Raju Project Report

8/4/2019 Raju Project Report

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LOVELY PROFESSIONAL UNIVERSITY

DEPARTMENT OF MANAGEMENT

PROJECT REPORT OF SUMMER TRAINING

ONDistribution strategy of Pepsi and Retailers satisfaction

Submittedto Lovely Professional University

In partial fulfillment of the

Requirements for the award of Degree of

Master of Business Administration

UNDER THE GUIDANCE OF: SUBMITTED BY:Mr. Sanjay Jindal Raju SawLect. Management Roll No. : Q3002B49

Reg. No.:11004488

DEPARTMENT OF MANAGEMENT

LOVELY PROFESSIONAL UNIVERSITY

JALANDHAR NEW DELHI GT ROAD

PHAGWARA

PUNJAB


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Faculty Guide Certificate

This is to certify that the project report entitled Distribution strategy of Pepsi and

Retailers satisfactionat Varun Beverage Pvt. Ltd. Submitted by Raju Saw is a bonafied

piece of work done under my direct supervision and guidance. No part of this work has been

submitted for any other degree of any university. The data sources have been duly

acknowledged. It may be considered for the evaluation in partial fulfillment of the

requirement for the awards of degree of Master in Business Administration (MBA).

Date: Signature

Mr. Sanjay Jindal

(Lect. Management)


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DECLARATION

I Raju Saw, Reg No. 11004488 here by declare that the project entitled Distribution

strategy of Pepsi and Retailers satisfactionatVarun Beveragehas been personally done

by me under the guidance ofMr.Sanjay Jindal in partial fulfillment of Post Graduation

Program- during academic year-. All the data represented in this project is true & correct to

the best of my knowledge & belief. This work has not been submitted for any other degree /

diploma exam elsewhere.

RAJU SAW


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ACKNOWLEDGEMENT

I am indebted to my project guide Mr. Pranav anand who gave me guidance,encouragement and inspiration throughout the project. I am very grateful to him for

his support that enabled me to enhance my knowledge and helped to draft the report. I

also express my sincere thanks to Mr. Sanjay Jindal for helping me and guiding me

in completing my project.

All in all, it was the pleasant learning experience for me in varun Beverages Pvt. Ltd,

thanks to all seniors and staff for making it so memorable. It was their encouragement

that, support and co operation, which made me, give some meaning to my project.

Finally, I thank my parents for the encouragement and support given

to me throughout the project work.

(Raju Saw)


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TABLE OF CONTENT

Page. No.

Chapter-1 Executive summary 6

Chapter -2 Introduction 7

COMPANY PROFILE IN US 8-9

COMPANY PROFILE-IN INDIA 9-10

BEVERAGE INDUSTRY 11-14

KEY ELEMENTS OF THE TRADE 15

PRODUCT PROFILE 16

PRICING 17

PRODUCT AND PROFILE 18-19

CHAPTER- 3 DISTRIBUTION NETWORK 20

DISTRIBUTION CHANNELS 21

NETWORK DESIGN 22-23

DISTRIBUTION STRATEGIES 24-25

CHAPTER 4

OBJECTIVE OF THE STUDY 26

LITERATURE REVIEW 26-28

CATEGORY MANAGEMENT 29-30

RESEARCH METHODOLOGY 31-32

CHAPTER - 5 DATA ANALYSIS 33-41

MARKET FINDINGS 42

CHAPTER 5 SWOT ANALYSIS 43

CONCLUSION 44

LIMITATIONS 45

RECOMMENDATIONS/SUGGESTIONS 46

BIBLIOGRAPHY 47

QUESTIONNAIRE 48-51


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EXECUTIVE SUMMARY

The aim behind this project is to know Distribution strategy of Pepsi and retailers

satisfaction of Varun Beverage Pvt. Ltd., Mohan nagar; it was done mainly to know the

satisfaction level of the Retailer and different services provided by the industry.

We are well aware of the fact that in the Indian context, the demand for soft drinks in found

increasing substantially, mainly on account of the changing lifestyle, which has been

influenced by the growing influence of corporate sector on the living habits or society. The

growing middle close is found to the fascinated to the western style of living. This promotes

frequent consumption of soft drink produced by the multinationals. The two global giants viz.

Pepsi Company and coca cola have been dominating the market shares and making the

business environment more volatize for each other of course, find coca cola number one in

the area but the threat and challenges generated by Pepsi Co., have been found making the

tasks difficult.

Thus, the project done for the Varun Beverages was carried by conducting a market survey

of retailer and filling the questionnaire consisted of question dealing with the satisfaction

level of the Retailer by the availability of various product and services provided by the

industry.

Channels of distribution are an important aspect of marketing strategy. Channels chosen for

the companys products effect every other marketing decision. On 1 JUNE I started my

project under the guidance ofMr. Pranav Anand (C.E.). I have been allocated the area for

survey in Mohan Nagar (Ghaziabad) region.

Number of Retailers Covered: - 100

Market Area Of Mohan Nagar :-

1. SAHIBABAD

2. KARKAR GAON

3. JHANDAPUR

4.SAHIBABAD MANDI

5. SURYANAGAR6. VAISALI


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Introduction

HISTORY OF PEPSI

PepsiCo is a USA based company having its head quarters at New York with the net worth of

$30-40 million. The average sales of the company are approx 90 million bottles per month.

Pepsi made it first international move in Russia in 1959. During the Khrushchev era, within

32 years Pepsi emerged as the biggest competitor for Coca Cola. Pepsi is available in 155

countries.

In any soft drink, on the globe Pepsi food is one of the largest soft drink companies in the

world with its headquarter in New York. It was invented by Pharmacist Culab D. Baradham

in 1898 to cure the disease Dyspepsia. It is from this word that its name was related to

Pepsi. Soon it entered the American market as soft drink, which at that time mostly

dominated by Coca Cola, but soon Pepsi able to dominate the Cola market, and there after it

never looked back. Pepsi and Coca Cola are engaged in ferocious cola war that has taken the

whole world by storm.

Pepsi entered the Indian soft drink in Kanpur in 1988 and began its production in May 1990

and soon it was giving the local contenders run for their money in soft drink market. It comes

out with dazzling marketing innovation that rocked the cola market, like selling the product

through function Pepsi outlets. Its advertisement agency was Hindustan Thomson

Association (HTA). Its advertisement budget for 1995-1996 was valued at Rs. 24 crores

which is likely to be increased manifold in coming years.

Pepsi food is one of the largest and best foreign investments in India. Till today it has

invested Rs. 500 crores in India to develop the local market. Pepsi has distributed exclusive

franchises in India to bottle its total product. There are 28 bottling plant of Pepsi in India.

Some are directly controlled by Pepsi and rest is under various franchisees.Pepsi stands 51st

position among the fortune 500 companies of the world. Its total capital is approx $3000

crores and total sales annually is worth $37 crores. Its total profit in the year 1996-97 was

worth Rs. 458 crores approx. The total number of employees engaged in the business is 45.25

lakhs globally.


