Project

Evaluation of Marketing Mix Strategy and Consumer Preference Towards Soft Drink Products of PepsiCo
INTRODUCTION TO SOFT DRINK INDUSTRY ORIGIN AND GROWTH

Any drink that is not hard liquor can be referred to as a 'soft drink'; however, in this piece 'soft drink' refers to carbonated, sweetened beverages also known as soda or soda pop. Soft drink had existed since the early 1800s when many U.S druggists had prepared the sweet syrup by mixing blends of fruit juices and carbonated soda water, then it expanded its empire through out the world. Carbonated water was for sale by the end of the 1700s; this is how pharmacies, which will prove important later, get into the picture, by being the supplier of the health-inducing carbonated water. The urge to flavor this sparkling water came quickly. And the ability to add flavors was keeping pace; in 1784 citric acid was developed from lemon juice. By 1833, carbonated lemonade was for sale in England. Forty years later, ginger ale became a popular drink; clear, rather than cloudy like ginger beer, it was a more attractive beverage. Lemon's Superior Sparkling Ginger Ale has the distinction of receiving the first US trademark registration in 1871. 1886 is a key year for soft drink history for other reasons, too: Coca-Cola, Dr Pepper, and Moxie were all introduced to the pharmacy-going public. Jacob's Pharmacy of Atlanta, Georgia, became the debut site for Coca-Cola. Conceived of as a headache remedy by pharmacist John Pemberton, the syrup was sold on a trial basis to William Venable, the counterman at Jacob's. Venable added a shot of the syrup, made in part from the leaves of the coca
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plant and the caffeine-laced juice of the kola nut. In his first year of business, Pemberton made twenty-five dollars, which didn't quite pay for the almost seventy-five dollars he spent in advertising. Moxie, which rivals Coca-Cola in these early years, was the drink with a difference--the main ingredient is not carbonated water, but rather, the herb gentian. It's an acquired taste. The soft drink market is continuously developing. More people are drinking soft drinks, and new beverages are continuously introduced to the marketplace. This is a large industry, having a significant impact on several sectors of chemical manufacturing. Drinking soft drinks not only fulfills physiological needs, but provides social satisfaction as well. A few multinational producers like Pepsi and Coke are aggressively active alongside numerous local producers. Drinking habits vary around the world, from an annual consumption of one or two liters per capita, to more than half a liter per day. People drink it cold or warm, morning, noon or night, summer or winter from bottle, can and at fountain counter. They like the way the bubbles tickle their noses. The product and market potential carbonated soft drink is largely consumed by people of all age, especially during summer to quench the thirst. These are normally available in bottled form and consumed in the cold / chilled condition. Various types of soft drinks including orange, cola, lime and lemon based drinks as well as soda water fall in this category of aerated soft drinks.
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The soft drinks industry calculates the morning soft drink consumption that accounts for 12-15% of total soft drinks consumption in a day. Different countries have different attitudes towards the safety aspects related to the use of different additives. Local economic considerations bring governments to issue regulations for using (or rather -- not using) certain additives. And beyond all these factors, the market in developed countries seems to be bored with the traditional beverages, and new types of soft drinks are entering the market.
INDIAN SOFT DRINK INDUSTRY

The Indian soft drink industry is today at a stage in which every major soft drink manufacturer in the world is trying to get a foothold. In this region where the oppressive summer continues for more than 6 months of the year, the market demand for soft drink is quite substantial. Indians have traditionally favored tea, coffee & other beverages for refreshment, over the soft drink available in the market. The per capita consumption of soft drink in India is one of the lowest in the world. In India the six metros account for 40% of sales in mini metros for 20% of soft drinks. This anomaly is because no one has attempted to expand the market. However the industry is poised for a take off stage with increasing urban population, more outdoor eating habits, higher literary levels and hence greater awareness and media reach contributing tremendously to the growth. This factor has attracted the Cola giants Pepsi & Coca-Cola into making a foray into the Indian market. They see tremendous potential for expansion of soft drink market in India and have spent a large account of money and effort in setting up their operation.
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Organized sector contributes about 70% of total market share. There are about 60 units turning out 250 brands of soft drinks and fruit drinks in India. The Indian soft drink industry shot into world fame when the well known manufacturer Coca-Cola was shown the gate and circle turned a full round when Pepsi was allowed to enter India. However it was Parle all the way. It had put every one at the port and undoubtedly been the winner of all the Cola wars. Pepsi however took positive steps to persuade the Indian government to allow it to do business in the industry on reasonable terms. Pepsi used mega marketing in its attempt to enter the huge Indian market. Pepsi worked with an Indian Business group to seek approval for its entry. Both domestic soft drinks companies and anti-multinational legislators objected to letting Pepsi into India. So Pepsi had to make an offer, which Indian government would find hard to refuse. Therefore Pepsi offered to help India export enough of its agricultural products to more than offset the outlay for importing soft drink syrup. Pepsi also promised to focus a good deal of selling effort on rural areas to help in their economic development. The company further offered to construct an agricultural research center and to give food processing, packing and water treatment technology to India. After three years of haggling, the Indian bureaucracy finally approved Pepsis extensive proposal, Pepsi is leading the Indian soft drink market. After the exit of Coca-Cola so many changes have been taken place. The domestic brands were established and became popular, but by introduction of economic liberalization, the soft drink giants arrived in Indian home again. Now the two giants Coca-Cola and Pepsi are fighting for capturing the soft drink market.
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INTRODUCTION TO MARKETING MARKET

A market consists of all potential customers sharing a particular need or want that might be willing and able to engage in exchange to satisfy that need or want. Originally the team stood for the place where buyers and sellers gathered to exchange their goods. Now market has become a general firm with need market, product market, labor market etc as in different denominations. In simple words we can define market as the physical place where goods and services are bought and sold by farmers market where growers sell their produce to the public. In other words market means any person or group with whom an individual or organization has an existing or potential exchange relationship. It is an area where forces of supply and sources of demand from consumers operate. Market also means any body of persons who are in intimate business relations and carry on extensive transaction in any commodity
MARKETING
American association of marketing defines marketing as the performance of those activities that are directed at satisfying human needs and wants. In view of Philip Kotler the marketing is consumer-oriented activity backed with integrated marketing approach aim to satisfy the need of the consumer and also there-by achieving organization objectives.
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Marketing is a total system of business activities designed to plan prices promote and distribute want-satisfying product to target market to achieve organizational objectives. This definition has two significant implications. The entire system of business activities should be customer-Oriented customers wants must be recognized and satisfied. Marketing should start with an idea about a want-satisfying product and should not end with the customers want are completion satisfied, which may be some time after the exchange made. Importance of Marketing: Management occupies the most important place in any business organization. Main reason is that, the ultimate aim of any business unit is to earn profit by selling goods and services to customers for the business. Marketing provides the necessary customers for the business to produce goods. Marketing helps in matching the markets with the product of quality. Matching product with markets means determining the wants and needs of potential customers and supplying products which meet those demands. Marketing helps not only the producers, but also customers and society. Marketing management performs all Managerial functions in field of Marketing. It has to plan and develop the product on the marketing POLICIES and programs. Marketing management organizes, directs and controls all marketing activities included in the process of marketing all goods and services. Marketing management: Marketing management is the process of planning implementing and directing a firms marketing efforts with the intention of satisfying the customers
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and turning a profit among the many functions included in the marketing management prices are strategy development and sites forecasting advertising and sites promotion, analysis of market opportunities and the establishment of proper the proper marketing mix. Marketing concept: The purpose of modern day business is to create customers. Marketing should aim at producing that which the consumers need in the quality he requires at a price he can afford through the channels that will suit to his convenience and at the time he needs them. The marketing concept is customer orientation backed by integrated marketing aim at generating customer satisfaction is the key to satisfying organizational goods and efficiently than competitors.
MARKETING MIX
Marketing mix is the term used to describe the combination of four inputs that constitute the act of an organizations marketing system. The four elements are: product mix, price mix, place mix and promotion mix. These four ingredients in marketing mix are inter-related.
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The Four Ps/ Components of Marketing Mix
Marketing Mix
Product Product variety Quality Design Features Brand name Packing Sizes Services Warranties Returns
Target Mix
Place Channels Coverage Assortments Locations Inventory Transport
Price List price Discounts Allowances Payment Period Credit Terms
Promotion Sales Promotion Advertising Sales Force Public Relations Direct Marketing
Marketing strategy: The marketing logic by which the business unit hopes to achieve its marketing objectives. Marketing strategy consists of specific strategies for target markets. Marketing mix and the marketing expenditure level.
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MARKETING CHANNELS
To reach a target market, the marketer uses three kinds of marketing channels:
1) Communication channels deliver and receive messages from target

buyers, and include news papers, magazines, radio, television, mail, telephone, bill boards, Posters, filters, CDs, audiotapes and internet. Beyond Communication Channels are conveyed by facial expressions and clothing, the look of retail stores and many other media.
2) The marketer uses Distribution channels to display, sell or deliver the

physical product or services to the buyer or user. They include distributors, wholesalers, retailers and agents.
3) The marketer also uses Service channels to carry out transactions with
potential buyers. Service channels include ware houses, transportation companies, banks and insurance companies that facilitate transactions. Marketers clearly face a design problem in choosing the best mix of communication, distribution, and service channels for their offerings. Distribution channels can be viewed as a set of interdependent organizations, involved in the process of making a product or service available
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for consumption or use. The final result of effective marketing channel is assurance of end used satisfaction via provision of time, place, and possession utilities. Effective Channel Management is equivalent to total quality management. The members of distribution channels like manufacturers, wholesalers, retailers, and specialized logistic agencies can achieve high yield performance primarily through their demand stimulating and delivery of activities. But performance requirement at one level of the marketing channel imply execution requirements and expectation at other levels. Retailers for example often measure their productivity by employing such criteria as sales per square foot, sales per employee and sales per transaction. Generation of high level sales per square foot may necessitate heavy advertising by manufacturers and the maintenance of high inventory levels by wholesalers. Retailing: The distribution comprises of the retailing and wholesaling. Retailing consists of activities in selling goods and services to ultimate consumers for personal consumption. Any organization selling to final consumers, whether it is manufacturer, wholesaler or retailer is retailing. it does not matter how the goods or services are sold (by person, mail, telephone, vending machine or internet) or where they are sold (in a store, on a street, or consumers home).Thus a retail sale is one in which the buyer is an ultimate consumer as opposed to a business or institutional purchaser. Wholesaling: Wholesaling includes all the activities involved in selling goods or services to those who buy for resale or business use. It is concerned with the activities of those persons or establishments which sell to retailers and other merchants, but
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who do not sell in significant amounts to ultimate consumers. Wholesaling excludes manufacturers and farmers because they are engaged primarily in production, and it excludes retailers. Wholesalers (also called distributors) differ from retailers in a number of ways. First, wholesalers pay less attention to promotion, atmosphere, and location because they are dealing with business customers rather than final consumers. Second, wholesale transactions are usually larger than retail transactions, and wholesalers usually cover a larger trade area than retailers. Third the government deals with wholesalers and retailers differently in terms of legal regulations and taxes. Physical distribution is a term appropriately applied to the outgoing product flow from the firm to consumers through some defined network of transportation banks and storage of distribution nods called a distribution network. This network may tie the firm to an individual consumer or to the other firms. Exclusive Distribution It is a strategy in which a supplier agrees to sell its product only to a single wholesaling middleman and/or retailer in a given market. Intensive Distribution It is a strategy in which a producer sells its product through every available outlet in a market where a consumer might reasonably look for it. Exclusive Dealership Where the distributor of the company stores and supplies the products of the same company only and he does not store and supply other companys products.
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CONSUMER BEHAVIOR
Our society is a study in diversity we see diversity among consumers, among marketers, among customs, among nations and even among consumer behavior theoretical perspective. But in spite of prevailing diversity in our society, there are so many similarities which make it possible for marketers to design marketing strategies that influence consumers who are similar in terms of some relevant product interest or characteristic. The study to consumer behavior enables the marketers to understand product and consumer behavior in market place: it also promotes understanding of the role that consumption plays in the lives of individuals. Consumer Behavior is defined as the behavior that the consumers display in searching for, purchasing, using, evaluating and disposing of the products and services that they expect will satisfy their needs. Consumer behavior focuses on how individuals make decisions to spend their available resources (time, money, effort) in consumption related items. That includes what they buy, why they buy it, when they buy it, where they buy it, how often they buy it, how they evaluate it after the purchase and the impact of such evaluations on future purchases, and how they dispose it.
BUYER BEHAVIOUR
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Buyer behavior has been defined as an all psychological, social and physical behavior of potential customers that are being aware of, evaluate purchase, consume and tell others about products and services. It is there fore the act of individuals directly involved in obtaining and using goods and services and sequence of decision process that precede these acts.
MAJOR FACTORS INFLUENCING CONSUMER BEHAVIOUR

