INTRODUCTION

India with a population of more the 100crore is potentially one of the largest consumer in
the 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 noncarbonated. The carbonated drinks can be further
classified into Cola, Lemon, orange, Mango & Apple segments etc.

This project is basically a survey conducted indifferent parts of Patna central in this
survey I went to all the outlets in the area of Patna central that were currently selling soft
drinks of our brand Pepsi and our competitors brand Coca cola. We also went to the
shops that were currently not selling soft drinks but could sell in the near future.

The main aim of this survey is to analyze all the activities like sales promotion,
distribution channel, advertising etc in that area. In this survey I analyzed the distribution
gap of company and also analyzed the competitor’s distribution channels. By analyzing
the data which was collected through stringent effort I come to know, in which area Pepsi
was having strong domination and in which area company need to give more stress on its
distribution channel. This survey also gives focus on potential area where company could
get a good business. A comparative distribution analysis is done based on type of vehicle
and frequency of vehicle, i.e. in a particular area which type of vehicle is going for Pepsi
and Cock and how many times in a week the vehicle is going in that particular area.
The analysis of market is based on the presence of warm stock and in the outlet. A
category wise analysis i.e. cola, cloudy, clear, orange, soda, water, juice is also done in
the survey.
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 result the trading activating

1
activities of the soft drinks industry are concentrated in and around big cities and town
where the purchasing power of population is considered comparatively high.

Soft drinks industries in India has annual sale of about 5000crores, with per capita
consumption of soft drinks at a low of eight bottles per annual 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 survey, I visited many shops and did an analysis based on the data collected with
the help of a questionnaire and also do sales work in Ara. In this report, I have done a
quantitative as well as qualitative analysis. Finally for every area, I suggested an ideal
coverage plan and recommendations in the area.

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 OBJECTIVES

The following were the main objectives of the project:

Primary Objective
1. To Compare Promotional technique used by Pepsi and Coca-cola.

2. To find out major strength and weakness Of Promotional Techniques of Pepsi.

Secondary Objective
1. To get acknowledge about which company provides better facility.

2. To know which type of signage provided by the Company.

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 COMPANY PROFILE
HISTORY OF PEPSI

Pepsi-Cola Company founded by CALEB D. BRADHAM in 1890 at North Carolina in

USA. Its CEO is ROGER ENRICO and in India Pepsi Co holding its chairman MR.

RAJIV BAKSHI. The headquarters of Pepsi-Co. in India is at Gurgaon. Presently it is

operated in 196 countries.

Pharmacist CALEB invented it to cure the disease '"DISPARSIA". It is from this word
that was related to Pepsi. Soon it entered the American market as soft drink which at that
time was mostly dominated by Coca-Cola, but soon Pepsi was able to dominate the Cola
market and thereafter it has been no looking back. Pepsi and Coca-Cola are engaged in
ferocious cold war that has taken the whole world by storm.

Pepsi stands 51 st positions among the fortunate 500 companies of the world. Its total
capital is approx $3000crore and total sales annually is worth $37crore, half of which
comes from beverages and other half from the Sack foods division. The beverages arm of
the Pepsi co. is Pepsi-Cola Company and the snack-food company is called Frinto-Lay-
Tnc. The year 1998 is the centennial year of Pepsi. Its total profit in the year 1996-1997
was worth Rs. 45crore approx. The total number of employees engaged in this business is
4.25lakhs globally.

PEPSI-THE INDIAN EXPERIENCE

Previously there were many ad tags "YehiHai Right Choice Baby" &"Nothing
Official about it", which immediately ring a bell-it’s to be a Pepsi. But today this ad.
Tag has been changed and now it's "YehHaiYongistaan mere jaan". Pepsi in a short
span of its operations in India has found a place in hearts and minds of the Indian
consumers. The success has pnmarily been due to the innovate and passionate Indian
team which has been built over the years. Pepsi is a trendsetter managed and run by

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Indians, where important decisions are taken locally. Pepsi started its operation in India
in 1988 in Kanpur and since Pepsi Co. has set up a fully integrated operation India viz.
Manufacturing, Research and Development, Marketing distribution and franchising
Covering fruit Vegetable processing, export, snack foods and beverages. In 1993 Pepsi
Co. set up a HOLPED company to further accelerate growth through new initiatives and
joint ventures. Pepsi Co. is fully committed to India and the national objective of
development of technology and accelerating exports and employment. It has invested
500crore in India to develop the local market Pepsi has distributed exclusive franchises in
India to bottle its total product. There are 34 bottling plants of Pepsi in India. Pepsi
directly controls some and rests are under various franchises.

BEVERAGE INDUSTRY

In India, beverages form an important part of the lives of people. It is an industry, in

which the players constantly innovate, in order to come up with better products to gain
more consumers and satisfy the existing consumers.

BEVERAGES

Alcoholic Non-Alcoholic

Carbonated Non-Carbonated

Cola Non-Cola Non-Cola

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BEVERAGE INDUSTRY IN INDIA

Beverage industry is one of the fast growing industries in India. It can be divided into two
sections i.e Alcoholic and Non-Alcoholic. The Non-Alcoholic drinks can be further
classified into Carbonated and Non-carbonated. Again Carbonated is divided in two
category Cola and Non-cola (according to flavor). Non-carbonated contains non-cola
flavor.
If the behavioral patterns of consumers in India are closely noticed, it could be observed
that consumers perceive beverages in two different ways i.e. beverages are a luxury and
that beverages have to be consumed occasionally. These two perceptions are the biggest
challenges faced by the beverage industry. In order to leverage the beverage industry, it
is important to address this issue so as to encourage regular consumption as well as and to
make the industry more affordable.
Four strong strategic elements to increase consumption of the products of the beverage
industry in India are:

 The quality and the consistency of beverages needs to be enhanced so that

consumers are satisfied and they enjoy consuming beverages.

 Consumer education is a must to bring out benefits of beverage consumption

whether in terms of health, taste, relaxation, stimulation, refreshment, well-being
or prestige relevant to the category.
 Communication should be relevant and trendy so that consumers are able to find
an appeal to go out, purchase and consume.

