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1. UNDERSTANDING AND ANALYZING THE WORKING OF
HUL SVS –AS POTENTIAL FOR PEPSICO’S LRB.
Report
By
ASHISH CHADHA (Roll No. 8007)
Work Carried out at PEPSICO INDIA HOLDINGS PVT. LIMITED, LUCKNOW
Submitted in partial fulfillment of the requirement of
Summer Internship Program
Under the Supervision
Of
Mr. Rahul Srivastav
Marketing Development Coordinator,
PepsiCo india Holdings Pvt. Ltd.
VIth Floor,Raj Chambers,
Hazratganj,Lucknow
SDM Institute for Management Development
Mysore, Karnataka, India
i
2. CERTIFICATE
ii
3. EXECUTIVE SUMMARY
DISSERTATION TITLE: UNDERSTANDING AND
ANALYZING THE WORKING OF HUL SVS –AS
POTENTIAL FOR PEPSICO’S LRB.
Supervisor: Mr. Rahul Srivastava
Name of the student: Ashish Chadha
Roll No. 8007
This report “Understanding and analyzing the working of HUL SVS‐ as
potential for PepsiCo’s LRB” aims at providing insights about the high profile kirana
stores , how HUL categorized them and their business potential with respect of
stocking PepsiCo’s LRB.
Pepsi has a strong presence in almost all cool corners, cafe parlours,
restaurants, eating joints, prominent bakeries, etc. Therefore for developing new
business it was searching for options. Since, in a business environment most FMCG
companies are aware of how their peers are strategizing, the SVS store concept of HUL
was studied. Company believed that if we can analyze the strength of the high profile
SVS, they can be a huge business opportunity.
My project dealt with Understanding and analyzing HUL‐SVS, wherein I
identified the four major distributors of HUL in the city, interviewed them trying to
gather what apart from monthly sales made them categorize an outlet as SVS. These
distributors were also a store for my sample gathering i.e. the list of all SVS outlets in
Lucknow city. Combining all these four distributors, I made a list of SVS outlets, which
was the total sample size of the project.
After going through the field research for the same in Lucknow, a lot of
points came out regarding HUL and its satisfaction levels. I was even able to convince a
number of outlets to stock PepsiCo’s LRB and thus contributed to the company’s
business, the official execution of which is currently being carried out.
The project, which was a blend of research and business development was
quite a learning and satisfying experience .
Signature of Student : Signature of the Supervisor:
Ashish Chadha
Mr. Rahul Srivastava,
Marketing Development Coordinator(MDC)
PepsiCo India Holdings Pvt. Ltd,Lucknow
iii
4. ACKNOWLEDGEMENT
I wish to express my sincere regards and deep sense of gratitude to my project guide,
Mr. Rahul Srivastava,Marketing Development Coordinator,PepsiCo India Holdings Pvt.
Ltd. Lucknow, who has always been a great source of inspiration, for his guidance,
constant help and encouragement throughout the investigation and preparation of the
project report. I am thankful to my faculty guide Prof. Sridhar Chari who helped to
complete my project successfully.
I would like to express my gratefulness and sincere thanks to Mr. Vikas Tandon,
Account Development Coodinator,PepsiCo,lucknow for his help and extended support
at various stages of the work.
Without his help and valuable suggestions my project would not have been a success.
Last but not the least; I thank ‘God Almighty’, from whom flows all wisdom and
knowledge.
ASHISH CHADHA
iv
6.
LIST OF CHARTS/DIAGRAMS:
1 Photograph of Indra Nooyi 3
2. Marketing Mix 7
3. Product-Price table for Pepsi products 9
4. Purchasing soft drinks 27
5. Soft drink purchased more 27
6. Soft drink sold most 27
7. Ranks of non carbonated drinks 28
8.Service as the most important criteria 29
9. Service satisfaction with company’s salesman 29
10. Interaction with salesman 30
11. Frequency of salesman’s visit 31
12. Satisfaction with HUL’s quality 31
13. Replacement of damaged stock 32
14. Visit of C.E./A.D.C 32
15. Providing enough accessories 33
16. Meeting with salesman creates a healthy environment 34
17. Product Availability at all times 34
18. Products in sufficient quantity 35
29. Enrollment in company’s plans 36
20. Solving problems in short times 37
21. Changing Faulty accessories immediately 38
22. In total,service match with expectations 38
23. Satisfaction with company’s schemes and products 39
24. Rate HUL’s service out of 10 40
25. SVS outlet details 51
vi
7.
TABLE OF CONTENTS
Ch No. Title Page No.
i) Certificate ii
ii) Executive summary iii
iii) Acknowledgement iv
iv) List of symbol/abbreviations v
v) List of chart/diagrams vi
vi) Table of contents vii
1. Introduction
Industry overview 1
Company Profile 3
Social Initiatives 4
Sales and Marketing 5
Marketing mix 7
SWOT analysis 12
Competition Profile 14
SVS as a HUL concept 16
2. Project proposal
Objectives of the study 17
Scope of the study 18
Limitation of the study 19
3. Problem Definition
Statement of the Problem 20
Source of error 21
vii
8. 4 Research Methodology
Type of research design 22
Information needed 23
Scaling techniques 24
Sampling 25
Target population
Sampling frame
Sampling technique
Sample size
Survey & Observation method 26
5. Data analysis
Finding and Observation 27
6. Recommendation 43
7. Conclusion 44
8. Annexures 45
9. References 58
viii
9. CHAPTER 1: INTRODUCTION
INDUSTRY OVERVIEW
The soft drinks industry continued on its path to recovery from the low growth seen between
2005 and 2006, with higher volume growth in 2008 than that seen in 2007. The mature
sectors of bottled water, fruit/vegetable juice and carbonates saw a dynamic year, with
companies refreshing their products’ brand image and packaging to attract new consumers.