Cultural factors: Cultural factors like culture, sub culture and social class exert the broadest influence on consumer behavior.
i. Culture:
Culture is the most fundamental determinant of persons wants and behavior. A child growing up learns a set of values, perception and behavior pattern from the society.
ii. Sub culture:

Each culture consists of smaller sub cultures that promote specific identification and socialization for its members. The four sub cultures are: Nationality groups like India, Japan Canada etc.
Religion groups like Hindu, Christian, and Muslim etc.

Racial groups like black, white, oriental etc.
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Geographical areas like Karnataka, Tamilnadu, Gujarat, etc. iii. Social class: Social classes are relatively homogeneous and enduring divisions in a society and their members share similar values, interests and behavior. Social factors as reference groups, family, social roles and status: Reference groups: A persons reference group consists of all the groups that have direct or indirect influence on his attitudes and behavior. Groups that have a direct influence on the person are the primary groups, which include his family, friends, neighbors etc. And secondary groups include factors such as religion profession, trade, union etc. then there is an aspiration group in which the person does not belong but aspires to join, e.g., a teenager may hope one day to play for Indian cricket team. Role status: A person participates in many groups through out his family, clubs, organizations, etc. A persons position in each group can be defined in terms of roles and status. E.g. A plays the role of daughter with her parents, a wife in her family; in an organization she plays the role of manager. As role constants of the activities a person is expected to perform according to the people around him or her. Personal factors:
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A buyers decision is also influenced by his or her personal characteristics notably the buyers age, occupation, economic conditions, life styles, personality and self-concept. Age: People change the goods and services they buy over their lifetime. E.g. they eat baby food in their early years, normal food in their growing years and special diets in their old age. Their tastes and preferences also change with age. Occupation: A consumers consumption pattern is also influenced by his or her occupation. Marketers try to identify the occupational groups and specialize in producing products needed by a particular occupational group. Life style: A persons life style is expressed in persons activities, interests and opinions. Life style portrays the whole person interacting with his or her environment. Economic conditions: Peoples economic condition consists of their speedball income, saving and assets, borrowing power and attitude towards spending v/s saving. Therefore marketers of income sensitive goods pay serious attention to trends in personal income, saving and interest areas. Personality and self-concept: Personality encompasses a persons distinguishing psychological characteristics that add to relatively consistent responses to his or her
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environment. All of us carry around a complex mental picture of ourselves; marketers should keep this in mind to develop brand images of target market. Psychological factors: Motivation: A person has many needs at given time. Some needs are biogenic such as hunger, thirst, and discomfort. Other needs are psychogenic such as the need for recognition, esteem or belongingness and love. Most needs will be intense enough to motivate the persons to act immediately. A need becomes a motive or drive when it is aroused to a sufficient level of intensity. A motive or a drive is a need that is sufficiently pressing to drive the person to act. Satisfying the need reduces the felt tension. Perception: A motivated person is ready to act. Now the motivated persons act is influenced by his perception of the situation. Two persons in the same motivated state and objective act quite differently because they perceive the situation differently. Perception can be defined as the process by which an individual selects, organizes and interprets information input to create a meaningful picture of the world. Perception depends not only on the character of the physical stimuli but also on the relation of the stimuli to the surrounding field and on conditions with the individual. Learning: When people act, they learn. Learning describes changes in an individual behavior arising from experience. Most human behavior is learned. Learning
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theorists say that a persons learning is produced through the interplay of drive, stimuli, cues, responses and reinforcement. The practical importance of learning theory for marketers is that a new company can enter the market by appealing to the same drives that competitors appeal to and providing similar cue configuration because buyers are more likely to transfer loyalty to similar brand than to dissimilar brands.
Beliefs and attitudes: Through acting and learning people acquire their beliefs and attitudes. These in turn influence their buying behavior. A belief is a disciplined through that the person holds something. These beliefs make up product and brand images and people act on their images. An attitude describes a persons enduring favorable feeling and action tendencies towards some object or idea. Attitudes are very difficult to change and a company would be well advised to fit its product into existing attitude rather than try to change it.
BUYING DECISION PROCESS

Marketers have to go beyond the various influences on buyers and envelop an understanding of how consumers actually make their buying decision. BUYING ROLES We can distinguish several roles people might play in buying decision process.
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i.
Initiator: He is the person who first suggests the idea of buying the particular
product or service.
ii.
Influencer: He is the person whose views or advice carries some weight age in
making the final decision.
iii.
Decider: He is the person who ultimately determines the buying decision.
iv.
Buyer: He is the person who makes the actual purchase.
v.
User: He is the person who consumes or uses the product or service.
TYPES OF BUYING BEHAVIOR

The types of buying behavior are as follows: 1. Complex buying behaviors: Consumer goes through complex buying behavior when they are aware of the significant differences existing among various brands. Consumers become highly involved in a purchase when it is expensive, bought infrequently, risky, and highly self expressive.
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2. Dissonance reducing buying behavior:

In this type of buying behavior the consumer is highly involved in the purchase but sees little difference in various brands. The high involvement is again based on the fact that the purchase is expensive, infrequent and risky. In this case the buyer will shop around to learn what is available but will buy fairly quick brand differences are not pronounced.
3. Habitual buying behavior:

Many products are bought under the conditions of low consumer involvement and the absence of few brand differences. E.g. A product like salt, consumer behavior in these cases does not pass through normal belief- attitudebehavior sequence. Consumers do not search extensively for information about the brands, evaluate their characteristics and make a weighty decision of which to buy. Instead, they are passive.
PERCEPTION Definition
Perception is defined as the process by which an individual selects, organizes and interprets stimuli into a meaningful and coherent picture of the world. A Stimulus:
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Is any unit of input to any senses. Example of stimuli (i.e. sensory inputs) includes products, package, brand names, advertisement and commercials. Sensory Receptors: The sensory receptors are human organs (the eyes, ears, nose, mouth and skin) that receive sensory inputs. The sensory functions are: see, hear, smell, taste and feel. All of these functions are called into play either single or in combination in the evaluation and use of most consumer products. Sensation: Sensation is the immediate and direct response of the secondary organs to simple stimuli (as advertisement, a package, and a brand name). Subliminal perception: Subliminal perception is the perception of very weak or rapid stimuli received below the level of conscious awareness. Supraliminal perception: Perception of stimuli that above the level of conscious awareness.
THE ASPECTS OF PERCEPTION

Selective perception A heightened awareness of stimuli relevant to ones needs or stimuli, which get repents upon nature of stimuli, expectations and motives.
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Perception Organization The subconscious ordering and perception of stimuli into groups or configuration according to certain principle of gesture psychology. The most basic principles of perceptual organization center are figure and ground relationships, grouping and closure. Perceptual interpretation The interpretation of stimuli is highly subjective and is based on what the consumer expects to see, the height to previous experience on the number of explanations he or she can envision on motives and interests at the time of perception and the charity of stimuli itself. Perceptual Mapping The technique of perceptual mapping helps marketers to determine just how their products appear to consumers, in relation to competitive brands one or more product characteristics it enables them to see gaps in the positioning of brands in products class and to identify areas in which consumer needs are not being adequately met. Perceived Quality The quality attributed to a product by the consumers on the basis of various informational eves are intrinsic to the product such as specific product characteristics other are extremist to product such as price, store image and promotional message. Perceptual Blocking
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The subconscious screening out of stimuli that are threatening or inconsistent with ones needs values, belief or attitudes. Perceived Risk Perceived risk is defined as the uncertainty that consumers face when they cannot foresee the conservancies of their purchase decisions.
Types of Risk 1. Functional Risk 2. Physical Risk 3. Financial Risk 4. Social Risk 5. Time Risk 6. Psychological Risk
MARKET RESEARCH
According to Philip Kotler Marketing Research can be defined as the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company. American association has defined Marketing Research as The Systematic gathering, recording and analyzing of data about problems relating to marketing goods and services.
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Here the key word systematic distinguishes research from a haphazard gathering of information. Based on this effective tool a manager can learn about changing customer wants, new competitors initiatives, changing distribution channels and so on.
DESIGN OF THE STUDY TITLE OF THE STUDY

Evaluation of Marketing Mix Strategy and Consumer preference towards Soft Drink Products of Pepsi Co
STATEMENT OF THE PROBLEM

A Research problem in general refers to the difficulty, which a researcher experiences in the context of either a theoretical or practical situations and wants to obtain a solution for the same. It is rightly said that a problem clearly stated is a problem half solved. Thus defining research problems properly is a prerequisite for any study and a step of highest importance. An attitude refers to the inner feeling of an individual. It shows whether a person is favorable or unfavorable to the particular brands of products in this case soft drinks. This attitude will change from man to man, and from time to
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time, the people have different attitudes. How the people behave while purchasing soft drinks, what are the factors they will consider, what factors influence a buying decision? There are some questions concerned under the consumer questionnaire survey. It is also the part of Market research.
NEED FOR THE STUDY

Consumer attitude towards Marketing Mix has a great role to play in the purchase decision. Therefore it is necessary for every marketing manager to try and understand the consumer attitude. This could be helpful to the manufacturer to understand the attitude of the consumer. The manufacturer must consider the following while making the decision and policies: i. Tailor made product ii. It should be priced right iii. It must be standard and specific iv. It must be easy for handling and distribution v. It should reach the right consumer at the right time and at right place.
OBJECTIVES OF THE STUDY 1)

