sales and distribution of slice

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CHAPTER I
INTRODUCTION AND DESIGN OF THE STUDY

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1.1 INTRODUCTION
India with a population of more the 100 crores is potentially one of the largest consumer
markets in the world. With urbanization and development of economy, tastes and interests of
the people changes according to the advance nation.
Marketing is about winning this new environment. It is about understanding what consumer’s
wants supplying it’s more efficiently and more conveniently.
The consumer market may be identified as the market for product and services that are
purchased by individuals as household for their personal consumption. Soft- drinks is a
typical consumer product purchased by the individual primarily quench their thirst and also
for refreshment. Different types of soft drinks are available in the market and more or less
content of all soft drinks are same. The market of soft-drink is facing a cutthroat competition
and many companies are floating in the market with their products with different brand
names. In such a kind of situation different factors which influence to the people choice for
soft drinks are taste, quality, images, easy availability and the product cost of soft drinks and
the advertisement. The Govt. of India has considered the soft drinks industry as “Non-
essential”. As a result the excise duty levied by govt. on better soft drinks is very high.
Thus in a country like India where, more than 50% of the total population exists below
poverty line, the consumer cannot afford such high price for soft drinks. As a result, the
trading activities of the soft drinks industry are concentrated in and around big cities and
town where the purchasing power of population considered comparatively high.
Soft drinks Industries in India has an annual sale of about 4000crores, with per capita
consumption of soft drinks at a low of seven bottle per annum (even Pakistan has a per capita
consumption of 14 or in China and U.S.A it’s more than 800 bottles) is due to price factor.
So, marketing is both philosophy and technology. It is technology because it suggests ways
and means for effective production and distribution of goods and services in the market to
give maximum satisfaction to the consumer.

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The marketing manager is responsible for both, determining and suitability of goods and
services presented by the company to the market, and also determining about potential
market and make better relation with the retailer. In this regard the marketing management
with have to apply to marketing technology in the conceptual philosophy of system. It is the
process of system analysis in the marketing management for effective research and can be
defined as “Systematic objective and exhaustive study of tasks relevant to any problem in the
field or marketing. PepsiCo products are enjoyed by consumers one billion times a day in
more than 200 countries and territories around the world. PepsiCo generated more than $66
billion in net revenue in 2014, driven by a complementary food and beverage portfolio that
includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo’s product portfolio
includes a wide range of enjoyable foods and beverages, including 22 brands that generate
more than $1 billion each in estimated annual retail sales. At the heart of PepsiCo is
Performance with Purpose to deliver top-tier financial performance while creating sustainable
growth and shareholder value.
The aim of the project is to study the sales and distribution of slice at PepsiCo and to know
the market share of PepsiCo Pvt ltd in the Kerala industry.
1.2 THEORTICAL BACKGROUND
A sale is the exchange of a commodity for money or service in return for money or the action
of selling something.
The seller or the provider of the goods or services completes a sale in response to
an acquisition, an appropriation or a request. There is a passing of title (property or
ownership) of the item, and the settlement of a price. A seller agrees upon a price which he
willingly gives ownership of the item. The seller, not the purchaser generally executes
the sale and it is completed prior to the obligation of payment. A person who sells goods or
service on behalf of the seller is known as salesman or saleswoman.
Distribution is the process of making a product or service available for use or consumption by
a consumer or business user, using direct means, or using indirect means with intermediaries.
The other three parts of the marketing mix are product, pricing, and promotion.
Distribution of products takes place by means of channels. Channels are sets of
interdependent organizations) involved in making the product available for consumption to

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end-user. Merchants are intermediaries that buy and resell products. Agents and brokers
are intermediaries that act on behalf of the producer but do not take title to the products.
1.3 STATEMENT OF THE PROBLEM
The study is titled “A STUDY ON SALES AND DISTRIBUTION OF SLICE AND ITS
MARKET SHARE AT PEPSICO INDIA HOLDING LTD, COCHIN.”
1.4 NEED AND SCOPE OF THE STUDY
This is an attempt to bring out the sales and distribution channel of slice at PepsiCo India Pvt
Ltd. Advertising is one of the main promotional tools used by marketers to promote their
products to consumers. It is very essential to evaluate the sales and distribution channel about
the product and one of the purchasing influence factors. This is an attempt at a rather
comprehensive study of the channel of distribution. This study will try to reveal all its
problems and challenges in the study. I hope it will yield some good result and contribute
some valuable information as to improve strategy, have a scope to increase sales and
distribution
1.5 OBJECTIVES
PRIMARY OBJECTIVE
To study on sales and distribution of Slice and its market share at PepsiCo India
Holdings
SECONDARY OBJECTIVES
1. To determine the factors which persuade the retailer for sale of Slice and its
current status.
2. To find out the promotional activities in Slice.
3. To find out the market share of Slice against its competitor.
4. To study the consumption level of slice
5. To determine how the packaging and display leads to the sales and distribution of
slice.

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1.6 LIMITATIONS
Although all efforts have been made to study the population as compared to the topic
of study, universe size and sample size findings of the study will be considered only on the
Urban Area and will be applied in Cochin only because of the Retailers perception and
expectation varies in other place due to socio-economic and educational background.
The survey suffers from following limitations:-
1. Since the product under study was a consumer goods which requires a large
sample to have a correct study, a sample size of 150 respondents was too
small for it.
2. Duration of study is also limited for further intensive study.
3. Most importance was given on primary data. As it was difficult to collect
Secondary data from organization & distributors.
4. The sample selected is not purely random sample but it is convenient so that
the result of the survey doesn’t have any high degree of statistical
significance.
5. Difficult to ascertain the authenticity of their statement.
1.7 CHAPTER SCHEME
The study is divided in to five chapters. The introductory chapter outlines the objectives,
significance, methodology, and scope, tools of analysis and limitations of the study. The
theoretical frame work of effectiveness of Sales and Distribution is mentioned in the second
chapter. A brief profile of PEPSICO INDI HOLDING LTD COCHIN is given in the third
chapter. The forth chapter deals with the analysis of effectiveness of sales and distribution
with the available tools. The fifth chapter gives a summary of findings and the
recommendations based on the study.

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CHAPTER II:
REVIEW OF LITERATURE

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SALES AND DISTRIBUTION
Peterson et al. (1997) stated that all marketing functions are carried out through three
distinctive types of marketing channels: communication channels, transaction channels,
and distribution channels. By definition, communication channels enable the flow of
various types of information between buyers and sellers. Transaction channels realize
ordering and payment activities between buyers and sellers, and distribution channels
facilitate the physical exchange of products and services between buyers and sellers.
Stewart, Frazier, and Martin incorporated marketing functions into two types of channels:
communication channels and distribution channels. The latter has a broader definition,
meaning “a mechanism through which a product or service can be selected,
purchased/ordered, and received by a segment of the firm's customers.”
According to Cespedes (2006), demand generation, inventory storage, distribution of
goods, providing credit to buyers, after sales service, product modification and
maintenance are some of the functions that a channel performs. The channel member also
called as an intermediary is a member of the distribution channel excluding the
manufacturer and the consumer. Intermediaries come between these two and perform one
or more of the above functions. The 55 shifting of channel power from manufacturers to
retailers, wholesalers, and distributors has had a great impact on distribution.
McCabe (2009) highlighted the necessity of understanding how to get access to the
customer to deliver the marketing message and the organisation’s products and services.
Hudson (2008) agreed with him and stressed the importance of designing a “distribution
system” to work as a framework for making the organisation’s services available for
customers. Armstrong and Kotler (2000) named five functions for the distribution
channel: information; promotion; contact; matching; negotiation. Hudson (2008) added
‘financing’ to these functions which should help the organisation in bridging the gaps of
time, place and possession between itself and the customers (Armstrong and Kotler,
2000)
Armstrong and Kotler (2000) named the selection of the distribution channel as having an
influence on every other marketing decision. Various criteria were investigated to
determine how to choose the distribution channel in the wider marketing context.

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Originally, the term ‘sales’ referred to the direction of sales force personnel. But, it has
gained a significant position in the today’s world. Now, the sales meant management of
all marketing activities, including advertising, sales promotion, marketing research,
physical distribution, pricing, and product merchandising.
The American marketers association (AMA’s) definition, takes into consideration a
number of these viewpoints. Its definitions runs like: the planning, direction, and control
of the personnel, selling activities of a business unit including recruiting, selecting,
training, assigning, rating, supervising, paying, motivating, as all these tasks apply to the
personnel sales-force. Further, it may be quoted: it is a socio-scientific process, involving’
group-effort’ in the pursuit of common goals or objectives, which are predetermined. Co-
ordination is its key, though, no doubt, it is a system of authority, but the emphasis is on
harmony and not conflict. Sales-management differs from other fields of management,
mainly in different aspects: the selling operation of a business firm does not exist in
isolation. Thus, simultaneous with the changes taking place in the business, as well as
marketing-orientation, a new concept of sales has evolved. The business is now society-
oriented, on human-welfare aspects. So, sales-management has to work in a broader and
newer environment, in co-existence with the traditional lines. The present emphasis is
now on total development of human resources.
Sales management provide critical inputs for the key marketing decisions like budgeting ,
quotas and territory management.
From the company view point, there are three general objectives of sales management:
 Sales volume
 Contribution to profit
 Continuing growth
Top management delegates to marketing management, which then delegates to sales
management, sufficient authority to achieve the three general objectives.
Purpose of sales force in any organization
 To facilitate the development
 Coordination and balance
 Interdepartmental conflicts

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MARKET SHARE
Out of total purchases of a customer of a product or service, what percentage goes to a
company defines its market share.
There are various types of market share. Market shares can be value or volume. Value
market share is based on the total share of a company out of total segment sales. Volumes
refer to the actual numbers of units that a company sells out of total units sold in the
market. The value-volume market share equation is not usually linear: a unit may have
high value and low numbers, which means that value market share.
The significance of market share: Market share is a measure of the consumers' preference
for a product over other similar products. A higher market share usually means greater
sales, lesser effort to sell more and a strong barrier to entry for other competitors. A
higher market share also means that if the market expands the leader gains more than the
others. By the same token, a market leader - as defined by its market share - also has to
expand.
How much market share is enough? Usually, gaining 100% market share is not a good
idea, as the risk associated with market actions, like fashion changes, product / use
changes will impact the company heavily. Also, the cost and effort to maintain 100%
market share against nimble, local or more aggressive smaller competitors can be very
high and killing. Most companies decide on a target market share beyond which the cost
of acquiring market share is more than the profit from that incremental gain.
DEFINITION OF SALES
Originally, the term ‘sales management’ referred to the direction of sales force personnel.
But, it has gained a significant position in the today’s world. Now, the sales management
meant management of all marketing activities, including advertising, sales promotion,
marketing research, physical distribution, pricing, and product merchandising. The
American marketers association (AMA’s) definition, takes into consideration a number of
these viewpoints. Its definitions runs like: the planning, direction, and control of the