Emerging product categories, such as energy drinks and reconstituted 100% juice, saw high
double-digit growth rates, as companies increased their products’ penetration in India. Off-
trade volume growth was slightly higher than on-trade volume growth, as convenient on-the-
go packaging, company sponsored chillers in kiranas and attractive supermarket displays
fuelled off-trade sales across the market.
With the industry back on the upward growth curve, companies refreshed their brands by
introducing new and more premium packaging designs, pack sizes and communication
campaigns. In 2008, bottled water was especially dynamic, with all the major national brands
following the cue of Bisleri’s rebranding in late 2007. Carbonates and juice drinks were also
reinvigorated with new pack sizes that targeted on-the-go consumption by young adults.
With “naturally healthy” becoming a key focus for consumers and manufacturers,
fruit/vegetable drinks companies focused their efforts on highlighting their products’ fresh
fruit content and health attributes. Companies put in motion plans to extend their product
portfolios to emerging categories such as 100% juice, energy drinks and flavoured water.
The multinationals Coca-Cola India and PepsiCo India Holdings saw their off-trade value
shares of soft drinks in India decline over the review period, as other national and regional
players updated their brand portfolios and increased the penetration of their brands in India.
Bottled water players, such as Parle Bisleri and Dhariwal Industries, were particularly
successful in expanding their consumer base through a concerted effort to increase their
manufacturing capacity and move to newer regions within India. Dabur India and Parle Agro
benefited from their first mover advantage in being present in high-growth emerging product
categories, such as 100% juice and other non-cola carbonates.
With companies increasing their spend on below-the-line marketing activities, the ubiquitous
kiranas were the beneficiaries of efforts such as branded glass door refrigerators, regional
language banners and displays, and the roll-out of on-the-go packaging for carbonates and
1
10. juice drinks. Supermarkets, which are still something of a novelty in many small cities,
continued to attract a combination of regular grocery shoppers and young impulse buyers.
Bundling and discount promotions for fruit/vegetable juice and concentrates drove product
sampling in supermarkets. Emerging categories, such as energy drinks and RTD tea,
received a boost from impulse buyers in supermarkets, while attractive displays and
imported products in upmarket shopping centres introduced consumers to new products,
such as sports drinks and flavoured water.
With rising consumer affluence and companies tailoring their product designs and marketing
specifically to target the young adult population group, the trend of robust double-digit
annual volume growth is expected to continue over the forecast period. The foray of leading
national players into emerging categories, such as energy drinks and 100% juice, will help
sustain high growth rates in the future. Competition from the unorganised sector is expected
to decline over the forecast period, as the national players make a concerted effort to educate
consumers about the health benefits of packaged drinks, and move into markets such as bulk
bottled water, which are currently dominated by the unorganised sector.
2
11. INTRODUCTION OF PEPSICO
Profile of Pepsi International
Pepsi is situated at Somars New York in U.S.A , Indra K Nooyi is chairman and CEO of
Pepsi.
Calab bradham, a North Carolina pharmacist concocted Pepsi‐cola
in the year 1890 as a cure to Dyespsia (indignation). In 1903,
business strategy worked & in 1909 he had a New York advertising
agency. PepsiCo Food & Beverages International, a full fledge co.
earns more then half of its global revenues from snack foods & fast
foods. PepsiCo’s major Business includes Pepsi foods, KFC,Pizza
Hut, taco bell & California pizzas which is a world leader in restaurant business also.
PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab
government‐owned Punjab Agro Industrial Corporation (PAIC) and Voltas India
Limited. PepsiCo is a world leader in convenient foods and beverages, with 2006
revenues of more than $35 billion and 168,000 employees. PepsiCo brands are
available in nearly 200 countries and territories and generate sales at the retail level of
about $92 billion.
PepsiCo Mission :"To be the world's premier consumer products
company focused on convenience 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."
3
12. SOCIAL INITIATIVES
Performance with Purpose articulates PepsiCo India's belief that its businesses are
intrinsically connected to the communities and world that surrounds it. Performance
with Purpose means delivering superior financial performance at the same time as we
improve the world.
To deliver on this commitment, PepsiCo India will build on the incredibly strong
foundation of achievement and scale up its initiatives while focusing on the following 4
critical areas that have a business link and where we believe that we can have the most
impact.
REPLENISHING WATER PepsiCo India continues to replenish water and aims
to achieve positive water balance by 2009, which means it is committed to saving and
recharging more water than it uses in its beverage plants.
PARTNERSHIP WITH FARMERS
PepsiCo India’s Agri‐partnerships with farmers help more than 22,000 farmers across
the country earn more.
WASTE TO WEALTH
PepsiCo India continues to convert Waste to Wealth, to make cities cleaner. This award
winning initiative has established Zero Solid Waste centres that benefit more than
2,00,000 community members throughout the country
HEALTHY KIDS
PepsiCo India will stay committed to the health and well‐being of children. It will
continue to provide children with a healthy and fun portfolio while simultaneously
tackling the calories out’ side of the equation by expanding its Get Active programme
for kids, especially for school going children. PepsiCo will also launch and distribute
products directly aimed at addressing nutritional deficiencies and will launch a pilot
program that directly delivers against the United Nations’ Millennium Development
Goal to eradicate extreme poverty and hunger by 2015.
4
13. SALES AND MARKETING DEPARTMENT
Sales and marketing department controls all the activities relating to marketing and
sales. All the order of supplying drinks are received by this department. It maintains
the adequate supply to its agencies. Sales force has the direct link with customers. It
collects the marketing information and try to acquaint with his to higher management.
The sales forces comprises following staff.
• Managing Director
• General Manager (Marketing)
• Regional Manager
• Area Manager
• Territory Manager
• Senior Sales Executive
• Sales Executive
• Management Trainees
Sales and Marketing Manager control the entire sales forces. Sales supervisors perform the
following tasks:
• Sales supervisors find and cultivate new customers.
• Sales supervisors skillfully communicate information about the company’s product
and Services.
