Pepsi vs Coke

ABSTRACT Soft drinks are playing the vital role in the market and the companies are also getting the good profits on these products. The soft drinks industry has originated in 1772. Now these drinks spread all over the world and the millions of bottles is consumed every day. Now this business is a global one and the companies are facing high competition in this business and they are changing their strategies according to the situations. Pearl Beverages Pvt. Ltd. Takes a great care to maintain quality control of products in their factory. The bottles are visually examined for impurities continuously, as the bottles move out.Samples are checked every ten minutes of production time by the chemist for its quality and hygienic condition. The chemical analysis is also flavours, gas contain and sugar percentage. The appearance, smell and taste of the production are suspended and the correcting measures are taken also as to sent right the bottling process. The main objective of the study is to find out the strength and weakness of the Pepsi in visakhapatnam zone when compared to the Coca-cola, that is mainly in the three places in Srikakulam district i. e. Srikakulam, Narasannapeta, and Amadalavalasa .Consulting almost all the outlets in these three areas, which are selling the soft drinks with a structured questionnaire, has done the study. The data has been collected and analyzed and interpreted by the help of the graphical representation technique. The analysis revels the various strengths and weaknesses of Pepsi in these areas along with the position of competitors. The most of the consumers preferred soft drinks because of better taste and to quench out their thrust. But now days, due to the changing food habits consumers have started adding the soft drinks in their food habits.The total sales of the soft drinks the Pepsi’s share is more but when compared with the Cock the number of outlets are less than Cock. Finally it can be concluded that the industry n eeds lot of channel management activities to do along with various promotional strategies for the customers. I wish the company got its objectives achieved CONTENTS Chapter NoTitle Page No 1. INTRODUCTION & DESIGN OF THE STUDY 1. 1 About the Marketing topic 1. 2 Need of the Study 1. 3 Hypothesis 1. Objective of the Study 1. 5 Research Methodology 1. 6 Limitations of the Study 1. 7 Chapter Plan of the Study 2. ORGANIZATION PROFILE 2. 1 Genesis and Growth 2. 2 Organization Structure 2. 3 Production Function 2. 4 HR Function 2. 5 Finance Function 2. 6 Marketing Function 2. 7 Future Plans 3. THEORITICAL FRAMEWORK 3. 1 Introduction 3. 2 Topic Coverage 3. 3 How it relates to Marketing Management 3. 4 Measuring Performance 4.DATA ANALYSIS & INTERPRETATION 5. SUMMARY & SUGGESTIONS 5. 1 Summary 5. 2 Major findings 5. 3 Suggestions 5. 4 Implications for Owners / Managers 5. 5 conclusions 5. 6 Scope for the Future research 6. BIBLIOGRAPHY & QUESTIONNAIRE 6. 1 Bibliography 6. 2 Questionnaire CH APTER-1 Introduction & Design of the Study 1. 1 INTRODUCTION In this chapter various accepts of study are going to be discussed. To which area of management that study belongs to and various concepts that are related the area of study.The present outcomes under marketing and deals in the specific with the distribution network and its management. PEPSI COLA was in India from 1956-61 and left the country, as its products were not acceptable by the Indian customers. But recently in 1990 it re-entered the Indian market, where by PEPSI FOODS LIMITED was entered into a joint venture with PEPSI INTERNATIONAL, TATA and VOLTAS. PEPSI Bottlers and Producers of soft drinks buy concentrate and sell at fixed price and add a margin rationally for its products. 1. 2 NEED OF THE STUDY In modern days, market plays a vital role in rapidly changing industrial scenario.The marketing decline is under going reappraisal in the light of vast goals, technological, economic and social changes being faced by the today companies. The order to known the changes in the field of marketing it are necessary to conduct market survey. Study is conducted considering the following accepts: Firstly, visage is a representative of soft drink market which is highly promoting with a lot of potential which is at to be tapped. Secondly the behavior of the retailer is very much influenced by the additional benefits he is getting for selling the products having.Thirdly to understand the market condition of the soft drinks in the present scenario and the competition level in the market. Considered the key role of the retailer in present day market as an attempt was made to study the impact of company’s schemes of offering coolers to the retailers. 1. 3 SCOPE OF THE STUDY There is lot of scope for the further study in the project. Further study can be done in the following ways. ? We can make a study on Pepsi and Cock companies’ efficiency in their promotion activities. ? The same study can be conducted in other areas under bottling unit to generalize the finding for entire area under it. There is chance to know whether the Pepsi and Cock are doing the right thing regarding the sales promotion, product quality, discounts and advertising. ? A study on impact of visit coolers sales of Pepsi also be taken up. 1. 4 OBJECTIVE OF THE STUDY In view of intensifying competition in soft drink market, it is imperative that a brand keeps a constant, which on them market and response properly and promptly to the dynamics of the market. It is in view of this fact has the present study has been taken up for â€Å"PEPSI†. ? To know and compare the merchandising of Pepsi and Cock in retail outlets. To know the promotional activities of sales promotion, advertising and public relations. ? To know the strategy of Pepsi and its competitors regarding the Marketing Mix. ? To know the problems of retailers regarding the trade schemes and consumer offers. ? To identify the retailers opin ion towards Pepsi products. ? To know the problems of retailers and to offer the suggestion for improving in sales. 