1

CHAPTER - 1

INTRODUCTION

1.1 Introduction

Customer satisfaction

Customer satisfaction, a business term, is a measure of how products and services

supplied by a company meet or surpass customer expectation. It is seen as a key performance

indicator within business and is part of the four perspectives of a Balanced Scorecard. In a

competitive marketplace where businesses compete for customers, customer satisfaction is

seen as a key differentiator and increasingly has become a key element of business strategy.

Measuring customer satisfaction

Organizations are increasingly interested in retaining existing customers while

targeting non-customers; measuring customer satisfaction provides an indication of how

successful the organization is at providing products and/or services to the market place.

Customer satisfaction is an ambiguous and abstract concept and the actual

manifestation of the state of satisfaction will vary from person to person and product/service to

product/service. The state of satisfaction depends on a number of both psychological and

physical variables which correlate with satisfaction behaviors such as return and recommend

rate. The level of satisfaction can also vary depending on other options the customer may have

and other products against which the customer can compare the organization's products.

Some customers have needs of which they are not fully conscious, or they cannot

articulate these needs, or they use words that require some interpretation. Even though the

company follows some effective marketing strategies, they may not be gain more number of

new customers. To know the marketing companies and offers on the basis of how well those

campaigns satisfy specific customer’s needs.

2

At present consumer behavior is very important in all aspects of marketing, retailing,

etc. therefore it is important know that the consumer behavior regarding the purchase process

and decision making. So, every marketer’s should be emphasized on consumer decision

making process.

In my present study at PEARL BOTTLING PVT. LIMITED on CONSUMER

BEHAVIOUR ON SOFT DRINKS, it was observed that the consumer behavior is classified

with respect to the internal and external behavior of an individual.

In my observation I have classified the entire project report with various chapters

and emphasized on the analysis with a presentable format. Consumer behavior has

traditionally been thought of as the study of “why people buy?” with the premise that it

becomes easier to develop strategies to influence consumers once a market knows the

reasons people buy specific soft drinks.

The study of consumer behavior was very important because, the consumer behavior

aspects will influence sales of the companies of the consumer are dissatisfied with the

product it will lead to great decline in the sales, so, every company must identify the needs

and consumer in advance and take necessary decision regarding their needs and wants and try

to satisfy the consumer through improvements in the soft drinks.

3

1.2 NEED FOR THE STUDY

The consumer behavior aspects will influence sales of the companies of the

consumer are dissatisfied with the product it will lead to great decline in the

sales.

Take necessary decision regarding their needs and wants and try to satisfy the

consumer through improvements in the soft drinks.

Consumer respond to the various marketing stimuli such as product, price,

promotion, and place.

Evoke a positive response in the consumer.

Easily design effective marketing strategies.

4

1.3 OBJECTIVE OF THE STUDY

To know the competitors of pearl bottling pvt. Limited

To know the effect of marketing activities on consumer awareness.

To study on consumer behavior towards pearl bottling pvt. Limited

To measure the effectiveness of advertisement in promoting the products

To analyze the consumer behavior in selecting the pearl bottling pvt. Limited

To highlight the customer views & suggestions regarding the overall performance of

the pearl bottling pvt. Limited.

5

1.4 METHODOLOGY OF THE STUDY

Systematic methodology is the key success of any research project as it has direct

bearing on the relevance of research findings. The purpose of research is to gather most

reliable and unbiased information through the application of scientific principles and

techniques.

The aim and methodology is a way to present a clear idea of the research procedures and

used in the study, method of sampling etc.

The research methodology is a way of systematically solving the research problem. It may be

understood as science of studying hoe research is done specifically. In it we study various

steps that are generally adopted by a researcher in studying his research problem along with

the logic behind them.

ANALYSIS OF PRIMARY DATA

Primary data was collected with the help of questionnaire targeting the retailers. The

questionnaire consists of fourteen questions, which gives us the necessary data.

SOURCES OF PRIMERY DATA

The primary data was collected through the survey method with the help of a structured

questionnaire distributed to a sample of different soft drink consumers in various places in

Srikakulam.

i) RESEARCH INSTRUMENT: Printer questionnaire was used as the research instrument

to collect the required information. Separate questionnaires were prepared for retailer survey

and interview was taken by the help of the questionnaire.

ii) AREA OF SURVEY:- The survey was conducted in the different localities of

Srikakulam City.

6

SAMPLING PLAN – SAMPLING PLAN CONSISTS OF:

a) SAMPLING UNIT:- The consumers of grocery shop, general store, departmental store

was selected from different place of Srikakulam.

b) SAMPLE SIZE:- for consumer’s survey, 200 consumers were taken as sample size.

c) SAMPLING PROCEDURE:- Cluster sampling producer was followed.

d) SAMPLING METHOD:- Data were collected by consumers. The consumer directly

conducted and interviewed at their counter and the different areas.

e) TIME PERIOD OF STUDY:- The survey was conducted during 6th

may to 10th

June

2012. Primary data is collected from the consumer through a structured questionnaire. It

includes the first hand information from the outlets. It can view as a survey. The

questionnaire was especially designed to find out the consumer taste and preferences of the

soft drinks and problems and weakness of Pepsi in that particular area. The chapter deals

with main analysis part of the study and the dealer outlets covered in the study is

7 Road Junction

Balaga Junction

Bankers Colony

Illisipuram Junction

SECONDARY DATA:

Secondary sources include the information collected from the annual reports,

published and unpublished records of the company, various books and journals and internet

also being used for collecting the relevant data.

After gathering the data from those two sources the data was analyzed, tabulated and

interpreted and finally suggestions were offered for the betterment of the company.

7

RESEARCH DESIGN:

In this research descriptive, research design was used because it finds out the

diagnostic information by asking the question like:

(a) What is it?

(b) Why is it?

(c) What it will be?

(d) What is should be?

Here it has been tired to analyze and describe about the reason behind the customer

satisfaction in Srikakulam Market and what measures should be applied.

SELECTION OF SAMPLES:

When a small group is taken as the representative of the whole, the study is taken as

sampling study. The whole group from which the samples have been drawn is technically

known as universe of population and the group selected for the study is known as sample.

In the present study the universe is the total population if the six selected areas:

1. 7 Road Junction

2. Balaga Junction

3. Bankers Colony

4. Illisipuram Junction

As the universe is too much large so I decided to take only 200 consumers in the

Srikakulam Market as our size for the convenience of my study. The sample is very small as

compared to the universe which may inconvenient yet it fulfills the aim of the topic selected

to be studied. As sampling method simple random sampling design was taken. Because the

samples or the respondents were selected on the random basis without any bios.

8

DATA COLLECSTION (TOOL AND TECHNIQUES USED)

Data are of two types i.e., Primary and Secondary. To collect primary data from

different source, along with samples, different tools and techniques will be used.

To collect data from a universe, along with samples, different tools and techniques

are used.

The methods of primary data collection i.e. adopted that present study are interview

method (structured), questionnaires method (both open and closed ended) and also the

observation method.

Also the secondary data were collected through newspapers, articles, and Internet.

DATA ANALYSIS (STATISTICAL TECHNIQUE)

The Statistical techniques used in the study are:

Pi-Chart

9

PROBLEM ENCOUNTERED

1. Most of the people to whom I was trying to convenience, were refusing to talk to me,

because they thought that I had come from some government organization or I was

doing this only to earn money.

2. Female respondents were avoiding to my questions due to their shy nature and also

due to their conservativeness.

3. The responders were not giving the accurate data about income and about his policy

adopted.

4. Now they have the awareness towards the soft drinks they have adopted so it was

difficult for them to tell about looses and benefits of the drinks.

5. Some time the respondents were feeling very irritated while talking with me.

6. Due to illiteracy and low education, some respondents were unable to tell anything

authentically and also they did not have any interest on my topic.

7. At that time one of the major problems was hot season. It was summer time and in

this time I have moving different areas for the data collection and created very big

problem to me.

DATA ANALYZING TOOLS:

After gathering the data from the Primary and secondary sources the data was analyzed,

tabulated and interpretations were written down with the help of graphs and charts, with the

help of Microsoft Excel and Microsoft Word.

10

1.5 LIMITATIONS OF THE STUDY

The present study is subject to the following limitations:

The sample size is not universal, some part of other cities remained uncovered

Unavailability of some information due to lack of awareness of consumers

Time and expenses were major constraints

The study of the soft drink industry which is known to be seasonally fluctuating one

percent study does not take into account seasonal fluctuations. The results may not

suit for all the seasons.

Personal basis may be existing as the consumer of varied nature elicits the

information.

11

CHAPTER-2

PROFILE OF INDUSTRY

2.1 INDUSTRY PROFILE:

INTRODUCTION:

Type Cola

Manufacturer PepsiCo

Country of origin United State

Introduced 1898 (as Brad’s Drink) June 16,1903 (as Pepsi-Cola)

1961 (as Pepsi)

Related products Fanta, Dr.Pepper, 7 Up, Im Bru, Cola

Turka, Big Cola

Website www.pepsi.com

Pepsi

Is a carbonated soft drink produced and manufactured by PepsiCo. The drink was first made

in the 1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was

trademarked on June 16, 1903. There have been many Pepsi variants produced over the years

since 1898.

Origins

The pharmacy of Caleb Bradham, with a Pepsi dispenser, as portrayed in a New Bern

exhibition in the Historical Museum of Bern.

12

It was first introduced as "Brad's Drink" in New Bern, North Carolina in 1898 by

Caleb Bradham, who made it at his pharmacy where the drink was sold. It was later named

Pepsi Cola, possibly due to the digestive enzyme pepsin and kola nuts used in the recipe.

Bradham sought to create a fountain drink that was delicious and would aid in digestion and

boost energy

In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to a rented

warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in

six-ounce bottles, and sales increased to 19,848 gallons. In 1909, automobile race pioneer

Barney Old-field was the first celebrity to endorse Pepsi-Cola, describing it as "A bully

drink...refreshing, invigorating, a fine bracer before a race". The advertising theme

"Delicious and Healthful" was then used over the next two decades. In 1926, Pepsi received

its first logo redesign since the original design of 1905. In 1929, the logo was changed again.

In 1931, at the depth of the Great Depression, the Pepsi-Cola Company entered

bankruptcy - in large part due to financial losses incurred by speculating on wildly

fluctuating sugar prices as a result of World War I. Assets were sold and Roy C. Megargel

bought the Pepsi trademark. Eight years later, the company went bankrupt again. Pepsi's

assets were then purchased by Charles Guth; the President of Loft Inc. Loft was a candy

manufacturer with retail stores that contained soda fountains. He sought to replace Coca-Cola

at his stores' fountains after Coke refused to give him a discount on syrup. Guth then had

Loft's chemists reformulate the Pepsi-Cola syrup formula.

On three separate occasions between 1922 and 1933, the Coca-Cola Company was offered

the opportunity to purchase the Pepsi-Cola company and it declined on each occasion.

Pepsi-Cola trademark

The original trademark application for Pepsi-Cola was filed on September 23, 1902

with registration approved on June 16, 1903. In the application's statement, Caleb Bradham

describes the trademark as an, "arbitrary hyphenated word "PEPSI-COLA," and indicated

that the mark was in continuous use for his business since August 1, 1901. The Pepsi-Cola's

description is a flavoring-syrup for soda water. The trademark expired on April 15, 1994.

13

A second Pepsi-Cola trademark is on record with the USPTO. The application date

submitted by Caleb Bradham for the second trademark is Saturday, April 15, 1905 with the

successful registration date of April 15, 1906, over three years after the original date.

Curiously, in this application, Caleb Bradham states that the trademark had been

continuously used in his business "and those from who title is derived since February 15,

1896." While Pepsi-Cola was filed in the same category of personal and legal and social

services in both applications, in the 1905 application the description submitted to the USPTO

was for a tonic beverage. The federal status for the 1905 trademark is registered and renewed

and is owned by PepsiCo, Inc. of Purchase, New York.

Pepsi Logo

In 1998

Rise

During the Great Depression, Pepsi gained popularity following the introduction in

1936 of a 12-ounce bottle. Initially priced at 10 cents, sales were slow, but when the price

was slashed to five cents, sales increased substantially. With a radio advertising campaign

featuring the jingle "Pepsi-Cola hits the spot / Twelve full ounces, that's a lot / Twice as

much for a nickel, too / Pepsi-Cola is the drink for you," arranged in such a way that the

jingle never ends. Pepsi encouraged price-watching consumers to switch, obliquely referring

14

to the Coca-Cola standard of six ounces per bottle for the price of five cents (a nickel),

instead of the 12 ounces Pepsi sold at the same price. Coming at a time of economic crisis,

the campaign succeeded in boosting Pepsi's status. In 1937 500,000,000 bottles of Pepsi were

consumed. From 1936 to 1938, Pepsi-Cola's profits doubled.

