Description
This Study on Indian Aerated Drink industry with special focus on retailers satisfaction Level with Respect to Coke India vs. PepsiCo India
A
GRAND PROJECT REPORT ON
“A study of Indian Aerated Drink industry with special
focus on retailers’ satisfaction level with respect to Coke
India vs. PepsiCo India”
In the fulfillment For the Requirement of Two Year Full
time Master of usiness A!ministration" Gu#arat
$ni%ersit&
Project Guide u!"itted #y$%
Prof' Jasmin Pa!i&a Pravin Dave (08023)
Prof' Poonam Nair Virang Pandhi (08065)
#atch$ &''(%&')'
N. R. Institute of Business Management
0
*.+. Institute of #usiness ,ana-e"ent
.G/%,#A0
Certifcate
This is to certify that Pravin Dave & Virang Pandhi
Having Roll Numbers 0802 and 080!"
res#ectively of N$r$ %nstitute of &usiness
'anagement ()*+,'&-. -hmedabad of the batch
2008,20/0 Has successfully com#leted his grand
#ro0ect of the +ub0ect
1
“A study of Indian Aerated Drink industry
with special focus on retailers satisfaction
le!el with respect to Coke India !s. "epsiCo
India”
In the fulfllment #or the Re$uirement of
%wo &ear #ull time Master of Business
Administration' (u)arat *ni!ersity
%hey ha!e +uccessfully completed the
(rand "ro)ect
"rof. ,asmin "adiya Dr. -itesh
Ruparel
/
"ro)ect (uide Director
"rof. "oonam Nair Date.
/01021/030
"ro)ect (uide
2
"R4#AC4
A comprehensive practical study of management is a supplement to the theoretical classroom
knowledge. It helps to understand the subject more precisely.
This report tries to outline idea of professional world and helps in understanding the
pragmatic aspect of management function. Own observation are significant towards the
contribution in learning the subject. The report is therefore as a design as a reference of
organisation function rather then copy down instrument.
The purpose of industrial training is to make management student familiar with day today
function of business. The present report is an effort in this direction.
My humble endeavour and motive in presenting the project report is to find out the
comparison of brands between CocaCola and !epsi.
It is hoped that this project serve as a supportive documents to research worker as effort has
been tried to make this report and informative stimulating and self e"planatory.
!lace # Ahmedabad
Virang Pandhi
$% March& '($(
Pravin Dave
2
ACKNOWLEDGEMENT
We think if any of us honestly refects on who we are,
how we got here, what we think we might do well, and
so forth, we discover a debt to others that spans
written history. The work of some unknown person
makes our lives easier everyday. We believe it's
appropriate to acknowledge all of these unknown
persons; but it is also necessary to acknowledge those
people we know have directly shaped our lives and our
work.
Through this acknowledgement, we express our
sincere gratitude towards all those people who have
helped us in the preparation of this proect, which has
been a good learning experience for us.
We would like to thank the distribution channel and
!ogistics department of the both "iant #rganisation
$oke and %epsi. &oth company has %rovided us the
various touch points of the whole chain. We have
covered the whole chain of urban area.
'inally we express our sincere thanks to %rof. (asmin
%andya and %rof. %oonam )air who guided us
throughout this proect.
"
-Pravin Dave (08023)
-Virang Pandhi (08065)
121C34I51 3,,A+6
Coca-Cola and PepsiCo are the two major companies in the world for cola drinks
and have a huge world market share. These two companies have captured the
market of each and every country they get into and same I the case in India where
Coke has a market share of 57.! while pepsi has a market share of "5.#! and are
continuously fighting for a larger market share and continuously attacking each other
either $y %dvertisements& $rand am$assadors& products and marketing of their
$rand.
