VARUN BEVERAGE LTD

SUMMER TRAINING REPORT ON

[STRATEGY FOR MARKETING THROUGH
RETAIL OUTLETS]
FOR VARUN BEVERAGE LIMITED

SUBMITTED TO-
JAIPURIA SCHOOL OF BUSINESS INDRAPURAM

SUBMITTED BY-
JASWINDER SINGH
ROLL NO-2018028
BATCH 2018-20

UNDER GUIDANCE OF
Prof. SANTOSH SINGHAL
 DECLARATION OF THE STUDENT

This Is To Declare That I, Mr. JASWINDER SINGH, Student Of PGDM

From Jaipuria School Of Business, Indrapuram, Ghaziabad Has
Successfully Completed Summer Training Programme For A Period Of 8
Weeks With Varun Beverages Limited From 06 May 2019 To 30 June
2019, Under The Supervision Of_______________________ AND
______________________.

This Reasearch Is My Original Work And It Has Not Been Submitted

Elsewhere For The Award Of Any Degree/Diploma.

Student Signature
Student Name- Jaswinder Singh
Roll No- 2018028
 ACKNOWLEDGEMENT

I express my sincere thanks to Varun Beverages Ltd. and my company project guide
Mr.OMKAR DHIMAN, (ASM) , for guiding me right from the inception till the successful
completion of the project. I sincerely acknowledge him for extending their valuable guidance,
support for literature, critical reviews of project and the report and above all the moral
support he had provided to me with all stages of this project.

I would also like to thank Mr. Munish Sharma(HOD) and Mrs.Sandhya(HR) for providing me all
the information and support for completion of my project .

I would like to give special thanks to Dr.Timira Shukla(Dean) and my project guide
Prof.Santosh Singhal for giving me support throughout the tenure of my project.
 PREFACE

Marketing plays pivotal role in today’s business scenario in consumer Product Company, when

there is such a high competition in the market.

The emphasis in the project is providing the study and an insight into Indian FMCG business

scenario. The summer project is designed to provide participation of PGDM program as on the

job experience .This has given a chance to try and apply the academic knowledge and gain

insight into corporate culture. This helps in developing decision-making abilities and

emphasizes on active participation by the student.

I undertook our project in Varun Beverages, a leading bottler and marketing partner of PepsiCo

ltd.Durning the training, we had worked on the project “sales promotion of Pepsi varun

beverages limited”

We gained valuable experience & knowledge during the survey. The project consists of our

findings after data analysis & then SWOT analysis & conclusions were drawn and finally

recommendations were put forward.

 EXECUTIVE SUMMARY

EXECUTIVE SUMMARY
The project titled “STRATEGY FOR MARKETING THROUGH RETAIL OUTLETS
IN DELHI/NCR” was done for Varun Beverages Limited a franchisee of PepsiCo India.

Summer internship is known to be a student’s first brush with cooperate world. This is the time
for the students to put words and theories into action. This opportunity to integrate classroom
learning with real life situation. While doing the project students are placed under the guidance
of a manager who serves as a mentor.

This project report deals with Satisfaction of retailers towards products and services offered by
Pepsi. Using the questionnaire for retailers.

The objectives of this topic are-

.To understand various problems faced by retailers of Pepsi product.

.To analyze complaints of retailers towards products and services of Pepsi.

.To study/identify retailers satisfaction level towards Pepsi products and services.

.To develop effective solution to the problems faced by retailers.

The project is carried out depending on the various data which are obtained from both primary
source (direct interview with retailers) and the secondary sources (the website of the company,
books, and print media).

Satisfaction is a result of a product related experience and this question reflects the overall
opinion of a consumer’s experience with the product performance. Satisfaction and attitude
are closely related concepts. The psychological concepts of attitude and satisfaction may both
be defined as the evaluation of an object and the individual relationship to it.

Anything that can be offered to a market for attention, acquisition, use, or consumption that
might satisfy a want or need, include physical objects, persons, organizations, and ideas is called
as product.

Services mean the work done by one person which is helpful to another person and these are
intangible in nature. It is an act of help and assistance.

The analysis is made studying the questionnaire and observation which was distributed among
300 Retailers to find their response about the various questions asked related to the satisfaction
level and problems faced by them, conducted in Varun Beverages Ltd(Pepsi).
The sampling method is using conveyance sampling, the total size of sample is 300 for retailers.
The data and interpretation done through pie chart, percentage, bar diagram and table.