Pepsi's success under Guth came while the Loft Candy business was faltering. Since

he had initially used Loft's finances and facilities to establish the new Pepsi success, the near-

bankrupt Loft Company sued Guth for possession of the Pepsi-Cola company. A long legal

battle, Guth v. Loft, then ensued, with the case reaching the Delaware Supreme Court and

ultimately ending in a loss for Guth.

Niche marketing

1940s advertisement specifically targeting African Americans

Walter Mack was named the new President of Pepsi-Cola and guided the company

through the 1940s. Mack, who supported progressive causes, noticed that the company's

strategy of using advertising for a general audience either ignored African Americans or used

ethnic stereotypes in portraying blacks. He realized African Americans were an untapped

niche market and that Pepsi stood to gain market share by targeting its advertising directly

towards them. To this end, he hired Hennan Smith, advertising executive "from the Negro

newspaper field" to lead an all-black sales team, which had to be cut due to the onset of

World War II. In 1947, Mack resumed his efforts, hiring Edward F. Boyd to lead a twelve-

15

man team. They came up with advertising portraying black Americans in a positive light,

such as one with a smiling mother holding a six pack of Pepsi while her son (a young Ron

Brown, who grew up to be Secretary of Commerce) reaches up for one. Another ad

campaign, titled "Leaders in Their Fields", profiled twenty prominent African Americans

such as Nobel Peace Prize winner Ralph Bunche and photographer Gordon Parks.

Boyd also led a sales team composed entirely of blacks around the country to promote

Pepsi. Racial segregation and Jim Crow laws were still in place throughout much of the U.S.;

Boyd's team faced a great deal of discrimination as a result, from insults by Pepsi co-workers

to threats by the Ku Klux Klan. On the other hand, they were able to use racism as a selling

point, attacking Coke's reluctance to hire blacks and support by the chairman of Coke for

segregationist Governor of Georgia Herman Talmadge. As a result, Pepsi's market share as

compared to Coke's shot up dramatically. After the sales team visited Chicago, Pepsi's share

in the city overtook that of Coke for the first time.

This focus on the market for black people caused some consternation within the

company and among its affiliates. They did not want to seem focused on black customers for

fear white customers would be pushed away. In a meeting at the Waldorf-Astoria Hotel,

Mack tried to assuage the 500 bottlers in attendance by pandering to them, saying, "We don't

want it to become known as a nigger drink." After Mack left the company in 1950, support

for the black sales team faded and it was cut.

Marketing

Pepsi logo (1973-87). In 1987, the font was modified slightly to a more rounded

version which was used until 1991. This logo was used for Pepsi throwback in 2010

Other current Pepsi logo (2003-2010). Pepsi Wild Cherry and Pepsi ONE still use this design

as do most countries as of November 2009.

16

Pepsi bottle in Mexico.

As of November 2009, this logo is still in use in Mexico and most countries.

In 1975, Pepsi introduced the Pepsi Challenge marketing campaign where PepsiCo

set up a blind tasting between Pepsi-Cola and rival Coca-Cola. During these blind taste tests

the majority of participants picked Pepsi as the better tasting of the two soft drinks. PepsiCo

took great advantage of the campaign with television commercials reporting the results to the

public.

In 1976 Pepsi, RKO Bottlers in Toledo, Ohio hired the first female Pepsi salesperson,

Denise Muck, to coincide with the United States bicentennial celebration.

In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy. By

2002, the strategy was cited by Promo Magazine as one of 16 "Ageless Wonders" that

"helped redefine promotion marketing."

In 2007, PepsiCo redesigned their cans for the fourteenth time, and for the first time,

included more than thirty different backgrounds on each can, introducing a new background

every three weeks. One of their background designs includes a string of repetitive numbers

73774. This is a numerical expression from a telephone keypad of the word "Pepsi."

In late 2008, Pepsi overhauled their entire brand, simultaneously introducing a new

logo and a minimalist label design. The redesign was comparable to Coca-Cola's earlier

simplification of their can and bottle designs. Also in 4th quarter of 2008 Pepsi teamed up

with Google/You Tube to produce the first daily entertainment Show on YouTube, Pop tub.

This daily show deals with pop culture, internet viral videos, and celebrity gossip. Pop tub is

updated daily from Pepsi.

17

Since 2007, Pepsi, Lay's, and Gatorade have had a "Bring Home the Cup," contest for

Canada's biggest hockey fans. Hockey fans were asked to submit content (videos, pictures or

essays) for a chance at winning a party in their hometown with the Stanley Cup and Mark

Messier.

In 2009, "Bring Home the Cup," changed to "Team Up and Bring Home the Cup." The new

installment of the campaign asks for team involvement and an advocate to submit content on

behalf of their team for the chance to have the Stanley Cup delivered to the team's hometown

by Mark Messier.

Pepsi has official sponsorship deals with three of the four major North American

professional sports leagues: the National Football League, National Hockey League and

Major League Baseball. Pepsi also sponsors Major League Soccer.

Pepsi also has sponsorship deals in international cricket teams. The Pakistan cricket

team is just one of the teams that the brand sponsors. The team wears the Pepsi logo on the

front of their test and ODI test match clothing.

On July 6, 2009, Pepsi announced it would make a $1 billion investment in Russia

over three years, bringing the total Pepsi investment in the country to $4 billion.

In July 2009, Pepsi started marketing itself as Pepsi in Argentina in response to its

name being mispronounced by 25% of the population and as a way to connect more with all

of the population.

In October 2008, Pepsi announced that it would be redesigning its logo and re-

branding many of its products by early 2009. In 2009, Pepsi, Diet Pepsi and Pepsi Max began

using all lower-case fonts for name brands, and Diet Pepsi Max was re-branded as Pepsi

Max.

The brand's blue and red globe trademark became a series of "smiles," with the

central white band arcing at different angles depending on the product. Pepsi released this

logo in U.S. in late 2008, and later it was released in 2009 in Canada, Brazil, Bolivia,

Guatemala, Nicaragua, Honduras, El Salvador, Colombia, Argentina, Puerto Rico, Costa

Rica, Panama, Chile, Dominican Republic, the Philippines and Australia; in the rest of the

18

world the new logo will be released in 2010. As of Present, The UK has started to use the

new Pepsi logo on cans in a different ordered style to the US can.

Pepsi and Pepsi Max cans and bottles in Australia now carry the localized version of

the new Pepsi Logo. The word Pepsi and the logo are in the new style, while the word "Max"

is still in the previous style. Pepsi Wild Cherry continues to carry the 2003 Pepsi design on

bottles and cans as of November 2009.

Rivalry with Coca-Cola

Main article: Cola Wars

According to Consumer Reports, in the 1970s, the rivalry continued to heat up the

market. Pepsi conducted blind taste tests in stores, in what was called the "Pepsi Challenge".

These tests suggested that more consumers preferred the taste of Pepsi (which is believed to

have more lemon oil, less orange oil, and uses vanillin rather than vanilla) to Coke. The sales

of Pepsi started to climb, and Pepsi kicked off the "Challenge" across the nation. This

became known as the "Cola Wars."

In 1985, The Coca-Cola Company, amid much publicity, changed its formula. The

theory has been advanced that New Coke, as the reformulated drink came to be known, was

invented specifically in response to the Pepsi Challenge. However, a consumer backlash led

to Coca-Cola quickly introducing a modified Version of the original formula (removing the

expensive Haitian lime oil and changing the sweetener to corn syrup) as Coke "Classic".

According to Beverage Digest's 2008 report on Carbonated Soft Drinks (CSD),

PepsiCo's U.S. market share is 30.8 percent, while The Coca-Cola Company's is 42.7

percent. Coca-Cola outsells Pepsi in most parts of the U.S., notable exceptions being central

Appalachia, North Dakota, and Utah. In the city of Buffalo, New York, Pepsi outsells Coca-

Cola by a two-to-one margin.

Overall, Coca-Cola continues to outsell Pepsi in almost all areas of the world.

However, exceptions include India; Saudi Arabia; Pakistan (Pepsi has been a dominant

sponsor of the Pakistan cricket team since the 1990s); the Dominican Republic; Guatemala

the Canadian provinces of Quebec, Newfoundland and Labrador, Nova Scotia, and Prince

Edward Island; and Northern Ontario.

19

Pepsi had long been the drink of Canadian Francophone and it continues to hold its

dominance by relying on local Québécois celebrities (especially Claude Meunier, of La

Petite Vie fame) to sell its product. PepsiCo use the slogan "here, it's Pepsi" (Ice, c'est Pepsi)

to answer to Coca-cola publicity "Everywhere in the world, it's Coke" (Partout dans le

monde, c'est Coke).

By most accounts, Coca-Cola was India's leading soft drink until 1977 when it left

India after a new government ordered The Coca-Cola Company to turn over its secret

formula for Coke and dilute its stake in its Indian unit as required by the Foreign Exchange

Regulation Act (FERA). In 1988, PepsiCo gained entry to India by creating a joint venture

with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas

India Limited. This joint venture marketed and sold Lehar Pepsi until 1991 when the use of

foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in

1994. In 1993, The Coca-Cola Company returned in pursuance of India's Liberalization

policy. In 2005, The Coca-Cola Company and PepsiCo together held 95% market share of

soft-drink sales in India. Coca-Cola India's market share was 52.5%

A sticker from a USSR-produced Pepsi bottle.

In Russia, Pepsi initially had a larger market share than Coke but it was undercut once

the Cold War ended. In 1972, PepsiCo Company struck a barter agreement with the then

government of the Soviet Union, in which PepsiCo was granted exportation and Western

marketing rights to Stolichnaya vodka in exchange for importation and Soviet marketing of

Pepsi-Cola. This exchange led to Pepsi-Cola being the first foreign product sanctioned for

sale in the U.S.S.R.

Reminiscent of the way that Coca-Cola became a cultural icon and its global spread

spawned words like "coca colonization", Pepsi-Cola and its relation to the Soviet system

turned it into an icon. In the early 1990s, the term "Pepsi-stroika" began appearing as a pun

on "perestroika", the reform policy of the Soviet Union under Mikhail Gorbachev. Critics

viewed the policy as a lot of fizz without substance and as an attempt to usher in Western

products in deals there with the old elites. Pepsi, as one of the first American products in the

Soviet Union, became a symbol of that relationship and the Soviet policy. This was reflected

in Russian author Victor Pelevin's book "Generation P".

20

In 1989, Billy Joel mentions the rivalry between the two companies in the song

"WeDidn’t Start the Fire". The line "Rock & Roll and Cola Wars" refers to Pepsi and Coke's

usage of various musicians in their advertising campaigns. Coke used Paula Abdul, while

Pepsi used Michael Jackson. They then continued to try to get other musicians to advertise

their beverages.

In 1992, following the Soviet collapse, Coca-Cola was introduced to the Russian

market. As it came to be associated with the new system and Pepsi to the old, Coca-Cola

rapidly captured a significant market share that might otherwise have required years to

achieve. By July 2005, Coca-Cola enjoyed a market share of 19.4 percent, followed by Pepsi

with 13 percent.

Pepsi did not sell soft drinks in Israel until 1992. Many Israelis and some American

Jewish organizations attributed Pepsi's previous reluctance to do battle to the Arab boycott.

Pepsi, which has a large and lucrative business in the Arab world, denied that. It said

economic rather than political reasons kept it out of Israel.

Slogans

A large advertisement made to resemble a Pepsi cup at Nickelodeon Universe in the Mall of

America.

21

1939–1950: "Twice as Much for a Nickel"

1950: "More Bounce to the Ounce"

1950–1957: "Any Weather is Pepsi Weather"

1957–1958: "Say Pepsi, Please"

1958–1961: "Be Sociable, Have a Pepsi"

1961-1963: "Now It's Pepsi for Those Who Think Young" (jingle sung by Joanie

Sommers)

1963–1967: "Come Alive, You're in the Pepsi Generation" (jingle sung by Joanie

Sommers)

1967–1969: "(Taste that beats the others cold) Pepsi Pours It On".

1969–1975: "You've Got a Lot to Live, and Pepsi's Got a Lot to Give"

1975–1977: "Have a Pepsi Day"

1977–1980: "Join the Pepsi People (Feeling Free)"

1980–1981: "Catch That Pepsi Spirit" [David Lucas, composer]

1981–1983: "Pepsi's got your taste for life"

1983: "It's cheaper than Coke!"

1983–1984: "Pepsi Now! Take the Challenge!"

1984–1991: "Pepsi. The Choice of a New Generation" (commercial with Michael

Jackson and The Jacksons, featuring Pepsi version of Billie Jean)

1984-1988: "Diet Pepsi. The Choice of a New Generation"

1988-1989: "Diet Pepsi. The Taste That's Generations Ahead"

1989-1990: "Diet Pepsi. The Right One"

1989-1992: "Diet Pepsi. The Taste That Beats Diet Coke"

1986–1987: "We've Got The Taste" (commercial with Tina Turner)

1987–1990: "Pepsi's Cool" (commercial with Michael Jackson, featuring Pepsi

version of Bad)

1990–1991: "You got the right one Baby UH HUH" (sung by Ray Charles for Diet

Pepsi)

1990–1991: "Yehi hai right choice Baby UH HUH" (Hindi - meaning "This is the

right choice Baby UH HUH") (India)

1991–1992: "Gotta Have It"/"Chill Out"

1992–1993: "Be Young, Have Fun, Drink Pepsi"

1993–1994: "Right Now" Van Halen song for the Crystal Pepsi advertisement.

