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Report By ASHISH CHADHA (Roll No. 8007) Work Carried out at PEPSICO INDIA HOLDINGS PVT. LIMITED, LUCKNOW Submitted in partial fulfillment of the requirement of Summer Internship Program
Under the Supervision Of Mr. Rahul Srivastav Marketing Development Coordinator, PepsiCo india Holdings Pvt. Ltd. VIth Floor,Raj Chambers, Hazratganj,Lucknow
CERTIFICATE
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EXECUTIVE SUMMARY DISSERTATION TITLE: UNDERSTANDING AND ANALYZING THE WORKING OF HUL SVS AS POTENTIAL FOR PEPSICOS LRB.
Supervisor:Mr.RahulSrivastava Nameofthestudent:AshishChadha RollNo.8007 This report Understanding and analyzing the working of HUL SVS as potential for PepsiCos LRB aims at providing insights about the high profile kirana stores , how HUL categorized them and their business potential with respect of stockingPepsiCosLRB. Pepsi has a strong presence in almost all cool corners, cafe parlours, restaurants, eating joints, prominent bakeries, etc. Therefore for developing new business it was searching for options. Since, in a business environment most FMCG companiesareawareofhowtheirpeersarestrategizing,theSVSstoreconceptofHUL wasstudied.Companybelievedthatifwecananalyzethestrengthofthehighprofile SVS,theycanbeahugebusinessopportunity. My project dealt with Understanding and analyzing HULSVS, wherein I identified the four major distributors of HUL in the city, interviewed them trying to gather what apart from monthly sales made them categorize an outlet as SVS. These distributorswerealsoastoreformysamplegatheringi.e.thelistofallSVSoutletsin Lucknowcity.Combiningallthesefourdistributors,ImadealistofSVSoutlets,which wasthetotalsamplesizeoftheproject. After going through the field research for the same in Lucknow, a lot of pointscameoutregardingHULanditssatisfactionlevels.Iwasevenabletoconvincea number of outlets to stock PepsiCos LRB and thus contributed to the companys business,theofficialexecutionofwhichiscurrentlybeingcarriedout. The project, which was a blend of research and business development was quitealearningandsatisfyingexperience. SignatureofStudent:SignatureoftheSupervisor: AshishChadha Mr.RahulSrivastava, MarketingDevelopmentCoordinator(MDC) PepsiCoIndiaHoldingsPvt.Ltd,Lucknow iii
ACKNOWLEDGEMENT
Iwishtoexpressmysincereregardsanddeepsenseofgratitudetomyprojectguide, Mr.RahulSrivastava,MarketingDevelopmentCoordinator,PepsiCoIndiaHoldingsPvt. Ltd. Lucknow, who has always been a great source of inspiration, for his guidance, constanthelpandencouragementthroughouttheinvestigationandpreparationofthe project report. I am thankful to my faculty guide Prof. Sridhar Chari who helped to completemyprojectsuccessfully. I would like to express my gratefulness and sincere thanks to Mr. Vikas Tandon, Account Development Coodinator,PepsiCo,lucknow for his help and extended support atvariousstagesofthework. Withouthishelpandvaluablesuggestionsmyprojectwouldnothavebeenasuccess. Last but not the least; I thank God Almighty, from whom flows all wisdom and knowledge. ASHISHCHADHA iv
LISTOFCHARTS/DIAGRAMS: 1 Photograph of Indra Nooyi 2. Marketing Mix 3. Product-Price table for Pepsi products 4. Purchasing soft drinks 5. Soft drink purchased more 6. Soft drink sold most 7. Ranks of non carbonated drinks 8.Service as the most important criteria 9. Service satisfaction with companys salesman 10. Interaction with salesman 11. Frequency of salesmans visit 12. Satisfaction with HULs quality 13. Replacement of damaged stock 14. Visit of C.E./A.D.C 15. Providing enough accessories 17. Product Availability at all times 18. Products in sufficient quantity 29. Enrollment in companys plans 20. Solving problems in short times 21. Changing Faulty accessories immediately 22. In total,service match with expectations 24. Rate HULs service out of 10 25. SVS outlet details vi 3 7 9 27 27 27 28 29 29 30 31 31 32 32 33 34 34 35 36 37 38 38 39 40 51
TABLEOFCONTENTS
ChNo.TitlePageNo. i) ii) iii) iv) v) vi) 1. Certificate Executive summary Acknowledgement List of symbol/abbreviations List of chart/diagrams Table of contents Introduction Industry overview Company Profile Social Initiatives Sales and Marketing Marketing mix SWOT analysis Competition Profile SVS as a HUL concept 1 3 4 5 7 12 14 16 ii iii iv v vi vii
2.
Project proposal Objectives of the study Scope of the study Limitation of the study 17 18 19
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Research Methodology Type of research design Information needed Scaling techniques Sampling Target population Sampling frame Sampling technique Sample size Survey & Observation method 26 22 23 24 25
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juice drinks. Supermarkets, which are still something of a novelty in many small cities, continued to attract a combination of regular grocery shoppers and young impulse buyers. Bundling and discount promotions for fruit/vegetable juice and concentrates drove product sampling in supermarkets. Emerging categories, such as energy drinks and RTD tea, received a boost from impulse buyers in supermarkets, while attractive displays and imported products in upmarket shopping centres introduced consumers to new products, such as sports drinks and flavoured water. With rising consumer affluence and companies tailoring their product designs and marketing specifically to target the young adult population group, the trend of robust double-digit annual volume growth is expected to continue over the forecast period. The foray of leading national players into emerging categories, such as energy drinks and 100% juice, will help sustain high growth rates in the future. Competition from the unorganised sector is expected to decline over the forecast period, as the national players make a concerted effort to educate consumers about the health benefits of packaged drinks, and move into markets such as bulk bottled water, which are currently dominated by the unorganised sector.