The major findings of the study are related with the Pepsi products and services offered to
retailers in Jodhpur city which includes the retailer’s stock more products of Pepsi soft drinks as
compare to another company products. Retailers were also satisfied with the distribution
network of Pepsi, information regarding new schemes and discounts. They were also satisfied
with the sales person of Pepsi. The retailers were dissatisfied with the credit facilities provided by
Pepsi in Jodhpur city.

The few suggestions for Pepsi from the researcher are-

Delivery of goods should be increased in number for proper catering in the entire area
of Jodhpur Central region effectively and efficiently.
The company should supply its glow sign board, banners etc.as an advertisement media to the
retailers of few areas, which will as usual for satisfaction of retailers.

Credit facilities should be provided to retailers to satisfy their needs regarding payment.

The conclusion of the survey is based on the objectives of the study i.e. various problems
faced by retailers of Pepsi product, complaints of retailers towards products and services of
Pepsi, retailers satisfaction level towards Pepsi products and services and effective solution to
the problems faced by retailers.
 TITLE INDEX

CHAPTER NO. LIST OF CONTENTS PAGE NO.

Executive Summery 5-7

2 Introduction 8-11
3 Objective and Scope of the project 12-13

4 Profiles

4.1Industry Profile 14-39

4.2Company Profile
5 Conceptual Background 40-44

6 Research Methodology 45-49

7 Data analysis and Interpretation 50-68

8 Findings 69-71
9 Suggestions 72-73

10 Limitations of the project 74-75

11 Conclusion 76-77
Bibliography 78

Abbreviations 79
 CHAPTER-1

INTRODUCTION
 INTRODUCTION

India with a population of more than 100 crores 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, Mango & Apple 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 consumer’s
wants a supplying its more efficiency and more conveniently.

India where more than 50% of the total population exists below poverty line the consumer
can’t 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 5000 crores 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”
PepsiCo is one of the oldest, largest and most successful beverage and snack food companies
in the world. Caleb Bradham founded PepsiCo in 1902 in USA. Today PepsiCo and its affiliates
operate in more than 140 countries in the world and generate revenues in excess of $ 40
Billion. In its pursuit of never ending growth and expansion, PepsiCo entered India in 1989 in a
joint venture with Punjab Government. However, PepsiCo India very soon started its beverage
operations in collaboration with the R K Jaipuria group.

Soon after entering the beverage segment PepsiCo Established its dominance in the market
owing to its expertise in sales, marketing, operations and local collaboration. PepsiCo
maintained its market dominance for many more years to come. However, this advantage
slipped and PepsiCo had to concede the market leadership to Coca Cola India. Several actors
were responsible for this development. But, the most important are;

 Ad campaigns targeting regional markets.

 Discontinuation of Slums in the distribution network by PepsiCo. This move by PepsiCo
adversely affected its position of a market leader because while PepsiCo discontinued
the use of Slums in its distribution network, Coke continued it and within one year, it
was able to snatch considerable market share from PepsiCo.

 Acquisition of well-established and favored brands like Thums Up and Limca by Coca
Cola India. These two brands still constitute a bulk of sales for Coca Cola India.
To explore the reasons behind these developments this study will analyze the marketing
initiatives and policies of PepsiCo India in detail with particular focus on its partner relationship
management.

The above-mentioned objectives can be achieved by carrying a proper and planned research
involving different types and methods. The data collected to laid the foundations for the study
and gave a platform for the analysis and findings which lead to the fulfillment of the
objectives.

The data collected for research is primary and secondary. Primary data is collected by
observation, interviews and questionnaires. While secondary data is collected from the
internet through different case studies and reports on the CSD industry. Observation
method was carried in East-Delhi to know the market position and market share of PepsiCo
products. Interviews of people from the sales department were conducted to know the sales
and distribution network and marketing policies of PepsiCo India, while questionnaire method
was used to know about the customer perception of the slim diet can portfolio. Secondary
data is used to know about the CSD industry and the Company i.e. PepsiCo.

The data collection and analysis paves way for the recommendation ad conclusion of the study
that reveals some important findings regarding the strategy and corporate structure and
strategy of PepsiCo India.
 SWOT ANALYSIS

After doing 60 days field work and survey I can take it out the SWOT analysis for VARUN
BEVERAGES LTD. and PEPSI Brand.

Strength

 VARUN Beverages Ltd. is Franchisee Owned Bottling Organization (FOBO) of

world’s famous cold drink company Pepsi.
 VBL uses state art and fully automatic machines and technology for the
production and bottling of the soft drink.
 It has a very strong network and built market and currently holds all the parts
of the state.
 It has wide range of product varieties & takes back breakage, burst bottles etc.
 Though it has strong brand equity, brand image, it can survive in the most
competitive situation.
 It has built market & market share and holds more % with respect to its
competitors.
 Customer retention and satisfaction after sales is good.

