“Enhancing distribution channel to accelerate sales”

Before I get into the thick of the things I would like to add a few genuine words for the people who were part of this project in numerous ways. People, who gave unending support right from the stage the project was started, appreciated and encouraged when being depressed.

In this context I would like to express my gratitude towards my parents and family members who have constantly supported and played a pivotal role in shaping my career.

I take this opportunity to express my gratitude to Mr. SUBRATO CHAKROVARTY (T.D.M) and Mrs. MUKTI RANI (HR) of S.M.V. Beverages who have given me an opportunity to do the project in their esteemed organization.

I would also like to thank Mr. ARVIND and Mr. DHANANJAY (MARKETING) of SMV Beverages without his support this project couldn’t have been in the form in which it is now. I owe more than what I can mention mostly for teaching me to see the silver lining in every dark cloud.

I totally be indebted my regards to my External guide Mr. SHASHI SHEKHAR (C.E.) and Mr. PREM (P.S.R.) for their co-operation in the successful completion of the project.

This has been one long project and naturally many people get associated with it. Any bouquet for the merit in this book should go to their door. I would like to thank the staffs and officials of SMV Beverages for their co-operation in providing us with all the information, which were required by us.

I owe my sincere gratitude towards my internal guide Prof AMIT KULSHRESTH and Executive Director Mr. P.K. DIWAKARAN for the support towards the completion of the project.

And finally I would like to thank my friends for their unending support.

Index

Executive Summary

Chapter – 1

1.      Introduction of Company

2.      History of Company

Chapter – 2

1.      Project overview

Introduction

Pepsi strategy for Market share

Product profile

Product detailed

Objectives & Scope

Research Methodology

Data Analysis

Conclusion

Limitations

Recommendations and Observations

Chapter – 2

1.      Bibliography

2.      References

3.      Annexure

Executive Summary

Practical training is considered to be an essential part of all the professional institutions and those who are aspiring for Master of Business Administration, on job training assumes even more significance.

As an aspect of management education which is receiving increased attention from institutes as well as from recruiters on job training is imparted to the students to acclimatize the student with the actual environment of business management.

It is also a widely accepted theory that this aspect of management education widens one’s thinking about the different concepts of management philosophy, difference between different concepts and ground realities.

This project has been done in the field of marketing and sales.

This project work has been done under the supervision of S.M.V Beverages Pvt. Ltd., which is franchise owned bottling plant of PepsiCo India limited. The bottling plant is located at Adityapur industrial area (AIDA), Adityapur.

The report gives a true picture of the practical activities done by me within the jurisdiction of the area assigned to me.

The study area was restricted to Telco, Golmuri and Birsanagar parts of Jamshedpur. Hence the results of the study are applicable to Telco, Golmuri and Birsanagar in particular and Jamshedpur in general.

In the project the nature of research is exploratory research whereby the efforts have been made by executing the research in Jamshedpur regions. A systematic as well as well-Designed approach has been adopted while conducting research about market characteristics.

The primary objective of this project is “To study market share of PEPSI in terms of distribution” and secondary objectives are:-

v Factors influencing growth of sales in dealer outlet.

v Penetration of different products of Pepsi in market.

v To determine the visibility of the Pepsi on the Dealer outlets

v To determine the preference levels of Pepsi in comparison to Coke.

v To find out the sales level of Pepsi in comparison to the Coke

I faced a few difficulties while doing my research like attitude, language barriers, and sample size.

I would like to recommend that SMV Beverages should provide schemes to the retailers during the peak season particularly the refilling scheme as it is the most popular. Also, because Pepsi and Mirinda are the most preferred flavors schemes should be given in the two flavors in particular.

I would also like to recommend that to maintain a higher market share and also to retain the goodwill of the retailers prompt service should be provided and any grievance against the company should be immediately attended to.

It is followed by the research methodology which is adopted has been defined with the help of collected data, a detailed interpretation about the company has been given there, the product profile is defined covering the types and different flavors of the PEPSI CSDs.

The next step was defining the sampling design where by the sample size of 50 was taken for the dealers and the target area was Telco and Golmuri. Jamshedpur to facilitate the research work on questionnaire method was adopted for the collection of the data as a primary research whereas the secondary data was collected from different books, company library and the other trade / business websites.

Chapter – 1

1.1 Introduction of Company

PepsiCo is a world leader in convenient foods and beverages.

The word Pepsi is now the household name all over the world. This American company rules the world in a vast market of beverages and snacks. This empire operates under the name PEPSI CO INC. with global headquarter at New York, also known as Pepsi city

The company consists of Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International and Quaker Foods North America. PepsiCo brands are available in nearly 200 countries and territories and generate sales at the retail level of about $85 billion. Many of PepsiCo's brand names are more than 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001.PepsiCo offers product choices to meet a broad variety of needs and preference -- from fun-for-you items to product choices that contribute to healthier lifestyles.PepsiCo’s mission is “To be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.”

1.2 History of Company

SMV BEVERAGES LTD

Steel City Beverages Ltd. Adityapur, Jamshedpur a medium sector enterprise located amidst beautiful surrounding on the Tata-Kandra road in the Adityapur industrial area and producing Pepsi range of bottled soft drinks viz. Pepsi, 7up, Mirinda and Slice and had now become a household name in Jharkhand today symbolizes achievement and advancement over the years. Today, it symbolizes self-reliance in quality and technology, productivity and industrial relations since its inception more than 25 years ago.