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personnel, selling activities of a business unit including recruiting, selecting, training,
assigning, rating, supervising, paying, motivating, as all these tasks apply to the personnel
sales-force. Further, it may be quoted: it is a socio-scientific process, involving’ group-
effort’ in the pursuit of common goals or objectives, which are predetermined. Co-
ordination is its key, though, no doubt, it is a system of authority, but the emphasis is on
harmony and not conflict. Sales-management differs from other fields of management,
mainly in different aspects: the selling operation of a business firm does not exist in
isolation. Thus, simultaneous with the changes taking place in the business, as well as
marketing-orientation, anew concept of sales management has evolved. The business, is
now society-oriented, on human-welfare aspects. So, sales-management has to work in a
broader and newer environment, in co-existence with the traditional lines. The present
emphasis is now on total development of human resources.
BENEFITS OF SELLING ACTIVITIES
There are different benefits of selling activities, which are as follows:
(1) Benefits to the society: economic growth and maximum employment are the basics
for national development. The achievement of both these goals means jobs and incomes
for a nation’s labour -force. The number of people, who need jobs, continues to expand,
and also some jobs are being eliminated, because of the introduction of computers and
abolition of obsolete technology. If jobs are to be made available for all those, who want
and expect them, the economy must continuously expand its production of goods and
services, which can only be done by adopting sound government-policies and efficient
use of people. Equally important here is the fact, that an economy needs individuals, to
sell what is produced. Through their persistent efforts to create and stimulate demand,
salespeople could be said to be the life and blood of a productive economic-system. The
large number of workers, in factories, and offices, would not be needed, if someone were
not selling their products.
(2) Benefits to consumers: professional people may not know every fact of a product, but
they, at least know its major uses, limitations and benefits; so they can easily serve their
customers, quite effectively. For exan1ple, an insurance agent can analyse the hazards
and risks that confront a 5 client’s business or home-situation, examine existing coverage
and offer helpful advice, in order to eliminate the gaps or overlaps in coverage, in
addition to saving the client’s money. The sales-engineers are qualified to analyse

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technical-problems, which may be confronting a particular organisation and they can give
the right recommendations for developing efficient operations. Like-wise, the medical
representatives may help the busy doctor, by keeping him abreast of new drugs in the
market. The list of sales-people who can offer assistance to customers is practically
without end.
(3) Benefits to business firms; their sales-persons and customers: salespersons are owned
by their companies, while customers are the end-users of the company’s product(s) and/or
services, all these people, in the chain of marketing, stand to benefit by sales-activities. A
business firm can be profitable only if its revenues exceed its costs. The prime
responsibility of the salespersons is to sell the goods, produced by the organisation, at a
profit. The creative sales-person, tries to penetrate his territory, and adopts suitable means
and techniques of profitable-selling of goods and/or services. Business firms, derive
various other benefits from, non-selling activities of sales-persons. The salesperson, in the
field, is an ideal person, to keep the company abreast, or ahead of competition. He, thus,
becomes an important source of field-intelligence by providing important (and sometimes
very crucial) information, about the nature of 6 competitive-activities, and also about the
changing needs of customers. The sales-force has the additional responsibility of serving
the needs of customers that buy the film’s product(s). Most firms cannot survive, only on
the basis of one-time sales; repeat-sales are necessary. This is possible only if the
customers are served in a professional manner. A customer-oriented sales-person has to
perform such activities as: providing customers with ‘product-information’ and
‘demonstration(s); training customers-employees, in product-use; providing customers
with sales-advice; and assisting customers in maintaining ‘inventories’.
ELEMENTS OF SALES MANAGEMENT
There are the four basic elements of sales management, discussed below:
(1) Planning: a business cannot be taken as a chance. Every salespeople or person
concerned have to see for the future, in a planned way like what must be done? And who
will do it? The plan must be based on extensive market research, and the facts must be
verified at every stage. The plan should also be evaluated, after investigating the total-
market, for a particular type of product. Flexibility must be provided by establishing a
specialist’s production line, to allow for variation in production. The plan should also be
subject to continued review. The details of the plan should be discussed, with all the

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departmental heads, concerned, and 7 their sub-ordinates, who bear responsibility for
fulfilling their parts of the plan.
(2) Co-ordination: Co-ordination is all pervasive and permeates every function of the
management-process. For example, ill planning, departmental-plans are integrated into a
master. Plan, ensuring adequate co-ordination. Similarly, organising starts by co-
ordination wholly, partially inter-departmental and inter-personnel matters. Co-ordination
also helps in maximum utilisation of human-effort by the exercise of effective leadership,
guidance, motivation, supervision, communication etc. The control-system also needs
coordination. Co-ordination does not have any special techniques. Nevertheless, there are
sound principles, on which to develop skills. It has a special need to help the staff, to see
the total picture and co-ordinate their activities, with the rest of the team. The sales
manager has to encourage direct personal-contact, within the organisation, particularly
where there is lateral-leadership. Harmony, and not discord, should be the guiding
mantra. In addition, one has to ensure free flow of information that is selective to the
objectives of the business. No personal problems, arising from business operations are to
be ignored, but solved through a free exchange of ideas. This is especially true in the case
of the sales-force of any organisation.
(3) Controlling: the sales manager has to check regularly, that the sales activities are
moving in the right direction or not. He guides, leads, and motivates the subordinates, so
as to 8 achieve the goals planned for the business. He has to take steps to ensure that the
activities of the people conform to the plans and objectives of the organisation. The
controlling system should be such that one can study the past, note the pitfalls and take
corrective measures, so that similar problems may not occur in the future. The controller
has to ensure that the set targets, budgets and schedules are attained or followed in letter
and spirit. There must be procedures to bring to light the failure to attain a target. The
control-system has to (i) prepare sales and market forecasts; (ii) determine the level of
sales-budget; (iii) determine the sales-quotas for each salesman; (iv) determine, review
and select distribution-channels; (v) organise an efficient sales force; (vi) establish a
system of sales-reporting; (vii) establish a system of statistical sales-credit; (viii) establish
stock control system(s); (ix) review of performance of the sales force; and (x) establish
periodical testing programmes. In a big organisation, each salesman is assigned a territory
(not so big that it cannot be adequately covered). Each salesman has a target, set for
specific ‘period. From the weekly and monthly sales-reports, the control system is

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established, that will prepare records whether a particular salesman is working efficiently
or not.
(4) Motivating: Motivation is essentially a human resource concept. It aims to weld
together distinctive personalities into an efficient team. For this, knowledge of human
psychology is needed, as a means of understanding behaviour patterns. 9 This is
especially important in the case of the sales-force. Only motivated sales-persons can
achieve company’s goals.
OBJECTIVES OF SALES MANAGEMENT
Every business firm has certain objectives to achieve. These objectives may be very
explicit and definitive, or they may be implicit or general. Although, firms have different
mixes of objectives, and they do place differing emphasis, on individual ones, the typical
objectives include
i) Profitability, (ii) sales-volume, (iii) market share, (iv) growth, and (v) corporate-image.
While all these objectives are important to a business firm, the objectives, relating to
sales-volume, market share and profitability, are greatly affected by the effectiveness and
efficiency, with which the sales-function is managed. Business firms, have, in fact, found
that it is the most effective management objective of the firm; that must emanate out of its
overall business or corporate objectives.
The sales-management objectives of a business firm, generally relate to the areas of (i)
achieving sufficient sales-volume, (ii) providing sufficient profit, and (iii) experiencing
continuing growth. Generally, objectives of sales-management have to cover various
sales-functions, in an integrated manner.
Marketing channel decisions are among the most important decisions that management
faces today. Indeed, if one looks at the major strategy of the marketing mix (product,
price, promotion and distribution), the greatest potential for achieving a competitive
advantage now lies in distribution (Obaji, 2011).

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Distribution, as one of four elements of marketing complex, is an inseparable part of
marketing decisions which involves all the decisions about distribution of products to the
end user. The issues of distribution were analyzed by a number of marketing specialists
(Berman, 1999; Kim, 1996; Delton, 1997; Frazier, 1999; Kotler, 2003; Rosenbloom,
1999; Stern, 2006; etc.), paying a big attention to the elaboration of the procedures of
marketing channel design (Gudonaviciene & Alijosiene, 2008).
Distribution still offers a new frontier for competing successfully, especially if the
emphasis is placed on the design and management of superior marketing channel systems
to provide excellent customer services. Yet designing optimal marketing channel systems
to boost sales, formulating innovative distribution strategies and managing channels
system effectively is no simple task. (Obaji, 2011)
The very earliest formal conceptions of marketing channels focused on the functions
performed by a distribution system and the associated utility of these functions and the
overall system. Reflecting their presence in industrial and transitional
economies, marketing channels gradually came to be viewed as the set of interdependent
organizations involved in the process of making a product or service available for use or
consumption (Coughlin, Anderson, Stern, & El-Ansary, 2001). This institutional oriented
perspective draws attention to those members (e.g. wholesalers, distributors, retailers,
etc.) comprising the distribution system and engaged in the delivery of goods and services
from the point of conception to the point of consumption (Anderson & Coughlan, 2002).
The management of such institutions through marketing channel management involves
the planning, organizing, coordinating, directing and controlling efforts of channel
members (Gundlach et al, 2006).
In general, the concept of distribution refers to where and how product and services are to
be offered for sale, all essential mechanism and logistical supports for the transfer of
goods and services as well as ownership of goods and services to the customers (Stern et
al, 2006). A successful marketing channel ensures that a desired product is distributed in
a desired amount to a desired channel to satisfy the desired consumer (Kotler & Keller,
2009).

