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					    A SUMMER TRAINING PROJECT REPORT ON


“ANALYSIS OF ANTI PEPSI BEHAVIOUR OF
          RETAIL OUTLETS”
   SUBMITED TOWARDS PARTIAL FULFILMENT OF


 POST GRADUATE DIPLOMA IN MANAGEMENT




                     1
                             INDEX




Sr.No.                  Content          Page No.

 1.      Executive Summary                6

 2.      Objective of Summer Training     7

 3.      Introduction of Project         8

 4.      History of Company             9-11

 5.      Company Profile                11-41

 6.      Research Methodology           42-48

 7.      Project Analysis               49-61

 8.      Finding & Suggestion           61-62
 9.      Conclusion                      63
10.      Questionnaire                   64
                                         65
11.      Bibliography




                                   2
    OBJECTIVE OF THE SUMMER TRAINING




    TOPIC : - “Analysis of Anti Pepsi Behaviour of the Retail Outlets”


           During m y summer training I have worked on the topic “Analysis of Anti

    Pepsi Behaviour of the Retail Outlets”


           In Pepsi Co India Holding Pvt. Ltd the work of Anti Pepsi Outlet Survey was given

    to me . I have done this survey keeping in m ind the following objectives


    which I have mentioned below


        Study those outlets which are not promoting Pepsi products in the area covered in

    Shukla Sales, Lucknow

        To analyze the reasons of not selling Pepsi at retailers level.

        To study the retailers satisfaction.

        To find out the ways to enhance the sale of Pepsi.




                                                3
                     INTRODUCTION

      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 that can be further classified into cola, lemon orange,
mango and apple segments.
      Marketing includes all the activities like promotion, distribution,
advertising etc. To fulfill all the segments of consumers. Marketing is also
to convert social needs into profitable opportunities. So this topic provides
all the essentials to theoretical knowledge with practical knowledge and to
inculcate the efficiency. it is also requirement for the company to improve
their service and product quality for achieving their ultimate goal.

       As far as the soft drink market is concerned, it is facing the cut
throat competition because of the availability of a large number of indirect
as well as direct competitors. Single company offers the soft drink to the
market in different taste and flavors. In this industry entire range of flavors
are produced by other competitors also. More often it becomes
impossible to differentiate between the same flavors of two different
brands, when served in plane container, range also. All these factors
together make the situation complicated. besides both corresponding
brands have the similar price.




                                       4
COMPANY’S HISTORY



BEVERAGES

Pepsi Cola Company

       Caleb Bradham, a New Bern, N.C. druggist who first form ulated Pepsi-cola,
founded Pepsi Co.’s beverage business at the turn of the century i.e. in the year 1890. A
young phannacist Called Bradham began             experimenting in 1890 as a cure for
dyspepsia (indigestion) with combination of spices, 1 juices and syrups and created a
refreshing new drink to serve his custom er. He succeeded be yond all expectations as he
invented the new beverage now known around the world as "PEPSICOLE"

       In 1902, he launched the Pepsi Cola Com pany in the back room of pharm acy,
and applied to U.S. patient office for Trade Mark. The business began to grow and on
June 16,1993, Pepsi-Cola tradem ark was officially registered with U.S. office. Bradham
believed m arketing would e the key to

PEPSI-COLA prosperity and in his first year of business he spent $1900 on advertising
when he sold 40,000 liters of syrup. In 1905 he built Pepsi fits bottling plant. Three more
plants followed soon and in 1907, he was selling 50,000 liters year.

      Troubles started at the end of the First World War when Bradham over stocked
sugar at high price, which subsequently dipped in 1920. By 1922, the company was
insolvent by 1923, it went bankrupt and Bradham returned to pharmacy.

       In 1931, the com pany went bankrupt for the second tim e. At this time charless
Groth, president of a giant candy com pany both the trademark. His success came when
he offered a 12-ounce bottle at 5 cent while other colas were sold at the same price in 6
ounce bottles. In 1936, Pepsi has a $2 million net profit.

       Today consumers spend about $31 billion on Pepsi-Cola beverages. Brand Pepsi
and other Pepsi-Cola products-including Diet Pepsi, 7UP Pepsi Blue, Mountain Dew,
slice and Mugvrands- Account for nearly one third of total soft drink sales in the United
States, a consumer m arker totaling about $56 billion.

        In 1992 Pepsi-Cola formed a partnership with Thomas J. Liption Co. Today
Liption is the biggest selling ready to drink tea brand in the United States. Outside the
United States, Pepsi-Cola Company's soft drink operations include the business of even-
up International; Pepsi-Cola beverages are available in about 170 c ountries.



      Pepsi-Cola began selling it products internationally in 1934 with its operations in
Canada. Operations grew rapidly beginning in the 1950s. Today Pepsi-Cola products
account for about a quarter of all soft drinks sold internationally. In additio n to brands
                                            5
marketed in the United States, Major products include Mirinda and Pepsi Max.



       Pepsi-Cola provides advertising, marketing, sales and promotional support to
Pepsi-Cola bottles and food service custom ers. This includes som e of the world loved
and most recognized advertising. New advertising and exciting promotions keep Pepsi-
Cola brands young.

        In 1940, history was made when the first advertising jingle was broadcast
nationally. The jingle was "Nickel Nickel" an advertisem ent for Pepsi Cola that ref erred to
the price of Pepsi and the quantity for that price. "Nickel Nickel" became a hit record and
was recorded into fifty-five languages.

In 1964, Diet Pepsi was introduced.

THE BUSINESS

PepsiCo. Has a worldwide operation in 3 fields

      Non Alcoholic beverage
      Snack Foods.
      Fruit Juices


Pepsi company profile

PepsiCo is a world leader in convenient snacks, foods and beverages, with
revenues of more than $39 billion and over 185,000 employees.



        PepsiCo is a world leader in convenient snacks, foods and b everages, with
    revenues of m ore than $39 billion and over 185,000 employees.


     The company consists of PepsiCo Americas Foods (PAF), PepsiCo Americas
Beverages (PAB) and PepsiCo International (PI).

PAF includes Frito-Lay North America, Quaker Foods North America and all Latin
Am erica food and snack businesses, including Sabritas and Gamesa businesses in
Mexico. PAB includes PepsiCo Beverages North America and all Latin American
beverage businesses. PI includes all PepsiCo businesses in the United Kingdom,
Europe, Asia, Middle East and Africa. PepsiCo brands are available in nearly 200
countries and generate sales at the retail level of m ore than $98 billion.

       Some of PepsiCo's brand names are more than 100-years-old, but the corporation
is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and
Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats
Company, including Gatorade, in 2001.
                                             6
      PepsiCo offers product choices to meet a broad variety of needs and preference --
from fun-for-you items to product choices that contribute to healthier lifestyles.

     PepsiCo’s m ission is ―To be the world's premier consumer products company
focused on convenient foods 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 we do, we strive for honesty, fairness and integrity.‖

Shareholders

     PepsiCo (symbol: PEP) shares are traded principally on the New York Stock
Exchange in the United States. The com pany is also listed on the Chicago and Swiss
stock exchanges. PepsiCo has consistently paid cash dividends since the corporation
was founded.

Corporate Citizenship

      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 which we operate – environm ent, social, economic -- creating a
better tom orrow than today.‖

      Our vision is put into action through programs and a focus on environmental
stewardship, activities to benefit society, and a commitm ent to build shareholder value
by m aking PepsiCo a truly sustainable company.

PepsiCo Headquarters

     PepsiCo World Headquarters is located in Purchase, New York, approximately 45
minutes from New York City. The seven-building headquarters com plex 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- acclaim ed sculpture collection in a garden setting.

      The collection of works is focused on major twentieth century art, and features
works by m asters such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander
Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenberg. The gardens
originally were designed by the world f amous garden planner, Russell Page, and have
been extended by François Goffinet. The grounds are open to the public, and a visitor's
booth is in operation during the spring and summer.

PEPSICO BEVERAGES NORTH AMERICA (PBNA)




                                            7
       PepsiCo’s beverage business was founded 1898 by Caleb Bradham, a New
Bern, North Carolina druggist, who first form ulated Pepsi-Cola.

      Today, Brand Pepsi is part of a portfolio of beverage brands that includes
carbonated soft drinks, juices and juice drinks, ready-to-drink teas and coffee drinks,
isotonic sports drinks, bottled water and enhanced waters. PBNA has well known brand
such as Mountain Dew, Diet Pepsi, Gatorade, Tropica na Pure Premium, Aquafina water,
Sierra Mist, Mug, Tropicana juice drinks, Propel, SoBe, Slice, Dole, Tropicana Twister
and Tropicana Season’s Best.

      PBNA m anufactures and sells concentrate for some of these brands to licensed
bottlers, who sell the branded products to independent distributors and retailers. PBNA
provides advertising, marketing, sales and promotional support for its brands. This
includes some of the world's best-loved and m ost-recognized advertising.

      In 1992 PBNA form ed a partnership with T homas J. Lipton Co. to selling ready-to-
drink tea brands in the United States. Pepsi-Cola also markets Frappuccino ready-to-
drink coffee through a partnership with Starbucks.