• Sales supervisors know the art of salesmanship approaching presenting answering
objections and closing sales.
• Sales supervisors provide various services to the customers consulting of their
problems rendering technical assistance, arranging financing and expending delivery.
Sales supervisor’s carryout market research and intelligence work and fill in call
report.
MERCHANDISING STRATEGIES ADOPTED BY PEPSI
Creating awareness about the product.
Differentness in profit of Pepsi Products and Coca Cola
Discount in products
5
14. Provide Gravity Rack, Air Hanger, PVC Rack, Combo Shot
Provide Visi Cooler and OYC Cooler
Provide Board ( Glow Signs, Dealer Board)
Provide Shop Painting
Convincing the retailer to stock Pepsi products.
Display Scheme for Products
Discount in Products
Coupon Scheme
Visi Cooler and OYC Cooler Scheme
Rack Scheme
Provide Free MT
Yearly Target Achievement Gift Scheme
Provide membership of PEPSI GOLD CLUB PROMRAM
Auditing of Pepsi Gold Club Program 2008.
Audit the only those retailer who have got Pepsi Gold Club membership.
1 Year Programme (February to June, July to October).
Type of outlet (Eatery, Grocery, Convenience).
Main outlet motivational scheme.
Check the condition of Pepsi Monopoly outlet.
Visi size compared with Coca Cola(Pepsi Visi > Coca Visi)
Check the purity of SKU of Pepsi Products.
Check the Impurity (Exp. - Real Juice, Amul Products, Treat and Parle Product.
6
15. MARKETING MIX
PRODUCTS:
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, Pepsi My
Can, Pepsi Diet, Mirinda Orange, Mirinda Lemon, Mountain Dew, 7UP, Slice Mango,
Slice Orange, and Aquafina, Tropicana, Tropicana Twister.
Brands available in 200ml.
1. Pepsi
2. Mirinda Orange
3. Mountain Dew
4. 7up
5. Tropicana Premium Gold
7
16. Brands available in 250ml.
1. Slice
2. Tropicana Twister
3. Pepsi My Can
4. 7 Up Can
Brands available in 300ml.
1. Pepsi
2. Mirinda Orange
3. Mirinda Lemon
4. Mountain Dew
5. 7up
6. Soda
Brand Available in (330ml)
1. Pepsi Can
2. Mountain Dew Can
3. 7UP Can
4. Mirinda Can
5. Pepsi Diet Can
Brand Available in (350ml)
1. Tropicana Twister
Brand Available in (500ml)
1. Slice
2. Pepsi Diet
3. Aquafina
Brand available in (600ml)
1. Pepsi
8
17. 2. Mirinda Orange
3. Mountain Dew
4. 7up
Brand Available in (1Ltr)
1. Tropicana Premium Gold
2. Aquafina Water
Brand Available in (1.2 Ltr)
1. Slice
2. Tropicana Twister
Brand available in (2 Ltr)
1. Pepsi
2. Mirinda Orange
3. Mirinda Lemon
4. Mountain Dew
5. 7up
Price of the product
Product Bottle in MT Price
200 ml 24 168
200 ml Tropicana Premium Tetra 30 397
200 ml Slice Tetra Pack 24 216
300 ml 24 215
250 ml Can 24 330
330 ml Can 24 580
350 ml Twister 24 468
500 ml Aquafina 24 168
9
18. 500 ml Slice 24 498
600 ml Soda 24 216
600 ml PET 24 444
1Ltr. Aquafina 12 104
1Ltr. Tropicana Premium 12 713
1.2 Ltr Slice 12 510
1.5 Ltr Soda 12 207
2 Ltr PET 9 414
PLACE:
Decisions with respect to distribution channel focus on making the product available in
adequate quantities at places where customers are normally expected to shop for them
to satisfy their needs.
Direct Distribution:
Delivery of post mix cylinders & handling of key accounts: the key accounts are
different wholesalers, restaurents, hotels like Pizza Hut, KFC, Metro which serve as the
place for key sale. These are known as national key accounts and are very important in
terms of competition
Indirect Distribution:
Through base market distributors
Through outstation distributors
Before delivering the product some certain guiding principles are followed for the
assessment of distributor’s capability
Applicant must have 20 or 25 vehicles depending on area
Applicant must have 20000 cases of empty bottles
10
20. SWOT ANALYSIS
A SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in a business venture or in any other
situation requiring a decision. It gives an overall evaluation of a company’s external and
internal marketing environment.
SWOT analysis for PepsiCo
STRENGTH WEAKNESS
• Pepsi has a broader product line and • Pepsi hard to inspire vision and
outstanding reputation. direction for large global company.
• Merger of Quaker Oats produced • Not all PepsiCo products bear the
synergy across the board. company name
• Record revenues and increasing • PepsiCo is far away from leader
market share. Coca-cola in the international market
• Lack of capital constraints - demand is highly elastic.
(availability of large free cash flow).
• Great brands, strong distribution,
innovative capabilities
• Number one maker of snacks, such
as corn chips and potato chips
• PepsiCo sells three products through
the same distribution channel.
• For example, combining the
production capabilities of Pepsi,
Gatorade and Tropicana is a big
opportunity to reduce costs, improve
efficiency and smooth out the impact
of seasonal fluctuations in demand
for particular product
OPPORTUNITY THREATS
• Food division should expand • F&B industry is mature
internationally • Pepsi is blamed for pesticide
12
21. • Noncarbonated drinks are the residues in their products in one of
fastest-growing part of the industry their most promising emerging
• There are increasing trend toward market e.g in India
healthy foods • Over 50 percent of the company's
• Focus on most important customer sales come from Frito-Lay; this is a
trend - "Convenience". threat if the market takes a downturn
• PepsiCo now competes with
Cadbury Schweppes, Coca-Cola,
and Kraft foods (because of broader
product line) which are well-run and
financially sound competitors.