2) Bangalore City. 3) 4) ideal soft drink.
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To study the various factors & their influence which To know about different brands of soft drinks sold in To study the customers attitudes towards soft drinks. To ascertain the attributes consumers look for in an
effect the selection of soft Drinks
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5) 6) 7) 8) 9)
To know the most effective media for advertising the To identify the brand of soft drink the customer To gain knowledge from consumers about their To understand the consumers mind & their
product that has greatest influence on the respondents. prefers and regularly uses and also their satisfaction with their chosen brand. satisfaction towards pricing strategies satisfaction towards the distribution strategies adopted by Pepsi Co. To get suggestions from consumers about the details of various other promotion techniques that can be adopted other than the present techniques adopted by the company 10) To compare the Promotion, Distribution and Pricing strategies adopted by Rival firms.
SCOPE FOR THE STUDY

The study is exclusively conducted to gather information about consumer preference towards soft drinks. The study is concerned only with consumers buy soft drinks. The study is confined to the city of Bangalore as it is the fastest growing city in India and represents a huge market for soft drinks with increasing literacy rate and corporate people are spending more percentage of income on refreshments. The respondents chosen were a mix of sex, ages, occupation, household & students from various parts of Bangalore city. The market research will provide valuable information on the awareness of products of Pepsi Co based on which the company can alter its communication strategy, if necessary. The market research will highlight the consumer response towards the soft drinks of Pepsi in the form of consumer image, opinion etc. which is very critical information for a soft drink company.
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This will help the company to make changes in its marketing mix to operate efficiently in a competitive environment.
Research Design:
Type of study: Exploratory The major emphasis of exploratory research is on discovering of ideas to asses consumers attitude etc, the idea is to clarify concepts and subsequently make more exploratory research on them. The basic advantages of exploratory research are low cost and less time requirement.
METHODOLOGY OF THE STUDY

Detailed customer studies are required for determining the size of the market and to understand the influence of quality, price and other trends like pre & post purchase attitudes etc., the survey method has been adopted for data collections, drafted questionnaire was prepared pre-tested and finalized. Direct interview method or survey research approach has been adopted. Our target populations for this research from which the data are to be gathered are carefully chosen. Here in our research a population is an aggregation of elements. Out of two available designs we have chosen the probability sample that is simple random sampling it is precisely defined system that permits no arbitrary or biased selection. The sample size selected was 100. The respondents have been selected from parts of Bangalore City. In our sampling technique, each person was taken
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as unit sample and respondents chosen were a mix of house holds, ages, occupation, sex, etc. In this study the largest population is the customers of Pepsi.
Tools for data collection:

Data has been collected through structured questionnaire. It has been pretested administrated and adopted (A copy has been enclosed in Appendix). To approach the respondent direct interview techniques has been adopted. The questions were carefully chosen. The responses from interviewers have been written down as the interview was in progress. Open ended, close ended, multiple choice and scaling techniques were incorporated to elicit responses from respondents. The major step in our research work was gathering the needed information i.e., decision on data sources.
Data Sources:
The research plan calls for gathering of primary data and secondary data.
a. Secondary Data: Secondary data has been collected from various sources. Internal Sources: Companys Annual report (P&L a/c and Balance
Sheet)
Business Publications: Magazines, Journals, Periodicals, Business

Newspapers, Web sites etc.
Others: Broachers, folders, leaflets, Manuals etc,. b. Primary Data: These data are gathered for our research purpose. This is
first-hand information, for this purpose a structured type of questionnaire was designed and administered.
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Fieldwork:
Fieldwork was carried out to collect the primary data from the respondents. The field work was mainly carried on in the evening the questionnaire was given to the respondents to fill in. The respondents took a time of 10-15 minutes at an average. The questionnaire was prepared keeping in mind the target group and their areas of interest concerned with a particular
LIMITATIONS
1. Due to constraints of time & resources the sample size is limited to 100. 2. There are possibilities of unjustified quality ratings given to attributes of the products while answering. 3. The information obtained from respondents is based on both questionnaire and face to face interview. Their responses may change in other occasions. 4. Fast Changing taste and life style of respondents may adversely affect this research work. 5. The sample is supposed to represent the views of the whole population. 6. The study is limited to some parts of Bangalore City which has market potential for the products of Pepsi. 7. Certain factors that were treated as highly confidential by the Company were not received and this definitely affects the accuracy of the results.
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PROFILE OF THE COMPANY
PROMOTERS BACK GROUND

PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion, net income of $2.7 million dollars and over 143,000 employees. PepsiCo achieved return on sales, assets and equity of 9.8%, 12.5% and 32.8%, respectively. The company has a current ratio of 1.17 and a debt to equity ratio of .3 and liability to equity ratio of 1.5. Based upon these ratios it appears that PepsiCo is in good financial health. PepsiCo has two key industries: beverages, defined as non-alcoholic and non-dairy, and snacks, defined as salty, sweet, and grain-based. The company
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consists of the snack business of Frito-Lay North America and the beverage and food businesses of PepsiCo Beverages and Foods, PepsiCos worldwide beverage operations include Pepsi-Cola North America (PCNA), Gatorade/Tropicana North America (GTNA), and PepsiCo Beverages International (PBI). Frito-Lay is PepsiCos operating division in the snack food industry. PepsiCo has an operating division, Quaker Oats, which competes in the ready-to-eat cereal and other convenient food markets. Quaker Oats is the smallest division and contributed less than 10% of the revenues to PepsiCo. As such it has not been analyzed in depth as the beverage and snack food divisions and industries have been for this report. PepsiCo brands are available in nearly 200 countries and territories.
Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001. PepsiCos success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of the company people. The Companys over riding objective is to increase the value of their shareholders investment through integrated operating, investing and financing activities. The companys strategy is to concentrate on their resources in growing their business, both through internal growth and carefully selected acquisitions. The companys strategy is continually fine tuned to address the
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opportunities and risks of the global marketplace. The corporations success reflects the continuing commitment to growth and focus on works by masters such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro and Clacs Oldenberg.
Mission:
The Company mission is to be the world's premier consumer Products Company focused on convenient foods and beverages. To build an Exceptional customer focus sales team this will consistently exceed customer Expectation by delivering executional excellence in the market place though best selling systems and processes.
Vision:
To be the best consumer products company in the eyes of our suppliers, customers, consumers, employees and shareholders.
Quality Policy:
We shall deliver the best product in the market place with the highest quality and the best taste.
Safety Policy:
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We shall design, construct, maintain and operate our plants so that they are safe for the people working in the factory, the assets of the company, the environment in and around the company.
Research and Development:

An innovator in the snacks and beverages industries, Frito-Lay continually leads the development of unique preservatives, additives, and packaging technologies. As a result, it is likely that they will be the developers of future disruptive products. However, as in other industries, large companies like Frito-Lay are often married to existing methods of doing business and are vulnerable to disruptive technologies. To mitigate this vulnerability, it is important that Frito-Lay continues investing in R&D and incorporating new potentially disruptive technologies into its products.
Product Life-Cycle
Because Pepsi does not have a limited product life cycle, and is theoretically endless as long as there is a demand for soda, this factor is not a substantial determinate of the companys global expansion.
PepsiCo Headquarters
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PepsiCo World Headquarters is located in Purchase, New York, approximately 45 minutes from New York City. The seven building headquarters complex was designed by Edward Durrell Stone, one of America's foremost architects. The building occupies 10 acres of a 144-acre complex that includes the Donald M. Kendall Sculpture Gardens, a world acclaimed sculpture collection in a garden setting. The collection of works is focused on major twentieth century art, and features works by masters such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenberg. The gardens were originally designed by the world famous garden planner, Russell Page, and have been extended by Franois Goffinet. The grounds are open to the public, and a visitor's booth is in operation during the spring and summer.
BUSINESS
The company consists of the snack business of Frito-Lay North America and the beverage and food businesses of PepsiCo Beverages and Foods, which includes PepsiCo Beverages North America and Quaker Foods North America. PepsiCo International includes the snack businesses of Frito-Lay International and beverage businesses of PepsiCo Beverages International.
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SNACK FOODS
Frito-Lay PepsiCo's snack food operations had their start in 1932 when two separate events took place. In San Antonio, Texas, Elmer Doolin bought the recipe for an unknown food product a corn chip and started an entirely new industry. The product was Fritos brand corn chips, and his firm became the Frito Company. That same year in Nashville, Tennessee, Herman W. Lay started his business distributing potato chips. Mr. Lay later bought the company that supplied him with product and changed its name to H.W. Lay Company. The Frito Company and H.W. Lay Company merged in 1961 to become Frito-Lay, Inc. Today, Frito-Lay brands account more than half of the U.S. snack chip industry. PepsiCo began its international snack food operations in 1966. Today, with operations in more than 40 countries, it is the leading multinational snack chip company, accounting for more than one quarter of international retail snack chip sales. Products are available in some 120 countries. Frito-Lay North America includes Canada and the United States. Major Frito-Lay International markets include Australia, Brazil, Mexico, the Netherlands, South Africa, the United Kingdom and Spain. Often Frito-Lay products are known by local names. These names include Matutano in Spain, Sabritas and Gamesa in Mexico, Elma Chips in Brazil,
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Walkers in the United Kingdom and others. The company markets Frito-Lay brands on a global level, and introduces unique products for local tastes. Major Frito-Lay products include Ruffles, Lay's and Doritos brands snack chips. Other major brands include Cheetos cheese flavored snacks, Tostitos tortilla chips, Santitas tortilla chips, Rold Gold pretzels and Sun Chips multigrain snacks. Frito-Lay also sells a variety of snack dips and cookies, nuts and crackers. In order to increase the consumers willingness-to-pay, Frito-Lay focuses on adding product value through product innovation. For example, to find the perfect chipping potato Frito-Lay develops thousands of proprietary potato seed varieties not available to other manufacturers. Frito-Lay has also patented a process that intensifies flavoring by coating both sides of its potato chips. Both of these examples show efforts to differentiate potato chips (an unlikely candidate) in order to increase prices. While Frito-Lay works to differentiate its products by adding value, it also is involved in aggressive cost cutting measures. Investments in improved distribution channels, such as through the merger with Quaker Oats, will reduce lead times and inventory carrying costs. Maintaining or lowering product costs allows PepsiCo/Frito-Lay to further gain a competitive advantage and increase operating profits Financially, the Frito-Lay division contributed to PepsiCos 32.8% return-on-equity by providing 61% of the companys total sales (65% of total operating profit) in 2001. These sales represented a 6% increase in 2001, totaling more than $9.3 billion. In terms of market share, Frito-Lay controls
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59% of the US snack chip market, with P&G holding the second market position at only 3% market share.
BEVERAGES
Pepsi-Cola PepsiCos beverage business was founded at the turn of the century by Caleb Bradham, a New Bern, North Carolina druggist, who first formulated Pepsi-Cola. Today consumers spend about $33 billion on Pepsi-Cola beverages. Brand Pepsi and other Pepsi-Cola products including Diet Pepsi, Pepsi-One, Mountain Dew, Slice, Sierra Mist and Mug brands account for nearly onethird of total soft drink sales in the United States, a consumer market totaling about $60 billion. Each of PepsiCos beverage operation units contributed to the overall growth of the company. Worldwide beverage operations totaled over $10.44 billion or 39% of total net sales in 2001. Worldwide beverage operations (before accounting for merger-related costs, restructuring, and other corporate costs) totaled 35% or $1.68 billion of PepsiCos operating profit. Pepsi-Cola also offers a variety of non-carbonated beverages, including Aquafina bottled water, Fruitworks and All Sport. In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today Lipton is the biggest selling ready-to-drink tea brand in the United States. Pepsi-Cola also markets Frappuccino ready-to-drink coffee through a partnership with Starbucks.
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In 2001 SoBe became a part of Pepsi-Cola. SoBe manufactures and markets an innovative line of beverages including fruit blends, energy drinks, dairy-based drinks, exotic teas and other beverages with herbal ingredients. Outside the United States, Pepsi-Cola soft drink operations include the business of Seven-Up International. Pepsi-Cola beverages are available in about 160 countries and territories. Pepsi-Cola began selling its products internationally in 1934 with its operations in Canada. Operations grew rapidly beginning in the 1950s. In addition to brands marketed in the United States, major products include Mirinda and Pepsi Max. Pepsi-Cola North America includes the United States and Canada. Key international markets include Argentina, Brazil, China, India, Mexico, Philippines, Saudi Arabia, Spain, Thailand and the United Kingdom. PepsiCo Beverages International also produces, sells and distributes Gatorade sports drinks as well as Tropicana and other juices internationally. Pepsi-Cola provides advertising, marketing, sales and promotional support to Pepsi-Cola bottlers and food service customers. This includes some of the world's best-loved and most-recognized advertising. New advertising and exciting promotions keep Pepsi-Cola brands young. The company manufactures and sells soft drink concentrate to Pepsi-Cola bottlers. The company also provides fountain beverage products.
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JUICES
Gatorade & Tropicana Tropicana was founded in 1947 by Anthony Rossi as a Florida fruit packaging business. The company entered the concentrate orange juice business in 1949, registering Tropicana as a trademark. In 1954 Rossi pioneered a pasteurization process for orange juice. For the first time, consumers could enjoy the fresh taste of pure not-from-concentrate 100% Florida orange juice in a ready-to-serve package. The juice, Tropicana Pure Premium, became the companys flagship product. In 1957 the name of the company was changed to Tropicana Products, headquartered in Bradenton, Florida. The company went public in 1957, was purchased by Beatrice Foods Co. in 1978, acquired by Kohlberg Kravis & Roberts in 1986 and sold to The Seagram Company Ltd. in 1988. Seagram purchased the Dole global juice business in 1995. PepsiCo acquired Tropicana, including the Dole juice business, in August 1998.
Today the Tropicana brand is available in 63 countries. Principal brands in North America are Tropicana Pure Premium, Tropicana Seasons Best, Dole Juices and Tropicana Twister. Internationally, principal brands include Tropicana Pure Premium and Dole juices along with Frui'Vita, Loza and
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Copella. Tropicana Pure Premium is the third largest brand of all food products sold in grocery stores in the United States. Gatorade sports drinks were acquired by the Quaker Oats Company in 1983 and became a part of PepsiCo with the merger in 2001. Gatorade is the first isotonic sports drink. Created in 1965 by researchers at the University of Florida for the school's football team, "The Gators," Gatorade is now the world's leading sport's drink.
FOODS Quaker Foods