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One of the initial problems encountered when the area of integrated distribution is
discussed is the problem of definition. No single "model" distribution system can be
tailored for all business firms. The distribution function, like other functions of the firm,
must be developed within the framework of management philosophy and available
resources of the individual firm. During the 1960s, three characteristic or identifiable
approaches to integrated distribution management have emerged. They are:
physical distribution management, materials management and business logistics. (La
Londe, Grabner, & Robeson, 1993).
Research devoted to channel management has played an important role in the marketing
discipline for over 40 years. Two main areas of channels research in marketing have
evolved. First, how channels are organized or structured has been a focal point, centering
on the level of channel integration, reliance on multiple channels, distribution intensity
and organizational policies relating to centralization, formalization, standardization, and
surveillance (cf. Dwyer & Oh, 1988; John &Weitz, 1988; Fein & Anderson, 1997;
Shervani, Frazier & Challagalla, 2007). Second, how ongoing channel relationships are
coordinated in a behavioral sense has been even more prominent, dealing with methods of
channel governance, including the impact of contracts, the development and application
of inter firm power, communication approaches, levels of control and conflict, and the
attainment of trust and commitment (cf. Frazier, 1983; Anderson & Weitz, 1992; Boyle,
Dweyer, Robicheau and Simpson, 1992; Morgan and Hunt, 1994; Kumar, Sheer and
Steenkamp, 1995; Lusch and Brown, 1996).
DEVELOPMENT OF CHANNEL STRUCTURE
A channel of distribution can be defined as the collection of organization units, either
internal or external to the manufacturer, which performs the functions involved in product
marketing. These functions are persuasive and include buying, selling, transporting,
storing, grading, financing, market risk bearing and providing marketing information. A
channel member is an individual organization unit institution or agency that performs one
or more of the marketing functions and by doing so has an active role in the channel of
distribution (Lambert, 1978).

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The marketing channels literature has given considerable attention to the study of channel
structure. Early researchers discussed channel structure in terms of the functions
performed by channel members (Mallen, 1973). The basic idea was that these functions
could be allocated in different mixes among the various channel members depending on
the characteristics of the channel. As structure research evolved, several common
elements emerged, which were seen as varying across different channels, including: the
number of channel levels (i.e., number of intermediaries involved), the intensity at the
various levels (the number of intermediaries at each level of distribution), and the types of
intermediaries at each level (i.e., retailers, wholesalers, distributors) (Rosenbloom B. ,
1987). Thus, channel structure was essentially treated at a micro level, rather than
examining the more macro issues such as: how firms decide who will perform what
activities, the costs and trade-offs involved in using various channel strategies, and
various extraneous factors affecting channel relations.
Starting from the 70’s, tremendous strides have been made in the understanding of how
firms should organize and manage their channels of distribution. Still, the researchers
have barely touched the surface of all the managerial issues that have been addressed.
Furthermore, many issues of managerial importance relating to the organization and
management of channels of distribution have received no attention in empirical
research (Frazier, 1999).
More recent research in channel structure examines both macro and micro issues. The
majority of the current research on channel structure focuses on one of two broad
operationalizations of structure: transactional form or bureaucratic form. Though it could
be argued that the degree of relationalism also reflects the structure of the relationship,
transactional form and bureaucratic form are the most widely accepted (Brent, 2007).
PHYSICAL DISTRIBUTION
Physical distribution has been acknowledged as being an important component of channel
management (cf. Frazier, Spekman & O’Neal, 1988; Coughlan Anderson, Stern & El-
ansary, 2006). However, relatively little attention has been paid to physical distribution
function in channels research within the marketing literature. The general topic has
received more emphasis in other literatures, such as in operations management, logistics,
transportation, purchasing and information technology, with a general focus on how

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product orders can be efficiently and effectively processed, and then delivered to channel
members and end-customers. Among the main areas of interest have been inventory
management, the number placement, and design of warehouses or distribution centers, the
use of technology to aide in processing orders, delivery options to customers, and
customer payment methods(cf. Innis and laLonde, 1994; Emerson and Grimm, 1996;
Giannakis and Groom, 2004; Giunipero, Hooker, Joseph-Matthews, Yoo and Brudvig,
2008).
The lack of attention to physical distribution in channels research in marketing is
unfortunate. Physical distribution functions will impact both channel organization and the
manner in which channel relationships are coordinated over time. More clarity is
necessary on the role of physical distribution functions within the general domain of
channel management (Frazier, 2009).
THE ROLE OF POWER IN DISTRIBUTION CHANNELS
Channels of distribution can be viewed as social systems comprising a set of
interdependent organizations, which perform all the activities (functions), utilized to
move a product and its title from production to consumption (Stern & Neskett, 1969;
Stern, 1971). Because of this interdependency there arises a need for some form of co-
operation between channel members and co-ordination of activities. This co-operation
and co-ordination is necessary in order to ensure predictability and dependability between
members which will allow individual organizations to plan effectively. Also, conflict
arises in channels, because members sometimes have incompatible goals, differing ideas
as to the functions each should perform, and differing perceptions of reality. This conflict
needs to be controlled so that it does not disrupt channel functioning (Wilkinson, 1996).
Power or, rather, the use of power by individual channel members to affect the
decision making and/or behavior of one another (whether deliberate or not), is the
mechanism by which the channel is organized and orderly behavior preserved. This is not
meant to imply that organizations necessarily set out deliberately to organize the channel,
but that this organization of the channel arises out of individual organizations adjusting
their behavior to one another in relation to the power they each have and use. However, in
some channels, firm(s) may assume a leadership role and make deliberate attempts to
organize the channel, making use of their power. Power is the means by which

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cooperation between individual channel members' activities are coordinated and the
means by which any conflict between firms is controlled (Stern & Neskett, 1969; Stern,
1971; Wilkinson, 1973).
STRATEGIC CHOICE IN DISTRIBUTION CHANNELS
Though the field of marketing, in general, has adopted a strategic perspective, one
particular area, distribution channels, has been relatively slow to embrace this
perspective. Besides research on the manipulation of power and influence attempts, little
attention has been given to the study of channel strategies. The importance of marketing
channel strategy decisions is highlighted by 1) their inherent long-term consequences and
2) the constraints and opportunities that they represent (Dwyer & Welsh, 1985). The
development of relationships in a marketing channel often takes a great deal of time and
effort. Therefore, any decisions made concerning these relations take on added strategic
importance. Given this, the incorporation of strategic management theory is very relevant
to the study of distribution channels (Brent, 2007).
MULTIPLE CHANNELS
The use of multiple channels of distribution is now becoming the rule rather than
the exception, given the fragmentation of markets, advancements in technology, and
heightened interbrand competition, among other things. While multiple channels
potentially increase the firm’s penetration level and raise entry barriers, inter brand
competition and intra channel conflict may become major problems, leading to lowered
levels of support in the firm’s direct and indirect channels. Such possibilities remain
largely unexplored. While John and Weitz (1988) and Klein et al. (1990) examined the
use of multiple channels to a degree, only Dutta et al. (1995) have focused an empirical
study on the construct. Their major finding is that augmenting an indirect channel with a
direct channel improves the manufacturer’s ability to manage the indirect channel
(Frazier, 1999).

19. 19
CHAPTER III:
COMPANY PROFILE

20. 20
3.1 INDUSTRY PROFILE
The 50-bn-rupee soft drink industry is growing now at 6 to 7% annually. In India, Coke
and Pepsi have a combined market share of around 95% directly or through franchisees.
Coca Cola has a 1% share, and the rest is divided among local players. Industry watchers
say, fake products also account for a good share of the balance. There are about 110 soft
drink producing units (60% being owned by Indian bottlers) in the country, employing
about 125,000 people. There are two distinct segments of the market, cola and non-cola
drinks. The cola segment claims a share of 62%, while the non-cola segment includes
soda, clear lime, cloudy lime and drinks with orange and mango flavours.
The per capita consumption of soft drinks in India is around 5 to 6 bottles (same as
Nepal's) compared to Pakistan's 17 bottles, Sri Lanka's 21, Thailand's 73, the Philippines
173 and Mexico 605. The industry contributes over Rs 12 to the exchequer and exports
goods worth Rs 2 bn. It also supports growth of industries like glass, refrigeration,
transportation, paper and sugar. The Department of Food Processing Industries had
stipulated that 'contains-no-fruit-juice' labels be pasted on returnable glass bottles. About
85% of the soft drinks are currently sold in returnable bottles. There was a floating stock
of about 1000 mn bottles valued at Rs 6 bn. If the industry were to abide by the new
guidelines, it would have to invest in new bottles, resulting in a cost outgo of Rs 5 bn.
Neither Coke nor Pepsi is in a position to invest such a large amount.
Around 400,000 tonnes of raw material would be required to replace the existing stock of
bottles. Instead, the soft drink industry suggested that a seven-year moratorium be
extended to the industry so that it can incorporate the change in a phased manner. There
is no such mandatory requirement anywhere in the world to specifically label the glass
surface of returnable bottles. The government has decided to extend the date for replacing
the bottles to end-march 2006. In the meantime, the producers have shifted substantially
to the use of PET bottles.
Soft and aerated drinks were considered products for the middle class and the affluent.
That segregation is no more valid. Soft and aerated drinks are consumed by all except
those who cannot afford to buy any drink. An NCAER study says that 91% soft drink
sales are made to the lower, middle and upper middle classes. The soft drink industry

21. 21
has been urging the government to categories aerated waters (soft drinks) equitably with
other consumer products of mass consumption and remove special excise duty.
The industry estimates that the beverage market should grow at twice the rate of GDP
growth. The Indian market should have, therefore, grown by atleast 12%. However, it has
been growing at a rate of about 6%. In contrast, the Chinese market grew by 16% a year,
while the Russian market expanded at almost four times the rate of growth of the Indian
market.
It may be recalled that Coca-Cola, the world's number one player, was present in India for
a long time in collaboration with an Indian producer but was thrown out in the late 1970s.
It reappeared in India following the economic liberalization era - but after its rival,
world's number two, had already entered in a big way following a long and tough fight
against the opposition from the domestic producers. When Coca-Cola re-entered, it
installed a new milestone. It acquired the well flourishing India's top player, Parle. Since
then it is basically a fight between the two American giants. Others are playing a
peripheral role, as adjuncts to the two MNCs. World's third biggest player, Cadbury
Schweppes, had also made an entry but was gobbled up by Coca-Cola. When Coca-Cola
acquired Parle brands, it was, in fact, buying the bottling facilities, the marketing
network, and the established consumer preference during the market build-up. The brands
were a drag on the global brand. Since Coca-Cola was not interested in brands (like
Thumps Up), it did not promote them. The result, at least, in the short run was a loss of
the market to the competitor. Coca-Cola decided to market more effectively the Parle
brands. It had in its armoury Coke, Thumps Up, Limca and Fanta. The latest to enter
market was Parle’s erstwhile Rimzim, alongside Portello, a black currant flavoured drink,
very popular in Srilanka.
Coca-Cola operates through 35 plants and 16 franchisees throughout the country, while
PepsiCo has 20 plants, but it has 7 more franchisees at 23 to 16 of its rival. Coca-Cola
claims a market share of 51%, while Pepsi has a share of 46%. The claims, however,
remain disputed. The other smaller players like Pure Drinks Ltd claim the rest of the
market. The shares of the two lead players are consolidated figures, which include the
respective bottlers. Coca-Cola had approached the government for a five year extension
for divesting 49% equity in its bottling subsidiary, Hindustan Coca-Cola Holdings. It had
set up the marketing subsidiary as part of its strategy to integrate all its bottling

