The document provides an overview of the Indian food and beverage industry. Some key points: - The Indian food processing industry is valued at $65.6 billion including $20.6 billion in value-added products. - The health beverage industry is valued at $230 million. - The Indian beverage industry faces oversupply in segments like coffee and tea. - The total soft drink market is estimated at 284 million crates per year or $1 billion. - The mineral water market is a 65 million crates ($50 million) industry.

1. OVERVIEW
 The size of the Indian food processing industry is around $ 65.6
billion, including $20.6 billion of value added products.
 The health beverage industry is valued at $230 million.
 The Indian beverage industry faces over supply in segments like
coffee and tea.
 Indian hot beverage market is a tea dominant market.
 The total soft drink (carbonated beverages and juices) market is
estimated at 284 million crates a year or $1 billion.
 The market is highly seasonal in nature with consumption varying
from 25 million crates per month during peak season to 15 million
during offseason.
 The market is predominantly urban with 25 per cent contribution
from rural areas.
 Mineral water market in India is a 65 million crates ($50 million)
industry.

2. PRIMARY RESEARCH
Parle Agro Pvt. Ltd.

3. Parle Agro Pvt. Ltd.
 Established in 1985 and based in Mumbai
 Most trusted in Indian beverage, packaged
drinking water and confectionery industry
 Manufacturer and distributor of fruit and milk
drinks, packaged water etc
 Main focus on Quality, Nutrition and Taste

4. Marketing Mix

5. Marketing Mix
Product Price
 Mango Frooti  Serving to mass market
 Appy Fizz
 Bailly  No aggressive pricing
 Appy Classic strategies
 Butter Cup  Popularity and positive
 Mintrox
Image of the brand helps in
 V3 Fitness
 LMN
selling
 Grappo Fizz
 Saint Juice
 Frewt Éclair
 Hippo

6. Place Promotions
 Reaching all parts of India  Digen Verma Ad Campaign
with own factories and  Creating mystry and building
franchisee up a hype with teasers
 Metropolitan cities like  Outdoor advertisements
Mumbai, Chennai, Banglor  Free samples
e, Delhi and many others  Creative ad campaigns which
 Confectionery factory at associates features of the
Ahemdabad particular product with the
consumer
 Reaching remote rural
market  Events and exhibitions for
distributors

7. Leading Position
Market Share
30%
Frooti
70% Others

8. Market Details
Size of market Rs.700 million
1.50% 19.50%
Bisleri
2% 48% Bailly
4%
Aquafina
Kinely
3% Himalaya
22%
Kingfisher
Local

9. Demand Forecasting
 Based on historical data
 Quaterly
 Analyzing sales data of past 3 to 6 months
and considering distributor’s demand
 Studying consumer behavior and analyzing
current trends

10. Branding Inputs
 Redoing the graphics for “Frooti” brand to push
its sales
 Introduction of Snack Bites “Hippo”
 Attractive packaging
Supply Chain Management
 Franchisee Method

11. International Competition
People follow us. We don’t follow anyone.
 85000 Cr. FMCG industry growing steadily
 Aggressive growth plans and marketing strategies
 Heavy investment of Rs.950 Cr. to build retail
visibility for its water brand “Bailly”
 Increasing water manufacturing factories and
increasing distribution channels for its water brand
 Exporting “Frooti” to U.S. and U.K.
 Mass market in India

12. Domestic Competition
 Major competition from Dabur and Pepsi
 Surveys for trekking competition
 Entering juice industry with a new product “Saint
Juice”
 Lemon based drink “LMN” for Indian consumers
 Entering healthcare brand with Digestive water
“Bailly”

13. Recent Development
 Lowering down the prices of Frooti and Appy
Fizz
 Market potential for flavored water in India
After Sales Services
 Feedback from Consumer Complaint
Department

