SUBMITTED IN PARTIAL
FULFILLMENT OF THE
REQUIREMENT OF PGPM
OF
AMITY GLOBAL BUSINESS
SCHOOL
PROJECT REPORT
ON
“TRADE DIMENSION”
Pepsico Ini! Ho"in#s P$%& L%&
S'()i%%e (*+
P,i%i S,i$!s%!$!
MBA -, SEM
SEC+ A
Page i
A Report On
“TRADE DIMENSION”
By
PRITI SRI.ASTA.A
A Report Submitted in partial Fulfilment of the requirements of MBA program.
Faculty Guide Industry Guide
Mrs. Mamta ha!la Mr. "i#e$a %atel
Amity Global Business School &Mar$eting'
(oida &).%.' %epsico India *olding %#t +td.
Gomti (agar, +uc$no!.
Page ii
AMITY GLOBAL BUSINESS SCHOOL/ NOIDA
AMITY UNI.ERSITY UTTAR PRADESH
CERTIFICATE OF ORIGIN
-his is to certify that %riti Sri#asta#a a student of MBA from AGBS Amity
)ni#ersity, (oida under fulfilment of the course has successfully done her pro.ect
on /Trade Dimension, of Pepsico India Holding Pvt. Ltd. , Gomti Nagar from 0
st
1une to 20
st
1uly. 3uring the period !e found her sincere and hard!or$ing.
4e declare that the !or$ done by her is her o!n and original to the best of our
$no!ledge.
4e !ish her success and bright future in life.
Authori5ed signatory
Asst. manager
[Viveka Patel]
&Signature'
Page iii
AC0NO1LEDGEMENT
It is not a single man6s effort !hich is sufficient for the accomplishment of a
Research. "arious factors, situations and persons integrate to pro#ide the
bac$ground for accomplishment of a tas$ requires the effort of so many people
and the !or$ is not different.
I ac$no!ledge here the names of those people !ho ha#e been instrumental in
preparation of their Research. I !ould li$e to than$ [Mr. Viveka Patel, Manager]
for his guidance and constant support in the successful completion of my pro.ect.
I !ould also li$e to than$ the entire team of %epsico India *olding %#t. +td. for
the constant support and help in the successful completion of my pro.ect.
I am sincerely indebted to Mr 7 Ms /insert name] for his 7 her #aluable suggestion
and inspiration to underta$e this study and his 7 her help !hich he 7 she ga#e for
the completion of this research.
%riti Sri#asta#a
Page iv
PREFACE
-his pro.ect has been underta$en in the partial fulfilment of our internship require
during the pursuance of MBA from Amity Global Business School Sec 089 (oida.
%ractical internship is an essential part of e#ery professional program. It is #ery
helpful in pro#ing $no!ledge for the practical aspects of academic studies.
In the pro.ect title :Trade Dimension; the area co#ered includes /ligan!, Vikas
Nagar, "#$rram Nagar and %ankip$ram]. It has been my endea#our to bring out
the procedure regarding efficient collection of information, its presentation< and
also the decision ma$ing process arising they6re from.
Page v
TABLE OF CONTENTS
S,&
No&
CONTENT P!#e
no&
2& In%,o'c%ion 2
3& M!%e,i!"s !n Me%4os 5
-& Res'"%s !n Disc'ssion -6
7& Conc"'sion 78
9& Reco))en!%ions 75
:& Appenices 7;
8& ReamplesA
0. )nder the cro!n &)-'
8. Refilling.
2. %oint of purchase displays
B. Rebates etc.
Sales promotions can be directed at the customer, sales staff, or distribution
channel members &such as retailers'. Businesses can target sales promotions at
three different audiencesA consumers, resellers, and the companyCs o!n sales
force. Sales promotion acts as a competiti#e !eapon by pro#iding an e>tra
incenti#e for the target audience to purchase or support one brand o#er another. It
is particularly effecti#e in spurring product trial and unplanned purchases. Most
mar$eters belie#e that a gi#en product or ser#ice has an established percei#ed
price or #alue, and they use sales promotion to change this price?#alue
relationship by increasing the #alue and7or lo!ering the price. ompared to the
other components of the mar$eting mi> &ad#ertising, publicity, and personal
selling', sales promotion usually operates on a shorter time line, uses a more
rational appeal, returns a tangible or real #alue, fosters an immediate sale, and
contributes highly to profitability. Acti#ities, materials, de#ices, and techniques
used to supplement the ad#ertising and mar$eting efforts and help coordinate the
Page 4
ad#ertising !ith the personal selling effort. S!eepsta$es are among the best?
$no!n sales promotion tools, but other e>amples include special displays,
coupons, promotional discounts, contests, and gift offers.
My sub.ect of study is that ho! the company6s promotional
schemes stimulates the products demand and ho! the retailers response o#er
scheme, !hat nature of the outlets &i.e. seasonal =non?seasonal', ho! they $no!
about promotional scheme &i.e. through SMS, salesman, @ etc', !hether the
outlets prefer to sell RGB /Regular glass bottleD, %@- /plastic bottleD, A(,
Acquafina mineral !ater, +eher soda.
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INTRODUCTION TO INDUSTRY+
BE.ERAGES INDUSTRY
Soft drin$ !as started !ith the idea of quenching the thirst of the persons
tra#eling. It !as also felt that reliable good !ater !as not a#ailable e#ery!here.
So people !ould rely on their pac$ed bottle and !ith the idea it made these drin$
a#ailable mostly at these place !here !ater !as not a#ailable is on high!ays and
long distance train.
Slo!ly and slo!ly !ith its beautiful tests these become #ery poplar and
they are not only a#ailable in the mar$ets and street corner but also people ha#e
started $eeping it in their houses.
%arle e>port %#t. limited is regard as the first Indian company introducing
Li)c! a +emon drin$ omplimentary to their !ell entrenched gold spot in 0EFG.
-he credit of populari5ing the soft drin$ goes to coca cola this !as the drin$,
!hich !as lin$ed, by all ladies, gents and children.
(o! a day, the soft drin$ for quenching -hirst but it loo$s more often they
are ta$en of habits.
Gold spot is considered as the first branded soft drin$ established.
&'(T D)IN"& M)"*T IN INDI
(on?alcoholic soft drin$ be#erage mar$et can be di#ided into fruit drin$s
= soft drin$s. Soft drin$s can be further di#ided into carbonated = non?
carbonated drin$s. ola, lemon = oranges are carbonated drin$s !hile mango
fla#or comes under non?carbonated category. India is one of the top fi#e mar$ets
in terms of gro!th of the soft drin$s mar$et. -he per capita consumption of soft
drin$s in the country is estimated to be around H bottles per annum in the year
8GG2. It is #ery lo! compared to the corresponding figures in )S &HGGI bottles
per annum'. But being one of the fastest gro!ing mar$ets and by the sheer
#olumes, India is a promising mar$et for soft drin$s. -he ma.or players in the soft
drin$s mar$et in India are %epsio and oca?ola o, li$e else!here in the
!orld. oca?ola acquired a number of local brands li$e +imca, Gold Spot and
Page 6
-hums )p !hen it entered Indian mar$et for the second time. %epsi o6s soft
drin$ portfolio also consists of Miranda and F)p along !ith %epsi. -he mar$et
share of each of the company is more or less the same, though there is a conflict in
the estimates quoted by different sources
-he ma.or ingredient in a soft drin$ is !ater. It constitutes close to EGJ of the
soft drin$ content. Added to this, the drin$ also contains s!eeteners, arbon
dio>ide, itric Acid7Malic acid, olors, %reser#ati#es, Anti O>idants and other
emulsifying agents, etc.
