1. SUMMER TRAINING
PROJECT REPORT
ON
DISTRIBUTION STRATEGY OF PEPSI
VARUN BEVERAGES LTD
PEPSICO
(Greater Noida)
Submitted for the partial fulfillment of the requirement for the award
Of
POST GRADUATION DIPLOMA IN MANAGEMENT
[Affiliated to A.I.C.T.E Approved, New Delhi]
(2011-2013)
UNDER THE GUIDENCE OF :- SUBMITTED BY :-
Mr. Amit Sharma BAIDYANATH CHAUBEY
(Senior Customer Executive) I D no. 111012
PGDM
Batch : 2011- 2013
GNIT –COLLEGE OF MANAGEMENT
GREATER NOIDA –201306 (U.P)
1

2. CONTENT PAGE NO.
Project Detail 1
Certificate 2
Preface 3
Acknowledgement 4
Observations 5
Executive Summary 6
Introduction 7 to 9
Company Profile 10 to 17
Overview PepsiCo 18 to 19
PepsiCo Overcame Competition 20 to 24
Business Segment 25 to 35
Key Element of Trade 36 to 43
Promotion 44 to 47
Distribution Strategy 48 to 54
Research Methodology 55 to 56
Data Analysis From Retailer and Distributor 57 to 91
Analysis of Finding and Observation 92
SWOT Analysis 93 to 94
Conclusion 95 to 96
Limitation 97 to 98
Recommendation 99 to 101
Bibliography 102
Annexure 103 to 108
2

3. GREATER NOIDA COLLEGE OF MANAGEMENT
6-c, Knowledge Park-II, Greater Noida, U.P
Date:-
TO WHOM IT MAY CONCERN
This is to certify that BAIDYANATH CHAUBEY student of PGDM
course (2011-2013) at GNIT COLLEGE OF MANAGEMENT with dual
specialization in “MARKETING & IB” has satisfactorily completed the
summer research project on “DISTRIBUTION STRATEGY OF
PEPSI”. This study is done under the guidance of the undersigned for
partial fulfillment for the award of PGDM. I wisher all the best for
bright future ahead.
Mentor:-
Mr PRASHANT DEV YADAV
3

4. PREFACE
Marketing plays import role in today’s business scenario in consumer
product Company, there is such a high competition in the market. Summer
project in PGDM program is providing job experience. In The summer
program we gain academic knowledge as well as corporate culture.
The emphasis in the project is providing the study and an insight into Indian
FMCG Business Scenario. The Summer Project is designed to provide
participation of PGDM program as on the job experience. This has given a
chance to try and apply the academic knowledge and gain insight into
corporate culture. This helps in developing decision-making abilities and
emphasizes on active participation by the student.
We undertook our Project in Varun Beverages, a leading Bottler and
Marketing partner of the Pepsi Foods. During the training, we had worked
on the project “Distribution strategy of PEPSI in GREATER NOIDA.”
We gained valuable experience & knowledge during the survey. The Project
consists of our findings customer behave relate goods market search after
data analysis & then SWOT analysis & conclusions were drawn and finally
recommendations were put forward.
4

5. ACKNOWLEDGEMENT
I owe my gratitude to many people who helped and supported me during the
entire Summer Training.
My sincere thanks to Mr.Prashant Dev Yadav the Guide of the project, for
initiating and guiding the project with attention and care. He/ She have
always been available for me to put me on track from time to time to bring
the project at its present form.
My deep sense of gratitude is due to Mr. Ashvani Sharma, Mr. Amit Sharma
(Marketing Manager , Senior Customer Executive) Of Varun Beverages Ltd.
Surajpur, Greater Noida (U.P). for allowing me to carry out the Summer
Internship and this Project at the organization and to be constantly available
to me for the period, for guidance. He/ She also helped me to see the subject
of study in its proper perspective. Thanks and appreciation is also due to the
officials, employees and respondents of Varun Beverages Ltd. Surajpur,
Greater Noida (U.P), for their support.I also thank my Institution and my
faculty members without whom this project would have been a distant
reality.
Signature
(Baidyanath Chaubey) Place: Greater Noida
Date:
5

6. Observations:-
• To collect order from each and every outlet.
• To check visi-cooler with 100% purity.
• To see is the soft drink is in Brand Order.
• To see every outlet, is the soft drink present in display rack.
• To see every outlet visi- cooler will present in prime location or
not.
• To visit every outlet in regular basis.
• To go every outlet and listen the problems of retailer and
shopkeeper related to visi- cooler and soft drink which is to be
noted in complaint diary.
• To see each that each and every outlet worked in better condition.
• To see as a Market developer (M.D) every outlet full fills in terms
and conditions with visi-Cooler.
• To see as a Market developer (M.D.) if any outlet will not selling
your product than you asked why you are not selling my product.
Then you give advice to outlet.
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7. EXECUTIVE SUMMARY
The distribution network of PEPSI is well known for its efficiency but
company constantly strives for the betterment of their distribution network
system. Emphasis of our study was to focus on the customer of company
i.e., the retailers.
The Retail Mapping of Greater Noida is an integral step for the assessment,
development and betterment of this system. The distribution system not only
comprises the movement of the products but also incorporates the
merchandising of the product, which is very broad in its purview.
The project incorporates the analysis of the perform of PEPSI and probing
into opportunities of increasing the market share in Greater Noida. The
entire process had to be in an organized manner in order to deliver
meaningful results for the purpose of decision-making. The project was that
of market research with surveys and observations as its major phases with
the objective of gathering of all important information material for
strengthening the position of PEPSI in Greater Noida.
PEPSI boasts of having the maximum market share in the beverage segment
in Greater Noida and is in constant process for the betterment of its product
performance and customer as well retailer’s satisfaction.
7

8. INTRODUCTION
Modern age is full of competition. Today only way of success is your
continuous efforts towards the growing market needs and in satisfying them.
It is the marketer job to know what the market speaks i.e. the ever changing
needs of the customer through market research & adopt them fruitfully. It is
must for all the companies to make policies according to the customers and
the govt. Today to succeed for any organization has to target its customer
needs, to create a culture in the organization i.e. market conscious &
responsive to customer needs.
Soft drinks industry has become big business in India in recent years.
The soft drink business under went major change with the entry of PEPSI
and re-entry of COCA-COLA in India in the late 80s when Parley with
brands like Thums up, Limca & Gold spot was a clear leader. Coca-Cola
took up the product line of parley in 1993-94; today both brands are the
Indians favorite soft drinks.
8

9. PepsiCo Inc.
Type Public
Traded as NYSE: PEP
S&P 500 Component
Industry Foods, Beverages
Founded North Carolina, U.S. (1965)
Founder(s) Donald Kendall, Herman Lay
Headquarters Purchase, New York, U.S.
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10. Area served Worldwide
Key people Indra Nooyi
(Chairman & CEO)[1]
Products See list of PepsiCo products
Revenue US$ 66.504 billion (2011)[2]
Operating income US$ 9.633 billion (2011)[2]
Net income US$ 6.462 billion (2011)[2]
Total assets US$ 72.882 billion (2011)[2]
Total equity US$ 20.899 billion (2011)[2]
Employees 297,000 (2011)[2]
Divisions PepsiCo Americas Foods; PepsiCo Americas Beverages; PepsiCo
Europe; PepsiCo Asia, Middle East & Africa
Subsidiaries List of subsidiaries
Website PepsiCo.com
10

11. COMPANY PROFILE-PEPSI CO. (US)
COMPANY PROFILE-PEPSI CO. (US)
PepsiCo is a world leader in convenient foods and beverages, with revenues
of about $66.50 billion, over 2, 97,000 employees and total equity $20.899
billion. The company consists of the snack business of Frito-Lay North
America and the beverage and food businesses of PepsiCo Beverages and
Foods, which includes PepsiCo 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 100-years-old, but the corporation
is relatively young. PepsiCo was founded in 1965 through the merger of
11

12. Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo
merged with The Quaker Oats Company, including Gatorade, in 2001.
Pepsi-Cola Company - Pepsi-Cola (formulated in 1898), Diet Pepsi (1964)
and Mountain Dew (Introduced by Tip Corporation in 1948).
Frito-Lay, Inc. - Fritos brand corn chips (created by Elmer Doolin in 1932),
Lay's brand potato chips (created by Herman W. Lay in 1938), Cheetos
brand cheese flavored snacks (1948), Ruffles brand potato chips (1958) and
Rolled Gold brand pretzels (acquired 1961).
PepsiCo is the world leader in the food chain business. It consists of many
companies amongst which the prominent one is Pepsi cola, frito lay, Pepsi
food international, pizza hut, and KFC and taco bell. The group is presently
into three most profitable businesses namely, beverages, snack foods and
restaurants. It has scores of big brand available in nearly 150 countries
across the globe.
The beverages segment primarily market Pepsi diet, mountain dew and other
brands worldwide and 7UP outside the U.S. market. They are positioned in
close competition with Coca-Cola inc. of USA. A point to be noted is that
coca cola get 80% of its profit from international operation while same
figure of Pepsi co. stand at 6%, the segment is also in the bottling plants and
distribution facilities.
The restaurant segment primarily consists of the operations of the worldwide
pizza hut, Taco Bell and KFC.
Long time no.2 player in the cola wars, Pepsi co. is widening the play field,
over the last years; the company has invested more than $2billion in its
worldwide operations.
When Coca-Cola changed its formula in 1985, Pepsi stepped up its
competition with its long time archival claiming victory in the cola wars.
Coke and Pepsi expanded their rivalry to tea in 1991 when Pepsi formed a
venture with #1 Lipton in response to coke’s announced venture with nestle
(Nestea) it has won over 30% of the ready to drink tea market, a part of the
so called "new age” beverages segment.
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13. The beverage industry has witness the phenomenal growth over the last few
years necessitating capacity increase and builds up of commensurate
infrastructure to meet the business growth, which is accordingly matched.
PepsiCo’s success is the result of superior products, high standards of
performance, distinctive competitive strategies and the high integrity of our
people.
PEPSI – THE INDIAN EXPERINCES
• Pepsi is one of the most well known brands in the world today available in
over 200 countries. The company has an extremely positive outlook for
India. "Outside North America two of our largest and fastest growing
businesses are in India and China, which include more than a third of the
world’s population." (PepsiCo’s annual report, 1999)
• This reflects that India holds a central position in Pepsi’s corporate
strategy. India is a key market for PepsiCo, and at the same time the
company has added value to Indian agriculture and industry. PepsiCo
entered India in 1989 and is concentrating in three focus areas – Soft drink
concentrate, Snack foods and Vegetable and Food processing
• Faced with the existing policy framework at the time, the company
entered the Indian market through a joint venture with Voltas and Punjab
Agro Industries. With the introduction of the liberalization policies since
1991, Pepsi took complete control of its operations. The government has
approved more than US$ 400 million worth of investments of which over
US$ 330 million have already flown in
• One of PepsiCo’s key strategies was to develop a completely local
management team. Pepsi has 19 company owned factories while their Indian
bottling partners own 21
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14. The two advertisements tags: ‘yehi hai right choice baby’ and ‘nothing
official about it’ immediately ring a bell- it’s got to be Pepsi.
The advertisement tag ‘yehi hai right choice baby’ was the first ‘Hinglish’
slogan ever used in the in the Indian market. This slogan proved to be the
best suited one for Pepsi and it was a mega hit and at that moment of time.
Pepsi in a short span of its operations in India has found a place in the hearts
and minds of the Indian consumers. The success has primarily been due to
the innovative and passionate Indian team, which has been built over the
years. Pepsi is a trendsetter managed and run by Indians, where important
decisions are taken locally.
Pepsi started its operations in India in 1989 and since then PepsiCo has set
up a fully integrated operation in India viz. Manufacturing, Research &
Development, Marketing, Distribution and Franchising- covering
fruit/vegetable processing, Exports, and Snack Foods & Beverages. In the
mean time Pizza Hut and Frito Lay’s are the examples in this regard only
Pepsi has 40 bottling plants in India, out of which 16 are company owned
and 24 are owned by Indian franchisees. One of the major players in
franchisee is RKJ Group.
The RKJ group is India's leading supplier of retailer brand
Carbonated and Non-Carbonated soft drinks, with beverage manufacturing
facilities in India and Nepal. Its experience in the beverage industry dates
back to the sixties when it had the first franchise at Agra.
It has the license to supply beverages in the territories of Western U.P., part
of M.P., half of Haryana, whole of Rajasthan, Goa, 3 districts of
Maharashtra, 9 districts of Karnataka and whole of Nepal. The group has in
total 18 bottling plants in India & Nepal and is responsible for producing
and marketing 44% of Pepsi requirement in India.
This group has brought name and fame to the Pepsi as in all this regions
Pepsi is at the commanding position and in the mean this group has
diversified itself into ice cream, suiting and shirting’s, restaurants, beer plant
in Mauritius & edible oil plant in Sri Lanka.
14

15. COMPANY PROFILE-JAIPURIA GROUP: IN INDIA
With a Legacy of decades in the industrial arena, the Jaipuria Group of
Companies now stands at the one thousand five hundred Crore marks. The
group boasts of its several world-class business arenas like those of Textiles,
Bottling, education, and information technology, Food Chain and Retailing,
apart from numerous other business segments
JAIPURIA GROUP is an Rs.1500 Crore, family controlled, reputed business
house with over a century of operations in diversified fields.
The group as on today can boast of expertise and leadership in the fields of
food and beverages, textiles and real estate development with varied
interests in a wide Range of products and services.
The Jaipuria Group under the leadership of the three brothers SK Jaipuria,
RK Jaipuria and CK Jaipuria has today become one of the leading business
houses of
the country.
The following are the major areas of operations of the Jaipuria Group:
15

16. • Food and Beverages
• Textiles
• Information Technology
• Real Estate
• Education
It can be said with absolute certainty that the RKJ Group has carved out a
special niche for itself. Our services touch different aspects of commercial
and civilian domains like those of Bottling, Food Chain and Education.
Headed by Mr. R. K. Jaipuria, the group as on today can lay claim to
expertise and leadership in the fields of education, food and beverages.
The business of the company was started in 1991 with a tie-up with Pepsi
Foods Limited to manufacture and market Pepsi brand of beverages in
geographically pre-defined territories in which brand and technical support
was provided by the Principals viz., Pepsi Foods Limited. The
manufacturing facilities were restricted at Agra Plant only.
Varun Beverages Ltd. is the flagship company of the group.
The group also became the first franchisee for Yum Restaurants
International [formerly PepsiCo Restaurants (India) Private Limited] in
India. It has exclusive franchise rights for Northern & Eastern India. It has
total 27 Pizza Hut Restaurants under its company.
We diversified into education by opening our first school in Gurgaon under
management of Delhi Public School Society. The schools of the group are
run under a Registered Trust namely Champa Devi Jaipuria Charitable
Trust.
Companies are medium sized, professionally managed, unlisted and closely
held between Indian Promoters and foreign collaborators.
The group added another feather to its cap when the prestigious PepsiCo
“International Bottler of the Year” award was presented to Mr. R. K.
Jaipuria for the year 1998 at a glittering award ceremony at PepsiCo’s
centennial year celebrations at Hawaii, USA. The award was presented by
Mr. Donald M. Kendall, founder of PepsiCo Inc. in the presence of Mr.
George Bush, the 41st President of USA, Mr. Roger A. Enrico, Chairman of
16