22. 22
operations, both company-owned and franchisee bottlers, apparently keeping in line with
its global policy. All together, it had bought initially over 38 franchisee bottlers.
Kandhari Beverages, coke bottlers for north have been eyeing to lift a stake in Coca-Cola
India. Coca-Cola had filed an application to offload 49% stake of its bottling operations
in favour of their Indian operators. Besides Kandhari, three other bottlers, one each from
Uttar Pradesh, Gujarat and Jammu, were lined up to invest in Hindustan Coca-Cola
Holding. Kandhari has already invested Rs 300 mn in 1999 and 2000 to upgrade its
capacity. The total investment by all the four was expected to be Rs 1000 mn. Both Coca-
Cola and PepsiCo planned for the launch of lemon-flavored versions of their products.
Both have been expanding their non-carbonated drink line-ups, as consumers seem to be
shifting away from carbonated soft drinks. PepsiCo is deliberating whether to come out
with Pepsi Twist, a cola mixed with lemon. But while both companies have juice does not
sport drinks, bottled water and other such drinks in their line-ups, coke nor Pepsi has
launched a new national variety of a cola-flavoured carbonated soft drink in years.
PepsiCo had achieved Rs 3 billion worth of exports, which include processed foods,
basmati rice, guar gum and soft drinks concentrate. PepsiCo completed the second phase
of its expansion and with this expansion, PepsiCo was to explore the possibility of
expanding the export of concentrates to more countries in addition to the exports to
Russia and other South Asian countries.
Pepsi India has entered into a marketing tie up with Hindustan Lever to promote sales of
soft drinks through Pepsi-HLL network of vending machines and fountains. The major
soft drink brands in the Pepsi stable are Pepsi, 7UP, Miranda, Tropicana and Aquafina.
As a major strategic departure, both MNCs were expanding their brand range.
Consequent to some diversifying moves, at present, the sales ratio of Coca-Cola between
soft drinks and other beverages is 95.5. The company intended to change this to 80:20 in
the next three years. Its juice brand, Maaza - acquired from Parle a few years ago - is
being given a major thrust. It has plans to go in for canned coffee, iced tea and purified
categories under expansion schemes. It has already launched its bottled water brand,
Kinley, in the Indian market. Besides, it is intending to acquire domestic brands in the
non-carbonated beverages segment.

23. 23
The global deal between Coca-Cola and P&G to form a snacks and beverages joint
venture company was reported to have slipped into rough weather. The P&G brand of
potato wafer, Pringles, seemed to be faced with distribution problems in India. P&G had
globally tied up with Coca-Cola to form a stand-alone juice and snacks company. The
new firm is focused on developing and marketing new juices, juice based beverages and
snacks on a global basis. The Sharjah-based Allied Beverages was pushing its Ahlan
brand in India, having entered the market in mid-2000. Its target was carbonated drinks
market in PET bottles. Its plans were to launch a PET bottle in the popular 300 ml
category. Ahlan expected to gain a 12% share of the total PET bottle market in northern
India. Of the total market, PET bottle segment is approximately 12%. Presently, Allied
Beverages has a manufacturing unit at Dharuhera in Haryana. The product range includes
carbonated drinks - cola, orange, lemon and soda in three pack sizes - 500 ml, 1500 ml
and 2000 ml. Allied Beverages sells non-carbonated drinks in 200 ml food grade cups
priced at Rs 7 in its portfolio, available in four different flavours. The company's future
plans include pulp-based fruit drinks in flavours, which will be available in 200 ml non-
returnable glass bottles.
IFB Agro Industries has handed over the distribution rights of Cadbury Schweppes in
favour of Coco-Cola India, following the global takeover of Schweppes beverages by
Coke. The company still retains the bottling rights for the beverages.
It was noticed for the first time during the summer of 2004 that soft drink companies
were registering a slower growth in the sale of bottled water at 20% compared to 35% in
case of drinks.

24. 24
3.2 COMPANY PROFILE
SUMMARY ABOUT THE COMPANY
Type : Public (NYSE: PEP)
Founded : Chicago, Illinois, U.S. (1965)
Headquarters : Purchase, New York, U.S.
Area served : Worldwide
Key people : Indra Krishnamurthy Nooyi (Chairwoman), (President) & (CEO)
Industry : Food Non-alcoholic beverage
Products :Pepsi
DietPepsi
MountainDew
SierraMist
LiptIcedTea
7up
Izze
Tropicana
Gatorade
QuakerOats
Lay's
Doritos
Cheetos
Fritos
RoldGold
Ruffles

25. 25
Tostitos
Slice
Nimbooz
Revenue : USD 43.251 Billion (2010)
Operating income : USD 6.935 Billion (2010)
Net income : USD 5.142 Billion (2010)
Total assets : USD 35.994 Billion (2010)
Total equity : USD 12.106 Billion (2010)
Employees : 185,000 (2010)
Divisions : PepsiCo Americas (PepsiCo Americas Food, PepsiCo Americas
Beverages), PepsiCo International
Website : PepsiCo.com
HISTORY OF THE COMPANY
It was first introduced in North Carolina in 1898 by Caleb Braham who made a pharmacy
which sold the drink which was known back then as "Brad's Drink", and was later named
Pepsi Cola possibly due the digestive enzyme pepsin and kola nuts used in the recipe.
Braham sought to create a fountain drink that was delicious and would aid in digestion
and boost energy.
In 1903, Braham moved the bottling of Pepsi-Cola from his drugstore into a rented
warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was
sold in six-ounce bottles, and sales increased to 19,848 gallons. In 1926, Pepsi received
its first logo redesign since the original design of 1905. In 1929, the logo was changed
again. In 1929, automobile race pioneer Barney Oldfield endorsed Pepsi-Cola in
newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer before a race".
In 1931, the Pepsi-Cola Company went bankrupt during the Great Depression- in large
part due to financial losses incurred by speculating on wildly fluctuating sugar prices as a
result of World War I. Assets were sold and Roy C. Megargel bought the Pepsi

26. 26
trademark. Eight years later, the company went bankrupt again. Pepsi's assets were then
purchased by Charles Guth; the President of Loft Inc. Loft was a candy manufacturer
with retail stores that contained soda fountains. He sought to replace Coca-Cola at his
stores' fountains after Coke refused to give him a discount on syrup. Guth then had Loft's
chemists reformulate the Pepsi-Cola syrup formula.
During the Great Depression, Pepsi gained popularity following the introduction in 1936
of a 12-ounce bottle. Initially priced at 10 cents, sales were slow, but when the price was
slashed to five cents, sales increased substantially. With a radio advertising campaign
featuring the jingle "Pepsi cola hits the spot Twelve full ounces, that's a lot / Twice as
much for a nickel, too Pepsi-Cola is the drink for you," arranged in such a way that the
jingle never ends. Pepsi encouraged price-watching consumers to switch, obliquely
referring to the Coca-Cola standard of six ounces per bottle for the price of five cents (a
nickel), instead of the 12 ounces Pepsi sold at the same price. Coming at a time of
economic crisis, the campaign succeeded in boosting Pepsi's status. In 1936 alone
500,000,000 bottles of Pepsi were consumed. From 1936 to 1938, Pepsi-Cola's profits
doubled.
Pepsi's success under Guth came while the Loft Candy business was faltering. Since he
had initially used Loft's finances and facilities to establish the new Pepsi success, the
near-bankrupt Loft Company sued Guth for possession of the Pepsi-Cola company. A
long legal battle, Guth v. Loft, then ensued, with the case reaching the Delaware Supreme
Court and ultimately ending in a loss for Guth.
PEPSICO IN INDIA
PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab
government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited.
This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign
brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994.
Others claim that firstly Pepsi was banned from import in India, in 1970, for having
refused to release the list of its ingredients and in 1993, the ban was lifted, with Pepsi
arriving on the market shortly afterwards. These controversies are a reminder of "India's
sometimes acrimonious relationship with huge multinational companies." Indeed, some
argue that PepsiCo and The Coca-Cola Company have "been major targets in part
because they are well-known foreign companies that draw plenty of attention."

27. 27
In 2003, the Centre for Science and Environment (CSE), a non-governmental
organization in New Delhi, said aerated waters produced by soft drinks manufacturers in
India, including multinational giants PepsiCo and The Coca-Cola Company, contained
toxins, including lindane, DDT, malathion and chlorpyrifos — pesticides that can
contribute to cancer, a breakdown of the immune system and cause birth defects. Tested
products included Coke, Pepsi, 7 Up, Mirinda, Fanta, Thums Up, Limca, and Sprite. CSE
found that the Indian-produced Pepsi's soft drink products had 36 times the level of
pesticide residues permitted under European Union regulations; Coca Cola's 30 times.
CSE said it had tested the same products in the US and found no such residues. However,
this was the European standard for water, not for other drinks. No law bans the presence
of pesticides in drinks in India.
The Coca-Cola Company and PepsiCo angrily denied allegations that their products
manufactured in India contained toxin levels far above the norms permitted in the
developed world. But an Indian parliamentary committee, in 2004, backed up CSE's
findings and a government-appointed committee, is now trying to develop the world's
first pesticides standards for soft drinks. Coke and PepsiCo opposed the move, arguing
that lab tests aren't reliable enough to detect minute traces of pesticides in complex
drinks. On December 7, 2004, India's Supreme Court ruled that both PepsiCo and
competitor The Coca-Cola Company must label all cans and bottles of the respective soft
drinks with a consumer warning after tests showed unacceptable levels of residual
pesticides.
Both companies continue to maintain that their products meet all international safety
standards without yet implementing the Supreme Court ruling. As of 2005, The Coca-
Cola Company and PepsiCo together hold 95% market share of soft-drink sales in India.
PepsiCo has also been accused by the Puthussery panchayat’s in the Palakkad district in
Kerala, India, of practicing "water piracy" due to its role in exploitation of ground water
resources resulting in scarcity of drinking water for the panchayat's residents, who have
been pressuring the government to close down the PepsiCo unit in the village.
In 2006, the CSE again found that soda drinks, including both Pepsi and Coca-Cola, had
high levels of pesticides in their drinks. Both PepsiCo and The Coca-Cola Company
maintain that their drinks are safe for consumption and have published newspaper
advertisements that say pesticide levels in their products are less than those in other foods

