MANAGEMENT THESIS FINAL REPORT

ON

“A STUDY ON THE MERCHANDISING STRATEGIES OF

PEPSI FOR ITS COLD DRINKS”

A report submitted in partial fulfillment of requirements

Of
MBA PROGRAM (CLASS OF 2007-09)

SUBMITTED TO: - SUBMITTED

BY:-
Ms.Chanchal Sharma Umesh
Tanwar
(Faculty Guide)
(7NBBKO30)

MANAGEMENT THESIS FINAL REPORT

MANAGEMENT THESIS FINAL REPORT
 CONTENT

• CHAPTER -1

INTRODUCTION
• CHAPTER- 2

OBJECTIVE OF THE STUDY

• CHAPTER- 3

METHODOLOGY

• CHAPTER- 4

ANALYSIS AND INTERPRETATION

• CHAPTER- 5

LIMITATIONS

• CHAPTER-6

CONCLUSION

ANNEXURE

MANAGEMENT THESIS FINAL REPORT

 ACKNOWLEDGEMENT
It is great pleasure for me to express my hearty and sincere gratitude to
my Faculty Guide, Ms. Chanchal Sharma. (Faculty of Soft skill trainer
of INC, Bikaner). Under whose genuine and inspiring guidance the
present piece of investigation could get its present shape within such a
limited range of time.

I am highly thankful to Mr. Vipul Verma (Territory Development

Manager) who guided me in the survey the area and to the management of
PepsiCo for permitting me to carry out the present research work.

Special thanks are also due to all the employees, customers, retailers and
distributors related to PepsiCo Company for their precious co-operation
provided to the investigator during the period of data collection.

More than anyone I wish to records my feeling of gratefulness to my

family members. I am thankful to my father Mr. Bajarang lal Tanwar &
my friends. Their inspirations, affection, care and whose blessings have
given me necessary enthusiasm and encouragement to complete this
work.

Place: Bikaner Umesh Tanwar

7NBBK030

MANAGEMENT THESIS FINAL REPORT

 DECLARETION

I Umesh Tanwar declaring that all the information given in this

report is correct and all the data given by me in this report are true as far as I
know.

I am Also declaring that all the work done in this report is my real
work and I did not copy it from anywhere.

Umesh Tanwar
7NBBK030
INC Bikaner

MANAGEMENT THESIS FINAL REPORT

 Chapter- 1

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-cla in the year

1890 as a cure Dyespsia (indignation), in 1903, business strategy worked & in
1905 he built in 1909 he had a New York advting agency. PepsiCo Food &
Beverages International, a full fledge co. earn s 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 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’s mission is “To be the world's premier consumer products
company focused on convenient foods and beverages.

MANAGEMENT THESIS FINAL REPORT

 SALES AND MARKETING DEPARTMENT

Sales and marketing department which 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.

MANAGEMENT THESIS FINAL REPORT

 • 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.

PRODUCT 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, Evervess Soda
and Aquafina, Tropicana, Tropicana Twister.

Brand available in 200ml.

1. Pepsi

2. Mirinda Orange

3. Mountain Dew

4. 7up

5. Tropicana Premium Gold

Brand available in 250ml.

1. Slice

MANAGEMENT THESIS FINAL REPORT

 2. Tropicana Twister

3. Pepsi My Can

4. 7 Up Can

Brand 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)

MANAGEMENT THESIS FINAL REPORT

 1. Pepsi

2. Mirinda Orange

3. Mountain Dew

4. 7up

5. Soda

Brand Available in (1Ltr)

1. Tropicana Premium Gold

2. Aquafina Water

3. Lehar Soda

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

MANAGEMENT THESIS FINAL REPORT

200 ml 24 168
200 ml Tropicana Premium 30 397
Tetra
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
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

CHANNEL OF DISTRIBUTION IN VARUN BEVERAGE

LIMITED

Channel of distribution means flow of goods from manufacturer to

ultimate consumer in practice there are various kind of channel of
distribution.

MANAGEMENT THESIS FINAL REPORT

 Varun Beverage Limited use two level channel of distribution i.e a
distribution and retailer between V.B.L and consumer.