-he mar$et in India is slo!ly mo#ing from non?alcoholic
carbonated drin$s to fruit based drin$s and also to plain bottled !ater. Soft drin$s
mar$et in India gre! at a slo!er rate in 8GG2 and 8GGB compared to 8GG8.In 8GGB,
!ith 08J gro!th #olume reached o#er 2.G billion liters. *o!e#er, the gro!th rate
mar$ed a slo!do!n from .ust belo! 0FJ in 8GG8. -his poorer performance
stemmed mainly from slo!er gro!th !ithin carbonates. Bottled !ater and 0GGJ
.uices continued to e>pand at robust rates, appealing to the health conscious.
BRIEF HISTORY
%epsio, Inc. is founded by 3onald M. Kendall, %resident and
hief @>ecuti#e Officer of %epsi?ola and *erman 4. +ay, hairman and hief
@>ecuti#e Officer of Frito?+ay, through the merger of the t!o companies. %epsi?
ola !as created in the late 0LEGs by C!"e( B,!4!), a (e! Bern, (..
pharmacist. Frito?+ay, Inc.!as formed by the 0EH0 merger of the Frito ompany,
founded by @lmer 3oolin in 0E28, and the *. 4. +ay ompany, founded by
*erman 4.+ay, also in 0E28. *erman +ay is chairman of the Board of 3irectors
of the ne! company< 3onald M. Kendall is president and chief e>ecuti#e officer.
-he ne! company reports sales of M90G million and has 0E,GGG employees.
Page 7
MATERIALS AND METHODS
COMPANY PROFILE
%epsio entered India in 0ELE and has gro!n to become one of the country6s
leading food and be#erage companies. One of the largest multinational in#estors
in the country, %epsio has established a business !hich aims to ser#e the long
term dynamic needs of consumers in India. %epsio India and its partners ha#e
in#ested more than ).S.MFGG million since the company !as established in the
country. %epsio pro#ides direct employment to B,GGG people and indirect
employment to HG,GGG people including suppliers and distributors.
%epsio nourishes consumers !ith a range of products from treats to healthy eats
that deli#er .oy as !ell as nutrition and al!ays, good taste. %epsio India6s
e>pansi#e portfolio includes iconic refreshment be#erages %epsi, F )%, Mirinda
and Mountain 3e!, in addition to lo! calorie options such as 3iet %epsi,
hydrating and nutritional be#erages such as Aquafina drin$ing !ater, isotonic
sports drin$s ? Gatorade, -ropicana0GGJ fruit .uices, and .uice based drin$s N
-ropicana (ectars, -ropicana -!ister and Slice. +ocal brands N +ehar @#er#ess
Soda, 3u$es +emonade and Mangola add to the di#erse range of brands.
%epsio6s foods company, F,i%oAL!*, is the leader in the branded salty snac$
mar$et and all Frito +ay products are free of trans?fat and MSG. It manufactures
L!*Bs Po%!%o C4ips/ C4ee%os e>%,'e sn!c=s/ Unc"e C4ipps and traditional
snac$s under the 0',=',e and Le4!, brands. -he company6s high fibre brea$fast
cereal, Oua$er Oats, and lo! fat and roasted snac$ options enhance the healthful
choices a#ailable to consumers. Frito +ay6s core products, +ay6s, Kur$ure, )ncle
hipps and heetos are coo$ed in Rice Bran Oil to significantly reduce saturated
fats and all of its products contain #oluntary nutritional labeling on their pac$ets.
-he group has built an e>pansi#e be#erage and foods business. -o support its
operations, %epsio has B2 bottling plants in India, of !hich 09 are company
o!ned and 8L are franchisee o!ned. In addition to this, %epsio6s Frito +ay foods
di#ision has 2 state?of?the?art plants. %epsio6s business is based on its
sustainability #ision of ma$ing tomorro! better than today. %epsio6s
Page 8
commitment to li#ing by this #ision e#ery day is #isible in its contribution to the
country, consumers and farmers.
In,! 0,is4n!)',%4* Noo*i &born October 8L, 0E99 in hennai, -amil
(adu, India' is the chair!oman and chief e>ecuti#e officer of %epsio, the !orldCs
fourth?largest food and Be#erage ompany. On August 0B, 8GGH, (ooyi !as
named the successor to Ste#e Reinemund as chief e>ecuti#e officer of the
company. She !as effecti#ely appointed as @O by %epsioCs board of directors
on October 0, 8GGH. According to the polls Forbes maga5ine conducted, (ooyi
ran$s fifth on the 8GGF list of -he 4orldCs 0GG Most %o!erful 4omen.
Mission o< PepsiCo
:Our mission is to be the !orld6s premier consumer %roducts ompany
focused on con#enient foods = be#erages. 4e see$ to produce financial re!ards
to in#estors as !e pro#ide opportunities for gro!th = enrichment to our
employees, our business partners = the communities in !hich !e operate = in
e#erything !e do, !e stri#e for honesty, fairness = integrity.;
Page 9
.ision o< PepsiCo
:%epsio6s responsibility is to continually impro#e all aspects of the !orld in
!hich !e operate? en#ironment, social, economic? creating a better tomorro! than
today.; Our #ision is put into action through programs = a focus on en#ironmental
ste!ardship, acti#ities to benefit society, = a commitment to build shareholder
#alue by ma$ing %epsio a truly sustainable company.
MILESTONES
3665 Mi"es%ones
P%epsio *onored 4ith 8GGL @nergy Star %artner of the Qear A!ard ?
3668 Mi"es%ones
P%epsio signs Maria Sharapo#a for International endorsement of ?
Gatorade and -ropicana
P-ropicana launches -ropicana *ealthy *eart !ith Omega?2s, the first ?
national orange .uice to include omega?2s
P%epsi launches :3esign Our %epsi an; (ational %romotion ?
PIndra (ooyi recei#es the Outstanding American by hoice ? A!ard
P%epsio ma$es Fortune maga5ine6s R0GG Best MBA ? @mployers6 list
P%epsi, 3iet %epsi and Mountain 3e! topped the 8GGF Brand Keys ?
ustomer +oyalty @ngagement Inde> !hich trac$s consumers6
relationships !ith brands
PMountain 3e! )n#eils unique limited edition aluminum bottles ?
P%epsio named a 8GGF 4or$ing Mother RBest ompany for ?
Multicultural 4omen6
P%epsio !ins t!o a!ards NBest @n#ironmental74ildlife ampaign and ?
Best C!'se M!,=e%in# E$en% AA !% Fiecuti#es appointed by the company support them.
M!,=e%in# S%,!%e#*+
Besides stamping the urban mar$et, the company6s focus is on penetration in
the periphery rural area.
T4e M!n'es the chemical = then the
suspended !ater settles do!n as sludge = clean !ater passes through retention
tan$. From this tan$, the !ater passes through sand filter containing fine sand =
pebbles = carbon filter contains granular carbon = finally through !ater polisher,
micron filter, )" lamp to ensure clear = sanitary !ater for use. Further !ater
used in the bottle !asher = boiler needs softening. For this purpose the !ater
from storage tan$, after passing through t!o filter beds containing fine sand =
granular carbon happens.
-hrough a bed of resin !here it is softened, this soft !ater is essential for use
in bottle !asher to reduce scale formation inside the machine.
S*,'p M!=in#+
For syrup ma$ing of a particular brand, collect quantity of sugar, !ater
acti#ated carbon &%o!der' = *yflo! super cell $no!n as filter aid are ta$en into a
sugar dissol#ing tan$ !hich is specially designed ma$ing a #acuum space to enter
steam = also fitted by a motor !ith agitator. Sugar syrup called ra! syrup is
prepared by de#eloping the sugar !ith continuous stirring = heating by steam
supplied by oil?fired boiler. -his hot syrup !ith the help of a pump is filtered
through a filter press attach !ith a series of quality filter paper to separate out
carbonated particles.