Tropicana was founded in 1947 by Anthony Rossi as a Florida fruit packaging business.
In 1954 Rossi pioneered a pasteurization process for orange juice. For the first time,
consumers could enjoy the fresh taste of pure not -from-concentrate 100% Florida
orange juice in a ready-to-serve package. The juice, Tropicana Pure Premium, became
the company’s flagship product. PepsiCo acquired Tropicana, including the Dole juice
business, in August 1998.




                                          8
      SoBe became a part of PBNA in 2001. SoBe manufactures and markets an
innovative line of beverages including fruit blends, energy drinks , dairy-based drinks,
exotic teas and other beverages with herbal ingredients.

      Gatorade thirst quencher sport drinks was acquired by The Quaker Oats Company
in 1983 and became a part of PepsiCo with the merger in 2001. Gatorade is the first
isotonic sports drink. Created in 1965 by researchers at the University of Florida for the
school's football team, "The Gators," Gatorade is now the world's leading sport's drink.

PepsiCo Beverages North America includes the United States and Canada.



  LATIN AMERICA BEVERAGES

      The Latin Am ericas Beverage business features a powerful suite of powerhouse
brands and distinct products tailored for the market. Gatorade outsells the nearest
competitor more than five to one and, in Sao Paulo---7UP H2Oh! --- a lightly carbonated,
is dom inating the com petition in its lead market.




PepsiCo Americas Foods

  FRITO-LAY NORTH AMERICA




                           PepsiCo's snack food operations had their start in 1932
when two separate events took place. In San Antonio, Texas, Elm er Doolin bought the
recipe for an unknown food product – a corn chip – and started an entirely new industry.
The product was Fritos brand corn chips, and his firm became the Frito Company.

       That same year in Nashville, Tennessee, Herm an W. Lay started a business
distributing potato chips. Mr. Lay later bought the company that supplied him with
product and changed its nam e to H.W. Lay Com pany. The Frito Company and H.W. Lay
Company merged in 1961 to become Frito-Lay, Inc.

      Major Frito-Lay products include Lay’s potato chips, Doritos flavored tortilla chips,
Tostitos tortilla chips, Cheetos cheese flavored snacks, Fritos corn c hips, Ruffles potato
chips, Rold Gold pretzels, Sun Chips multigrain snacks, Munchies snack mix, Lay’s Stax
potato crisps, Cracker Jack candy coated popcorn and Go Snacks. Frito -Lay also sells a
variety




                                            9
                                                                       of branded
dips, Quaker Fruit & Oatmeal bars, Quaker Quakes corn and rice snacks, Grandma’s
cookies, nuts and crackers.

Frito-Lay   North   America     includes        Canada   and   the   United   States


  QUAKER FOODS NORTH AMERICA




                                                                                 The
Quaker Oats Com pany was form ed in 1901 when several American pioneers in oat
milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour and William
Heston had established the Quaker Mill Company. The figure of a man in Quaker
clothes became the first

registered trademark for breakfast cereal and remains the hallmark for Quaker Oats
today.




                                           10
           In Cedar Rapids, Iowa, John Stuart and his son, Robert, and their partner,
George Douglas, operated the largest cereal mill of the tim e. Ferdinand Schumacher,
known as "The Oatm eal King," had founded German Mills American Oatm eal Company
in 1856.




                                   Combining The Quaker Mill Company with the
Stuart and Schum acher businesses brought together the top oats milling expertise in the
country as The Quaker Oats Company.

     The first m ajor acquisition of the company was Aunt Jemim a Mills Company in
1926, which is today the leading m anufacturer of pancake mixes and syrup. Gatorade
was acquired in 1983.

     In 1986, The Quaker Oats Company acquired the Golden Grain Company,
producers of Rice-A-Roni.

PepsiCo m erged with The Quaker Oats Company in 2001.




  LATIN AMERICA BEVERAGES

     The Latin Americas Foods business includes operations in Brazil, Argentina,
Colombia, Peru and Venezuela. This business continues to grow organically and
through acquisitions like the Lucky snacks business in Br azil.




                                          11
     PEPSICO INTERNATIONAL




                               PepsiCo International includes all PepsiCo businesses
in    the   United    Kingdom,    Europe,    Asia,     Middle    East   and    Africa.

Pepsi-Cola began selling its products outside the United States and Canada in the m id-
1930s, opening in the United Kingdom in 1936. Operations grew rapidly beginning in the
1950s. Today, PepsiCo beverages are available in more than 170 countries and
territories. Brands include Aquafina, Gatorade and Tropicana.

In addition to brands marketed in the United States, PepsiCo International brands
include Mirinda, Seven-Up and many local brands.




    PepsiCo began its international snack food operations in 1966. Today, products are
available in nearly 170 countries. Often PepsiCo snack food products are known by local
names. These names include Gamesa and Sabritas in Mexico, Walkers in the United
Kingdom, Simths in Australia, Matutano in Spain, Elma Chips in Brazil, and others. The
company markets Frito-Lay brands on a global level, and introduces unique products for
local tastes.



PepsiCo. Has a worldwide operation in 3 fields

      Non Alcoholic beverage
      Snack Foods.
      Fruit Juices




                                          12
 PepsiCo India Holdings Private Limited


          PepsiCo, the world leader in convenient foods and beverages, welcom es you to
 a community of over 157,000 employees spread over more than 200 countries and
 territories across the globe with annual revenues in excess of $33 billion. As part of its
 sustainable development initiatives, PepsiCo India has been a committed leader in the
 promotion of rain water harvesting, water conservation recycling and the reduction of
 effluent discharge. Thus, we seek to produce healthy financial rewards to investors as
 we provide opportunities for growth and enrichm ent to our employees, our business
 partners and the communities in which we operate. And in everything we do, we strive
 for honesty, fairness and integrity.

 Company Facts

 Company Name:
 PepsiCo India Holdings Private Limited

 Industry:
 Food & Beverage / Catering / Restaurant

 Type of Company:
 Private Limited Com pany, Foreign Based Company


 Location:
 DLF Corporate Park, S Block, Qutab Enclave, Phase III Gurgaon 122 002


 History

        Founded in 1965 through the merger of Pepsi-Cola and Frito-Lay, PepsiCo
 entered India in 1989 and in the span of a little more than a decade, has grown to
 becom e the country’s largest selling soft drinks compa ny as well as dom inant player in
 the snack food segment (Frito-Lay is the leader in the branded potato chips market). To
 support the operations are the group’s 38 bottling plants in India, of which 16 are
 company owned and 22 are franchisee owned.


Product and Services

         PepsiCo’s mission is to be the world’s premier consumer Products Company
 focused on convenient foods and beverages. The company seeks to produce healthy
 financial rewards to investors as it provides opportunities for growth and enrichment to
 its employees, business partners and the communities in which it operates. PepsiCo
 now has many global brands, which include: Pepsi-Cola, Diet Pepsi, Mountain Dew (Diet
 & Regular), Gatorade, Walkers, Lays Potato Chips, Doritos Tortilla Chips, Tropicana
 Pure Prem ium Orange Juice, 7-UP (Outside USA), Cheetos Cheese Flavoured Snacks,
 Quaker Cereals, Aquafina Bottled Water, Ruffles Potato Chips, Mirinda, Tostitos Tortilla
 Chips, Sierra Mist (Diet & Regular) and Fritos Corn Chips.

                                            13
Culture and Values

Our Guiding Principles:

       We always strive to Care for custom ers, consumers and the world we live in. We
are driven by an intense, competitive spirit in the marketplace, but we direct this spirit
towards solutions that achieve a win for each of our const ituents as well as a win for the
corporation. The test of our standards is that we must be able to personally endorse our
products without reservation and consume them ourselves. This principle extends to
every part of the business, from the purchasing of ingredients to the point where our
products reach the consum er’s hands.
Speak with truth and candor. We speak up, telling the whole picture, not just what is
convenient to achieving individual goals. In addition to being clear, honest and accurate,
we take responsibility to ensure our communications are understood.
Balance short term and long term. We make decisions that hold both short-term and
long-term risks and benefits in balance over time. Without this balance, we cannot
achieve           the            goal           of           sustainable           growth.

     Win with diversity and inclusion. We leverage a work environment that em braces
people with diverse backgrounds, traits and different ways of thinking. This leads to
innovation, the ability to identify new market opportunities, all of which helps develop
new products and drives our ability to sustain our commitments to growth through
empowered                                                                        people.

      Respect others and succeed together. This company is built on individual
excellence and personal accountability, but no one can achieve our goals by acting
alone. We need great people who also have the capability of working together, whether
in structured teams or informal collaboration. A spirit of fun, our respect for others and
the value we put on teamwork m ake us a company people enjoy being part of, and this
enables us to deliver world-class performance

PEPSI COLA INTERNATIONAL SRATEGY

 Focus on Business growth
 Target core brands
 Satisfy Market Priorities




Pepsi's Global Strategy


                                           14
                                       When the "You're in the Pepsi Generation"
advertising campaign launched in 1963, it may have been the first time a brand was
marketed prim arily with an association to its consumers' aspirational attitudes. A
decidedly youth-oriented strategy, the campaign hoped to hook young Baby Boomers
while they were still young. In 1984 Pepsi launched another long-running campaign,
"The Choice of a New Generation," and in 1997 they debuted the "GeneratioNext"
concept.

