure and exhilaration are deeply entrenched in its brand DNA. The brand has always celebrated the bold, adventurous and rebellious spirit of youth. This is reflected in the highadrenaline advertising of the brand and its connection to outdoor adventure. TAGLINE: DARR KE AAGE JEET HAI

16 | P a g e

8. TROPICANA
Tropicana has matured into one of the most respected beverage brands. Widely regarded as the world's no. 1 juice brand, it is today available in 63 countries. Since 1998, Tropicana has been owned by PepsiCo, Inc. Tropicana continues to select the best fruit to manufacture high-quality juices and original products, pioneer innovative processes and explore new markets for its products. It is committed to fostering healthy lifestyles by ensuring that its products are naturally nutritious and provide the daily benefits that one needs. In India, Tropicana comes in two categories: 100% Juices (sold as Tropicana 100%) and Juice Beverages & Nectars (sold as Tropicana). TAGLINE: TAP INTO NATURE

9. AQUAFINA
With its unique purification system and great taste, Aquafina soon became the bestselling brand in the country. In India, Aquafinas journey began with its launch in Bombay in 1999 and it was rolled out nationally by 2000. On the strength of its brand appeal and distribution, Aquafina has become one of Indias leading brands of bottled water in a relatively short span of time. Bottled across India in 19 plants, Aquafina is available across more than half a million outlets. Catering to diverse consumer needs and

17 | P a g e

occasions, it is available in various pack sizes like 300ml, 500ml, 1 litre and 2 litre bottles and in bulk water jars of 25 litres. Aquafina is the face of PepsiCos water conservation initiatives and builds awareness about PepsiCos efforts to replenish and restore the water table through its pack labels. TAGLINE: THE PUREST PART OF YOU

SNACKS SEGMENT
PepsiCos foods company, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay products are free of trans-fat and MSG. It manufactures Lays Potato Chips; Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands. The companys high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers. The group has built an expansive beverage and foods business. To support its operations, PepsiCo has 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. In addition to this, PepsiCos Frito Lay foods division has 3 state-of-the-art plants. PepsiCos business is based on its sustainability vision of making tomorrow better than today. PepsiCos commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers. PepsiCo India's agri-partnerships with farmers help farmers across the country grow and earn more. PepsiCo Frito Lays core products are:

1. LAYS
Lays, the worlds largest and favourite snack food brand, has steadily established itself as an indispensable part of Indias snacking culture since its launch in 1995. With its irresistible taste, international and Indian flavours and youth-centric imagery, Lays has established itself as a youth brand and continues to grow in the hearts and mind of its consumers.

18 | P a g e

Over the years, Lays has become known for its engaging and innovative promotions and campaigns. The brand known for its No one can eat just one campaign has moved its positioning to Whats the programme? making Lays the main food of every programme Saif Ali Khan has been the face of the brand for over five years, and has recently been joined by the captain of the Indian cricket team M.S. Dhoni. Both embody the youthful energy and appeal of the brand. TAGLINE: BE A LITTLE DILLOGICAL

2. KURKURE
Kurkure has constantly re-invented itself to sustain its relevance to Indian culture and the Indian ethos. Not only does Kurkure provide an inimitable taste and superior quality, it has also brought fame and happiness to many through its Chaitime-achievers face on pack initiative. It is made with trusted kitchen ingredients: 100% vegetarian. All the raw materials used in Kurkure comply with the Prevention of Food Adulteration Act and rules that govern the manufacture, distribution and sale of Kurkure. All Kurkure ingredients are used daily in households for the preparation of various edible items. Kurkure Desi Beats: Kurkure Desi Beats is an exciting new range of crunchy triangular snacks in irresistible Indian flavours. This newly launched youth-oriented sub-brand personifies their inherent Desi spirit and gives one the license to be Desi. Desi

19 | P a g e

Beats celebrates the contemporary Indian youth who straddles both tradition and modernity and is confident of his Indian identity. TAGLINE: TEDHA HAI PAR MERA HAI

3. ALIVA
With the launch of Aliva, Frito-Lay India aims to create a new segment of great tasting baked savoury crackers. After Kurkures

enormous success, Aliva marks Frito-Lay Indias creation of yet another category, borrowing ingredients and textures from

biscuits, and flavours from namkeens. The Aliva product range has been developed in India, specifically for the Indian consumer and is a significant step ahead in the companys journey of portfolio transformation, providing healthier and tasty snacking options in line with local consumer needs. Aliva is available in four distinct chatpate Indian flavours, created with the Indian palate in mind, Special Pindi Masala Tomato & Roasted Spices Mint Flavour with Herbs Original Salted TAGLINE: CHATPATE CRACKERS WITH WHEAT AND DAAL

4. CHEETOS
Cheetos is a brand of cheese-flavored cornmeal snack made by Frito-Lay, a subsidiary of PepsiCo. The initial success of Cheetos was a contributing factor to the merger between The Frito Company and H.W. Lay & Company in 1961 to form

20 | P a g e

Frito-Lay. In 1965 Frito-Lay became a subsidiary of The Pepsi-Cola Company, forming PepsiCo the current owner of the Cheetos brand. Cheetos have been the subject of public and media attention on multiple occasions due to the unpredictable shapes that form during the

manufacturing process. Cheetos have been found in shapes which resembled the appearance of popular or historical figures. A single Cheeto described as being in the shape of Michael Jackson doing the Moonwalk Dance sold for

$35.18 on eBay.in the summer of 2009, attracting national media coverage in the U.S. TAGLINE: DANGEROUSLY CHEESY

5. UNCLE CHIPPS
Launched in 1992, Uncle Chipps was a pioneer in branded potato chips in India. The brand was acquired from Amrit Agro Ltd. in 2000 by FritoLay India. After the acquisition, the hugely popular brand has grown from strength to strength and has built a powerful connection with consumers. Uncle Chipps is warm, playful, lively, companionable and traditional at heart, just like the good-natured uncle everyone in the family relates to and no family gathering is complete without. The production process begins on farms in select regions across India where the best potatoes are grown specifically for Frito-Lay to make great-tasting chips. Upon

21 | P a g e

the potatoes arrival at plants, it can take as little as 24 hours for the chips to be made. Lays Chips are made using the following simple process:

Wash the potatoes are thoroughly bathed in water. Peel next, we gently peel the skin off the potatoes, even as the flavour remains intact.

Slice the potatoes are thinly sliced and rinsed again to remove any remaining starch.

Cook the slices are cooked to a crispy crunch in edible vegetable oil.

Season finally, the chips are topped off with a mouth watering sprinkle of salt or seasoning.

TAGLINE: BOLE MERE LIPS, I LOVE UNCLE CHIPPS

6. QUAKER OATS
Quaker Oats are Australian oats. They meet stringent quality control standards for raw grains and finished oatmeal in Australia. All subsequent processes are conducted according to the internal quality control protocol of Frito-Lay, which include: Checks and measures for receipts and clearances laid down by Quaker globally. Strict hygiene and sanitation standards for all equipment, processes and facilities. Packed under conditions of temperature, hygiene. Micro-biological testing of ingredients / products on receipt at the factory and during final clearance humidity and controlled extreme

22 | P a g e

 All facilities for bulk storage, transfers, and packing and clearance are under surveillance for infestation as per Frito-Lays standards TAGLINE: SAY GOOD MORNING TO YOUR HEARTS

7. LEHAR NAMKEEN
Lehar was launched in 1996, with innovative small packs and traditional flavours. The brand positioned itself by emphasizing its irresistible taste and using modern imagery. Lehar was re-launched in 2006 and positioned itself using the plank Taste zyaada kyunki oil taza. It promised to deliver good taste through the use of fresh oil in the manufacturing process.