INTRODUCTION OF PEPSICO
ProfileofPepsiInternational PepsiissituatedatSomarsNewYorkinU.S.A,IndraKNooyiischairmanandCEOof Pepsi. Calab bradham, a North Carolina pharmacist concocted Pepsicola in the year 1890 as a cure to Dyespsia (indignation). In 1903, businessstrategyworked&in1909hehadaNewYorkadvertising agency. PepsiCo Food & Beverages International, a full fledge co. earnsmorethenhalfofitsglobalrevenuesfromsnackfoods&fast foods. PepsiCos major Business includes Pepsi foods, KFC,Pizza Hut,tacobell&Californiapizzaswhichisaworldleaderinrestaurantbusinessalso. PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab governmentowned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. PepsiCo is a world leader in convenient foods and beverages, with 2006 revenues of more than $35 billion and 168,000 employees. PepsiCo brands are availableinnearly200countriesandterritoriesandgeneratesalesattheretaillevelof about$92billion. PepsiCo Mission :"To be the world's premier consumer products company focused on convenience foods and beverages. We seek to produce healthy financialrewardstoinvestorsasweprovideopportunitiesforgrowthandenrichment to our employees, our business partners and the communities in which we operate. Andineverythingwedo,westriveforhonesty,fairnessandintegrity." 3
SOCIAL INITIATIVES Performance with Purpose articulates PepsiCo India's belief that its businesses are
intrinsically connected to the communities and world that surrounds it. Performance withPurposemeansdeliveringsuperiorfinancialperformanceatthesametimeaswe improvetheworld. To deliver on this commitment, PepsiCo India will build on the incredibly strong foundationofachievementandscaleupitsinitiativeswhilefocusingonthefollowing4 criticalareasthathaveabusinesslinkandwherewebelievethatwecanhavethemost impact. REPLENISHINGWATERPepsiCoIndiacontinuestoreplenishwaterandaims toachievepositivewaterbalanceby2009,whichmeansitiscommittedtosavingand rechargingmorewaterthanitusesinitsbeverageplants. PARTNERSHIPWITHFARMERS PepsiCoIndiasAgripartnershipswithfarmershelpmorethan22,000farmersacross thecountryearnmore. WASTETOWEALTH PepsiCoIndiacontinuestoconvertWastetoWealth,tomakecitiescleaner.Thisaward winning initiative has established Zero Solid Waste centres that benefit more than 2,00,000communitymembersthroughoutthecountry HEALTHYKIDS PepsiCo India will stay committed to the health and wellbeing of children. It will continue to provide children with a healthy and fun portfolio while simultaneously tacklingthecaloriesoutsideoftheequationbyexpandingitsGetActiveprogramme for kids, especially for school going children. PepsiCo will also launch and distribute products directly aimed at addressing nutritional deficiencies and will launch a pilot program that directly delivers against the United Nations Millennium Development Goaltoeradicateextremepovertyandhungerby2015. 4
Sales and Marketing Manager control the entire sales forces. Sales supervisors perform the following tasks: Sales supervisors find and cultivate new customers. Sales supervisors skillfully communicate information about the companys product and Services. Sales supervisors know the art of salesmanship approaching presenting answering objections and closing sales. Sales supervisors provide various services to the customers consulting of their problems rendering technical assistance, arranging financing and expending delivery. Sales supervisors carryout market research and intelligence work and fill in call report. MERCHANDISING STRATEGIES ADOPTED BY PEPSI Creating awareness about the product. Differentness in profit of Pepsi Products and Coca Cola Discount in products 5
Provide Gravity Rack, Air Hanger, PVC Rack, Combo Shot Provide Visi Cooler and OYC Cooler Provide Board ( Glow Signs, Dealer Board) Provide Shop Painting Convincing the retailer to stock Pepsi products. Display Scheme for Products Discount in Products Coupon Scheme Visi Cooler and OYC Cooler Scheme Rack Scheme Provide Free MT Yearly Target Achievement Gift Scheme Provide membership of PEPSI GOLD CLUB PROMRAM Auditing of Pepsi Gold Club Program 2008. Audit the only those retailer who have got Pepsi Gold Club membership. 1 Year Programme (February to June, July to October). Type of outlet (Eatery, Grocery, Convenience). Main outlet motivational scheme. Check the condition of Pepsi Monopoly outlet. Visi size compared with Coca Cola(Pepsi Visi > Coca Visi) Check the purity of SKU of Pepsi Products. Check the Impurity (Exp. - Real Juice, Amul Products, Treat and Parle Product.