The Quaker Oats Company was formed in 1901 when several American pioneers in oat milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour and William Heston had established the Quaker Mill Company and registered the now famous trademark. Seymour wanted his product to be a symbol of honesty, integrity and strength. The figures of a man in Quaker clothes became the first registered trademark for breakfast cereal and remain the hallmark for Quaker Oats today.
In Cedar Rapids, Iowa, John Stuart and his son, Robert, and their partner, George Douglas, operated the largest cereal mill of the time. Ferdinand Schumacher, known as "The Oatmeal King," had founded German Mills American Oatmeal Company in 1856.
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Combining The Quaker Mill Company with the Stuart and Schumacher businesses brought together the top oats milling expertise in the country as The Quaker Oats Company. The first major acquisition of the company was Aunt Jemina Mills Company in 1926, which is today the leading manufacturer of pancake mixes and syrup. In 1986, The Quaker Oats Company acquired the Golden Grain Company, producers of Rice-A-Roni. PepsiCo merged with The Quaker Oats Company in 2001. Its products still have the eminence of wholesome, good-for-you food, as envisioned by the company over a century ago. SHAREHOLDERS PepsiCo, Inc, (symbol: PEP) shares are traded principally on the New York Stock exchange in United States. The Company is also listed on the Amsterdam, Chicago, Swiss and Tokyo stock exchanges. Pepsi Co has consistently paid cash dividends since the corporation was founded.
ADVERTISING AND MARKETING STRATEGIES

Global advertising strategy Pepsi modifies its domestic advertising to be utilized internationally, such as a multi-decade TV commercial starring pop star Britney Spears and footballer David Beckham that was tailored and placed
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into local ad showings. Its Sumo spot is already proving a hit with urban India. With two global advertising campaigns known for falling in the top 100 of the century, Pepsi has developed a core competency in its reputation as a solid brand image. Global marketing strategy Pepsis marketing is their international competitive advantage, so the company heavily relies on expanding and improving this for continued success. To sustain growth, they rely on their advertising firm of 42 years, BBDO Worldwide Advertising, to leverage its vast international business network to make tighter connections with consumers around the world. Pepsi requires a diversified capability scope from the firm. BBDO is needed to provide everything from the overall strategy development and coordination for the market in Paris, to adapting Pepsi campaigns for the very different segment in the Philippines. international perspective on execution. Also, the ad firm has creative resources in such countries as Spain, Brazil, Australia and France that offers an Along with Pepsi cola, 7UP and Mirinda are the key drivers in Pepsis international markets. Because of this, BBDO offers 7UP and Mirinda the same level of intensive creative support as brand Pepsi in the international markets. Recently Pepsi has been making international marketing headway over the worldwide web. Pepsi-Cola International partnered with Star Media Network, Inc. to co-brand a Latin American website called pidemasonline.com, which means ask for more in Spanish. The site was aimed at the Spanish and Portuguese-speaking audiences, which is Star Medias bread and butter. The Pepsi arrangement exemplifies how the company is utilizing joint marketing agreements with online media players in search of new niche markets.
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Costs of global communication

Pepsi has paid substantial costs associated with their global marketing strategies. The company spends about $1.7 billion dollars spent in advertising annually. In addition to the standard marketing costs, there are other costs of communicating globally. An example of this is in Pepsis famous global marketing mistake with their Come Alive with the Pepsi Generation campaign, which, when translated into Chinese, meant Pepsi Brings Your Ancestors Back from the Grave. This cost the company with lost sales and a damaged reputation. Communications has cost Pepsi a profit in some markets. The companys investment in China has failed to produce a profit so far because of the substantial spending on marketing. Since it started its first plant in Shenzhen in 1982, Pepsi has set up nearly 30 businesses there, with a total investment of $500 million. Without the marketing expenditures, the investment would have turned a profit. However, Pepsi believes in the potential of the Chinese market and the possibility of a profit for Pepsi in the near future.
Collaboration and Alliances

The spectrum of Pepsis collaboration strategy varies widely between its domestic and international divisions. As part of its collection of domestic
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collaboration strategy, Pepsi pursues alliances with distribution channels, sports sponsorships, celebrity partnership, and movie co-promotion. While Pepsi also pursues promotional alliances internationally, much of its strategy involves developing corporate partnerships with local companies. This distinction in the way Pepsi approaches corporate partnerships or alliances in its domestic versus its international strategy is notable and will be examined in more detail after we examine each of these markets separately.
International Collaboration Strategy