        The newest campaign slogan, introduced this year, is "More Happy," which
definitely coincides with one concrete example of "more" in the packaging of Pepsi
products today—m ore designs. Many more. At least 35 distinct design ideas will grace
the packaging of Pepsi's cans and bottles this year alone, and this design strateg y m ay
continue indefinitely.

        Though not "generational" in word, the campaign certainly has a youth-oriented
feel with package designs, advertising, and websites that are fun and playful. PepsiCo
worked closely with Peter Arnell and Arnell Group, based in New York City, to devise a
comprehensive new strategy that would connect with Pepsi's core consumers. Arnell
reinvented the Pepsi package as a meaningful and appealing communications tool for
the latest generation of youth that are not overwhelm ed by media, music, or digital
distractions.

Experiental packaging

      Arnell Group (a wholly-owned subsidiary of Omnicom Group) is a design and
brand creation firm specializing in experiential design and product innovation, preferring
to take complete branding and packaging projects from first concept to com plete m arket
solutions. Peter Arnell, currently chairm an and chief creative officer of Arnell Group,
formed the Arnell Group Innovation Lab in 1999 to place invention and innovation at the
forefront in a collaborative laboratory for corporations interested in designing for next
generation products and experiences. Arnell applied many of his philosophies in the
Pepsi project.



    Peter has taken a classic and turned it into a modern, innovative, and relevant
marketing and communications tool," said Ron Coughlin, chief marketing officer,
beverages, PepsiCo International. The new global look launched in February with eight
new package designs across cans and bottles, and the cam paign is unfolding in a
similar manner overseas. The can designs roll out one at a time approxim ately three
weeks apart to enhance the anticipation of discovery and to pique the interest of
collectors.




                                           15
       Product innovation today must be driven by deep consumer m eaning and
 connectivity," says Arnell. "It is less about unmet needs and more about giving people
 what they haven't asked for but are dying to have. Using design to turn packaging into
 personal consumer-powered media helps create the ultimate supportive and inspiri ng
 relationship between Pepsi and its youth audience."




 Thinking globally
      The Pepsi can designs roll out one at a time, but the two -liter Pepsi bottles will
 have three or four designs out at any given time.

         Mike Doyle, creative director at Arnell Group, explains that there was a great
 depth of exploration and research that was conducted before even beginning to
 formulate a new Pepsi packaging strategy. PepsiCo and Arnell Group traveled
 extensively to em erging markets to find key consum er product drivers f or youth cultures
 and to learn how the Pepsi brand was perceived in different countries.

        They found, som ewhat surprisingly, that there were very few differences around
 the world in how consumers felt about Pepsi's fun, effervescent brand image. "The brand
 equity is really consistent," says James Miller, m arketing director, Pepsi-Cola North
 Am erica. They also found many consistencies in youth cultures around the world in how
 today's youth is preoccupied with newness, discovery, and personalization of their
 possessions. Miller describes the design campaign's goal as "sustainable discovery,"
 where the consumer audience is constantly intrigued and engaged.

        Designers at Arnell Group created the dozens of new and vibrant designs with
 only a handful of blue and gray shades. Each design tells a story of sorts and each can
 design has a unique website address on the side of the can. The first one on the "Your
 Pepsi" can allows web users to design a digital billboard that will appear in Tim es
 Square, and one coming shortly will allow users to m ix their own music online.

         "We redefined packaging as m edia in the marketplace for Pepsi," says Doyle. "It
 speaks to youth in their language." Doyle believes that the designs succeed because
 they are able to capture the audience's mind space. "The designs are reflecting back to
 the culture instead of talking to the culture or imposing on it."

Reassuringly Pepsi

         Pepsi actually asked their loyal consumers what brand elements would have to
 remain so that they would be intuitively reassured that their favorite drinks were not
 changing and the brand they trusted was still essentially the same. Their answer was
 direct and consistent. Pepsi-lovers needed to see three elements for sure—the Pepsi
 "globe," the iconic Pepsi blue, and the fam iliar tilted Pepsi capital letters.

        Arnell Group updated the primary logo substantially and cleverly without really
 redesigning its key elem ents. The most recent logo design had the Pepsi wordmark on
 top of and slightly overlapping the iconic Pepsi red-white-and-blue "globe." On the
 previous can design, the wordm ark wrapped halfway around the can, and the globe was


                                            16
off-center. The new cans and bottles have un-bundled the word and globe, making the
newly centered globe m ore of the hero, and the smaller Pepsi wordm ark less prom inent.

       Television ad campaigns are reinforcing the globe-centric approach by featuring
a boulder-sized Pepsi globe in various settings careening to and fro like a pinball. In the
ads and on the front of most of the new packages is the reas suring tag line: "Same
Pepsi inside, new look outside." Miller explains that it is customary and important to
reassure consumers for at least six months in situations like this.

        Miller also sees today's youth as demanding authenticity from the products th ey
come into contact with in their day-to-day experiences. The new Pepsi design strategy is
versatile because it can be authentic and stay current, and it could also make
introducing special seasonal or regional designs more intriguing and less disruptive.
"This is a new way of using packaging as media," explains Miller. "The consumer is
looking for m ore variety and expecting m ore from their brands. They want to have a
dialogue with their favorite brands."



SHAREHOLDERS

       Pepsi-co.Inc. (Symbol: Pep) shares are traded principally the New York Stock
Exchange in the United Stated. The company is also listed on the Amsterdam, Midwest,
Swiss and Tokyo stock exchange. Pepsi Co has consistently paid cash dividends since
the corporation was founded.

CORPORATE CITIZENSHIP

         Pepsi Co. believes that as a corporate citizen, it has a responsibility to contribute
to the quality of life in its communities. This philosophy is put into action through support
of social agencies, projects and programs. The scope of this support is extensive-
ranging from sponsorship of local programs and support of em ployee volunteer
activities, to contributions of time, talent, and funds to programs of national impact. Each
division is responsible for its own growth program.

GROWTH GOALS

Set a winner's growth goals. If you act like no. 2, you will always be no.2

Employment

Hiring people who love to work and thrive on risk.




Target Core Brands

Put emphasis on the firmly established products and try to increase their market share.

Market Priorities
                                             17
Establish market priorities and work towards achieving the maxim um good for the
priorities.

PEPSI GLOBAL LOGO




     While taking to consumers some years back, Pepsi carried one exercise
consumers, "Take a piece of paper and draw what Pepsi m eans to you".

Interestingly, a lot of consum ers especially kids drew the Pepsi's globe.

What is the globe? Well, its red, white and blue which says a lot of things.

Secondly, It has an incredible balance, m odem kids says it has some incredible yi n and
yang.

Thirdly, it has a quality of complete harmony.

Lastly, it speaks about openness and eternal youthfulness.

The biggest thing about the globe is that it is 3 dimensional logo, which no other brand
has.




In the Pepsi logo, blue colour has been underlined and used as a background colour.
Blue colour. Blue colour is associated with cold and refreshment. Blue Jeans are a
favorite piece of clothing for the youth's worldwide. Thus the colour hits the 2
dimensions:

 It supports the product quality-Refreshment
 It reinforces consum er's affection for their favorite things.




                                              18
Our Mission, Values and Guiding Principles




VISION

As we stand at the crossroads of the new millennium, it's time to eradicate our

focus and energy single-mindedly to our Vision... The Vision to be the Best.

And what is that vision?

"To be the best consumer products company in the eyes of our suppliers, consumers,
employees and shareholders."




                                           19
"To becom e truly global com pany, by continuing to build a competitive and profitable
word wide refreshment beverage business."



The Pepsi challenge of the Millennium will be the test of the Best



The best in connecting with the customer ad the consum er, the best in m arketing, the
best in selling, the best in quality, the best in processes and the best in people and
teamwork.




                                           20
Mission




       We aspire to m ake PepsiCo the world’s premier consumer Products Company,
focused on convenient foods 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 we do, we strive to act with honesty, openness, fairness and integrity.

The behaviors that will help us achieve our mission are articulated in our Values
Statement.

Values
PepsiCo Values & Philosophy
      Our Values & Philosophy are a reflection of the socially and environmentally
                                      responsible company




                                       21
     We are committed to delivering sustained growth through em powered people acting
     responsibly and building trust.

     What It Means
     Sustained Growth is fundamental to motivating and m easuring our success. Our quest
     for sustained growth stimulates innovation, places a value on results, and helps us
     understand whether today's actions will contribute to our future. It is about the growth of
     people and company performance. It prioritizes both m aking a difference and getting
     things done .

     Empowered People m eans we have the freedom to act and think in ways that we feel
     will get the job done, while adhering to processes that ensure proper governance and
     being mindful of company needs beyond our own.

            Responsibility and Trust form the foundation for healthy growth. We hold
     ourselves both personally and corporately accountable for everything we do. We must
     earn the confidence others place in us as individuals and as a company. By acting as
     good stewards of the resources entrusted to us, we strengthen that trust by walking the
     talk and following through on our commitm ent to succeeding together.

     Guiding Principles
     We uphold our commitm ent with six guiding principles.

