2. 2
INDIA AND SOFT DRINKS INDUSTRY
India had "strange bedfellows" kind of relationship with MNC's, which gave a significance to
drink industry of India when Coca-Cola decided to wind up its operations in 1977 rather than
bowing to the Indian Govt. insistence on :-
Dilution of equity, as the Govt. felt that the loss of foreign currency was being drained.
Manufacturing of the top-secret concentrate (syrup) in India.
Disclosure of the chemical composition of the essence.
After the winding up of Coca-Cola a large space was left in the vast soft drink market, and a
vista was opened for any company with the requisite, technical, marketing and organization
skill.
Three or four groups of Indian bottling companies had the requisite production capacity and
started their own branch of COLA, LEMON & ORANGE flavors but failed to achieve their
respective goals on the national prospective.
OWNER COMPANY PRODUCTS
Mc Dowell Thrill, Rush, Sprint, Kissan
Parle Thumps up, Gold Spot, Limca, Maaza
Pure Drinks Campa-Cola, Campa- Orange, Campa-Lemon, Tripp
Modern Bakeries 777, Tingler
Double Cola Sky Lemon, Orenjoy Lemon, Hc Man Soda
Lipton Tree top
Punjab Agro Ltd., VolFruit
3. 3
Their well equipped bottling plants and the distribution networks were of no use until 1977
when they developed a new formula to survive and they gradually came up with Lemon,
Orange and Cola flavors.
No doubt in this era the race winner was Parle with Thumps up, Gold Spot and Limca under its
umbrella.
Parle products viz. Thumps up, Gold Spot and Limca become the market leader in their
respective segments. Thumps up was the frontrunner of Parle brands blazing its way bearing the
slogan " happy times are here again" indicating the coke replacement. Thumps up to very great
extent retrieved the coke addicts from the so-called "Cola-shock" or "Cola-depression"
In spite of all these, the soft drink market is still has large gap, as claim by soft drink
Manufactures. To fill the gap, there many soft drinks concentrate and squashes flooding the
market.
The Indian soft drink market basically offered three flavors, i.e. orange, lemon and cola now
after long gap government of India invited Pepsi Cola Company in 1990 and it pumped Rs.
1000crores into India's operation.
Pepsi Cola company founded by Cable Bradham in 1890 at North Carolina in U.S.A. now it is
ranked 86th (1966) in the world with an asset of around $ 25000 million, having its headquarter
at New York. In India it has more than 24 bottling plants of them 10 are COBO and 14 FOBO
of witch one is in Jharkhand at Jamshedpur.
Along with Pepsi, Coca-Cola also entered India in 1993 and has joined with Parle to do
business on India soil regain its lost prestige.
4. 4
PEPSI– “THE INDIAN RENDEZVOUS”
In 1989 Pepsi set its foot in India. It came a bang and gave a global message - " we are here to
stay"
Pepsi in a short span of its operations in India has found a place in hearts and minds of the
Indian consumers. The success has primarily been due to the innovate and passionate Indian
team which has been built over the years. Pepsi is trendsetter managed and run by Indians,
where important decisions are taken locally.
Pepsi started its operation in India and the national objective of development of technology and
accelerating exports and employment. It has brought in over $ 500 million in foreign exchange
as well as technology, witch is used, for its global network to develop value added local and
export business. It has not repatriated any money by way of royalty, know-how or dividends.
Pepsi Co is fully committed to India and the national objective of development of technology
and accelerating exports and employment. It has brought in over $ 500 million in foreign
exchange as well as technology, witch is used, for its global network to develop value added
local and export business. It has not repatriated any money by way of royalty, know-how or
dividends.
Pepsi Co has a turn over of $ 20 billion, half of which comes from beverages and other half
from snack foods division. The beverages arm of the Pepsi Co is Pepsi Cola Company and the
Snack Food Company is called Frito Lay Inc.
5. 5
Beverages
Pepsi has setup a concentrate plant in 1990 at Channo, District Sangrur, Punjab, with an
investment of $5million.The state of art plant houses a world class laboratory where Soft Drink
from all over the world is tested. The concentrate plant supplies Pepsi, 7up, Mirinda Orange,
Apple & Lemon flavors to all Pepsibottling plants in south Asia.
