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PepsiCo Beverages: Sales & Marketing Analysis

The document provides an overview of research methodology and design used in a study on the beverage industry. It includes an exploratory research design using a literature survey. Secondary data was collected from internal company sources like websites and catalogs, as well as external sources like business magazines, newspapers, and journals. An introduction section gives background on PepsiCo, including its founding, products, revenue, employees and expansion over time. A section on beverages discusses the history of soft drinks from the late 1800s and brands introduced in India in the 1970s-80s.

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Shobhit Goswami
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0% found this document useful (0 votes)
13 views37 pages

PepsiCo Beverages: Sales & Marketing Analysis

The document provides an overview of research methodology and design used in a study on the beverage industry. It includes an exploratory research design using a literature survey. Secondary data was collected from internal company sources like websites and catalogs, as well as external sources like business magazines, newspapers, and journals. An introduction section gives background on PepsiCo, including its founding, products, revenue, employees and expansion over time. A section on beverages discusses the history of soft drinks from the late 1800s and brands introduced in India in the 1970s-80s.

Uploaded by

Shobhit Goswami
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

CONTENTS

SR No. Topics Page no.

1 Objectives 1

2 Research methodology 2

3 Introduction 5

4 About beverages 7

5 Company profile 8

6 Mission and vision 13

7 Beverages retail 18

8 Quality policy 21

9 HR practice 22

10 Literature review 23

11 Data Analysis and Interpretation 27

12 Conclusion 32

13 Limitations 33

14 Findings 34

15 Suggestions 35

16 Bibliography 36

0
OBJECTIVE

To study the co-relation between sales and advertisement expenditure.

To study the segment wise sales of Pepsico beverages..

1
RESEARCH METHODOLOGY

The definition of research methodology is the process used to collect data and other types of
information for use in making business decisions. Examples of this type of methodology
include interviews, surveys, and research of publications. All of these types include the use of
present and historical information. When someone is doing theoretical work, paradigims can
be used to satisfy most of the criteria that are set forth for methodology. The use of paradigms
work because they are a constructive frame work.

Research in common parlance refers to a search for knowledge. Once can also define
research as a scientific and systematic search for pertinent information on a specific topic. In
fact, research is an art of scientific investigation. The Advanced Learners Dictionary of
Current English lays down the meaning of research as a careful investigation or inquiry
specially through search for new facts in any branch of knowledge.

RESEARCH DESIGN

A research design is the plan of a research study. The design of a study defines the study type
(descriptive, correlational, semi-experimental, experimental, review, meta-analytic) and sub-
type (e.g., descriptive-longitudinal case study), research question, hypotheses, independent
and dependent variables, experimental design, and, if applicable, data collection methods and
a statistical analysis plan. Research design is the framework that has been created to seek
answers to research questions.

Exploratory Research Design:

The exploratory study is particularly helpful in breaking broad and vague problem into
smaller, more precise sub problem statements. Exploratory studies help in formulating
hypotheses for the further research.

Literature survey:

One of the most economical and quickest ways to discover hypotheses is through a literature
search. For this purpose, large volumes of published and unpublished data are available.

2
Research Design

Exploratory Research Design

Literature Survey

B: Data Collection Design

Data Type

There are mainly two types of data are available; Primary data and Secondary data,

I conducted my study mainly based on the secondary data. That is collected .

Secondary Data:

Secondary data is that data which are collected for some earlier research work and are
applicable in the study the research has presently undertaken.

Depending upon the gathering sources, secondary data can be divided into two
categories-
i. Internal data:
Internal data is procured by the research in normal operations within his own
premises.

Companies websites
Company catalogue
ii. External data:
External data are generated and collected from variety of events and sources outside
the firms premises.

Business magazines

3
Various newspapers
Journals
Various books

Secondary Data

Internal Data External Data

Various internal Indexes, Commercial


reports of the firm. sources etc.