     We must always strive to:

1.          Care for our customers, our consum ers and the world we live in.
     We are driven by the intense, competitive spirit of the m arketplace, but we direct this
     spirit toward solutions that benefit both our com pany and our constituents. Our success
     depends on a thorough understanding of our customers, consum ers and communities.
     To foster this spirit of generosity, we go the extra mile to show we care.
2.          Sell         only       products        we        can       be       proud         of.
     The true test of our standards is our own ability to consume and personally endorse the
     products we sell. Without reservation. Our confidence helps ensure the quality of our
     products, from the m oment we purchase ingredients to the mom ent it reaches the
     consumer's hand.
3.          Speak                 with               truth             and                candor.
     We tell the whole story, not just what's convenient to our individual goals. In addition to
     being clear, honest and accurate, we are responsible for ensuring our communications
     are understood.
4.          Balance             short           term            and         long            term.
     In every decision, we weigh both short -term and long-term risks and benefits.
     Maintaining this balance helps sustain our growth and ensures our ideas and solutions
     are relevant both now and in the future.
5.          Win                with              diversity            and              inclusion.
     We embrace people with diverse backgrounds, traits and ways of thinking. Our diversity
     brings new perspectives into the workplace and encourages innovation, as well as the
     ability to identify new market opportunities.
6.          Respect               others            and             succeed             together.
     Our mutual success depends on m utual respect, inside and outside the company. It

                                                 22
requires people who are capable of working together as part of a team or informal
collaboration. While our company is built on individual excellence, we also recognize the
importance and value of teamwork in turning our goals into accomplishm ents.




COMMITMENT

        Diversity isn't just the right thing to do. It's the right thing to do for our business,
and we're committed to m aking diversity and inclusion a way
 of life at PepsiCo.

      In our business, understanding different cultures is a major advantage. In fact, we
view diversity as a key to our future. Our brands appeal to an extraordinarily diverse
array of customers. And they are sold by an equally diverse group of retailers.
To truly understand the needs of our customers and consum ers -- and succeed in the
marketplace -- PepsiCo must reflect that diversity in our employees, our suppliers and in
everything we do.
Offering a workplace where diversity is valued helps us build the top-quality workforce so
crucial to our success -- by enabling us to attract and retain great people from a wide
spectrum of backgrounds.

Community
      We are committed to celebrating and supporting diversity in our community
through our corporate giving and community programs.              PepsiCo gives to the
community through the PepsiCo Foundation, the PepsiCo Community Affairs
Department and PepsiCo divisions. The PepsiCo Foundation and our operating divisions
gave grants to more than 1,000 community organizations, of which a significant portion
were organizations championing diversity. We also support organizations through gifts
in-kind, such as product, prem iums, printing, meeting arrangem ents, equipment
donations, support of events, conventions, journals and meetings.

Customers
        We are committed to marketing our products to all groups, treating all customers
with respect, sensitivity and fairness, while providing som e of the greatest products on
earth. Early in its history -- as far back as the 1940s -- Pepsi-Cola recognized the
importance of diversity. Pepsi pioneered targeted marketing and national lifestyle
advertising featuring m inorities. We developed education and sports programs
spotlighting minorities. We partnered with many groups to create programs that
contribute to minority communities. We sponsored major music tours by entertainers
such as Tina Turner. We support minority media and interests. Over the years, our
success has been recognized with num erous awards. Most importantly, our products are
purchased and enjoyed by all groups of consumers.

 Suppliers
     We are committed to welcoming business partners who represent all people and
purchasing quality products and services from a diverse supplier base. PepsiCo is a
leader in seeking out and working with minority and wom en suppliers. In 2006, we
surpassed $1 billion in spending with minority and wom en vendors. It is our policy to

                                              23
    promote the utilization of eligible M/WBE vendors in all aspects of the company's
    business.

    Employees and Careers




           We are committed to hiring and retaining the best talent to fill each and every job
    in the corporation. And we are equally committed to fostering an atm osphere of caring,
    open communication and candor am ong our employees, where we treat each other with
    respect.
    PepsiCo has been nationally recognized as one of the top places for wom en and
    minorities to work. We were one of the first companies to begin hiri ng minorities in
    professional positions, as far back as the 1940s. We were the first Fortune 500 company
    to have an African-American vice president.
           That commitm ent to diversity continues today. We place a great deal of emphasis
    on personal integrity and believe long-term results, from real accomplishm ents, are the
    only fair way to judge performance. We respect individual differences in culture, ethnicity
    and color. PepsiCo is committed to equal opportunity for all employees and applicants.
    We are committed to providing a workplace free from all forms of discrimination. We
    respect the right of individuals to achieve professional and personal balance in their
    lives.
           PepsiCo's commitm ent is underlined by our current diversity initiatives. They have
    been formulated to ensure that we attain our core value of diversity as a competitive
    advantage.




           Dedicated executives for m anaging diversity within our operating divisions.
           Multi-year strategic plans for diversity are developed with the same vigor and goal
    setting process as other business issues. Goals include diverse recruitment, improved
    retention and fostering a more inclusive culture.
           External Diversity Advisory Boards consisting of educators, politicians,
    practitioners and customers to advise PepsiCo senior management on a variety of
    issues relating to diverse audiences.
           Annual employee performance reviews incorporating inclusion-related goals for all
    managers.
           Mandatory annual Affirm ative Action Planning process.
           Bi-annual organizational health survey incorporating diversity questions and
    requiring analysis at the minority and female level. Senior management is held
    accountable for results.
           Corporate-sponsored multi-level program for training employees to work and
    manage in an inclusive environment.
                                               24
          Employee networks to mentor and support diverse employees.




     SUSTAINABLE ADVANTAGE



     Three m ajor sustainable advantages give PepsiCo a
     competitive edge as we operate in the global marketplace.

     Three major sustainable advantages give PepsiCo a competitive edge as we operate in
     the global marketplace:

1.        Big, muscular brands;
2.        Proven ability to innovate and create differentiated products; and
3.        Powerful go-to-market systems.

     Making it all work are our extraordinarily talented and dedicated people.

     When we take these com petitive advantages and invest in them with dollars generated
     from top-line growth and cost-saving initiatives, we sustain a value cycle for our
     shareholders.

     In essence, investing in innovation fuels the building of our brands.

     This in turn drives top-line growth.

     Dollars from that top-line growth are strategically reinvested back into new products and
     other innovation, along with cost-savings projects.

     Thus, the cycle continues.


            Indra Nooyi is Chairm an and Chief Executive Officer of PepsiCo. Mrs. Nooyi
     leads one of the world’s largest convenient food and beverage companies, with 2007
     annual revenues of more than $39 billion. The company operates in nearly 200
     countries, and em ploys m ore than 185,000 people worldwide. Its principal businesses
     include: Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana
     juices and Quaker foods. The PepsiCo portfolio includes 18 brands that generate $1
                                                 25
billion          or           more            each            in           annualretailsales.

PepsiCo’s commitment to sustainable growth, defined by Mrs. Nooyi as
Performance with Purpose is focused on generating healthy financial returns while giving
back to communities the company serves. This includes


meeting consumer needs for a spectrum of convenient foods and beverages,
replenishing the environment through water, energy and packaging initiatives, and
supporting its employees through a diverse and




inclusive environm ent that recruits and retains world-class talent. The company is listed
on        the      Dow        Jones       North     America       Sustainability       Index.
Mrs. Nooyi was nam ed President and CEO on October 1, 2006, and assumed the role of
Chairman on May 2, 2007. She has directed the company's global strategy for over a
decade and was the primary architect of PepsiCo's restructuring, including the
divestiture of its restaurants into the successful YUM! Brands, Inc., the spin-off and
public offering of com pany-owned bottling operations into anchor bottler Pepsi Bottling
Group (PBG), acquiring Tropicana, and the mer ger with Quaker Oats that brought the
vital Quaker and Gatorade businesses to PepsiCo. Recently, she has been driving
critical cross-business initiatives to enhance operations and enable PepsiCo to meet the
changing             needs            of        consum ers           and            retailers.
Prior to becoming CEO, Mrs. Nooyi served as President and Chief Financial Officer
since 2001, when she was also named to PepsiCo's board of directors. In this position,
she was responsible for PepsiCo’s corporate functions, including finance, strategy,
business process optimization, corporate platforms and innovation, procurement,
investor              relations           and            information             technology.
       Between February 2000 and April 2001, Mrs. Nooyi was Senior Vice President and
Chief Financial Officer of PepsiCo. Between 1996 and 1999, Mrs. Nooyi was Senior Vice
President           of         Corporate        Strategy         and         Development.
         Before joining PepsiCo in 1994, Mrs. Nooyi spent four years as Senior Vice
President of Strategy, and Strategic Marketing for Asea Brown Boveri. She was part of
the top management team responsible for the company's U.S. business as well as its
worldwide industrial businesses, generating about one-third of ABB's $30 billion in global
sales.

             Between 1986 and 1990, Mrs. Nooyi worked for Motorola, where she was
Vice President and Director of Corporate Strategy and Planning, having joined the
company in 1986 as the business development executive for its automotive a nd
industrial                               electronic                                 group.
Prior to Motorola, she spent six years directing internatio nal corporate strategy projects
at the Boston Consulting Group. Her clients ranged from textiles and consumer goods
companies        to     retailers     and       specialty       chemicals       producers.