%ll this is fine $ut the main core competency of such products is in the 'istri$ution
Process and in the satisfaction of their (etailers thus a strong distri$ution process
and a strong satisfaction level means more num$er of retailers and more the
retailers means more the availa$ility of the product and more the availa$ility of the
product means more the market share and thus the curiosity to know who is the
$etter distri$utor and has a strong distri$ution led us to the project “A study of
Indian Aerated Drink industry with special focus on retailers’
satisfaction level with respect to Coke India vs. PepsiCo India”
)e conducted a survey of mainly panwala*s as and other Pepsi and Coke +tockers
$ut the major stockers are the panwala*s of mainly ,-- respondents. It was a simple
.uestionnaire and we asked .uestions on .uality of $ottles& margins and other
attri$utes.
)e got the num$er of sellers $y convenient sampling and analysis and secondary
data analysis and the results are given in the project $elow
!
4a!le of Contents
). +11A+C7 ,1478D8/8G6 '9
&. 8#:1C4I51 8; 471 43D6 ))
,A+>14 )9
4.1 History of Soft Drin !nd"stry 18
?. I*4+8D3C4I8* 48 471 8;4 D+I*> ,A+>14 I* I*DIA &'
9.C8PA*6 P+8;I/1 &9
6.1 #o$%any Profi&e of #oe 2'
!$2 3om#any Pro4le of Pe#si /
@. C8,PA+I4I51 A*A/6I 8; C8>1 A*D P1PI 14 +11A+C7 A*A/6I ==
8.1 Analysis Of the Questionnaire 45
A. B84 A*A/6I ('
(.1 S)*+ *, #*-. 81
(.2 S)*+ *, P.PS! 82
)'.;I51 ;8+C1 A*A/6I 8; A1+A41D I*D34+6 (=
)).>16 ;I*DI*G (@
)&.C8*C/3I8* A*D +1C8,,1*DA4I8* A
0
12.1#*/#01S!*/S (1
12.2 2e3o$$endations to #oe (1
5
12.3 2e3o$$endations to Pe%si (2
4!40!*526PH7 !
6//.8+12. !!
C7 )$
+11A+C7 ,1478D8/8G6
8
). +esearch ,ethodolo-y
? Problem statement / Objective of the research
To +tudy the concept of distri$ution channel and logistics in the soft drink industry and to
study the flow of soft-drink $ottles in the market and compare it with the main competitor
in the industry.
? Major objectives
• To study the satisfaction level of retailers.
• In depth study of the distri$ution channel of Pepsi and coke
• Critically compare the +upply chain management of the $oth company.
• /ind out the limitation and strength of $oth companies.
? Research design
The research design that will $e use is descriptive research
• Involves gathering data that descri$e events and then organi0es& ta$ulates& depicts&
and descri$e the data
• 1ses description as a tool to organi0e data into patterns that emerge during analysis
6
• 2ften uses visual aids such as graphs and charts to aid the reader.
'escription research takes a 3what is4 approach
• (efers to the nature of the research .uestion
• The design of the research
• The way that data will $e analy0ed for the topic that will $e researched
There are three methods of data collection under this method. They are5
• +urvey
• Interviews
• 2$servations
? +ampling plan
• Target population5 (etailers who stock coke and pepsi mainly panwala*s
• +ampling si0e5 ,--
• +ampling techni.ue5 convenience sampling
• +ample /rame5 - %ll mem$ers in the retailing channel and who influence the
channel.
• +ample 1nit5 - %ny retailer and dealer who stock pepsi and coke.
• +ampling 6ethod 5- 7on pro$a$ility convenience sampling
? Data collection sources
? Primary data
Primary data would $e collected through the structured .uestionnaire consisting mainly
open ended .uestions
/0
? +econdary data
+econdary data would $e collected from the internet& journals& and reference $ooks.
Figure 1.1: Marketing Research
? co!e of the stud"
? -N-*7+%+ 89 D-T-
%ll the open-ended .uestions will $e analysed $y adding up the responses against each
alternative and answers from the various respondents.
//
Transcripts will result in the finding to e8plore the changes that are likely to impact the
uni.ue aspects of $everage industry& with present scenario in India and in world. 2ur
findings will show the current trends in $everage industry& various pro$lems faced $y the
industry according to various respondents.