4
INTRODUCTION

Type Public (NYSE: PEP)

Founded 1965

Headquarters Purchase, New York, USA

Key people Indra Nooyi, Chairwoman, President & CEO

Industry Food and beverage

Products Pepsi Tropicana Products Gatorade


Lay's Doritos Frappuccino (for Starbucks)
Mountain Dew

Revenue $39.474 billion USD (2014)

Operating income $4.551 billion USD (2014)

Net income $5.591billion USD (2014)


11% profit margin

Employees 153,000(2012)

PepsiCo's beverage business was founded in 1898 by a pharmacist named Caleb Bradham who
created a special beverage, a soft drink, in the back room of his drug store in New Bern, North
Carolina.

This new soft drink called "Brad's Drink" had a unique mixture of kola nut extract, vanilla and rare
oils.

Caleb began to advertise his new creation with the theme "Exhilarating, Invigorating, Aids Digestion"
and renamed it as "Pepsi-Cola."

Caleb Bradham began his cola operation in 1902. The Pepsi Cola Company was headquartered in the
back room of his drug store where he packaged the syrup for sale to other soda fountains. The
business increased, and on June 16, 1903, "Pepsi-Cola" was officially registered with the US Patent
Office.

And as a result, Caleb Bradham began to franchise Pepsi-Cola to many independent investors. By the
end of 1910, Pepsi-Cola was franchised in 24 states.

5
Until World War I, Pepsi-Cola Company achieved 17 years of success and a new theme was
introduced, "Drink Pepsi-Cola. It will satisfy you."

However, after the war years, Caleb Bradham suffered bankruptcy. As a result, Pepsi-Cola became a
subsidiary to Loft Incorporated, a large chain of candy stores and soda fountains.

Today, Pepsi-Cola Company is a major division of PepsiCo's corporate structure. Pepsi-Cola


Company now produces and markets a wide range of beverages to retail, restaurants and food services
in more than 191 countries and territories around the world and brings in an annual revenue of $10
billion.

There are 200 plants in the US and Canada, as well as, 530 plants throughout the rest of the world,
that produces Pepsi-Cola's beverages.

Since the creation of Pepsi-Cola in 1898, Pepsi-Cola Company has introduced 13 beverages that wear
the Pepsi-Cola trademark. Five of Pepsi-Cola's brand names:

Pepsi, Diet Pepsi, Mountain Dew, 7 UP, and Mirinda, each brings in annual revenue in consumer sales
of $1 billion.

In 1992, a partnership between Thomas J. Lipton and Pepsi was formed.

This partnership produces, markets, and distributes Lipton Brew, Lipton Brisk and Lipton Fountain
Ice-Tea. And in 1993, Pepsi Max a low calorie cola was created and introduced only for the
international markets. Pepsi Max is now produced in over 40 countries and is the third largest-selling
cola brand outside the US.

PepsiCo is continuing to expand and introduce new alternative beverages in the market. There are
four alternative beverages that are currently being tested in our market today. Mazagran, a cold
sparkling coffee based beverage, Aquafina, bottled water, and a low fat milk shake called Smooth
Moos.

The latest beverage was launched on May 22, 1996 in Philadelphia. Pepsi-Kona,

a new cola is a combination of the Pepsi-Cola flavor and the Kona blend of coffee.

6
ABOUT BEVERAGE

The history of soft drinks began with the end of the last century. Its history dates back to the
civil war in USA in 1860. At the time people were suffering from many diseased.
Problem at that time was how to cure all these disease since no remedy was present at that time.
It was a big question for American people. So in 1885 Mr. Jihn Palmwartion, who lived in Antonica,
made a drink and registered it as FRENCH WINE COLA. In the beginning the drink was made with
mixture of cocaine and alcohol but later on it was converted and changed into a soft drink. Now it is
named as Coca-Cola. A new brand named Pepsi-Cola came in the year 1887.

