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A PROJECT REPORT ON Advertising Effectiveness on Consumer Behavior With special reference to Pepsi
Submitted for partial fulfillment of requirement for the award of degree Of Bachelor of Business Administration Of
PUNJAB TECHNICAL UNIVERSITY, JALANDHAR

Session 2010-13 Supervision by Mr.Roshan kumar (Lect. GNA-IMT) Submitted by Puneet Gupta 10-25 BBA 6th

GNA-Institute of Management & Technology Phagwara, Punjab

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Declaration

DECLARATION

I the undersigned solemnly declare that the report of the project work entitled Advertising Effectiveness on Consumer Behavior With special reference to Pepsi is based my own work carried out during the course of my study under the supervision of Mr. Roshan Kumar I assert that the statements made and conclusions drawn are an outcome of the project work. I further declare that to the best of my knowledge and belief that the project report does not contain any part of any work which has been submitted for the award of any other degree/diploma/certificate in this University or any other University.

__________________ (Signature of the Candidate) Puneet Gupta 10-25

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CERTIFICATE BY GUIDE

This to certify that the report of the project submitted is the outcome of the project work entitled Advertising Effectiveness on Consumer Behavior With special reference to Pepsi carried out by Puneet Gupta bearing Roll No 10-25 & Enrollment No.:.. Carried by under my guidance and supervision for the award of Degree in Bachelor of Business Administration of Punjab Technical University, Jalandhar, Punjab. To the best of the my knowledge the report i) ii) iii) Embodies the work of the candidate him/herself, Has duly been completed, Fulfils the requirement of the ordinance relating to the BBA degree of the University and iv) Is up to the desired standard for the purpose of which is submitted.

_______________________ (Signature of the Guide) Mr.Roshan Kumar Lect. GNA IMT GNA-IMT Phagwara,Punjab

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ACKNOWLEDGEMENT

I am thankful to many people whose timely help and guidance has helped us to conduct this research successfully. I would also like to express my thankfulness to Prof. Roshan Kumar Faculty of GNA-IMT Phagwara, for giving me an opportunity to pursue this project. I also wish to thank all those respondents who were patient enough in giving answer to the questionnaire. Finally, I would like to extend my grateful thanks to all my friends and Faculty members GNAIMT Phagwara whose assistance has a lot to me personally for the completion of this research.

____________________ (Signature of the student) Puneet Gupta 10-25 BBA 6th Semester

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TABLE OF CONTENTS
Chapter 1 Introduction 1.1 Introduction 1.2 History 1.3 Pepsi Headquartar 1.4 Board of Directors 1.5 Mission 1.6 Vision 1.7 Pepsi Objectives 1.8 Background and Objectives of Research 1.9 Method Use in this Research 1.10 Conclusion Chapter 2 Literature Review 2.1 Introduction 2.2 Pepsi in India 2.3 Beverages 2.4 Production Process 2.5 Consumer Behavior 2.5.1 Culture 2.6 Branding 2.7 Conclusion Chapter 3 Research Methodology 3.1 Introduction 3.2 Marketing Research

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3.2.1 Primary and Secondary DateChapter 4 Data Analysis and Finding 4.1 Introduction 4.2 Marketing Strategy 4.2.1 Geographic 4.2.2 Demographic 4.2.3 Psychographic 4.2.4 Behavioral 4.3 4Ps and 4Cs 4.3.1 Products 4.3.2 Prices 4.3.3 Places 4.3.4 Promotion 4.4 4Cs 4.4.1 Consumer 4.4.2 Cost 4.4.3 Convenience 4.4.4 Communication 4.5 Market Share21 Chapter 5 5.1 Findings 5.2 Suggestions 5.3 Conclusion 5.4 Bibliography

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Chapter I Introduction

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Chapter 1 INTRODUCTION
1.1 INTRODUCTION

Pepsi-Cola was first made in New Bern, North Carolina in the United States in the early 1890s by pharmacist Caleb Bradham. On August 28, 1898 , "Brad's drink" was changed to "PepsiCola" and later trademarked onJune16,1903 Caleb Bradham bought the name"Pep Kola" from a local competitor and changed it to Pepsi-Cola. "Pepsi-Cola" is an anagram for"Episcopal" - a large church across the street From Bradham's drugstore. Caleb Bradham and his customers simply thought the name Sounded well or the fact that the drink had some kind of"pep" in it because it was a carbonated drink they gave the name pepsi. As Pepsi was initially intended to cure stomach pains, many believe Bradham coined the Name Pepsi from either the condition dyspepsia (stomachache or indigestion) or the possible One-time use of pepsin root as an ingredient (often used to treat upset stomachs). It was made Of carbonated water, sugar, vanilla, rare oils, and kola nuts. Whether the original recipe Included the enzyme pepsin is disputed.