17. the Board & C.E.O., PepsiCo Inc. and Mr. Craig Weatherup, President of
Pepsi Cola Company.
Vision of the Company:
BEING THE BEST IN EVERYTHING WE TOUCH AND HANDLE.
Mission of the Company:
Continuously excel to achieve and maintain leadership position in the
chosen businesses; and delight all stakeholders by making economic value
additions in all corporate functions.
MAIN CREDENTIALS
1. VARUN BEVERAGES LIMITED received" GOLD STANDARD
AWARD" for the production and quality control for the year 1996-97.
2. Jaipuria group was adjudged “Best Bottler “out of more than 2000 bottles
all over the world for the year 1996-97.
3. In 2011, The Brand Trust Report in India included Pepsi in the list of the
most trusted brands of the country.
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18. PepsiCo – The Parent Company
PepsiCo, Inc. is one of the world's largest food and beverage companies. The
company's principal businesses include:
• Frito-Lay snacks
• Pepsi-Cola beverages
• Gatorade sports drinks
• Tropicana juices
• Quaker Foods
PepsiCo, Inc. was founded in 1965 through the merger of Pepsi-Cola and
Frito-Lay. Tropicana was acquired in 1998. In 2001, PepsiCo merged with
the Quaker Oats Company, creating the world’s fifth-largest food and
beverage company, with 15 brands – each generating more than $1 billion in
annual retail sales. PepsiCo’s success is the result of superior products, high
standards of performance, distinctive competitive strategies and the high
level of integrity of our people.
Pepsi-Cola North America, headquartered in Purchase, N.Y., is the
refreshment beverage unit of PepsiCo Beverages and Foods North America,
a division of PepsiCo, Inc. PepsiCo Beverages and Foods North America
also comprises PepsiCo's Tropicana, Gatorade and Quaker Foods businesses
in the United States and Canada.
18

19. Pepsi-Cola North America's carbonated soft drinks, including: Pepsi, Diet
Pepsi, Pepsi Twist, Mountain Dew, Mountain Dew Code Red, Sierra Mist,
and Mug Root Beer account for nearly one-third of total soft drink sales in
the United States.
Pepsi-Cola North America's non-carbonated beverage portfolio includes
Aquafina, which is the number one brand of bottled water in the United
States, Dole single-serve juices and Sobs, which offers a wide range of
drinks with herbal ingredients. The company also makes and markets North
America's best-selling, ready-to-drink iced teas and coffees via joint
ventures with Lipton and Starbucks, respectively.
Overview – PepsiCo
The PepsiCo challenge (to keep up with archrival The Coca-Cola Company)
never ends for the world's #2 carbonated soft-drink maker. The company's
soft drinks include Pepsi, Mountain Dew, and Slice. It owns Frito-Lay, the
world's #1 maker of snacks such as corn chips (Doritos, Fritos) and potato
chips (Lay's, Ruffles). Cola is not the company's only beverage: PepsiCo
sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina
water. PepsiCo also sells Dole juices (licensed) and Lipton ready-to-drink
tea (licensed from Unilever). Its Quaker Foods division offers breakfast
cereals (Life), pasta (Pasta Roni), rice (Rice-A-Roni), and side dishes (Near
East). Wal-Mart is PepsiCo's largest customer, accounts for 9% of sales.
PepsiCo may be vying for more Pepsi-drinking people but its hefty snacks
and juice sales help to quench the company's thirst for bottom-line growth.
Frito-Lay's salty snacks rule the US market; the snack division accounts for
about one-third of company sales.
The company announced a major restructuring in 2007, splitting its two
business units (Pepsi-Cola North America and PepsiCo International) into
three: one for US food, a second for US drinks, and a third for food and
drinks abroad. CEO Indra Nooyi said that due to the company's healthy
growth in recent years, PepsiCo is approaching a size that can be better
managed as three units rather than two.
19

20. The split looks like this: PepsiCo Americas Foods includes Frito-Lay North
America, Quaker, and the Latin American food and snack businesses;
PepsiCo Americas Beverages includes North American beverage sales,
including Gatorade and Tropicana; and PepsiCo International includes
business in the UK, the rest of Europe, Asia, the Middle East, and Africa.
With a saturated soft-drink market, the company continues to try new
iterations: In 2007 the company introduced its first vitamin-enhanced water,
called Aquafina Alive. It signed a licensing agreement with Ben & Jerry's in
2006 for the sale of Ben & Jerry's milkshakes in the US, as well as a deal
with Starbucks for the distribution of the coffee purveyor's Ethos water
brand. Hot on the heels of Coke's introduction of Blak, in 2006 Pepsi
launched a coffee-flavored cola, named, Pepsi Max Cino, in the UK.
Venturing further into the non-cola category, PepsiCo acquired sparkling
juice companies IZZE and Naked Juice in 2006. It also began selling
Fuelosophy, a smoothie drink, at organic grocery store chain Whole Foods,
and struck a deal to develop products with juice maker Ocean Spray
Cranberries.
Bowing to the public's growing concern about childhood obesity, in 2006
Pepsi, along with Coca-Cola, Cadbury Schweppes, and the American
Beverage Association agreed to sell only water, unsweetened juice, and low-
fat milk to public elementary and middle schools in the US. As for high
schools, the agreement calls for no sugary sodas to be sold and one-half of
the offered drinks to be water, diet sodas, lemonade, or iced tea. The
agreement was facilitated by former president Bill Clinton.
CEO Steve Reinemund stepped down as CEO in 2006 in order to spend
more time with his family. His replacement was Indra Nooyi, the company's
president and CFO. Indian-born Nooyi, the 11th female CEO of a
FORTUNE 500 company, has been instrumental in strategic decisions at the
company, such as the acquisition of Tropicana and merger with Quaker
Oats.
Shortly after her appointment, Nooyi restructured the top level of power at
the company. She appointed John Compton, previously head of the Quaker-
Tropicana-Gatorade unit, to the newly created position of CEO for PepsiCo
North America, reporting directly to her.
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21. How PepsiCo overcame Competition
How PepsiCo outgunned Coke:
Losing the cola wars was the best thing that ever happened to Pepsi while
Coke was celebrating; PEPSI took over a much larger market.
Pepsi beat Coke in December for the first time in their 108-year rivalry,
surpassing its nemesis in market capitalization. The great irony of Pepsi's
rise is this: It has never sold more soda than Coke, even today.
"Pepsi's been on fire," notes Robert van Brugge, beverage analyst with
Sanford 55Bernstein. Over the past five years its stock has risen more than a
third, while Coke's has sunk 30 percent.
Even ten years ago, it was easy to write off PepsiCo (Research) as the loser
in the cola wars against Coke (Research): the proof was everywhere. The
company's profits trailed those of its rival in Atlanta by 47 percent. Its value
in the stock market was less than half of Coca-Cola's. Coke's CEO at the
time, Roberto Goizueta, was so sure of his company's dominance that he
practically dismissed Pepsi, telling FORTUNE, "As they've become less
relevant, I don't need to look at them very much anymore."
PepsiCo turned its cola Waterloo into an opportunity to retrench, regroup,
and ultimately outflank its old foe. Losing the cola wars, it turns out, was the
best thing that ever happened to Pepsi. It prompted Pepsi's leaders to look
outside the confines of their battle with Coke.
A decade ago, Coke offered investors a compelling story: a recession-
resistant product inexpensive enough that consumers would buy it in good
times and bad, but valued enough that they would willingly pay an extra
nickel or so above what no-name brands charged.
What Coke investors didn't envision was that an emerging preference for
other soft beverages --water, sports drinks -- would fracture demand. Nor did
they see that the business strengths that once applied to cola would take hold
across a broadened soft drink and snack-food market -- a market that Pepsi,
and not Coke, dominated.
21

22. "They were the first to recognize that the consumer was moving to
noncarbonated products, and they innovated aggressively," observes Gary
Hemphill of Beverage Marketing.
PepsiCo embraced bottled water and sports drinks much earlier than its rival.
Pepsi's Aquafina is the No. 1 water brand, with Coke's Dasani trailing; in
sports drinks, Pepsi's Gatorade owns 80 percent of the market while Coke's
PowerAde has 15 percent.
Throughout the past five years under CEO Steve Reinemund, the company
has deftly moved with every shift in consumer tastes. "He's thinking about
what the products should look like in the future," says Victor Dzau, a
director of PepsiCo.
22