1. 5 METHODOLOGY Introduction: In this chapter, basically the methodology, by which the report has been prepared, is explained. The exact need for conducting the study and total design of framework of the report prepared is discussed.The limitations of the study are also discussed here. According to the survey beverages can be classified into two segments. The first segment can be done basing on the milk content, like milk based products like tea, coffee, flavoured milk, and health drinks (milk, malt and coco) and the second segment can be done on non-milk products such as soft drinks and mineral water. According to the survey conducted on the consumption of beverages, Tea comprises 90%, filtered coffee 4%, beverages 2%, instant coffee 2% and carbonated soft drinks just above 1% of total consumption. Soft drinks industry is a well known consumer product industry.It ori ginated in the year 1772. In the USA first bottled soda was manufactured, by inventing a machine in 1809, the manufacturing of carbonated soft drink was recorded in the history of soft drink industry. Now a days soft drink industry is growing very extensively and millions of people are consuming soft drinks everyday. Age, income, and climate are not at all a barrier for the consuming soft drinks by the people. This is the reason for the tremendous growth in soft drink market. Data which is required for the analysis and fulfillment of our objectives has been collected from two sources.They are 1. Primary sources 2. Secondary sources PRIMARY DATA: Primary data is collected from the retailers through a structured questionnaire. It includes the first hand information from the outlets. It can view as a survey. The questionnaire was especially designed to find out the market share of the soft drinks and problems and weakness of Pepsi in that particular area. The chapter deals with main an alysis part of the study and the dealer outlets covered in the study is ? Srikakulam ? Narasannapeta ? Amadalavalasa SECONDARY DATASecondary sources include the information collected from the annual reports, published and unpublished records of the company . various books and journals and internet also being used for collecting the relevant data After gathering the data from those two sources the data was analyzed, tabulated and interpreted and finally suggestions were offered for the betterment of the company. DATA ANALYZING TOOLS: After gathering the data from the Primary and secondary sources the data was analyzed ,tabulated and interpretations were written down with the help of graphs and charts , with the help of Microsoft Excel and Microsoft Word. . 6 LIMITATIONS OF THE STUDY The present study is subject to the following limitations: ? The sample size is not universal , some part of other cities remained uncovered ? Unavailability of some information due of lack of awareness o f retailers ? Time and expenses were major constraints ? The study of the soft drink industry which is known to be seasonally fluctuating on e percent study does not take into account seasonal fluctuations. The results may not suit for all the seasons ? Personal basis may be existing as the dealer of varied nature elicits the information Chapter-2 Company overview 2. INTRODUCTION In this chapter, an over of all the major accepts related to the study is discussed. The total industry profiles the soft drinks industry globally and in our country. The profile of the company with respect to its operation number of franchises, market share of the company and many other factors would be discussed here. 2. 2 INDUSTRY PROFILE Non alcoholic soft drink beverage market can be divided into fruit drink and soft drink. Soft drinks can be further divided into carbonated and non carbonated drinks. Colas, lemon and oranges are carbonated drinks while mango drinks come under non-carbonated drinks.Cola , lemon and oranges are carbonated drinks while mango dinks comes under non-carbonated category. The soft drinks market till early 1990’s was in hands of domestic players like Coke, Thumps Up, Limca etc. but with the opening up of economy and coming of MNC players Pepsi and Cock the market has totally under their control. Worldwide, Cock is the leader in carbonated drinks market. In India it is Pepsi, which scores over cock but this difference is fast decreasing. Pepsi entered Indian market in 1991. Cock re-entered (after they were thrown out in 1977, by then central government) in 1993.Pepsi has been targeting the youth and the sales have been doing well by sticking to this youth segment. Cock on the other hand struggled initially in establishing itself in the market. In a span of 7 years of its operations in the country it changed its CEO four times they seem to have started understanding the pulse of Indian consumers. Soft drinks are available in glass bottles, aluminum ca ns and PET bottles for home consumption. Fountains also dispense thin in disposable containers. SEGMENTATION: The soft drink market can be segmented on the basis of place of consumption and on the basis of type of products.The segmentation on the basis of place of consumption divides the market into three parts: 1. on-permise-80% of the consumption of soft drinks is on premise i. e. restaurants, railway stations, cinemas etc, 2. At-home the rest 20% of the market compromise of the soft drink purchased for consumption at home. The market can also be segmented on the basis of types of products into Cola products and non-cola products. 