• -Size of company will demand a
varied marketing program; Social,
cultural, economic, political and
governmental constrains.
13
22. COMPETITION PROFILE
Coca-Cola is a carbonated soft drink sold in stores, restaurants and vending machines
worldwide. The Coca-Cola Company claims that the beverage is sold in more than 200
countries. It is produced by The Coca-Cola Company in Atlanta, Georgia, and is often
referred to simply as Coke or (in European and American countries) as cola, pop, or in some
parts of the U.S., soda.
Pepsi is often second to Coke in terms of sales but outsells Coca-Cola in some markets.
Around the world, some local brands do compete with Coke. In India, Coca-Cola ranked
third behind the leader, Pepsi-Cola, and local drink Thums Up. However, The Coca-Cola
Company purchased Thums Up in 1993.As of 2004, Coca-Cola held a 60.9% market-share
in India. Tropicola, a domestic drink, is served in Cuba instead of Coca-Cola due to a United
States embargo. French brand Mecca Cola and British brand Qibla Cola, popular in the
Middle East, are competitors to Coca-Cola. In Turkey, Cola Turka is a major competitor to
Coca-Cola. In Iran and also many countries of Middle East, Zam Zam Cola and Parsi Cola
are major competitors to Coca-Cola. In some parts of China, Future cola is a competitor. In
Slovenia, the locally-produced Cockta is a major competitor to Coca-Cola, as is the
inexpensive Mercator Cola, which is sold only in the country's biggest supermarket chain,
Mercator. In Israel, RC Cola is an inexpensive competitor. In Madagascar, Classiko Cola,
made by Tiko Group, the largest manufacturing company in the country, is a serious
competitor to Coca-Cola in many regions. On the Portuguese island of Madeira, Laranjada is
the top-selling soft drink. In the UK, Coca-Cola stated that Pepsi was not its main rival, but
rather Robinsons drinks.
On February 7, 2005, the Coca-Cola Company announced that in the second quarter of 2005
they planned a launch of a Diet Coke product sweetened with the artificial sweetener
sucralose ("Splenda"), the same sweetener currently used in Pepsi One. On March 21, 2005,
it announced another diet product, "Coca-Cola Zero", sweetened partly with a blend of
aspartame and acesulfame potassium. Recently Coca-Cola has begun to sell a new "healthy
soda": Diet Coke with vitamins B6, B12, Magnesium, Niacin, and Zinc, marketed as "Diet
Coke Plus."
On July 5, 2005, it was revealed that Coca-Cola would resume operations in Iraq for the first
14
23. time since the Arab League boycotted the company in 1968.
In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to "Coca-Cola."
The word "Classic" was truncated because "New Coke" was no longer in production,
eliminating the need to differentiate between the two. The formula remained unchanged.
In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-ounce
bottles sold in parts of the southeastern United States. The change is part of a larger strategy
to rejuvenate the product's image.
15
24. SVS AS A HUL CONCEPT
According to HUL, the `Super Value Store' Programme exclusively targets mom-n-pop
stores by refashioning them to look like modern retail outlets. Apart from buying shelf space
and in turn giving the retailer a discount on its products, HUL also imparts retail training
and solutions to help shopkeepers add value to help them keep pace with changing times,or
dispensing its products.
With the increasing number of modern retail outlets, their bargaining power is also
increasing through demands of high discounts and freebies from FMCG majors. Hence, only
supplies to modern retailers shows negative on the company's balance sheet. So, by
refashioning kirana stores, the company balances out its margin levels. As for the kirana
stores, there is growth in profits and a rectified ambience
The key to this unusual partnership between elephant and ant is common branding, lower
prices, higher discounts and special promotional offers that are exclusive to Super Value
Stores. Under the deal worked out by HUL, kirana stores that opt to rebrand themselves as
SVSs get an additional 3% commission on monthly sales. Plus, there are promotional offers
that are available nowhere else.
Sample this: Currently on offer is a free hair dryer worth Rs 175 for every Rs 200 worth of
HUL shampoos bought. Only SVS distributors get this scheme. Based on the response, HUL
reckons that it can use such lures across a range of more than 500 different products in the
cosmetics, fabric and personal wash, and food segments. HUL has also installed special
cabinets in SVS stores.
16
25. Chapter- 2:PROJECT PROPOSAL
OBJECTIVE OF THE STUDY
The objective of the present study was to identify the SVS(Super Value Stores) as
defined by Hindustan Lever Limited(HLL) for Lucknow. Only around 15% of such
SVS outlets have Pepsi. This list of outlets was traced through Mr. Khan, a distributer
of HUL in Lucknow.
The primary objective was to visit these SVS stores, study the distribution, satisfaction
levels w.r.t. HLL and also target them as Pepsi’s customers. There were some of the
secondary objectives of the present study. There were as under:
• To develop the related psychometric test and questionnaires for measuring the
merchandising pattern of Pepsi company.
• To study the customers demand for products of company.
• To explore the preferential attitude of retailers towards the products of
company.
• To investigate the problems of retailers and customers with regard to products
of company.
17
26. SCOPE OF THE STUDY
The scope of the study encompasses all the SVS retail outlets of HUL in Lucknow, capital of
Uttar Pradesh. There are 96 such retail outlets present in Lucknow. The study focuses on the
analysis of service by HUL at these SVS retail outlets.
It also focuses on the potential of the majority of these stores that do not currently stock
Pepsi as potential for Pepsi’s future business development.
18
27. LIMITATION OF THE STUDY
Time constraints: As is expected during any study there was very less time to do a
comprehensive study for SVS retail outlets.
Divisional boundary: Area covered were mainly all the SVS stores in Lucknow .
Information Asymmetry: It wasn’t easy to get information from all the stores because of
various reasons. The study includes only those stores from whom I was able to gat
information.
Restricted generalization: Study cannot be generalized beyond the city surveyed.
