MARKET RESEARCH, SALES PROMOTION,

ADVERTISEMENT &

COMPETITOR ACTIVITY IN PATNA

WITH REFRENCE TO

LUMBINI BEVERAGES PVT.

LTD.
SUBMITTED TO

MANAGEMENT PROGRAMME
UNIVERSITY 0F MYSORE

FOR THE AWARD OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

SESSION: 2007-2009

UNDER THE GUIDENCE OF: SUBMITTED

BY:
 [LUMBINI
BEVERAGE PVT. LTD]
Mr. ARUN KUMAR AMIT
KUMAR

TDM (Patna) [Link]. -

29 (MARKETING)

LUMBINI BEVERAGES [Link]

DATE: 30-06-2008
To Whom It May Concern

This is to certify that Mr. Amit Kumar Student of MBA,

of K.R. Manglam Global Institute of
Management, Delhi session 2007-2009 has
completed his summer training during 04-05-08 to 04-
06-08 on the topic of “Market research,
Advertisement, Competitor activity and Sales &
distribution system” under LUMBINI BEVERAGES
[Link]. (PEPSICO), Hajipur at Patna. He
successfully undertook the above dissertation with
total sincerity and dedication to our satisfaction. His
conduct during the training period was good.
We wish him all the best & hope that this training
might help in his professional career.

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BEVERAGE PVT. LTD]
For LUMBINI BEVERAGES Pvt. Ltd

(Arun Kr. Singh)

Trading Development Manager

Regd. Office: P-214, C.I.T. Scheme VI(M), Kolkata – 700 054, Tel.: (033)
2229 5762, Fax: (003) 2229 5762, Email: khilani@[Link],Plant: H-2,
EPIP, Industrial Area, Hajipur – 844101, Tel.: (06224) 274873,274836,
Fax: (06224) 275927, Email: plant@[Link]

PREFACE
The present era is an era of Brand Marketing the
business of brand marketing can be compared to the
game of chassis this area of marketing brand name,
packaging, and distribution and advertising plays
similar role as that of pawn on the board of chess.
To achieve the purpose I have done my
summer project training from Lumbini Beverages
pvt. [Link], unit the topic given me is “A BRIEF
STUDY ON SALES & DISTRIBUTION SYSTEM, MARKET

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BEVERAGE PVT. LTD]
RESEARCH, CONSUMER BEHVIOUR, and COMPITITOR
ACTIVITY OF PEPSI IN PATNA (BIHAR).
Knowledge attains maturity and perfection
through application in practical field. Application of
management principle in all branches whether
product. Personal marketing, etc. result is more
efficient and efficient and effective utilization of
available resources.
This report has been compiled firstly in
partial fulfillment of the requirement for MBA,
secondary to share the practical knowledge and
experience gained as result of continued association
with company’s marketing branch. The details
mentioned in this report are based on real situation.
Since the reader would like to know the
general details of two cola giants. Therefore a chapter
includes theoretical aspects of comparative study and
its application for the industry in marketing is also
include. Further to help the reader in understanding
the findings, graphical representation, conclusions and
suggestions are also includes, which very much helps
Lumbini Beverages Pvt. Ltd. Hajipur to know where
he stands in the soft drinks market. What is the

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BEVERAGE PVT. LTD]
market share of Pepsi? And what Pepsi is doing
against Coca-cola.
I frequently hope that this project report would
be considerable help to the management for
developing strategies in those areas.

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BEVERAGE PVT. LTD]
ACKNOWLEDGEMENT
This project report is a sincere
attempt to carefully and systematically gather facts
about and evaluate the sales promotion, distribution
and market research of LUMBINI BEVERAGES PVT.
LTD. HAJIPUR as a part of the course curriculum of
“SALES & DISTRIBUTION SYSTEM,MARKET
RESEARCH ,CONSUMER BEHVIOUR ,COMPITITOR
ACTIVITY OF PEPSI IN PATNA(BIHAR)”.which is of
eight weeks duration for the completion of my project
report many persons directly or indirectly assisted me.
First of all, I would like to thank almighty God,
without his blessing the whole report could not have
been completed.
In this context I, Amit Kumar student of
[Link] Global Institute of Management,
University of Mysore, Bangalore .Would first of all
like to express my thankfulness to parents and family
members, who have constantly deported and
encouraged me in shaping my career.
I also express my profound sense of gratitude to
Mr. G.P Singh [CEO], Arun Kr. Singh [TDM], Binay
Kumar [Deputy TDM], & CE Banwari Shukla, Patna of
Lumbini Beverages pvt. Ltd., Hajipur, who provided
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BEVERAGE PVT. LTD]
me an opportunity to work and also guide me at every
step of my project. Their proper direction and constant
inspiration proved to be an asset for this project.

I am also grateful to Mr. N.K. Prasad [HR manager]

Lumbini beverage pvt. Ltd, For giving me an
opportunity to learn and conduct research in their
esteemed organization, Words are too little to express
my gratitude.
I would like to thank Mr. Vikash Kumar, Mr. Nitin
Kumar, Mr. Amar Sinha & Depot, In charge
[Link] for their kind co-operation to compile my
project.
Since the reader would like to know the
general details of two cola giants, therefore, chapter
includes as discussion of theoretical aspects and its
application is included. Further to help the reader to
understand the finding with graphical representation.
Conclusions and suggestion are also included, which
very much helps to know that where LUMBINI
BEVERAGES Pvt. ltd., stands in the soft drink market
what is market share of Pepsi and how Pepsi is doing
against coca-cola.

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BEVERAGE PVT. LTD]
I hope this report will be special interest to the
marketing students, who are on look such real life
situations beyond their classroom studies.

Amit Kumar

CONTENTS

Chapter 1: Introduction to the Study

1.0 Introduction
1.1 Purpose of the Study
1.2 Importance and Relevance of the Study
1.3 Research objective
1.4 Scope of Study
1.5 Characteristics of soft drinks
1.6 Methodology to be used
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1.7 Limitations of Study

Chapter 2: Industry Profile

2.0 Overview
2.1 Mission and vision of PepsiCo
2.2 History of Pepsi
2.3 Pepsi the Indian experience

Chapter 3: Introduction of the organization

3.0 Lumbini beverage Pvt. Ltd.
3.1 Profile of LBPL
3.2 Organizational hierarchy
3.3 Production process
3.4 Product profile
3.5 SWOT analysis

Chapter 4: Marketing Strategy &

Distribution Channel
4.0 Marketing strategy
4.1 Marketing mix
4.2 Promotional activities
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4.3 Advertising & sales promotion L.B.P.L
4.4 Merchandising policy
4.5 Distribution channel of LBPL

Chapter 5: Product Performance of Pepsi

5.0 Targeting product comparison
5.1 Product availability
5.2 Pricing of product
5.3 Pepsi performance in comparison

Chapter 6: Data Analysis and

Interpretation
6.0 Interpretation of outlets
6.1 Market share
6.2 Market share of different soft drinks
6.3 Market share of equipments
6.4 Percentage share of glow sign board
6.5 Percentages of satisfied distributers

Chapter 7: Market survey

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7.0 Research methodology
7.1 Dealer survey
7.2 Limitations of the research

Chapter 8: Conclusions and Suggestions

8.0 Conclusions
8.1 Suggestions
Annexure

 Glossary of terms

 Questionnaire

 Bibliography

Chapter 1: Introduction to the

study
1.0 Introduction
1.1 Purpose of the Study
1.2 Importance and
Relevance of the Study
1.3 Research objective

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BEVERAGE PVT. LTD]
1.4 Scope of Study
1.5 Characteristics of soft
drinks
1.6 Methodology to be used
1.7 Limitations of Study

INTRODUCTION
India with a population of more the 100crore is
potentially one of the largest consumer markets in the
world with urbanization and development of economy,

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tastes and interests of the people changes according
to the advance nation.
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 convert
social needs into profitable opportunities. So this topic
provides all the essentials to the 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.
Marketing is about winning this new environment. It is
about understanding what consumer’s wants a
supplying its more efficiency and more conveniently.
India where more than 50% of the total population
exists below poverty line the consumer can’t afford
such high price for soft drinks. As a result the trading
activities of the soft drinks industry are concentrated
in and around big cities and town where the
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purchasing power of population is considered
comparatively high.
Soft drinks industries in India has annual sale of about
5000crores, with per capita consumption of soft drinks
at a low of eight bottles per annum is due to price
factor.
So, marketing is both philosophy and technology. It is
technology because it suggests ways and means for
effective production and distribution of goods and
services in the market to give maximum satisfaction to
the consumer.
In this regard the marketing management with have to
apply to marketing technology in the conceptual
philosophy of a system. It is the process of system
analysis in the marketing management for effective
research and can be defined, “systematic objective
and exhaustive study of tasks relevant to any problem
in the field of marketing “.