S.C.B.L. was established in 1967 and production commenced in March 1969. At the very outset the company installed state of the art machines and technology, for the production and bottling of soft drinks. The bottling plant with a capacity to produce 220 bottles per minute is totally automatic and also has a modern state of the art inter mix machine for bringing forth the right blend of flavors. With the advent of Pepsi cola internationals in India, the company entered into an agreement with Pepsi foods ltd. for the production and sales of Pepsi range of soft drinks in Jharkhand and Bihar.

The company which has a manpower of 110 ranked as the best bottling company in the country in terms of quality, efficiency, sales, productivity and HRD. Under the guidance of its chairperson Smt. Kusum Kamani and the able stewardship of its Managing Director Sri. Nakul Kamani, the company has consistently backed on numerous occasions awards for quality assurance and productivity.

In 1993, it bagged top honors for being the best quality conscious plant among all Pepsi bottling companies in India.

S.C.B.L. was taken over by Mr. S.K. Jaipuria in March 1999 from Mr. Nakul Kamani along with Rishabh Marketing (P) Ltd., the marketing unit.

Mr. S.K. Jaipuria is very much enthusiastic and enterprising businessman. He has a number of bottling plants all over India, like Orissa, Bhopal, Nagpur, Hyderabad, Dharward etc. In 2002 he setup another bottling plant in the name of SMV Beverages (Jamshedpur), a unit of SMV Agencies (P) ltd. It has a capacity of 600 BPM which is catering to the whole of Jharkhand. It is also a franchisee of Pepsi.

S.M.V. Beverages won the PEPSI Q.A. (GOLD) INTERNATIONAL QUALITY AWARD for the year 2001.

S.M.V. Beverages also setup a PET bottle plant in March 2003. It has a capacity of bottling 40 PET bottles per minute. It is bottling 500ml, 1.5 lt., 2 lt. PET bottles of different flavors namely Pepsi, Mirinda, 7up, Mountain dew.

Following are the major consideration

Clear lines of authority

Adequate delegation of authority

Minimum managerial level

Unity of directors

Application of ultimate responsibility

Span of control

Simplicity

Flexibility

Proper emphasis on shift activities.

ORGANIZATION CHART OF HYDERABAD MARKETING COMPANY

Chapter – 2

2.1 PROJECT OVERVIEW

Marketing deals with identifying and meeting human and social needs. One of the shortest definitions of marketing is “meeting needs profitably.” Marketing is tricky, however, and it has been the Achilles’ heel of many formerly prosperous companies. But making the right decisions is not always easy. Good marketing is no accident, but a result of careful planning and execution. The soft drink industry is no exception and is one of the most intensely fought industry with the two major competitors PepsiCo and Coca-cola. This industry can be characterized by words like sales volume, price wars, effective distribution strategies, market share, sales promotion strategies etc.

My field of study will delve upon the following aspects viz.

· Comparison of sales volume of Pepsi and its competitors

·         Retailer’s participation in the selling process.

·         Penetration of different products of Pepsi in comparison to its competitors.

·         Factors influencing growth of sales in dealer outlet.

·         Penetration of different products of Pepsi in market.

·         Promotional activity done by company.

·         To find out “Pepsi strategy for market share”.

KEY AREA OF TRAINING

The key area of my summer training was “Enhancing the distribution of PEPSI to accelerate the sale. “ The company had divided his retail outlets on the basis of area wise and character wise. Each of the division is having mainly three types of outlets.

AREA WISE: - The area of my summer training was “Jamshedpur” and according to the company the whole training area was divided into three parts…

INNER CIRCLE: - These are the main selling point of a company or heart of a city. In inner circle we mainly consider those selling point or retailers shops which come under the main market area.

OUTER CIRCLE: - These areas are adjacent to the main market area, which is a mixture of residential areas and market areas. In these areas we mainly talk about those retailers’ shops, which are placed in the residential areas and quite away from the main market.

OUTSKIRTS: - These areas are quite away from the main city and the main market, or the interior areas of the towns.

CHATACTER WISE: - Again there is a division of outlets on the basis of characters (type of work done by the retailers) and there are again three types of outlets.

CONVENIENCE OUTLET: - These types of outlets include general stores, beetle shops, stationary shop, medical shop and such type of other shops.

GROCERY OUTLETS: - These types of outlets include grocery stores which indulge in selling of foods and related things used in the home.

EATERY: - It includes restaurants, fast food joints etc.

2.2 INTRODUCTION

Market Survey

Market survey is one of the most widely used marketing research techniques. Its purpose is collection of specific data concerning to the market that cannot come from the company’s internal records or from external published source of data. The only way to get accurate data regarding the target market is by physically moving around in that area along with the Pepsi vehicle. There are various types of surveys out of which the one that I used was the census survey. The report on marketing activities of S.M.V. Beverages is based on a survey which is known as a:

·         Dealer survey

·         Retailer survey

                           Dealer survey or retailer survey is one of the most accurate methods to known about the market share of a company and it is especially true for soft drinks companies. Soft drink market is typically characterized by changes in the stock position every day.

In order to have a good knowledge about the market and the route it was important for me to move along with the Pepsi vehicle. This helped me to know about:

1. Number of dealers and retailer in the Telco, Golmuri market.

2.  Location of the dealers.

3. Type of dealers.

4.  Market share.

Learning in the classrooms and learning practically are two different things. So for the first 10 days I moved along with the Pepsi vehicle interacting with the retailers and trying to build up a rapport with them. From this I also came to know how to deal with different types of retailers and how to convince them. Feedback from the retailers helped me to find out where the company was lacking in terms of service provided and also how the competitors fared on the same parameters. These feedbacks help the company to improve its services and as such increase retailer satisfaction which in turn results in better sales and revenue generation. Thus appropriate marketing strategies can be worked out based upon the findings.

