TITLE PAGE AKNOWLEDGEMENT PRESENTED TO: PRESENTED BY: PURPOSE:

CHAPTER 1 : PROFILES THE SOFT DRINK MARKET HISTORY OF PEPSI HISTORY OF PEPSI IN INDIA VISION & MISSION OF PEPSICO VARUN BEVERAGES LIMITED

CHAPTER 2 : INTRODUCTION THE TOPIC OBJECTICVES OF THE STUDY CHAPTER 3 : METHODOLOGY RESEARCH METHODOLOGY BCG MATRIX SWOT ANALYSIS PLAN-O-GRAM MARKETING MIX

CHAPTER 4 : CONCLUSION FINDINGS RECOMMENDATIONS CONCLUSIONS DATA CHAPTER 5 : QUESTIONNAIRE BIBLIOGRAPHY

MARKETING STRATEGIES OF PEPSICO

I am truly indebted to the following people from Varun Beverages Limited for allowing me to work with the distributor points and conduct my survey: Mr. George Joseph (Stores Manager) Mr. Abhay Paul (H.R Manager) Mr. Sandip Chatterjee (Customer Executive) Mr. Aniruddha Guha (Customer Executive) Amarnath Mitra, Somnath Samaddar, Sudip Das (Sales Executives) The owners of all distributor points and the public in general Mr. Sanjay Bera(Asst. Marketing Manager) I also take this opportunity to thank our Head of the Department, Mrs. Rupa Bhattacharjee and our teachers Mr. Sudip Ghosh and Mr. Ajay Kr.Ganguly for providing us in depth knowledge about the subject matter. Without the support from the people mentioned above this project would not have been what it is.

The Soft Drink Market

Non-alcoholic soft drink beverage market can be divided into fruit drinks and soft drinks. Soft drinks can be further divided into carbonated and non-carbonated drinks. Cola, lemon, oranges are carbonated drinks while mango drinks comc under non carbonated category.The soft drinks market till early 90s was in hands of domestic players like Campa, Thumps Up, Limca etc but with opening up of economy and coming of MNC players Pepsi and Coke the market has come totally under their control. While world wide Coke is the leader in carbonated drinks market in India it is Pepsi which scores over Coke but this difference is fast decreasing (Courtesy huge adspending by both the players). Pepsi entered Indian market in 1991, Coke re-entered (After they were thrown out in 1977, by the then central government) in 1993. Pepsi has been targeting its products towards youth and it has struck right chord with the market and the sales have been doing well by sticking to this youth bandwagon. Coke on the other hand struggled initially in establishing itself in the market. In a span of 7 years of its operations in the country, it changed its CEO four times but finally they seem to have st311edunderstanding the pulse of Indian consumers. Soft drinks are available in glass bottles, aluminum Cans and PET bottles for home consumptions. Fountains also dispense them in disposable containers.

History of soft drink in India

India is a potentially one of the largest consumer market in the world.Soft drink is a typical product, which quenches thirst and also used for refreshment. In old days people used to quench their thirst by taking water, Jal jeera, Lassi, Sharbat, Ganna Juice elc. which slill prevailing in the market. But as the people require more advance and efficient drink, so there felt a need for more sophisticated means of satisfying thirst, which ultimately gave to the production of modern soft drink. A soft drink is a non alcoholic beverage. It is artificially flavored drink, which contains no fruit juice or pulp. Introduction of soft drink in the name of COCA-COLA was first created in 1886 in USA.Dr. John S. Perfector perfected the formula of Coca-Cola. The parle came up by introducing Gold Spot in orange tlavor. It was really (1challenging task for parle to position i. e Gold Spot in the market against Coca-Cola, because using foreign brands habituated people. So first of all, it was

launched in Bombay and free sampling was done in hotels, restaurant, offices and clubs to make people aware about the taste and quality because it was quite different from Coca-Cola in these two attribute. After a tedious effort of about 20 years, it succeeded in establishing its separate identity. Thus Coca-Cola was the first foreign brand introduced in India during 1965and the first Indian brand soft drink was Gold Spot launch in the later part of 1940s. During the rule of Janta Party at center in 1978, the Indian government cancelled collaboration with USAs Coca-Cola company and as a result Coca-Cola winded up its operation in India. Now Indian market was open for various cold drinks. Several companies came forward pushing the different brands in the market. Parle introduced Thums Up. Pure drink of Delhi introduced Campa-Cola along with Campa Orange and Campa-Cola. Modern bakeries introduced double seven.Mohan Meaking came up with Marry and Pick Up and MC.Dowell came up with thrill, Rush sprint in Indian market. umpin (Godrej) and treeto (Li pton) entered wi th tetra pack and started grabbing the market in the absence of Coca-Cola. In 1991,a multinational company globally known as P.C. 1. (Pepsi Cola International) entered the Indian market with the name P.F.L. (Pepsi Food Limited). Its president Christopher found a large scope for their soft drink in India. Both PFL and Parle were the two main bottlers in the soft drink arena. There was a cut throat competition between them.1993, Coca-Cola re-entered into the Indian market and acquired five brands of parle i.e Thums !Up, Limca, Citra, Maza and Gold-Spot. Thus in India, Coca-Cola has become the close rival of Pepsi Foods Limited (PFL). They are fighting each other to gain a clear edge over the other. A present, Pepsi Foods Limited has 44 bottling plants while Coca-Cola has 62 bottling plants. The total money invested by Pepsi Foods Ltd. is 500 million dollars while Coca-Cola has invested 800 million dollars in India. The Indian soft drink market was growing at an encouraging 16% per annum which augured well for both the companies.

HISTORY OF PEPSICO
In 1902, he launched the Pepsi-Cola Company in the back room of his pharmacy, and applied to the U.S. Patent Office for a trademark. At first, he mixed the syrup himself and sold it exclusively through soda fountains. But soon Caleb recognized that a greater opportunity existed to bottle Pepsi so that people could drink it anywhere. The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially registered with the U.S. Patent Office. That year, Caleb sold 7,968 gallons of syrup, using the theme line "Exhilarating, Invigorating, Aids Digestion." He also began awarding franchises to bottle Pepsi to independent investors, whose number grew from just two in 1905, in the cities of Charlotte and Durham, North Carolina, to 15 the following year, and 40 by 1907. By the end of 1910, there were Pepsi-Cola franchises in 24 states. Pepsi-Cola's first bottling line resulted from some less-than-sophisticated engineering in the back room of Caleb's pharmacy. Building a strong franchise system was one of Caleb's greatest achievements. Local Pepsi-Cola bottlers, entrepreneurial in spirit and dedicated to the product's success, provided a sturdy foundation. They were the cornerstone of the Pepsi-Cola enterprise. By 1907, the new company was selling more than 100,000 gallons of syrup per year. Growth was phenomenal, and in 1909 Caleb erected a headquarters so spectacular that the town of New Bern pictured it on a postcard. Famous racing car driver Barney Oldfield endorsed Pepsi in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer before a race." The previous year, Pepsi had been one of the first companies in the United States to switch from horse-drawn transport to motor vehicles, and Caleb's business expertise captured widespread attention. He was even mentioned as a possible candidate for Governor. A 1913 editorial in the Greensboro Patriot praised him for his "keen and energetic business sense." Pepsi-Cola enjoyed 17 unbroken years of success. Caleb now promoted Pepsi sales with the slogan, "Drink Pepsi-Cola. It will satisfy you." Then cameWorld War I, and the cost of doing business increased drastically. Sugar prices see sawed between record highs and disastrous

was forced into a series of business gambles just to survive, until finally, after three exhausting years, his luck ran out and he was bankrupted. By 1921, only two plants remained open. It wasn't until a successful candy manufacturer, Charles G. Guth, appeared on the scene that the future of Pepsi-Cola was assured. Guth was president of Loft Incorporated, a large chain of candy stores and soda fountains along the eastern seaboard. He saw Pepsi-Cola as an opportunity to discontinue an unsatisfactory business relationship with the Coca-Cola

