Pepsi Project Report
Pepsi Project Report
PROJECT REPORT
                            ON
 “A brief Study on effectiveness of Channel of Distribution
                Of Pepsi Products in Patna”
                             AT
        Lumbini Beverages Pvt. Ltd.
                          Hajipur.
          In Partial Fulfillment of the Requirements
                       For the award of
        POST G R A D U A T E DIPLOMA IN MANAGEMENT
      I, Mr. Shushil Kumar declaring that all the information given in this
project report is true and correct as far as I know.
      I am also declaring that all the work in this project is done by me and not
copied from anywhere.
                                                            Shushil Kumar
                                                       IIMT Professional College
                                                            Meerut (UP)
                                          i
                                 ACKNOWLEDGEMENT
       At the very outset of engaging my self in to the Project Report. I would like to
express my sincere gratitude to all those who extended their not only to convey their best
wishes but also to give me support on this hi-undertone path. This Project Report on my
eight weeks practical training in “Lumbini Beverages Pvt. Ltd.” Hajipur (Pepsi) in area of
Patna is a part of my course curriculum of my PGDM.
       This project could not have been completed without timely suggestion advice and co-
operation of a lot of persons.
       I am extremely thankful and pay my gratitude to Mr. Raju Tayagi (Head –
                                                ii
                              EXECUTIVE SUMMARY
The distribution network of PEPSI is well known for its efficiency but company constantly
strives for the betterment of their distribution network system. Emphasis of our study was to
focus on the customer of company i.e., the retailers.
       The Retail Mapping of Patna is an integral step for the assessment, development and
betterment of this system. The distribution system not only comprises the movement of the
products but also incorporates the merchandising of the product, which is very broad in its
purview.
       The title of my project is “A Brief Study of Effectiveness of Channel of distribution
of Pepsi product in Patna”
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.
In any soft drink, on the globe Pepsi food is one of the largest soft drink companies in the
world with its headquarters in New York. It was invented by Pharmacist Culab D. Baradham in
1898 to cure the disease “Dyspepsia”
Bottle washing is an important part in soft drink plant. The empty durable and returnable bottle
used are returned from market in plastic carats are fed to a bottle washing machine (washer).
The machine has double end system with circular chain to carry the bottles. Caustic s o d a
T r i -Sodium Phosphate, Sodium Glausonate is adding to the caustic by the supplied.
    The channel of distribution is a structure which organized and presents a choice
 among alternative channels of distribution of the different marketing situations faced by
 retailers, whole sellers and producers with in the structure. It may be considered as a
 series of function which must be performed in order to make producers efficiency.
                                               iii
                                       PREFACE
       There is a famous saying “The theory without practical is lame and practical
without theory is blind.”
       This modern era is era of consumers. Consumers satisfy themselves according to
their needs and desires, so they choose that commodity from where they extract
maximum satisfaction.
       It has been identified that in the beginning of 21st         century the market was
observed a drastic change. The successful brand presents itself in such a way that buyers buy
them in special values which match their needs.
       Marketing is an important part of any business and advertisement is the most
important part of marketing.
       Summer training is an integral part of the PGDM and student of Management have
to undergo training session in a business organization for 8 weeks to gain some practical
knowledge in their specialization and to gain some working experience.
       Our institution has come forward with the opportunity to bridge the gap by
imparting modern scientific management principle underlying the concept of the future
prospective managers.
       To the emphasis on practical aspect of management education the faculty of IIMT
Professional College, Meerut h a s with a modern system of practical training of repute
and following management technique to the student as integral part of PGDM. in according
with the above obligation under going project in “Lumbini Beverages Pvt. Ltd.
Hajipur. The title of my project is “A Brief Study of Effectiveness of Channel of
distribution of Pepsi product in Patna”
       Certainly this analysis explores my abilities and strength to its fullest extant for the
achievement of organization as well as my personal goal.
                                              iv.
                          CONTENTS
Title                                                                   page no.
   Declaration…………………………………………………………………………..i
   Acknowledgement………………………………………………………………..…ii
   Executive summary…………………………………………………………………iii
   Preface………………………………………………………………………………iv
                 5
                 INTRODUCTION                         TO THE STUDY
        When Mr. Rajeev Gandhi came into the power as Prime Minister of India, then it was
expected the liberalization of Indian economy. This was the expectation of his modern
concept regarding every walk of life. When Pepsi has appealed on our collective
consciousness of few years ago to be more exact in April 1989. When it set up operation for
beverages snack foods and export business.                The establishment of Multinational
Company Pepsi was supposing to prediction in present Indian business scenario.
        Despite love for ones own motherhood and traditional concept of Indian people it was
assumed that it is very hard to make and create taste and preference about soft drinks but
despite of having so many confusion, no one was able to assume such a wide
acceptance and it was PepsiCo. Who could be able to penetrate in Indian soil and it was the
Pepsi that has got not only a place in Indian hospitality, but also taken place of traditional
sharbat of lemon and sugar. And needless to say “Generation next has become the slogan of
the day.”
        The first managing director was Mr. Ramesh Vanagal but present is Mr. P.M.
Sinha in India. During these years beverages begin an exclusively franchise operating
beverages now has five company owned bottling operation (COBO) the business expects to
grow three times faster than the industry growth rate 1995 and its vision is to become
INDIA’S BEST CONSUMER PRODUCT COMPANY in all                             aspect. The s n a c k s
business has seen some major success and going for leadership too. Pepsi is a leader in the
snacks food business. The division plans to introduction wide range of snakes in to Indian
market in the next three years. The restaurant business has also come Kentucky Fried
Chicken (KFC) has opened its first outlet at Bangalore Pizza but it also expected to open
restaurants shortly city wise. Whole of the operations of Pepsi in India has made a rapid
change in Indian life style, which is resulting in fast food life.
        Pepsi is a world leader in restaurant & soft drink whether it is in London or in
Ludhiyana, America or Ahamedabad, Berlin or Bombay, Paris or Patna, Manchester or
Madras.
                                                  6
       Pepsi company has pumped in Rs. 300 crores ($ 95 million) as fresh capital and has
recently received permission from the foreign investment board in Rs. 300 crores ($95
million) more. The investment phase will continue and could add unto Rs. 700 crores over
the next three years. The figure is not cast in stone if volume exceeds according to
expectation. They will increase capital expenditure.
       Apart from these things there is an expression which can not verify easily that is
Pepsi has made qualitative gains. The foremost is its image from being perennially seen as a
loosing company it’s now got the image of being a winner. This major turn around is not
small achievement considering that since it was established in 1989 taking the hard ship
route prior to liberalization and weighed down by export commitments? Pepsi has won
more battles than it has lost.