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PURPOSE OF STUDY
A project cum training is an essential part of MBA
+PGDM curriculum. This study was conducted on “A
comparative assessment of the Pepsi
performance in the cold drink market in Patna
and promotional activities in Patna central
region.
It also helps to make improvements in service and
quality of the Pepsi product, for their long term
existence in the market and earning profit.
Simultaneously, it is also helpful to me to learn about
the consumer’s behavior and their demand for the
beverages in particular area (market).
Executive training was undertaken on the
following objectives:
 To know the brand acceptance of Pepsi in the cold
drink market in Patna.

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 To determine the factors which persuade the
retailer for sale of Pepsi?

 To know the effects of anti-cola advertisement on

sale of Pepsi.

 To find out the company’s position & market

share in the soft drink market.

 To find out the exclusive outlets of Pepsi & its

competitors.
 To find out the various competitors of Pepsi &
their strategy.

 To find out promotional activities of Pepsi & its

competitors.
 To understand the acceptance of Pepsi as
compared to coke
 To identify the organizational features of Pepsi.

IMPORTACE OF THE STUDY

The topic has been already given to the company to
collect information about current happening in the
market. It also helps to makes improvement in

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service and quality of the product, for their long
term existence in the market and earning profit.
Simultaneously, it is also helpful for me to learn the
consumer behavior and observe their attitude
toward demand of particular products practically.

RESEARCH AND OBJECTIVES

The following were the main objectives
of the research:
 To know the stock position of Pepsi and its
competitors at different outlets.

 To study the marketing and promotional activities

at various retail outlets.
 To know per day sale of Pepsi brand and its
competitors in crates.
 To study the percentage share of Pepsi‘s cooling
equipments.
 To know how many outlets are covered with glow
signboard of Pepsi?
 To know the market share of Pepsi products.

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SCOPE OF STUDY
The main scope of this research is ascertaining the
various methods to increase the sales volume and
distribution activity of concerned company. The
methods include regular measures to make the
position in the market and taking measures to confirm
the brand position. One of the most important aspects
of this study is also to increase the market segment
for the products.

OTHER SCOPE OF THIS TOPIC MAY BE AS

FOLLOW:
• Target market segment
• Comparison of Pepsi products with its
competitors.
• Identification of market potential.
• Evaluating customers need with company
products.
• Collecting suggestions for product improvement
etc.
• Evaluating awareness about Pepsi Company.

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CHARECTERISTICS OF THE SOFT DRINKS
• Unfinished goods (required chilling before
consumption).
• Two way transportation (one filled bottles to
market and second empty bottles from market
• Heavy expenses on advertisement and
promotions
• More attention to retailer .several schemes and
other facilities provided to them
• New flavor are introduced from time to time
• Highly competitive market with only two equally
strong players

METHODOLOGY OF THE RESEARCH

For the purpose of gathering data from
various dealers and consumer, I preferred collection of
primary data with the help of open and close-ended
questionnaires.
• Defining the problem and the research objectives.
• Developing the research plan.
• Questionnaires.

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• Sample size.

LIMITATION OF THE STUDY

• The finding of the study may not be applicable to
other places except Patna.
• The respondents were too busy to give exact
answer to all questions.
• There is chance of under estimation of sales and
income as it is the nature of human beings.
• This study analysis is opinion of retailers only.
• The results may not hold good in the long run as
taste and preference of human beings are subject
to change over a period of time.
• There are chances of sampling error.
• Chances of biased data collections to
respondents.

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Chapter 2: Industry Profile
2.0 Overview
2.1 Mission and vision of PepsiCo
2.2 History of Pepsi
2.3 Pepsi the Indian experience

OVERVIEW
PepsiCo is a world leader in convenient foods and
beverages, with [Link] of more than $35
billion and more than 168,000 employees across the
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world. Its world renowned brands are available in
nearly 200 countries and territories.

Building for the future

PepsiCo is among the world’s largest consumer
products companies focused on convenient foods and
beverages. They were proud on their products are
some of the world’s best known brands and they are
enjoyed by billions of people around the world every
day. There products are recognized for their quality,
taste and value, and increasingly, for their contribution
to healthier diets.

ABOUT US:
the Pepsi Bottling Group (PBG) is the world's largest
manufacturer, seller and distributor of Pepsi-Cola
beverages, Some of the world's most recognized
consumer brands. PBG became a publicly-traded
company in March 1999 through one of the largest
initial public offerings in the history of the New York
Stock Exchange.

PBG generates nearly $11 billion in annual sales. It

operates in the United States, Canada, Greece,
Mexico, Russia, Spain and Turkey, accounting for more
than one-half of the Pepsi-Cola beverages sold in

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North America, and about 40 percent of the Pepsi-Cola
system volume worldwide.

OUR CUSTOMERS
In the U.S. and Canada, most of PBG's volume is sold
in supermarkets, followed by the convenience and gas
channel, where Pepsi brands have the market-share
lead. The balance of volume is sold in mass
merchandising outlets, restaurants and other fountain
accounts.

In the U.S., Canada and Mexico, our sales people

interact directly with most customers to sell and
promote Pepsi products (Direct Store Delivery). In
other international territories, PBG serves customers
with a combination of Direct Store Delivery and third-
party distributors.

Among the services we provide to our customers are

proven methods to grow not only Pepsi brand sales,
but sales in the overall beverage category. Ultimately,
our goal is to help our customers grow their beverage
business by making our strong product line-up readily
available to consumers at every shopping occasion.

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OUR ORGANIZATION
The people at PBG reflects the Company's emphasis
on superior sales capability and service. In North
America, more than one-half of PBG employees work
in sales, followed by nearly one-third in operations.

Our organizational structure, based on a general

management model, reflects the same priorities. The
Vice President/General Managers of PBG's market
units lead marketing and sales efforts in contiguous
geographic areas with common major customers. We
designed our organization to give our market units the
autonomy to serve the needs of individual customers,
develop market-specific strategies, and respond to
local marketplace dynamics. From the General
Manager to the frontline customer representative, the
entire PBG sales force competes on a local level to
serve existing customers and to win new accounts.
The Pepsi Bottling Group is a fast-paced, customer-
focused company, with an entrepreneurial spirit. We
offer careers in sales and sales operations,
manufacturing, finance, human resources, information
technology, field marketing, and general

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management. The Company's success hinges on the
thousands of face-to-face transactions our frontline
employees conduct with customers every day. That is
an exciting, empowering career proposition for the
individuals who make up PBG's sales force — and for
the teams that support and lead them. The Company
is an equal opportunity employer and values the
diversity of its workforce

PBG AND PEPSICO

PBG became an independent, publicly-traded company
in March 1999. PepsiCo retains an equity interest in
PBG of about 40 percent.

As an independent entity, PBG benefits from a much

sharper definition of its role and is able to execute its
business strategy more effectively on a local market
level. PepsiCo's focus is on what it does best, which is
developing innovation, building its powerful brands
and creating the world-class marketing programs to
support them. And, as PepsiCo's largest bottler, we at
PBG can do what we do best: making, selling and
delivering more of those brands, more profitably than
ever before.
PepsiCo world headquarters is located in
purchase, New York, approximately 45 minutes from
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New York City. The seven-building headquarter
complex was designed by Edward Durrell Stone, one of
America’s foremost architects. The building occupies
10 acres of a 144- acre complex that includes the
Donald M. Kendall sculpture Gardens, a world
acclaimed sculpture collection in a garden setting.
PepsiCo global CEO is Indira K. Nooyi and Sanjiv
Chadha is Indian PepsiCo CEO.