TAGLINE: QUALITY IN EVERY BITE All the products contain voluntary nutritional labelling on their packets PepsiCo's involvement in Indian agriculture stems from its vision of creating a costeffective, localized agri-base in India by leveraging farmers access to world class agricultural practices. PepsiCo India worked with farmers and State Governments to improve agri sustainability, crop diversification and raise farmer incomes. PepsiCo helped transform the lives of thousands of farmers by helping them refine their farming techniques and raise farm productivity, and customized solutions to suit specific geographies and locations. The most ambitious project is a joint program, launched in 1989, between PepsiCo India, the Punjab Agriculture University (PAU) in Ludhiana and Punjab Agro Industries Corporation (PAIC) in Chandigarh. The program focuses on evolving agricultural practices to help Punjab farmers produce internationally competitive products. Over the last five years, PepsiCo has also collaborated with the Thapar Institute of Technology to develop a high quality potato seed program.

23 | P a g e

PepsiCo was a pioneer in the concept of contract farming under which the company transfers agricultural best practices and technology and procures the produce at a guaranteed price. To support the initiative, PepsiCo set up a 27-acre research and demonstration farm in Punjab to conduct farm trials of new varieties of tomato, potato and other crops. The program, which includes seed production, has successfully evaluated the following crops, Several varieties of basmati rice more than 200 varieties and hybrids of chilli 25 varieties and hybrids of corn More than 60 varieties of peanut More than 100 varieties and hybrids of tomato. Additionally, the development of new tomato varieties has helped increase total annual production of tomato varieties from 28,000 tons to over 200,000 tons in Punjab. Yields have more than tripled from 16 tons to 54 tons per hectare.

24 | P a g e

Module 2 ORGANIZATIONAL DYNAMICS

Organizations are made up of people, people's behaviour makes up organizational behaviour, managers are people, strategies address the organization, and strategies require operational execution. Organizational dynamics refers to the patterns of movement over time in the interactions between the people who are the organization, the community of practice. PepsiCo's business strategy and affairs are overseen by their Board of Directors, which is comprised of one executive director and twelve independent outside directors. Only independent outside directors make up their three standing Board Committees such as Nominating and Corporate Governance, Audit, Compensation

CHIEF EXECUTIVE OFFICER

Indra Krishnamurthy Nooyi is an Indian American business the Chairman and Chief executive and Executive

Officer of PepsiCo, the second largest food and beverage business in the world by net revenue. According to Forbes, she is

consistently ranked among World's 100 Most Powerful Women. Nooyi joined PepsiCo in 1994 and was named president and CFO in 2001. Nooyi has directed the company's global strategy for more than a decade and led PepsiCo's restructuring, including the 1997 divestiture of its restaurants into Tricon, now known as Yum! Brands. Nooyi also took the lead in the acquisition of Tropicana in 1998, and merger with Quaker Oats Company, which also brought Gatorade to PepsiCo. In 2007 she became the fifth CEO in PepsiCo's 44-year history.

25 | P a g e

According to BusinessWeek, since she started as CFO in 2000, the company's annual revenues have risen 72%, while net profit more than doubled, to $5.6 billion in 2006. Nooyi was named on Wall Street Journal's list of 50 women to watch in 2007 and 2008, and was listed among Time's 100 Most Influential People in The World in 2007 and 2008. Forbes named her the #3 most powerful woman in 2008. Fortune ranked her the #1 most powerful woman in business in 2009 and 2010. On the 7th of October 2010 Forbes magazine ranked her the 6th most powerful woman in the world.

ADDITIONAL BOARD OF DIRECTORS

Shona L. Brown Senior Vice President, google.org of Google Inc.

Ian M. Cook Chairman, President and Chief Executive Officer, ColgatePalmolive Company

Dina Dublon Former Vice President & CFO, JP Morgan Chase & Co.

Victor J. Dzau, M.D. Chancellor for Health Affairs, Duke University and President & CEO, Duke University Health System

26 | P a g e

Ray L. Hunt Chairman of the Board, President and Chief Executive Officer of Hunt Consolidated, Inc.

Alberto Ibargen President & Chief Executive Officer, John S. and James L. Knight Foundation

Sharon Percy Rockefeller President & Chief Executive Officer, WETA Public Stations

James J. Schiro Former Chief Executive Officer, Zurich Financial Services

Lloyd Trotter Managing Partner, GenNx360 Capital Partners

27 | P a g e

Daniel Vasella Chairman of the Board, Novartis AG

Alberto Weisser Chairman & Chief Executive Officer, Bunge Limited

The independent outside directors who make up the three outstanding Board Committees and their members are:

Nominating Members

and

Corporate

Governance

Committee

Ray L. Hunt, Chair Victor J. Dzau, MD Sharon Percy Rockefeller Lloyd G. Trotter Daniel Vasella James J. Schiro

Audit Committee
Shona L. Brown Dina Dublon, Chair Ian M. Cook Alberto Ibargen Alberto Weisser

28 | P a g e

Compensation Committee
Lloyd G. Trotter, Chair Victor J. Dzau, MD Ray L. Hunt Sharon Percy Rockefeller Daniel Vasella James J. Schiro

29 | P a g e

Organisation structure of PepsiCo

PepsiCo

PepsiCo America Foods (PAF)

PepsiCo America Beverages (PAB)

PepsiCo International (PI)

Europe & UK

AMEA

India

China

Middle East

Africa

Food Business Unit

Beverage Business Unit

North & East Market Unit

West Market Unit

South Market Unit

30 | P a g e

PepsiCo Inc. is fractioned up into three companies. They are: 1. PepsiCo America Foods (PAF) 2. PepsiCo America Beverages (PAB) 3. PepsiCo International (PI)

Now, the focal point is only on the PepsiCo International (PI). It is mainly carved up into four nations. They are Europe, UK, Africa, Middle East Asia. These four nations are sorted as: Europe with UK Africa & Middle East Asia.

The AMEA (Africa Middle East Asia) is separated into four regions. They are: 1. India 2. China 3. Middle East 4. Africa

Being India the deep focus of this project. India has two business units namely, Food Business Unit Beverages Business Unit In Beverages Business Unit, I worked in the South Market Unit which is located in Chennai.

31 | P a g e

Beverages Business Unit Organisation Chart

BEVERAGES BUSINESS UNIT

SOUTH MARKET UNIT

NORTH & EAST MARKET UNIT

WEST MARKET UNIT

LOCATIONS

PLANTS

LOCATIONS

PLANTS

LOCATIONS

PLANTS

HYDERABAD

MAMANDUR

UTTAR PRADESH

PANIPET

MAHARASHTRA

AURANGABAD

TAMIL NADU

MADURAI

NORTH EAST

BAZPUR

GUJARAT

BHARUCH

KERALA & KARNATAKA

PALAKKAD

PUNJAB

RAJASTHAN

CHEMBUR

NEELAMANGA LAM

WEST BENGAL

ROHA

SANGAREDDY

MAHUL

32 | P a g e

The Beverages Business Unit Flowchart explicates distinctly that it is majorly carved up into three regions namely, 1. South Market Unit with Headquarters in Chennai 2. North & East Market Unit with Headquarters in Gurgaon 3. West Market Unit with Headquarters in Mumbai

SOUTH MARKET UNIT This is the place in which I underwent my institutional training. The Regions which cross under South Market Unit are as follows and these also form the unit as such: 1. Hyderabad 2. Tamil Nadu 3. Kerala & Karnataka

In addition to the units the south Market Unit also has manufacturing plants which are situated in: Mamandur Madurai Neelamanglam Palakkad Sangareddy

NORTH & EAST MARKET UNIT The regions which cross under North & East Market Unit are as follows and these also form the unit with Uttar Pradesh In the North & East Market Unit, the plants are situated in: Jainpur Bazpur

33 | P a g e

WEST MARKET UNIT The regions which cross under West Market Unit are as follows and these also form the unit as such: Maharashtra Gujarat

In the West Market Unit, the plants are situated in: Aurangabad Bharuch Chembur Roa Mahul

34 | P a g e

Food Business Unit Organisational Chart

Food Business Unit

Sales Regional Office

Manufacturing Locations

North Market Unit

East Market Unit

West Market Unit

South Market Unit

Channo ( Near Patiala )

Delhi, Punjab, Haryana, J&K, HP, Uttarakhand, UP

Maharashtra, MP, Chhattisgarh Gujarat, Rajasthan

Ranjangaon (Near Pune)

West Bengal, Jharkhand Orissa, Bihar, NE States & Sikkim

Andhra Pradesh, Tamil Nadu, Kerala, Karnataka

Sankrail (Near Kolkata)

Faridabad

Barabanki

Baroda

Erode

Bangalore

35 | P a g e

Food Business Unit is sub-divided into: Sales regional office Manufacturing locations.

