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INTRODUCTION TO STUDY
1.1. Introduction
Good marketing is no accident, but a result of careful planning and execution. Marketing practices are continually being refined and reformed in virtually all industries to increase the chances of success. Marketing excellence is rare and difficult to achieve. Marketing is both art and science there is constant tension between the formulated side of marketing and the creative side. India with a population of more the 105 crore is potentially one of the largest consumer markets in the world with urbanization and development of economy, tastes and interests of the people changes according to the advance nation. Beverage industry is one of the fast growing industries in India. It can be divided into two sections i.e. carbonated and non-carbonated. The carbonated drinks can be further classified into Cola, Lemon, Orange, Cloudy-Lemon segments etc. Marketing includes all the activities like promotion, distribution, advertising etc. to fulfill the demands of all segments of consumers. Marketing is also convert social needs into profitable opportunities. So this topic provides all the essentials to the theoretical knowledge with practical knowledge and to inculcate the efficiency. It is also a requirement for the company to improve its service and product quality to achieve the ultimate goal. Marketing is about winning this new environment. It is about understanding what consumers wants a supplying its more efficiency and more conveniently. India where more than 50% of the total population exists below poverty line the consumer cant afford such high price for soft drinks. As a result the trading activities of the soft drinks industry are concentrated in and around
big cities and town where the purchasing power of population is considered comparatively high. Soft drinks industries in India has annual sale of about 5000crores, with per capita consumption of soft drinks at a low of eight bottles per annum is due to price factor. So, marketing is both philosophy and technology. It is technology because it suggests ways and means for effective production and distribution of goods and services in the market to give maximum satisfaction to the consumer. In this regard the marketing management with have to apply to marketing technology in the conceptual philosophy of a system. It is the process of system analysis in the marketing management for effective research and can be defined, systematic objective and exhaustive study of tasks relevant to any problem in the field of marketing.
KEY RESPONSIBILITIES
Key responsibility is to take care of my account under my assigned area. Persuade retailer to sell PepsiCo product. Convince retailer to transform the Visi- cooler as per his requirement. To have proper check on their SKU. To take orders of soft drinks on behalf of PepsiCo. Delivering the order on time. Proper distribution of product.
American concern. It started business on the Indian soil just a few years ago. Now Pepsi is going all out to prove that they are the best.
1.5. Scope
The geographical scope of my study is confined to Patna. The bulls eye is to have a cognizance of the level of satisfaction regarding the distribution network of PepsiCo product to the depot and retailer.
Limitations
Retailers are reluctant to provide the information regarding the sales volume and stock. Some retailers in were not co-operative in their approach. Retailers are not fully aware of the new schemes offered by the Company. Lack of time duration for the proper administration of research as time duration of 60 days was not sufficient for the research. Lack of financial resources as the researcher has to find his study by his own financial sources. Insufficient research experience. Indifferent behavior of the retailers exhibited at times.
CHAPTER-2
OVERVIEW OF INDUSTRY
Pepsi stands 51st position among the fortune 500 companies of the world. Its total capital is approx. $3000 crores and total sales annually is worth $37 crores. Its total profit in the year 1996-97 was worth Rs. 458 crores approx. The total number of employees engaged in the business is 45.25 lakhs globally.
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important industrial zones in this part of the country and this reality manufacturing and marketing unit should be a set of attraction as far as commercial activity are concerned.