Diagrammatical we can represent as:-

V.B.L

Distribution

Retailer

Consumer

AVERAGE TRANSPORTATION TIME PER

CASE OF TEMPO IN BIKANER

Total no. of case include in transportation = 70 case

MANAGEMENT THESIS FINAL REPORT

Total travelling time taken by tempo = 360 minute

Average travelling time per case =

Total no. of case involve in transportation

Total travelling time taken by tempo

360
70

= 5.15 minute/ case

AVERAGE TRANSPORTATION TIME PER

CASE BETWEEN RETAILER AND SALESMAN

Total no. of case include in transportation = 70 case

Total transportation time = 540 minute

MANAGEMENT THESIS FINAL REPORT

Average transportation time per case =

Total transportation time

Total no. of case involve in transportation

540
70

= 7.71 minute/ case

AREA OF DISTIRBUTION:

 Agra

 Mathura

 Gwalior

 Etawah

 Dholpur

MANAGEMENT THESIS FINAL REPORT

  Aligrah

 Firozabad

 Jhansi

 Delhi

 Lalitpur

 Raipur

 Vishakhapattnam

 Alwar

 Bhiwadi

 Jaipur

 Jodhpur

 Goa

 Uttar Pradesh(Kosi)

PEPSI AGENCIE’S IN BIKANER MARKET

AGENCY`s NAME OWNER NAME ADDRESS

S. R. TRADERS Mr.Manmohan Modern Market
YASHWRDAN Mr.Mukesh Joshi Modern Market

MANAGEMENT THESIS FINAL REPORT

ENTERPRISE
RAJESH ENTERPRISE Mr. Rajesh Khatri J.N.V Colony

Chapter- 2

MANAGEMENT THESIS FINAL REPORT

 OBJECTIVE OF THE STUDY

The main objective of the present study was to know the merchandising
strategies of pepsi for its cold drinks. 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 customers towards the

products of company.

• To investigate the problems of retailers and customers with regard

to products of company.

• To analyze the facilities/services which are being provided to the

employees, customers and retailers by company.

• To analyze the schemes which are being provided to the customers

& retailers by company?

• To familiarize the concerning companies, the employees, the

retailers, the salesman and the customers with the features of the
results obtained in the present research and to encourage them to
modify their activities/behaviors according to the obtained results.

Chapter- 3

MANAGEMENT THESIS FINAL REPORT

 RESEARCH METHODOLOGY:

1. TYPE OF RESEARCH: Research is descriptive in nature.

2. POPULATION AND SELECTION OF SAMPLE

All the retailers who were dealing in the products of company in the main
areas of Bikaner city constituted the population for the present study. It
was not possible to include the whole population in the study. Therefore,
it was felt necessary to select a sample of the population which could
represent the whole population. A sample of 120 retailers related to Pepsi
Co. out of 850 retailers, was randomly selected from the ten routes of
main areas of Bikaner city.

3. DATA TYPE: Primary type

4. TOOLS FOR DATA COLLECTION: Questionnaire

MERCHANDISING STRATEGIES ADOPTED BY PEPSI

 Creating awareness about the product.

MANAGEMENT THESIS FINAL REPORT

  Differentness in profit of Pepsi Products and Coca Cola
 Discount in products
 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 (Stock Keeping Unit) of Pepsi Products.
 Check the Impurity (Exp. - Real Juice, Amul Products, Treat and
Parle Product.
Chapter- 4

MANAGEMENT THESIS FINAL REPORT

 ANALYSIS AND INTERPRETATION

. Market Share of Pepsi in Soft drink Segment in Bikaner .

60

50

40
PEPSI
30
COLA
20 OTHER
10

0
MARKETSHARE

• Pepsi = 32%
• Coca-Cola = 58%
• Other = 10%

Graph Showing Percentage of Retailer who sold exclusive Pepsi,

Coke (Thums-Up) or Both Company Brand

25%
55% Pepsi
20% Cock
BothCompany

• Pepsi: - 25%
• Coke: - 20%
• Both Companies products: - 55%

. Graph Showing Percentage of Fridge Provided by Pepsi Company.

MANAGEMENT THESIS FINAL REPORT

 10%
30%
60% Pepsi
Cock
Own

• Pepsi Fridge: - 30%

• Cock Fridge: - 60%
• Own Fridge: - 10%

Graphical Showing Percentage of Gravity Rack Provided by Pepsi

company.