23. SCA’s
Three major sustainable competitive advantages give PepsiCo a
competitive edge as we operate in the global marketplace:
• Big muscular brands;
• Proven ability to innovate and create differentiated products; and
• Powerful go to market systems.
Build and Born SCA’s:
Hyper competition;
• Cost and Quality.
• Timing and know how.
• Strongholds.
• Deep pockets.
Strategic Competitive Advantage
Exploitation
Launch Counterattack
Profits from a
sustained
competitive Traditional View
advantage
Time
Firm has already moved to advantage 2
Exploitation
Profits from a Counterattack
series of
actions Hypercompetition
Time
Launch
23

24. Fig: 1Coke: 1886; Pepsi: 1893.
1933: Pepsi struggling to stave off bankruptcy. Dropped price of its 10c, 12
oz. bottle to 5c, making it a better value. Ad jingle “twice as much for a
nickel” better known in the US than the Star Spangled Banner.
Coke
Price / Ounce
Price / Ounce
Pepsi Coke Pepsi
Perceived Quality Perceived Quality
Fig.2
Pepsi keeps price advantage through 60s and 70s, when Pepsi charged its
bottlers 20% less for its concentrate.
With rising ingredient costs, Pepsi could no longer offer twice as much for
the same price. So, it raised price to Coke’s level giving it a war chest to fuel
an aggressive ad campaign. Battle shifted from Price to Quality, with Pepsi
targeting the youth.
Coke
Price / Ounce
Price / Ounce
Pepsi Coke Pepsi
24
Perceived Quality Perceived Quality

25. What followed was the Pepsi Challenge & “Real Thing” Coke ads
Fig.3
Pepsi Coke First move:
Price / Ounce
Price / Ounce Pepsi
Challenge
Youth & Middle
Class Segments 2nd move:
Coke’s Ad war
Fig.4 Perceived Quality Perceived Quality
Perceived quality caught up. Deeper pocketed and lower cost Coke initiated
a price war in selective markets where Pepsi was weak in the 70s. Pepsi
responded with its discounts and by the end of the 80s, 50% of food store
sales were on discount.
Other companies moved into the lower left quadrant of.
25

26. BUSINESS SEGMENTS
The RKJ Group is divided into three-business segments- Beverage,
Food and Education. It has a leading market position in each of its
three business segments. Our balanced portfolio produced a solid
business performance. Products and services, which look to the
future, ensure that we will be well placed in growth markets.
26

27. BEVERAGE INDUSTRY
Indian Beverages industry’s size is Rs. 8000 Crore and it is dominated by
two player’s viz. Pepsi & Coke only. This high profile industry has lot of
potential for growth as per capita consumption in India is 8 bottles a year as
compared to 20 bottles in Sri Lanka, 14 in Pakistan, while 12 bottles a
person in Nepal.
The RKJ group is India's leading supplier of retailer brand Carbonated and
Non-Carbonated soft drinks, with beverage manufacturing facilities in India
and Nepal. Its experience in the beverage industry dates back to the sixties
when it had the first franchise at Agra.
27

28. The group manufactures and markets carbonated and Non-Carbonated Soft
Drinks and Mineral Water under Pepsi brand. The various flavors and sub-
brands are Pepsi, Mirinda Orange, Mirinda Lemon, Mountain Dew, and
7UP, Slice Mango, Evervess Soda and Aquafina.
It has the license to supply beverages in the territories of Western U.P., part
of M.P., half of Haryana, whole of Rajasthan, Goa, 3 districts of
Maharashtra, 9 districts of Karnataka and whole of Nepal. The group has in
total 18 bottling plants in India & Nepal and is responsible for producing
and marketing 44% of Pepsi requirement in India.
In order to later to this increasing demand, new bottling plants are being set
up at alwer, kosi, Jodhpur, Kathmandu and goa to produce400-600 bottles
per minute, which would mainly cater to northern markets of India. And in
future, they will also be used to manufacture fruits mince- based soft drinks
Like slice and mangola.
INGREDIENTS OF SOFT DRINK:
In the United States, 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.
In August 2010, PepsiCo entered into a 4-year agreement with Senomyx for
the development of artificial high-potency sweeteners for PepsiCo
28

29. beverages. Under the contract, PepsiCo is paying $30 million to Senomyx
for the research and future royalties on PepsiCo products sold using
Senomyx technology.
According to PepsiCo, PepsiCo's collaboration with Senomyx will focus on
the discovery, development and commercialization of sweet enhancers, with
the purpose of providing lower-calorie PepsiCo beverages. PepsiCo will
have exclusive rights to the Senomyx sweet flavor ingredients developed
through the collaboration.
See also
 Diet Pepsi
 Pepsi spokespersons
 Pepsi Max Big One (Roller coaster)
 Pepsi Orange Streak (Roller coaster)
 Pepsi Python (Roller coaster)
 Pepsi Billion Dollar Sweepstakes
 Mountain Dew
 AMP Energy
 Citrus Blast
 Pepsi Next
We only use the finest ingredients to make Pepsi-Cola products. To
guarantee our consumers consistent quality, each ingredient must pass our
high standards, rigorous quality control tests and strict bottling procedures.
Pepsi-Cola products contain natural flavors, including extracts of the kola
nut ND flavor oils derived from natural sources such as citrus and other
fruits. Caramel (made from corn sugar) adds color and flavor to our colas.
Other ingredients add a refreshing taste: phosphoric acid in colas; citric acid
and sodium citrate in Mountain Dew, Slice and Diet Pepsi.
We also put a freshness date on every can and bottle. Soft drinks may lose
some flavor over time so our freshness date tells consumers when the
product is freshest and best tasting.
Every can and bottle of Pepsi-Cola products has a Nutrition Facts panel,
which shows the number of calories and other nutrients per serving. There is
essentially no fat in any Pepsi-Cola a product. The main ingredients found in
29

30. Pepsi-Cola products include carbonated water, carbohydrates, sugar, sodium,
potassium and caffeine. For a complete breakdown by ingredients by
product, see our product information for Pepsi, Diet Pepsi, Mountain Dew,
Slice and Aquafina.
Ascorbic Acid
Another name for Ascorbic Acid is Vitamin C the Ascorbic Acid used in our
carbonated soft drinks functions as an antioxidant to protect the flavors,
color, and taste. In some beverages we also add it to provide the nutritive
value found in Vitamin C.
Aspartame
Aspartame is a sugar substitute used in our diet beverages and many other
food products. Aspartame is made of the same building blocks as protein, so
it is considered a "nutritive sweetener," but the very small amounts used in
diet drinks contribute no calories.
Blue1
Blue 1 is a FDA-approved food coloring used in a variety of products such
as jellies, condiments, puddings, and beverages.
Brominated Vegetable Oil (BVO)
Brominated vegetable oil has been used by the soft drink industry since
1931. It is a widely used food additive that has been extensively tested and
approved by the U.S. Food & Drug Administration.
Brominated vegetable oil is derived from soybean oil that has been modified
in order to keep the flavoring oils well blended.
Caffeine
30

31. Caffeine provides a characteristic flavor to soft drinks. Caffeine is naturally
found in coffee, tea and chocolate. For comparison, an 8-oz. cup of brewed
coffee can have from 85-120 mg of caffeine on average, while an 8-oz.
serving of Pepsi contains about 25 mg of caffeine. An 8-oz. cup of coffee
therefore contains three to four times as much caffeine found in a caffeinated
colon.
There is no caffeine in Caffeine Free Pepsi, Caffeine Free Diet Pepsi,
Aquafina, Slice, Mountain Dew or Mirinda.
Caramel
Caramel is a flavoring that is added to some of our beverages.
Citric Acid
Citric Acid can be found in citrus fruits such as lemons and oranges. Citric
acid is used to bring out the flavor of other ingredients and imparts a tang or
tartness to beverages. Citric acid is not Vitamin C. the same fruits that have
citric acid often have Vitamin C but the technical name for Vitamin C is
ascorbic acid.
Gum Arabic
Gum Arabic is a purified natural vegetable gum obtained from the acacia
tree and is used in keeping our carbonated beverages well blended.
High Fructose Corn Syrup
High Fructose Corn Syrup (HFCS) is a sugar derived from corn and
provides sweetness and taste to our beverages.
HFCS has the same sweetness as table sugar (sucrose) and has almost the
identical composition of fructose and glucose.
Natural Flavorings
31