Bo%%"e 1!s4in#+
Bottle 4ashing is an important part in soft drin$ plant. -he emptied durable =
returnable bottles are used = returned from mar$et in plastic crates are fed to
bottle !ashing machine. -he machine double end system !ith circular chin to
Page 14
carry the bottles caustic soda, tri?sodium phosphate = sodium?gluconate are added
to the caustic tan$ filled in !ith !ater heated by steam supplied by the boiler. -he
empty bottles enter to the hot caustic tan$ in one end = after being cleaned by the
hot caustic solution = finally !ashed !ith !ater through spray?.ets fitted are
discharged in other end. -hen !ashed bottles pass on con#eyor chain against
laminated board for further inspection in the direction filling machine.
Fi""in#+
Finished syrup =treated !ater line are connected to a dosing pump !hich
mi>es syrup = !ater !ith the ratio of 0A9 = syrup mi>ed !ith !ater entered to
carbonated tan$ to mi> !ith carbon dio>ide gas are preser#ed in cylinder for use.
-he cylinders are connected through O
8
manifold tan$ to use requisite quantity
of gas. -he syrup passes through %*@, !hich is cooled itself by circulation of
chilled, glycol supplied chilling compressor. -o run the machine F?88 gas is used.
-he syrup being chilled easily mi>es !ith O
8
gas = enters to the filter for
bottling. -he filter is fitted !ith filling #al#es = lift ylinders.
C,oCnin# E Coin#+
After be#erage is filled in bottles it immediately goes to the cro!ner !here !ith
the help of cro!n croc$ the bottles are sealed to protect the carbonating, fla#or,
outside contamination = spoilage till the contained be#erage is consumed.
-hen sealed bottles passed on the con#eyor chain are coded by a coding
machine on their !ay to out end. -he sealed bottles are inspected properly against
inspection light !hile passing through the con#eyor fitted !ith SS chain. -he
empty plastic crates passing through a con#eyor enter to crate !asher machine =
it is !ashed = mo#es through the con#eyor !here finished products are
accumulated. -hen the products are $ept in plastic crates, !hich are durable in
nature = returnable by buyer, put on palates = sent to shipping for shipment.
Tes% o< P,o'c%s+
Finally the finished syrup during bottling is tested in laboratory to meet the
permanent = also to get standard = quality products.
Page 15
Pe,ecute the sale, only the seller does that. -o be precise the sale
completes prior to the payment and gi#es rise to the obligation of payment. If the
seller completes the first t!o abo#e stages &consent and passing o!nership' of the
sale prior to settlement of the price the sale is still #alid and gi#es rise to an
obligation to pay.
UU
S!"es %ec4niF'es
T4e s!"e c!n (e )!e %4,o'#4+
i. 3irect Sales, in#ol#ing person to person contact
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a. Buying Facilitation Method
ii. %ro?forma sales
iii. Agency?based
a' Sales agents &real estate, manufacturing'
b' Sales Outsourcing through direct branded representation
c' -ransaction sales
d' onsultati#e sales
e' omple> sales
f' onsignment
g' -elemar$eting or telesales
h' Retail or consumer
i#. 3oor?to?door or tra#eling salesman
#. Request for %roposal is an in#itation for suppliers, through a bidding
process, to submit a proposal on a specific product or ser#ice. An RF% is usually
part of a comple> sales process, also $no!n as enterprise sales.
#i. Business?to?business V Business?to?business sales are much more relationship
based o!ing to the lac$ of emotional attachment to the products in question.
Industrial7%rofessional Sales is selling from one business to another
#ii. %harmaceuticals Sales
#iii. @lectronic 4eb V Business?to?business and business?to consumer
@lectronic 3ata Interchange &@3I' is a set of standards for structuring
information to be electronically e>changed bet!een and !ithin businesses.
i>. Indirect, human?mediated but !ith indirect contact Mail order
S!"es !n )!,=e%in# ,e"!%ions4ip
Mar$eting plays a #ery important part in sales. If the
mar$eting
department generates a potential customers list, it can be beneficial for sales. -he
mar$eting departmentCs goal is to bring people to the sales team using promotional
techniques.
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PAd#ertising ?
PSales promotion ?
P%ublicity ?
P%ublic Relations. ?
In most large corporations, the mar$eting department is structured
in a similar fashion to the sales department and the managers of these teams must
coordinate efforts in order to dri#e profits and business success. 3ri#ing more
customers Tthrough the doorT gi#es the sales department a better chance by ratio
of selling their product to the consumer.
P,o)o%ion
It in#ol#es disseminating information about a product, product line, brand,
or company. It is one of the four $ey aspects of the mar$eting mi>. &-he other
three elements are product management, pricing, and distribution.' %romotion is
generally sub?di#ided into t!o partsA
i. A(o$e %4e "ine p,o)o%ion+
%romotion in the media &e.g. -", radio, ne!spapers, Internet
andMobile %hones' in !hich the ad#ertiser pays an ad#ertising agency to
place the ad.
ii. Be"oC %4e "ine p,o)o%ion+
All other promotion. Much of this is intended to be subtle enough that the
consumer is una!are that promotion is ta$ing place. @.g. sponsorship, product
placement, endorsements, sales promotion, merchandising, direct mail, personal
selling, public relations, trade sho!s -he specification of these four #ariables
creates a promotional mi> or promotional plan. A promotional mi> specifies ho!
much attention to pay to each of the four subcategories, and ho! much money to
budget for each. A promotional plan can ha#e a !ide range of ob.ecti#es,
includingA sales increases, ne! product acceptance, creation of brand equity,
positioning, competiti#e retaliations, or creation of a corporate image. An e>ample
of a fully integrated, long?term, large?scale promotion are and %epsi Stuff.
O(Gec%i$es o< S!"e P,o)o%ion
0. Simulating business user or household for demand products
Page 22
8. Impro#ing the mar$et performance of middle men and sales people.
2. -o attract ne! customer.
B. -o increase impulse selling.
9. -o encourage greater use by e>isting customers.
H. Superior Merchandi5ing.
F. Increase stoc$s = sales push.
L. Better product $no!ledge &as a spin off'.
E. Better shelf?space at retail stores.
0G. Immediate results.
00. Impro#ement 3ealer response in future.
08. -o supports the ad#ertising program.
02. -o support the sales team dri#e.
0B. -o support the sales channels ? trade.
09. -o accelerate the sales
0H. -o dri#e the people traffic to the point of sales.
0F. -o stimulate the people to ma$e the buying decision.
0L. -o influence the people to choose a particular brand.
0E. -o help the retail to mo#e the merchandise
8G. -o help to liquidate the stoc$s.
80. -o help to o#ercome the competition.
88. -o help to gain the mar$et share.
Page 23
F!c%o,s !ample of the Interacti#e Internet
Ad .
02. Re(!%es+ onsumers are offered money bac$ if the receipt and
barcode are mailed to the producer.
0B& Con%es%sHsCeeps%!=esH#!)es+ -he consumer is automatically entered into the
e#ent by purchasing the product.
09& Poin%Aotra commission paid to retail
employees to push products.
#ii. T,!e isco'n%s ?!"so c!""e pensi#e and
leads to a rise price of the products.
H. Sales promotion increases the e>penses of the company on Sales = distribution
e>penses.
F. Sales promotion increases the burden on the company men.
L. Sales promotion increases the paper !or$ lengthy = complication too.
E. Sales promotion decreases the storage capacity in the store house.
0G. Sales promotion increases the maintenance cost of the firm.
00. Sales promotion gi#es the chance to the distributor to do malpractice.
Page 29
RESULTS AND DISCUSSION
THEORITICAL FRAME1OR0
Abo#e literature re#ie! gi#e the information about the sale, promotion, and sale?
promotion relationship, type of sale promotion, merit = demerit of sale
promotion. From the type of sale promotion I considered only the :-rade sales
promotion; because my scope of study restricted to the trade only. -here is the
#arious sale promotion techniques is there such as /0D -rade allo!ancesA short
term incenti#e offered to induce a retailer to stoc$ up on a product. /8D 3ealer
loaderA An incenti#e gi#en to induce a retailer to purchase and display a product.