Pepsi has 40 bottling plants in India, out of which 16 are owned and 24 are owned by Indian
franchises. PepsiCo has invested heavily on up-gradation of these bottling plants and has put-up
5 green field projects in backward areas as Jainpur and Bazpur in U.P, Bharuch in Gujarat,
Sonarpur in West Bengal and Nelamangala in Karnataka. New projects are coming up in
Maharashtra and Tamil Nadu.
In addition to Company's own bottling operations [COBO]. Pepsi has 24 franchises owned
bottling unit in India. These franchise manufactures are also planning to install substantial
additional capacities. In last two years PepsiCo's franchises have put up new bottling plants at
Jaipur, Bhopal, Hajipur [Bihar], Guntur [AP] and Guwahati [Assam] with further investments.
PepsiCo's franchisees are amongst the best in Pepsi world and in 1998 two Indian franchisees
where chosen for being the bottling of the year amongst all international bottles.
Juices
PepsiCo Plans to launch in a big way in India, thereby helping the farmers in fruit procurement.
PepsiCo agriculture Scientists have undertaken research on Mango, Guava & Oranges and these
fruits will be priority area for the juice launch in India. Presently Pepsi has two juice brands
Mangola and Slice which are presently Mango Juice Brands. PepsiCo also has juice bottling
line in most of the plants.
6. 6
Employment Generation
Pepsi provides direct and indirect employment to 45000 person. In addition, it also generate
substantial employment in the unit supplying raw materials / packaging material, fountain cups,
distribution vehicles glass bottles, plastic crates, display racks etc. and small artisans, painters
and small traders in market place activities.
Beverages business is a service Industry, being highly distribution oriented. The Pepsi system
operates over 2000 trucks [directly operations], 50000 three wheelers [distribution] and at last
1000 push carts, servicing over half a million outlets in indo. By the year 2001 the number of
outlets to be serviced are expected to be double.
Revenue Generation
It is estimated that Pepsi Co. and its Franchisees generate over Rs. 700 Crores to the exchequer
by the collection of excise duty and sales taxes.
10. 10
Our Vision and Mission
Indra Nooyi,CEO AND CHAIRMAN,PepsiCo
At PepsiCo, we believe being a responsible corporate citizen is not only the right thing to do,
but the right thing to do for our Business.
Our Vision
"PepsiCo's responsibility is to continually improve all aspects of the world in which we operate
– environment, social, economic – creating a better tomorrow than today."
Our vision is put into action through programs and a focus on environmental stewardship,
activities to benefit society, and a commitment to build shareholder value by making PepsiCo a
truly sustainable company.
Our Mission
Our mission is to be the world's premier consumer Products Company focused on convenient
foods and beverages. We seek to produce financial rewards to investors as we provide
opportunities for growth and enrichment to our employees, our partners and the communities in
which we operate. And in everything we do, we strive for honesty, fairness and integrity.
11. 11
Performance with Purpose
At PepsiCo, we're committed to achieving business and financial success while leaving a
positive imprint on Society – delivering what we call Performance with Purpose. Our approach
to superior financial performance is Straight forward – drive shareholder value. By addressing
social and environmental issues, we also deliver on our Purpose agenda, which consists of
human, environmental, and talent sustainability.
12. 12
ABOUT THE ORGANIZATION
Company Profile of the S.M.V.(Jamshedpur).
S.C.B.L. Adityapur, Jamshedpur is a medium sector enterprise, located amidst beautiful
surroundings, on the Tata-Kandra Road in the Adityapur Industrial Area and producing Pepsi
range of bottled soft drinks viz., Pepsi, 7 Up, Mirinda (Lemon, Orange, Apple) , it had now
become a household word in the South Bihar today symbolizing achievement and advancement
over the years. Today, it symbolizes self-reliance in quality and technology, productivity and
industrial relation since, its inception over 25 years ago.
Steel City Beverages Ltd. was established in 1967 and production commenced in March
1969. At the very outset the company installed state of the art machines and technology, for the
production and bottling of Soft Drinks. The bottling plant with a capacity to produce 220 bottle
per minute is totally automatic and also had a modern state of inter mix machine for bringing
forth the right blend of flavors. The Company continues to adopt and innovate technology in
keeping with its policy of constant quality improvements. With the advent Pepsi Cola
International in India, the company entered into an agreement with Pepsi Foods Limited for the
production and sales of Pepsi range of Soft Drinks for South Bihar.
