A INTERNSHIP REPORT

ON
CHANNEL DISTRIBUTION OF PEPSICO PRODUCT

FOR PARTIAL FULFILLMENT FOR THE DEGREE OF BACHELOR OF BUSINESS

ADMINISTRATION
(Affiliated to Lucknow University)

Submitted To-

Submitted By-

Mr.Pashupati Nath Verma

Raj Kumar

H.O.D, Management Department,

Roll No. 121081010038

BBA FIFTH SEMESTER

GCRG MEMORIAL TRUST GROUP OF INSTITUTIONS, LUCKNOW.

ACKNOWLEDGEMENT

I, Rajkumar, student of Bachelor of business administration from LU express my gratitude and

thanks to our College for providing me his valuable guidance in undertaking this project.
I would also like to extend my sincere regards to my faculty guide under whom I have done my
summer training project and who has been the source of my inspiration and helped throughout
the working of this project.

Raj Kumar
Roll No. 12181010038

Declaration

I hereby that I have worked on the topic CHANNEL DISTRIBUTION OF PEPSICO

PRODUCT in Lucknow from
All the information that has been collected, analyzed and documented for the project is
authentic possession to me.
I would like to categorically mention that the work here has not been acquired by any other
unfair means. The data and information existing in this report are accurate and update to the
current data, to the best of our knowledge.
However, for the purpose of the project, information already compiled from many sources has
been utilized.
All information in this report is true representation of what I have experienced during the
project.

Date
Place

Raj Kumar
Roll No. 121081010038

TABLE OF CONTENTS
3

Title

page no.

Declaration..i
Acknowledgement..ii
Executive summaryiii
Prefaceiv

Introduction to the Study5 - 11

Objective of the Study

Importance and relevance of the Study

Scope of the Study

Introduction of the Soft Drinks in India..9-22

History of Soft Drinks in India

History of Pepsi
Production Process
Product Manufactured and Main Consumer

Organizational Structure.23-27

History and Organizational Structure of Lumbini Beverages

Pvt. Ltd. Lucknow

A Theoretical frame work of Channel of distribution28-32
Channel of distribution of Lumbini Beverages Pvt. Ltd.

..34-62

SWOT Analysis63-65
Research Methodology used in the study.66-68
Data analysis and interpretation..69-82
Findings.83-85
Suggestions & Recommendation86-89
Limitations..90
Conclusion 93-95
Bibliography96
Annexure..98-101

INTRODUCTION

INTRODUCTION
5

TO THE STUDY

So there can be a satisfaction from the organization side and When Mr. Rajeev Gandhi
came into the power as Prime Minister of India, then it was expected the liberalization of
Indian economy. This was the expectation of his modern concept regarding every walk of life.
When Pepsi has appealed on our collective consciousness of few years ago to be more exact in
April 1989. When it set up operation for beverages snack foods and export business. The
establishment of Multinational Company Pepsi was supposing to prediction in present Indian
business scenario.
Despite love for ones own motherhood and traditional concept of Indian people it was
assumed that it is very hard to make and create taste and preference about soft drinks but despite
of having so many confusion, no one was able to assume such a wide acceptance and it was
PepsiCo. Who could be able to penetrate in Indian soil and it was the Pepsi that has got not
only a place in Indian hospitality, but also taken place of traditional sharbat of lemon and sugar.
And needless to say Generation next has become the slogan of the day.
The first managing director was Mr. Ramesh Vanagal but present is Mr. P.M. Sinha in
India. During these years beverages begin an exclusively franchise operating beverages now has
five company owned bottling operation (COBO) the business expects to grow three times faster
than the industry growth rate 1995 and its vision is to become INDIAS BEST CONSUMER
PRODUCT COMPANY in all

aspect. The s n a c k s business has seen some major success

and going for leadership too. Pepsi is a leader in the snacks food business. The division plans to
introduction wide range of snakes in to Indian market in the next three years. The restaurant
business has also come Kentucky Fried Chicken (KFC) has opened its first outlet at Bangalore
Pizza but it also expected to open restaurants shortly city wise. Whole of the operations of Pepsi
in India has made a rapid change in Indian life style, which is resulting in fast food life.

Pepsi is a world leader in restaurant & soft drink whether it is in London or in

Ludhiyana, America or Ahamedabad, Berlin or Bombay, Paris or Patna, Manchester
orMadras.
Pepsi company has pumped in Rs. 300 crores ($ 95 million) as fresh capital and has recently
received permission from the foreign investment board in Rs. 300 crores ($95 million) more. The
investment phase will continue and could add unto Rs. 700 crores over the next three years. The
figure is not cast in stone if volume exceeds according to expectation. They will increase capital
expenditure.
Apart from these things there is an expression which can not verify easily that is Pepsi
has made qualitative gains. The foremost is its image from being perennially seen as a losing
company its now got the image of being a winner. This major turnaround is not small
achievement considering that since it was established in 1989 taking the hard ship route prior to
liberalization and weighed down by export commitments? Pepsi has won more battles than it has
lost.

In April 1993 Voltas and Punjab Argos stakes were bought over
converting Pepsi foods from a three way joint venture to be a fully owned subsidiary week
bottlers who did not have the financial capacities were given massive support in the form in

interest free loans to upgrade their operating capacity . But the strategy which has proved to be
winner was the position, Pepsi decided to take in Company Owned Bottling Operation (COBO).
For this another subsidiary PepsiCo. India holding was set up as an investment vehicle,
capitalized 95 million dollar. Within a year 1994 Pepsi has bought over 5 bottlers including
dukes in Mumbai, which was running in Maharashtra which has been bought over from Voltas
high speed imported lines with a speed of 600 bottles per minute.

OBJECTIVE OF THE STUDY

Management is a course which teaches the student to get the work done properly from
different available sources viz. man, machine, material, money etc. the workers side who play a
significant role in achieving success. So far the fulfillment or the management course, it gives
emphasis to project work and students learn how to plan in practical terms rather in terms of
theory only. Student tends to develop analytical and problem solving skill. We necessary
become motivated and competitive, in fact all the learning that goes on for the two year term
become so much the part of our thinking that we developed a well all rounded personality.

The following are the objectives and purpose of the study-

To know about awareness of the PepsiCo products of Lumbini Beverages Pvt Ltd.

To know about the factors affect the sale of the Pepsi product of Lumbini Beverages
Ltd.

To know about the PepsiCo brand product available in the outlet.

IMPORTANCE AND RELEVANCE OF THE

STUDY
Cold drinks were started with the idea of quenching the thirst of the persons traveling.
It was also felt that reliable good water was not available everywhere. So people would really
on their packed bottle and with this idea its makers made these drinks available mostly, at those
places where water was not available i.e. on highways and long distance trains.
But slowly and slowly with its beautiful taste these become very popular and now they are
available not only in the market and street corners, but also people have started keeping it in their
house.
The credit of popularizing the soft drink goes to Coca Cola. This was the drink which is
liked by all ladies, gents and children. Now days soft drinks are quenching thirst looks more
often; they are taken due to habits.
Gold Sport is considered as the first branded soft drinks, established 53 years ago before
all empowering Coca Cola faced competitions and its euphoric image built up in the western
countries helped it get ready clientele and clamor. Parle Export Pvt. Ltd. is regarded as the first
Indian Company introducing Limca a leman drink complementary to it this has also introduced
Cola Pepone which was withdrawn in the face of tough competition from Coca Cola.
When Coca Cola bid a Farwell in 1977, Indian market was open for various new forward
publishing different brands in the markets. Parle people introduced their Cola, Thumps Up with a
mighty saying Happy days are here again as if happy days went away with Coca Cola. Pure
drinks of Delhi also w it hout lasing much introduced pure drinks were producing and marketing
Coca Cola earlier Campa Cola with Campa orange and Campa lemon. Modern Bakeries
entered the market with Double

Cola Seven, Mohan Makings with Merry & Plkup and

McDowell with Thrill, Rush and Sprint. This is Indian market where there was no competition
and high voltage advertising was on each one was trying their best to become number one
company with A class product in the field of Soft Drink business. Now after a long gap
government of India had given permission to Coca Cola, which joined with Parle to do business
10

in India. They are trying their best to regain prestige which it had before. The much rival of Parle
is Pepsi an American concern. It started business on the Indian soil just a few years ago.
Today, it has occupied 62% shares of Soft Drinks market in India. Now Pepsi is going all
out to prove that they are the b e s t . But now due to some

factors

competition

among them has become stiffen. So in this way the important activities have increased.