Profile of LBPL
Company land area Location and authority Name of Managing Director Name of the Directors Name of Executive Director Name of CEO Name of FM Name of HR manager Industrial license no. : 12 acres : EPIP, Industrial Area, Hajipur : Mr. Charan Khilani : Mr. Ravi Khilani & Mr.Manoj Khilani : Mr.Ashok Salaria : Mr. G.P Singh : Mr. V.Mahesh : Mr. Bhupendra singh : Regn. No. - H 12475(c) Factory license no. 66750/VLI Date: 16.08.1997 F.P.O. License no. -10607/97 Capacity Nature of product : 1500 bottles per minute : Soft drinks, Pepsi, Mirinda, Soda, Slice, Aquafina No. of employees Control board : 200 +150 (max) seasonal labors : No. 1877. Date 07.04.1997
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establishment even featured a kind of primitive jukebox, which for a nickel would entertain the listener with the latest musical selections rendered by violin or piano or both It was at such convivial gatherings that Bradham would offer his latest concoction. Over time, one of his recipes became known as Brad's Drink. A member of the press declared, "It has sparkle and just enough acidity to make it pleasant." Soon its popularity would exceed the boundaries of New Bern. The cellar of Bradham's drugstore served as the original site of Pepsi-Cola syrup manufacturing. Electing to start his new business on a small, manageable scale, Bradham based his operation on familiar territory. Ingredients were hauled downstairs to cramped quarters where they were mixed together and then cooked in a large kettle. The syrup was subsequently poured into one-gallon jugs and five-gallon kegs to be shipped to customers. By 1902, the demand from surrounding drugstores increased so dramatically it dawned on Bradham that Pepsi-Cola was something special. On December 24, 1902, he filed incorporation papers with the state
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of North Carolina; in these, he indicated his plans for corporate branches in Virginia, Maryland, Pennsylvania, and New York. PepsiCo, Inc. is
currently one of the most successful consumer products company in the world with annual revenues exceeding $30 billion and has more than 480,000 employees. PepsiCo, Inc. began as a successor to a company
incorporated in 1931, known as Loft Inc. Once known as PepsiCo Cola, the company expanded its business and adopted its current name, PepsiCo, after a merger with Frito-Lay in 1965. This merger dramatically increased PepsiCo's market potential and set the foundation for the company's tremendous growth. PepsiCos products are recognized and are most respected all around the globe. Currently, PepsiCo divisions operate in three major US and international businesses: beverages, snack foods, and restaurants. In each of these businesses, PepsiCo has attained a leadership position as being the world leader in soft drink bottling g, the world largest snack chip producer, and the world largest franchised and company operated restaurant system. The corporations increasing success has been based on high standards of performance, marketing strategies, competitiveness, determination, commitment, and the personal and professional integrity of their people, products and business practices. PepsiCo's overall mission is to increase the value of our shareholders' investments through sales growth, investments and financial activities. PepsiCo believes their success depends upon the quality and value of their products by providing a safe, whole some, economically efficient and a healthy environment for their customers; and by providing a fair return to their investors while maintaining the highest standards of integrity.
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Three of four groups of Indians companies who had the required production capacity started their own brands of Cola, Lemon, Orange, but failed to achieve their goal on a national basis. India always has love and hate relationship with MNCs which gave a significant opportunities to soft drink industries in India when Coca-Cola decided to windup its operation in 1977 rather than bowing to the Indian government insisting on: Dilution of equity, as the government felt that lots of foreign currency was being wasted. Manufacturing of the top-secret concentration in India. Disclose of the chemical composition of the essence. This left a large vacuum in the popular soft drink market, and a vista was opened to any company with the requisite, technical, marketing and organizational skills. The exit of Coca-Cola from India in 1977 accelerated the growth of several Indian Soft Drink. New soft drink in the form of Tetra pack entered the market among Frooti, Jump-In and Treetop were the prominent once. Till 1977 their equipped bottling plants and the distribution network a longing to be of no use. It took them one year to develop new formula to survive and gradually came up with Campa, Lemon, Orange and Cola that order. However Parle, the pioneer in the soft drinks, blazed its way to national prominence with their product Thumps Up bearing the slogan Happy Days Are Here Again. This particular slogan helped to win over the loyalists or addicts to Coca-Cola, who was in the state of Cola Shock or Cola Depression. Soon the Indian Soft drink industry started at a phenomenal rate, and all Parle Products Gold Spot, Limca and Thumps Up became the brand leader in their own segment. In spite of all these, the drink market still has large gap, as claim by soft drink manufacturers. To fill these gaps there are many soft drinks
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concentrate and squashes flooded the market. The Indian soft markets basically offered three flavours i.e. Orange, Lemon and Cola.
fruit/vegetable processing, export, snack foods and beverages. In 1993 Pepsi Co. set up a hold company to further accelerate growth the future through new initiatives and joint ventures. Pepsi Co. fully committed to India and the national objective of development of technology and accelerating exports and employment. It has brought in over $500 million in foreign exchange as well as technology, which is used for its global network by way of royalty, know-how of dividends. Pepsi Co. has a turnover $25 billion, half of which comes from beverages and the other half from the snacks foods divisions. The beverages arm of the Pepsi Co. is Pepsi Cola Company and the snacks foods company is called Frito Lay Inc. The year 1998 is the centennial year of Pepsi.