MISSION AND VISION OF PEPSICO

PepsiCo’s mission is “to be the world premier
consumer Products Company focused on convenient
food and beverages. We seek to produce healthy
financial rewards to investors as we provide
opportunities for growth and enrichment to our
employees, our business partners and the
communities in which we operate. And in everything’s
wed, we strive for honesty, fairness ail,
At PepsiCo, we believe that as a corporate citizen, we
have a responsibility to contribute to the quality of life
in our communities. This philosophy is expressed in
our sustainability vision which states; “PepsiCo’s
responsibility is to continually improve all aspects of
the world in we operate –environmental, social,
economical—creating a better tomorrow than today.”

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Our vision is put into action through programs and
focus on environmental stewardship, activities to
benefit society, and a commitment to build
shareholder value by making PepsiCo a truly
sustainable Company.

History of Soft drinks in India

Soft drinks are a non- alcoholic beverage. It is
artificially flavored and contains no fruit or pulp. India
with more than 110crores population is one of the
largest consumer markets in the world after China.
Soft drinks is a typical consumer product purchased by
individuals to quench thirst and secondly for
refreshment.
Searching for the point of origin of Indian soft drinks, I
first document on gold spot this was the first brand
soft drink in India. it was introduced by Parle during
later part 40’s .cola giant ,coca cola was the foreign
soft drink to be introduced in India in [Link]
made a very good beginning and dominated the whole
scheme right from the world go. It faced no
competition at that time.
The extraordinary success of soft drinks can be
attributed to the following factors;

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• Absence of contemporary competitive brand.
• Euphoric image build up in the western
countries proceeded the entry into Indian
market,and
• Indians are very fond of foreign goods,
services etc. due to prolonged foreign rules.
Parle exports Pvt. Ltd. introduced Limica,
Lemony soft drink in later 1970. Before Limca was
introduced they had tentatively introduced Cola,
Pepino, which they had to withdraw soon in the face of
battering conformation with CocaCola.
Three of four groups of Indian companies, which had
the required production capacity, started their own
brand of Cola, orange, Lemon but failed to achieve
their goal on national basis.
India always has love and hate relationship with
MNC”S which gave a significant opportunities to soft
drink industries in India when Coca-Cola decided to
bind up it was being wasted.
Operation in 1977 rather than bowing to
Indian government insisting on:-

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• Dilution of equity, as the government felt that list
of foreign currency
• Manufacturing of the top secret concentrate in
India

• Disclosure of the chemical composition of the

essence

This left a large vacuum in popular soft drink

market, and a vista was opened to any company
with requisite technical, marketing and
organizational skills.
The existence of coca cola from India in 1977
accelerated the growth of several Indian soft drinks in
the form of tetra pack entered the market, among the
Frooti, jump-in, and tree top where the prominent one.
Till 1977, there equipped bottling plants and the
distribution network were of no use. It looks them one
year to develop new formula to survive and gradually
came up with Campa, lemon, orange, and cola.
However Parle the pioneer in the soft drinks blazed its
way to national prominence with their product
“thumbs-up” bearing the slogan “Happy days are

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here again”. This particular slogan helped to win
over the loyalists or addicts to Coca-Cola.
Indian soft drink industry started at a phenomenal
rate, and all Parle products, Gold Spot, Limca and
Thums-up became the brand leader in their own
segment.
In spite of all these, the drink market still had large
gaps, as claimed by soft drink manufacturers. To fill
these gaps, many soft drink concentrate and squashes
flooded the market .The Indian soft market basically
offered three flavors i.e. Orange, Lemon and Cola.
1988 saw the entry of the multinational company
PEPSI to the Indian market, 11 years after the
existence of Coca-Cola. It had name, fame and edge of
being one of the best in the game and it also offered
stiff competition to Parle and Coke.

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HISTORY OF PEPSI
Pepsi-Cola Company was founded by CALEB D
BRADHAM in 1890 at North Carolina in USA. Its CEO
is Indira [Link] and in India PepsiCo. Holding its
chairman is [Link] Bakshi. The head office of
PepsiCo in India is at Gurgaon. Presently it operates
in 196 countries.
Pharmacist CALEB it to cure the disease
“DISPARSIA”, It is from this word that was related to
Pepsi. Soon it entered the American market as soft
drink which at that time was mostly dominated by
Coca-Cola, but soon Pepsi was able to dominate the
Cola market and thereafter it has been no looking
back. Pepsi and Coca-Cola are engaged in a ferocious
cold war that has taken the whole world by storm.
Pepsi stands 51st position among the fortunate 500
companies of the world. Its total capital is approx
$3000crore and total sales annually are worth
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$37crore, half of which comes from beverages and
other half from food division. The beverages arm of
the PepsiCo. Is Pepsi-Cola company and the snack
food company is called Frinto-lay-Inc.

PEPSI THE INDIAN EXPERIENCE

Previously there were three tag “Yehi Hai Right
Choice Baby”, “Nothing Official about It”& “yeh
Dil Mange More” which was immediately ring a bell-
it’s to be a Pepsi. Pepsi in short span of its operations
in India has found a place in hearts and minds of the
Indian consumers. The success has primarily been due
to the innovative and passionate Indian team which
has been built over the years. Pepsi is a trendsetter
managed and run by Indians, where important
decision is taken locally.
Pepsi started its operation in India in 1988in Kanpur
and since PepsiCo. Has set up a fully integrated
operation India viz. manufacturing, research and
development, marketing distribution and franchising –
covering fruit/vegetable processing, export, snack and
food beverages, In 1993 PepsiCo. Set up a holding
company to further accelerate growth through new
initiatives and joint ventures PepsiCo is fully
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committed to India and the national objectives of
development of technology and accelerating exports
and employment. It has invested 500crore in India to
develop the local market. Pepsi has distributed
exclusive franchises in India to bottle its total
products. There 34 bottling plant of Pepsi in India.
Pepsi directly controls some and rest is under various
franchises.

Some special features in Indian scenario

Pepsi has set up a concentrate plant at Channo,
District Sangur, Punjab, with an investment of
55million. The state of the art plant house a world –
class laboratory where soft drinks from all over the
world are tested. This concentrate plant supplies
Pepsi. 7-up teem, Miranda, Orange, Apple & Lemon
flavors to all Pepsi bottling plant in south Asia. Pepsi
has 34 bottling plant in India out of which 8company
are owned and 26 are owned by Indian franchises.
PepsiCo has invested heavily on up- gradation of this
bottling plant and has put 5 green field projects in
backward areas such as Jaipur, Bazapur in U.P.,
Bharuch in Gujrat, and Sonapur in [Link]

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Naclamangala in Kernatka. New project are coming
out Maharashtra and Tamil Nadu.
In addition to the company owned bottling operation
[COBO], Pepsi has 26 Franchises owned bottling
company [FOBO] units in India. These franchises
manufacturers are also planning to install substantial
additional capacities. I last two years PepsiCo’s
franchisees have put up nee bottling plant in Jaipur,
Bhopal, Hajipur [Bihar], Guntur [A.P.] and Guwahati
[Assam] with further investments. PepsiCo
Franchisees are amongst the best in the Pepsi world.

JUICES:
Pepsi Co. plans to launch juices in big way in India,
there by helping the farmer in fruit procurement.
PepsiCo agriculture scientist has undertaken research
on mango, guava and orange and these fruits would
be the priority area for the juices launch in India.
Presently Pepsi has one juisic brand.

EMPLOYMENTS OPPERTUNITIES:
Pepsi provide direct and indirect employment to
person in supplying it’s raw material, packing
materials, distribution vehicles, glass bottle, plastic
carets, display rack, fridge etc. and to small artisans,

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painting and small trader in market places activity. All
the Pepsi business in India is either in industries with
backward linkages with farmer or in service industry
being highly distribution oriented. The Pepsi system
operate over 300 trucks (direct operations), 8000
three wheeler (distributers) and at least 1000 push
carts, serving over half a million outlets in India. By
the year 2005 the no. of outlets to be served are
expected to be doubled.