11

SCOPE OF THE STUDY

The main scope of this study is to ascertain the effectiveness of channel of
distribution and various methods to increase the sales volume of the concern. The methods
include regular information to the buyers creating a brand position in the market and taking
Measures to make the brand remain in i t s position. One of t h e important aspects of this
study is also to increase the market segment for the product.

12

INTRODUCTION TO THE SOFT DRINK IN

INDIA

History of the Soft Drink In India

History of Pepsi

Production Process

Product Manufacturing and Main Consumers

13

Profile of Pepsi International

Pepsi is situated at Somers 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 Dyespsia
(indignation), in 1903, business strategy worked & in 1905 he built in 1909 he had a New York
auditing agency. PepsiCo Food & Beverages International, a full fledge co. earn s more then half of
its global revenues from snack foods & fast foods. PepsiCos 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

14

Agro Industrial Corporation (PAIC) and Voltas India Limited. PepsiCo is a world leader in convenient
foods and beverages,

Beverage industry is one of the fast growing industries in India. It can be divided into two sections
i.e. carbonated and non-carbonated. The carbonated drinks can be further classified into Cola,
Lemon, Orange, Mango & Apple segments etc.
Marketing includes all the activities like promotion, distribution, advertising etc., to fulfill the
demands of all segments of consumers. Marketing is also to convert social needs into profitable
opportunities. So this topic provides all the essentials to theoretical knowledge with practical
knowledge and to inculcate the efficiency. It is also a requirement for the company to improve its
service and product quality to achieve the ultimate goal.

15

HISTORY OF THE SOFT DRINK IN INDIA

Christopher Columbus as a traveler of world found a lot of new things which was not in
the eye of the world community which is now in our history but now if any one does travel to
whole part of world to get one thing in some form that is Pepsi. Travel to any corner of the
globe you are sure to spot a label splashed in blazing blue, red and white becoming you to
some Sugared water. This dark coloured drink WillyMilly has today become nothing but spot
of an international anthem with young and old, rich and poor wants for a sip and saying Yeh Dil
Mange More.
Gold Spot is considered as the first branded soft drink established 53 years ago before
all empowering Coca Cola entered the country to dominate the scene. It faced no competition
and its euphoric imaged built up in the western countries helped it to get ready clientele and
glamour. Parle Export Pvt. Ltd. Is regarded as the first Indian company introducing Limca, a
lemon drink complimentary to there well established Gold Spot in 1970 which got moderate
success. However, before this, he had also introduced Cola Pepino which was withdrawn in face
of tough competition from Coca Cola.
When Coca Cola bid farewell in 1977, Indian market was open for various cold drinks
several companies came forward publishing the different brands in the market. Parle people
introduced their Cola Thumps Up with a mighty bang saying Happy days are here again as if
happy days went away with Coca Cola.. Pure drinks of Delhi also without losing much time
introduced pure drinks were producing and marketing Coca Cola earlier Campa Cola along with
Campa orange and Campa lemon. Modern Bakeries entered in the market with the Double Seven.
Moharn meakings with Merry Pickup and McDowell with Thrill, Rush and Sprint in Indian
market where there was no competition previously. A cut throat competition and heavy
16

advertising was on. Each one was trying their best to become the number one company with
A class product in the field of soft drink business in India.
Now after a long gape the govt. of India has given permission to the Coca Cola to start
their business in India.

17

HISTORY OF PEPSI

PepsiCo is a USA based company having its head quarters at New York with the net
worth of $30-40 million. The average sales of the company are approx 90 million bottles per
month. Pepsi made it first international move in Russia in 1959. During the Khrushchev era,
within 32 years Pepsi emerged as the biggest competitor for Coca Cola. Pepsi is available in 155
countries.
In any soft drink, on the globe Pepsi food is one of the largest soft drink
companies in the world with its headquarters in New York. It was invented by Pharmacist Club D.
Baradham in 1898 to cure the disease Dyspepsia. It is from this word that its name was related
to Pepsi. Soon it entered the American market as soft drink, which at that time mostly
dominated by Coca Cola, but soon Pepsi able to dominate the Cola market, and there after it
never looked back. Pepsi and Coca Cola are engaged in ferocious cola war that has taken the
whole world by storm.
Pepsi entered the Indian soft drink in Kanpur in 1988 and began its production in May
1990 and soon it was giving the local contenders run for their money in soft drink market. It
comes out with dazzling marketing innovation that rocked the cola market, like selling t h e
product through function

Pepsi o u t l e t s . Its a d v e r t i s e m e n t a g e n c y w a s Hindustan

Thomson Association (HTA). Its advertisement budget for 1995-1996 was valued at Rs. 24
crores which is likely to be increased manifold in coming years.
Pepsi food is one of the largest and best foreign investments in India. Till today it has
invested Rs. 500 crores in India to develop the local market. Pepsi has distributed exclusive
franchises in India to bottle its total product. There are 28 bottling plant of Pepsi in India.
Some are directly controlled by Pepsi and rest is under various franchisees.
18

In April 1997 the Pepsi cola international decided that Steel City Beverage will cover
south Bihar (now Muzaffarpur) only. In this accordance Pepsi cola international decided to open
another bottling plant at Hajipur named Beverages Pvt. Ltd. Hajipur which will distribute
Pepsi product in whole Bihar.

19

PRODUCTION PROCESS
The process of manufacture of Aerated water (soft drink) like Pepsi brand product is divided
into mainly five parts such as
1. Water Treatment

2. Syrup Making

3. Bottle Washing

4. Filling

5. Testing of Product

(1) Water Treatment: - Water treatment is very essential in soft drinks plants as the nature
and quality of water varies from place to place. To set uniform and standard water the
process of treatment is carried on. The water taken out from bore well by the help of
motor pump and pipe line are collected in storage tank where is pre chlorinated by
chlorinators and by the help of pipe lines comes to treatment tank called coagulation
tank where to this water solutions of different strength of bleaching powder, ferrous
sulphate, hydrated lime are added through dosing pump to reduce alkalinity, hardness,
kill the bacteria .The chemical are mixed by mechanical stripper and then the suspend
20

mattress settle down as sludge and clear water passes to retention tank. From this tank,
the water passes through sand filter containing fine sand and pebbles and carbon filter
containing granular carbon and finely through water polisher, micron filter, and UV lamp
to ensure clear and sanitary water for use. Further water used in bottle washer and boiler
need softening .for this purpose ,the water from storage tank ,after passing through two
filter beds contain fine sand and granular carbon respectively comes to pass through bad
resin were it is softened .this soft water is essential to use in and bottle washer to reduce
scale formation inside the machines.

(2) Syrup Making:- For syrup making of particular brand, calculate quantity of sugar water
activated carbon and high flow super cell known as filter aid taken in to sugar to enter
steam

and also filled by a motor with agitator. Sugar syrup called raw-syrup is

prepared by dissolving the sugar with continuous stirring and heating by steam supplied
by fired boiler. This hot syrup by the help of pump is filtered through a filter press
attached with a series of quality filter paper to separate out carbon particles. Clear hot
syrup by the help of SS pipe lines passes through water P.H.E. for cooling and the then
another P.H.E. circulated by glycol for further cooling. The chilled syrup comes to a
mixing tank to use calculating of sugar quantity by Brix Hydrometer, concentrate added
and mix thoroughly by a mechanical Stirrer fitted to the tank. This syrup is now finished
syrup ready for use. The concentrate mainly, the liquid part are kept in a cold
store, the temperature of finished syrup is also maintained by air-conditioner. All the
containers used for syrup making are cleaned and sanitized by Soda-Bi-Crab, strong
chlorine solution and hot caustic soda solution.

21

(3) Bottle Washing: Bottle washing is an important part in soft drink plant. The empty
durable and returnable bottle used are returned from market in plastic carats are fed to a
bottle washing machine (washer). The machine has double end system w i th circular
c h a i n to carry the bottles. Caustic s o d a Tri -Sodium Phosphate, Sodium Glausonate
is adding to the caustic by the supplied. The Caustic tank filled in with water heated
by steam supplied by the boiler. The empty bottles enter to the hot Caustic tank in one
end and after being cleaned by hot Caustic solution and finally washed with water
through spray jets fitted are discharged in other end. The washed bottle proper
inspections are SU 319 and SU 853 used for conveyor cleaned and smooth running of
chain carrying bottles.
SU 260 and SU 773 is used for bottle cleaning, shining, and mold removing.