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Beverages:
Pepsi has set up a concentrate plant in 1989 at Channo, District Sangpur, Punjab, with an investment of $ 5 million the state of the art Plant houses a world class laboratory where soft drinks from all over the world are tested. This concentrate plant supplies Pepsi, 7Up, Team, Miranda, Orange, Apple & Lemon flavors to all the Pepsi Bottling plant in South Asia. Pepsi has 40 Bottling plant in India, out of which 16 are company owned and 24 are owned by Indian franchisees, Pepsi Co. has invested heavily on up gradation of these bottling plants and has put 5 green fields projects in backward areas such as Jainpur and Bazpur in U.P. Bharuch in Gujarat, Sonarpur in West Bengal and Naclamangala in Karnataka. New project are coming up in Maharastra and Tamilnadu. In addition to the Companys own Bottling Operations (COBO), Pepsi has 24 Franchisee Owned Bottling Units in India. These franchisee manufacturers are also planning to install substantial additional capacities. Pepsi Co.s franchisees are amongst the best in the Pepsi world and the 1998 two Indian Franchisees were chosen for being the Bottler of the Year amongst all International Bottlers.
Juices:
Pepsi Co. plans to launch juices in a bog way in India, there by helping the farmers in fruit procurement. Pepsi Co. Agriculture Scientists has undertaken research on Mango, Guava and Oranges and these fruits would be the priority area for the juice launch in India. Presently Pepsi has one juice brands Slice, which are presently mango juice brands. Pepsi Co. also has bottling lines in most of the plants. .
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CHAPTER-3
PRODUCTION PROCESS
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for conveyor cleaned and smooth running of chain carrying bottles. SU 260 and SU 773 is used for bottle cleaning, shining, and mold removing.
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3.2. The steps involved in the production process are First the fork lift supplies the empty bottles which are collected from the distributions. Then depalletising is done i.e. separating cases filled or empty bottles from the wooden planks. Uncasing is done by separating empty bottles from the cases/carats. Empty bottles are then fed into the bottle washer where stream with some chemical is used for washing. Washed bottles are then send to the filler where premix (Composed of syrup, treated water bulk CO2) is filled in it. The whole concentrated is chilled with glycol before filling and then crowning is done.
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The filled bottles are passed through inkjet coder for printing price and date. Then again the filled bottles are send for final light inspection and from there they are collected on a table. Lastly the filled bottles are arranged in the crates (casing) and then palletizing is done for storing it in the warehouse.
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Water The required water of Lumbini Beverages Pvt. Ltd. is being met from the high yielding deep boring well with pumps. Adding softening plant & DM Plant so as to meet the required quality of water then treats the raw water taken out from these well. Water quality is being strictly adhered through regular sampling & analysis. Carbon dioxide Carbon di oxide gas of required purity is being carried on from Hindustan Gas India Ltd. and also from IOC Patna and Barauni, as per requirement of flavor. The usual consumption of carbon di oxide is 1 kg per 10 carats in case of Pepsi, 1 kg per 5 carats of Soda water and the rest flavor 1 kg per 114 carats. Crown Cork Lumbini Beverages Pvt. Ltd. takes crown cork from Manksic Crown Ltd., Bhopal and Ghaziabad respectively. Glass Bottle Lumbini Beverages Pvt. Ltd. takes flint and green glass bottle from Hindustan National Glass Ltd. Tapovan (Hrishikesh). Plastic carats Lumbini Beverages Pvt. Ltd. takes plastic crates from Neelkamal Plastic Ltd., Nasik and Supreme Industries Ltd., Nasik
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Products Pepsi Mirinda Mirinda Mirinda 7 Up Mountain Dew Slice Lehar soda Pet Pet Can Aquafina (Mineral Water)
Quantity 300 ml, 200ml 300 ml, 200ml 300 ml, 200ml 300 ml, 200ml 300 ml, 200ml 300 ml, 200ml 300 ml 300 ml 1.5 lt. 2 lt. 330 ml 1 lt.
Colour Brunt sugar Sun-set Tetrazine Tetrazine Colorless Colorless Sunset Tetrazine Brunt sugar Brunt sugar Brunt sugar Colorless
Flavour Cola Orange Lime Mango Lemon Lemon Mango Lemon Cola Cola Cola White
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CHAPTER-4
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BOARD OF DIRECTOR
MANAGING DIRECTOR
EXECUTIVR DIRECTOR
PLANT MANAGER
P.A.M.