                                             26
        Mrs. Nooyi began her career in India, where she held product manager pos itions
at Johnson & Johnson and at Mettur Beardsell, Ltd., a textile firm.
In addition to being a member of the PepsiCo board of directors, Mrs. Nooyi serves as a
member of the boards of the Federal Reserve Bank of New York, the International
Rescue Committee and Lincoln Center for the Performing Arts in New York City. She is
a Successor Fellow of Yale Corporation, mem ber of the Board of Trustees of
Eisenhower Fellowships, a m ember of the Executive Committee of the Trilateral
Commission and currently serves as Chairman of the US-India Business Council.
She holds a BS from Madras Christian College in Madras, an MBA from the Indian
Institute of Managem ent in Calcutta and a Master of Public and Private Management
from Yale University. Mrs. Nooyi is married and has two daughters.

27-April-08
Massimo F. d’Amore was named Chief Executive Officer of PepsiCo Am ericas
Beverages in Novem ber 2007. PepsiCo Americas Beverages has a beverage portfolio
including Pepsi-Cola North America, Gatorade, Tropicana, all of PepsiCo’s Latin
Am erican beverage businesses, and its North Am erica PepsiCo Food Service division.
Previously, Mr. d’Amore was Executive Vice President Commercial for PepsiCo
International, a position he assumed in November, 2005, after serving as President,
Latin Am erica Region for 4 years and SVP, Corporate Strategy & Developm ent for
PepsiCo for 2 years. Mr. d’Amore was also Senior Vice President and Chief Marketing
Officer for Pepsi-Cola International (PCI), a position he assumed in 1998 and Business
Unit     General     Manager        (BUGM),     Turkey/Central     Asia   since   1999.
Prior to PepsiCo, Mr. d’Am ore had a 15-year international career with Procter & Gamble
in Operations, Marketing and General Management in Europe and North Africa.
Mr. d’Amore is a native of Italy and an engineering graduate from the Swiss Polytechnic
Institute in Lausanne, where he also earned a Master of Science Degree. He has lived in
Italy, Switzerland, Germany, Belgium, Morocco, France and for the last 13 years in the
U.S. He is fluent in English, Italian and French; and has a working command of Spanish
and Germ an.               He has three children and resides in Westchester.
PepsiCo is one of the world’s largest convenient food and beverage companies, with
2007 revenues of more than $39 billion. The company operates in nearly 200 countries,
and em ploys more than 185,000 people worldwide. The PepsiCo portfolio includes 18
brands that generate $1 billion or more each in annual retail sales.




PepsiCo India’s commitment to Performance with Purpose

Performance with Purpose articulates PepsiCo India's belief that its businesses are
intrinsically connected to the community and world that surrounds it. Performance with
Purpose is about delivering m ore than financial perform ance, it’s about staying
committed to continuously giving back to the comm unity and helping enrich society.

To deliver on this commitment, PepsiCo continues to build on its strong foundation of
achievements and scale up its initiatives while focusing on the following 4 critical areas
that are linked to its business and where it can have the most impact.

                                           27
Replenishing water




PepsiCo India continues to replenish water and aims to achieve positive water balance
by 2009, which means it is committed to saving and recharging more water than it uses
in its beverage plants


Waste to Wealth




                               PepsiCo India continues to convert Waste to Wealth, to
make cities cleaner. This award winning initiative has established Zero Solid Waste
centres that benefit more than 2,00,000 community m embers throughout the country

Partnership with Farmers




                                 PepsiCo India’s Agri-partnerships with farm ers help
more than 15,000 farm ers across the country earn m ore...
Healthy Kids




                                        PepsiCo India stays committed to the health and
well-being of kids. It will continue to provide children with a diverse, health ful and fun


                                           28
portfolio, while sim ultaneously encouraging active lifestyle by expanding its Get Active
programme for kids, especially for school going children .



THE INDIAN SOFT DRINK HISTORY

      Gold Spot is considered as the first branded soft drink in Indi a it was introduced by
Parle in early forties. Coca-Cola was the foreign soft drink to be introduced in Indian
markets. The Coca-Cola Company entered India in the early fifties, when four bottling
plants were set up at Mum bai, Kolkotta, Delhi, and Kanpur. Coca-Cola enjoyed a good
beginning and dominated the market. Parle exports private limited, the major domestic
player, and later in 1970 introduced ―Limca‖ lem on soft drink. Before Limca’s they had
attentively introduced ―cola Pepino‖ which was soon withdr awn from the m arket following
the confrontation with Coca- Cola.

In July 1977 Coca-Cola left India following a public dispute over shareholding Structure
and im ports permits. Coca-Cola left a big gap, which was filled by several com panies
who came forward pushing different brands in m arket. Parle Products introduced their
Cola ―Thum ps Up‖, pure drinks introduced

 ―Double Seven‖ ―Thrill‖, ―Rush‖, ―Sprint‖. At the sam e time various regional soft brands
played an independent role in their respective territor ies like ―Duke‖, ―mangola‖.

 After coke was asked to leave India Pepsi began to lay plans to enter this huge market.
Pepsi started its operations in April 1989 for beverages snack foods and export
business. In 1990 first Pepsi Cola was produced in India. In the next year 1991,
production of Mirinda and 7up started, the production of Slice Teem, Fountain Pepsi
started in 1993.

  Coca-Cola came back again in India in October 1993 and was launched in Agra.It
joined hands with Parle Exports Pvt. Ltd. To enter India and gradually took over the
same company. The nineties also saw a new foreign entrant Cadbury Schweppes that
rolled out Canada dry and Crush in metropolitan cities. Pepsi entered the cloudy lem on
market category by launching its Mirinda lemon in 1998.

 In May 1999 a notification, presented the prevention of food adulteration (fourth
amendment) Rules 1999, allowed the use of the artificial Sweeteners, aspartame and
acesulfame potassium in The formulation of soft drinks-which was what made the entry
of Diet Pepsi and Diet Coke. Coca-Cola also rolled out its popular clear lem on drink
Sprite in India in the same year 1999.

       Soft drinks can trace their history back to the mineral water found in springs.
       Soft drinks can trace their history back to the mineral water found in natural
springs. Bathing in natural springs has long been considered a healthy thing to do; and
mineral water was said to have curative powers. Scientists soon discovered that gas
carbonium or carbon dioxide was behind the bubbles in natural mineral water.

      The first marketed soft drinks (non-carbonated) appeared in the 17th century.
They were made from water and lemon juice sweetened with honey. In 1676, the
Compagnie de Limonadiers of Paris were granted a m onopoly for the sale of lemonade

                                            29
soft drinks. Vendors would carry tanks of lemonade on their backs and dispensed cups
of the soft drink to thirsty Parisians.

Joseph Priestley
In 1767, the first drinkable man-made glass of carbonated water was created by
Englishm en Doctor Joseph Priestley.

      Three years later, Swedish chem ist Torbern Bergman invented a generating
apparatus that made carbonated water from chalk by the use of sulfuric acid. Bergman's
apparatus allowed imitation mineral water to be produced in large am ounts.

John Mathews
        In 1810, the first United States patent was issued for the "means of mass
manufacture of imitation mineral waters" to Sim ons and Rundell of Charleston, South
Carolina. However, carbonated beverages did not achieve great popularity in Am erica
until 1832, when John Mathews invented his apparatus for the making carbonated water.
John Mathews then m ass-manufactured his apparatus for sale to soda fountain owners.



Health Properties of Mineral Water
        The drinking of either natural or artificial mineral water was considered a healthy
practice. The Am erican pharm acists selling mineral waters began to add m ed icinal and
flavorful herbs to unflavored mineral water.
        They used birch bark, dandelion, sarsaparilla, and fruit extracts. Some historians
consider that the first flavored carbonated soft drink was that m ade in 1807 by Doctor
Philip Syng Physick of Philadelphia. Early American pharmacies with soda fountains
becam e a popular part of culture. The customers soon wanted to take their "health"
drinks hom e with them and a soft drink bottling industry grew from consumer demand.


The Soft Drink Bottling Industry
         Over 1,500 U.S. patents were filed for either a cork, cap, or lid for the carbonated
drink bottle tops during the early days of the bottling industry. Carbonated drink bottl es
are under a lot of pressure from the gas. Inventors were trying to find the best way to
prevent the carbon dioxide or bubbles from escaping. In 1892, the "Crown Cork Bottle
Seal" was patented by William Painter, a Baltimore machine shop operator. It was the
first very successful method of keeping the bubbles in the bottle.

Automatic Production of Glass Bottles
        In 1899, the first patent was issued for a glass-blowing machine for the automatic
production of glass bottles. Earlier glass bottles had all bee n hand-blown. Four years
later, the new bottle-blowing machine was in operation. It was first operated by the
inventor, Michael Owens, an employee of Libby Glass Company. Within a few years,
glass bottle production increased from 1,500 bottles a day to 57,000 bottles a day.



      Ninety years after the invention of what becom e one of the most favored drinks
globally in 1988. Pepsi entered India flanged with heavy resources and riding the winds
of change of a newly opened economy. First, Pepsi has only franchise unit. Pepsi gave
                                            30
his concentrate to small factory and they make beverage.

      In 1988, Pepsi set up its offices in India. In this com pany Pepsi operates as
PEPSI Foods Pepsi Co. India Holdings and Pepsi India marketing.

       The mission was to change the tastes and life style of a comm on Indian, who
identified soft drinks and beverages as a few available cold drinks, squashes and
concentrates.

        When it came to a refreshing drink conservative consumers would back to
traditional nimboo pani, jaljeeram lassi etc.