32. Natural Flavorings are flavoring ingredients that are the essences or extracts
derived from natural plant sources.
Natural Flavorings are what gives a product its distinctive flavor and taste.
Pepsi products are the only products with these distinct flavor blends, which
are considered part of our secret formula. The term natural flavor is defined
by the food and drug administration and all of our natural flavorings meet
this definition.
Phosphoric Acid
A small amount of phosphoric acid is added to our soft drinks. However, it
is greatly diluted and is fully approved by the U.S. Food and Drug
Administration for use in soft drinks. Phosphoric acid provides tartness,
essential to a well-rounded flavor.
Phosphorus, like calcium, is an essential mineral in bone. It is widely
distributed in the food supply, including fish, milk, meat, eggs and cereal
grains.
Potassium
Potassium in Pepsi-Cola products may come from water or as part of certain
ingredients. For example, potassium may be combined with benzoic acid,
which helps prevent spoilage and flavor changes. Potassium is an electrolyte
that helps meet the mineral needs of active people.
Quillaia
Quillaia Extract is a purified extract derived from the bark of the Quillaia
tree. It is carefully selected based on its characteristics. It is cooked, filtered
and pasteurized. It is FDA-approved, non-hazardous. Quillaia is found in
some of our frozen drinks.
Red 40
Red 40 is a FDA-approved food coloring used in beverages.
32

33. Sodium
All of our products are "low sodium" and contains less than 110 mg per
eight-fluid-ounce serving. A number of beverages have less than 35-mg
sodium per serving, so they are considered "very low sodium" products.
Sugar
Regular soft drinks and sports drinks are sweetened with sugar. There are
many types of sugar available today. In soft drinks and sports drinks, the
sugar is primarily high fructose corn syrup, which comes from corn.
Total Carbohydrates
Total carbohydrates include the sugars and any carbohydrate-like parts of
ingredients, such as organic acids. Although diet drinks may have no sugar,
they may contain more than half a gram of carbohydrate.
Yellow5
Yellow 5 is a FDA-approved food coloring. Used since 1916, it is found in a
variety of products such as skim milk, yogurt and macaroni and cheese.
33

34. FOOD INDUSTRY
The last decade has been a period of dynamic growth for non-alcoholic
drinks and has witnessed completely new segment of the food market in
India taking shape. Food market at stake in India is enormous. The food
chain and the forces acting on the food chain are changing rapidly, and in a
generally positive manner.
India's sheer size and diversity are enough to make it an attractive market for
nearly every major food, beverage and agribusiness company. A KSA
Technopak study indicates that the fast food industry in India will be worth
$1.27 billion by year 2005.
To capitalize on the RKJ group’s significantly important relationship with
Pepsi Foods, it decided to venture into food sector, which is second largest
business for Pepsi all over the world. Fast food is the most happening thing
across the world.
The group became the first franchisee for Yum Restaurants
International formerly PepsiCo Restaurants (India) Private Limited in India.
It has exclusive franchise rights for Northern & Eastern India. Out of 56
operational Pizza Hut restaurants in the country 27 restaurants are owned
and run by its company.
All these restaurants are making good profits & are dominating the market.
The name of business entity is Devyani International Private
Limited.
ICE CREAMS UNDER “CANDIA” BRAND
The India ice creams and frozen desserts market forms part of the
food industry. Ice creams and frozen desserts are convenience products,
which are ideally suited to the emerging lifestyles and eating trends of
Urban India.
34

35. The RKJ group has its presence in the Ice Cream segment since 1991, when
it started manufacturing and marketing Ice Cream under the brand name of
“Gaylord” in the state of U.P.
During 1996 it sold its brand to Brooke Bond and started supplying Ice
Cream to Hindustan Lever as their Ice Cream souring plant. After
working for 10 years in this field, during 2003 it has launched its own
brand in technical and marketing collaboration with Candia of France.
Advertisement and Add Concept:-
Advertisements are cost effective means to communicate messages and
ideas to build brand preferences and awareness and it is one of the most
important tools which a company uses to direct persuasive communication
to directive buyers in public or to educated people to avoid hard drink and so
on.
The basic objective of advertising is sales promotion sales promotion
expenditure have been increasing as a percent of budget expenditure
annually and the growth is likely to continue in future. Our celebrities signed
by the PepsiCo are as follows:
For PepsiCo.
Celebrities:-
• Amitabh Bachchan
• Sharukh Khan
• Saif Ali Khan
• Fardeen Khan
• Kareena Kapoor
• Preeti Zinta
• Priyanka Chopara
• Kajol
• Rani Mukharjee
• Ranbeer Kapoor
35

36. Cricketers:-
• Sachin Tendulkar
• Saurav Ganguly
• Yuvraj Singh
• Harbhajan Singh
• Rahul Dravid
• Zaheer Khan
• Mohammad Kaif
• MS Dhoni (Captain Team India)
Tennis Stars:-
• Leander Paes
• Mahesh Bhupati
Football Players:-
• Cyrus Broacha
• Bhaichung Bhatia
36

37. 37

38. KEY ELEMENTS OF THE TRADE
1. JO DIKHTA HAI WAI BIKTA HAI: - This is a company slogan, it is
to increase the visibility of the product, the company stresses more on
increasing the number of outlets than on the volumes of sales. That is the
reason of the company providing visibility courses to the shopkeepers.
2. A BOTTLE THAT IS CHILLED IS SOLD: - In the industry it is
considered that a bottle is chilled or putting in cooling compartment is
sold. That is the reason the policy providing triage’s come up because
according to the contract the shopkeeper has to keep only & only Pepsi’s
products in the visicooler.
3. A BOTTLE LOSS TO COKE IS A GAIN TO PEPSI: - The
competition is so strong between the two companies i.e. fighting is on for
each bottle that is to be sold in the market. Competitive bidding goes on
for each & every prestigious outlet in their region. Monopolizing entries
& fat foods joint s is their first priority.
4. EMPTY KA HI KHEL HAI: - [Empty plays an important role]: - As
discussed earlier the distribution points keeps on putting up distribution
schemes for retailers i.e. like two bottles of solution free with the
purchase of every one carat of solution. Now these schemes have timed
well keeping minding the environmental conditions & schemes provided
by the other company. These schemes are of twenty-four hours duration.
If a scheme is launched & there is no empty in the market for refill, the
whole effort goes in vain that is the reason is said ki sub empty ka khel
hai.
38

39. Products Availability of Pepsi
Sl. Products 20 250 300 330 500 600 1000 1200 2000
No. 0 ml. ml. ml. ml. ml. ml. ml. ml.
ml
1. Pepsi  -  - -  - - 
2. Pepsi diet - - - -  - - - -
3. Pepsi Gold - - - - -  - - -
4. Mirinda  -  - -  - - 
5. Mirinda  - - - - - - - -
Lime
6. M. Sorbet - - - - -  - - -
7. 7Up  -  - -  - - 
8. M. Dew  - - - -  - - 
9. Pepsi Can - - -  - - - - -
10. 7Up Can - - -  - - - - -
11. Mirinda - - -  - - - - -
Can
12. M. Dew - - -  - - - - -
Can
13. Diet Can - - -  - - - - -
14. Slice -  - -  - -  -
15. Aquafina - - - - - -  - -
16. Tropicana  - - - - -  - -
17. Everest - -  - -  - - -
Lehar
39

40. Products Availability of Coke:-
Sl. Products 200 250 300 330 600 1000 1200 1500
No. ml. ml. ml. ml. ml. ml. ml. ml.
1. Coco-cola  -  -  - - 
2. Thumps-Up  -  -  - - 
3. Sprite  -  -  - - 
4. Fanta  -  -  - - 
5. Limca  -  -  - - 
6. Maaza -  - -  -  -
7. Coca-cola Can - - -  - - - -
8. Thumps Up - - -  - - - -
Can
9. Sprite Can - - -  - - - -
10. Fanta Can - - -  - - - -
11. Cole Diet - - -  - - - -
12. Kinely Soda - -  -  - - -
40