DEVELOPING SPORTS:
Today Pepsi is one of the main sponsors for sports
related activities in India. It has continued to promote
up coming new players of cricket, football, hockey etc.
Pepsi was the official sponsors of the world cup 2007.
Pepsi has developed a Pepsi cricket academy, which
would develop over 500 young cricket enthusiasts in
next 5 years. Similarly Pepsi cricket coaching camps
and clinics are held to coach young boys in north and
south.

COMMUNITY RELATIONS:
Most of the bottling plant Pepsi is located in backwards
area, there by giving huge employment opportunities
in this area. Pepsi, as responsible company,

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undertakes social project in and around the bottling
plant. These include support to the education centre,
sponsors inoculation camps, providing free health
check up, initiating sanitation, drives, promoting
literacy drives and helping villages to put up bus
shelter etc.

REVENUES GENERATIONS:
It is estimated that PepsiCo, and its franchises
generates over Rs.600crores to the exchequer by the
collection of excise and sales tax.

Chapter 3: Introduction of the organization

3.0 Lumbini Beverage Pvt. Ltd.
3.1 Profile of LBPL
3.2 Organizational hierarchy
3.3 Production process
3.4 Product profile

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LUMBINI BEVERAGE PVT. LTD

Lumbini Beverages pvt. Ltd is franchisee of PepsiCo.
India. Lumbini Beverages pvt. Ltd, a rupees 25crores
unit was promoted by the family of KHILANI in the
year 1996 with the proper infrastructure approved by
PepsiCo Headquarter and the unit went into
production, subsequent and marketing operation from
1997. Mr. Ravi Khilani is MD of this company the plant
has 57 production staff 30 executives and 32 tem
members within marketing and seller functions during

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the pick session i.e. Between April- July, the no. of
production staff at times is increased to take care of
increased production functions.
The unit has capacity of bottling 400-600 bottles per
minute or3000 crates of 24 bottles on a daily basis,
i.e. when production schedule is on through out the
day with three shift production system. The plant
follows international quality audit standard for the
purpose of maintaining quality controls in the quality
of the product because the quality control function, by
far is the most important criteria for purpose of
competing in terms of quality in the contest of the
market competition.
This bottling unit at Hajipur has created a source of
employment for a large no. of population residing in
the Bihar and has also come out with quality/treated
water resources, which is now being thought of
diverting in to near by agriculture sector as an ongoing
source to facilitate of management. This unit in the
year to come should one of the most important
industrial zones in this part of the country and this
reality manufacturing and marketing unit should be a
set of attraction as far as commercial activity are
concerned.

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Profile of LBPL
Company land area : 12 acres
Location and authority : EPIP, Industrial Area,
Hajipur
Name of Director/Occupier : Mr. Charan Khilani
Name of the MD : Mr. Ravi Khilani
Name of CEO : Mr. G.P Singh
Name of FM : Mr. Dhawan
Name of HR manager : N.K Prasad
Industrial license no. : Regn. No. - H
12475(c)
Factory license no.
– 66750/VLI
Date: 16.08.1997
F.P.O. License no.
-10607/97
Capacity : 1500 bottles per
minute

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BEVERAGE PVT. LTD]
Nature of product : Soft drinks, Pepsi,
Mirinda, Soda, Slice,
Aquafina
No. of employees : 200 +150 (max)
seasonal labors
Control board : No. 1877. Date –
07.04.1997

• BOARD OF DIRECTORS
1. Mr. Charan Khilani (Director)
2. Mr. Ravi Khilani (Managing Director)
3. Mr. Manoj Khilani (Plant Director)
4. Mr. [Link] (CEO)
5. Mr. Arun Kumar Singh (TDM, Patna)

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ORGANIZATIONAL HIERARCHY

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The process of manufacturing of aerated water (soft drink) like pepsi
brand product is divided into five main parts such as:-
1) WATER TREATMENT.
2) SYRUP MAKING.
3) BOTTLE WASHING.
4) FILLING.
5) TESTING OF PRODUCT.

WATER TREATMENT
Water treatment is very essential in soft drinks plant as the nature
and quality of 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 having depth of 500m by the help of
motor pump & pipe lines. are connected to the storage tank where
is pre-chlorinated by chlorinator & then by the help of pipeline
comes to a treatment tank called “Coagulation tank” where to this
water, solution of different strength of bleaching powder, ferrous
sulphate, hydrated lime are added through dosing pump to reduce
the alkalinity hardness, kills the bacteria and the pH become
[Link] stripper mixes the chemical & then suspended
matter settles down as sludge& clear water passes to retention
tank. From this tank the water passes through sand filter

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containing fine sand and pebbles & carbon filter containing
granular carbon & finally through the water polisher ,micron
filter, UV lamp to ensure clear & sanitary water for use. Further
water is used in bottle washer &boiler needs softening .For this
purpose, the water from storage tank after passing through two
water filter beds containing fine sand and granular carbon
respectively comes through a bed of resin where it is softened.
This softened water is essential to use in the boiler & [Link]
to reduce scale formation inside the machines.

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Description of the above ray diagram

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Firstly the water should be taken out from the earth through motor
from bore well which is about 500m deep. After that it store in the
underground tank which is also know as storage tank having
capacity of 1.5lakh litre at that time the hardness of water is 6.8
[Link] has two in number. Then it reaches at coagulation tank
having capacity of 80,000 litres in which ferrous, lime and
bleaching powder is there which is used to remove the hardness of
the ground water then it reaches to intermediate tank and after that
it passes through sand filter in which small pebbles and fine sands
are there ,where they remove small particles and transfer to the
ACF i.e. activated carbon filter in which mainly chlorine is used
having volume of 30 cubic meter per gram then it passes through
5 micron cartilage and UV light to remove small microbes.

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SYRUP MAKING
For the syrup making of the particular brand, calculated quality of
sugar, water, activated carbon (powder) & by flow super cell
known as filter aid are taken into a sugar space to enter stream &
also filter by motor with agitated sugar syrup called raw syrup is
prepared by dissolving the sugar with continues stirring and
heating by steam supplied by oil fried boiler. This hot syrup by
the help of pump is filtered through a filter press attached with the
series of quality filter paper to separate out carbon particles. Clear
hot syrup by the help of SS pipeline passes through water P.H.E.
for cooling then another P.H.E. circulated by glycol for further
cooling. The chilled syrup comes to the mixing tank, which is
cleaned and sanitized prior to use. After circulation of sugar
quantity by Brix Hygrometer, concentrate are added and mixed
thoroughly by the mechanical stirrer filter to the tank. This syrup
is known as finished syrup ready to drink the concentration
mainly. The liquid part are also kept in a cold store, the
temperature of the finished syrup is fixed in the room
temperature is also maintained by air conditioner. all the
containers used in the syrup making are cleaned and sanitized by
sodium bi- carbonate, strong chlorine and hot caustic soda
solution.

BOTTLE WASHING

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Bottle washing is an important part in the soft drink plant. The
empty durable and restorable bottles used are returned from
market in plastic crates, and fed to bottle washing machine
(washer). The machine has double end system with circular chain
to carry the bottles. Caustic soda, tri sodium –phosphate, sodium
glyconate are added to the caustic tanks filled in with water
heated by stream supplied by bathe boiler. The empty bottles
enter to the caustic solution and finally washed with water
through spray-jets fitter dared discharged in other end. The
washed bottles after proper inspection are directed to filling
machines through conveyor. Cleaning and smooth running of
chain carrying bottles. SU-260 and SU-773 are used for bottle
cleaning, shinning and mold removing concentration.
FILLING
Finished syrup and treated water lime are concentrated to a dosing
pump, which mixes syrup and water in the ratio of 1:5 and syrup
mixed with water enters to carbonate tank to mix with carbon di
oxide gas., which are preserved in cylinders for use. The cylinder
is connected through carbon di oxide pressure and temperature of
liquid; we use recording control (Taylor). The syrup passed
through PHE that is cooled itself by the circulation of chilled
glycol supplied by chilling compressor. To run the machine for
chilling F-22 gas is used. The syrup being chilled easily mixes
with carbon di oxide and enters to filter for billing .The filter is
fitted with filing valves and lift cylinders. The lift cylinders

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function pressure of air supplied by an air compressor. The syrup
known as beverages in this stage is filled in the cleaned bottle,
which ar4e durable in the nature and returnable by the buyer. By
the filling machine by a counter pressure of carbon di oxide gas.
After beverages is filled in bottle goes it goes to the crowner
where with the help of crown corks the bottle are sealed(crowned)
to protect the carbonation, flavor outside contamination and
spoilage. The finished product are coded decoding machine and
inspected properly by inspection light while passing through the
conveyor fitted with SS chains. The empty plastic rated passing
through a conveyor enter to crates, which are durable in nature
and returnable by buyer, put on plates and sent shipping for
shipment. The entire container in contact with syrup are properly
cleaned and sanitized by soda-bio-carb, hot water, hot Caustic
soda solution and strong chlorine base.