Pepsi Gravity
25%
30% Rack
45% CokeGravityRack

Do not have
GravityRack

Pepsi Gravity Rack: - 30%

Coke Gravity Rack: - 45%
Do not have Gravity Rack: - 25%
DATA INTERPRETATION

MANAGEMENT THESIS FINAL REPORT

Q. 1:- Do you purchase the soft drinks for your shop?
100
Yes, 85
80
60

40

20
0 No, 0
Response

Yes No

Q. 2:- Which soft drink you would like to purchase more in quantity?

cocacola,
60%
58%
50%
40%
pepsi, 32%
30%
20%
10% other, 10%

0%

pepsi cocacola other

Q. 3:- Are you satisfied by service given by salesman?

100.00% Many atimes,
80.00% 82.35%

60.00%

40.00%

20.00% Somes,
Always, 2.35% 11.76%Rarely, 3.53%
Never, 0.00%
0.00%
Response

Alw ays Many atim es Som es Rarely Never

Q. 4:- What type of interaction you having with salesman or company’s man?

MANAGEMENT THESIS FINAL REPORT

 60.00%Formal,
52.94%
50.00%
40.00%
Friendly,
30.00% 27.06%
20.00% Interactio
Rudely,
n, 11.76%
10.00% 8.24%
0.00%
Responese

Formal Friendly Rudely Interaction

Q. 5:- Are you satisfied with the schemes given along with products?

60.00% M any a
times, 56.47%
50.00%
40.00%
30.00% Somes,
20.00% 23.53%
Rarely,
Always, 8.24%
10.00% 11.76%
0.00% Never, 0.00%
Response

Always Many a times Somes Rarely Never

Q. 6:- Do you want to improve in the service of the company?

70.00%Yes, 65.88%
60.00%
50.00%
40.00% No, 34.12%
30.00%
20.00%
10.00%
0.00%
Response

Yes No

Q. 7:- Is the salesman coming regular at your counter?

MANAGEMENT THESIS FINAL REPORT

 Frequent
50.00%
visit,
49.41%
40.00%

30.00%Regular,
Irregular,
23.53%
20.00% 21.18%

10.00% Rarely,
5.88% Never,
0.00% 0.00%
Response

Regular Frequent visit Irregular Rarely Never

Q. 8:- Are you satisfied with company’s products and their quality?
50.00% M any a
times,
40.00% 44.71%
Always,
30.00%32.94%

20.00%

10.00% Rarely,
4.70% Never,
0.00% 0.00%
Response

Always M any a times Somes Rarely Never

Q. 9:- Does salesman easily change your damaged or outdated stock?

50.00%
Somes,
Many a
40.00% 43.53%
times,
37.65%
30.00%

20.00%
Rarely,
Always,
10.00% 10.58%
8.24% Never,
0.00% 0.00%
Response

Always M any a times Somes Rarely Never

Q.10:-Is the company’s man (C.E. and ADC) come at your counter regular?

MANAGEMENT THESIS FINAL REPORT

 Somes,
50.00%
49.41%
40.00%
Many a
30.00% times,
29.41%
20.00%
Rarely,
10.00%Always, 12.94%
Never,
5.88%
0.00% 2.35%
Response

Always Many a times Somes Rarely Never

Q. 11:-Does company man listen and solve your service related problem?

60.00% Somes,
50.00% 55.29%

40.00%
Many a
30.00%
times,
20.00% 25.88%
Rarely,
10.00% 11.76% Never,
Always,
0.00%2.35% 4.71%
Response

Always Many a times Somes Rarely Never

Q. 12:-Does Company provides you enough accessories (helping tool)?

50.00% Somes,
Many a 44.71%
40.00%
times,
30.00% 34.12%
20.00% Rarely,
16.47%
10.00%
Always,
Never,
0.00%3.53% 1.18%
Response