28. 28
such as tea, fruit and dairy products. In the Indian state of Kerala, sale and production of
Pepsi-Cola, along with other soft drinks, was banned by the state government in 2006, but
this was reversed by the Kerala High Court merely a month later. Five other Indian states
have announced partial bans on the drinks in schools, colleges and hospitals.
MARKETING STRATEGY OF PEPSI
In 1975, Pepsi introduced the Pepsi Challenge marketing campaign where PepsiCo set up
a blind tasting between Pepsi-Cola and rival Coca-Cola. During these blind taste tests the
majority of participants picked Pepsi as the better tasting of the two soft drinks. PepsiCo
took great advantage of the campaign with television commercials reporting the test
results to the public.
In 1976 Pepsi, RKO Bottlers in Toledo, Ohio hired the first female Pepsi salesperson,
Denise Muck, to coincide with the United States bicentennial celebration..
In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy. By 2002,
the strategy was cited by Promo Magazine as one of 16 "Ageless Wonders" that "helped
redefine promotion marketing."
In 2007, PepsiCo redesigned their cans for the fourteenth time, and for the first time,
included more than thirty different backgrounds on each can, introducing a new
background every three weeks. One of their background designs includes a string of
repetitive numbers 73774. This is a numerical expression from a telephone keypad of the
word "Pepsi."
Pepsi’s logo (2003-09. Currently using with Pepsi Wild Cherry and Pepsi ONE)
In late 2008, Pepsi overhauled their entire brand, simultaneously introducing a new logo
and a minimalist label design. The redesign was comparable to Coca-Cola's earlier

29. 29
simplification of their can and bottle designs. Due to the timing of the new logo release,
some have criticised the logo change, as the new logo looked strikingly similar to the
logo used for Barack Obama's successful presidential campaign, implicating a bias
towards the President. Also in 4th quarter of 2008 Pepsi teamed up with Google/Youtube
to produce the first daily entertainment show on Youtube. This daily show deals with pop
culture, internet viral videos, and celebrity gossip. Poptub is refreshed daily from Pepsi.
Since 2007, Pepsi, Lay's, and Gatorade have had a "Bring Home the Cup™," contest for
Canada's biggest hockey fans. Hockey fans were asked to submit content (videos, pictures
or essays) for a chance at winning a party in their hometown with The Stanley Cup and
Mark Messier.
In 2009, "Bring Home the Cup™," changed to "Team Up and Bring Home the Cup™."
The new installment of the campaign asks for team involvement and an advocate to
submit content on behalf of their team for the chance to have the Stanley Cup delivered to
the team's hometown by Mark Messier.
Pepsi has official sponsorship deals with three of the four major North American
professional sports leagues: the National Football League, National Hockey League and
Major League Baseball. Pepsi also sponsors Major League Soccer.
Pepsi also has sponsership deals in international cricket teams. The Pakistan cricket team
are just one of the teams that the brand sponsers. The team wears the Pepsi logo on the
front of their test and ODI test match clothing.
SLOGANS OF PEPSI
1. 1939-1950: "Twice as Much for a Nickel"
2. 1950: "More Bounce to the Ounce"
3. 1950-1957: "Any Weather is Pepsi Weather"
4. 1957-1958: "Say Pepsi, Please"
5. 1958-1961: "Be Sociable, Have a Pepsi"
6. 1961-1963: "Now It's Pepsi for Those Who Think Young"
7. 1963-1967: "Come Alive, You're in the Pepsi Generation".
8. 1967-1969: "(Taste that beats the others cold) Pepsi Pours It On".
9. 1969-1975: "You've Got a Lot to Live, and Pepsi's Got a Lot to Give"

30. 30
10. 1977-1980: "Join the Pepsi People (Feeling Free)"
11. 1980-1981: "Catch That Pepsi Spirit" David Lucas composer
12. 1981-1983: "Pepsi's got your taste for life"
13. 1983-1984: "Pepsi Now! Take the Challenge!"
14. 1984-1991: "Pepsi. The Choice of a New Generation" (commercial with Michael
Jackson, featuring Pepsi version of Billie Jean)
15. 1986-1987: "We've Got The Taste" (commercial with Tina Turner)
16. 1987-1990: "Pepsi's Cool" (commercial with Michael Jackson, featuring Pepsi
version of Bad)
17. 1990-1991: "You got the right one Baby UH HUH" ( sung by Ray Charles for
Diet Pepsi )
18. 1991-1992: "Gotta Have It"/"Chill Out"
19. 1992-1993: "Be Young, Have Fun, Drink Pepsi"
20. 1993-1994: "Right Now” Van song for the Crystal Pepsi advertisement.
21. 1994-1995: "Double Dutch Bus" Pepsi song sung by Brad Bentz.
22. 1995: "Nothing Else is a Pepsi"
23. 1995-1996: "Drink Pepsi. Get Stuff." Pepsi Stuff campaign
24. 1996-1997: "Pepsi: There’s nothing official about it" (During the Wills World
Cup (cricket) held in India/Pakistan/Sri Lanka)
25. 1997-1998: "Generation Next" - with the Spice Girls.
26. 1998-1999: "It's the cola" (100th anniversary commercial)
27. 1999-2000: "For Those Who Think Young"/"The Joy of Pepsi-Cola" (commercial
with Britney Spears/commercial with Mary J. Blige)
28. 2000-2003: "Aazadi dil ki" (Hindi - meaning "Freedom of the Heart")(India)
29. 2003: "It's the Cola"/"Dare for More" (Pepsi Commercial)
30. 2003-2005: "Yeh Pyas Hai Badi" (Hindi meaning "This thirst is too much")(India)
31. 2005-2006: "An ice cold Pepsi. It's better than sex!" (Larry Sypolt)
32. 2006-2007: "Why You Doggin' Me"/"Taste the one that's forever young"
Commercial featuring Mary J. Blige
33. 2007-2008: "More Happy"/"Taste the once that's forever young" (Michael
Alexander)
34. 2008: "Yeh hai Youngistaan Meri Jaan!" (Hindi)(Urdu - meaning "This is the
Young era my dear" (India and Pakistan)
35. 2008: "Pepsi Stuff" Super Bowl Commercial (Justin Timberlake)

31. 31
36. 2008: "Рepsi is #1" Тv commercial (Luke Rosin)
37. 2008: "Pepsify karo gai!" Commercial (Urdu (Hindi - meaning "Wanna Pepsify!")
(Pakistan) (Featuring. Adnan Sami and Annie)
38. 2008-2009: "Something for Everyone."
39. 2009-present: "Refresh Everything" and (during many commercials) "Every
Generation Refreshes The World".
Pepsi Input – Processing – Output Model
INPUT
Supply
1. Manage supply ingredients to ensure availability to produce products.
2. Maintain purified water supply for quality and availability to produce products.
Manufacturing
1. Ensure best technology is available to produce products and mix ingredients.
2. Ensure quick storage and inventory processes to maintain freshness and quality.

32. 32
Sales
1. Determine demand by past sales and future marketing.
2. Adjust quantities produced in real time to meet appropriate demand.
OUTPUT
Supply
1. Determine inventory of ingredients to order new supplies.
2. Maintain purified water supply so ensure continuance of production.
Manufacturing
1. Ensure proper packaging to ensure quality and freshness in products.
2. Maintain quick local distribution to ensure freshness and quality products.
Sales
1. Keep positive distribution levels to all sales outlets to maintain positive sales.
2. Meet any new demand or competition with products and consumer needs.
PEPSI’S MISSION
The mission of Pepsi 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. Pepsi has grown faster than both the S&P
500 and their industry group over the past four years. 2003 alone was a strong year.
Their overall volume grew by 5%. Division net revenue grew by 8%. Division operating
profit grew by 10%. Total return to shareholders was 12%. Earnings per share grew by
22%. They have six of the fifteen largest-selling brands in U.S Supermarkets. And,
around the world, sixteen of their brands sell more than one billion dollars each at retail.
Pepsi is also very concerned about the environment and has a separate set of goals. Our
goal is to have the least possible impact on the environment and so far we have been very

33. 33
successful. For example, in 1992 Pepsi-Cola replaced its can holders with plastic ring
connectors. Using a break-apart concept, these rings snap when cans are removed from
the connectors, greatly reducing the risk of entanglement for wildlife. In addition, photo-
degradable additives break down these connectors into small particles when they are
exposed to sunlight, further reducing the likelihood of any negative environmental
impact. In 1995, Pepsi was one of only 20 companies honored by the U.S. Environmental
Protection Agency (EPA). EPA Administrator Carol Browner called the efforts of Pepsi
to reduce solid waste "a notable achievement."
A third goal of Pepsi is to achieve a diverse workforce. Pepsi knows that understanding
different cultures is a major advantage. They view diversity as a key to their future.
They see that offering a workplace where diversity is valued helps them build the top-
quality workforce so crucial to their success by enabling them to attract and retain great
people from a wide spectrum of backgrounds. Their CEO offers this quote, “PepsiCo has
long been dedicated to instilling the broadest possible base of diversity within our own
company and among the companies who serve us, and is a strong advocate of diversity
within our communities.” This intense dedication to diversity has led to many awards
that include being named a top 50 company for diversity by
Diversity Inc. Fortune magazine ranked Pepsi number nine for best companies for
minorities.

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BUSINESS VIEWS
These are the three different views to explain Pepsi in terms of relevance, accuracy,
timeliness, exclusiveness, and accessibility.
MARKETING VIEW-: The marketing view is the backbone of business dimension in
case study of Pepsi. In order to make a firm successful in the marketplace this view must
penetrate all the other views together. Introducing new ways to approach the market or
launching a new product needs good understanding of the target population, which is
done through the marketing view. It forecasts and plans the different components in the
business dimension that are going to affect the future of the company. Through the
marketing view Pepsi tries to reach to its existing as well as future customers. A
competent market strategy is very important in today’s competitive market; especially for
a multinational company like, Pepsi. Narrowing down its different products towards
different type of population, for example, Sprite among buyers for various products
within the company. Advertising is a very vital part in the marketing view because it
brings the consumers and Pepsi together which determines the demand.
PRODUCT VIEW-: The product view of Pepsi reflects the launch of new products every
six months. As seen among these globally operating beverage companies, Pepsi and
Coke, in order to stay competent in the market they invent new products to
attract more customers and please the existing ones. If Pepsi does not try hard in
experimenting new products they know someone else could steal the market with similar
ideas. If there is no product, there is no business. Therefore, in order to dominant the
market globally as well as in the U.S., Pepsi comes with different flavors or even changes
the looks of bottles. Pepsi has wide variety of beverages like soft drinks, juices, water,
and energy drinks.
LOGISTIC VIEW-: The logistic view is a very important part of the globally
operating companies. For Pepsi, to have bottling plants in all the countries they sell the
products is necessary. By doing this, there exists a well-established connection between
the suppliers, producers, distributors and consumers. Pepsi Company’s organization is
divided into four areas covering Asia, Africa, Europe and America. These four
subdivisions are further narrowed among the countries in these continents. The inter-
organization structure of the company has different divisions. The manufacturing plant

35. 35
makes and bottles the product, the distributors deliver to the suppliers, and the suppliers
sell it to the retailers and finally to the consumers. These supply–chains in different
countries are controlled by one main headquarter.
Above figure shows the market share of the beverages players.
First figure shows that Thumsup has the largest market share in top five soft drink
players. And Limca got the fifth rank. Pepsi is on the 3rd rank with 13.2% market share.
Second figure shows the market share covered by beverage players. In the market coke is
on 1st rank with the 38% of market share and Pepsi has 21.4% market share.

