PepsiCo marketing project:2015

Project report on
“ACCEPTANCE OF TROPICANA SLICE ALPHONSO IN BANGALORE”
Submitted to
RAJAGIRI BUSINESS SCHOOL
In Partial Fulfillment of the Requirements for the course of
POST GRADUATE DIPLOMA IN MANAGEMENT
(2014-16)
Under the guidance of
Dr Neetha J Eappen
(Professor of RBS)
By
SANURAJ R
Register No: P14208
RAJAGIRI BUSINESS SCHOOL
RAJAGIRI VALLEY
KAKKANAD, KOCHI – 682039

EXECUTIVE SUMMARY
The project report is basically to understand the theoretical and functional aspects of an
organization. The project study was under taken at the Bangalore unit of PepsiCo India
Holding Pvt. Ltd., one of the major multinational companies
The first part of the report deals with profile study of the organization covering specific
topics like Industry profile, incorporation and history of the organization, organization structure
of PepsiCo India Holdings Pvt. Ltd. The second part of the report deals with problem centered
study of the organization .This part gives information about the study carried on the topic
“Acceptance of Tropicana Slice Alphonso in Bangalore” and the SWOT analysis of PepsiCo
Company.
The study is totally confined to south Bangalore region. Structure questionnaire was the
tool used in data collection. Percentage analysis has been used for analysis purpose. The study
reveals the acceptancepenetration of Tropicana Slice Alphonso in the retail outlets of South
Bangalore with reference to retailers, the awareness level, satisfaction level and preference for
Slice Alphonso among the customers and retailers and the Mind share and Heart Share of
PepsiCo.

Section 1
Profile Study of the Organization

1. INDUSTRY PROFILE
The Beverage Industry is a mature sector and includes companies that market nonalcoholic and
alcoholic items. Products manufactured by the beverage industry include: bottled water, juice,
sparkling and still drinks, syrups, nectars, ready-to-drink and regular teas and coffees, dairy
drinks, energy drinks, sports drinks, fruit powders, and alcoholic drinks such as beer, wine, cider
and spirits.
The sector is dominated by three major players, which together control nearly 80% of the global
market. Coca-Cola is king of the soft drink-empire and boasts a global market share of around
50%, followed by PepsiCo at about 21%, and Cadbury Schweppes (Dr Pepper and Seven Up) at
7%. In prosperous economic times, consumers usually favor the most famous brand names. Sales
are seasonal, not surprising, peaking during warm summer months. Consumer preferences will
drive product diversification. Most notably, greater awareness of the causes of common health
issues, e.g., obesity and diabetes, has increased demand for bottled water and other low-sugar or
sugar-substitute drinks. Soda, including diet options, continues to fall out of favor. In response,
beverage companies have capitalized on the popularity of energy drinks and ready-to-drink
coffee. However, energy drinks have come under scrutiny due to their high levels of caffeine, as
regulators attempt to size up the associated risks. Product diversification may be achieved
through internal or external means. The same goes for geographic expansion. The BRIC Nations
(Brazil, Russia, India, and China), key markets in the global arena, have gotten much attention.
Beverage companies have spent heavily to open new bottling plants and develop distribution
networks in these countries. Asian youths are among the world‟s fastest growing consumer
segment today. China, Indonesia and India make up three of the world‟s four biggest soft drink
markets.
In 2014, the global soft drinks markets have a value of $511.6 billion, an increase of 16.2% since
2009. The global soft drinks markets have a sales volume of 465.4 billion liters, an increase of
16.7% since 2009.

Nature of Competition: Oligopoly
 Gave wide range of products
 Competition is high
 Low prices and high production
 Profit maximization
 players are the price setters rather than price takers
Beverage industry in India
The Indian food processing and beverage industry is seen as a sunrise sector gaining prominence
in recent years. The beverage industry in India occupies USD 230 million markets in the USD 65
billion food processing industry in India. Coca cola, Pepsi, and Nestle are the leading beverage
brands that have been ruling the Indian beverage market since past few decades. The market
preference in India is highly region based. Whole cola drinks have main markets in metro cities
and northern states of UP, Punjab, Haryana etc. Orange flavored drinks are popular in southern
states. Sodas too are sold largely in southern states besides sales through bars. Western markets
have preference towards mango flavored drinks. Diet Coke and Diet Pepsi constitute just 0.7% of
the total carbonated beverage market.
Alcoholic beverages
Alcoholic beverages India is one of the largest markets for alcoholic beverages in the world. In
Asian countries India is the third largest sales market after China and Japan. Although India has
been more of a market for rum and whiskey for a long time, beer is becoming increasingly
popular, particularly among the young, affluent people. The sales volume of beer amounted to
2,097 million litres in 2014. The annual growth rate of beer sales volume will reach 9 % by
2018.
Variants Available
Soft drinks are available in glass bottles, aluminum cans and PET bottles for home consumption.
The market can also be segmented on the basis of types of products in cola products and non-
cola products. Cola products accounts for nearly 61-62% of the total soft drinks market. The

brands that fall in this category are Pepsi, Coca-Cola, Thumps Up, Diet Coke, Diet Pepsi etc.
Non Cola segment which constitutes 36% can be divided into four categories based on the types
of flavors available namely: Orange, Cloudy Lime, Clear Lime and Mango.
Bottled Water Market
Over the past 20 years, bottled water has been the beverage industry‟s fastest growing segment
the world over. In India, bottled water market is valued at more than Rs 10 billion (Rs 1000cr)
while maintaining an unimaginable annual growth rate of more than 60%. Even though it
accounts for only 5 percent of the total beverage market in India, branded bottled water is the 9th
fastest growing industry in the beverage sector. Seeing the ever increasing potential, experts
predict that the market size of bottled water would surpass the size of the soft drinks market in
the near future Many major Indian FMCG and multinational food corporation are also expected
to join the market, which has already more than 250, brands in the organized and unorganized
sector with large, medium and small scale production units. The market is also expected to
undergo a major consolidation phase. But even as the bottled water industry is in a powerful
position, of late it has come under increased scrutiny and criticism.
Growth promotional activities
The government has adopted liberalized policies for the soft drink trade to give the industry a
boast and promote the Indian brands 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. The soft drinks market till early 1990s
was in hands of domestic players like campa, thumps up, Limca etc but with opening up of
economy and coming of MNC players Pepsi and Coke the market has come totally under their
control.
Future of soft drinks
According to McKinsey & Co, the Indian middle class was estimated at 250 million people in
2007 and in 2030 is forecast to reach 600 million, and it is these middle class Indians that are
driving soft drinks demand upwards. Today, Indians drink around 65 litres of hot drinks annually
and just 13 litres of soft drinks. What we will see is a shift in consumption from hot drinks to
cold drinks over the coming years, facilitated by the expansion of refrigeration units in and out of
the home. Growth will be led by bottled water and, from a smaller base and with slower growth,
fruit/vegetable juice. Health and convenience are predicted to be the two most important factors

affecting buying behavior, as carbonates and concentrates play second fiddle to healthier bottled
water and fruit/vegetable juice.
Challenges faced by the industry
The following are some of the main challenges faced by the food and beverages industry:
 Climate change
 Global economic downturn
 Health consciousness among consumer
 The soft drinks bottling operation is a capital intensive business, with investment at four
levels that is, cost of plant and equipment, investment in bottles and crates, transportation
and cooling structure at retail outlets.
 Soft drink industry is suffering greatly due to lack of capacity and infrastructure in
developing countries.

2. COMPANY PROFILE
PepsiCo, Inc. was incorporated in Delaware in 1919 and was reincorporated in North Carolina in
1986.They are a leading global food and beverage company with a complementary portfolio of
enjoyable brands, including Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. Through
the operations, authorized bottlers, contract manufacturers and other third parties, they make,
market, distribute and sell a wide variety of convenient and enjoyable beverages, foods and
snacks, serving customers and consumers in more than 200 countries and territories . It is
headquartered in Purchase, New York. Indra Krishnamurthy Nooyi is the Chief Executive officer
of PepsiCo since 2006. The global food and beverage leader employs around 2,74,000 people
worldwide. PepsiCo is the world‟s third largest food and beverage company. It manufactures
markets and sells a range of salty, convenient, sweet and grain-based snacks, carbonated and
non-carbonated beverages, and foods. It is the second-largest manufacturer of carbonated soft-
drinks in the world. The portfolio of 22 power brands that each generate more than $1 billion in
estimated annual retail sales, and more than 10 brands that each generate between $500 million
and $1 billion in estimated annual retail sales, is synonymous with quality, great taste and
affordability.
What makes PepsiCo stronger?
Two core attributes of PepsiCo to perform strong:
• Adaptability: PepsiCo anticipated major shifts in the consumer landscape and business
environment and met them head-on by preemptively retooling the company for advantage and
growth. Throughout the past half-century, PepsiCo has made bold moves to reshape portfolio,
build new capabilities and invest in new geographies. PepsiCo anticipated acceleration of
consumers‟ focus on health and wellness shift early on, and they took various steps to succeed.
They invested in research and development to improve the nutritional value and increase the
appeal of our Fun-For-You products by eliminating trans fats and reducing salt, fat and added
sugar content in key brands. They preemptively acquired major brands across the Good-For-You
space, including Quaker Oats, Gatorade for athletes, Tropicana, Naked Juice and the Wimm-Bill-
Dann line of dairy and juice products in Russia. They also created a nutrition group to grow our
Good-For-You portfolio.

• Performance: At the same time they have been driving sometimes radical change, they have
managed to deliver strong financial results over the long term. A $100 investment in PepsiCo
stock at the end of 1965 was worth nearly $43,000 at the end of 2014, a 13.2% annualized return,
compared to a $100 investment in the S&P 500 over the same time period, which was worth
nearly $10,000 at the end of 2014, a 9.8% annualized return. PepsiCo increased its annual
dividend for the 42nd consecutive year in 2014 and returned $8.7 billion to our shareholders
through share repurchases and dividends, a 36% increase over 2013.
3. INCORPORATION AND HISTORY
Pepsi-Cola has a long and rich history. The drink is the invention of Caleb Bradham, a
pharmacist and drugstore owner in New Bern, North Carolina. He began experimenting with
combinations of spices, juices, and syrups trying to create a refreshing new drink to serve his
customers. Caleb Bradham‟s creation, a unique mixture of kola nut extract, vanilla and rare oils,
became so popular his customers named it "Brad's Drink". Caleb decided to rename it "Pepsi-
Cola", and advertised his new soft drink. The new name, is derived from two of the principal
ingredients, pepsin and kola nuts. It was first used on August 28. People responded, and sales of
Pepsi-Cola started to grow, convincing him that he should form a company to market the new
beverage.
1902 – Bradham launched the Pepsi-Cola Company in the back room of his pharmacy, and
applied to the U.S. Patent Office for a trademark. At first, he mixed the syrup himself and sold it
exclusively through soda fountains. But soon Caleb recognized that a greater opportunity existed
to bottle Pepsi so that people could drink it anywhere.
1903 - The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially registered
with the U.S. Patent Office. That year, Caleb sold 7,968 gallons of syrup, using the theme line
"Exhilarating, Invigorating, Aids Digestion."
1905 - A new logo appears, the first change from the original created in 1898. He also began
awarding franchises to bottle Pepsi to independent investors, whose number grew from just two
in 1905, in the cities of Charlotte and Durham, North Carolina, to 15 the following year, and 40
by 1907. By the end of 1910, there were Pepsi-Cola franchises in 24 states.