TESTING OF PRODUCT
Finally the finished syrup during bottling is tested in laboratory to
meet the parameters and also to get the standard and quality
product. To maintain the standard and uniformility in products,
the sugar contents and carbonation in the filled bottle are checked
in regular intervals by Brink hydrometers refract meter and
pressured gauge. A digital pH meter tests the pH. Electronic
digital balance is used to the weight chemical to conduct test in
the lab. The purity of carbon dioxide is checked by a carbon
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dioxide purity tester. The microbiology test of the products and
water used in syrup making and production are also done to
ensure that the product is free from any bacteriological
contamination. To conduct the micro test, hot sterilizer incubator
autoclave, pads filler membranes are product used. the diesel
generator is operated in case of electricity failure for smooth
operation of the plant and for drawn electricity from the state
electricity board the transformer is used.

• RAW MATERIAL INPUTS :-

A soft drink bottling plant the following things as a raw
materials:-

 Sugar

 Flavor

 Water

 Carbon di oxide

 Crown cork

 Glass bottle

 Plastic crate.

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Sugar
High purity crystal sugar is required to produce the sugar syrup for
soft drink. The main supplier of sugar for Lumbini beverages Pvt.
Ltd. is M/s KCP [Link]. The usual requirement of sugar is
around 800 gm par carat for all flavors.
Flavor
Pepsi food Ltd. is supplying all essence of flavor for Lumbini
Beverages Pvt. Ltd. from their plant Chennai, Bhavnagar (Punjab).
Water
The required water of Lumbini Beverages Pvt. Ltd. is being met
from the high yielding deep boring well with pumps. Adding
softening plant & DM Plant so as to meet the required quality of
water then treats the raw water taken out from these well. Water
quality is being strictly adhered through regular sampling &
analysis.

Carbon dioxide
Carbon di oxide gas of required purity is being carried on from
Hindustan Gas India Ltd. and also from IOC Patna and Barauni, as
per requirement of flavor. The usual consumption of carbon di
oxide is 1 kg per 10 carats in case of Pepsi, 1 kg per 5 carats of
Soda water and the rest flavor 1 kg per 114 carats.

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Crown Cork
Lumbini Beverages Pvt. Ltd. takes crown cork from Manksic
Crown Ltd., Bhopal and Ghaziabad respectively.
Glass Bottle
Lumbini Beverages Pvt. Ltd. takes flint and green glass bottle
from Hindustan National Glass Ltd. Tapovan (Hrishikesh).
Plastic carats
Lumbini Beverages Pvt. Ltd. takes plastic crates from Neelkamal
Plastic Ltd., Nasik and Supreme Industries Ltd., Nasik.

PRODUCT PROFILE

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3.5 SWOT ANALYSIS
After doing 8 weeks field work and survey I can take it out the
SWOT analysis for Lumbini Beverages Pvt. Ltd. and Pepsi Brand.

• Strength

• Lumbini Beverages Pvt..Ltd. is Franchisee Owned

Bottling Organization (FOBO) of world’s famous cold
drink company Pepsi.

• LBPL uses state art and fully automatic machines and

technology for the production and bottling of the soft
drink.

• It has a very strong network and built market and

currently holds all the parts of the state.

• It has wide range of product varieties & takes back

breakage, burst bottles etc.

• Though it has strong brand equity, brand image , it can

survive in the most competitive situation.

• It has built market & market share and holds more %

with respect to its competitors.

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• Customer retention and satisfaction after sales is good.

• Weakness

• No cost cutting program for the products.

• Promotional activities in the rural market are not up to the

mark as compared to the urban market.

• Brand Pepsi in the 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.

• Lacking of communication with retailers.

• Timing of distribution is not very good.

• The cooling system is not distributed properly.

• 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

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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
lime juice. We can change the flavor in order to meet
different taste of different people.

• New innovative idea for advertisement like road show

like “ bheja fry 7up try” & mountain dew campaign

• Threats

• As to the threats, all of us know that Pepsi-Cola and

Coca-Cola have the completion for about 80 years.
Although Pepsi-Cola have won several times during this

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completion. The market share of Pepsi-Cola is a little bit
smaller than Coca-Cola.

• There is another threat nowadays, some local cold drinks

such as sudha dairy and anuj dairy cola have takes their
feet in the market.

• One of the products of their competitors in clear lime and

lime flavor as a very good in market share due to its taste.

• Coca-Cola is now spending more & more to boost up the

market share & sale.

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Chapter 4: Marketing Strategy &

Distribution Channel
4.0 Marketing strategy
4.1 Marketing mix
4.2 Promotional activities
4.3 Advertising & sales promotion L.B.P.L
4.4 Merchandising policy
4.5 Distribution channel of LBPL

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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 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

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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 stalwart’s 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, also organized many national and international
sports events to attract the young generation.

MARKET MIX OF L.B.P.L

The set of controllable tactical tools:
A product, place, service and promotion (4p’s) 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.

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 Place: - It performs various functions like transportation,
warehousing, channel management etc. so the products
easily reach the consumer.
 Promotion: - The firm carries out a no. measure 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.

4P’s policies of the Pepsi products:

1. Product: - There are five lines of products of soft drink in
India that is almost matched with international quality product
line.
 Pepsi - 200 ml, 300ml, 600ml. and 2000 ml.
 Miranda - 200 ml, 300ml, 600ml. and 2000 ml.
 7 up - 200 ml, 300ml, 600ml. and 2000 ml.
 Mountain Dew - 200 ml, 600ml. and 2000 ml.

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 Slice - 250 ml, 500ml, and 1000 ml.
2. Price: - Product price are fixed by Pepsi Co India according to
competitors product price.
3. Place: - Pepsi has a strong channel of distribution, and
intermediaries command the distribution work.
 Plant - Depot - Distributor - Consumer.
By this simple distribution, Pepsi is doing well. The company
is trying to reach every remote village area. The company has
succeeded to some extent in reaching its target.
3. Promotion :- In the specific, sales promotion methods are
those sales activities that supplement both - personal selling
and advertising and co-ordinate them and help to make them
effective such as display, shows and exposition and
demonstrations and other recurrent selling efforts not in
ordinary route.
Pepsi has variety of tools and techniques of sales
promotion. Like for example sales promotion letters, catologs,
point of purchase (POP), display, customer service program
and demonstration of free sample.
PROMOTIONAL ACTIVITIES (FOR RETAILERS)

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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 personal selling,

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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.).