(4) Filling: - Finished syrup and treated water lime are commixed to a dosing pump which
mixes syrup and water with ratio of 1:5 and the syrup mixed with water enters to
carbonator tank to mix CO2 gas, which is preserved in cylinder for use. The cylinders
are connected through CO2

manifold to tank to use requisite quantity of gas. To

control CO2 pressure and temperature of liquid; we used recording control (Taylor).
The syrup passed through a P.H.E. Which is called itself by circulation of chilled
glycol supplied chilling F-22 gas used. The syrup being chilled easily mixed with CO2
gas and enters to filter for bottling. The filter is connected with filling valves and lift
cylinders. The lift cylinder functions by pressure of air supplied by an air composer. The
syrup is known as beverage in this stage is filled in the cleaned bottles which are durable
in nature and returnable by buyer filling machine (filter) by a counter pressure of carbon
22

dioxide gas. After beverage filled in bottle it goes to the crowner where with the help of
crown crocks the bottles are sealed (crowned) to project the carbonation, flavor, outside
contamination and spoilage. The finished products are coded by a coding machine and
inspected properly by inspection light while passing through the conveyor where finished
product are accumulated enters to carat washer machine and it is washed moves through
the conveyor where finished product are accumulated.

(5) Testing of product:- Finally the finished syrup during bottle is tested in
laboratory to meet the parameters and also to get a standard and quality products to
maintain the standard and information and uniformity in products the sugar contents
and carbonation in the bottle are checked in regular intervals by Brix- hydrometers,
Refrectometer and pressure gauge. The dead weight tested is used to calculate pressure
gauge to know the correct pressure. TA & Ph are tested by digital Ph meter. Electronic
digital balanced is used to weight chemical to conduct test in lab. The purity of CO2
is checked by CO2

purity tester.

The chlorine comparators. The microbiology test of the product and water used in syrup
making and production are also done to ensure that the product is free from any
bacteriological co nt a min a t io n .

To conduct the micro tes t hot sterilizer

incubator, autoclave, pads filter membranes, media are produced and used.
The Diesel generator is operated in case of electricity failure for smooth
operation of the plant. To drawn electricity for the State Electricity Board the
transformer is used.

23

The steps involved in the Production Process are:First the fork lift supplies the empty bottles which are collected from the distributions.
Then depalletising is done i.e. separating cases filled or empty bottles from the wooden
planks.
Uncasing is done by separating empty bottles from the cases/carats.
Empty bottles are then fed into the bottle washer where stream with some chemical is
used for washing.
Washed bottles are then sending to the filler where premix (Composed of syrup, treated
water bulk CO2) is filled in it.
The whole concentrated is chilled with glycol before filling and then crowning is
done.
The filled bottles are passed through inkjet coder for printing price and date.
Then again the filled bottles are sending for final light inspection and from there they
are collected on a table.
Lastly the filled bottles are arranged in the crates (casing) and then palletizing is
done for storing it in the warehouse.
PREPARATION OF SYRUP
Treated water + Sugar = Flavor

24

PRODUCT MANUFACTURED
The product manufactured by Lumbini Beverages Pvt. Ltd. are very limited ranges
as it is not independent to diversity its products. It is a unit of Pepsi food Pvt. Ltd.
which supplies concentrates for drinks. They are:-

Products
Pepsi

Quantity
300 ml, 200ml

Colour
Brunt sugar

Flavour
Cola

Miranda

300 ml, 200ml

Sun-set

Orange

Tetrazine

Lime

Tetrazine

Mango

Colorless

Lemon

Colorless

Lemon

Sunset

Mango

Tetrazine

Lemon

300 ml

Brunt sugar

Cola

Can

300 ml

Brunt sugar

Cola

Aquafina

1.5 lt.

Brunt sugar

Cola

Colorless

White

(Mineral Water)

2 lt.

Miranda

300 ml, 200ml

Mirinda
7 Up Mountain
Dew Slice
Lehar soda
Pet
Pet

300 ml, 200ml

300 ml, 200ml
300 ml, 200ml

330 ml
1 lt.

25

CONSUMERS
The main consumers of these products naturally are youth. Besides the direct
consumer it is also used for the some purpose of providing it to the mass by hoteliers,
restaurant owners and various other soft drink peddlers. These products are the choice of the
new generation. Thus it can be said that it is a product of mass consumption.

26

HISTORY AND ORGANIZATIONAL

STRUCTURE OF
LUMBINI BEVERAGES PVT. LTD.

History of Lumbini Beverages Pvt. Ltd.

Steel City Beverages Pvt Ltd. is situated at Adityapur K a n d r a

Road in Jamshedpur.

Rushabh Marketing Pvt. Ltd. Is the marketing division of Steel City beverages? Steel City
beverages Pvt. Ltd. is a mother unit and its whole marketing activities are done through
Rushabh Marketing Pvt. Ltd. Steel City beverages is one of the Pepsi foods Bottling plants in
the country and one of the three in Eastern India. The other two Calcutta and Guwahati. But
from 01-04-1997 Pepsi Foods Ltd. India determines to open another bottling plant which is
situated at Hajipur namely Lumbini Beverages Pvt. Ltd. It is only for North Bihar.
Steel City beverages Pvt. Ltd. Was established by Late Mr. Dharam Chand

Kamani in the month of June 1967. The machineries of its main plant were imported in

1968 and production started in March 1969.

Before the establishment of Steel City beverages Pvt. Ltd. Coca Cola was not much
popular among people of Bihar state as pure soft drink. Because at that time the bottles of Coca
27

Cola was supplied by the outsiders who were unable to make Coca Cola popular in Bihar. So
after considering the needs and desires of people Mr. Dharma Chand Kamani brought in Bihar.
With this effort Coca Cola become popular among the people of Bihar.
But in 1977 due to the sudden change I the policies of the Government the import license
for the concentrate of Coca Cola was stopped. So Steel City beverages Pvt. Ltd. had to walk
over to Indian Concentrate Companies. They were modem food industries supplied concentrate
of double seven and non- ice cream soda. In 1983 the company introduced a cola drink
THRILL of Mc-Dowell & Co. Ltd. in the place of Double seven and triangular and in the
very next year two soft drink RUSH an orange flavored and SPRINT as lemon flavored
of Mc-Dowell & Co. Ltd were introduced.

Before some months Ananda Marketing Pvt. Ltd. was the marketing division of Lumbini
Beverages Pvt. Ltd. But at this time, Lumbini Beverages Pvt. Ltd. is doing marketing with its
own name.
Thus it can be seen that Lumbini Beverages Pvt. Ltd. has made tremendous move towards
the introduction and development of soft drinks industries on the whole, and North Bihar in
particular. It has made production of perfect hygiene and standard Soft
Drink as main objective.

An ideal organizational structure facilities management and the operation of the

enterprise and it help the organization in achieving its goal.

28

In a simple term in various parts or component are interrelated or interconnected and this
way it is the established pattern or relationship among various function of the organization in
the established manner.
The managing director holds the top position. At present, the managing director of Lumbini
Beverages Pvt. Ltd. is Mr. Charan Khilani. But the overall policies regarding management
decisions and all executives function or performance look after by the day to day decision and
general administration as well as management. The MD has given the power of attorney and
authority to director Mr. Ravi Khilani. Mr. Ravi Khilani who is well advised by the MD.
The director Mr. Ravi Khilani looks after all functional departments that sales
production, account, personnel and purchase. Though the manager all the functional
departments has specially designated as head of personnel department.
Every

department

has

to

report

directly

to

the

managing

director

and

is

responsible to his only for working in spite of this all departments is under the control of the
director Mr. Ravi Khilani. Because he is the Chief Executive of the company cited
earlier. The overall organizational structure can be shown as:

OVER ALL ORGANIZATIONAL STRUCTURE OF

LUMBINI BEVERAGES PVT. LTD.
29

The marketing manager is in charge of all marketing activities i.e. sales promotion, publicity
and advertisement, marketing study and shipping. But the main function of the marketing is to
exercise the control over the channel of distribution.
The marketing manager is assisted by sales executives, city sales executives and rural
sales executives and sales executive of shipping department as follows:-

30

FRAME WORK OF CHANNEL OF

DISTRIBUTION

A THEORETICAL FRAME WORK OF CHANNEL OF

DISTRIBUTION

31

Marketing channels are sets of interdependent organization involved in the process

of making a product or service available for use or consumption.
The main objective of the marketing process is to distribute the products to the actual
users. This function involves a number of sub-functions to be performed by a producer or
manufacturer. These two functions are most important first, the creation of demand is made
through the process of advertising and sales promotion activities. On the other hand the
distribution through the channels of distribution. The decision relating to the channel of
distribution is a very important decision from the firm point of view because t h e s e l e c t e d
c h a n n e l s a f f e c t c o n s i d e r a b l e o t h e r m a r k e t i n g decision.