Company, and at the same time to add an attractive drawing card to Loft's soda fountains. He was right. After five owners and 15 unprofitable years, Pepsi-Cola was once again a thriving national brand. One oddity of the time, for a number of years, all of Pepsi-Cola's sales were actually administered from a Baltimore building apparently owned by Coca-Cola, and named for its president. Within two years, Pepsi would earn $1 million for its new owner. With the resurgence came new confidence, a rarity in those days because the nation was in the early stages of a severe economic decline that came to be known as the Great Depression. 1898 Caleb Bradham, a New Bern, North Carolina, pharmacist, renames "Brad's Drink," a carbonated soft drink he created to serve his drugstore's fountain customers. The new name, Pepsi-Cola, is derived from two of the principal ingredients, pepsin and kola nuts. It is first used on August 28. 1902 Bradham applies to the U.S. Patent Office for a trademark for the Pepsi-Cola name. 1903 In keeping with its origin as a pharmacist's concoction, Bradham's advertising praises his drink as "Exhilarating, invigorating, aids digestion." 1905 A new logo appears, the first change from the original created in 1898. 1906 The logo is redesigned and a new slogan added: "The original pure food drink." The trademark is registered in Canada. 1907 The Pepsi trademark is registered in Mexico. 1909 Automobile racing pioneer Barney Oldfield becomes Pepsi's first celebrity endorser when he appears in newspaper ads describing Pepsi-Cola as "A bully

drink...refreshing, invigorating, a fine bracer before a race." The theme "Delicious and Healthful" appears, and will be used intermittently over the next two decades. 1920 Pepsi appeals to consumers with, "Drink Pepsi-Cola. It will satisfy you." 1932 The trademark is registered in Argentina. 1934 Pepsi begins selling a 12-ounce bottle for five cents, the same price charged by its competitors for six ounces. 1938 The trademark is registered in the Soviet Union.

1939 A newspaper cartoon strip, "Pepsi & Pete," introduces the theme "Twice as Much for a Nickel" to increase consumer awareness of Pepsi's value advantage. 1940 Pepsi makes advertising history with the first advertising jingle ever broadcast nationwide. "Nickel, Nickel" will eventually become a hit record and will be translated into 55 languages. A new, more modern logo is adopted. 1941 In support of America's war effort, Pepsi changes the color of its bottle crowns to red, white and blue. A Pepsi canteen in Times Square, New York, operates throughout the war, enabling more than a million families to record messages for armed services personnel overseas. 1943 The "Twice as Much" advertising strategy expands to include the theme, "Bigger Drink, Better Taste." 1949 "Why take less when Pepsi's best?" is added to "Twice as Much" advertising. 1950 "More Bounce to the Ounce" becomes Pepsi's new theme as changing soft drink economics force Pepsi to raise prices to competitive levels. The logo is again updated. 1953 Americans become more weight conscious, and a new strategy based on Pepsi's lower caloric content is implemented with "The Light Refreshment" campaign. 1954 "The Light Refreshment" evolves to incorporate "Refreshing Without Filling." 1958 Pepsi struggles to enhance its brand image. Sometimes referred to as "the kitchen cola," as a consequence of its long-time positioning as a bargain brand, Pepsi now identifies itself with young, fashionable consumers with the "Be Sociable,

Have a Pepsi" theme. A distinctive "swirl" bottle replaces Pepsi's earlier straight-sided bottle. 1959 Soviet Premier Nikita Khrushchev and U.S. Vice-President Richard Nixon meet in the soonto-be-famous "kitchen debate" at an international trade fair. The meeting, over Pepsi, is photocaptioned in the U.S. as "Khrushchev Gets Sociable." 1961 Pepsi further refines its target audience, recognizing the increasing importance of the younger, post-war generation. "Now it's Pepsi, for Those who think Young" defines youth as a state of mind as much as a chronological age, maintaining the brand's appeal to all market segments.

1963 In one of the most significant demographic events in commercial history, the post-war baby boom emerges as a social and marketplace phenomenon. Pepsi recognizes the change, and positions Pepsi as the brand belonging to the new generation-The Pepsi Generation. "Come alive! You're in the Pepsi Generation" makes advertising history. It is the first time a product is identified, not so much by its attributes, as by its consumers' lifestyles and attitudes. 1964 A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising. 1966 Diet Pepsi's first independent campaign, "Girlwatchers," focuses on the cosmetic benefits of the low-calorie cola. The "Girlwatchers" musical theme becomes a Top 40 hit. Advertising for another new product, Mountain Dew, a regional brand acquired in 1964, airs for the first time, built around the instantly recognizable tag line, "Ya-Hoo, Mountain Dew!" 1967 When research indicates that consumers place a premium on Pepsi's superior taste when chilled, "Taste that beats the others cold. Pepsi pours it on" emphasizes Pepsi's product superiority. The campaign, while product-oriented, adheres closely to the energetic, youthful, lifestyle imagery established in the initial Pepsi Generation campaign. 1969 "You've got a lot to live. Pepsi's got a lot to give" marks a shift in Pepsi Generation advertising strategy. Youth and lifestyle are still the campaign's driving forces, but with "Live/Give," a new awareness and a reflection of contemporary events and mood become integral parts of the advertising's texture. 1973 Pepsi Generation advertising continues to evolve. "Join the Pepsi People, Feelin' Free" captures the mood of a nation involved in massive social and political change. It pictures us the way we are-one people, but many personalities.

1975 The Pepsi Challenge, a landmark marketing strategy, convinces millions of consumers that Pepsi's taste is superior. 1976 "Have a Pepsi Day" is the Pepsi Generation's upbeat reflection of an improving national mood. "Puppies," a 30-second snapshot of an encounter between a very small boy and some even smaller dogs, becomes an instant commercial classic. 1979 With the end of the '70s comes the end of a national malaise. Patriotism has been restored by an exuberant celebration of the U.S. bicentennial, and Americans are looking to the future with renewed optimism. "Catch that Pepsi Spirit!" catches the mood and the Pepsi Generation carries it forward into the '80s.

1982 With all the evidence showing that Pepsi's taste is superior, the only question remaining is how to add that message to Pepsi Generation advertising. The answer? "Pepsi's got your Taste for Life!," a triumphant celebration of great times and great taste. 1983 The soft drink market grows more competitive, but for Pepsi drinkers, the battle is won. The time is right and so is their soft drink. It's got to be "Pepsi Now!" 1984 A new generation has emerged-in the United States, around the world and in Pepsi advertising, too. "Pepsi. The Choice of a New Generation" announces the change, and the most popular entertainer of the time, Michael Jackson, stars in the first two commercials of the new campaign. The two spots quickly become "the most eagerly awaited advertising of all time." 1985 Lionel Richie leads a star-studded parade into "New Generation" advertising followed by pop music icons Tina Turner and Gloria Estefan. Sports heroes Joe Montana and Dan Marino are part of it, as are film and television stars Teri Garr and Billy Crystal. Geraldine Ferraro, the first woman nominated to be vice president of the U.S., stars in a Diet Pepsi spot. And the irrepressible Michael J. Fox brings a special talent, style and spirit to a series of Pepsi and Diet Pepsi commercials, including a classic, "Apartment 10G." 1987 After an absence of 27 years, Pepsi returns to Times Square, New York, with a spectacular 850-square foot electronic display billboard declaring Pepsi to be "America's Choice." 1988 Michael Jackson returns to "New Generation" advertising to star in a four-part "episodic" commercial named "Chase." "Chase" airs during the Grammy

Awards program and is immediately hailed by the media as "the most-watched commercial in advertising history." 1989 "The Choice of a New Generation" theme expands to categorize Pepsi users as "A Generation Ahead!" 1990 Teen stars Fred Savage and Kirk Cameron join the "New Generation" campaign, and football legend Joe Montana returns in a spot challenging other celebrities to taste test their colas against Pepsi. Music legend Ray Charles stars in a new Diet Pepsi campaign, "You got the right one baby." 1991 "You got the Right one Baby" is modified to "You got the Right one Baby, Uh-Huh!" The "Uh-Huh Girls" join Ray Charles as back-up singers and a campaign soon to become the most popular advertising in America is on its way. Supermodel Cindy Crawford stars in an awardwinning commercial made to introduce Pepsi's updated logo and package graphics.