/2D -rade contestA A contest to re!ard retailers that sell the most products.
/BD%ointof? purchase displaysA @>tra sales tools gi#en to retailers to boost sales.
/9D -raining programsA dealer employees are trained in selling the product. /HD
%ush moneyA also $no!n as TspiffsT. An e>tra commission paid to tail employees
to push products. /FD -rade discounts &also called functional discounts'A -hese are
payments to distribution channel members for performing some function. But,
e#ery trade promotional acti#ity is not effecti#e due to the follo!ing reasonA
0. Schemes not accepted by the customer, and
8. Scheme is not recei#ed by the customer.
First of all I decided to prepare the questionnaire according to my
topic !ith the help of different boo$ = collected information from the maga5ine
= then decided to !al$ in for the direct inter#ie! from the o!ner of the outlets of
BG different stores. (e>t step, I decided to ta$e a random sample of 8G outlets
!hich is the representati#e of the !hole population. -hen, prepare table from the
collected information = also represent those numeric figure on different chat !ith
the analysis. -hen I decided to !rite finding = then conclusion of the pro.ect
report.
Page 30
OBJECTI.E OF STUDY
? -o $no! the sales promotion tools used by %epsio ompany.
? -o $no! about the sales promotion impacts on sale of the product of
%epsio ompany
? -o find out the best promotional tool preferred by the retailers.
? -o $no! the pea$ periods of sales promotion acti#ities.
? -o analy5e the strength = !ea$ness of %epsio.
Page 31
RESEARCH METHODOLOGY
-he methodology used in conducting the research !or$ on %@%SIO I(3IA
+-3 ma.or emphasis on its Sale %romotion !hich in#ol#ed the follo!ing stepsA
2& Deed type = the rest H
outlets are e>clusi#ely oca?ola &S' counters.
Page 35
-&FOCUS BRAND
From the abo#e study I $ne! that most of the outlets focus on glass bottles
&RGB'.
Other fe! outlets focus on %@-, A(, Mineral 4ater or Soda.
Page 36
7& 0NO1ING ABOUT SCHEME
From this figure it is clear that most of the outlets get
information about the promotional schemes from the salesman of the company.
Rests of the outlets get information by SMS, ustomer e>ecuti#es or any other
sources of information.
Page 37
9&TYPES OF SCHEMES
-he abo#e figure sho!s that the regular promotional scheme is #ery much popular
because the retailers !ant permanent income throughout the year. -hey also li$e
#arious promotional schemes such as )- and Scratch card .Incenti#e based
scheme is not much popular because in this scheme some target is gi#en to the
o!ners of the outlets.
Page 38
5. PROMOTIONAL SCHEME RECEI.ED BYOUTLETS
)-, Refilling = Scratch card Scheme is most popular = $no!n scheme recei#ed
by ma>imum outlets .Gift and 3iscount 7Rebate schemes are not recei#ed by
ma>imum outlets because they ha#e some conditions to be fulfilled for getting it.
Page 39
8& PROMOTIONAL SCHEMES APPRECIATED BY THE OUTLETS
After the sur#ey, I came to $no! that the retailers appreciate mostly t!o types of
promotional schemes i.e. )- = Refilling because< here the o!ners get Benefits
of the scheme from sales person on the spot of purchase.
Page 40
5&P,o)o%ion!" %oo"s A$!i"!("e !% ipenses %4,o'#4o'% %4e *e!,
Page 42
3uring summer &Mar?1une' the demand for cold drin$ is high so %epsio
reduces the promotional e>penses and at rest of the period promotional e>penses
is high due to lo! mar$et demand. 3uring the !inter season &(o#?Feb'
promotional e>penses is ma>imum.
Page 43
22& F!c%o,s !periences and not .ust the
products. -he Indian Organi5ations ha#e to concentrate on deli#ering the
e>periences to the customers leading to satisfaction and association !ith all the
dimensions of the brand. -hese e>periences can be deli#ered by in#ol#ing the
customer in the supply chain !hich demands impro#ement from the organi5ation
in terms of training the employees and aligning the culture to deli#er #alue to the
customers. -he participation of the customers can be ensured by using no#el
methods of communication and branding. -he %rofit and Sustainability of Indian
Brands !ill depend on ho! efficiently and quic$ly the organi5ation can adapt to
these ne! demands of the customers.
Page 47
RECOMMENDATION
0. ompany should gi#e $no!ledge to the salesman about the promotional
Scheme so that they can better understand the importance of promotional
acti#ities.
8. -here should be a regular meeting bet!een distributor = company about
the implementation of sales promotion.
2. ompany should pro#ide rac$s to more outlets to $eep %et bottles for
display.
B. ompany should adopt the promotional acti#ities properly and not in a
trial and error method.
9. ompany should arrange training or Seminar programs for retailers to
ma$e them a!are about the company6s sales ob.ecti#e and enhance their
selling ability.
H. ompany should pro#ide more profitable schemes so that the retailers can
happily accept it.
F. ompany should spend more on %romotional schemes on the !ea$er
products li$e %epsi, M.de! etc to boost up Sales.
Page 48
APPENDICES
QUESTIONNAIRE
0. (ame of OutletsA WWWWWWWWWWWWWWWWWWW.
8. ontact (umberA WWWWWWWWWWWWWWWWWWW.
2. +ocation of OutletsA WWWWWWWWWWWWWWWWW
B. (ame of 3istributorA WWWWWWWWWWW.
9. (ature of OutletsA SeasonalA (on?SeasonalA
H. -ype of OutletsA Mi>edA @>clusi#eA
F. Focus BrandA RGB7%@-7A(7Mineral 4ater7Soda
L. *o! you $no! about SchemeA SMS7 Salesmen7 .@7 Other sources
E. 4hich Scheme you $no!A WWWWWWWWWWWWWWW.
0G. 4hich type of Scheme you recei#edA WWWWWWWWWW
00. 4hich type of scheme you appreciateA WWWWWWWWW
08. *o! the processes to getting scheme areA Slo!7 Fast.
02. 3oes the sales man daily #isit your storeX Q7(
0B. 3oes the salesman tell you about company6s SchemeA Q7(
09. Is Any AgreementA Qes7 (o. If yes, then 0.!ith %SIA 8.!ith SA
0H. 3o you $no! the name of .@X
0F. %romotional tools A#ailableA Rac$7"isi7Signboards7pop 3isplay.
0L. 3o you purchase %epsio products if offers are gi#en to you e#en if you
ha#e a large stoc$X
0E. 4hy do you sell pepsi productsX *igh margin7*igh ustomer
demand7More schemes7%roduct quality = pac$aging7hea#y Ad#ertisement.
8G. Are you satisfied !ith the total mar$eting effort of %epsioX Q7(
80. %roblem7SuggestionWWWWWWWWWWWWWW
Page 49
REFERENCE
BOOKSA
0. Sa>ena, Ran.an, RMar$eting Management6, -A-A McGRA4 *I++, (e! 3elhi,
-hird @dition.
8. Kotler, %hilip, Ke#in +ane Keller, Abraham Koshy, Mithilesh!ar
1ha,RMar$eting Management6, %@ARSO( %rentice *all, (e! 3elhi, -!elfth
@dition.
2. Ramas!amy, ". S., S (ama$umari, RMar$eting Management6,
MAMI++A( I(3IA +-3., -hird @dition.
B..R.Kothari, Business Research methodology , (e! age publication.
9. Bryman, Alan, @mma Bell, Rbusiness research method6, OSFOR3, second
@dition.
MAGAYI(@S, 1O)R(A+S = (@4S %A%@RS
0. Business !orld.
2. @conomics -imes.