? 98pected contri$ution of the study
The analysis made as a part of this study may contri$ute in a way analysis of strength and
weakness of the sector as whole may $e taken into consideration and various firms together
may make efforts to overcome those limitations and as a result not only the $everage
manufacturing firms would $e $enefited $ut others who uses the services of these firms
would also $e $enefited.
? #eneficiaries of the stud"
The outcomes analysed from this study would $e $eneficial to various sections such as5
, :everage industry
This study would definitely $enefit the soft drink firms in a way that services
provided $y various firms would $e compared and also the five force model
analysis of this sector reveal the potential threats to the e8isting players.
, Corporate
The $enefits to the corporate would $e that they would $e well versed with
detailed information a$out various services provided $y different firms so that it
would easier for them to select a particular soft drink firm to assist them in
various logistic pro$lems.
, (esearchers
The major $eneficiaries from the project would $e the researchers themselves as
this study would enhance their knowledge a$out the topic. They get an insight of
the present scenario of this industry as this is the emerging industry in the
$everage sector of the economy. 'etail knowledge of various services provided
$y the soft drink firm will help researchers and others to pursue career in this
industry.
/2
? Problems $n Marketing research
? 7on (esponse of the (etailer
? ;anguage pro$lem %nd 1nderstanding of the .uestionnaire of the retailer
? --- Crore market in India.
The main o$ject of this project is to comprehensively analy0e the distri$ution of Coca-Cola
and its strength in market against its rival Pepsi and also to $e aware like the shopkeeper
a$out the sale and display of the Coke*s $rand like Thum$s-up& 6aa0a etc.
This was done in two ways5-
a? Comprehensive market analysis was done $y visiting various shops through out
%hmeda$ad.
$? To ask the shop keeper a$out the promotions and schemes given to them to
them in order to sell and promote their products.
/"
C7$ <
I*4+8D3C4I8* 48 471
P+8:1C4
/!
,A+>14
/6
=. Introduction to the oft Drinks ,arket
The main production of soft drink was stored in ,"-*s D since then from those e8perimental
$eginning there was an evolution until in ,7,& when the worlds first cola flavoured $everage
was introduced. These drinks were called soft drinks& only to separate them from hard
alcoholic drinks. This drinks do not contains alcohol D $roadly specifying this $everages&
includes a variety of regulated car$onated soft drinks& diet D caffeine free drinks& $ottled
water juices& juice drinks& sport drinks D even ready to drink teaEcoffee packs. +o we can say
that soft drinks mean car$onated drinks. Today& soft drink is more favourite refreshment
drink than tea& coffee& juice etc. It is said that where there is a consumer& there is a producer
D this result into completion. :igger the player& the harder it plays. In such situation $road
identity is very strong. It takes long time to make $road famous. Coca F Cola has its
$eginning in ,>, D since then has $een one of the three most dominate players in this soft
drink industry.
The name 3soft drink4 was given $y %mericans as against hard drink& which is mainly
alcoholic. +o in general terms non-alcoholic drinks are considers as soft drink. +oft drink
consists of flavour $ase& sweetener and car$onated water.
The major participants involved in the production and distri$ution of soft drink are
concentrate and syrup producer*s $ottlers and retail channel concentrate-producers
manufactures $asis of soft drink flavour and send them to $ottlers.
ttlers purchase the
concentrate and add car$onated water and sometime sweeter and $ottle or can the soft
20
drink. This soft drink delivered to the customer accounts retail channels that sales or serve
the product directly to the customers.
In 1+% soft drink had e8isted since the early ,--*s where many 1+ druggists had
concentrate $lend of fruit syrups and car$onated soda water that they sold them at their
soda fountains.
+.1 *istor" of oft Drinks
1,-. The term Gsoda waterG first coined.
1.1/ /irst 1.+. patent issued for the manufacture of imitation mineral waters.
1.1- The Gsoda fountainG patented $y +amuel /ahnestock.
1.01 The first $ottled soda water in the 1.+.
1.1/ % manual hand D foot operated filling D corking device& first used for $ottling soda
water.