36. 36
Third figure shows the battle between the product of different brand but same flavor. In
this war of soft drink in between Pepsi and thumsup has won this war by 15.7% of market
share, Pepsi has only 13.2% of market share in cola market.
MARKETING OVERVIEW OF PEPSICO INDIA
MARKETING ENVIRONMENT:
Marketing environment is the overall environment in which a Company operates. This
consists of the Task Environment and the Broad Environment.
TASK ENVIRONMENT
Task Environment includes the immediate players involved in producing, distributing and
promoting the offering. The main players are the company, suppliers, distributors, dealers
and the target customers. Suppliers include the material and service suppliers such as
marketing research agencies, advertising agencies, banking and insurance companies,
transportation companies, and telecommunications companies. The dealers and
distributors include agents, brokers, manufacturer representatives and others who
facilitate finding and selling to customers.
The suppliers for PepsiCo India include the bottle suppliers for the soft drinks. These
include the Pet bottles and the Glass bottles. One of the most vital products required in
the operation is Refrigerator. PepsiCo does not manufacture the refrigerators, instead they
are supplied by different vendors who get time bound contracts from the company.
The distributors and dealers are part of the sales and distribution network. This will be
explained later under the section of ‘Place’, in the 4 P’s segment.
The target customer for PepsiCo is primarily the youth. But, because of increasing
competition from Coke PepsiCo has expanded its target customer base which now
includes people who are prospects for beverages beyond the CSD category. PepsiCo has
started targeting this segment by offering products in the Non- CSD category, these
include fruit based non-carbonated drinks, juice based drinks, energy drinks, sports
drinks, snack food (from the snack food division i.e. ‘Frito Lay’).
BROAD ENVIRONMENT:

37. 37
This contains forces that can have a major impact on the players in the task environment.
This includes six components: demographic environment, economic environment,
physical environment, technological environment, political – legal environment, and
socio – cultural environment. Companies need to pay close attention to the trends and
developments in these environments and make timely adjustments to their marketing
strategies in order survive and succeed in the market. This will be explained in detail in
the strategic marketing segment.
VALUE DELIVERY PROCESS:
The value delivery process consists of the value creation and delivery sequence. This is
done in three phases. The first phase, choosing the value, represents the homework done
by the marketing department before the product exists. Marketing is required to segment
the market, select the appropriate the target market, and develop the offering’s value
proposition. This is known as Segmentation, Targeting and Positioning and is the essence
of strategic marketing.Once the business unit has chosen the value, the second phase is
providing the value. Marketers need to determine specific product features, prices and
distribution.The task in the third phase is communicating the value by utilizing the sales
force, sales promotion, advertising, and other communication tools to announce and
promote the product. Each of these value phases has different cost implications.

38. 38
Value Creation and Delivery Sequence
Generic Value Chain:
Inbound
Logistics
Operations Outbound
Logistics
Marketing
and Sales
Service
Procurement
Technology Development
Human Resource Management
Firm Infrastructure
Margin
Support
Activities
Customer
Segmentation
Market
Selection /
Focus
Value
Positioning
Choose the Value (Strategic Marketing)
Provide the Value (Tactical Marketing)
Product
Developm
ent
Service
Developm
ent
PricingSourcing /
Making
Distributio
n /
Servicing
Communicate the Value (Tactical Marketing)
Sales Force Sales
Promotion
Advertising
Primary Activities

39. 39
The generic value chain is a tool to identify ways to create value for the customer. This
model proposes that every firm is a synthesis of activities performed to design, produce
market, deliver and support its product. In order to be more precise only the primary
activities in the value chain of PepsiCo India are analyzed.
PRIMARY ACTIVITIES:
Inbound Logistics – This involves bringing and procuring raw materials for the business.
For the carbonated drinks industry only two raw materials are required, they are water
and the concentrated salt that is used to produce the final product. For this purpose water
is extracted from the ground and the concentrated salt is provided by PepsiCo India to all
the plants in the country.
Operations – Operations primarily includes all the bottling plants. Currently there are 32
bottling planting in India that operate for PepsiCo. Of the 32 plants, 15 are owned by
PepsiCo and the rest 17 are (FOBO.
Outbound Logistics – The Outbound logistics of Pepsi can be divided into three stages.
First the finished product from the bottling plants is sent to the depot or the territorial
office, from where it is sent to the C & F centers and the Distributor Points according to
their demand. From the C & F centers and Distributor Points the product is sent out for
sale in the market to the retailers.
Marketing and Sales – The sales and distribution network of Pepsi is very strong and
comprises of different layers and a dedicated sales force. This is one of the important
factors for the success of Pepsi.
Service – In this industry after sales service is generally not required. The only exception
being leak or burst bottles. In that case, the shopkeeper gets replacement for plastic
bottles from the salesmen instantly, while the replacement for glass bottles is provided
between 25th and 30th of every month. They are required to collect all the damaged glass
bottles and give to the respective salesperson who gives them the replacement within the
next few days after getting it approved from the CE or ADC.
SALES AND DISTRIBUTION NETWORK OF PEPSICO INDIA

40. 40
Initially the focus of the Company remains on reaching all the markets and then the
Company shifts its focus on increasing the frequency of sales in the respective markets so
that the sales and profitability of the Company can be increased.
Company (PepsiCo): PepsiCo India provides the salt to all the bottling plants in the
Country that carry out the bottling operations.
COMPANY
COBO FOBO
WAREHOUSE
C & F DISTRIBUTOR
WHOLESALER SLUMS RETAILER
RETAILER CUSTOMER
CUSTOMER
SALESMEN SALESMEN

41. 41
COBO: These are Company owned bottling operations operating directly under the
Company. Out of 32 bottling plants, PepsiCo owns 15.
FOBO: These are Franchise owned bottling operations. R K Jaipuria group does all the
franchisee-bottling operations for PepsiCo India; currently R K J Group has 17 bottling
plants for Pepsi.
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 centers and Distributor Points.
C & F CENTERS: These are the biggest centers in the distribution network and receive
proper assistance from the Company (either COBO or FOBO). The C & F center 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 centers. 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 centers 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 centers and Distributor points.
All the different players in the distribution channel namely C & F centers, 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 channel members in the distribution channel.
SALES AND MARKETING HIERARCHY OF PEPSICO INDIA.

42. 42
MUM – Marketing Unit Manager:
In charge of specific zones (e.g. north, south, east, west) and report to the
corporate office.
UM - Unit Manager:
MUM
UM
TDM MDM
MDCADC
CE ME
UM
SALESPERSONS MARKETING
ASSISTANTS

43. 43
In charge of day to day operations and supervision of all the functions within the
organizations including operations, logistics, sales and distribution, marketing. The Unit
Manager reports to the MUM.
TDM - Territory Development Manager:
TDM is the in charge of the sales and distribution network of a particular territory
within a zone. Responsible for the daily, monthly and annual sales within the territory
decides the daily schemes for products and incentives for salespersons. He is also
responsible for cost effectiveness, profit generation and profit maximization within the
territory.
MDM - Marketing Development Manager:
MDM is responsible for all the marketing activities and their effectiveness within
a territory. Decides the format and time frame of the marketing and promotional activities
and the incentives given to the retailers.
ADC - Area Development Coordinator:
Reports to the TDM, and is in charge of a C & F center and the distributor point in
the area. He is directly responsible for any issues in the area and is supposed to ensure the
smooth functioning of the entire sales and distribution network in the area. ADC is
responsible for timely disposal of any issue faced by the retailers. He decides and
approves the boards, displays and hoardings in the area.
MDC - Marketing Development Coordinator:
Reports to MDM, and is in charge of carrying out all the marketing activities in
the area. He is responsible for the execution and success of marketing and promotional
activities. Coordinates with the outside agencies for displays, boards, checks conducted in
the market. He is also responsible to keep a check on the expenditure of the marketing
activities in the market.
CE - Customer Executive:

44. 44
Reports to the ADC and is in charge of the salespersons. He is required to visit the
market and accompany every salesperson as frequently as possible. He is the first person
to get information about the market / area and is the first contact if the salespersons or
retailers face issue. Responsible for assigning and achieving daily sales target given to the
salespersons.
ME - Marketing Executive:
Reports to the MDC and is responsible for the daily functioning of the marketing
activities in the including awareness of promotions in the market and the response in the
market
Salesperson:
They are the most important asset for the company as they are the ones who sell
the products, are responsible for acquiring new customers, and retain the old ones. Their
work also includes informing the retailers about the promotions and any new scheme
launched. They are also required to push for the sale of any new product launched in the
market and make sure that the retailers are following the company guidelines regarding
the launch and the maintenance of Vicioolers. They report to the CE.
Marketing Assistant:
Reports to the ME and is responsible for the distribution and usage of the displays and
boards in the area. Also has to check whether retailers are following the guidelines of the
company regarding promotional displays, other displays and displays in the Vigicoolers.
They report to the ME.
Pepsi is one of the most well known brands in the world today available in over 160
countries. The company has an extremely positive outlook for India. "Outside North
America two of our largest and fastest growing businesses are in India and China, which
include more than a third of the world’s population." (PepsiCo’s annual report, 1999)
This reflects that India holds a central position in Pepsi’s corporate strategy. India is a key
market for Pepsico, and at the same time the company has added value to Indian
agriculture and industry. PepsiCo entered India in 1989 and is concentrating in three
focus areas – Soft drink concentrate, snack foods and vegetable and food processing.