1994–1995: "Double Dutch Bus" (Pepsi song sung by Brad Bentz)

22

1995: "Nothing Else is a Pepsi"

1995–1996: "Drink Pepsi. Get Stuff." Pepsi Stuff campaign

1996–1997: "Pepsi: There’s nothing official about it" (During the Wills World Cup

(cricket) held in India/Pakistan/Sri Lanka)

1997–1998: "Generation Next" - with the Spice Girls.

1998–1999: "It's the cola" (100th anniversary commercial)

1999–2000: "For Those Who Think Young"/"The Joy of Pepsi-Cola" (commercial

with Britney Spears/commercial with Mary J. Blige)

1999-2006: "Yeh dil maange more" (Hindi - meaning "This heart asks for more")

(India)

2003: "It's the Cola"/"Dare for More" (Pepsi Commercial)

2005–2006: "An ice cold Pepsi. It's better than sex!" (Larry Sypolt)

2006–2007: "Why You Doggin' Me"/"Taste the one that's forever young"

Commercial featuring Mary J. Blige

2007–2008: "More Happy"/"Taste the once that's forever young" (Michael

Alexander)

2008: "Pepsi Stuff" Super Bowl Commercial (Justin Timberlake)

: "Pepsi is #1" TV commercial (Luke Rosin)

–present: "Something for Everyone."

–present: "Refresh Everything"/"Every Generation Refreshes The World"

–present: "Yeh hai youngistaan meri jaan" (Hindi - meaning "This is our young

country my baby") (India)

–present: "My Pepsi My Way"(India)

–present: "Refresca tu Mundo" (Spanish - meaning "Refresh your world") (Latin

America)

-present: "Every Pepsi refreshes the world."

-present "Pepsi. Sarap Magbago." (Philippines)

23

Pepsi man

Pepsi man is an official Pepsi mascot from Pepsi's Japanese corporate branch. The

design of the Pepsi man character is attributed to Canadian comic book artist Travis Charest

created sometime around the mid 1990s. Pepsi man took on three different outfits; each one

representing the current style of the Pepsi can in distribution. Twelve commercials were

created featuring the character. His role in the advertisements is to appear with Pepsi to

thirsty people or people craving soda. Pepsi man happens to appear at just the right time with

the product. After delivering the beverage, sometimes Pepsi man would encounter a difficult

and action oriented situation which would result in injury.

In 1996, Sega-AM2 released the Sega Saturn version of their arcade fighting

game Fighting Vipers. In this game Pepsi man was included as a special character, with his

specialty listed as being the ability to "quench one's thirst". He does not appear in any other

version or sequel. In 1999, KID developed a video game for the PlayStation entitled Pepsi

man. As Pepsi man, the player runs, skateboards, rolls, and stumbles through various areas,

avoiding dangers and collecting cans of Pepsi all while trying to reach a thirsty person as in

the commercials.

Colas

'Edge'

: PepsiCo's new drink (Vanilla flavored.)

Pepsi

: PepsiCo's signature cola flavor and its namesake cola.

Diet Pepsi

: Artificial-sweetener variant

Pepsi Free

The first major-brand caffeine-free cola introduced in 1982. Currently marketed

as Caffeine-Free Pepsi and Caffeine-Free Diet Pepsi.

24

Pepsi Max: Low-calorie, sugar-free version of Pepsi.

Crystal Pepsi

: Clear cola; sold from 1992–1993.

Crystal from Pepsi

: Citrus-flavored reformulation of Crystal Pepsi.

Pepsi Clear

: Clear soda released in Mexico as a limited edition during Christmas 2005, the

Mexican equivalent of Crystal Pepsi

Pepsi AM

: Increased caffeine; marketed as a morning drink. Sold 1989–1990.

Pepsi Boom

: Caffeine, sugar and artificial sweetener-free. Sold in Germany, Italy and Spain

Pepsi Fresh

: Introduced Summer 2007

Pepsi Natural (Pepsi Raw in United Kingdom): Containing only "natural ingredients".

Released in select markets in U.S. and Mexico in 2009.

Pepsi Shiso

Introduced only in Japan as a limited edition for summer 2009, its transparent green.

Size: 147ml can, price: 147 yen. Also available in 500ml plastic bottles. Shiso in English is

"labiate" or "perilla".

Pepsi NEX

Zero calories. Distributed by Suntory.

25

Pepsi Blue

Blue-colored berry-flavored soda. Available 2002–2004 in the U.S.; remains available

in other countries.

Pepsi Blue Hawaii

Blue-colored, pineapple and lemon flavored. Released in Japan.

Pepsi Carnival

Tropical fruit-flavored, Introduced in Japan for a limited time summer 2006. Later

released as Pepsi Summer Mix in 2007 in the U.S.

Pepsi Fire

Limited edition, cinnamon-flavored. Sold in Guam, Saipan, Thailand, Mexico,

Malaysia, Singapore and the Philippines.

Pepsi Gold

Gold-colored, ginger-flavored variant available as part of a 2006 FIFA World Cup and

ICC Cricket World Cup 2007 promotion. Sold in Southeast Asia, Central Europe and Russia.

Pepsi Green

Bright-green variety introduced in Thailand in early 2009.

Pepsi Holiday Spice

Seasonal, cinnamon-flavored variant available fall 2004 and 2006 in the U.S. and

Canada.

Christmas Pepsi

Similar to Holiday Spice, with nutmeg and cocoa added to the ingredients list.

Available during 2007–2008 holiday seasons.

26

Pepsi Ice

Icy mint flavor. Sold in Guam, Thailand, Malaysia, Singapore and the Philippines. In

summer 2007, Pepsi used the name Pepsi Ice in the Czech Republic and Slovakia for a

limited edition cola with apple flavor.

Pepsi Ice Cucumber

Limited edition green, cucumber-flavored Pepsi sold in Japan in summer 2007.

Pepsi Jazz

Jazz with Black Cherry and French Vanilla, Jazz with Strawberries and Cream, and

Caramel Cream made in 2006.

Pepsi Kona

Coffee-flavored, test-marketed on the U.S. East Coast.

Pepsi Kick

Regular formula, with Ginseng and higher amount of caffeine. Uses the recent Pepsi

logo. Sold only in Latin America.

Lemon Pepsi

Lemon-flavored, available as a promotion for the beginning of the 2008 NFL season.

Pepsi Lime

Lime-flavored, introduced in spring 2005.

27

Pepsi Limon

Lime-flavored, released in Mexico in 2002. Re-introduced as Pepsi Twist in 2004,

since discontinued.

Pepsi A-ha

Lemon-flavored, sold in India.

Pepsi ONE

One-calorie Pepsi. Introduced in 1997.

Pepsi Raging Razz berry

Raspberry-flavored, available in 1991.

Pepsi Raw

British name for Pepsi Natural

Pepsi Red

Spicy, ginger-flavored. Released in Japan in 2006.

Pepsi Retro

With "natural" ingredients (sugar cane and kola nut extract). Released in Mexico in

February 2008, relaunched as Pepsi Natural in August 2009.

Pepsi Samba

Tropical-flavored (mango and tamarind). Introduced in Australia in 2005.

Pepsi Si

Marketed in predominantly Hispanic areas.

28

Pepsi Strawberry Burst

Pepsi Summer Chill

Apple-flavored, sold in Poland during summer 2007. Marketed as Pepsi Ice in the

Czech Republic and Slovakia.

Pepsi Summer Mix

Pepsi with tropical fruit flavors. Available in 2007 in limited areas.

Pepsi Throwback

Sweetened with sugar instead of high-fructose corn syrup, no citric acid, and in retro-

styled packaging. Brought back in December 2009 for 8 weeks after fan requests. As of

3/3/10 it is planning a possible world tour.

Pepsi Tropical Chill

Pepsi Tropical

Tropical-flavored, available in the U.S., U.K. and Japan in late 1994.

Pepsi Twist

Lemon-flavored

Pepsi Twist Mojito

Mojito and lemon-flavored. Non-alcoholic. Sold in Italy.

Pepsi Twistão

Strong lemon flavor, sold during summertime in Brazil. "Twistão", in Portuguese, is

the augmentative of "Twist".

29

Pepsi Vanilla

Vanilla-flavored, released in Canada and the U.S. in 2003 in response to Vanilla Coke.

Marketed as Pepsi Ice Cream in Russia.

Pepsi White

Yogurt-flavored, available in Japan.

Pepsi Wild Cherry

Cherry-flavored, introduced in 1988 as "Wild Cherry Pepsi". Changed name and

formula in 2005. Still uses the 2003 Pepsi design as of September 2009.

Pepsi 100

Available in 1998 for the anniversary of the drink and in 2003 for the anniversary of

the name "Pepsi".

Ingredients

Pepsi is made with carbonated water, high fructose corn syrup, caramel color, sugar,

phosphoric acid, caffeine, citric acid and natural flavors. A can of Pepsi (12 fl ounces) has 41

grams of carbohydrates (all from sugar), 30 mg of sodium, 0 grams of fat, 0 grams of protein,

38 mg of caffeine and 150 calories. The caffeine-free Pepsi-Cola contains the same

ingredients but without the caffeine.

The original Pepsi-Cola recipe was available from documents filed with the court at the time

that the Pepsi-Cola Company went bankrupt in 1929. The original formula contained neither

cola nor caffeine.

Competitors

-Cola

. Cola

30

ORGANISATION PROFILE-PEPSI CO. INC:

Pepsi co, INC is founded by DONALD M.KENDALL, President and chief executive

officer of Pepsi-cola and HERMAN W.LA Y Chairman &chief executive of Frito- Lay

through the Merger of two companies in the year 1965. CALEB BRADHAM, a New Bern,

created Pepsi-cola in the late 1890’s; C. Pharmacist, FRITO-LA Y, Inc. was formed by

ELEMER DOOLIN in 1932.

Major Products Of The New Companies Are:

Pepsi-cola Company----------- Pepsi -cola (formulated in 1898), Diet Pepsi (1964),

Mountain Dew (introduced by T.P Corporation 1948). Frito-lay Inc-----Fritos brand corn

chips, lay's brand potato chips, cheetos brand cheese flavored snacks, Ruffles brand potato

chips& Rold gold brand petzels.

Pepsi co, Inc. is among the most successful consumer products co in the world, with

1998 revenues of over $22 billion & 1,5 1,000 Employees. Pepsi company's brand names are

among the best known &most respected in the world. Some of the Pepsi Company's brand

names are 100 years old.

Frito-lay Company is the world's largest manufacturers and distributors of snack chip

and Tropicana products, Inc., is the world's largest marketer and producer of branded juices.

Pepsi Company's success is the result of

(a) Superior products

(b) High standards of performance

(c) Distinctive competitive strategies

(d) High integrity of its work force

Pepsi co., Inc., world head quarter is located in purchase, New York

31

PEPSI-COLA COMPANY

Calets Brabdham, a NEW BERU, and M. C. Druggist who first formulated Pepsi-

cola founded Pepsi Company's beverage business at the turn of the century.

Brand Pepsi and other Pepsi-cola products including diet Pepsi one, mountain dew

slice and mug brands account for nearly 1/3 of total soft drink in United States.

Out side U.S., Pepsi-cola company's soft drinks operations include the business of 7 -

up international. Pepsi-cola beverages are available in about 170 countries.

Pepsi-cola began selling its products internationally in the year 1934 with its

operations in Canada.

Key Pepsi-cola international markets include Argentina, Brazil, China, India, Mexico,

Philippines, Saudi Arabia, Spain, Thailand and United Kingdom.

Pepsi-cola provides advertising, marketing, sales and promotion support to Pepsi-cola

bottlers.

This includes some of the worlds best loved and most recognizing. New advertising

and existing promotions keep Pepsi-cola brands young.

The company manufactures and sells soft drink concentrate to Pepsi-cola bottlers.

1966 Pepsi enters Japan and Eastern Europe 1967 Pepsi Co. stock splits two-for one.

1968 North American van lines (NAVL) a premier transportation company, Pepsi co.,

and remained a strong contributor to Pepsi until it has divested in 1984.

1969 Bold modern Pepsi-cola packaging using red, white & blue is introduced. Frito-

Iay introduces Funyuns brand onion flavored snacks.

1970 Pepsi introduces the industry's first two liter bottles. Pepsi is the first company

to respond to consumer preference with lightweight, recyclable. Plastic bottles.