1.11
This Study on Indian Aerated Drink industry with special focus on retailers satisfaction Level with Respect to Coke India vs. PepsiCo India
A
GRAND PROJECT REPORT ON
“A study of Indian Aerated Drink industry with special
focus on retailers’ satisfaction level with respect to Coke
India vs. PepsiCo India”
In the fulfillment For the Requirement of Two Year Full
time Master of usiness A!ministration" Gu#arat
$ni%ersit&
Project Guide u!"itted #y$%
Prof' Jasmin Pa!i&a Pravin Dave (08023)
Prof' Poonam Nair Virang Pandhi (08065)
#atch$ &''(%&')'
N. R. Institute of Business Management
0
*.+. Institute of #usiness ,ana-e"ent
.G/%,#A0
Certifcate
This is to certify that Pravin Dave & Virang Pandhi
Having Roll Numbers 0802 and 080!"
res#ectively of N$r$ %nstitute of &usiness
'anagement ()*+,'&-. -hmedabad of the batch
2008,20/0 Has successfully com#leted his grand
#ro0ect of the +ub0ect
1
“A study of Indian Aerated Drink industry
with special focus on retailers satisfaction
le!el with respect to Coke India !s. "epsiCo
India”
In the fulfllment #or the Re$uirement of
%wo &ear #ull time Master of Business
Administration' (u)arat *ni!ersity
%hey ha!e +uccessfully completed the
(rand "ro)ect
"rof. ,asmin "adiya Dr. -itesh
Ruparel
/
"ro)ect (uide Director
"rof. "oonam Nair Date.
/01021/030
"ro)ect (uide
2
"R4#AC4
A comprehensive practical study of management is a supplement to the theoretical classroom
knowledge. It helps to understand the subject more precisely.
This report tries to outline idea of professional world and helps in understanding the
pragmatic aspect of management function. Own observation are significant towards the
contribution in learning the subject. The report is therefore as a design as a reference of
organisation function rather then copy down instrument.
The purpose of industrial training is to make management student familiar with day today
function of business. The present report is an effort in this direction.
My humble endeavour and motive in presenting the project report is to find out the
comparison of brands between CocaCola and !epsi.
It is hoped that this project serve as a supportive documents to research worker as effort has
been tried to make this report and informative stimulating and self e"planatory.
!lace # Ahmedabad
Virang Pandhi
$% March& '($(
Pravin Dave
2
ACKNOWLEDGEMENT
We think if any of us honestly refects on who we are,
how we got here, what we think we might do well, and
so forth, we discover a debt to others that spans
written history. The work of some unknown person
makes our lives easier everyday. We believe it's
appropriate to acknowledge all of these unknown
persons; but it is also necessary to acknowledge those
people we know have directly shaped our lives and our
work.
Through this acknowledgement, we express our
sincere gratitude towards all those people who have
helped us in the preparation of this proect, which has
been a good learning experience for us.
We would like to thank the distribution channel and
!ogistics department of the both "iant #rganisation
$oke and %epsi. &oth company has %rovided us the
various touch points of the whole chain. We have
covered the whole chain of urban area.
'inally we express our sincere thanks to %rof. (asmin
%andya and %rof. %oonam )air who guided us
throughout this proect.
"
-Pravin Dave (08023)
-Virang Pandhi (08065)
121C34I51 3,,A+6
Coca-Cola and PepsiCo are the two major companies in the world for cola drinks
and have a huge world market share. These two companies have captured the
market of each and every country they get into and same I the case in India where
Coke has a market share of 57.! while pepsi has a market share of "5.#! and are
continuously fighting for a larger market share and continuously attacking each other
either $y %dvertisements& $rand am$assadors& products and marketing of their
$rand.
