The report analyzes Varun Beverages Ltd.'s sales promotion strategies, distribution channels, and relationship with PepsiCo. It finds that Pepsi and Mountain Dew are the top-selling brands and recommends increasing sales of other brands through retailer incentives and promotions. The report also evaluates a display scheme and concludes PepsiCo should maintain inventory during peak seasons to avoid stockouts.

1. SUMMER INTERNSHIP PROJECTON
STUDY ON SALES PROMOTION STRATEGIES OF VARUN BEVERAGES LTD.(PEPSICO)
Guided By: Prof.Sanjana Mondal
(Assistant Professor)
Calcutta Business School
Submitted By: Vidushi Bharti
Roll No: 17026
Batch : 2017-19

2. INTRODUCTION
 Varun Beverages Ltd. is a private ltd to which franchise is given by Pepsi Food Ltd.
for bottling of the various Pepsi brands.
 Beverage Industry is one of the fast growing industries in India.
 It can be divided into two sections that are carbonated soft drinks(CSD) & Non-
carbonated beverages(NCBs).
 The carbonated drink for the classified into pepsi, lemon, orange, 7-up, Mountain
Dew etc segments.
 Marketing includes all the activities like promotions, distribution, advertising etc.
 To fulfill the all segment of the consumers marketing is also to convert social needs
into profitable opportunities.

3. BACKGROUND
 Incorporation Year: 1995
 Sector: FMCG
 Main Business: Manufacturer of Soft Drinks.
 Chairman: Ravi Kant Jaipuria
 Group: RJ Corp. Group
 Financial Year End: December.

4. History
 The Company was incorporated as Varun Beverages Limited on June 16,
1995 at New Delhi as a public limited company under the Companies
Act, 1956.
 VBL has been associated with PepsiCo since the 1990s and has over two
and half decades consolidated the business association with PepsiCo,
increasing the number of licensed territories and sub-territories .
 Producing and distributing a wider range of PepsiCo beverages,
introducing various SKUs in the portfolio, and expanding the
distribution network.
 the Company has 53 Equity Shareholders.

5. MISSION
Its overall mission is to increase the value of their shareholders through
sales growth, cost control and wise investments. They believe
commercial success depends up on offering quality and value to
customers and consumers.
VISION
To produce best Quality products at lower cost which can be made
possible through optimization of resources, better discipline, team
work, multi-tasking and high consumer satisfaction.

6. SWOT ANALYSIS

7. OBJECTIVE OF RESEARCH
The main objective of the research was to now the company's position
in the soft drink market by doing visi-purity & charging of every visi-
cooler in P-O-G form.
 To study survey of PepsiCo retailers on display effectiveness.
 To come out with new attractive schemes to improve their service &
quality.
 To find out the most popular brand of PepsiCo.
 To find out the satisfaction level of retailers.
 To establish the market presence need to support sales goals and attract
customers.

8. SCOPE OF THE STUDY
 The study focuses on retailers display pattern, the way they
merchandise PepsiCo product to sell to their customers.
 This research attempts to analyze the overall impact of PepsiCo
policies towards retailers.
 This study focuses to increase the sell of PepsiCo product with the
help of visi-purity & charging.
 Its attempt to assess the popularity of execution of PepsiCo between
the consumer & retailer.

9. RESEARCHMETHODOLOGY
Primary Data Collection:
Sources from where first hand information is gathered directly are called primary source and information
thus called primary data. In case of study the primary source are retailers.
Secondary Data Collection:
Sources of secondary data are internet and company documents. Secondary data is used to know the soft
drink industry and the information about the company.
Questionnaire:
Questionnaire consists of questions for retailers, which are of following types:
Dichotomous questions that are of yes / no types.
Multiple Choice questions
Structured questions
Close ended questions
Sampling Method:-
Sampling unit : Individual Retailer
Sampling Method: Random Sampling
Sample Size: 100 Retailers
Sampling Plan: Questionnaire and personal interview
Coverage: Patna
Duration: 2-3 Month

10. Pepsico Products

11. COMPETITIVE AREA AMONG PEPSI & COKE
 The soft drink market all over the world as been witnessing a neck-to-neck
battle between the two major players; Coca Cola and Pepsi since very beginning
The thirst quenchers are trying hard to have the major piece of the apple of
overall carbonated soft drink market. Both the players are spending their
energies in building capacity, infrastructure, promotional activities etc.
 The Major fight between the Pepsi and Coca-Cola products is as follows:
PEPSI COKE
SLICE MAZZA
7-UP SPRITE
MIRINDA FANTA
NIMBOOZ LIMCA
PEPSI MAX THUMBS UP
AQUAFINA KINLEY WATER

12. Competitive advantagein the Marketing strategyof Pepsi
Collaborative customer relationship:
Believing in participative marketing campaigns has helped Pepsi in understanding the
changing needs of the customers and segments/ potential group of customers in different economies.
Strong Parent company:
Pepsico being present in more than 200 countries and handling 22 brands in the food & beverages
segment is the leading player in the market with their facilities across the globe. Pepsi is financially
strong company offerings products in the food & beverages segment globally in large SKU’s (Stock
Keeping Units).
Distributionstrategyin the Marketingstrategyof Pepsi
 Whether it’s an urban metro or rural region, developed or developing, Pepsi has different models of
distribution to make the products available to the end user.
 In many countries, its products are distributed through Direct-store-delivery network the one, who
are independent bottlers & distributors, third-party distribution channel to wholesalers, retailers and
shops which is in corner of the country.
 E-commerce sites, supermarkets are also the distribution points of Pepsi.