Weakness

 No cost cutting program for the products.

 Promotional activities in the rural market are not up to the mark as compared
to the urban market.
 Brand Pepsi in the cola flavor is one of the popular lagging behind its nearest
competitor, only due to high sugar content and less thrilling taste.
 Lacking of communication with retailers.
 Timing of distribution is not very good.
 The cooling system is not distributed properly.
 Opportunities

 Although in the cola market there are many competitors, Pepsi still has the
opportunity to enlarge its market share because the cola in the market is
quite monotonic. Most of the end user is young people. There are still some
people who do not like the taste of the cola. So we can try to provide some
other taste of cola such as adding some lime juice. We can change the flavor in
order to meet different taste of different people.
 New innovative idea for advertisement like road show like “ bheja fry 7up try”
& mountain dew campaign.

Threats

 As to the threats, all of us know that Pepsi-Cola and Coca-Cola have the
competition for about 80 years. Although Pepsi-Cola have won several times
during this competition. The market share of Pepsi-Cola is a little bit smaller
than Coca-Cola.
 There is another threat now a days, some local cold drinks such as Fruit
bear,parle and Saras Dairy have takes their feet in the market.
 One of the products of their competitors in clear lime and lime flavor as a very
good in market share due to its taste.
 Coca-Cola is now spending more & more to boost up the market share & sale.
 MARKETING MIX / 4 P’S FOR PEPSICO

 Marketing Mix has been defined as the set of marketing tools that a firm uses
to pursue its marketing objectives. These tools are classified into four broad
groups, namely, Product, Price, Place and Promotion.
 Marketing mix decisions should be made to influence trade channels as well as
final consumers. A firm can alter any of the four P’s accordingly, including
changes in the product and distribution channel as well.
 The four P’s represent the seller’s view of the marketing tools available for
influencing buyers. Whereas from a buyers point of view, each marketing tool
is designed to deliver a customer specific benefits according to his or her
requirements

Marketing
 Variables: The Four P Components of the Marketing Mix


Product Price Promotion Place



Prod. Variety List Price Sales Promotion Channels

Quality  Discounts Advertising Coverage

Design  Allowances Sales Force Assortments

Features Payment period Pubic Relations Locations

Four P’s
PRODUCT

Pepsi offers different variety of products ranging from carbonated to Non Carbonated Soft
Drinks. These include –

S. No. Products 200ml 250ml 300ml 330ml 500ml 600ml 1000ml 1200ml 2000ml

1 Pepsi          

2. Pepsi diet          



3. Pepsi Gold        



4. Mirinda        



5. Mirinda Lime         

7. 7 up         

8. M. Dew         

9. Pepsi Can         

10. 7 Up Can         

11. Mirinda Can         

12. M. Dew Can         

13. Diet Can         

14. Slice        

15. Aquafina         

16. Tropicana         

17. Everest Lehar         

Product Quality:
This is one of the most important aspects that any Co. needs to address. Specially in the
case of Pepsi this is even more important because of the controversies and claims
regarding the CSE report on Pesticides in Pepsi. Therefore pepsi has to maintain
stringent quality norms and standards and norms. Pepsi does that by following one
quality standard worldwide and according to the official website of pepsi, the Co.
maintains that :
“At every level of Pepsi-Cola Company, we take great care to ensure that the highest
standards are met in everything we do. In our products, packaging, marketing and
advertising, we strive for excellence because our consumers expect and deserve nothing
less. We promise to work toward continuous improvement in all areas of our
organization”.
“At every step of our manufacturing and bottling process, strict quality controls are
followed to ensure that Pepsi-Cola products meet the same high standards of quality
that consumers have come to expect and value from us. We also follow strict quality
control procedures during the manufacturing and filling of our packages. Each bottle
and can undergoes a thorough inspection and testing process. Containers are then rinsed
and quickly filled through a high-speed, state-of-the-art process that helps prevent any
foreign material from entering the product. Additional quality control measures help to
ensure the integrity of Pepsi-Cola products throughout the distribution process, from
warehouse to store shelf”.