The company which had a man power of 110, ranked as the best bottling company in the
country in terms of quality, efficiency, sales, productivity and HRD. Under the guidance of its
chairperson, Smt. Kusum Kamani and its Managing Director, Sri Nakul Kamani, the company
had consistently bagged on numerous occasions, awards for quality assurance and productivity.
In 1993, it bagged top honors for being the most quality conscious plant amongst all
Pepsibottling companies in India.
Steel City Beverages Ltd. was taken over by Mr. S.K.Jaipuria in march 1999 from Mr.
Nakul Kamani along with Rushabh Marketing (P) Ltd., a marketing Unit.
13. 13
Mr. S.K. Jaipuria is a very enthusiastic and enterprising businessman. He has a number of
bottling plants all over India in places like Orissa, Bhopal, Nagpur, Hyderabad & Dharward etc.
He always wanted to increase the production and sales of his products.
So in the year 2002 another bottling plant in the name of SMV Beverages (Jamshedpur),
a Unit of SMV Agencies (P) Ltd. was established by Mr. S.K. Jaipuria. It has the capacity to
produce 600BPM in Jamshedpur, which is catering to the need of the whole of Jharkhand. It is
also a Franchisee of Pepsi.
Though Mr. Jaipuria holds the top position but the overall policies regarding managerial
decision and all executive functions are performed and looked after by Mr. P.S.Kumar-Director
of SMV Beverages (Jamshedpur). The Director looks after all the functions of production,
Sales, Accounts Personnel, Purchase etc. all the departmental Heads are assisting him in smooth
running of the day to day affairs of the company.
SMV Beverages (Jamshedpur) is proud of Wining PEPSI Q.A (Gold) International Quality
Award for the year 2001.
SMV Beverages (Jamshedpur) is also proud of setting up PET Plant in March 2003. It has the
capacity of bottling 40 PET bottle per minute. It is bottling 600ml, 1 liter and 2 liter PET bottles
of different flavor.
1. Pepsi(Cola)
2. Mirinda Lemon
3. Mirinda Orange
4. 7 UP
5. Mountain Dew
14. 14
At present SMV Beverages (Jamshedpur) (a Unit of SMV Agencies (P) Ltd.) has following
Sister Concerns.
1. Steel City Beverages Pvt. Ltd.
2. Hyderabad Marketing Company
Earlier it had M/s. Kamani Foods which was only bottling SLICE and in 2004 M/s. Kamani
Foods was merged with SCBPL now SCBPL is producing SLICE along with other brands of
PEPSI. It is mainly bottling 200 ml & 250 ml (Slice). SCBPL was producing different brands of
Pepsi i.e. Pepsi, Mirinda (orange), Mirinda (lemon), soda of 300ml.after the merging of Kamani
foods, It started producing slice of 250 ml.
Recently, SCBPL has set up a Pet plant for bottling slice in pet bottles of 500ml and 1.2 liters. It
is also proposed to bottle 350ml(pet).the planning is to sell slice in four states i.e. Jharkhand,
Bihar, Orrisa, Bengal, etc.
For every concern a structure is necessary on which the complete organization should be
founded. To have structure is not a choice of the organizer. The choice is only of the form and
pattern of the organization planned organizational structure may be proved logical clear-cut and
streamlined in order to meet the present requirements. Otherwise it will merely be a makeshift
arrangement and the management is rendered difficult and infective because organizational
structure affects everyone in the organizations. A good organizational structure facilitates
efficient management and the operation of enterprises and it encourages growth. It helps
organization to reach it's predetermined goals.
In order to make organization structure more effective one should keep in organizational
structure that can meet the demand of various factors namely environment technology, size and
people S.M.V Beverages (Jamshedpur) has duly considered these factors to build an efficient
organization structure. As it is a medium scale enterprises and fully automatic, the manpower
requirement is less. Hence, like any contemporary, it has adopted a flat structure.