VISI COOLAR DISPLAY,OYE BUBBLY CAMPAIGN

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MS DHONI, SHAHRUKH, DIPIKA

MEANING AND OBJECTIVE OF SALES
PROMOTION

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BEVERAGE PVT. LTD]
SL. Sales
Mean
ing Ob
jective
No Prom
otion
O fferingproduct at lower T oencourageim mediate
1 Priceoffoffers thanthenorm alprice sales, attract nonnusers,
inducenewproducttrial.
offeringm ore quantityof Toencourage longer
the sam e product at no durationconsum ption,
extra cost or a very highestorexcessquantity
Quantityoff
2. nom inal increase inthe m ovem ent fromthe
offer
price the larger quantity factory, trade up
pack. consum er for higher
quantitypackssize.
Offer of anarticle of T oencourage purchase
merchandise as an stim ulate loyalty, off
3. Prim
ium incentive inorder tosell seasonsales prom otion,
product ofservice inducetrialofpremiumto
theconsum er.
W henthe consum er is toencourage product
entiledtoredeemspecific trial, buildloyalty
, trade
standeardcertifecatefor a upregularusersstim ulate
product free or inpart re-purchase rate, solicit
paym ent. Coupons are enquiries.
usedbybot ht he
m anufacturers andthe
4. Coupans
dealers for sales
prom otion. Coupons m ay
be distributedbye-m ail,
bym edia advertisements,
door-to-door. Inside
product package or by
dealersonpurchase.
W henindividuals are Tocreate brand
invitedtocom peteonbasis aw areness andstim ulate
ofcreativeskills. Thelatter interest inthe brand
isbasedonthechanceor acquaint consum ers w ith
C onsumer luckfactor. brandusageandbenefits
5. contestsand buildtraffic at the store
luckydraw s precipitate brand
purchase. Obtain
consum er feedback,
pjrom ote advertisim ent
them eofthecom pany .
O ther thannormal trade T opushm ore sales to
6. Discounts
andcashdiscounts. tradeearlycashrecovery
Those special displays, T oattract traffic at the
racksbanner, exhibits, that retail stores, rem ind
Point-of-
are placedinthe retail custom ers, encourage
7. Purchase
storetosupportthesaleof im pulse buying, ensure
(PO P)
aabrand. visibilitytotheadvertising
cam paign.

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ADVERTISING & SALES PROMOTION IN LBPL

Advertising and also 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
programmers 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.
The sales used L.B.P.L. for fulfilling the various purposes
for its promotional activities are the following:-
 Food ‘N’ Fizz

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 Space Club
 Payaas bujyhao profit badhao
 Agreement
 GOD(Glass on deposit)
 Displaying equipments
 Scratch card, lucky draw & prize.

MERCHANDISING POLICY
In today’s fast moving industry and highly competitive market,
only those products are likely to be purchased which are
capable of hitting the impulse of the consumers. The products
appeal should be able to penetrate and get embedded into the
perpetual space of the consumer’s mind. The concerned
product should induce to the consumers. Pepsi believes that
“Jo Dikhta Hai Wahi Bikta Hai” i.e. any product which is
visible is bound to be sold.

METHODS OF MERCHANDISING
 Visi cooler placement
 Glow signboard

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 Paintings
 Crate Stacking
 Umbrella
 Banners
 Display
 Special Schemes

DISTRIBUTION CHANNEL OF “L.B.P.L

To make its products available at the right place, at the right
time in the market, at the right place, the sales department of
the company plays major attention towards controlling the
channel of distribution.
The company right from its beginning stage maintains single
type of marketing channel. The nature of channel is as follows:

COMPANY

DEPOT

DISTRIBUTORS


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RETAILERS

CONSUMERS

ABOUT DISTRIBUTORS
At first, soft drink is supplied to distributors. Retailers cannot
take the delivery directly from the company. They have to take
it from their respective or nearest distributors. The distributors
selected on the basis of assurance given by them regarding
minimum sales, which they have to maintain annually. The
selection is also done on the financial position and reputation
of distribution in the market. As for example, first priority is
given to those people who are in cigarette business. Depending
upon market, each distributor in its initial stage, deposit some
security money. This amount varies between five thousands to
the thousand. The distributors, at first have to seek the
permission of the sales department for the number of cases of
soft required by them. After getting the proper authority from
the sales department, they take the delivery from the shipping
department paying the requisite either in cash or as demand
draft.

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The distributors can be dropped if they fail to achieve the
required target to sales. They can be also dropped when they
don’t follow the instructions given by the company or when
they charge high price or when they are engaged in black
marketing, loading etc. But the company has not dropped any
of its distributors till now.
The supply of soft drinks to the distributors depends upon the
ups and downs in the sales. But, in the initial stages, the
distributors have to sell up to a minimum target set by the
company or as decided by an agreement between the company
and the distributors. In the last stages soft drink is supplied as
and when demanded by the distributors.

ABOUT RETAILERS
The distributors select the retailers. There is no relation
between the company and its retailers. On the other hand there
are no definite and fixed criteria for the selection for
appointment of retailers from the side of distributors. Any one
like “Panwala”, “Cigarette shop” or any other shopkeeper can
have the stall for the sale of soft drinks and they are called or

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dealers. They have to give assurance to the concerning
distributors for better sales and at the time of taking delivery
they have to deposit the security that is the change for the
empty bottles with specified purchasing price.
Generally, there is no compulsion on the part of distributors to
provide the transportation facilities to their retailers, but the
distributors of the big areas like Patna, Muzzaffarpur, Patna
provides the transportation facilities to their respective
retailers. The distributors and retailers are independent to sell
as they want but are controlled to some extent by the company
also, as they have to give some assurance regarding minimum
sale. It happens so because they are given some incentives also.
They are fully independent to gear up the market, as they want.

Chapter 5: Product Performance of Pepsi

5.0 Training product comparison
5.1 Product availability
5.2 Pricing of products
5.3 Pepsi Performance in comparison
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Comparative Products

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Major CSD Brands
SL.-
No.
Flavor PCI CCI

Coca-Cola,
1. Clola Pepsi
Thums Up

2. Clear Lime 7 Up, Mountain Dew Sprite

3. Cloudy Lime Mirinda-Lime Limca

4. Orange Mirinda Fanta

In above table, I have shown product target in the market. Both

companies try to substitute each other product in the market.
When a company don’t fulfill the demand of market then other
company substitute that product with own product. In the
market many time seen that consumer demand a product
according to his desire, but due to lack of supply he switch
over of substitute product. So, companies always want with
substitute product for enlarging his market share.
Here, Thums Up and Coca-Cola is substitute for Pepsi, Sprit
is substitute for 7 Up and Mountain Dew, Fanta is substitute
for Mirinda & Limca is substitute for Miranda Lime.

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Products Availability of Pepsi

[Link] Products 200ml 250ml 300ml 330ml 500ml 600ml 1000ml 1200ml

2000ml

1 Pepsi √ − √ − − √ − −

2. Pepsi diet − − − − √ − − −

3. Pepsi Gold − − − − − √ − −

4. Mirinda √ − √ − − √ − − √

5. Mrinda Lime √ − − − − − − − −

6. M. Sorbet − − − − − √ − − −

7. 7 Up √ − √ − − √ − − √

8. M. Dew √ − − − − √ − − √

9. Pepsi Can √ − − √ − − − − −

10. 7 Up Can √ − − √ − − − − −

11. Mirinda Can − − − √ − −

− − −

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12. M. Dew Can − − − √ − − − − −

13. Diet Can − − − √ − − − − −

14. Slice − √ − − √ − − √

15. Aquafina − − − − − − √ −

16. Tropicana √ − − − − − √ −

17. Everest Lehar − − − − − √ − − −

Pepsi Products Price list for Retailers

[Link] Products 200ml 250ml 300ml 330ml 500 ml 600ml 1000ml 1200ml

2000ml

1 Pepsi 168 − 214 − − 454 − −

4 27

2. Pepsi diet − − − − 454 − − − −

3. Pepsi Gold − − − − − 567 − −

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4. Mirinda 168 − 214 − − 454 − −

4 09

5. Mrinda Lime 168 − − − − − − − −

6. M. Sorbet − − − − − − 567 − −

7. 7 Up 168 − 214 − − 454 − −

4 09

8. M. Dew 168 − − − − 454 − −

4 09

9. Pepsi Can − 330 − 564 − − − − −

10. 7 Up Can − 330 − 564 − − − − −

11. Mirinda Can − − − 564 − − − − −

12. M. Dew Can − − − 564 − − − −

13. Pepsidiet Can − − − 564 − − − −

14. Slice − 214 − − 498 − −

500 −

15. Aquafina − − − − 454 − 100 − −

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16. Tropicana 327 − − − 4 68 − 7 44