1.2

HISTORY

Pepsi is a world leader in convenient snacks, foods and beverages. Its revenue is more than 39 billion Dollars and over 185, 000 employees. The company consists of Pepsi Co Americas Foods (PAF), Pepsi Co Americas Beverages (PAB) and Pepsi Co International (PI) Pepsi Co Americas Foods includes all Latin America Food and snacks businesses and all business in Mexico. Pepsi Co America Beverages includes Pepsi Co Beverages all North America and all Latin American Beverage Businesses. Pepsi Co International includes in the United Kingdom, Europe, Africa Middle East and Asia. Pepsi Co Brands are available in 200 Countries .Some of the Pepsi Co Brands names are more than 100 year old but the corporation is relative young. Pepsi Co was founded in 1965. Pepsi and Coca cola merge with each other and the name of the product is Pepsi Cola. Pepsi Co merged with the Quaker oats Company in 2001.

1.3

PEPSI HEADQUARTER

Pepsi Headquarter is located in New York. The Seven Building Headquarter is designed by Edward Durrell Stone.

1.4 BOARD OF DIRECTORS PepsiCos business strategy and affairs are overseen by the Board of Directors, which is comprised of two executive directors and ten independent outside directors. Only independent outside directors make up our three standing Board Committees,

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Board of Directors (left to right): Victor J. Dzau, Arthur C. Martinez, Sharon Percy Rockefeller, Daniel Vasella, Alberto Ibargen, Lloyd G. Trotter, Dina Dublon, Michael D. White, Ray L. Hunt, Indra K. Nooyi, Ian M. Cook, James J. Schiro 1.5 MISSION "To be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity."

1.6 Vision Pepsi cos responsibility is to continually improve all aspects of the world in which we Operate environment, social, economic-creating a better tomorrow then today. We believe Sustainability lives at the instruction of public and corporate interest. It encompasses citizens nd corporate social responsibility, which are about doing the right things for the society and f or the business. It encompasses the heath of the company, which is about fulfilling our Mission of creating financial rewards and growth. We have articulated what we stand for and the core values we are committed to support.

1.7 OBJECTIVES

The Objectives that the Pepsi Company wishes to achieve is that it wants to remain and continue to be the best or number one beverage company in India. As Pepsi is already the number one beverage company in India but it has to maintain its position power and status to in order to achieve their target market 1.8 Background and Objectives of the Research How Pepsi Industry apply 4Ps and 4Cs and how they deal with customer and how they introduced its product in the market. The main theme of this research is related to all Marketing Operation. Main objective of the research is to know SWOT analysis of Pepsi. I chose this industry because it has strong marketing strategy. My Objectives is to learn about Pepsis marketing management and relationship with its customers. My main objective is how a marketer handled all the marketing Operations. 1.9 Method use in this Research

W e adopted the following methods in this research Visit Interviews Questionnaire Internet

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1.10

Conclusion

In this chapter we study the history of Pepsi and also studying headquarters of Pepsi. We mention the objectives and background of the research. That what is Pepsi how it makes. I mention the method of research and also the aim of the research, in this chapter.

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Chapter 2 Literature Review

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CHAPTER 2 LITERATURE REVIEW 2.1 Introduction In this chapter the data which we collect from using Internet, survey, 2.2 Pepsi in India PepsiCo established its business operations in India in 1989 and has grown to become one of The countrys leading food and beverage companies. One of the largest multinational Investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India. PepsiCo established it's business operations in India in 1989 Invested more than USD 1 Billion since inception Well known and loved global brands that delight and nourish consumers It provides direct and indirect employment to 150,000 people in India It has more than 41 bottling plants in India, of which 13 are company owned & 28 franchisee owned 3 State-of-the-art food plants in Punjab, Maharashtra and West Bengal

2.3 BEVERAGES PepsiCo Indias expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Nimbooz, Mirinda and Mountain Dew, in addition to low calorie options such as Diet Pepsi hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks Gatorade, Tropicana100% fruit juices, and juice based drinks Tropicana Nectars, Tropicana Twister and Slice. Local brands Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands.

2.4 Production Process PepsiCo Beverages produced the large number of product in a day. The production criteria are on demand as well as the market situation. They produced 35, 000 cane per hour and 20, 000 disposal bottles per hour and the machinery run 22 hour in a day.

2.5 Consumer Behavior

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Consumer behavior is a key success of any Company. Consumer behavior is depending upon culture, value, traditions. When marketers offer unique benefits in a new product they encourage consumer to subtype. If successful marketer established a dominant position in a new sub category. When Pepsi Co introduced a new product in a market it will change the consumer behavior. When Pepsi attempted to introduce another category breakfast colas by introduced Pepsi AM, it was less successful.