                       In April 1993 Voltas and Punjab Argo’s stakes were bought over
converting Pepsi foods from a three way joint venture to be a fully owned subsidiary week
bottlers who did not have the financial capacities were given massive support in the form in
interest free loans to upgrade their operating capacity . But the strategy which has proved to
be winner was the position, Pepsi decided to take in Company Owned Bottling Operation
(COBO). For this another subsidiary PepsiCo. India holding was set up as an investment
vehicle, capitalized 95 million dollar. Within a year 1994 Pepsi has bought over 5 bottlers
including dukes in Mumbai, which was running in Maharastra which has been bought over
from Voltas high speed imported lines with a speed of 600 bottles per minute was installed
in Delhi. Pepsi has a strong franchisee in the Jaipuria’s of Pearl drinks. Pepsi is setting up a
new plant at Jaipur.
                                               7
                           OBJECTIVE OF THE STUDY
       Management is a course which teaches the student to get the work done properly
from different available sources viz. man, machine, material, money etc. So there can be a
satisfaction from the organization side and the workers side who play a significant role in
achieving success. So far the fulfillment or the management course, it gives emphasis to
project work and students learn how to plan in practical terms rather in terms of theory only.
Student tends to develop analytical and problem solving skill. We necessary become
motivated and competitive, in fact all the learning that goes on for the two year term
become so much the part of our thinking that we developed a well all rounded
personality.
        Cold drinks were started with the idea of quenching the thirst of the persons
traveling. It was also felt that reliable good water was not available everywhere. So people
would really on their packed bottle and with this idea its makers made these drinks
available mostly, at those places where water was not available i.e. on highways and long
distance trains.
        But slowly and slowly with its beautiful taste these become very popular and now they
are available not only in the market and street corners, but also people have started keeping
it in their house.
        The credit of popularizing the soft drink goes to Coca Cola. This was the drink
which is liked by all ladies, gents and children. Now day’s soft drinks are quenching thirst
looks more often; they are taken due to habits.
        Gold Sport is considered as the first branded soft drinks, established 53 years ago
before all empowering Coca Cola faced competitions and its euphoric image built up in the
western countries helped it get ready clientele and clamor. Parle Export Pvt. Ltd. is
regarded as the first Indian Company introducing Limca a leman drink complementary to it
this has also introduced Cola Pepone which was withdrawn in the face of tough
competition from Coca Cola.
        When Coca Cola bid a Farwell in 1977, Indian market was open for various new
forward publishing different brands in the markets. Parle people introduced their Cola,
Thums Up with a mighty saying “Happy days are here again” as if happy days went away with
Coca Cola. Pure drinks of Delhi also w i t h o u t lasing much introduced pure drinks were
producing and marketing Coca Cola earlier Campa Cola with Campa orange and Campa
lemon. Modern Bakeries entered the market with Double Cola Seven, Mohan Makings
with Merry & Plkup and McDowell with Thrill, Rush and Sprint. This is Indian market where
there was no competition and high voltage advertising was on each one was trying their
best to become number one company with ‘A’ class product in the field of Soft Drink
business. Now after a long gap government of India had given permission
                                                9
to Coca Cola, which joined with Parle to do business in India. They are trying their best to
regain prestige which it had before. The much rival of Parle is Pepsi an American
concern. It started business on the Indian soil just a few years ago.
       Today, it has occupied 62% shares of Soft Drinks market in India. Now Pepsi is
going all out to prove that they are the b e s t . But now due to some   factors   competition
among them has become stiffen. So in this way the important activities have increased.
                                                10
                       SCOPE OF THE STUDY
                                               11
INTRODUCTION TO THE SOFT DRINK IN INDIA
                             12
                       Profile of Pepsi International
     Pepsi is situated at Somers New York in U.S.A. Indra K Nooyi is chairman and CEO of
     Pepsi.
Calab bradham A North Carolina pharmacist concocted Pepsi-cola in the year 1890 as a cure
Dyespsia (indignation), in 1903, business strategy worked & in 1905 he built in 1909 he had a
New York auditing agency. PepsiCo Food & Beverages International, a full fledge co. earn s
more then half of its global revenues from snack foods & fast foods. PepsiCo’s major Business
includes Pepsi foods, KFC, pizza hut, taco bell & California pizzas is a world leader in restaurant
business also. PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab
government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited.
PepsiCo is a world leader in convenient foods and beverages,
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 to convert social needs into profitable
opportunities. So this topic provides all the essentials to 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.
                                                13
            HISTORY OF THE SOFT DRINK IN INDIA
       Christopher Columbus as a traveler of world found a lot of new things which was not
in the eye of the world community which is now in our history but now if any one does
travel to whole part of world to get one thing in some form that is Pepsi. Travel to any
corner of the globe you are sure to spot a label splashed in blazing blue, red and white
becoming you to some “Sugared water”. This dark coloured drink WillyMilly has today
become nothing but spot of an international anthem with young and old, rich and poor
wants for a sip and saying “Yeh Dil Mange More.”
       Gold Spot is considered as the first branded soft drink established 53 years ago
before all empowering Coca Cola entered the country to dominate the scene. It faced no
competition and its euphoric imaged built up in the western countries helped it to get
ready clientele and glamour. Parle Export Pvt. Ltd. Is regarded as the first Indian
company introducing Limca, a lemon drink complimentary to there well established Gold
Spot in 1970 which got moderate success. However, before this, he had also introduced
Cola Pepino which was withdrawn in face of tough competition from Coca Cola.
       When Coca Cola bid farewell in 1977, Indian market was open for various cold
drinks several companies came forward publishing the different brands in the market. Parle
people introduced their Cola Thumps Up with a mighty bang saying “Happy days are here
again” as if happy days went away with Coca Cola.. Pure drinks of Delhi also without
losing much time introduced pure drinks were producing and marketing Coca Cola earlier
Campa Cola along with Campa orange and Campa lemon. Modern Bakeries entered in the
market with the Double Seven.
Moharn meakings with Merry Pikup and McDowell with Thrill, Rush and Sprint in
Indian market where there was no competition previously. A cut throat competition and
heavy advertising was on. Each one was trying their best to become the number one
company with ‘A’ class product in the field of soft drink business in India.
                                                  14
       Now after a long gape the govt. of India has given permission to the Coca Cola to start
their business in India. Coca Cola has joined hands with Parle to the business on the
Indian soil. They are trying best to regain its prestige which it has before.
       The much rival of Parle is Pepsi an American concern. It started business the
occupied nearly 50% share of soft drinks market in India. Now, Pepsi is going all out to
prove that they are the best.
                                                 15
                                       HISTORY OF PEPSI
         PepsiCo is a USA based company having its head quarters at New York with the net
worth of $30-40 million. The average sales of the company are approx 90 million bottles
per month. Pepsi made it first international move in Russia in 1959. During the
Khrushchev era, within 32 years Pepsi emerged as the biggest competitor for Coca Cola.
Pepsi is available in 155 countries.
                   In any soft drink, on the globe Pepsi food is one of the largest soft drink
companies in the world with its headquarters in New York. It was invented by Pharmacist
Culab D. Baradham in 1898 to cure the disease “Dyspepsia”. It is from this word that its
name was related to Pepsi. Soon it entered the American market as soft drink, which at that
time mostly dominated by Coca Cola, but soon Pepsi able to dominate the Cola market,
and there after it never looked back. Pepsi and Coca Cola are engaged in ferocious cola
war that has taken the whole world by storm.