Building a strong franchise system was one of Caleb's greatest achievements. Local Pepsi-Cola
bottlers, entrepreneurial in spirit and dedicated to the product's success, provided a sturdy
foundation. They were the cornerstone of the Pepsi-Cola enterprise. By 1907, the new company
was selling more than 100,000 gallons of syrup per year.
1906 - The logo is redesigned and a new slogan added: "The original pure food drink." The
trademark is registered in Canada.
1909 - Caleb erected a headquarters so spectacular that the town of New Bern pictured it on a
postcard. Famous racing car driver Barney Oldfield endorsed Pepsi in newspaper ads as "A bully
drink...refreshing, invigorating, a fine bracer before a race." The previous year, Pepsi had been
one of the first companies in the United States to switch from horse-drawn transport to motor
vehicles, and Caleb's business expertise captured widespread attention. He was even mentioned
as a possible candidate for Governor. The theme "Delicious and Healthful" appears, and will be
used intermittently over the next two decades.
1910- The first Pepsi-Cola bottler‟s convention is held in New Born in North Carolina.
1920 - Pepsi-Cola enjoyed 17 unbroken years of success. Caleb now promoted Pepsi sales with
the slogan, "Drink Pepsi-Cola. It will satisfy you." Then after World War I, the cost of doing
business increased drastically. Sugar prices see sawed between record highs and disastrous lows,
and so did the price of producing Pepsi-Cola. Caleb was forced into a series of business gambles
just to survive, until finally, after three exhausting years, his luck ran out and he was bankrupted.
By 1921, only two plants remained open.
A successful candy manufacturer, Charles G. Guth, appeared on the scene assuring the future of
Pepsi-Cola. Guth was president of Loft Incorporated, a large chain of candy stores and soda
fountains along the eastern seaboard. He saw Pepsi-Cola as an opportunity to discontinue an
unsatisfactory business relationship with the Coca-Cola Company, and at the same time to add
an attractive drawing card to Loft's soda fountains. He was right. After five owners and 15
unprofitable years, Pepsi-Cola was once again a thriving national brand.
One oddity of the time, for a number of years, all of Pepsi-Cola's sales were actually
administered from a Baltimore building apparently owned by Coca-Cola, and named for its

president. Within two years, Pepsi could earn $1 million for its new owner. With the resurgence
came new confidence, a rarity in those days because the nation was in the early stages of a severe
economic decline that came to be known as the Great Depression.
1934- A land mark year for Pepsi-Cola, the drink is a hit and to attract even more sales, the
company begin selling it 12-ounce drink for five cents (the same cost as 6-ounce of competitive
colas). The 12-ounce bottle debuts in Blatimore, where it is an instant success. The cost saving
proves irrespirable to depression-worn Americans and sales skyrocket nationally.
1936- Pepsi grand‟s 94 new US franchises and year-end profit reach $2100000.
1938- Water S Mack, Jr, V.P of phoenix Securities Corporation, president of the Pepsi-Cola
company considers advertising the key stone of the soft drink business, turns Pepsi into a modern
marketing company.
1939 - A newspaper cartoon strip, "Pepsi & Pete," introduces the theme "Twice as Much for a
Nickel" to increase consumer awareness of Pepsi's value advantage.
1940- The pepsi-cola company made history when the first advertisement jingle was broadcast
nationally on the radio. The jingle was “nickel nickel” an advertisement for Pepsi-cola that
referred to the price of Pepsi and the quantity for that price “nickel nickel” became a hit record
and was recorded into 55 languages.
1941 - In support of America's war effort, Pepsi changes the colour of its bottle crowns to red,
white and blue. A Pepsi canteen in Times Square, New York, operates throughout the war,
enabling more than a million families to record messages for armed services personnel overseas.
1942- One on many company sponsored effort to allow soldiers to communicate with friends or
family. This record was made in New York City. But often booths would be setup with mobile
recording equipment that was bought to where the soldiers were.
1943- Pepsi‟s theme line becomes “Bigger drink, Better taste”.
1948- Corporate headquarters moves from Long Island City, New York to Midtown, Manhattan.

1950-Alfred N. Steele becomes president and CEO of Pepsi cola. Mr. Steele‟s wife, Hollywood
movie star Joan Crawford, is instrumental in promoting the company‟s product line. Pepsi
receives its new logo, which incorporates the “Bottle Cap” look. The new logo is the fifth in
Pepsi history.
1953- “The Light refreshment” campaign capitalizes on a change in the products formula that
reduces caloric content.
1954 - "The Light Refreshment" evolves to incorporate "Refreshing without Filling."
1958 - Pepsi struggles to enhance its brand image. Sometimes referred to as "the kitchen cola,"
as a consequence of its long-time positioning as a bargain brand, Pepsi now identifies itself with
young, fashionable consumers with the "Be Sociable, Have a Pepsi" theme. A distinctive "swirl"
bottle replaces Pepsi's earlier straight-sided bottle.
1959- Pepsi debuts at the Moscow fair. Soviet president Khrushchev and US vice president
Nixon share a Pepsi.
1961 - Pepsi further refines its target audience, recognizing the increasing importance of the
younger, post-war generation. "Now it‟s Pepsi, for those who think Young" defines youth as a
state of mind as much as a chronological age, maintaining the brand's appeal to all market
segments.
1962- Pepsi receives its new logo, the sixth in Pepsi history. The “serrated” bottle cap logo
debuts, accompanying the brands ground breaking “Pepsi generation” ad campaign.
1963 - In one of the most significant demographic events in commercial history, the post-war
baby boom emerges as a social and marketplace phenomenon. Pepsi recognizes the change, and
positions Pepsi as the brand belonging to the new generation-The Pepsi Generation. "Come
alive! You're in the Pepsi Generation" makes advertising history. It is the first time a product is
identified, not so much by its attributes, as by its consumers' lifestyles and attitudes.
1964 - A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising.
1965 - PepsiCo, Inc. was established through the merger of Pepsi-Cola and Frito-Lay. Pepsi-Cola
was created in the late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist. Frito-Lay, Inc.

was formed by the 1961 merger of the Frito Company, founded by Elmer Doolin in 1932, and
the H. W. Lay Company, founded by Herman W. Lay, also in 1932. Herman Lay, former
chairman and CEO of Frito-Lay, was chairman of the board of directors of the new company;
Donald M. Kendall, former president and CEO of Pepsi-Cola, was president and chief executive
officer.
1969 - "You've got a lot to live. Pepsi's got a lot to give" marks a shift in Pepsi Generation
advertising strategy. Youth and lifestyle are still the campaign's driving forces, but with
“Live/Give," a new awareness and a reflection of contemporary events and mood become
integral parts of the advertising's texture.
1970- Pepsi leads the way into metrics by introducing the industry‟s first two litter bottles. Pepsi
is also first company to respond to consumer preference with light weight, recyclable, plastic
bottles. The Pepsi world headquarters moves from Manhattan to purchase, NY.
1974- First Pepsi plant opens in the USSR. Television ads introduce the new theme line, “hello,
sunshine, hello mountain dew.”
1976 - "Have a Pepsi Day" is the Pepsi Generation's upbeat reflection of an improving national
mood. "Puppies," a 30-second snapshot of an encounter between a very small boy and some even
smaller dogs, becomes an instant commercial classic.
1978- The company experiment with new flavors. 12 pack cans are introduced.
1980- Pepsi becomes number one in sales in the take home market.
1981- PepsiCo and china reach government agreement to manufacture soft drinks, with
production beginning next year.
1982- Pepsi free, a caffeine-free cola is introduced nationwide. Pepsi challenge activity has
penetrated 755 of the US market.
1983- Mountain dew launches the “dewit to it” theme.
1984 - A new generation has emerged-in the United States, around the world and in Pepsi
advertising, too. "Pepsi the Choice of a New Generation" announces the change, and the most

popular entertainer of the time, Michael Jackson, stars in the first two commercials of the new
campaign. The two spots quickly become "the most eagerly awaited advertising of all time."
1985- After responding to years of decline, coke loses to Pepsi in preference tests by
reformulating. However, the new formula is met with wide spread consumer rejection, forcing
the reintroduction of the original formulation as “Coca-Colaclassic” the cold war takes “onegiant
sip for mankind,” when a Pepsi „space can” is successfully tested abroad the space shuttle. By
the end of 1985, the new generation campaign earns more than 58 major advertising and film-
related awards. Pepsi‟s campaign featuring Lionel Richie is the most remembered in the country,
according to consumer preference polls.
1986 - 7up international is acquired in Canada. Pepsi-Cola acquires Mug Root Beer.
1987 - Pepsi-Cola world headquarters moves from purchase to Somers, New York. After a 27
year absence, Pepsi returns to Broadway with the lighting of a spectacular new neon sign in
Times Square.
1988 - Michael Jackson returns to "New Generation" advertising to star in a four-part "episodic"
commercial named "Chase." "Chase" airs during the Grammy Awards program and is
immediately hailed by the media as "the most-watched commercial in advertising history."
1989 – Pepsi lunges into the next decade by declaring Pepsi lovers “A Generation ahead”. Pepsi-
Cola introduces an exciting new flavor wild cherry Pepsi.
1990 - Teen stars Fred Savage and Kirk Cameron join the "New Generation" campaign, and
football legend Joe Montana returns in a spot challenging other celebrities to taste test their colas
against Pepsi. Music legend Ray Charles stars in a new Diet Pepsi campaign, "You got the right
one baby."
1991 – Pepsi introduces first beverage bottles containing recycled polyethylene PET into the
market place. The development marks the first time recycled plastic is used in direct contact with
food in packaging.
1992 - Celebrities join consumers, declaring that they "Gotta have it." The interim campaign
supplants "Choice of a New Generation" as work proceeds on new Pepsi advertising for the '90s.

Mountain Dew growth continues, supported by the antics of an outrageous new Dew Crew
whose claim to fame is that, except for the unique great taste of Dew, they've "Been there, Done
that, Tried that."
1993 – Brand Pepsi introduces its slogan, “Be young. Have fun. Drink Pepsi.” Pepsi- Cola profit
surpass One billion dollar. Pepsi introduces an innovative 24 – can multi pack that satisfies
growing consumer demand for convenient large-size soft drink packaging. “The cube” is easier
to carry than the traditional 24pack and it fits in the refrigerator.
1994 - New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi CEO
Craig Weather up explaining the relationship between freshness and superior taste to consumers.
1995 - In a new campaign, the company declares "Nothing else is a Pepsi" and takes top honors
in the year's national advertising championship.
1996-in February of this year, Pepsi makes history once again, by launching one of the most
ambitious entertainment sites on the World Wide Web. Pepsi world eventually surpasses all
expectations, and becomes one of the most landed and copied, sites in the new media, and firmly
establishing Pepsi‟s presence on the internet.
1997- In the early part of the year, Pepsi pushes into a new era with the unveiling of the
generation next campaign. Generation next is about everything that is young and fresh; a
celebration of the creative spirit. It is about the kind of attitude that challenges the norm with
new ideas, at every step of the way. PepsiCo announces that, effective October 6th, it will spin
off its restaurant to form triton globe restaurant, Inc. including pizza hut, taco bell &Kfc, and it
will be the largest in sales.
1998 - Pepsi celebrates its 100th anniversary. PepsiCo chairman and CEO Roger A.Enrico
denoted his salary to provide scholarship for children of PepsiCo employees. Pepsi introduces
Pepsi One- the first one calorie drink without that diet taste. PepsiCo acquires Tropicana
Products from Seagram Company Ltd., the biggest acquisition ever undertaken by PepsiCo.
Frito-Lay becomes the snack chip leader in South and Central America as it enters a joint venture
with Empreseas Polar SA of Venezuela.
1999 - Tropicana juices enter the India market for the first time.