Brand Name:
This is the most important thing any Co. in this Business needs to do if it wants to
remain and succeed in the Business. Pepsi has successfully done that for so many years.
Pepsi has targeted the youth and has invested heavily in advertising and building a
brand image (by launching several campaigns and roping in mega stars such as
Shahrukh, Sachin, Ganguly, Rahul Dravid, Ranbeer Kapoor etc.) that attracts to the
youth and this is one of the main reason for the success of Pepsi.

Packaging and Size:

The products are available in packaging and sizes. This is done to facilitate the use
according to the requirements of the Customer. Different packaging also affects the
usage pattern of the product in various markets. e. g. sale of 2 lt. bottles is high in areas
in which middle and high income group customers stay. But the sale of 200 and 300 ml
bottles is high in areas where people in the lower income group bracket stay. The sale of
600 ml bottles is high in areas where students etc. stay. Different packaging is also
provided for different products like Tetra Packs, Pet Bottles and Glass Bottles (in 200
and 300 ml).
Services, Warranties, Returns:
There are no warranties and services (post sales) provided for these products but there is
provision of returns in case there is any problem with the product, e.g. leak or burst
bottle, half filled bottle etc. The pet or plastic bottles are returned the same day and a
replacement is provided for the same but in the case of glass bottles the retailer has to
collect all the burst bottles and return it to the salesman around 25 th of every month to
get a replacement.

PRICE

List Price: The Price of each product is fixed and there is no discrepancy. Salesmen are
not authorized to make any change, alteration or give discounts unless authorized by the
Company.
Discounts: Discounts are provided to Wholesalers and Slums but there is no discount
for retailers. The discounts are negotiated directly with the Company and the C&F or
the Distributor point is not involved in the price negotiation.
Allowances: Allowances are given to salesmen on achieving their daily targets. This
target is given to every Salesman every day before he goes on his designated route. The
Depot In charge (Sr. C E / C E) gives the target to every salesman in consultation with
the TDM.
Payment period and Credit terms: No credit is provided. The payment procedure is
not flexible as the retailers are required to make on the spot payments. At times, they
defer the payment and in that case, the Salesman either shows a shortage or pays the
rest of the amount by himself. The wholesalers are also required to make in advance but
at times they also defer the payment and make the payment at a later date.

PLACE
Channels: ‘Channels are independent organizations involved in the process of making
a product or service available for use or consumption’. There are different
intermediaries in channels that facilitate the availability of goods to the consumer.
Coverage: Two things come under market coverage. These are Market Reach and
Market Penetration.
Market Reach can be termed as accessibility and Market Penetration can be termed as
Frequency.

PROMOTION

Sales Promotion: This is the most frequently used form of promotion which is used to
increase the sale of the selected product. These promotions are used from time to time
depending upon the sale of the products. If the sale of any particular product declines or
shows a declining trend then a suitable Sales Promotion Campaign is launched to
increase the sale of that product.
Advertising: Advertising is done by PepsiCo. COBO (Company owned Bottling
Operations) and FOBO (Franchisee owned Bottling Operations) have no say in the
advertising campaigns and their planning. The advertising account of Pepsi is handled
by JWT (J Walter Thomson) in association with the Corporate office of PepsiCo India.
Sales Force:
There is a dedicated sales force at every C&F and Distributor point. Every Salesman is
assigned a specific route that he has to cover every day. The Salesman has to take care
of all the Shops on the designated route and address and inform (to the Sr. CE / CE)
about any issue any retailer has on the route. The Salesmen are also assigned the task of
providing all the information to the retailers regarding the daily schemes and the details
of all the promotion schemes launched from time to time. These include informing the
retailer about the promotional scheme, registration for the scheme, terms and conditions
of the scheme etc. The Salesman is also assigned the task of registering maximum
possible outlets on his assigned route.

Public relation:
This is one important aspects related to the success of PepsiCo in India. Pepsi believes
in maintaining good and healthy relations with all its Channel partners and every other
person in the value chain. This has helped Pepsi in maintaining an extremely
competitive position in the market in spite of the continuous onslaught from Coca Cola.

RESEARCH METHODOLOGY
Research is an art of scientific investigation. It is defined as “A careful investigation or enquiry
especially through search for new facts in any branch of knowledge.”

Research methodology is considered as the nerve of the field work or any project. Without
proper well organized research plan, it is impossible to complete the project and reach to any
conclusion. The project was based on the survey plan. The main objective of survey was to collect
appropriate data, which work as a box for drawing conclusion and getting result.

Therefore, research methodology is the way to systematically solve the research problem.
Research methodology not only talks of the methods but also logic behind the methods used in
the context of a research study and it explains why a particular method has been used in the
preference of the other methods.