The Sales Regional Office is further divided into four wings. They are: East Regional Office with headquarters in Kolkata West Regional Office with headquarters in Mumbai North regional Office with headquarters in Gurgaon South Regional Office with Headquarters in Chennai

East Regional Office covers the states: 1. 2. 3. 4. 5. 6. West Bengal Jharkand Orissa Bihar NE States Sikkim

West Regional Office covers the states: 1. Maharashtra 2. Madhya Pradesh 3. Chhattisgarh 4. Gujarat 5. Rajasthan

North Regional Office covers the states: 1. Delhi 2. Punjab 3. Haryana 4. J&K 5. HP 6. Uttarakhand

36 | P a g e

South Regional Office covers the states: 1. Andhra Pradesh 2. Tamil Nadu 3. Kerala 4. Karnataka

The manufacturing location is further divided into plant and co-packer.

The plants are situated at: 1. Channo (near Patiala) 2. Ranjangaon (near pune) 3. Sankrail (near Kolkata)

The co-packer are situated at: 1. Faridabad (NCR) 2. Barabanki(near lucknow) 3. Baroda (Gujarat) 4. Erode(Tamil Nadu) 5. Bangalore.

37 | P a g e

India Region Executive Committee

Region Head & Bev. CEO

Executive Assistant

BUGM Foods

VP Bottling Operations

VP Marketing

VP Marketing

VP Sales

VP Operations

VP Operations

VP Innovation

Human Resource

CPO

CFO

Region VP External Affairs

VP Technology

Region CFO

Region VP Legal

VP Communication Capabilities

38 | P a g e

PepsiCo Indian Region Executive Committee Members are as following. The Region head and the beverages Chief Executive Officer being Mr. Manu Anand, whereas the Executive Assistant is Mr.Primrose.V.

Under the region head there are various heads and departments. The various departments and their heads are:

Mr.Gautham - Business Unit General Manager for FOODS

The Beverages Department considers: 1. Mr.Praveen Someshwar 2. Mr.Punitalal 3. Mr.Pradeep Sardana 4. Mrs.Geetu Verma Vice President Bottling Operations Vice President Marketing Beverages Vice President Operations Vice President Beverages Innovation.

The PO1 department considers: 1. Mr.Pavan Bhatia 2. Mr.Vivek Bharati 3. Mr.Kimsuka Narasimhan 4. Mr.Purvez Billimoria Region CPO Region VicePresident External Affairs Region Chief Financial Officer Region Vice President Legal

The Division department considers: 1. Mr.Tanmaya vats Vice President Communication capabilities 2. Mrs.Sucheta Govil Vice President.

The business Unit General Manager handles various people under different departments. They are: 1. Mrs.Deepika Warrier 2. Mr.Satyavrat pendharkar 3. Mr.Rajiv wakhle 4. Mr.Pradeep jain Vice President Marketing Vice President sales Vice President Operations Chief financial officer

39 | P a g e

Module 3 - UNIQUE SELLING PROPOSITION

A unique selling proposition (USP) is a description of the qualities that are unique to a particular product or service and that differentiate it in a way which will make customers purchase it rather than its rivals. Uniqueness is rare, and coming up with a continuous stream of products with unique features is, in practice, extremely difficult. Philip Kotler says that the difficulty firms have in creating functional uniqueness has made them focus on having a unique emotional selling proposition (an ESP) instead of a USP. PepsiCos USPs are:

Localization in Key Markets Consumer Satisfaction Healthier Options Localization in Key Markets
As a consumer-focused company, they want to enrich the lifestyles of their consumers while increasing the local relevance of the products they make. they recognize the need to understand and respect local cultures, rituals, patterns and intake gaps when developing delicious-tasting convenient and affordable products for consumers in that market. For example, in India, they have introduced a whole-grain product for breaking the fast around the observance of Ramadan. In China, they have introduced congee (with whole grains and reduced sodium) as a locally relevant breakfast offering to add nutritional value to the Chinese diet, and they're introducing products made from grains in sub-Saharan Africa as a change from those made with plain flour. Examples of products adapted to local tastes include: India A grain-based product called Kurkure, a tea-time snack called Aliva and a high-nutrition snack made from lentils called Masala Munch.

40 | P a g e

 Mexico A quesadilla-shaped and flavoured tortilla chip called Fritos Dobladitas Russia Locally relevant flavours of Lay's potato chips, such as crab and mushroom; China Blueberry and cucumber varieties of Lay's chips/Congee.

Consumer Satisfaction
All PepsiCo divisions conduct regular, qualitative and quantitative consumer research to understand the needs of people in the markets where they operate. Consumer insights are translated into innovative new product improvements, new product ideas and marketing initiatives. They leverage third-party benchmarking tools from the U.S.'s Kantar Retail surveys and globally through the Advantage Group International survey. PepsiCo has created Centres of Excellence (COEs) to ensure a high quality of customer service. One of their most active COEs is focused on customer insights, helping to quantify and provide innovative solutions for their customers' most challenging issues, including consumer shopping habits, macro consumption trends and retailer competitive dynamics.

Healthier Options
Sodium Reduction in Foods Across PepsiCo's global portfolio, they have made a significant reduction in average sodium levelsall while maintaining great taste in their products. This progress will be accelerated over the coming years in order to achieve their reduction commitment. Aggressive efforts have been taken in North America, Europe and Latin America to make significant reductions in some of their popular, high-volume snack products, as well as the company's advances in developing new salt crystal

41 | P a g e

technologywhich maintains the salt flavor that consumers like but with less sodium actually usedthey believe they are on track to meet this reduction target. Examples of their progress include: In the U.K., Walkers has significantly reduced sodium by 25 to 55+ percent in its products since 2005, while continuing to be the country's number-oneselling brand of crisps. In the U.S., Frito-Lay developed "Lightly Salted" versions of Fritos corn chips and Rold Gold Tiny Twist pretzels in 2010, each with less than 50 percent of the sodium of their original versions. In Canada, Quaker instant oats products have been reformulated with a 1525 percent reduction in salt. In Brazil, they reduced sodium in one of their most popular snacks, Fandangos, by more than 30 percent. Added Sugar Reduction in Beverages Reducing the amount of added sugar in their products has been steady in recent years. Despite strong consumer taste preferences for sugar and complex regulatory processes for alternatives, they have made progress toward achieving their initiatives. There have been some considerable successes. Pepsi Max, for example, is the company's 19th billion-dollar mega-brand and is the fastest-growing beverage internationally with a "no sugar" label. Pepsi Max, containing no sugar but with a full flavor, is their fastest-growing brand internationally since 2008, with significant product launches across the Middle East and China in 2010. Pepsi ONE, with only one calorie, is another successful brand; Pepsi Next, with 60 percent less sugar, will launch in test markets in the U.S. in late 2011; and through their continued R&D investment they will develop additional lower-calorie products.