2000 - PepsiCo, Inc. reaches agreement to acquire a majority stake in South Beach Beverage
Company, whose highly innovative SoBe brand has made it one of industry's most successful
companies.
2001 - PepsiCo merges with The Quaker Oats Company.
2002 -Quaker Oatmeal celebrates the 125th anniversary of the nation's number-one choice for a
nutritious, hot breakfast cereal.
2003 - Pepsi-Cola launches Sierra Mist in the United States. Frito-Lay removed trans fat from
nearly its entire snack chips portfolio, including Lay's potato chips, Tostitos tortilla chips and
Cheetos cheese flavored snacks. Pepsi-Cola trademark turns 100 years old.
2004 - PepsiCo publishes its first Corporate Citizenship report in the 2003 Annual Report.
2005 - PepsiCo celebrates its 40th anniversary.
2006 - Pepsi celebrates its participation in its 20th consecutive Super Bowl. Indra Nooyi named
chief executive officer of PepsiCo. Pepsi acquires IZZE Beverage Company. PepsiCo announced
its intent to acquire Naked Juice Company and the New Zealand snack company Bluebird Foods.
PepsiCo completes the acquisition of Stacy's Pita Chip Co.
2007 - PepsiCo introduces Performance with Purpose, making it one of the first contemporary
companies to recognize the important interdependence between corporations and society.
PepsiCo and Pepsi Americas jointly acquire Sandora, a leading juice company in Ukraine.
2008 - PepsiCo announces plans to invest US $1 billion in China over the next four years as part
of the strategy to expand in emerging markets and broaden the portfolio of locally relevant
products.
2009 - PepsiCo and Calbee Foods Company announce a strategic alliance to make and sell a
wide range of food products in Japan. PepsiCo introduces the first climate-friendly vending
machines to the United States.
2010 - PepsiCo completed the acquisition of The Pepsi Bottling Group, Inc. and PepsiAmericas,
Inc., its two largest anchor bottlers. PepsiCo announces its intent to acquire Russia's Wimm-Bill-

Dann, Russia's leading branded food-and-beverage company. AMP Energy Juice launches across
the United States.
2011 - PepsiCo and Tingyi Holding, one of the major food and beverage companies in China,
announce an agreement to form a strategic alliance in China. PepsiCo acquires Mabel, a leading
producer of cookies, crackers and snacks in Brazil.
2012 - Diet Mountain Dew, Brisk and Starbucks ready-to-drink beverages join PepsiCo's
portfolio of billion-dollar brands, bringing the total to 22. Pepsi launches reduced-calorie cola
innovation Pepsi Next.
2013 - Müller Quaker Dairy, a joint venture between PepsiCo and The Müller Group, open a
new state-of-the-art yogurt manufacturing facility in Batavia, New York.
As per the latest news new non-cola beverage sweetened with stevia and sugar will be launching
in US this year. While cola products combining stevia and sugar will be tested in the other
markets.
PepsiCo mission
PepsiCo‟s mission is to be the world's premier consumer Products Company focused on
convenient foods and beverages. They seek to produce financial rewards to investors as they
provide opportunities for growth and enrichment to their employees, business partners and the
communities in which they operate. And in everything they do, PepsiCo strive for honesty,
fairness and integrity.
PepsiCo Vision
"PepsiCo's responsibility is to continually improve all aspects of the world in which we
operate - environment, social, economic - creating a better tomorrow than today."
PepsiCo‟s vision is put into action through programs and a focus on environmental stewardship,
activities to benefit society, and a commitment to build shareholder value by making PepsiCo a
truly sustainable company.

PepsiCo Business Segments
The entire business operation is organized into six reportable segments (also referred to as
divisions)
1. Frito-Lay North America (FLNA).
2. Quaker Foods North America (QFNA).
3. Latin America Foods (LAF), which includes all of our food and snack businesses in Latin
America.
4. PepsiCo Americas Beverages (PAB), which includes all of our North American and Latin
American beverage businesses.
5. PepsiCo Europe (Europe), which includes all beverage, food and snack businesses in
Europe and South Africa.
6. PepsiCo Asia, Middle East and Africa (AMEA), which includes all beverage, food and
snack businesses in AMEA, excluding South Africa.
PepsiCo Brands & Products
PepsiCo have a complementary food and beverage portfolio that provide more choices for
customers, and drives lower costs, productivity enhancements and new capabilities. PepsiCo's
product mix consists of 63 percent foods, and 37 percent beverages. The primary identifier of a
food and beverage industry main brand is annual sales over $6 billion. As of 2009, 21 PepsiCo
brands met that mark: Pepsi, Mountain Dew, Lay's,Gatorade, Tropicana, 7 Up, Doritos, Lipton
Teas, QuakerFoods, Cheetos, Mirinda,Ruffles, Aquafina, PepsiMax, Tostitos, Sierra Mist, Fritos,
and Walkers.

Competitors
PepsiCo beverage, food and snack products are in highly competitive industries and markets and
compete against products of international beverage, food and snack companies like them, operate
in multiple geographies, as well as regional, local and private label manufacturers and other
value competitors. The Coca-Cola Company is the primary beverage competitor. Other beverage,
food and snack competitors includes DPSG, Kellogg Company, Kraft Foods Group, Inc.,
Mondelez International, Inc., Monster Beverage Corporation, Nestlé S.A., Red Bull GmbH and
Snyder‟s-Lance, Inc.
PepsiCo India: Introduction
PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab Agro Industrial
Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi
until 1991 when the use of foreign brands was allowed; PepsiCo bought out its partners and
ended the joint venture in 1994. In 1994 Pepsi became Independent Pepsi having 1500 crores
turnover in India and having 33 factories. PepsiCo India offers consumers a wide-ranging
portfolio of enjoyable and wholesome products
Pepsi Indian Products are divided into 3 categories:
 ”The fun for you” products that include soft drinks and snack foods
 “The better for you” products that includes Diet Pepsi;
 “Good for you” products consist of nutrition based products like Tropicana fruit juice.
It has set up a fully integrated operation in India. Manufacturing, R&D, marketing,
distribution and functions covering fruits vegetables processing, export snack food beverages and
restaurant. PepsiCo India is driven by its global commitment to sustainable growth, Performance
with Purpose, which works on four planks of replenishing water, partnering with farmers, waste
to wealth and healthy kids. In 2009, PepsiCo India achieved a significant milestone, by
becoming the first business to achieve „Positive Water Balance‟ in the beverage world, a fact
verified by Deloitte Touché Tohmatsu India Pvt. Ltd. The company has been Water Positive
since then.
All Pepsi business in India is either in Industries with backward linkage with the farmers or
in service industries. Pepsi is planning a conscious effort to shift the manufacturing base of some
of its raw materials, packaging and key ingredients into India, so that India becomes a hub

server. Pepsi has setup a concentrated plant at Sangrur district in Punjab with an investment of
about 12 Crores. This is the first Pepsi plant outside the western world. One of the largest
multinational investors in the country, PepsiCo has established a business which aims to serve
the long term dynamic needs of consumers in India. PepsiCo India and its partners have invested
more than U.S. $1 billion since the company was established in the country. PepsiCo provides
direct and indirect employment to 150,000 people including suppliers and distributors.
Large investor in India with strong brands: PepsiCo has been consistently investing in India,
in the areas of product innovation, increasing manufacturing capacity, ramping up market
infrastructure, strengthening supply chain and expanding company‟s agriculture programme. The
company has built an expansive beverage and snack food business supported by 37 beverage
plants and 3 food plants. In two decades, the company has been able to organically grow eight
brands each of which generate Rs. 1000 crores or more in estimated annual retail sales and are
household names, trusted across the country.
Model partnership with over 24,000 farmers: PepsiCo India has pioneered and established a
model of partnership with farmers and now works with over 24,000 happy farmers across nine
states. More than 45 percent of these are small and marginal farmers with a land holding of one
acre or less. PepsiCo provides 360-degree support to the farmer through assured buy back of
their produce at pre-agreed prices, quality seeds, extension services, disease control packages,
bank loans, weather insurance, and the latest technological practices. The association with
PepsiCo India has not only raised the incomes of small and marginal farmers, but also their
social standing.
Global leader in water conservation: In 2009, PepsiCo India achieved a significant milestone,
by becoming the first business to achieve „Positive Water Balance‟ in the beverage world, and
has been Water Positive since then. Through 2013, the company saved more that it consumed in
its manufacturing operations. The company made this possible through innovative irrigation
practices like direct seeding, community water recharging initiatives, and by reducing the
consumption of water in its manufacturing facilities. PepsiCo is lauded for its efforts for water
conservation and has received numerous awards such as CII National award for water
management, Water Digest award for water practices and Golden Peacock award for water
conservation amongst others.

Care for the environment: PepsiCo India is now focused on reducing its carbon footprint. More
than 40 per cent of its energy is today generated from renewable sources such as bio mass and
rice husk boilers and wind turbines. Initiatives such as reduction in use of chemicals, eco-
friendly packaging initiatives and efficient waste management help reduce load on the
environment. PepsiCo in partnership with the NGO Exnora and local municipalities has also
been working on a unique waste collection and treatment program called „Waste-to-Wealth‟. The
award winning programme has positively impacted more than 5,00,000 people.
Exemplary employment practices: PepsiCo India provides direct and indirect employment to
almost 2,00,000 people. The company believes in providing employment and growth
opportunities to local talent. Its „College of Leadership‟, ensures early identification of talent,
and employees‟ focused development through critical experiences. PepsiCo firmly believes that
encouraging diversity means encouraging policies and systems that respect people‟s special
needs. Not only does PepsiCo have a vibrant and diverse workforce, it takes the utmost care to
make dynamic business leaders of its employees and foster their career and personal growth
through differentiated experiences and a robust leadership development model.
Beverage products offered by PepsiCo India Holdings Pvt. Ltd., Bangalore
There are four types of beverage products offered by Bangalore unit of PepsiCo.
1. Carbonated soft drinks: Pepsi, Mirinda, 7up, Mountain Dew.
2. Non-Carbonated fruit based drinks: Slice, Tropicana twister Orange/apple taste.
3. 100% fruit Juices: Tropicana 100% fruit juice.
4. Packaged drinking water: Aquafina.
5. Soda drinks: Lehar Evervess Soda.
4 CORPORATE OFFICE & HEAD OFFICE
Corporate Office: PepsiCo India Holdings Private Limited,
2nd
Floor, Tower A, Global Business Park, M.G. Road,
Sikenderpur, Gurgaon, Haryana, 122002

Head Office: PepsiCo India comes under AMEA (Asia, Middle East, and Africa) region.
PepsiCo India Holdings Private Limited,
3B, DLF Corporate Park, 'S' Block, Qutab Enclave,
Phase-III, Gurgaon – 122002, Haryana, India
Tel: 91-124-2880699
There are 4 units in India. They are
1) Karnataka & Kerala
2) Tamil Nadu
3) Mumbai
4) Andra Pradhesh & Telugana

5 Financial performance of PepsiCo -2014
PEPSICO’S BUSINESS SEGMENTS
PepsiCo derives its revenues from the following six segments:
1) Frito-Lay North America
2) Quaker Foods North America