− 4 64

17. Everest Lehar − − 108 − − 264 − − −

Pepsi Products Price list for Customers

[Link] Products 200ml 250ml 300ml 330ml 500 ml 600ml 1000m 1200ml

2000ml

1 Pepsi 7 − 10 − − 20 −

− 48

2. Pepsi diet − − − − 20 − −

− −

3. Pepsi Gold − − − − − 25 − −

4. Mirinda 8 − 10 − − 20 − −

48

5. Mrinda Lime 8 − − − − − − −

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6. M. Sorbet − − − − − 25 − −

7. 7 Up 8 − 10 − − 20 −

− 48

8. M. Dew 8 − − − − 20 − −

48

9. Pepsi Can − 15 − 25 − − − −

10. 7 Up Can − 15 − 25 − − − −

11. Mirinda Can − − − 25 − − − −

12. M. Dew Can − − − 25 − − − −

13. Pepsidiet Can − − − 25 − − − −

14. Slice − 10 − − 22 − − 45

20

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15. Aquafina − − − − 8 − 13 −

16. Tropicana 15 − − 22 − − −

70 −

17. Everest Lehar − − 5 − − 12 −

− −

Coca-Cola Products Price list for Customers

[Link] Products 200ml 250ml 300ml 330ml 600ml 1000ml 1200ml

1500ml

1. Coca-Cola 7 − 10 − 20 − −

43

2. Thums up 7 − 10 − 20 − −

43

3. Sprite 7 − 10 − 20 − −

43

4. Fanta 7 − 10 − 20 − −

43

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5. Limca 7 − 10 − 20 − −

43

6. Maaza − 10 − − 25 − 45

7. Coca-Cola Can − − − 20 − − − −

8. Thums Up Can − − − 20 − − −

9. Sprite Can − − − 20 − − − −

10. Fanta Can − − − 20 − − − −

11. Coke Diet − − − 25 − − − −

12. Kinely Soda − − 5 − 12 − − −

13. Kinely − − − − − 15 − −

14. Fruit Jucie ΝΑ − − − − ΝΑ −

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[Link]. Months 2007
2008

Τ arget Achieved
% Target Achieved %

1. Μ arch 70,000 60,000 85.71 85,000 73,000 85.88

2. Α pril 85,000 65,000 76.47 1,00,000 88,000 85

3. May 1,05,000 72,000 68.57 1,25,000 1,06,250 85

4. June 68,000 67,000 98.53 1,05,000 75,000 76

Τ otal 32,800 26,400 − − − −

0 0

1 2 0 1 0 5
1 0 0 8 5
7 2 6 8
8 0 7 0 6 7 6 7
6 0 6 5
5 5
6 0 4 0 4 5
4 0
2 0

0
T a r g e t ( 0 0 0 )
J a n F e b M a r c h A p r il
2 0 0 6 A c h i e v e
M o n t h s 2 0 0 7 A c h i e v e
After comparing these two year data I have reached this calculation
that this year Pepsi team of Patna have preformed very well in

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compared to last year. This In Patna Pepsi investment is very short in
comparing to coke but selling graph show Pepsi Market share
increased in compare to last year.

CHAPTER 6: DATA ANALYSIS AND INTERPRETATION

6.0 Interpretation of outlets
6.1 Market share
6.2 Market share of different soft drinks
6.3 Market share of equipments
6.5 Percentage share of glow sign board
6.6 Percentage of satisfied distributors

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INTERPRETATION OF OUTLETS

TPYES OF OUTLETS

1 0 O t h e r

9 P h o n e b o o t h s 1 G e n e r a l / K i r a n a

8 I c e - c r e a m /
I c e - c e n t e r s

7 c o l d d r i n k s
c e n t r e
7 C in e m a H a ll

5 H o t e l
2 s w e e t s h o p
4 R e s t a u r a n t s

3 P a n s h o p

Interpretation : Many types of retailers in the market to sell

the pepsi & Coke products I have taken that list form company &
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classified that shops according to company guidelines. General &
Kirana stores are measure thing for company because their share in
one - third So company always try to make good relationship ship
with them because 20% sell come form them.

MARKET SHARE Over all market share of the cold drinks

cos. in Patna

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SL. No. Companies Name Total (%)

1. PCI 26

2. CCI 38

3. Parle agro 8

4. Amul 8

5. Other Local Player's 20

Total (%) 100

PCI
CCI
Parleagro
Am ul
Other

Interpretation: PCI market share is little bit short in comparing to

Coke for enlarging more market share PCI will have to invest more
in the market and it advertisement.

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Over all market share of PCI & CCI in Patna

2 0 % 1 7 %
1 5 % P C I
1 5 % 1 3 % 1 2 %
1 0 % 1 1 %
1 0 % 9 %
8 %
C C
5 % 4 %
1 %
0 %
C o la C l e a r C l o u d Oy r a n g M a n g o
L i m e L i m e

Interpretation :- On the basis of my collected data in Patna cold

drink market I have reached this stage that I can show overall market
share of all cold drink flavor.

MARKET SHARE OF DEFFERENT SOFT DRINKS

The Cola Market:
Product % Share
Pepsi - Cola 42 %
Coca-Cola 13 %

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Thumps Up 45 %
Total 100 %

Market Share (%)

Pepsi-Cola
Coca-Cola
ThumpsUp

Interpretation: There is dominancy of Thums Up in the cola

segment of soft drinks in the market. Pepsi is its competitor.

The orange flavored soft drinks:

Product % Share
Mirinda 52 %
Fanta 38 %
Other 10 %
Total 100 %

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Diff. orange flavor market share

Mirinda
Fanta
Other

Interpretation: The Graph shows that there is a majority of

customers of Mirinda Orange flavor in the market. It dominates the
market over Coca-Cola’s product Fanta.

Clear Lime Market share :

Product % Share

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7 up 45 %
Sprite 55 %
Total 100 %

Market Share of clear lime

Dabur Real
Tropicana
Godrej
Others

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Interpretation : There is great dominancy of Sprite in the
market. Customers always demand. They take 7 Up only as a
substitute of that.

Mango flavor market share :

Product % Share
Slice 30 %
Maaza 40 %
Frooti 30 %
Total 100 %

Market Share of Mango flavor

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PCI
CCI
Slice 3

Interpretation : The Graph shows that there is a majority of

customers of Maaza (mango) flavored in the market. It dominates
the market over Pepsi’s product Slice.

Market share of Juice

Product % (Share)
Dabur Real 62 %
Tropicana 20 %
Godrej 8%
Other 10 %
Total 100%
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Market share of Juice

Dabur Real
Tropicana
Godrej
Others

Interpretation : The Graph shows that there is a majority of

customers of Dabur real Juice in the market. It dominates the market
over Pepsi’s product Tropicana.

PERCENTAGE SHARE OF CHILLING EQUIPMENTS :

Percentage Share of VISI Coolers :

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Company No. (%)
PCI 26 1.60
CCI 1450 89.17
Own 150 9.23 %
Total 1626 100 %

Market Share of Visi Cooler

O w n 9 . 2 3 %

C C I 8 9 . 1 7 % %

P C I 1 . 6 0 %

0 . 0 0 2 %0 . 0 40 0 % . 0 60 0 % . 0 80 0 % . 0 1 0 0 %0 . 0 0 %

Interpretation : From the above diagram, it is clear that 89 % of

Vist cooler is of Coca-Cola while 1.6% is that of Pepsi and own is
9.23 %.

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PERCENTAGE OF GLOW- SIGN BOARD
Company No. %
PCI 50 17 %
CCI 250 83 %
Total 300 100 %

% of Glow board

PCI
CCI

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Interpretation : From the above diagram it is clear that 17 % of
glow sign board is of Pepsi while 83 % is that of Coca-Cola.

PERCENTAGE SHARE OF SATISFIED DISTRIBUTORS :

Company No. of distributor Satisfied
(%)
PCI 06 04 31
CCI 10 09 69
Total 16 13
100%

Distributors Satisfication (%)

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PCI
CCI

Interpretation :- During my training and research I have found

Pepsi distributors are not satisfied like Coke distributors.
During my four month’s research two distributors had quit to
company due to some mis-understanding.