Definition

“Marketing research is a systematic gathering, recording and analysis of marketing problem to

facilitate decision making”. Coundiff & Still

“Marketing research is a systematic problem analysis, model building and fact finding for the
purpose of important decision making and control in the marketing of goods and services.”
Phillip Kotler

MAIN STEPS INVOLVED IN MARKETING RESEARCH

Defining the Marketing Problem to be tackled and identifying the market research problem
involved in the task.

(1) Define the problem and its objectives.

(2) Identify the problem.
(3) Determine the information needed.
(4) Determine the sources of information.
(5) Decide research methods.
(6) Tabulate, Analyze and Interpret the data.
(7) Prepare research report.
(8) Follow-up the study.

Descriptive research
It is well structured. It can be complex a high degree of scientific skill on the demanding a high
degree of scientific skill on the part of the researcher. It can be taken in certain circumstances.
When the researcher is interested in knowing the characteristic of certain groups such as age,
sex, education level, occupation or income a descriptive study may be necessary.

RESEARCH DESIGN

Research design is important primarily because of the increased complexity in the market as well
as marketing approaches available to the researchers. In fact, it is the key to the evolution of
successful marketing strategies and programmers. It is an important tool for study buyer’s
behavior, consumption pattern, selling pattern, brand loyalty, and focus market changes.

SAMPLING METHOD

Sample design is a definite plan of obtaining some items from the whole population. The sample
design used in this project is two state sampling i.e. cluster sampling and convenience sampling.
The total sample size was 300 retailers.

Convenience sampling

This type of sampling is chosen purely on the basis of convenience and according to convenience.
Researcher visited retailers, malls stores.

SAMPLING DESIGN

Survey for Retailer’s

Sampling techniques - Non probability sampling (Convenience)

Sample unit - Retailer’s those are selling soft drinks.

Sample size - 100 retailers.

Method - Interview through structured Questionnaire.

Data analysis method - Pie chart, Bar, Percentage.

Area of survey - NEW DELHI/NCR

Data-sources-

Retailers/Dealers (Cold drinks stalls, Ice stalls, Hotels, Restaurants Sweet shop, Pan Shop,
General Stores, Telephone Booths etc.) Depot internal Company’s Records etc.

DATA COLLECTION METHOD

There are two types of data Viz., Primary Data and Secondary Data. The primary data are those
which are collected a fresh and for the first time and thus happen to be original in character. The
secondary data, on the other hand, are those which have already been passed through statistical
process while doing our research I had taken the help of both primary data as well as secondary
data for analyzing the results.

METHOD FOR COLLECTING PRIMARY DATA

During survey the primary data collected from structured Questionnaire. In this survey method
a questionnaire is personally given to the respondent from the selected sample with a request
to answer the questions and return the questionnaire. A questionnaire consists of number of
questions relevant to the research problem, printed or typed in a definite order on the form or
sets of forms. The questionnaire is personally provided to respondents under the guidance of
the researcher, who are then expected to read, understand and write down the reply in the
space meant for answering various questions in the questionnaire itself.

SOURCES FOR COLLECTING SECONDARY DATA

Secondary data collected from various magazines, internet and various books. For the collection
of secondary data various articles and researches from news journals, company internal records,
and personal researches relevant to the research problem have been included.

All the findings and conclusion obtained on the survey done in the working area. With the
limit, I tried my best to select the sample representative of the whole group. During my job
training I maintained different routes during my dealer survey. I have collected data from the
Depot of JODHPUR under the organization itself.

QUESTIONNAIRE

This is the most popular tool for the data collection. Researcher designed questionnaire
according to the topic and objective of the research project, researcher used three type
questionnaire methods into data collection, i.e.

 Multiple choice questions

 Open end questions
 Dichotomous

Multiple Questions

Multiple questions researcher used because many option in this kind of questions and easy for
getting response from respondent. Researcher used 16 multiple questions.

Questions of this type offer the respondents an alternative to choose the right answer among
others. It is faster, time saving and less biased. It’s also simplifies the tabulating process.

Open end Questions

Open end question basically put know about respondent answer in there form, but most of the
respondent just blank it, and go with another question. One open end question used in this
project.

In this type respondent are free to answer in their own words and express the ideas they think
are relevant

Dichotomous

Dichotomous question very simple and any one can able to answer that particular question
teenage, young and old. Two dichotomous questions used in this project.

These are the questions which are Boolean in nature. These answers are straightforward and
respondent have to answer them in a straight way. That means the answer can only be either
‘Yes’ or ‘No’.