3) Latin America Foods
4) Americas Beverages
5) Europe
6) Asia, Middle East and Africa
Segment performance:
Frito-Lay North America: The Frito-Lay North America segment comprises branded snack
foods such as Lay‟s chips and Doritos tortilla chips. Net revenues for the segment grew 4%,
driven by volume growth and favorable pricing. FLNA‟s net revenue was $14.5 billion, $14.1
billion and $13.6 billion in 2014, 2013 and 2012, respectively, and approximated 22% of our
total net revenue in 2014 and 21% of our total net revenue in both 2013 and 2012.
Quaker Foods North America: The Quaker Foods North America segment, which includes
cereals, rice, pasta, and other branded products, witnessed a 1% decline in revenues as higher
volumes were offset by an unfavorable product mix. QFNA‟s net revenue was $2.6 billion in
each of 2014, 2013 and 2012, and approximated 4% of our total net revenue in each of 2014,
2013 and 2012.
Latin America Foods: LAF makes, markets, distributes and sells a number of snack food brands
including Doritos, Cheetos, Marias Gamesa, Ruffles, Emperador, Saladitas, Lay‟s, Rosquinhas
Mabel, Elma Chips and Sabritas, as well as many Quaker-branded cereals and snacks. LAF‟s net
revenue was $8.4 billion, $8.3 billion and $7.8 billion in 2014, 2013 and 2012, respectively, and
approximated 12% of our total net revenue in each of 2014, 2013 and 2012.
Americas Beverages: PAB makes, markets, distributes and sells beverage concentrates, fountain
syrups and finished goods under various beverage brands including Pepsi, Gatorade, Mountain
Dew, Diet Pepsi, Aquafina, 7UP (outside the United States), Diet Mountain Dew, Tropicana
Pure Premium, Sierra Mist and Diet 7UP (outside the United States). PAB also, either
independently or in conjunction with third parties, makes, markets and sells ready-to-drink tea
and coffee products through joint ventures with Unilever (under the Lipton brand name) and
Starbucks, respectively. PAB‟s net revenue was $21.2 billion, $21.1 billion and $21.4 billion in
2014, 2013 and 2012, respectively, and approximated 32% of our total net revenue in both 2014
and 2013, and 33% in 2012

European segment :. Europe‟s net revenue was $13.3 billion, $13.8 billion and $13.4 billion in
2014, 2013 and 2012, respectively, and approximated 20%, 21% and 20% of our total net
revenue in 2014, 2013 and 2012, respectively.
Asia, Middle East and Africa segment: AMEA makes, markets, distributes and sells a number
of leading snack food brands including Lay‟s, Kurkure, Chipsy, Doritos, Cheetos and Crunchy
through consolidated businesses as well as through noncontrolled affiliates. Further, either
independently or in conjunction with third parties, AMEA makes, markets, distributes and sells
many Quaker-branded cereals and snacks. AMEA also makes, markets, distributes and sells
beverage concentrates, fountain syrups and finished goods under various beverage brands
including Pepsi, Mirinda, 7UP, Mountain Dew, Aquafina and Tropicana. AMEA‟s net revenue
was $6.7 billion, $6.5 billion and $6.7 billion in 2014, 2013 and 2012, respectively, and
approximated 10% of our total net revenue in each of 2014, 2013 and 2012.
INCOME STATEMENT
Currency in
Millions of US
Dollars
As of:
Dec 31
2011
Dec 29
2012
Dec 28
2013
Dec 27
2014
Revenues 66,504.0 65,492.0 66,415.0 66,683.0
TOTAL REVENUES 66,504.0 65,492.0 66,415.0 66,683.0
Cost Of Goods Sold 31,547.0 31,291.0 31,243.0 30,884.0
GROSS PROFIT 34,957.0 34,201.0 35,172.0 35,799.0
Selling General & Admin Expenses, Total 24,449.0 24,691.0 25,194.0 25,708.0
Depreciation & Amortization, Total 133.0 119.0 110.0 92.0
OTHER OPERATING EXPENSES, TOTAL 24,582.0 24,810.0 25,304.0 25,800.0
OPERATING INCOME 10,375.0 9,391.0 9,868.0 9,999.0
Interest Expense -856.0 -899.0 -911.0 -909.0
Interest And Investment Income 57.0 91.0 97.0 85.0
NET INTEREST EXPENSE -799.0 -808.0 -814.0 -824.0
EBT, EXCLUDING UNUSUAL ITEMS 9,576.0 8,583.0 9,054.0 9,175.0

Merger & Restructuring Charges -742.0 -279.0 -163.0 -418.0
EBT, INCLUDING UNUSUAL ITEMS 8,834.0 8,304.0 8,891.0 8,757.0
Income Tax Expense 2,372.0 2,090.0 2,104.0 2,199.0
Minority Interest In Earnings -19.0 -36.0 -47.0 -45.0
Earnings From Continuing Operations 6,462.0 6,214.0 6,787.0 6,558.0
NET INCOME 6,443.0 6,178.0 6,740.0 6,513.0
NET INCOME TO COMMON INCLUDING EXTRA ITEMS 6,436.0 6,171.0 6,732.0 6,503.0
NET INCOME TO COMMON EXCLUDING EXTRA ITEMS 6,436.0 6,171.0 6,732.0 6,503.0
BALANCE SHEET
Pepsico, Inc. may have more financial risk than other companies in the Beverages industry as it
is one of the most highly leveraged with a Debt to Total Capital ratio of 62.22%. This ratio
actually increased over the last year. However, an examination of near-term assets and liabilities
shows that, even though there are not enough liquid assets to satisfy current obligations,
Operating Profits are more than adequate to service the debt. Accounts Receivables are typical
for the industry, with 31.97 days worth of sales outstanding. Last, Pepsico, Inc. is among the
least efficient in its industry at managing inventories, with 38.61 days of its Cost of Goods Sold
tied up in Inventories.
Currency in
Millions of US Dollars
As of:
Dec 31
2011
Dec 29
2012
Dec 28
2013
Dec 27
2014
Assets
Cash And Equivalents 4,067.0 6,297.0 9,375.0 6,134.0
Short-Term Investments 358.0 322.0 303.0 2,592.0
TOTAL CASH AND SHORT TERM
INVESTMENTS
4,425.0 6,619.0 9,678.0 8,726.0
Accounts Receivable 5,879.0 6,058.0 6,033.0 5,680.0
Other Receivables 1,033.0 983.0 921.0 971.0
TOTAL RECEIVABLES 6,912.0 7,041.0 6,954.0 6,651.0

Inventory 3,827.0 3,581.0 3,409.0 3,143.0
Prepaid Expenses 1,269.0 316.0 968.0 871.0
Deferred Tax Assets, Current 845.0 740.0 716.0 875.0
Other Current Assets 163.0 423.0 478.0 397.0
TOTAL CURRENT ASSETS 17,441.0 18,720.0 22,203.0 20,663.0
Gross Property Plant And Equipment 35,140.0 36,162.0 36,961.0 36,300.0
Accumulated Depreciation -15,442.0 -17,026.0 -18,386.0
-
19,056.0
NET PROPERTY PLANT AND EQUIPMENT 19,698.0 19,136.0 18,575.0 17,244.0
Goodwill 16,800.0 16,971.0 16,613.0 14,965.0
Long-Term Investments 1,566.0 2,351.0 2,623.0 2,689.0
Loans Receivable, Long Term 159.0 136.0 105.0 93.0
Deferred Charges, Long Term 186.0 195.0 214.0 179.0
Other Intangibles 16,445.0 16,525.0 16,039.0 14,088.0
Other Long-Term Assets 587.0 604.0 1,106.0 588.0
TOTAL ASSETS 72,882.0 74,638.0 77,478.0 70,509.0
LIABILITIES & EQUITY
Accounts Payable 4,083.0 4,451.0 4,874.0 5,127.0
Accrued Expenses 3,876.0 3,892.0 4,034.0 3,968.0
Short-Term Borrowings 3,656.0 1,914.0 3,082.0 980.0
Current Portion Of Long-Term Debt/Capital Lease 2,549.0 2,901.0 2,224.0 4,096.0
Current Income Taxes Payable 192.0 371.0 -- --
Other Current Liabilities, Total 3,798.0 3,560.0 3,625.0 3,921.0
TOTAL CURRENT LIABILITIES 18,154.0 17,089.0 17,839.0 18,092.0
Long-Term Debt 20,568.0 23,544.0 24,333.0 23,821.0
Minority Interest 311.0 105.0 110.0 110.0
Pension & Other Post-Retirement Benefits -- 3,467.0 1,986.0 2,488.0
Deferred Tax Liability Non-Current 4,995.0 5,063.0 5,986.0 5,304.0
Other Non-Current Liabilities 8,266.0 3,076.0 2,945.0 3,256.0
TOTAL LIABILITIES 51,983.0 52,239.0 53,089.0 52,961.0

Preferred Stock Convertible 41.0 41.0 41.0 41.0
TOTAL PREFERRED EQUITY -116.0 -123.0 -130.0 -140.0
Common Stock 26.0 26.0 25.0 25.0
Additional Paid In Capital 4,461.0 4,178.0 4,095.0 4,115.0
Retained Earnings 40,316.0 43,158.0 46,420.0 49,092.0
Treasury Stock -17,870.0 -19,458.0 -21,004.0
-
24,985.0
Comprehensive Income And Other -6,229.0 -5,487.0 -5,127.0
-
10,669.0
TOTAL COMMON EQUITY 20,704.0 22,417.0 24,409.0 17,578.0
TOTAL EQUITY 20,899.0 22,399.0 24,389.0 17,548.0
TOTAL LIABILITIES AND EQUITY 72,882.0 74,638.0 77,478.0 70,509.0
RATIOS (Industry Comparison)
Profitability Ratios:
 Return on Assets – 8.43%
 Return on Equity – 33.75%
 Return on Capital – 12.25%
Asset Turnover Ratios:
 Total Asset Turnover – 0.9
 Accounts Receivables Turnover – 9.3
 Fixed Assets Turnover – 3.8
 Inventory Turnover – 8.5
Credit Ratios:
 Current Ratio – 1.0

 Quick Ratio – 0.8
Long Term Solvency Ratios:
 Total debt/equity – 189.91%
 Total liabilities/ Total assets – 77.04%
6 PEPSICO BRANDS & PRODUCT PORTFOLIO IN INDIA
Foods
PepsiCo‟s foods division Frito-Lay is the leader in the branded salty snack market. All its
products are free of trans-fat and MSG. It manufactures Lay‟s potato chips, Cheetos extruded
snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands. The
company‟s high-fibre breakfast cereal, Quaker Oats and low-fat and roasted snack options
like Aliva increase the number of healthy choices available to consumers.
 Cheetos
 Kurkure
 Lay‟s
 Lehar Namkeen
 Quaker Oats
 Uncle Chipps
Beverages
PepsiCo Beverage product portfolio includes Pepsi, 7UP, Nimbooz, Mirinda, Slice and Mountain
Dew, in addition to low-calorie options such as Diet Pepsi, hydrating and nutritional beverages
such as Aquafina drinking water, isotonic sports drink Gatorade and fruit juices such
as Tropicana and Tropicana 100%.
 7UP
 Aquafina
 Duke's
 Gatorade
 Mirinda
 Mountain Dew
 Nimbooz

 Pepsi
 Slice
 Tropicana.
Comparison between Pepsico and Coca-Cola products
Pepsi Co. Brands Coca Cola’s Brands
Pepsi Coke
7-up Thums up
Mountain Dew Sprite
7up Ice Citra
Mirinda Orange Fanta
Mirinda Lemon Limca
Slice/ Slice Alphonso Maaza
Aquafina (water) Kinley(water)
Lehar Soda Kinley(soda)
Diet Pepsi Diet Coke
7 ORGANIZATIONAL STRUCTURE
Organizational Hierarchy of PepsiCo India Holding Private Ltd.: The head office of
PepsiCo India is situated in Gurgaon, Haryana. In PepsiCo Bangalore there is only sales
department with HR and marketing being the support system. 90 % of employees in Karnataka
Kerala region come under sales department. The rest 10 % include Human resource, marketing
and IT.