4ebsitesA
!!!.pepsicoindia.com,
!!!.!i$ipedia.com,
!!!.google.co.in,
!!!.youngistaan.com
Page 50
doc_699624463.doc
FULFILLMENT OF THE
REQUIREMENT OF PGPM
OF
AMITY GLOBAL BUSINESS
SCHOOL
PROJECT REPORT
ON
“TRADE DIMENSION”
Pepsico Ini! Ho"in#s P$%& L%&
S'()i%%e (*+
P,i%i S,i$!s%!$!
MBA -, SEM
SEC+ A
Page i
A Report On
“TRADE DIMENSION”
By
PRITI SRI.ASTA.A
A Report Submitted in partial Fulfilment of the requirements of MBA program.
Faculty Guide Industry Guide
Mrs. Mamta ha!la Mr. "i#e$a %atel
Amity Global Business School &Mar$eting'
(oida &).%.' %epsico India *olding %#t +td.
Gomti (agar, +uc$no!.
Page ii
AMITY GLOBAL BUSINESS SCHOOL/ NOIDA
AMITY UNI.ERSITY UTTAR PRADESH
CERTIFICATE OF ORIGIN
-his is to certify that %riti Sri#asta#a a student of MBA from AGBS Amity
)ni#ersity, (oida under fulfilment of the course has successfully done her pro.ect
on /Trade Dimension, of Pepsico India Holding Pvt. Ltd. , Gomti Nagar from 0
st
1une to 20
st
1uly. 3uring the period !e found her sincere and hard!or$ing.
4e declare that the !or$ done by her is her o!n and original to the best of our
$no!ledge.
4e !ish her success and bright future in life.
Authori5ed signatory
Asst. manager
[Viveka Patel]
&Signature'
Page iii
AC0NO1LEDGEMENT
It is not a single man6s effort !hich is sufficient for the accomplishment of a
Research. "arious factors, situations and persons integrate to pro#ide the
bac$ground for accomplishment of a tas$ requires the effort of so many people
and the !or$ is not different.
I ac$no!ledge here the names of those people !ho ha#e been instrumental in
preparation of their Research. I !ould li$e to than$ [Mr. Viveka Patel, Manager]
for his guidance and constant support in the successful completion of my pro.ect.
I !ould also li$e to than$ the entire team of %epsico India *olding %#t. +td. for
the constant support and help in the successful completion of my pro.ect.
I am sincerely indebted to Mr 7 Ms /insert name] for his 7 her #aluable suggestion
and inspiration to underta$e this study and his 7 her help !hich he 7 she ga#e for
the completion of this research.
%riti Sri#asta#a
Page iv
PREFACE
-his pro.ect has been underta$en in the partial fulfilment of our internship require
during the pursuance of MBA from Amity Global Business School Sec 089 (oida.
%ractical internship is an essential part of e#ery professional program. It is #ery
helpful in pro#ing $no!ledge for the practical aspects of academic studies.
In the pro.ect title :Trade Dimension; the area co#ered includes /ligan!, Vikas
Nagar, "#$rram Nagar and %ankip$ram]. It has been my endea#our to bring out
the procedure regarding efficient collection of information, its presentation< and
also the decision ma$ing process arising they6re from.
Page v
TABLE OF CONTENTS
S,&
No&
CONTENT P!#e
no&
2& In%,o'c%ion 2
3& M!%e,i!"s !n Me%4os 5
-& Res'"%s !n Disc'ssion -6
7& Conc"'sion 78
9& Reco))en!%ions 75
:& Appenices 7;
8& ReamplesA
0. )nder the cro!n &)-'
8. Refilling.
2. %oint of purchase displays
B. Rebates etc.
Sales promotions can be directed at the customer, sales staff, or distribution
channel members &such as retailers'. Businesses can target sales promotions at
three different audiencesA consumers, resellers, and the companyCs o!n sales
force. Sales promotion acts as a competiti#e !eapon by pro#iding an e>tra
incenti#e for the target audience to purchase or support one brand o#er another. It
is particularly effecti#e in spurring product trial and unplanned purchases. Most
mar$eters belie#e that a gi#en product or ser#ice has an established percei#ed
price or #alue, and they use sales promotion to change this price?#alue
relationship by increasing the #alue and7or lo!ering the price. ompared to the
other components of the mar$eting mi> &ad#ertising, publicity, and personal
selling', sales promotion usually operates on a shorter time line, uses a more
rational appeal, returns a tangible or real #alue, fosters an immediate sale, and
contributes highly to profitability. Acti#ities, materials, de#ices, and techniques
used to supplement the ad#ertising and mar$eting efforts and help coordinate the
Page 4
ad#ertising !ith the personal selling effort. S!eepsta$es are among the best?
$no!n sales promotion tools, but other e>amples include special displays,
coupons, promotional discounts, contests, and gift offers.
My sub.ect of study is that ho! the company6s promotional
schemes stimulates the products demand and ho! the retailers response o#er
scheme, !hat nature of the outlets &i.e. seasonal =non?seasonal', ho! they $no!
about promotional scheme &i.e. through SMS, salesman, @ etc', !hether the
outlets prefer to sell RGB /Regular glass bottleD, %@- /plastic bottleD, A(,
Acquafina mineral !ater, +eher soda.
Page 5
INTRODUCTION TO INDUSTRY+
BE.ERAGES INDUSTRY
Soft drin$ !as started !ith the idea of quenching the thirst of the persons
tra#eling. It !as also felt that reliable good !ater !as not a#ailable e#ery!here.
So people !ould rely on their pac$ed bottle and !ith the idea it made these drin$
a#ailable mostly at these place !here !ater !as not a#ailable is on high!ays and
long distance train.
Slo!ly and slo!ly !ith its beautiful tests these become #ery poplar and
they are not only a#ailable in the mar$ets and street corner but also people ha#e
started $eeping it in their houses.
%arle e>port %#t. limited is regard as the first Indian company introducing
Li)c! a +emon drin$ omplimentary to their !ell entrenched gold spot in 0EFG.
-he credit of populari5ing the soft drin$ goes to coca cola this !as the drin$,
!hich !as lin$ed, by all ladies, gents and children.
(o! a day, the soft drin$ for quenching -hirst but it loo$s more often they
are ta$en of habits.
Gold spot is considered as the first branded soft drin$ established.
&'(T D)IN"& M)"*T IN INDI
(on?alcoholic soft drin$ be#erage mar$et can be di#ided into fruit drin$s
= soft drin$s. Soft drin$s can be further di#ided into carbonated = non?
carbonated drin$s. ola, lemon = oranges are carbonated drin$s !hile mango
fla#or comes under non?carbonated category. India is one of the top fi#e mar$ets
in terms of gro!th of the soft drin$s mar$et. -he per capita consumption of soft
drin$s in the country is estimated to be around H bottles per annum in the year
8GG2. It is #ery lo! compared to the corresponding figures in )S &HGGI bottles
per annum'. But being one of the fastest gro!ing mar$ets and by the sheer
#olumes, India is a promising mar$et for soft drin$s. -he ma.or players in the soft
drin$s mar$et in India are %epsio and oca?ola o, li$e else!here in the
!orld. oca?ola acquired a number of local brands li$e +imca, Gold Spot and
Page 6
-hums )p !hen it entered Indian mar$et for the second time. %epsi o6s soft
drin$ portfolio also consists of Miranda and F)p along !ith %epsi. -he mar$et
share of each of the company is more or less the same, though there is a conflict in
the estimates quoted by different sources
-he ma.or ingredient in a soft drin$ is !ater. It constitutes close to EGJ of the
soft drin$ content. Added to this, the drin$ also contains s!eeteners, arbon
dio>ide, itric Acid7Malic acid, olors, %reser#ati#es, Anti O>idants and other
emulsifying agents, etc.