1. cola products account nearly 62% of the total soft drinks market. The brands that fall in this category are Pepsi, cola, Thumps Up, Diet Pepsi etc. 2. on-cola segment, which constitutes 36%, cam be divide into 4 categories based on the type of flavour available, namely ? Orange ? Cloudy lime ? Clear lime ? Mango I. Orange flavour based soft drinks con stitutes around 17% of the market. The segment is largely dominated by national brands like Fanta of Coca-cola Co. and Mirinda Orange of Pepsi Co. rest of the market is in hands of smaller brands like Crush (earlier Cadbury Schweppes and now of Coca Cola), Gold Spot etc. II. Cloudy Lime flavour constitutes 14% of the market and is largely dominated by Limca of Coca Cola and Miranda Lemon of Pepsi Co. III.Clear Lime this segment of the market witnessed good growth initially with all; the players launching their brands in the segment. But now the growth in the segment has slowed down. The brands available in this segment are 7 Up , Mountain dew of Pepsi, Sprite of Coca-Cola and Canada Dry( earlier of Cadbury Schweppes and now of Coca Cola). The segment constitutes 3% of the total soft drinks market. IV. Mango flavour segment constitutes 2% of the total soft drinks market and it directly competes with mango based fruit drinks like Fruity. The leading brands in this segment are: Maaza o f Coca Cola and Slice of Pepsi.There is very thin line of difference between the clear and cloudy lime. The most obvious feature is that clear lime has to be bottled in green bottles as sunlight harms the drink and changes the taste. There are some small local brands at city or regional levels. Most of these are either merging with two big players (Coca Cola and Pepsi) or they command a very small –less than 3% of the total market in their respective areas. Soft Drink Production Area: The market preference is highly regional based, while Cola drinks have main market in metro cities and northern states of U. P, Punjab, Haryana, etc†¦Orange flavoured drinks are popular in southern states. Sodas too are sold largely in southern states besides the Bars. Western markets have preference towards mango-flavoured drinks. Growth Promotional Activities in Soft Drink Industry: The government has adopted liberalized for the soft drinks trade to give the industry a boost and promote t he Indian brand internationally. Although the import and manufacture of international brands like Pepsi and Cock is enhanced in India the local brands being stabilized by advertisements, good quality and low cost. Buying Behavior in Soft Drink Industry: Soft drinks come under the category of products on impulse. This attitude of impulse buying is slowly changing to occasion-led buying and also to some extent consumption through home refrigeration particularly in urban areas. ? The market is slowly moving from non alcoholic carbonated drinks to fruit based drinks and also to plain bottled water due to lower price and ready availability. ? Consumers purchase soft drinks primarily quench thirst therefore people traveling and not having access to hygienic water reach out for soft drink. This accounts for a large part of the sales. Brand awareness plays a crucial rule in purchase decisions. ? Availability in the chilled from also plays a crucial role in purchase decisions. This has made both the companies to push its sales and to increase its retail distribution by offering Visi cooler to retailers. ? Why there is no aversion to consumption of soft drinks buys any age group, the main consumer of this market are people in the age group of 30 and below. ? Product differentiation is very low, as all the products taste the same. But brand loyalty is high in the case of kids and people in the age group of 20-30 years. According to NCAER survey, lower, lower-middle, upper-middle class people do 91% of the total consumption of soft drinks in the country. Growth promotional activities in soft drink industry: The government has adopted liberalization for the soft drink trade to give industry a boost and promote the Indian Brand internationally. Although the import and manufacture of international brands like Pepsi and Coke is enhanced in India . The local brands are being stabilized by advertisements, good quality and low cost. Buying Behavior of soft drink industry: †¢ Soft drinks come under the category of products on impulse.This attitude of impulse buying is slowly changing to occasion-led buying and also to some extent consumption through home refrigeration particularly in urban areas. †¢ The market is slowly moving from alcoholic carbonated drinks to fruit based drinks and also plain bottled water due to lower price and ready availability. †¢ Consumers purchase soft drinks particularly to quench thirst and therefore on travel not having access to hygienic water reaches out for soft drinks. †¢ Brand awareness plays a vital role in purchase decisions. †¢ Availability in the chilled form also plays a crucial role in purchase decisions.This has made both the companies to push its sales and to increase its retail distribution by offering Visi coolers to retailers †¢ Why is there no aversion to consumption of soft drinks to any age group, the main consumers of this market are people in the age group of 30 and below. †¢ Product differentiation is very low, as all the products taste the same. But brand loyalty is high in the case of kids and people in the age group of 20-30 years †¢ According to NCAER survey, lower, lower-middle ands upper-middle class people do 91% of the total consumption of soft drinks in the country.Major Players in Soft drinks Industries The two global majors Pepsi and Coca