H.R.
SHIFT ENGINEER
SHIPPING COORDINATOR
H.R.
WORKER / OPERATOR
H.R. CLERK
HOS
T.D.M.
M.D.M
A.D.C.
General Manager
C.E.
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The marketing manager is in charge of all marketing activities i.e. sales promotion, publicity and advertisement, marketing study and shipping. But the main function of the marketing is to exercise the control over the channel of distribution. The marketing manager is assisted by sales executives, city sales executives and rural sales executives and sales executive of shipping department as follows:DIRECTOR
MANAGING DIRECTOR
HEAD OF SALES
SALES EXECUTIVES
SALES SUPERVISOR
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CHAPTER-5
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2. Price: -Price is the amount of money which customers have to pay to obtain the product calculates suggested retail prices that its dealers might charge for sources. But dealers rarely charge the full sticker price.
3. Place:-They are mostly available in all place but easily available in the Urban Market but not frequently found in Rural Market.
4. Promotion: -Promotion means activities that communicate the merit of the product and persuade target customers to buy it. The measurement factor to promote the Pepsi product is to increase good transportation in rural market. If the Pepsi is available to capture the rural market then it is certain that it will occupy first position of soft drinks industry.
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Comparative Products
SL No. 1.
Major CSD Brands Flavor Cola Clear Lime Cloudy Lime Orange PCI Pepsi 7Up, Dew Mirinda-Lime Mirinda Mountain CCI Coca-Cola, Thums Up Sprite
2.
3. 4.
Limca Fanta
In above table, I have shown product target in the market. Both companies try to substitute each-others product in the market. When a company doesnt fulfill the demand of market then other companies substitute that product with their own product. In the market, offen it seen that consumer demands a product according to his desire, but due to lack of supply he switch over to substitute product. So, companies always want to come out with substitute product for enlarging their market share. Here, Thums Up and Coca-Cola is substitute for Pepsi, Sprit is substitute for 7UP and Mountain Dew, Fanta is substitute for Mirinda & Limca is substitute for Mirinda Lime.
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PACK
MRP
PRICE TO RETAIL
CARBONATED SOFT DRINKS (CSD) 200 ML 200 ML 300 ML 300 ML SODA 600 ML 600 ML 600 ML SODA 500 ML / 600 ML 1 LIT 1 LIT 2 LIT 2 LIT 2 LIT CAN 250 ML CAN 250 ML CAN 330 ML JUICE BASED DRINKS (JBD) SLICE 200 ML SLICE 250 ML SLICE 500 ML SLICE 500 ML SLICE 1200 ML SLICE TETRA 200 ML SLICE 350 ML NIMBOOZ 350 ML WATER AQUAFINA 1 LIT 16 152.00 10.00 12.00 25.00 28.00 55.00 12.00 22.00 18.00 216.00 258.00 564.00 630.00 612.00 328.00 498.00 402.00 10.00 8.00 12.00 6.00 25.00 27.00 29.00 12.00 35.00 38.00 53.00 59.00 65.00 15.00 18.00 50.00 212.00 168.00 258.00 130.00 560.00 606.00 654.00 264.00 376.00 420.00 441.00 491.00 543.00 330.00 402.00 900.00
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Company
Distributor
Deopt
Retailer
Consumers At first the soft drinks supplied to the distributors directly. Retailers or owners of any outlet cannot take the delivery from company. They have to take the products from their respective or nearest distributor. There are about 50 distributors and innumerable number of retail outlets operating with the company in its entire market areas which contains total Bihar. In all the important places of entire territory this company has its distributors.
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These distributors selected on the basis of assurance given by them regarding the minimum sales which they have to maintain annually. The selection is also done on the basis of the financial position and reputation of distributor in the market. As for example in appointing a distributor first engaged in soft drink business second priority is given to those people who are in cigarette selling business. Depending upon the market, each distributor in the initial stage has to deposit some security money. The retailers are selected by the distributor fixed criteria for the selection or appointment or retailers from the side of the distributor. Any one like Panwala, Cigarettewala or any other shopkeeper can have the stall for the sale of soft drinks and they are called retailers or outlet owners. They have to give assurance to the concerning distributor for better sale and at the time of taking delivery they have to deposit the security i.e. the charges if the empty bottles with specified retailers purchasing price. The charges if the empty bottles with specified retailers purchasing price. The distributor at first has to seek the permission of sales department for the number of cases of soft drinks required by them. After getting the proper authority from sales department paying the requisite amount either cash or demand draft.