MARKETING MIX
PRODUCTS:
The group manufactures and markets Carbonated and Non-Carbonated Soft Drinks and Mineral Water under Pepsi brand. The various flavors and sub-brands are Pepsi, Pepsi My Can, Pepsi Diet, Mirinda Orange, Mirinda Lemon, Mountain Dew, 7UP, Slice Mango, Slice Orange, and Aquafina, Tropicana, Tropicana Twister. Brands available in 200ml. 1. Pepsi 2. Mirinda Orange 3. Mountain Dew 4. 7up 5. Tropicana Premium Gold
Brands available in 250ml. 1. Slice 2. Tropicana Twister 3. Pepsi My Can 4. 7 Up Can Brandsavailablein300ml. 1. Pepsi 2. Mirinda Orange 3. Mirinda Lemon 4. Mountain Dew 5. 7up 6. Soda BrandAvailablein(330ml) 1. PepsiCan 2. MountainDewCan 3. 7UPCan 4. MirindaCan 5. PepsiDietCan BrandAvailablein(350ml) 1. TropicanaTwister BrandAvailablein(500ml) 1. Slice 2. PepsiDiet 3. Aquafina Brandavailablein(600ml) 1. Pepsi 8
Brand available in (2 Ltr) 1. Pepsi 2. Mirinda Orange 3. Mirinda Lemon 4. Mountain Dew 5. 7up Priceoftheproduct Product 200ml 200mlTropicanaPremiumTetra 200mlSliceTetraPack 300ml 250mlCan 330mlCan 350mlTwister 500mlAquafina BottleinMT 24 30 24 24 24 24 24 24 Price 168 397 216 215 330 580 468 168
24 24 24 12 12 12 12 9
PLACE:
Decisionswithrespecttodistributionchannelfocusonmakingtheproductavailablein adequatequantitiesatplaceswherecustomersarenormallyexpectedtoshopforthem tosatisfytheirneeds. DirectDistribution: Delivery of post mix cylinders & handling of key accounts: the key accounts are differentwholesalers,restaurents,hotelslikePizzaHut,KFC,Metrowhichserveasthe placeforkeysale.Theseareknownasnationalkeyaccountsandareveryimportantin termsofcompetition IndirectDistribution: Throughbasemarketdistributors Throughoutstationdistributors Before delivering the product some certain guiding principles are followed for the assessmentofdistributorscapability Applicantmusthave20or25vehiclesdependingonarea Applicantmusthave20000casesofemptybottles 10
PROMOTION:
Promotionisakeyelementofmarketingprogramandisconcernedwitheffectivelyand efficiently communicating the decisions of marketing strategy to favorably influence target customers perceptions to facilitate exchange between the marketer and the customerthatmysatisfytheobjectiveofbothcustomerandcompany. Advertising: PepsiCohasadvertiseditsproductsthroughvariouswaysandmedia. Through TV we have seen various advertisements targeting the favorable programs,likesports,seriesandsomePepsishowslikePepsifykarogeeorPepsiMTV wassupinpartnershipwithMTVtargetingyouth,itsprimaryconsumer. Alsothroughvariousnewspaperadvertisements,posters,Mobilecontentmessagefrom Pepsiiscommunicatedtoallthepeopleaboutitsproductsandoffers.
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SWOT ANALYSIS
A SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture or in any other situation requiring a decision. It gives an overall evaluation of a companys external and internal marketing environment. SWOT analysis for PepsiCo STRENGTH
Pepsi has a broader product line and outstanding reputation. Merger of Quaker Oats produced synergy across the board. Record Lack revenues of and increasing constraints market share. capital (availability of large free cash flow). Great brands, strong distribution, innovative capabilities Number one maker of snacks, such as corn chips and potato chips PepsiCo sells three products through the same distribution channel. For example, combining of the Pepsi, production capabilities
WEAKNESS
Pepsi hard to inspire vision and direction for large global company. Not all PepsiCo products bear the company name PepsiCo is far away from leader Coca-cola in the international market - demand is highly elastic.
Gatorade and Tropicana is a big opportunity to reduce costs, improve efficiency and smooth out the impact of seasonal fluctuations in demand for particular product
OPPORTUNITY
Food division should expand internationally
THREATS
F&B industry is mature Pepsi is blamed for pesticide
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Noncarbonated drinks are the fastest-growing part of the industry There are increasing trend toward healthy foods Focus on most important customer trend - "Convenience".
residues in their products in one of their most promising emerging market e.g in India Over 50 percent of the company's sales come from Frito-Lay; this is a threat if the market takes a downturn PepsiCo Cadbury now competes with Schweppes, Coca-Cola,
and Kraft foods (because of broader product line) which are well-run and financially sound competitors. -Size of company will demand a varied marketing program; Social, cultural, economic, political and governmental constrains.
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COMPETITION PROFILE
Coca-Cola is a carbonated soft drink sold in stores, restaurants and vending machines worldwide. The Coca-Cola Company claims that the beverage is sold in more than 200 countries. It is produced by The Coca-Cola Company in Atlanta, Georgia, and is often referred to simply as Coke or (in European and American countries) as cola, pop, or in some parts of the U.S., soda. Pepsi is often second to Coke in terms of sales but outsells Coca-Cola in some markets. Around the world, some local brands do compete with Coke. In India, Coca-Cola ranked third behind the leader, Pepsi-Cola, and local drink Thums Up. However, The Coca-Cola Company purchased Thums Up in 1993.As of 2004, Coca-Cola held a 60.9% market-share in India. Tropicola, a domestic drink, is served in Cuba instead of Coca-Cola due to a United States embargo. French brand Mecca Cola and British brand Qibla Cola, popular in the Middle East, are competitors to Coca-Cola. In Turkey, Cola Turka is a major competitor to Coca-Cola. In Iran and also many countries of Middle East, Zam Zam Cola and Parsi Cola are major competitors to Coca-Cola. In some parts of China, Future cola is a competitor. In Slovenia, the locally-produced Cockta is a major competitor to Coca-Cola, as is the inexpensive Mercator Cola, which is sold only in the country's biggest supermarket chain, Mercator. In Israel, RC Cola is an inexpensive competitor. In Madagascar, Classiko Cola, made by Tiko Group, the largest manufacturing company in the country, is a serious competitor to Coca-Cola in many regions. On the Portuguese island of Madeira, Laranjada is the top-selling soft drink. In the UK, Coca-Cola stated that Pepsi was not its main rival, but rather Robinsons drinks. On February 7, 2005, the Coca-Cola Company announced that in the second quarter of 2005 they planned a launch of a Diet Coke product sweetened with the artificial sweetener sucralose ("Splenda"), the same sweetener currently used in Pepsi One. On March 21, 2005, it announced another diet product, "Coca-Cola Zero", sweetened partly with a blend of aspartame and acesulfame potassium. Recently Coca-Cola has begun to sell a new "healthy soda": Diet Coke with vitamins B6, B12, Magnesium, Niacin, and Zinc, marketed as "Diet Coke Plus." On July 5, 2005, it was revealed that Coca-Cola would resume operations in Iraq for the first 14
time since the Arab League boycotted the company in 1968. In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to "Coca-Cola." The word "Classic" was truncated because "New Coke" was no longer in production, eliminating the need to differentiate between the two. The formula remained unchanged. In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-ounce bottles sold in parts of the southeastern United States. The change is part of a larger strategy to rejuvenate the product's image.