While conducting the survey of the retailers, first I designed a format based on the information needed for the analysis for my topic and then I personally filled up by interviewing all the retailers in the Telco and Golmuri area.

FINDINGS FROM SURVEY

NUMBER OF OUTLETS

In the Telco, Golmuri area there are 250 outlets selling soft drinks out of which around 45 are Pepsi exclusive outlets and 30 are Coca-Cola exclusive outlets. Rests are selling both the brands. Also there are three types of outlets in the Telco, Golmuri area which are:

Convenience outlet which includes general stores, beetle shops, medical stores and other types of shops

Grocery outlet which includes shops selling grocery

Eatery which includes restaurants, fast food joints etc

Number of total outlets:

Total number of outlets in Telco and Golmuri – 250

            Outlet type                                                                 Outlet numbers

             CONVININCE                                                                     130

             GROCERY                                                                           95

             EATERY                                                                               25

MARKET SHARE OF PEPSI

To find out the market share of Pepsi in the Telco and Golmuri market I went to each of the ……. outlets and asked the shop owners about the daily number of bottles of Pepsi and coca-cola that they stock. Then I added up the figures from all the outlets and then found pout the market share.

One of the limitations of this survey is that the stocks of a shop keeps changing everyday during the peak season i.e. from March to June based on the schemes available. So the stock figures given here are an average estimates which has been found out by me after consultation with the shop owners.

From this survey the markets share of Pepsi w.r.t. Coca-cola was found out to be as follows:

ü PEPSI_________________________ 58.04% (APPROX. 58%)

ü COCA-COLA __________________41.96% (APPROX. 42%)

2.3 Pepsi strategy for Market share

1. Outlet

2. Visi (Cooling equipment)

3. Cold Stock

4. Warm Stock

5. Empty

6. Plano gram (POG)

7. Benefits

8. Fulfilling Demand

9. Promotion

1. Strong distribution channel

1. Scheme

1. Outlet

An outlet means retail shop from where Pepsi products are sold.

Outlets are of two types –

i. Exclusive – It means only Pepsi product

ii. Inclusive means both Pepsi and Coca Cola product.

The aim of Pepsi to maximize the number of outlets as possible but they also take care of their production capacity.

They also try to convert the Coca Cola outlet into Pepsi outlet.

2. Visi (Cooling equipment)

Visi means cooling or chilling equipment’s like Display fridge, bottle cooler etc. Visi are available at different sizes and it is given to the retailers as per his outlet type, size, sales etc.

3. Cold stock

Cold stock means those items which are chilled and placed in visi and ready to drink.

4. Warm stock

Warm stock means those items which are not chilled and we cannot serve to drink.

5. Empty

Empty means those glass bottles which does not contain any material. It is ready to refilling and by returning of these bottles only a retailer can get another stock.

6. Plano Gram (POG)

Plano gram means arrangement of glass bottles and pet bottles in visi. In display fridge it must be arranged as per the plano gram and it also depend on size of visi cooler.

7. Benefits

As per the retailers benefits are different in nature. It depends on type of outlet, sales, demand and place. Benefits are like discount on price, free bottles etc

8. Fulfilling demand

SMV always try to fulfill the demand of all retailers, Fulfilling demand in peak season like in summer is very difficult but then also SMV always try to maintain that supply.

9. P rootion

Sales promotion a key ingredient in marketing campaigns consists of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by customers

The promotional tools used by SMV Beverages for its marketing activities are

Point of sale display

Incentives to retailers

Sales promotion through sponsoring special events

Sales promotion through various schemes

Advertising

POINT OF SALE DISPLAY

“There are many ways to communicate with consumers at the point of sale. In-store advertising includes shopping carts, cart straps, aisles and shelves. The appeal of the point of sale advertising lies in the fact that in many categories consumers make the bulk of their final decision regarding purchase in the shop.”

INCENTIVE TO RETAILERS

Another method of sales promotion being used by SMV Beverages is by running special incentive schemes for retailers. This type of promotional strategy is conducted mainly during the peak season i.e., from March to July. In this the company with the help of its distributor in the respective areas categorizes the retailers into different categories based on sales. After this the retailers are given a target regarding the minimum number of crates that they have to sale in that period. On achieving the target the dealer is given the prizes which ranges from free bottles, gift items etc.

SPONSORING SPECIAL EVENT

Another promotional strategy which is very heavily used by Pepsi and as such by SMV Beverages is sponsoring various events which include cricket matches, local events like quiz competitions, parties, local sports events etc.

SALES PROMOTION THROUGH VARIOUS SCHEMES

SMV Beverages keeps on running various schemes from time to time which are mostly those promoted by Pepsi and some by SMV Beverages. These include schemes for both the retailers as well as the consumers.