13. CompetitiveanalysisintheMarketingstrategyof Pepsi –
 Big giants such as Coca-Cola, Nestle, Mondelez etc.in the non-alcoholic beverage market
have a similar or same strategy to that peers.
 The only way to differentiate the offerings & retain customers is the strong brand
building activities, creating a pull in the market. Competition from local players and
counterfeit products are the major issue Pepsi is facing.
 In the Cola market, the main competitor of Pepsi is Coca-Cola.
Customeranalysisin the Marketingstrategyof Pepsi
 A customer of Pepsi is retail customers and the resellers.
 In the reseller segment grocery stores, wholesalers, distributors, convenience stores,
Pops & moms store, e-commerce e-tailers are the customers of the Pepsi. In Retail
segment, customers from all age groups are the potential customers since it’s a mass
market product.
 Some of their products are specifically meant for some section of the society like
Pepsi diet & Zero-O- Sugar for all those who are health conscious.

14. BCG MATRIX
• Pepsi and Diet Pepsi (Pepsi Zero Sugar) are the Cola beverages in which Pepsi deals
in.
• The offerings of PepsiCo under the Pepsi brand are Stars in the BCG matrix due to
its popularity among the youth and the emotional connect with the masses in their
special moments & celebrations.

15. VBL presence

16. VBL Plants

17. VBL’s Business Segment
 CSD: Pepsi,Seven-Up,
Mountain Dew, Mirinda &
Everess.
 NCB: Tropicana,Slice,
Nimbooz, Tropicana Frutz.
 PDW: Aquafina.

18. Symbiotic Relationship WithPepsico

19. SALES & DISTRIBUTION CHANNEL OF PEPSICO

20. Sales & distribution Channel of Pepsico(Contd.)
 Company: PepsiCo India provides concentrates to all the bottling plants in the Country.
 COBO: Company owned bottling operations, operating directly under the company. Out of 32
bottling plants, PepsiCo owns 15.
 FOBO: Franchisee owned bottling operations. VBL has 17 bottling plants in the country.
 Warehouses: Company or Franchisee owned warehouses spread over various locations. Stocks
are sent from the bottling plants to these warehouses, from where they are sent to the C&F
centres and distributors.
 C&F Centre: Biggest centre in the distribution network and receive proper assistance from the
company (either FOBO or COBO). The C&F centre is owned by a private player and not by the
company. The delivery vans are owned by the company and the salesman at the C&F points are
on the company payroll.
 Distributors: Everything at the distributor point owned and managed by the distributors, even
the salesperson are on the distributors payroll.

21. VBL & Pepsico Agreement
 PepsiCo provides trademarks and bottling rights to VBL. They
collectively fall under the term 'PepsiCo Agreements'.
 PepsiCo reserves the rights to terminate the agreement with a written 2
month's notice.
 PepsiCo India / PepsiCo Inc. and / or the PepsiCo International Entities
reserve the rights for themselves and authorized third parties to undertake
the production, sale and distribution of beverage products for the relevant
territories and sub-territories. Historically, VBL has been the sole
franchisee and licensee with respect to it's licensed territories ans sub-
territories.

22. QPDS Scheme

23. PROCESSOF QPDS
 At first I had to go to the outlets for giving the description of the QPDS
scheme(7-Up display dhamaka).
 If they agreed to follow this offer the sales person took the order from
retailer according to the demand of the customer.
 According to the QPDS scheme exact amount of bottles(24 bottles)
were shown at the front of the store and 24 bottles were arranged in
visi-cooler.
 I followed the whole process if there are any problem in the process or
not.

24.  From the survey, I can conclude that PepsiCo sell most of its products through eatery and
convenience shop.
 Performance level of Visi Cooler given by PepsiCo is excellent.
 Majority of the retailers sell about 2-4crates per day.
 PepsiCo try to solve the problem of the retailers with in the duration of 1 to 2 days of time and
they take care that the retailer does not face any shortage of any of the product.
 Almost all the retailer are the opinion that they haven’t run out the stock and PepsiCo has
delivered products quickly to them .
 Free bottles on crates and brand display schemes are most sought scheme by the PepsiCo
retailers.
 The sales of the PepsiCo products are high during April to June.
 The advertisements done by PepsiCo have a huge impact on sales and the retailers are satisfied
with the promotional techniques adopted by PepsiCo.
FINDINGS

25. CONCLUSION
 PepsiCo is selling most of its products through eatery and convenience outlet;
PepsiCo should try its sales through the other format of outlet.
 As it is evident from the survey that only Pepsi and Mountain Dew are the
highest selling brands; PepsiCo must focus on increasing the sales of Mirinda
by offering the retailer’s handsome margin on it and by using more
advertisement and promotion of this brand.
 PepsiCo should maintain sufficient inventory of their product during the
summer season to their manufacturing plant.
 The PepsiCo retailer should display the more crates within the premises of their
shop, so that it would be visible to the customer and it will lead to generate
more sales in the outlet.
 It is not just enough to devise attractive schemes for the retailers; the company
should also ensure that it is being implemented properly and retailers get what
they promised off.

26. Any Question ?