15. 15
Following are the major features of the organizational structure of SMV Beverages
(Jamshedpur) .
1. Clear lines of authority.
2. Adequate delegation of authority.
3. Minimum Managerial level.
4. Unity of Directors.
5. Applications of ultimate responsibility.
6. Span of control.
7. Simplicity.
8. Flexibility.
9. Due consideration for top groups.
SMV Beverages (Jamshedpur) has a management board headed by its unit Manager & Director
Mr. P.S.Kumar. He is responsible for overall policies regarding managerial decisions and all the
executive functions. He looks after all the functional departments like production, Sales,
Accounts, Personnel & Purchase. Their respective Managers who send reports to the unit
Managers and are responsible to him in every sense of working head every department.
The Plant Manager is the head of the production department. He looks after production i.e.
bottling process, inspection, storage of new materials and maintenance of the plant as a whole.
He also heads the Quality Controldepartment through Quality Control Manager.
The Controller of Accounts head the accounts department, under him there is a Chief
Accountant. The Purchase Manager is in charge of all purchase-shipping departments, Manager
(equipment) is responsible for the distribution and maintenance of visi-coolers and PMX.
Personnel department is headed by the Personnel Manager and looks after the function of
administration, Industrial relation, legal jobs, security welfare etc.
16. 16
Hyderabad Marketing Company
In this unit, the head of Sales and Marketing is in charge of all the marketing activities i.e. Sales
promotion, Publicity, Advertisement, Market survey and shipping. Though his main function is
to have a control over the outlets distribution, Sales Manager is assisted by sales executives and
sales supervisor.
ProductProfile
The products manufactured by SMV Beverages (Jamshedpur) are very limited in range as it is
not independent to diversify its products when required. This is because it is a unit of PEPSI
FOOD LTD., which supplies the concentrates for different brands of SoftDrinks.
THESE ARE
PEPSI(Cola Flavor)
MIRINDA ( Orange, Lemon and Apple Flavor)
7 UP ( Clean Lemon Flavor)
MOUNTAIN DEW
SODA EVERESS
NEMBUOS
SLICE (Mango flavor, having concentration of Alphanso/Totapuri Mango Pulp 30:70)
17. 17
Among all the products, Pepsi is the most popular and liked by all generations. But the young
masses are the Chief Consumers and it's consumption has become a life style among the new
generation.
Recently, Mirinda Apple has been launched which is likely to capture the market successfully
like other products.
Beside direct consumer, they are used by hoteliers, restaurants owners and various other soft
drinks peddlers. Thus, it can be said that these are the productfor mass consumption's.
THE PRODUCTIONPROCESS
The productionprocess being carried on the SMV Beverages (Jamshedpur) in of batch type.
The entire process is almost automatic and it requires huge amount of water and electricity. The
production process is divided into following steps:-
Water Treatment
Bottle Washing
Syrup Preparation
Filling
Shipping
WATER TREATMENT
SMV Beverages (Jamshedpur) gets water from Sitarampur dam. This water after being
collected in huge tanks undergoes two different treatments resulting in soft water and treated
water.
18. 18
SOFT WATER
The municipal water is passed through sand filter, carbon purifier and salt charged softener (to
remove hardness). The water obtained after this treatment is called soft water. This soft water
being kept with 2-4 PPM c12 in storage tank is used for bottle washing and the water being
stored with c12 goes to the boiler.
TREATED WATER
The municipal water is at first treated with Ferrous Sulphate (FeSo4), lime and chlorine. This
process involved is called Coagulation and it takes place in the reaction tank. From reaction
tank the water moves on to the intermediate tank to be stored in storage tank. From there it
passes through the sand filter, carbon purifier, micro purifier and U-V light. Water obtained
after this much treatment is called treated water and is used preparation of drink.
BOTTLE WASHING
Bottle coming back from market need to be washed before filling. Washing of bottles is a
completely automatic process. Which takes place in a machine having three chambers. Bottles
are put on the conveyor and as they enter the machine they undergo three successive treatment.
At first, they are treated with 4% caustic soda at 100-150 F. In the next chamber, they are
treated with 2% caustic soda at 120F and in the third chamber they are treated with soft water.
The cleaned bottled are sent to inspection, where the upper and lower portions of the bottle are
watching successively against strong light.