-he mar$et in India is slo!ly mo#ing from non?alcoholic
carbonated drin$s to fruit based drin$s and also to plain bottled !ater. Soft drin$s
mar$et in India gre! at a slo!er rate in 8GG2 and 8GGB compared to 8GG8.In 8GGB,
!ith 08J gro!th #olume reached o#er 2.G billion liters. *o!e#er, the gro!th rate
mar$ed a slo!do!n from .ust belo! 0FJ in 8GG8. -his poorer performance
stemmed mainly from slo!er gro!th !ithin carbonates. Bottled !ater and 0GGJ
.uices continued to e>pand at robust rates, appealing to the health conscious.
BRIEF HISTORY
%epsio, Inc. is founded by 3onald M. Kendall, %resident and
hief @>ecuti#e Officer of %epsi?ola and *erman 4. +ay, hairman and hief
@>ecuti#e Officer of Frito?+ay, through the merger of the t!o companies. %epsi?
ola !as created in the late 0LEGs by C!"e( B,!4!), a (e! Bern, (..
pharmacist. Frito?+ay, Inc.!as formed by the 0EH0 merger of the Frito ompany,
founded by @lmer 3oolin in 0E28, and the *. 4. +ay ompany, founded by
*erman 4.+ay, also in 0E28. *erman +ay is chairman of the Board of 3irectors
of the ne! company< 3onald M. Kendall is president and chief e>ecuti#e officer.
-he ne! company reports sales of M90G million and has 0E,GGG employees.
Page 7
MATERIALS AND METHODS
COMPANY PROFILE
%epsio entered India in 0ELE and has gro!n to become one of the country6s
leading food and be#erage companies. One of the largest multinational in#estors
in the country, %epsio has established a business !hich aims to ser#e the long
term dynamic needs of consumers in India. %epsio India and its partners ha#e
in#ested more than ).S.MFGG million since the company !as established in the
country. %epsio pro#ides direct employment to B,GGG people and indirect
employment to HG,GGG people including suppliers and distributors.
%epsio nourishes consumers !ith a range of products from treats to healthy eats
that deli#er .oy as !ell as nutrition and al!ays, good taste. %epsio India6s
e>pansi#e portfolio includes iconic refreshment be#erages %epsi, F )%, Mirinda
and Mountain 3e!, in addition to lo! calorie options such as 3iet %epsi,
hydrating and nutritional be#erages such as Aquafina drin$ing !ater, isotonic
sports drin$s ? Gatorade, -ropicana0GGJ fruit .uices, and .uice based drin$s N
-ropicana (ectars, -ropicana -!ister and Slice. +ocal brands N +ehar @#er#ess
Soda, 3u$es +emonade and Mangola add to the di#erse range of brands.
%epsio6s foods company, F,i%oAL!*, is the leader in the branded salty snac$
mar$et and all Frito +ay products are free of trans?fat and MSG. It manufactures
L!*Bs Po%!%o C4ips/ C4ee%os e>%,'e sn!c=s/ Unc"e C4ipps and traditional
snac$s under the 0',=',e and Le4!, brands. -he company6s high fibre brea$fast
cereal, Oua$er Oats, and lo! fat and roasted snac$ options enhance the healthful
choices a#ailable to consumers. Frito +ay6s core products, +ay6s, Kur$ure, )ncle
hipps and heetos are coo$ed in Rice Bran Oil to significantly reduce saturated
fats and all of its products contain #oluntary nutritional labeling on their pac$ets.
-he group has built an e>pansi#e be#erage and foods business. -o support its
operations, %epsio has B2 bottling plants in India, of !hich 09 are company
o!ned and 8L are franchisee o!ned. In addition to this, %epsio6s Frito +ay foods
di#ision has 2 state?of?the?art plants. %epsio6s business is based on its
sustainability #ision of ma$ing tomorro! better than today. %epsio6s
Page 8
commitment to li#ing by this #ision e#ery day is #isible in its contribution to the
country, consumers and farmers.
In,! 0,is4n!)',%4* Noo*i &born October 8L, 0E99 in hennai, -amil
(adu, India' is the chair!oman and chief e>ecuti#e officer of %epsio, the !orldCs
fourth?largest food and Be#erage ompany. On August 0B, 8GGH, (ooyi !as
named the successor to Ste#e Reinemund as chief e>ecuti#e officer of the
company. She !as effecti#ely appointed as @O by %epsioCs board of directors
on October 0, 8GGH. According to the polls Forbes maga5ine conducted, (ooyi
ran$s fifth on the 8GGF list of -he 4orldCs 0GG Most %o!erful 4omen.
Mission o< PepsiCo
:Our mission is to be the !orld6s premier consumer %roducts ompany
focused on con#enient foods = be#erages. 4e see$ to produce financial re!ards
to in#estors as !e pro#ide opportunities for gro!th = enrichment to our
employees, our business partners = the communities in !hich !e operate = in
e#erything !e do, !e stri#e for honesty, fairness = integrity.;
Page 9
.ision o< PepsiCo
:%epsio6s responsibility is to continually impro#e all aspects of the !orld in
!hich !e operate? en#ironment, social, economic? creating a better tomorro! than
today.; Our #ision is put into action through programs = a focus on en#ironmental
ste!ardship, acti#ities to benefit society, = a commitment to build shareholder
#alue by ma$ing %epsio a truly sustainable company.
MILESTONES
3665 Mi"es%ones
P%epsio *onored 4ith 8GGL @nergy Star %artner of the Qear A!ard ?
3668 Mi"es%ones
P%epsio signs Maria Sharapo#a for International endorsement of ?
Gatorade and -ropicana
P-ropicana launches -ropicana *ealthy *eart !ith Omega?2s, the first ?
national orange .uice to include omega?2s
P%epsi launches :3esign Our %epsi an; (ational %romotion ?
PIndra (ooyi recei#es the Outstanding American by hoice ? A!ard
P%epsio ma$es Fortune maga5ine6s R0GG Best MBA ? @mployers6 list
P%epsi, 3iet %epsi and Mountain 3e! topped the 8GGF Brand Keys ?
ustomer +oyalty @ngagement Inde> !hich trac$s consumers6
relationships !ith brands
PMountain 3e! )n#eils unique limited edition aluminum bottles ?
P%epsio named a 8GGF 4or$ing Mother RBest ompany for ?
Multicultural 4omen6
P%epsio !ins t!o a!ards NBest @n#ironmental74ildlife ampaign and ?
Best C!'se M!,=e%in# E$en% AA !% Fiecuti#es appointed by the company support them.
M!,=e%in# S%,!%e#*+
Besides stamping the urban mar$et, the company6s focus is on penetration in
the periphery rural area.
T4e M!n'es the chemical = then the
suspended !ater settles do!n as sludge = clean !ater passes through retention
tan$. From this tan$, the !ater passes through sand filter containing fine sand =
pebbles = carbon filter contains granular carbon = finally through !ater polisher,
micron filter, )" lamp to ensure clear = sanitary !ater for use. Further !ater
used in the bottle !asher = boiler needs softening. For this purpose the !ater
from storage tan$, after passing through t!o filter beds containing fine sand =
granular carbon happens.
-hrough a bed of resin !here it is softened, this soft !ater is essential for use
in bottle !asher to reduce scale formation inside the machine.
S*,'p M!=in#+
For syrup ma$ing of a particular brand, collect quantity of sugar, !ater
acti#ated carbon &%o!der' = *yflo! super cell $no!n as filter aid are ta$en into a
sugar dissol#ing tan$ !hich is specially designed ma$ing a #acuum space to enter
steam = also fitted by a motor !ith agitator. Sugar syrup called ra! syrup is
prepared by de#eloping the sugar !ith continuous stirring = heating by steam
supplied by oil?fired boiler. -his hot syrup !ith the help of a pump is filtered
through a filter press attach !ith a series of quality filter paper to separate out
carbonated particles.