Cola dominate the soft drink market in India. Coca Coal, which would up its operations during the introduction of the FERA regime, reentered India 16 years later in 1993. Coca Cola acquired a major chunk of soft drink market by buying out local brands Thumps up, Limca, Maaza and Gold spot from Pearl beverages, Coca Cola has also acquired Cadbury Schweppes soft drink brands Crush, Canada Dry and Sport Cola in early 1999 and now recently in Oct. 2008 . It acquires distribution rights of these brands from IFB Agro Ltd .Pepsi stated a couple of years before Coca Cola manufactures came up with their own m arket share figures and claimed to have increased their share. Shares Reports On Retailers In Soft Dink Industry: A Survey was conducted to study the retailer’s view of the present market, future trend and the consumer behavior patterns. The findings of the survey are as follows. †¢ Retailers started that the consumers are loyal to the particular segment of the soft drink i. e. Coca Cola, Orange or Lemon. But as for the loyalty for the brands in each segment is concerned, it is not very significant. 43% of the retailers surveyed told that in the soft drink industry advertising is the key component, it drives sales. While 32% stated promotional schemes and 20%brand loyalty as the reason. †¢ As consumers are not very brand loyal where the purchase of the soft drink purchase is concerned, the retailer purchase becomes a critical issue. They usually sell the product in which they get maximum benefit. For this, the companies try to offer them higher margins. While distri butors get the margin of Rs 8-9 per crate (1 crate is equal to 24 bottles) at 3-4% of MRP, retailers are given margin of 10-12 % of MRP.The retailers are not happy with this, as the cost of refrigeration very high for soft drinks to overcome this problem the companies are offering Visi coolers schemes to their main retailers 2. 3 ORGANIZATION PROFILE PEPSI COMPANY MISSION STATEMENT: Pepsi Company’s over all missions is to increase the value of their share holder’s investment. they believe that their commercial success depends up on offering quality and value to their consumers and providing products that are safe, whole some and economically efficient and environmentally sound. Providing a fair return to their investors, while adhering to the highest standards of integrity.HISTORY OF PEPSI AND COCA COLA COMPANY: Pepsi Co Inc. was founded by Donald M. Kendall, President and chief executive officer of Pepsi –Cola and Herman W. Lay, Chairman& Chief executive of FRI TO-LAY through the merger of two companies in the year 1965. MAJOR PRODUCTS OF THE NEW COMPANIES ARE: †¢ Pepsi-Cola company Pepsi-Cola(formulate in 1898) †¢ Diet Pepsi(1964) †¢ Mountain Dew (introduced by T. P corporation 1984) †¢ Frito-Lay Inc brand chips Lays brand potato chips †¢ Cheetos brand chew flavoured snacks †¢ Ruffles brand potato chips & Rold Gold brand pretzels Pepsi Company Inc. s among the most successful consumer products company in the world with: 1998 revenues of over $22 billion &1, 51,000 employees. Pepsi company’s brand names are among the best known & most respected in the world . Some of the Pepsi Company’s brand names are 100 years old. FRITO-LAY Company is the world’s largest manufacturer and distributor of snack chip and Tropicana products Inc. is the world’s largest marketer and producer of branded juices. Pepsi Company’s success is the result of †¢ Superior Products. †¢ High Stands of Performances †¢ Distinctive Competitive strategies. †¢ High integrity of its work force PEPSI-COLA COMPANY:Calets Bradham, New Beru and Mc. Druggist who first formulated Pepsi coal founded Pepsi Company’s beverage business at the turn of the century. Brand Pepsi and other Pepsi-cola products including Diet Pepsi one, Mountain Dew, Slice and mug brands account for nearly 1/3 rd of the total soft drink in United States. Outside U. S Pepsi Cola Company’s soft operations include the business of 7up international. Pepsi-cola beverages are available in about 170 countries. Key Pepsi-cola international market includes Argentina, Brazil, china, India, Mexico, Philippines, Saudi Arabia, Spain, Thailand, and the United Kingdom.Pepsi-cola provides advertising, marketing sales and promotion support to the Pepsi-cola bottles. New advertising and existing promotions keep Pepsi-cola young. The company manufacture and sales of the soft drinks are concentrated to the Peps i-cola bottles. †¢ In 1996, Pepsi entered Japan and Eastern Europe. †¢ In 1967, PepsiCo. Stock splits two-for one. In 1986, North America van lines (NAVL), a premier transportation company Pepsi co, and renamed a strong contribution to the Pepsi unit it has divided in 1984. In 1969 in bold modern Pepsi cola packing which was using red, white and blue were introduced.FRITO-LAY introduced fungus brand onion flavoured snacks. In 1970 Pepsi introduces the industry’s first two litter bottles. Pepsi is the first company to respond to consumer preference with light weight, recyclable, plastic bottles. In 1971 Andral E. Pearson was appointed as president of PepsiCo, a position he held until his retirement in 1984. in 1972 don Kendall announced agreement making Pepsi cola the first foreign product sold in U. S. S. R. Pepsi co is given exclusive rights to import Stolichnaya Russian vodka in the U. S.In 1973 and 1974 Pepsi-cola became the first American consumer product to pro duce made and sold in former Soviet Union. In 1975 Pepsi Lite, with destructive lemon taste, is introduced as an alternative to traditional diet colas. In 1976 PepsiCo adopts code of worldwide business conduct. Pepsi-cola became the single largest selling soft drink brands sold in U. S super markets. In 1977 PepsiCo