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Time constraints: As is expected during any study there was very less time to do a comprehensive study for SVS retail outlets. Divisional boundary: Area covered were mainly all the SVS stores in Lucknow . Information Asymmetry: It wasnt easy to get information from all the stores because of various reasons. The study includes only those stores from whom I was able to gat information. Restricted generalization: Study cannot be generalized beyond the city surveyed.
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The management decision problem is the problem confronting the decision maker. A marketing research problem is a problem that entails determining what information is needed and how it can be obtained in the most feasible way.
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SOURCES OF ERROR
NON-RESPONSE ERROR: arises when some of the respondents included in the sample do not respond. For example, a respondent busy in dealing customers. RESPONSE ERROR: arises when respondents give inaccurate answers or their answers are misrecorded or misanalyzed. Population definition error: Variation between the actual population relevant to the problem and population as defined by the research. For example, using an old sampling frame list for SVS stores. Respondent selection error: Selecting the respondent other than those specified by the sampling design. For example, selecting a non SVS retail outlet. Questioning error: Error made in asking question. For example, while asking questions, not using the exact wording given in the questionnaire. Inability error: Respondent inability to provide accurate answers. For example, respondent inability due to fatigue and boredom. Unwillingness error: Respondents unwillingness to provide accurate answers. For example, a respondent intentionally misreports supervisors commitment in order to impress the interviewer.
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INFORMATION NEEDED
Component 1: This component focuses on the information whether the respondent purchases soft drinks and if so, does he purchase Pepsi. The third and fourth questions make us know which of the drinks under Pepsi Umbrella sell the most. Component 2: This component focuses on various aspects related to HUL dealing with respondents perception of its service and the dealers satisfaction levels measured on various parameters inovving salesman and likewise. Component 3: This component is dedicated to measuring only the service intricacies of HUL, as for these storeowners service is single most important factor for satisfaction. Component 4: Overall rating of HULs performance is gathered and points of its lagging and improvements are also asked subjectively. Component 5: For retailers that do not have Pepsi, this last section focuses more on verbal interaction so as to identify the problems of retailers for the same. This is also the part where the business development carried out and the retailers are tried to convince to stock Pepsi.
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SCALING TECHNIQUES
A scaling is the generation of a continuum upon which measured objects are located. The scaling technique used in this marketing research can be grouped into comparative and noncomparative scales. 1. Comparative scales: a. Rank order: Respondents were asked to rank the objects present. b. Itemized Category Scales: Only one item is used to measure a construct 2. Noncomparative scales: a. Likert scale: Respondents were asked to show their response on a five point scale.
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SAMPLING
Target population: The target population is the collection of element or objects that posses the information sought by the researcher and about which references are to be made. The target population for the SVS outlets survey: Elements: SVS retail outlets attendant. Sampling units: Owners of these SVS stores. Extent: Lucknow. Time: April, may 2009 Sampling frame: A sampling frame is a representation of the elements of the target population. The sampling frame for the SVS outlets survey: List of SVS retail outlets present in Lucknow from HUL distributor, information of whom was gathered from a very popular SVS store in Lucknow. Sampling technique: Simple random sample: A probability sampling technique in which every element is selected independently of every other element and the sample is drawn by a random procedure from a sampling frame. The sampling technique used in this project: simple random sampling. Sample size: Sample size refers to number of element included in the study. The sample size for the SVS outlets survey: 96 outlets. Each outlet was segmented area wise and accordingly the areas were surveyed.
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Observation method: A structured observation was done to measure records. An observation form was made to record the information. The method used was an audit. Data was collected by examining performance and records. Advantage: Degree of structure is high Ability to observe in natural setting Observation bias is low Analysis bias is low Survey method: The survey method involves a structured questionnaire given to the respondents and designed to elicit specific information. In this project personal interview mode is used for collecting information. Personal interview were conducted at the SVS retail outlets. The respondents were intercepted while they were working at the retail outlet. A questionnaire was prepared for structured data collection. Advantage: Respondents are easily available Meaningful information due to working environment Response rate is high Flexibility of data collection Diversity of questions
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Response YES NO
% 66 34
Thestatisticsshowthataround1/3rdoftherespondentspurchasesoftdrinks. 2.Softdrinkpurchasedmore
% 28 46
Thestatisticsrevealthatcocacoladefinitelyhasalargersalepercentagewithrespect toPepsiwhichclearlylagsbehind. 27
3.Softdrinksoldmost
% 41 11 19 30
WhenwecomparethesoftdrinkssoldunderthebrandPepsi,thecoreofferingofthe companyPepsiitselfhasthemostshare,followedcloselybythenewMountain Dew. It seems that since the packaging and taste of Mountain Dew and 7up is quite similar, the former might be eating into latters matter which is also evident by the newlylaunchedcampaigntopromote7up. 4. Rankofnoncarbonated drinks
RESPONSE
15
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Slice clearly leads the pack here with more than half the respondents voting it as the mostdemandedamongnoncarbonatedofferingsofPepsi.TropicanaTwistermanages abare15%whereastheTropicanaNectaroccupiesthesecondspot. FOLLOWINGQUESTIONSPERTAINONLYTOHUL 5. ServiceasthemostimportantCriteria
% 34 33 26
6 1
6. Servicesatisfactionwithcompanyssalesman
% 23 43
12 3
% 2 12
57 29
30
A larger proportion of respondents have a fine or friendly interaction with the salesman suggesting that the HUL salesman creates a healthy atmosphere at time of visit. 8.Frequencyofsalesmansvisit
% 46 41 11 4
AtaroundmostSVSstores,thesalesmanvisitquitefrequentlywhichshowshowmuch valuetheygivetoeachstoreandtheirsatisfaction. 31
9.SatisfactionwithHULproductsquality.