The beverage market has still to achieve greater penetration and also a wider spread of
distribution. It is important to look at the entire beverage market, as a big opportunity, for
brand and sales growth in turn to add up to the overall growth of the food and beverage
industry in the economy.

SOFT DRINKS INDUSTRIES IN INDIA

A soft drinks is a non-alcoholic beverage. It is artificially flavored and contains no

fruit juice or pulp. India with population of more than 100crore is one of the largest
consumer markets in the world after China. Soft drinks is is a typical consumer product
purchased by individuals to quench thirst and secondly for refreshment.

Searching for the point of origin of Indian soft drinks I first document on Gold
Spot, which was the first brand soft drinks in India. It was introduced by PARLE during
later part of 40’s Cola giant, Coca-Cola was the first foreign soft drink to be introduced in

6
India in 1965, Coca Cola made a very good beginning and dominated the whole scheme
right from the world go. It (Coca-Cola) faced no competition at that time.

This extraordinary success of soft drinks can be attributed to the following factors:

2 Absence of contemporary competitive brand.

3 Euphoric image build up in the Western countries proceeded the entry into India
Market, and

4 Indians are very found by nature of foreign goods, services etc. due to prolonged
foreign rules.

PARLE EXPORTS PVT.LTD.Later in 1970 introduced Limca, Lemony Soft

drinks. Before Limca introduced they had tentatively introduced Cola, Pepino, which
they had to withdraw in the face of battering confrontation with Coca-Cola soon.

Three of four groups of Indian companies, which had the required production capacity
started their own brands of Cola. Lemon, Orange, but failed to achieve their goal on a
national basis.

India always has love and hate relationship with MNC’s which gave a significant
opportunities to soft drink industries in India when Coca-Cola decided to windup its
operations in 1977 rather than bowing to the Indian government insisting on:-

1. Dilution of equity, as the government felt that lots of foreign currency was being
wasted.

2. Manufacturing of the top-secret concentrate in India.

3. Disclose of the chemical composition of the essence.

This left a large vacuum in the popular soft drink market, and a vista was opened
to any company with the requisite, technical, marketing and organizational skills.

The existence of Coca-Cola from India in 1977 accelerated the growth of several
Indian soft drinks. New soft drink in the form of Tetra pack enters the market among
Frooti, Jump-In, and Tree-top Ire the prominent once. Till 1977 their equipped bottling
plants and the distribution network a longing to be of no use. It took them one year to

7
develop new formula to survive and gradually came up with Campa. Lemon, Orange and
Cola that order.

However Parle, the pioneer in the soft drinks, blazed its way to national
prominence with their product “Thumps-Up”, bearing the slogan “Happy Days Are
Here Again”. This particular slogan helped to win over the loyalists or addicts to Coca-
Cola. Soon the Indian Soft drinks industries started at a phenomenal rate, and all Parle
products Gold-Spot, Limca and Thumps-Up became the brand leader in their own
segment.

In spite of all these the drinks market still has large gap, as claim by soft drink
manufacturers. To fill these gaps there are many soft drinks concentrate and squashes
flooded the market. The Indian soft market basically offered three flavors i.e. Orange,
Lemon, and Cola.

1988 saw the coming of the multinational company PEPSI entering the Indian market. 11
years after the existence of Coca-Cola. It had name, fame and edge of being one of the
best in the game and it also offered stiff competition to Parle and Coke. Now Pepsi is
going all out to prove that they are the best.

THE INDIAN BEVERAGE MARKET

India's one billion people, growing middle class, and low per capita consumption
of soft drinks made it a highly contested prize in the global CSD market in the early
twenty-first century. Ten percent of the country's population lived in urban areas or large
cities and drank ten bottles of soda per year while the vast remainder lived in rural areas,
villages, and small towns where annual per capita consumption was less than four bottles.
Coke and Pepsi dominated the market and together had a consolidated market share
above 95%. While soft drinks were once considered products only for the affluent, by
2003 91 % of sales were made to the lower, middle and upper middle classes. Soft drink
sales in India grew 76% between 1998 and 2002, from 5,670 million bottles to over

8
10,000 million and were expected to grow at least 10% per year through 2012.28 In spite
of this growth, annual per capita consumption was only 6 bottles versus 17 in Pakistan,
73 in Thailand, 173 in the Philippines and 800 in the United States With its large
population and low consumption, the rural market represented a significant opportunity
for penetration and a critical battleground for market dominance. In 2001,Coca-Cola
recognized that to compete with traditional refreshments including lemon water, green
coconut water, fruit juices, tea, and lassi, competitive pricing was essential. In response
Coke launched a smaller bottle priced at almost 50% of the traditional package.

PRODUCT PROFILE

Some special product of Pepsi in Indian scenario:

(i)BEVERAGES :

Pepsi has set up a concentrate plant in 1989 at Channo, District Sangrur, Punjab,
With an investment of 55 million the state of the art Plant houses a world - class
laboratory where soft drinks from all over the world are tested. This concentrate plant
supplies Pepsi. 7-Up Teem, Mirinda, Orange, Apple &Lemon flavors to all the PepsI
bottling plant in South Asia.

Pepsi has 34 Botting plant in India, out of which 8 are company owned and 26 are
ovmedby Indian franchisee, Pepsi Co. has invested heavily on up graduation of these
bottling plants and has put 5 green field project in backward areas such as Jaipur and
Bazapur in V.P. Bharuch in Gujarat, Sonapur in West Bengal and Naclamangala in
Karanataka. New ProJect is coming up in Maharashtra and Tamilnadu.

In addition to; the Companies Own Bottling Operation (COMBO). Pepsi has
26 Franchisee owned Bottling units in India. These franchisee manufacturers are
also planning to install substantial additional capacities. In last two years PepsiCo.'s
franchisees have put new bottling plant at jaipur, Bhopal, Hajipur (Bihar). Guntur (AP.)
and Guwahati (Assam) with further investments. Pepsi CO.'s franchisee are amongst the

9
best in the Pepsi world.