Internationally, Pepsi has historically on developing long-term
partnerships with strong local companies and leveraging their partners local knowledge and locally recognized brands. Pepsis method of operation With Their internationally starts with the development of smaller businesses to gain experience in the local market prior to making larger investments. operations through synergetic joint ventures with local partners. examples of this line of collaboration strategy. The partnership with Suntory in Japan started in 1998 and has a term of 30 years. Suntory was named Pepsis master franchisee and had the Suntory was also responsible for managing the existing Pepsi also transferred all responsibility of doing all marketing, production, and distribution of Pepsi soft drink in Japan. relationships with 9 existing franchise bottlers. successful development of these smaller businesses, Pepsi historically expanded partnerships with Sun Tory in Japan and Empresss Polar SA are prime
existing company owned bottlers to Suntory. Pepsi Japan would continue to provide Suntory with concentrate for the Pepsi, Diet Pepsi, 7Up, and Mt. Dew products. As former Pepsi CEO Craig Weatherup indicated, New relationship
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with Suntory fits perfectly with our strategy to align with strong local franchisees. The deal with Suntory also created the #2 beverage company in Japan, behind Coke, and would boost the current vending ability by 3 times. This local distribution capability offered by Suntory was key to providing a synergetic relationship, as Mr. Weatherup further indicated that, Suntorys proven ability to build powerhouse brands in Japan through dynamic marketing and ubiquitous distribution is the envy of the industry. Following the partnership with Suntory in Japan, Frito-Lay entered into a similar joint venture with Empresses Polar SA in Latin America at the end of 1998. The annual sales of the joint venture in Latin America were estimated at $3 Billion and would be operated by Frito Lay. Each company would own 50% of the joint venture, which encompassed 9 Latin American countries: Venezuela (Polars headquarters), Chile, Colombia, Ecuador, Guatemala, Honduras, Panama, Peru, and El Salvador, and Polar would transfer its popular local brands, Pepitos and Cheese Trix, to Frito-Lay. The synergy from the joint venture was seen as a way to improve operational economy of scale to lower cost and as the means to make and distribute their products more economically. Pepsis only notable global alliance that even resembled its entertainment partnership strategy domestically was the promotional alliance with Pokemon. The alliance with Pokemon was intended leverage the Pokemon product fad to drive product sales growth in the Mexican and Latin American markets in 2000. This alliance effort was intended to promote growth in the European, Middle Eastern, and African markets in 2001.
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Evidence of the success of these international collaborations is clearly shown by the growth of sales versus profit for both PepsiCo Beverages International and Frito-Lay International. Over the past three years, from 1999 to 2001, the net sales growth for PepsiCo Beverages International and Frito-Lay International during this period was 7.2% and 20%, respectively. However, the operating profit grew at a much faster rate. PepsiCo Beverage Internationals operating profit grew by $113 million or over 51%, and Frito-Lay Internationals operating profit grew by $172 million or 37.8%. While these gains cannot be fully attributed to their joint ventures, it is evident that at least some of this difference is the result of the synergy created from joint ventures internationally with strong local and regional companies.
Divestiture
Because we do not see the Quaker Oats division recently acquired completely fitting into PepsiCos core competencies and existing industries, we recommend that PepsiCo consider divesting the Quaker Oats division into a new company or sell to a competitor. It appears the major reason Quaker Oats was acquired was to obtain the Gatorade beverage brands that Quaker Oats owned. The Gatorade brand completely fits into the beverage industry in which PepsiCo competes and should allow PepsiCo to use its core competencies and industry knowledge to gain market share and earnings growth. Keeping the Quaker Oats division requires the PepsiCo management to learn an additional industry, while although in some ways similar to the snack food industry has major differences. The ready to eat meal industry in which Quaker competes is much more highly competitive and low profits should be expected from the division. We can see from PepsiCos past problems they have encountered in
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dealing with new industries that do not relate well with their existing industries. As shown by the Tricon divestiture PepsiCo could not adequately acquire the necessary knowledge in the fast food industry to have a competitive advantage. PepsiCo should remember this and should consider whether they can obtain a competitive advantage in the ready to eat market, which we do not believe they can and should then divest Quaker Oats.
Acquisition
Pepsi has had recent consistency in identifying successful merger and partnering targets. Much of this success derives from identifying and implementing proper synergy strategies and from utilizing and supplementing their branding core competency with their targeted partners. As a continuation of these successful strategies, we researched and analyzed several companies who presented probably alternatives for either acquisition or partnership. We researched both domestic and international opportunities. International opportunities were difficult to identify as overall analysis of each national market and its growth opportunities needed to be determined. We suggest detailed research of each country, its beverage and ready-to-eat snack consumption, existing competition, and future growth potential, prior to making entry decision for each specific country. With this condition in mind, we focused on analysis of domestic partners or acquisition targets. After an analysis of the current beverage portfolio, we felt that the most logical extension would be towards the premium soda niche of the market.
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After reviewing several alternatives, Jones Soda appears to offer the best synergy and growth opportunity. Jones Soda offers a unique portfolio of products, termed New Age Beverage, based on its lines of juice, soda, and energy drink products. What makes Jones Soda unique are the variety of soda flavors and wide range of labels. The labels are produced from a portfolio of unique user submitted photos and allow buyers to collect a wide variety of unique products. This variety of flavors and labels allows Jones Soda to command a price premium for its products. Jones Soda has a cult following based on its offering of a variety of labels. Collecting its unique bottles is a hobby for many loyal consumers. We believe that this unique blend of product offering will enhance the beverage product portfolio and that Pepsi can leverage the existing distribution system to bring the product to more markets. This New Age Beverage was determined to be a $10 billion market in 2000, with an average growth rate of 12.7% over the past three years. During 2000, Jones Sodas return on equity was 49.70 with total revenues of $19.1 million and profits of $1.5 million. In analyzing the Jones Sodas finances, we believe that acquisition can be made for about $15.2 million. At present growth rates and conservative profit margin, the net present value of Jones Sodas profit over the five years returns nearly $20 million. We believe that this profit margin can be greatly increased when the benefits of consolidation of distribution channels and marketing are realized. After the analysis of the current snack food portfolio we believe that a product line extension through acquisition would be appropriate. As stated in the 2001 annual report PepsiCo is trying to increase the product offerings of Frito-Lay and hope that the Quaker Oats acquisition will be able to help them. As we noted above, we do not necessarily agree with this assessment as the
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product lines and distribution channels are different. We recommend that PepsiCo extend the snack food portfolio into sugary type foods through the acquisition of Interstate Bakeries Corporation (IBC). IBC owns the Hostess, Wonder bread and Dolly Madison brand names. The Hostess and Dolly Madison products we believe completely fit into the Frito-Lay product line as being a snack food. We also believe that PepsiCo would be able to achieve synergies through its distribution channels as Hostess and Dolly Madison are sold in all the same locations that Frito-Lay products are sold. The sugar snack foods would appear to fit into a strategic diversification strategy through dominant logic as well. Frito-Lay should be able to use its existing practices and methods in the new product line. This acquisition would also fit PepsiCos core competencies. Hostess and Dolly Madison are significant brand names and PepsiCo should be able to leverage it competency in branding and marketing to increase those brands. Also the products will require significant new products to stay competitive. PepsiCo will be able to use it customer research to bring new products to market and obtain a competitive advantage through differentiation.
Diversification Strategies
PepsiCo diversification strategy uses most diversification strategy rationales. The major diversification rationales include dominant logic, synergies and core competencies. These rationales can be seen when reviewing the recent acquisition of the Quaker foods brands, which included Gatorade.
PepsiCo appears to use the dominant logic rationale, which is the belief that managers can share methods and practices across businesses and industries.
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Before the acquisition PepsiCo was in the two major industries as discussed above beverage and snack food. Each requires a specific knowledge, but is related in many ways such as low cost, high volume, sold at many of the same locations, and similar distribution chains. Quaker foods acquisition fits into this management needs almost exactly. The Gatorade products fit into PepsiCos beverage markets to fill in existing product gaps. Quaker foods are slightly different but in many ways the same. The distribution chain is the same as PepsiCo snack foods and product production is going to be similar. The significant difference is the slight change in product Quaker foods is not in the snack food market, but in a similar convenience food market, where PepsiCo should be able to leverage its core competencies. PepsiCo also uses the core competency rationale, which is the belief that companies have the ability to gain a competitive advantage from a process and can move that competency to the new business to gain an advantage there. The acquisition of Quaker and Gatorade also falls in with PepsiCos core competencies. Both have significant brand names that PepsiCo will be able to grow and use. In addition both require constant innovations to keep consumers happy and buying the products. PepsiCo is using the synergy rationale also. Synergy is the thought that a business is worth more than the sum of its parts. PepsiCo is in the nonalcoholic, non-diary beverage market. The acquisition of the Gatorade brand and products allows PepsiCo to fill in a gap in its product offerings. This will allow PepsiCo to take advantage of its supply chain and helps its vendor by having to deal with only company to get a wide range of product offerings.
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PepsiCo has tried many diversification strategies that have not worked in the past. The most telling example is its purchase and divesting of Tricon food chains. In the 80s PepsiCo had acquired these food chains, which include Taco Bell, KFC and Pizza Hut, in the belief that it could obtain synergies. Unfortunately because the industries are so different PepsiCo was having problems managing the chains correctly and had to divest them in 1997. These food chains did not match well with any of the diversification strategies expect for the core competency rationale, but PepsiCo was not able to leverage that into a competitive advantage.
PEPSICO SUPPLIER DIVERSITY COMMITMENT In our business, diversity and inclusion provide a competitive advantage that drives business results. Our brands appeal to an extraordinarily diverse array of customers and they are sold by an equally diverse group of retailers. To truly understand the needs of our consumers and customers -- and to succeed in the marketplace -- PepsiCo must reflect that diversity in our supplier base and in everything we do. An integral part of our mission is a commitment to purchase from a supplier base representative of our employees, consumers, retail customers and communities.
Developing partnerships with minority-owned and women-owned suppliers helps us build the world-class supplier base we need. It creates
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mutually beneficial relationships that expand PepsiCo's sphere of activity. It helps build community infrastructure by providing employment, training, role models, buying from other minority and women-owned business and supporting community organizations. Therefore, we seek opportunities to give qualified minority and women suppliers a chance to succeed. It benefits PepsiCo, our business objectives and our communities. In the century since James Henry King first gave his nod of approval, millions of people all over the world have enjoyed the great taste of Pepsi-Cola. Today, Pepsi-Cola is sold in more than 190 countries and accounts for about one-quarter of the world's soft drinks. More than 70 percent of our sales are from North America, where we enjoyed strong growth and increased volume more than six percent in 1998. Our well-known brands include Pepsi, Diet Pepsi, Pepsi One, Mountain Dew, Mug, All Sport, Lipton Brisk and Aquafina. In addition, salty snacks and juices are staples of our sister divisions, Frito-Lay and Tropicana. One of the biggest factors in the long-term success of a consumer products company is whether more people fall in love with your products each year. Pepsi-Cola strives to give people what they want, when and where they want it. To us, doing that very well is more important than anything else.
PepsiCo Inc. operates in many countries considered to have oppressive regimes. It has subsidiaries in Burma, Mexico, the Philippines and Turkey,
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bottling plants in China and during the years of economic sanctions against South Africa, continued a sales and licensing agreement with a South African company. PepsiCo owns Kentucky Fried Chicken, the world's largest quick-service chicken restaurant with outlets in 58 countries. KFC has been the focus of recent protests in India. PepsiCo is part of the food & drink industry. It is not only the specific practices of individual companies that cause problems. The attitudes created by the current system of exploitation give power and profits to the few, at the expense of people, animals and the environment. It is important to expose the unethical practices of specific companies as their behavior is often indicative of the entire system.
Employment/careers @ Pepsi co These are very exciting times for PepsiCo. With more than 140,000 employees around the world, were all part of a strong and successful business. And although we're in different divisions and countries, we share a common set of values and goals. We all know that success takes the work of talented and dedicated people who are committed to making an impact every day. Our ability to grow year after year is driven by our ability to attract, develop, and retain world-class people who will thrive in our environment. This is why we are committed to making PepsiCo the best consumer products company in the world in every aspect of our business. PepsiCo - Taste the Success! Symbolizes what we stand for as an organization. Our goal is to capture and convey the
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excitement of being part of a dynamic, results-oriented company, with powerful brands and world class people. A career in the PepsiCo organization is intended to be an accumulation of challenging experiences over the course of many years - with each experience contributing to the growth of the individual and organization. Our objective is to match great talent with important opportunities to build our business. When thinking about new opportunities and potential moves, we typically consider five factors. These are: proven results, leadership capability, and functional excellence, knowing the business cold and key experiences. These elements are evaluated against the current set of opportunities and our longerterm commitment to growth and development of our employees.
CORPORATE CITIZENSHIP PepsiCo believes that as a corporate citizen, it has a responsibility to contribute to the quality of life in our communities. This philosophy is put into action through support of social agencies, projects and programs. The scope of this support is extensive ranging from sponsorship of local programs and support of employee volunteer activities, to contributions of time, talent and funds to programs of national impact. Each division is responsible for its own giving program. Corporate giving is focused on giving where PepsiCo employees volunteer.
PEPSI CO. INDIA
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PepsiCo had its difficulties entering in India, with restrictions on using its brand name, export obligations are unwieldy, three way joint venture with Voltas and Punjab agro and above all, the image of being a rogue multinational, made it real tough to get going. It was the first-in syndrome, since the company had entered the country in 1989 much before liberalization when the anti multination company sentiment was strong. India has long been identified as one of the key emerging markets (along with China) for the $25 billion (revenues including $5 billion of Quaker oats) snack foods and beverages multinational. In 12 years since it entered the country, it has pumped investments of $ 5 million. Pepsi has yet to earn profits, but the money has been well spent. India is one of the few markets where brand Pepsi outsells brand Coke. Increasingly, of course, snack foods have become a dominant part of PepsiCo even though a couple of years ago it spun off its restaurant business (including Pizza Hut) into Tricon Global restaurants, a separate listed company, but beverage is the prestige business. That Coke is second to Pepsi in India is sweet victory in itself to put this right up there on PepsiCos radar screen.
THE COMPANYS OPERATION IN KARNATAKA

The Bangalore Unit caters to the entire state of Karnataka except for certain areas in North West Karnataka that is catered by the Franchise M/s. Goa bottling Company. Bangalore unit has 2 manufacturing facilities, one at Kumbalgodu and the other at Nelamangla. The Kumbalgodu plant has the capacity to0 produce 300 bottles per minute (300 Bpm) of carbonated soft
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drinks. Pepsi acquired this plant from the bottler in 1994. This plant has the credit of bottling the first bottles of Pepsi in the country. This plant has Carbonated soft drink (CSD) line of 600 bottles per minute (600 Bpm) capacity, a juice line of 200 bottles per minute (200 Bpm), pet line of (200 Bpm). A blow molding machine supports the pet line with the capacity of (100 Bpm). The pet and glass line can produce different pack sizes. The Company has set up an excellent distribution network to cater to the market needs the distribution is broadly classified as direct and indirect distribution. To support the direct distribution network in the city of Bangalore, there are two ware houses which are situated in Koramangala catering to south Bangalore and the other at Yeshwantpur catering to north Bangalore, they have a fleet of trucks to assist the distribution system. The direct distribution is channeled through the Companys own distribution in up the country markets. The Karnataka operation is part of the South market unit having facilities at Chennai & Madurai. The Territory Development Manager (TDM) is in charge of the warehouses. They are assisted by the area development manager (ADM). The TDM and the ADM are responsible for the activities of distribution, development, promotion selling of targets, etc., under the development managers the Customer Executives (CE) who are responsible for volume development and customer service delivery for his set of accounts couch and train his Route Agent (RA) towards achieving excellence in the market place. ORGANISATION CHART OF NELAMANGALA PLANT
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PLANT MANAGER VP OPERATIONS
PLANT SECRETARY (1)
HRM (1)
Production Manager (1)
FM (1)
QA Manager (1) Executives (9) Team Members Purchase Exec (1)
TDM (3) ADM (3)
Shipping Coordin-ator (1) Executives (4)
Executives Execu Coortives dinator (6) (1) Reception, Security & Admin Team Mem- Stores -bers Exec (2)
Customer Executives Team Members
Finance Executives
SALES AND DISTRIBUTION SYSTEM