Distributors:At first, soft drink is supplied to distributors. Retailers cannot take the delivery directly from the company. They have to take it from their respective or nearest distributors. The distributors selected on the basis of assurance given by them regarding minimum sales, which they have to maintain annually. The selection is also done on the financial position and reputation of distribution in the market. As for example, first priority is given to those people who are in cigarette business. Depending upon market, each distributor in its initial stage, deposit some security money. This amount varies between five thousands to the thousand. The
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distributors, at first have to seek the permission of the sales department for the number of cases of soft required by them. After getting the proper authority from the sales department, they take the delivery from the shipping department paying the requisite either in cash or as demand draft. The distributors can be dropped if they fail to achieve the required target to sales. They can be also dropped when they dont follow the instructions given by the company or when they charge high price or when they are engaged in black marketing, loading etc. But the company has not dropped any of its distributors till now. The supply of soft drinks to the distributors depends upon the ups and downs in the sales. But, in the initial stages, the distributors have to sell up to a minimum target set by the company or as decided by an agreement between the company and the distributors. In the last stages soft drink is supplied as and when demanded by the distributors.
Retailers:The distributors select the retailers. There is no relation between the company and its retailers. On the other hand there are no definite and fixed criteria for the selection for appointment of retailers from the side of distributors. Any one like Panwala, Cigarette shop or any other shopkeeper can have the stall for the sale of soft drinks and they are called or dealers. They have to give assurance to the concerning distributors for better sales and at the time of taking delivery they have to deposit the security that is the change for the empty bottles with specified purchasing price. There is compulsion on the part of distributors to provide the transportation facilities to their retailers IRRESPECTIVE OF SIZE OF MARKET. The distributors and retailers are independent to sell as they want but are controlled to some extent by the company also, as they have to give some assurance regarding
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minimum sale. It happens so because they are given some incentives also. They are fully independent to gear up the market, as they want. The Retailers are categorized into three segments: Grocers Eatery Convenience
5.4. Promotion
For increasing the market share and beating the competitors company provides different schemes on different time. The schemes are of two types one for Consumers and other for retailers. Free Flavors sample to Retailers:Company offers few bottle flavors free to retailers on purchase of one carat of flavor on some specific days. The free flavors scheme varies from one bottle to many bottles. Display Rack Scheme:This scheme is only for retailers. In this scheme company provides a Pepsi rack to retailer. The rack is filled with different bottles of Pepsi. The retailers are instructed that if they will maintain their racks in the same condition as it was when it was purchased. After completion of one-month different gift packs are distributed to the retailers.
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CHAPTER-6
RESEARCH METHODOLOGY
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Research methodology
Achieving accuracy in any research requires in depth study regarding the subject. As the prime objective of the project is to know stock keeping unit available in market and how market share of PepsiCo in Patna in term of quantities with the existing competitors in the market and the impact on Pepsi product. The research methodology adopted is basically based on primary data via which the most recent and accurate piece of first hand information could be collected. Secondary data has been used to support primary data wherever needed. Primary data was collected using the following technique Questionnaire Method Observation Method
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CHAPTER-7
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In this data interpretation, opening stock is when I have visited first time to take survey and closing stock is survey taken at the end of project. In middle period of time 60days I have take order from retailer and delivering the product to retailer. So that market share of PepsiCo is increase.
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DATA INTERPRETATION
(1) Market share of PepsiCo products and Coco-cola products. Brand Coco-cola PepsiCo Opening stock in quantities (case) 578 338 Closing stock in Total stock quantities (case) 672 1250 486 824
Market share
PepsiCo 40%
Coco-cola 60%
From above table and pie-chat, I found that Coco-cola was 60% market share in Patna whereas PepsiCo 40%. This was calculated on the basis of total stock availabilities on opening stock that mean first outlet survey and closing stock availabilities last outlet survey.
