A Project Study Report On

Training Undertaken at

LUMBINI BEVERAGES PVT. LTD. Titled ADVERTISEMENT STRATEGY

Submitted in partial fulfillment for the Award of degree of

Master of Business Administration (MBA)

Submitted By Rajkishor mahato Class - MBA IIIrd SEM. RTU Roll No.-12MIAXX639

Submitted To Dr. Manish Jain Head of the Department Department of Management

ARYA INSTITUTE OF ENGINEERING &TECHNOLOGY KUKAS, JAIPUR (RAJ.) 2012-14

Acknowledgement
I express my warmest thanks & deep sense of gratitude to the individuals for their generous help in discussing the project and giving their valuable time in successful completion of this project. Time to time I got constructive suggestions, guidance and encouragement. I would like to express my deep thanks to Dr. Arvind Agarwal, President, ARYA Group of Colleges and Prof. M. L. Gupta, Principal, ARYA Institute of Engineering & Technology, Jaipur and Dr. Surendra Sharma, Director, ARYA Institute of Engineering & Technology, Jaipur for extending me the opportunity of presenting the Final year project and providing all the necessary resources for this purpose. With much pride and delight I would like to express my sincere thanks to Dr. Manish Jain (Head of the department) for his excellent guidance and valuable suggestions throughout the project work. I express heartfelt thanks to Mr. Hitesh Tikyani (Project guide) for his/ her wonderful support and for giving me an opportunity to present project report on the topic
ADVERTISEMENT

STRATEGY

I also want to give my humble regards to Ms. Padma Sharma, Mr. Hitesh Tikyani, Ms. Shweta , Ms, Anchal Sharma, Ms. Ankita Jain , Ms. Aperna & Ms. Binsy for their valuable support and believe in my work. Without their sustained interest and encouragement, this work could not have been possible to reach the state of completion with satisfaction. In fact it is their real devotion to the development work, which instilled in me, the need of a passionate commitment to pursue this project. I am also grateful to all my friends for providing critical feedback and support whenever required. There are times in such projects when the clock beats you time and again and you run out of energy, you just want to finish it once and forever. Parents made me endure such times with their unfailing humour and warm wishes. I regret for any inadvertent omissions. Name of Student Class RTU ROLL NO. MBA III SEM.

INDEX

S.NO. 1. 2. 3.

PARTICULARS Preface Introduction to the Study

History of the soft drinks in India

4. 5. 6. 7. 8. 9.

(B) HISTORY OF PEPSI

Introduction about SCL: Origin of the Company Cement manufacture Weight average cost of capital Cost of equity Cost of debts

10. Capital structure 11. Analysis of capital structure 12. Factor affecting cost of capital 13. Optimal capital structure 14. Ratio Analysis

PREFACE
There is a famous saying "The Theory without practical is lame and practical without theory is blind. This modern era is era consumers. A consumer satisfies themselves according to their needs and desires, so they choose that commodity from where they extract maximum satisfaction. It has been identified that in the beginning of 21st century the market has observed a drastic change. The successful brand itself in such a way that buyers in them in special values which match their needs. Marketing is an important part of any business and advertisement is the most important part of marketing. Summer tanning is an integral part of the MBA and student of Management have to undergo training session in a business organization for 6 weeks to gain some practical knowledge in their specialization and to gain some working experience. Our institution has come forward with the o opportunity to bridge the gap by imparting modern scientific management principle underlying the concept of the future prospective managers .To the emphasis on practical aspect of management education the faculty of Management studies of Arya Institute of engineering and technology jaipur, has with a modern system of practical training of repute and following management technique to the student as integral part of M.B.A. in according with the above obligations under going project in Lumbini Beverage Pvt. Ltd. Hajipur. The title of my project is A Brief study of Advertisement Strategies in Lumbini Beverages Pvt. Ltd. Hajipur, at this analysis explores my abilities and strengths to its fullest extent for the achievement of organization as well my personal goal.

Introduction to the Study

Marketing is a key factor in business. It is very exciting field. The modern concept of marketing is different form the traditional concept. The old concept was based on the physical movements of goods. In the modern concept, marketing is human activities directed to satisfying needs and wants through exchange process. So, Philip Kotler has defined Marketing is a social and managerial process by which individual and group obtain what they need and want through creating and exchanging product and value with other.According to another marketing Pandit If you do not think customer, you are not thinking.In the undergoing study, the attempt has been made to study the Promotional Strategies carried by Lumbini Beverages Pvt. Ltd. This eight weeks training in the organization was of great help. Though in eight weeks it was no possible to understand it so deeply but overall ideas were developed.