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It is a fact that in Bangalore the Distribution reach of Pepsi is very strong. The Basic ideology of the company is to provide Pepsi products to the customer within a hands reach and hence it is very important to have a very strong network of outlets throughout the country. All possible outlet types that an end customer is likely to frequent are covered under the distribution system of Pepsi. Following are the factors that are adhered to by Pepsi, which have led to such a strong distribution network. 1. Coverage: Carbonated soft drinks are an impulse buying product very rarely does it happen that the end customer goes out with a fixed idea in mind, that he/ she is going to buy a Pepsi or for that matter any other carbonated soft drink. The various types of outlets are called as Channels. There are eight main channels in Pepsi network; these are further classified into 65 subchannels. There are three main types of outlets, viz., exclusive outlet of Pepsi, exclusive outlet of Coca-Cola and mixed outlet. Exclusive outlet is preferred to a mixed outlet as it guarantees bulk sales but creating an exclusive outlet is tough. 2. Regularity of coverage: Once an outlet is activated, it needs to be supplied with fresh stock regularly. This particular aspect carries a lot of importance when the competition is very closely following & is equally strong. Regularity of coverage also leads to the development of cordial relationship between the
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company and the outlet. Hence depending upon the consumption pattern and frequency, the number of outlets and the length of route, replenishment of the outlets with new stock are carried out daily or twice a week. 3. Key performance indication: Once a channel network is in place the next important factor is the strong execution of performance indicators, following are the parameters that lead to strong performance indicators. i. Full range selling: Availability of all parts or full range ensures that needs of all the outlets are catered to non-availability results in not only in lost sales but also in bad reputation for the company as well as the dealers. The company sells many brands of which Pepsi is the flagship brand. ii. Cooler charging: Depending on the sales of particular outlet, Pepsi provides it with cooling equipment of a particular size. This equipment is the property of Pepsi Cola India marketing Company and legal agreement is signed between the company and the outlet owner. As per rule the retailer is supposed to keep at least 40% of stock in the cooler, the remaining stock is considered as standby. Warm stock with which the cooler is replenished as and when required. There is a particular method of charging that ensures that all brands are chilled.
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After providing the outlet with the equipment, it is the duty of territory sales in charge or the route agent to educate the retailers on how the cooler has to be charged with brands. This is done by the people from the company and then gradually makes the retailer do the same in their presence. iii. Pepsi fridge purity: Pepsi believes that the drink that is cold is sold. Hence the cooling equipment provided by the company are pure i.e., only brands of Pepsi company have to be kept in it. iv. Display: Since soft drinks come under the impulsive buying category, a strong recall and presence of the brands at the outlet carries utmost weight age besides having a visi-cooler through which brands are visible, there are other factors, which affect the display. These include the visi-top, the display shelves in the outlet. Various stands provided by the company for display along with the stickers and danglers. v. Crate stacking: The warm stacks that are placed in crate should be kept in such a place where it is visible to the customers. vi. Glass Deposit: When a retailer wishes to purchase the brands of the company he has to pay a certain amount of money as deposit. However this is not applicable in
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case of plastic bottles. It is refunded to the retailers when the crate and bottles are returned back. vii. Scheme executives: A tough form of competition exists between the two rival companies Pepsi and Coke. Apart from having a strong distribution network that is backed by strong media presence, it is necessary to maintain good relations with the retailers and distributors. This can be obtained by running different schemes at different time intervals. This could be setting of specific targets and rewards to those who achieve the targets. Another form of scheme could be providing free liquid on purchase of predetermined quantity of stocks. However this is possible only if the route agents keep the retailers informed about the various schemes and motivate them to participate.
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PRODUCT PROFILE
Pepsi has unlimited brands, its list is extending frequently, among its brands that are wholly owned by Pepsi are:
Frito-Lay Brands
Lay's potato chips Lay's kettle cooked potato chips Wavy Lay's potato chips Baked Lay's potato crisps Maui Style potato chips Ruffles potato chips Baked Ruffles potato chips Ruffles Flavor Rush potato chips Doritos tortilla chips 3D's snacks Tostitos tortilla chips Baked Tostitos tortilla chips Santitas tortilla chips Fritos corn chips Gamesa cookies Cheetos cheese flavored snacks Lay's Bistro Gourmet potato chips Funyuns onion flavored rings
Sun chips multigrain snacks

Chester's popcorn Grandma's cookies Munchos potato crisps
Smart food popcorn

Frito-Lay nuts Boca bits wheat snacks Crujitos corn snacks Fandangos corn snacks Niknaks cheese sticks Twisties cheese snacks Walkers potato crisps Walkers French Fries potato sticks
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Pepsi-Cola Brands
Pepsi-Cola Caffeine Free Pepsi Diet Pepsi Caffeine Free Diet Pepsi Pepsi ONE Wild Cherry Pepsi Pepsi Twist Pepsi Edge Mountain Dew Diet Mountain Dew Mountain Dew Code Red Mug Sierra Mist Teem Slice Lipton Brisk (Partnership) Lipton Iced Tea (Partnership) Dole juice drinks
Fruit Works juice drinks

Aquafina purified drinking water Frappuccino coffee beverages (Partnership)
SoBe juice drinks and teas

Mirinda 7UP Pepsi Max Pepsi Limon Pepsi Light
Gatorade Brands
Gatorade thirst quencher Gatorade Frost thirst quencher Gatorade Fierce thirst quencher Gatorade Ice thirst quencher Gatorade energy bar Propel fitness water
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Tropicana Brands
Tropicana Pure Premium Tropicana Season's Best juices Tropicana Twister juice drinks Dole juices Loza juices and nectars Tropicana Smoothies Tropicana Pure Tropics juices Frui'Vita juices Alvalle Gazpacho Copella juices
Quaker Brands
Quaker Oatmeal Quaker instant oatmeal Cap'n Crunch cereal Life cereal Quaker Toasted Oatmeal cereal Quaker Squares cereal Quisp cereal King Vitamin cereal Quaker Chewy granola bars Quaker Fruit & Oatmeal bars Quaker grits Quaker Snack-a-Jacks rice cakes Quaker Bagged cereals Quaker Oh's! Cereal Mother's cereal Quaker rice cakes Quaker Quakes rice snacks Toddy chocolate powder Coqueiro canned fish Sugar Puffs cereal Harvest Crunch cereal Cruesli cereal
Quaker Oats Simple hot cereal

Quaker Dipps granola bars
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ANALYSIS AND INTERPRETATION

TABLE NO: 1
TABLE SHOWING CLASSIFICATION OF RESPONDENTS ON THE BASIS OF AGE

Age Group <Than 17 years 17-25 years 25-40 years >Than 40 years Total Number of Respondents 5 56 20 19 100 Percentage 5% 56% 20% 19% 100%
From the above table it is clear that maximum number of respondents are from age group 17 years to25 years with 56% followed by age groups 25 years to 40 years with 20% then >than 40 years with 19% and <than 17 years with 5%
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CHART SHOWING CLASSIFICATION OF RESPONDENTS ON THE BASIS OF AGE
19%
5%
20%
56%
<17
17-25
25-40
>40
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TABLE NO: 2 TABLE SHOWING CLASSIFICATION OF RESPONDENTS ON THE BASIS OF GENDER

Gender Male Female Total Number of Respondents 65 35 100 Percentage of Respondents 65% 35% 100%
From the above table it is clear that there were 65% male respondents and 35% female respondents. By this we can say that there were more male over female respondents.
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CHART SHOWING CLASSIFICATION OF RESPONDENTS ON THE BASIS OF GENDER
35%
65%
male
female
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TABLE NO: 3 TABLE SHOWING CLASSIFICATION OF RESPONDENTS ON THE BASIS OF OCCUPATION