Always Many a times Somes Rarely Never

Q. 13:-Does the salesman take care of company’s accessories?

MANAGEMENT THESIS FINAL REPORT

 Many a
50.00%
times,
40.00% 47.06%
Somes,
30.00% 34.12%

20.00%
Always, Rarely,
10.00% 10.59%
8.24% Never,
0.00% 0.00%
Response

Always M any a times Somes Rarely Never

Q. 14:-Does service of the company match with your expectations to the actual
service?
M any a
50.00%
times,
40.00% 49.41%
Somes,
30.00% 34.12%

20.00%
Always,
10.00%11.76% Rarely,
4.71% Never,
0.00% 0.00%
Response

Always Many a times Somes Rarely Never

Q. 15:-Please indicate how strongly you agree or disagree with the following
statement about company’s service?
1. Meeting with salesman is creating healthy environment.
80.00%
Agree,
60.00% 61.18%
Somewhat
40.00%
agree,
Strongly
20.00% 30.59%
agree, Disagree,Strongly
0.00%
5.88% 2.35% disagree,
Response 0.00%

Strongly agree Agree

Somewhat agree Disagree
Strongly disagree

2. Availability of all type of products at a time.

MANAGEMENT THESIS FINAL REPORT

 70.00% Agree,
60.00% 67.06%
50.00%
40.00%
30.00% Somewhat
Strongly agree,
20.00%
agree, 21.18%
10.00%
14.12% Disagree, Strongly
0.00% 3.53% disagree,
Response 0.00%

Strongly agree Agree Somewhat agree

Disagree Strongly disagree

3. Availability of products in sufficient quantity.

Somewhat
60.00% agree,
50.00% 58.82%
40.00%
Disagree,
30.00% 30.59%
20.00%
Agree,
Strongly
10.00% 10.59% Strongly
0.00%agree, disagree,
1.18%
Response 0.00%

Strongly agree Agree Somewhat agree

Disagree Strongly disagree

4. Enrolled you in company’s various plans.

Somewhat
60.00% agree,
56.47%
40.00% Agree,
29.41% Disagree,
20.00%
Strongly 14.12% Strongly
0.00%
agree, 0.00% disagree, 0
Response

Strongly agree Agree

Somewhat agree Disagree
Strongly disagree

5. Solve your problem in very short time.

MANAGEMENT THESIS FINAL REPORT

 50.00% Disagree,
40.00% Somewhat 44.71%
agree,
30.00% 34.12%
20.00% Agree,
15.29% Strongly
10.00%
Strongly disagree,
0.00%agree, 5.88%
Response
0.00%

Strongly agree Agree Somewhat agree

Disagree Strongly disagree

6. Change company’s faulty accessories immediately.

50.00% Somewhat
agree,
40.00% 43.53% Disagree,
30.00% 30.59%
20.00% Agree,
17.65% Strongly
10.00% disagree,
Strongly
0.00%
agree, 2.35% 8.24%
Response

Strongly agree Agree Somewhat agree

Disagree Strongly disagree

Q. 16:-Do you want any improvements company in

35.00% Time
Manageme Scheme,
30.00%
nt, 31.76% 29.41%
25.00% Interaction,
20.00% Service, 21.18%
17.65%
15.00%
10.00%
5.00%
0.00%
Response

Time Management Service Scheme Interaction

MANAGEMENT THESIS FINAL REPORT

 Chapter- 5

LIMITATIONS

Though the study is framed in a manner that it provides answer to the basic
questions which are needed to study but sometimes it becomes a bit tougher to
get the right answer from the respondents. Constraints which are there to limit
the study are:-

 Time of the respondents.

 Lack of time to prepare the report.

 Proper coordination from the side of respondents.

 Understanding of the topic to the respondents.

 Lack of presentation skills of respondents.

 Biased answer given by respondents.

MANAGEMENT THESIS FINAL REPORT

 Chapter- 6
FINDINGS & CONCLUSION

Today is the area of competitions. The business is tremendously dominated by

the competitions. The sales force should be very effective to promote the sales
of the production for “Retailer’s” convenience; the concern has made the
arrangement to supply of the products to them at their shops. The trucks go to
market to make supply. Different schemes are introduced in the market to
promote the sale of cold drinks.

(i) Market share of Pepsi is just 32%, where coke stands with 58%.

(ii) Exclusive Pepsi outlets are 25% only.