        Although India has a per capita consumption as low as 3 per person as
compared to 400 in USm India has one of the largest num ber of potential consumers in
a world with a population of an arab, Every Indian guzzles 27 bottles of soft drink every
year, an increase of one bottle per capita consumption would mean stating 900 bottles
extra. India soft drink is of worth RS. 1800 crores with annual growth at the rate of20% to
25%.



       All the activities of Pepsi Foods Pepsi Co, India Holdings and Pepsi India
Marketing Com pany are controlled by business Unit (BU) located at GURGAON. This
BU is divided into various marketing units (MU's). All except the North and Market Units
have common borders with states comprising them.

       The market units demarcate the areas, which are "Coboised" i.e.Have Company
owned bottling operations(COBO). In these units there are company owned bottling
plants while in other areas the operations are run by a franchisee these areas are
referred to as Fanchisee Owned Bottling Operations (FOBO'S) and some and in some
others Joint Venture operate.

COBO - In the COBO, the com pany has total control of the decisions and
implementations undertaken, but for this the company has to invest its own money.

FOBO - The FOBO’S are independent to take their own marketing and operational
decisions with no major interference form the company.

        The FOBO's are supplied the concentrate from the company and they have to
run the show, there after. Pepsi maintains ownership of the trademarks and is prim arily
responsible for ownership in a local bottling operation. This helps Pepsi m aintain strong
trademark on the other party's resource and expertise. The PCI workflow concentrates
on Selling, Making and Delivering Pepsi- Cola.

       Pepsi -Cola is a com pany with a "Low m argin, high volum e business" Pepsi Co.
deals in the carbonated Soft Drinks (CSD's) Market.

       CSD's fall in two categories-Cola and flavors. Coals concentrate on Pepsi
whereas flavors deal with orange and Lemon. In India the flavors are Mirinda Orange
and Lime. Slice is a fruit Juice concentrate based Drink.


                                           31
           Starting out in 1989, with that name of "Lehar Pepsi", the company has grown
    leaps and bounds ever since with competition increasing with reentry of coke a few
    years ago. Thanks to an early lead and a better understanding of the m arket, India
    remains am ounts the handful of markets worldwide where Pepsi is ahead of its archival
    Coke.

            Despite being the global Pepsi has build its success on meeting out the Indian
    customer's needs. Pepsi has made its brand synchronize with localized events and
    traditions. Pepsi maintained its top of mind awareness with roadside signage and
    reminders. The partner type relationship with bottles, FOBOs as well as COBOs cover
    most of the com pany adequacy.



            One of the strongest w eapons in Pepsi's armory is the flexibility it has
    empowered its people with. Ht Pepsi every em ployee, may be a m anager of a salesman,
    have an authority to take whatever steps he or she feels will make the consumers aware
    of the brand and increase its consum ption. Thus Pepsi believed in establishing and
    nurturing creditability of the salesman and m aking the joint commitment to grow
    business in accounts, All these factors together led to a high froth in the Indian market
    and constantly increasing m arket shar e.




    Product wise comparison of Pepsi with competitor Coca-Cola



        Pepsi                                 Coke, Thumps Up
        Pepsi Aha
        Mirinda ( orange+le mon+apple)       Fanta(orange),Limca
        Teem Soda
        Slice                                M aaja
        7UP                                  Sprite
        Mountain dew                        Kinle y(soda)
        Diet Pepsi                           Diet Coke
        Aquafina(mineral water)             Kinle y (mineral water)




    Distribution Channel and strategies

                                              32
    ―Marketing channels are sets of interdependent organizations involved in the process of
    making a product or service available for use or consumption‖
                                              Philip Kotler




    Distribution (Place) Strategies
● Product availability where and when customers want them.
● Involves all activities from raw materials to finished products
    Basic Channels of Distribution
                                                                        Place
                            Manufacturers/products



                                                                    Agents/brokers


                                         Wholesalers/distributors


                        Retailers                                   Retailers


                        Consumers and organizational end users

    Distribution Objective
    Minimize total distribution costs for a given service output
    Determine the target segments and the best channels for each segment
    Objectives may vary with product characteristics
    e.g. perishables, bulky products, non-standard items, products requiring installation &
    maintenance

    DISTRIBUTION CHANNELS (Pepsi)

           There are two marketing channels that involve in the transfer of product from the
    producer to the consumer. The interm ediaries involved in the transfer are distributors
    and retailers.

    DISTRIBUTORS

        Distributors are appointed agents of the company who make orders to the company
    by paying in advance through drafts, stock the products in their godowns and supply
    them to outlets through their fleet of delivery was and a team of salesmen and drivers.
    They are allowed to sell to com pany's product to the retailers in a specified area. The
    company divides this area into routes. Each route is covered by one unit i.e. one de

                                                33
    livery van, one salesman one driver, one helper etc. These units and godown are their
    main investment. Distributors have to invest in empty bottles and crates too, so t hat they
    can maintain a specified quantity of reserve stock and facilitate the quick ratation of
    glass crates.

           The company evaluates its distributors at the end of the year and makes plans for
    the next year. Company fixes the targets for each distributor according to market size,
    last year’s sales, potential growth assum ption based on deposit of empties and
    installation of coolers at outlets. Distributors are awarded with a fair m argin of RS. 10 per
    crate for their service. This margin could be increased for the sale above the targets,
    company offers are met with distributors before appointing them. Distributor com plying
    with many schemes and contests for its customers for pushing different brands and
    giving various services. Company also offers many gifts like, briefcase, and handbags.
    T-shirts, caps etc.to encourage the distributors. If distributor does not agree with the
    conditions of these agreem ent com pany m ay reduce the area of distributor or may even
    terminate the relationship.



    RETAILERS

    The sale of particular soft drinks depends a lot entirely on retailer’s wish. Like if he does
    not keep Aquafina and if his shop is at the prime location then certainly the customer
    with turn towards other cola drinks like Bisleri, Bailley ,Kinley etc. This all goes to prove
    that retailer is king. So retailers require special focus from the company. Pepsi Co. helps
    the retailers to serve its custom er better by providing good margin to them for storing its
    product using merchandising to im prove in-store product display, installing cooling
    equipment in outlets to make the product ready to drink and offering different promotion
    schemes to them tim e to time to push different brands, Pepsi Co. Provides a fair margin
    of RS. 24 per crate to the retailers.




    CUSTOMER SERVICE DEPARTMENT

          Customer Service is a support function to sales and marketing Departm ent and is
    concerned with effectively dealing with all custom er com plaints

    This starts from:

        Ensuring Receipt, Documentation and Follow Up of all com plaints to be take care of
    within a specified tim e in order to achieve the ensure Custom er (retailer) distributor and
    consumer Satisfaction. The Custom er complains directly t hrough phone or pager or
    through the sales team visiting them. Types of Complaints handled are related to:

     Consum er
     Signage and Schem es
     Supply and Service
     Quality of Product
     Cooling Equipment

                                                 34
     A Custom er Service executive who in turn co-ordinates with five Customer Service
Representative positioned in the five sales divisions in UP-Lucknow, Kanpur, Gorakhpur,
LUCKNOW and Bareilly heads customer service department at the unit office. These
Customer Service Representative handle customer service functions in t heir respective
territories.



MARKETING DEPARTMENT

Marketing department is mainly concerned with promoting "TOM" i.e.‖ Top of the Mind
Awareness for Pepsi as it is a consumer oriented organization. It performs the following
functions to build consum er and customer preference.

Signage: This includes putting up of glow gings, banners, wall paintings, hoardings,
kiosks etc.

Promotions:         This includes ad cam paigns, sales promotions, new packages and
brand launches. Events this includes sponsoring events at national, state, district and
city level e.g. sports tournaments, rock shows Musical Nights, Dance competitions,
School and college annual festivals etc.

       All these activities are carried out by the unit office with the help of guidelines
issued by the BU in the form of an annual marketing calendar and budget.

       Marketing departm ent at the Unit Office is headed by a Marketing Manager and
has three Marketing Executives. The marketing department co ordinates with the five
sale division in UP-Lucknow, Kanpur, LUCKNOW, Goarakhpur and Bareilly to
implements the various marketing programs

ADVERTISING & PUBLICITY




                                           35
         Pepsi Co. is one of the biggest and spenders in India. It is also one of the biggest
global ad spenders. It has long a list of endorsers from pop star Ricky martin to file stars
Shahrukh Khan, Am itabh Bacchan etc. & Cricket stars Sachin Tendulkar, V.V.S Laxman,
Harbhajan Singh etc. Hindustan Thompsom Associates, the big gets advertising agency
of India has the account of Pepsi Co. is known for its board cast advertising but it also
spends a lot in non board cast advertising i.e. hoarding, banners, posters stickers,
specialties, hangar,dealer board, glow signboards, wall painting and news paper. The
expenses on these type of advertising are made at territory or unit level. LUCKNOW
territory has assigned two local advertising agencies R.D. Associates and Krishna for its
territorial advertising.




Research Methodology
INTRODUCTION

                                            36
             Business research can be defined as a systematic and objective process of
     gathering, recording and analyzing data that provides inform ation to guide business
     decisions. It is used either to understand market trends, to find the optimal marketing
     mix, to devise effective HR policies, or to find the best investm ent options.

             In the present fast track business environment marked by cutthroat competition,
     many organizations rely on business research to gain a competitive advantage and
     greater market share. A good research study helps an organization understand
     processes, products, customers, m arkets and com petition and to develop policies,
     strategies, and tactics that are most likely to succeed.