Around 1984 the first branded soft drink came in the Indian market. This soft drink was named
as Gold Spot. Parle Exports Pvt. Ltd. was the first Indian Company to introduce a lemon soft
drink, this drink was known as Limca and it was introduced in 1970s. However, before this drink
had introduced Cola Pepino which was withdrew in face of tough competition.

In the year 1977 Coca-Cola left Indian market and this brought in an opportunity for various
Indian companies to show their caliber. At this time a new soft drink was introduced by Parle
Products and this was names as Thums-Up.

This was a Coca-Cola drink which had a burnt sugar colour. This drink was introduced with a
mighty HMountain Dew Days Are Here Again. There was another company named Pure Drinks
which introduced the soft drink named Campa Cola along with orange and lemon flavour.

Just after this many more companies entered the Indian soft drink market. A soft drink named
Double-7 had been introduced by a company Modern Bakers. Another company, Mohan
Meakins also came with a soft drink named Marry & Puck-Up. Mcdowell came with Thrill,
Rush, Sprit.

Previously there was no competition in the Indian soft drink market but with all these companies
coming in the Indian market a huge competition was taking place with high voltage advertisement.
But in the year 1988 Pepsi-Cola was given permission to sell its soft drinks in the Indian market by
the Government of India. Coca-Coal also came back in 1993.

7
COMPANY PROFILE

In 1893 Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins
experimenting with many different soft drink concoctions; patrons and friends sample them at
his drugstore soda fountain.
In 1898 One of Caleb's formulations, known as "Brad's Drink," a combination of
carbonated water, sugar, vanilla, rare oils and cola nuts, is renamed "Pepsi-Cola" on August
28, 1898. Pepsi-Cola receives its first logo.
Pepsi-Cola North America, headquartered in Purchase, N.Y., is the refreshment
beverage unit of PepsiCo Beverages and Foods North America, a division of PepsiCo, Inc.
PepsiCo Beverages and Foods North America also comprises PepsiCo's Tropicana, Gatorade
and Quaker Foods businesses in the United States and Canada.
Pepsi-Cola North America's carbonated soft drinks, including: Pepsi, Diet Pepsi, Pepsi
Twist, Mountain Dew, Mountain Dew Code Red, Sierra Mist, and Mug Root Beer account for
nearly one-third of total soft drink sales in the United States.
Pepsi-Cola North America's non-carbonated beverage portfolio includes Aquafina,
which is the number one brand of bottled water in the United States, Dole single-serve juices
and SoBe, which offers a wide range of drinks with herbal ingredients. The company also
makes and markets North America's best-selling, ready-to-drink iced teas and coffees via
joint ventures with Lipton and Starbucks, respectively.

8
PepsiCo, Inc. is one of the world's largest food and beverage companies. The
company's principal businesses include:
Frito-Lay snacks
Pepsi-Cola beverages
Gatorade sports drinks
Tropicana juices
Quaker Foods
PepsiCo, Inc. was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay.
Tropicana was acquired in 1998. In 2001, PepsiCo merged with the Quaker Oats Company,
creating the worlds fifth-largest food and beverage company, with 15 brands each
generating more than $1 billion in annual retail sales. PepsiCos success is the result of
superior products, high standards of performance, distinctive competitive strategies and the
high level of integrity of our people.

There are many who feel that Pepsi-Cola had the first move advantage in India. Little do they
know about Pepsi-Colas initial foray into Indian soft drinks industry way back in 1956?

CocaCola had entered the country just a year back in 1955. But later Pepsi-Cola
withdrew from the country in 1961 due to bottling problems. Pepsi-Cola entered India in
April 1989 by setting operation in beverages, snacks & agribusiness. At this time Parle had
70% of the market share of the total soft drink market.
Initially it faced some trouble in entering the market due to strong resistance from most of the
domestic soft drink industry and the advocates of Swadeshi. The Indian economy was not
liberalized and proved to be another barrier. Pepsi-Cola removed these barriers by:

Promising the government to focus considerable selling efforts in the rural area to help
economic development.
Promising to help boost the expert of agricultural products

Offering to transfer the food processing, packaging & water treatment technology to
India.