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COMPANY PROFILE-IN U.S.

PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27

billion and over 143,000 employees. The company consists of the snack business of Frito Lay

North America and the beverage and food businesses of PepsiCo Beverages andFoods,which includes PepsiCo Beverages North America (Pepsi-Cola North America and

Gatorade/Tropicana North America) and Quaker Foods North America. PepsiCo

International includes the snack businesses of Frito- Lay International and beverage

businesses of PepsiCo Beverages International. PepsiCo brands are available in nearly 200

countries and territories.

Many of PepsiCo's brand names are over 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.

Pepsi-Cola Company - Pepsi-Cola (formulated in 1898), Diet Pepsi (1964) and Mountain

Dew (Introduced by Tip Corporation in 1948). Frito-Lay, Inc. Fritos brand corn chips

(created by Elmer Doolin in 1932), Lay's brand potato chips (created by Herman W. Lay in

1938), Cheetos brand cheese flavored snacks (1948), Ruffles brand potato chips (1958) and

Rolled Gold brand pretzels (acquired 1961) Pepsi co is the world leader in the food chain

business. It consists of many companies amongst which the prominent one is Pepsi cola, frito

lay, Pepsi food international, pizza hut, and KFC and taco bell. The group is presently into

three most profitable businesses namely, beverages, snack foods and restaurants. It has scores

of big brand available in nearly 150 countries across the globe.

The beverages segment primarily market Pepsi diet, mountain dew and other brands

Worldwide and 7UP outside the U.S. market. They are positioned in close competition with

Coca-Cola inc. of USA. A point to be noted is that coca cola get 80% of its profit from

international operation while same figure of Pepsi co. stand at 6%, the segment is also in the

bottling plants and distribution facilities.

The restaurant segment primarily consists of the operations of the worldwide pizza hut, Taco


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Bell and KFC. Long time no.2 player in the cola wars, Pepsi co. is widening the play field,

over the last years; the company has invested more than $2billion in its worldwide

operations. When Coca-Cola changed its formula in 1985, Pepsi stepped up its competition

with its long time archival claiming victory in the cola wars.

Coke and Pepsi expanded their rivalry to tea in 1991 when Pepsi formed a venture with

Lipton in response to cokes announced venture with nestle (Nestea) it has won over 30% of

the ready to drink tea market, a part of the so called "new age beverages segment. The

beverage industry has witness the phenomenal growth over the last few years necessitating

capacity increase and builds up of commensurate infrastructure to meet the business growth,

which is accordingly matched.

PepsiCos success is the result of:-

superior products

high standards of performance

distinctive competitive strategies

the high integrity of our people

COMPANY PROFILE-IN INDIA

PepsiCo entered India in 1989 and in the span of a little more than a decade it became the

country's largest selling soft drinks company. The Company has invested heavily in India

making it one of the largest multinational investors. The group has built an expansive

beverage, snack food and exports business and to support the operations are the group's 43

bottling plants in India, of which 15 are company owned and 28 are franchisee owned.

PepsiCo stays committed to providing its consumers with top quality beverages. Its diverse

portfolio of brands include the flagship cola brand - Pepsi; Diet Pepsi; 7Up; Mirinda;

Mountain Dew; Slice fruit drink; Tropicana brand 100% fruit juices in various flavours;

Aquafina packaged drinking water; Gatorade plus local brands Lehar Evervess Soda, Dukes

Lemonade and Mangola.

PepsiCo is also a dominant player in the snack food segment in India. PepsiCo's snack food

company Frito-Lay is the leader in the branded potato chip market. It manufactures Lay's

Potato Chips; Cheetos extruded snacks, Uncle Chips; traditional namkeen snacks under the

Kurkure and Lehar brands; and Quaker Oats.


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PepsiCo is one of the largest MNC exporters in India and its export business consist of three

categories - agri business, commodities and Pepsi system sales. PepsiCo has made significant

investments with the Punjab Agriculture University to develop a comprehensive

agrotechnology program that has helped thousands of farmers across India improve the yield

of their farms and the quality of their agricultural products. PepsiCo has leveraged its

knowledge in contract farming to develop seaweed cultivation in Tamil Nadu and has

partnered with the Government of Punjab to help farmers of the state through the utilization

of developed technology for citrus farming.

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. PepsiCo has also established zero waste centers and PET recycling supply

chains and assisted victims of natural disasters. PepsiCo stays dedicated in its endeavor to

develop community outreach programs by supporting rural water supply schemes,

administering medical camps in villages, providing computers to rural schools and creating

opportunities for women in rural areas through vocational training as an alternate means of

livelihood.

Soft drinks market in India

India is one of the top five markets in terms of growth of the soft drinks market. The per

capita consumption of soft drinks in the country is estimated to be around 6 bottles per annum

in the year 2003. It is very low compared to the corresponding figures in US (600+ bottles

per annum). But being one of the fastest growing markets and by the sheer volumes, India is

a promising market for soft drinks.

The major players in the soft drinks market in India are PepsiCo and Coca-Cola Co, like

elsewhere in the world. Coca-Cola acquired a number of local brands like Limca, Gold Spot

and Thumps Up when it entered Indian market for the second time. Pepsi Cos soft drink

portfolio also consists of Miranda and 7Up along with Pepsi. The market share of each of the

company is more or less the same, though there is a conflict in the estimates quoted by

different sources.


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The major ingredient in a soft drink is water. It constitutes close to 90% of the soft drink

content. Added to this, the drink also contains sweeteners, Carbon dioxide, Citric Acid/Malic

acid, Colors, Preservatives, Anti Oxidants and other emulsifying agents, etc.

BEVERAGE INDUSTRY

Indian Beverages industrys size is Rs. 8000 Crores and it is dominated by two players viz.

Pepsi & Coke only. This high profile industry has lot of potential for growth as per capita

consumption in India is 8 bottles a year as compared to 20 bottles in Sri Lanka, 14 in

Pakistan, while 12 bottles a person in Nepal.

The group manufactures and markets carbonated and Non-Carbonated Soft Drinks and

Mineral Water under Pepsi brand. The various flavors and sub-brands are Pepsi, Mirinda

Orange, Mirinda Lemon, Mountain Dew, and 7UP, Slice Mango, Evervess Soda and

Aquafina.

INGREDIENTS OF SOFT DRINK:

We only use the finest ingredients to make Pepsi-Cola products. To guarantee our consumers

consistent quality, each ingredient must pass our high standards, rigorous quality control testsand strict bottling procedures.

Pepsi-Cola products contain natural flavours, including extracts of the kola nut ND flavor oils

derived from natural sources such as citrus and other fruits. Caramel (made from corn sugar)

adds color and flavor to our colas. Other ingredients add a refreshing taste: phosphoric acid in

colas; citric acid and sodium citrate in Mountain Dew, Slice and Diet Pepsi.