ADVERTISING

A very important part of advertising is to decide the medium of advertising and how much to spend on each medium. The different mediums used by Pepsi are:

TV
Hoarding
Newspaper/Magazines

Out of these Pepsi invests heavily in advertising through TV. Brand ambassadors of Pepsi include film stars, cricketers and other sport persons. PepsiCo gives these brand ambassadors hefty sums running into many corers to endorse their brands. Some of the brand ambassadors of PepsiCo associated with the different brands is:

Shahrukh Khan – Pepsi

Sachin Tendulkar – Pepsi

Amitabh Bachchan – Pepsi

John Abraham – Diet Pepsi

Zayed Khan – Mirinda

Mallika Sherawat – 7up

Mahinder Singh Dhoni– 7up

10. Distribution Channel

All the marketing intermediaries (Sole selling agents, whole sellers, distributors, retailers etc.) Used by the producer for the purpose of making their products available to users collectively constitute the distribution channel.

Role of Distribution Channel

• Provide Distribution Efficiency to manufacturers

• Supply products in required Assortments

• Provide Salesmanship

• Help Merchandising the product

• Help implement the Price Mechanism

• Physical Distribution & Financing

• Change Agent & generate Demand

The company had divided his retail outlets on the basis of area wise and each of the division is having mainly three types of outlets.

INNER CIRCLE: - These are the main selling point of a company or heart of a city. In inner circle we mainly consider those selling point or retailers shops which come under the main market area.

OUTER CIRCLE: - These areas are adjacent to the main market area, which is a mixture of residential areas and market areas. In these areas we mainly talk about those retailers’ shops, which are placed in the residential areas and quite away from the main market..

OUTSKIRTS: - These areas are quite away from the main city and the main market, or the interior areas of the town.

DISTRIBUTION CHANNEL OF S.M.V. BEVERAGES

11. Scheme

Scheme is also a type of benefits; generally it is free bottles given with cases. It depends on demand. Some special scheme is to some retailers only which depend on relation and past sales record.

2.4 PRODUCT PROFILE (WIDTH AND DEPTH)

CARBONATED SOFT DRINKS:-

The Joy of Pepsi.

Contains: Carbonated water, high fructose corn syrup, caramel color, phosphoric acid, caffeine, citric acid and natural flavors

Calories	100
Total Fat (g)	0
Sodium (mg)	25
Potassium (mg)	10
Total Carbohydrates (g)	27
Sugars (g)	27
Protein (g)	0
Caffeine (mg)	25

Diet Pepsi

0 carbs. 0 calorie. It’s the diet cola.

Contains: Carbonated water, caramel color, aspartame, phosphoric acid, potassium benzoate (preserves freshness), caffeine, citric acid and natural flavors.

	Calories	0
	Total Fats (g)	0
	Sodium (mg)	25
	Potassium (mg)	20
	Total Carbohydrates (g)	0
	Sugars (g)	0
	Protein (g)	0
	Caffeine (mg)	24

ORANGE:-

Mirinda Orange

Savor Your Mirinda.

Contains: Carbonated water, high fructose corn syrup, citric acid, purity gum, potassium benzoate and potassium sorbate (preserves freshness), ester gum, natural flavor, yellow 6, ascorbic acid and calcium disodium EDTA (to protect flavor), sodium citrate.

	Calories	120
	Total Fats (g)	0
	Sodium (mg)	25
	Total Carbohydrates (g)	33
	Sugars (g)	32
	Protein (g)	0
	Caffeine (mg)	0

OTHERS:-

Mountain Dew

Do the dew.

The fastest-growing soft drink of the decade, Mountain Dew currently ranks as the nation's leading soft drink in retail outlets. Doing the "Dew" is like no other soft drink experience because of its daring, high-energy, high-intensity, active, extreme citrus taste.Contains: Carbonated water, high fructose corn syrup, concentrated orange juice and other natural flavors, citric acid, sodium benzoate (preserves freshness), caffeine, sodium citrate, gum arabic, yellow 5, erythorbic acid (preserves freshness), calcium disodium EDTA (to protect flavor) and brominated vegetable oil.

	Calories	110
	Total Fats (g)	0
	Sodium (mg)	50
	Potassium (mg)	0
	Total Carbohydrates (g)	31
	Sugars (g)	31
	Protein (g)	0
	Caffeine (mg)	36

CLEAR LEMON

7up

Cool 7up

Contains: Carbonated water, caramel color, aspartame, phosphoric acid, potassium benzoate (preserves freshness), caffeine, citric acid and natural flavors.

	Calories	100
	Total Fats (g)	0
	Sodium (mg)	25
	Potassium (mg)	20
	Total Carbohydrates (g)	25
	Sugars (g)	31
	Protein (g)	0
	Caffeine (mg)	24

FRUIT JUICE:-

Slice

Contains: Carbonated Water, High Fructose Corn Syrup, Mango Juice From Concentrate, Citric Acid, Potassium Benzoate (Preserves Freshness), Modified Food Starch, Natural & Artificial Flavors, Potassium Sorbate (Preserves Freshness), Ascorbic Acid (Vitamin C),Yellow 6, Glycerol Ester of Wood Rosin, Calcium Disodium EDTA (To Protect Flavor), Sodium Citrate.

		Calories	120
		Total Fats (g)	0
		Sodium (mg)	25
		Potassium (mg)	35
		Total Carbohydrates (g)	35
		Sugars (g)	35
		Protein (g)	0
		Caffeine (mg)	0

2.5 PRODUCT DETAILED:-

Leher Soda

300ml – Rs.150 – 24 pcs. (Case)

600ml – Rs.264 – 24 pcs. (Case) RGB

Nimbooz

250 ml – Rs.330 – 24 pcs. (Case) PET

200 ml – Rs.260 – 30 pcs. (Case) TETRA

2.6 OBJECTIVES & SCOPE

PRIMARY OBJECTIVE:

“To enhance penetration and the distribution Channel to accelerate the sales: Vis –a- Vis, PEPSI AND COKE through comparative analysis.