(ii)JUICES :Pepsi Co. Plans to launch juices in a bog way in India, there by helping the
fanners in fruit procurement. Pepsi Co.

Agriculture scientists have undertaken research on Mango, Guava and Oranges and these
fruits would be the priority area for the juice launch in India.

presently Pepsi has one juice brand. The name of the juice is Tropicana orange and
Tropicana Apple. No preservatives has been added in this two flavors.

(iii) EMPLOYMENT OPPORTUNITIES :

Pepsi provides direct and indirect employment to persons in supplying it's raw materials,
packing materials, distribution vehicles, glass bottles. plastic crates, display racks etc.
And to small artisans, paintings and small traders in market places activities.

All the Pepsi's business in India is either in Industries with backward linkages with
farmers or in service industries, being highly distribution oriented. He Pepsi system
operates over 300 trucks (direct operations). 8000 three-wheeler (distributors) and at least
1000 push carts, serving over half a million outlets in India. By the year 2005 the number
of outlets to be served are expected to be doubled.

(iv) DEVELOPING SPORTS :

PEPSI today is one of the main sponsors related activities in India has continued to
promote upcoming new players of Cricket, Hockey and Football In Mohali, Disclose of
the chemical composition of the essence.

Pepsi has developed a PepsiCricketAcademy, which would develop over 500 Young
Cricket enthusiasts in next five years. Similarly Pepsi cricket coaching camps and clinics
are held to coach young boys in North and South.

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(v)COMMUNITY RELATIONS :-Most of the bottling plats of Pepsi are located in
backwards areas, thereby giving huge employment opportunities in these areas. Pepsi as a
responsible company undertakes social projects in and around the bottling plants. These
include supports to the education centers. Sponsors inoculation camps, providing free
health checkup, initiating sanitation, drives, promoting literacy drives and helping
villages to put up bus shelter etc.

(vi)REVENUE GENERATION :

It is estimated that Pepsi-Co and its franchises generates over Rs. 500crore (in 1977)to
the exchequer by the collection of excise duty and sales tax.

CHARACTERSISTICS OF SOFT DRINKS

1. Unfinished goods (Required chilling before consumption).

2. Two -way transportation ( Once filled bottles to market and
3. Second empty bottles from market).
4. Heavy expenses on advertisement and promotions.
5. More attention to retailers. Several schemes and other facilities provided to them.
6. Next flavors are introduced time to time.
7. Highly competitive market with only two equally strong Players.

A BRIEF HISTORY OF L.B.P.L

Lumbini Beverage Pvt. Ltd. Is situated at Industrial Area, Hajipur in Vaishali district
of Bihar. Mr. CharanKhilani, who is a resident of Kolkata, established it in the year
1997. It is one of the Pepsi Foods bottling Plants in Bihar. “Ananda Marketing Pvt.
Ltd.”, was a marketing division of “Lumbini Beverage Pvt. Ltd.” But, now” L.B.P.L.
does its marketing itself.

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 PROFILE OF LUMBINI BEVERAGE PVT.LTD.

CompanyLand Area : 12 Acres

Location and Authority : EPIP, Industrial Area,

Hajipur

Name of Director/Occupier : Mr.CharanKhilani

Name of the M.D. : Mr. Ravi Khilani

Name of CEO : Mr. G.P. Singh

Name of F.M. : MrDhawan

Name of H.R. manager : Mr. N.K. Prasad

Industrial License No. : Regn. No.- H 12475(C)

Factory License No. 66750/VLI

Date- 16.08.97

F.P.O. License No. 10607/97

Capacity : 1500 bottles per minute

Nature of products : Soft drinks, Pepsi, Mirinda, 7up, Soda,

Slice, Aquafina.

No of employees : 200+150(max) Seasonal labors

Control Board : No. 1877. Date- 07.04.97

BOARD OF DIRECTORS :

1. Mr. Charan Khilani (Director)

2. Mr. Ravi Khilani (Managing Director)
3. Mr. Manoj Khilani (Plant Director)
4. Mr. G.P. Singh (C.E.O.)
5. Mr. Arun Kumar Singh (TDM, Patna)

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 ORGANISATIONAL STRUCTURE

BOARD OF DIRECTOR

MANAGING DIRECTOR

DIRECTOR

CEO

HR MANAGER FINANCE MANAGER H.O.S. PLANT MANAGER

(HEAD OF SALES)

HR EXECUTIVE A/C ASSISTANT SHIFT MANAGER

A/C CLERK WORK OPERATOR

Q.C

T.D.M. M.E.M. M.D.M.

( Territory Development Manager) (Marketing Equipment Manager)(Marketing Development Manager )

B.D.M. M.E. M.D.C.

(Business Development Manager)

A.D.C. SENIOR TECHNICIAN MARCHANDISER

(Area Development Co-ordinator)

C.E.
(Costumer Executive )

P.S.R.
(Pre Sales Representative )

R.A.
(Route Agent)

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 SWOT ANALYSIS

STRENTHS :

1. Lumbini Beverage Pvt. Ltd. Is Franchise Owned Bottling Organization (FOBO)

of world’s most famous soft drinks Pepsi Co.
2. LBPL uses state of the art and fully automatic machines and technology for the
production and of soft drinks.
3. It has very strong network and built market and currently holds all the parts of the
state.
4. It has wide range of product varieties.

WEAKNESSES :

1. No cost cutting program for the products.

2. Promotional activities in the rural market is not up to the mark as compared to the
Urban market.
3. Brand Pepsi in cola flavor is one of the popular lagging behind with its nearest
competitor, only due to high sugar content and less thrilling taste.
4. Not viability of the products on demand.

OPPORTUNITIES :

1. LBPL makes the buying process more convenient of efficient (It provides the
Pepsi products at required places i.e. direct to distributors and to retailers through
distributors.)
2. The executives of company meet the need for more information and advice to
distributors/retailers/customers.
3. It takes return the leakage, burst bottles etc.

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THREATES :

One of the products of their competitor in 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.

