Project on Distribution Channel of Pepsi

Dissertation Report On “A Brief study on Effectiveness of Channel of Distribution of Pepsi Products in Patna”

At

Under Guidance Mr. Manish Sahay [Market Developing Officer PEPSI, Patna (Bihar)]

In Partial Fulfillment of the Requirements Requirements For the award of POST GRADUATE DIPLOMA IN MANAGEMENT

Submitted To

Submitted By

Mr. Rahul Saxena (Class Coordinator)

Kunal PGDM – III (B) Roll: - 11

Academy Of Management Studies, Dehradun

1 Academy of Management Studies, Dehradun

DECLARATION I, Kunal declaring that all the information given in this project report is true and correct as far as I know. I am also declaring that all the work in this project is done by me and not copied from anywhere.

Kunal Academy of Management Studies Dehradun


CERTIFICATE This is to certify that Mr. Kunal who is the student of Academy of Management Studies, Dehradun has completed his project on the topic “A Brief Study of Effectiveness of Channel of Distribution Distribution of Pepsi Product in Patn Patna” a” from Lu Lumb mbin inii Be Beve vera rage gess Pvt. Pvt. Lt Ltd. d. Haji Hajipu purr , under my

guidance.

He has done this project by himself. I wish him success in future.

Mr. Manish Sahay (Marketing Developing Officer) PEPSI, Bihar


PREFACE There is a famous saying “The theory without practical is lame and practical without theory is blind.” This modern era is era of consumers. Consumers satisfy themselves according to thei theirr need needss and desi desire res, s, so they they choo choose se that that comm commodi odity ty from from where where they they extr extrac actt maximum satisfaction. It has has been been iden identi tifi fied ed that that in the the begi beginn nnin ing g of 21st centur century y the market market was observed a drastic change. The successful brand presents itself in such a way that buyers buy them in special values which match their needs. Marketing is an important part of any business and advertisement is the most important part of marketing. Summer training is an integral part of the PGDM and student of Management have to undergo training session in a business organization for 6 weeks to gain some practical knowledge in their specialization and to gain some working experience. Our institution has come forward with the opportunity to bridge the gap by imparting modern scientific management principle underlying the concept of the future prospective managers. To the emphasis on practical aspect of management education the faculty of Academy of Management Studies, Dehradun has with a modern system of practical training of repute and following management technique to the student as integral part of PGDM PGDM.. in accor accordi ding ng with with the the abov abovee obli obliga gati tion on under under goin going g proj projec ectt in “Lum “Lumbi bini ni Beverages Pvt. Ltd. Hajipur. The title of my project is “A Brief Study of Effectiveness of Channel of distribution of Pepsi product in Patna”

Certainly this analysis explores my abilities and strength to its fullest extant for the achievement of organization as well as my personal goal.

(Kunal)


ACKNOWLEDGEMENT At the very outset of engaging myself in to the Project Report. I would like to express my sincere gratitude to all those who extended their not only to convey their best wishes but also to give me support on this hi-undertone path. This Project Report on my six weeks practical training training in “Lumbini Beverages Pvt. Ltd.” Hajipur (Pepsi) in area of Patna is a part of my course cou rse curriculum of my PGDM. This project could not have been completed without timely suggestion advice and co-operation of a lot of persons. p ersons. I am extremely thankful and pay my gratitude to Mr. Sourav Chatterjee (Head – Training & Placement) Academy of Management Studies, Dehradun for his valuable guidance and support on o n completion of this project in its presently . I am greatly obliged to Mr. M. K. Prasad (HR Manager, Lumbini Beverages Pvt. Ltd. Hajipur) who accommodated me for training in this esteemed organization. I am highly indebted to Mr. Manish Sahay (Marketing Developing Officer, Bihar) who provided me an opportunity to work and also guided me at every stage on my project. His proper direction and consult inspiration proved to be an asset for this project. I am also equally thankful to Mr. Anish Kumar (Sales Co-coordinator, Bihar) who taught me every minute aspect of marketing. A spec specia iall appre appreci ciat ativ ivee “Tha “Thank nk you” you” in acco accord rded ed to all all staf stafff of “Lum “Lumbi bini ni Beverages Pvt. Ltd.”, Hajipur and MDC, Patna for their positive support. I also acknowledge with a deep sense of reverence, my gratitude towards my parents and member of my family, who has always supported me morally as well as economically. At last but not least gratitude goes to all of my friends who directly or indirectly helped me to complete this project report.

(Kunal)


CONTENTS 

Preface



Acknowledgement

Title

Chapter 1.

Chapter 2.

Chapter 3.

Introduction to the Study 

Objective of the Study



Importance and relevance of the Study



Scope of the Study



Methodology used in the study



Limitation of the study

Introduction of the Soft Drinks in India 

History of Soft Drinks in India



History of Pepsi



Production Process



Product Manufactured and Main Consumer

Organizational Structure 

History History and Organizati Organizational onal Structure Structure of Lumbini Lumbini Beverages Beverages Pvt. Ltd. Hajipur

Chapter 4.