1971 Andrall E.Pearson is appointed president of Pepsi co., a position he holds unti I

his retirement in 1984.

32

1972 Don Kendrall announces agreement-making Pepsi-cola the first foreign product

sold in the then U.S.S.R. Pepsi co. is given exclusive rights to import Stolichnaya Russian

vodka in the U.S.

1974 Pepsi-cola becomes the first American consumer product to be produced,

marked and sold in the former Soviet Union.

1975 Pepsi Light, with a distinctive lemon taste, is introduced as an alternative to

traditional diet colas.

1976 Pepsi co. adopts code of worldwide business conduct. Pepsi-cola becomes the

single largest selling soft drinks brand sold in U.S. super markets.

1977 Pepsi co. stock splits three for one.

1979 Opening of Pepsi co. Research and technical center in Vallah, N.Y. Pepsi co. reaches

85 billion make in sales. Pepsi introduces twelve-pack cans.

1980 Pepsi co. food service international (PFSI) is formed to focus on over seas

development of restaurants.

1981 Pepsi co. fitness center is completed, making Pepsi co., one of the most

advanced companies in the area of employees' health & fitness.

1982 Pepsi free & Diet Pepsi free, the first major brand caffeine free colas are

introduced.

Inauguration of the first Pepsi-cola operation in China

1983 The Bottler Hall of Fame is established to recognize the achievement &

dedication of international bottlers.

1984 Diet Pepsi is reformulated with 100% Nutra Sweet, slice and Diet slice, the first

major soft drinks with fruit juice, are introduced.

33

1985 Pepsi companies first line of sweet snacks, sonrics is added in Mexico. The cola

war takes "one grant sip for mankind ", when a Pepsi "space can" is successfully tested

abroad the space shuttle.

1986 Pepsi co. Board of Directors visits the people's Republic of China to mark the

opening Pepsi's second bottling plant in China.

1987 Pepsi-cola Company moves to new head quarters in somersw, N.Y. Pepsi

sponsors tour of major music stars, including Miami sound Machine, David BowIe and Tina-

Tuner.

1988 Pepsi-Cola Company is re-organized along geographic lines- East, West, south

and Central Regions- each with its own president and senior management staff.

1989 Pepsi Company introduces share power stock option program for all employees

becoming the first large corporation to award stock options to virtually all fulltime

employees.

1990 Pepsi company named one of the fortune magazine's top 1 0 " most admired

corporations" for the second year in a row.

Pepsi signs the largest commercial trade agreement in history with the Soviet Union,

expecting sales in the U.S.S.R, to double by the end of the century. Pepsi re- entered the

Indian market in collaboration with Punjab Agro Industries Corporation (PAIC).

1991 Pepsi Company named one of the Fortune Magazines top 10 "most admired

corporations" for the 3rd year in a row.

Pepsi-cola introduces a new logo, its eighth in the year 1993.

Pepsi-cola forms joint venture with Thomas j. Lipton Company to develop and

market tea -based drinks.

Pepsi Company named one of fortune Magazines top 10 "most admired corporations

for the 4th year in a row.

34

Pepsi Company purchases an equity position 111 carts of Colors, Inc. the leading

manufacturer and marketer of mobile merchandising equipment. It is sold in 1995.

1993 Pepsi -cola begins distribution of Lipton's line of ready to drink teas nationwide.

Pepsi introduces "the cube" an innovation 24-can multipack that satisfies growing consumer

demand for convenient large size soft drink packaging.

Pepsi-cola international introduces Pepsi max, a soft drink with unique blend of

sweeteners that delivers maximum cola taste in a no-sugar product.

1994 Pepsi introduces Aquafina bottled water into test market.

1995 7 up international launches 7-up ice cola, a new clear cola. Pepsi Company

introduced lay's brand potato chips in 20 markets throughout the world.

1996 Pepsi co is on-line at

http://www.pepsico.com/launches and international operations combined into Pepsi-

cola Company. 1997 Pepsi Company announces plans to spin off its restaurants business as

an independent publicly traded company sell its food distribution company and focus on its

core beverage and snack food business. The spinoff is completed on October 6, 1997.

Shareholders receive one share in the new company, tricon Global Restaurants Inc.,

for every 10 shares they hold in Pepsi co. Inc. 1998 Pepsi-cola celebrates 100th Anniversary

with first worldwide bottlers conference held in Hawaii, the event is held during the same

time as first bottler's conference.

Pepsi-cola introduces two-liter plastic bottles with built in "grip handle" that makes it

easier to grip and pour.

Cadbury Schweppes pk. Agrees to purchase E.Wedel S.A Chocolate business from

Pepsi Company.

1999 In March the Pepsi Bottling group, the world's largest Pepsi bottler, begins

trading on the New York stock exchange. Pepsi-cola teams up with yahoo Inc. the biggest

web navigation company in a multimedia marketing campaign aimed at teens and young

adults.

35

Pepsi Company named to Fortune Magazine's list of "the fifty best companies for

Asians, Blacks and Hispanies". Aquafina to become official

Beverage sponsor of the All-American soccer stars victory tour.

2000 Pepsi-cola company launches new beverage line of fruit drinks (apple raspberry,

peach papaya, pink lemonade, strawberry melon, newgerine citrus).

Pepsi-cola re-introduced the Pepsi Company one of America's "50 best companies for

minorities". Chemicals used are ferrous, sulphate calcium hydroxide and chlorine initially

water is treated with all these chemicals in the treatment tank and become purified.

Pepsi Co is a world leader in convenient food and beverages, with revenues of about

$25 billion and over 142,000 employees. The company consists of the snack business of

Frito-Lay North America and the beverage Ana food businesses of PepsiCo Beverages and

Foods. Which includes Pepsi Co Beverages and Foods, which includes Pepsi Co Beverages

North America (Pepsi-Cola North America and Gatorade /

Tropicana North America) and Quaker Foods North America. PepsiCo International

includes the snack businesses of Frito-Lay International and beverage businesses of PepsiCo

Beverages International. PepsiCo brands are available in nearly 200 countries and territories.

Many of PepsiCo's brand names are over l00-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's success is the result of superior products, high standards of performance,

distinctive competitive strategies and the high integrity of our people.

Our 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.

36

SHAREHOLDERS

PepsiCo (symbol: PEP) shares are traded principally on the EW York Stock

Exchange in the United States. The company is also listed on the Amsterdam, Chicago,

Swiss and Tokyo stock exchanges. PepsiCo has consistently paid cash dividends since the

corporation was founded.

CORPORATE CITIZENSHIP

PepsiCo believes that as a corporate citizen, it has a responsibility to contribute to the

quality of life in our communities. This philosophy is put into action through support of

social agencies, projects and programs. The scope of this support is extensive - ranging from

sponsorship of local programs and .Support of employee volunteer activities, to contributions

of time, talent and funds to programs of national impact. Each division is responsible for its

own giving program. Corporate giving is focused on giving where PepsiCo employees

volunteer.

PEPSICO HEADQUARTERS

PepsiCo World Headquarters IS located in Purchase, New York, approximately 45

minutes from New York City. The seven building headquarters complex was designed by

Edward Durrell Stone, one of America's foremost architects. The building occupies 10 acres

of a 144-acre complex that includes the Donald M. Kendall Sculpture Gardens, a world

acclaimed sculpture collection in a garden setting.

The collection of works is focused on major twentieth century art, and features works

by masters such as Augusta Rodin, Henri Laurens, Henry Moore, Alexander Calder, Alberto

Giacometti, Arnaldo Pomodoro and Claes Oldenberg. The gardens were originally designed

by the world famous garden planner, Russell Page, and have been extended by Franyois

Goffinets. The grounds are open to the public, and a visitor's booth is in operation during the

spring and summer.

PepsiCo's snack food operations had their start in 1932 when two separate events took

place. In San Antonio, Texas, Elmer Doolin bought the recipe for an

37

Unknown food product - a corn chip - and started an entirely new industry. The

product was Fritos brand corn chips, and his firm became the Frito Company.

That same year in Nashville, Tennessee, Herman W. Lay started his own business

distributing potato chips. Mr. Lay later bought the company that supplied him with product

and changed its name to H.W. Lay Company. The Frito Company and H.W. Lay Company

merged in 1961 to become Frito-Lay, Inc.

Today, Frito-Lay brands account more than half of the U.S. snack chip industry.

PepsiCo began its international snack food operations in 1966. Today, with

operations in more than 40 countries, it is the leading multinational snack chip company,

accounting for more than one quarter of international retail snack chip sales. Products are

available in some 120 countries. Frito-Lay North America includes Canada and the United

States. Major Frito-Lay International markets include Australia, Brazil, Mexico, the

Netherlands, South Africa, the United Kingdom and Spain.

Often Frito-Lay products are known by local names. These names include Matutano

in Spain, Sabritas and Gamesa in Mexico, Elma Chips in Brazil, Walkers in the United

Kingdom and others. The company markets Frito-Lay brands on a global level, and

introduces unique products for local tastes.

Major Frito-Lay products include Ruffles, Lay's and Doritos brands snack chips.

Other major brands include Cheetos cheese flavored snacks, Tostitos tortilla chips, Santitas

tortilla chips, Rold Gold pretzels and Sun Chips multi grain snacks. Frito Lay also sells a

variety of snack dips and cookies, nuts and crackers.

PEPSI – COLA

PepsiCo's beverage business was founded at the turn of the century by Caleb

Bradham, a New Bern, North Carolina druggist, who first formulated Pepsi Cola. Today

consumers spend about $33 billion on Pepsi-Cola beverages.

Brand Pepsi and other Pepsi-Cola products - including Diet Pepsi, Pepsi-One,

Mountain Dew, Slice, Sierra Mist and Mug brands - account for nearly one-third of total soft

drink sales in the United States, a consumer market totaling about $60 billion.

38

Pepsi-Cola also offers a variety of non-carbonated beverages, including Aquafina

bottled water, Fruit works and All Sport.

In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today Lipton is

the biggest selling ready-to-drink tea brand in the United States. Pepsi Cola also markets

Frappuccino ready-to-drink coffee through a partnership with Starbucks.

In 2001 SoBe became a part of Pepsi-Cola. SoBe manufactures and markets an

innovative line of beverages including fruit blends, energy drinks, dairy-based drinks, exotic

teas and other beverages with herbal ingredients.

Outside the United States, Pepsi-Cola soft drink operations include the business of

Seven-Up International. Pepsi-Cola beverages are available in about 160 countries and

territories.

Pepsi-Cola began selling its products internationally in 1934 with its operations in

Canada. Operations grew rapidly beginning in the 1950s. In addition to brands marketed in

the United States, major products include Mirinda and Pepsi Max. Pepsi-Cola North America

includes the United States and Canada. Key international markets include Argentina, Brazil,

China, India, Mexico, Philippines, Saudi Arabia, Spain, Thailand and the United Kingdom.

PepsiCo Beverages International also produces, sells and distributes Gatorade sports drinks

as well as Tropicana and other juices internationally.

Pepsi-Cola provides advertising, marketing, sales and promotional support to Pepsi-

Cola bottlers and food service customers. This includes some of the world's best-loved and

most-recognized advertising. New advertising and exciting promotions keep Pepsi-Cola

brands young.

The company manufactures and sells soft drink concentrate to Pepsi-Cola bottlers.

The company also provides fountain beverage products.

39

GATORADE & TROPICANA

Tropicana was founded in 1947 by Anthony Rossi as a Florida fruit packaging business. The

company entered the concentrate orange juice business in 1949, registering Tropicana as a

trademark.

In 1954 Rossi pioneered a pasteurization process for orange juice. For the first time,

consumers could enjoy the fresh taste of pure not-from-concentrate 100% Florida orange

juice in a ready-to-serve package. The juice, Tropicana Pure Premium, became the

company's flagship product.

In 1957 the name of the company was changed to Tropicana Products, headquartered

in Bradenton, Florida. The company went public in 1957, was purchased by Beatrice Foods

Co. in 1978, acquired by Kohlberg Kravis & Roberts in 1986 and sold to The Seagram

Company Ltd. in 1988. Seagram purchased the Dole global juice business in 1995. PepsiCo

acquired Tropicana, including the Dole juice business, in August 1998.

Today the Tropicana brand is available in 63 countries. Principal brands in North

America are Tropicana Pure Premium, Tropicana Season's Best, Dole Juices and Tropicana

Twister. Internationally, principal brands include Tropicana Pure Premium and Dole juices

along with Frui'Vita, L06za and Copella. Tropicana Pure Premium is the third largest brand

of all food products sold 111 grocery stores in the United States.

Gatorade sports drinks were acquired by the Quaker Oats Company in 1983 and

became a part of PepsiCo with the merger in 2001. Gatorade is the first isotonic sports drink.

Created in 1965 by researchers at the University of Florida for the school's football team,

"The Gators," Gatorade is now the world's leading sport's drink.