         Pepsi entered the Indian soft drink in Kanpur in 1988 and began its production in
May 1990 and soon it was giving the local contenders run for their money in soft drink
market. It comes out with dazzling marketing innovation that rocked the cola market, like
selling t h e p r o d u c t t h r o u g h f u n c t i o n   Pepsi o u t l e t s . Its a d v e r t i s e m e n t a g e n c y
w a s “Hindustan Thomson Association” (HTA). Its advertisement budget for 1995-1996
was valued at Rs. 24 crores which is likely to be increased manifold in coming years.
         Pepsi food is one of the largest and best foreign investments in India. Till today it has
invested Rs. 500 crores in India to develop the local market. Pepsi has distributed exclusive
franchises in India to bottle its total product. There are 28 bottling plant of Pepsi in India.
Some are directly controlled by Pepsi and rest is under various franchisees.
         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.
                                                            16
        In April 1997 the Pepsi cola international decided that Steel City Beverage will
cover south Bihar (now Muzaffarpur) only. In this accordance Pepsi cola international
decided to open another bottling plant at Hajipur named Lumbini Beverages Pvt. Ltd.
Hajipur which will distribute Pepsi product in whole Bihar. Ananda Marketing as a
marketing division of   Lumbini Beverages Pvt. Ltd. Hajipur started functioning in April
1997;      Managing Director of Lumbini Beverages Pvt. Ltd. Hajipur is Mr. Charan Khelani.
The director of this organization Mr. Ravi Khelani and Mr. Manoj Khelani
                                             17
                     PRODUCTION PROCESS
     The process of manufacture of Aerated water (soft drink) like Pepsi brand product is
divided into mainly five parts such as
   1. Water Treatment
   2. Syrup Making
   3. Bottle Washing
   4. Filling
   5. Testing of Product
   (1) Water Treatment: - Water treatment is very essential in soft drinks plants as
        the nature and quality of water varies from place to place. To set uniform and
        standard water the process of treatment is carried on. The water taken out from
        bore well by the help of motor pump and pipe line are collected in storage tank
        where is pre chlorinated by chlorinators and by the help of pipe lines comes to
        treatment tank called coagulation tank where to this water solutions of different
        strength of bleaching powder, ferrous sulphate, hydrated lime are added through
        dosing pump to reduce alkalinity, hardness, kill the bacteria .The chemical are
        mixed by mechanical stripper and then the suspend mattress settle down as
        sludge and clear water passes to retention tank. From this tank, the water passes
        through sand filter containing fine sand and pebbles and carbon filter containing
        granular carbon and finely through water polisher, micron filter, and UV lamp to
        ensure clear and sanitary water for use. Further water used in bottle washer and
        boiler need softening .for this purpose ,the water from storage tank ,after passing
        through two filter beds contain fine sand and granular carbon respectively comes to
        pass through bad resin were it is softened .this soft water is essential to use in and
        bottle washer to reduce scale formation inside the machines.
                                              18
(2) Syrup Making:- For syrup making of particular brand, calculate quantity of
   sugar water activated carbon and high flow super cell known as filter aid taken in to
   sugar to enter steam and also filled by a motor with agitator. Sugar syrup called
   raw-syrup is prepared by dissolving the sugar with continuous stirring and heating by
   steam supplied by fired boiler. This hot syrup by the help of pump is filtered through
   a filter press attached with a series of quality filter paper to separate out carbon
   particles. Clear hot syrup by the help of SS pipe lines passes through water P.H.E. for
   cooling and the then another P.H.E. circulated by glycol for further cooling. The
   chilled syrup comes to a mixing tank to use calculating of sugar quantity by Brix
   Hydrometer, concentrate added and mix thoroughly by a mechanical Stirrer fitted to
   the tank. This syrup is now finished syrup ready for use. The concentrate mainly,
   the liquid part are kept in a cold store, the temperature of finished syrup is
   also maintained by air-conditioner. All the containers used for syrup making are
   cleaned and sanitized by Soda-Bi-Crab, strong chlorine solution and hot caustic soda
   solution.
(3) Bottle Washing: Bottle washing is an important part in soft drink plant. The
   empty durable and returnable bottle used are returned from market in plastic carats
   are fed to a bottle washing machine (washer). The machine has double end system
   with circular chain to carry the bottles. Caustic s o d a T r i -Sodium Phosphate,
   Sodium Glausonate is adding to the caustic by the supplied. The Caustic tank
   filled in with water heated by steam supplied by the boiler. The empty bottles enter
   to the hot Caustic tank in one end and after being cleaned by hot Caustic solution
   and finally washed with water through spray jets fitted are discharged in other end.
   The washed bottle proper inspections are SU 319 and SU 853 used for conveyor
   cleaned and smooth running of chain carrying bottles.
   SU 260 and SU 773 is used for bottle cleaning, shining, and mold removing.
                                         19
(4) Filling: - Finished syrup and treated water lime are commixed to a dosing pump
    which mixes syrup and water with ratio of 1:5 and the syrup mixed with water
    enters to carbonator tank to mix CO2 gas, which is preserved in cylinder for use.
    The cylinders are connected through CO2         manifold to tank to use requisite
    quantity of gas. To control CO2 pressure and temperature of liquid; we used
    recording control (Taylor). The syrup passed through a P.H.E. which is called
    itself by circulation of chilled glycol supplied chilling F-22 gas used. The syrup
    being chilled easily mixed with CO2 gas and enters to filter for bottling. The filter
    is connected with filling valves and lift cylinders. The lift cylinder functions by
    pressure of air supplied by an air composer. The syrup is known as beverage in this
    stage is filled in the cleaned bottles which are durable in nature and returnable by
    buyer filling machine (filter) by a counter pressure of carbon dioxide gas. After
    beverage filled in bottle it goes to the crowner where with the help of crown crocks
    the bottles are sealed (crowned) to project the carbonation, flavor, outside
    contamination and spoilage. The finished products are coded by a coding machine
    and inspected properly by inspection light while passing through the conveyor where
    finished product are accumulated enters to carat washer machine and it is washed
    moves through the conveyor where finished product are accumulated.
    (5) Testing of product:- Finally the finished syrup during bottle is tested in
    laboratory to meet the parameters and also to get a standard and quality products to
    maintain the standard and      information and uniformity in products the sugar
    contents and carbonation in the bottle are checked in regular intervals by Brix-
    hydrometers, Refrectometer and pressure gauge. The dead weight tested is used to
    calculate pressure gauge to know the correct pressure. TA & Ph are tested by
    digital Ph meter.   Electronic digital balanced is used to weight chemical to
    conduct test in lab. The purity of CO2 is checked by CO2 purity tester.
                                             20
The chlorine comparators. The microbiology test of the product and water used in
syrup making and production are also done to ensure that the product is free from any
bacteriological    contamination.     To conduct the micro tes t hot         sterilizer
incubator, autoclave, pads filter membranes, media are produced and used.