19
28. CHAPTER 3:PROBLEM SPECIFICATION
STATEMENT OF THE PROBLEM
The management decision problem is the problem confronting the decision maker.
A marketing research problem is a problem that entails determining what information is
needed and how it can be obtained in the most feasible way.
Management decision problem:
Where can new business/customers for Pepsi come from?
Marketing research problem:
To determine the potential of the SVS stores in doing that for Pepsi, simultaneously studying
and learning the mass popularity and satisfaction of HUL in these stores as a means to learn
for Pepsi.
20
29. SOURCES OF ERROR
NON-RESPONSE ERROR: arises when some of the respondents included in the sample
do not respond. For example, a respondent busy in dealing customers.
RESPONSE ERROR: arises when respondents give inaccurate answers or their answers are
misrecorded or misanalyzed.
Population definition error: Variation between the actual population relevant to the
problem and population as defined by the research. For example, using an old sampling
frame list for SVS stores.
Respondent selection error: Selecting the respondent other than those specified by the
sampling design. For example, selecting a non SVS retail outlet.
Questioning error: Error made in asking question. For example, while asking questions, not
using the exact wording given in the questionnaire.
Inability error: Respondent inability to provide accurate answers. For example, respondent
inability due to fatigue and boredom.
Unwillingness error: Respondent’s unwillingness to provide accurate answers. For
example, a respondent intentionally misreports supervisor’s commitment in order to impress
the interviewer.
21
30. Chapter- 3:RESEARCH METHODOLOGY
TYPE OF RESEARCH DESIGN
A research design is a framework for carrying out marketing research. It specifies the details
of the procedures necessary for obtaining the information needed to structure and solve
marketing research problem.
A descriptive research is a type of conclusive research that has as its major objective the
description of something.
Cross-sectional design involves the collection of information from any given sample of
population elements only once.
A descriptive research design has been followed in this marketing Research.
Methods: Secondary data, Observational data, Surveys.
Design: Single cross sectional design.
22
31. INFORMATION NEEDED
Component 1:
This component focuses on the information whether the respondent purchases soft drinks
and if so, does he purchase Pepsi. The third and fourth questions make us know which of the
drinks under Pepsi Umbrella sell the most.
Component 2:
This component focuses on various aspects related to HUL dealing with respondent’s
perception of its service and the dealer’s satisfaction levels measured on various parameters
inovving salesman and likewise.
Component 3:
This component is dedicated to measuring only the service intricacies of HUL, as for these
storeowners service is single most important factor for satisfaction.
Component 4:
Overall rating of HUL’s performance is gathered and points of its lagging and improvements
are also asked subjectively.
Component 5:
For retailers that do not have Pepsi, this last section focuses more on verbal interaction so as
to identify the problems of retailers for the same. This is also the part where the business
development carried out and the retailers are tried to convince to stock Pepsi.
23
32. SCALING TECHNIQUES
A scaling is the generation of a continuum upon which measured objects are located. The
scaling technique used in this marketing research can be grouped into comparative and
noncomparative scales.
1. Comparative scales:
a. Rank order: Respondents were asked to rank the objects present.
b. Itemized Category Scales: Only one item is used to measure a construct
2. Noncomparative scales:
a. Likert scale: Respondents were asked to show their response
on a five point scale.
24
33. SAMPLING
Target population:
The target population is the collection of element or objects that posses the information
sought by the researcher and about which references are to be made.
The target population for the SVS outlets survey:
Elements: SVS retail outlets attendant.
Sampling units: Owners of these SVS stores.
Extent: Lucknow.
Time: April, may 2009
Sampling frame:
A sampling frame is a representation of the elements of the target population.
The sampling frame for the SVS outlets survey: List of SVS retail outlets present in
Lucknow from HUL distributor, information of whom was gathered from a very popular
SVS store in Lucknow.
Sampling technique:
Simple random sample: A probability sampling technique in which every element is selected
independently of every other element and the sample is drawn by a random procedure from a
sampling frame.
The sampling technique used in this project: simple random sampling.
Sample size:
Sample size refers to number of element included in the study.
The sample size for the SVS outlets survey: 96 outlets.
Each outlet was segmented area wise and accordingly the areas were surveyed.
25
34. SURVEY & OBSERVATION METHOD
Observation method:
A structured observation was done to measure records. An observation form was made to
record the information. The method used was an audit. Data was collected by examining
performance and records.
Advantage:
������ Degree of structure is high
������ Ability to observe in natural setting
������ Observation bias is low
������ Analysis bias is low
Survey method:
The survey method involves a structured questionnaire given to the respondents and
designed to elicit specific information. In this project personal interview mode is used for
collecting information. Personal interview were conducted at the SVS retail outlets. The
respondents were intercepted while they were working at the retail outlet. A questionnaire
was prepared for structured data collection.
Advantage:
������ Respondents are easily available
������ Meaningful information due to working environment
������ Response rate is high
������ Flexibility of data collection
������ Diversity of questions
26
35. CHAPTER 5:DATA ANALYSIS
FINDING AND OBSERVATION
1. Purchasing soft drinks
Response %
YES 66
NO 34
The statistics show that around 1/3rd of the respondents purchase soft drinks.
2. Soft drink purchased more
RESPONSE %
PEPSI 28
COCA COLA 46
The statistics reveal that coca cola definitely has a larger sale percentage with respect
to Pepsi which clearly lags behind.
27
36.
3.Soft drink sold most
DRINK %
Pepsi 41
7up 11
Mirinda 19
Mountain Dew 30
When we compare the soft drinks sold under the brand Pepsi, the core offering of the
company “Pepsi” itself has the most share, followed closely by the new ”Mountain
Dew”. It seems that since the packaging and taste of Mountain Dew and 7up is quite
similar, the former might be eating into latter’s matter which is also evident by the
newly launched campaign to promote 7up.