Such decisions are of long

term nature and exercise their impact on the cost structure of the firm also.
By channel distribution mean the intermediaries or the process through which the goods
products are transferred from the producer to the ultimate users.
Now a day any of the producers possibly do not sell their goods directly to the final
users. There are a lot of intermediaries between producers and consumer, bearing a variety o f
name

performing various k i n d s o f f u n c t i o n . Some i n t e r m e d i a r i e s l i k e wholesalers

and retailers buy and resale taking the bill. They are known as merchant middle men and other
are brokers, representative sales agent who seeks or search for customers and negotiate on the
behalf of the producer but do not take of goods. These are called as middlemen.
The manufacturer and its distributive outlets share common objective to sell the
manufactured products at a profit. No doubt its objective differs with the marketing
circumstance. Even though many variation of specific objective fits into some categories. These
are as follows:

To built distribution network loyalty

32

To stimulate distribution

To develop managerial efficiency in distribution organization

The channel of distribution is a structure which organized and presents a choice among
alternative channels of distribution of the different marketing situations faced by retailers, whole
sellers and producers with in the structure. It may be considered as a series of function which
must be performed in order to make producers efficiency.
To bearing maximum profits of all institutions concerned a channel of distribution should
be treated as a unit of total system of action. The activities of the manufacturer need to be
coordinated with these middlemen used in the distribution of given product.
The important of middlemen in channel of distributional can be over emphasized. It is that
who1. Collects concentrate the output of various producers,
2. Subdivides these into lot desired by the customers gathers various items together in the
assortment wanted and
3. Disperses the assortment to consumer industrial buyers.
The role of middlemen that of specialist in concentration equalization and dispersion besides
he side in the creation of the time from and procession utilities.

DECISION MAKING FOR CHANNEL DISTRIBUTION

The marketing executive must undertake to following steps in order to establish
33

the channel of distribution for a company.

1. He/She must understand the retail and wholesale market and type of middlemen available
in both.
2. He/She must understand the various conflicts which continually exist between and within
the channel.
3. He/She must select the general channel to be used keeping in mind the goals of the
company marketing programme and the job to be done by distribution system.
4. He She must take decision regarding be intensity of the distribution (i.e. The number of
middlemen) to be used each level and each market.
5. He/She must select the specific firms which will handle his product and then manage
the day to day working relationship with them.
6.

He/She must determine the methods and the procedure in firms (i.e. use of the
transportation and warehouse facilities and services in firms making programme) in the
physical distribution of the product.

34

Types of Marketing Channels

1. Direct marketing channel: A marketing channel that has no intermediaries level
2. Indirect marketing channel: Channels containing one or more intermediaries

Customer Marketing Channels

Channel 1.

Manufacturer..Consumer Channel 2.
ManufacturerRetailerConsumer Channel 3.
Manufacturer...Wholesaler.RetailerConsumer

Channel 4.

Manufacture.WholesalerJobberRetailer.Consumer

35

CHANNEL DYNAMICS
Distribution channel do not stand still. New wholesaling and retailing institution emerge
and new channel system evolves. There are four types of marketing channels.

1. Conventional Distribution Channel

A Channel consist one or more independent wholesaler and retailers. Each is a separate
business seeking to maximize its own profits even if this goal reduces profit for the
system as a whole. No. Of channel members has complete or substantial control over
the other members.

2. Vertical Marketing Channel

This i s most recent marketing channel. A distribution channel system as producers,

wholesaler and retailers act as unified systems. One channel member, the channel captain
owns the others or franchises them or has so much power that they all co-operate. The
channel captain can be the producer, the wholesaler or the retailer.
3. Horizontal

Marketing Channel

36

A distribution channel system in which two or more unrelated companies put together
resources or programmes to exploit an emerging marketing opportunity.

4. Multi Channel Marketing

In the past, many companies sold to single market through a single channel. Multi channel
marketing occurs when a single firm uses two or more marketing channels to reach
one or more customer segments.

37

CHANNEL OF DISTRIBUTION OF LUMBINI

BEVERAGES PVT.LTD.
To make its products available at the right places at the right time in the market, the sales
department of the company pays major attention on controlling the channels of
distribution.
Single type of markets channel is maintained by the company right from its pioneering
stage. The nature of the channel is as follows:-

At

first

the

soft

drinks

supplied to the distributors directly.

Retailers or owners of any outlet
cannot

take

the

delivery

from

company. They have to take the

products from their respective or nearest distributor.
There are about 50 distributors and innumerable number of retail outlets operating with the
company in its entire market areas which contains total Bihar. In all the important places of
entire territory this company has its distributors.
These distributors selected on the basis of assurance given by them regarding the
minimum sales which they have to maintain annually. The selection is also done on the basis of
the financial position and reputation of distributor in the market. As for example in appointing a

38

distributor first engaged in soft drink business second priority is given to those people who are
in cigarette selling business. Depending upon the market, each
Distributor in the initial stage has to deposit some security money.

The retailers are selected by the distributor fixed criteria for the selection or appointment or
retailers from the side of the distributor . Any o n e l i k e P i n w a l e , Cigarettewala or any other
shopkeeper can have the stall for the sale of soft drinks and they are called retailers or outlet
owners. They have to give assurance to the concerning distributor for better sale and at the time
of taking delivery they have to deposit the security i.e. the charges if the empty bottles with
specified retailers purchasing price. The charges if the empty bottles with specified retailers
purchasing price. The distributor at first has to seek the permission of sales department for the
number of cases of soft drinks required by them. After getting the proper authority from sales
department paying therequisite amount either cash or demand draft.

39

WAREHOUSING
Every company has to store its finished goods until they sold. A strong facility is
necessary because production and consumption cycles rarely match.
Warehousing is not a simply storing activity but a package of services that enables
the smooth running of the industry.
The stores must be in constant touch with the use department in order to provide
uninterrupted services to the manufacture and its decision since working capital is locked up in the
warehousing stores in equal to money.
The stores functions can be organized in the following manner:a) To receive raw material components equipments etc.
b) To meet the demand of use department by issuing the order
c)

Accounting the transaction properly.

d) Minimizing obsolescence surplus and scrap by right identification and using

correct preservation method.
The company supply finished products frequently to different distributors as per the
demand.
Every distributor keeps a minimum stock of different products of the product line so that
the uninterrupted supply could not affect.
In the industrial sector service of optimization where boils down to any exercise of
optimization where limited available resources are to be distributed equitably.
The problem arises from the material that are in stock the form of capital cost, storage
loss, pilferage obsolescence, insurance, handling, documentation etc. Services level that can be
maintained and hence the concept stores in money should be understood
by everybody in the organization.

40

INVENTORY DECISION
(1)

Branding and Packaging

Out of the total market activities some are directly performed and controlled by
Lumbini Beverages Pvt. Ltd. itself some are followed according to the standing
instruction of Pepsi Foods Pvt. Ltd.
So far as the process of branding and packaging is concerned the Lumbini
Beverages Pvt. Ltd. Along with the authorized bottle in India adopt the same pattern.

(2)

Wholesaling

Wholesaling includes all the activities involved in selling goods or services

to

those who buy for resale or business use. Manufactures use wholesalers

because wholesalers can perform function better and more cost effectively than the
manufacture can. These functions are not limited to selling and promoting, buying and
assortment building bulk barking, warehousing, transporting financial risk bearing
dissemination of marketing

information and provision of management services and

consulting.
Like retailers wholesaler must decide on target market, product assortment and
services promotion and place. The most successful wholesalers are those who adopt their
services to meet and target customers needs, recognizing that existing
to add value to the channel.
41

(3) Retailing

Retailing includes all the activities involved in selling goods or services directly
to find consumer for their personal non-business use. A retailer or retail store is any
enterprise which sales volume comes primarily from retailing.
All marketer retailers must prepare marketing plans that include decision on target market.
So the marketing channels can be viewed as a set of interdependent organization with
high potential for conflict. Then why would any business chosen to become part of
channel system.