% 53 36 9 2
Themajorchunkofrespondentsisalwayssatisfiedwiththeproductqualitydelivered to them. Only 2% are satisfied rarely which shows how high HUL satisfaction levels are. 10.Replacementofdamaged,outdatedstock
% 3 12
These statistics show that however HUL might be doing good on other facets, the changeand/orremovalofdamaged,outdatedstockisstillaconcernwitharoundhalf the respondents stating that its rarely or never changed and only a mere 15% of the respondentsbeingfinewithcompanyspoliciesonthisaspect. 11.VisitofC.E.orA.D.C
% 14 39 47
The visit of officials clearly is still lagging with major respondents answering a No or Sometimes.Thisindicateshowimportantthisfactisfortherespondentsandhowmuch doesitgetneglected. 33
12.Dotheyprovideenoughaccessories
% 29 39 28 3 1
Agoodnumber,around70%ofrespondentsseemtobesatisfiedwiththeaccessories as opposed to a mere 4% who arent. Around 28% respondents show satisfaction levelbetweenthetwoextremes. FOLLOWINGQUESTIONCATERSTOONLYTHESERVICEASPECTOFHUL 34
13.1)Meetingwithsalesmancreatesahealthyenvironment
% 17 38 35
8 2
More than half of the respondents agree to the facts that meeting the salesperson of HUL creates a healthy environment conducive to business. It is to be noted that salesmanbehaviorcangoalongwayincreatinganorganizationalimpression,beiton thepositivesideorotherwise. 35
13.2)ProductAvailabilityatalltimes
% 12
23
13 5
13.3)Availabilityofproductsinsufficientquantity
% 13 24 46
11 6
More than a third of respondents believe that the HUL products are stocked in sufficient quantities. Around half of the respondents are neutral to agreeing or disagreeingwhileamere1/6thofrespondentsdisagreewiththesame.SinceHULhas such a diverse product range it is equally hard to keep all the products stocked at all times. 37
13.4)Enrollmentincompanysvariousplans
% 14 41
STRONGLYDISAGREE 3
More than half of the respondents agree and strongly agree to the fact that they are enrolled in companys various plans while around a third of them are neutral to this statement.Veryfewrespondents,16%showdissatisfactiononthisground.Thefigures on the whole suggest that the major chunk is quite satisfied with the plans they are enrolledinto,eithermildlyorstrongly. 38
13.5)Solvingprobleminshorttime
RESPONSE
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28 5
13.6)Changesfaultyaccessoriesimmediately
% 4 20 28
31 17
Around half the respondents agree, strongly disagree with the fact that the faulty products and accessories are changes immediately. This clearly suggests a level of dissatisfactionw.r.t.thisattribute. 40
13.7)Intotal,servicematchwithexpectations
% 18 37
13 6
14.)Satisfactionwithcompanysschemesofferedwithproducts
% 6 24
26 11
15)RateHULsserviceoutof10
RESPONSE % 6 7 8 9 10
Aswecanseefromthetable,mostrespondentsquantifiedtheirsatisfactionbygiving agoodratingtoHULsservice.Theopinionwasmostlydividedbetween7,8and9 whichshowsthatalargepopulation,morethan3/4thisverysatisfiedwiththeir overallservice.Aperfect10givenby19%respondentsalsostrengthensthispoint. 16.Aspectswheretheservicelags Mostrespondentswereoftheviewthatreplacingthedamaged,outdatedproductswas amajorissue,whichoftencausedlossestoSVSowners.Otherthanthat,since 43
5 22 28 26 19
theproductlineofHULissodiversified,alaginavailabilityofallproductsallthetime isunderstandable. Otherthanthattherespondentsfeelthattheoverallserviceisquitesatisfactoryand praiseworthy. HULclearlydistinguishesitsservicefromanyotherFMCGandlivesuptoitsbrand comfortably. 17.Improvementssought: SincemostoftherespondentsseemedsatisfiedwithHUL,onlythingtheywishedtobe betterwasthereplacementpoliciesoftheFMCGwhichifcarriedoutinamoreretailer friendly manner, would reap more confidence and satisfaction for retailers with the FMCGmajor. PepsiCo: RegardingPepsi,thereweremainlythreekindsofrespondents: 1. ONESTHATARECURRENTLYSTOCKINGIT: Most customers expressed verbal dissatisfaction with the service of Pepsi w.r.t.a)thetimelagbetweenorderanddelivery b)thepolicyofrefrigerators, c)theirschemes d)frequencyofsalesmanvisit. But they also agreed that it is a kind of product that sells automatically in theirstoresandiftheabovepointsaretakencareof,theywouldberather moreimpressedandsatisfiedwiththecompany. 2. ONESTHATWEREPREVIOUSLYSTOCKINGIT: 44
Due to all the factors listed above, the respondents that were previously stockingitdiscontinuedwiththesame. HerewecancompareandcontrasttheservicesandsatisfactionofHULand PepsiCowhereinthecurrentprojectdrawsfootstepsforPepsitobefollowed to let itself live up to its brand name and increase the confidence and satisfactionamongtheretailers. 3. ONESTHATAREREADYTOSTOCKIT: A lot of SVS stores visited are ready to stock Pepsi since they believe that there is a lot of demand for it in their store and the product is something whichsellsautomatically.ThisshowstheimagePepsistillhasamongthese retailersandhowmuchtheytrustthebrand. 4.ONESTHATNEITHERSTOCKCURRENTLY,HAVESTOCKEDBEFORE,NOR WISHTOSTOCK: Thereweresomerespondentswhostatedthattheywereverysatisfiedwith there grocery business and felt that soft drinks is not something they wish to takeup.Somesuchretailerscitedlackofspacewhichwasalreadypreoccupied by a lot of kirana bags carelessly kept all over the place. Some retailers also stated that since they were keeping Cola Cola there was hardly any need for them to invest in Pepsi. Here we can see that Coca Cola already has the first moveradvantagewhereinretailerswhocaninvestinonesoftdrinkbrandare consciouslytakencareofbyCocaCola. 45