42 | P a g e

 Saturated Fat Reduction in Foods After a major undertaking to eliminate nearly all trans fats from their U.S. product portfolio and many of their global products, they are now committed to reducing the saturated fat content of their key global food brands. Since all regions and countries offer different dietary approaches and agricultural conditions, they expect to continue to make progress with partnerships to develop local crops and innovative solutions meeting local tastes that will help us reduce saturated fat levels in their products. In India, for example, the switch to rice bran oil from palm oil on such leading products as Lay's potato chips and Kurkure namkeen, a traditional Indian afternoon tea snack, has reduced saturated fat levels by an average of almost 40 percent across the portfolio. In China, increased sales of their Quaker products have helped drive a 10 percent decrease in saturated fat per serving across their foods portfolio. And in Russia, saturated fat levels have been reduced by almost 13 percent since 2006 through the introduction of lower-saturated-fat versions of Cheetos and the more than 300 percent growth of low-saturated-fat Hrusteam products. In 2010, they also launched versions of Cheetos and Fandangos in Brazil, made with heart-healthier sunflower oil. The Move to High-Oleic Sunflower Oil As part of their continuing relationship with the Inter-American Development Bank (IDB), in early 2011 PepsiCo and IDB announced a landmark partnership to spur social and economic growth in 26 countries across Latin America and the Caribbean. The partnership's inaugural project was launched in Mexico with an agriculture initiative that will significantly expand commercial sunflower

productiona once-thriving commercial crop that has diminished in recent years while providing loans and a source of income for some 850 Mexican farmers and their families. PepsiCo established supply with approximately 90 farmers,

43 | P a g e

increasing production from 45 tons in 2009 to 180 tons in 2010. For PepsiCo, the sunflowers provide a source of heart-healthy HOSO for cooking potato chips, biscuits, nuts and other snacks that PepsiCo produces in Mexico. This initiative to develop the Mexican sunflower market is a powerful example of how they can bring together the resources of public and private sectors to deliver real value for local communities, for their consumers and for their business. As part of the sunflower production program, PepsiCo will purchase 100 percent of the crop, for an estimated $52 million over seven years. Additionally, PepsiCo will invest $2.6 million to support management of the Mexican sunflower crop and will provide technical training to the small farmers. Increase the Amount of Whole Grains, Fruits, Vegetables, Nuts, Seeds and Dairy in Their Global Product Portfolio. They've made great strides in increasing the amount of wholesome foods across their global portfolio. To coordinate their activity, in 2010 they formed their Global Nutrition Group, to help accelerate the growth of their nutrition business, from $10 billion in net revenue in 2010 to $30 billion by 2020. Calorie ControlEncouraging Consumers to Eat Fewer Calories In 2010, they continued to provide consumers with options to manage calorie intake, from launching new zero- and low-calorie products to reformulating existing products with fewer calories. Naked Juice, for example, introduced two 100 percent juice smoothies that have 35 percent fewer calories than regular Naked Juice smoothies, and Tropicana added new flavorssuch as Pomegranate Blueberry, Pineapple Mango and Farmstand Appleto its Trop50 line, which offers 50 percent less sugar and fewer calories with no artificial sweeteners. In 2010, Trop50 supported these new juices in a new breakthrough advertising campaign that encouraged consumers to reappraise the chilled juice category.

44 | P a g e

They are also using an all-natural sweetener innovation in Gatorade, the number-one sports drink brand in the U.S., to produce G2 Gatorade, which delivers the same electrolytes as Gatorade to help maintain hydration, but with only 20 calories per eight-ounce serving. On the foods side, they utilized their expertise in baking and air-popping technologies to manage calories. In Mexico, a baking technique is used to produce a version of Sabritas potato chips that has 20 percent fewer calories. Several of their products, including SunChips, Sabra, Quaker's Quakes and True Delights rice snacks, were recognized in the U.S. on Good Housekeeping's "Best Low-Calorie Snack" list. And across their portfolio, they offer consumers portion-control packs for many of their snacks, which are sized by calories, instead of weight, as they continue to work with government agencies, industry groups and NGOs around the world to promote healthier options for consumers, including creative incentives for consumers to make healthier choices.

45 | P a g e

Module 4 - QUALITY POLICY AND STANDARDS

PepsiCo has adopted strict corporate standards that govern their operations and ensure accountability for their actions. Such policies cover areas of Corporate Governance, Human Sustainability, Environmental Sustainability and Talent

Sustainability. Selected policies are discussed in detail below.

Human Sustainability Policies

Quality & Food Safety Programs
PepsiCo is dedicated to producing the safest, highest-quality and best-tasting beverages and foods in every part of the world. Developing and maintaining robust food safety programs is how they assure safety for every package, every day in every market. PepsiCo has detailed internal programs and procedures for food safety.

PepsiCo food safety

PepsiCo has an excellent track record in delivering safe products this work is guided by the PepsiCo Food Safety Policy. Their efforts are focused on building a sustainable food safety program and providing the framework to develop and sustain food safety of existing brands and new innovation. The scope covers the design, manufacture and distribution of beverage and food products. Their programs and procedures apply to all current and future divisions in PepsiCo. PepsiCos programs and procedures for food safety and quality address the following key areas: Organizational Responsibility The food safety responsibilities of all individuals at all levels of the organization are outlined and documented in order to ensure the authority and accountability of all food safety and quality decisions are well-understood.

46 | P a g e

 Critical Food Safety Elements Their comprehensive food safety program ensures compliance with the following critical food safety elements: Hazard Analysis and Critical Control Points (HACCP), low acid manufacturing, allergen management, crisis management, foreign object control, Good Manufacturing Practices (GMPs) and pest management. Regulatory PepsiCo ensures all products and processes are in compliance with applicable regulatory requirements. These include areas such as ingredients, genetically modified organisms (GMOs), labelling, net weight, pesticide and chemical residues, juice HACCP, flavor regulations and any local- or countryspecific requirements. Food Security It is the responsibility of each PepsiCo operation to plan, design, implement and maintain a comprehensive facility security plan to ensure their products are safe for human consumption. A facility security plan is implemented by each plant, facility and distribution centre, in accordance with the baseline standards and framework established by the PepsiCo Security Organization. It includes an annual review of effectiveness and is updated as necessary. Product Design All PepsiCo products, processing equipment and facilities are designed, developed and commercialized in a manner that enables manufacturing sites to produce product that is safe, legal and fit for human consumption. The Research and Development and Commercialization teams are responsible for ensuring processes and products meet all regulatory requirements and are designed to be safe for human consumption. Equipment design and procurement must meet all standards for GMP compliance and sanitary design.

47 | P a g e

 Manufacturing PepsiCo is committed to the manufacture of products that are safe and fit for human consumption. They achieve this by ensuring the process is controlled, raw materials are managed appropriately and the finished product is handled correctly. Manufacturing includes the following equipment process controls: conformance to specification, equipment preventive maintenance, calibration, equipment verification, and start-up and change-over operation. The following programs manage ingredients, in-process materials and finished goods: product traceability, inspection and testing procedures, incoming raw material and packaging controls, water quality, packaging quality, control of nonconforming product, product rework and review and approval of variances. Their warehouses are routinely assessed, approved and monitored. Documentation and Records PepsiCo ensures all documentation and records comply with government regulations and the PepsiCo Food Safety Policy. This includes a defined master list of documents and assigned responsibility for managing documents. Records are maintained to demonstrate compliance with manufacturing specifications and policies. Supply Quality All purchased ingredients are procured against an approved specification from an approved vendor facility. Suppliers must pass a rigorous approval process. Manufacturing facilities receive raw ingredients only from approved suppliers. Supplier performance is routinely monitored, recorded and reassessed. Auditing and Self-Assessments PepsiCo has an established framework in which it executes yearly food safety audits of manufacturing and suppliers. These audits provide

48 | P a g e

assessments of manufacturing facilities for compliance, effectiveness and improvement in accordance with PepsiCo food safety policies and procedures. Corrective and Preventive Action Corrective and preventive action is initiated in response to nonconformances that may occur relative to process, product or package specifications. Effectiveness is verified by the prevention of reoccurrences. The corrective action program includes effective and timely handling of

consumer/customer complaints, root-cause analysis, audits for program effectiveness and follow-up investigations. Training Each functional department identifies training needs and provides training for all associates, including full-time, part-time, temporary and contractors. This ensures they have the appropriate level of education, experience and training necessary to effectively perform the required activities specified in the PepsiCo Food Safety Policy. A training business plan must be established to address food safety training for HACCP, allergen management, low acid manufacturing, GMPs, control of nonconforming product, associate safety, food security and specific job applications. Consumer and Customer Satisfaction PepsiCo ensures procedures are in place to monitor consumer and customer satisfaction. The procedures must provide timely and accurate responses to customer complaints and strive for continuous improvement.