42

MARKETING STRATEGY
Marketing Strategy is the complete and unbeatable plan designed specifically for attaining the
marketing objective of the firm. The market objective indicates what the firm indicates, what the firm
wants to achieves, the marketing strategy provides for achieving them.
The marketing strategy is not just idea. It is a well outlined plan, and there are different ways to
formulating it. Basically formulating of marketing strategy consists of two main steps.
Selecting a target market. Assembling the marketing mix. Actually, the target marketing and
marketing mix together constitute the marketing strategy of the firm.

When the Pepsi food company entered in the Indian soft drink market, the market was already
prevailed by coke and previously it was Parle. Pepsi tried to establish in India with a unique
marketing policy. Pepsi took into consideration of youth segment target market. Though the
advertisement of Pepsi highlighted the style of living of young generation with different walk of life.
Pepsi brought in its advertisement different stalwarts personalities from fields like young cine stars,
sport stars and famous personalities from different fields. It has attracted the young generation and of
course increase the sale of Pepsi, Pepsi also organized many national and international sports events
to attract the young generation.

43

MARKETING MIX OF L.B.P.L.

A product, place, price and promotion (4ps) that the firm blends to produce the response it wants in
the target market. These are the following 4Ps.

Products:- That could meet the identified needs of chosen consuming groups.

Price:- Product price are fixed by company according to competitors product price.

Place:- It performs various functions like transportation, warehousing, channel management

etc. so the product could easily reach the consumer.

Promotion:- The firm carries out a no. of measures like personal selling, advertising and sales
promotion programmed with view to communicate to the consumer and promoter of the
product.

It is the mechanism to achieve the consumptions of marketing process, striking the level of price that
is accepted to the firm as well as consumer.

44

PepsiCo Cold Drinks

7UP - Mood KO Do Lemon Ka Lift
Brand History
7UP, the refreshing clear drink with natural lemon and lime flavour was created in 1929. 7UP was
launched in India in 1990 and its international mascot Fido Dido was used for advertising in 1992
to position the brand as a cool drink for youngsters. Fido became an instant hit with his trendy
look, laid back attitude and refreshing take on life. During the brands early years in India, 7UP
gained market leader status in the lemon lime category by being one of the first to be nationally
distributed as well as being marketed as a healthier alternative to other soft drinks.
Brand Advantage
For the past 2 years, 7UPs ambition as a brand has been to capture and own the lemon
refreshment territory within the clear lime category. Lemon has proven to be a clear and relevant
differentiator for the brand. Further, it has allowed the brand to ladder up to an emotional payoff of
uplifting refreshment.
After establishing itself as The Lemon Drink ", in Jan 2009, 7UP continued to build further on
the theme of mood upliftment with its new tagline "Mood ko do Lemon ka Lift
7UPs brand communication is premised on the products natural lemon flavor , guaranteed to
provide uplifting lemon refreshment that raises ones spirits.

45

46

Mountain Dew -Darr Ke Aage Jeet Hai

Brand History
The main formula of Mountain Dew was invented in Virginia, named and first marketed in
Johnson City, Tennessee and Knoxville, Tennessee in 1948.
In India, Mountain Dew set the soft drink category ablaze in 2003 with their iconic launch
campaign Cheetah Bhi Peeta Hai.

Brand Advantage
It is a soft drink that exhilarated like no other because of its daring, high-energy, active, extreme
citrus taste. Challenge, a can do attitude, adventure and exhilaration is deeply entrenched in its
brand DNA and the brand has always celebrated the bold and adventurous spirit of the youth.
This exhilaration and excitement of Mountain Dew has always been reflected in the highadrenaline advertising of the brand that connected it to outdoor adventure.

47

48

Pepsi - Yeh Hai Youngistan Meri Jaan

Brand History
Pepsi is a hundred year old brand loved by over 200 million people worldwide. The largest single
selling soft drink brand in India is the ubiquitous'socialiser'at every occasion.

Youngistaan loves it. 200 million people worldwide love it. But what has made Pepsi the single
largest selling soft drink brand in India is actually a formula concocted a century ago in a far away
continent.

1886, United States of America. Caleb Bradman, the man with a plan, got on to formulate a
blockbuster digestive drink and decided to call it Brads drink. It was this doctors potion that was
to become Pepsi Cola in 1898, and eventually, Pepsi in 1903.

Pepsi has always played on the front foot and since its inception has come out with revolutionary
concepts like Diet, 2L bottles, recyclable plastic cola bottles and the enviable My Can.

Brand Advantage

Pepsi has become a friend to the youth and has led many youth cultures. Youngsters over the
generations have grown up with Pepsi and share an emotional connect with it, unlike any other
cola brand. Be it parties, hangouts, or just another day at home, a day is never complete without
the fizz of Pepsi!

Pepsi, Cricket and Bollywood have been joined at the hip since the beginning. Shah Rukh Khan,
Sachin Tendulkar, Saif Ali Khan, Amitabh Bachchan, Kareena Kapoor, Priyanka Chopra, Virender
Sehwag, M. S. Dhoni, John Abraham, Ranbir Kapoor and Deepika Padukone are a few celebrities
who will go any length for a chilled Pepsi.

49

The Pepsi My Can is undoubtedly the most popular cola pack of all times. It is not just a pack but
a style statement for todays youth.

50

51

Mirinda Weekend Aaye Tho Pagalpanti Chaye

Brand History
Mirinda is an international soft drink brand from Spain that was launched in India in 1991.
Mirinda has always been about a great irresistible orange taste, which is now synonymous with the
brand. These were communicated through our great of Mirinda Men in 1996 or with the
campaign of Taste pe Atka, Mirindaaaa in the year 2000 or Taste Aisa Chaye Character Fisla
Jaye in 2003.
Mirinda then evolved to ladder up the great taste to great fun with another spate of memorable
campaigns of Fun Ka Naya Mantra, Mirindaaaaa starring Asin & Zayed Khan in 2007 &
Pagalpanti bhi Zaroori Hai campaign with Asin in 2008.
In 2009, Mirinda became synonymous with Orange as the core of the brand with the campaign
of Orange Dikha toh Mooh Bola Mirindaaaaa.
Brand Advantage
Now when we think Mirinda, we think orange. But this soft drink brand has launched many other
fruit flavours from time to time; Mirinda Lemon was launched in 1998 with memorable campaign
Zor Ka Jhatka Dheere se Lage starring with Amitabh Bachchan & Govinda. Mirinda has also
launched many other flavors like Apple & Batberry, as innovative flavor offerings for the evolving
consumer.
46
In 2008, the brand decided to up the ante on the brand from a being led by physical attribute-taste,
to deliver a brand philosophy that resonates with the audience. Now, Mirinda's bold and vibrant

52

color, great orangey taste and sparkling bubbles encourages one to be more carefree, spontaneous
and playful.
With an endeavor to give our consumers a great tasting product to delight them continuously, we
have reformulated & improved its taste - first in 1996, then in 2002. And whats more, Mirinda is
now made without any artificial flavor in it!!!

53

54

Slice - Pure Mango Pleasure

Brand History
Slice was launched in India in 1993 as a refreshing mango drink and quickly went on to become a
leading player in the category.
In 2008, Slice was relaunched with a 'winning' product formulation which made the consumers
fall in love with its taste. With refreshed pack graphics and clutter breaking advertising, Slice has
driven strong appeal within the category.
Brand Advantage

With the launch of Aamsutra campaign in 2008 along with a winning taste & most appealing
pack graphics, Slice created disruptive excitement in the category and celebrated mango
indulgence like no other.46
While other players have portrayed mango as a simple and innocent fruit, Slice celebrates the
indulgence and sensuality of consuming a Mango. The creative idea Aamsutra communicates
the art of experiencing pure mango pleasure through the taste of Slice.

55

56

Aquafina - The Purest part of you

Brand History
Aquafina was first launched in USA in the year 1994 and with its unique purification system and
great taste; Aquafina soon became the best selling brand in the country.
In India, Aquafinas journey began with the Bombay launch in 1999 and it was rolled out
nationally by the year 2000. On the strength of its brand appeal and distribution, Aquafina has
become one of India's leading brands of bottled water in a relatively short span.