We also put a freshness date on every can and bottle. Soft drinks may lose some flavor over

time so our freshness date tells consumers when the product is freshest and best tasting.

Every can and bottle of Pepsi-Cola products has a Nutrition Facts panel, which shows the

number of calories and other nutrients per serving. There is essentially no fat in any Pepsi-

Cola a product. The main ingredients found in Pepsi-Cola products include carbonated water,

carbohydrates, sugar, sodium, potassium and caffeine. For a complete breakdown by

ingredients by product, see our product information for Pepsi, Diet Pepsi, Mountain Dew,

Slice and Aquafina.


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Ascorbic Acid

Another name for Ascorbic Acid is Vitamin C the Ascorbic Acid used in our carbonated soft

drinks functions as an antioxidant to protect the flavors, color, and taste. In some beverages

we also add it to provide the nutritive value found in Vitamin C.

Aspartame

Aspartame is a sugar substitute used in our diet beverages and many other food products.

Aspartame is made of the same building blocks as protein, so it is considered a "nutritive

Sweetener," but the very small amounts used in diet drinks contribute no calories.

Blue1

Blue 1 is a FDA-approved food coloring used in a variety of products such as jellies,

condiments, puddings, and beverages.

Brominated Vegetable Oil (BVO)

Brominated vegetable oil has been used by the soft drink industry since 1931. It is a widely

used food additive that has been extensively tested and approved by the U.S. Food & Drug

Administration. Brominated vegetable oil is derived from soybean oil that has been modified

in order to keep the flavoring oils well blended.

Caffeine

Caffeine provides a characteristic flavor to soft drinks. Caffeine is naturally found in coffee,

tea and chocolate. For comparison, an 8-oz. cup of brewed coffee can have from 85-120 mg

of caffeine on average, while an 8-oz. serving of Pepsi contains about 25 mg of caffeine. An

8-oz. cup of coffee therefore contains three to four times as much caffeine found in a

caffeinated colon. There is no caffeine in Caffeine Free Pepsi, Caffeine Free Diet Pepsi,

Aquafina, Slice, Mountain Dew or Mirinda.

Caramel

Caramel is a flavoring that is added to some of our beverages.

Citric Acid

Citric Acid can be found in citrus fruits such as lemons and oranges. Citric acid is used to

bring out the flavor of other ingredients and imparts a tang or tartness to beverages. Citric

acid is not Vitamin C. the same fruits that have citric acid often have Vitamin C but the

technical name for Vitamin C is ascorbic acid.

Gum Arabic

Gum Arabic is a purified natural vegetable gum obtained from the acacia tree and is used in

keeping our carbonated beverages well blended.


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High Fructose Corn Syrup

High Fructose Corn Syrup (HFCS) is a sugar derived from corn and provides sweetness and

taste to our beverages. HFCS has the same sweetness as table sugar (sucrose) and has almot

the identical composition f fructose and glucose.

Natural Flavorings

Natural Flavorings are flavoring ingredients that are the essences or extracts derived from

natural plant sources. Natural Flavorings are what gives a product its distinctive flavor and

taste. Pepsi products are the only products with these distinct flavor blends, which are

considered part of our secret formula. The term natural flavor is defined by the food and drug

administration and all of our natural flavorings meet this definition.

Phosphoric Acid

A small amount of phosphoric acid is added to our soft drinks. However, it is greatly diluted

and is fully approved by the U.S. Food and Drug Administration for use in soft drinks.

Phosphoric acid provides tartness, essential to a well-rounded flavor. Phosphorus, like

calcium, is an essential mineral in bone. It is widely distributed in the food supply, including

fish, milk, meat, eggs and cereal grains.

Potassium

Potassium in Pepsi-Cola products may come from water or as part of certain ingredients. For

example, potassium may be combined with benzoic acid, which helps prevent spoilage and

flavor changes. Potassium is an electrolyte that helps meet the mineral needs of active people.

Quillaia

Quillaia Extract is a purified extract derived from the bark of the Quillaia tree. It is carefully

selected based on its characteristics. It is cooked, filtered and pasteurized. It is FDA

approved, non-hazardous. Quillaia is found in some of our frozen drinks.

Red 40

Red 40 is a FDA-approved food coloring used in beverages.


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Sodium

All of our products are "low sodium" and contains less than 110 mg per eight-fluid-ounce

serving. A number of beverages have less than 35-mg sodium per serving, so they are

considered "very low sodium" products.

Sugar

Regular soft drinks and sports drinks are sweetened with sugar. There are many types of

sugar available today. In soft drinks and sports drinks, the sugar is primarily high fructose

corn syrup, which comes from corn.

Total Carbohydrates

Total carbohydrates include the sugars and any carbohydrate-like parts of ingredients, such as

organic acids. Although diet drinks may have no sugar, they may contain more than half a

gram of carbohydrate.

Yellow5

Yellow 5 is a FDA-approved food coloring. Used since 1916, it is found in a variety of

products such as skim milk, yogurt and macaroni and cheese.


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KEY ELEMENTS OF THE TRADE

1. JO DIKHTA HAI WOH BIKTA HAI: - This is a company slogan, it is to increase the

visibility of the product, the company stresses more on increasing the number of outlets than

on the volumes of sales. That is the reason of the company providing visibility courses to the

Shopkeepers.

2. A BOTTLE THAT IS CHILLED IS SOLD: - In the industry it is considered that a

bottle is chilled or putting in cooling compartment is sold. That is the reason the policy

providing triages come up because according to the contract the shopkeeper has to keep only

& only Pepsis products in the visi cooler.

3. A BOTTLE LOSS TO COKE IS A GAIN TO PEPSI: - The competition is so strong

between the two companies i.e. fighting is on for each bottle that is to be sold in the market.

Competitive bidding goes on for each & every prestigious outlet in their region.

Monopolizing entries & fat foods joints is their first priority.

4. EMPTY kA HI KHEL HAI: - [Empty plays an important role]: - As discussed earlier the

distribution points keeps on putting up distribution schemes for retailers i.e. like two bottles

of solution free with the purchase of every one carat of solution. Now these schemes have

timed well keeping in mind the environmental conditions & schemes provided by the other

company. These schemes are of twenty-four hours duration. If a scheme is launched & there

is no empty in the market for refill, the whole effort goes in vain that is the reason is said ki

sub empty ka khel hai.