QUAKER FOODS

The Quaker Oats Company was formed in 190 1 when several American pioneers in

oat milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour and William

Heston had established the Quaker Mill Company and registered the now famous trademark.

Seymour wanted his product to be a symbol of honesty, integrity and strength. The- figures

of a man in Quaker clothes became the first registered trademark for breakfast cereal and

remains the hallmark for Quaker Oats today.

40

In Cedar Rapids, Iowa, John Stuart and his son, Robert, and their partner, George

Douglas, operated the largest cereal mill of the time. Ferdinand Schumacher, known as "The

Oatmeal King," had founded German Mills American Oatmeal Company in 1856.

Combining The Quaker Mill Company with the Stuart and Schumacher businesses

brought together the top oats milling expertise in the country as The Quaker Oats Company.

The first major acquisition of the company was Aunt Jemina Mills Company in 1926,

which is today the leading manufacturer of pancake mixes and syrup.

In 1986, The Quaker Oats Company acquired the Golden Grain Company, producers

of Rice-A-Roni.

PepsiCo merged with The Quaker Oats Company in 200 1. Its products still have the

eminence of wholesome, good-for-you food, as envisioned by the company over a century

ago.

2001 Pepsi company announces a new joint venture will be formed in Egypt

combining the salt snack operations of Chipsy, the current market leader, and tasty foods,

which is owned by Pepsi company Pepsi company launches Diversity @work, http:

PEPSI CO. MISSION STATEMENT

Pepsi CO., overall mission is to increase the value of their shareholder's investment.

They believe that their commercial success depends upon offering quality and value

to their consumers and providing products that are safe, wholesome, and economically

efficient and environmentally sound; providing a fair return to their investors while

adhering to the highest standards of integrity.

PEPSI CO'S ENVIRONMENTAL COMMITMENT

As a consumer products company, Pepsi co. does not have the major environmental

problems of heavy industry. Their biggest environmental challenge is packing generated by

their products.

41

Packaging is important to public health and a critical component of the distribution

system that delivers products to consumers and commercial establishment. To meet both

consumer demand and safeguard the environment they recycle, reuse and reduce packaging

wherever possible.

Each business is also committed to responsible use of resources required in manufacturing

their products.

42

PROFILE OF THE PEARL BOTTLLING UNIT

2.2 COMPANY PROFILE

Often new flavors are added to the product line of cool drinks to prevent a competitor.

By establishing a relation with retailers it is also desirable to sell more than one flavor of cool

drinks to decrease the impact of seasonal fluctuations in the point of view of productions.

Additional products are added to utilize the franchise of Visakhapatnam region to Pearl

Beverages which belongs to Pearl group, Head quarters at Delhi and Mr.C.K.jaipuria is the

chairman, managing director of the group. Pepsi Food Ltd. appointed Krishna Mohan

Beverages and Constructions as franchise in the year 1992. In 2003 it was changed to P earl

beverages taken by the pearl group. The premises were originally owned by campa-cola soft

Drinks since 1980 at Madhurawada. After the insolvency of campa-cola, KMBC purchased

the premises in 1990 in the auction by APSFC. Initially, it used to produce cola, orange and

lemon flavors under the brand names of Thrill, Rush, and Sprint. It has also produced Me.

Dowell's soda and bagpiper soda. It produced these drinks under franchise agreements, but

company could not exist in the market due to stiff competition from Parle products.

Advantage of franchise -

Reduced investment levels in manufacturing equipments:

If a company sources its products from franchises, it does not require setting up its own

manufacturing plant for the purpose. The company thus benefits from reduced investments in

manufacturing facilities, inventories of a raw material and other functions required for the

manufacturing of the components.

Savings on management time:

As the components are outsourced, the company stands to gain by saving on the

management time and cost. The role of the company gets restricted to establishing the

systems and in quality control at the franchise locations. Over a period of time the systems

implemented stabilize and hence the involvement of the company remains on at the strategic

decisions level.

43

Regular supply of components:

With the development of strong relations with the franchisees, the manufacture can be

assured of a regular supply of components as per the manufacture's specification.

Reduced interfacing and dealing with labor:

The labor and union employees involved in the manufacturing are the responsibility

of the franchisee. This is beneficial as it reduces the management time and involvement in

solving their issues.

Limitations of franchisee are:

Large volumes

To set up ancillary base, the company is required to produce large as the franchisee

may not be interested in making large investments in the manufacturing facilities if the

volumes required to be produced are low. Especially the existing franchisees will not take the

risk typing up with new players.

Financial support

In India, most vendors are small in size and do not have the capital to invest in these

equipments, which requires the manufactures to give them the financial support. This

problem becomes intense when the manufacture has an existing franchisee base and wants to

increase the capacity.

Quality

In some cases, due to cost considerations, the manufacturers are forced to compromise on

quality.

DISTRIBUTION

The company distributes its products in five districts.

1. Visakhapatnam 2. Srikakulam 3. Vizianagaram 4. East Godavari and 6. West

Godavari

44

The objectives of the company set in memorandum of Association and franchise agreements

are as follows:

1. To manufacture soft drinks by concentrate supplied by Pepsi

foods.

2. To market and advertise within specified area Pepsi

products.

3. To sell soft drinks at a fixed price

CAPACITY OF THE PEARL BOTTLING UNIT:

The company installed latest up to date automatic plant conforming to plant layout.

The installed production capacity is 400 bottles per minute i.e. 24,000 bottles per hour. The

plant is also having 100 bottles per I-liter line. During off-season the plant runs one shift and

during the 9 months season the plant runs double shift. The company has to produce3 enough

bottles of soft drinks at a speed to keep in pace with the disappearance of soft drinks from

shelves of the retailer.

QUALITY CONTROL:

Pearl beverages Pvt. Ltd. Takes great care to maintain the quality control of the

products in their factory. The bottles are visually examined for impurities continuously, as

the bottles move out. Samples are checked every ten minutes of production time by the

chemist for its quality & hygienic condition. The chemical analysis is also made for flavors,

gas content and sugar percentages. The appearance, smell and taste of the production are

suspended and the correcting measures are taken so as to set right the bottling process

irregularities. Further, samples from each batch are dispatched to the affiliated parent agency

company in each week for quality checkup. Moreover, agency of the company in each week

for quality checkup at any time to make sure that the quality is maintained to the exact

standard of the parent company.

At the end of the production schedule, daily all the equipment floor and wet patches

are cleaned with bleaching powder or some other solution. The standards of hygiene

maintained inside the production shops are commendable.

45

MANUFACTURING IN PEARL BEVERAGES PVT. LTD:

The process of manufacturing soft drinks mainly divided into 4 parts. They

1. Making of syrup

2. Treatment with water

3. Bottling

4. Crating

Making of syrup:

In this process, the syrup of a particular product is prepared by heating sugar with activated

carbon powder and filter aid (Hyflousuper cell) in treatment tank for a specified time and up

to a particular temperature.

Treatment with water:

removes the water and converts the water into soft water.

It frees the water of microorganisms.

the alkalinity to a required level.

Removes suspended matter in water.

Bottling:

In this process both the concentrate and the purified water are mixed together along with

CO2 gas and then bottled. In soft drinks field, only reusable glass bottles are used. They are

sterilized before the beverages are filled. For this purpose, the company makes use of

machine known as "bottle Washer". For cleaning of bottles washing chemicals such as

caustic soda and tri-sodium phosphate are used.

Crating:

The bottles collected from conveyor belts are placed manually into plastic crates. Each

plastic case has capacity of 24 bottles. These protect the bottles from breakage and for easy

handling of bottles. These crates are put on specially designed vans for carrying bottles and

are sent to various consumption points.

46

MARKETING FUNCTION:

PRODUCTS

The product being offered by Pearl Beverages is a soft drink in 6 flavors namely cola,

lemon clear, lemon cloudy, orange, mango, & soda. Expect for slice, Pearl Beverages has

bottling facilities for other brands.

PRICE

A 300 ml bottle of soft drink & 300ml of fountain Pepsi are priced at Rs. 9/- while a

500 ml cost Rs.25/- and 1 liter plastic at Rs45/- and 1.5 plastic cost Rs.52/- where the

consumer can take the bottle along with the drink. Chota Pepsi is introduced for just Rs. 5/-

for 200 ml.

PROMOTION

As sales promotion, the company has painted pan shops with Pepsi logo. Put up glow

sign boards & bill boards at important junctions, Pepsi advertisement material like stickers,

danglers and gift for consumers. It has also provided special refrigeration to exclusive Pepsi

retail outlets known as VISI COOLERS.

PLACE OF DISTRIBUTION

Pearl Beverages Ltd. Covers the 5 districts of the territory through 172 distributors

appointed at various locations for secondary distribution. Pearl beverages reach the 2200

outlets of vizag city through its 4 dealers. Each dealer is assigned a specific area which is

further divided into routes. Each route is assigned to a driver cum sales man. Each dealer is

given a target, which in turn is given to sales man depending upon the potential of his route.

Visakhapatnam is divided into 4 zones and the marketing is serviced by 3 distributors.

1. SAI ASWINI Enterprises.

2. COOL AND COOL Distributors

3. GAURI Agencies.

47

The total outlets covered by the plant are put to around 15000 in the five districts.

Visakhapatnam city contributes to 2200 outlets.

ORGANISATION STRUCTURE OF PEARL BOTTLING PVT LTD.

This is headed by able director, and is assisted by a team of well qualified &

experienced there are mainly 5 elements of organization structure:

1. Specialization of activities.

2. Standardization of activities.

3. Coordination of activities.

4. Centralization and decentralization of deviation making. S. Size of the work

unit.

Mr. Ruchirans Jaipuria is the head of the organization & administration. The

company is managed senior management personnel.

The following table shows the description of employees along with designation & no.

of employee.

S.No. Description No.employees

1. General Manager (Finance) 1

2. Commercial Manager 1

3. Marketing Manager 1

4. Territory Managers 4

5. Administration Manager 1

6. Production Manager 1

7. Asst. Personal Manager 1

8. Store Executives 3

9. Central Executives 25

10. Route Agents 50

11. Sales Trainee 1

12. Chemists 3

13. Accountants 5

14. Supervisors 8

48

15. Clerks 8

16. Operators 10

17. Electricians 3

18. Fitters 2

19. Computer cum Telephone Operator 12

20. Security Guards 6

21. Office Boys 13

22. Sweepers & Helpers 3

Organization Chart

Factory Manager Executive Manager Finance Manager

General Manager

(Sales & marketing

Sales Supervisor

( Direct Marketing)

Driver cum Salesmen

Sales Supervisor

( Direct Marketing)

Driver cum Salesmen

Managing Director

Loader Loader

49

FINANCIAL FUNCTION

PepsiCo Reports 13% First-Quarter Earnings Per Share Increase, Driven by 9%

Revenue Growth. PepsiCo reported a 13% increase in first-quarter earnings per share to

$0.60, fueled by a 9% increase in net revenue, with each of the Company's operating

Divisions contributing to both top- and bottom-line growth.

In India, most vendors are small in size and do not have the capital to invest in these

equipments, which requires the manufactures to give them the financial support. This

problem becomes intense when the manufacture has an existing franchisee base and wants to

increase the capacity.

Importantly, we're also seeing good profit performance despite continued pressure

from inflation in some of our key input costs. Overall, we're very pleased with the results in

the quarter, and remain confident in the outlook for 2006."

Net revenue grew 6%, reflecting volume growth of 2%, positive effective net

pricing and favorable mix, and despite the unfavorable impact from a shift in the timing of

the New Year's and Easter holidays.

Operating profit grew in line with revenue growth reflecting the revenue gains

and the impact of increased labor and benefits charges and higher costs for

cooking oil. Volume grew 5% in the quarter, with the division's non-carbonated beverage

portfolio increasing 18% and carbonated soft drinks (CSDs) declining 1%. The results for the

quarter also reflect a slightly unfavorable impact from a shift in the timing of the Easter

holiday.

50

CHAPTER-3

A THEORITICAL FRAME WORK

The term “Soft Drinks” refers to all types of non-alcoholic, carbonated, sweetened

and flavored beverages. They are all artificially sweetened. The soft drink industry has been

undergone many changes with changing consumer needs, wants and also changing

government policies. This formed the basis for different innovations in packaging such as

bottles, cans, tetra packs, pet bottles etc. in a variety of flavors. On a hot summer day, soft

drinks became a welcome factor for its refreshing taste and as one start gulping it, it gives

some sort of satisfaction, which cannot be defined in words but can only be felt.

With the changing trends and disappearing social and cultural differences among the

countries worldwide soft drink culture has grown enormously and in almost all the countries

soft drinks are consumed despite the varying factors like age, income, and climate, Etc. This

has led to the enormous increase in the soft drink market.