CHAPTER 6:RECOMMENDATIONS
BasedonthestudyfollowingismylistofrecommendationsforPepsi: HUListhrivingonsuccessandtheparametersevaluatedcloselysuggest thatPepsi,thoughithasagooddistributionnetworkofsalesstaffneeds tostrengthenitinawaytominimizethetimeintervalbetweenplacingof orderanditsarrivalwiththeretailer. This can be carried out by following an efficient order booking systemascarriedoutbyCocaCola,whichensuresfasterdeliveries. Pepsineedstoacknowledgethatitscompleteproductlinemustbemade availableinmarketswheredemandishugeandplayersareless.Alackin performance here has led the market share of Coca Cola reach to such greatheights. AregularvisitbythesalesmanaswellasofficialslikeC.E.orA.D.C.goesa long way in establishing a rapport and identifying the problems, if any, thattheretailerisfacing.AstheysaythatOutofSightisOutofMind, retainingadealerisdirectlyrelatedtothefactthathefeelsrecognizedby theofficials. 46
CHAPTER 7:CONCLUSION
In this report an effort was made to analyze the effectiveness of SVS retail outlets in Lucknow. In this regard, the major concern for the project was to understand the parameters that HUL performs well in, which can be an understanding for PepsiCo for the newer business developments. The study concluded that following aspects of service by HUL are highly regarded by the retailers: Interaction with salesperson Frequency of his visit Quality of products Visit of Area Sales Manager (A.D.C), Accounts Development Officer (A.D.C) Providing accessories Product Availability Enrolling dealer in schemes However, Replacement of outdated stock Changing faulty accessories Availability of products in sufficient quantity, still remain to be problems currently. This study has intended to capture the mindset of SVS retail outlet owners by the way of audit and survey. The study has helped to uncover the fact that HULs SVS store owners are quite satisfied with the service and offerings of HUL and also helped to locate the factors of its incredible performance. This insight will go a long way with the marketing department of PepsiCo and help them employ it in context of their business. The study also helped develop new business for PepsiCo wherein around 15 stores agreed to stock Pepsi after convincing them with the offerings. Some major recommendations, which PepsiCo should take, are: Steps to improve the time management of stock. Steps to enhance the service offered at these stores. Increase the frequency of salespersons and C.E., A.D.C. To keep their product line in order with the dealers. Overall the study was able to achieve the set objectives. 47
CHAPTER 8
ANNEXURES
QUESTIONNAIREfor Understanding and analyzing the working of HUL SVS as potential for PEPSICOs LRB (Questionnaireforretailers) Supervisor:Rahul Srivastava(MDC,PEPSICO Lucknow)
RespectedSir, ThequestionnaireisbeingsuppliedtoyouforUnderstandingandanalyzing
theworkingofHULSVSaspotentialforPEPSICOsLRB
Please read the questions and give your responses by the tickmark on one of the alternative.Yourresponseswouldbekeptconfidential.Theywillbeusedonlyforthe researchpurpose.
Q1.Doyoupurchasethesoftdrinksforyourshop? []Yes[]No
Q2.Whichsoftdrinkyouwouldliketopurchasemoreinquantity? []PepsiCo[]CocaCola
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Q4.Rankthefollowingnoncarbonateddrinksaccordingtoyour preference []TropicanaNector []TropicanaTwister []Slice ANSWERTHEFOLLOWINGQUESTIONSWITHRESPECTTOHindustan UnileverLimited Q5.Doyoubelievethatserviceisthemostimportantcriteriaforratinga FMCGbrand? []StronglyAgree[]Agree[]NeitherAgreeNorDisagree []Disagree[]StronglyDisagree Q6. Areyousatisfiedbyservicegivenbysalesman? []Always
[]Mostly []Sometimes []Rarely []Never Q7. Whattypeofinteractionyouhavingwithsalesman? Formal________Friendly Q8. Whatisthefrequencyofsalesmansvisitatyourcounter? []Regular
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[]Frequent []Irregular []Rarely []Never Q9.Areyousatisfiedwithcompanysproductsandtheirquality? []Always []Mostly []Sometimes []Rarely []Never
Q10.Doessalesmaneasilychangeyourdamagedoroutdatedstock? []Always []Mostly []Sometimes []Rarely []Never Q11.DoesthecompanysC.E.andADCvisityourcounterregularly? [] Yes []No []Sometimes
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Q.12DoesCompanyprovidesyouenoughaccessories(helpingtool)? []Always []Mostly []Sometimes []Rarely []Never Q.13Pleaseindicatehowstronglyyouagreeordisagreewiththefollowing statementaboutcompanysservice? 1.Meetingwithsalesmancreatesahealthyenvironment: []Stronglyagree[]Agree[]Somewhatagree []Disagree[]Stronglydisagree 2.Availabilityofalltypeofproductsatatime.
[]Stronglyagree[]Agree[]Somewhatagree []Disagree[]Stronglydisagree 6.Changecompanysfaultyaccessoriesimmediately. []Stronglyagree[]Agree[]Somewhatagree []Disagree[]Stronglydisagree 7.Intotal,doestheserviceofcompanymatchyour expectations? []Always[]Mostly[]Sometimes[]Rarely[]Never Q.14Areyousatisfiedwiththeschemesgivenalongwithproducts? []Always[]Mostly[]Sometimes[]Rarely[]Never Q.15HowwouldyourateHLLsservice? 1________10 Q.16Wheredoyoufeelitslagging?
Ans.