Quality Organization
PepsiCo Quality professionals assess product compliance to PepsiCos Quality Policy. This program is focused on processes and procedures supporting quality

49 | P a g e

policies and prioritization of critical risk areas. Their Quality agenda is led by Quality professionals in various regions who oversee the following areas: Food Safety Innovation (R&D) Manufacturing Quality Co-Manufacturing Quality Supplier Quality Plant Quality

Genetically Modified Ingredients

PepsiCo is dedicated to producing the highest-quality food and beverage products in every part of the world. PepsiCo ensures all products meet or exceed stringent safety and quality standards and uses only ingredients that are safe and approved by applicable government and regulatory authorities. Approval of genetically modified foods differs from country to country regarding both use and labelling. For this reason, PepsiCo adheres to all relevant regulatory requirements regarding the use of genetically modified food crops and food ingredients within the countries it operates. Where legally approved, individual business units may choose to use or not use genetically modified ingredients based on regional preferences.

Responsible marketing
Teaching children sensible eating habits at an early age is a critical part of their up-bringing. As a major advertiser, they need to do their part to help parents succeed in this task. Their approach has been to join a leading set of other food and beverage companies in agreeing to change what younger children are seeing advertised on TV and in other media, such as magazines and the Internet. Importantly, they are doing this in countries around the world where they do business today. Naturally, they cannot prevent children from seeing their advertising, but they can ensure that media channels that are most targeted at children carry advertisements only for certain products. From PepsiCos

50 | P a g e

perspective, these are products that meet specific nutrition criteria intended to encourage the consumption of healthier foods and beverages. The policy covers their entire product portfolio and is subject to independent compliance monitoring by Accenture.

Healthcare Reform
PepsiCo values the health and well-being of their associates, partners, customers and consumers. PepsiCo offers a wide range of benefits that encourages wellness, promotes healthy living and gives associates and their familys tools and information to make educated healthcare decisions. Their Healthcare Commitment Their company-sponsored approach to health and wellness encompasses physical, emotional and financial well-being and includes prevention, screening, healthcare and healthcare savings accounts, dental care, retiree healthcare and life and disability insurance. PepsiCo extends its commitment to health and wellness internally through programs such as HealthRoads. HealthRoads promotes healthier lifestyles through a combination of health assessments, personalized coaching, tobacco cessation, fitness and nutrition programs, online tools and worksite wellness initiatives. The number of countries where they offer HealthRoads has been increasing annually. In 2005 it was offered in three countries, and in 2009 the program was offered in 20 countries. HealthRoads assists associates in navigating through the healthcare system and addresses increasing healthcare costs for associates and their families as well as the company by helping them maintain good health and improve their health status. In addition, PepsiCo United Kingdom developed a Fit for Life program, and Vive Saludable (Live Healthy) was created within PepsiCos Mexico division as a way to meet particular local needs with local programs. Their associate wellness programs integrate well with their core business and commitment to Human Sustainability, with a range of enjoyable and wholesome products, and

51 | P a g e

efforts to make healthy choices easier. In addition, PepsiCo maintains and enforces a strict global occupational health and safety policy. Understanding healthcare is an issue that is complex and much larger than they can impact within PepsiCo, they are committed to the following guiding principles to engage with government, nongovernmental organizations and appropriate external stakeholders.

Environmental Sustainability Policies

PepsiCo is committed to being an environmentally responsible corporate citizen. They express that commitment in their Environmental Policy and other policies related to Environmental Compliance and Sustainability, a few of which are described in more detail below.

PepsiCos Environmental Policy

PepsiCos Environmental Policy applies to all their operations. PepsiCo monitors company-owned operations and joint ventures where they hold a majority share. They encourage their suppliers, service providers, bottlers and other partners to adhere to the policy.

Sustainable Agriculture Policy

They have developed and published their Global Sustainable Agriculture Policy, which demonstrates their approach to sustainable development across their entire agriculture supply chain, including water savings, waste reuse, soil protection and chemical use. Their policy addresses six broad objectives within the agriculture supply chain: Water Management Soil Conservation and Preservation Agrochemical Management

52 | P a g e

 Energy Management Farm Economics and Land Management Social and Community Improvement To support the implementation of the policy, they established a PepsiCo-wide governance structure called the Sustainable Agriculture Council (SAg Council). This council is staffed by agro-scientists, engineers and sustainability professionals from across all of their PepsiCo businesses.

Sustainable Packaging Policy

They have launched a global sustainable packaging policy and formed a Sustainable Packaging Council (SPC). This multidisciplinary team includes leaders from their R&D, Innovation, Procurement, Sales & Marketing and Public Policy groups. The councils objectives are to develop sustainable packaging strategies, goals, targets and alternative material technologies and to support responsible disposal practices. The SPC reports to the Environmental Sustainability Leadership Team (ESLT).

Quality Standards
All PepsiCo products in India are made in automated plants located across the country. These plants are audited and certified by various external agencies. The certifications include: HACCP (Hazard Analysis and Critical Control Point). Certification by TQCSI (Australia), which confirms that products are manufactured in a food safety environment and the manufacturing process has adequate controls to track products. American Institute of Baking (USA), one of the best auditing bodies for confirming process and product safety. Their Plants are ISO 14000 certified, which confirms that the manufacturing process ensures environmental safety.

53 | P a g e

 Their plants are also certified to ensure that the safety of products, processes, environment and people is maintained at a very high level. This certification is issued by OHSAS 18001 (Occupational Health and Safety Assessment Series), USA.

54 | P a g e

Module 5 - ETHICAL VALUES

Their Values & Philosophy are reflections of the socially and environmentally responsible company. They are the foundation for every business decision they make.

PepsiCos Commitment
They are committed to delivering sustained growth through empowered people acting responsibly and building trust. Sustained Growth is fundamental to motivate and measure PepsiCos success. Their quest for sustained growth stimulates innovation, places a value on results, and helps us understand whether today's actions will contribute to their future. It is about the growth of people and company performance. It prioritizes both making a difference and getting things done. Empowered People means they have the freedom to act and think in ways that they feel will get the job done, while adhering to processes that ensure proper governance and being mindful of company needs beyond their own. Responsibility and Trust form the foundation for healthy growth. They hold both personally and corporately accountable for everything they do. They must earn the confidence of others. By acting as good stewards of the resources entrusted to them, they strengthen the trust by walking the talk and following through their commitment in succeeding together.

Code of Conduct
Along with their values, the PepsiCo Code of Conduct is at the centre of everything they do. The Code applies to all associates, officers and directors, to all divisions and subsidiaries, and to every business transaction they make. Since 1976, PepsiCo has had a Code of Conduct that is regularly updated and communicated to all their associates annually. The Code is available in 42 languages and includes provisions relating to ethical business dealings, bribery, business gifts and entertainment,

55 | P a g e

confidentiality of information, insider trading, protection of company assets, discrimination, harassment, equal opportunity, accounting and record-keeping, health and safety, environment, political activities and whistle-blowing. The world wide code of conduct is as follows: Show respect for all employees Treat consumers, customers, suppliers and competitors with integrity Comply with all laws and regulations Provide a safe workplace and protect the environment Preserve PepsiCos property and assets Prepare and keep accurate records Speak openly and honestly

Human Rights Workplace Policy

PepsiCo respects the dignity of their associates in the workplace, and they are accountable to ensure their associates rights to personal security, a safe, clean and healthful workplace, and freedom from harassment or abuse of any kind. They deal fairly and honestly with their associates regarding wages, benefits and other conditions of employment, and recognize their associates right to freedom of association. They do not use compulsory or child labour. They do not tolerate discrimination and work to ensure equal opportunity for all associates. They comply with all applicable laws, regulations and other employment standards, wherever they operate or work. They encourage their partners, suppliers, contractors and vendors to support these policies, and they place substantial value on working with others who share their commitment to human rights.