Bo%%"e 1!s4in#+
Bottle 4ashing is an important part in soft drin$ plant. -he emptied durable =
returnable bottles are used = returned from mar$et in plastic crates are fed to
bottle !ashing machine. -he machine double end system !ith circular chin to
Page 14
carry the bottles caustic soda, tri?sodium phosphate = sodium?gluconate are added
to the caustic tan$ filled in !ith !ater heated by steam supplied by the boiler. -he
empty bottles enter to the hot caustic tan$ in one end = after being cleaned by the
hot caustic solution = finally !ashed !ith !ater through spray?.ets fitted are
discharged in other end. -hen !ashed bottles pass on con#eyor chain against
laminated board for further inspection in the direction filling machine.
Fi""in#+
Finished syrup =treated !ater line are connected to a dosing pump !hich
mi>es syrup = !ater !ith the ratio of 0A9 = syrup mi>ed !ith !ater entered to
carbonated tan$ to mi> !ith carbon dio>ide gas are preser#ed in cylinder for use.
-he cylinders are connected through O
8
manifold tan$ to use requisite quantity
of gas. -he syrup passes through %*@, !hich is cooled itself by circulation of
chilled, glycol supplied chilling compressor. -o run the machine F?88 gas is used.
-he syrup being chilled easily mi>es !ith O
8
gas = enters to the filter for
bottling. -he filter is fitted !ith filling #al#es = lift ylinders.
C,oCnin# E Coin#+
After be#erage is filled in bottles it immediately goes to the cro!ner !here !ith
the help of cro!n croc$ the bottles are sealed to protect the carbonating, fla#or,
outside contamination = spoilage till the contained be#erage is consumed.
-hen sealed bottles passed on the con#eyor chain are coded by a coding
machine on their !ay to out end. -he sealed bottles are inspected properly against
inspection light !hile passing through the con#eyor fitted !ith SS chain. -he
empty plastic crates passing through a con#eyor enter to crate !asher machine =
it is !ashed = mo#es through the con#eyor !here finished products are
accumulated. -hen the products are $ept in plastic crates, !hich are durable in
nature = returnable by buyer, put on palates = sent to shipping for shipment.
Tes% o< P,o'c%s+
Finally the finished syrup during bottling is tested in laboratory to meet the
permanent = also to get standard = quality products.
Page 15
Pe,ecute the sale, only the seller does that. -o be precise the sale
completes prior to the payment and gi#es rise to the obligation of payment. If the
seller completes the first t!o abo#e stages &consent and passing o!nership' of the
sale prior to settlement of the price the sale is still #alid and gi#es rise to an
obligation to pay.
UU
S!"es %ec4niF'es
T4e s!"e c!n (e )!e %4,o'#4+
i. 3irect Sales, in#ol#ing person to person contact
Page 20
a. Buying Facilitation Method
ii. %ro?forma sales
iii. Agency?based
a' Sales agents &real estate, manufacturing'
b' Sales Outsourcing through direct branded representation
c' -ransaction sales
d' onsultati#e sales
e' omple> sales
f' onsignment
g' -elemar$eting or telesales
h' Retail or consumer
i#. 3oor?to?door or tra#eling salesman
#. Request for %roposal is an in#itation for suppliers, through a bidding
process, to submit a proposal on a specific product or ser#ice. An RF% is usually
part of a comple> sales process, also $no!n as enterprise sales.
#i. Business?to?business V Business?to?business sales are much more relationship
based o!ing to the lac$ of emotional attachment to the products in question.
Industrial7%rofessional Sales is selling from one business to another
#ii. %harmaceuticals Sales
#iii. @lectronic 4eb V Business?to?business and business?to consumer
@lectronic 3ata Interchange &@3I' is a set of standards for structuring
information to be electronically e>changed bet!een and !ithin businesses.
i>. Indirect, human?mediated but !ith indirect contact Mail order
S!"es !n )!,=e%in# ,e"!%ions4ip
Mar$eting plays a #ery important part in sales. If the
mar$eting
department generates a potential customers list, it can be beneficial for sales. -he
mar$eting departmentCs goal is to bring people to the sales team using promotional
techniques.
Page 21
PAd#ertising ?
PSales promotion ?
P%ublicity ?
P%ublic Relations. ?
In most large corporations, the mar$eting department is structured
in a similar fashion to the sales department and the managers of these teams must
coordinate efforts in order to dri#e profits and business success. 3ri#ing more
customers Tthrough the doorT gi#es the sales department a better chance by ratio
of selling their product to the consumer.
P,o)o%ion
It in#ol#es disseminating information about a product, product line, brand,
or company. It is one of the four $ey aspects of the mar$eting mi>. &-he other
three elements are product management, pricing, and distribution.' %romotion is
generally sub?di#ided into t!o partsA
i. A(o$e %4e "ine p,o)o%ion+
%romotion in the media &e.g. -", radio, ne!spapers, Internet
andMobile %hones' in !hich the ad#ertiser pays an ad#ertising agency to
place the ad.
ii. Be"oC %4e "ine p,o)o%ion+
All other promotion. Much of this is intended to be subtle enough that the
consumer is una!are that promotion is ta$ing place. @.g. sponsorship, product
placement, endorsements, sales promotion, merchandising, direct mail, personal
selling, public relations, trade sho!s -he specification of these four #ariables
creates a promotional mi> or promotional plan. A promotional mi> specifies ho!
much attention to pay to each of the four subcategories, and ho! much money to
budget for each. A promotional plan can ha#e a !ide range of ob.ecti#es,
includingA sales increases, ne! product acceptance, creation of brand equity,
positioning, competiti#e retaliations, or creation of a corporate image. An e>ample
of a fully integrated, long?term, large?scale promotion are and %epsi Stuff.
O(Gec%i$es o< S!"e P,o)o%ion
0. Simulating business user or household for demand products
Page 22
8. Impro#ing the mar$et performance of middle men and sales people.
2. -o attract ne! customer.
B. -o increase impulse selling.
9. -o encourage greater use by e>isting customers.
H. Superior Merchandi5ing.
F. Increase stoc$s = sales push.
L. Better product $no!ledge &as a spin off'.
E. Better shelf?space at retail stores.
0G. Immediate results.
00. Impro#ement 3ealer response in future.
08. -o supports the ad#ertising program.
02. -o support the sales team dri#e.
0B. -o support the sales channels ? trade.
09. -o accelerate the sales
0H. -o dri#e the people traffic to the point of sales.
0F. -o stimulate the people to ma$e the buying decision.
0L. -o influence the people to choose a particular brand.
0E. -o help the retail to mo#e the merchandise
8G. -o help to liquidate the stoc$s.
80. -o help to o#ercome the competition.
88. -o help to gain the mar$et share.
Page 23
F!c%o,s !ample of the Interacti#e Internet
Ad .
02. Re(!%es+ onsumers are offered money bac$ if the receipt and
barcode are mailed to the producer.
0B& Con%es%sHsCeeps%!=esH#!)es+ -he consumer is automatically entered into the
e#ent by purchasing the product.
09& Poin%Aotra commission paid to retail
employees to push products.
#ii. T,!e isco'n%s ?!"so c!""e pensi#e and
leads to a rise price of the products.
H. Sales promotion increases the e>penses of the company on Sales = distribution
e>penses.
F. Sales promotion increases the burden on the company men.
L. Sales promotion increases the paper !or$ lengthy = complication too.
E. Sales promotion decreases the storage capacity in the store house.
0G. Sales promotion increases the maintenance cost of the firm.
00. Sales promotion gi#es the chance to the distributor to do malpractice.
Page 29
RESULTS AND DISCUSSION
THEORITICAL FRAME1OR0
Abo#e literature re#ie! gi#e the information about the sale, promotion, and sale?
promotion relationship, type of sale promotion, merit = demerit of sale
promotion. From the type of sale promotion I considered only the :-rade sales
promotion; because my scope of study restricted to the trade only. -here is the
#arious sale promotion techniques is there such as /0D -rade allo!ancesA short
term incenti#e offered to induce a retailer to stoc$ up on a product. /8D 3ealer
loaderA An incenti#e gi#en to induce a retailer to purchase and display a product.