1992 Celebrities join consumers, declaring that they "Gotta Have It." The interim campaign supplants "Choice of a New Generation" as work proceeds on new Pepsi advertising for the '90s. Mountain Dew growth continues, supported by the antics of an outrageous new Dew Crew whose claim to fame is that, except for the unique great taste of Dew, they've "Been there, Done that, Tried that." 1993 "Be Young, Have fun, Drink Pepsi" advertising starring basketball superstar Shaquille O'Neal is rated as best in U.S. 1994 New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi CEO Craig Weatherup explaining the relationship between freshness and superior taste to consumers. 1995 In a new campaign, the company declares "Nothing else is a Pepsi" and takes top honors in the year's national advertising championship.

HISTORY OF PEPSICO IN INDIA

As an MNC on the globe, Pepsi Foods Ltd. is one of the largest soft drink company at the world with its head quarter in New York.Pepsi entered in the Indian soft drink market in 1988 and began its production in May, 1990 and soon it was giving the local contenders the run for their market. It came out with dazzling marketing innovation that rocked the cola market line selling the product through functional Pepsi outlets. Pepsi success in creating a brand almost from scratch. In India it is the stuff that marketing case studies are made given the problems of doing over advai1tage it entered before coke returned was considerable reduced by the onerous export obligation slapped on the company. Yet right from the beginning Pepsi demonstrated a far more focused approach while it entered The market like any other MNC, it was quick to adopt. It realize that consumer particularly the youth to whom it consciously reached out would identify better with a brand that they see as global yet India Pepsi was built as desi brand. Hence its deliberate attempt to build adcampaign using the popular Hinglish, in the process slogans like yehi hai right choice baby Aha and yeh dil mange more become a part of indias popular consciousness. When Pepsi lost the bidding battle to sponsor a cricket tournament to coke, the loss was turned into a triumph with the catch line Nothing official about it. Two, it cashed in on the untapped consumer aspiration in smaller towns, tehsils head quarters and hinter-land of metropolitan cities. Three,

it showed a rare ability to not only survive, but grow through Indias tortuous policy twist and turns which threw many other MNCs offbalance. And four its top management teams did not suffer from frequent changes seen at rivals, Coke consequently it was able to pursue it chosen policy with for greater zeal and dedication. Unlike Coke which paid enormous prices to buy established local brands. Pepsi brought it own stuff over and pushed those aggressively wittl dealers, retailers and consumer. Right now, it can bark in its outstanding success inbuil, dinga brand that has become synonymous with soft drinks across the length and breadth of the country.

MISSION & VISION OF THE PEPSICO Our Mission Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors even 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.

Our Vision PepsiCo's responsibility is to continually improve all aspects of the world in which we operate environmental, social, economic creating a better tomorrow than today.

Our vision is put into action through programmes and a focus on environmental stewardship, activities to benefit society and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

Performance with Purpose At PepsiCo, we're committed to achieving business and financial success while leaving a positive imprint on society delivering what we call Performance with Purpose.

Our approach to superior financial performance is straightforward drive shareholder value. By addressing social and environmental issues, we also deliver on our purpose agenda, which consists of human, environmental, and talent sustainability.

VARUN BEVERAGES LIMITED

Varun Beverages Limited, a bottling company, engages in bottling and distribution of Pepsi. The company was incorporated in 1995 and is based in Gurgaon, India. Varun Beverages Limited operates as a subsidiary of RJ Corp Limited.In West Bengal it is situated in Sonarpur.

COMPANY ANALYSIS According to the Individual - Audited financial statement for the Year of 2011, total net operating revenues increased with 66.87%, from INR 466.31 tens of millions to INR 778.11 tens of millions. Operating result increased from INR 73.79 tens of millions to INR 97.42 tens of millions which means 32.02% change. The results of the period increased 1.51% reaching INR 22.2 tens of millions at the end of the period against INR 21.87 tens of millions last year. Return on equity (Net income/Total equity) went from 10.16% to 11.39%, the Return On Asset (Net income / Total Asset) went from 4.83% to 3.78% and the Net Profit Margin (Net Income/Net Sales) went from 4.69% to 2.85% when compared to the same period of last year. The Debt to Equity Ratio (Total Liabilities/Equity) was 301.14% compared to 210.28% of last year. Finally, the Current Ratio (Current Assets/Current Liabilities) went from 3.51 to 2.26 when compared to the previous year.

THE TOPIC
Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives.Plans and objectives are generally tested for measurable results. Commonly, marketing strategies are developed as multi-year plans, with a tactical plan detailing specific actions to be accomplished in the current year. Time horizons covered by the marketing plan vary by company, by industry, and by nation, however, time horizons are becoming shorter as the speed of change in the environment increases.Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. See strategy dynamics. Marketing strategy involves careful scanning of the internal and external environments.Internal environmental factors include the marketing mix, plus performance analysis and strategic constraints.External environmental factors include customer analysis, competitor analysis, target market analysis, as well as evaluation of any elements of the technological, economic, cultural or political/legal environment likely to impact success.A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement. Once a thorough environmental scan is complete, a strategic plan can be constructed to identify business alternatives, establish challenging goals, determine the optimal marketing mix to attain these goals, and detail implementation.A final step in developing a marketing strategy is to create a plan to monitor progress and a set of contingencies if problems arise in the implementation of the plan. Types of strategies

This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (June 2008) Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below:

Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies: Leader Challenger Follower Nicher Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firms sustainable competitive advantage. The generic strategy framework (porter 1984) comprises two alternatives each with two alternative scopes. These are Differentiation and low-cost leadership each with a dimension of Focus-broad or narrow. ** Product differentiation ** Cost leadership ** Market segmentation * Innovation strategies This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types: ** Pioneers ** Close followers ** Late followers * Growth strategies In this scheme we ask the question, How should the firm grow?. There are a number of different ways of answering that question, but the most common gives four answers: Horizontal integration Vertical integration Diversification Intensification A more detailed scheme uses the categoriesMiles, Raymond (2003). Organizational Strategy, Structure, and Process. Stanford: Stanford University Press. ISBN 0-8047-4840-3.: Prospector Analyzer Defender Reactor

Marketing warfare strategies - This scheme draws parallels between marketing strategies and military strategies. Strategic models

This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (June 2008) Marketing participants often employ strategic models and tools to analyze marketing decisions. When beginning a strategic analysis, the 3Cs can be employed to get a broad understanding of the strategic environment. An Ansoff Matrix is also often used to convey an organization's strategic positioning of their marketing mix. The 4Ps can then be utilized to form a marketing plan to pursue a defined strategy. There are many companies especially those in the Consumer Package Goods (CPG) market that adopt the theory of running their business centered around Consumer, Shopper & Retailer needs. Their Marketing departments spend quality time looking for "Growth Opportunities" in their categories by identifying relevant insights (both mindsets and behaviors) on their target Consumers, Shoppers and retail partners. These Growth Opportunities emerge from changes in market trends, segment dynamics changing and also internal brand or operational business challenges.The Marketing team can then prioritize these Growth Opportunities and begin to develop strategies to exploit the opportunities that could include new or adapted products, services as well as changes to the 7Ps. Marketing strategies form the most important planning element in the FMCG market owing to the dynamic consumer behavior and the stiff competition.

OBJECTIVES OF THE STUDY

The survey was conducted by keeping following objectives in view: The survey was done to find out the present status of PEPSI in the retail outlets. To find the receptivity of the brand among the retailers and consumers particularly of eating and drinking, grocery store, and convenience shops. To study of distribution and marketing strategy of pepsi, the major competitor in this category. To collect data about the retailers that can be used for activating new channels and merchandising opportunities. To find out wavs to increase the sales of the new launches in different places.

SCOPE OF THE STUDY

Through this study company can know about its growth. This study will also help to the company to know about their new concepts position in the market. This study will also help to the company to know about its promotional activities. Through this study company will know about the availability of its products in the market.