PRODUCTS

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 PRODUCT SEGMENTATION

Pepsi segmented its products into 7 groups they are as follows

Cola , Cloudy, Clear , Soda , Orange, Juice, Water

The products of pepsi vis-à-vis its competitor’s products according to the segments was
given in the following table.

Segment Pepsi Products

Cola Pepsi
Cloudy Mirinda Lemon
7up
Clear
Mountain Dew
Orange Mirinda
Soda Lehar Soda
Twister
Juice Slice
Tropicana
Water Aquafina

2.12 PRICE LIST

GLASS(ML)/CAR PET(ML)/BOX CAN(ML) TET PRICE/

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 RA
B
/BOX 200
PRODUCTS ML
200 250 300 350 500 600 1000 1200 2000 250 330
8
PEPSI 168 - 214 - - 454 - - 459 330 -
(200ml)
8
MIRINDA 168 - 214 - - 454 - - 459 330 -
(200ml)
10
7UP 168 - 214 - - 454 - - 459 330 -
(300ml)

MOUNTAIN 8
168 - - - 454 - - 459 -
DEW (200ml)

12
SLICE - 214 - - 498 - - 532 - - -
(200ml)
P.SLICE 258 - - - - - - - - - - -

TWISTER - - - 468 - - - - - - -
15
AQUAFINA 100 - - - - 144 - - - -
(1000ml)
TROPICANA 391 - - - - - - - - - - 409

SODA - - 108 - - 264 - - - - - -

* Above figure are the prices of products in Rs.

PRODUCTION PROCESS

The process of manufacturing of aerated water (soft drink) like Pepsi brand product is
divided into five main parts such as :-

1. WATER TREATMENT.
2. SYRUP MAKING.
3. BOTTLE WASHING.
4. FILLING.
5. TESTINGOF PRODUCT.

1. WATER TREATMENT

Water treatment is very essential in soft drinks plant as the nature and quality of
varies from place. toset uniform and standard water, the process of treatment is carried
on. the water taken out form Bore well having depth of 500m by the help of motor pump
& pipe lines. Are connected to the storage tank where is pre-chlorinated by chlorinator &
then by the help of pipeline comes to a treatment tank called “coagulation tank” where to
this water , solution of different strength of bleaching powder, ferrous soleplate, hydrated
lime are added through dosing pump to reduce the alkalinity hardness, kills the bacteria

17
and the ph become 7.5.mechanical stripper mixes the chemical & then suspended matter
settles down as sludge & clear water passes to retention tank. from this tank the water
passes through sand filter containing fine sand and pebbles & carbon filter containing
granular carbon & finally through the water polisher, micron filter, up lamp to ensure
clear & sanitary water for use. Further water is used in bottle washer& boiler needs
softening . For this purpose , the water from storage tank after passing through two water
filter beds containing fine sand and granular carbon respectively comes through a bed of
resin where it is softened. Thigh softened water is essential to use in the boiler & bottle.
To the scale formation warder has to reduce inside machines.

2. SYRUP MAKING

For the syrup making of particular brand, calculated quality of sugar, water, activated
carbon (power) & by flow super cell known as filter aid are taken into a sugar space to
enter stream & also filter by motor with agitated sugar syrup called raw syrup is prepared
by dissolving the sugar with continues stirring and heating by steam supplied by oil fried
boiler. This hot syrup by the help of pump is filtered through a filter press attached with
the series of quality filter paper to separate out carbon partials.

Clear hot syrup by the help of ss pipeline passes through water P.H.E. for cooling then
another P.H.E. circulated by glycol for further cooling. The chilled syrup comes to the
mixing tank, which is cleaned and sanitized prior to use. After circulation of sugar
quantity by bricks hygrometer, concentrate are added and mixed thoroughly by the
mechanical stirrer filter to the tank. This syrup is known as finished syrup ready to drink
the concentration manly. The liquid part are also kept in a cold store , the temperature of
the finished syrup is fixed in the room temperature is also maintained by air conditioner.
All the containers used in the syrup making are cleaned and sanitized by sodium bi-
carbonate, strong chlorine and hot caustic soda solution.

3. BOTTLEWASHING.

Bottle washing is an important part in the soft drink plant. The empty durable and
restorable bottle used are returned form market in plastic crates, and fed to bottle washing

18
machine (washer).the machine has double end system with circular chain to carry the
bottle. Caustic soda, tri sodium –phosphate, sodium glaciate is added to the caustic tank
filled in with water heated by strum supplied by bathe bailer. The empty bottle enter to
the caustic solution and finally washed with water through spray-jets filter dared
discharged in other end. The washed bottles after proper inspection are directed to filing
machine through conveyor. Cleaning and smooth running of chain carrying bottle, SU-
260 and SU-773 are used for bottle cleaning, shinning and mold removing concentration.

4. FILLING

Finished syrup and treated water lime and concentrated to a dosing pump, which mixes
syrup and water in the ratio of 1:5 and syrup mixed with water enters to carbonate tank to
mix with carbon dioxide gas, which are preserved in cylinders for use. The Cylinder is
connected through carbon dioxide pressure and temperature of lilied; we use receding
control (Taylor). The syrup passed through P.H.E that is cooled itself the circulation of
chilled glycol supplied by chilling compressor. To run the machine for chilling F-22 gas
is used. The syrup being chilled easily mixes with carbon dioxide and enters to filter for
billing. The filter is fitted with filing valves and lift cylinders. The lift cylinders function
pressure of air supplied by an air compressor. The syrup known as beverages in this stage
is filled in the cleaned bottle, which are durable in the nature and returnable by the buyer.
A counter pressure of carbon dioxide gas filled to the filing machine. After beverages is
filled in the bottle goes to the crowner where with help of crown corks the bottle are
sealed (crowned) to project the carbonation, flavor outside contamination and spoilage.
The refinished product are coded decoding machine and inspected properly by inspection
light while passing through the conveyor fitted with ss chains. the empty plastic rated
passing through a conveyor enter to crates, which are durable in nature and returnable by
buyer, put on plates and sent shipping for shipment. The entire containers in contact with
syrup are properly cleaned and sanitized soda-bio-crab, hot water, hot caustic soda
solution and strong chlorine base.