For every region (For example, Karnataka, Kerala etc), there is a unit manager under whom there
are many Territory Development Managers (TDM). Karnataka is divided into different territories
and TDMs are responsible for sales in their particular territory. There are many Customer
Executives (CE) under each TDM. The next level includes the frontline employees called Pre
Sales Representatives (PSR).
UM-Unit Manager: In charge of day to day operations and supervisions of all the functions
within the unit including operations, logistics, sales and distribution and marketing. The unit
manger reports to the CEO India at Gurgaon.
TDM- Territory Development Manager: TDM is the in charge of the sales and distribution
network of particular territory within a zone. Responsible for the daily, monthly and annual sales
within the territory decides the daily schemes for products and incentives for salespersons'. He is
also responsible for cost effectiveness, profit generation and profit maximization within the
territory.
MDM-Marketing Development Manager: MDM is the responsible for all the marketing
activities and their effectiveness within the territory. Decide the format and time frame of the
marketing and the promotional activities and the incentives given to the retailers.

SDM- Sales Development Manager: He is responsible for maintaining cooler purity i.e. to
ensure that the Pepsi coolers consist of their products only. Coolers should also be 100%
charged.
ASM-Area Sales Manager: Reports to the TDM. He is directly responsible for any issues in the
area and is supposed to ensure the smooth functioning of the entire sales and distribution
network in the area. ASM is responsible for timely disposable of any issue faced by the retailers.
He decides and approves the boards, displays and hoardings in the area.
SM- Sales manager
MDC-Marketing Development Coordinator: Reports to MDM, and is in charge of carrying
out all the marketing activities in the area. He is responsible for the execution and success of
marketing and promotional activities, Coordinates with outside agencies for displays, boards,
checks conducted in the market. He is also responsible to keep a check on the expenditure of the
marketing activities in the market.
BDM- Business Development Manger
BDC- Business Development Coordinator
Customer executives come under every TDMs, ASMs and MDCs. Each distributor point will
have one CE and PSRs (Pepsi sales representatives) under him.
CE-Customer Executive: He is supposed to report to the ADC and in charge of salespersons.
He is required to visit the market and accompany every salesperson as frequently as possible. He
is the first person to get the information about the market / area and is the first contact if the
salesperson or retailers face issue and responsible for assigning and achieving daily sales target
given to the salespersons.
ME-Marketing Executive: Reports to the MDC and is responsible for daily functioning of the
marketing activities in the including awareness of promotions in the market and the response in
the market.
Salesperson: They are the most important asset for the company as they are the ones who sell
the products, are responsible for acquiring new customers, and retain the old ones. Their work

also includes informing the retailers about the promotions and the new scheme launched. They
are also required to push for the sale of new product launched in the market and make sure that
the retailers are following the company guidelines regarding the launch and the maintenance of
visi coolers. They report to the CE.
Marketing Assistant: Reports to the ME and is responsible for the distribution and usage of the
displays and boards in the area. Also has to check whether retailers are following the guidelines
of the company regarding promotional displays, other displays and displays in the visicoolers.
They report to the ME.
Recruitment Sources:
1. Internal reference-20%
2. Internal job posting-30%
3. Naukri-10%
4. Consultance-40%
Training Process: For all freshers, the HR team arrange a 15 days training programme. They
call it as 15 days baby care programme. They send the fresher‟s to the market for 15 days with a
CE (buddy). After learning the market, freshers have 3 days of training session. For all CEs &
sales managers, now Pepsi implemented a 4DX programme (4 discipline execution program).
Performance appraisal: Performance management program.
1. Objectives (should be smart)
2. Managerial rating
3. Calibration
4. Focal pointing
Industrial Relations: The Company has a very cordial atmosphere. It is mainly a people Focus
Company than engineering or technical oriented. It is informal during approach and formal
during results. The management and union have joined hands for the achievement of
organizational objectives.
Leave system:
 Personal leaves- Unlimited

 Sick leaves- 30 days
 Maternity leave- 6 months
 Sabbatical- If he complete 3 years, he can take leave for 6 months to 1 year. No salary.
 Annual leaves- 26 days
Motivation: Every unit has their own sales driven tactics, engagement calendar-celebrating
days, rewards and recognition. So it will vary from units to units. Newsletter every week
congratulating 5 top performing customer executives, contests, incentives, meeting coffee with
Unit Manager, Team outing, cricket match, family day etc… are some of the other usual
activities.
Business model of PepsiCo
Diversified business model: PepsiCo Inc. (PEP) has a diversified business model with a strong
presence in food and beverage products. In a scenario where carbonated soft drinks have been
continually declining, PepsiCo‟s significant presence in the snack food category gives it an edge
over its closest rival, The Coca-Cola Company (KO), which is heavily dependent on sparkling or
carbonated beverages. In 2014, PepsiCo‟s food business accounted for 52% and its beverage
business accounted for 48% of the company‟s $66.4 billion revenues.
Complementary products: PepsiCo benefits from its presence in two complementary
categories: food and beverages. There is a high coincidence of purchase between these two
categories. According to Information Resources, Inc. (or IRI), a market research company, 54%
of US consumers who buy salty snacks also buy a beverage in the same basket. For instance,
PepsiCo states that when Frito-Lay snacks are merchandised along with Pepsi carbonated soft
drinks (or CSDs), it results in higher sales.
PEPSICO’S THREE-CHANNEL DISTRIBUTION NETWORK
PepsiCo Inc. (PEP) is a leading food and beverage company with an impressive global presence.
The company‟s products reach the market through the following three channels: direct store
delivery (or DSD), customer warehouse, and third-party distributor networks. PepsiCo chooses
the relevant distribution channel based on customer needs, product characteristics, and local
trade practices.

Direct store delivery: Under the DSD system, PepsiCo delivers products directly to retail stores.
Of the three channels, DSD enables PepsiCo to merchandise with maximum visibility. It‟s more
suitable for products that are restocked often and are sensitive to promotions and marketing.
Customer warehouse: The customer warehouse system is a less expensive distribution channel.
It‟s ideal for products that are less fragile and perishable, have lower turnover, and are not
purchased impulsively.
Third-party distributor networks: PepsiCo distributes food and beverage products to
restaurants, businesses, schools, and stadiums through third-party food service and vending
distributors and operators.
There are two types of sales: Primary sales and Secondary sales. Both primary and secondary
sales are important for the company. Primary sales happen between the manufacturer and the
distributor. That is, from the company, products are made available to the distributors. The
products are taken from the factory at Nelamangala, Bangalore.
Pepsico India Holdings Pvt Ltd (Factory), 34 Km Stone, National Highway,
Teppada Begur, Nelamangala, Bangalore – 562123.
In order to decide on the distribution point location, company will look into certain factors like
how many outlets are there in and around that region, number of vehicles required, manpower
required, stocks needed etc. After deciding on such factors, a distribution point will be selected.
For each distribution point there will be one CE and 2-3 PSRs depending on the requirement.
Secondary sales happen between distributors and retailers. It means generating sales from
market. PSRs are responsible for generating orders. They go to different outlets in the region,
speak with the customers, convince them and get the orders. They are considered as the key
people as they are the frontline employees who have direct contact with the customers (retailers).
They only know the pulse of the market. PSRs have a vital role in maintaining route, increasing
Pepsi share, increasing cooler effectiveness etc. In order to decide on the sales promotion
activities, their contribution is very important. Some customers ask for additional benefits or
they‟ll ask why you are not providing the benefits which the other company (competitor)

provides. Likewise, PSRs can understand customer expectations and what the competition is
doing, which can be used by the company to decide on promotional activities.
8 FUNCTIONAL DEPARTMENTS
There are 5 main functional departments in PepsiCo
 Marketing Department
 Finance and account Department
 Purchase & sales Department
 Service Department
 Personnel Department
Marketing Department
This department is responsible for all marketing aspects of retail operation. They are the one who
are mostly into all with the current and prospective customers. This department is headed by a
general manager who is assisted by 2 assistant managers who are in charge of field sales and
other corporate sales. They are further assisted by a team of field sales executive, and sales
executives. The structure of this department is given below:

Finance & Accounts Department
This department is responsible for preparation of all account financial aspects of the dealership and
retail operations. This department is under General Manager who is assisted by a finance manager.
Accountants, a cashier, and an EDP/Records officer again assist the finance manager.

PURCHASE & SALES DEPARTMENT:
Purchase department takes care of total purchase thorough respective heads to the purchase
department. Organization structure of sales department is as shown
 TDM (territory development manager)
 ADC (Area Development Co-cordinator)
 CE (Customer Executive)
 PSR (Pre Sales representatives)
The number of Customer Executives (CEs) and PSRs depends on the size and structure of
territory.
SERVICES DEPARTMENT
This department is chained with the responsibility of maintaining service standards. They have to
maintain customer satisfaction and after sales service, a long relationship with the customer. It is
again headed by General Manager, who is further assisted by the manager in charge of sales and
services. Here the main objective is to satisfy the customer. In each and every department this
service department plays a major role.

PERSONNEL DEPARTMENT
Personnel management department is responsible for offering service and coordination of the
different activities of various departments. It is again headed by the General Manager who is
assisted by an office manager. It also includes an office secretary, a receptionist, stenographers
and housekeeping assistants. The information flows from the higher superiority to the lower
subordinate.
Objectives of Personnel Department:
 Growth and satisfaction of the employees of the organization
 Maintain an organization climate conducive to human growth, satisfaction and
contribution
 To create an environment for team work, and involvement of all personnel for achieving
the company‟s objectives.