HIV/AIDS
At PepsiCo, they recognize HIV/AIDS as a uniquely challenging global health issue that poses a significant threat to the sustainability of their business operations worldwide. They are committed to making a significant contribution to the fight against

56 | P a g e

this devastating pandemic and to assisting associates and their family members affected by it. PepsiCo has established an internal task force on HIV/AIDS to guide their actions in addressing the issue in their businesses. Their policy outlines an approach that will be applied across the diverse array of markets in which they operate. In South Africa, for example, they have made important strides, including establishment of a comprehensive HIV/AIDS testing and treatment program. Based on their experience there, they believe any sustainable program to combat HIV/AIDS must focus first on building awareness, encouraging prevention and reducing the stigma associated with the disease. However, to succeed in the long term, an HIV/AIDS program must include a testing and treatment component.

Guiding Principles
They uphold their commitment with six guiding principles. Care for their customers, their consumers and the world they live in. They are driven by the intense, competitive spirit of the marketplace, but they direct this spirit toward solutions that benefit both their company and their constituents. Their success depends on a thorough understanding of their customers, consumers and communities. To foster this spirit of generosity, they go the extra mile to show they care. Sell only products they can be proud of. The true test of their standards is their own ability to consume and personally endorse the products they sell. Their confidence helps ensure the quality of their products, from the moment they purchase ingredients till the moment it reaches the consumer's hand.

57 | P a g e

 Speak with truth and candor. They tell the whole story, not just what's convenient to their individual goals. In addition to being clear, honest and accurate, they are responsible for ensuring their communications are understood. Balance short term and long term. In every decision, they weigh both short-term and long-term risks and benefits. Maintaining this balance helps sustain their growth and ensures their ideas and solutions are relevant both now and in the future. Win with diversity and inclusion. They embrace people with diverse backgrounds, traits and ways of thinking. Their diversity brings new perspectives into the workplace and encourages innovation, as well as the ability to identify new market opportunities. Respect others and succeed together. Their 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 their company is built on individual excellence, they also recognize the importance and value of teamwork in turning their goals into accomplishments.

58 | P a g e

Module 6 - CASE STUDY

Case 1: NLSIU students take Pepsi to court

Five NLSIU (National Law School of India University, Bangalore) students have filed a complaint at the Consumer Forum against Pepsi. The complaint pertains to the practice of marking higher MRPs (Maximum Retail Price) by Pepsi for sale in some channels. An earlier practice referred to vendors charging above the MRP, but this complaint highlights to the practice of Pepsi bottles (bought at a food court in Bangalore) not mentioning "for select channels only". The complainants are Adithya Banavar, Abhimanyu Kampani and Aubrey Lyngdoh who had just passed out last year, and Lakshmi Nair and Ashwini Obulesh currently in the fourth year of the five year law course.

Ashwini Obulesh (complainant) argued for the admission of the complaint at the Consumer Forum. The consumer complaint was filed on behalf of the Ministry of Consumer Affairs Chair on Consumer Law & Practice in association with the Legal Services Clinic of NLSIU. The opposite parties comprise of Palette Mantri Mall Square (Bangalore, Karnataka), Aradhana Foods and Juices (Andhra Pradesh), Pepsi India Holdings Private Limited (Maharashtra) and Pepsico India Holdings Private Limited (Karnataka). Speaking to Bar & Bench on the complaint filed, Ashwini said, The students of NLSIU filed this complaint in public interest, seeking an order to cease the unfair trade practices carried out by Pepsi. Earlier, they used to mark unreasonably above the MRP, now they have manipulated the MRP itself. Also none of the bottles contain a message saying for select channels only.

Complaint: The complaint has been filed under Section 12 of the Consumer Protection Act, 1985 and addresses to the student-complainants episode at Palette

59 | P a g e

Mantri Mall, Bangalore. The students (complainants) purchased one, 1-litre water bottle of Aquafina, a 330 ml Pepsi Tin and a 350 ml bottle of Nimbooz at Palette Mantri Mall. The total bill amount for the above purchases of Pepsi products was Rs. 120 and the vendor informed the students (complainants) that he has billed the MRP rates. The students (complainants) then bought the same goods at Food World and the total bill came to Rs. 55 with a big difference of Rs. 65.

The students (complainants) observed that the MRPs marked at Palette Mantri Mall differed from the MRPs marked on identical products purchased at Food World. Not only were identical products being sold with varying MRPs, but also, such variations might have been practiced at the manufacturers level. Pepsis Response: Pepsico India Holdings responded via email stating that admittedly, the manufacturer had marked two different MRPs on identical products, ostensibly to cover service charges of the outlet.

SOLUTION
The Consumer forum in its order dated April 1, 2011 held, These printing different rent MRPs for the same material without any change in the material either in the contents or in the quantity is nothing but an unfair trade practice and selling it to the consumers is really unfair trade practice and also deficiency in service. This has to be curtailed. How can the same material have a different M.R.P. at different places? There is no answer. If the retailer wants to sell it for a higher price, it is his business and he has to satisfy the customers that he is selling it at a particular price in case customers wants to take it they may take, if they may not take or they may reject it, but the manufacturer cannot print different prices for the same commodity, it is nothing but an unfair trade practice. As the prints different M.R.P. will allow the retailer to gain more profit for the same material which is impermissible in law. The complainants are the customers. The material purchased at a particular place has a particular M.R.P. the same material

60 | P a g e

must have the same M.RP. at different places also. It cannot have two different M.R.Ps. Hence, printing different M.R.Ps is bad in law, is unfair trade practice.

Speaking to Bar & Bench NLSIU student and one of the complainants, Ashwini Obulesh said, Although the Court was initially reluctant to pass an order against an MNC owing to difficulties in execution proceedings, we are glad that the order for ceasing the unfair trade practices was finally passed. This should set an example for consumers to fight back when they are being cheated.

The Forum has directed Pepsi to stop printing differential MRPs on same quantities of products. The Forum further directed Pepsi to give the students Rs. 5000 as compensation and Rs. 2000 towards cost of this litigation.

Case 2: Key Controls

This is not a legal case study, but then its a key control made by the Control team of Finance group in the organization. There was an internal audit going on in the company during my training. I was given the job of freight auditing of supply chain department. In every business, the goods must be moved from the place of production to the end of the chain, i.e., consumer. Likewise in PepsiCo, all the manufactured food and beverages must be transported so that the goods reach the end consumer who consumes them. There are lot of process involved in between which makes it possible for the consumers to enjoy the products of PepsiCo. The following is the case study about the freight master in SAP of PepsiCo which was done as a project in the company as a part of my institutional training.

Freight agreement
A freight agreement is a financial forward contract that allows transporters, charterers and speculators to hedge against the volatility of freight rates. It gives the transporter the right to buy and sell the price of freight for future dates. The freight

61 | P a g e

agreement consists of the terms and conditions as agreed by the company and the transporter. PepsiCo enters into an agreement with the transporters in order to transport the goods to various distributor points. The following are the components of freight agreement.

Components of Freight agreement

Validity of agreement Performance of the orders Loading and unloading Vehicle types Freight rates Freight & load size Other charges Lifting of material Breakdown information Responsibility for loss and damage, etc Case of short delivery Duties of transporter Loss of Central Excise Invoice & other document Payment T.D.S ( Tax Deducted at Source ) Renewal of contract Default of transporter in compliance of the terms & conditions Insurance Detention charges Halting charges Indemnity Agency and assignment Term of contract and terms of termination before the term period

62 | P a g e

Documents used in the freight auditing

1. Lorry receipt This document acts as a proof for the lorry driver which tells that he is just a transporter of goods prescribed and goods are transported from source place to the destination. 2. Acknowledgment of Delivery This document will be issued by the consumer at the place of delivery. The document will be signed by the consumer which acknowledges that the transporter has delivered the goods in a good manner and in the prescribed condition. 3. Invoice The invoice is prepared by PepsiCo and handed over to the transporter along with the gate pass at the companys premises. The transporter has to get them also signed from the consumer.