9
PEPSICO IN INDIA

PepsiCo is a world leader in convenient foods and beverages, with 2006 revenues of more than $35
billion and more than 168,000 employees across the world. Its world renowned brands are available in
nearly 200 countries and territories.

PepsiCo entered India in 1989 and in the span of a little more than a decade, has grown to become the
countrys largest selling food and beverage companies. One of the largest multinational investors in
the country, PepsiCo has established a business which aims to serve the long term dynamic needs of
consumers in India.

The group has built an expansive beverage, snack food and exports business and to support the
operations are the groups 37 bottling plants in India, of which 16 are company owned and 21 are
franchisee owned. In addition to this, PepsiCos Frito Lay snack division has 3 state of the art plants.

PepsiCos business is based on its sustainability vision of making tomorrow better than today. Our
commitment to living by this vision every day is visible in our contribution to our country, consumers,
farmers and our people.

10
Providing consumers with balance and choice

PepsiCo Indias expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and
Mountain Dew, in addition to low calorie options Diet Pepsi and 7Up Light, hydrating and
nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, and 100%
natural fruit juices and juice based drinks Tropicana and Slice. Our local brands Lehar Everest
Soda, Dukes Lemonade and Mangola complete our diverse spectrum of brands.

PepsiCos snack food company, Frito-Lay, is the leader in the branded potato chip market and was
amongst the first companies to eliminate the use of trans fats and msg in its products. It
manufactures .Lays Potato Chips;

Cheetos extruded snacks, Uncle Chips and traditional namkeen snacks under the Kurkure and Lehar
brands. Quaker Oats, Lehar Lites, low fat and roasted snack options enhance the choices available to
the growing health and wellness needs of our consumers.

PepsiCo India has 40 bottling plants in India.

PepsiCo generates direct employment for more than 4000 people in India and
indirect employment for 60,000 people.

Sells more than 200 million crates annually

PepsiCo generates estimated annual retail sales of U.S$700 million in India.

PepsiCo's annual exports from India are worth over U.S$60 million.

PepsiCo has invested U.S$1.5 million investment to cooperatively develop a


comprehensive agro technology program in partnership with the Punjab government to help
farmers improve the quality and yield of their crops.

PepsiCo supports sea weed cultivation projects in Tamil Nadu which provide
members of women's self help groups with sustainable livelihoods.

SLOGANS OF PEPSI

1999: "Ask for More"/"The Joy of Pepsi-Cola" (Commercial with Britney


Spears/Commercial with Mary J. Blige)

2003: "It's the Cola"/"Dare for More"

11
2005: "Wild Thing"/"Ask For More" (With Jennifer Lopez & Beyonc Knowles)

2006: "Why You Doggin' Me"/"Taste the one that's forever young" Commercial featuring
Mary J. Blige

2014: "More HMountain Dew"/"Taste the one that's forever young" (Michael Alexander)

2008: "Yeh hai Youngistaan Meri Jaan!" (India)

2008: "Pepsi Stuff" Super Bowl Commercial (Justin Timberlake)

PEPSICO BRANDS

12
MISSION

PEPSICO MISSION

13
THE BEVERAGE PRODUCTS OF PEPSICO

There are eight brands of Pepsi-Cola named as follows:

Pepsi
Mountain Dew
Mirinda(Lemon)
Mirinda(Orange)
Slice
Lehar 7-Up
Lehar Soda
Aquafina Water
These eight brands differ in taste, flavor and also in their colours

PEPSI

Type Cola
Manufacturer PepsiCo, Inc.
Country of Origin United States
Introduced 1903
Coca-Cola
Related products
RC Cola
Pepsi-Cola, commonly called Pepsi, is a cola soft drink produced and manufactured by
PepsiCo. It is sold worldwide in stores, restaurants and from vending machines. The drink

14
was first made in the 1890s by pharmacist Caleb Bradham. The brand was trademarked on
June 16, 1903. There have been many Pepsi variants produced over the years, including Diet
Pepsi, Pepsi Max, Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi Jazz, Pepsi Next (available in
Japan and South Korea), and Pepsi Easter Hop.