45. 45
Faced with the existing policy framework at the time, the company entered the Indian
market through a joint venture with Voltas and Punjab Agro Industries. With the
introduction of the liberalisation policies since 1991, Pepsi took complete control of its
operations. The government has approved more than US$ 400 million worth of
investments of which over US$ 330 million have already flown in.
One of PepsiCo’s key strategies was to develop a completely local management team.
Pepsi has 15 company owned factories while their Indian bottling partners own 28. The
company has set up 8 greenfield sites in backward regions of different states. PepsiCo
intends to expand its operations and is planning an investment of approximately US$ 500
million in the next three years.
SUSTAINABLE COMPETITIVE ADVANTAGE:
Competitive advantage is a company’s ability to perform in one or more ways that its
competitors cannot or will not match. When a company is able to maintain that advantage
a long period of time that gives it an edge over its competitors then, this advantage is
termed as sustainable competitive advantage. Any competitive advantage must be seen by
customers as a customer advantage. Then only that competitive advantage can be
transformed into a sustainable competitive advantage.
Three major competitive advantages give PepsiCo India a competitive edge in the market
place. They are:
Big Muscular Brands built through better market positioning and heavy investment in
advertising and promotions;
Proven ability to innovate and create differentiated products through superior operating
base;

46. 46
Powerful go to market system built with the help of superior relationship base and an
impeccable sales and distribution network.
Making it all work are the extraordinarily talented and dedicated people who are an
integral part of PepsiCo India.
Communicating with the Customer:
Marketing Communication is the means by which firms attempt to inform, pursued and
remind consumers directly and indirectly about the products and brands they sell.
Marketing Communication is the central instrument of making brand equity. Marketing
Communication consists of six major modes of communications called the marketing
communication mix.
Although PepsiCo uses all the modes in some form or the other, but this study will
examine various aspects of communication with the internal customers.
3.3 PRODUCT PROFILE
Brand History
Slice was launched in India in 1993 as a refreshing mango drink and quickly went on to
become a leading player in the category.
In 2008, Slice was relaunched with a winning product formulation that made consumers
fall in love with its taste. With new pack graphics and clutter-breaking advertising, Slice
has built a powerful appeal.
Brand Advantage
With the launch of the ‘Aamsutra’ campaign in 2008, its winning taste and appealing
pack graphics, Slice created a great deal of excitement in its category and celebrated the
indulgence in mangoes like no other brand had done before.
While other players have portrayed the mango as a simple and innocent fruit, Slice
celebrates the sheer indulgence and sensuality involved in consuming a mango. The
creative ‘Aamsutra’ idea communicates the experience of extreme sensuous pleasure
through the act of drinking Slice.
Slice was the first brand ever in the Juice and Juice Drinks category to sign on Bollywood
diva Katrina Kaif as the brand ambassador for Slice.

47. 47
In 2009, Slice took the notion of indulgence to a whole new level with the launch of the
‘Slice Pure Pleasure Holidays’, giving its consumers a chance to win luxurious all-
expenses-paid holidays to dream European destinations like Paris, Vienna, Greece and
Venice.
Quick Brand Facts
 Slice was launched in India in 1993
 Slice Mangola was introduced in 1994

48. 48
CHAPTER IV:
RESEARCH DESIGN AND METHODOLOGY

49. 49
4.1 MEANING OF RESERCH
According to Clifford woody “research comprises defining and redefining
problems formulate hypothesis or suggested solution , collection and organising and
evaluating data, making deduction and reading conclusion ,and; last carefully testing the
conclusion to determining whether they fit the formulating.
Research is an art of scientific investigation. It is a common way of search for
knowledge. One can also define research as a scientific and systematic search for
pertinent information on a specific topic. In fact research can also be thought as careful
investigation especially through search for new facts in any branch knowledge.
4.2 RESEARCH DESIGN
Research design is a master plan or model for the conduct of formal investigation
survey; it is the specification of methods and procedures for accruing the informatics
needed for solving the problem.
“A research design is the arrangement of conditions for collection and analysis of
data manner that’s aim to combine relevance to the research purpose with economy
procedure” Research design is the conceptual structure.
The research design using here is Descriptive research design and Exploratory
research design The objective of descriptive research is to gather preliminary
information that will help define problems and suggest hypotheses.
4.3 RESEARCH INSTRUMENT
The research instrument used was questionnaire wherein questionnaire was prepared
separately for customers and retailers.
4.4 METHODS OF DATA COLLECTION
After establishing the objectives and determining the design of the research, it is
necessary to collect accurate data.
The methods used for collection of data are,
 Primary data
 Secondary data

50. 50
4.4.1PRIMARY DATA
Primary data is collected through the questionnaire from the various respondents.
The data will be collected through interviews with retailers, pepsico sales
representatives, distributors (gmg trading, rainbow distributors, thanikkal
distributors, beejay distributor and marwah trading) ce’s and managers.
Another method of collecting data is through questionnaire which will be separate
for customers and retailers.
4.4.2 SECONDARY DATA
Secondary data is being collected through magazines, internet, journals
companies, catalogues and advertisements.
4.5 SAMPLING
Sampling may be defined as the process of obtain the information about an entire
population by examining only a part of it. If any investigation, if data are collected only
from a repetitive part of the universe. We may say the data are collected by sampling.
CONVENIENCE SAMPLING:
Convenience sampling is a non-probability sampling technique where subjects are
selected because of their convenient accessibility and proximity to the researcher.
SAMPLE SIZE
The number of sampling unit selected from the universe to form a sample is called
sample size. Total sample size is 150(100 from customers and 50 from retailers)
4.6 SOFTWARE TOOLS USED
The software tools used for the study are Microsoft Word, Microsoft Excel,
google form and SPSS

51. 51
CHAPTER V:
ANALYSIS AND INTERPRETATION OF DATA

52. 52
5.1 The gender of the respondents
Table 1
Frequency Percent Valid Percent Cumulative Percent
Male 67 67.0 67.0 67.0
Female 33 33.0 33.0 100.0
Total 100 100.0 100.0
Figure 1
Inference
From the data collected, out of 100 samples 67 % are male and rest of them are
female of 33 %.

53. 53
5.2 The awarness of Pepsico's product
Table 2
Frequency Percent Valid Percent Cumulative Percent
Yes 96 96.0 96.0 96.0
No 4 4.0 4.0 100.0
Total 100 100.0 100.0
Figure2
Inference
From the data collected, out of 100 samples 96% of them are aware of Pepsico
product and only 4% are not aware.

54. 54
5.3 The satisfaction of PepsiCo's product
Table 3
Frequency Percent Valid Percent Cumulative
Percent
Satisfactory 89 89.0 89.0 89.0
Dissatisfactory 11 11.0 11.0 100.0
Total 100 100.0 100.0
Figure 3
Inference
From the data collected, out of 100 samples 89% of them are satisfied and the rest
only 11% are not satisfied.

55. 55
5.4 Usage of Pepsico's product as regular source of refreshment
Table 4
Frequency Percent Valid Percent Cumulative Percent
Yes 62 62.0 62.0 62.0
No 38 38.0 38.0 100.0
Total 100 100.0 100.0
Figure 4
Inference
From the data collected, out of 100 samples 62% of them use PepsiCo’s product
as regular source of refreshment and 38% don’t use them.

56. 56
5.5 Need for modification in the Pepsico's product
Table 5
Frequency Percent Valid Percent Cumulative Percent
Yes 69 69.0 69.0 69.0
No 31 31.0 31.0 100.0
Total 100 100.0 100.0
Figure 5
Inference
From the data collected, out of 100 samples 69% of them feel that there is need
for modification and 31% of them feel that there is need for modification.

57. 57
5.6 Satisfaction with carbonated product of PepsiCo
Table 6
Frequency Percent Valid Percent Cumulative Percent
yes 90 90.0 90.0 90.0
No 10 10.0 10.0 100.0
Total 100 100.0 100.0
Figure 6
Inference
From the data collected, out of 100 samples 90% are satisfied with carbonated
product of PepsiCo and 10% are not satisfied.

58. 58
5.7 Satisfaction with Aquafina
Table 7
Frequency Percent Valid Percent Cumulative Percent
Yes 71 71.0 71.0 71.0
No 29 29.0 29.0 100.0
Total 100 100.0 100.0
Figure 7
Inference
From the data collected, out of 100 samples 71% are satisfied with Aquafina
product of PepsiCo and 29% are not satisfied.

59. 59
5.8 Satisfaction with Tropicana
Table 8
Frequency Percent Valid Percent Cumulative Percent
Yes 71 71.0 71.0 71.0
No 29 29.0 29.0 100.0
Total 100 100.0 100.0
Figure 8
Inference
From the data collected, out of 100 samples ,71% are satisfied with Tropicana
product of PepsiCo and 29% are not satisfied.

60. 60
5.9 Satisfaction with Gatorade
Table 9
Frequency Percent Valid Percent Cumulative Percent
Yes 75 75.0 75.0 75.0
No 25 25.0 25.0 100.0
Total 100 100.0 100.0
Figure 9
Inference
From the data collected, out of 100 samples 75% are satisfied with carbonated
product of PepsiCo and 25% are not satisfied

61. 61
5.10 Satisfaction With Slice
Table 10
Frequency Percent Valid Percent Cumulative Percent
Yes 62 62.0 62.0 62.0
No 38 38.0 38.0 100.0
Total 100 100.0 100.0
Figure 10
Inference
From the data collected, out of 100 samples 62% are satisfied with slice product
of PepsiCo and 38% are not satisfied.

62. 62
5.11 Satisfaction with Nimbooz
Table 11
Frequency Percent Valid Percent Cumulative Percent
Yes 67 67.0 67.0 67.0
No 33 33.0 33.0 100.0
Total 100 100.0 100.0
Figure 11
Inference
From the data collected, out of 100 samples 67% are satisfied with Nimbooz
product of PepsiCo and 33% are not satisfied.

63. 63
5.12 Mango based drink preferred
Table 12
Frequency Percent Valid Percent Cumulative Percent
Slice 62 62.0 62.0 62.0
Maaza 18 18.0 18.0 80.0
Frooti 12 12.0 12.0 92.0
Jumpin 8 8.0 8.0 100.0
Total 100 100.0 100.0
Figure 12
Inference
From the data collected, out of 100 samples 62% prefer Slice, 18% prefer Maaza,
12% prefer Frooti and 8% prefer Jumpin as mango drink.

64. 64
5.13 Brand preferred due to taste
Table 13
Frequency Percent Valid Percent Cumulative Percent
Prefered 78 78.0 78.0 78.0
Not prefered 22 22.0 22.0 100.0
Total 100 100.0 100.0
Figure 13
Inference
From the data collected, out of 100 samples 78% prefer brand due to taste and
22% don’t prefer.

65. 65
5.14 Brand preferred due to brand image
Table 14
Frequency Percent Valid Percent Cumulative
Percent
Prefered 36 36.0 36.0 36.0
Not prefered 64 64.0 64.0 100.0
Total 100 100.0 100.0
Figure 14
Inference
From the data collected, out of 100 samples 36 % prefer brand due to brand image
and 64% don’t prefer.