Brand Advantage
Aquafina goes through a 5 step state-of-the-art purification process to give consumers pure water
and perfect taste every time.
Aquafina has been built through refreshing and edgy advertising. The What a Body campaign
has enabled the brand to drive modern, premium, and youthful brand imagery in an otherwise
undifferentiated category.
Bottled across India in 19 plants, Aquafina ensures its availability across more than half a million
outlets. To cater to varied consumer needs and occasions, it is available in various pack sizes like
300ml, 500ml, 1 ltr, 2 ltr bottles and in bulk water jars of 25lts.

57

58

ADVERTISING & SALES PROMOTION IN L.B.P.L.

Advertising and sales promotion activities play a vital role in entire marketing efforts. Without these
aspects a quality product can not survive in the market. Advertising and sales promotion tools are
most essential for the modern global marketing. This chapter has therefore been devoted to the studies
of advertising and sales promotional activities in Lumbini Beverage Pvt. Ltd.

The two basic objectives for carrying out such various promotional activities by Lumbini Beverages
Pvt. Ltd. is To generate more sales as well as to create and maintain an image of its product
L.B.P.L. carries out its promotional activities as controlled and integrated programmes of
communication and material design present its soft drink to the perspective customers. It also helps in
communicating the need satisfying of soft drink to facilitate the sales eventually to contribute towards
the profit in long run.

59

The tools used by L.B.P.L. for fulfilling the various purposes of its promotional activities are the
following:

Food N Fizz

Space Club

Payaas bujhao profit badhao

Agreement

GRB (Glass return bottle).

60

PROMOTIONAL ACTIVITIES (FOR RETAILERS)

Promotional activities consist of various means of communicating persuasively with the target
audience. The important methods are:
Advertisement:- Where an identified sponsors pays media (such as TV) to transmit to target
consumer.
Personal selling:- Where sales representative employed by the firm engage in interpersonal
communication with individual consumers and prospective customers.
Sales promotion:- Where the market utilizes displays, demonstrations, premiums, contests or similar
devices.
Publicity and Public relation:- help to stimulate supportive news items about the firm and its
product that have greater credibility with public than advertisement.
Of all the methods of promotional activities that constitute the promotion mix, sales promotion is the
only one method that makes use of incentives to complete the Push-Pull promotional strategy of
motivating the sales force, the distributor and the consumer transacting a sale.
According to American Marketing Association sales promotion refers Those activities other
than personal selling, advertising and publicity, that stimulate consumer purchasing and dealer
effectiveness, such as display, shows and exhibition, demonstration and various other non-recurrent
selling efforts not in ordinary. Sales promotion is also known by the name of Extra Purchasing
Value (E.P.V.).

61

Product Performance of Pepsi

Targeting product comparison

Product availability

Pricing of products

Pepsi Performance in comparison

Comparative Products
SL
No.
1.
2.
3.
4.

Major CSD Brands

Flavor

PCI

CCI

Cola
Clear Lime
Cloudy Lime
Orange

Pepsi
7Up, Mountain Dew
Mirinda-Lime
Mirinda

Coca-Cola, Thums Up
Sprite
Limca
Fanta

In above table, I have shown product target in the market. Both companies try to substitute eachothers product in the market. When a company doesnt fulfill the demand of market then other
62

companies substitute that product with their own product. In the market, offen it seen that consumer
demands a product according to his desire, but due to lack of supply he switch over to substitute
product. So, companies always want to come out with substitute product for enlarging their market
share.
Here, Thums Up and Coca-Cola is substitute for Pepsi, Sprit is substitute for 7UP and Mountain
Dew, Fanta is substitute for Mirinda & Limca is substitute for Mirinda Lime.

Products Availability of Pepsi

63

SL
No.

Products

200ml

250ml

300ml

330ml

500ml

600ml

1000ml

1200ml

2000ml

1.

Pepsi

2.
3.

Pepsi diet
Pepsi
Gold
Mirinda

6.

Mirinda
Lime
M. Sorbet

7.

7UP

8.

M. Dew

9.

Pepsi Can

10.

7UP Can

11.

13.

Mirinda
Can
M. Dew
Can
Diet Can

14.

Slice

15.

Aquafina

16.

Tropicana

17.

Everest
Lehar

4.
5.

12.

Pepsi Products Price list for Customers

64

SL
No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.

Product
Pepsi
Pepsi diet
Pepsi Gold
Mirinda
Mirinda
Lime
Mirinda
Sorbet
7UP
Mountain
Dew
Pepsi Can
7UP Can
Mirinda Can
M. Dew
Can
Pepsi diet
Can
Slice
Aquafina
Tropicana
Everest
Lehar

200ml 250ml 300ml 330ml 500ml 600ml 1000ml 1200ml 2000ml

8
8
8

12
12
-

20
-

20
25
20
-

50
50
-

25

8
8

12
-

20
20

50
50

25
25
25
25

25

12-18
-

10
-

22
-

12

12
60-82
-

45
-

STUDY

ON RETAILERS

Retail Shop type

65

I. Monopoly Retail Shop

The shop selling only one companys

Products

II. M i x Shop

The shop selling many companies

Products

The retailers can build a great deal of goodwill for the firm. The marketing strength
depends on the strengths of retail dealers.
Research has conduct survey on different types of outlet like bakeries, cold drink parlor,
Booth and general stores etc.
According to his survey, the major reasons for selling Pepsi products are:

(1) Brand Image

(2) Customer Demand
(3) Profit Margin
(4) Advertisement
(5) Good Quality
(6) Sales Promotion for Retailers
(7) Sales Promotion for Consumers

18%
20%
05%
30%
10%
07%
10%

66

SWOT ANALYSIS

SWOT ANALYSIS
STRENGTHS:

Lumbini Beverage Pvt. Ltd. is Franchise Owned Bottling Operation (FOBO) of worlds
most famous soft drinks Pepsi Co.

67

LBPL uses state of the art and fully automatic machines and technology for the production
and bottling of soft drinks.

It has very strong network and built market and currently holds all the parts of the state.

It has wide range of product varieties & takes back the leakage, burst bottles etc.

WEAKNESSES:

No cost cutting program for the products.

Promotional activities in the rural market are not upto the mark as compared to the urban
market.

Brand Pepsi in cola flavor is one of the popular lagging behind its nearest competitor, only
due to high sugar content and less thrilling taste.

Not availability of all the products on demand.

OPPORTUNITIES:

Although in the cola market there are many competitors, Pepsi still has the opportunity to
enlarge its market share because the cola in the market is quite monotonic. Most of the end
user is young people. There are still some people who do not like the taste of the cola. So we
can try to provide some other taste of cola such as adding some lemon juice. We can change
the flavor in order to meet different taste of different people.

68

THREATS:

As to the threats, all of us know that Pepsi-Cola and Coca-Cola have had the competition for
about 80 years. Although Pepsi-Cola have won several times during this competition, the
market share of Pepsi-cola is a little bit smaller than Coca-Cola. There is another threat
nowadays. Some local cold drink such as Sudha dairy and Amul dairy cola have taken their
feet in the market.

One of the products of their competitor in Clear lime & Cloudy Lime flavor as a very good
market share due to its taste.

Coca-Cola is now spending more and more to boost up the sale & market share.

Research Methodology
69

RESEARCH METHODOLOGY USED IN THE

STUDY

Marketing Research is the systematic designing, collection, analysis, and reporting of data and
finding relevant to a specific marketing situation facing the company.
70

Within the time limit, I tried my best to select the sample representative of the whole
group. During my training, I maintained different chart for different routes during my dealer
survey. I have collected data from the Distributor and Retailers of Patna.

Data Sources

Primary data collection involved distributors, retailers.

Research Approaches

Survey

Research Instrument

Interview

Sampling Plan
Research Design

Exploratory

Sampling Unit

Retailers

Sampling size

100

Sampling Areas

Lucknow

Sampling Techniques

Simple Random sampling

71

Contact Method
In interview

:
schedule

Personal Interview
used

multiple

choice

question

and

ranking system

questions.