RESEARCH METHODOLOGY
Market survey Interview of marketing personnels Interview of distributor owners,retailers and the public Interview of the sales and customer executives Sample size in market survey-100 people and 100 retailers

LIMITATIONS
All the retailers were not so cooperative and did not answer the questions properly The public at times were impatient and answered the questions without thinking The retailers and distributors might not have answered all questions honestly due to some grudge against the company or to hide some data

BCG MATRIX OF PEPSICO BEVERAGES

NIMBOOZ MASALA MIRINDA PINEAPPLE MIRINDA

SLICE MOUNTAIN DEW

QUESTION MARK

STAR

PEPSI 7 UP

LEHAR SODA DIET PEPSI MIRINDA ORANGE AQUAFINA

CASH COW

DOG

SWOT ANALYSIS
STRENGTHS: 1.Pepsico has successfully roped in youth icons such as ViratKohli,M.S.Dhoni,SureshRaina,Drogba,Lampard,Torres,Salman Khan,Sharman Joshi,Ranbir Kapoor as the ambassadors of its various brands. 2.The sweet and not so strong taste is preferred by some people. 3.The punch lines like Change the game , I feel up,Aamsutra ,Darr ke aage jeet hai are a rage with the young generation. 4.The tie ups with Monginis,Nicco park,etc have contributed to the soaring sales figure. 5.The 3-tier distribution channel works well as it reduces the unnecessary hassles. 6.Pepsico provides better schemes than Coca cola.

WEAKNESSES: 1.Majority of the consumers do not like the sweet taste of the Pepsico soft drinks as those do not fizz on opening the bottles. 2.The company incurs colossal amount of money on advertisements. 3.The failure to tie up with eateries like KFC,McDonalds has resulted in the loss of a chunk of the young consumers. 4.Lack of promotion for Diet Pepsi even in this health conscious society is a major folly. 5.The steep price of Aquafina has reduced sales. 6.The visicoolers come at a huge price which results in many retailers backing out from buying the visicoolers.

OPPORTUNITIES 1.Revamping the image of Diet Pepsi by making use of the health and fitness concerns of the modern society.

2.Tie ups with eateries and cafes to target the youth at their favourite hangout places. 3.Introducing diffrerent flavours.

THREATS 1.The economic crisis of the country. 2.Possibilities in hike in taxes. 3. Stiff competition from other brands.

PLAN-O-GRAM
Pepsico provides visicoolers (Refrigerators fitted with glass door) to Pepsi outlets,so that the retailers can provide chilled cold drinks to consumers.This also increases the sale of Pepsi products.Visi coolers are of various sizes for instance 165 ltr,200 ltr,220 ltr,300 ltr,320 ltr,400 ltr,440 ltr,650 ltr,1200 ltr and so on. Plan-o-Gram is the process of filling of visi cooler with bottles of Pepsi and other Pepsi products i.e.,7UP,Mirinda,Slice,Mountain Dew,Aquafina, and Lehar Soda according to the sequence prescribed by Pepsico.As per the research conducted by PepsiCo,Pepsi is the most selling brand followed by 7Up, Mirinda,Mountain Dew and Slice.And on the basis of this research Pepsico has developed a sequence of different brands for filling up the visicooler and also for placing them on the shelves.Sequence is as under: Pepsi followed by 7Up, Mirinda, Mountain Dew,Slice,Aquafina,Lehar Soda respectively on the shelves.The products are available in glass bottles, pet bottles, metal cans and tetra packs.The number of bottles,cans and packets filled in visi coolers varies as per the size and capacity of the visi cooler.

Objectives:
1. To keep the visicooler pure. 2. People what see, that people buy. I.e. to attract consumers by displaying theirfavorite brands or to help the consumers in finding their favorite flavor or brand. 3. To attract consumers by displaying different brands. 4. To promote the sale of all flavors or brands. 5. To motivate the retailers for effective utilization of visicooler for selling Pepsi brands.

6. 7. i. ii. iii.

To beat the competitors and to lessen the sale of substitute products available in the market. Products are charged according to the Plan-o-Gram: 200 ml glass bottles of Pepsi and 7UP are kept in 1st shelf. Glass bottles of Mirinda,Mountain Dew,Slice and 6000 ml pet bottles of Pepsi, 7Up,and Mirinda are kept in the 2nd shelf. 2 ltr pet bottles of Pepsi,Mirinda and 7UP,and pet bottles of Slice and Aquafina are kept in the lower shelf.

PepsiCo visicooler Procedure Visicooler Plan-o-Gram includes the following three processes.

I.Visi pure and visi cleaning

More often than not it is seen that the retailers keep products like chocolates,ice creams,milk and soft drinks of other competitors such as Coke,Amul and Parle Agro.Moreover,majority of the sweet shops also keep curd.All this hampers the visicoolers and lead to premature depreciation due to overload.It also hampers the brand reputation and many retailers keep local packaged drinking water in the Pepsico visicoolers tereby enabling the local companies earn revenues at minimum investment.Thus the company focuses on pure visicoolers which suggests that the coolers can only keep products of Pepsico inside them.Clean visicoolers catches the eye of the public and enhances the sale.

ll. Charging:
This process involves the transfer of Pepsi from warm stock to cold stock. Or in other words we can say charging is nothing but filling of visicooler with Pepsi products from the stock available at the outlet. This helps in following ways: 1. 2. 3. 4. 5. Helps in effective utilization of the visicooler. Helps in maintaining the stocks of chilled pepsi products every time. Attract consumers. Helps in keeping the visicooler pure. Increases sale of pepsi. Bottles/cans/tetra packets are first cleaned with a clean duster and dusts are removed and then filled into the visicooler. lll. Plan-o-Gram:

This is a process which involves sequentially placing of bottles/cans/tetra packs of different flavors or brands in the visicooler. The sequence of different flavors or brandsis prescribed by Pepsico, and it is discussed earlier. Planogram helps in following ways: 1. 2. 3. 4. Helps the consumers in finding their favorite flavor or brand. Attracts consumers by displaying different brands. Promotes in selling all flavors or brands. Acts as window display in the outlets. The few steps for Plan-o-Gram are as follows:

Steps for planogram 1st time,i.e. in new cooler:

1.Empty the cooler 2.Clean the cooler. 3.Clean the bottles/cans/tetra packs with a duster. 4.Place the products in lower shelf first. 5.Maintain a gap of 2 Inches between the bottles and the upper shelf. 6.Repeat this process. 7.Charge the products according to the prescribed sequence of Plan-o-Gram

Steps for planogram during 2nd time and onward visits:

1.Check the cooler. 2.Determine the number of bottles of each brand or flavour required to fill the cooler according to the Plan-o-Gram sequence. 3.Clean the bottles/cans/tetra packs with a duster. 4.Place the products in lower shelf first. 5.Maintain a gap of 2 Inches between the bottles and the upper shelf. 6.Repeat this process. 7.Charge the products according to the prescribed sequence of Plan-o-Gram. 8.Ensure that cooler is 100% charged.

Problems faced during Plan-o-Gram:

1. Unavailability of all flavors at some outlets. 2. Technical problems of visicooler, such as cooling problem or technical failure of the cooler. 3. Some retailers especially those who do not sell all flavours of Pepsico were not interested in Plan-o-Gram as they did not want to inflate their expenditure(visicoolers are bought against GOD deposits,i.e,crates of BSD)

How the problems are solved?

1. The distributors are informed to deliver the products which are missing via the Customer Executives(C.E) or the Sales team. 2. The technical team is informed immediately about the technical roblems and asked to solve the problem as soon as possible. 3. The retailers who are not interested n Plan-o-Gram are motivated by informing them about various schemes and the added incentives.This is done by the C.E and the salespersons.