66. 66
5.15 Brand preferred due to price
Table 15
Frequency Percent Valid Percent Cumulative
Percent
Prefered 23 23.0 23.0 23.0
Not prefered 77 77.0 77.0 100.0
Total 100 100.0 100.0
Figure 15
Inference
From the data collected, out of 100 samples 23% prefer brand due to price and 77
% don’t prefer.

67. 67
5.16 Brand preferred due to Availability
Table 16
Frequency Percent Valid Percent Cumulative
Percent
Prefered 22 22.0 22.0 22.0
Not prefered 78 78.0 78.0 100.0
Total 100 100.0 100.0
Figure 16
Inference
From the data collected, out of 100 samples 22% prefer brand due to price and
78% don’t prefer.

68. 68
5.17 Preferance of only One brand
Table 17
Frequency Percent Valid Percent Cumulative Percent
Yes 26 26.0 26.0 26.0
No 74 74.0 74.0 100.0
Total 100 100.0 100.0
Figure 17
Inference
From the data collected, out of 100 samples 26% prefer brand only one brand and
74% don’t prefer.

69. 69
5.18 Usage of drinks
Table 18
Frequency Percent Valid Percent Cumulative
Percent
During summer 42 42.0 42.0 42.0
Expect winter 19 19.0 19.0 61.0
Whole year 39 39.0 39.0 100.0
Total 100 100.0 100.0
Figure 18
Inference
From the data collected, out of 100 samples, 42 % use these drinks only during
summer, 19% use them expect winter and 39% use tem whole year.

70. 70
5.19 Preferance of mango drink due to taste
Table 19
Frequency Percent Valid Percent Cumulative Percent
Yes 54 54.0 54.0 54.0
No 46 46.0 46.0 100.0
Total 100 100.0 100.0
Figure 19
Inference
From the data collected, out of 100 samples 54% prefer mango drink due to taste
and 46 % don’t prefer.

71. 71
5.20 Preference of mango drink due to mood change
Table 20
Frequency Percent Valid Percent Cumulative Percent
Yes 34 34.0 34.0 34.0
No 66 66.0 66.0 100.0
Total 100 100.0 100.0
Figure 20
Inference
From the data collected, out of 100 samples 34 % prefer mango drink due to mood
change and 66% don’t prefer.

72. 72
5.21 Preference of mango drink for guest
Table 21
Frequency Percent Valid Percent Cumulative Percent
Yes 29 29.0 29.0 29.0
No 71 71.0 71.0 100.0
Total 100 100.0 100.0
Table 21
Inference
From the data collected, out of 100 samples 29 % prefer mango drink for guest
and 71 % don’t prefer.

73. 73
5.22 Preference of mango drink for relief from heat
Table 22
Frequency Percent Valid Percent Cumulative Percent
Valid
Yes 31 31.0 31.0 31.0
No 69 69.0 69.0 100.0
Total 100 100.0 100.0
Figure 22
Inference
From the data collected, out of 100 samples 31 % prefer mango drink for relief
from heat and 69% don’t prefer.

74. 74
5.23 Usage of mango based drink
Table 23
Frequency Percent Valid Percent Cumulative
Percent
Once in a week 18 18.0 18.0 18.0
Sometimes 31 31.0 31.0 49.0
Often 21 21.0 21.0 70.0
Occasionally 30 30.0 30.0 100.0
Total 100 100.0 100.0
Figure 23
Inference
From the data collected, out of 100 samples, 18% use mango drink once in a
week, 31 % use sometimes, 21 % use them often and 30% use them occasionally.

75. 75
5.24 Satisfaction with the quality of Slice
Table 24
Frequency Percent Valid Percent Cumulative Percent
Yes 87 87.0 87.0 87.0
No 13 13.0 13.0 100.0
Total 100 100.0 100.0
Figure 24
Inference
From the data collected, out of 100 samples 87 % are satisfied with quality of
slice and 13 % are not satisfied.

76. 76
5.25 Satisfaction with the price of Slice
Table 25
Frequency Percent Valid Percent Cumulative Percent
Yes 64 64.0 64.0 64.0
No 36 36.0 36.0 100.0
Total 100 100.0 100.0
Figure 25
Inference
From the data collected, out of 100 samples 64 % are satisfied with quality of
slice and 36 % are not satisfied.

77. 77
5.26 brands presently available
Table 26
Frequency Percent Valid Percent Cumulative Percent
one 31 62.0 62.0 62.0
three 8 16.0 16.0 78.0
four 11 22.0 22.0 100.0
Total 50 100.0 100.0
Figure 26
Inference
From the data collected, out of 50 samples, 62% have only one brand, 16% have
three brands and 22% have four brand.

78. 78
5.27 demandable brand in the current market
Table 27
Frequency Percent Valid Percent Cumulative
Percent
slice 36 72.0 72.0 72.0
frooti 7 14.0 14.0 86.0
maaza 2 4.0 4.0 90.0
others 5 10.0 10.0 100.0
Total 50 100.0 100.0
Figure 27
Inference
From the data collected, out of 50 samples, 72%of the demandable brand is slice, 14 %
Frooti , 4% Maaza and 10% other brand.

79. 79
5.28 how far slice is profitable when compared to other brands
Table 28
Frequency Percent Valid Percent Cumulative Percent
yes 34 68.0 68.0 68.0
no 16 32.0 32.0 100.0
Total 50 100.0 100.0
Figure 28
Inference
From the data collected, out of 50 samples, 68 % find slice profitable when compared to
other brand and 32 % doesn’t find it profitable.

80. 80
5.29 brand which is more marginal
Table 29
Frequency Percent Valid Percent Cumulative Percent
slice 33 66.0 66.0 66.0
frooti 7 14.0 14.0 80.0
maaza 4 8.0 8.0 88.0
others 6 12.0 12.0 100.0
Total 50 100.0 100.0
Figure 29
Inference
From the data collected, out of 50 samples, 66 %of the marginal brand is slice, 14 %
Frooti , 8% Maaza and 12% other brand.

81. 81
5.30brand which is having largest market share
Table 30
Frequency Percent Valid Percent Cumulative Percent
slice 44 88.0 88.0 88.0
frooti 4 8.0 8.0 96.0
maaza 2 4.0 4.0 100.0
Total 50 100.0 100.0
Figure 30
Inference
From the data collected, out of 50 samples, 88 % of the market share is of slice, 8%
Frooti , and 4% Maaza

82. 82
5.31decision that influences the sales most
Table 5.31
Frequency Percent Valid Percent Cumulative
Percent
advertisement 6 12.0 12.0 12.0
sales person 33 66.0 66.0 78.0
reference group 2 4.0 4.0 82.0
price 9 18.0 18.0 100.0
Total 50 100.0 100.0
Figure 31
Inference
From the data collected, out of 50 samples, sales decision is affected 12% by
advertisement, 66% by sales person, 4 % by reference group and 18% by price.

83. 83
5.32brand which is mostly sold
Table 5.32
Frequency Percent Valid Percent Cumulative Percent
slice 34 68.0 68.0 68.0
frooti 5 10.0 10.0 78.0
maaza 3 6.0 6.0 84.0
others 8 16.0 16.0 100.0
Total 50 100.0 100.0
Figure 32
Inference
From the data collected, out of 50 samples, 68% of mostly sold brand is slice, 10 %
Frooti , 6% Maaza and 16% other brand.

84. 84
5.33brand having the largest ad in the current market
Table 33
Frequency Percent Valid Percent Cumulative Percent
slice 44 88.0 88.0 88.0
frooti 2 4.0 4.0 92.0
maaza 3 6.0 6.0 98.0
others 1 2.0 2.0 100.0
Total 50 100.0 100.0
Figure 33
Inference
From the data collected, out of 50 samples, 88 % of the brand having largest ad is slice, 4
% Frooti , 6% Maaza and 2% other brand.

85. 85
5.34 opinion about slice distribution system
Table 34
Frequency Percent Valid Percent Cumulative Percent
poor 2 4.0 4.0 4.0
fair 9 18.0 18.0 22.0
average 6 12.0 12.0 34.0
good 19 38.0 38.0 72.0
excellent 14 28.0 28.0 100.0
Total 50 100.0 100.0
Figure34
Inference
From the data collected, out of 50 samples, the opinion for slice distribution is 4 % poor,
18% fair, 12% average, 38 % good and 28 % excellent.

86. 86
ONE SAMPLE T TEST FOR SLICE ISPROFITABLE WHEN COMPARED TO OTHER
BRANDS.
H0: Slice is not profitable when compared to other brands.
H1: Slice is profitable when compared to other brands.
TABLE 35 One-Sample Test
Test Value = 0
t df Sig. (2-tailed) Mean Difference 95% Confidence
Interval of the
Difference
Lower
how far slice is profitable
when compared to other
brands
19.808 49 .000 1.320 1.19
One-Sample Test
Test Value = 0
95% Confidence Interval of the Difference
Upper
how far slice is profitable when compared to other brands 1.45
INTERPRETATION
The statisticsforthe testare inthe above table.The one sample t-teststatisticis19.808 and the
p-value fromthisstatisticis.000 and that islessthan0.05 (the level of significance usuallyused
for the test) sucha p-value indicatesthatthe slice isprofitable fromotherbrands.The 95%
confidence interval is(1.19,1.45).
Hence accept alternative hypothesisandrejectnull hypothesis.

87. 87
CROSSTABULATION OF
BRANDS PRESENTLY AVAILABLE * DEMANDABLE BRAND IN THE
CURRENT MARKET
TABLE 36
demandable brand in the current market Total
slice Frooti Maaza others
brands presentlyavailable
one 31 0 0 0 31
three 3 3 2 0 8
four 2 4 0 5 11
Total 36 7 2 5 50
INTERPRETATION
1. In this row out of 31 retailers have only one brand and that is slice
2. Out of the 8 who have three brands, only 3 have slice product
3. Out of the 11 who have four brands only 2 have slice product.
4. In this column out of 36 who have slice, 31 retailers have only slice
product.

88. 88
CROSSTABULATION OF
BRAND WHICH IS MORE MARGINAL * BRAND WHICH IS HAVING
LARGEST MARKET SHARE
TABLE 37
brand which is having largest market share Total
slice frooti maaza
brand which is more
marginal
Slice 33 0 0 33
Frooti 4 3 0 7
maaza 2 0 2 4
Others 5 1 0 6
Total 44 4 2 50
INTERPRETATION
1. In this row out of 33 products which are marginal 33 is slice that has
largest market share.
2. In this column out of 50, the largest market share is of slice that is 44
3. Out of the brand which is marginal and having the largest market share
which is 44, 33 are slice .