SYRUP PREPARATION
The room is well equipped with several tanks and filter press. The Syrup is prepared with
calculated amount of sugar and water being heated up to 85 C. This syrup is passed through
filter press. The filtered syrup is passed through a Para flow cooler whereby recycling and
glycol method the syrup is cooled down to 20-25 C. The cooled syrup is stored is syrup tank.
19. 19
FILLING
The syrup mixed with carbonated water under pressure in a Traumatic machine. Inspected
bottles gradually come under the " Filler machine" where the carbonated syrup is poured into
the bottles and the crowner machine helps in closing the bottles completely airtight. Ready
bottles are once again inspected to check the quantity and from there they are collected.
SHIPPING
After the whole process of bottling is completed, filled bottles in cases (crates) are sent to the
shipping department and it sends them to different destinations for Sale.
20. 20
Channel (Retailers)
1.Convenience store:- A convenience store is a small retail business that stocks a range of
everyday items such as groceries, snack foods, candy, soft drinks, , tobacco products.
Convenience stores usually charge significantly higher prices than conventional grocery
stores or supermarkets, as convenience stores order smaller quantities of inventory at higher
per-unit prices from wholesalers. However convenience stores make up for this by having
longer opening hours, serving more locations, and having shorter cashier lines.
2.Grocery store:- A grocery store is a retail store that primarily sells food. A grocer is a bulk
seller of food. Grocery stores often offer non-perishable food that is packaged in cans, bottles
and boxes, with some also having fresh produce, butchers, delis, and bakeries. Large grocery
stores that stock significant amounts of non-food products, such as clothing and household
items, are called supermarkets.
3.Eatery store:- A food court is also known as eatery store is generally an indoor plaza
or common area within a facility that is contiguous with the counters of multiple food vendors
and provides a common area for self-serve dinner. Food courts may be found in shopping
malls, airports, and parks. In some places of learning such as high schools and universities, food
courts have also come to replace or complement traditional cafeterias.
Convenience store Grocerystore Eatery store
21. 21
Direct store delivery
Under the DSD system, PepsiCo delivers products directly to retail stores. Of the three
channels, DSD enables PepsiCo to merchandise with maximum visibility. It’s more suitable for
products that are restocked often and are sensitive to promotions and marketing.
Customer warehouse
The customer warehouse system is a less expensive distribution channel. It’s ideal for products
that are less fragile and perishable, have lower turnover, and are not purchased impulsively.
Third-party distributor networks
PepsiCo distributes food and beverage products to restaurants, businesses, schools, and
stadiums through third-party food service and vending distributors and operators.
23. 23
In this study research is conducted on Distribution strategy of SMV BEVERAGES PVT
LTD.(PepsiCo), Jamshedpur.
A distribution strategy is a plan created by the manufacturing department of a company that
outlines how the company aims to make its products available to retailers, intermediaries and
consumers. The strategy focuses on the location of the target market, transportation and the
storage of the stock.
In this sense, the nature of the present research, which works at the activity centre in an
integrated manner, is more comprehensive in its scope.
Objectives of the Study
The Objectives of the Present Study are:
1. To examine the physical distribution system of PEPSICO products in the city Jamshedpur.
2.To find out the availability of different Sku's of PepsiCo products in Jamshedpur.
2. To offer a sustainable suggestion to improve the customer services based on findings.
3.To assess the level of inter-relationship between the different activity centers for the company.
The study would also identify the existing level of customer service in the selected companies.
The study would attempt to suggest a framework for establishing a customer service level. For a
particular level of customer service, different combinations of activity centres are possible.
From these different combinations, the least costcombination would be suggested.
24. 24
RESEARCH METHODOLOGY
It includes Research Design, data sources and collection procedures, sampling method, sample
size and data analysis procedures.
Objective- To find the availability of different Sku's of PEPSICO productsin the city
Jamshedpur.
Type of research-Descriptive research
Data collected- Primary data & Secondary data
Data collection instrument - Questionnaire
Sample unit- Retail Pepsioutlets in Jamshedpur
Sampling technique- Random sampling
Sampling size-516
Data analysis techniques and tools- Bar graph, excel
26. 26
1.Availability of different Sku's of Pepsi.