        The Diesel generator is operated in case of electricity failure for smooth
operation of the plant. To drawn electricity for the State Electricity Board the
transformer is used.
                               PREPARATION OF SYRUP
                                Treated water + Sugar = Flavor
                                           21
                 PRODUCT MANUFACTURED
       The product manufactured by “Lumbini Beverages Pvt. Ltd. are very limited
ranges as it is not independent to diversity its products. It is a unit of Pepsi food Pvt. Ltd.
which supplies concentrates for drinks. They are:-
CONSUMERS
       The main consumers of these products naturally are youth. Besides the direct
consumer it is also used for the some purpose of providing it to the mass by hoteliers,
restaurant owners and various other soft drink peddlers. These products are the choice of
the new generation. Thus it can be said that it is a product of mass consumption.
                                                22
ORGANIZATIONAL STRUCTURE
       23
  HISTORY AND ORGANIZATIONAL STRUCTURE OF
            LUMBINI BEVERAGES PVT. LTD. HAJIPUR
                                              24
       Before some months “Ananda Marketing Pvt. Ltd. was the marketing division of
Lumbini Beverages Pvt. Ltd. But at this time, Lumbini Beverages Pvt. Ltd. is doing
marketing with its own name.
       Thus it can be seen that Lumbini Beverages Pvt. Ltd. has made tremendous move
towards the introduction and development of soft drinks industries on the whole, and
North Bihar in particular. It has made production of perfect hygiene and standard Soft
Drink as main objective.
                                                25
                   OVER ALL ORGANIZATIONAL STRUCTURE OF
                      LUMBINI BEVERAGES PVT. LTD.
BOARD OF DIRECTOR
                                                SHIPPING
         A/C         SHIFT ENGINEER             COORDINATOR              H.R.
       ASSISTANT                                                    EXECUTIVE
                       WORKER /
A/C CLERK             OPERATOR                                         H.R.
ASSISTANT                                                       CLERK ASSIS.
HOS
                                         26
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
                                               27
FRAME WORK OF CHANNEL OF DISTRIBUTION
               28
A THEORETICAL FRAME WORK OF CHANNEL OF DISTRIBUTION
                                                 29
   The channel of distribution is a structure which organized and presents a choice
among alternative channels of distribution of the different marketing situations faced by
retailers, whole sellers and producers with in the structure. It may be considered as a
series of function which must be performed in order to make producers efficiency.
       To bearing maximum profits of all institutions concerned a channel of distribution
should be treated as a unit of total system of action. The activities of the manufacturer
need to be coordinated with these middlemen used in the distribution of given product.
       The important of middlemen in channel of distributional can be over emphasized. It is
that who-
   1. Collects concentrate the output of various producers,
   2. Subdivides these into lot desired by the customers gathers various items together in
       the assortment wanted and
   3. Disperses the assortment to consumer industrial buyers.
   The role of middlemen that of specialist in concentration equalization and dispersion
besides he side in the creation of the time from and procession utilities.
                                                30
        DECISION MAKING FOR CHANNEL DISTRIBUTION
Channel 1.      Manufacturer………………………………………………..…Consumer
Channel 2.      Manufacturer……………Retailer……………………………Consumer
Channel 3.      Manufacturer……...Wholesaler………….Retailer…………Consumer
Channel 4.      Manufacture…….Wholesaler……Jobber……Retailer…….Consumer
                                                31
                            CHANNEL DYNAMICS
       Distribution channel do not stand still. New wholesaling and retailing institution
emerge and new channel system evolves. There are four types of marketing channels.
                                              32
CHANNEL OF DISTRIBUTION OF LUMBINI BEVERAGES PVT.
                     LTD.
                       33
                  Channel of            Distribution of Lumbini
                     Beverages Pvt. Ltd. Hajipur, in Patna
        To make its products available at the right places at the right time in the market, the
sales department of the company pays major attention on controlling the channels of
distribution.
        Single type of markets channel is maintained by the company right from its
pioneering stage. The nature of the channel is as follows:-
                                            Company
Distributors
Dealers
                                           Consumers
        At first the soft drinks supplied to the distributors directly. Retailers or owners of any
outlet can not 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.
        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.
                                                34
       The retailers are selected by the distributor fixed criteria for the selection or
appointment or retailers from the side of the distributor .       Any o n e l i k e P a n w a l a ,
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.
                                                35
                                   WAREHOUSING
       Every company has to store its finished goods until they sold. A strong facility is
necessary because production and consumption cycles rarely match.
       Warehousing is not a simply storing activity but a package of services that
enables the smooth running of the industry.
       The stores must be in constant touch with the use department in order to provide
uninterrupted services to the manufacture and its decision since working capital is locked up
in the warehousing stores in equal to money.
       The stores functions can be organized in the following manner:-
            a) To receive raw material components equipments etc.
            b) To meet the demand of use department by issuing the order
            c)    Accounting the transaction properly.
            d) Minimizing obsolescence surplus and scrap by right identification and using
                 correct preservation method.
       The company supply finished products frequently to different distributors as per the
demand.
        Every distributor keeps a minimum stock of different products of the product line so
that the uninterrupted supply could not affect.
       In the industrial sector service of optimization where boils down to any exercise of
optimization where limited available resources are to be distributed equitably.
       The problem arises from the material that are in stock the form of capital cost,
storage loss, pilferage obsolescence, insurance, handling, documentation etc. Services level
that can be maintained and hence the concept stores in money should be understood
by every body in the organization.
                                                  36
                         INVENTORY DECISION
(2)       Wholesaling
             Wholesaling includes all the activities involved in selling goods or
      services to    those who buy for resale or business use. Manufactures use
      wholesalers because wholesalers can perform function better and more cost
      effectively than the manufacture can. These functions are not limited to selling and
      promoting,    buying    and    assortment   building    bulk   barking,    warehousing,
      transporting financial risk bearing dissemination of marketing         information and
      provision of management services and consulting.
         Like retailers wholesaler must decide on target market, product assortment and
      services promotion and place. The most successful wholesalers are those who adopt
      their services to meet and target customer’s needs, recognizing that existing
      to add value to the channel.
                                             37
(3) Retailing
          Retailing includes all the activities involved in selling goods or services
   directly to find consumer for their personal non-business use. A retailer or retail
   store is any enterprise which sales volume comes primarily form retailing.
   All marketer retailers must prepare marketing plans that include decision on target
   market.
                                         38
                         DISTRIBUTION OF PEPSI
Channel 1.     Manufacturer…………………………………………………Consumer
Channel 2.     Manufacturer……………Retailer…………………………..Consumer
Channel 3.     Manufacturer………Wholesaler………….Retailer…………Consumer
Channel 4.     Manufacture…….Wholesaler……Jobber……Retailer……..Consumer
By Lorry or Truck
Distributor
Dealers of customer
                                              39
                                 MARKETING STRATEGY
Marketing Strategy is the complete and unbeatable plan designed specifically for attaining the
marketing objective of the firm. The market objective indicates what the firm indicates, what the
firm wants to achieves, the marketing strategy provides for achieving them.