DATA ANALYSIS AND

INTERPRETATION
72

Q. 1 .How you came to know about Pepsi Brand Products?

Mode
Radio
TV
Newspaper
Friends
Others

No. of Respondent
32
46
12
6
4
73

Percentage
32%
46%
12%
6%
4%

Total

100

100%

It has been found that 32% percent retailer know about the Pepsi product through the Radio, 46 %
retailer know about the Pepsi product through the TV , 12% of the retailer know about the product
through the Newspaper ,6% of the retailer know about the product through the friends and 4%
retailer know about the product through the other things .

Q.2. Monthly sales (in Rs.)

Monthly Sales (In Rs)
Les than 5000
5000 to 10000
10000 to15000
Above 15000
Total

Respondent
12
16
40
32
100
74

Percentage
12%
16%
40%
32%
100%

It has been found that 12% Distributor/Retailer

are monthly sales (Rs)Less than 5000, 16%

Distributor / Retailer are monthly sales (Rs) 5000 to 10000 , 40 % Distributor / Retailer are monthly
sales (Rs) 10000 to 15000 and 32% Distributor / Retailer are monthly sales (Rs) above 15000.

Q. 3.Which brands of soft drinks are available in the outlet?

Soft Drinks
Pepsi cola
Mirinda
Mirinda (l)
7UP
Slice
Mountain Dew
Total

Available in the Outlet

22%
12%
8%
24%
16%
18%
100%
75

It has been found that 22% Pepsi Cola soft drinks are available in the outlet because the taste of the
soft drinks is very sweet so mostly customer prefer Pepsi Cola, 12% and 8% Mirinda and Mirinda(L)
soft drinks are available in the outlet, 24% 7Up are available in the outlet, 16% Slice are available in
the outlet because it is a Mango flavors soft drinks.18% Mountain Dew are available in the outlet.

Q. 4. When a customer comes to your shop which brand of soft drinks

He/she demands? (Rank them).
Brand of soft Drinks
Pepsi
Coca cola
Other
Total

Respondents
46
38
16
100

76

Percentage
46%
38%
16%
100%

It has been found that 46% customer demand Pepsi because the product of the Pepsi brand is very
sweet and Mango flavor product Slice mostly children like, 38% customer demands Coca Cola
because the product sweet is minimum amount and mostly like sugar Patient and 16% customer
demand other Brand (Rank them).

Q. 5.Number of carets sold per month of soft drinks.

Number of Carets Sold in
per month
0-50
Carets
50-100 Carets
100-150 Carets
150-200 Carets
Total

Respondent

Percentage

4
22
42
32
100

4%
22%
42%
32%
100%
77

It has been found that 42% Retailers told that 100 -150 number of carets sold in per month because
they Retailers belongs to very crud area so customer also be use the soft drinks, 32% retailers told
that maximum 150-200 carets sold in per month, 22% retailers told that 50- 100 carets sold in per
month and 4% retailers told that 0-50 number of carets sold in per month because they retailers also
belongs to ruler area.

Q .6.What is the position delivery of Pepsi products?

Position Delivery of Pepsi product

No. of Respondent

Percentage

Very Good

30

30%

Good
Bad
Worst

42
18
10

42%
18%
10%
78

Total

100

100%

It has been found that 30 % delivery of Pepsi products are very good , 42 % delivery of Pepsi
products are good , 18% delivery of Pepsi product are bad and 10 % delivery of Pepsi product are
worst .

Q. 7.What is the frequency of the visit of Pepsi executive?

Frequency of the Visit of Pepsi Executive No. of Respondent

Percentage

Daily

30

30%

Alternate Day
Weekly
Fortnightly

34
22
14

34%
22%
14%

79

Total

100

100%

It has been found that 30 % distributor visit of Pepsi executive Daily, 34 % distributor visit of Pepsi
executive Alternate Day, 22% distributor visit of Pepsi executive Weekly and 14% distributor
visit of Pepsi executive Fortnightly.

Q.8.Which types of outlets are selling more?

Types of outlets

No. of Respondent

Percentage

General Store

24

24%

Restaurant
Betel Shop

14
10

14%
10%
80

Sweet Shop
Other
Total

36
16
100

36%
16%
100%

Out of 100 respondents I found 36 % sale of Pepsi on sweet shops that are maximum because every
sweet shop use the Visi cooler for the own product protection and a lot of customer want to more
cool soft drinks. 24% sale of Pepsi on the general store, 14% on the restaurants because a lot of
customer prefer take drink in restaurant because that place is very peace, 10 % on the Betel shop and
16 % sales on the others shops respectively. Example-Medical Store, Cyber Caf.

Q .9.Which factors affect the sale most?

Factors affect the sale
Advertisement

No. of Respondent
16

Percentage
16%

Scheme
Presence
Taste
Price
Others

12
16
30
14
12

12%
16%
30%
14%
12%
81

Total

100

100%

It has been found that there are various factors affect the sale of the Pepsi product, 30% respondent
say that Taste is most factors of the product sale because the Taste of the Pepsi product is very highly
sweet, 16 % of the respondent says that Advertisement and Presence is also a factor of the Pepsi
product, 14 % respondent say that price is also factor of the sales the product and 12% respondent say
that scheme and others factor also affect the sale of the product.

Q. 10.Which Company Visi-Cooler do you have?

Company Visi cooler

Pepsi
Coca Cola
Both
Own
Total

No. Of Respondent
38
24
22
16
100

82

Percentage
38%
24%
22%
16%
100%

It has been found that 38 % retailers told Pepsi Company Visi-Cooler use for the Soft drinks because
visi-cooler also provided by the Pepsi company.24 % retailers told Coca Cola Company
Visi-cooler use for the soft drinks , 22% told that both Visi-cooler use because the shop of the
retailers is very big area ,16% retailers told me own Visi-cooler use for soft drink.

Q. 11.Do you know about all flavors pack (size) and respective wholesale price Pepsi soft drinks.
Flavors Pack &Wholesale
Price
Yes

No. of Respondent

Percentage

60

60%

No
Total

40
100

40%
100%

83

It has been found that 60% retailers said Yes know about the all flavors pack & wholesale price of
Pepsi soft drinks because retailers also sold the product in the market daily on the price list , 40%
retailers said that No Know about the all flavors pack & wholesale price.

Q . 12. Have you been provided with sign board/display rack by Coke Company?
Provide Sign board / Display
Rack By Company
Yes

No. of Respondent

Percentage

74

74%

No
Total

26
100

26%
100%

84

It has been found that 74 % retailers said that company also provide the Sign board / Display rack by
coke company because sign board also use for the protect the product in a shop.26% retailers said
that company not be provide the sign board , those retailers use own display rack /sign board for the
basically need.

Q.13.Do you think that aggressive advertising further help you to increase the sales volume of Cola?

Important of Advertising
Increase the sales
Yes

No. of Respondent

Percentage

54

54%

No

46

46%
85

Total

100

100%

It has been found that mostly 54 % distributor say Yes advertising help in increase the sales
volume of cola because advertisement is the base of the product introduce first time in the market
and 46 % distributor say No advertising help in increase the sales volume of cola.

FINDINGS
86

FINDINGS OF THE STUDY

Out of the 100 respondent ,It has been found that 32% percent retailer know about the Pepsi
product through the TV, 46 % retailer know about the Pepsi product through the Radio , 12%
of the retailer know about the product through the Newspaper ,6% of the retailer know about
the product through the friends and 4% retailer know about the product through the other
things .
87

It has been found that there are various factors affect the sale of the Pepsi product, 30%
respondent say that taste is most factors of the product sale because the Taste of the Pepsi
product is very highly sweet, 16 % of the respondent says that Advertisement and Presence is
also a factor of the Pepsi product, 14 % respondent say that price is also factor of the sales the
product and 12% respondent say that scheme and others factor also affect the sale of the
product.

It has been found that 30 % distributor visit of Pepsi executive Daily, 34 % distributor visit
of Pepsi executive Alternate Day, 22% distributor visit of Pepsi executive Weekly and
14% distributor visit of Pepsi executive Fortnightly.

Out of 100 respondents I found 36 % sale of Pepsi on sweet shops that are maximum, 24%
sale of Pepsi on the general store, 14% on the restaurants , 10 % on the Betel shop and 16 %
sales on the others shops respectively. Example-Medical Store, Cyber Caf.

It has been found that 12% Distributor/Retailer are monthly sales (Rs)Less than 5000, 16%
Distributor / Retailer are monthly sales (Rs) 5000 to 10000 , 40 % Distributor / Retailer are
monthly sales (Rs)

10000 to 15000 and 32% Distributor / Retailer are monthly sales (Rs)

above 15000.