shares spilt up three for one. In 1987 and 1979 the opening of PepsiCo research and technological center in Vallah N. Y PepsiCo reached 85 billion marks in sales. Pepsi was formed to focus on the overseas development of restaurants.In 1981 PepsiCo fitness center was completed, making PepsiCo, one of the most advanced companies in the area of employee’s health and fitness. In 1982 Pepsi free and diet Pepsi free, the first major brands caffeine free colas were introduced. Inauguration of the first Pepsi cola operations in china: In 1983 The Bottler Hall of Fame was established to recognize the achievement and dedication of international bottlers. In 1984 diet Pepsi is reformulated with 100% neutral sweet, slice and diet slice. The first major soft drinks sirucsare added in Mexico.The cola were takes â€Å"one giant spilt for mankind† when a Pepsi â€Å"space can† is successfully tested a brand the span shuttle. 1986 Pepsi company board of directors visit the peoples public of china to make the opening the Pepsi second plant in china. In 1989, Pepsi Company introduce share power stock option program for all employees becoming the first large corporation tool award stock options through virtually all full time employees. In the 1900, Pepsi company was recognized as one of the most admired corporation by the fortune magazine’s top 10 for the two successive years.Pepsi signs the largest commercial trade agreement in history with the Soviet Union expecting sales in the USSR to double by the end of the century. Pepsi re-entered the Indian market in collaboration with Punjab Agro industries Corporation (PAIC). In 1991 Pepsi compa ny named one of the fortune magazine’s top most admired corporations, for the third year in also. Pepsi co. purchased an equity position in the carts of Coloreds Inc. the leading manufacturer and marketer of mobile merchandising equipment. It was sold in 1955. 1993 Pepsi Cola began the distribution of Lipton’s line of ready to drinks teas nationwide. n 1996 Pepsi started its website WWW. Pepsi. com SOCIAL RESPONSIBILITY OF PEPSICOLA COMPANY: As a consumer products company, Pepsi Company does not have the major environmental problems of heavy industry. Their biggest environment challenge is packaging generated by their products. Packaging is important to public and a critical component of the distribution system is to deliver products to consumers and commercial establishment. To meet both consumer demand and safe guard the environment, they recycle, re-use and reduce packaging wherever possible.Each business is also committed to responsible use of resources required in manufacturing their products. LOGOS OF THE COMPANY [pic] 2. 4 ABOUT PEPSI INDIA COMPANY Franchise (pearl Bottling Pvt. Ltd. ,) Often new flavours are to be added to the product line of cool drinks to prevent a competitor. To establish a relation with retailers it is desirable to sell more than one flavor of cool drinks. To decrease the security seasonal products are added to the resources available so as to lessen its risks. Pepsi has given the franchise of Visakhapatnam region to Pearl Beverages which belongs to Pearl Group with Head quarters at Delhi and Mr.C. K. Jaipuria as the chairman and the Managing Director of the group. Pepsi Foods Ltd. , declared Krishna Mohan Beverages and Constructions as franchise, in 1992. Last year it was changed to Pearl Beverages was taken by the Pearl Group. Campa-cola Soft Drinks has originally owned the premises since 1980 at Madhurawada. After the insolvency of campa-cola, KMBC purchased the premises in1990 in the auction by APSFC. Initially, i t used to produce Mc. Dowell’s soda and Bagpiper soda. It produced these drinks under franchise agreements but company could not exist in the market due to stiff competition from pearl products.Description and Launch of products |Brand name |Flavour |Date | |Pepsi |Cola |April-1992 | |Mirinda |Orange |April-1992 | |7 Up |Clear Lemon |April-1992 | |Mirinda Lime |Cloudy Lemon |April-1992 | |Soda |Soda |April-1992 | Pepsi |Pepsi Dite |7 Up |Mirinda(o) |Mirinda(L) |Slice |Evervess soda | |Coca-cola |Cock Dite |Sprite |Fanta |Limca |Maaza |Kinleys | Pepsi market share: Pepsi : 47% Coca-cola : 53% Pepsi foods (Pvt. ) Ltd. Pepsi cola was in India from 1956 to 1961. it left this country, as its products were not found acceptable to the Indian market. Pepsi foods Ltd. Joint venture between Pepsi Co. nternational of US(which is holding 40% of the equity)and Tata concerns Voltas and the Punjab Ago industries Corporation (each of which have as round 25% of the equity),has 25%of its outpu t reserved for beverages with a 50% export commitment fo9r fruit and vegetable products. According to Pepsi officials the project guarantees that for every American dollar the company takes out of India, it will bring five back. They started concentrated factory in Punjab. This company named as Pepsi Foods Ltd. Pepsi Co. international’s direct investments in India so far amounts to Rs. 65 corer. Two thirds of this however has gone into food processing. Pepsi foods are exporting fruits and vegetables to UK etc. The Pepsi’s foods processing unit directly supervised 1,200 hectors under tomato cultivation covering 183 villages and 319 farmers. The company’s technical inputs enabled the farmer to achieve a yield of 35 to 50 tones a hector against the average of was after discontinuing teems. KMBC Pvt. Ltd. Has was the bottle for five districts Vizag, Vizianagaram, Srikakulam, and East Godavari & West Godavari.It receives the stock from Cuttack. PRODUCT PROFILE The Pe psi Co. is known for the development and introduction of world-class brands & products. Their portfolio is organized into three core business, which consists of