4. Rank of non carbonated
drinks
RESPONSE %
Tropicana Nector 29
Tropicana 15
Twister
Slice 56
28
37.
Slice clearly leads the pack here with more than half the respondents voting it as the
most demanded among non carbonated offerings of Pepsi. Tropicana Twister manages
a bare 15 % whereas the Tropicana Nectar occupies the second spot.
FOLLOWING QUESTIONS PERTAIN ONLY TO HUL
5. Service as the most important Criteria
RESPONSE %
STRONGLY AGREE 34
AGREE 33
NEITHER AGREE 26
NOR DISAGREE
DISAGREE 6
STRONGLY 1
DISAGREE
More than two thirds of respondents agree and strongly agree to the fact that service is
the most important criteria for a FMCG major. Very few respondents were undecided of
this fact that only 7% did not believe the same.
29
38. 6. Service satisfaction with company’s salesman
RESPONSE %
ALWAYS 23
MOSTLY 43
SOMETIMES 19
RARELY 12
NEVER 3
The respondents are mostly satisfied with the salesman having a strong
indicative of 43%,a strong population worth 23% even has the highest satisfaction level
with the salesman.
7. Interaction with salesman
RESPONSE %
FORMAL 2
NEED 12
BASED
FINE 57
FRIENDLY 29
30
39.
A larger proportion of respondents have a fine or friendly interaction with the
salesman suggesting that the HUL salesman creates a healthy atmosphere at time of
visit.
8. Frequency of salesman’s visit
RESPONSE %
REGULAR 46
FREQUENT 41
IRREGULAR 11
RARELY 4
NEVER
At around most SVS stores, the salesman visit quite frequently which shows how much
value they give to each store and their satisfaction.
31
40. 9. Satisfaction with HUL products’ quality.
RESPONSE %
ALWAYS 53
MOSTLY 36
SOMETIMES 9
RARELY 2
NEVER
The major chunk of respondents is always satisfied with the product quality delivered
to them. Only 2% are satisfied rarely which shows how high HUL satisfaction levels
are.
10. Replacement of damaged, outdated stock
RESPONSE %
ALWAYS 3
MOSTLY 12
SOMETIMES 37
RARELY 26
NEVER 22
32
41.
These statistics show that however HUL might be doing good on other facets, the
change and/or removal of damaged, outdated stock is still a concern with around half
the respondents stating that its rarely or never changed and only a mere 15% of the
respondents being fine with company’s policies on this aspect.
11. Visit of C.E. or A.D.C
RESPONSE %
YES 14
NO 39
SOMETIMES 47
The visit of officials clearly is still lagging with major respondents answering a No or
Sometimes. This indicates how important this fact is for the respondents and how much
does it get neglected.
33
42.
12. Do they provide enough accessories
RESPONSE %
ALWAYS 29
MOSTLY 39
SOMETIMES 28
RARELY 3
NEVER 1
A good number, around 70% of respondents seem to be satisfied with the accessories
as opposed to a mere 4% who aren’t. Around 28% respondents show satisfaction
level between the two extremes.
FOLLOWING QUESTION CATERS TO ONLY THE SERVICE ASPECT OF HUL
34
43.
13.1) Meeting with salesman creates a healthy environment
RESPONSE %
STRONGLY AGREE 17
AGREE 38
NEITHER AGREE 35
NOR DISAGREE
DISAGREE 8
STRONGLY 2
DISAGREE
More than half of the respondents agree to the facts that meeting the salesperson of
HUL creates a healthy environment conducive to business. It is to be noted that
salesman behavior can go a long way in creating an organizational impression, be it on
the positive side or otherwise.
35
44.
13.2) Product Availability at all times
RESPONSE %
STRONGLY 12
AGREE
AGREE 23
NEITHER AGREE 47
NOR DISAGREE
DISAGREE 13
STRONGLY 5
DISAGREE
Regarding product availability around half of the respondents are neutral, while
around a third of them agree and strongly agree to the same. Very few
respondents show their dissatisfaction by disagreeing or strongly disagreeing
with the product availability. Clearly more respondents are on the satisfied side
which shows that HUL has managed to make sure its product is available all
times.
36
45.
13.3) Availability of products in sufficient quantity
RESPONSE %
STRONGLY AGREE 13
AGREE 24
NEITHER AGREE 46
NOR DISAGREE
DISAGREE 11
STRONGLY 6
DISAGREE
More than a third of respondents believe that the HUL products are stocked in
sufficient quantities. Around half of the respondents are neutral to agreeing or
disagreeing while a mere 1/6th of respondents disagree with the same. Since HUL has
such a diverse product range it is equally hard to keep all the products stocked at all
times.
37
46.
13.4) Enrollment in company’s various plans
RESPONSE %
STRONGLY AGREE 14
AGREE 41
NEITHER AGREE NOR 29
DISAGREE
DISAGREE 13
STRONGLY DISAGREE 3
More than half of the respondents agree and strongly agree to the fact that they are
enrolled in company’s various plans while around a third of them are neutral to this
statement. Very few respondents, 16% show dissatisfaction on this ground .The figures
on the whole suggest that the major chunk is quite satisfied with the plans they are
enrolled into, either mildly or strongly.
38
47.
13.5) Solving problem in short time
RESPONSE %
STRONGLY 3
AGREE
AGREE 21
NEITHER AGREE 43
NOR DISAGREE
DISAGREE 28
STRONGLY 5
DISAGREE
Very few respondents have taken the extreme opinions which suggest that a lot of
people, around half, have neutral opinion on the same. Almost equal number of
respondents agree as well as disagree to the same which shows that this is not a
parameter that HUL can boast about, neither can we say that it is completely neglected.
39
48. 13.6) Changes faulty accessories immediately
RESPONSE %
STRONGLY AGREE 4
AGREE 20
NEITHER AGREE NOR 28
DISAGREE
DISAGREE 31
STRONGLY DISAGREE 17
Around half the respondents agree, strongly disagree with the fact that the faulty
products and accessories are changes immediately. This clearly suggests a level of
dissatisfaction w.r.t. this attribute.