     ROLE OF BUSINESS RESEARCH IN DECISION-MAKING

           For effective planning and implem entation of business decisions, accurate
     information about the internal and external business environments is of primary
     importance. The key objective of business research is to provide accurate, relevant, and
     timely information to the top management, so that they can m ake effective decisions.

        The business decision-making process in an organization going through the following
     key interrelated stages:

      Problem/opportunity Identification
      Problem/opportunity prioritization and selection
      Problem/opportunity resolution
      Im plementing the selected course of action

     Business Research helps the management in each of the stages by providing useful a nd
     timely information



     RESEARCH OBJECTIVE

1-        Study the distribution network of Pepsi



2-        To com paratively analyse the stock of Pepsi and coke with retailers of Pepsi.



3-        To study the retailers satisfaction.



4-        To find out the way to enhance the sale of Pepsi.

     RESEARCH DESIGN

        A research design is the arrangem ent of conditioned for collection and analysis of
     data in a manner that aims to combine relevance to the research purpose which

                                                 37
     economy in procedure. Main characteristics of research design can be summarized in
     two words-

1-        Anticipation
2-        Specification

     My research design is ―DISCRIPTIVE RESEARCH DESIGN‖

            In my research, researcher has conducted a market Survey of the Anti Pepsi
     Outlets in Lucknow area.



     TYPE OF RESEARCH:
     The basic types of research are as follows :

     1.   Descriptive research:
     The m ajor purpose of this research is description of the state of affairs as it exist at
     present.



     2.   Analytical Research:
     In this research, the researcher has to use facts or inform ation already available these to
     make, and analyze these to make a critical evaluation of the material.



     3.   Applied research:
     It aims and finding a solution for an immediate problem facing a society or an
     industry/business organization.



     4.   Fundamental research:
     It mainly concerned with generalization & with the formulation of a theory



     5.   Quantitative Research:
     It is based on the m easurement of quantity or am ount. It is applicable to phenomena that
     can be expressed in terms of quantity.

     6.   Qualitative Research:
     It is concerned with the qualitative phenom enon, i.e., phenom ena relating to or involving
     or king.

     7.   Conceptual Research:

                                                 38
It is related to some abstract ideas or theory.

8.    Empirical Research:
It is data- based research, coming with a conclusions which are Capable of being
verified by the observation and experiment.

9.    Diagnostic Research:
Such a research fallow case –study method or in depth approaches to reach the basic
casual relation.

10. Exploratory Research:
The objective of this research is the developm ent of hypothesis rather than their t esting.


Census Method
In this analysis Marketer have used census method instead of Sam pling Method.
Marketer have surveyed all retailers which do not sale Pepsi or sell very less and come
under Shukla Sales Distributor at Sitapur Road , Lucknow.




STEPS IN THE RESEARCH PROCESS


           1.     Identifying & Defining Problem/ Opportunity




           2.              Planning the Research Design




           3.               Selecting a Research Method




           4.            Selecting the Sampling Procedure

                                             39
               5.                  Data Collection




               6.                  Evaluating the Data




               7.     Preparing and presenting the Research Report




    Source of Information

    In our research we have made use of both primary and secondary data.

    PRIM ARY DAT A:
       Schedule
       Personal interview
       Telephonic interaction
       e-mail

    SECONDARY DAT A:
      Articles published in different m agazines.
      Article published in internet.
      Internet.


    SWOT Analysis
             SWOT analysis is a tool for auditing an organization and its environment. It is the
    first stage of planning and helps marketers to focus on key issues. SWOT stands for
    strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are
    internal factors. Opportunities and threats are external factors




                                                40
                Things the company does well.

Internal
           S
                Things the company does not do well.
           W
                Conditions in the external environment

External
           O    that favor strengths.


                Conditions in the external environment
           T    that do not relate to existing strengths or
                favor areas of current weakness.




   Strengths    ●   Production Costs
       and      ●   Marketing Skills
   Weaknesses   ●   Employee Capabilities
   (INTERNAL)   ●   Financial Resources
                ●   Available Technology
                ●   Company/Brand Image




                     41
             Opportunities                       ●Social
                 And                             ●Demographic
               Threats                           ●Economic
             (EXTERNAL)                          ●Technological
                                                 ●Political/Legal
                                                 ●Competitive




     Strengths-
1.    Believe on the customer satisfaction.
2.    Pepsi has a broader product line and outstanding reputation.
3.    Record revenues and increasing market share
4.    Number one maker of snacks, such as corn chips and potato chips
5.    Great brands, strong distribution, innovative capabilities
6.    popular with younger people, wide array of brands
7.    has a big share , popular, well know by costum ers, hier celebrities for prom otion
8.    company has good market share in Lucknow.
9.    Company has a Brand Equity am ong Consum ers.



     Weaknesses-
1-    No provision for regular replacement of damage of bottles.
2-    Distribution is not proper so we can say not justified .
3-    not as popular with older crowd, not associated with key restaurants (i.e. coke /
     McDonalds', while Pepsi / Pizza Hut)


     Opportunities-
1.    water related products, non-soft drinks, energy drinks
                                                42
2.     Increase the coverage areas.
3.     Increase market share by improving service
4.     Increase the target consumer every year.
5.     Company can go for m ore Monopoly counters .



     Threats-
1.     Disributors are reducing in Lucknow city.
2.     constant com petition with coke. Olym pic branding from coke .
3.     other drink companies are increasing competition.
4.     Decline in market reputation due to ineffectiveness & declaring service.
5.     Aggressive marketing strategies of Coke.




     Project Analysis

     Project

     “Analysis of Anti Pepsi Behavior of the Retail Outlets”


     Description

     The trainee was required to find out those outlets which are either not selling Pepsi or
     selling in very less amount. Region for the project was LUCKNOW region. This project
     was aim ed at finding out the shops, which were not promoting Pepsi and selling
     competitor brands. It was also aimed at knowing the reason for anti Pepsi behavior of
     outlets in the region, their requirements from company and willingness to sell Pepsi
     brands.

     Purpose

     Main purpose for this project was to make managem ent aware of the total no. Of outlets
     in their region which were not selling Pepsi. It was also to plan their new course of action

                                                 43
    keeping in mind the current market position of Pepsi as well as of Coke. This was
    viewing the market share of Pepsi in comparison of Coke. This report gives information
    to m anagement about the outlets uncovered by Pepsi and their requirem ents to the
    company.

        The marketing of its brand is excellent and is very successful to reach its brand in
    LUCKNOW. Overall the market of PepsiCo brand is good in comparison with Coke.
    There are very few outlets which are not selling Pepsi brands.



    DETAILS OF THE SURVEY

            The trainee was required to visit all the outlets in the specified area of his
    distributor, which was told to us by the CE concerned. We were required to be given the
    route map of the specified area. The area was to thoroughly survey without leaving any
    of the outlets.

         Initially the survey was to start with the route vehicle of the distributor of that area.
    Two days had to be devoted with the route vehicle and noting down the name of the
    outlets and other particulars where ever their route vehicle visited the outlets. It was to
    get familiarized with the area. The next couple of days had to be surveyed individually in
    the sam e area trying to find out those outlets in that area which was not attended by the
    route vehicle. This was how the whole survey was to be conducted.

      The m ain aim of this survey was to find out those outlets which are either new or
    remain unnoticed/unattended by the route vehicle or where the Pepsi products were not
    reaching.

        For Pepsi these outlets is going to be the main focus of the survey. It was to know
    the exact strength of outlets of the area which were not selling Pepsi or selling very less.
    The trainee was required to collect the following information from each outlet he
    surveyed.

     Name of the outlets
     Address of the outlets
     Status of the outlet
     Cooling Equipment
     Sale of the outlet
     Brands on sale
     Require ment of outlet
     Willingness to sale pepsi.
     Reason for anti Pepsi



    Name of the outlets:

    The trainee was to note down the nam e of the outlet visited

    Address of the outlet:
                                                 44
Complete address of the outlets was to be noted by the trainee

Sale of the outlet

Sale of the outlet was to be noted on per day basis.

Brands on sale

Check out the brands available at the outlet.

Require ment of outlets

Ask what the shopkeeper wants from the Company.

Willingness to sale Pepsi

To know if shopkeeper want to sell Pepsi or not.



Reason for anti Pepsi

To know why shopkeeper is not selling/selling less the Pepsi brands.

Status of the outlet:

      The status of the outlet was to be enquired of from the outlet owner and also by
observation. Status here meant the nature of the outlet.

       This was to know weather the outlet sold only Pepsi products or only Coke
products or either both of these. It will help to know the nature of market in that area.




                                           45
COMPARATIVE ANALYSIS AND PEPSI STOCK SHARE

QUESTION-1   which company’s stock do you have?

        Pepsi                        14
        Coke                         70
        Both                         14
        Total retailer               70




                                46
                                 STOCK CHART

                                          70
           70
           60
           50
           40
           30
                        14                                    14
           20
           10
            0
                    Pepsi             Coke             Both




INTERPRET ATION:-

 According to m y study, 14 retailers have Pepsi stock, 70 have Coke stock and 14 have
both.




QUESTION- 2 Which company’s VISI you have?