The marketing strategy is not just idea. It is a well outlined plan, and there are different ways to
formulating it. Basically formulating of marketing strategy consists of two main steps.
Selecting a target market. Assembling the marketing mix. Actually, the target marketing and
marketing mix together constitute the marketing strategy of the firm.
When the Pepsi food company entered in the Indian soft drink market, the market was already
prevailed by coke and previously it was Parle. Pepsi tried to establish in India with a unique
marketing policy. Pepsi took into consideration of youth segment target market. Though the
advertisement of Pepsi highlighted the style of living of young generation with different walk of
life. Pepsi brought in its advertisement different stalwart’s personalities from fields like young
cine stars, sport stars and famous personalities from different fields. It has attracted the young
generation and of course increase the sale of Pepsi, Pepsi also organized many national and
international sports events to attract the young generation.
                                                 40
                        MARKETING MIX OF “L.B.P.L.”
A product, place, price and promotion (4p’s) that the firm blends to produce the response it
wants in the target market. These are the following 4Ps.
 Products:- That could meet the identified needs of chosen consuming groups.
      Price:- Product price are fixed by company according to competitors product price.
      Place:- It performs various functions like transportation, warehousing, channel
       management etc. so the product could easily reach the consumer.
      Promotion:- The firm carries out a no. of measures like personal selling, advertising and
       sales promotion programmed with view to communicate to the consumer and promoter of
       the product.
It is the mechanism to achieve the consumptions of marketing process, striking the level of price
that is accepted to the firm as well as consumer.
                                                41
PepsiCo Cold Drinks
        42
                        7UP - Mood Ko Do Lemon Ka Lift
Brand History
  7UP, the refreshing clear drink with natural lemon and lime flavour was created in 1929. 7UP
  was launched in India in 1990 and its international mascot Fido Dido was used for advertising
  in 1992 to position the brand as a cool drink for youngsters. Fido became an instant hit with
  his trendy look, laid back attitude and refreshing take on life. During the brand’s early years
  in India, 7UP gained market leader status in the lemon lime category by being one of the first
  to be nationally distributed as well as being marketed as a healthier alternative to other soft
  drinks.
Brand Advantage
  For the past 2 years, 7UP’s ambition as a brand has been to capture and own the lemon
  refreshment territory within the clear lime category. Lemon has proven to be a clear and
  relevant differentiator for the brand. Further, it has allowed the brand to ladder up to an
  emotional payoff of uplifting refreshment.
  After establishing itself as “The Lemon Drink ", in Jan 2009, 7UP continued to build further
  on the theme of mood upliftment with its new tagline "Mood ko do Lemon ka Lift”
  7UP’s brand communication is premised on the product’s natural lemon flavor , guaranteed to
  provide uplifting lemon refreshment that raises one’s spirits.
                                               43
                    Mountain Dew -Darr Ke Aage Jeet Hai
Brand History
  The main formula of Mountain Dew was invented in Virginia, named and first marketed in
  Johnson City, Tennessee and Knoxville, Tennessee in 1948.
  In India, Mountain Dew set the soft drink category ablaze in 2003 with their iconic launch
  campaign “Cheetah Bhi Peeta Hai”.
Brand Advantage
  It is a soft drink that exhilarated like no other because of its daring, high-energy, active,
  extreme citrus taste. Challenge, a can do attitude, adventure and exhilaration is deeply
  entrenched in its brand DNA and the brand has always celebrated the bold and adventurous
  spirit of the youth.
  This exhilaration and excitement of Mountain Dew has always been reflected in the high-
  adrenaline advertising of the brand that connected it to outdoor adventure.
                                              44
                            Pepsi - Yeh Hai Youngistan Meri Jaan
Brand History
    Pepsi is a hundred year old brand loved by over 200 million people worldwide. The largest
    single selling soft drink brand in India is the ubiquitous'socialiser'at every occasion.
       Youngistaan loves it. 200 million people worldwide love it. But what has made Pepsi the
    single largest selling soft drink brand in India is actually a formula concocted a century ago in
    a far away continent.
       1886, United States of America. Caleb Bradman, the man with a plan, got on to formulate
    a blockbuster digestive drink and decided to call it Brad’s drink. It was this doctor’s potion
    that was to become Pepsi Cola in 1898, and eventually, Pepsi in 1903.
       Pepsi has always played on the front foot and since its inception has come out with
    revolutionary concepts like Diet, 2L bottles, recyclable plastic cola bottles and the enviable
    My Can.
Brand Advantage
       Pepsi has become a friend to the youth and has led many youth cultures. Youngsters over
    the generations have grown up with Pepsi and share an emotional connect with it, unlike any
    other cola brand. Be it parties, hangouts, or just another day at home, a day is never complete
    without the fizz of Pepsi!
       Pepsi, Cricket and Bollywood have been joined at the hip since the beginning. Shah Rukh
    Khan, Sachin Tendulkar, Saif Ali Khan, Amitabh Bachchan, Kareena Kapoor, Priyanka
    Chopra, Virender Sehwag, M. S. Dhoni, John Abraham, Ranbir Kapoor and Deepika
    Padukone are a few celebrities who will go any length for a chilled Pepsi.
       The Pepsi My Can is undoubtedly the most popular cola pack of all times. It is not just a
    pack but a style statement for today’s youth.
                                                    45
                      Mirinda – Weekend Aaye Tho Pagalpanti Chaye
Brand History
  Mirinda is an international soft drink brand from Spain that was launched in India in 1991.
  Mirinda has always been about a great irresistible orange taste, which is now synonymous
  with the brand. These were communicated through our great of “Mirinda Men” in 1996 or
  with the campaign of “Taste pe Atka, Mirindaaaa” in the year 2000 or “Taste Aisa Chaye
  Character Fisla Jaye” in 2003.
  Mirinda then evolved to ladder up the great taste to great fun with another spate of memorable
  campaigns of “Fun Ka Naya Mantra, Mirindaaaaa” starring Asin & Zayed Khan in 2007 &
  “Pagalpanti bhi Zaroori Hai” campaign with Asin in 2008.
  In 2009, Mirinda became synonymous with “Orange” as the core of the brand with the
  campaign of “Orange Dikha toh Mooh Bola Mirindaaaaa”.
Brand Advantage
  Now when we think Mirinda, we think orange. But this soft drink brand has launched many
  other fruit flavours from time to time; Mirinda Lemon was launched in 1998 with memorable
  campaign “Zor Ka Jhatka Dheere se Lage” starring with Amitabh Bachchan & Govinda.
  Mirinda has also launched many other flavors like Apple & Batberry, as innovative flavor
  offerings for the evolving consumer.
                                                46
In 2008, the brand decided to up the ante on the brand from a being led by physical attribute-
taste, to deliver a brand philosophy that resonates with the audience. Now, Mirinda's bold and
vibrant color, great orangey taste and sparkling bubbles encourages one to be more carefree,
spontaneous and playful.