Interpretation:
As per the bar graph we infer that there is a huge availability of 200ml and 2 ltr. 250ml and
750ml are not much available in the market. there is average availability of 400 ml, 600ml and
1000ml of pepsi.
386
1
153
241
20
175
323
0
50
100
150
200
250
300
350
400
450
200 250 400 600 750 1000 2000
27. 27
Interpretation:
As per the bar graph we infer that their is a huge availability of 200 ml and 2ltr of mirinda.
400ml, 600ml and 1ltr has average availability. 250 ml has very few in the market. Mirinda is
the productwhich is for family so we have to focus on this brand.
352
1
131
297
259
318
0
50
100
150
200
250
300
350
400
200ml. 250ml. 400ml. 600ml. 1ltr. 2ltr.
2.Availability of differentsku'sof mirinda.
28. 28
Interpretation:
As per the bar graph we infer that200ml, 600ml and 2ltr of 7up are available in the market and
also there is a availability of 400ml and 1ltr of 7up. and there is very few number of retailers
who have 250 ml of 7up.
0
50
100
150
200
250
300
350
200ml. 250ml. 400ml. 600ml. 1ltr. 2ltr.
316
3
105
257
93
280
3.Availability of differentsku'sof 7UP.
29. 29
Interpretation:
As per the bar graph we infer it is the most liked brand of the pepsi by young generation and it
is the only product which has no competitive brand. 200 ml ,600ml and 2ltr are available in the
market. we have to focus on the availability of 400ml and 1ltr. and we have to make the
availability of 250 ml can.
350
2
106
236
106
259
0
50
100
150
200
250
300
350
400
200ml. 250ml. 400ml. 600ml. 1ltr. 2ltr.
4.Availability of differentsku'sof M.DEW.
30. 30
Interpretation:
As per the bar graph we infer that there is a average availability of the all the sku's of slice and
there is a high demand of slice in the market but it is not fulfilled by the company. so the
company has to focus on the availability of slice in order to meet market demand.
273
173
253
0
50
100
150
200
250
300
200ml. 600ml. 1.2ltr.
5.Availability of differentsku'sof SLICE.
31. 31
Interpretation:
As per the bar graph we infer that there is a great availability of aquafina 1ltr in respect to the
500ml of aquafina. we have to focused on the availability of both the product that every outlets
may have aquafina.
9
347
0
50
100
150
200
250
300
350
400
500ml. 1ltr.
6.Availability of differentsku'sof Aquafina.
32. 32
7.Availability of 200ml of sku's.
Products No. of responses Percentage
Pepsi 386 23
Mirinda 352 21
7up 316 19
Mountain dew 350 21
Slice 273 16
Interpretation:
By the pie chart we infer that there is a huge availability of pepsi in respect to others and there
is a very low availability of 200ml of slice and all the other product have average availability
inthe market. we can say all around there is a good availability of 200 ml of sku's.
23%
21%
19%
21%
16%
pepsi mirinda 7up mountain dew slice
33. 33
8.Availability of 400ml of sku's.
Products No. of responses Percentage
Pepsi 153 31
Mirinda 131 27
7up 105 21
Mountain dew 106 21
Interpretation:
By the pie chart we infer that 400 ml of pepsihas more availability in the market in respectto
the others and there is a almost same availability of 400 ml of 7up and mountain dew. Mirinda
has owned by the 27% of availability.
31%
27%
21%
21%
pepsi mirinda 7up mountain dew
34. 34
9.Availability of 600ml of sku's.
Products No. of responses Percentage
Pepsi 241 20
Mirinda 297 25
7up 257 21
Mountain dew 236 20
Slice 173 14
Interpretation:
As per the chart we infer that there is a huge availability of 600 ml of mirinda and 20% of pepsi
and mountain dew each. there is very low availability of 600 ml of slice which is 14%. AND
7UP has 21% of availability in the market.
20%
25%
21%
20%
14%
pepsi mirinda 7up mountain dew slice
35. 35
10.Availability of 1litre of sku's.