2.5.1 Culture The soft drinks market in India enjoys dynamic growth in both volume and value terms. Carbonated drinks have become part of the culture in India and multinational companies have maintained standards over the years to provide the nation with high-quality drinks. Rural areas of India have driven sales of carbonated drinks to new heights as more than 60 percent of the population resides in rural areas and young consumers are more attracted to advertising. Pepsi is the most popular and leader brand in the India market and is consumed by children and adults alike. Pepsi is a responsible corporate brand of India and have contributed a lot to the economy.

2.6 Branding There are a number of branding strategies Generic Brand Strategy, Individual Brand Strategy, Family Brand Strategy, Manufacturing's Brand Strategy, Private Brand Strategy and Hybrid Brand Strategy. Individual Brand Strategy is Marinda, 7up and Pepsi etc. they may presented as different line but it operate as under the name of Pepsi. 2.7 Conclusion

In this chapter we study the establishment of Pepsi Industries in India. The PepsiCo India Pvt. Ltd is very famous name in Industries. In this chapter we Know a branding Strategy of Pepsi and also studying the Consumers behavior, Culture and value of the Consumers in India.

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Chapter 3 Research Methodology

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Chapter 3 RESEARCH METHODOLOGY

3.1 Marketing research

W hen attempting to implement a new market plan a business must address to its target marketing and conduct the reverent information to insure the new marketing plan. When conduct a marketing research the business must 1 defined the problem and then gathering the appropriate information to solve these problem. There are three types of information a business can gather to solve its problems. 1. Exploratory Research In this research the business clarifies the problem and the find the ways to address it. 2. Descriptive Research In this research the business measure and describe the product characteristic of the target market. 3. Causal research In this research the business used to test the hypothesis about the cause and effect relationship.Pepsi through its market research has addressed all three types of research to define the problem raised by shareholder and gathered information to serve their needs.

3.3 primary and secondary Data 3.3.1 Primary Data W e collect the primary data by using the following methods : Interviewing Questioners Visit

3.3.3 Secondary Data

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Secondary data are those data which is already given. We collect the secondary data by using these Methods Internet TV Commercials Broachers Flyer

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Chapter 4 Data Analysis

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Chapter 4 DATA ANALYSIS AND FINDING

4.2 MARKETING STRATEGY 4.2.1 Geographic world Region. Country City.. Climate... 4.2.2 Demographic Age 14-30+ Asia India All Major city of India Hot and Dry

Gender ...Male, Female Marital Status Family Size.. Education . Occupation.. Income . Nationality 4.2.3 Psychographic Social Class .. Middle Class, Upper Class Married ,Unmarried 1-2, 3-4, 5+ ..School, College, universities

For Middle class to Upper Class Rs. 10, 000 + Indian

.2.4 Behavioral Occasion... Position Status Party, birthday and regular Strong

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Benefits 4.3 4Ps and 4Cs: PRODUCT PRICE PLACE PROMOTION 4.3.1 Products Pepsi # Diet Pepsi #

Quality, Taste

CONSUMER COST CONVENNIENCE COMMUNICATION

7 Up #

Aquafina# Mirinda (Orange & Apple)#

Mountain dew#

Nimbooz#

Aquafina # Slice#

4.3.2 Prices Pepsi has adopted a market pentration price at the time when it was introduced. Coca cola covered the large market in India but now the price of Pepsi cola is same as of its competitors

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300 ml bottle... Rs. 15 # 250 ml bottle..Rs. 10#

My Can(2500 ml)...Rs.15#

Can(330 ml)...Rs.20#

1 liter (not disposable)..Rs 32 # 1.5 liter (Super Pack)...Rs. 42 #

2.00 liter (Jumbo Pack)Rs. 50 #

4.3.3 Places Pepsi cola is available in more than 191 countries. Pepsi has 730 plants working correctly around the world and in USA and Canada 200 plants are working there rest 530 are working in other countries of the world as well as working in India. 4.3.4 Promotion Pepsi does its promotion through media; electronic media as well as print media through flyers, by sponsoring cricket matches and in many other places. Promotion is also done

through print media e.g. newspapers are design of Pepsi can. The first of many new designs of Pepsi were released in 2007. The Pepsi have signed some agreements with a very strong and expanded retailers such as Pizza hut and KFC when you go to Pizza hut or KFC you will find only the Pepsi products and nor its competitors products. These agreements are based on the Incentives that Pepsi offers to these retailers. Pepsi has continued using product endorsement by using TV Actors/ Models and cricketers in order to promote their Products. 4.4 4Cs 4.4.2 Cost Cost is the total expenses incurred in the production of pepsi\