(iii) Pepsi provides 30% Pepsi gravity racks

(iv) 65.88% retailers want improved services from the company

(v) Only 32.94% retailers are satisfied with company's services

(vi) Per counter regular visit percentage by a salesman is just 23.53

(vii) Easy replacement of damaged or outdated stock by company is

accepted by 8.24% retailers.

(viii) Only 29.41% retailers agree that they are enrolled by the
company in their various plans.

MANAGEMENT THESIS FINAL REPORT

Conclusions withdrawn on the basis of Present Research Work

(ix) The Coke has more Market-Share rather than Pepsi.

(x) The Coke has been found to have more customers than the Pepsi.

(xi) Pepsi Company is not providing more and more attractive

schemes to its products in comparison to the Coca-Cola Co.

(xii) Relationship between Market-share & Packaging and Labeling,

provision of facilities, Quality Satisfaction, Liking of Flavors, and
Distribution Strategy & Customers’ Demand was found stronger
in case of Coca-Cola Co. in comparison to Pepsi Co.

MANAGEMENT THESIS FINAL REPORT

 Chapter- 7
ANNEXURE

QUESTIONNAIRE
Service Quality Performance of Pepsi Company
In light of their merchandising strategy
(Questionnaire for retailers & customers)

Supervisor: Investigator:
Ms. Chanchal Sharma Umesh Tanwar
Faculty of ICFAI National College, MBA student
Bikaner (Raj.) ICFAI NATIONAL COLLEGE

Respected Sir,
The questionnaire is being supplied to you for measuring the ‘the service quality
performance in beverage industries with special reference of PepsiCo’. 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.
________________________________________________________________________

Question No. Questions

________________________________________________________________________

Q. 1:- Do you purchase the soft drinks for your shop?

MANAGEMENT THESIS FINAL REPORT

 Yes Not

Q. 2:- Which soft drink you would like to purchase more in quantity?

PepsiCo Coca-Cola

Q. 3:- Are you satisfied by service given by salesman?

Always Many a times
Somes Rarely
Never
Q. 4:- What type of interaction you having with salesman or company’s man?
Formal Friendly
Rudely Interaction

Q. 5:- Are you satisfied with the schemes given along with products?
Always Many a times
Somes Rarely
Never

Q. 6:- Do you want to improve in the service of the company?

Yes Not
Q. 7:- Is the salesman coming regular at your counter?
Regular Frequent visit
Irregular Rarely
Never
Q. 8:- Are you satisfied with company’s products and their quality?
Always Many a times
Somes Rarely
Never
Q. 9:- Does salesman easily change your damaged or outdated stock?
Always Many a times
Somes Rarely
Never

Q.10:-Is the company’s man (C.E. and ADC) come at your counter regular?
Always Many a times
Somes Rarely
Never

Q. 11:-Does company man listen and solve your service related problem?
Always Many a times

MANAGEMENT THESIS FINAL REPORT

 Somes Rarely
Never

Q. 12:-Does Company provides you enough accessories (helping tool)?

Always Many a times
Somes Rarely
Never

Q. 13:-Does the salesman take care of company’s accessories?

Always Many a times
Somes Rarely
Never

Q. 14:-Does service of the company match with your expectations to the actual
service?
Always Many a times
Somes Rarely
Never

Q. 15:-Please indicate how strongly you agree or disagree with the following
statement about company’s service?

1. Meeting with salesman is creating healthy environment.

Strongly agree Agree
Somewhat agree Disagree
Strongly disagree

2. Availability of all type of products at a time.

Strongly agree Agree
Somewhat agree Disagree
Strongly disagree

3. Availability of products in sufficient quantity.

Strongly agree Agree
Somewhat agree Disagree
Strongly disagree

4. Enrolled you in company’s various plans.

Strongly agree Agree
Somewhat agree Disagree
Strongly disagree

MANAGEMENT THESIS FINAL REPORT

 5. Solve your problem in very short time.
Strongly agree Agree
Somewhat agree Disagree
Strongly disagree

6. Change company’s faulty accessories immediately.

Strongly agree Agree
Somewhat agree Disagree
Strongly disagree
Q. 16:-Do you want any improvements company in

Time Management Service

Scheme Interaction

MANAGEMENT THESIS FINAL REPORT