Q.17Doyouwantanyimprovementscompanyin
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Time Management
Service
SVS OUTLET DETAILS(LUCKNOW)
S.No
1 ARUN KIRANA
Address1
SHOP NO 15 SHOP NO 15/220 SHOP NO E 1216 Block SHOP NO 43 A SHOP NO 551/SHA/16 SHOP NO E S-39 SHOP NO D3022 Shop No48 A SHOP NO A1 DANDAIYA BAZAR ALI GANJ
Address2
ALI GANJ
Locality
NEAR HEVET POLYTECHNIC GATE NEAR HANUMAN MANDIR Opp E Block Subzi Mandi Near Chandan Nagar Mandir
ADARSH GEN.&BAKERS
INDIRA NAGAR
INDIRA NAGAR
ANKUR AGARWAL PAWAN KM. AGARWAL NITIN AGARWAL SURENDRA SINGH NALIN AGARWAL
AGARWAL ENTERPRISES
RAJAJIPURAM
RAJAJI PURAM
MAIN MARKET, NATKHERA MAIN MARKET, NATKHERA ROAD E BLOCK MARKET Old picnic spot road, Munshipullia ADARSH NAGAR TEDIPULIA SHOPPING COMPLEX VIVEK KHAND-4, BANGLA BAZAR JAIL ROAD GURMANDI SADATGANJ GOLE MARKET MAHANAGAR
ALAM BAGH
ALAM BAGH
RAJAJI PURAM
INDIRA NAGAR
SURIYA ENCLAVE
ANNU
ALAM BAGH
Rajesh Kumar
GOMTI NAGAR
10
NA
BANGLA BAZAR
11
SAHADATGANJ
NEAR GURMANDI
12
MAHA NAGAR
13
Bansal Kitchen
NA
SitaPur Road
Sitapur Road
NARESH AGARWAL
54
Shop No 1
AMEEN COMPLEX NAKHAS SHINGAR NAGAR, Kanpur road JANKIPURAM VISTAR ALIGANJ DADAIYA BAZAR VIVEK KHAND 2, LDA MARKET
NAKKHAS
NAJMUL HASAN
ALAM BAGH
Near Shringar nagar Gate NEAR 60 FITA ROAD NEAR SHYAM MISTHAN BHANDAR NEAR PANI KI TANKI NEAR NEEL KANTH SWEET CHAWAL Wali GALI Near Bangla Bazar road NEAR RAM-RAM BANK CHOURAHA Near SBI Bank
TILAK CHAND
NA
Jankipuram
LALIT TIWARI
17
NA
ALI GANJ
18
GOMTI NAGAR
19
VIVEK KHAND
GOMTI NAGAR
20
NEW NAKKAS MARKET KHAJANA MARKET, ASHIYANA JEET PLAZA RAM RAM BANK CHOURAHA KHUN KHUN JI ROAD CHOWK
NAKKHAS
S U AHAMED
ASHIYANA
S.S ARORA
ALI GANJ
LAKHAVINDRA SINGH
23
NA
CHOWK
PREM KUMAR
24
na
SEC I ASHIYANA
LDA COLONY
NEAR ASHIYANA CHOURAHA NEAR MAHALAXMI SWEETS MUNSI PULIA CHAURAHA OPP JANTA MARKET
DINESH KUMAR
25
Shop No 8
ARIF CHAMBER SEC Q NAVEEN MARKET MUNSI PULIA CHAURAHA JANTA MARKET, VINAY KHAND 2 Anwar Villa Building, Tulsi Das Marg NISHAT GANJ
ALI GANJ
B L JETLI
26
INDIRA NAGAR
27
GOMTI NAGAR
NA
TOORIYA GANJ
Near Machli Mandi NEAR NISHAT GANJ TEMPO STAND Near Neel Kanth Sweets
AMIT KUMAR
NISHAT GANJ
NIKHIL KUMAR
30
GOMTI NAGAR
RAJESH GUPTA
55
31
SHOP NO MDS 31
LDA COLONY
Sector D Chouraha NEAR NEEL GIRI COMPLEX Near Husain Ganj Police Chowki Near Balaganj Police Chowki NEAR FATIMA HOSPITAL Near Ameena Badh Police Chowki NEAR LANGRA FAATAQ NR SWARUP COLD STORAGE AMINABAD THANA NEAR DENA BANK BANGLA BAZAR Near Meena Bakery NEAR MANAS NAGAR SUB POST OFFICE NEAR BHADEWA EXCHANGE NEAR CENTRAL ACADEMY SCHOOL Galla Mandi
KUMUD BHATIA
32
NA
INDIRA NAGAR
NA
33
DALIGANJ BALAGANJ CHOURAHA HARDOI ROAD SEC A MAHANAGAR SABJI MANDI AMINABAD
DALI GANJ
SANJEEV GUPTA ANOOP JAISWAL MAHESH KUMAR MITTAL RAMESH CHANDRA PAHWA RANVIR SINGH
34
BALA GANJ
35
MAHA NAGAR
36
KASTOORI DI HATTI KHALSA PROVISION STORE KHUSHI TRADING COMPANY KUNDAN KIRANA STORE
NA
AMINA BAD
37
Shop No 138
T K ROAD
ALAM BAGH
38
NA
WATER WORKS RD Subzi Mandi, AMINABAD ROAD JAIL ROAD BANGLA BAZAR
AISHBAGH
39
NA
AMINA BAD
NA
BANGLA BAZAR
RAJAJIPURAM
RAJAJI PURAM
RAJ KUMAR
42
KRISHNA NAGAR
AJAY KUMAR
NA
KHALA BAZAR
TOORIYA GANJ
Shop No 9/159
INDIRA NAGAR
INDIRA NAGAR
45
MATHURA PRASAD
NA
GALLA MANDI NARHI PRAGATI BAZAR ,KAPOORTHALA PURAN NAGAR, KANPUR ROAD
NARHI
46
MOVE N PICK
SHOP NO 36 L
ALI GANJ
ANANDEEP
47
MUKESH DEPARTMENTAL732D-D
NA
ALAM BAGH
SANJAY
56
48
INDIRA NAGAR
BASIR
49
ALAM BAGH