63 | P a g e

Operation of freight in PepsiCo

Agreement made

Hard copy of rates

Upload of rates to SAP

Orders placed by customers

Truck sent to plant/WH

Entry into the Plant

Loading of goods

Verification of goods

Preparation of LR

64 | P a g e

Receiving the invoice

Receiving the gate pass

Make shipment

Reach destination

Unload goods

Receive acknowledgment

Deliver invoice and LR to plant

Shipment is closed

Payment is initiated

65 | P a g e

Process of freight
Step 1: PepsiCo will enter into an agreement with the transporter for transportation of goods. Step 2: The transporter agrees with the terms & agreements of PepsiCo and a hard copy of the rates are also given. Step 3: After the agreement is made, the agreed freight rates are uploaded to the Freight module of SAP. Step 4: PepsiCo procures orders from customers for despatch of goods from the plant or warehouse. Step 5: After procuring orders, PepsiCo requests the transporter to send suitable trucks based on the orders for delivery of goods to the respective destinations. Step 6: When the truck enters into PepsiCos premises, an entry is logged on to the securitys kiosk. Step 7: After the truck is allowed to enter the premises, the logistics manager takes the responsibility of loading goods onto the trucks appropriately. Step 8: While loading the goods, those are simultaneously verified by logistics manager & a person from the transporters company. Step 9: After the goods are loaded on to the truck, a lorry receipt is prepared by the transporter. Step 10: The transporter also receives an invoice of goods loaded onto the truck and the same has to be acknowledged from the receivers end. Step 11: As soon as all formalities are finished, the transporter receives the gate pass to make a move out of the company. Step 12: The transporter now makes the shipment of the loaded goods to the respective locations.

66 | P a g e

Step 13: When the destination has arrived, the goods are unloaded in the place of receiver. Step 14: As soon as the goods are unloaded, the transporter must receive acknowledgement from the consumer stating that all the goods were received in a good condition Step 15: Simultaneously, transporter must get signed in the lorry receipt and invoice from the consumer. Step 16: When all the required documents are acknowledged the transporter delivers it to the source place. Step 17: As soon as the documents are received by PepsiCo, the shipment is closed and payment is initiated.

Freight auditing
The freight auditing was the work given to me by the Control team of Finance dept of PepsiCo. The concept of freight auditing is that every time PepsiCo enters into an agreement with a transporter for transportation of goods from the plants or warehouses to distribution points, a hard copy of the freight rates will be given along the agreement to the transporter for his reference. The rates given in the annexure will be simultaneously updated in the SAP freight module by the Supply Chain Department. When the transporter presents a consolidated statement of invoice for the transits made by the company, simultaneously the Supply Chain Department will check with the rates that were uploaded in SAP freight module. My project was the audit of freight rates that are uploaded in SAP with that of the agreement rates.

Process of audit
I did my audit of freight master for whole South India of PepsiCo locations. The structure of South Unit of PepsiCo consists of 4 units North TN South TN

67 | P a g e

 Kerala Karnataka Hyderabad As its a beverage company, there involves 2 types of journey, viz., one way and two way. There are three types of trucks provided by the transporter and each transport has its own code. L4 Canter 6 tonner H1 Truck 9 tonner T1 Heavy Commercial vehicle 12 tonner Each location has a unique plant code to identity them. The plant code for each location is as follows: North TN: SMM1 Mamandur SMZ0 Puzhal SMH0 Hosur SAI0 Trichy SASC Trichy Co-Pack SAPC Markkanam SMQ0 Puduvoyal South TN: SAM1 Madurai SAE0 Ettimadai SAP1 Pudupatti SAB0 Tirunelveli Kerala Karnataka: SBN1 Neelamangalam SAK0 Palakkad SBH0 Bommanahalli

68 | P a g e

 SBM0 Mittal SAO0 Kollam SBB0 Bangalore PIH SAG0 Kollam New WH

Hyderabad: CHS1 Sangareddy SHH0 Isnapur SHD0 Bidar

69 | P a g e

Structure of South Market Unit

SOMU
North TN
Mamandur
(PLANT)

South TN
Madurai
(PLANT)

Kerala Karnataka
Neelamangalam (PLANT) Palakkad (PLANT)

Hyderabad
Sangareddy
(PLANT)

Hosur

Ettimadai

Bidar

Marakkanam

Pudupatti

Bommanahalli

Isnapur

Puzhal

Mittal

Trichy

Kollam

Trichy Co-Pack

Bangalore PIH

Puduvoyal

70 | P a g e

Using the plant codes, in SAP freight module the active rates of each location was downloaded to spreadsheet. Corresponding rate master for each location was received from each units supply chain manager in order to audit the freight rates. First all the SAP data were formatted to my convenient form and a filter is applied for the worksheet for easier handling of data. Now the data is filtered to a truck type and shipment type. Taking the route code as a common data point in both SAP freight master & excel rate master, using the vlookup formula in MS Excel, the corresponding rates of that route code of that truck type were looked up in SAP freight rate master. Similarly, the amounts for all other truck types for all locations were looked up in the same way. After the amounts are referenced from the excel rate master, the rates are now taken difference with the rates with those uploaded in SAP. Based on the difference, the route codes were classified into 4 types: Matching difference is between -10 to 10 Mismatch difference is < -10 or >10 Not available in agreement the rates are missing in agreement Vehicle type not available in agreement vehicle type other than mentioned in the agreement. Likewise, data pertaining to all locations were classified with above classifications.

Result
A consolidated report was prepared for all 4 units which comprises of the computed data that was classified according to the above classification mentioned. All the SAP rate master & excel rate master of a unit were imported into a single worksheet for easy cross reference. For each location, a pivot table was created to know the summary of my classification. In the first sheet I made a final report of that location and to get the no. of route codes in each classification, i used counifs formula to count no. of route codes that match the criteria.

71 | P a g e

Example:
Classification Puzhal One way Two way Canter Truck Taurus Canter Truck Taurus Matching Mismatch Not available in agreement Vehicle type not available in agreement Grand Total 128 3 46 177 127 3 48 178 128 3 45 176 128 3 20 151 127 3 23 153 128 3 22 153

A sheet showing the agreement availability was also prepared in order to explicitly show them these are the transporters who are engaged in the freight transactions but they are operating without any agreement. Also sheet showing the mismatched rates of the routes were also taken separately showed and a variance by % was also mentioned.

Transport vendor Location : Palakkad

GAYATHRI TRANSPORTS SOUTHERN CARGO CARRIERS (INDIA) SICAL LOGISTICS LIMITED REVATHI TRANSPORT

Availability of agreement
Yes No No No Yes Yes Yes No Yes No No

Location : Neelamangalam
SOUTHERN CARGO CARRIERS (INDIA SRI MAHALAKSHMI LORRY SERVICE MAHINDRA LOGISTICS LTD LEEWAY LOGISTICS LIMITED

Location : Kollam
GAYATHRI TRANSPORTS SICAL LOGISTICS LIMITED SOUTHERN CARGO CARRIERS (INDIA

72 | P a g e

Module 7 - GROWTH OPPORTUNITY

In 2012, their journey of renewal continues as they focus on five strategic imperatives.

1. Build and extend their macrosnacks portfolio globally PepsiCo is the undisputed leader in macrosnacks around the world. They will work to build their much-loved global snack brands Lays, Doritos, Cheetos and SunChips while expanding their successful grain-based snacks platform globally. They will continue to create new flavors in tune with local tastes and leverage their go-to-market expertise to ensure that their brands are always available wherever their consumers shop.

2. Sustainably and profitably grow their beverage business worldwide Their beverage business remains large and highly profitable accounting for approximately half of their net revenues in 2011. Their goal is to grow their developed market beverage business while building on promising gains in emerging and developing markets. They will continue to invest in and strengthen their most powerful and iconic beverage brands

3. Build and expand their nutrition business Today, PepsiCo has three of the most admired and loved brands in the category Quaker, Tropicana and Gatorade. For the categories in which they compete, the global market for health and wellness within consumer packaged goods the high-single-digits,

driven by strong demo- graphic and consumer trends. Building from their core brands, they believe that they are well positioned to grow their global nutrition portfolio.

73 | P a g e

4. Increase and capitalize on the high coincidence of snack and beverage consumption Snacks and beverages are hugely complementary categories. In the U.S., about 50% of the time, when people buy a salty snack they also buy a refreshment beverage. Their ability to use that combined power goes beyond selling to innovation, production, distribution and marketing. They intend to increasingly capitalize on their cross-category presence to grow their positions in both snacks and beverages.