40
49.
13.7) In total, service match with expectations
RESPONSE %
ALWAYS 18
MOSTLY 37
SOMETIMES 26
RARELY 13
NEVER 6
Less than 20% of the respondents show their dissatisfaction with the service of HUL
which suggests that a major population of respondents lies in neutral, satisfaction or
extreme satisfaction levels. This clearly indicates that HUL has been able to provide
more than a descent service to the SVS outlets which seem to be mostly in the
satisfactory zone.
41
50. 14.) Satisfaction with company’s schemes offered with products
RESPONSE %
ALWAYS 6
MOSTLY 24
SOMETIMES 33
RARELY 26
NEVER 11
Almost an equal number of respondents seem to be satisfied with the schemes offered
with products. Although a good 11% disagree with the same, almost a third of
respondents are neutral on this point. Around a third of population is also satisfied
with the same who agree and strongly agree to this point.
42
51.
15) Rate HUL’s service out of 10
RESPONSE %
6 5
7 22
8 28
9 26
10 19
As we can see from the table, most respondents quantified their satisfaction by giving
a good rating to HUL’s service. The opinion was mostly divided between 7,8 and 9
which shows that a large population, more than 3/4th is very satisfied with their
overall service. A perfect 10 given by 19% respondents also strengthens this point.
16. Aspects where the service lags
Most respondents were of the view that replacing the damaged, outdated products was
a major issue, which often caused losses to SVS owners. Other than that, since
43
53. Due to all the factors listed above, the respondents that were previously
stocking it discontinued with the same.
Here we can compare and contrast the services and satisfaction of HUL and
PepsiCo wherein the current project draws footsteps for Pepsi to be followed
to let itself live up to its brand name and increase the confidence and
satisfaction among the retailers.
3. ONES THAT ARE READY TO STOCK IT:
A lot of SVS stores visited are ready to stock Pepsi since they believe that
there is a lot of demand for it in their store and the product is something
which sells automatically. This shows the image Pepsi still has among these
retailers and how much they trust the brand.
4. ONES THAT NEITHER STOCK CURRENTLY, HAVE STOCKED BEFORE, NOR
WISH TO STOCK :
There were some respondents who stated that they were very satisfied with
there grocery business and felt that soft drinks is not something they wish to
take up. Some such retailers cited lack of space which was already preoccupied
by a lot of kirana bags carelessly kept all over the place. Some retailers also
stated that since they were keeping Cola Cola there was hardly any need for
them to invest in Pepsi. Here we can see that Coca Cola already has the first
mover advantage wherein retailers who can invest in one soft drink brand are
consciously taken care of by Coca Cola.
45
54. CHAPTER 6:RECOMMENDATIONS
Based on the study following is my list of recommendations for Pepsi:
• HUL is thriving on success and the parameters evaluated closely suggest
that Pepsi, though it has a good distribution network of sales staff needs
to strengthen it in a way to minimize the time interval between placing of
order and its arrival with the retailer.
This can be carried out by following an efficient order booking
system as carried out by Coca Cola, which ensures faster deliveries.
• Pepsi needs to acknowledge that its complete product line must be made
available in markets where demand is huge and players are less. A lack in
performance here has led the market share of Coca Cola reach to such
great heights.
• A regular visit by the salesman as well as officials like C.E. or A.D.C. goes a
long way in establishing a rapport and identifying the problems, if any,
that the retailer is facing. As they say that “Out of Sight is Out of Mind”,
retaining a dealer is directly related to the fact that he feels recognized by
the officials.
46
55. CHAPTER 7:CONCLUSION
In this report an effort was made to analyze the effectiveness of SVS retail outlets in
Lucknow. In this regard, the major concern for the project was to understand the parameters
that HUL performs well in, which can be an understanding for PepsiCo for the newer
business developments. The study concluded that following aspects of service by HUL are
highly regarded by the retailers:
• Interaction with salesperson
• Frequency of his visit
• Quality of products
• Visit of Area Sales Manager (A.D.C), Accounts Development Officer (A.D.C)
• Providing accessories
• Product Availability
• Enrolling dealer in schemes
However,
• Replacement of outdated stock
• Changing faulty accessories
• Availability of products in sufficient quantity, still remain to be problems currently.
This study has intended to capture the mindset of SVS retail outlet owners by the way of
audit and survey. The study has helped to uncover the fact that HUL’s SVS store owners are
quite satisfied with the service and offerings of HUL and also helped to locate the factors of
its incredible performance.
This insight will go a long way with the marketing department of PepsiCo and help them
employ it in context of their business. The study also helped develop new business for
PepsiCo wherein around 15 stores agreed to stock Pepsi after convincing them with the
offerings.
Some major recommendations, which PepsiCo should take, are:
• ������ Steps to improve the time management of stock.
• ������ Steps to enhance the service offered at these stores.
• ������ Increase the frequency of salespersons and C.E., A.D.C.
• ������ To keep their product line in order with the dealers.
Overall the study was able to achieve the set objectives.
47
56. CHAPTER 8 ANNEXURES
QUESTIONNAIRE for
Understanding and analyzing the working of HUL SVS –as potential for
PEPSICO’s LRB
(Questionnaire for retailers)
Supervisor: Rahul Srivastava(MDC,PEPSICO Lucknow)
Respected Sir,
The questionnaire is being supplied to you for “Understanding and analyzing
the working of HUL SVS –as potential for PEPSICO’s LRB”
Please read the questions and give your responses by the tick‐mark on one of the
alternative. Your responses would be kept confidential. They will be used only for the
research purpose.
Q1. Do you purchase the soft drinks for your shop?
[ ] Yes [ ] No
Q2. Which soft drink you would like to purchase more in quantity?