MARKETING MIX
The term marketing mix was coined in an article written by Neil Borden called The Concept of the Marketing Mix. He started teaching the term after he learned about if from an associate, James Culliton, who in 1948 described the role of the marketing manager as a "mixer of ingredients"; one who sometimes follows recipes prepared by others, sometimes prepares his own recipe as he goes along, sometimes adapts a recipe from immediately available ingredients, and at other times invents new ingredients no one else has tried. The marketer, E. Jerome McCarthy, proposed a four Ps classification in 1960, which has since been used by marketers throughout the world. Product - A product is seen as an item that satisfies what a consumer needs or wants. It is a tangible good or an intangible service. Intangible products are service based like the tourism industry, the hotel industry and the financial industry. Tangible products are those that have an independent physical existence. Typical examples of mass-produced, tangible objects are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system. Every product is subject to a life-cycle including a growth phase followed by a maturity phase and finally an eventual period of decline as sales falls. Marketers must do careful research on how long the life cycle of the product they are marketing is likely to be and focus their attention on different challenges that arise as the product moves through each stage. The marketer must also consider the product mix. Marketers can expand the current product mix by increasing a certain product line's depth or by increasing the number of product lines. Marketers should consider how to position the product, how to exploit the brand, how to exploit the company's resources and how to configure the product mix so that each product complements the other. The marketer must also consider product development strategies. Price The price is the amount a customer pays for the product. The price is very important as it determines the company's profit and hence, survival. Adjusting the price has a profound impact on the marketing strategy, and depending on the price elasticity of the product, often; it will affect the demand and sales as well. The marketer should set a price that complements the other elements of the marketing mix. When setting a price, the marketer must be aware of the customer perceived value for the product. Three basic pricing strategies are: market skimming pricing, marketing penetration pricing and neutral pricing. The 'reference value' (where the consumer refers to the prices of

competing products) and the 'differential value' (the consumer's view of this product's attributes versus the attributes of other products) must be taken into account. Promotion - represents all of the methods of communication that a marketer may use to provide information to different parties about the product. Promotion comprises elements such as: advertising, public relations, personal selling and sales promotion. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet advertisements through print media and billboards. Public relations is where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word-of-mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and public relations (see 'product' above). Place - refers to providing the product at a place which is convenient for consumers to access. Place is synonymous with distribution. Various strategies such as intensive distribution, selective distribution, exclusive distribution and franchising can be used by the marketer to complement the other aspects of the marketing mix The 'seven Ps' refers to the already mentioned four Ps, plus 'physical evidence', 'people', and 'process'. 'Physical evidence' refers to elements within the store -- the store front, the uniforms employees wear, signboards, etc. 'People' refers to the employees of the organisation with whom customers come into contact with. 'Process' refers to the processes and systems within the organization that affects its marketing process.These later three factors are not cited nearly as often as the first four outlined in depth above.

MARKETING MIX OF PEPSICO

PRODUCT PROFILE
I.PEPSI 2.7 UP 3.MIRINDA ORANGE,MIRINDA APPLE,MASALA MIRINDA 4.MOUNTAIN DEW 5.SLICE 6.AQUAFINA PACKAGED DRINKING WATER 7.LEHAR SODA

PLACE
Pepsico conducts its beverages business in West Bengal through Varun Beverages Limited.But Gatorade and Tropicana are marketed and sold directly by the company.Varun Beverage Limited is the sole manufacturer and seller of Pepsico colas. The plant is located in Sonarpur. They have segmented West Bengal into 4 parts: South Bengal: The trucks from the plant goes to the warehouse in Kharagpur to unload the boxes and from there the boxes are sent to retailers as per order. Central Bengal: The warehouse is located in Burdwan which handles the supply to the retail outlets. North Bengal: The warehouse at Siliguri handles the day to day poperations. Kolkata: It is again divided into 2 parts viz.South Kolkata where the supply goes from the plant to the 8 distributors and Howrah which has a warehouse.

Distribution channel: Pepsico follows a 3-Tier Distribution channel,i.e,the supply chain follows the sequence as follows: Plant Distributors Retailers

This type of distribution channel is very convenient and prevents delays to some extent. But one has to admit that absenteeism of drivers or loaders, brake down of cars accidents cannot be avoided. They cause delays and discrepancies in the supply which to some extent hampers the reputation of the company.

PRICING

PRICE LIST: RETAILER PRICE RGB OR PET SIZE BOX SIZE (NO.OF PIECES) 24 24 24 24 24 12 12 9 12 (PER BOX in Rs.) 214 210 256 618 574 414 626 555 155 (PER PIECE in Rs.) 8.92 8.75 10.67 25.75 23.92 34.50 52.17 61.67 12.92 CONSUMER PRICE (PER BOTTLE in Rs.) 10 10 12 28 30 38 55 65 15

200 ML RGB 200 ML SLICE 300 ML RGB 600 ML PET 500 ML SLICE 1 LTR PET 1.2 LTR SLICE 2 LTR PET AQUAFINA 1LTR

PROMOTION
I. ADVERTISEMENTS: Pepsico invests huge amount of capital in advertisements. The company has always been associated with eminent brand ambassadors and even now it boasts of some of the most well known faces promoting its brands.

Different ad campaigns of Pepsico brands are as follows: 1. Pepsi- The slogan change the game has really worked well with the youth and has pulled a lot of consumers by means of the interesting ads featuring Ranbir Kapoor,Virat Kohli,Frank Lampard,Didier Drogba,Fernando Torres,M.S.Dhoni,Suresh Raina and Harbhajan Singh. 2. 7 Up- Sharman joshi endorses the brand with the slogan I feel up 3. Mirinda- It is promoted by Asin 4. Mountain Dew- The darr kea age jeet hai tagline has grown popular to say the least and the presence of Salman Khan in the visually appealing ads the required boost to the brand 5. Slice- Katrina Kaif promotes the brand and the ads are very sensuous with the tagline aamsutra. Alongwith the television Pepsico has also targeted the social networking sites like facebook,twitter and the the internet media as a whole to promote its products. II. Sales Promotion: To increase the sales and more importantly compete with Coca cola in the soft drinks market the company has introduced some really lucrative schemes for the retail outlets which are shown in the following table:

RGB OR PET SIZE (1 BOX) 200 ML 300 ML 500 ML SLICE 600 ML CAN 1 LTR 1.2 LTR SLICE 2 LTR AQUAFINA

SCHEME 2 PCS 200 ML 4 NIMBOOZ 2 PCS SLICE 8 PCS AQUAFINA NO SCHEME 1 PC 600 ML 4 NIMBOOZ 8 PCS AQUAFINA 4 PCS AQUAFINA

In addition to this the company has introduced attractive offers to enhance the sales of 7Up and Slice: LEBU LOOT: The customers need to collect labels of 7Up pet bottles and show them in the redemption centres set up by Pepsico.They get a cap for 3 labels, a sunglass for 5 labels and a Tshirt for 7 labels.

The company has also given an offer to the retailers for the month of May-June.If the retailers can display warm and cold stocks of at least 100 pet bottles of 7Up they will get Rs.5 on each bottle. For Slice pet bottle display the retailers get Rs.5 on each bottle for 75 bottles, Rs.7 on each for 100 bottles and Rs. 10 on each for 125 bottles. Moreover the retailers with the best display will get Rs.2500 as in incentive.The best display will be judged by the Pepsicos marketing teams audit. In addition to this the company provides card accounts to major retailers and gives them acsh rewards or gifts if they achieve the target sales throughout the year. The company ensures that there are adequate number of posters,banners and glowsigns in each outlet and the audit team keeps a regular check on that.Again,around 100 shops have been selected all over Kolkata to whom Pepaico will provide free samples worth Rs.500 and Rs.2500 for promotions and also electricity charges for glowsigns and visicoolers.

III.

Corporate events: Pepsico has key account holders such as Spring Club,Swiss Food,Venom,Nicco Park,Millenium Park,Airport which get a fixed amount of merchandise or products from the company as per the agreement.The company sponsors all the events held in Spring Clubs, Venom or Nicco park throughout the year.

IV.

Public relations: This year Pepsico has organized a T20 football tournament in Kolkata during the IPL to somewhat divert peoples attention from Cricket to Football thereby justifying their tagline Change the game.A lot of money was invested in the tournament and it became a huge success with the football crazy people of the city.

PACKAGING
Packaging is one of the major aspects of modern day marketing.At PepsiCo, we continually think about new ways to package and deliver our products to minimize our impact on land. In this effort, we strive for the "5 Rs"to reduce, recycle, use renewable sources, remove environmentally sensitive materials and promote the reuse of packaging in the entire process of packaging selection, design and procurement.

Through our ongoing engagement with our packaging suppliers, our goal is to use the most environmentally suitable packaging available in the country of operation, wherever we operate.