/2D -rade contestA A contest to re!ard retailers that sell the most products.
/BD%ointof? purchase displaysA @>tra sales tools gi#en to retailers to boost sales.
/9D -raining programsA dealer employees are trained in selling the product. /HD
%ush moneyA also $no!n as TspiffsT. An e>tra commission paid to tail employees
to push products. /FD -rade discounts &also called functional discounts'A -hese are
payments to distribution channel members for performing some function. But,
e#ery trade promotional acti#ity is not effecti#e due to the follo!ing reasonA
0. Schemes not accepted by the customer, and
8. Scheme is not recei#ed by the customer.
First of all I decided to prepare the questionnaire according to my
topic !ith the help of different boo$ = collected information from the maga5ine
= then decided to !al$ in for the direct inter#ie! from the o!ner of the outlets of
BG different stores. (e>t step, I decided to ta$e a random sample of 8G outlets
!hich is the representati#e of the !hole population. -hen, prepare table from the
collected information = also represent those numeric figure on different chat !ith
the analysis. -hen I decided to !rite finding = then conclusion of the pro.ect
report.
Page 30
OBJECTI.E OF STUDY
? -o $no! the sales promotion tools used by %epsio ompany.
? -o $no! about the sales promotion impacts on sale of the product of
%epsio ompany
? -o find out the best promotional tool preferred by the retailers.
? -o $no! the pea$ periods of sales promotion acti#ities.
? -o analy5e the strength = !ea$ness of %epsio.
Page 31
RESEARCH METHODOLOGY
-he methodology used in conducting the research !or$ on %@%SIO I(3IA
+-3 ma.or emphasis on its Sale %romotion !hich in#ol#ed the follo!ing stepsA
2& Deed type = the rest H
outlets are e>clusi#ely oca?ola &S' counters.
Page 35
-&FOCUS BRAND
From the abo#e study I $ne! that most of the outlets focus on glass bottles
&RGB'.
Other fe! outlets focus on %@-, A(, Mineral 4ater or Soda.
Page 36
7& 0NO1ING ABOUT SCHEME
From this figure it is clear that most of the outlets get
information about the promotional schemes from the salesman of the company.
Rests of the outlets get information by SMS, ustomer e>ecuti#es or any other
sources of information.
Page 37
9&TYPES OF SCHEMES
-he abo#e figure sho!s that the regular promotional scheme is #ery much popular
because the retailers !ant permanent income throughout the year. -hey also li$e
#arious promotional schemes such as )- and Scratch card .Incenti#e based
scheme is not much popular because in this scheme some target is gi#en to the
o!ners of the outlets.
Page 38
5. PROMOTIONAL SCHEME RECEI.ED BYOUTLETS
)-, Refilling = Scratch card Scheme is most popular = $no!n scheme recei#ed
by ma>imum outlets .Gift and 3iscount 7Rebate schemes are not recei#ed by
ma>imum outlets because they ha#e some conditions to be fulfilled for getting it.
Page 39
8& PROMOTIONAL SCHEMES APPRECIATED BY THE OUTLETS
After the sur#ey, I came to $no! that the retailers appreciate mostly t!o types of
promotional schemes i.e. )- = Refilling because< here the o!ners get Benefits
of the scheme from sales person on the spot of purchase.
Page 40
5&P,o)o%ion!" %oo"s A$!i"!("e !% ipenses %4,o'#4o'% %4e *e!,
Page 42
3uring summer &Mar?1une' the demand for cold drin$ is high so %epsio
reduces the promotional e>penses and at rest of the period promotional e>penses
is high due to lo! mar$et demand. 3uring the !inter season &(o#?Feb'
promotional e>penses is ma>imum.
Page 43
22& F!c%o,s !periences and not .ust the
products. -he Indian Organi5ations ha#e to concentrate on deli#ering the
e>periences to the customers leading to satisfaction and association !ith all the
dimensions of the brand. -hese e>periences can be deli#ered by in#ol#ing the
customer in the supply chain !hich demands impro#ement from the organi5ation
in terms of training the employees and aligning the culture to deli#er #alue to the
customers. -he participation of the customers can be ensured by using no#el
methods of communication and branding. -he %rofit and Sustainability of Indian
Brands !ill depend on ho! efficiently and quic$ly the organi5ation can adapt to
these ne! demands of the customers.
Page 47
RECOMMENDATION
0. ompany should gi#e $no!ledge to the salesman about the promotional
Scheme so that they can better understand the importance of promotional
acti#ities.
8. -here should be a regular meeting bet!een distributor = company about
the implementation of sales promotion.
2. ompany should pro#ide rac$s to more outlets to $eep %et bottles for
display.
B. ompany should adopt the promotional acti#ities properly and not in a
trial and error method.
9. ompany should arrange training or Seminar programs for retailers to
ma$e them a!are about the company6s sales ob.ecti#e and enhance their
selling ability.
H. ompany should pro#ide more profitable schemes so that the retailers can
happily accept it.
F. ompany should spend more on %romotional schemes on the !ea$er
products li$e %epsi, M.de! etc to boost up Sales.
Page 48
APPENDICES
QUESTIONNAIRE
0. (ame of OutletsA WWWWWWWWWWWWWWWWWWW.
8. ontact (umberA WWWWWWWWWWWWWWWWWWW.
2. +ocation of OutletsA WWWWWWWWWWWWWWWWW
B. (ame of 3istributorA WWWWWWWWWWW.
9. (ature of OutletsA SeasonalA (on?SeasonalA
H. -ype of OutletsA Mi>edA @>clusi#eA
F. Focus BrandA RGB7%@-7A(7Mineral 4ater7Soda
L. *o! you $no! about SchemeA SMS7 Salesmen7 .@7 Other sources
E. 4hich Scheme you $no!A WWWWWWWWWWWWWWW.
0G. 4hich type of Scheme you recei#edA WWWWWWWWWW
00. 4hich type of scheme you appreciateA WWWWWWWWW
08. *o! the processes to getting scheme areA Slo!7 Fast.
02. 3oes the sales man daily #isit your storeX Q7(
0B. 3oes the salesman tell you about company6s SchemeA Q7(
09. Is Any AgreementA Qes7 (o. If yes, then 0.!ith %SIA 8.!ith SA
0H. 3o you $no! the name of .@X
0F. %romotional tools A#ailableA Rac$7"isi7Signboards7pop 3isplay.
0L. 3o you purchase %epsio products if offers are gi#en to you e#en if you
ha#e a large stoc$X
0E. 4hy do you sell pepsi productsX *igh margin7*igh ustomer
demand7More schemes7%roduct quality = pac$aging7hea#y Ad#ertisement.
8G. Are you satisfied !ith the total mar$eting effort of %epsioX Q7(
80. %roblem7SuggestionWWWWWWWWWWWWWW
Page 49
REFERENCE
BOOKSA
0. Sa>ena, Ran.an, RMar$eting Management6, -A-A McGRA4 *I++, (e! 3elhi,
-hird @dition.
8. Kotler, %hilip, Ke#in +ane Keller, Abraham Koshy, Mithilesh!ar
1ha,RMar$eting Management6, %@ARSO( %rentice *all, (e! 3elhi, -!elfth
@dition.
2. Ramas!amy, ". S., S (ama$umari, RMar$eting Management6,
MAMI++A( I(3IA +-3., -hird @dition.
B..R.Kothari, Business Research methodology , (e! age publication.
9. Bryman, Alan, @mma Bell, Rbusiness research method6, OSFOR3, second
@dition.
MAGAYI(@S, 1O)R(A+S = (@4S %A%@RS
0. Business !orld.
2. @conomics -imes.
4ebsitesA
!!!.pepsicoindia.com,
!!!.!i$ipedia.com,
!!!.google.co.in,
!!!.youngistaan.com
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