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-To have a proper balance between the theory and practical knowledge
SCOPE OF STUDY:
- This study only focuses on problems related to distribution, services & storage capacity of
the retailers related to PepsiCo.
- This study is only related to area nearby jalandhar and some part of phagwara.
- This study also helps to the distributors to know the satisfaction of the retailers about the
distribution services.
- This study help to the distributors to know the stock of both companies products
maintaining by the different retailers.
Data Collection
There are two types of data considered for collecting information.
Primary Data
Data has been mainly collected form primary source. The method was combination of
direct personal interview , mostly data being collected by meeting soft drink retailers
directly. As per the nature of my study I have collected primary information from customers
and also from the company officials.
Secondary Data
Data have obtained regarding the information relates to soft drink industry profile i.e.
industry growth, present status of industrial background, govt. And trade report, company
records, sales force reports etc. To study the basic of comparative study I have referred
various marketing related books and magazines. Also to collect the information about
company & industry I have referred various sites.
INDUSTRY PROFILE
INDUSTRY PROFILE
The Indian FMCG industry witnessed significant changes through the 1990s. Many
players had been facing severe problems on account of increased competition from
small and regional players and from slow growth across its various product
categories. As a result, most of the companies were forced to revamp their product,
marketing, distribution and customer service strategies to strengthen their position in
the market.
By the turn of the 20th century, the face of the Indian FMCG industry had changed
significantly. With the liberalization and growth of the Indian economy, the Indian
customer witnessed an increasing exposure to new domestic and foreign products
through different media, such as television and the Internet. Apart from this, social
changes such as increase in the number of nuclear families and the growing number
of working couples resulting in increased spending power also contributed to the
increase in the Indian consumers' personal consumption. The realization of the
customer's growing awareness and the need to meet changing requirements
and preferences on account of changing lifestyles required the FMCG
BEVERAGES
NON-
A L C O H O L IC
A L C O H O L IC
NON-
CARBO N ATED
CARBO N ATED
C O LA N O N -C O L A N O N -C O L A
The beverage industry is vast and there various ways of segmenting it, so as to cater the right
product to the right person. The different ways of segmenting it are as follows:
v Alcoholic, non-alcoholic and sports beverages.
v Age wise segmentation i.e. beverages for kids, for adults and for senior citizens.
v Segmentation based on the amount of consumption i.e. high levels of consumption and low
levels of consumption.
If the behavioural patterns of consumers in India are closely noticed, it could be observed that
consumers perceive beverages in two different ways i.e. beverages are a luxury and that beverages
have to be consumed occasionally. These two perceptions are the biggest challenges faced by the
beverage industry. In order to leverage the beverage industry, it is important to address this issue so
as to encourage regular consumption as well as and to make the industry more affordable.
Four strong strategic elements to increase consumption of the products of the beverage industry in
India are:
v The quality and the consistency of beverages needs to be enhanced so that consumers are
satisfied and they enjoy consuming beverages.
v The credibility and trust needs to be built so that there is a very strong and safe feeling that the
consumers have while consuming the beverages.
v Consumer education is a must to bring out benefits of beverage consumption whether in terms of
health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant to the category.
v Communication should be relevant and trendy so that consumers are able to find an appeal to go
out, purchase and consume.
v The beverage market has still to achieve greater penetration and also a wider spread of
distribution. It is important to look at the entire beverage market, as a big opportunity, for
brand and sales growth in turn to add up to the overall growth of the food and beverage
industry in the economy.
COMPANY PROFILE
1.1 (A) INTRODUCTION TO PEPSICO INDIA
PepsiCo entered India in 1989 and has grown to become the countrys largest
selling food and Beverage Company. 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.
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 Chips and
traditional snacks under the Kurkure and Lehar brands and the recently
launched Aliva savoury crackers. The Companys high fiber breakfast cereal,
Quaker Oats, and low fat and roasted snack options enhance the healthful
choices available to consumers. Frito Lays core products, Lays, Kurkure,
Uncle Chips and Cheetos are cooked in Rice Bran Oil to significantly reduce
saturated fats and all of its products contain voluntary nutritional labeling on
their packets.
The group has built an expansive beverage and foods business. To support its
operations, PepsiCo has 36 bottling plants in India, of which 13 are Company
Owned and 23 are franchisee owned. In additional 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.
A BRIEF PROFILE OF PEPSICO
PepsiCo Brands
PEPSI SEASONS BEST
SABRITAS RUFFLES
FRAPPUCCINO 7UP
MIRINDA LAYS
AQUAFINA TOSTITOS
We are discussing the marketing mix of Pepsi. We know that the marketing mix
is a dynamic process and is always changing with respect to price and
promotion. Thus, kudos to Pepsi, which has always kept changing their
marketing mix with the changing enviroment .Here is the Pepsi marketing mix
or the 4Ps of Pepsi.