In 2010, we conducted Abacus II, a companywide analysis of our 2009 global packaging footprint. Abacus next generation is PackTrackPlus (PTP), launched in 2011 to measure our 2010 packaging footprint. PTP is a PepsiCo-developed web-based tool used for year-over-year analysis based on weight, material type and associated CO2 emissions. PTP data demonstrates performance against our land and packaging goals and enables us to set future goals. Across the world, we continue to deliver innovative new designs that reduce the amount of packaging material used, as we strive to reduce packaging weight by 350 million pounds and avoid one billion pounds of landfill waste over the five-year term of this goal.

As part of this effort, PepsiCo has "cracked the code" to develop the world's first 100 percent plant-based PET bottle made from fully renewable sources. This latest development effectively surpasses existing industry technology and enables PepsiCo to manufacture a PET bottle that looks and feels like, and protects our products in exactly the same way as petroleum-based PET bottles do, but with a significantly reduced carbon footprint. The significant difference between this and other competitive bottles is that our bottle can be introduced into existing municipal recycling streams.

We plan to pilot production of the new bottle in 2012; upon successful implementation of that pilot, we'll move directly to commercial applications.

Reduce PepsiCo has worked for years to make our beverage containers lighter by designing the lightestpossible packaging that still meets government specifications for strength and safety.

In the U.S., the Aquafina water bottle is a case in point. The bottle weighed 24 grams in 2001 before it was reduced to 19 grams in 2003. In 2005, we began using 15-gram bottle preforms in

our plants and further reduced the preform to 13.2 grams in 2008. Beginning in 2009, our EcoFina bottle, at 10.9 grams, was introduced.

Those changes have resulted in an estimated reduction of nearly 30 million pounds of polyethylene terephthalate (PET) since 2008. The Eco-Fina bottle is made with 50 percent less plastic than the half-liter Aquafina bottles produced in 2003. In addition to light-weighting the half-liter bottle, Aquafina is driving additional environmental benefits by producing the Eco-Fina bottle on location where Aquafina is produced and filled. This initiative eliminates the use of cardboard base pads from Eco-Fina bottle 24-packs, saving 20 million pounds of corrugate. Our Propel and Gatorade bottles and closure have undergone significant light-weighting as well, removing almost 73 million pounds of resin in two years, equivalent to over 960 million new 20ounce Gatorade bottles with closure.

In Europe, package light-weighting initiatives have reduced bottle waste by nearly 9 million pounds. These reductions have occurred across our carbonated soft-drink bottles, as well as Tropicana and Punica bottles.

Short-Neck Closures Reduce Package Weight Around the World We continued our progress in light-weighting in 2010 with the rollout of 1881 short-neck and lightweight closures for beverage packaging in sizes ranging from 355ml to 2L. By the end of the year, about 60 percent of our system, used in the U.S. and Canada, converted to the new lighter-weight design. Consequently, we reduced total packaging weight by more than 40 million pounds. Conversion is expected to be completed by the end of 2011.

By leveraging key learning from the U.S. market execution of 1881 short-neck finish and lighterweight designs, packaging-weight reductions for beverage packaging across a variety of sizes (ranging from 500ml to 2.25L) were achieved in Mexico, Peru and Argentina. As a result, we reduced plastic resin use by an estimated nine million pounds.

Key markets in Asia also introduced the lighter-weight 1881 neck finish preforms and closures for beverage applications, resulting in significant weight reductions and reduced plastic resin

use amounting to about 3.2 million pounds. The same is true for the Middle East and Africa, where plastic resin use was reduced by approximately 1.1 million pounds.

Meanwhile, we implemented lighter overall packaging for our 500ml-size noncarbonated beverage brands in North America (U.S. & Canada). In 2011, Gatorade is transitioning to a 28gram package, which translates to a weight reduction of eight grams per bottle. We also eliminated the use of corrugate trays in 2010 for the Naked juice brand, a saving of about 12 million trays, which reduces corrugate material by over one million pounds.

Streamlining Food Packaging Efforts to reduce food packaging are also achieving solid results internationally. In 2010, in Colombia and Ecuador, we successfully down-gauged the film used for packaging our Frito-Lay and Doritos snack products, which reduced corrugate use by 414,000 pounds. And in China we down-gauged snack film and lowered material content in carton structures, reducing packaging material use by around 170,000 pounds. Reducing Food-Product Waste At Frito-Lay North America, the efficiencies are not just being achieved in the packaging. Starch, a by-product of slicing potatoes, was being relegated to the sewer system, costing the company about $2 million for processing. Today, however, the company is recovering the starch and selling it for about $9 million a year, where it is used in paper-making, pharmaceuticals, food manufacturing and other uses. This practice was replicated from our Walkers facility in the U.K., where they have been recovering the starch for years, and now process it to food-grade for reuse in their own recipes.

Recycle We are committed to increasing the recyclability of our packaging, increasing recycling of postindustrial packaging related to our products, and making sure our containers utilize materials that are compatible with accessible recycling systems. We continue to lead the industry by incorporating at least 10-percent-recycled polyethylene terephthalate (rPET) in our primary soft-drink containers in the U.S., and broadly expanding the use of rPET across key international

markets. In fact, we are the largest user of recycled resin of any single soft-drink manufacturing company in the U.S.

In 2009, Naked juice became the first U.S. nationally distributed brand to transition to a 100 percent post-consumer recycled plastic (or rPET) bottle in the 32-ounce size. The Naked renew a bottle embodies naked juice's commitment to creating a more earth-conscious juice. In 2010, we began to transition the 10-ounce, 15.2-ounce and 64-ounce package size to the 100 percent post-consumer recycled PET material.

PepsiCo would use 100 percent recycled materials in all of our qualified bottles if the supply of food-grade rPET were available, which is why we strongly promote bottle recycling.

In Guatemala, meanwhile, in partnership with our bottling partner Mariposa (Cabcorp) and the NGO FUNDES, we have developed an innovative model to close the loop on material recycling. We do this by promoting recycling as an income-generating activity, collecting the PET from communities through reverse logistics and, finally, reinserting that recycled PET in our bottles.

Consistent with our commitment to expand the use of post-consumer recycled PET in international markets, we introduced carbonated and noncarbonated soft-drink packaging that incorporated up to 15 percent recycled materials, which amounts to 16.3 million pounds of recycled PET into beverage packaging.

The food business in Mexico recycled scrap film material to create point-of-sale displays. Both Mexico and SAF offer innovative recycling programs that turn obsolete packaging films into trays for our products. Together, these programs prevented 250,000 pounds of material from ending up in landfill.

Dream Machine Initiative Promotes Beverage Container Recycling In 2009, PepsiCo made a commitment to form strategic partnerships to help increase the U.S. beverage container recycle rate to 50 percent by 2018. The PepsiCo Dream Machine recycling

initiative, launched on Earth Day 2010, is designed to provide Americans with on-the-go access to a convenient and rewarding recycling solution for plastic and aluminum beverage containers.

The initiative is a multiyear collaboration with Waste Management, the largest recycler of residential materials in North America, and Keep America Beautiful, the nation's largest volunteer-based organization, with more than 600 affiliates, and was created to help PepsiCo reach its goal by introducing Dream Machine recycling kiosks and bins at popular public locations across North America.

Since the launch of the program, we have installed 4,000 static bins and electronic kiosks, and created recycling programs in more than 900 schools, in 40 states. As a result of these efforts, and recycling efforts at PepsiCo industrial locations, approximately 94 million plastic bottles and aluminum cans have been diverted from landfills.

Dream Machine kiosks are computerized receptacles that include a personal reward system, powered by Greenopolis (a subsidiary of Recyclebank), allowing consumers to earn points for every bottle or can they recycle. Points are redeemed for local discounts on entertainment, dining and travel. In addition, the more bottles and cans people recycle in Dream Machines, the more support PepsiCo will provide to the Entrepreneurship Bootcamp for Veterans with Disabilities (EBV), a national program offering free, experiential training in entrepreneurship and small business management to post-9/11 U.S. veterans with disabilities.

A progress report that shares cumulative results since its launch was released on Earth Day 2012, the second anniversary of the Dream Machine program. You can access the report here: Dream Machine Progress Report

Renew PepsiCo focuses its innovation teams to develop and discover creative packaging solutions, which include the use of renewable or biodegradable packaging sources for our snacks, foods and beverages businesses.

Remove We are working to reduce the amount of environmentally sensitive materials that could potentially enter the waste stream.