9 Porter’s 5 force model
Porters five force model for PepsiCo
Threat of New Entrants
 Indian Government
encourage foreign investors
 Make in India program
 Ease of access to distribution
channel
Intra Industry Rivalry
 Coca-Cola
 Barrier to exit is
high
Bargaining power of
suppliers
 Many suppliers
 Low switching
cost
 Suppliers of
bottling and
packing holds no
power
Bargaining power of
customers
 High population
 Big market
 Many options for
buyers
 Affordable price as
compared to
products like beer
and energy drinks
 Hot climatic
condition
encourages buying
 Lower switching
costThreat of substitutes
 Substantial product
differentiation
 Substitutes like water,
Fresh juices, tea, Beer
etc
 Growing trends of
healthy beverages

10 SWOT ANALYSIS
Strengths
 Product diversity. PepsiCo has several hundreds of brands, which include: carbonated
and noncarbonated drinks, water, savory and whole grain-based snacks. Product
diversification strengthens PepsiCo because it doesn‟t have to rely on few key products
or seasonal sales and isn‟t significantly affected by changes in customer tastes.
 Extensive distribution channel. PepsiCo products are served to more than 10 million
stores per week in more than 200 countries.
 CSR. The firm recognizes its role in a society and engages in education, recycling, water
usage reduction, obesity fighting and other projects through PepsiCo Foundation, thus
increasing its brand awareness and customer loyalty.
 Competency in mergers and acquisitions. The key to PepsiCo business growth is its
successful mergers and acquisitions of beverage, bottling and snacks companies. PepsiCo
acquired such brands as Gatorade, Tropicana, Doritos, Quaker Oats and many others.
 22 brands earning more than $1 billion a year. The company doesn‟t have to rely on
one or two of its product to bring most of the revenues. Instead, Pepsi has 22 brands that
contribute significantly to its income, serving different industries and satisfying various
consumer tastes.
 Successful marketing and advertising campaigns. More than $2 billion spent on
advertising over resulted in PepsiCo‟s growing market share over its main competitors,
including Coca Cola Company, which spent even more on advertising.
 Complementary product sales. In its annual financial report, PepsiCo revealed one of
its studies' results that about 30% of customers who buy its snacks also buy its beverages.
PepsiCo‟s decision to diversify its product range is firm‟s competitive advantage too.
 Proactive and progressive. According to New York Times food industry writer Melanie
Warner, PepsiCo, by many critics, is considered to be most proactive and progressive
food company.
Weaknesses
 Overdependence on Wal-Mart. More than 13% of PepsiCo business revenues come
from Wal-Mart store chain. Wal-Mart has a significant buyer power and can easily

dictate prices over PepsiCo leaving it with very small margins. In addition, if PepsiCo
would lose Wal-Mart it would lose 13% of its revenue and competitive advantage.
 Low pricing. PepsiCo usually prices its products lower than its competitors. Low price is
associated with low quality and PepsiCo products are usually perceived as ones.
 Questionable practices. PepsiCo is using and selling tap water but places view of
mountains on its water bottle labels, thus deceiving people that it is mountain spring
water when it is not. PepsiCo has also been criticized for using water in India with higher
than allowed amount of pesticides in it.
 Weak brand awareness. The Coca Cola Company has the largest share market of
beverages in the world and much stronger brand awareness than Pepsi, placing it at
competitive disadvantage.
 Too low net profit margin. PepsiCo‟s net profit margin is 9.7% compared to Coca
Cola‟s 18.55% and Nestlé‟s 11%.
Opportunities
 Growing beverages and snacks consumption in emerging markets: PepsiCo has made
large investments in BRIC countries to expand its market share as these countries
represent the fastest growing food and beverages markets in the world. If PepsiCo is
successful it will increase its revenues and global market share significantly. In addition,
it will be able to rely less on US market.
 Increasing demand for healthy food and beverages. Due to many programs to fight
obesity, demand for healthy food and beverages has increased drastically. PepsiCo has an
opportunity to further expand its product range with beverages and snacks that have low
amount of sugar and calories.
 Further expansion through acquisitions. So far, PepsiCo has been successful in
acquiring other companies and adding new growing brands to its portfolio.
 Bottled water consumption growth. Consumption of bottled water is expected to grow
both in US (PepsiCo‟s largest bottled water market) and the rest of the world.
 Savory snacks consumption growth. The same opportunity PepsiCo has in growing its
revenue selling snacks as this market is also expected to grow.

Threats
 Changes in consumer tastes. Consumers around the world become more health
conscious and reduce their consumption of carbonated drinks, drinks that have large
amounts of sugar, calories and fat.
 Water scarcity. Water is becoming scarcer around the world and increases in both cost
and criticism for PepsiCo over the large amounts of water used for production.
 Decreasing gross profit margin. PepsiCo‟s gross profit margin was decreasing over the
past few years and may continue to decrease due to higher water and other raw material
costs.
 Strong dollar. More than 50% of PepsiCo‟s income is from outside US. Due to strong
dollar performance against other currencies PepsiCo‟s income should fall.
 Increased competition from Snyder’s. Snyder‟s increase its US savory snacks market
share by 1.6% and almost all of it was taken from PepsiCo
11 FUTURE GROWTH AND PROSPECTS
PepsiCo announced that its targeted investment is of Rs. 33000 cores in India by 2020.Hence this
investment will further strengthen PepsiCo‟s position as one of India‟s leading food and
beverage companies. Strategic imitative will fund investments in innovation manufacturing,
selling and go-to-market infrastructure and agriculture.
Innovation: PepsiCo will continue to expand the range of foods and beverages in its portfolio to
cater to the wide and evolving needs of Indian consumers. PepsiCo has a long history of
successfully innovating for the Indian market, and PepsiCo India already has organically built
eight brands that generate Rs. 1,000 crores or more in estimated annual retail sales (Pepsi, Lay's,
Kurkure, 7UP, Slice, Mirinda, Mountain Dew and Aquafina).
Manufacturing: PepsiCo plans to significantly increase manufacturing capacity to meet the
growing demand for its foods and beverages. PepsiCo and its partners plan to expand their
production capacity in India to more than double current levels by 2020.

Infrastructure: PepsiCo and its partners plan to ramp up selling and delivery infrastructure
throughout the country, with a particular focus on rural market expansion. As part of this
strategic initiative, PepsiCo will work with its partners to deploy new technologies designed to
enhance service to retail customers and increase efficiency across go-to-market systems.
Agriculture: Resources will be allocated to expand PepsiCo's well-known collaborative farming
program, which provides farmers with access to good quality seeds, technical agronomic
expertise, bank loans and crop insurance. This program currently reaches 24,000 farmers,
positively impacting their income and social standing in addition to strengthening the reliability
and quality of PepsiCo's supply chain.
PepsiCo Chairman and Chief Executive Officer Indra Nooyi said: "Most importantly, our
investments will be aligned with India's interests," Nooyi added. "We will be guided by
Performance with Purpose, PepsiCo's vision for building a profitable and sustainable 21st
century corporation that is a good investment for our shareholders, a good environment for our
employees, a good citizen in our communities and a good steward of our planet's resources. We
believe Performance with Purpose will drive sustained value for PepsiCo and positively
contribute to India's development well into the future."
12 Customers of PepsiCo
PepsiCo‟s customers include authorized bottlers and independent distributors, including food
service distributors and retailers. PepsiCo normally grants its bottlers exclusive contracts to sell
and manufacture certain beverage products bearing its trademarks within a specific geographic
area. Since PepsiCo does not sell directly to the end consumer it relies on and provides financial
incentives to its customers to assist in the distribution and promotion of its products. For its
independent distributors and retailers, these incentives include volume based rebates, these
incentives are referred to as bottler funding and are negotiated annually with each bottler to
support a variety of trade and consumer programmes, such as consumer incentives, advertising
support, new product support and vending and cooler equipment placement. Retail consolidation
and the current economic environment continue to increase the importance of major customers
like restaurants, shopping malls like Reliance fresh, More, etc.

SECTION: 2
PROBLEM CENTERED STUDY OF THE ORGANIZATION

CHAPTER 1: RESEARCH DESIGN
1. TITLE OF THE STUDY:
“A Project Report on “Acceptance of Tropicana Slice Alphonso in Bangalore Market”
2. BACKGROUND OF STUDY
PepsiCo India Holdings Pvt. Ltd has been trying to increase its mango juice market share as well
as its brand dominance in India. According to the marketing survey conducted by PepsiCo south
india unit they found that competitor Coca-Cola holds 58.6% of the market share in mango juice
segment and customer prefers Maaza more as compared to Slice. So in order to gain more
market share PepsiCo India introduced a new product know as Tropicana Slice Alphonso. And
it‟s a premium product of normal Slice.
3. STATEMENT OF THE PROBLEM
The company doesn‟t have a clear picture of the preferences of the customers and how well Slice
Alphonso is performing in the market. So the Bangalore unit of PepsiCo India Holdings Pvt. Ltd
wanted to know the preferences of customers for mango drink brands and awareness level/
Acceptance of Slice Alphonso among the customers living in the area of operation so that it
could fine tune its strategies accordingly.
4. RELEVANCE OF THE STUDY
The study will help PepsiCo India Holdings Pvt. Ltd to assess preferences of customers for
different brand of cold drinks in general and preferences for mango juice (Slice Alphonso) in
particular. This will further help PepsiCo to fine tune its marketing strategy for the areas falling
under the operation.
5. OBJECTIVES OF THE STUDY:
Primary Objectives:
 To find out the penetration of Tropicana Slice Alphonso in the retail outlets of South
Bangalore with reference to retailers. .
 To study the awareness level, satisfaction level and preference for Slice Alphonso among
the customers and retailers.
 To assess the Mind share and Heart Share of PepsiCo.

6. SCOPE OF THE STUDY:
The study was carried out to the population living in the areas of operation under PepsiCo India
Holdings Pvt. Ltd. Bangalore. The study was conducted from 2nd
April 2015 to 28th
May 2015.
The survey was carried out in two territories: Indira Nagar and Rajaji Nagar.
7. SOURCES OF DATA
Collected data includes both primary and secondary data. Primary data was collected from the
customers/consumers and retailers in Indira Nagar and Rajaji Nagar by administering structured
questionnaires. Secondary data was collected from the websites.
8. POPULATION
The population consists of all 400 kirana stores and customers in South Bangalore region.
9. SAMPLE SIZE:
The sample size is 100, among this 50 are from the owners of the retail stores ( kirana stores) in
the Indira and Rajaji nagar and 50 are the consumers. .
10. TOOLS FOR DATA COLLECTION:
The primary data has been collected by administering questionnaires to the customers and
retailers (kirana stores) of Indira nagar and Rajaji nagar region. The structured questionnaires
were used in survey.
11. TOOLS FOR ANALYSIS
Percentage Analysis is the tool used for data analysis.
12. LIMITATION OF STUDY
 Reluctance of customers in general to fill the questionnaire
 Reluctance of the older people and females to fill the questionnaire.
 Communication was not that effective because of the language problem
 Time frame required was not enough to survey more number of markets.

Chapter 2: DATA ANALYSIS & INTERPRETATIONS

DATA ANALYSIS & INTERPRETATION OF RETAILER BASED
SURVEY
1. SHOWING HOW WOULD RETAILERS RATE THE SALE OF SLICE AND SLICE
ALPHONSO?
Table No:1 sales rate of Slice and Slice Alphonso
Frequency Percent Valid Percent Cumulative Percent
Valid Extremely Good 4 8.0 8.0 8.0
Good 24 48.0 48.0 56.0
Average 17 34.0 34.0 90.0
Poor 5 10.0 10.0 100.0
Total 50 100.0 100.0

Interpretation: The data showing that sales of Slice and Slice Alphonso got good response from
the customer group, 48% of the retailers agreed that sale of Slice and Slice Alphonso is good,
34% of the retailers agreed that sale of Slice and Slice Alphonso is average and only 10% says
Slice and Slice Alphonso sales is poor
2. SHOWING THE RETAILERS AWARENESS BETWEEN SLICE & SLICE ALPHONSO
Table No:2 The retailers awareness between Slice & Slice Alphonso
Valid Yes 45 90.0 90.0 90.0
No 5 10.0 10.0 100.0
Total 50 100.0 100.0
Interpretation: From the Bar-Chart we can see that most of the retailers are well aware about
the difference between Slice and Slice Alphonso. 90% of the retailers know the difference

between Slice and Slice Alphonso whereas only 10% don‟t know the difference between Slice
and Slice Alphonso.
3. SHOWING THE CUSTOMER PREFERENCE TOWARDS DIFFERENT MANGO DRINKS
Table No:3 Preferences For Different Types Of Mango Drinks
Valid Slice Alphonso 5 10.0 10.0 10.0
Slice 25 50.0 50.0 60.0
Maaza 15 30.0 30.0 90.0
Frooti 3 6.0 6.0 96.0
Others 2 4.0 4.0 100.0
Total 50 100.0 100.0
Interpretation: The above bar-chart clearly shows that 50% of the retailers agree population
preferred Slice over others whereas 30 % and 10% of the customer preferred Maaza and Slice
Alphonso respectively and only 6% customer shown interest in Frooti

4. SHOWING AGE GROUP CONSUMES THE SLICE ALPHONSO MOSTLY
Table No:4 The age group consumes Slice Alphonso mostly
Valid Kids 3 6.0 6.0 6.0
Teenagers 23 46.0 46.0 52.0
Youth 15 30.0 30.0 82.0
Adults 9 18.0 18.0 100.0
Total 50 100.0 100.0
Interpretation: From the Bar Chart we can clearly see that the teenagers and youth are the
potential customers of Slice Alphonso. They constitute about 46 and 30 percent of the retailer‟s
votes respectively whereas only 18% retailer votes for adults. And for retailers, kids are not the
potential customers, and only 6% of kids buy Slice Alphonso.