snacks, Beverages and Restaurants. Pepsi products are constantly changing themselves to develop new products. They encourage consumer to explore their wide range of brands. Main objectives: The objectives of the company set out in memorandum of association and franchise agreements are as follows: ?To manufacturing soft drinks by concentrating supplied by Pepsi Foods. ? To market and advertise within specified areas for Pepsi products. ? To sell soft drinks at fixed prices. financial structure: To start and operate business, any company has to invest its capital in fixed assets and floating assets and also in meeting the daily requirements of the company. However, depending on the nature of business and product being offered by the company, the ratio of investment of capital in fixed and floating assets differ. Working Capita l:It means capital required for daily management of the company eg. Wages, salaries, canteen expenses and transportation expenses etc Plant layout: the machine and equipment have been imported from Germany, which are arranged in the plant according to the sequence of operation. All the operations are carried on a continuous movement. The reasons for choosing the product layout are: 1. There is continuous supply of material. 2. The brands are all standardized products. 3. The demand for the product brands is reasonable stable. 4.The volume of production is adequate for the reasonable utilization of equipment. Since the company follows continuous operation movement, the cost of material handling goes low. The total floor space required by the machine is less than other types of plant layouts. Plant Capacity: The company installed latest up to date automatic plant conforming to plant layout. The installed production capacity is 400 bottles per minutes i. e. 24,000 bottles per day. The plant also is having 100 bottles per 1-leter line. During off-season the plant runs one shift.The company has to produce enough bottles of soft drinks at a speed to keep in space with the disappearance of soft drinks form shelves of the retailer. Production Schedule: The production schedule is fixed by taking into consideration. ? The present or current market demand. ? The availability of empty bottles. ? The inventory position filled bottles of different flavors. The production schedule for each brand is fixed daily, filling the bottles of each branded flavors. This has an advantage in manufacturing the branded product is one at a time. Quality control Pearl Beverages Pvt.Ltd. takes great care to maintain the quality control of the products in their factory. The Bottles are visually examined for impurities continuously, as the bottles move out. Samples are checked every ten minutes of production time by the chemist for its quality and hygiene condition. The chemical analysis is al so made for flavors, gas content and sugar percentages. The appearance, smell and taste of the products are also checked. If any defects are noticed, the production is suspended and the correcting measures are taken so as to set right the bottling process irregularities.Further, samples from each batch are dispatched to the affiliated parent agency company in each week for quality checkup. Moreover, agency of the company also lifts sample form the market at the random for quality checkup at any time to make sure that the quality is maintained to the exact standard of the parent company. At the end of the production schedule, daily all the equipment floor and wet patches are cleaned with bleaching powder or some other solution. The standards of hygiene maintained inside the production shops are commendable. Organization Structure and management:The word organization has two common meanings. The meaning signifies an institution or function as group and the second meaning refers to the process of organizing the way of work which is arranged and allocated among members often organization so that the goal of the organization can be achieved efficiently. The organizing involves balancing the companies. Needs both for stability on one hand and change on the other hand, an organization structure means adopting a change or it can be a source of resistance to change. There are mainly five elements of organization structure. ? Specialization of activities. Standardization of activities. ? Coordination of activities. ? Centralization and decentralization of deviation making. ? Size of the work unit. The M. D, Mr. Ruchirans Jaipuria is athe head of the organization and administration. The company is managed by able director, and is assisted by a team of well-qualified & experience senior management personnel. LIST OF THE EMPLOYEES IN PEARL BOTTELIGN COMPANY The following table shows the description of employees along with designation & no. of employees: |S. No |Description |No. f employees | |1 |GENERAL MANAGER (FINANCE) |1 | |2 |COMMERCIAL MANAGER |1 | |3 |MARKETING DEVELOPMENT MANAGER |1 | |4 |VICE PRESIDENT |1 | |5 |TERRITORY DEVELOPMENT MANAGER |4 | |6 |ACCOUNTS DEVELOPMENT MANAGER |1 | |7 |TRAINING MANAGER |1 | |8 |ADMINISTRATIVE MANAGER |1 | |9 |MARKET EQUIPMENT MANAGER |1 | |10 |PRODUCTION MANAGER |1 | |11 |ASST.PERSONAL MANAGER |1 | |12 |STORE EXECUTIVES |3 | |13 |CUSTOMER CENTRAL EXECUTIVE |25 | |14 |TERRITORY C0-ORDINATOR |1 | |15 |ROUTE AGENT |50 | |16 |SALES TRAINEE |1 | |17 |CHEMIST |3 |18 |ACCOUNTANTS |5 | |19 |SUPERVISOR |8 | |20 |CLERKS |8 | |21 |OPERATORS |10 | |22 |ELECTRICIANS |10 | |23 |FITTERS |3 | |24 |COMPUTER CUM TELEPHONE OPERATORS |12 | |25 |SECURITY OFFICER |1 | |26 |SECURITY GUARDS |6 | |27 |OFFICE BOYS |13 | |28 |SWEEPERS & HELPERS |3 | CHAPTER-3 Theoretical Framework 3. 