41. 13. Kinely - - - - -  - -
14. Fruit Juice NA - - - - NA - -
Pepsi Products’ Price (in Rs.) List for Retailers
Sl. Products 200 250 300 330 500 600 100 120 2000
No. ml. ml. ml. ml. ml. ml. 0 0 ml.
ml. ml.
1. Pepsi 166 - 216 - 560 - - - 500
2. Pepsi diet - - - - - 560 - - -
3. Pepsi Gold - - - - - - - - -
4. Mirinda 166 - 214 - 560 - - - 530
5. Mirinda 216 - - - - - - - -
Lime
6. M. Sorbet - - - - - -- - -
7. 7Up 216 - 214 - - 560 - - 530
8. M. Dew - - - - 454 - - - 454
Can
9. Pepsi Can - - - - - - - - -
10. 7Up Can - - - - - - - - -
11. Mirinda - - - - - - - - -
Can
12. M. Dew - - - - - - - - -
Can
13. Diet Can - - - - - - - - -
14. Slice - 214 - - 560 - - - -
15. Aquafina - - - - - - 105 - -
16. Tropicana - - - - - - - - -
41

42. 17. Everest - - - - - - - - -
Lehar
Pepsi Products’ Price (in Rs.) List for Retailers
Sl. Products 200 250 300 330 500 600 100 120 2000
No. ml. ml. ml. ml. ml. ml. 0 0 ml.
ml. ml.
1. Pepsi 168 - 214 - - 560 - - 500
2. Pepsi diet - - - - - 560 - - -
3. Pepsi Gold - - - - - - - - -
4. Mirinda 168 - 214 - - 560 - - 530
5. Mirinda 168 - - - - - - - -
Lime
6. M. Sorbet - - - - - -
- - -
7. 7Up 165 - 214 - - 560 - - 530
8. M. Dew - - - - 454 - - - -
Can
9. Pepsi Can - - - - - - - - -
10. 7Up Can - - - - - - - - -
11. Mirinda - - - - - - - - -
Can
12. M. Dew - - - - - - - - -
Can
13. Diet Can - - - - - - - - -
14. Slice - 214 - - 444 - - 550 -
15. Aquafina - - - - - - 105 - -
16. Tropicana - - - - - - - - -
TYPE OF PACKS AVAILABLE :-
42

43. QUANTITY MRP/PCs
RATES
200ml (24b/s per crate) 10/- 168/-
300ml (24b/s per crate) 12/- 168/-
600ml (24b/s per peti) 27/- 216/-
2-liter (9b/s per peti) 59/- 500/-
200ml (24b/s per crate) slice 10/- 166/-
1000ml (12b/s per crate) slice 40/- 430/-
200ml (24PCspercrate) tetra slice 10/- 168/-
500ml (24b/spercrate) diet Pepsi 20/- 560/-
330ml (24PCs) diet Pepsi cane 25/- 454/-
330ml (24PCs) Pepsi cane 20/- 454/-
500ml (24PCs) pepsi café-chino 20/- 430/-
SODA: -
Lehar Soda 300ml (24PCs per crate) 6/- 120/-
Lehar Soda 600ml (24b/s per peti) 10/- 216/-
WATER: -
Aquafina-1liter (12b/s per peti) 103/-
43

44. Aquafina-2liter (12b/s per peti) 199/-
A price generally depends upon the company.
PRICING OF EMPTIES
QUANTITY PRICE
200ml Rs.165 per crate
300ml Rs.214 per crate
The Shell Cost Rs 100/- each
Empty bottle Rs 6/- each
PROMOTION: -
44

45. The promotion budget is set by the Head Office and thereby is distributed
among the different bottler’s all over the country on the basis of there past
performances & requirements.
Distribution Network in Greater Noida
PEPSI FOODS LTD (Parent Co.)
Greater Noida
VARUN BEVERAGE LTD (Bottling Plant)
Greater Noida
Distributors Distributors C&F
Distributors
Fat Dealer (2) Fat Dealers (4) Fat
Dealers (2)
Retailers Retailers Retailers Retailers
CONSUMERS
Slogans
45

46.  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"
 1958–1960: "Don't be a Tramp, Buy a Can" Zane
 1961–1964: "Now It's Pepsi for Those Who Think Young" (jingle
sung by Joanie Sommers)
 1964–1967: "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: "Buy a can 50p" (United Kingdom)
 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: "Its 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 the Pepsi version of
"Billie Jean", "Bad" and "Black or White". "Black of White"'s was
promoting the Dangerous World Tour.)
 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" (Urdu, Hindi –
meaning "This is the right choice Baby UH HUH") (Pakistan), (India)
 1991–1992: "Gotta Have It"/"Chill Out"
 1992:"The Choice Is Yours"
46

47.  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)
 1995: "Nothing Else is a Pepsi"
 1995–1996: "Drink Pepsi. Get Stuff." (Pepsi Stuff campaign)
 1996:"Change The Script"
 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: "Its 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)
 2002: "Change the World" (Japan)
 2003: "Its the Cola"/"Dare for More" (Pepsi Commercial)
 2006–2007: "Why You Doggin' Me"/"Taste the one that's forever
young" (Mary J. Blige)
 2007–2008: "More Happy"/"Taste the once that's forever young"
(Michael Alexander)
 2000–present: "Pepsi ye pyaas heh badi" ((Urdu), ((Hindi)) meaning
"There is a lot of thirst" (Pakistan)) ((India))
 2008: "Pepsi Stuff" Super Bowl Commercial (Justin Timberlake)
 2008: "Pepsi is #1" TV commercial (Luke Rosin)
 2008–present: "Something For Everyone"
 2009–present: "Refresh Everything"/"Every Generation Refreshes the
World"
 2009–present: "Yeh hai youngistaan meri jaan" (Hindi – meaning
"This is our young country my baby")
 2009–present: "My Pepsi My Way"(Pakistan) (India)
 2009–present: "Refresca tu Mundo" (Spanish – meaning "Refresh
your world") (Spanish Spoken countries in Latin America)
 2009: "Joy It Forward" (Canada)
 2010–present: "Every Pepsi Refreshes The World"
47

48.  2010–present "Pepsi. Sarap Magbago." (Philippines – meaning "Its
nice to change")
 2010–2011 "Badal Do Zamana" (Urdu – meaning "Change The
World" by CALL)(Pakistan)
 2010–2011 "Love!" (Japan, for Pepsi Nex)
 2010–present: "Pode ser bom, pode ser muito bom, pode ser Pepsi"
(Can be good, can be very good, can be Pepsi) – Brazil and Portugal
 2011–present: "Change the game" (India, Bangladesh & Pakistan for
the 2011 Cricket World Cup)
 2011–present "Dunya Hai Dil Walon Ki" (Pakistan-meaning World is
For Lovers by Ali Zafar)
 2011–present "Ici, c'est Pepsi" (Québec-meaning Here, it's pepsi)
 2011–present "Go next!" (Japan, for Pepsi Next)
 2011–present "Summer Time is Pepsi Time"
 2011–present "Born in the Carolinas"
 2012: "Where there's Pepsi, there's music" – used for the 2012 Super
Bowl commercial featuring Melanie Amaro
 2012 "Live For Now"
 2012 Pepsi, Now “Change the Game”.
48

49. DISTRIBUTION STRATEGIES
A Company can choose any of the following distribution types: -
• Exclusive Distribution
• Selective Distribution
• Intensive Distribution
“PEPSI” HAS ADOPTED THE INTENSIVE DISTRIBUTION
STRATEGY.
INTENSIVE DISTRIBUTION:
A Strategy of intensive distribution is characterized by placing the goods or
services in as many outlets as possible. When the consumer requires a great
deal of location convenience, it is important to offer greater intensity of
Distribution. This strategy is generally used for convenience items such as
Tobacco, gasoline, and soap, snack foods & bubblegum.
Manufactures are constantly tempted to move from exclusive or selective
distribution to more intensive distribution to increase their coverage and
sales and you could find Pepsi in nursing homes, confectionery shops,
departmental stores; you name it & Pepsi is available there.
49