5. TESTING OF PRODUCT

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Finally the finished syrup during bottling is tested in laboratory to meet the parameters
and also get the standard and quality product. to maintain the standard and informality in
products, the sugar contents and carbonation in the filled bottle are checked in regular
intervals by brink hydrometers refract meter and pressured gauge. A digital pH meter
tested the pH. Electronic digital balance is used to the weight chemical to conduct test in
lab. The purity of carbon dioxide is checked by carbon dioxide purity tester. The
microbiology test of the products 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 test, hot sterilizer incubator autoclave, pads filter membranes are
product used. The diesel generator is operated in case of electricity failure for smooth
operation of the plant and for drawn electricity from the state electricity board the
transformer is used.

RAW MATERIAL INPUTS:-

A soft drink butting plant the following things as a raw materials:-

2 Sugar
3 Flavor
4 Water
5 Carbon dioxide
6 Crown cork
7 Glass bottle
8 Plastic crate.

Sugar

High purity crystal sugar is required the sugar syrup for soft drink. the main supplier of
lumbini beverages Pvt. Ltd. is M/s KCP Ltd. Chennai. The requirement of sugar is
around 800 gm par carat for all flavors.

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Flavor

Pepsi food ltd. is supplying all essence of flavor for lumbini beverages Pvt. Ltd. from
their plant Chennai, Bhawnagar (Punjab).

Water

The required water of lumbini beverages Pvt. Ltd. is being met from the high yielding
deep boring well with pumps. Adding softening plant & DM plant so as to meet the
required quality of water then treats the raw taken out from these well. Water quality is
being strictly adhered through regular sampling & analysis.

Carbon dioxide

Carbon dioxide gas of required purity is being carried on from Hindustan Gas India Ltd.
and also from IOC Patna and Barauni, as per requirement of flavor. The usual
consumption of carbon dioxide is 1 kg per 10 carats in case of Pepsi, 1 kg per 5 carats of
soda water and rest flavor 1 kg per 114 carats.

Crown cork

Lumbini Beverages Pvt. Ltd. Takes crown cork from amnesic crown ltd. Bhopal and
Ghaziabad respectively.

Glass bottle

Lumbini Beverages Pvt. Ltd. Takes flint and green glass bottle from Hindustan national
glass ltd. Tapovan (Hrishikesh).

Plastic carats

Lumbini beverages Pvt. Ltd. Takes plastic carats from neelkamal plastic ltd.
Nasik& supreme industry’s Ltd. Nasik.

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 THEREOTICAL BACKGROUND

PROMOTIONAL ACTIVITIES

Promotional activities play a greater and important role in the marketing effort carried
Out by PEPSICO. It is for more create and maintain a image of its products.

PROMOTIONAL ACTIVITIES CARRIED OUT BY ‘LUMBINI BEVERAGE

PVT. LTD.

LBPL carry out its promotional activities as a controlled and integrated program of
Communication and material design to present its soft drink to the prospective customer.

The tools used by Lumbini Beverage Pvt. Ltd., for fulfilling the various purposes of
its

22
Promotional activities are the following:-

(I) Point of Purchase:

A sensible man does not have to go for too find out whatever a common panwala knows
that People buy with their eyes. Every item of sale in a shop is displayed in front where
people Can see it at the first sight. It is the same with all the shops ad vendors in towns
either selling Consumer goods or selling soft drinks. Rather in selling all product like
PEPSI display is more help it is an essential element because soft drink is bought a
impulse on the spur of the movement. Thus the product is tested when it is brought at
people’s attention.

(ii) Special event market:

The dealer at special event sport places the banners and stall of Pepsi’s products. Like
picnic, Cricket match, social activities are also used to cater the people. It help in
promoting the sale As well as in creating an image of products.

(iii) Media planning:

A very important part of advertising is to decide the medium of advertising and how
much to spend in each media:

1. Newspaper
2. Radio
3. TV
4. Hoarding

Product of sales materials (paintings, glow signs, D. Borard)

Advertising is one of the important factors which all put together results sales. It has
to be backed by the distribution network, effective servicing, dealer, goodwill and so
on. Thus advertising has to be very carefully woven with the entire demands of
marketing.

PROMOTIONAL ACTIVITIES CARRIED IN ARA:

1. Point of purchase (POP)

23
 2. Special events (fair show, Road show etc.)
3. Hoarding
4. By Newspaper, TV. Radio etc.
MERCHANDISING POLICY

In today’s fast moving industry and highly competitive market, only those
products are likely to be purchased which are capable of hitting the impulse of the
consumers. The products appeal should be able to penetrate and get embedded into
the perpetual space of the consumer’s mind. The concerned products should induce to
the consumers. Pepsi believes that “Jo Dikhta Hai Wahi Bikta Hai” i.e. any product
which is visible is bound to be sold.

METHODS OF MERCHANDISING:

1. Visi cooler placement

2. Glow signboard

3. Paintings

4. Crate Stacking

5. Umbrella

6. Banners

7. Display

ADVERTISING STRATEGY OF THE COMPANY

The main motive behind the purpose of advertising of the PEPSI co. is to maintain the
brand loyalty though recalling the memory of the users of soft drinks as to attract the
potential consumers who consume a soft drink. On the national basis the media

24
 extensively used are: Newspaper, short advertising films, Radio, T.V.

Besides the advertising being carried out by Pepsi Co. Lumbini Beverage Pvt. Ltd.,
Hajipur also carries out its own promotional program of which advertisement is an
important aspect. The Lumbini Beverage Pvt. Ltd. is free to use any media, messages,
copy etc. as when required by them but single factor which remain the same as used for
each Pepsi Co’s bottling company on national level. Now the main slogan being used by
PEPSI Co. all over India for its Cola Products has been “Yehhaiyoungistanmerijaan”.
The main Model in the advertising is the Cricketer- M.S. Dhoni, Actor- Amitabh
Bachcan, SharukhKha, RambirKapoor Actress- KareenaKapoor, PreetiZinta,
DeepikaPadukone etc.