5. SHOWING THE MAIN REASON WHY THE CUSTOMER PREFER SLICE ALPHONSO
Table No:5 The Reason that influences to buy Slice Alphonso
Valid High Pulp content 21 42.0 42.0 42.0
Taste & Flavour 18 36.0 36.0 78.0
Brand Name 8 16.0 16.0 94.0
Quality 3 6.0 6.0 100.0
Total 50 100.0 100.0
Interpretation: From the above graph it is clear that High pulp content, Taste & Flavour, Brand
name are the most preferred reasons for choosing Slice Alphonso; these three parameters have
got 42%, 36%, 16% of the retailers votes, whereas only 6% choose Slice Alphonso because of
quality.

6. SHOWING MAJOR COMPETITOR FOR SLICE ALPHONSO
Table No:6 The major competitor for Slice Alphonso
Frequency Percent Valid Percent
Cumulative
Percent
Valid Maaza 28 56.0 56.0 56.0
Fresh Juice 12 24.0 24.0 80.0
Local Brands 10 20.0 20.0 100.0
Total 50 100.0 100.0
Interpretation: From the above graph it is clear that the main competitor for Slice Alphonso is
Maaza and along with Maaza, local brands and fresh juices are also a competitor for Slice
Alphonso , 56% of the retailers agree that Maaza is the main competitor for Slice Alphonso and

24% and 20% of the retailers feel that fresh juice and local brand are the main competitor for
Slice Alphonso in the market.
7. SHOWING NUMBER OF BOTTLES OF SLICE ALPHONSO SELL PER DAY
Table No:7 The sale of Slice Alphonso Bottles per day
Valid 1-10 43 86.0 86.0 86.0
11-20 7 14.0 14.0 100.0
Total 50 100.0 100.0
Interpretation: From the graph it is clear that on an average 1-10 bottle of Slice Alphonso are
sold per day. 86% of the retailers agree to that whereas only 14% of the retailer says more than
10 bottles are sold per day.

8. SHOWING CUSTOMERS OPINION REGARDING SLICE ALPHONSO
COMPARED TO OTHER MANGO DRINKS
Table No:8 Showing How customer feel about Slice Alphonso
Valid Very Good 7 14.0 14.0 14.0
Good 25 50.0 50.0 64.0
Average 17 34.0 34.0 98.0
Poor 1 2.0 2.0 100.0
Total 50 100.0 100.0
Interpretation: From the above data it is clear that most of the consumer likes Slice Alphonso;
the data table shows that 14% of the consumer considers that Slice Alphonso is a very good
product, 50% of the consumer feel that it is good and 30% of the consumer feel that the Slice
Alphonso is an average product and 2% dislike the product.

9. SHOWING RETAILERS OPINION REGARDING THE PRICE OF SLICE ALPHONSO
Table No:9 Showing the retailers opinion about price of Slice Alphonso
Valid Very High 23 46.0 46.0 46.0
High 22 44.0 44.0 90.0
Reasonable 5 10.0 10.0 100.0
Total 50 100.0 100.0
Interpretation: According to the mostly retailer opinion the price of Slice Alphonso is high.
46% of the retailers feel that price of Slice Alphonso is very high, 44% feel that price is high and

10% feel that price is reasonable. So the company needs to change the price of the Slice
Alphonso that helps to increase the sales.
10. SHOWING THE RETAILERS OPINION REGARDING PRICE REDUCTION
OF SLICE ALPHONSO
Table No:10 The retailers opinion regarding price reduction of Slice Alphonso
Valid Yes 48 96.0 96.0 96.0
No 2 4.0 4.0 100.0
Total 50 100.0 100.0

Interpretation: From the graph we can see that most of the retailer supports price reduction.
96% of retailers believe if the price of the Slice Alphonso is reduced then the sales will be
increased, whereas 4% retailers believe that price reduction will not cause any increase in sale of
Slice Alphonso.
11. SHOWING WHICH MEDIUM AFFECTS THE SALE OF SLICE ALPHONSO MOSTLY
Table No: Media affects the sales of Slice Alphonso mostly
Valid Television Ads 24 48.0 48.0 48.0
Magazine/Newspaper 5 10.0 10.0 58.0
Display 19 38.0 38.0 96.0
Hoardings 1 2.0 2.0 98.0
Campaigns 1 2.0 2.0 100.0
Total 50 100.0 100.0

Interpretation: In the given data explain that the advertising media is the most prominent than
other media. 48% of the retailer agrees that Television Ads will affect the sale of Slice Alphonso,
whereas 38% of the retailers believe display affect the sale. And only 2% agrees Hoardings and
Campaigns will affect the sale of Slice Alphonso.
12. RETAILERS OPINION ABOUT SLICE ALPHONSO
Showing retailers opinion regarding Slice Alphonso
Valid Fair 3 6.0 6.0 6.0
Good 34 68.0 68.0 74.0
Very Good 10 20.0 20.0 94.0
Excellent 3 6.0 6.0 100.0
Total 50 100.0 100.0
Interpretation: From the above data it is clear that the retailers are satisfied with the Slice
Alphonso product introduced by the PepsiCo; the data table shows that 68% retailer agree that

Slice Alphonso is good, 6% of the retailer have excellent opinion about the product whereas 20%
and 6% of retailer have very good and fair opinion about Slice Alphonso.
13. RETAILER SUGGESTION TO IMPROVE SALE OF SLICE ALPHONSO
Table No: 13 The retailers suggestions to improve the sale of Slice Alphonso
Valid New Scheme 20 40.0 40.0 40.0
Advertisement 10 20.0 20.0 60.0
Regular Supply 20 40.0 40.0 100.0
Total 50 100.0 100.0

Interpretation: According to retailer perception time to time new scheme should be provide and
regular supply is necessary in the market that improve the sale. Company should also provide
better advertisement to improve the sale. These three parameters have got 40%,40%, 20% votes
repectively.
DATA ANALYSIS & INTERPRETATION OF CUSTOMER BASED SURVEY
14. GENDER DISTRIBUTION OF THE RESPONDENTS
Table no: 14 [Gender distribution of the respondents]
Gender Frequency Percent Valid Percent
Cumulative
Percent
Valid Male 28 56.0 56.0 56.
Female 22 44.0 44.0 100.0
Total 50 100.0 100.0

Interpretation; The sample size consisted of 28 male and 22 female from different age groups.
The Bar-Chart above shows the gender distribution of the sample size i.e. 56% of the sample
consisted of male.
15. DISTRIBUTION OF THE RESPONDENTS BASED ON AGE
Table No.: 15 [Distribution of the respondents based on age]
Age group Frequency Percent Valid Percent Cumulative Percent
Valid Below 18 3 6.0 6.0 6.0
18-25 27 54.0 54.0 60.0
26-32 16 32.0 32.0 92.0
Above 32 4 8.0 8.0 100.0
Total 50 100.0 100.0

Interpretation: We can clearly notice from the above bar graph that the majority of the
respondents or a whopping 54% of the sample size consisted of people from the age group 18-25
years; 32 % of the age-group is in between 26-32 whereas only 6% of the sample respondents
belonged to the age consisted of people below18.
16. PREFERENCE FOR DIFFERENT TYPES OF COLD-DRINK
Table NO:16: Preference for different type of cold drinks
Type of cold drinks
Cumulative
Percent
Valid Carbonated 15 30.0 30.0 30.0
fruit based(non carbonated) 16 32.0 32.0 62.0
100% fruit juice 18 36.0 36.0 98.0
Others 1 2.0 2.0 100.0
Total 50 100.0 100.0

Interpretation: The above bar-chart clearly shows that 36% of the population preferred 100%
fruit juice drinks over others i.e. out of 50 respondents 18 persons marked 100% fruit juice
drinks as their most preferred soft-drink, where as 30 % and 32% of the respondents preferred
carbonated and fruit based ( non carbonate) soft-drink respectively and only 2% respondent that
is only 1 persons have shown interest in other types of cold drinks( like milk-based drink etc).
17. Name the first company that comes to your mind when you think of buying cold-
drinks (This question helps to measure the Mind Share/ Share of Mind for different
companies).
Table No17: Share of mind/ mind share for different companies
Company Name
Cumulative
Percent
Valid PepsiCo 27 54.0 54.0 54.0
Coca-Cola company 15 30.0 30.0 84.0
Parley Agro 4 8.0 8.0 92.0
others(Amul, Dabur etc) 4 8.0 8.0 100.0
Total 50 100.0 100.0

Interpretation: Looking at the above bar graph we can clearly notice that PepsiCo rules the
mind of soft-drink consumers with a whopping 54% mind share, and Coca-Cola is the only
major competitor of PepsiCo standing at second position with 30% mind share of consumers;
whereas Parley agro and Other companies like Dabur and Amul trail far behind these two giants.
18. Name the company from which you would prefer to buy the product (this question
helps to measure the Heart share/ Share of heart for different companies)
Table No:18 Share of Heart/ Heart share for different companies
Cumulative
Percent
Valid PepsiCo 29 58.0 58.0 58.0
Coca-Cola Company 14 28.0 28.0 86.0
Parley Agro 5 10.0 10.0 96.0
Others( Amul, Dabur etc) 2 4.0 4.0 100.0
Total 50 100.0 100.0

Interpretation:We can notice that there is an increase in share of hearts of consumers of PepsiCo
and a decrease in Coca-cola in comparison to their respective mind share. But still they retain their
lead position.Here also PepsiCo stands at 1st position with 58% heart share and Coca-Cola with 30%
heart share. At the same time companies like Parley, Dabur, Amul etc. have shown a considerable
increase in the percent of their heart share.
19.SHOWING THE USAGE OCCASION OF SOFT DRINKS
Table No: 19 Showing the customer usage occasion
Valid Outings 8 16.0 16.0 16.0
Travelling 14 28.0 28.0 44.0
When feeling thristy 23 46.0 46.0 90.0
After heavy meals 2 4.0 4.0 94.0
Any other occasion ( party’s,
watching movies/events)
3 6.0 6.0 100.0
Total 50 100.0 100.0

Interpretation: From the graph it is clear that most of the consumer prefer soft drinks so
Bangalore has a very good demand for soft drinks. : The data table shows that 16% of the
consumer consume soft drinks during outings, 28% of the customer take soft drinks while
travelling, 46% of the consumer take soft drink when they are thirsty and 4% and 6% of the
consumer take the soft drink after heavy meals and during occasions like party and while
watching movies/events respectively.
20. SHOWING THE CUSTOMER AWARENESS BETWEEN SLICE AND SLICE ALPHONSO
Table No:20 Difference between Slice and Slice Alphonso
Valid yes 22 44.0 44.0 44.0
no 28 56.0 56.0 100.0
Total 50 100.0 100.0