50. DISTRIBUTION CHANNEL REDIFINED
Pepsi has redefined distribution to strengthen their competitive advantage in
the emerging consumer and market scenario. Their earlier focus was to drive
wide availability and enable easy access to their brands for consumers. Now
they seek to go well beyond this distribution paradigm. Their new approach
is more holistic touching consumers in multiple ways at the point of
purchase and more importantly, creating opportunities for customers to
receive brand message and experience our brands.
They are proactively addressing these emerging trends by approaching
distribution and channels in a much broader way. They are shifting emphasis
from mere reach or availability expansion to touching consumers with a 3-
way convergence- of product availability, brand communication and higher
level of brand experience.
They are thus going beyond delivering products and creating greater
engagement and interaction around the purchasing experience.
Product
Availability
Point
Of
Purchase
Brand Brand
Communication Experience
Pepsi’s reinvention of distribution is built on an understanding of emerging
consumer trends, the retail environment and the growth drivers of our
brands.
50

51. Pepsi’s distribution system is a key external resource. Normally it has taken
years to build and cannot be easily changed. It ranks in importance with key
internal resources such as manufacturing, research, engineering and field
sales personals. It represents significant corporate commitment to set
policies and practices that constitute the basic fabric on which is woven an
extensive set of long run relationship.
51

52. CHANNEL FUNCTION AND FLOWS
Marketing channel perform the following functions-
• To gather the information about potential and current customers, and
competitors.
• To reach agreements on Price
• To list orders with manufacturers.
• They provide the successive storage and movement of physical
products.
It can be defined as backward and forward integration i.e. starting from
supplier of the raw material to the end customer. The physical flow of Pepsi
from its manufacturing unit at Kosi (Varun Beverages) to various retailers in
Sahibabad is as follows-
52

53. PRODUCT & PACK PROFILE
PRODUCT: -
Carbonated Soft Drinks (CSD) or Soft Drinks as they are popularly known
are one of the largest FMCG market in the whole world with the total annual
sales around $40 billion. This product is generally available in four kinds of
packing.
• Glass Bottles
• Pet Bottles
• Cans
• Fountain rim
FLAVORS: -
• Cola
• Orange
• Clear Lemon
• Cloudy Lemon
• Berry
• Ginger
• Mango Slice
Out of these products the 70% of the sales of the company come from the
Cola brand, which is the market leader in the most part of the country of
these kinds of packaging in which the product is available make them 80%
of the sales come from these bottles. The businesses of returnable bottles are
very cumbersome and make the market very complex and demanding.
53

54. Facilities Provided By The Customer To The Retailer
1. VISI COOLER
• 65 Liter
• 110 Liter
• 120 Liter
• 165 Liter
• 200 Liter
• 210 Liter
• 220 Liter
• 300 Liter
• 320 Liter
• 330 Liter
• 500 Liter
According to outlet nature, volume & investment of the outlet.
2. SCHEMES OF VOLUME PURCHASE
• Cash discount
• Card discount (sampling)
3. DISPLAY MATERIAL
• Stickers
• Banners
• G.S. Boards
• D.P.S. Boards
• Racks
• Counters
• Umbrellas
54

55. OBJECTIVE OF THE STUDY
• To find out the problems faced by the channels of distribution.
• To increase penetration in the market.
• To find out availability of Pepsi & Coke in the outlets.
• To see the distribution gap by which the product is selling.
55

56. RESARCH METHODOLOGY
Research in common refers to a search of knowledge. One can also define
research as a scientific & systematic search for pertinent information of a
specific topic. It is the pursuit of truth with the help of study observation,
comparison & experiment.
DEVELOPING RESARCH PLAN:
After deciding the objective of marketing research the next step is deciding
Research plan for gathering effective information related to this research
project. The research consists of following steps, which are discussed
subsequently.
Research Design:
Descriptive Research: In my market survey descriptive research process was
carried out to describe the market characteristics, consumer profiles,
distribution strategies, and market potential.
Data Source:
During project study I use both primary as well as secondary data source.
For primary data collection I visited various retailers in Ghaziabad & for
secondary data I went through Books, Journals & Internet. The information
collected is relevant, correct & unbiased.
Research Design:
I followed survey technique for collecting the data. In market survey
research approach. Here, I carried out information from retailers have
carefully selected the instrument & methods of surveying like I have chosen
personal contact methods because of higher response rate & meaningful
responses this helped me to get the general feedback in Pepsi, etc.
Reach Instrument:
The research instrument used was EDS form. In which market information
detail of each outlet should be filled in EDS form. For this I have visited
56

57. each & every outlet & check all the brands & packs of Pepsi are available or
not or which one is available in comparison with Coke & filled it in EDS
forms. In my research process I have used closed ended & open-ended
questionnaire where respondents could answer in their own manner.
Through this I was able to extract information from the respondents about
Pepsi’s products & the competitors.
Sampling Plan:
In designing the sampling plan following points were considered:
Sampling Unit: It includes who is to be a surveyed retailer of Greater Noida.
Sampling Size: I have surveyed about each & every outlet of the area
specified to me so size would reach upto 700 retailers.
Elementary Retailers:
The geographical limit is the area of Greater Noida.
Contact Method:
In my research process, I have collected information through personal
interview process with the help of EDS. Form given by the company
because it is the most reliable & accurate method for collecting primary data.
Through this, the analysis of body language & facial expressions can be
made.
Methods of data interpretation:
In this market study I have used pie chart for data analysis & interpretation
because pie chart is the easiest & comprehensive medium for presentation of
data.
Sampling unit is a single retailer’s outlet which may be:-provision store,
stationery shop, eatery &kiosk.
The universe studied is the sum of the retailers in the Greater Noida area.
57

58. DATA ANALYSIS FROM RETAILERS &DISTRIBUTORS
PERSPECTIVE:
Frequencies
PepsiCo having good distrbution channel
Strongly agree
Agree
Can't Say
Strongly Disagree
6.67% Dis Agree
3.67%
18.67%
7.0%
64.0%
If we see the chart then we find that out of 100% respondent 64% are agree
that PepsiCo have good distribution channel and only 18.67% are strongly
agree, the data shows that company should focus on their distribution
58

59. channel and try to convert customer in strongly agree respondent by
providing them better services and schemes.
Distribution channel is importent in positioning of product
Strongly agree
Agree
Can't Say
Strongly Disagree
1.0% Dis Agree
18.0%
41.33%
38.33%
59

60. If we see the chart then we find that out of 100% respondent 41.33%
respondent are strongly agree that distribution channel have an important
role in positioning of the product and 38.33% are agree and rest are disagree,
it shows that our objective is fulfilled by this research and we can say that if
we have to promote our product then we should have strong distribution
channel.
V.C. coolors provided by the company
yes
No
29.67%
70.33%
60

61. If we see the chart then we find that out of 100% respondent, 70.33% are
saying that they are getting V.C. coolers but 29.67 % are saying that they are
not getting, it means company is not focusing on all retailers that major
concerns for the organization.
PepsiCo relationship with the retailers/distributors
Strongly agree
Agree
Can't Say
Strongly Disagree
4.67% Dis Agree
10.0%
27.33%
3.67%
54.33%
61

62. If we see the chart then we find that out of 100% respondent 27.33%
respondent are strongly agree that PepsiCo has maintaining good
relationship with them and 10% are strongly disagree and 54.33 % are agree,
it shows that company should thing that how can they maintain better
relationship with every retailers and distributors.
62

63. Perception of retailers/distributors towards the pepsiCo
Distribution channel
Excellent
Good
Bad
Worst
10.67%
5.33%
35.33%
48.67%
If we see the chart then we find that out of 100 % respondent only 35.33%
are saying that PepsiCo have excellent distribution channel and 10.67% are
saying that PepsiCo have worst distribution and 48.67 % are saying that
PepsiCo have good distribution channel, here area of concern that how
company can make happy those respondent who are thinking that PepsiCo
63