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4.4.3 Convenience It has most effective distribution system among all the soft drinks. It is easily available everywhere even in cities or a village. You can easily get it. Special refrigerators are placed at each and every shop or outlet. 4.4.4 Communication Internet

Phone Call # Surveys. #

4.6 Market share

Present market share in Beverage industry is 60.28%

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Chapter 5 SWOT Analysis and Pepsi

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SWOT ANALYSIS AND PEPSI

5.1 SWOT ANALYSIS

5.1.1 Strengths The Pepsi image is displayed on T-shirt, Cap and Bat this extremely recognizable branding is one of the greatest strengths. Pepsi bottling system is one of their greatest strengths. 5.1.2 Weaknesses Pepsi has recently reported some declines in unit case volume in Indonesia and Thailand due to reduce the consumer Purchasing power. Pepsi has effects on the teeth which is an issue for health care. 5.1.3 Opportunities Packing Changes is effected sales and industry positioning but in general, the public has tended not to be affected by new product. Pepsi's bottling system also allows the company to take advantage of infinite growth opportunities around the world. 5.1.4 Threats Consumer buying power is represents a key threats in the industry. The competition between Pepsi and Coke has produce a very slow moving industry in which management must continuously respond to the changing attitudes and demand for their of face losing market share to competition, furthermore consumer can easily switch to other beverage with a little cost. 5.2 Ingredients Carbonated water. Sugar High fructose corn syrup. Color (Caramel) Phosphoric acid. Caffeine. Emulsifier #

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5.3 MARKET DESCRIPTION Pepsi has become the largest selling soft drink in the world. It has liked by the people of all ages belonging to different field of life belonging different cast religion. A recent survey shows about the 90% of the population of the world use Pepsi. It available in the market in different Flavor and different variety.

5.5 WHAT IS IN PEPSI?

5.6 Competitor 24 Pepsi is the largest beverage company in India with 65% market shares. In 1994 the Coca cola Company reduced the price to Rs.5 and Pepsi has to reduce the price in order to compete. In doing this both companies had bear a huge losses. Coke had a loss of 9 million whereas the Pepsi bearing a loss of 14 million. The following are some competitors of the Pepsi Coca cola Thumps Up Gladiators Nestle(only in mineral water)

5.7 Distribution Review Pepsi applied two methods to distribute their products. 5.8.1 Direct Distribution: Pepsi Direct distribute their Product to Whole Sellers, Restaurants, Hotels, Pizza hut, KFC, Saver Food and Metro etc. Export Parties

5.8.2 Indirect Distribution

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Through Base market Distributions #

Through Outstation Distributors # 25

5.9 Placing Distribution

The distribution system of Pepsi Cola Company is organized as follows There are branches in every city of India and these branches are controlled by the head branches which is located in Mumbai. There is some Sales Manager and sales executives. The sales executive is also known as Territory Development Manager (TDM) who is responsible about the trucks. Then further down is the sales officer who has a wide authority and then there is a sales supervisor who looks after the trucks and finally salesman. Each sales manager handles 60 trucks. The distribution agencies are formed in every large city of India. The trucks of the company supplies products to these distribution agencies and then these agent further supplies these products to the retailers. Before delivering the products some certain guiding Principles are followed by Pepsi Co Applicant must have 20-25 vehicles (Depending on the Area). # Applicant must have 20, 000 Cases of Empty Bottles. # Applicant must Deposit Rs. 1, 000, 000 as a security. #

5.10 Soft drinks in India There are various kind of soft drink used in India Such as o Pepsi o Coca Cola o Tropicana o LMN o Saint juice o XLS

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Chapter 6 Finding Suggestions and Conclusion

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Finding 1. Pepsi gives lots of stress on marketing its product in the market. 2. Pepsi provides many number of Beverages products in almost all region in INDIA. 3. It spends a lot of amount on advertising. 4. Coca-cola is biggest competitor of Pepsi

Suggestions 1. It should reduce the prices of the product to penetrate in the market. 2. New products should be launched to give competition to the new entrants. 3. Try to reduce the cost of production of the products of Pepsi.

CONCLUSION
Pepsi has a long-standing commitment to protecting the consumer whose trust and confidence in its products in the bedrock of its success. In order to ensure that Consumers stay inform about the global quality of all Pepsi product sold in the world, Pepsi product carry a quality assurance seal on them. Pepsi commitment is to deliver sustained growth, through empowered people, acting with responsibility and building trust.

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BIBLIOGRAPHY

Books 1. Marketing strategy by kotter 2. Research Methodology by Smith. Websites 1. Wikepedia.orgic 2. Pepsi iNDIA.in 3. Pepsi.co.in