SECONDARY OBJECTIVE:

· To determine the visibility of the Pepsi on the Dealer outlets

· To determine the preference levels of Pepsi in comparison to Coke.

· To find out the satisfaction level of Pepsi in Jamshedpur.

· To find out the sales level of Pepsi in comparison to the Coke.

· To find out the dealers’ perception about the Pepsi products.

· To find out the various factors influencing purchase of the Pepsi or Coke.

· To find out the expectations of the dealers from the company.

The principal methodology adopted in the project was a conclusive survey, which was conducted with help of a questionnaire and in depth interview with the retailers for collection of primary data.

2.7 RESEARCH METHODOLOGY

Sources of data

Primary – First hand data

Secondary – Websites …..

To find out the market share of Pepsi in the Telco market of Jamshedpur I have undertaken exploratory research as the method of collecting data from the retailers. I have also undertaken survey research as the method of collection of primary data for the purpose of finding out the percentage of glow sign; dealer sign board and paintings share of Pepsi out of the total number of outlets in the Telco and Golmuri area.

For this purpose a survey form was prepared according to the specifications of the company and the data was collected accordingly from the retailers. A sample of the survey form is attached at the end of this report.

To find out the preference for the most effective type of promotional strategy, penetration level among the retailers as well as preferred by the consumer a questionnaire was prepared by me which after being approved by the company was filled up by the retailers as well as by the consumers. The data so collected was analyzed and interpreted accordingly. Separate questionnaires were prepared for the retailers as well as for the consumers. A sample questionnaire for the retailers and the consumers is attached at the end of the report.

Data collection method

Questionnaire

Personal interview

Sampling design

Sampling design is a conductive approach, which gives the research work a factual as well as conclusive framework. It contains sample size, which is basically a true representation of the target population

Target Area

Includes extensive area of Telco, Golmuri.

Collection of information:

I collected the required information by meeting the dealers and the consumer.

Sampling plan which include

Sample universe – Pepsi retailer in Jamshedpur
Sample frame – Telco & Golmuri Area
Sample size – 250
Sample unit – 100
Sampling method – Random sampling

Analysis of information:

After collecting the information I analyzed the information by plotting the graphs of different responses of the survey.

While choosing the shops I took into consideration various factors like daily sales, its location and type of the shop.

2.7 Data Analysis

1. Market share of Pepsi in Filled stock:

Pepsi	59
Coca-Cola	35

Interpretation:

In this category Pepsi is the leader as it has market share of the product of 65% and whereas Coke has market share of 35%.

2. Market share of the product in Visi Cooler

Pepsi	37
Coca-Cola	63

Interpretation:

This is one of the most important supports for the dealers which help them to keep the product chilled and fresh. From the above Graph we can interpret that coke has a large market share with 63% followed by Pepsi with 37%. Coke is the leader in this category, with large number of shops having Coke cooler.

3. Market share of Pepsi Glow Sign Board

Pepsi	41
Coca-Cola	59

Interpretation:

Glow signs are the boards on the top of a shop with neon lights in the back ground with works as a sign board for the shop. In this category coke has a large market share of 59% and Pepsi has a market share of 41%. Pepsi need to increase its market share as this is an effective strategy.

4. Market share of Pepsi in Dealer Board:

Pepsi	51
Coca-Cola	49

Interpretation:

Dealer board is the board on the top of a shop with advertisement of product and work as a sign board for the shop. Market share of the Pepsi in the dealer board category has a good market share of 51% and whereas coke has 49%. By this we can interpret that the awareness of the product is more as compared to coke.

5. Market share of the product in daily sale:

Pepsi

62

Coca-Cola

38

Interpretation:

The daily sale of the product is much more as compared to coke. The share of the Pepsi is 62% whereas coke has 38%. In this product we can interpret that Pepsi as a product is preferred more by the customers.

6. Market share of Pepsi in Pet Bottles:

Pepsi

67%

Coca-Cola

33%

Interpretation:

In this category Pepsi has a large market share of 67% whereas coke has a market share of 33%. In this category Pepsi has a good market share which shows that Pepsi stock of pet bottles is more as compared to coke.

ANALYSIS OF THE DEALER QUESTIONNAIRE:

1) How much of the business you do, from Pepsi?

With the help of this question I tried to find out that how much a businessman do a business from the product of Pepsi. To make the analysis the shops have been divided into 3 categories namely:

Convenience Shop - Convenience outlet which includes general stores.
Eatery Shop - Eatery which includes restaurants, fast food joints etc.
Grocery Shop - Grocery outlet which includes shops selling grocery.

Convenience Shop	26-50%
Eatery Shop	11-25%
Grocery	0-10%

Interpretation

In this category many of the businessmen are doing most of the business through convenience shop followed by eatery outlets and then grocery outlets.

2) How frequently do you buy Pepsi?

Through this question I could make analysis on the sale of the products of Pepsi and Coca-Cola

Alternate days	54%
2-3 Times a week	2%
Once a week	44%
Less frequently	0%

Interpretation:

From the above graph we can interpret that 54% of the retailers agree to order for the stock in the alternate days because of lack of space and these retailers are mostly beetle shops as they want the route vehicle to visit them regularly so they are able to meet the demands of the customers regularly.