1 INTRODUCTION The main part of the report i. e. Analysis part is covered in this chapter. I did survey in 300 outlets in 3 various areas. After conducting the survey I interpreted the total collected information using a structured questionnaire. The required information is derived from that interpretation and analysis. This analysis part contains tables and pie charts. We can come to a conclusion from the final information from this chapter. Because of that reason this chapter is very important in the entire study of the project. Without this interpretation we can conclude the total survey and also can not understand the position of any company and the opinion of the customers regarding the company. 3. 2 DETAILS OF THE AREA SURVEY CONDUCTED Details of the survey conducted: The total data collected in three areas in Srikakulam district of total of 300 retail outlets.They are given below: |CLUSTER |SAMPLE SIZE |AREA | |Cluster-1 |130 |Srikakulam | |Cluster-2 |90 |Amadalavalasa | |Cluster-3 |80 |Narasannapeta | I started my survey first at Srikakulam on 4/02/09 and my study completed on 18/02/09 with Amadalavalasa. I pe rsonally went to every outlet and asked the total details of which are in the questionnaire and filled those things. Some of the retailers denied giving the details and I waited there with patience and collected all the data. In my survey I learned a lot and collected the useful information and also got good experience in the market field and came to know many things which are not in our books through this survey.I almost covered all the retail outlets which are situated in these areas and collected the correct information. 3. 3 INTERPRETATION OF THE SURVEY [TABLES AND GRAPHS] 1. Pepsi & Cock Brands Available In Various Markets: |S. No |Market |Pepsi |Cock | |1. |Srikakulam |5 |6 | |2. |Amadalavalasa |5 |5 | |3. |Narasannapeta |5 |7 | [pic] Average Pepsi & Cock brands Available in the market: Brands |No of Types | |Pepsi |5 | |Coca-Cola |6 | INTERPRETATION: In my survey of 300 retail outlets in 3 areas, I found 5 brands of Pepsi out of its 10 brands and 6 Brands of Coke is availa ble out of its 10 Brands on average. So the brand availability of Coke is more when compared to Pepsi.Top brands Available in Srikakulam Market: |S. No |Brands |Percentage | |1. |Slice |46 | |2. |Mirinda |24 | |3. |Sprite |20 | |4. |Limca |10 | [pic] Top Four Brands Available In Amadalavalasa Market: |S.No |Brands |Percentage | |1 |Mirinda |46 | |2 |7 Up |24 | |3 |Sprite |17 | |4 |Thumps Up |13 | [pic] Top Four Brands Available In Narasannapeta Market: |S.No |Brands |Percentage | |1 |Mirinda |42 | |2 |Sprite |26 | |3 |7 Up |18 | |4 |Slice |14 | 2. No of Bottles Sold Per Day in Various Markets: | |Srikakulam |Amadalavalasa |Narasannapeta | |Pepsi |52 |45 |42 | |Coke |44 |35 |50 | pic] 3. No of Bottles sold per Day: |Brands |No of Types | |Pepsi |45 | |Coke |55 | INTERPRETATION: In my survey of 300 outlets in three areas I found Pepsi is occupying 55% and the Coke is occupying 44% in the total market in average.From this we can understand that the Pepsi sales are more when co mpared to Coke. 4. Service required to the retail outlets: |S. No |Market |Daily |Alternative Days |Weekly Twice | |1 |Srikakulam |63 |25 |12 | |2 |Amadalavalasa |49 |27 |24 | |3 |Narasannapeta |55 |36 |9 | Service Required in Average: Types of Services |Average Service Required from the Companies | |Daily |55 | |Alternative Days |30 | |Weekly Twice |15 | [pic] INTERPRETATION: In my observation of 300 outlets in three areas I found that 55% of the retailers want the daily service, 30% retailers want Alternative Days and the remaining 15% of the retailers want the service weekly twice. 5.Satisfaction of Pepsi Service |S. No |Market |Good |Satisfactory |Bad | |1 |Srikakulam |60 |40 |0 | |2 |Amadalavalasa |65 |30 |5 | |3 |Narasannapeta |70 |28 |2 | Satisfaction of Coke Service |S.N0 |Market |Good |Satisfaction |Bad | |1 |Srikakulam |45 |50 |5 | |2 |Amadalavalasa |40 |55 |5 | |3 |Narasannapeta |45 |50 |5 | Service Satisfaction of Pepsi and Coke in Average: |Brand |Good Satisfaction |Ba d | |Pepsi |65 |33 |2 | |Coke |43 |52 |5 | INTERPRETATION: INTERPRETATION: In my survey of 300 outlets I found that 65% of the retailers expressed good in case of Pepsi and 43% incase of Coke. 33% in the case of Pepsi and 52% in case of Coke expressed satisfactory and finally remaining retailers expressed bad to the service of the companies. 6. Trade Schemes by Both Companies in Various Markets |S.No |Market |Pepsi |Coke | |1 |Srikakulam |41 |59 | |2 |Amadalavalasa |49 |51 | |3 |Narasannapeta |41 |59 | Trade Schemes by Both Companies in Average Brands |Trade Schemes | |Pepsi |44 | |Coke |56 | INTERPRETATION: By observing the above pie chart we can understand that 56% of the traders expressed their happiness towards the schemes of the Coca-Cola and the remaining 44% traders expressed their happiness towards Pepsi company in case of their trade schemes. 7.Consumer Promotions offered by both Companies |S. No |Market |Pepsi |Coke | |1 |Srikakulam |61 |39 | |2 |Amadalavalasa |57 |43 | |3 |Narasannapeta |60 |40 | Consumer Promotions offered in Average Brand |Consumer Promotion | |Pepsi |59 | |Coke |41 | INTERPRETATION: In providing consumer promotion by way of giving the prizes to the consumers and other ways to promote the sales, Pepsi was able to attracted 59% of the retailers with its promotional schemes. In case of Coke it attracted the remaining 41% of the retailers by their consumer promotional schemes and activities. 8. Is T. V Adds help to increase the sale of Soft Drinks |S.No |Market |Yes |No | |1 |Srikakulam |74 |26 | |2 |Amadalavalasa |51 |49 | |3 |Narasannapeta |60 |40 | Amount of people saying T. V ads help increase in Sale, in Average | |T.V Add helps the increase in sales | |Yes |62 | |N0 |38 | INTERPRETATION: The above chart shows the opinions of the retailers that weather T. V ads will help to increase the sale of the soft drinks. In this 62% of the retailers expressed positively and the remaining 38% retailers expressed negatively to this question. 