15. HISTORY
 Pepsi Co Brands are available in 200 Countries
 Some of the Pepsi Co Brands names are more than 100 year old but the
corporation is relative young
 Pepsi Co was founded in 1965
 Pepsi and Coca cola merge with each other and the name of the product
is Pepsi Cola. Pepsi Co merged with the Quaker oats Company in 2001
 Pepsi is a world leader in convenient snacks, foods and beverages
 Revenue is more than 39 billion Dollars and over 185, 000 employees
 The company consists of Pepsi Co Americas Foods (PAF), Pepsi Co
Americas Beverages (PAB) and Pepsi Co International (PI)
 Pepsi Co International includes in the United Kingdom, Europe, Africa
Middle East and Asia

16. 4P’S OF PEPSICO
 Products
 Pepsi
 Gatorade
 Mountain Dew
 Nimbooz
 Slice
 Tropicana
 Aquafina

17. 4P’S OF PEPSICO
 Prices
Pepsi has adopted a market penetration price at the
time when it was introduced. Coca cola covered
the large market in India but now the price of
Pepsi cola is same as of its competitors

18. 4P’S OF PEPSICO
 Places
 Pepsi cola is available in more than 191 countries.
Pepsi has 730 plants working correctly around the
world and in USA and Canada 200 plants are
working there rest 530 are working in other
countries of the world as well as working in India

19. 4P’S OF PEPSICO
 Promotion
 Pepsi does its promotion through media; electronic media
as well as print media through flyers, by sponsoring cricket
matches and in many other places. Promotion is also done
through print media e.g. Newspapers are design of Pepsi
can. The first of many new designs of Pepsi were released in
2007.
 The Pepsi have signed some agreements with a very strong
and expanded retailers such as pizza hut and KFC when you
go to pizza hut or KFC you will find only the Pepsi products
and nor its competitors products. These agreements are
based on the incentives that Pepsi offers to these retailers.
 Pepsi has continued using product endorsement by using
TV actors/ models and cricketers in order to promote their
products.

21. MARKET SHARE

22. COMPETITORS OF PEPSI
 Pepsi is the largest beverage company in India
with 65% market shares. In 1994 the Coca cola
Company reduced the price to Rs.5 and Pepsi has
to reduce the price in order to compete. In doing
this both companies had bear a huge losses.
Coke had a loss of 9 million whereas the Pepsi
bearing a loss of 14 million
 The following are some competitors of the Pepsi
 Coca Cola
 R. C. Cola

23. DEMAND FORECASTING
Importance :
 Essential for making accurate supply chain
decisions
 Ensuring the company’s success
For Example :
 How much of the product to make, how
much to inventory, how much to replenish
and how much to order

24. FORECASTING METHODS
 Time-Series Method
Taking into account the previous two years historical data to forecast
its future demand
 Qualitative Method
Using historical data and market intelligence as a guide.
And a yearly demand plan is forecasted in this way which is then
further divided into monthly, weekly and daily plans accordingly
 Causal Method
Depends mainly on state of the economy, interest rates, and product
pricing that can cause a change in the demand

25. SUPPLY CHAIN MANAGEMENT
 The major focus is to determine the
processes that are to be integrated in the
supply chain network with their
corresponding suppliers, distribution centers
and the associated transport links between
them

26. SOURCING DECISIONS IN
SUPPLY CHAIN
 Pointing out sources of supply and negotiate
with suppliers
 Sourcing of raw material from local and
foreign suppliers
 Deciding terms and conditions with supplier
 Coordinating activities and documentation
with suppliers
 Cost comparisons and quality assurance.