It has been found that 22% Pepsi Cola soft drinks are available in the outlet , 12% and 8%
Mirinda and Mirinda(L) soft drinks are available in the outlet, 24% 7Up are available in the
outlet, 16% Slice are available in the outlet because it is a Mango flavors soft drinks.18%
Mountain Dew are available in the outlet.

It has been found that 38 % retailers told Pepsi company Visi-Cooler use for the Soft drinks ,
24 % retailers told Coca Cola Company Visi-cooler use for the soft drinks , 22% told that
both Visi-cooler ,16% retailers told me own Visi-cooler use for soft drink.

It has been found that 60% retailers said Yes know about the all flavors pack & wholesale
price of Pepsi soft drinks because retailers also sold the product in the market daily on the
price list , 40% retailers said that No Know about the all flavors pack & wholesale price.

It has been found that 74 % retailers said that company also provide the Sign board / Display
rack by coke company because sign board also use for the protect the product in a shop.26%
88

retailers said that company not be provide the sign board , those retailers use own display rack
/sign board for the basically need.

It has been found that mostly 54 % distributor say Yes advertising help in increase the sales
volume of cola because advertisement is the base of the product introduce first time in the
market and 46 % distributor say No advertising help in increase the sales volume of cola.

Suggestions &
Recommendations
89

Suggestions & Recommendations

Lumbini Beverages Pvt. Ltd. should introduce some change in its marketing function
and advertising to market more rational. The following factors to be worthy of consideration:1. A complain Register should be provided by the company to every distributor in every
route so that, retailers/customers can write their problems. The complain register should
be checked by consumer executive and depot in charge at time to time.

90

2. A clear notification should be given to teach distributor and each route agent to give
cash memo (with printed number) and maintain route card for every transaction.
3. Proper care should be given the companys employees at the time of scheme close.
Signature of scheme receiving on the cash memo should be taken and it should be also
maintained in route card. Claim of scheme should be passed after the deeply stud y of
above three points i.e. difference between opening stock and closing, signature of scheme
receiving on the cash memo and sells maintained in the route card.
4. Some retailers keep other companies products in the Pepsis fridge, while is provided
by the company. To check additional scheme be given in every month, in the peak
seasons After the checking of Pepsis Fridge (3or 4 times in every month ) if It is found
that retailer does not keep other companies products in the Pepsis Pepsi fridge the
claim of scheme should be passed . Thus we can improve/increase its sell and
employees activities.
5. There is no electricity problem in the whole area of Patna. For chilled soft drink, ice box
which is compulsory and dredge both should be provided by the company.

6. The numbers of outlets are too much. So it is required to short the route and extra
vehicles/tricycles provide in this route.
7. Facilities provided by the company should be increased. Facilities requirements should
be fulfilled in all the rural and urban area properly after deeply study for various aspects
or retailers by the help of company employee and depot incharge.
8.

The vendors can also be provided with uniform by the company in order to give them
visibility.

9.

An

appropriate

name

should

be g i v e n

to these

advertisement thus giving them some sort of identity.

91

tricycles

and

properly

10. In winters, as the sales from these tricycles may be very low because of seasonal factors
Beverages Pvt. Ltd. should think of introducing such packs Beaver its various brands
of beverages .
11. It is vital take for Lumbini Beverages Pvt. Ltd. that maintain the performance of Pepsi
in future therefore performance of soft drink was very good in this year in comparison of
coke.
12.

Now a day with the introduction of tetra packs such as fruity, Tree Top etc. So Lumbini
Beverages Pvt. Ltd. should think of introducing such packs of its various brands of
beverages.

13. Lumbini beverages Pvt. Ltd. should be provided its the rural area also.

92

LIMITATION

LIMITATION
As I was asked to carry on my vocational training I found the following limitations
during my training period. So I could not collect all information regarding my topic.
(i)

Shortage of time factor was one of the biggest constraints.

(ii)

Most stress was given on the primary data as it was difficult to collect
secondary data from the organization and distribution since it is difficult to
ascertain the authenticity of their statements.

(iii)

All the observation and recommendation will be made on the feed back

Conclusion

97

Conclusion
In the earlier chapters of this report on various aspects of soft drinks industry with
particular reference to establishment of Lumbini Beverages Pvt. Ltd. Its
organizational structure and channel of Distribution Lumbini Beverage Pvt. Ltd. etc have
been studied Present chapter is an attempt to summaries the whole report and present a
view suggestion.
From the data analysis and survey conducted by me, I arrived at the following
conclusions:(1) Pepsi has the entire flavor i.e. Cola, Leman, Orange, Mango in the market and its market
share is comparatively more than Coke.
(2) The majority of the retailers deal in all brands of Pepsi and Coca-Cola.
(3) One of the major drawbacks of Pepsi products is that all the flavors do not reach at each
and every retail outlets but competitors products do reach that is why competitor enters
in to Pepsi exclusive outlets .
(4) The major problem faced by the distributor is the shortage of supply particularly pets.
(5) Distributor

functions

just as

order

takes;

they

should

contribute

me

and

communicate to the retailers.

(6) It should be checked that whether our products is reaching to the outlets timely and
regularly or not.
(7) Although the Visi-cooler, Sign board/Display rack and Glass strength provided by
Pepsi are more than Coke but still there are number of retailers, who are either not
having these or others have provided them .
(8) There is irregular in the supply of Visi-cooler, some retailers, which sell more are not
provided Visi-cooler which some retailers, which sell less, are provided visi- cooler.
98

(9) Some

of

the

Visi-cooler

provided

by

Pepsi

is

not

functioning

properly,

complaints regularly, are entertained after a long time.

(10) Most of the retailers are in need of board but not provided by the Pepsi
Company.
(11) Most of the retailers especially small retailers have complained that the sales man
doesnt inform about any sales promotional scheme.

99

Bibliography

100

Bibliography
BOOKS

Kotler, Philip, Marketing Management, Pearson Education,12th edition, 2008, New

Delhi.

Kothari, C.R., Research Methodology, Second Revised Edition, New age

International Publishers.

MAGAZINES

Business world, November, December Edition.

Competition Success Review, November, December.

SEARCH ENGINE
www.google.com
WEBSITE
www.pepsico.com

101

Annexure

102

QUESTIONNAIRE

Name: - .
Address: - .
..........
Contact No: -...................

(1) How you came to know about Pepsi Brand Products?

(a) TV
(d) Friends

(b) Radio

(c) Newspaper

(e) other

(2) Monthly sales (in Rs.)

(a) Less than 5000

(b) Between 5000 to 10,000

(c) 10,000 to 15,000

(d) Above 15,000

(3) Which brands of soft drinks are available in the outlet?

(a) Pepsi Cola

(b) Mirinda

(c) Mirinda (L)

(d) 7Up

(e) Slice

(f) Mountain Dew

103

(4) When a customer comes to your shop which brand of soft drinks
He/she demands? (Rank them).
(a) Pepsi

(b) Coca Cola

(c) Others
(5) Number of carets sold per month of soft drinks.
(a) 0 - 50 carets

(b) 50 to 100 carets

(c) 100 to 150 carets

(d) 150 to 200 carets

(6) What is the position delivery of Pepsi products?

(a) Very Good

(b) Good

(c) Bad

(d) Worst

(7) What is the frequency of the visit of Pepsi executive?

(a) Daily

(b) Alternate Day

(c) Weekly

(d) Fortnightly

83
(8) Which types of outlets are selling more?
(a) General Store

(b) Restaurant

(c) Betel Shop

(d) Sweet Shop

(e) Other
(9) Which factors affect the sale most?
(a) Advertisement

(b) Scheme
104

(c) Presence

(d) Taste

(e) Price

(f) Others

(10) Which company Visi-Cooler do you have?

(a) Pepsi

(b) Coca Cola

(c) Both

(d) Own

(11) Do you know about all flavors pack (size) and respective wholesale price Pepsi
soft drinks.
(a) Yes

(b) No

(12) Have you been provide with sign board/display rack by Coke Company?
(a) Yes

(b) No

(13) Do you think that aggressive advertising further help you to increase the sales
Volume of Pepsi?
(a) Yes

( b) No

(14) Any Suggestion on the Pepsi brand..........

105