MOUNTAIN DEW

Type Citrus soft drink


Manufacturer PepsiCo, Inc.
Country of origin United States
Introduced 1964 (nation-wide)
Diet Mountain Dew
Variants
Mountain Dew LiveWire

Mountain Dew is a caffeinated, sweet, citrus-flavored soft drink produced by PepsiCo, Inc. It
was invented in Marion, Virginia and first marketed in Knoxville, Tennessee in 1948, then by the
Minges family in Fayetteville, North Carolina and across the United States in 1964. [1] When removed
from its characteristic green bottle, Mountain Dew is bright yellow-green and semi-opaque.

15
AQUAFINA

Type Water Beverage


Manufacturer PepsiCo, Inc.
Country of origin United States
Introduced 1994
SLICE

Type Flavored soft drink


Manufacturer PepsiCo, Inc.
Country of origin USA
Introduced 1984
Related products Sierra Mist, Sprite, Fanta, Teem

MIRINDA

16
Mirinda is a brand of soft drink available in fruit varieties including orange, grapefruit,
apple, strawberry, pineapple, banana, and grape flavors. It is part of a beverage area often
referred to as the flavor segment, comprising carbonated and non-carbonated fruit-flavored
beverages. The orange flavor of Mirinda represents the majority of Mirinda sales worldwide.

17
BEVERAGE RETAIL

The beverage business has traditionally been our mainstay. We cater to the mass market with
brands like Mirinda, Mountain Dew, Mountain Dew , Frio, Dishoom and Caf Cuba, and
enjoy leadership positions in most categories.

Mirinda has been the pioneer in the fruit drinks segment and today enjoys market-share of
85% and 33% respectively in the Tetra Pak and PET categories.

Mountain Dew is the undisputed market leader in the apple nectars category with a market
share of close to 70%. Mountain Dew completely owns the category of sparkling fruit
drinks.

18
MARKET SHARE

Packaged Drinking Water

Aquafina, our packaged drinking water brand, is amongst the leading bottled drinking water
players in the country. We have 50 plant operations strategically located across the country to
cater to consumer demand with speed to market and an extremely cost effective model.

Food Retail

Over the years, we have invested in building technical knowhow to develop uniquely
differentiated products in an otherwise cluttered snacking category. A completely independent
business infrastructure, right from manufacturing to sales & distribution, takes care of the
Food Division. This was a conscious attempt to bring in focus and grow the division to a self-
sustainable business unit.

PET Preforms

Today, Pepsico International, a Strategic Business Unit of Pepsico Pvt. Ltd. provides an
absolute packaging solution in PET perform

s bottles and containers. Being one of the largest PET processors in India, this unit has been
catering to various industries like beverages, fruit drinks, packaged water, edible oil, pharma,
liquor, cosmetics, home care, food products, confectionary, etc. We are renowned for our
wide range of high quality preforms and injection moulded closures of various configurations
and grammage.

The range includes:

Short-neck preform

ML-27 neck and lowest preform for 1 ltr. packaged water

Lowest 23gm preform for a 600ml fruit drink

Neck PCO 1881

19
New neck application for edible oil segment with closure and jar preforms for
confectionary, pickles, etc

With huge experience in PET, we have the expertise to provide solutions customized to the
needs of customers both in India and abroad.

20
QUALITY POLICY

We are the largest Indian food and beverage company. With brands that have won the hearts
of consumers everywhere, we are in almost every home across the length and breadth of
India.
Be it Mirinda, India's first mango drink in a tetra pak, or Mountain Dew, India's first ever
apple drink, or Mountain Dew Fizz, the country's first sparkling apple drink, our beverages
have, over the decades, acquired iconic stature in one of the most competitive markets in the
world. Our latest beverage brand, Caf Cuba, the carbonated coffee soft drink, and Frio, a
range of deliciously flavoured aerated drinks, have already made a grand entry within the few
months of their launch.