DEEPAK MEHTA NAVEEN AGARWAL VIPIN AGARWAL SUNIL AGARWAL VINAY KUMAR GUPTA GYAN CHANDRA ANURAG KAPOOR
50
RAJAJI PURAM
51
SECTOR 3 , VIKAS NAGAR SHANDHI TOLA CHOWK SEC 14 / 2 SAGAR DEEP COMPLEX, MUNSHIPULLAI T K ROAD, ALAMBAGH CHOWRAHA TERI PULIYA KURSI ROAD II
VIKAS NAGAR
52
CHOWK
53
SHOP NO.2
INDIRA NAGAR
SAGAR DEEP COMPLEX NEAR ALAMBAGH CHOURAHA NEAR SABJI MANDI Near Ghas mandi Chouraha NEAR OVER BRIDGE NEAR ALAMBAGH CHOURAHA NEAR MERA MAN HOTAL NEAR CMS GOMTI NAGAR Sringar Nagar,ALAMBAGH Near Lekhraj Dollar Dandaiya Subzi Mandi NEAR RLB SCHOOL
54
Shop No 1
ALAM BAGH
55
ALI GANJ
56
PADMA BHAWAN
THAKURGANJ
SONU
57 P.K. PROV STORE 58 PAWAN KUMAR 59 PREM PROVISION STORE PROVISION HOUSE
TELIBAGH
NA
ALAM BAGH
HUSSAINGANJ
60
VISHAL KHAND 1
GOMTI NAGAR
SANTOSH
61
RAHUL PROVISION STORE RAJU GEN STORE RAKESH KIRANA STORE/ DIVVAM STORE RAM ANNPURNA STORE
KANPUR ROAD
ALAM BAGH
RAHUL
62
INDIRA NAGAR
63
SHOP NO 3
ALI GANJ
64
NA
VIKAS NAGAR
57
65
Telibagh
PGI MARKET
INDRESH KUMAR RASTOGI RAMA SHANKAR NARENDRA SINGHAL UMESH KUMAR SANEEV AGARWAL SANTOSH GUPTA
66
VIVEK KHAND 4
GOMTI NAGAR
67
S STORE
Alka Puri
ALI GANJ
NA
BALA GANJ
Shop No 3728 Shop No 532 K/7 Shop No 215/307 SHOP NO439/114 Shop No 13 Shop No 38/17
RAJAJI PURAM
SAPNA COLONY
70
Kursi Road
NEAR NEERA NAURSING HOME NEAR MOHAN TOWER Near Thakurganj Thana NEAR ALAM BAGH CHOWRAHA Near Naale Ki Puliya Near Atta Mill Road NEAR ALAMBAGH CHOURAHA NEAR BATA SHOWROOM RAM BHAROSE SCHOOL NEAR ARYA KANNYA PATHSALA NEAR CENTRAL ACADEMY SCHOOL Near Hanuman Mandir
71
RANIGANJ
ALOK SAHU
72
THAKURGANJ
73 SATYAM STORE 74 Seth Provision Store 75 SHAKTI GENERAL STORE SHANKAR LAL MURLIDHAR SHARMA GEN STORE
T K ROAD
ALAM BAGH
B BLOCK
RAJAJI PURAM
MANOJ SETH
NA
AISHBAGH
76
KANPUR ROAD SHOPPING CENTRE BHOOTNATH RAM BHAROSE MKT. TELIBAGH RBL ROAD R.B.L ROAD ARYA KANNYA PATHSALA Munshi puliya C BLOCK GANESH MARKET
ALAM BAGH
77
INDIRA NAGAR
A K SHARMA
78
Telibagh
79
NEW HAIDRABAD
80
SHIVAM ENTERPRISES
INDIRA NAGAR
81
INDIRA NAGAR
58
82
SHIVAM PROVISION740-D-D SHREE KESHAV STORE SHRI KRISHNA PROVISION STORE751-D-D SHRI RAM PROVSION STORE SHRI SHYAM BAKERY &KIRANA
ALAM BAGH
Near Shivam resturant Near HAL Subzi Mandi Near Telibagh Nehar
KRISHAN CHAND PK KESHARWANI NIRMAL AGARWAL SRI RAM (GOPAL) RAJEEV AGARWAL
83
INDIRA NAGAR
84
NA
Telibagh
85
RAJAJI PURAM
86
SHRI PLAZA
VIKAS NAGAR
87
E BLOCK
RAJAJI PURAM
SHRI SHYAM
88
INDIRA NAGAR
SUNNY
89
SINGHAL STORE
NA
ALI GANJ
90 SINGHAL STORE
Shop No 112/9 Shop No 529 KHA/113 SRI RAM DARBAR COMPLEX SHOP NO S-40 Shop No 12/660 Shop No 4/408
GARBARJHALA
AMINA BAD
91
KHURRAM NAGAR
MANISH NAGPAL
92
GOEL MARKET
MAHA NAGAR
MAHANAGAR NEAR RITZ NEAR JAMA MASJID NEAR VIVEK KHAND 4 LDA OFFICE AKABARI GATE
M.P.AGARWAL
93
THOK VYAPAR
INDIRA NAGAR
94
VAIBHAV DEPARTMENTAL
VIVEK KHAND 4
GOMTI NAGAR
NA
Nakhas
NAKKHAS
GUDDU
Shop No 116
MAVAIYA
VIJAY KUMAR
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CHAPTER 9: REFERENCES
Books referred: Aaker, Kumar and Day (2006), Marketing Research, Wiley India Edition, 7th edition. Kotler and Keller, Marketing Management (2005), Prentice Hall India, 12th edition. Naresh K. Malhotra (2005), Marketing Research ,Eastern Economy Edition, 4th edition. Websites referred: http://www.pepsico.in http://www.thetribune.com http://www.dnanetworks.com http://www.hindubusinessline http://www.wikipedia.com
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