Beginning in 2008, we reduced CO2 emissions by replacing the PVC (polyvinyl chloride) tamperband film with a PLA corn-based biopolymer film on all 18-ounce Quaker oatmeal and grits canisters. Since then, this change has removed 262.5 tons of PVC from the waste stream, which is equivalent to the CO2 emissions generated from 127,026 gallons of gasoline. This PLA film is made from a renewable resource and is certified to be compostable and biodegradable under certain conditions.

In 2010, our Latin American region focused on removing PVC from the packaging portfolio. The Mexico foods team developed PET- and PETG-based packaging solutions to replace PVC in confectionary packaging. Their efforts eliminated approximately 33,000 pounds of PVC. Several other markets either did not use, or had already removed PVC in previous years. As a result, we reduced the amount of environmentally sensitive materials that could potentially enter the waste stream.

Reuse PepsiCo supports reusing primary and secondary packaging components where feasible. Reusable or refillable glass bottles are responsible for a significant volume of beverages in international markets. In 2010, we delivered 20 percent of our international beverage volume in reusable glass packages.

And we continue to successfully reuse a number of our secondary and transport packaging components, such as plastic shells, pallets and corrugate boxes for shipping food and, particularly, our beverage products. In fact, products from PepsiCo's Gatorade, Quaker Foods and Tropicana business units in Canada are now shipped on reusable and recyclable plastic pallets. In 2010, Frito-Lay purchased approximately 154 million returnable cases. This does not include the copackaging locations. Annually, Frito-Lay consumes 150,000 tons less paperboard simply by reusing its shipping cartons up to six times.

Moreover the Mountain Dew neon packs and the Pepsi Change the game packs became a huge hit with the public.

FINDINGS
I. CONSUMERS PERSPECTIVE: a. The consumers prefer Coca Cola brands to the Pepsico brands.The main reason for that is that the consumers like how Thums Up,Sprite or Limca fizzles when the bottles are opened but on the other hand Pepsi,7 Up or mountain Dew are merely sweetened colas. b. The advertisements and punch lines of the Pepsico brands are a rage with the public especially with the youth. c. The brand ambassadors like Ranbir kapoor,Salman Khan,Virat Kohli among a host of others have done wonders to the image of the brands. II. a. b. c. d. e. f. RETAILERS PERSPECTIVE: The retailers do not get what they order in terms of quantity and also the products ordered in this peak season which has hampered their sales.Late delivery also has adverse effects. The supply cannot meet the demand in the peak season which compels the retailers to sell other brands. The GOD deposits for the visicoolers is a bit steep and many retailers cannot afford or simply do not opt for it. The company often fails to give the gifts or incentives to the retailers which they promise to give as added incentives for huge quantum of order placed over a stipulated time period. Coca Cola pays more on each crown of RGB compared to Pepsico. According to the retailers,the profit margin for selling Coke products is higher than that of Pepsico.The proprietor of Ambrosia Stores,near Netaji Metro Station said,Since the consumer demand is higher for Coke products,Pepsico should pay us for push selling their products,i.e,the price for marketing the colas. 300 ml colas are difficult to sell due to the pricing. Coke provides the retailers price lists but Pepsico does not.So sometimes the shop owners forget the prices. The no credit policy has taken a toll on the quantity ordered by the retailers at one go. The scheme of 8 Aquafina bottles with a box of pet colas does not work well with all the retailers.It works well with paan stalls,restaurants or sweet shops.Many retailers want different schemes even at lesser monetary value to save the storage place because they do not want their godowns or shops to be overstuffed with only one product. Due to the overstuffing of Aquafina many retailers sell them at prices lower than the M.R.P which in the long run will defame the brand name and people will be reluctant to buy a product which was once sold at Rs.12 or even Rs.10,its M.R.P being Rs.15.

g. h. i. j.

k.

III.

COMPANYS PERSPECTIVES: a. Lack of promotion for Diet Pepsi,Nimbooz,Lehar Soda and Aquafina.There is simply no T.V advertisement or Aquafina which is a blunder taking into account the alarming dip in its sales. b. To edge past Coca Cola Pepsi takes the route of huge schemes which implies massive investments.It seems as if Pepsico is bent on market penetration. c. Almost 40% of the total revenue is generated by 7Up and so it signifies that the other brands are not really contributing as they should. d. Mirinda Orange and Slice lag far behind Fanta and Maaza and the sales figure for these two products are plummeting by the day. e. The company also incurs a huge amount of money on advertisements and various sales promotion activities. f. Many retailers keep cheap local bottled water or colas of other brands and even chocolates or curd in the visicoolers which hamper the brand image and sales. g. The sales target for the month of May and in fact,the 1st quarter of the financial year has been met successfully.

RECOMMENDATIONS
1. Todays society is very health conscious and is driven by fitness anxieties.Anything that comes with the tag diet engenders interest.So the company should make full use of this and go for push marketing for Diet Pepsi.It will be a hit with the posh society as in Hiland Park,New Alipore,etc. 2. Pepsico should bring in flexibility in their schemes as they should understand that the same scheme does not work for all types of retailers.The paan stalls will readily take 8 bottles of Aquafina with boxes of pet colas as they sell Aquafina in huge numbers.But a kirana shop will not take that scheme as over there the demand for bottled water is relatively low.Same goes with shops that have less storage capacity or lesser floor area as they cannot store so much of Aquafina.As a result they order lesser amount of colas,There is an element of opportunity cost involved here as the shop owners can utilize the storage space for Aquafina for the display or storage of some other products such as biscuits.So the company should provide schemes on the basis of an individual retailers needs. 3. The audit team for Plan-o-Gram should pay more frequent visits so as to reduce the misuse of the visicoolers. 4. The company should reduce costs on advertisements and promotions. 5. Pepsico should look for tie ups with eateries like Dominos,KFC,Subway,etc so as to target the youth. 6. Nimbooz and Mirinda orange should be marketed properly. 7. The company can think of introducing new flavours and back the new ones by adequate marketing 8. The promotional activities like Slice and 7 Up display should be done more on the duopoly outlets as the monopoly outlets will not require the added drive to sell more Pepsico products.On the other hand if a duopoly outlet orders more than 100 pieces of Slice or 7 Up they will be bound to order less amount of Maaza and Sprite and in this way Coke can be beaten in competition in the peak season.If the promotion is to be done in 100 shops there should be 70 duopoly outlets and 30 big monopoly outlets. 9. Pepsico should provide the retailers with the gifts they promise as it helps to maintain cordial relation with the retailers.

CONCLUSIONS DATA

COCA COLA PEPSI OTHERS

WHICH BRAND DO YOU PREFER? CONCLUSION:Coca Cola is the most favoured brand followed by Pepsi

MALE FEMALE

CONCLUSION:Males consume cold drinks more than females do

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 15-25 25-35 35-45 45-55 55-65

AGE GROUP OFCUSTOMERS CONCLUSION:Cold drink is mostly consumed by people in the age group 25-35

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% SERVICE BUSINESS STUDENT HOUSEWIFE OTHERS

OCCUPATION OF THE CUSTOMERS CONCLUSION:MOSTLY STUDENTS AND OFFICE GOERS CONSUME COLAS

30% 25% 20% 15% 10% 5% 0% ONCE A WEEK 2-3 TIMES A WEEK ONCE IN 2-3 WEEKS ONCE IN A MONTH ONCE IN 2-3 MONTHS

FREQUENCY OF CONSUMPTION OF PEPSICO PRODUCTS

60% 50% 40% 30% 20% 10% 0% TASTE QUALITY BRAND IMAGE ADVERTISENTS PROMOTIONS WORD OF MOUTH

CRITERIA FOR CONSUMING A PARTICULAR SOFT DRINK CONCLUSION:Taste is the most important criteria for liking a brand

35% 30% 25% 20% 15% 10% 5% 0% 200 ML 300 ML 500 OR 600 ML 1 LTR OR 1.2 LTR 2 LTR TETRA PACK OR CAN

BOTTLE OR PACK SIZE PREFERRED CONCLUSION: Most consumers prefer 300 ml bottles

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% KIRANA SHOPS EATERIES MALLS DEPARTMENTAL STORES PAAN STALLS

WHERE DO YOU BUY?