BACK GROUND AND SEGMENTATION OF SOFT DRINK INDUSTRY:

Non alcoholic soft drink beverage market can be divided into fruit drinks and soft

drinks. Soft drinks can be further divided into carbonated and non-carbonated drinks. Colas,

lemon and oranges are carbonated drinks while mango drinks come under non carbonated

category. The soft drinks market till early 1990s was in hands of domestic players like

campa, thumps up, Limca etc but with the opening up of economy and coming of MNC

players Pepsi and Coke the market has come totally under their control. Worldwide, Coke is

the leader in carbonated drinks market. In India it is Pepsi which scores over Coke is the

leader in carbonated drinks market. In India it is Pepsi which scores over Coke but this

difference is fast decreasing. Pepsi entered Indian market in 1991 coke re-entered (After

they were thrown out in 1977, by then central government) in 1993.

In this chapter various accepts of study are going to be discussed. To which area of

management that study belongs to and various concepts that are related the area of study.

The present outcomes under marketing and deals in the specific with the distribution network

and its management.

PEPSI COLA was in India from 1956-61 and left the country, as its products were

not acceptable by the Indian customers. But recently in 1990 it re-entered the Indian market,

51

where by PEPSI FOODS LIMITED was entered into a joint venture with PEPSI

INTERNATIONAL, TATA and VOLTAS.

PEPSI Bottlers and producers of soft drinks buy concentrate and sell at fixed price

and add a margin rationally for its products.

Indian with a population of more than 1.1 billion is potentially one of the largest

consumer markets in the world after china. The consumer market is popularly known as the

FMCG market or the fast moving consumer goods market. Soft drinks come under this

category. Soft drink is basically purchased in Indian basically for two reasons namely to

quench thirst and for refreshment. The Indian economy currently is passing through a bullish

phase with increasing per capita income. Subsequently the lifestyle of the Indian consumer

is also changing with increased spending on entertainment, refreshment etc. that is why soft

drink companies are looking forward to India with great enthusiasm in the future to increase

their revenue. The soft drink industry in India dates back to the 1940s when Parle introduced

the first branded soft drink called gold spot. Cola giant coca-cola was the first foreign soft

drink company to setup its shop in India in 1965. Coca-cola made a very good beginning and

dominated the market right from the word go. It faced no competition at that time. The

marketing people did not even need to publicize coca-cola. This extraordinary success of

coca-cola can be attributed to the following factors.

Absence of contemporary competitive brand.

The giant image of coca-cola in the western countries preceded their entry into the

Indian market,

Indians at that time were very fond of foreign goods.

Parle Exports Pvt. Ltd., later introduced a lemon flavored soft drink called Limca in

1970. Before this they had introduced a cola flavored drink called pepping which they had to

withdrew in the face of stiff competition from coca-cola. But the overtly conservative Indian

government of that time with special interest in safe guarding the interest of the Indian

companies started insisting that coca-cola should agree on the following points in order to

continue in India. Coca-Cola decided to windup its operations in1977 rather than bowing to

the Indian government. The main demands of the Indian government were.

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

wasted.

52

Manufacturing of the secret concentrate in India.

Disclosure of the chemical composition of the concentrate.

The exit of coca-cola left a large vacuum in the soft drink market. But this also

accelerated the growth of several Indian soft drinks. Many new soft drinks like footie, jump-

in etc were launched in the form of tetra pack. However the bottling plants and the

distribution networks of these companies were not up to the mark and left much to be

desired. It took these companies almost one year to come up with new flavors like Campa

Cola, Rush etc. to survive in the industry.

However Parle, the pioneer in the soft drinks market blazed its way to national

prominence with their product Thumps Up bearing the slogan ‘happy days are here again’

which became a craze. This particular slogan helped to win over the loyalists of coca-cola

who were in a state of cola shock or cola depression. Soon the soft drink industry started

registering phenomenal growth rates and all parley products namely Gold Spot, Limca and

Thumps Up became the brand leaders in their own segments. In spite of this the soft drink

market had a huge untapped potential.

In 1990 coming of the multinational brand Pepsi and immediately started giving stiff

competition to Parley and Coke. The company of Pepsi was founded in 1890 at North

Carolina in USA. Its CEO is Roger Enrico. PepsiCo India Holdings Pvt. Ltd. In

headquartered in gurgaon and its CEO is Ms. Indra Nyui. In India it has 34 bottling plants of

which 8 are company owned bottling outlets (COBO) and 26 are franchise owned bottling

outlet (FOBO). SMV Beverages is a franchise owned bottling outlet. Coca-Cola reentered

the Indian market in 1993 in collaborations with Parley India Ltd.,

PEPSICO INDIAN HOLDINGS PVT. LTD. LAUNCHES PACKAGED NIMBU

PAANI ‘NIMBOOZ BY 7UP’.

PepsiCo India Holdings Pvt. Ltd., has launched its packaged nimbus paani ‘Nimbooz

by 7Up. The product, with real lemon juice, no fizz and no artificial flavors’, will be

available in three packaging formats of 200ml returnable glass bottles, 350ml PET and 200ml

tetra packs, priced at INR 10, INR 15 and INR 10 respectively.

PEPSICO INDIA HOLDINGS PVT. LTD. TO LAUNCH LEMON DRINK.

PepsiCo India Holdings Pvt. Ltd. Is expanding its product portfolio in India in the

lemon drinks category and has plans to introduce a product under 7Up brand a head of the

53

summer season. The new product would be less carbonated and is targeted at the mass

market for on-the move consumers.

Headquarter : New York, U.S.

Area served : Worldwide

Industry type : Food and non alcoholic beverages.

Products : Pepsi, Diet Pepsi, Mountain dew, 7 Up, Mirinda,

Slice, Tropicana products Nimbooz juice, Aquafina,

Fritos, Cheetos, and Lays.

Key person : Indra Krishnamurthy Nooyi (president) and (CEO)

MARKET AUDIT:

SWOT analysis is a tool for auditing an organization and its environment. It is the

first stage of planning and helps marketers to focus on key issues. SWOT stands for

strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal

factors. Opportunities and threats are external factors.

A STRENGTH COULD BE:

Your specialist marketing expertise.

A new, innovative product or service.

Location of your business

Quality processes and procedures.

Any other aspect of your business that adds value to your product or service.

www.marketingteacher.com

A WEAKNESS COULD BE:

Lack of marketing expertise.

Undifferentiated products or services (i.e. in relation to your competitors)

Location of your business.

54

Poor quality goods or services.

Damaged reputation.

A OPPORTUNITY COULD BE:

A developing market such as the Internet.

Mergers, joint ventures or strategic alliances.

Moving into new market segments that offer improved profits.

A new international market.

A market vacated by an ineffective competitor.

A THREAT COULD BE:

A new competitor in your home market.

Price wars with competitors.

A competitor has a new, innovative product or service.

Competitors have superior access to channels of distribution.

Taxation is introduced on your product or service.

PEST ANALYSIS

It is very important that an organization considers its environment before beginning

the marketing process.

In fact, environmental analysis should be continuous and feed all aspects of planning.

The organization’s marketing environment is made up of:

1. The internal environment e.g. staff (or internal customers), office technology, wages

and finance, etc.

2. The micro-environment e.g. our external customers, agents and distributors, suppliers,

our competitors, etc.

3. The macro-environment e.g. Political (and legal) forces, Economic forces, Socio

cultural forces, and Technological forces. These are known as PEST factors.

POLITICAL FACTORS:

The political arena has a huge influence upon the

regulation of businesses, and the spending power of consumer and other businesses. You

must consider issues such as:

55

1. How stable is the political environment?

2. Will government policy influence laws that regulate or tax your business?

3. What is the government’s position on marketing ethics?

4. What is the government’s policy on the economy?

5. Does the government have a view on culture and religion?

ECONOMIC FACTORS:

Marketers need to consider the state of a trading economy in the short and long-terms.

This is especially true when planning for international marketing. You need to look at: 1.

Interest rates.

2. The level of inflation Employment level per capita.

3. Long-term prospects for the economy Gross Domestic Product (GDP) per capita, and

so on.

SOCIOCULTURAL FACTORS:

The social and cultural influences on business vary from country to country. It is very

important that such factors are considered. Factors include:

1. What is the dominant religion?

2. What are attitudes to foreign products and services?

3. Does language impact upon the diffusion of products on to markets?

4. How much time do consumers have for leisure?

5. What are the roles of men and women within society?

6. How long are the population living? Are the older generations wealthy?

7. Do the population have a strong/weak opinion on green issues?

TECHNOLOGICAL FACTORS

Technology is vital for competitive advantage, and is a major driver of globalization.

Consider the following points:

56

ANALYZING THE ENVIRONMENT – FIVE FORCES ANALYSIS:

Five Forces Analysis helps the marketers to contrast a competitive environment. It

has similarities with other tools for environmental audit, such as PEST analysis, but tends to

focus on the single, stand alone, business or SBU (Strategic Business Unit) rather than a

single product or range of products. For example, Dell would analyze the market for

Business Computers i.e., one of its SBUs.

1. Does technology allow for products and services to be made more cheaply and to a

better standard of quality?

2. Do the technologies offer consumers and businesses more innovative products and

services such as Internet banking, new generation mobile telephones, etc?

3. How is distribution changed by new technologies e.g book via the Internet, flight

tickets, auctions etc.?

4. Does technology offer companies a new way to communicate with consumers e.g.

banners, Customer Relationship Management (CRM), etc?

Five forces analysis looks at five key areas namely the threat of entry, the power of

buyers, the power of suppliers, the threat of substitutes and competitive rivalry.

57

THE THREAT OF ENTRY:

Economies of scale e.g. the benefits associated with bulk purchasing.

The high or low cost of entry e.g. how much will it cost for the latest technology?

Ease of access to distribution channels e.g. Do our competitors have the distribution

channels sewn up?

Cost advantages not related to the size of the company e.g. personal contacts or

knowledge that larger companies do not own or learning curve effects.

Will competitors retaliate?

Government action e.g. will new laws be introduced that will weakne our competitive

position?

How important is differentiation? E.g. The Champagne brand cannot be copies. This

desensitizes the influence of the environment.

THE POWER OF BUYERS:

This is high where there a few, large players in market e.g. the large grocery chains.

If there are a large number of undifferentiated, small suppliers e.g. small farming

businesses supplying the large grocery chains.

The cost of switching between suppliers is low e.g. from one fleet supplier of trucks

to another.

THE POWER OF SUPPLIERS

The power of suppliers tends to be a reversal of the power of buyers.

Where the switching costs are high e.g. Switching from one software supplier to

another.

Power is high where the brand is powerful e.g. Cadillac, Pizza Hut, Microsoft.

There is a possibility of the supplier integrating forward e.g. Brewers buying bars.

Customers are fragmented (not in clusters) so that they have little bargaining power

e.g. Gas/Petrol stations in remote places.

THE THREAT OF SUBSTITUTES

Where there is product-for-product substitution e.g. email for fax where there is

substitution of need e.g. better toothpaste reduces the need for dentists.

Where there is generic substitution (competing for the currency in your pocket) e.g.

Video suppliers compete with travel companies.

58

COMPETITIVE RIVALRY

This is most likely to be high where entry is likely; there is the threat of substitute

products, and suppliers and buyers in the market attempt to control. This is why it is

always seen in the center of the diagram.

PEPSI PRODUCTION PROCESS:

Any cold drinks (soft drinks) generally contains

Water

Sugar

Flavors or fruit pulp

Chemicals

CO2gas (in carbonated soft drinks)

The below four ingredients are added with the first ingredient i.e., water and cold drink is

prepared. Here in Pearl Bottling Pvt. Ltd., Visakhapatnam also the same ingredients are used

to prepare Pepsi and its’ other brands. All these ingredients are added at different stages by

different processes. The diagram in the next page represents the flow or sequence of steps

involved in Pearl Bottling Pvt. Ltd., Visakhapatnam for manufacturing of pepsi products.

Pepsi products are available in different SKUs (stock keeping units) or packs, e.g. glass

bottle, pet bottle, metal can, tetra pack etc., the preparation of main liquid or drink is same

but the machines and equipments used for filling in different SKUs are different.

PROCESS FLOW DIAGRAM:

59

During my visit to Pearl Bottling Pvt. Ltd., Visakhapatnam, I saw

1. Water treatment plant, where water is purified.

2. Bottle washing plant, where used glass bottles are washed

3. Syrup room, where syrup is prepared from sugar.

4. Bottle filling plant, where bottles are filled with the final product.

5. Acid room, where caustic soda is kept, which is used for cleaning the equipments and

pipelines after every batch of production.

6. Yard for keeping empty bottles and were houses for storing the filled bottles.

The brief introduction of each plants are given below.

1. WATER TREATMENT PLANT:

Water in Pearl Bottling Pvt. Ltd., Visakhapatnam is coming from the Sitarampur dam

on the Kharkai river. It is stored in a reservoir. This raw water is being treated in the water

treatment plant, before the production process starts. Coagulation process is used here for

this purpose. Main chemicals used are ferrous sulphate (FeSO4), calcium hydroxide (CaOH)

and chlorine (CaOH) and chlorine (cl). Initially water is treated with all these chemicals in

the treatment tank and becomes turbid. All the impurities get settled at the base and remove

the turbidity. Then, it is sent to the carbon tank where all the microorganisms and chlorines

are removed. The obtained is completely free from any kind of impurities and used in further

processing. The maximum alkalinity maintained until as much as 50ppm.