%ll this is fine $ut the main core competency of such products is in the 'istri$ution
Process and in the satisfaction of their (etailers thus a strong distri$ution process
and a strong satisfaction level means more num$er of retailers and more the
retailers means more the availa$ility of the product and more the availa$ility of the
product means more the market share and thus the curiosity to know who is the
$etter distri$utor and has a strong distri$ution led us to the project “A study of
Indian Aerated Drink industry with special focus on retailers’
satisfaction level with respect to Coke India vs. PepsiCo India”
)e conducted a survey of mainly panwala*s as and other Pepsi and Coke +tockers
$ut the major stockers are the panwala*s of mainly ,-- respondents. It was a simple
.uestionnaire and we asked .uestions on .uality of $ottles& margins and other
attri$utes.
)e got the num$er of sellers $y convenient sampling and analysis and secondary
data analysis and the results are given in the project $elow
!
4a!le of Contents
). +11A+C7 ,1478D8/8G6 '9
&. 8#:1C4I51 8; 471 43D6 ))
,A+>14 )9
4.1 History of Soft Drin !nd"stry 18
?. I*4+8D3C4I8* 48 471 8;4 D+I*> ,A+>14 I* I*DIA &'
9.C8PA*6 P+8;I/1 &9
6.1 #o$%any Profi&e of #oe 2'
!$2 3om#any Pro4le of Pe#si /
@. C8,PA+I4I51 A*A/6I 8; C8>1 A*D P1PI 14 +11A+C7 A*A/6I ==
8.1 Analysis Of the Questionnaire 45
A. B84 A*A/6I ('
(.1 S)*+ *, #*-. 81
(.2 S)*+ *, P.PS! 82
)'.;I51 ;8+C1 A*A/6I 8; A1+A41D I*D34+6 (=
)).>16 ;I*DI*G (@
)&.C8*C/3I8* A*D +1C8,,1*DA4I8* A
0
12.1#*/#01S!*/S (1
12.2 2e3o$$endations to #oe (1
5
12.3 2e3o$$endations to Pe%si (2
4!40!*526PH7 !
6//.8+12. !!
C7 )$
+11A+C7 ,1478D8/8G6
8
). +esearch ,ethodolo-y
? Problem statement / Objective of the research
To +tudy the concept of distri$ution channel and logistics in the soft drink industry and to
study the flow of soft-drink $ottles in the market and compare it with the main competitor
in the industry.
? Major objectives
• To study the satisfaction level of retailers.
• In depth study of the distri$ution channel of Pepsi and coke
• Critically compare the +upply chain management of the $oth company.
• /ind out the limitation and strength of $oth companies.
? Research design
The research design that will $e use is descriptive research
• Involves gathering data that descri$e events and then organi0es& ta$ulates& depicts&
and descri$e the data
• 1ses description as a tool to organi0e data into patterns that emerge during analysis
6
• 2ften uses visual aids such as graphs and charts to aid the reader.
'escription research takes a 3what is4 approach
• (efers to the nature of the research .uestion
• The design of the research
• The way that data will $e analy0ed for the topic that will $e researched
There are three methods of data collection under this method. They are5
• +urvey
• Interviews
• 2$servations
? +ampling plan
• Target population5 (etailers who stock coke and pepsi mainly panwala*s
• +ampling si0e5 ,--
• +ampling techni.ue5 convenience sampling
• +ample /rame5 - %ll mem$ers in the retailing channel and who influence the
channel.
• +ample 1nit5 - %ny retailer and dealer who stock pepsi and coke.
• +ampling 6ethod 5- 7on pro$a$ility convenience sampling
? Data collection sources
? Primary data
Primary data would $e collected through the structured .uestionnaire consisting mainly
open ended .uestions
/0
? +econdary data
+econdary data would $e collected from the internet& journals& and reference $ooks.
Figure 1.1: Marketing Research
? co!e of the stud"
? -N-*7+%+ 89 D-T-
%ll the open-ended .uestions will $e analysed $y adding up the responses against each
alternative and answers from the various respondents.
//
Transcripts will result in the finding to e8plore the changes that are likely to impact the
uni.ue aspects of $everage industry& with present scenario in India and in world. 2ur
findings will show the current trends in $everage industry& various pro$lems faced $y the
industry according to various respondents.