MARKET SEGMENTATION

The soft drink being a FMCG product has a wider and scattered market. Thus to enable
concentrated effort of marketing activities in different scattered market, the entire
market is broken down into the following segments.

1. Route Market
2. Home Market
3. At work market

ROUTE MARKET

Outlet in this market caters to those people who are engaged in shopping, eating,
outgoing to and from work, in amusement enters etc.

HOME MARKET

Outlets in this market cater to people buying prominently for home consumption Either

25
by case or loose bottles.

AT WORK MARKET :

Outlet in this market caters to people working in officers. Factories etc. An attempt
is always Made to make soft drinks readily and conveniently available all day long while
people are Actively working.

Retailer Sales promotion

To promote the sale of the various products of Pespi Co Lumbini Beverages Pvt. Ltd.
Provides various offers to boost the sales and motivate them to sale the Pepsi Co
products. There are Various schemes are:

Free Schemes:

26
Glass Scheme I

Free 1 bottle up to 2 purchases on 200 ml.

Free 2 bottles up to 10 case purchase on 200 ml.

Free 3 bottles 11 case or more.

Glass Scheme II

Free one 300ml RBG and a scratch card on purchase of Pepsi Mirinda on 200ml case.

PET Scheme

Free 1 bottle up to 2 case purchases on 600ml.

Free 2 bottles up to 10 case purchase on 600ml.

Free 3 bottles 11 case or more.

Discount Scheme

Discount of Rs.25 on purchase of tetra pack of Tropicana case.

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 is not idea. It is 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 Indian
with a unique marketing policy. Pepsi took into consideration of youth segment target

27
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, also organized many national and international
sports events to attract the young generation.

MARKET MIX OF L.B.P.L

The set of controllable tactical tools:

A product, place, service and promotion (4p’ s) that the firm blends to
product the response it wants in the target market. These are the following 4ps.

Products: That could meet the identified needs of chosen consuming groups.

Place: It performs various functions like transportation, warehousing, channel

management etc. so the products easily reach the consumer.

Promotion: The firm carries out a no. measure 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.

PROMOTIONAL ACTIVITIES ( FOR RETAILERS)

Promotional activities consist of various means of communicating persuasively

with the target audience. The important methods are:

Advertisement :

Identifying a sponsors pay’s media (such as T.V.) to transmit to target consumer.

28
Personal selling :-

Where sales representative employed by the firm engage in interpersonal

communication with individual consumer and prospective customers.

Sales promotion:-

Where the market utilization, displays, demonstrations, premiums, contests or similar

devices.

Publicity and Public relation :-

Help to stimulate supportive news items about the firm and the its product thathave
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.

According to “ American Marketing Association ” sales promotion refer “

Those activities other personal selling, advertising and publicity, that stimulate
consumer Purchasing and dealer effectiveness, such as display , shows and
exhibition, demonstration and various other non-recurrent selling efforts not in
ordinary. “ Sales promotion” is also known by the name of “Extra Purchasing
Value” (E.P.V).

ADVERTISING & SALES PROMOTION IN L.B.P.L

Advertising and also promotion activities play a vital role in entire marketingefforts.
Without these aspects a qualityproduct 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 LumbiniBeverage Pvt. Ltd. The two basic objectives for carrying out such various

29
 promotional activities by Lumbini Beverages Pvt. Ltd. is “To generate more sales as
well as to create and maintain an image of is product” L.B.P.L.carries out its
promotional activities as controlled and integrated programmers 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 sales used L.B.P.L for fulfilling the various purposes for itspromotional
activities are the following:

1. Food ‘N’ Fizz

2. Space Club
3. Pyaasbujhao profit badhao
4. Agreement
5. GOD(Glass on deposit)
6. Displaying equipments
7. Scratch card, lucky draw & prize.

30
 RESEARCH METHODOLOGY

All the findings and conclusion obtained were based on the survey done in the
working area i.e. Ara central. Within the time 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.
Data- Sources
Retailers/Dealers (Cold Drinks stalls Ice Stalls Hotels Restaurants Sweet Shop Pan Shop,
General Stores, Telephone Booths etc), Distributor internal Company’s Records etc.
Research-Approahes
Survey
Research-Instrument :
Interview Schedule
Sampling- Plan :
Sampling unit Distributor Retailer
Sampling size 01 115
Sampling procedure :
Census Survey
RESEARCHDESIGN
The research design adopted is descriptive. Descriptive research includes surveys and
observational techniques.
(a) DATA USED FOR ANALYSIS
The data used for analysis in the study has been collected in two forms namely
primary and secondary data.
Primary Data

The primary data is the data collected afresh by the researcher. The primary data
were collected through the survey method.
31
Secondary Data

The secondary data have been collected through the historical data which is available
with the Coca Cola, company profiles and websites.

(b) TOOLS OF DATA COLLECTION

The tools used for data collection is Qualitative and Observation Method.

LIMITATIONS OF PROJECT

The following were the limitations of the project:

1. The finding of the study may not be applicable to other places except ARA.
2. The respondents were too busy to give exact answer to all questions.
3. There is chance of under estimation of sales and incomes as it is the nature of
human beings.
4. This study analysis is opinion of retailers only.
5. The results may not hold good in the long run as taste and preference of human
beings are subject to change over a period of time.
6. Chances of biased data collections to respondents.

32
DATA ANALYSIS & INTERPRETATION

1. TYPES OF SHOP OR OUTLETS

Types of shop No of Retailers Percentage

Grocery 30 26%
Convenience 35 30%
Eatery 50 44%
Total 115 100%

Shop/Outlets
Grocery Convenience Eatery
26%

43%

30%

Interpretation: In this Ara and Aracentral area there is mixture of Grocery, convenience
and eatery. In which the maximum number of outlets belongs to eatery and least number
belongs to convenience. So the distributors should distribute the product segment wise
accordingly. Many types of retailers in the market to sell the Pepsi & Coke products I

33
have taken that the list form company & classified that shops according to company
guidelines. General & Kirana store are measure things for company because their share in
one-third, so company always try to make good relationship ship with them because 20%
sell form them.