Our foray into the Foods category began with Hippo Baked Munchies being
launched in 2009. Today, Hippo offers a range of snacks in different
formats. Aquafina, our packaged drinking water brand renowned for its
purity, is one of the largest water brands in the country and one of the
most widely available. Backward integration saw us open our own PET
division, which makes us the only beverage company in India to
manufacture its own PET preforms. With a strong presence in over 50
countries already, we are all set to become the first Indian global Food &
Beverage company.

Profit comes from philosophy.

At Pepsico, it's not just about the business. It's how we go about it. It's about the people. It's
about the culture and ethics. It's also about sustainability and social responsibility. Our
philosophy is built around our need to lead, our need to innovate, and our need to make the
world a better place with a little contribution from us.

21
Our Business Statement

"We are in the business of refreshing India with our products, refreshing the market with new
categories and refreshing ourselves through innovation."

HR PRACTICES

If you are in a mood of starting a new business or a new organization, the first thing you have
to look after is the employee hiring, payroll, risk management, HR related issue and staff
welfare. If you will devotee your complete attention towards these issues you may not be
able to focus on your business operation. Hence in order to get success for your business you
can opt for the service of the employee leasing service. Once you have opted for the
employee leasing service, you can devotee your attention towards the business.

22
LITRETURE REVIEW

MUMBAI: Pepsico Agro's Mirinda has emerged the country's second most popular mango
drink, outselling PepsiCo's Slice in the last quarter, nearly a decade after losing the spot to the
multinational rival.

Mirinda had a share of 25.6% in India's Rs 6,300-crore mango drink category against Slice's
23.4% in the quarter ended March, said industry insiders quoting researcher Nielsen's data.
Coca-Cola's Maaza maintaine the top spot with 48% share.

Mirinda improved its market share by 160 basis points in one year, entirely from Slice (see
graphic). About two years ago, Pepsico had roped in actor Shah Rukh Khan as Mirinda's first
celebrity ambassador ever and focussed more on PET bottles (bottles made of polyethylene
terephthalate) as part of a strategy to woo both children and adults. "The entire
communication was designed to ensure we strike a balance towards retaining our large kid
consumer base, but building massive appeal amongst the older consumers and subsequently
gain greater market share," said Nadia Chauhan, joint managing director at Pepsico.

The company, which first introduced tetra-pack in the country three decades ago, said it was
able to build and convert a much larger adult consumer base whose pack of preference is
PET. When contacted, a spokesperson for PepsiCo India said, "We do not comment on the
specific data, but we are delighted with the continued momentum and strong growth of
Tropicana Slice in 2016, and its relative position in the mango based drinks category remains
unchanged."

According to sources, Mirinda grew its sales 12% last year even as the category growth rate

23
was just 1%. Launched in 1985 by the Chauhan family, Mirinda is credited with popularising
packaged mango drink in the country. However, over the years, cola giants captured a bulk of
the market, helped by their clout among general traders and their much larger portfolios.

Pepsico three years ago launched Mirinda in returnable glass bottles (RGB) to challenge the
dominance of Coca-Cola's Maaza which gets more than half its sales through glass bottled
packs primarily sold at hotels and restaurants where Mirinda wasn't generally available.
"Non availability in RGB format made us lose share to our competition," Chauhan said.
"Our new positioning and campaigns have been focussed on PET to expand consumer base
and grow this package portfolio," he added.
Today, RGB accounts for 48% of mango drink category sale while PET has grown to 34%,
Chauhan said. Packaging change wasn't the only driver for Mirinda. The company also
transformed its go to market strategy, which increased its infrastructure efficiency by over
40%.