44% of the retailers prefer to order once in a week as they have a large storing space and prefer to order in bulk. 2% retailers prefer to order 2 to 3 times a week this includes few grocery shops and beetle shops because of less storing space. These retailers give small orders and do not store in bulk.

No retailers agree to buy Pepsi products less frequently.

3) What is your favorite C.S.D. and non C.S.D of Pepsi?

By this question I tried to figure out which is the most preferred cold drink of Pepsi by the customers.

PEPSI	31%
MOUNTAIN DEW	9%
7 UP	19%
SLICE	15%
MIRINDA	26%

Interpretation:

In this graph I have concentrated on Pepsi products where Pepsi has recorded the highest preference level of 31% followed by Mirinda with 25%

Followed by 7up with 19% and then Slice with 15% and lastly Mountain Dew with 9%.

4) How satisfied are you with Visi cooler of Pepsi?

With the help of this question I tried to find the opinion of the dealers about the facility provided by the company.

Very satisfied	12%
Satisfied	18%
Neither satisfied nor dissatisfied	31%
Quite dissatisfied	29%
Dissatisfied	10%

Interpretation:

From the above graph we can interpret most of the retailers are not satisfied by the visi cooler facility provided by Pepsi. This is not a good sign for the company as this is an effective strategy.

6) How satisfied with the credit facilities of Pepsi?

Very satisfied	6%
Quite satisfied	58%
Neither satisfied nor dissatisfied	26%
Quite dissatisfied	8%
Dissatisfied	2%

Interpretation:

From the above graph we can interpret that 58% of the retailers are satisfied with the credit facilities given by Pepsi. 26% of the retailers are neither satisfied nor dissatisfied those who don’t prefer to go for credit. 2% of the retailers are dissatisfied as they want the extension of the credit period.

7) How satisfied are you with the schemes provided by Pepsi?

These questions provide us the opinion of the dealers about the schemes provided by the Pepsi which helps to push and generate the product in the

Market.

Very satisfied	38%
Quite satisfied	58%
Neither satisfied nor dissatisfied	4%
Quite dissatisfied	0%
Very dissatisfied	0%

Interpretation:

From the above graph retailers are quite satisfied with the schemes provided by the company. None of the retailers are dissatisfied with the schemes. 38% retailers are neither satisfied nor dissatisfied i.e. they have average opinion about the scheme

8) How satisfied are you with the Dealer board of Pepsi?

Very satisfied	8%
Quite satisfied	33%
Neither satisfied nor dissatisfied	37%
Quite dissatisfied	18%
Very dissatisfied	4%

Interpretation:

From above graph we can interpret that 37% of the retailers have average opinion about the dealer board of Pepsi and 33% of the retailers are satisfied with the dealer board provided by the company. 18% of the retailers are dissatisfied with the dealer board of Pepsi as they have not been provided with a new dealer board.

9) How are you satisfied with the Glow Sign Board of Pepsi?

Very satisfied	0%
Quite satisfied	36%
Neither satisfied nor dissatisfied	30%
Quite dissatisfied	32%
Very dissatisfied	2%

Interpretation:

The above graph shows that the retailers have mixed opinion about the Glow sign board of the Pepsi. Out of that 36% of the retailers are quite satisfied with the Glow Sign board. 30% of the retailers are neither satisfied nor dissatisfied whereas 32% of the retailers are dissatisfied with the board. So the company should provide good glow sign boards to the retailers which will help them to attract customers.

10) How would you rate Coke compared to Pepsi in Visi cooler?

This question will help to provide information about the services, support and facilities provided by Pepsi as compared to Coke.

Coke is a lot better	0%
Coke is a little better	64%
They are about the same	29%
Pepsi is a little better	7%
Pepsi is a lot better	0%

Interpretation:

64% of the retailers are of the view that Coke visi cooler is better than Pepsi. 29% of the retailers are of the opinion that they are same .7% of the retailers think that Pepsi visi cooler is better than coke. Retailers are satisfied with the visi cooler of Pepsi.

11) How would you rate Coke as compared to Pepsi in credit facilities?

Coke is a lot better	0%
Coke is a little better	11%
They are about the same	39%
Pepsi is a little better	50%
Pepsi is a lot better	0%

Interpretation:

11% of the retailers think that the coke is little better whereas 39% of the retailers think that they are about the same and 50% of the retailers are of the view that the Pepsi has better credit facilities as compared to coke. So Pepsi provides better credit facilities as compared to Coke.

12) How would you rate Coke as compared to Pepsi in schemes?

Coke is a lot better	0%
Coke is a little better	15%
They are about the same	18%
Pepsi is a little better	57%
Pepsi is a lot better	10%

Interpretation:

57% of the retailers are of the view that Pepsi provides better schemes than Coke .10% of the retailers are of the opinion that Pepsi is lot better and 18% think that they provide the same schemes. 15% think that Coke is little better. Pepsi is the leader in this category.

13) How would you rate Coke as compared to Pepsi in Dealer Board?

Coke is a lot better	3%
Coke is a little better	42%
They are about the same	33%
Pepsi is a little better	22%
Pepsi is a lot better	0%

Interpretation:

The graph shows that 42% of the retailers think that Coke is little better and 33% retailers are of the opinion that they are about the same.22% of the retailers are of the view that Pepsi is little better than Coke in Dealer board of Pepsi.

14) How would you rate Coke Compared to Pepsi in Glow Sign Board?