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PRODUCT PROFILE

The product profile of VARUN BEVERAGE PVT. LTD.is:

Sr. no. No. of Product Quantity Colors Flavor

1 Pepsi Cola 200ml Burnt-Sugar Cola




5 Mirinda Orange 200ml Sunset Orange




9 Mirinda Lemon 200ml Tetrazin Lemon




13 Tropicana 200ml Apple Mix fruit

14 Tropicana 1000ml Apple Mix fruit

15 7up Lime 200ml None Color Lime

16 7up Lime 300ml None Color Lime17 7up Lime 600ml None Color Lime

18 7up Lime 2000ml None Color Lime

19 Everest soda 300ml None Color Lime

20 Everest soda Lemon 500ml None Color Lime

21 Mountain dew 200ml None Color Lime




25 Slice 250ml. Mango Mango

26 Slice 500ml Mango Mango

27 Slice 1200ml Mango Mango


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PRICING

Product Quantity Price /Pet Quantity/Pet

Pepsi Cola 200ml Rs. 192 pet (24)

250ml (cane) Rs.330 pet (24)300ml Rs. 262 pet (24)

600ml Rs. 546 pet (24)

2000ml Rs. 510 Pet (9)

Miranda Cola 200ml Rs. 192 pet (24)

300ml. Rs. 262 pet (24)

600ml. Rs. 546 pet (24)

2000ml. Rs. 510 Pet (9)

Miranda Lemon 200ml Rs. 192 pet (24)

300ml. Rs. 262 pet (24)

600ml. Rs. 546 pet (24)

2000ml. Rs. 510 Pet (9)

7up Lime 200ml Rs. 192 pet (24)

300ml. Rs. 262 pet (24)

600ml. Rs. 546 pet (24)

2000ml. Rs. 510 Pet (9)

Lemon 600ml Rs. 546 pet (24)

Mirnda dew 200ml. Rs. 192 pet(24)

600ml Rs. 546 pet (24)

Slice 250ml. Rs. 262 pet (24)

500ml. Rs. 546 pet (24)

1200ml. Rs. 630 Pet (9)

Aquafina 1000 ml. Rs. 150 Pet (12)


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PRODUCT PACKAGING AND FACILITIES

PRODUCT: -

Carbonated Soft Drinks (CSD) or Soft Drinks as they are popularly known are one of the

largest FMCG market in the whole world with the total annual sales around $40 billion.

Products are generally available in four kinds of packing.

Glass Bottles

Pet Bottles

Cans

Fountain rim

FLAVORS: -

Cola

Orange

Clear Lemon

Cloudy Lemon

Berry

Ginger

Mango Slice

Out of these products the 70% of the sales of the company come from the Cola brand, which

is the market leader in the most part of the country of these kinds of packaging in which the

product is available to make them 80% of the sales come from these bottles. The businesses

of returnable bottles are very cumbersome and make the market very complex and

demanding.

FACILITIES PROVIDED BY THE COMPANY TO THE RETAILER:-

1. VISI COOLER

65 Liter

110 Liter

120 Liter

165 Liter

200 Liter

210 Liter


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220 Liter

300 Liter

320 Liter

330 Liter

. 400 Liter

500 Liter

These coolers are allocated according to outlet nature, volume & investment of the outlet.

2. SCHEMES OF VOLUME PURCHASE

Cash discount

Card discount (sampling)

3. DISPLAY MATERIAL

Stickers

Banners

Racks

Counters

G.S. Boards

D.P.S. Boards


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DISTRIBUTION NETWORK

Total market of Mohan Nagar is divided into 1 Dipot & 8 distributors.

Distributors names are:-

Pal Sweet House

Prag dairy Firm

- Mayuri Marketing

- Ramavtar Enterprises

- Manoj Store

- Krishna Enterprises

- Ashriti Enterprises- M.H Marketing

DISTRIBUTION OF PEPSI

Here there are four systems of distribution channels.

- Channel 1.

- ManufacturerConsumer

- Channel 2.- ManufacturerRetailer..Consumer

- Channel 3.

- ManufacturerWholesaler.RetailerConsumer

- Channel 4.

- Manufacture.WholesalerJobberRetailer..Consumer

In Mohan Nagar channel 1, 2 and 3 are being Used for distribution


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DISTRIBUTION CHANNELS

COBO: These are Company owned bottling operations operating directly under the

Company. Out of 32 bottling plants, PepsiCo owns 15.

COBO FOBO

WAREHOUSE

C & FDISTRIBUTER

SALESMAN SALESMAN

WHOLESELLER SLUMS RETAILERS

RETAILERS

CUSTOMER

CUSTOMER

COMPANY


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FOBO: These are Franchise owned bottling operations.

Warehouses: These are Company or franchisee owned warehouses spread over various

locations that cover the respective territories and come under the purview of their respective

Area or Territory Offices. Stocks are sent from the bottling plants to these warehouses, from

where they are sent to the C & F centres and Distributor Points.

C & F Centres: These are the biggest centres in the distribution network and receive proper

assistance from the Company (either COBO or FOBO). The C & F centre is owned by a

private player and not by the Company. The vehicles (Delivery Vans) are owned by the

Company, and the Salesmen at the C & F points are on the Company Payroll.

Distributors: These are small, compared to C & F centres. Everything at the Distributor

point owned and managed by the distributor, even the salespersons are on the Distributors

payroll.

Wholesalers: These are smaller than C & F centres and Distributor points and get the stock

directly from the Company or Franchisee. They get their stock directly from the Company

and thus get special rates and extra discounts from the Company.

Slums: They are generally smaller than the Wholesalers are. However, they get special

discounts from the C & F centres and Distributor points. All the different players in the

distribution channel namely C & F centres, Distributor points, Wholesalers and Slums have

different designated markets and are not supposed to operate in the market designated to any

other player.

Retailer: Retailers are the most important chain in the distribution channel of Pepsi as they

are the only point of contact with the customers. Retailers get their stock from all the other


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channel members in the distribution channel.

Total market of Mohan nagar is divided into 1 C&F Agent & 8 distributors.

Distributors names are:-

- Pal Sweet House

Prag dairy Firm

- Mayuri Marketing

- Ramavtar Enterprises

- Manoj Store

- Krishna Enterprises- Ashriti Enterprises

- M.H Marketing


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DISTRIBUTION STRATEGIES

A Company can choose any of the following distribution types: -

Exclusive Distribution

Selective Distribution

Intensive Distribution

PEPSI HAS ADOPTED THE INTENSIVE DISTRIBUTION STRATEGY.

INTENSIVE DISTRIBUTION:

A Strategy of intensive distribution is characterized by placing the goods or services in as

many outlets as possible. When the consumer requires a great deal of location convenience, itis important to offer greater intensity of Distribution. This strategy is generally used for

convenience items such as Tobacco, gasoline, and soap, snack foods & bubblegum.

Manufactures are constantly tempted to move from exclusive or selective distribution to more

intensive distribution to increase their coverage and sales and you could find Pepsi in nursing

homes, confectionery shops, departmental stores; you name it & Pepsi is available there.


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DISTRIBUTION CHANNEL REDEFINED

Pepsi has redefined distribution to strengthen their competitive advantage in the emerging

consumer and market scenario. Their earlier focus was to drive wide availability and enable

easy access to their brands for consumers. Now they seek to go well beyond this distribution

paradigm.