With an endeavor to give our consumers a great tasting product to delight them continuously,
we have reformulated & improved its taste - first in 1996, then in 2002. And what’s more,
Mirinda is now made without any artificial flavor in it!!!
In 2008, Slice was relaunched with a 'winning' product formulation which made the
consumers fall in love with its taste. With refreshed pack graphics and clutter breaking
advertising, Slice has driven strong appeal within the category.
Brand Advantage
With the launch of “Aamsutra” campaign in 2008 along with a winning taste & most
appealing pack graphics, Slice created disruptive excitement in the category and celebrated
mango indulgence like no other.46
While other players have portrayed mango as a simple and innocent fruit, Slice celebrates the
indulgence and sensuality of consuming a Mango. The creative idea “Aamsutra”
communicates the art of experiencing pure mango pleasure through the taste of Slice.
                                               47
                    Aquafina - The Purest part of you
Brand History
  Aquafina was first launched in USA in the year 1994 and with its unique purification system
  and great taste; Aquafina soon became the best selling brand in the country.
  In India, Aquafina’s journey began with the Bombay launch in 1999 and it was rolled out
  nationally by the year 2000. On the strength of its brand appeal and distribution, Aquafina has
  become one of India's leading brands of bottled water in a relatively short span.
Brand Advantage
  Aquafina goes through a 5 step state-of-the-art purification process to give consumers pure
  water and perfect taste every time.
                                                48
Aquafina has been built through refreshing and edgy advertising. The ‘What a Body’
campaign has enabled the brand to drive modern, premium, and youthful brand imagery in an
otherwise undifferentiated category.
Bottled across India in 19 plants, Aquafina ensures its availability across more than half a
million outlets. To cater to varied consumer needs and occasions, it is available in various
pack sizes like 300ml, 500ml, 1 ltr, 2 ltr bottles and in bulk water jars of 25lts. 
                                               49
        ADVERTISING & SALES PROMOTION IN “L.B.P.L.”
Advertising and sales promotion activities play a vital role in entire marketing efforts. Without
these aspects a quality product can not survive in the market. Advertising and sales promotion
tools are most essential for the modern global marketing. This chapter has therefore been
devoted to the studies of advertising and sales promotional activities in Lumbini Beverage
Pvt. Ltd.
The two basic objectives for carrying out such various promotional activities by Lumbini
Beverages Pvt. Ltd. is “To generate more sales as well as to create and maintain an image of
its product” L.B.P.L. carries out its promotional activities as controlled and integrated
programmes of communication and material design present its soft drink to the perspective
customers. It also helps in communicating the need satisfying of soft drink to facilitate the sales
eventually to contribute towards the profit in long run.
The tools used by L.B.P.L. for fulfilling the various purposes of its promotional activities
are the following:-
      Food ‘N’ Fizz
      Space Club
      Payaas bujhao profit badhao
      Agreement
      GRB (Glass return bottle).
      Displaying equipments.
      Scratch card, lucky draw & prizes.
                                                50
Advertisement:- Where an identified sponsors pays media (such as TV) to transmit to target
consumer.
Personal selling:- Where sales representative employed by the firm engage in interpersonal
communication with individual consumers and prospective customers.
Sales promotion:- Where the market utilizes displays, demonstrations, premiums, contests or
similar devices.
Publicity and Public relation:- help to stimulate supportive news items about the firm and its
product that have greater credibility with public than advertisement.
Of all the methods of promotional activities that constitute the promotion mix, sales promotion is
the only one method that makes use of incentives to complete the “Push-Pull promotional
strategy” of motivating the sales force, the distributor and the consumer transacting a sale.
                           Comparative Products
         SL                         Major CSD Brands
         No.            Flavor           PCI                           CCI
          1.              Cola             Pepsi              Coca-Cola, Thums Up
          2.           Clear Lime    7Up, Mountain Dew               Sprite
          3.          Cloudy Lime      Mirinda-Lime                 Limca
          4.            Orange            Mirinda                    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 doesn’t 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.
                                           52
SL
   Product 200m 250m 300m 330m 500m 600m 1000m 1200m 2000m
No
   s       l    l    l    l    l    l    l     l     l
.
1.      Pepsi      √    -      √       -        -       √   -   -   √
2.    Pepsi diet   -    -      -       -        √       -   -   -   -
3.      Pepsi      -    -      -       -        -       √   -   -   -
        Gold
4.     Mirinda     √    -      √       -        -       √   -   -   √
5.    Mirinda      √    -      -       -        -       -   -   -   -
       Lime
6.    M. Sorbet    -    -      -       -        -       √   -   -   -
7.      7UP        √    -      √       -        -       √   -   -   √
8.    M. Dew       √    -      -       -        -       √   -   -   √
9.    Pepsi Can    -    -      -      √         -       -   -   -   -
10.   7UP Can      -    -      -      √         -       -   -   -   -
11.   Mirinda      -    -      -      √         -       -   -   -   -
        Can
12.   M. Dew       -    -      -      √         -       -   -   -   -
        Can
13.   Diet Can     -    -      -      √         -       -   -   -   -
14.     Slice      -   √       -       -        √       -   -   √   -
15.   Aquafina     -    -      -       -        -       -   √   -   -
16.   Tropicana    √    -      -       -        -       -   √   -   -
17.    Everest     -    -      √       -        -       √   -   -   -
        Lehar
                                          53
SL
       Product       200ml 250ml 300ml 330ml 500ml 600ml 1000ml 1200ml 2000ml
No.
1.       Pepsi         8      -     12      -      -      20     -     -    50
2.     Pepsi diet      -      -      -      -     20       -     -     -     -
3.    Pepsi Gold       -      -      -      -      -      25     -     -     -
4.      Mirinda        8            12      -      -      20     -     -    50
5.      Mirinda        8      -      -      -      -       -     -     -     -
         Lime
6.      Mirinda        -      -      -      -      -      25     -     -    -
        Sorbet
7.        7UP          8      -     12      -      -      20     -     -    50
8.     Mountain        8      -      -      -      -      20     -     -    50
         Dew
 9.    Pepsi Can       -      -      -     25      -      -      -     -    -
10.    7UP Can         -      -      -     25      -      -      -     -    -
11.   Mirinda Can      -      -      -     25      -      -      -     -    -
12.     M. Dew         -      -      -     25      -      -      -     -    -
          Can
13.    Pepsi diet      -      -      -     25      -      -      -     -    -
          Can
14.      Slice         -     10      -      -     22       -     -     45   -
15.    Aquafina        -      -      -      -      -       -    12      -   -
16.    Tropicana     12-18    -      -      -      -       -   60-82    -   -
17.     Everest        -      -      5      -      -      12     -      -   -
         Lehar
                                                54
                         STUDY              ON RETAILERS
     Retail Shop type
       The retailers can build a great deal of goodwill for the firm. The marketing
strength depends on the strengths of retail dealers.