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(2) Change in market share from opening to closing stock in 8 week. Brand Coco-cola PepsiCo Opening stock in quantities (case) 578 338 Closing stock in quantities (case) 672 486 Percentage growth 16.26% 43.78%
700
600
500
400
300
200
100
Coco-cola
PepsiCo
In 2 months internship period, PepsiCo stock was increased by 44% whereas cococola increased by only 16%. This huge increase due to taking order from retailer and delivering the product in time. If company takes order from retailer and deliver product on dailies basis then automatically market share will increase.
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(3) From 2nd question table, market share of PepsiCo at opening and closing stock.
PepsiCo 37%
Coco-cola 63%
At the opening stock market share of PepsiCo was 37% and coco-cola 63%.
PepsiCo 42%
Coco-cola 58%
At closing stock market share of PepsiCo was 42% whereas Coco-cola 58%. This increased in market share of PepsiCo due to delivering product on time.
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(4) Change in stock keeping unit (SKU) in 8week. Brand Coco-Cola PepsiCo Opening SKU 520 389 Closing SKU 674 538 % increase in SKU 29.6% 38.3%
Change in SKU
800
700
600
500
400
300
200
100
Coco-cola
PepsiCo
From above table, I found that Stock Keeping Units (SKU) of PepsiCo increased by 38.6% whereas Coco-cola increased only by 29.6% in 2 months.
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(5) Stock keeping unit availabilities (SKU) of Pepsi and coco-cola in market on closing date of project. Brand Coco-cola PepsiCo Closing SKU 674 538 Average SKU per outlet 6.74 5.38
Actually coco-cola is producing 38 types of pack product and PepsiCo is producing 32 types of pack product. Brand Coco-cola PepsiCo Average SKU per Number of SKUs outlet 6.74 38 5.38 32 Percentage availabilities 17.7% 16.8% of
PepsiCo has been 16.8% of SKUs Distributed against that available for Distribution whereas Coco-cola has been 17.7% SKUs Distributed in market. For both the companies there has been opportunity to grow their business by increasing SKU availability in the market. PepsiCo has opportunities to increase 83.2% of its SKUs.
pepsico, 5.38
coco-cola, 6.74
From the above graph and table it was clear that the availability of SKU and Chilled Stocks of PepsiCo was 44% and coco-cola 56%. Actually L.B.P.L. is producing 32 types of product stock but its having only 5.4 types of stock on an average of per retailer outlet.
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PepsiCo Product
Flavor Cola Clear Lime Orange Product Pepsi total SKU 145 Number of packs 6 12 6 % of availabilities 24.16% 19.50% 7.66%
Coco-cola Product
Flavor Cola Clear Lime Product Coca-Cola, Thums- Up Sprite 182 35 56 6 6 6 30.33% 5.83% 9.33% total SKU 237 Number of packs 12 % of availabilities 19.75%
From survey I had found that stock keeping unit in cola flavor of Coco-cola product was more than PepsiCo product. But Coco-cola has two type of product in cola flavor which was coco-cola and thums-up whereas PepsCo has only one product pepsi. Percentage of availabilities = Opportunities mean every outlet has at least one unit product of each packs. Percentage of opportunities = 100- percentage of availabilities From above table I found that cola flavor of PepsiCo has availabilities 24.16% whereas Coco-cola19.75%. Cola flavor of PepsiCo has opportunities 75.84%
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market. PepsiCo can increase availabilities up to 100% by working on opportunities 75.84% cola flavor market.
Chart Title
0.35
0.3
0.25
0.1
0.05
From data interpretation, cola flavor of PepsiCo was 22.36% more than cola flavor of Coco-cola. But at the same time clear lime of Coco-cola was 55.55% more than PepsiCo clear lime product. In orange flavor coco-cola was 21.73% more than PepsiCo. Cloudy lime is not manufacture by L.B.P.L. therefore in these flavor 100% opportunities.
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(7) Number of companys cooler available in market. Brand Coco-cola PepsiCo Number of cooler 38 51
Number of cooler
60
50 40 38 30 20 10 0 Coco-cola Pepsico
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Coco-cola
Pepsico
Out of 100 retailer outlet, I have found that number of cooler of PepsiCo was 51 whereas coco-cola 38. PepsiCo had been 34% more cooler than coco-cola.