Their new approach is more holistic touching consumers in multiple ways at the point of

purchase and more importantly, creating opportunities for customers to receive brand

message and experience our brands. They are proactively addressing these emerging trends

by approaching distribution and channels in a much broader way. They are shifting emphasis

from mere reach or availability expansion to touching consumers with a 3- way convergence

of product availability, brand communication and higher level of brand experience. They are

thus going beyond delivering products and creating greater engagement and interaction

around the purchasing experience. Pepsis reinvention of distribution is built on an

understanding of emerging consumer trends, the retail environment and the growth drivers of

our brands. Pepsis distribution system is a key external resource. Normally it has taken years

to build and cannot be easily changed. It ranks in importance with key internal resources such

as manufacturing, research, engineering and field sales personals. It represents significant

corporate commitment to set policies and practices that constitute the basic fabric on which is

woven an extensive set of long run relationship.

Product Availability

Point Of Purchase

Brand Experience

Brand Communication

CHANNEL FUNCTION AND FLOWS

Marketing channel perform the following functions-

To gather the information about potential and current customers, and competitors.

To list orders with manufacturers.

To reach agreements on Price

They provide the successive storage and movement of physical products. It can be defined

as backward and forward integration i.e. starting from supplier of the raw material to the end

customer. The physical flow of Pepsi from its manufacturing unit to various retailers is asfollows


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OBJECTIVE OF THE STUDY

To understand the problems facing the channels of distribution in allocated area.

To understand retailers behaviour.

LITERATURE REVIEW

Vives (1984) and Gal-Or (1986) concluded that duopolistic competition for both quantity

and price setting competitors. Their conclusion suggests that for Bertrand competitors,

incentives always exist to share common demand information. The case is usually the

opposite for Cournot competitors, but Mauleg and Tsutsui (1996) show that even in a

Cournot model, if the demand uncertainty is about a common slope parameter rather than the

overall level of demand, competitors may have incentives to share their private information.

This paper extends this stream of research analyzing the incentives of competitors in demand

information sharing with a distribution channel partner, i.e., vertical information sharing.

Another aspect of a firms information strategy concerns with information selling (Sarvary

and Parker 1997, Iyer and Soberman 2001) but we do not consider that in our model.

Strategic Alliance Literature and the Distribution Channel Context:

Li et al. (1987) studied at quantity setting competitors decision of acquiring information

about an uncertain demand parameter through, say, market research, and conclude that more

information is always good for a firm though cost consideration may prevent firms from

acquiring unlimited amount of information. Several studies have looked at competing firms

incentives in sharing their private information. Analyzing quantity setting competitors selling

directly to consumers, many researchers including Gal-Or (1985) and Shapiro (1986) analyze

competitors incentives in sharing demand and cost information.

Carpenter and Coughlan (1998) studied the problem of channel partners entering into an

alliance for a bilateral monopoly channel. They focus on the importance of hold-up problems

in this context even without any uncertainty in the environment. In our work, an alliance is

formed only when it is beneficial for both firms, and hence we do not consider the hold-up

problems. Stern et al. (1996) point out that information is sometime used to facilitate soft orquasi integration of the entire channel and our analysis also supports a similar outcome. Chu


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and Messinger (1997) use a bilateral monopoly setup to explore the information acquisition

decision of the channel partners. In this paper, our focus is on the information sharing

decision.

Further, Chu and Messinger allow only the two polar cases; no information vs. perfect

information. Using the reliability metric that we develop for measuring the quality of a firms

information, we are able to model information more generally, allowing for imperfect

information as well. Thus, in this work, we analyze information sharing decisions among

channel partners both in a bilateral monopoly framework and in a competitive channel.

Simon Kwok ( 2003) Concluded that there is considerable interest and debate over the

effectiveness of sales promotion. Previous studies have shown that sales promotions

are more effective when they provide benefits that are congruent with those of the

promoted product. This study explores and extends the congruency framework by

analyzing the impact of culture at an ethnic group level. The purpose is to investigate

the popular assumption that cultural differences exist at this level and to see whether

these differences have an impact on sales promotion effectiveness. A quasi-

experimental design is used to test a series of hypothesis based on a sample of Anglo-

Australians and Chinese-Australians. It is found that despite the existence of cultural

differences at an ethnic level, culture does not appear to have a significant impact on

consumer responses to sales promotion. It is alsoFound that the congruency effects

between product and promotion type are weak and may be non-existent in some cases.

Finally, the study also provides evidence that further validates a scale used for the

measurement of culture.

Farris, Paul and Friberg, Kristina, Snapple Beverage Corporation. ,( Vol. , pp. October

21, 2008)This case described the situation facing Snapple management during the early-

growth stages of the brand and category of flavored teas. In the early months of summer, just

as peak season was approaching, Snapple was already facing out-of-stocks. The case asks

students to wrestle with the options of cutting back on flavors or product lines, allocating

demand to certain outlets and geographical areas, or coming up with creative solutions to deal

with the problem. Strong competitors (Coke, Pepsi, Nestea, and Lipton) were also threatening

to take share from Snapple in a category the company had created. The system of contract


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production and independent distributors further complicated Snapple's ability to implement

short- and long-term solutions that would balance push and pull marketing. The case includes

a CD with video of Jude Hamerle, Snapple's marketing manager, describing what the

company did and why, which provides an opportunity for a discussion of subsequent events,

including Quaker's purchase and, later, sale of Snapple to Triarc.

Markkinointi (2008) Concluded that the interest for the case company as they had

challenged the Finnish credit card markets by introducing new product features aimed

at persuading customers to use credit card as a daily payment method. The initiative

was reinforced by a set of sales promotion activities, which were the focus of this

research. The theoretical part of the research was based on the academic literature onthe subjects of sales promotion, consumer behavior and financial services. Results

concerning birthday promotion did not reveal statistically significant differences

between promotion and credit card transactions. The lack of marketing

communications and sales frequencies, however leave the question unclear. After all,

the most active customer group was customers age 18 to 37 and they were also the

most influential group to sales promotion. Both promotions also showed that most of

the purchases are very small that is between 0-25.That could indicate that the card

was actually used in small daily purchases,

Julian Vieceli, Robin N Shaw(Dec. 2010, Vol.26)A study has investigated how Chinese

retailers perceive their foreign brand apparel suppliers and explored the use of power theory

for explaining these relationships. A survey of 150 apparel retailers operating in Beijing,

China provided data for the study. Referent power Positively influenced retailers' attitudes

toward and non-economic satisfaction with their Suppliers. Greater referent power also

reduced channel conflict and enhanced economic satisfaction with business performance. The

importance of this source of power seems to be linked with the concept of guanxi in China,

where respectful relationships are valued. Coercive threats to withhold necessary

merchandise, service, or contracts increased channel conflict. Surprisingly, greater channel

conflict was associated with increased economic satisfaction with business performance. This

relationship is contemplated from a cultural perspective and recommendations are made to

foreign brand apparel manufacturers wishing to access China's retail market.