Coke is a lot better	6%
Coke is a little better	55%
They are about the same	33%
Pepsi is a little better	6%
Pepsi is a lot better	0%

Interpretation:

The above graph shows that 55% of the retailers like the glow sign board provided by coke. Very less retailers are satisfied with the glow sign board provided by Pepsi.

15) Product Quality of Pepsi?

With this question I tried to find out the Product received by the retailers are faulty or free from faults.

1 in 10 products received are faulty	0%
1 in 50 received have faults	0%
1 in 100 received have faults	0%
1 in 1000 received have faults	13%
Never received faulty products	87%

Interpretation:

Most of the retailers were of the view that they have never received faulty products. 13% of the retailers are of the view that 1 in 1000 received have faults. This is a good sign that quality of the product is up to the mark. This makes both the dealers and consumers happy.

16) Delivery of the product on promises?

This question will help to find out whether the distributors are delivering the product to the retailers as on demand.

5 out of 10 promises made or less	37%
7 out of 10 promises made	39%
8 out of 10 promises made	18%
9 out of 10 promises made	6%

Interpretation:

The above graph shows that 39% of the retailers that the company fulfills 7 out of 10 promises and 37% of the retailers that the company fulfills 5 out of 10 promises 18% of the retailers think that the company fulfills 8 out of 10 promises.6 % of the retailers think that company is able to fulfills 9 out of 10 promises. So Pepsi Company has satisfied the retailers as they provide them the product as and when needed by the retailers.

Analysis of Questionnaire for “Distribution Channel”:-

Q.1 Are you happy with the distribution channel of Pepsi?

With the help of this question I tried to find out that a dealer of Pepsi is happy with distribution of Pepsi or not. After analyze this question I found that all most all the retailers of the Pepsi are quite happy with the distribution channel of the Pepsi, they gets products at the time of need and requirement and company also able to make available all product at the time of requirement. At all parts of location, a company makes available all products, either that is inner circle or outer circle or interior areas. Infact in interior areas Pepsi vehicle is quite popular and demanded. To make available all product at all places, a distributors and a salesman play a great role. In Pepsi they select an eligible and well known person so that they can handle and run the distribution channel in a well manner.

Q.2 The Pepsi vehicle comes to you first or Coke comes first?

After analyzing this question I found that no one have a proper and accurate answer, somewhere Coke vehicle comes first and somewhere Pepsi, so its just a matter of time that from which point a salesman starts selling or where the need is high. But when I analyze the same question in respect of interior areas, then I found that, there frequency of Pepsi vehicle is quite better then Coke vehicle and they are more interested in selling of Pepsi product.

Q.3 Do you get every S.K.U. (stock keeping units) pack wise on demand?

In this question store keeping units means the entire flavor that mention in the cash-memo. After analyzing this question I found that a dealer gets the entire flavor which are available in the market and which are pushing in the market by the company. If any time, any flavor is not available with the Pepsi vehicle then that gap gets fulfill in next 12 to 24 hours or according to the demand and necessity of the product.

Q.4 How many calls you want?

This question is related to the frequency of the vehicle that a retailer wants, in depends upon the sale progress of the shop, location of the shop and the population and the life style of that population. After analyze this question I found that 58% of dealers wants a frequency of Pepsi vehicle on the basis of alternative days, while 20% of dealers wants this frequency in 2 days in a week and remaining dealers means 22% wants this frequency in weekly basis.

Q.5 Do you get the product on emergency phone calls?

There is one more facility in this distribution channel that a retailer can get a product on an emergency call. Every retailer have contact number of the distributor, if there is any emergency of product or retailer miss the vehicle or vehicle not on that particular route then a retailer can make a phone call to the distributor and in this case either a distributor send a vehicle or personally go to the retailer with the product with sufficient quantity. After analyzing this question I found that retailers are quite happy with the assistance of the distributors and salesman, they get a product with a sufficient amount of flavor at the time of requirement, if there would have any situation in which a salesman does not have a sufficient amount of flavor according to demand, so a salesman try to fulfill the demand in next 12 to 24 hours.

Q.6 Do they offer you company schemes properly or not?

Through this question I tried to find out from the retailers they are aware of the schemes of the company. Through this I came to find that even in the interior area also the retailers are aware of the company schemes and it is offered properly by the distributor and sales man. This also showed that in the area where Coke doesn’t offer schemes there also the retailers are aware of the schemes of Pepsi from time to time. This showed the effectiveness of Pepsi distribution channel.

Q.7 what is your opinion about the present distributor?

Through this question I tried to find out anything about present distributor that might hamper sales. But through this I found out that even at some point the retailers where unhappy with the company but they were dealing with the company because of the distributor.

Q.8 what are your suggestions to improve the distribution?

Through this question I tried to know any defect in the distribution which could be improved. From the point of view of distributor and salesman this question was of no use as the retailers where satisfied with them which could be made with the above questions.

From the company point of view the retailers looked dissatisfied they told that any product launched or new flavor introduced should be immediately brought into the market. The company should take care of this and should provide proper support material.

Conclusion

Pepsi believes that”Jho Dikhta Hai Who Bikta Hai” i.e any product which is visible is bound to be sold.

The conclusion of this Project Report is that Pepsi & its Product are profitable for the company. Its main competitor is Coca-Cola.

PEPSI has an excellent brand image.
Retailers have very friendly schemes but schemes are different from place to place.
Continuous & strategic improvements in the promotional strategies.