Interpretation: From the Bar-Chart we can clearly see that 56% of the customers don‟t know
the difference between the Slice and Slice Alphonso. And only 44% of the customers know the
different between these 2 products.
21. PREFERENCES FOR DIFFERENT TYPES OF MANGO DRINKS
Table No:21 Showing customer preferences of different mango drinks
Valid Slice Alphonso 13 26.0 26.0 26.0
Slice 19 38.0 38.0 64.0
Maaza 15 30.0 30.0 94.0
others 3 6.0 6.0 100.0
Total 50 100.0 100.0

Interpretation: The above bar-chart clearly shows that 38% of the population preferred Slice
over others i.e. out of 50 respondents 19 persons marked Slice as their most preferred mango
drink, where as 30 % and 26% of the respondents preferred Maaza and Slice Alphonso
respectively and only 3% respondent that is only 1 persons have shown interest in other types of
mango drinks (like Amul, Dabur etc).
22. SHOWING THE REASON THAT INFLUENCES TO BUY SLICE ALPHONSO
Table No; 22 Reason that influences to buy Slice Alphonso
Cumulative
Percent
Valid High Pulp Content 16 32.0 32.0 32.0
Brand Name 12 24.0 24.0 56.0
Taste 18 36.0 36.0 92.0
Availability 1 2.0 2.0 94.0
Others( Friends influence,
Ads etc)
3 6.0 6.0 100.0
Total 50 100.0 100.0

Interpretation: High pulp content, Taste, Brand name are the most preferred reasons for
choosing Slice Alphonso; these three parameters have got 36%, 32%, 24% votes of the
customers or consumers respectively. Whereas only 6% and 2% choose Slice Alphonso because
of availability and due to influences from friends and Television Ads respectively.
23. SHOWING HOW DID THE CUSTOMER COME TO KNOW ABOUT SLICE ALPHONSO
Table No:10 Showing how did the customer come to know about Slice Alphonso
Valid Television Ads 24 48.0 48.0 48.0
Magazine/Newspapers 4 8.0 8.0 56.0
Display 10 20.0 20.0 76.0
Hoardings 1 2.0 2.0 78.0
From Friends 11 22.0 22.0 100.0
Total 50 100.0 100.0

Interpretation: From the Bar-Chart we can clearly say that the Television Ads is the most
prominent than other media. And it has got 48% of customer votes, whereas the display and
influence from friends shares about 20% and 22% of the total votes respectively. Magazine/
newspaper and Hoardings have less percentage as compared to other media.
24. SHOWING FROM WHERE THE CUSTOMER PURCHASES SLICE ALPHONSO MOSTLY
FROM.
Table No: 11 Showing where the customers purchase Slice Alphonso from?
Valid Retail Stores 31 62.0 62.0 62.0
Kirana Stores 8 16.0 16.0 78.0
Restaurants 11 22.0 22.0 100.0
Total 50 100.0 100.0

Interpretation: Majority of the customers purchase Slice Alphonso from the retail stores and it
shares 62% of the total votes, whereas the Restaurants and Kirana stores have got a percentage of
22 and 16 respectively.
25. SHOWING HOW CUSTOMER FEEL ABOUT SLICE ALPHONSO
Table No: 25 Showing how customer feel about Slice Alphonso
Valid Excellent 7 14.0 14.0 14.0
Very Good 18 36.0 36.0 50.0
Good 23 46.0 46.0 96.0
Fair 2 4.0 4.0 100.0
Total 50 100.0 100.0
Interpretation: The data showing that the product has got good response from the customer
group. The data table shows that 46 % of the customers agree that product is good, 36% of the

customer agree that the product is very good, only 14% of the customer feel that the product is
excellent whereas only 4% says that the product is fair.
26. SHOWING CONSUMPTION RATE OF SLICE ALPHONSO
TableNo:26 Showing the frequency of consumption of Slice Alphonso
Valid At least once a day 4 8.0 8.0 8.0
Once a week 18 36.0 36.0 44.0
A few times a week 17 34.0 34.0 78.0
Only on special occasions(party,
on theatre etc)
8 16.0 16.0 94.0
Never 3 6.0 6.0 100.0
Total 50 100.0 100.0

Interpretation: From the above data, it is clear that most of the consumer consumes Slice
Alphonso, but few consumers never prefer. : The data table shows that 8% of the consumer takes
Slice Alphonso at least once aday,34% of the consumer take the product few times a week,36%
of the consumer take the product once a week, 16% of the consumer takes Slice Alphonso on
special occasion and 6% of the customer never consume the product.
27. SHOWING THE NO OF CONSUMERS RECOMMEND OTHER CONSUMERS
TO BUY SLICE ALPHONSO
Table No:27 Showing the no of consumers recommend other consumers to buy Slice Alphonso
Valid Always 5 10.0 10.0 10.0
Very Often 14 28.0 28.0 38.0
Sometimes 19 38.0 38.0 76.0
Rarely 9 18.0 18.0 94.0
Never 3 6.0 6.0 100.0
Total 50 100.0 100.0

Interpretation: From the above data it is clear that most of consumers suggest others to
consume Slice Alphonso sometimes. Some of consumer never suggests Slice Alphonso to others,
because they dislike soft drinks. The data table shows that 38% of the consumer prefers Slice
Alphonso only sometimes, 28% of the consumer prefers Slice Alphonso very often, 10% of the
consumer prefers Slice Alphonso always and 6% of the consumer never prefers Slice Alphonso
to other consumer.

Chapter:3 FINDINGS AND RECOMMENDATIONS
FINDINGS FROM CUSTOMER BASED SURVEY
 Types of cold drinks: 100% fruit juices dominate the preference level of consumers at the
place of study with a 36% preference level. While fruit based (noncarbonated) drinks have a
preference level of 32% and carbonated soft drinks have a preference level of 30%.
 Mind Share: PepsiCo has a 54% mind share of the consumers living in the area of Rajaji
Nagar and Indira Nagar.
 Heart Share: PepsiCo has a 58% Heart share of consumers living in the area of Rajaji
Nagar and Indira Nagar.
 Customer usage occasion: Most of the customer takes soft drinks when they are thristy
that is about 46%. while16% of the consumer consume soft drinks during outings, while
28% of the customer take soft drinks while travelling, and 4% and 6% of the consumer
take the soft drink after heavy meals and during occasions like party and while watching
movies/events respectively.
 Customer awareness between Slice & Slice Alphonso: 56% of the consumer don‟t
know the difference between Slice & Slice Alphonso at the place of study.
 Consumer preference analysis of mango drinks: Slice has the highest preference level
of 38% among different mango drinks followed by Mazza, Slice Alphonso and others.
 Reason for preference of Slice Alphonso: High pulp content (36%), Taste (32%), Brand
name (24%) are the most preferred reasons for choosing Slice Alphonso.
 Medium of influence: Television Ads (48%) is the most prominent than other followed
by influence from friends (22%) and display (20%).
 Customer purchase: Most of the customers purchase Slice Alphonso from the retail
stores (62%) followed by Restaurants (22%) and Kirana stores (16%).
 Customer satisfaction level: 46 % of the customers agree that product is good, while
36% of the customer agrees product is very good, followed with excellent satisfaction
level (14%).
 Frequency of consumption: Only 8% of consumers prefer to take Slice Alphonso daily,
while 36% of the consumers take it once a week and 34% of consumers take it few times a
week, whereas 16% prefer to take Slice Alphonso only on special occasions.

 Recommendation level: Customer only sometimes (38%) likes to suggest other
consumers to buy Slice Alphonso. Few consumers never (6%) prefer others to buy Slice
Alphonso because they dislike soft drinks.
FINDINGS FROM RETAILER BASED SURVEY
 Sale of Slice & Slice Alphonso: 48% of the retailers agreed that sale of Slice and Slice
Alphonso is good, 34% of the retailers agreed that sale of Slice and Slice Alphonso is
average and only 10% says Slice and Slice Alphonso sales is poor
 Retailer’s awareness between Slice & Slice Alphonso: 90% of the retailers don‟t know
the difference between Slice & Slice Alphonso at the place of study.
 Customer preference towards different mango drinks: 50% of the retailers agree
customers preferred Slice over others, followed by Maaza (30 %) and Slice Alphonso
(10%) and only 6% customer shown interest in Frooti.
 Age Group: Teenagers and youth are the potential customers of Slice Alphonso. They
constitute about 46 and 30 percent of the retailer‟s votes respectively whereas only 18%
retailer votes for adults.
 Reason for preference of Slice Alphonso: High pulp content, Taste & Flavour, Brand
name are the most preferred reasons for choosing Slice Alphonso; these three parameters
have got 42%, 36%, 16% of the retailers votes, whereas only 6% choose Slice Alphonso
because of quality.
 Major competitor: Maaza from Coca cola is the main competitor for Slice Alphonso in
market; 56% of the retailers agree that Maaza is the main competitor followed by Fresh
juice and Local brands.
 No: of bottles sell/day: On average 1-10 bottle of Slice Alphonso are sold per day. 86%
of the retailers agree to that whereas only 14% of the retailer says more than 10 bottles
are sold per day.
 Customer opinion regarding Slice Alphonso: 50% of the consumer feels that it is good
and 30% of the consumer feel that the Slice Alphonso is an average product and 2%
dislike the product.
 Retailer’s opinion about price: 46% of the retailers feel that price of Slice Alphonso is
very high, 44% feel that price is high and 10% feel that price is reasonable.

 Price reduction: 96% of retailers believe if the price of the Slice Alphonso is reduced
then the sales will be increased.
 Medium of influence: According to retailer, Television Ads and display affect the sale
of Slice Alphonso mostly.
 Suggestion for improving sale: According to retailer perception time to time new
scheme should be provide and regular supply is necessary in the market that improve the
sale. Company should also provide better advertisement to improve the sale. These three
parameters have got 40%, 40%, 20% vote respectively.
RECOMMENDATIONS
 Since Slice Alphonso is a new product from PepsiCo people are not much aware about
the product. So first step is to create awareness about the product both in urban and rural
areas. Canter activity is an effective promotional tool. If the canter activity conducted in a
more effective way then it may be influences the customer choice and there by increases
the product sale.
 Promotion should be done through ATL and BTL, both the processes. For ATL
promotion we should arrange more and more advertisements on different T.V. channels.
Especially at prime time so that more and more people can be aware of it. Other than the
televisions they should also give the promotional advertisements on radios, newspapers
and different magazines, so that a large number of consumers can be made aware of it. At
time to time we should give promotional offers on it like “save Rs 10 at the purchasing of
two Slice Alphonso” or “get two Slice Alphonso @ 90 only” and more like this. So the
people, who generally visited to the departmental stores like Big Bazaar or Spencer, can
get the offer easily. We should also provide these types of offers to the retailers so the
people who don’t visit malls can get the offers. Apart from these activities company
should also organize the BTL (Below the Line) promotions to make more and more
awareness. For BTL promotions, company should choose some crowded areas is every
territory and organize camps there. Company employee will meet every people roaming
in that particular place and give a sample of Slice Alphonso to taste and note down their
reactions. And this also creates awareness among the public.

PepsiCo marketing project:2015

PepsiCo marketing project:2015

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