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Category Management:

Interest in understanding and implementing category management is very high among

executives. As Bucklin and Gupta (1999) report, category management was found to be the

most important issue in their study among all issues in the distribution and retail management

area. The category management movement has been fairly widespread in frequently

purchased packaged goods distributed through grocery stores and similar initiatives were

planned in other related businesses in recent years.1 However, there is also evidence of some

disenchantment with the concept, especially among retailers. By analyzing incentives for

both manufacturers and retailers, we investigate the conditions when information sharing is

indeed beneficial for each member of the distribution channel. Academic research has

provided models to help implement micro marketing (Montgomery 1997) and relevantmetrics for evaluating profitability(Chen et al. 1999), but virtually no attempt has been made

to explain the emergence of the category captain phenomenon. We model category

management as an information sharing phenomenon in competitive channels and also show

how information sharing may help mitigate some of the ills associated with excessive

upstream competition and trade promotions.

PepsiCo is one of the oldest, largest and most successful beverage and snack food companies

in the world. PepsiCo was founded by Caleb Bradham in 1902 in USA. Today PepsiCo and

its affiliates operate in more than 140 countries in the world and generate revenues in excess

of $ 40 Billion. In its pursuit of never ending growth and expansion, PepsiCo entered India in

1989 in a joint venture with Punjab Government. However, PepsiCo India very soon started

its beverage operations in collaboration with the R K Jaipuria group.

Soon after entering the beverage segment PepsiCo Established its dominance in the market

owing to its expertise in sales, marketing, operations and local collaboration. PepsiCo

maintained its market dominance for many more years to come. However, this advantage

slipped and PepsiCo had to concede the market leadership to Coca Cola India. Several actors

were responsible for this development. But, the most important are;

Ad campaigns targeting regional markets.

Discontinuation of Slums in the distribution network by PepsiCo. This move by PepsiCo

adversely affected its position of a market leader because while PepsiCo discontinued the use


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of Slums in its distribution network, Coke continued it and within one year, it was able to

snatch considerable market share from PepsiCo.

Acquisition of well-established and favored brands like Thums Up and Limca by Coca Cola

India. These two brands still constitute a bulk of sales for Coca Cola India

Nickolas Dias (president of pepsi 1940) noticed that the company's strategy of using

advertising for a general audience either ignored African Americans or used ethnic

stereotypes in portraying blacks. He realized African Americans were an untapped niche

market and that Pepsi stood to gain market share by targeting its advertising directly towards

them.


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RESEARCH METHODOLOGY

Research in common refers to a search of knowledge. One can also define research as a

scientific & systematic search for pertinent information of a specific topic. It is the pursuit of

truth with the help of study observation, comparison & experiment. As the method, I have

used percentage method to present the data.

DEVELOPING RESARCH PLAN:

After deciding the objective of marketing research the next step is deciding Research plan for

gathering effective information related to this research project. The research consists of

following steps, which are discussed subsequently.

RESEARCH DESIGN:

Descriptive Research: In my market survey descriptive research process was carried out to

describe the market characteristics, consumer profiles, distribution strategies, and market

potential.

Data Source:

During project study I use both primary as well as secondary data source. For primary data

collection I visited various retailers in Sahibabad & for secondary data I went through Books,

Journals & Internet. The information collected is relevant, correct & unbiased.

Research Design:

I followed survey technique for collecting the data. Here, I carried out information from

retailers and carefully selected the instrument & methods of surveying like I have chosen

personal contact methods because of higher response rate & meaningful responses. This has

helped me to get the general feedback about Pepsi.

Reach Instrument:

The research instrument used was EDS form. In which market information detail of each

outlet should be filled in EDS form. For this I have visited each & every outlet & check all

the brands & packs of Pepsi are available or not or which one is available in comparison with

Coke & filled it in EDS forms. In my research process I have used closed ended & open


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ended questionnaire where respondents could answer in their own manner. Through this I

was able to extract information from the respondents about Pepsis products & the

competitors.

Sampling Plan:

In designing the sampling plan following points were considered:

Sampling Unit: It includes who is to be a surveyed i.e retailers of Sahibabad region.

Sampling Size: I have surveyed about each & every outlet of the area specified to me so size

would reach upto 100 retailers.

Elementary Retailers.

The geographical limit is the area of Shahibabad,region.

Contact Method:

In my research process, I have collected information through personal interview process. It is

the most reliable & accurate method for collecting primary data. Through this, the analysis of

body language & facial expressions can be made.

Methods of data interpretation:

In this market study I have used Excel modelling application to present the data by pie chart

and Bar diagram for data analysis & interpretation because these are the easiest &

comprehensive medium for presentation of data. Sampling unit is a single retailers outlet

which may be:-provision store, stationery shop, eatery &kiosk. The universe studied is the

sum of the retailers in the Shahibabad area.


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DATA ANALYSIS

1. Number of different types of store out of 100

Grocery 39

Kiosk 23

Eatery 17

Provision store 12

Others 9

The graph is clearly representing that number of grocery shop is maximum in the area. It

shows that the analysis which is going to be describe, these retailers have mostly participated.

The overall data analysis may suffer from biosness, thats why, I have analyzed this by using

percentage method and represented them in the column and bar digram.

2. Retailers Outlet Share

Pepsi 48%

Coca-cola 39%

Others 15%

39

23

17

129

0

10

20

30

40

50

Grocery Kiosk Eatery Provision store Others

Series1

48%

39%

13%

0%

10%

20%

30%

40%

50%

60%

Pepsi Coca-cola Others

Series1


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Till where the outlet share of retailer outlet is concerned, according to the graph that Pepsi

share in outlet tells the whole story of PEPSI. As about the services, facilities, visiting sales

person, etc. which I have represented in the particular way.

3. Pack demand

IN %AGE Grocery Kiosk Provisional

Store

Eatery Others

200 ml 7 9 12 28 32

250 ml 13 10 15 13 23

300 ml 18 27 18 11 18

500 ml 27 25 19 24 6

1000 ml 11 22 14 5 16

2000 ml 24 7 22 19 5

The analysis says that 500 ml pack is most popular. At the grocery stores the low quantity

packs are demanded less but the fact is that these stores are not much interested in selling

small quantity packs. So these stores demand company for large packs. At the same time the

bottle shops which are in the category of others are selling mostly small packs.

713 18

27

11249

10

27

25

227

12

15

18

19

14 222813

11

24

5

19

32

23

18

6

16

5

0

20

40

60

80

100

120

200 ml 250 ml 300 ml 500 ml 1000 ml 2000 ml

Others

Eatery

Provisional stores

Kiosk

Grocery


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4. Demand of different customer group

IN %age Pepsi Coca-cola Others

Male 39 56 5

Female 58 34 8Children 58 38 4

Why Pepsi is being demanded more? Yes, obviously pepsi is more demanded in the area.