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(8) Total cooler capacities available in market. Brand Coco-cola Pepsico Total cooler capacities 18690 16100
Actually I have earlier found that PepsiCo has more cooler in compare of Cococola. But here coco-cola has more capacities of cooler in compare of PepsiCo. Coco-cola had 54% total cooling capacities whereas PepsiCo46%. In capacities wise, coco-cola had 16% more cooling capacities then PepsiCo.
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(9) Market share of carbonated soft drink (CSD) and juice base drink (JBD) in Patna. Market CSD JBD Opening stock quantities in case 774 114 Closing stock quantities in case 897 202 Total stock in case 1671 316
CSD 84%
From above data interpretation I found that carbonated soft drink market share was 84% and juice base drink market share was 16%. CSD product of coco-cola is coco-cola, sprite, thums-up, fanta, limica and soda. CSD product of PepsiCo is pepsi, 7up, mountain dew, mrinda, soda.
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(10) Market share of PepsiCo and coco-cola carbonated soft drink (CSD) in Patna.
Average quantities in Percentage of market case per outlet 3.50 4.85 42% 58%
Market share of carbonated soft drink (CSD) in Patna was 84% in which coco-cola had 58% market whereas PepsiCo 42% market shares in Patna.
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Average quantities in case Percentage of JBD per outlet Market 1.20 0.38 85% 15%
PepsiCo 24%
Coco-cola 76%
Market share of Juice base drink (JBD) in Patna was 16% in which coco-cola has been 76% and PepsiCo 24% juice base market share. JBD product of coco-cola is maaza and mint mind. JBD product of PepsiCo is slice and nimbuj.
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CHAPTER-8
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Conclusion
From above analysis it is evident that there are only two companies dominating in the soft drinks market - PepsiCo & Coca - Cola. There is neck-to-neck competition between these two companies. After visiting 100 outlets in Patna region it was found that the market share of PepsiCo was 40% and that of Cococola 60%. Average availability of quantities per outlet in case of PepsiCo was 6.72cases per outlet and Coco-cola 4.86cases per outlet in this area. It was observed that when number of coolers was compared, PepsiCo had 34% more cooler than Coca cola limited but when total capacity is compared Coca cola had 16% more capacity than PepsiCo. Beverage industry is categorized into two categories- CSD and JBD. Carbonated soft drink (CSD) had 84% market share and juice base drink (JBD) 16%. The study also focuses on retailer satisfaction and it was found that majority of the retailers were selling coco-cola products and some of the retailers werent satisfied with the distribution of PepsiCo products. There were complaints from retailers for late delivery of product and less stock supply due to shortage. Coca-cola has covered more market share because they provide better supply, and has better provision of refrigerator supply to the retailer. Distribution of - coolers and display of Glow Signs board was better than PepsiCo. So, more investment is needed to break the brand establishment of Coco-cola product.
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Recommendations
Coco-cola is the only competitor of PepsiCo. It is better to track every information about Coco-cola i.e. price, scheme, policy etc so that it will always help in Decision making. Company should prepare future plan for maintaining its market share as competitor can increase and can capture the market. Now a day with the introduction of tetra packs such as fruity, Tree Top etc Lumbini Beverages Pvt. Ltd. should think of introducing such packs of its various flavors product. It was observed that some retailers keep other companies products in the PepsiCo fridge. Company should make a special department to check such activities and inspect every shop 3 to 4 times in a month to check fridges. If it is found that retailer dont keep other companies product in PepsiCo fridge then they should provide special scheme or incentive to retailers which may help in increasing market share of PepsiCo. A complaint Register should be assigned by the company to every distributor in every route so that, retailers can write their problems. The complaint register should be checked by Customer Executive (CE) and depot in-charge time to time. Customer Executives should take the feedback from the salesman and the distributors for solving retailer problem. Retailers expect Computer generated bills from distributors where it was found that the competitor is successful in providing this but Pepsi had not yet implemented the same system, so it should be implemented. It was also found that number of outlets is more. So it is required to short the route and extra vehicles/tricycles provide in this route. The above recommendations may help the company Lumbini Beverages Pvt. Ltd to assess in a better way.
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APPENDIX
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Bibliography
Internet site www.pepsico.com www.cocacocla.com www.pepsicoindia.com www.wikipedia.com www.ask.com Magazine Business today Business and economy Book Marketing Management by Philip Kotler Marketing Management by V.S. Ramaswamy Business Statistics by S.P. Gupta
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