Products No. of responses Percentage
Pepsi 175 27
Mirinda 259 41
7up 95 15
Mountain dew 106 17
Interpretation:
By the pie chart we infer that 1litre of mirinda has more availability in the market in respect to
others. Pepsi and mountain dew has 27% and 17% respectively availability in the market. and
7up ha svery low availability which is 15% in the market.
27%
41%
15%
17%
pepsi mirinda 7up mountain dew
36. 36
11.Availability of 2 litre of sku's.
Products No. of responses Percentage
Pepsi 323 27
Mirinda 318 27
7up 280 24
Mountain dew 259 22
Interpretation:
As per the pie chart we infer that there is same availability of 2 litre of pepsi and mirinda which
is 27%. 2litre of 7up has 24% availability and mountain dew has 22% availability in the market.
27%
27%
24%
22%
pepsi mirinda 7up mountain dew
37. 37
Interpretation:-
As per the graph we infer that there is a increasing trend in the demand line from january to
may, after that it diminishes and then again increase from the month of july to september and
decreases in the month of october.
0
5
10
15
20
25
AxisTitle
Seasonal demand of pepsico products.
39. 39
FINDINGS
Some retailers are not happy with the services provided by the distributor.
Retailers are unable to get the services provided by the company.
There is no good relationship between distributors and retailers which can decrease the
sale of the pepsi product.
Some of the retailers are not aware with the schemes given by the company.
Some retailers have fault in visi coolers which may not provide chilled cold drink.
Some retailers are unhappy with the delivery of the pepsiand after sales service.
Company should provide better facility of logistics because without logistic any company
cannot maintain good distribution strategies.
In some areas due to high availability of cocacola products customerprefer cocacola.
There is a huge availability of 200 ml of glass bottle and 2 litre of different sku's of
PepsiCo products.
There is very low availability of 250 ml cans of different sku's and lehar soda.
40. 40
CONCLUSION
While researching on DISTRIBUTION STRATEGY OF SMV BEVERAGES PVT.
LTD(PEPSICO), i have truly enjoyed my research report from the learning and experience view
point. I am quite sure that this type of experience will definitely help me to encourage my
research career in future.
The primary objective of this research was to develop a complete understanding of the overall
functioning of PepsiCo India including the distribution network. The data collected provided a
sound base for understanding the overall organizational set up of SMV beverages pvt
ltd.(PepsiCo).
1. The Sales and Distribution Network of Pepsiis very strong and almost flawless.
2. Maintaining the good relationship with the distributors are very important for the
company because they are the main part of the distribution channel.
3. Franchisee based operations combined with the Company’s operations add strength to the
overall presence of the Company in the market.
4. It is very important to develop good relationship with the retailers by providing them
better services and schemes.
5. PepsiCo India had the first mover advantage when it entered the market and it capitalized
on that advantage to grab the market.
6. Franchisee takes care of its operations and PepsiCo does not interfere in its operations.
The Franchisees are required to report to the Company at specific time intervals.
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LIMITATIONS
I have completed this survey process within two months only. most probably 15-20 minutes
for each persons. My target was to survey at least 500 retailers of Pepsi in the different
markets of Jamshedpur . but it was very hard to find out them as most of the people do not
use internet banking. Further some of them were not interested to express their opinions.
Respondents are too busy to read the questions properly and tick the answer just for the sake
of completing the survey quickly so there is no guarantee that the data collected is 100 %
correct.
The area of survey was Jamshedpur, Jharkhand. and it was concentrated on urban area only.
The psychological condition varies from place to place because in many places outlet owner
was not supportive.
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SUGGESTION
Distribution of productshould improve during summer as this is the peak time of the business.
the P.S.R. should be trained and to be courteous with the retailer
More emphasis should be given to the existing retailers at the same time new retailer are to be
encouraged to sale pepsiproduct.
Supply should be prompt and time to the problem monitoring to be done.
Merchandising facilities should be fulfilled on time like glow shine board, banners etc.
There should be more brand awareness specially in rural areas.
Pepsi visi coolers and racks should be made easily available for the retailers to serve the
purposeof visibility as they say - JO DIKHEGA WOHI BIKEGA.
P-O-G should be done regularly as it poses sales of the product as well as gives more visibility
of the products.
Pepsishould have to maximize the availability of 250 ml cans of different sku's and lehar soda.