2. BOTTLE WASHING PLANT:

Used bottles returning from the market are stealthy. Before filling these empty

bottles with new product, these bottles are passed through the bottle washing plant where

these dirty bottles are washed. It is completely an auto process which takes place within a

machine called washer machine. The machine has three compartments. Bottle for washing

are placed on the conveyer come inside the machine and get successive treatment. Bottle for

washing are placed on the conveyer come inside the machine and get successive treatment.

Bottles are treated with 4% caustic soda in the first compartment at a temperature of 100-

150oC. Next these are conveyed to the second compartment, where bottles are again washed

with hot water at a temperature of 80-100oC in the third compartment bottles are treated with

cold or normal water at room temperature. Time duration in each compartment is 10

minuets. Bottles are then sent through the inspection center, where these are closely watched

against white rays of light. Bottles containing any dust or other unwanted things are

removed from the line here.

60

3. SYRUP ROOM:

Here syrup is prepared. Syrup is prepared by flowing steam and sugar crystals in a

specified ratio into a closed container. The temperature of this prepared sugar remains

between 80-100oC. This syrup contains some impurities as, sometimes there are some

impurities presents in sugar, so this syrup is filtered to remove all those contaminations.

Before storing in syrup tanks this syrup it is passed through the cooler where syrup

temperature is reduced to 25-30oC. this temperature is maintained throughout the whole

process. Here next flavors are added at a specified quantity with the syrup used for

preparation of Pepsi or other brands.

4. BOTTLE FILLING PLANT:

Next, for preparation of carbonated soft drinks brands like Pepsi, mirinda, 7UP, and

mountain dew, carbondioxide gas (CO2) is mixed with this prepared solution. And for the

brand like slice, fruit pulp is added. Now the solution is ready for filling into the bottles.

The washed empty bottles are filled by auto9matic filler machine. This machine can fill 60

bottles in one minuet. After filling, crowns or caps are fitted on the filled bottles with the

help of crowning machine. Now these filled bottles are ladled and then sent for packing and

storing in the go downs.

5. ACID ROOM:

There are three tanks in this room. The first tank contains caustic soda, the 2nd

tank

contains hot water and the third tank contains cold water. After finishing every batch of

production the whole production lines and containers/tanks are washed. And for this

purpose, first of all caustic soda is passed through the pipeline, next hot water and at the last

the last cold water.

6. YARD FOR KEEPING EMPTY BOTTLES:

Peral Bottling pvt. Ltd., Visakhapatnam has a large area in side its premises. A large part of

its open area is used for keeping the empty bottles.

7. WAREHOUSE:

Pearl Bottling pvt. Ltd., Visakhapatnam has its own warehouse in side its premises for

storing the produced products. The produced products are sent to the customers from these

warehouses. For transferring the filled bottles inside the company fork-lifts are used.

61

COMPETITORS:

While the competition is moving so close between venous Indian manufactures, it

was in 1990, Pepsi has been introduced for the first time to the Indian public. The

competition, which mainly existed between “ThumsUp” and “Pepsi”.

Consumers are going to be benefited when competition is stiff. It is proved beyond

doubt with the Indian soft drinks. Pepsi objected the introduction of 300ml bottles by coca-

cola. But the objection was over-ruled and government of India has pennitted coca-cola to

go ahead with 300ml bottles. While cola is mainly marketing its range among metropolitan

cities, Pepsi has introduced 300m 1 size throughout the country to take an edge over coca-

cola. Whether one buys COKE or PEPSI THUMSUP or DUKE, profits flow only to the

American economy.

MULTINATIONAL CORPORATIONS.

Previously, parle group has introduced slowly 250ml bottles of GOLDSPOT,

LIMCA, and CITRA in the market. At this time, PEPSI has introduced 1 litter bottle. While

all India soft drinks are sold in 200ml bottle, Pepsi with 250ml size has tried to conquer the

market.

Lack of competition is the primary cause for the slow rate of development of the

Indian soft drinks industry. Since 60% of the market is monopolized by one single company

and because of its restrictive practices hundreds of local and small companies could not

flourish.

If PEPSI will be investing Rs.300 Crores, coke will be pumping eighty times as much

as Pepsi’s i.e. Rs.2,400 crores nearly. The total investment is of size and scale that the

Rs.1,800 crores soft drinks business has never been before. Both players see an enormous

potential in this country.

The soft drink industry in India has annual sales of Rs.12,000 crores and most of the

bottling companies have been doing flourishing business. In the past five years all the

bottling companies have grown and expanded their activities placing more and more soft

drink cases in the market and by improving refrigeration, supply of electric bottle coolers,

etc. to the retailers. The soft drink market in India is growing at the rate of 10% every year.

With growing urbanization and the younger generation, which has a liking for

nonconventional foods and beverages there is good possibility that per capita consumption,

will go up.

62

TRENDS IN AND MARKET SHARE OF SOFT DRINK INDUSTRY:

Export Corporation in 1950 with swadeshi movement started by Janata party CCEC

was asked to reduce its foreign capital holding 40% and delivers the known how to Indian

company. This refusal forced CCEC to leave the country in 1977. With the leaving of coca-

cola the domestic soft drinks market got a lift and rose to capture the Indian market with

Parle as the main leader, GOLD SPOT, THUMPS UP, MAAZA and KISMET became a

house hold name. Its market share grew to 60% in 1991 and it emerged as the market leader.

The first challenge to the supremacy of Parle brands came from Pepsi cola in May 1990.

Pepsi that was in India from 1956-61 had left the country, as its Products were not

found acceptable to the Indian public. Pepsi company incorporation, he 22billion worth soft

drinks and fast foods company has finally reentered the Indian market.

Soft drinks come mainly three flours. cola, Lemon and Orange. According to

estimates, cola dominates the market with 40% market share “lemon flavored drinks come

second with 30% market share and orange flavored drinks third with a 20% share. Other

flavors account for the rest of the market.

SOFT DRINK BRANDS PRESENTLY AVAILABLE:

Flavors Cola Clear Orange Cloudy Mango Soda Apple

Brands Drink Lemon Flavors Lemon Flavors Flavors

Pepsi Pepsi 7-Up Mirinda Mirinda Slice Lehar Mirinda

TRENDS IN AVERAGE CONSUMPTION OF DRINKS:

Name of the Country Average Consumption per year

(per head)

India 5 Bottles

Pakistan 13 Bottles

West Germany 83 Bottles

U.S.A. 131 Bottles

Also the government of India considers soft drinks as non-essential commodity.

Thus, heavy excise duty is levied on bottled soft drink.

In a country like India where more than 70% of the population exists below the

poverty line. The trading activities of the soft drinks industry are concentrated in and around

big cities where the purchasing power of people is considered to be comparatively high

63

Consequently by world standards, India’s per capita consumption of these servicing is rock

bottom, less than our neighbors Pakistan and Bangladesh.

Country Per Capita Intake (Bottles)

India 3.7 5.3

Pakistan 13.0 30.0

Bangladesh 7.0 11.03

PEPSICO PACKAGING PROCESS

PepsiCo is an industry leader in packaging helping to promote and implement

standards for sustainable packaging.

PepsiCo distribute the products in a variety of packages, each carefully designed to

delivery convenience and appeal to the consumer while protecting the integrity of the

products. The team of engineers and packaging suppliers are dedicated to finding preferable

designs, and are working continuously towards improving the packaging performance while

reducing the packaging footprint. PepsiCo are committed to bringing the environmental

responsibilities to all areas of the business.

PEPSICO FOLLOW FIVE PRINCIPLES OF SUSTAINABLE PACKAGING

DESIGN:

Reduce :Using less material in the packaging, to conserve natural Resources.

Reuse : Increasing use of reusable packaging and increasing the

Amount of recycled material in the packaging.

Recycle : Designing packaging for recycling and developing

Biodegradable and compostable packaging solutions.

Remove : Eliminating environmentally sensitive materials and

Processes from the packaging.

Renew : Increasing use of renewable resources.

In an effort to meet his goals, PepsiCo have launched a global sustainable packaging policy

and formed a Sustainable Packaging Council dedicated to:

Developing sustainable packaging strategies, goals, and targets.

Developing alternative packaging material technologies.

Supporting responsible disposal practices.

64

CHAPTER-4

DATA ANALYSIS

TABLE -4.1 Preference status of Pepsi products

PEPSI PRODUCTS TOTAL PERCENTAGE

PEPSI 40 30%

MIRINDA ORANGE 15 11%

MIRIND LEMON 10 7%

7 UP 25 18%

MOUNTAIN DEW 14 10%

SLICE 21 16%

NIMBOOZ 05 4%

DIET PEPSI 05 4%

Figure: 4.1

30%

11% 7%

18%

10%

16%

4% 0%

5%

10%

15%

20%

25%

30%

35%

Pepsi Products

65

INTERPRETATION:

It was found that , can be interpreted that pepsi occupied 30%, 7up occupied 18%,

slice occupied 16% and mirinda orange occupied 11% ,mountain dew 10%, mirinda

limon7%, nimbooz 4%, diet pepsi 4% These description belongs to total pepsi occupied in

first place.

TABLE-4.1.2 Preference status of Coke products

COCA-COLA PRODUCT TOTAL PERCENTAGE

Thumps up 05 7%

Fanta 08 13%

Coca-Cola 04 6%

Sprit 15 24%

Maaza 25 39%

Limca 05 7%

Nimboo fresh 03 4%

Figure: 4.1.2

7%

13%

6%

24%

39%

7% 4%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Thumps Up

Fanta Coca-Cola Spirit Maaza Limca Nimboo Fresh

Coca-Cola Products

66

INTERPRETATION:

Table 4.1.2 depicts, customer‘s preference for different products of Pepsi. The

analysis show that 39% of the customers’ first preference to maaza cold drink. 24% of the

customers second preference to sprite cold drink.13% of the customers’ third preference to

fanta cold drink. 7% of the customers fourth preference to Thumps up cold drink. 7% of the

customers fifth preference to Limca cold drink.6% of the customers six preference to coca

cola cold drink.4% of the customers equal preference to nimboo fresh cold drink. Most of the

customers first preference to maaza cold drink.

4.2 Brand Preference Status of Pepsi

TABLE-4.2.1

Figure: 4.2.1

INTERPRETATION:

Table 4.2.1 shows , it can be interpreted 82% of the customers first preference

to taste,10% of the customers second preference to packing,6% of the customers third

preference to easily available,2% of the customers’ fourth preference to advertisement.

Most of the customers prefer taste.

82%

2% 6% 10% 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Taste Advertisement Easily Available Packaging

Pepsi

PEPSI TOTAL PERCENTAGE

Taste 110 82%

Advertisement 3 2%

Easily available 8 6%

Packaging 14 10%

67

4.2.2 Brand Preference Status of coke

TABLE-4.2.2

COCACOLA TOTAL PERCENTAGE

Taste 48 75%

Advertisement 7 10%

Easily available O 0%

Packaging 10 15%

Figure: 4.2.2

INTERPRETATION :

Table 4.2.2 reflects , it can be interpreted75% of the customers’ first preference to

taste,15% of the customers second preference to packing,10% of the customers third

preference to easily available,0% of the customers fourth preference to advertisement. Most

of the customers prefer taste.

75%

10% 0%

15%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Taste Advertisement Easily Available Packaging

Coca-Cola

68

4.3.1 Weekly Status of Purchases of Pepsi.

TABLE-4.3.1

PEPSI TOTAL PERCENTAGE

Once 54 40%

Twice 48 36%

Thrice 14 10%

More then three 19 14%

Figure: 4.3.1

INTERPRETATION:

It was found that, it can be interpreted 40% of the customers take Pepsi products

weekly once,36% of the customers take Pepsi products weekly two times,14% of the

customers take Pepsi products weekly three times,10% of the customers take Pepsi products

weekly more than three times. Most of the customers prefer to take a Pepsi products weekly

once

40% 36%

10% 14%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Once Twice Thrice More than Three

Pepsi

69

4.3.2 Weekly Status of Purchases of coke.

TABLE-4.3.2

COCACOLA TOTAL PERCENTAGE

Once 26 40%

Twice 27 41%

Thrice 07 11%

More then three 05 08%

Figure : 4.3.2

INTERPRETATION:

Table 4.3.2 found that, it can be interpreted 40% of the customers take Coca-Cola

products weekly once,41% of the customers take Coca-Cola products weekly two times,11%

of the customers take Coca-Cola products weekly three times,8% of the customers take

Coca-Cola products weekly more than three times Most of the customers prefer to take Pepsi

products weekly two times.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Once Twice Thrice More than Three

Coca-Cola

70

4.4.1 Status of Category of purchase preference of Pepsi drinks

TABLE-4.4.1

PEPSI TOTAL PERCENTAGE

200ml 36 27%

250ml 70 52%

300ml 22 16%

Can 07 05%

Figure 4.4.1

INRERPRETATION :

Table4.4.1 depicts, it can be interpreted 52% of the customers first preference take

250ml cold drink,27% of the customers second preference take 200ml cold drink,16% of the

customers third preference take 300ml cold drink,5% of the customers fourth preference take

can. Most of the customers’ first preference takes 250 ml cold drink.