27. OUTPUTS
 Pepsi has captured the market like a storm
and has maintained its market share; mainly
because of its supply chain effectiveness
 The well informed and widespread supply
chain has kept Pepsi on its feet
 The competitive and supply chain strategy
(responsive) achieve strategic fit and there is
excellent coordination and integration
amongst all the supply chain components. It
is indeed the supply chain of the new
generation

28. DISTRIBUTION REVIEW
 Pepsi applied two methods to distribute their
products
 Direct Distribution:
 Pepsi Direct distribute their Product to Whole
Sellers, Restaurants, Hotels, Pizza hut, KFC, Saver Food
and Metro etc
 Export Parties
 Indirect Distribution
 Through Base market Distributions
 Through Outstation Distributors

29. PLACING DISTRIBUTION
 The distribution system of Pepsi Cola Company is organized as
follows
 There are branches in every city of India and these branches are
controlled by the head branches which is located in Mumbai. There is
some Sales Manager and sales executives. The sales executive is also
known as Territory Development Manager (TDM) who is responsible
about the trucks. Then further down is the sales officer who has a wide
authority and then there is a sales supervisor who looks after the trucks
and finally salesman. Each sales manager handles 60 trucks. The
distribution agencies are formed in every large city of India. The trucks of
the company supplies products to these distribution agencies and then
these agent further supplies these products to the retailers.
 Before delivering the products some certain guiding Principles are
followed by Pepsi Co
 Applicant must have 20-25 vehicles (Depending on the Area).
 Applicant must have 20, 000 Cases of Empty Bottles.
 Applicant must Deposit Rs. 10, 00, 000 as a security.

30. BRANDING INPUT
 Pepsi has a long-standing commitment to
protecting the consumer whose trust and
confidence in its products in the bedrock of
its success. In order to ensure that Consumers
stay inform about the global quality of all
Pepsi product sold in the world, Pepsi product
carry a quality assurance seal on them. Pepsi
commitment is to deliver sustained
growth, through empowered people, acting
with responsibility and building trust

31. RECOMMENDATIONS
 Bringing Pepsi’s packaging raw material in
the just in time system (JIT).
 Use of direct store delivery (DSD) model.
 By incorporating wireless
technology, Pepsi’s account sales
managers can take orders on-site, which
are then remotely uploaded to a central
order and routing system at headquarters
via wireless connectivity

35. BRANDING INPUTS
 The famous Coca-Cola logo was created by John
Pemberton's bookkeeper, Frank Mason
Robinson, in 1885
 The equally famous Coca-Cola bottle, called the
"contour bottle" within the company, but known
to some as the "hobble skirt" bottle, was created
in 1915 by bottle designer Earl R. Dean

36. COCA–COLA IN INDIA
 Coca-Cola was the leading soft drink brand in
India until 1977, when it left rather than reveal its
formula to the Government and reduce its equity
stake as required under the Foreign Regulation
Act (FERA) which governed the operations of
foreign companies in India
 In the new liberalized and deregulated
environment in 1993, Coca-Cola made its re-
entry into India through its 100% owned
subsidiary, HCCBPL, the Indian bottling arm of

37. Cont….
 At Present there are 3 COBO Regions and 27 COBO
Units under HCCBPL and 1 FOBO Region and
12 FOBO Units under CCI.
} COBO Territories – Coca cola
owned bottling operations
FOBO Territories-
Franchisee owned bottling
operations

38. MARKET SHARE
Figures in %age Figures in %age
MARKET SHARE IN COMPARISION IN CSD
VARIOUS SEGMENTS
30
70 25 13.1
60 20
50 15 8.9 5.8
7.4 0.4
40 10 16.5
5 8.2 10 10.9 12.2
30 60 0
20 36 33
10
0
CSD FRUIT MINERAL
JUICE WATER C0KE PRODUCTS
MARKET SHARE PEPSI PRODUCTS
Source-HCCBPL monthly circular –AC NIELSON

39. MARKET SIZE
 Currently offers nearly 400 brands
in over 200 countries or territories
and serves 1.5 billion servings each
day
 At present Coca-Cola revenue is
about $ 31 billion
 At present, Indian food and
beverages industry is worth
about Rs 4,220 billion