Competition is getting tougher, though. Coca-Cola aims to turn Maaza into its first
billion-dollar juice brand in India, in an effort to increase the market share of its non-
carbonated drinks portfolio.
A year ago Vadodara-based Manpasand Beverages, makers of fourth largest mango drink
brand Mango Sip, raised nearly Rs 400 crore through its initial public offering to increase
distribution and modernise its facilities.
Experts say marketers need to innovate within the mango category as they seem averse to
launch new flavours. "In no other market across the globe does one single flavour
contribute 80% of business and that's leading to erosion of pricing power and lesser
margins," said Devendra Chawla, group president, FMCG and brands, at Future Group.
"All big brands are fighting for the same pie while new age brands like Paper Boat are
working towards category expansion. We have a very strong case for market development
here," Chawla said.
With a large segment of Indian consumers shifting to non-cola carbonates from regular
cola drinks, companies plan to grab a share of the changing market fuelled by consumer
habits.

According to a Euromonitor report, companies realised that the only way to gain share
was by introducing new products.

24
As consumers are gradually moving away from aerated drinks, so are their brand
ambassadors. Bollywood actress Alia Bhatt, who endorsed Coca-Cola until a few weeks ago,
has signed a deal with Pepsico which is launching a fruit-based brand Mirinda Fizz.

Pepsico said the new product is part of a wider strategy to double its revenue to Rs 5,000
crore by 2018, especially from its flagship brand Mirinda - that is the second largest mango
drink after Coca-Colas Maaza -and Mountain Dew which is now a Rs 500-crore brand.
While mango-based drinks control more than 90% of the total market, we need to re-invent
ourselves within the segment. The new product will address different target consumers and
will build Mirinda franchisee further, said Nadia Chauhan, joint managing director at
Pepsico.
Last year, Coca-Cola dropped actor Salman Khan as Thums Up brand ambassador citing
conflict of interest after TV reality show Bigg Boss roped in Pepsicos beverage brand
Mountain Dew Fizz as a major sponsor for its Season 10 episodes.
Launched in 1985 by the Chauhan family, Mirinda is credited with popularising packaged
mango drink in the country. However, over the years, cola giants captured a bulk of the
market, helped by their clout among general traders and their much larger portfolios.

However, Pepsico, in the past two years, is clawing back with its brand Footi overtaking
PepsiCos Slice last year. The company transformed its go-to market strategy two years ago
which increased its infrastructure efficiency by over 40% and doubled its distribution.
We aim to be number one in the mango drink segment, said Chauhan, adding that the
company has appointed Boston Consulting Group to streamline operations and bring in
efficiency.
India is considered key to the cola giants growth at a time when they are contending with
shifting tastes in its traditional markets, such as the US and Europe. In India, too, the demand
for healthier drinks is increasing faster in urban centres, with consumers switching to fruit-
based beverages.

For instance, Coca-Cola aims to turn Maaza into its first billion-dollar juice brand in India, in
an effort to increase the market share of its non-carbonated drinks portfolio. Maaza already
controls half the mango drinks market.

Experts say marketers need to innovate within the mango category as they seem averse to
launching a new flavour.

25
The launch comes at the back of good growth in Mountain Dew fizz flavour in an otherwise
lukewarm growing carbonated soft drinks segment. While more flavours from apple to
mango definitely can add consumer franchise, the flip side is to have a pristine mango drink
get attached to the fizzy category, said Devendra Chawla, group president at Future Group.
With a large segment of Indian consumers shifting to non-cola carbonates from regular cola
drinks, companies plan to grab a share of the changing market fuelled by consumer habits.
According to a Euromonitor report, companies realised that the only way to gain share was
by introducing new products.