Occupation Business man Professional Employee Student House Wife Others Total Number of Respondents 15 19 10 45 6 5 100 Percentage of Respondents 15% 19% 10% 45% 6% 5% 100%
The above table shows that maximum number of respondents are Students with 45% followed by Professionals with 19%, Business people 15%, Employees with 10%, House wives with 6% and Others 5%. This shows that majority of people interested in Soft Drink consumption are students.
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CHART SHOWING CLASSIFICATION OF RESPONDENTS ON THE BASIS OF OCCUPATION
6%
5%
15%
19%
45% 10%
Businessman Student
Employee House wives
Professional Others
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TABLE NO: 4 TABLE SHOWING CLASSIFICATION OF RESPONDENTS ON THE BASIS ANNUAL INCOME OF FAMILY
Family Income <Than 50,000 50,000-2, 00,000 2, 00,000-5, 00,000 >Than 5, 00,000 Total Number of Respondents 35 38 18 9 100 Percentage of Respondents 35% 38% 18% 9% 100%
From the above table it is clear that maximum respondents are in the income level of 50,000-2, 00,000 with 38% followed by income level <Than 50,000 with 35% then 2, 00,000-5, 00,000 with 18% and > than 5, 00,000 with 9%.
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CH ART SH O WING CLASSIF ICATIO N O F RESPO NDENTS O N TH E BASIS O F ANNUAL INCO M E O F FAM ILY
9% 18% 35%
38%
<50,000 50,000-2,00,000 2,00,000-5,00,000 >Than 5,00,000
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TABLE NO: 5 TABLE SHOWING CLASSIFICATION OF RESPONDENTS ON THE BASIS OF PERCENTAGE OF SOFTDRINK CONSUMERS
Scale Yes No Total Number of Respondents 97 3 100 Percentage 97% 3% 100%
From the above table it is clear that maximum number of respondents consume soft drinks with 97% and 3% of respondents do not consume soft drinks.
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CHART SHOWING CLASSIFICATION OF RESPONDENTS ON THE BASIS OF PERCENTAGE OF SOFT DRINK CONSUMERS
3%
97%
Yes
No
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TABLE NO: 6 TABLE SHOWING CLASSIFICATION OF RESPONDENTS ON THE BASIS OF REASON FOR PURCHASING A SOFT DRINK
Category Necessity Thirst Quenching Time pass Others Total Number of Respondents 32 43 18 7 100 Percentage 32% 43% 18% 7% 100%
From the above table it is clear that maximum number of respondents purchase a soft drink to Quench their thirst with 43% followed by Necessity 32%, Time pass 18%, and Others 7%.
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CHART SHOWING CLASSIFICATION BASED ON REASON FOR PURCHASING A SOFT DRINK
7% 18% 32%
43%
NECESSITY TIME PASS
THIRST QUENCHING OTHERS
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TABLE NO: 7 TABLE SHOWING CLASSIFICATION BASED ON AWARENESS OF RESPONDENTS TOWARDS VARIOUS BRANDS OF COLA DRINKS
Brands Coca Cola Pepsi Thums Up RC Cola
Number of Respondents 100 100 100 4
Percentage of Respondents 100% 100% 100% 4%
The above table indicates that Majority of respondents are aware of the three reputed Cola brands with 100% for Pepsi, Coca Cola and Thums Up followed by RC Cola with 4% which has been recently launched in Delhi a global Competitor for Pepsi and Coke.
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CHART SHOWING CLASSIFICATION BASED ON AWARENESS OF RESPONDENTS TOWARDS DIFFERENT BRANDS OF COLA DRINKS
120 100 100 100 100
80
PERCENTAGE
60
40
20 4 0
Pepsi
Coca-Cola
Thums Up BRANDS
RC Cola
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TABLE NO: 8 TABLE SHOWING CLASSIFICATION BASED ON MEDIA INFLUENCING RESPONDENTS AWARENES TOWARDS THE BRAND PEPSI
Media Television Posters Newspapers / Magazines Friends & Relatives Others Number of Respondents 96 28 48 46 15 Percentage 96% 28% 48% 46% 15%
From the above table it is observed that maximum number of respondents awareness is influenced by the media Television with 96% followed by Newspapers and Magazines with 48%, Friends & relatives with 46%, Posters with 28% and very few are influenced by others with 15%.
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CHART SHOWING CLASSIFICATION BASED ON MEDIA INFLUENCING RESPONDENTS AWARENESS TOWARDS THE BRAND PEPSI
120 96 100 80 60 40 20 0
48 28 30
46
15
st er s
pe rs
ng s
Te le vis io
/N ew sp a
Ho a
zin es
M ag a
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Fr ie
nd s
&
Re la tiv e
Po
O th er s
rd i
TABLE NO: 9 TABLE SHOWING PERCENTAGE OF RESPONDENTS LOYAL TOWARDS A PARTICULAR BRAND
From the above table it is clear that majority of respondents are not particular about any brand with 52% and 48% of respondents are loyal towards a brand.
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CHART SHOWING THE PERCENTAGE OF RESPONDENTS LOYAL TOWARDS A PARTICULAR BRAND
48%
52%
YES
NO
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TABLE NO: 10 TABLE SHOWING INTENTION OF RESPONDENTS TO CHOOSE FROM A SUBSTITUTE BRAND WHEN THEIR PREFERED BRAND IS UNAVAILABLE
From the above table it is clear that majority of respondents intend to choose from a substitute brand when their preferred brand is unavailable with 67% and 33% of respondents are loyal towards a brand and do not prefer substitutes.
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CHART SHOWING THE INTENTION OF RESPONDENTS TO CHOOSE FROM A SUBSTITUTE BRAND WHEN THEIR PREFERED BRAND IS UNAVAILABLE
33%
67%
YES
NO
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TABLE NO: 11 TABLE SHOWING PERCENTAGE OF RESPONDENTS WHO HAVE SEEN THE TELEVISION ADVERTISEMENT OF THE COLA DRINK PEPSI
From the above table it is clear that majority of respondents have seen the television Advertisement of the cola drink Pepsi with 96% and 4% of respondents havent seen the AD on Television.
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CHART SHOWING THE PERCENTAGE OF RESPONDENTS WHO HAVE SEEN TELEVISION ADVERTISEMENT OF THE COLA DRINK PEPSI
4%
96%
Yes
No
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TABLE NO: 12 TABLE SHOWING CLASSIFICATION OF RESPONDENTS ON THE BASIS OF THEIR VIEWS ON THE TELEVISION ADVERTISEMENT OF THE PEPSI COLA
Category Excellent Persuasive Informative No Impact Total Number of Respondents 42 26 21 11 100 Percentage 42% 26% 21% 11% 100%
From the above table it is clear that as per the respondents feed back majority of respondents perceive the television Advertisement of the cola drink Pepsi is Excellent with 42% followed by the perception of being Persuasive with 26%, Informative with 21% and 11% of respondents feel that the TV advertisement does not have any Impact .
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CHART SHOWING CLASSIFICATION ON THE BASIS OF RESPONDENTS VIEWS ON TELEVISION AD OF PEPSICOLA
11% 21% 42%
26%
EXCELLENT INFORMATIVE
PERSUASIVE NO IMPACT
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TABLE NO: 13 TABLE SHOWING CLASSIFICATION OF RESPONDENTS ON THE BASIS OF RANKS GIVEN TO THE COLA BRANDS AS PER THEIR PREFERENCE
Rank 1 2 3 Total
Pepsi 45 40 15 100
Coca Cola 15 20 65 100
Thums Up 40 40 20 100
Total 100 100 100 300
The above table indicates that maximum number of respondents prefer the cola drink Pepsi as Rank 1 is given by 45% of respondents and 40% have given Rank 2 while just 15% have given Rank 3 that means that very few have given least priority to Pepsi when compared to other Cola brands. Thums Up is the cola drink which has got second highest priority given as 40% of respondents have given Rank 1 and 40% of respondents gave Rank 2 which is equivalent to the number of respondents giving Rank 2 to Pepsi
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followed by 20% who have Ranked 3rd there fore by this we can infer that the two brands have cut throat Competition. And the least preferred cola brand in Coca Cola with 15%, 20%, and 65% of respondents who have Ranked 1st, 2nd and 3rd respectively.
CHART SHOWING CLASSIFICATION BASED ON RESPONDENTS RANKING THE BRANDS AS PER THEIR PREFERENCE
70 60
PERCENTAGE
65
50 40 30 20 10 0
45 40 40 40
20 15 15
20
PEPSI RANK 1
COCA COLA
BRANDS
THUMS UP
RANK 2
RANK 3
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TABLE NO: 14 TABLE SHOWING PERCENTAGE OF RESPONDENTS WHO CONSUME SOFT DRINKS MADE BY PEPSI CO
From the above table it is clear that majority of respondents consume soft drinks made by Pepsi with 94% and 6% of respondents do not consume any product of Pepsi. With this information we can infer that even those respondents who do not consume the cola brand of Pepsi consume the other soft drink manufactured by Pepsi Co.
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CHART SHOWING PERCENTAGE OF RESPONDENTS WHO CONSUME SOFT DRINKS MADE BY PEPSI CO
6%
94%
YES
NO
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TABLE NO: 15 TABLE SHOWING CLASSIFICATION BASED ON THE RESPONDENTS RATING FOR THE ATTRIBUTES OF SOFT DRINKS OF PEPSI COMPANY
Attributes Quality Brand Image Variety Reputation Packing Taste Availability
Excellent 47 75 40 81 23 35 50
Good 36 20 39 11 47 45 38
Average 17 5 21 8 30 20 12
From the above table it is clear that Reputation Brand Image and Availability are excellent with a maximum 81%, 75% & 50% respectively. Packing, Taste and Variety are good with a maximum 47%, 45% and 39%
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respectively. Packing Variety, Taste and Quality are Average with maximum of 30%, 21%, 20% & 17% respectively.
CHART SHOWING CLASSIFICATION BASED ON THE RESPONDENTS RATING FOR THE ATTRIBUTES OF SOFT DRINKS OF PEPSI COMPANY
AG E
PA CK ING
TA STE
90 80 70 60 50 40 30 20 10 0
75
81
47 36
17
47 40 39 20
5 21 30
45 35
20
50 38
23 11 8
12
IT Y
RIE TY
TIO N
QU AL
BRA ND IM
REP UTA
VA
Excellent
Good
Average
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AV AIL A
BIL IT
TABLE NO: 16 TABLE SHOWING CLASSIFICATION OF RESPONDENTS ON THE BASIS OF THEIR OPINION ABOUT PRICE OF PEPSI
Category Expensive Reasonable Low Total Number of Respondents 18 78 4 100 Percentage 18% 78% 4% 100%
From the above table it is clear that as per the respondents feed back majority of respondents perceive that the price of Pepsi is Reasonable with 78% followed by the perception of being Expensive with 18% and 4% of respondents feel that the price of Pepsi is low.
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CHART SHOWING PERCENTAGE OF RESPONDENTS OPINION ABOUT PRICE OF PEPSI
4%
18%
78%
EXPENSIVE
REASONABLE
LOW
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TABLE NO: 17 TABLE SHOWING THE PREFERENCE OF PLACE BY THE RESPONDENTS FOR THE PURCHASE OF PEPSI
Place Super Market Juice Centre Provision /Departmental Store Pan Shop Canteen/Restaurants Others Number of Respondents 61 43 74 51 84 26 Percentage 61% 43% 74% 51% 84% 26%
From the above table it is clear that Canteen/Restaurants is the most preferred place by the respondents for the purchase and consumption of Pepsi or its brands of soft drinks with a maximum of 84% followed by Provision store, Super market, Pan shop and Juice Centre with 74%, 61%, 51% and 43% respectively. And the least preferred places are others like Coffee shop, Cyber
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Centre, Ice Cream Parlors etc. There fore it can be rightly inferred that Restaurants/Canteens Provision stores are the Major Middle men/Customers for soft drinks of Pepsi.
CHART SHOWING THE PREFERENCE OF PLACE BY THE RESPONDENTS FOR THE PURCHASE OF PEPSI
90 80 70 60 50 40 30 20 10 0
61
84 74
PERCENTAGE
51 43
26
SUPER MARKET PAN SHOP
JUICE CENTRE CANTEEN/RESTAURANTS
PROVISION STORE OTHERS
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TABLE NO: 18 TABLE SHOWING RESPONDENTS PERSUADING FACTOR FOR THE PURCHASE DECISION OF SOFT DRINKS MADE BY PEPSICO
Category Advertisement Friends & Relatives Role Models Others Total Number of Respondents 30 48 8 14 100 Percentage 30% 48% 8% 14% 100%
From the above table it is clear that as per the respondents feed back majority of respondents are persuaded for the purchase decision of soft drinks manufactured by Pepsi through their Friends and Relatives with 48% followed
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by Advertisement with 30%, others with 14% and the least important factor considered purchase decision are the role models with 8%.
CHART SHOWING RESPONDENTS PERSUADING FACTOR FOR THE PURCHASE DECISION OF SOFT DRINKS MADE BY PEPSICO
14% 30% 8%
48%
ADVERTISEMENT ROLE MODELS
FRIENDS & RELATIVES OTHERS
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TABLE NO: 19 TABLE SHOWING RANKS GIVEN TO THE CELEBRITY ENDORSEMENTS AS PER THE RESPONDENTS PREFERENCE
Rank Shahrukh Shahrukh, Amitab Amitab Sachin
& Kareena Kareena & Adnan Bachan & Sachin & Team Prieti & Chimp Saif, Fardeen,
Total
Prieti & [Jaggu] Kareena
1 2 3 4 5 6 7 Total
30 21 15 10 12 6 6 100
6 15 29 17 10 15 8 100
5 7 11 19 21 18 19 100
5 18 8 13 16 11 23 100
12 10 16 11 20 18 13 100
22 17 11 15 10 16 9 100
20 12 10 15 11 10 22 100
100 100 100 100 100 100 100 700
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The above table indicates that maximum number of respondents prefer Shahrukh & Kareena as Rank 1&2 is 30% & 21% respectively followed by Prieti & Chimpanzee with 22% & 17% respectively and Saif, Fardeen, Prieti & Kareena with 20% & 12% respectively. When compared with the remaining Sachin and team get greater priority as it gets Rank 1 & Rank 2 with 12% & 10% respectively.
CHART SHOWING CLASSIFICATION OF RESPONDENTS ON THE BASIS OF RANKS GIVEN TO CELEBTITY ENDOREMENTS AS PER THEIR PREFERENCE
100% 90% 80%
PERCENTAGE
6 6 12 10 15 8 19 15 10 17 21 21 29 16 11 19 11 7 5
HI N N HA BA C SA C
23
13 18
9 22 16 10 10 11 15 10
70% 60% 50% 40% 30% 20% 10% 0%