5. Ensure prudent and responsible financial management. PepsiCo is highly focused on shareholder value creation, as they have always been. They achieve this by maintaining or growing their strong value shares in their key markets, relentlessly pursuing sustainable, profitable growth, rigorously scrutinizing capital investments and aggressively returning cash to shareholders through both dividends and share repurchases. By doing so, they expect to perform in the top tier of consumer packaged goods companies as measured by total shareholder return.

74 | P a g e

Module 8 - SWOT ANALYSIS

SWOT

analysis is

a strategic

planning method

used

to

evaluate in

the Strengths, Weaknesses/Limitations, Opportunities,

and Threats

involved

a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favourable and unfavourable to achieve that objective.

Strength
In time service of supplies and technical assistance PepsiCo has stayed in this market for almost one century. So they are so experienced and stationed in people's mind deeply. PepsiCo is such an experienced powerful global company, which has a basic of a great fund. So it has the ability to place an idle sum of money to the promotion. PepsiCo also compares with the competitors and fined their disadvantages to update its own quality, flavour and also package promptly in order to satisfy the consumers' need. PepsiCo also has had the good fortune of making very wise investments. Some of the best investments have been in their acquiring several large fast food restaurants. They have also made wise investments in snack food companies like Frito Lay, which at present time is the largest snacks company in the world. Strong and Effective Advertising Filtered Water instead of Spring Water makes the production, logistics, and profit margins a lot greater on their bottled water sales(AquaFina)

75 | P a g e

Weakness
The franchise system has become a hurdle to PepsiCo because many of these franchises have become very strong and will not be dictated by PepsiCo on how to handle their operations. Some of these franchises are unwilling to support certain PepsiCo products and at times produce their own private label products that are in direct competition with PepsiCo products. The franchise system has also affected fountain sales due to the fact franchisees are not willing to buy expensive fountain equipment to place in accounts mainly because the profit margin is so low and could take years to recoup their investment. A huge lobby against soft drink industry led by leaders like Baba Ramdev will hurt as these leaders have a huge fan following in the country All brands were not available in at least 80% shops. Complaint handling was not up to mark. Supply in certain area is very irregular and also route agents are not covering full routes. Poor signage and display is making the routes week for the sale of Pepsi.

Opportunities
Bottled water growth It is observed that in some newly establishing areas many new outlets are opening , Pepsi needs to concentrate on these new outlets and can gradually increase its sale in these area. Large number of mix outlets can be changed to Pepsi exclusive and coke exclusive to mix only by luring them good and efficient supply, glow sign and cooling equipments. Usually the climate is hot which is conducive for beverage industry. The longer hot period is an opportunity for PepsiCo to expand its sale through different promotional schemes.

76 | P a g e

Threats
Coke is the only nearest competitor and it is catching up in the market penetration through price skimming and other promotional scheme. Some local brands commonly known as kancha, Tip Top, Shine and the launch of Catch soft drink a product of DS group are causing decrease in sale in some areas. When they have huge advertisements of low prices in the newspaper, their customers think they are not giving them good value. Sluggish growth of carbonated drinks Coca-Cola & other smaller, more nimble operators Commodity price increases, fluctuating oil prices effect production and distribution (gas, plastic) Increasing health concerns over carbonated drinks.

77 | P a g e

Module 9 - SPECIALIZED DEPARTMENT

The department in which I specialized was Control Team of Finance Department. This department is of utmost importance as it is responsible for financial planning, thus ensuring that adequate funds are available for achieving the objectives of the organization. Moreover, it is the finance department which makes sure that the prices are controlled, besides looking after the cash flow and controlling profitability levels. One of the most important jobs of the finance department of a company is to identify the necessary financial information (like return on assets, return on capital employed or the net profitability which reveal the outcome of efforts made by the company and its employees) which should be revealed to managers so that they can make informed decisions and judgments. The department is also responsible for making financial documents and preparing the final accounts so that they can be presented in the annual general meetings of the company.

Functions of the Department

To make a decision concerning the use of limited resources including identification of crucial decision and determination of objectives and goals. To effectively direct and control the organization, human and material resources. To maintain and report on the custodianship of resources. To facilitate the social function and control.

Financial Risk & Management Policies

The companys financial risk management policy seeks to ensure that adequate financial resources are available for the development of the Companys Business whilst by the Board and the Company Policy is not engage in the speculative transactions.

78 | P a g e

The main area of financial risk faced by the company and the policy in respect of the major areas of treasury activity are set out as follows, a) Foreign Currency Risk The company is exposed to foreign currency risk as a result of its normal trading activities where the currency denominations differ from the local currency, Ringgit Malaysia b) Credit Risk The credit risk is controlled by monitoring procedures and by internal credit review where credit risk is material. c) Liquidity & Cash Flow Risks The company ensures that there are adequate funds to meet all their obligations in a timely and cost effective manner. d) Interest Rate Risk The companys interest rate exposure arises principally from borrowings. The interest rate risk is managed through the use of fixed and floating rate financial instruments.

Classification of Finance Department

The finance department of PepsiCo is further classified into: Planning group Control group Business/operations group The functions of various groups are as follows: 1. Planning group A unit for switching execution among multiple root jobnets in a planned manner. Directly under a planning group, an organisation can create a number of root jobnets, each defined differently and with differing execution schedules. This

79 | P a g e

enables the root job nets to be executed automatically in turn, according to the set schedules. The activities of planning group are: a) Annual operating plan (AOP) b) Capex budgets. c) Strategic Decisions d) Investment decision

2. Control group
It coordinates and sets out the planning & control cycle for the organization. This cycle includes the annual budgets, the monthly financial reports, the external quarterly reports and the annual accounts. It actively participates in the quotation process for medium and large projects and initiates specific financial improvement processes. Finally, it is also responsible for the Treasury function. a) Financial reporting b) Process and financial audits. c) Systems and procedures.

3. Business/Operations group
The Business Group oversees the strategic development and operation of support units and the planning and budget process within the organization. Develop and oversee the implementation of specific operational initiatives to achieve the objectives of the organization Strategic and academic plans. Ensure a process to assess the financial implications of all major academic and operational initiatives with the group, review the effectiveness of these processes and

make recommendations for improvement where required. a) Three Market Units (MUs) b) Business Profitability. c) Standard Operating Procedures.

80 | P a g e

Structure of South Market Unit (SOMU) Finance department

SOMU
(South Market Unit) Finance Department

MU CFO

Secretary

MU Controller

MU Plant Finance Manager

Unit Finance Manager

MU Planner

Plant Accountant (Neelamangalam)

Plant Accountant (Mamandur)

Plant Accountant (Palakkad)

Plant Accountant (Sangareddy)

Plant Accountant (Madurai)

81 | P a g e

The structure of SOMU Finance Department is further divided into Finance Department. And this finance department is handled by Mr. Kunal Bose, the CFO. Ms. Prema Shyam is the Secretary of this department.

Mr.Kunal Bose manages various unit managers. They are: 1. Mr.Kumar Natarajan 2. Mr.Manish Agarwal 3. Mrs.Indranil Chowdry MU Controller Unit Finance Manager MU Planner

The are many Plant accountant managers situated at various places. They are: 1. Mr.Nilesh 2. Mr.Franklin Jose 3. Mr.Anish Mathew 4. Mr.Ajay Kedia 5. Mr.Vishal Chand Neelamangalam Mamandur Palakkad Sangareddy Madurai

82 | P a g e

Module 10 SNAP SHOTS

PepsiCo South Market Unit Headquarters, Chennai

PepsiCo Reception, Chennai

83 | P a g e

Certifications of PepsiCo

84 | P a g e

PepsiCo Plant

85 | P a g e

A Palmtop through which orders are procured.

Random shots of PepsiCos marketing franchise

86 | P a g e

Miscellaneous Snaps

87 | P a g e

88 | P a g e

Annexure

89 | P a g e

I want people to look at PepsiCo and think of it as a model of how to conduct business be call it. PERFORMANCE WITH PURPOSE - Indra Nooyi

90 | P a g e