64. have worst/bad Distribution channel and how can company develop good
distribution channel and change the perception of retailers and distributors.
"If better scheme is given then replace with coke"
yes
No
48.67%
51.33%
If we see the chart then we find that out of 100% respondent, 51.33%
respondent are saying that if they will get better services and scheme then
they will switch over to another brand like coke and only 48.67% are saying
that they will not switchover, it show that company should focus that how
64

65. can be provided better schemes and services to the retailers and distributors
in result they will not switchover to another brand.
Cross tabulation:
PepsiCo having good distribution channel * PepsiCo relationship with
the retailers/distributors
Symmetric Measures
As-
sump.
Std.
Error Approx Approx.
Value (a) . T(b) Sig.
Interval by Pearson's R
.593 .042 12.706 .000(c)
Interval
Ordinal by Spearman
.532 .048 10.851 .000(c)
Ordinal Correlation
N of Valid Cases 300
A. Not assuming the null hypothesis.
B. Using the asymptotic standard error assuming the null hypothesis.
C.Based on normal approximation.
65

66. Bar Chart
140 PepsiCo
relationship with the
retailers/distributors
120 Strongly agree
Agree
Can't Say
100 Strongly Disagree
Dis Agree
80
C
n
u
o
t
42.33%
60
40
18.33%
20
8.33%
5.67%
1.33% 1.0% 0.67% 0.67% 0.33%
0
Strongly Agree Can't Say Strongly Dis Agree
agree Disagree
PepsiCo having good distrbution channel
If we see the table then we find that the relationship with the retailers and
distributors having an important role in maintaining the good distribution
channel because 42.33% respondent are agree to say that we have good
relation with the PepsiCo and that shows that PepsiCo having good
distribution channel.
PepsiCo relationship with the retailers/distributors * Time taken by
the company to make reach the product at retailers shop
66

67. Symmetric Measures
As
sump.
Std.
Error Approx Approx.
Value (a) . T(b) Sig.
Interval by Pearson's R
.710 .027 17.383 .000(c)
Interval
Ordinal by Spearman
.664 .036 15.334 .000(c)
Ordinal Correlation
N of Valid Cases 300
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.
67

68. Bar Chart
100 Time taken by the
company to make
reach the product at
retailers shop
80 One Day
3 Day
One Week
One Month
60
C
n
u
o
t
29.33%
40
24.67%
22.0%
20
8.67%
5.33%
1.67% 1.33% 2.0%
0 0.33%
Strongly Agree Can't Say Strongly Dis Agree
agree Disagree
PepsiCo relationship with the
retailers/distributors
If we see the table then we find that out of 100% respondent 29.33%
respondent are saying that we have good relation with the PepsiCo because
they are providing products at right time .
PepsiCo relationship with the retailers/distributors * V.C. coolers provided
by the company.
68

69. Symmetric Measures
As
sump.
Std.
Error Approx Approx.
Value (a) . T(b) Sig.
Interval by Pearson's R
.592 .046 12.674 .000(c)
Interval
Ordinal by Spearman
.535 .047 10.927 .000(c)
Ordinal Correlation
N of Valid Cases 300
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.
69

70. Bar Chart
140 V.C. coolors
provided by the
company
120 yes
No
100
80
C
n
u
o
44.33%
t
60
40
24.67%
20
10.0% 10.0%
2.67%
0 0.33% 1.0%
Strongly Agree Can't Say Strongly Dis Agree
agree Disagree
PepsiCo relationship with the
retailers/distributors
If we see the table then we find that out of 100% respondent 44.33%
respondent are agree to say that they have good relationship with PepsiCo
because of they are getting visi coolers by the company, it means visi
coolers have an important role in maintaining the good relationship with the
retailers.
PepsiCo relationship with the retailers/distributors * “If better scheme is
given then replace with coke"
70

71. Symmetric Measures
As-
Sump.
Std.
Error Approx Approx.
Value (a) . T(b) Sig.
Interval by Pearson's R
-.429 .041 -8.203 .000(c)
Interval
Ordinal by Spearman
-.479 .045 -9.427 .000(c)
Ordinal Correlation
N of Valid Cases 300
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.
71

72. Bar Chart
120 "If better scheme is
given then replace
with coke"
yes
100
No
80
60
C
n
u
o
t
34.67%
40
24.33%
19.67%
20
8.67%
4.33%
3.0%
0.67% 1.33% 0.33%
0
Strongly Agree Can't Say Strongly Dis Agree
agree Disagree
PepsiCo relationship with the
retailers/distributors
If we see the table then we find that 24.33% are strongly aree that they will
not switchover to another brand because of better scheme but 34.67%
respondent are strongly agree that if they will get better services and
schemes then they will switch over to an- other company’s brand, it shows
that if company have to ,maintain good relationship with retailers and
distributors then company will be focus on better services and schemes.
PepsiCo having good distribution channel * logistics facility of the company
72

73. Symmetric Measures
As-
sump.
Std.
Error Approx Approx.
Value (a) . T(b) Sig.
Interval by Pearson's R
.216 .031 3.815 .000(c)
Interval
Ordinal by Spearman
.230 .047 4.075 .000(c)
Ordinal Correlation
N of Valid Cases 300
a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.
c Based on normal approximation.
73

74. Bar Chart
logistics facility of
the company
150
own
company
100
53.0%
C
n
u
o
t
50
13.33%
11.0%
7.0% 6.67%
5.33%
3.67%
0
Strongly Agree Can't Say Strongly Dis Agree
agree Disagree
PepsiCo having good distrbution channel
If we see the table then we find that out of 100% respondent 53% respondent
are agree to say that better facility of logistics have an important role in
having good distribution channel .
Visi coolers provided by the company * PepsiCo having good distribution
channel
74

75. Symmetric Measures
As-
sump.
Std.
Error Approx Approx.
Value (a) . T(b) Sig.
Interval by Pearson's R
.487 .049 9.632 .000(c)
Interval
Ordinal by Spearman
.443 .052 8.530 .000(c)
Ordinal Correlation
N of Valid Cases 300
A, Not assuming the null hypothesis.
B Using the asymptotic standard error assuming the null hypothesis.
C. Based on normal approximation.
75

76. Bar Chart
PepsiCo having
good distrbution
150 channel
Strongly agree
Agree
Can't Say
Strongly Disagree
Dis Agree
100
C
n
u
o
50.67%
t
50
16.33%
13.33%
5.0% 6.0%
2.0% 2.33% 3.0%
0 0.67%
yes No
V.C. coolors provided by the company
If we see the table then we find that out of 100 % respondent, 50.67% are
saying that they are agree to say that PepsiCo have good distribution channel
because they are getting visi coolers from the company, it shows that visi
coolers have an important role in having a good distribution channel.
Visi coolers provided by the company * Perception of retailers/distributors
towards the PepsiCo Distribution channel
76

77. Symmetric Measures
As-
sump.
Std.
Error Approx Approx.
Value (a) . T(b) Sig.
Interval by Pearson's R
.544 .048 11.184 .000(c)
Interval
Ordinal by Spearman
.442 .056 8.509 .000(c)
Ordinal Correlation
N of Valid Cases 300
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.
77

78. Bar Chart
Perception of
125
retailers/distributors
towards the
pepsiCo Distribution
channel
100
Excellent
Good
Bad
Worst
75
C
n
u
o
40.33%
t
50
29.33%
25
10.67%
8.33%
6.0%
4.67%
0 0.67%
yes No
V.C. coolors provided by the company
If we see the table then we find that out of 100% respondent, 40.33%
respondent are saying that PepsiCo have good distribution channel because
they are getting visi coolers from the company, it shows that visi coolers are
very important for having good distribution channel.
Time taken by the company to make reach the product at retailers shop *
PepsiCo having good distribution channel
78

79. Symmetric Measures
As-
Sump.
Std.
Error Approx Approx.
Value (a) . T(b) Sig.
Interval by Pearson's R
.735 .028 18.714 .000(c)
Interval
Ordinal by Spearman
.713 .030 17.575 .000(c)
Ordinal Correlation
N of Valid Cases 300
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.
79