       Research has conduct survey on different types of outlet like bakeries, cold drink
parlor, Booth and general stores etc.
       According to his survey, the major reasons for selling Pepsi products are:
SWOT ANALYSIS
     56
                                 SWOT ANALYSIS
 STRENGTHS:
WEAKNESSES:
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 lemon juice.
     We can change the flavor in order to meet different taste of different people.
                                                57
THREATS:
   As to the threats, all of us know that Pepsi-Cola and Coca-Cola have had 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 nowadays. Some local cold drink such as Sudha dairy and Amul dairy
    cola have taken their feet in the market.
   One of the products of their competitor in Clear lime & Cloudy Lime flavor as a very
    good market share due to its taste.
 Coca-Cola is now spending more and more to boost up the sale & market share.
                                                58
Research Methodology
                                                   59
“Marketing Research is the systematic designing, collection, analysis, and reporting of data
and finding relevant to a specific marketing situation facing the company.”
       Within the time limit, I tried my best to select the sample representative of the
whole group. During my training, I maintained different chart for different routes during my
dealer survey. I have collected data from the Distributor and Retailers of Patna.
Data Sources
Primary data collection involved distributors, retailers.
Research Approaches            :       Survey
Research Instrument            :       Interview
Sampling Plan
Research Design                    :   Exploratory
                                            Awareness
                            Radio     TV        News Paper     Friends   Other
6% 4%
12% 32%
46%
It has been found that 32% percent retailer know about the Pepsi product through the Radio, 46
% retailer know about the Pepsi product through the TV , 12% of the retailer know about the
product through the Newspaper ,6% of the retailer know about the product through the friends
and 4% retailer know about the product through the other things .
                                                 62
                                   Monthly Sales
                              Less than 5000                5000 to 10,000
                              10,000 to 15,000              Above 15,000
12%
                                32%
                                                               16%
40%
It has been found that 12% Distributor/Retailer are monthly sales (Rs)Less than 5000, 16%
Distributor / Retailer are monthly sales (Rs) 5000 to 10000 , 40 % Distributor / Retailer are
monthly sales (Rs) 10000 to 15000 and 32% Distributor / Retailer are monthly sales (Rs) above
15000.
                                                63
                           18%
                                                22%
                                                                             Pepsi Cola
                                                                             Mirinda
                                                                             Mirinda (L)
                                                                             7’Up
                   16%                                                       Slice
                                                       12%                   Mountain Dew
8%
24%
It has been found that 22% Pepsi Cola soft drinks are available in the outlet because the taste of
the soft drinks is very sweet so mostly customer prefer Pepsi Cola, 12% and 8% Mirinda and
Mirinda(L) soft drinks are available in the outlet, 24% 7’Up are available in the outlet, 16% Slice
are available in the outlet because it is a Mango flavors soft drinks.18% Mountain Dew are
available in the outlet.
64
16%
                                                                              Pepsi
                                                           46%                Coca Cola
                                                                              Others
38%
It has been found that 46% customer demand Pepsi because the product of the Pepsi brand is
very sweet and Mango flavor product Slice mostly children like, 38% customer demands Coca
Cola because the product sweet is minimum amount and mostly like sugar Patient and 16%
customer demand other Brand (Rank them).
                                                 65
4%
                         32%                          22%
                                                                      0 - 50 carets
                                                                      50 to 100 carets
                                                                      100 to 150 carets
                                                                      150 to 200 carets
42%
It has been found that 42% Retailers told that 100 -150 number of carets sold in per month
because they Retailers belongs to very crud area so customer also be use the soft drinks, 32%
retailers told that maximum 150-200 carets sold in per month, 22% retailers told that 50- 100
carets sold in per month and 4% retailers told that 0-50 number of carets sold in per month
because they retailers also belongs to ruler area.
                                               66
            Q .6.What is the position delivery of Pepsi products?
10%
                                        42%
It has been found that 30 % delivery of Pepsi products are very good , 42 % delivery of Pepsi
products are good , 18% delivery of Pepsi product are bad and 10 % delivery of Pepsi product
are worst .
67
14%
                                                        30%
                                                                           Daily
                                                                           Alternate Day
                                                                           Weekly
                        22%                                                Fortnightly
34%
It has been found that 30 % distributor visit of Pepsi executive “Daily”, 34 % distributor visit of
Pepsi executive “Alternate Day”, 22% distributor visit of Pepsi executive “Weekly” and 14%
distributor visit of Pepsi executive “Fortnightly”.
                                                   68
                                      Types of outlets
                    General Store     Restaurant   Betel Shop    Sweet Shop    Other
                                          16%
                                                          24%
                                                                14%
                                    36%
10%
Out of 100 respondents I found 36 % sale of Pepsi on sweet shops that are maximum because
every sweet shop use the Visi –cooler for the own product protection and a lot of customer want
to more cool soft drinks. 24% sale of Pepsi on the general store, 14% on the restaurants because
a lot of customer prefer take drink in restaurant because that place is very peace, 10 % on the
Betel shop and 16 % sales on the others shops respectively. Example-Medical Store, Cyber Café.
                                                 69
      Q .9.Which factors affect the sale most?
 Factors affect the sale            No. of Respondent               Percentage
 Advertisement                      16                              16%
 Scheme                             12                              12%
 Presence                           16                              16%
 Taste                              30                              30%
 Price                              14                              14%
 Others                             12                              12%
 Total                              100                             100%
                                12%
                                                 16%
                                                                           Advertisement
                                                                           Scheme
                        14%
                                                                           Presence
                                                         12%
                                                                           Taste
                                                                           Price
                                                                           Others
                                                       16%
                              30%
It has been found that there are various factors affect the sale of the Pepsi product, 30%
respondent say that Taste is most factors of the product sale because the Taste of the Pepsi
product is very highly sweet, 16 % of the respondent says that Advertisement and Presence is
also a factor of the Pepsi product, 14 % respondent say that price is also factor of the sales the
product and 12% respondent say that scheme and others factor also affect the sale of the product.
                                          70
  Q. 10.Which Company Visi-Cooler do you have?
Company Visi-Cooler
16%
                                                                               Pepsi
                                                         38%
                                                                               Coca Cola
                                                                               Both
                          22%                                                  Own
24%
It has been found that 38 % retailers told Pepsi company Visi-Cooler use for the Soft drinks
because visi-cooler also provided by the Pepsi company.24 % retailers told Coca Cola Company
Visi-cooler use for the soft drinks , 22% told that both Visi-cooler use because the shop of the
retailers is very big area ,16% retailers told me own Visi-cooler use for soft drink.
                                                71
 Q. 11.Do you know about all flavors pack (size) and respective wholesale price Pepsi soft
drinks.
                           40%                                                    Yes
                                                                                  No
60%
It has been found that 60% retailers said “Yes” know about the all flavors pack & wholesale
price of Pepsi soft drinks because retailers also sold the product in the market daily on the price
list , 40% retailers said that “No” Know about the all flavors pack & wholesale price.
                                               72
Q . 12. Have you been provided with sign board/display rack by Coke Company?