[ ] PepsiCo [ ] Coca‐Cola
Q3. Rank the following carbonated drinks according to your preference
[ ] Pepsi
[ ] 7UP
[ ] Mirinda
[ ] Mountain Dew
48
61. Time Management Service
Scheme Interaction
How,specify:
Interest in Pepsi :
53
62. SVS OUTLET DETAILS(LUCKNOW)
OUTLET NAME
OWNER
S.No Address1 Address2 Locality NAME
NEAR HEVET
SHOP NO DANDAIYA
1 ARUN KIRANA ALI GANJ POLYTECHNIC ARUN GUPTA
15 BAZAR ALI GANJ
GATE
ADARSH SHOP NO NEAR HANUMAN ANKUR
2 INDIRA NAGAR INDIRA NAGAR
GEN.&BAKERS 15/220 MANDIR AGARWAL
SHOP NO
Opp E Block Subzi PAWAN KM.
3 AGARWAL E 1216 RAJAJIPURAM RAJAJI PURAM
Mandi AGARWAL
ENTERPRISES Block
SHOP NO MAIN MARKET, Near Chandan NITIN
4 ALAM BAGH
43 A NATKHERA Nagar Mandir AGARWAL
AGARWAL OIL
MAIN MARKET,
SHOP NO SURENDRA
5 NATKHERA ALAM BAGH Near Meat Market
551/SHA/16 SINGH
AMAN STORE ROAD
SHOP NO E BLOCK Near Purana NALIN
6 RAJAJI PURAM
E S-39 MARKET Tempo Stand AGARWAL
Annapurna Bhandar
Old picnic spot
SHOP NO
7 ANURASHAN STORE road, INDIRA NAGAR SURIYA ENCLAVE ANNU
D3022
Munshipullia
Shop No48 ADARSH NAGAR
8 ALAM BAGH Near Tedhi Puliya Rajesh Kumar
A TEDIPULIA
APNA STORE
ARORA SHOPPING
SHOP NO NEAR LDA DEEPAK
9 DEPARTMENTAL COMPLEX VIVEK GOMTI NAGAR
A1 OFFICE ARORA
STORE KHAND-4,
BANGLA BAZAR BANGLA UMAKANT
10 ASHIYANA SUPER NA Near State Bank
JAIL ROAD BAZAR JAISWAL
MARKET
ASHOK
Shop No GURMANDI
11 Ashok Provision SAHADATGANJ NEAR GURMANDI KUMAR
361/143 SADATGANJ
Store GUPTA
Shop No S- GOLE MARKET
12 BALDEV STORE MAHA NAGAR Near Post office BABLU
64 MAHANAGAR
NEAR DALIGANJ
NARESH
13 Bansal Kitchen NA SitaPur Road Sitapur Road RAILWAY
AGARWAL
CROSSING
54
63. AMEEN
NAJMUL
14 Shop No 1 COMPLEX NAKKHAS Near J&K Bank
HASAN
BEAUTY CARE NAKHAS
SHINGAR
Shop No Near Shringar
15 NAGAR, Kanpur ALAM BAGH TILAK CHAND
565/30 Kha nagar Gate
BILLEY PANSARI road
JANKIPURAM NEAR 60 FITA
16 BUDHIRAM STORE NA Jankipuram LALIT TIWARI
VISTAR ROAD
NEAR SHYAM
CHANDAN GEN ALIGANJ RAJESH
17 NA ALI GANJ MISTHAN
STORE DADAIYA BAZAR GUPTA
BHANDAR
CHOUDHARY Shop No C- VIVEK KHAND 2, NEAR PANI KI SANJAY
18 GOMTI NAGAR
DEPARTMENTAL 16&17 LDA MARKET TANKI CHOUDHARY
CHOURASIA Shop No NEAR NEEL MANSHA RAM
19 VIVEK KHAND GOMTI NAGAR
TRADERS 3/117 KANTH SWEET CHOURASIA
Shop No NEW NAKKAS CHAWAL Wali
20 CLASSIC GENERAL NAKKHAS S U AHAMED
185 MARKET GALI
STORE
KHAJANA
Shop No Near Bangla Bazar
21 MARKET, ASHIYANA S.S ARORA
GF 12 road
DAILY NEED ASHIYANA
JEET PLAZA NEAR RAM-RAM
DASHMESH PRO Shop No LAKHAVINDRA
22 RAM RAM BANK ALI GANJ BANK
STORE LGF 36 SINGH
CHOURAHA CHOURAHA
KHUN KHUN JI
23 DEVI DASS OM NA CHOWK Near SBI Bank PREM KUMAR
ROAD CHOWK
PRAKASH
NEAR ASHIYANA DINESH
24 DINESH GENERAL na SEC I ASHIYANA LDA COLONY
CHOURAHA KUMAR
STORE
NEAR
GANESH GEN ARIF CHAMBER
25 Shop No 8 ALI GANJ MAHALAXMI B L JETLI
STORE SEC Q
SWEETS
NAVEEN
shop noS- MARKET MUNSI MUNSI PULIA RAJESH
26 GINNI PRO STORE INDIRA NAGAR
1/K-2 PULIA CHAURAHA AGARWAL
CHAURAHA
SHOP NO- JANTA MARKET, OPP JANTA GIRISH
27 GIRISH GEN STORE GOMTI NAGAR 9
A-2/38&37 VINAY KHAND 2 MARKET KUMAR
Anwar Villa
28 NA Building, Tulsi TOORIYA GANJ Near Machli Mandi AMIT KUMAR
Gomti Prasad Das Marg
NEAR NISHAT
SHOP NO
29 GOOD BAKERY NISHAT GANJ NISHAT GANJ GANJ TEMPO NIKHIL KUMAR
S/40
STAND
Shop No C VIVEK KHAND 2 Near Neel Kanth RAJESH
30 GUPTA GEN STORE GOMTI NAGAR
12 LDA MARKET Sweets GUPTA
55