27%

52%

16%

5% 0%

10%

20%

30%

40%

50%

60%

200ml 250ml 350ml Can

Pepsi

71

4.4.2 Status of Category of purchase preference of Pepsi drinks

TABLE-4.4.2

PEPSI TOTAL PERCENTAGE

200ml 12 18%

250ml 40 62%

300ml 08 12%

Can 05 08%

Figure :4.4.2

INRERPRETATION :

From the above table, it can be interpreted 62% of the customers’ first preference

takes 250ml cold drink,18% of the customers’ second preference takes 200ml cold drink,12%

of the customers’ third preference takes 300ml cold drink,8% of the customers fourth

preference take can. Most of the customers first preference take 250 ml cold drink.

18%

62%

12% 8%

0%

10%

20%

30%

40%

50%

60%

70%

200ml 250ml 350ml Can

Pepsi

72

4.5 Number of Respondents Area wise?

Table-4.5

Sl.No. AREA NUMBER OF OCCUPIED

1 Balaga Junction 6

2 7 Road Junction 22

3 Bankers Colony 49

4 Illisipuram Junction 73

Figure : 4.5

INTERPRETATION:

Table4.5 shows, it can be interpreted that 7 Road Junction occupied 15%, Balaga

Junction occupied, Bankers Colony occupied 32% and Illisipuram Junction occupied 49%.

These description belongs to total pepsi retailers occupied in 4 areas.

6

22

49

73

0

10

20

30

40

50

60

70

80

Balaga Junction 7 road Junction Bankers Colony Illisipuram

Area

73

4.6. Statues of watch soft drink advertisement in T.V

TABLE-4.6

Yes 98%

No 2%

Figure :4.6

INTERPRETATION:

Figure4.6 reflects, it can be interpreted 98% of the people watch soft drink

advertisement in T.V, 2% of the people did not watch soft drink advertisement in T.V Most

of the customers watch soft drink advertisement in T.V.

0%

20%

40%

60%

80%

100%

120%

Yes No

Advertisement

74

4.7 Statues of brand of prefer packaged drinking water

TABLE-4.7

BRAND TOTAL PERCENTAGE

Aquafina 20 10%

Bislery 54 27%

Water packet 88 44%

Kinley 23 12%

Others 15 7%

Figure : 4.7

INTERPRETATION:

From the above table, it can be interpreted 44% of the customers prefer drink a

packaged drinking water packet,27% of the customers prefer drink a packaged drinking

water bislery,12% of the customers prefer drink a packaged drinking water kinle,10% of the

customers prefer drink a packaged drinking water aquafina,7% of the customers prefer drink

a packaged drinking water others, Most of the customers prefer drink a packaged drinking

water packet.

10%

27%

44%

12% 7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Aquafina Bislery Water Packet Kinley Others

Brand

75

4.8 .Place of buying statues of soft drink

Table-4.8

BUYING PLACE TOTAL PERECENTAGE

Panshop 82 41%

Kirana shop 16 8%

Super market 73 37%

As per convenience 29 14%

Figure : 4.8

INTERPRETATION:

It was found that, can be interpreted 41% of customers buy a soft drink in a

panshop,37% of customers buy a soft drink in a super market,14% of customers buy a soft

drink in as per convenience,8% of customers buy a soft drink in a kirana shop.Most of the

people buy a soft drink in a panshop.

41%

8%

37%

14%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Panshop Kirana Shop Super Market As perConvience

Buying Place

76

4.9. Reason for drinking soft drink

TABLE-4.9

REASON TOTAL PERCENTAGE

Thirsty 45 22%

Hungry 20 10%

Refreshment 130 65%

None of the above 5 3%

Figure : 4.9

INTERPRETATION:

Table4.9 depicts, it can be interpreted 65% of the customers drink a soft drink for

refreshment,22% of the customers drink a soft drink for refreshment,10% of the customers

drink a soft drink for refreshment,3% of the customers drink a soft drink for refreshment.

Most of the customers drink a soft drink for refreshment.

22%

10%

65%

3% 0%

10%

20%

30%

40%

50%

60%

70%

Thursty Hungry Refreshment None of the Above

Reason

77

4.10. Statues of recent advertisement of soft drink

TABLE- 4.10

ADVERTISEMENT TOTAL PERCENTAGE

7up 25 12%

slice 24 11%

Mountain dew 10 5%

pepsi 65 32%

mirinda 11 6%

cocacola 8 4%

fanta 9 5%

thumsup 35 18%

limca 13 7%

Figure : 4.10

INTERPRETATION:

From the above table, it can be interpreted 32% of customers remember Pepsi

advertisement,18% of customers remember Thumpsup advertisement,12% of customers

remember 7up advertisement,11% of customers remember slice advertisement.7% of

customers remember limca advertisement,6% of customers remember mirinda

advertisement,5% of customers remember mountain dew and fanta advertisement,4% of

customers remember cocacola advertisement Most of the customer remember pepsi product

advertisement.

12% 11% 5%

32%

6% 4% 0%

5%

10%

15%

20%

25%

30%

35%

7up Slice Mountain Dew

Pepsi Mirinda Coco-Cola

Advertisement

78

CHAPTER-5

SUMMERY,FINDING,SUGGESTION

5.1 SUMMARY

The Project Entitled “Consume behavior towards Pepsi products” in pearl bottling

pvt.ltd consists of 5 chapters. The first chapter deals with Introduction Need of the Study

Objectives Methodology Limitations of the study.

The introduction deals with customer satisfaction with related to industry topic. The

customer satisfaction gives business expansions and promotions to retain and attract

customers. “Marketing begins with the customer and ends with the customer”. Companies

address needs by putting forth a value proposition, a set of benefits they offer to consumer to

satisfy their needs. The intangible value preposition is made physical by an offering, which

can be a combination of products, information and experiences. The offering will be

successful if it delivers value and satisfaction to the target buyers.

The need for the study deals to organize an in-depth study to understand the customer

tastes and preference regarding products. The primary objectives of the study were to know

the marketing audit, promotional activities by using signage, advertising, to know the

percentage of Pepsi occupy in different areas, to know the problems of retailers regarding the

distribution and identify the retailers opinion towards Pepsi products. Limitation for the

study is the sample size is not universal, some part of other cities remained uncovered

Unavailability of some information due to lack of awareness of retailers Time and expenses

were major constraints

In the Second Chapter, it gives Industry Profile and company profile in that birth of

the cold drink industries, basics of cold drink industries and its globalized activities.

The Third Chapter deals with the theoretical framework and, its offerings and future aims

.It has its own brand image in srikakulam and having width and depth of distribution through

their branches in many parts of Andhra Pradesh.

The Fourth Chapter deals with the data analysis and interpretation. The main part of

the report i.e., Analysis part is covered in this chapter. I did survey in 200 samples in 4

various areas. After conducting the survey I interpreted the total collected information using

79

a structured questionnaire. The required information is derived from that interpretation and

analysis. This analysis part contains tables and pie charts.

The Fifth Chapter deals with the summary of the topic. It gives brief conclusion of

the above four chapters. In this chapter the interpretation and analysis part also included. It

also includes summary, findings and suggestions, which give the entire idea of the topic

studied at a glance.

80

5.2 FINDINGS

The soft drinks market is growing day by day in India.

More than the half the total sells PEPSI products, but coming to the exclusive Pepsi

outlets.

Pepsi’s bottling strength is also very less compared to Coke.

Pepsi need to improve its taste otherwise launch a new cola product which having

good taste and very strong like Thums-Up

The survey is not 100% accurate, because customers and others are not willing to

give appropriate data.

The company is maintaining the quality of the products and it has good quality

control Dept.

Now a day because of changing the food habits the soft drinks are added to their food

habits.

Pepsi soft drinks are occupying more than half of the soft drinks market.

The demand for the fruit based soft drinks is go on increasing and they occupied the

top selling drinks position.

The retailers are not provided any credit on the purchase of the drinks.

Advertisements for every drink are given individually, because of that the consumers

are not aware of the total drinks offered by the company and the expenses will more

for the company.

81

5.3 SUGGESTIONS

The company has to increase its quality more and also has to introduce more verities

of drinks in to the market to increase its market share.

It has to change the advertisements in a manner that add the soft drinks as a part of

food.

The Pepsi has some more scope to increase its market share and it has to strive for

that.

Company has to concentrate on the fruit based drinks and add some more fruit based

drinks to the product line.

Pepsi Company has to increase the offers to the customers as well as retailers.

The dealers should provide the sufficient information to the retailers about the

products and the new offers to the retailers provided by the company.

The dealers should be provided the credit up to some limits by the company.

The advertisement should be given as a whole that will bring the awareness about the

products and reduce the advertisement cost of the company also.

Pepsi should take advantage of those target areas which are still not in coverage.

Target should be sent in such a way that it benefits both the Distributors, Company

and have a rise in sales.

Distributors should go into the market thrice in a week for market study.

The company should have to give the positive response over the complaints of the

outlets.

Pepsi should be given in credit to the retailers.

.

82

5.4 CONCLUSION

The project was a great experience for me in order to study the marketing aspects in

the world. It was a great opportunity for me to express what I have studied.

This industry is a place where two major players are there in the world. This Pepsi

Company gave me lot of opportunity and scope to understand the soft drink industry and its

marketing structure and distribution channels.

Lot of valuable information regarding the company and also the consumers, has been

collected from the survey which helped me clearly to understand the real problems faced by

the marketers to distribute and also make retailers to sell the company’s products in the

market. I understood who difficult to do the marketing in the present scenario.

The suggestions made to the company were really applicable for the growth and

benefit for the company in order to increase its market share and to become the market leader

in the soft drink industry, because a large number of competitors craving for the same

market.

Thus, finally it can be said that the industry needs a lot of channel management

activities to done along with various promotional strategies for the consumer by using

different signage. I wish the company to achieve its objectives achieved soon.

83

APPENDIX

QUESTIONNAIRE

CONSUMER BEHAVIOUR STUDY BY MBA PROJECT STUDENT

NAME OF THE STUDENT : SANTOSH KUMAR.GUTTU

DATE OF SURVEY : /O5/2012

COLLEGE&TOWN : ADITYA INST.,OF TECHNOLOGY & MANAGEMENT (TEKKALI)

NAME OF THE CONSUMER :

M/F :

AREA :

OCCUPATION :

PHONE :

AGE :

1) Which brand of cold drink you like the most? ( )

a) Pepsi b) Mirinda orange c) Mirinda lemon d) 7up

e) Tropicana twister f) Mountain Dew g) Slice h) Diet Pepsi

i)Nimbooz j) Thumps up k) fanta l)Coca cola

m)Sprit n) Nimboo fresh O) Maaza p) Limca

q)Diet coke r)Minutemaide

2) Why you prefer this brand? ( )

a) Taste b) Advertisement c) Easily available d) Packing is

attractive

3) How many times in a week, you take cold drink? ( )

a) Once b) Twice c) Thrice d) More then three

4) Which quantity of your cold drink you often purchase? ( )

a) 200ml b) 250ml c) 300ml d) cane

5) pepsi products range occupied area? ( )

a) balaga b) illisipuram c) 7road junction d) bankers colony

6) Do you watch soft drinks advertisement In TV? ( )

a) Yes b) No

84

7) if you want to drink packaged drinking water which brand you prefer ? ( )

a) Aquafina b) Bislery c)Water packet d) Kinley

e) Others

8) Where do buy the soft drink ? ( )

a) Pan shop b) kirana shop c) Super market d) As per

convenience

9) What is the reason to drink soft drinks ? ( )

a) Thirsty b) Hungry c) Refreshment d) None of the

above

10) Please mention one recent advertisement of soft drink remember by you ?

11) Any suggestions?

85

BIBLIOGRAPHY

AUTHOR TITLE/PUBLISHER/EDITION

1. Phillip kotler, keller Kevin - Marketing management / prenctice hall of India /14th

edition

2. Blackwell, miniard Engle - Consumer behavior / Thomson /volume 10

3. Shciff man - Consumer behavior / Himalaya publisher / volume 9

4. A.J lamba - Retail management / mc graw-hill / year-2007

5. Swapana pradhan - Retail management / volume-2 / year-2007

www.google.com

Hand books of statistical data

Pepsi websites:

www.pepsiworld.com

www.pepsico.com

News Papers

Business India Magazine