Chapter 7: Market survey

7.0 Research methodology
7.1 Dealer survey
7.2 Limitations of the research

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RESEARCH METHODOLOGY:
All the findings and conclusion obtained on the survey done in
the working area. With the limit, I tried my best to select the
sample representative of the whole group. During my job
training I maintained different routes during my dealer survey.
I have collected data from the Depot of Patna under the
organization itself.
Data-sources

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Retailers/Dealers (Cold drinks stalls, Ice stalls, Hotels,
Restaurants Sweet shop, Pan Shop, General Stores, Telephone
Booths etc.) Depot internal Company’s Records etc.
Research - approaches
Survey
Research - instrument:
Interview Schedule
Sampling - plan :
Sampling unit Distributor Retailer
Sampling size 02 250
Sampling procedure :
Census survey
Contact method
Personal interview

Secondary Data Collection :

The secondary data was collected on the basis of organizational
files, official bulletins and records, official journals, published
data in the annual general report and through various preserved

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information in the data base at the Pepsi sites e.g.
[Link], [Link] etc.
Primary Data Collection:
All the dealers/ retailers were personally visited and
interviewed. There was a format for collecting the details of the
dealers. The format was filled by taking the information from
the dealer of by monitoring the shops.

DEALER-SURVEY
Dealer-survey, as the word indicates, is the survey of every
dealer of soft drinks in the area. For our practical purpose, the
dealer not only includes the authorized dealers, but it also
includes all the retailers-big or small grocery shops, stationery,
restaurants, beetles shop etc., besides these, the various
exclusive stalls and sales of pantry cars are also included in it.
In a nutshell, by dealer survey, I mean who is dealing with the
soft drink in someway or the other in large or small quantity
directly or indirectly.
Thus, my study includes all such dealers, which includes
following aspects:

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 No of routes covered by Depot
 Crate strength
 Per day sale
 Chilling ad
 Advertising
 Nature of outlet
Schemes of Pay-off
I had to visit each and every outlet and personally interview
them. In order to know the market share of Pepsi and its
competitors, I have conducted a survey ap Patna and its
surroundings area. By the help of survey, I can find out the
reason behind non-availability of Pepsi in the specified area.
The knowledge of case-stock indicates our “case-in-trade” and
that of competitors. This will indicate our “case-velocity”,
which will help to plan our bottle as whether our distribution is
effective or not. If my case-stock is low then I may decide for a
“case stocking campaign”. Feedback from market place
regarding servicing of dealers will help us to improve our
service in the lacked areas.

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Therefore, appropriate marketing strategy can be worked out
depending upon the findings. Some more uses of Dealer-
Survey:
Depot-effectiveness
The Survey can improve the distribution network in these
ways:
 Immediate activation of non-buyers
 Improve the dealer coverage
 Increase the realignment of routes
 Better control through route card
They should visit the counter on the daily basis including the
remote places.
 Salesman should visit the counter on likely basis.

Market knowledge:
Dealer-Survey gives the total profit of the market by following:
 Location of dealers
 The type of dealer
No of dealers who keep Pepsi, Coca-Cola and comparing the
stock,

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The marketing inputs with respect to
 Advertising
 VISI Cooler
 Servicing

Training group for future executives:

Good investigators from these surveys can be recruited to take
up future jobs. These people will be ideally suitable, as they
would know the market thoroughly.

LIMITATIONS OF THE RESEARCH

It was not possible to thoroughly understand the different
marketing aspects of soft drinks in a span of two months.
The survey was conducted in the peak season when the sale
was too high, by this I cannot get the appropriate result.
Money- as no stipend was given; it was difficult to cover a
wide area.

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All the work was limited in Patna area, so the findings should
not be generalized. The finding of survey will be strictly based
on the response of consumers, retailers/dealers, since it is
difficult to ascertain the authenticity of their statement.

Chapter 8: Conclusion & Suggestion

Conclusion
Suggestion

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CONCLUSION
(1) The whole analysis shows that are only two companies
dominating in the soft drinks market - Pepsi- Cola & Coca -
Cola. There is neck-to-neck competition between these two
companies.
(2) Coke has invested more in the market. Distribution of - VISI
Coolers and display of Glow Signs board is far more than

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Pepsi. So, more investment is needed to break the brand
establishment of Thums Up and Sprite.
(3) In all the areas in Patna, almost all the retailers are not satisfied
with the distribution network of the Pepsi products.
(4) Most of the retailers want glow signboard chilling equipments,
which they are asking from long time.
(5) In Cola segment, Thums-up and in lime segment, Sprite is the
main competitor of Pepsi.
(6) Most of the consumers don’t like the taste of Pepsi due to its
sweetness and low fizz.
(7) All the products of Pepsi like 7 up & Slice are not provided
when the retailers demand it.

SUGGESTIONS
(1) Pepsi should come out with an advertisement, which can block
the customers’ mind and can change the customer’s perception
about the product.

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(2) Pepsi is sweet and low fizz soft drink that everybody knows, so
lots of people do not like, therefore to catch the customers,
Pepsi should come with more fizz like Thums-up.
(3) Executives should take the feedback from the service of the
salesman and the distributors.
(4) Salesman should have better interaction with the retailers
which results in by company from time to time.
(5) The criteria to provide Glow Signboard, Flax board, VISI
Cooler, and OYC should be changed and a separate
department should handle this.
(6) All the Pepsi products should be provided at required level to
snatch the competitor’s market e.g. 7 up for Sprite, Mirinda
for Fanta and Slice for Mazza which is dominating the market
at present.

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ANNEXURE
Glossary of Terms
Questionnaire
Bibliography

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GLOSSARY OF THE TERMS

FOBO - Franchise Owned Bottling Operation.

COBO - Company Owned Bottling Operation.
FMCG - Fast Moving Consumer Goods.
MNCs - Multinational Companies
MMM - Master of Marketing Management.
GOD - Glass on deposit
RBG - Return on bottle glass.

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QUESTIONNAIRE
Name of the
outlet: .........................................................................................
..
Address: ..............................................................................................
..............
1. Q. Which brand of soft drinks you deal in?
(a) Pepsi-Cola (b) Coca-Cola
(c) Both (d) Other
2. Q. Which brand of cola provides you better facility?
(a) Pepsi-Cola (b) Coca-Cola
(c) Both
3. Q. How many crates of Pepsi-Cola & Coca-Cola you sell/day?
(a) 0-1 crates (b) 1-2 crates
(c) 2-3 crates (d) 3 & above
4. Q. Which company’s signage you have in your outlet?
(a) Pepsi (b) Coca-Cola

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(c) Both (d) No signage
5. Q. Which type of Signage in your outlet?
(a) Flex-Board (b) Dealer Board
(c) Glow Sign Board (d) Both
6. Q. Which company’s Visi - cooler & Oye you have in
your outlet?
(a) Pepsi-Cola (b) Coca-Cola
(c) Both (d) Own
7. Q. In your opinion which medium is more effective for the
sales advertisement?
(a) Television (b) Magazines/Newspapers
(c) Display (d) Wall paintings/Hoardings
8. Q. Do you think aggressive advertising further help you it
increase the sales volume of Cola?
(a) Yes (b) No
9. Q. What kind of promotional activities do you like most?
(a) Free bottle scheme (b) Prize
(c) Discount Crates (d) Other ............
10. Q. Your recommendation for further sales improvement in
your locality?

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.....................................................................................................
.....
11. Q. Give me two suggestions for betterment of Pepsi-
Cola?
(a)....................................................................................
(b)....................................................................................

Thanking
you

BIBLIOGRAPHY:

 Prof. A.K. Basu (Faculty Guide)

 Mr. Arun Kr. Singh (TDM)
 Mr. Binay Kr. (DEPT TDM)
 Mr. Banwari Shukala (CE)
 Marketing management (Phillip Kotler)
 Marketing Management (DEP. APP. ECO. & COM)
 Research Methodology (C.R. Kothari)
 Research Methodology (A.K. Singh)
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 Business Research Methodology (DEP. APP. ECO. &
COM)

WEBSITES:
 [Link]
 [Link]
 [Link]
 [Link]
 [Link]
 [Link]
 [Link]

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