There may be the various of reason to guess. But the finding is different from all. Only the

brand image and popularity of the brand people is more, which have made the Pepsi so

demanded. But if individually we see the male part they are demanding for coca-cola as the

answer I got, its more fizzzzyy.

5. Happy with Distribution channel

In % age Very Happy Happy Partialy Happy Not Happy

Grocery 55 15 19 11

Kiosk 60 32 6 2

Provisional store 67 25 5 3

Eatery 59 30 7 4

Others 54 35 7 4

3956

5

5834

8

58

38

4

0

20

40

60

80

100

120

140

160

180

Pepsi Coca-cola Others

Children

Female

Male


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This analysis is able to tell the story of degree of perfectness of distribution channel so that

the retailers are happy. But the means of analysis why the some of retailers are not happy?

Mostly in the column of Not happy grocery stores may seen. But make all happy by an

individual is not so easy task. In fact that catogary wants to sell, what they want. And

company wants to them that the sell all the packs equally and simply the conflict arises.

6. Sale in carets

In % age 0-50 crts 50-100crts 100-150crts 150-200crts 200-crts


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Only some stores are able to sell more than 200 crts in whole month and in them the number

of kiosk is more. Actually the data is taken in down season. however the average sell of pepsi

is seems to be good.

7 responsive to your complaints

In % age Strongly

agree

Agree Neutral Disagree Fully

Disagree

Grocery 55 27 7 4 7

Kiosk 49 23 11 9 8

Provisional

store

52 32 12 2 2

Eatery 59 34 3 3 1

Others 42 36 8 9 5

1114

35

38

2

30

38

17

11

4

20

56

18

42

16

44

33

4 3

15

46

30

63

0

10

20

30

40

50

60

0-50 crts 50-100crts 100-150 crts 15-200 crts 200-crts


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The stores are seems to be equaly decision taker all the types of stores has a equal thinking as

concerned to the level of agreeness.This means company is able to show the proper response

to the retailers that has tied up them with the company.

8. Delivery position of PepsiCo product

In % age Very good Good can't say Bad Worse

Grocery 52 32 11 3 2

Kiosk 59 33 5 2 1

Provisio

store

48 28 10 9 7

Eatery 55 35 2 6 2

Others 53 38 3 5 1

55

27

74

7

49

23

119 8

52

32

12

2 2

59

34

3 31

42

36

8 95

0

10

20

30

40

50

60

70

Strongly agree Agree Neutral Disagree Fully Disagree

Grocery

Kiosk

Provisional store

eatry

others

5232

11 3 2

59

33

52 1

48

28

10

9 7

55

35

26

2

53

38

3 5

10

50

100

150

200

250

300

Very good Good Can't say Bad Worse

others

Eatry

Provision store

Kiosk

Grocery


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Its obvious that if the response is good than the delivery position will also strong and the

retailer will always be satisfied.

9.Frequency of the visit of Pepsi executive

In % age Daily Alternate

Day

weekly fortnightly Monthly more than

these

duration

Grocery 35 33 15 6 1 0

Kiosk 38 43 16 3 0

Provisio

store

42 28 22 7 1 0

Eatery 50 29 18 3 0 0

Others 53 30 11 6 0 0

If all together we see, the good response, wanted delivery, and proper visits gives an extra

inspiration to sell the product. Retailer analyze these things. These things show that company

a proper care for their product as well as the concerned people.

35 3315

6 1 0

38 43

16

30

42 28

22

71 0

50

29

18

3

0 0

53

30

11

6

0 00

50

100

150

200

250

Daily alternate day Weekly Fortnightly monthly more than

these

duration

Others

eatery

Provision store

Kiosk

Grocery


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10. Do you have visi-coolers?

In % age (a) Pepsi (b) Coca

Cola

(c) Both (d) Own (e)Others

Grocery 30 22 26 20 2

Kiosk 33 30 30 2 6

Provisio store 32 30 28 3 7

Eatery 45 44 8 3 0

Others 51 38 9 2 0

Visi-coolers are the cooling equipment provided by the company to the retailers because its

the concept of the company A BOTTLE THAT IS CHILLED IS SOLD. Its good that

company has provided visi-coolers but some of the grocery stores having their own also. That

is for multipurpose uses. Company most try to replace the others by their own visi-coolers.

30 22 26 202

3330 30

2

6

3230 28

37

4544

8

30

51

38

9

20

0

50

100

150

200

250

(a) Pepsi (b) Coca

cola

Both (d)Own (e) Others

others

Eatery

Provision store

Kiosk

Grocery


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11. What time suits for visiting a salesperson to store

Mornin

g

Noo

n

Afternoo

n

Evenin

g

Grocery62 22 9 7

Kiosk 68 14 8 10

Provisio

n store

72 6 13 9

Eatery 75 3 16 6

Others 80 4 6 10

The huge number is in the favour of morning visiting our. Thats gives them a proper space to

talk and order the products.

0

20

40

60

80

100

120

Grocery Kiosk Provision

Store

Eatery other

Evening

Afternoon

Noon

Morning


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Finding of Distribution and Network

In today the FMCG is the highest competitive sector and now the companies are using push

strategy so that they can be able to compete their rivals. After visiting nearly 100 outlets I

have found:-

1. Every retailer wants that vehicle should come in the morning so that they will keep the

bottles in the fridge as soon as possible so that they can cater to the demand of customers and

replenishment is fast.

2. Company is not able to solve or not responsive to the some stores, mainly of otherscategory, i.e. bottle shops, even then they are doing good business.

3. Cooling equipments are not well distributed. Where the grocery stores are using their own

freezer at the same while provisional stores and small shops have not properly got the

equipments.

4. In spite of everything better, there is dissatisfaction among some retailers. This is because

of some personal behaviour of retailers.

5. Although coca-cola has very good distribution channel over there but Pepsi has maintained

its market share due to its strong CRM (customer relationship management) with the retailers.


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SWOT ANALYSIS

STRENGTH

Pepsi is a well-established brand, so it has a good reputation in the market.

Backed by huge promotion at national & international level.

Well known personalities are attached with the brand.

They are able to satisfy their retailers at the great extent.

Pepsi share in the market is high due to customer satisfaction.

WEAKNESS

Unable to attract more male category customer, which are mostly attracted by itscompetitors.

Incompetent salesman who do not give the schemes in the market regularly.

Unavailability of various demanded flavours like Mountain Dew & Mirinda Lemon.

Ignorance of others category shops.

OPPORTUNITY

Many tie up or liaison with major showrooms, computer centres & restaurant.

Huge publicity of Lemon Miranda /Slice has created a lot of demand.

Company has brand equity in the eyes of customers, so its new products can easily

penetrate in the market.

Untapped market.

No major competitor other than Coca-Cola.