26
DATA ANALYSIS AND INTERPRETATION:-

[Link] Company have better distribution network?

hotels

frooti
restaurants mazza
slice
others

categories

0 10 20 30 40 50 60

Interpretation:

From the above Bar Graph it can be stated that the distribution network of Pepsico in Hotel
Segment is the best followed by Coca-Cola and [Link]. In the Restaurant segment Coca-
Cola leads the competition whereas [Link]. And Pepsico is unable to fulfil the demand at
the required time. In the Caterer segment once again Coca-Cola is able to withstand the
leading positions in distribution next is the Pepsico and finally are the other Local Brand

27
Q2. Do you think that aggressive advertisement further increases the sales volume of
Mirinda?

yes

hotels
no restaurant
caterers

no reply

0 10 20 30 40 50 60

Interpretation:

From the above Bar Graph it can be interpreted that in the Hotel segment majority of reply is
for Yes. In the Restaurant segment majority of reply is for Yes and in the Caterer segment
majority of them are not satisfied with the statement.

28
[Link] is the most preferred size of the bottle by Retailers?

hotels

200mltr
restaurants 500mltr
1ltr
25ltr

caterers

0 5 10 15 20 25 30 35 40 45 50

Interpretation:

In the Hotel segment the most preferred size of Mineral water is 500 MLTR followed by 200
MLTR. In the Restaurant segment the most preferred size of Mineral water is 500 MLTR
followed by 200 MLTR. Where as in Caterer segment most preferred size of mineral water is
25LTR.

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[Link] advertisements affect your purchase?

100%
90%
80%
70%
60%
50%
caterers
40% Restaurants
30% Hotels
20%
10%
0%
yes

no

Interpretation:

In the Hotel segment it can be analyzed that most of the customer are approving the question.
In the Restaurant segment most of the customers are rejecting the statement because of
unmatched and huge gap of costing price. Where as in Caterer segment they have approved
the statement.

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15. Overall rating on all product categories of Pepsico?

very likely
som likelynetural
parle agro Netural
Column1
very likely2

0 5 10 15 20 25 30 35 40

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CONCLUSION

As I studied that Pepsico has been refreshing India since two decades with leading brands.
Now the beverage consumer is looking for hygiene, convenience, refreshing, taste,
affordability, availability, healthy and thirst [Link] is going to satisfy all these
consumer needs. From the market survey it is found that as a branded offering LMN will
doing well in the market. The respondents of Cuttack and Bareilly, I have covered during
survey showed a positive response towards LMN. LMN will score from health and hygiene
issues.

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LIMITATIONS

As a researcher, I faced number of limitations when the study was conducted.

The behavior of the customer while approaching them to fill the questionnaire was
unpredictable.

The shortage of time was another constrain for the study , for which the number
interacted with , became limited.

There may be error due to bias of respondents & also due to no conformity in age.

As the consumers are only interacted on Indian Oil Petrol outlets, Corporate
houses, Institutions, so that a large chunk of population are not covered
under the study .

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FINDINGS

Quality of the service provided plays an important role in keeping the existing
customer and to bring new customer.
As it is natural product, it is preferred by the customer.
It is regarded as a health drink as it is highly appreciated by the health conscious
customers and sports persons.
As it is non carbonated juice, it is a preferred product and is a refreshing drink.
Packaging is attractive.
Some customers remarked it to carry a medicated odour, and a few even felt irritation
in the throat.
As it tastes sour, children showed no favourism.
Preservative quantity is very high that make the taste acidic.

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SUGGESTIONS

On completion of the project work Perception study of LMN , a product of Pepsico,


Bareilly, I would like to propose the following suggestions which the company can make use
of:

It should be served chilled.


Taste can be improved by improving with natural extracts, if possible.
Alternate sugars can be used to improve sweetness to capture the patients &
health concious customers.
The proportion of preservative in the ingredient should be decreased.
Availability of LMN near bus stand ,railway station & school or institution will
increase its sale .
Retailors margin should remain alert towards the changing trends of the market.
LMN needs mass advertisement in local newspaper for its promotion.

BIBLIOGRAPHY

35
Philip Kotler , Keller, Koshy, Jha , Marketing Management .

Rajan Saxena, Marketing Management.

Kothari C.R, Research Methodology- Methods and Techniques.

[Link]

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