(A) OBJECTIVE OF THE PROJECT

Management is a course which teaches the student to get the work done properly from different available sources viz. man machine material money etc so that there can be a satisfaction from the organization side and the workers side who pay a significant role in achieving success. So far the fulfillment of the management courses it gives emphasis to project work and student tend to develop analytical and problem solving skill. We necessarily become motivated and competitive. In fact all the learning that goes on for the two year term becomes so much the part of our thinking that we developed a well rounded personality.

(i)

Find the depth and width of distribution channel adopted by Lumbini Beverages Pvt. Ltd. And compare them with those followed by competitors.

(ii)

To ascertain the consumer brand perception of soft drink with respect to price product taste quantity and advertising.

(iii)

Study of advertising techniques used by Pepsi.

(iv)

Study of public relations, and personnel selling used by Pepsi.

(v)

Study of promotional strategy used by Pepsi.

(B) IMPORTANCE AND RELEVANCE

Cold drinks were started with the idea of quenching the thirst of the persons traveling. It was also felt that reliable good water was not available everywhere. So people would really on their on their packed bottle and with the idea its makers made these drinks available mostly at those places where water was not available i.e. on highways and long distance trains. But slowly and slowly with its beautiful taste these become very popular and now they are available not in the markets and street corners, but also people have started keeping it in their houses. The credit of popularizing the soft drink goes to Coca-Cola. This was the drink, which was liked by all ladies, gents and children. Now days soft are quenching thirst but looks more often they are taken of habits. Gold spot is considered as the first branded soft drinks established 53 years ago before all empowering coca-cola faced competitions and its euphoric image built up in the western countries helped it get ready clientele and clamor. Parle Export Pvt. Ltd. Be regarded a the first Indian company introducing Limca a Lemon drink complementary to their this had also introduced cola peptone which was withdrawn in face of tough competition from coca cola. When coca cola bid a sad farewell in 1977 Indian market was open for various new forward pushing different brands in the market. Parle day share here again as if happy days went away with coca cola pure drinks of Delhi also without lasting muz, introduced

(Parle drinks were producing and marketing Coca-Cola earlier) campa cola with campa orange and campa lemon. Modern bakeries interested the market with double seven, Mohan making with pick up and McDowell with Thrill, Rush and Sprint. This is Indian market where there was no competition and high voltage advertising was on. Each one was trying their best to become number one company with A class product in the field of Soft Drink Business. Now after a long gap, government of India has given permission to Coca Cola has joined with PAPLE to business in India. They are trying their best to regain prestige which it had before. The archrival of Parle is PEPSI and American Concern. It started business on the Indian Soil just a few years ago. Today, it has occupied 62% share of soft drinks market in India. Now PEPSI is going all out to prove that they are the best. But now to some any factors of competitions, Competitions among them has become stiffen. So in this way the importance activities have in creased.

(C) SCOPE OF THE STUDY

Scope of this study covers a wide range of theoretical application and administration aspect, under which product reaches from the producer to the ultimate consumer. The objective is mainly to find the true value of Business activity of the firm. Finally it will be concluded after successful completion of the studies in respect of fruitful implementation of the knowledge. So gained regarding smooth, and calm business operations for different activities of the firm in present atmospheres. Now a days business organization mainly consists of the follo wing functional areas to be successfully operated which are as Production, material handling, marketing, finance and Personal. Out of these, marketing has a vital role in the successful running of the firm. Our point of study is also related to the marketing. Production department can produce a quality product but unless there is an efficient market to sell the products nothing can be achieved. Hence, we may say that out of these departments marketing has quite important role.In this marketing, there is Promotion Mix, which is also my subject to study. This plays an important role in maintaining good services and also helps in reduction of company cost. The present study also aims to study the existing practices in executing Promotion Mix and suggest any mo dification if required in the existing promotional strategy so that faulty promotional strategy removed for the benefit of the organization.

(D) METHODOLOGY

Marketing Research is the systematic design, collection analysis and reporting of data and finding relevant to a specific marketing situation facing the company The present study of soft drink market in all area of Hajipur is based on survey method. In survey methods, there are two types of survey. One is Census Method and another is Sampling method In this sample method I have taken only a small part of the whole and data collected from the small part are made applicable to the sole i.e. I have taken Hajipur and some adjacent area of Hajipur town. Within the time limit, I tried my best to select the sample representative of the whole group. During my training, I maintained different chart for different routes during my dealer survey. I have collected data from the distributors of Hajipur.

Data Sources: -

Primary data collection involved Distributors, Retailers, and Consumers. Research Approaches: - Survey Research instrument: - Interview Schedule

Sampling Plan: -

Sampling Unit: - Distributors Retailers Consumers Sampling Size: 02 20 150

Sampling Procedure: - Purposive Selection Contact Method: - Personal Interview

Inter interview schedule researcher used multiply choice questions and ranking systems questions.