THREAT

Threat of competitors new brand entry in the market in near future.

Restrictions made by Govt. agencies that soft drinks are harmful & non-nutritive.

Natural juice are now available whose price are less or same as soft drinks.

The coca-cola brand is the major threat to the company which is still the market

leader in this segment.

The grapevine by the people that it contains harmful chemicals and pesticides.


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CONCLUSIONS:-

1. After visiting nearly 100 outlets I found that Pepsi & its Brands are doing a good job in

Shahibabad. It is clear that Pepsi (48%) is ahead of Coke (39%) in the soft drink market in

Shahibabad region. If we compare it with Signage or display material then also Pepsi has an

edge over coke.

2. At this time it slolely depends on the retailer which brand he offers to the consumer.

Although the company has been unable to satisfy the retailers, The company must take

immediate steps in order to resolve its disputes with these retailers.

3. It was also found that the schemes that are brought up in the market by Pepsi & Coke after

every couple of day is not making any net effect on the sale of Cola, whereas one is

cannibalizing others market only.

4. It was also seen that Pepsi brand is better sold than coke. But it is Thumps up, sprite which

is making the major difference in the market.

5. The sale in age wise section, it was found that 200ml is sold in all the age groups with

same frequency but 300ml is sold mostly in 16 to 45yr. of age group where as CAN is sold in

younger generation only. Finally 2lit. are used only for family or party purpose.


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LIMITATIONS

Findings are based on the views expressed by the consumers. So it may suffer frombiased prejudices.

Some of the respondents were not co-operative & many seem to be having nointerest.

The study has not been intended on a very large scale, have the possibility of errors,which cannot be ruled out.

Geograhic Area was specified so the findings may differ from area to area. It is extremely time consuming exercise to persuade retailer to respond to

questionnaire.

The retailer knows us as people from Pepsi there by the responses could have beenbiased.

The company does not provide any financial assistance.

The time allowed for the project was very short (6 weeks).


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RECOMMENDATIONS:-

1. PEPSI, the choice of Generation next is not providing the first choice of young generation.

A young generation wants something strong in cold drinks & thus prefers Thums up, sprite.

Pepsi should come out with some extra strong taste to catch up maximum young generation

& to become exactly Generation Next drink.

2. Company should appoint competent & sincere salesman so that they could provide

schemes to the entire retailers & cover their full route.

3. It is often seen that some salesman do not intimate schemes to the retailer & few of theretailers complained about it. So there should be frequent visits of Customer Executives to

their respective areas to keep the shopkeepers benefited with various schemes.

4. Delay in starting of supply vans from respective depot should be checked & a proper time

register should be maintained.

5. Most of the retailers are complaining about delay & no replacement of burst bottles.

Marketing Management should sort some solutions to this major problem of replacing burst

bottles.

6. Company should try to give some credit facility based on the credit worthiness distributors

so that they get motivated.

7. Proper feedback system should be developed by ensuring regular visits & check randomly

at the various outlets.


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BIBLIOGRAPHY

-Sustainable Distribution Partnerships through Credible Threats and Credible

Commitments." Discussion paper, J L Kellogg Graduate School ofManagement. Northwestern University.

-http://papers.ssrn.com/sol3/papers.cfm?abstract_id=909957

- Choi, S. C. 1991. "Price Competition in a Channel Structure with a CommonRetailer." Marketing Science10 (4) 271-296.

- Chu, W. and P. R. Messinger. 1997. "Information and Channel Profits."Journal of Retailing73 (4) 487-499.

- Courtney. H., Kirkland, J. and Viguerie, P. 1997. "Strategy under

Uncertainty." Harvard Business Review(Nov/Dec) 67-79.

- Gal-Or, E. 1985. "Information Sharing in Oligopoly." Econometrica53(March) 329-343


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QUESTIONNAIRE

Questionnaire related to academic purpose, which is prepared to take feedback from retailers.

Name of outlet

Address .

Contact person with phone no..

Type of outlet:-

Glossary ..

Kiosk ..

provision store ..

eatery ..other

1. You are interested to sale

Pepsi . Coke .

Reason:

2. Which pack of Pepsi is demanded more

200ml

250/300ml

500ml

1000ml

2000ml

3. Demand of different customer group

Group Pepsi Coke

Male _____ _____

Female _____ _____

Children _____ _____

4. Do you get the delivery at right time?

1).Always. 2.)sometimes.. 3.)Never.

5. Are you happy with companies distribution channel?

1.)Very happy2.) Happy 3.) Partially happy..4.)Not happy


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6. Which of the company you feel is suitable to meet your requirements in a better way?

Coke .

Pepsi .. Others Specify..

7. Do you get the benefits of daily schemes launched by the company?

1).Always.2.)sometimes.. 3.)Never.

8. Do you always receive the ordered quantity?


9. what is the visit the Companies Officers give you ?


Use the notes taken during the exercise to answer the questions below

1.)Strongly Agree 2.) Agree 3.)Neutral 4.)Disagree 5.)Fully Disagree

10. Do you agree that Salesman to be changed at regular intervals?

1 2 3 4 5

11. Is company responsive to your complaints?

1 2 3 4 5

12. Number of carets sold per month of soft drinks.

(a) 0 - 50 crts (b) 50 to 100 crts(c) 100 to 150 crts(d) 150 to 200 crts..

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

(a) Pepsi Cola (b) Mirinda (c) 7Up (d) Slice (e)Mountain Dew (e)Aquafena water

14. When a customer comes to your shop which brand of soft drinks does he/she

demands?

(a) Pepsi ..(b) Coca Cola

(c) Others

15. Do you know about all flavors pack (size) and respective wholesale price Pepsi


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soft drinks.

(a) Yes (b) No

16. What is the position of delivery of Pepsi products?

(a) Very Good (b) Good (c) Bad (d) Worse

17. What is the frequency of the visit of Pepsi executive?

(a) Daily (b) Alternate Day

(c) Weekly (d) Fortnightly

(e)Monthly (f)More than these durations

18.Which time suits you for visiting a sales person to your store?

(a) Morning (b) Noon

(c)Afternoon (c) Evening

19.Which factors affect the sale most?

(a) Advertisement (b) Scheme

(c) Presence (d) Taste

(e) Price (f) Others

20. Which company Visi-Cooler do you have?

(a) Pepsi (b) Coca Cola

(d) Own (e) Others

21. What is the position of maintenance work of refrigerator done by Pepsi

Company?

(a) Highly satisfactory (b) satisfactory (c) Less satisfactory (d) Not satisfactory

22. Have you been provided with sign board/display rack by Coke Company?

(a) Yes (b) No

23. How many times delivery van comes?

(a) Ones in a day(b) In alternate days


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(c) Once in a week

(d) Any other,please specify

24. Have you any type of dissatisfaction regarding the product. It yes then why?

25. Your recommendations about Pepsi company?

Any suggestion .

Raju Project Report

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