? 98pected contri$ution of the study
The analysis made as a part of this study may contri$ute in a way analysis of strength and
weakness of the sector as whole may $e taken into consideration and various firms together
may make efforts to overcome those limitations and as a result not only the $everage
manufacturing firms would $e $enefited $ut others who uses the services of these firms
would also $e $enefited.
? #eneficiaries of the stud"
The outcomes analysed from this study would $e $eneficial to various sections such as5
, :everage industry
This study would definitely $enefit the soft drink firms in a way that services
provided $y various firms would $e compared and also the five force model
analysis of this sector reveal the potential threats to the e8isting players.
, Corporate
The $enefits to the corporate would $e that they would $e well versed with
detailed information a$out various services provided $y different firms so that it
would easier for them to select a particular soft drink firm to assist them in
various logistic pro$lems.
, (esearchers
The major $eneficiaries from the project would $e the researchers themselves as
this study would enhance their knowledge a$out the topic. They get an insight of
the present scenario of this industry as this is the emerging industry in the
$everage sector of the economy. 'etail knowledge of various services provided
$y the soft drink firm will help researchers and others to pursue career in this
industry.
/2
? Problems $n Marketing research
? 7on (esponse of the (etailer
? ;anguage pro$lem %nd 1nderstanding of the .uestionnaire of the retailer
? --- Crore market in India.
The main o$ject of this project is to comprehensively analy0e the distri$ution of Coca-Cola
and its strength in market against its rival Pepsi and also to $e aware like the shopkeeper
a$out the sale and display of the Coke*s $rand like Thum$s-up& 6aa0a etc.
This was done in two ways5-
a? Comprehensive market analysis was done $y visiting various shops through out
%hmeda$ad.
$? To ask the shop keeper a$out the promotions and schemes given to them to
them in order to sell and promote their products.
/"
C7$ <
I*4+8D3C4I8* 48 471
P+8:1C4
/!
,A+>14
/6
=. Introduction to the oft Drinks ,arket
The main production of soft drink was stored in ,"-*s D since then from those e8perimental
$eginning there was an evolution until in ,7,& when the worlds first cola flavoured $everage
was introduced. These drinks were called soft drinks& only to separate them from hard
alcoholic drinks. This drinks do not contains alcohol D $roadly specifying this $everages&
includes a variety of regulated car$onated soft drinks& diet D caffeine free drinks& $ottled
water juices& juice drinks& sport drinks D even ready to drink teaEcoffee packs. +o we can say
that soft drinks mean car$onated drinks. Today& soft drink is more favourite refreshment
drink than tea& coffee& juice etc. It is said that where there is a consumer& there is a producer
D this result into completion. :igger the player& the harder it plays. In such situation $road
identity is very strong. It takes long time to make $road famous. Coca F Cola has its
$eginning in ,>, D since then has $een one of the three most dominate players in this soft
drink industry.
The name 3soft drink4 was given $y %mericans as against hard drink& which is mainly
alcoholic. +o in general terms non-alcoholic drinks are considers as soft drink. +oft drink
consists of flavour $ase& sweetener and car$onated water.
The major participants involved in the production and distri$ution of soft drink are
concentrate and syrup producer*s $ottlers and retail channel concentrate-producers
manufactures $asis of soft drink flavour and send them to $ottlers.
ttlers purchase theconcentrate and add car$onated water and sometime sweeter and $ottle or can the soft
20
drink. This soft drink delivered to the customer accounts retail channels that sales or serve
the product directly to the customers.
In 1+% soft drink had e8isted since the early ,--*s where many 1+ druggists had
concentrate $lend of fruit syrups and car$onated soda water that they sold them at their
soda fountains.
+.1 *istor" of oft Drinks
1,-. The term Gsoda waterG first coined.
1.1/ /irst 1.+. patent issued for the manufacture of imitation mineral waters.
1.1- The Gsoda fountainG patented $y +amuel /ahnestock.
1.01 The first $ottled soda water in the 1.+.
1.1/ % manual hand D foot operated filling D corking device& first used for $ottling soda
water.
1.11