(E) LIMITATION OF THE STUDY

As I was asked to carry on my vocational training I found the following limitations during my training period. So I could collect every information regarding my topic.

(a) (b)

(c)

Shortage of time factor was one of the biggest constraints. Most stress was given on the primary data as it was difficult to collect secondary data form the organization and distributors since it is difficult to ascertain the authenticity to their statements. All the observations and recommendations will be made on the feed back obtained from survey.

(A) HISTORY OF THE SOFT DRINKS IN INDIA

Christopher Columbus as traveler of world found a lot of new thing which was not in the eye of world community which is now in our history but now if any one does travel to whole part of world to will get one thing in some from that is PEPSI Travel to any corner of the globe you are sure to spot a label splashed in blazing blue red and white becoming you to some Sugared Water. This dark colored drink Willy Milly has today become nothing but spot of an international anthem with young and old rich and poor wants for a sip and saying YEH DIL MANGE MORE. Gold spot is considered as the first branded soft drink, established 53 years ago before all empowering Coca Cola entered the country to dominate the scence. It faced no competition and its euphoric image built up in the western countries helped it to get ready clientele and glamour. Parle Export Pvt. Ltd. Be regarded as the first Indian company introducing Limca, a lemon drank complimentary to their well established Gold spot in 1970 which got moderate success. How ever, before this he had also introduced Cola pepino which was with drawn in face of tough competition from Coca Cola.When Coca Cola bid farewell in 1977, Indian market was open for various cold drinks and

several companies came forward publishing the different brands in the market. Parle people introduced their Cola Thums up with a mighty bang saying HAPPY DAY AREHERE-AGAIN as if happy days want away with coca cola. Pure drinks of Delhi, a lso without losing much time introduced pure drink producing and marketing Coca-Cola earlier campa cola along with campa orange and campa lemon. Modern bakeries entered in the market double seven, Mohar. Making with Marry & Plk-Up McDowell with thrill, Rush and sprint in Indian market where there was no competition previously a cut throat competition and heavy advertising was on. Advertising was on. Each one was trying their best to become the number one company with A -CLASS product in the field of soft drink business.Now after a long gap to Govt. of India has given permission the Coca Cola to start their business in India. Coca Cola has joined hand with parle to be business on the Indian Soil. They are trying best to regain its prestige which it has before. The much rival of Parle is Pepsi and American Concern. It started business the occupied nearly 50% share of soft drink market in India. Now Pepsi is going all out to prove that they are the best.

(B) HISTORY OF PEPSI

PEPSI Co. is a USA based Company having its head quarters at New York with the net worth of $30-40 million. The average sales of the company are approx 90 million bottles per month. PEPSI made it first international move in Russia in 1959. During the KRUSCHEV era. Within 32 years PEPSI emerged as the biggest competitor for Coca Cola. PEPSI is available in 155 countries.

In any soft drink is read on the globe that is Pepsi food is one of the largest soft drink companies in the world with its head quarters in New York. It was in vented by Jpharmachist Culab D. Baradham in 1898 to cure the disease disparsia. It is from this word that its name was related to Pepsi. Soon it entered the American market as soft which at that time was mostly dominated by Coca Cola but soon Pepsi able to dominate the Cola market and there after it has been no looking back. Pepsi and coca cola are engaged in ferocious cola war that has taken the whole world by storm.

Pepsi entered the Indian soft drink in KANPUR in 1988 and began its production in May 1990 and soon it was giving the local contenders the rum for their money in soft drink market. It came out with dazzling marketing innovation that rocked the cola market likes selling the product through function

Pepsi outlets. Its advertisement agency was (HTA) Hindustan Thomson Association Its advertisement budget for 1995-1996 was valued at Rs. 24 crores which likely to be increased manifold in coming years.

Pepsi food is one of the largest and best foreign investments in India. Till today it has investment over Rs. 500 Crores in India to bottle its total product. There are 28 bottling plants of Pepsi in India. Some are directly controlled by Pepsi and rests are under various franchise.

Pepsi stands 51 positions among the fortunate companies of the worked. Its total capital is approx $3000 crores and total sales annually is worth $37 crores. Its total profit in the year in the business is 45.25 lakhs globally.

In April 1997 the Pepsi cola international decided that city beverages will cover south Bihar (now Jharkhand) only. It this accordance Pepsi cola international decided to open another bottling plant at Hajipur named LUMBINI BEVERAGES Pvt. Ltd. Hajipur which will distribute Pepsi of Lumbini Beverages Pvt. Ltd. Hajipur started functioning in April 1977 managing Director of Lumbini Beverages Pvt. Ltd. Hajipur Mr. Charan Khelani. Mr. Charan Khelani is a big industrialist of Bengal. The director of this organization is Mr. Rajiv Khelani.