Beverages
Soft drinks 7up, Dukes, Mirinda,Mountain dew, Nimbooz, Pepsi,
Slice,Tropicana,
Mineral / Bottled water Aquafina
Sports Drink Gatorade
Food products
Snacks Cheetos, Kurkure, Lays, Lehar, Uncle chipps
Breakfast Quaker oats
Thus, Pepsi, unlike its major competitor Coca cola, has expanded in the
breakfast as well as snacks segment. Coca cola on the other hand is present only
in the beverages section. The advantage of Pepsis snacks segment is that
brands like Lays, Kurkure and Cheetos are in great demand. Quaker oats which
is a recent addition is also increasing in demand. Thus the turnover resulting
from the Food products is helping the bottom line of the company.
However, Pepsi has to lower its price for the top retailers and bulk buyers. For
example Indian retailers like Big bazer,Relaince fresh, as well as hypercity are
bulk buyers. Similarly fast food chains like Mcdonalds,KFC are also bulk
buyers. These bulk buyers negotiate with the soft drink brands on the basis of
price and sell their products in huge quantities. Thus, pepsi has to drop prices in
these places which affects the operating margin of the brand.The margins of the
company are better through the distributors and lesser through bulk buyers.
However, the sales of the company are higher to bulk buyers as compared to
distributors.
As cost is saved in the 2nd example, companies are able to give better margins
to Bulk buyers. The major challenge in distribution is the cost of bottling as
well as the cost of transportation.
Bottling of Pepsi is done at bottling plants. In India, Pepsi has 36 bottling plants
out of which 13 are franchisees whereas 23 are company owned. The soft drink
once packed is moved to the company warehouse from where it goes to
distributors and bulk buyers.
One of the strongest reason Pepsi retains its brand image is its promotions.
Pepsi targets mainly youngsters through various Brand ambassadors. In India,
the brand ambassadors have been the best celebrities as well as sports person of
the country including Sachin tendulkar, M S Dhoni, Amitabh Bacchan, Ranbir
kapoor and others.
Mountain dew has a message of Darr ke age jeet hai which is again focused
on adventure sports thereby targeting youngsters. Snacks like Kurkure and Lays
target different segments. Kurkure is known to target household snacks and
middle aged group whereas Lays targets youngsters and the party mood.
Gatorade targets only sports as it is a sports drink. And Quaker oats, which is a
recent launch as compared to the other products, targets breakfast with a bit of
masala.
Pepsi uses all the media channels for its promotions. Along with ATL, pepsi is
also present in BTL marketing. Furthermore, along with traditional media
channels, Pepsi also uses trade promotions and sales promotions at point of
purchase. Discounts and packaging are always being bundled to give the best
combination and value to the customer to increase purchases as well as the
brand equity.
The bottomline is that Pepsi cannot exist without the proper promotions. This is
because Pepsi belongs in the FMCG market, and in FMCG, you either perform
or perish. The FMCG market is one of the toughest market for businesses.
However, Pepsi is not only surviving, but it is thriving in the FMCG market.
Thus, hoping that Pepsi keeps re inventing its marketing mix so that it remains
in the top 2 category of soft drinks.
* Its brand.
* Huge market coverage, company existence not only in urban area but also
in the rural area
* Large number of product line to satisfy consumer.
* Verity of scheme for the retailer throughout the year. So, that retailer will
earn huge profit and also get satisfaction after selling PepsiCo product.
* Company also gives time to time schemes for the consumer. So that, final
consumer interest for repurchase &enjoy the benefit.
* PepsiCo Indias Agri-Partnerships with farmers help farmers across the
country earn
* Good CSR Image.
Pepsi has sponsored many international events such as ICC cricket world cup,
FIFA world cup 2015 and many others which enhanced its brand equity. Equity
is derived from peoples willingness to pay a premium for the brand and an
unwillingness to accept substitutes.
Although in developed nations demands have already been saturated due to the
presence of large number of alcoholic & non-alcoholic beverages companies. In
the non-alcoholic beverage industry, the chances of customer switching to
another brand or complementary products such as mineral water, tea/ coffee are
very high.
Customer analysis in the Marketing strategy of Pepsi
A customer of Pepsi is retail customers and the resellers. In the reseller segment
grocery stores, wholesalers, distributors, convenience stores, Pops & moms
store, e-commerce e-tailers are the customers of the Pepsi. In Retail segment,
customers from all age groups are the potential customers since its a mass
market product. Some of their products are specifically meant for some section
of the society like Pepsi diet & Zero-O- Sugar for all those who are health
conscious.
1. The company providing good services but more retailers is facing problems
with the delivery of products by the company in summer period. In summer
time retailers are not get delivery on time that why they prefers other companies
products. So, Company should try to provide their product in summer period on
time.
2. The Company should provide the refrigerators to the retailers. Some retailers
who dont have refrigerators but they want to sale the Companys products if
Company provide the refrigerators.
3. For the increasing the sales of the Companys products Company should
provide the promotional tools to their retailers.
4. Some are as are facing problems related to delivery. The Company should
provide the delivery to that areas which are facing the problems of getting
product on time.
The major Problem is the delivery of the products on time in summer season.
Last summer season more retailers were not getting the products of PepsiCo on
time. The Company should try to provide the delivery of products on time in the
Summer Seasons.
CONCLUSION
Web sites
A. www.indiadairy.co
B. www.google.co.in
C. www.pepsicoindia.com