2. (A) INTERPRETATION OF COOLING EQUIPMENTS (OYE)

COOLERS No. Percentage

Pepsi 20 17%
Coca cola 60 53%
Own 35 30%

Oye
Pepsi Coca cola Own
30% 17%

53%

34
 INTRERPREATATION :From the above graph we can conclude that the
number of coolers distributed from Coca Cola to the dealers is more comparing
to Pepsi. And many of the shop keep their own cooling equipment. This definitely
an edge of coca-cola over Pepsi.

2.(B) MARKET OF VISI COOLER

COOLERS No Percentage
PCI 30 20%
CCI 85 57%
OWN 35 23%
Total 115 100%

VISI COOLER
PCI CCI OWN
23% 20%

57%

INTRERPREATATION :

35
From the above diagram, it is clear that 57% of VISI cooler is of Coca-Cola while 20% is
that of Pepsi and own is 23%.

3. MARKET OF DIFFERENCE SOFT DRINK:-

Cola Market:

Product No of Retailers Percentage

Pepsi-Cola 36 31%

Coca-Cola 16 14%

Thumps Up 63 55%

Total 115 100%

No of retailer
Pepsi- cola Coco-cola Thumsup
31%

55%

14%

36
INTRERPREATATION :There is dominancy of Thumps Up in the Cola segment of
soft drink in the market. Pepsi is its competitors.

(A) Clear Market :

Product No of Retailers Percentage

Sprite 55 53%

Mountain Dew 34 25%

7 Up 26 22%

Total 115 100%

37
 Clear Market
sprite mountain dew 7up
22%

53%

25%

INTRERPREATATION :There is dominancy of sprite in Clear segment of soft drinks

in the market. And overall coca-cola capture approx 48% market share in clear segment
but dew and 7up provide and alternative to sprite and in this section Pepsi product
combined together and capture more then 50% market share.

(B) Orange Flavored Market:

Product No of Retailers Percentage

Fanta 69 60%

Mirinda 46 40%
38
 Total 115 100%

ORANGE FLAVOUR
fanta Mirinda

40%

60%

INTRERPREATATION :The chart shows that is two types of orange flavor available
Mirinda belongs to PepsiCo and the fanta belongs to coca-cola products. It is clearly
from the above graph the coke product i.e. Fanta demand is more than the Mirinda. So
Fanta is the market leader in this segment.

(C) JUICE MARKET :

39
Product No of Reatailers Percentage

Slice 34 30%

Mazza 54 47%

Twister 2 2%

Min made Pulp 5 4%

Frooti 15 13%

Others 5 4%

Total 115 100%

Juice Market
slice maaza Twister Min made up Frooti others
13%
4% 30%

4%

2%

47%

INTRERPREATATION :There is dominancy of Mazza belongs to caca-cola brand is

juice segment of soft drink in the market. And overall coca-cola approx 47% market
share in juice segment and slice belongs to PepsiCo get the second place in the market
share and capture 30% market share. Third position goes to Frooti which is a pearl

40
product. The newly launched product of PepsiCo and coca-cola are Tropicana twister and
minute made pulpy respectively also moving good in this segment where twister has
more market then pulpy orange. In other segment have a products like real fruit juice,
dabur juice and other and this have a market share of 4%.

5. WATER PREFER BY RETAILERS .

Water Market :

Product No of Retailers Percentage

41
 Aquafina 23 20%

Kinley 23 20%

Other 69 60%

Total 115 100%

Water Market
Aquifina Kinley others
20%

60% 20%

INTRERPREATATION :There is dominancy of other in which comes biselery, local

brands, etc have a market share of 60% and the share of PepsiCo, Aquafina and kinley
has almost equal market share.

42
6. PERCENTAGE OF COMPANY SIGNAGE

Company No of Retailers Percentage

Pepsi 40 35%

Coca-cola 52 45%

Other 6 5%

No boards 17 15%

Total 115 100%

43
 Company signage
Pepsi Coco-cola Others No board
15%
5% 35%

45%

INTRERPREATATION :From the above chart it is clear that 35% of glow sign board
is of Pepsi while 45% is that of coca-cola and rest 5% belongs to other and 15% is of no
boards.

7. KIND OF SIGNAGE IN YOUR OUTLET

Types of Signage No of Retailers Percentage

Flex Board 40 35%
Dealer Board 35 30
Glow Signage Board 10 9%
Others 30 26%
Total 115 100%

44
 Kind of Signage
flex Board Dealer Board glow Sign Board Others
26%
35%

9%

30%

INTRERPRETATIONS:-

This Graph Show the Most of the Retailers Get the flex Board Rather than Glow Sign
Board. Because the rate of the flex board is cheap than Glow Sign Board.

45
8. KIND OF PACKAGING

Types of Product No of retailers Percentage

Can 20 18%
Plastic Bottle 30 27%
Glass 60 54%
Tetra Pack 5 1%
Total 115 100%

Packaging
Can Plastic bottle Glass Tetrra poack
1% 18%

54%

27%

INTRERPREATATION:-

According to graph Glass bottle Most demanded by the customers and after that plastic
Bottle Prefer by the customers.

9. SCHEME/DISCOUNT PROVIDED BY COMPANY

46
 No of Product No of Retailers Percentage
Pepsi 40 35%
Coca-Cola 65 56%
Others 10 9%
Total 115 100%

Scheme/Discount
Pepsi Coca-Cola Others
9%
35%

57%

INTRERPRETATION:-
As the graph shows Most of the Retailers get more scheme/Discount By the Coca- Cola.

47
10. EFFECTIVE ADVERTISEMENT

Types of Adv No of retailers Percentage

Television 60 59%
Magazine/News Paper 10 10%
Display 30 30%
Wall panting/ Hoarding 15 1%
Total 115 100%

Advertisement
Television Magazine/Newspaper Display WallPanting
1%
30%

59%

10%

INTRERPREATATIONS:-
Television is the more Effective Advertisements rather Than Display.