9. Comparison of 2007-2008 sales S. No |Market |Good |Less |Same | |1 |Srikakulam |55 |40 |5 | |2 |Amadalavalasa |30 |63 |7 | |3 |Narasannapeta |40 |48 |12 | Comparison of 2007-2008 sales in average Opinion |Good |Less |Same | |No of outlets in average |42 |50 |8 | INTERPRETATION: In the above chart the opinions of the retailers were given. From that 42% of the retailers expressed the view of good increase in the sale by2008 when compared to 2007. 50%of the retailers expressed the view of less increase in the sale and the remaining 8% of the retailers expressed the view of the same sales and there is no increase in the sales. 10. The Percentage Of Juice Based Soft Drinks In Total Sales |S.No |Market Area |30% |20% |10% | |1 |Srikakulam |30 |33 |37 | |2 |Amadalavalasa |29 |34 |37 | |3 |Narasannapeta |34 |32 |34 | Juice Based Soft Drinks In Average | |30% |20% |10% | |Result |31 |33 |36 | INTERPRETATION: By observing the above chart we can understand that the demand for the juice based soft drinks is increasing rapidly. For that the companies better to concentrate on the juice based soft drinks introducing and their sales. 11.Pepsi Visi coolers and other coolers available in the Market |S. No |Market |Pepsi cooler |Cock+ other coolers | |1 |Srikakulam |32 |68 | |2 |Amadalavalasa |21 |79 | |3 |Narasannapeta |31 |69 |Pepsi & Coke Visi Coolers Available in Average | |Pepsi Visi Coolers |Cock Visi cooler+ Own cooler | |Average of Outlets |28 |72 | INTERPRETATION: In the areas where I did my survey I found 28% of the retailers are using the Pepsi Visi Coolers and the remaining 72% of the retailers are using the Coke and Other coolers. From this we can suggest that Pepsi have to increase their Visi Coolers supply. 12. Why retailers keep other products in Pepsi Visi Coolers |S.No |Market Area |Electricity Bill |No Own Cooler | |1 |Srikakulam |35 |65 | |2 |Amadalavalasa |58 |42 | |3 |Narasannapeta |56 |44 | Why other products in Pepsi Visi Coolers in Average |S.No |Electricity Bill |No own cooler | |1 |49 |51 | INTERPRETATION: When I did the survey I observed that many of the retailers are keeping the other products in Pepsi Visi Coolers and they gave some sort of explanation for that. In those reasons 49% of the retailers said Electricity bill is the problem and the remaining 51% of the retailers said that they don’t have their own coolers. They should be restricted. 13.Most Soft Drinks Consuming Category In Various Markets |S. no |Market |Male |Female |All People |Youth | |1 |Srikakulam |18 |10 |59 |13 | |2 |Amadalavalasa |12 |11 |56 |21 | |3 |Narasannapeta |19 |18 |39 |24 | Most Soft Drinks Consuming Category In Average Opinion |Male |Female |All People |Youth | |Avg % of outlets |16 |13 |51 |20 | INTERPRETATION: In the above pie chart the consumption of soft drinks mostly by four categories. 51% of the total consumption is by All People, 20% by the Youth, 15% by the Male and the remaining 13% is consumed by the Female. We c an say that the consumption of soft drinks by the youth is increasing. 14. Soft Dinks Supply To The Retail Outlets [Cash Or Credit] |S.No |Market |Pepsi Cash |Pepsi Credit |Coke Cash |Coke Credit | |1 |Srikakulam |100 |0 |100 |0 | |2 |Amadalavalasa |100 |0 |100 |0 | |3 |Narasannapeta |100 |0 |100 |0 | INTERPRETATION: From the above pie cart we can understand that both the Pepsi and Coke companies are not providing any credit to the retailers. All the retailers are purchasing the soft drinks on cash only. 15. Consumption of Soft Drinks at Home and at Shop |S. No |Market |At Shop |At Home | |1 |Srikakulam 80 |20 | |2 |Amadalavalasa |70 |30 | |3 |Narasannapeta |75 |25 | Consumption of Soft Drinks at Home & at Shop In Avg. |S. No |At Shop |At Home | |1 |75 |25 | INTERPRETATION:From the above pie chart we can understand that in the areas I did the survey 75% of the Soft Drinks are consumed at the Shops and the remaining 25% of the Soft Drinks are consumed at Home. Chapter-4 SUMMARY, FIND INGS & SUGGESTIONS 4. 1 INTRODUCTION The chapter contains Findings, Suggestions and Conclusions. Basing on the results of the survey Suggestions are given to improve the potentials and the market share of the company in the soft drinks field. The total findings are prepared by the survey information collected in the various places in Srikakulam district. I did the comparative study between the top two brands in the field of soft drinks sector those are Pepsi and Coke.The information is base on the two brand comparison and in my view these are useful to the company to improve its performance and can get good sales as well as good market share in the field of Soft Drinks. These are all my sincere findings and suggestions to the company. FINDINGS 1) The company is maintaining the quality of the products and it has good quality control Dept. 2) Now a day because of changing the food habits the soft drinks are added to their food habits. 3) Pepsi soft drinks are occupying more than half of the soft drinks market. 4) The demand for the fruit based soft drinks is go on increasing and they occupied the top selling drinks position. ) Sales promotion activities taken by the Pepsi Company is good as per the retailer’s opinion when compared to coke. 6) The Pepsi Company’s supply of drinks is good but they are not providing the sufficient drinks to the outlets. 7) The No. of Visi coolers in the market is less when compared to the Coke Company. 8) Some of the retailers are placing the other products also in the company c