CONCLUSION:COLD DRINK IS BOUGHT MOSTLY IN PAAN STALLS AND KIRANA SHOPS

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% GOOD BAD AVERAGE

TASTE OF PEPSICO BRANDS CONCLUSION: The company needs to improve in taste

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% PEPSI 7 UP MOUNTAIN DEW SLICE MIRINDA NIMBOOZ

BEST ADVERTISEMENT CONCLUSION:Pepsi and Mountain Dew have the best ads but Mirinda and Nimbooz ads are not popular

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% CHANGE THE GAME(PEPSI) DARR KE AAGE JEET HAI(MOUNTAIN DEW) I FEEL UP(7 UP) AAMSUTRA(SLICE)

BEST PUNCH LINE CONCLUSION: Pespi and Mountain Dew have the best punchlines

60% 50% 40% 30% 20% 10% 0% T.V NEWSPAPER INTERNET PROMOTIONAL EVENTS BANNERS OR HOARDINGS

MODE OF ADVERTISEMENT CONCLUSION: T.V and Internet are the most preferred media of advertisement

Sales

PEPSI MONOPOLY COKE MONOPOLY DUOPOLY ALL BRANDS

TYPE OF OUTLETS

PEPSI COKE OTHERS

RGB SALES PER DAY

PEPSI COKE OTHERS

PET BOTTLE SALES PER DAY

PEPSI COKE OTHERS

RETAILERSS PREFERENCE

35% 30% 25% 20% 15% 10% 5% 0% CONSUMER DEMAND SCHEMES ADEQUATE SUPPLY ADDED INCENTIVES TIMELY DELIVERY ADEQUATE SUPPLY

60% 50% 40% 30% 20% 10% 0% CONSUMER DEMAND SCHEMES SUPPLY TIMELY DELIVERY BEHAVIOR OF SALES PERSONS PEPSI COKE OTHERS

REASON FOR PREFERENCE

QUESTIONNAIRES:
FOR RETAILERS: NAME:ADDRESS:OWNED BY:CONTACT NO:TYPE OF RETAILER: I. II. III. IV. V. PAAN STALLS EATERY KIRANA SHOP DEPARTMENTAL STORE STORE IN A MALL

Q.1)WHICH BRAND HAS THE HIGHEST CONSUMER DEMAND? a. PEPSI b. COKE c. OTHERS Q.2)HOW FREQUENTLY DO YOU ORDER PEPSIC BEVERAGES? a) DAILY b) THRICE A WEEK c) ONCE A WEEK

Q.3)ARE YOU SATISFIED WITH THE BEHAVIOUR OF THE SALESPERSON? a) YES

b) NO Q.4)DO YOU GET THE SUPPLY ACCORDING TO YOUR ORDER? a) SOMETIMES b) MOST OF THE TO TIME c) ALWAYS d) NEVER Q.5)IS THE ORDER LOADED WITHIN THE STIPULATED TIME? a) SOMETIMES b) MOST OF THE TIME c) ALWAYS d) NEVER Q.6)ARE YOU SATISFIED WITH THE SCHEMES PROVIDED BY PEPSICO? a) YES b) NO Q.7)DOES THE COMPANY GIVE THE PROMISED INCENTIVES? a) SOMETIMES b) MOST OF THE TIME c) ALWAY d) NEVER Q.8)ARE YOU HAPPY WITH THE DISPLAY? a) YES b) NO Q.9)ARE YOU SATISFIED WITH THE VISICOOLER? a) YES

b) NO Q.10)NUMBER OF FAULTY SAMPLES: a) 1 OUT OF EVERY 10 b) 1 OUT OF EVERY 20 c) I OUT OF EVERY 50 SUGGESTIONS:

FOR CONSUMERS:

NAME: ADDRESS: CONTACT NO: OCCUPATION: I. II. III. IV. V. SERVICE BUSINESS STUDENT HOUSEWIFE OTHERS

Q.1)HOW OFTEN DO YOU CONSUME COLD DRINKS? a) ONCE A WEEK b) 2-3 TIMES A WEEK c) ONCE IN 2 WEEKS

d) ONCE IN A MONTH Q.2)WHICH BRAND DO YOU PREFER THE MOST? a) PEPSI b) COKE c) OTHERS Q.3)WHAT IS THE CRITERIA TO LIKE A BRAND? a) TASTE b) BRAND IMAGE c) ADVERTISEMENTS d) PROMOTIONAL ACTIVITIES Q.4)GOOD QUALITIES OF PEPSICO BRANDS: a) TASTE b) ADVERTISEMENTS c) PROMOTIONAL ACTIVITIES d) OTHERS Q.5)WHAT DO YOU THINK ABOUT THE PACKAGING OF PEPSICO PRODUCTS? a) GOOD b) BAD c) AVERAGE d) CAN BE BETTER Q.6)WHAT DO YOU THINK ABOUT THE ADVERISEMENTS OF PEPSI,7 UP,SLICE AND THE OHER PRODUCTS? a) GOOD b) BAD

c) AVERAGE d) CAN BE BETTER Q.7)WHERE FROM DO YOU BUY SOFT DRINKS? a) PAAN STALLS b) KIRANA STORES c) MALLS d) EATERIES Q.8)WHICH IS YOUR FAVOURITE ADVERTISEMENT? a) PEPSI b) 7 UP c) MOUNTAIN DEW d) SLICE e) MIRINDA Q.9)WHICH IS YOUR FAVOURITE SLOGAN? a) PEPSI-CHANGE THE GAME b) MOUNTAIN DEW-DARR KE AAGE JEET HAI c) SLICE-AAMSUTRA d) 7 UP-I FEEL UP

Q.10)IN WHICH ASPECT CAN PEPSICO IMPROVE? a) TASTE b) ADVERTISEMENTS c) PROMOTIONS d) CANNOT SAY

SUGGESTIONS:

FOR DISTRIBUTORS: NAME:

ADDRESS:

CONTACT NO:

Q.1)HOW MUCH QUANTITY DO YOU ORDER IN A YEAR? a) LESS THAN 10000 BOXES b) 10000-15000 BOXES c) 15000-20000 d) MORE THAN 200000 Q.2)HOW MUCH QUANTITY IS DESPATCHED IN A DAY? a) LESS THAN 300 BOXES b) 300-500 BOXES c) 500-700 BOXES d) MORE THAN 7OO BOXES Q.3)CAN YOU SUPPLY ACCORDING TO THE DEMAND? a) 10 OUT OF 10 TIMES b) 8-10 OUT OF 10 TIMES

c) 6-8 OUT OF 10 TIMES d) 5-6 OUT OF 10 TIMES Q.4)DO YOU GIVE CREDIT FACILITIES TO THE RETAILERS? a) YES b) NO c) SOMETIMES Q.5)DOES THE COMPANY AVAIL CREDIT FACILITIES? a) YES b) NO Q.6)WHAT ARE THE REASONS FOR LATE DELIVERY? a) SCARCITY OF STOCK b) ABSENCE OF DRIVERS OR LOADERS c) PROBLEM OF VEHICHLES d) OTHERS Q.7)WHAT ARE THE REASONS FOR DISCREPANCIES IN DELVERY? a) SCARCITY OF STOCK b) SHORTAGE OF SUPPLY c) WRONG ENTRY OF ORDER d) FAULTS OF DRIVER AND LOADER Q.8)DOES THE COMPANY SUPPLY ACCORDING TO YOUR DEMAND? a) ALWAYS b) SOMETIMES c) MOST OF THE TIMES d) NEVER

Q.9)HOW MUCH FAULTY SAMPLE DO YOU GET? a) 1 IN EVERY BOX b) 1 IN EVERY 2 BOXES c) 1 IN EVERY 3 BOXES d) 1 IN EVERY 4 BOXES Q.10)ARE YOU SATISFIED WITH THE RELATIONS WITH THE COMPANY? a) YES b) NO COMMENTS:

BIBLIOGRAPHY www.wikipedia.org www.google.com www.pepsichannel.com www.pepsico.com Marketing Management by Philip Kotler, Kevin Lane Keller, Abraham Koshy, Mitileshwar Jha Marketing Management by Rajan Saxena