11. KIND OF PROMOTIONAL ACTIVITIES

48
 Promotional no of retailers Percentage
activities
Free Bottle Scheme 55 52%
Prize 15 14%
Discount Crates 35 33%
Others 10 1%
Total 115 100%

promotional Activities
Free Bottle scheme Prize Discount Crates Others
1%
33%

52%

14%

INTRERPRATATION:-

Most of the retailers get free bottle scheme and after that they get discount Crates on the
purchase of products.

FINDINGS

49
1. It is found that in the cola market thiums up is the one of the better Product than Pepsi
and Coca-cola.

2.It is found that in the ARA and the CENTRL ARA the supply of Pepsi sign board and
glow board is not distributed on proper way.

3.COCA-COLA is the market leader in overall market

4.COCA-COLA is providing more schemes than the PEPSI

5. Vigi cooler is not properly distributed in the hand of retailer ,by which sale effected
badly.

6. Retailers do not get actual schemes due to COMMUNICATION GAP In distribution

channel.

7. Tight vigil should be keep over the distributor.

8. Distribution is not in proper manner,which is affecting the market of Pepsi.

.
9. Sales can increase after locating VISI COOLER outside of outlet.

10.All the products of Pepsi Co like 7up, & Dew is not provided in time when the
retailers demand it.

11.If retailers complaints regarding discounting and trade scheme they are not responded
properly.

CONCLUSION

50
1. Most of the Retailers demand Thumps up because customer likes the taste.

2. Most of the retailers require mainly hording, glow sign board and Signboard,
which they are asking from long time.

3. The whole analysis shows that there are only two companies dominating in the
soft drink’s market- Pepsi Cola and Coca-Cola. In which Coca-cola is a leader and
Pepsi Co is follower.

4. Pepsi has invested more in the market. Distribution of- VISI Coolers and ICE-
BOX is not as comparison with Coca-Cola but still more investment is needed to
break the brand and establishment of Thumps Up and Sprite.

5. Due to the lack of believe towards the retailers which cause to communication
problem and often distributor not try to reveal the actual schemes.

6. All the areas in Ara and Ara central etc. many retailers are not satisfied with the
distribution network of the Pepsi.

7. Sales is very poor due to shortage of VISI-COOLER so allocation of visi cooler is

also essential.

8. In Cola segment Thumps-up and in lime segment sprite is the main competitors of
Pepsi.

9. Most of the Consumers don’t like the taste of Pepsi due to its sweetness and low
fizz.

10. Sometimes distributor do not provide the product which is demanded by the
retailers.

11. Due to the monopoly of the distributor they do not try to short out grievances of
the retailers.

SUGGESTIONS

51
 1. The Pepsi should improve its flavour.

2. The criteria to provide Glow Signboard, Flax board, should be changed and a
separate department should handle this.

3. It is true that in the ARA and the central ARA Coca-cola is dominating the
market of Pepsi because they are paying proper attention towards there
facility.

4. Company is not providing VISI-COOLER to all the retailers so its main cause
of loss of the company products.

5. Some time distributor do not believe its cause problem for both,so distributor
should make a healthy contact and Pepsi officer should also vigil on all the
issues and Should give the proper information about what offers is going on.

6. All the requirements and grievances of the retailers should be short out within
stipulated time .

7. Taste of the product should be always check and try to make it better as per
demand of the customer.

8. Pepsi officer should always vigil to every work of the distributor as like
scheme distribution ,supply of all products.

9. Executives should take the feedback from the retailers about the service of the
salesman and the distributors.

10. Leakage and blasted bottles as per policy should taken back and distributor
should also increase the vehicles for delivery of goods.

BIBLIOGRAPHY
52
BOOKS:-
 Kotler Philip, Marketing Management, 13th edition, Prentice Hall of India Pvt
Ltd.

 Ramaswamy and Namakumari, Marketing Management, 3rd Edition, Macmillan India

Ltd.

 GC beri marketing research Tata McGraw Hill, New delhi.2003: 3rd edition.

 Kothari C.R, Research methodology, New Delhi, New Age International (P) Ltd.
Publishers, 2007.

WEBSITES:-

• www.pepsico.com

• www.pepsizone.com

• www.pepsiindia.com

• www.cocacola.com

QUESTIONNAIRE FOR RETAILERS

53
Name the outlet:………………………………………………………………..

Address:………………………………………………………………..………..

Mobile number: …………………………………………………………………

1. Your shop lies in which category?

(a) Convenience (b) Grocery

(c) Eatery

2. Which company’s visi cooler &oye you have in your outlet?

(a) Pepsi-Cola (b) Coca-cola

(c) Both (d) Own

3. Q. Which brand of cola provides you better sales support?

(a) Pepsi-Cola (b) Coca-cola

(c) Both (d) Others

4Q. Which brand of soft drinks you deal in?

(a) Pepsi-Cola (b) Coca-cola

(c) Both (d) Others

5. Q. Which Brand of Water you Deal in ?

(a) Pepsi (b) Coca-Cola

(c) Both (d) Others

6. Q. Which company’s signage you have in your outlet?

(a) Pepsi (b) Coca-cola

54
 (c) Both (d) No signage

7.Q. what kind of signage is offered by the company to you?

(a) Flex-Board (b) Dealer Board

(c) Glow Sign Board (d) Both

8.Q. what kind of packaging do you generally prefer?

(a) can (b) plastic bottle

(c) glass (d) tetra pack

9.Q. which company provides you better commission and good credit faculity?

(a)Pepsi (b)coca-cola

(c) others

10.Q. which media according to you is more effective in boosting sales?

(a) Television (b)Magazines/Newspapers

(c) Display (d)Wall paintings/Hoardings

11Q. What kind of promotional activities do you like most?

(a) Free bottle scheme (b) Prize

(c) Discount Crates (d) Other

12.Q. Your recommendation for further sales improvement in your locality?

………………………………………………………………………………………………

13.Q.sales promotion technique of which company are more effective in boosting

sales?

(a) Pepsi (b) coca-cola

55
(c)Others

14.Q. Give me two suggestion for betterment of Pepsi-Cola ?

(a) ………….. ………………………………………………………………………………

(b)
……………………………………………………………………………………………

56