Strong dealer network
PEPSI has good goodwill in the market.
Pepsi must introduce new flavors from time to time.
Large number of celebrity endorsed.
A very good sales force.

Some dealers are not very satisfied with the services of Pepsi which directly affect the sale of product.
Competitor’s products already available in the market with similar schemes

S.M.V. Beverages was established in 1967 and production commenced in March 1969. The bottling plant with a capacity to produce bottle 220 per minute is totally automatic. S.M.V. Beverages, Jamshedpur is proud of winning Pepsi I.Q.A (Gold), International Quality Award, Gold for the year 2001.At present S.M.V. BEVERAGE PVT. LTD. Manufacture Pepsi, Mirinda, 7UP, Mountain dew . Slice & Soda water in 200ML, 300ML, 500ML, 1500ML, and 2000ML range. S.M.V. Beverages Pvt. Ltd., “to generate more sales as well as to create and maintain an image of its product”.

It was a great learning experience for me, where I achieve my objective of this project, by facing some difficulties and found out Pepsi is the market leader in terms of sales volume in Jamshedpur city and if SMV BEVERAGES maintains its performance and eradicate some of its weakness then it will continue to be a market leader in future also.

Limitations

I faced a few difficulties while doing my research like

Attitude - The attitude of the shop owners towards us initially was not good. I had to overcome their inhibition towards me and win their confidence before getting a favorable response from them.
Language barrier - English was a major problem for the retailers as well as the consumers and I had to explain to them each question what it meant how to fill up the questionnaire.
Sample size – The sample size chosen was small keeping in consideration many factors and also area was restricted to Telco and Golmuri and not whole of Jamshedpur.
As the project involves the marketing research using questionnaire views expressed by the respondents are limited to the elements of the questionnaire. But I tried my best to get the clear picture of the situation.
Some of the dealers were very nervous about responding.
Some dealers were extremely unhappy with the company support.
I found so many scheme difference from place to place.
In some instances some respondents may not reveal the truth.

· Between the sender and the receiver due to differing perceptions, communication errors in the form of miscomprehension and selective perception may creep in. In this case too, these are unavoidable, and thus may add to slight inaccuracy in my results...

Recommendations and Observations

After analyzing the fact we came to the conclusion that PEPSI is undisputed market leader. This conclusion is based on overall information collected from various distributors, retailers, markets and consumers. They are having an edge over other soft drink producer in the market. They are doing very good in the current scenario, but they need some object oriented and bit dynamism in the strategy in the outskirt.

To increase the market Share penetration level must be increase. This can done by building good relationship with distributor, retailer and end user

All brands should be making available in all outlets. The distributor can do this with timeliness delivery. Availability will also increase visibilities, which in turn increase the sale.

To increase the visibility more visicooler can be distributed and display can be made.

Pepsi distributor can convince the retailer for entering into agreement for exclusive outlet with some extra benefit.

The company should concentrate more on After and Presales Services

There should be Good balance between Production and Sales.

like to recommend that SMV Beverages should provide schemes to the retailers during the peak season particularly the refilling scheme as it is the most popular. Also, because Pepsi and Mirinda are the most preferred flavors schemes should be given in the two flavors in particular.

i. The taste of the Pepsi Cola should be more strong.

ii. Pepsi can promote 7 up as the product for bars and restaurants in its ads.

iii. The standard of the service provided by the Pepsi needs to improve.

iv. Pepsi should come up with few more promotional campaigns.

Apart from this I would like to make a few more recommendations:

Salesman should be have more better and cordial relationship with the retailers in the interior areas and also with those retailers where sales are low as this can result in an increase in sales.
One complains from smaller retailers and those in the outskirts were that the supply is erratic with the salesman coming to their shops only twice a week and sometimes even once. I would like to recommend that company executives should visit the counter on a weekly basis and should also carry out surprise checks to improve the service.
At present there is no definite criterion for providing visi coolers, glow signs, dash boards and paintings to the retailers, as a result of which some retailers have more than one type of merchandise while some have none. I would like to recommend that a definite strategy should be worked out and handle it properly.
Regular visit by the company technician to solve problems regarding visi cooler should be arranged to achieve better sales.

Chapter – 3

References

Sites Visited

· www.google.com

· www.pepsico.com

· www.domain-b.com

· www.yahoo.com

· www.prdomain.com

Books Referred

· Philip Kotler

· Marketing Strategy Magazine

· Marketing management Magazine

Bibliography

· www.pepsizone.com

www.pepsico.com

Annexure

Name of the shop:-

Q1.1 How much of the business you do, from PEPSI?

0-10%.......................... 

11-25%........................ 

26-50%........................ 

51-75%........................ 

76-90%........................ 

91-100%...................... 

Q2.2 How frequently do you buy PEPSI?

Alternate day’s............. 

2-3 times a week......... 

Once a week................. 

Less frequently............. 

Q3.3 Which is your favourite C.S.D.?

PEPSI........................... 

7UP.............................. 

MERINDA (O)............. 

DEW............................ 

SLICE........................... 

Other (PLEASE WRITE IN)_______ 

Q4.4 How many of each of the following brands of C.S.D. do you own?

PEPSI........................... ____

7UP.............................. ____

MERINDA (O)............. ____

DEW............................ ____

SLICE........................... ____

Q5.5 How satisfied are you with the VISI COOLER of PEPSI?

Very satisfied............... 

Quite satisfied.............. 

Neither satisfied nor dissatisfied 