KA RE EN A
18
17 20
15 11 17
13 8 16 10 12
M
12 20
30
15 6
M I SA
18 5
TE A
22
SH A
CELEBRITIES RANK 1 RANK 2 RANK 3 RANK 4 RANK5 RANK 6 RANK 7
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SA
& C HI IF M ,F PA A RD NZ EE EE N, PR EE TI & KA RE EN A
A DN A N
&
IT A
IT A
RU KH
A M
RE EN A
A M
SA
&
HI N PR EE T IZ
&
&
SH A
RU KH
KA
IN TA
TABLE NO: 20 TABLE SHOWING CLASSIFICATION OF RESPONDENTS BASED ON THEIR AWARENESS TOWARDS VARIOUS PACKS OF PEPSI
Packs 330 ml Can 300 ml Bottle 200 ml Bottle 500 ml 1 Litre Bottle 1.5 Litre Pet 2 Litre Pet Number of Respondents 86 100 100 100 100 88 100 Percentage of Respondents 86% 100% 100% 100% 100% 88% 100%
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The above table indicates that Majority of respondents are aware of 300 ml Bottle, 200 ml Bottle, 500 ml Bottle, 1 Litre Bottle and 2 Litre Pet with 100% each, followed by 1.5 Litre with 88%, and 330 ml Can with 86%. With this we can infer that every respondent is aware of Pepsi and its various packs except for a few who are not aware of 1.5 Litre and 330 ml can.
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CHART SHOWING CLASSIFICATION OF RESPONDENTS BASED ON THEIR AWARENESS TOWARDS VARIOUS PACKS OF PEPSI
105% 100%
PERCENTAGE
100%
100%
100%
100%
100%
95% 90%
86% 88%
85% 80% 75%

m lP et t t le an tle t le pe m lC ot 0m lB ot B ot e m lB Li tr Li tr 2 e pe t
Li tr
33
50
30
20
QUANTITY/PACKS
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1.
FINDINGS
From the Analysis of the questionnaire administered to 100 respondents has disclosed certain important findings. Based on the findings appropriate recommendations and conclusions are made. From the study it is observed that: 1. Majority of student respondents of the age group 17-25 consume soft drinks than any other age group. 2. Respondents of all income groups can afford to consume soft drinks of PepsiCo as 35 respondents with an annual income less than Rs. 50,000 Consume soft drinks. 3. The main reason behind soft drink consumption by majority of respondents is the necessity to quench thirst than any other reason. 4. 4% of respondents are aware of newly launched cola brand RC Cola through television advertisements. This drink has launched recently in Delhi. And 100% of respondents are aware of the cola brands Pepsi, Thums Up and Coca-Cola. 5. Maximum numbers of respondents have seen the television
Advertisement of Pepsi Cola and it is the media which influences their purchase than any other media.
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6. The brand loyalty towards any sot drink brand is less and there are many brand switchers i.e. 52%. Therefore, PepsiCo should make sure that all the consumers of Pepsi are loyal towards Pepsi and ensure that even the brand switchers are converted to loyal consumers of PepsiCo. 7. The study reveals that maximum number of respondents have ranked Cola drink of Pepsi as number 1 Cola brand with 45% respondents when compared to other cola brands Coca-Cola and Thums Up. 8. Only 3 respondents among soft drink consumers do not consume do not consume soft drinks made by Pepsi. As 94% of respondents consume Pepsi among 97% of soft drink consumers. Therefore, 3% of respondents are strictly brand loyal to Coca-Cola and the rest are brand switchers and loyal Consumers of PepsiCo. 9. A maximum number of respondents ranked reputation of the company as excellent with 81% respondents and least have ranked packing of Pepsi as excellent with 23%, and they have ranked packing as average with 30%. 10. Maximum percentage (78%) of respondents opinion about price of soft drinks of Pepsi is reasonable. 11.Friends and relatives of respondents play a major role in persuading the purchase of a soft drink. There fore, they should be treated as opinion leaders who can bring in more sales to Pepsi by their word of mouth.
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A.I.M.S Bangalore
12. The study reveals that 84% of respondents prefer to purchase or consume soft drinks at Restaurants/ Canteens. 13.A Maximum number of respondents prefer Shahrukh and Kareena for celebrity endorsements in Advertisements. Therefore, Advertisements of these Celebrities must be repeated frequently. 14.Every respondent, even among the non consumers of any soft drink are aware of the various packs and volumes of Pepsi except for 12% who are unaware of 1.5 Litre Pet and 14% unaware of 330 ml Can.
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RECOMMENDATIONS
After analyzing the response and opinions received from the consumers of PepsiCo with great care the following suggestions have been drawn. Implementation of the same may lead to greater satisfaction of the needs of consumers as well as a large market share and more profitable results to the manufacturer. There fore the following suggestions are made which will plug the loop holes in its marketing strategy and will increase the sales of its soft drink products. 1. A large section of consumers are not strictly brand loyal. They can be influenced by the shopkeepers and salesmen with good promotional tools adopted by other soft drink Companies. For this reason the company should make soft drinks of PepsiCo available at each and every shop or outlet and increase retailers profit margin so that they can concentrate on sale of Pepsi brands more than the rival brands. 2. The Company should concentrate more on R&D. It has to be considered as one of the top agendas to overcome the threat of competitors within and even outside India so that more variety of soft drinks with superior quality can be manufactured and brought into the market at regular intervals. 3. PepsiCo in India has a different taste and is not as per international standards. It is recommended to dilute the Sugar concentration and increase the concentration of Cola to make it stronger in its taste.
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4. Change the style of bottling to make its packing unique from that of its competitors and try repositioning the cola brand Pepsi. 5. Implement the system of vending machines in India to all the soft drink brands of PepsiCo as it is implemented in abroad which might boost up sales. 6. Bring in more varieties in aerated and non aerated soft drinks. 7. Trade promotions should be practiced to boost the sales of the company. It is recommended to introduce attractive discount schemes to tap the corporate segment and the retailers. 8. Regular meetings should be held with the dealers/ retailers so that the company gets first hand information as the dealers are those who are in contact with the final consumers more than the distributors. The company should send a representative at least once a month to the retailers shops or outlets to enquire about the problems faced by them from the Company or agency and more allowance should be given for shelf space.
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CONCLUSIONS
Making more profit through Customer Oriented Marketing is the motto of every business organization. In order to achieve the said objective, tailor made products, customer orientation, quality, reduction in cost and building the brand equity are vital elements. Though the study is not exhaustive, the data obtained is enough to understand the attitude of Consumers towards the soft drink brands of Pepsi. The consumers of soft drinks of Pepsi are highly satisfied with its Reputation, brand image, availability and quality as they have rated. It is also affordable by all segments with different incomes. No doubt that PepsiCo is a market leader in all its Business units at the same time it is ranked as number one brand in India. The brand loyalty of the Company brands are maintained and trying to increase more loyal consumers for all the products of PepsiCo by using promotional tools such as Toss ka Boss for Pepsi Cola, T-shirts of Spiderman for Mirinda and Pokemon for Frito Lay products. It is attracting consumers and prospecting in Business. But in a competitive field one should not satisfy with ones present performance. In order to maintain higher competitive efficiency regular market research will help an organization to ascertain the consumer preference and acting according to them for creating and maintaining brand image in the minds of people.
A.I.M.S Bangalore
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A.I.M.S Bangalore
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Evaluation of Marketing Mix Strategy and Consumer Preference Towards Soft Drink Products of PepsiCo

INTRODUCTION TO SOFT DRINK INDUSTRY ORIGIN AND GROWTH

INDIAN SOFT DRINK INDUSTRY

INTRODUCTION TO MARKETING MARKET

The Four Ps/ Components of Marketing Mix

Place Channels Coverage Assortments Locations Inventory Transport

Price List price Discounts Allowances Payment Period Credit Terms

1) Communication channels deliver and receive messages from target

2) The marketer uses Distribution channels to display, sell or deliver the

MAJOR FACTORS INFLUENCING CONSUMER BEHAVIOUR

ii. Sub culture:

Religion groups like Hindu, Christian, and Muslim etc.

BUYING DECISION PROCESS

making the final decision.

Decider: He is the person who ultimately determines the buying decision.

Buyer: He is the person who makes the actual purchase.

User: He is the person who consumes or uses the product or service.

TYPES OF BUYING BEHAVIOR

2. Dissonance reducing buying behavior:

3. Habitual buying behavior:

THE ASPECTS OF PERCEPTION

DESIGN OF THE STUDY TITLE OF THE STUDY

STATEMENT OF THE PROBLEM

NEED FOR THE STUDY

OBJECTIVES OF THE STUDY 1)

effect the selection of soft Drinks

SCOPE FOR THE STUDY

METHODOLOGY OF THE STUDY

Tools for data collection:

Business Publications: Magazines, Journals, Periodicals, Business

PROFILE OF THE COMPANY

PROMOTERS BACK GROUND

Research and Development:

FOODS Quaker Foods

ADVERTISING AND MARKETING STRATEGIES

Costs of global communication

Collaboration and Alliances

International Collaboration Strategy

PEPSI CO. INDIA

THE COMPANYS OPERATION IN KARNATAKA

PLANT MANAGER VP OPERATIONS

PLANT SECRETARY (1)

Production Manager (1)

QA Manager (1) Executives (9) Team Members Purchase Exec (1)

TDM (3) ADM (3)

Shipping Coordin-ator (1) Executives (4)

Customer Executives Team Members

SALES AND DISTRIBUTION SYSTEM

Sun chips multigrain snacks

Smart food popcorn

Fruit Works juice drinks

SoBe juice drinks and teas

Quaker Oats Simple hot cereal

ANALYSIS AND INTERPRETATION

TABLE SHOWING CLASSIFICATION OF RESPONDENTS ON THE BASIS OF AGE

CHART SHOWING CLASSIFICATION OF RESPONDENTS ON THE BASIS OF AGE

TABLE NO: 2 TABLE SHOWING CLASSIFICATION OF RESPONDENTS ON THE BASIS OF GENDER

CHART SHOWING CLASSIFICATION OF RESPONDENTS ON THE BASIS OF GENDER

TABLE NO: 3 TABLE SHOWING CLASSIFICATION OF RESPONDENTS ON THE BASIS OF OCCUPATION

CHART SHOWING CLASSIFICATION OF RESPONDENTS ON THE BASIS OF OCCUPATION