26%
                                                                                Yes
                                                                                No
74%
It has been found that 74 % retailers said that company also provide the Sign board / Display
rack by coke company because sign board also use for the protect the product in a shop.26%
retailers said that company not be provide the sign board , those retailers use own display rack
/sign board for the basically need.
                                               73
Q.13.Do you think that aggressive advertising further help you to increase the sales volume of
      Cola?
                                                                                 Yes
                          46%                                                    No
                                                           54%
It has been found that mostly 54 % distributor say “Yes” advertising help in increase the sales
volume of cola because advertisement is the base of the product introduce first time in the
market and 46 % distributor say “No” advertising help in increase the sales volume of cola.
   74
Findings
                              FINDINGS OF THE STUDY
   Out of the 100 respondent ,It has been found that 32% percent retailer know about the
    Pepsi product through the TV, 46 % retailer know about the Pepsi product through the
    Radio , 12% of the retailer know about the product through the Newspaper ,6% of the
    retailer know about the product through the friends and 4% retailer know about the
    product through the other things .
   It has been found that there are various factors affect the sale of the Pepsi product, 30%
    respondent say that taste is most factors of the product sale because the Taste of the Pepsi
    product is very highly sweet, 16 % of the respondent says that Advertisement and
    Presence is also a factor of the Pepsi product, 14 % respondent say that price is also
    factor of the sales the product and 12% respondent say that scheme and others factor also
    affect the sale of the product.
   It has been found that 30 % distributor visit of Pepsi executive “Daily”, 34 % distributor
    visit of Pepsi executive “Alternate Day”, 22% distributor visit of Pepsi executive
    “Weekly” and 14% distributor visit of Pepsi executive “Fortnightly”.
   Out of 100 respondents I found 36 % sale of Pepsi on sweet shops that are maximum,
    24% sale of Pepsi on the general store, 14% on the restaurants , 10 % on the Betel shop
    and 16 % sales on the others shops respectively. Example-Medical Store, Cyber Café.
   It has been found that 12% Distributor/Retailer are monthly sales (Rs)Less than 5000,
    16% Distributor / Retailer are monthly sales (Rs) 5000 to 10000 , 40 % Distributor /
    Retailer are monthly sales (Rs)      10000 to 15000 and 32% Distributor / Retailer are
    monthly sales (Rs) above 15000.
   It has been found that 22% Pepsi Cola soft drinks are available in the outlet , 12% and
    8% Mirinda and Mirinda(L) soft drinks are available in the outlet, 24% 7’Up are
    available in the outlet, 16% Slice are available in the outlet because it is a Mango flavors
    soft drinks.18% Mountain Dew are available in the outlet.
                                            75
   It has been found that 38 % retailers told Pepsi company Visi-Cooler use for the Soft
    drinks ,24 % retailers told Coca Cola Company Visi-cooler use for the soft drinks , 22%
    told that both Visi-cooler ,16% retailers told me own Visi-cooler use for soft drink.
   It has been found that 60% retailers said “Yes” know about the all flavors pack &
    wholesale price of Pepsi soft drinks because retailers also sold the product in the market
    daily on the price list , 40% retailers said that “No” Know about the all flavors pack &
    wholesale price.
   It has been found that 74 % retailers said that company also provide the Sign board /
    Display rack by coke company because sign board also use for the protect the product in
    a shop.26% retailers said that company not be provide the sign board , those retailers use
    own display rack /sign board for the basically need.
   It has been found that mostly 54 % distributor say “Yes” advertising help in increase the
    sales volume of cola because advertisement is the base of the product introduce first time
    in the market and 46 % distributor say “No” advertising help in increase the sales
    volume of cola.
                                            76
Suggestions & Recommendations
                        Suggestions & Recommendations
               Lumbini Beverages Pvt. Ltd. should introduce some change in its marketing
function and advertising to market more rational. The following factors to be worthy of
consideration:-
   5. There is no electricity problem in the whole area of Patna. For chilled soft drink, ice
       box which is compulsory and dredge both should be provided by the
       company.
                                             77
6. The numbers of outlets are too much. So it is required to short the route and extra
     vehicles/tricycles provide in this route.
8.    The vendors can also be provided with uniform by the company in order to give
      them visibility.
10. In winters, as the sales from these tricycles may be very low because of seasonal
      factors   Beverages Pvt. Ltd. should think of introducing such packs Beaver its
      various brands of beverages .
11. It is vital take for “Lumbini Beverages Pvt. Ltd. that maintain the performance of
      Pepsi in future therefore performance of soft drink was very good in this year in
      comparison of coke.
12. Now a day with the introduction of tetra packs such as fruity, Tree Top etc. So
      Lumbini Beverages Pvt. Ltd. should think of introducing such packs of its
      various brands of beverages.
13. Lumbini beverages Pvt. Ltd. should be provided it’s the rural area also.
                                               78
                                         LIMITATION S
Conclusion
                                           Conclusion
            In the earlier chapters of this report on various aspects of soft drinks industry with
     particular reference to establishment of ‘’Lumbini Beverages Pvt. Ltd.’’ Its
     organizational structure and channel of Distribution Lumbini Beverage Pvt. Ltd. etc have
     been studied Present chapter is an attempt to summaries the whole report and present a
     view suggestion.
            From the data analysis and survey conducted by me, I arrived at the following
     conclusions:-
(1) Pepsi has the entire flavor i.e. Cola, Leman, Orange, Mango in the market and its market
     share is comparatively more than Coke.
(2) The majority of the retailers deal in all brands of Pepsi and Coca-Cola.
(3) One of the major drawbacks of Pepsi products is that all the flavors do not reach at each
     and every retail outlets but competitors products do reach that is why competitor enters
     in to Pepsi exclusive outlets .
(4) The major problem faced by the distributor is the shortage of supply particularly pets.
(5) Distributor      functions   just as   order   takes;   they        should    contribute   me   and
     communicate to the retailers.
(6) It should be checked that whether our products is reaching to the outlets timely and
     regularly or not.
(7) Although the Visi-cooler, Sign board/Display rack and Glass strength provided by
     Pepsi are more than Coke but still there are number of retailers, who are either not
     having these or others have provided them .
(8) There is irregular in the supply of Visi-cooler, some retailers, which sell more are not
     provided Visi-cooler which some retailers, which sell less, are provided visi- cooler.
(9) Some     of   the    Visi-cooler   provided    by   Pepsi      is    not     functioning   properly,
     complaints regularly, are entertained after a long time.
                                              80
(10) Most of the retailers are in need of board but not provided by the Pepsi
     Company.
(11) Most of the retailer’s especially small retailers have complained that the sales man
    doesn’t inform about any sales promotional scheme.
(12) The big retailers of Pepsi do not maintain the purity in the Visi-cooler and dictate
     their own terms and conditions.
     81
Bibliography
                                 Bibliography
BOOKS
MAGAZINES
SEARCH ENGINE
www.google.com
WEBSITE
               www.pepsico.com
   82
Annexure
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