40. PRODUCT RANGE IN INDIA

41. Sparkling Beverages
Juices
Water and Soda

42. PRICE STRATEGY
 Trade Promotion : Coca cola company gives incentives to middle men
or retailers in way a that they offer them free samples and free empty
bottles, by this these retailers and middle man push their product in the
market. And that’s why coca cola seen more in the market. And they
have a good sale in the market because according to the expert which
product seen more in the market that sells more. They do agreements
with shop keepers and stores for exclusive sale in that store. These
stores are called as KEY accounts in their local language. And coke also
invest heavy budget on these stores and offers them free samples and
free bottles and some time cash incentives
 Different Price In Different Seasons : Some times Coca Cola Company
change their product prices according to the season. Summer is
supposed to be a good season for beverage industry in India. So in
winter they reduce their prices to maintain their sales and profit. But
normally they reduce the prices of their pet bottles or 1 litter glass bottle

43. PROMOTION STRATEGIES
 Getting shelves
They get or purchase shelves in big departmental stores and display their
products in that shelves in that style which show their product more clear and
more attractive for the consumers
 Eye Catching Position
Salesman of the coca cola company positions their freezers and their products in
eye-catching positions. Normally they keep their freezers near the entrance of
the stores
 Sale Promotion
Company also do sponsorships with different college and school’s cafes and
sponsors their sports events and other extra curriculum activities for getting
market share
 UTC Scheme
UTC mean under the crown scheme, coca cola often do this type of scheme and
they offer very handy prizes in it. Like once they offer bicycles, caps, TV sets, cash
prizes etc. This scheme is very much popular among children

44.  ADVERTISEMENT
Coca cola company use different mediums
1. Print media
2. TV commercial
3. Billboards and holdings
4. Print Media : They often use print media for advertisement. They have a
separate department for print media
5. POS Material : Pos material mean point of sale material this includes:
posters and stickers display in the stores and in different areas

46. DISTRIBUTION SYSTEM
Distribution Routes
1)Key Accounts-Clubs, fine dine restaurants, hotels, Corporate
houses
2)Future Consumption- Super markets and Departmental stores
3)Immediate Consumption- convenience stores like pan shops
Distribution System
1)Direct distribution
2)Indirect distribution
Distribution chain at HCCBPL
Production  Plant Warehouse  Depot Warehouse Retail
Stock  Retail Shelf  Consumer
2/21/2013 46

47. DISTRIBUTION CHANNELS
 Coca Cola Company makes two types of selling
1. Direct selling - In direct selling they supply their products in shops by using
their own transports. They have almost 450 vehicles to supply their bottles. In
this type of selling company have more profit margin
2. Indirect selling - They have their whole sellers and agencies to cover all area.
Because it is very difficult for them to cover all area of India by their own so they
have so many whole sellers and agencies to assure their customers for
availability of coca cola products
 FACILITATING THE PRODUCT BY INFRASTRUCTURE
For providing their product in good manner company has provided infrastructure
these includes:
1. Vizi cooler
2. Freezers
3. Display racks
4. Free empty bottles and shells for bottles

48. FORECASTING FACTORS
 Basis of forecasting- Historical data- 10 %
increase in demand than previous years sales
 GDP growth
 Seasonal variation
 Review done each week about sales turnover

49. HOW COKE DETERMINE THE YEARLY
BUDGET determines its yearly budget by the :
Coke
1. Sales volume - Coke determines its yearly budget through the sales volume. They first
concentrate on the thing is “what is the condition of their sales?” if the condition is good
of their sales then they definitely increase their production and sales volume. Otherwise
they concentrate on their old strategies
2. Profitability - The second thing through which they determines budget is the “profit” .if
they r getting profits with the high margin, then they definitely want to increase their
profits in the next coming year. Every organization runs on the basis of getting high
profits. No organization wants to face Loss in their business. To get profit is the first
priority of the Coke
3. Target volume - To run the business every industry has some targets, which they want to
achieve in a specific time period. If industry achieves those goals in that period then for
the coming year it increases the volume of the target. So Coke Follow the same thing it
has also some goals and targets to achieve in the given time period. When they succeed
to achieve that target then they increase their target volume in the next year