PEPSI                                            5
COKE                                             69
BOTH                                             5
TOTAL                                            70



                                 Visi chart


           70                        69 47
           60
           50
INTERPRET ATION :-

     According to m y study of anti Pepsi outlets, 69 retailers have Coke VISI, 5 have
Pepsi visi and 5 have both Pepsi and coke visi.




QUESTION-3 Do you need Pepsi VISI?

YES                                             50

NO                                              20

T0TAL                                           70




                       Pepsi visi requirement




                                         48

     NO          20
                                                                 NO
INTERPRET ATION:-

According to my study, 50 retailers need Pepsi VISI.




QUESTION-4 Do you want to sell Pepsi?


YES                                            15

NO                                             55

TOTAL                                          70




                            Want to sell Pepsi



                                          49        15; 21%



                                                              yes
INTERPRET ATION:-

         According to my study, 15 retailers says yes and 55 anti Pepsi retailers don’t
want to sell Pepsi.




QUESTION- 5      Did you sell Pepsi before?


YES                                            58

NO                                             12

TOTAL                                          70




                               sold Pepsi before



                                          50
      60

      50

      40
INTERPRET ATION:-

   According to my study, 58 retailers have sold Pepsi earlier and now converted into
coke and 12 have never sold Pepsi.




QUESTION- 6     Is Pepsi providing right service or not?

YES                                           22

NO                                            48

TOTAL                                         70




                         SERVICE CHART




                                         51
                                       22, 31%


                                                                 yes
 INTERPRET ATION:-

     According to m y study 22 retailers said yes and 48 said no.




 QUESTION- 7 What is the daily sale of your outlet?

 Average                                             48

 Good                                                16

 Very good                                           06


Average=1-3 pt.; Good=3-5 pt.; Very good=more than 5 pt. daily in season.




                               sale of the outlet

                                            52




                       6, 9%
 INTERPRET ATION:-
 According to my study, 48 retailershave average sale, 16 have good sale and 06
 retailors have very good sale of soft drink.




QUESTION- 8 What is the reason of being anti Pepsi?



 Visi not provided                                    25

 Tie up with Coke/ coke approached first              17

 Pepsi service not suits                              16

 Schemes are not as good as Coke’s                    12

 TOTAL                                                70




                                           53
                                                           Visi not provided

             12, 17%
                                           25, 36%         Tie up with Coke/ coke
                                                           approached first
                                                           Pepsi service not suits
      16, 23%
                             17, 24%
                                                           Schemes are not as good
                                                           as Coke’s




INTERPRET ATION:-
          According to m y study, 25 retailers don’t sell Pepsi due to absence of Pepsi visi,
17 retailers due to coke tie ups and first approach, 16 due to bad service and 12 due to
not so good schemes.




FINDINGS:-
    Shop owners have not been properly communicated about the Pepsi terms &
conditions of providing cooling equipm ent. They asked us as how they could get cooling
equipment from the company.

Distributor is not very active regarding it.

SUGGESTIONS:

      Pepsi can enhance its program of providing cooling equipment to more no. Of
outlet owner which will compel them to keep only the Pepsi Products in these
coolers/freezers.

IMPACT

                                               54
It will increase the popularity &brand image of Pepsi in the eyes of outlet owners, which
is equally important for increase sale.

It will help the shopkeepers in providing chilled Pepsi products to the ultimate customers
all the time by increasing their capacity of chilling.

STATUS

Status tells us the exact nature of outlets. It tells weather the outlets have only PEPSI
products or only coke products or a mix of both. By studying this one can identify those
shops, which has the potential and capacity of becoming the exclusive Pepsi outlet. This
will help in two ways:

1. It will increase the sale and market strength of Pepsi.

2. It will sim ultaneously sustain the sale of its competitor products.

The Anti Pepsi Outlets surveyed in LUCKNOW = 70

Exclusive PEPSI outlets = 0

Exclusive COKE outlets = 56

Outlets having both types of soft drinks = 14




                                 Status of outlet


             60
             50
             40
             30                             56
             20
             10                                               14
                          0
              0
                      Pepsi              Coke              Both

                                              55
    Hence am ong 70 anti Pepsi outlets, 14 keep both Coke and Pepsi but Pepsi in very less
    amount.

    Suggestion

           If proper attention is given then many of the shops in these areas have the
    capacity & will to become the exclusive Pepsi outl ets. In my View those shops which
    have a good regular sale of 5 to 10 cases per day should be targeted to convert them in
    exclusive outlets.



    Over All Findings of the Survey

         Survey of Anti Pepsi outlets shows that there are considerable no. of outlets whic h
    are not selling Pepsi.
         There are various reasons of anti Pepsi behavior of retailers as:-
         Large no. of retailers want visi coolers.
         Company does not provide schemes properly.
         Company does not provide discount properly.
         Some retailers want large size of Pepsi VISI.
         Some retailers are not satisfied with service of Pepsi so they are selling coke.
         All brands of Pepsi are not available so retailers suffers with shortage of stock.
         The no. of Pepsi is high in comparison of coke but some retailers prefer to sale
    coke because of shortage of Pepsi and poor distribution channel.
         Retailers need display & schemes so that they can increase the sale of Pepsi.
         Retailers need the sign boards to attract customers.
         The distribution is not so proper or we can say not satisfactory.
         Many retailers want to tie up with Pepsi but company don’t approach them at right
    time.
         In som e area Pepsi enjoying monopoly and somewhere coke.
         Retailers complain about lower margin on cold drinks due to rising electricity bills
    and other expenses that are incurred.
         Route agents and salesman do not cover their routes properly.
         Retailers complaints about shortages during summer season and complained that
    route agents and salesman do not visit their outlets during the summer season.
         Some Outlets owners are very angry with the companies performance
         Our product start off late as result other brand reach the retailers &capture the
    markets.




    Suggestion Regarding Improvement



                                               56
           CE needs to personally contact with retailers who help in knowing the activities of
     the distributors as well as help in Promoting the business.
           It should focus its attention to the untapped m arket where it can considerably
     increase its market share.
           Distributors should from time to time take the pain of finding out the requirem ent of
     retailers and the problem they are facing.
           The process of visi installation should be made easy.
           There should attention be paid to the repairing of visi out of order.
           Pepsi should work hard more to increase its market share in some areas like
     Cantt. Road, Hazrat Ganj etc.
           Advertisement and publicity in the untapped market by way of signage, racks,
     paintings, banners, hoarding etc. should be expanded.
           Margin to retailers should be taken care off and may be possible ought to be
     increased without increasing the overall price.
           Distributors should check the working of route agents or salesman on regular
     basis.
           Shortages of the product during the summer season if possible should be reduced.
     It communicates bad message among the retailers as well as the consumers.
           Signages & merchandise should be installed against the sale performance of the
     outlets as well as the need of the market.
           Survey by the top officials should be made in the un tapped areas to access the
     real situation and should be done as a surprise visit instead of planned visit.




            LIMITATIONS OF STUDY


            It is well know fact that constraint and lim itations are bound to be present in any
     study do this also has some lim itation as:-

1-        The survey has been conducted only in few areas of Lucknow due to limited time.
2-        It is very difficult to m ake people understand the significance of conducting survey.
3-        Lack of retailer’s interest to answer the questions is also an im portant limitation.
4-        Lack of knowledge of area has affected the research.
5-        the inform ation given by the client may be false and biased.




     CONCLUSON



                                                 57
 The summer training project was focused on “Analysis of Anti Pepsi Behavior of

 the Retail Outlets”


         Pepsi is superior brand than coca-cola but from som e time its m arket share has
 come down due to various reasons. In India the com pany is running with very fast
 speed. The popularity of Pepsi is better than coke. It has bright future.
  It has dem ocratic and communicative style of functioning.




 Conclusion has been drawn:-

1- proper approach to the retailers at the tim e of tie ups is required.

2-The retailer’s satisfaction is low.

4- Company does not provide schemes properly.

5- No provision for regular replacement of damage of bottles.


6- Many complains of retailers does not listen by the com pany.

7- Many retailers want m onopoly but company does not provide.



               QUESTIONNAIRE FOR RETAILERS


Name of outlet:                                            Name of the owner:

Address:                                                   Phone:



 QUESTION-1          which company’s stock do you have?
a) Pepsi                            b) Coke                            c) Both
 QUESTION- 2 Which company’s VISI you have?
a) Pepsi                           b) Coke                             c) Both


 QUESTION-3 Do you need Pepsi VISI?
a) Yes                        b) No
                                               58
 QUESTION-4 Do you want to sell Pepsi?

a) Yes                        b) No

 QUESTION- 5       Did you sell Pepsi before?


a) Yes                        b) No
 QUESTION- 6      Is Pepsi providing right service or not?


a) Yes                        b) No

 QUESTION- 7 What is the daily sale of your outlet?

 a) Average                    b) Good                          c) Very good

 QUESTION- 8 What is the reason of being anti Pepsi?

 a) Visi not provided         b) Tie up with Coke/ coke approached first

c) Pepsi services not suits    d) Schemes are not as good as Coke’s




 BIBLOGRAPHY

 Books:
 Marketing Management – ―Philip Kotler‖
 Research Methodology – ―C.R. Kothari‖

 Web Sites

 www.google.com

 www.pepsico.com

 www.coca-cola.com

 www.ask.com

 www.wikipedia.org




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