A Theoretical fr frame work of Channel of distribution

Chapter 5.

Channel of distribution of Lumbini Beverages Pvt. Ltd.

Chapter 6.

Performance of Patna

Chapter 7.

Conclusion and Suggestions



Questionnaire


CHAPTER 1. INTRODUCTION TO THE STUDY 

Objective Of The Study



Importance And Relevance Of The Study



Scope Of The Study



Methodology Used In The Study



Limitation Of The Study


INTRODUCTION TO THE STUDY When Mr. Rajeev Gandhi came into the power as Prime Minister of India, then it was expected the liberalization of Indian economy. This was the expectation of his modern concept regarding every walk of life. When Pepsi has appealed on our collective consciousness of few years ago to be more exact in April 1989. When it set up operation for bevera beverages ges snack snack foods foods and export export busine business. ss. The establ establish ishmen mentt of Multi Multinati nationa onall Company Pepsi was supposing to prediction in present Indian business scenario. Despite love for ones own motherhood and traditional concept of Indian people it was assumed that it is very hard to make and create taste and preference about soft drinks but despite of having so many confusion, no one was able to assume such a wide acceptance acceptance and it was PepsiCo. Who could be able to penetrate in Indian soil and it was the Pepsi that has got not only a place in Indian hospitality, but also taken place of traditional sharbat of lemon and sugar. And needless to say “Generation next has become the slogan of the day.” The first managing director was Mr. Ramesh Vanagal but present is Mr. P.M. Sinha in India. During these years beverages begin an exclusively franchise operating beverages now has five company owned bottling operation (COBO) the business expects to grow three times faster than the industry growth rate 1995 and its vision is to become INDI INDIA’ A’S S BEST BEST CONS CONSUM UMER ER PROD PRODUC UCT T COMP COMPAN ANY Y in all all aspe aspect ct.. Th Thee snack snackss business has seen some major success and going for leadership too. Pepsi is a leader in the snacks food business. The division plans to introduction wide range of snakes in to Indian market in the next three years. The restaurant business has also come Kentucky Fried Chicken (KFC) has opened its first outlet at Bangalore Pizza but it also expected to open restaurants shortly city wise. Whole of the operations of Pepsi in India has made a rapid change in Indian life style, which is resulting in fast food life. Pepsi is a world leader in restaurant & soft drink whether it is in London or in Ludhiyana, America or Ahamedabad, Berlin or Bombay, Paris or Patna, Manchester or Madras. 8 Academy of Management Studies, Dehradun

Pepsi company has pumped in Rs. 300 crores ($ 95 million) as fresh capital and has recently received permission from the foreign investment board in Rs. 300 crores ($95 million) more. The investment phase will continue and could add unto Rs. 700 crores over the next three years. The figure is not cast in stone if volume exceeds according to expectation. They will increase capital expenditure. Apart from these things there is an expression which can not verify easily that is Pepsi has made qualitative gains. The foremost is its image from being perennially seen as a loosing company it’s now got the image of being a winner. This major turn around is not small achievement considering that since it was established in 1989 taking the hard ship route prior to liberalization and weighed down by export commitments. Pepsi has won more battles than it has lost. In April 1993 Voltas and Punjab Argo’s stakes were bought over converting Pepsi foods from a three way joint venture to be a fully owned subsidiary week bottlers who did not have the financial capacities were given massive support in the form in interest free loans to upgrade their operating capacity . But the strategy which has proved to be winner was the position, Pepsi decided to take in Company Owned Bottling Operation Operation (COBO). For this another subsidiary subsidiary PepsiCo. PepsiCo. India holding holding was set up as an investment vehicle, capitalized 95 million dollar. Within a year 1994 Pepsi has bought over 5 bottlers including dukes in Mumbai, which was running in Maharastra which has been bought over from Voltas high speed imported imported lines with a speed of 600 bottles per minute was installed in Delhi. Pepsi has a strong franchisee in the Jaipuria’s of Pearl drinks. Pepsi is setting up a new plant at Jaipur.


OBJECTIVE OF THE STUDY Management is a course which teaches the student to get the work done properly from different available sources viz. man, machine, material, money etc. So there can be a satisfaction from the organization side and the workers side who play a significant role in achieving success. So far the fulfillment or the management course, it gives emphasis to project work and students learn how to plan in practical terms rather in terms of theory only. only. Student Student tends tends to develo develop p analyt analytica icall and proble problem m solvin solving g skill skill.. We necessa necessary ry become motivated and competitive, in fact all the learning that goes on for the two year term become so much the part of our thinking that we developed a well all rounded personality. The following are the objectives and purpose of the studyi)

For the fulfillment of Post Graduate Diploma in Management (PGDM) pro progr gram amme me as real realiz ized ed by the the Academy Academy of Managem Management ent Stud Studies, ies, Dehradun. (AICTE approved)

ii) ii)

To car caree and and cont contac actt with with the the wor worki king ng of of an org organ aniz izat atio ion n and and to see see the the differ different ent types types of market marketing ing activi activitie ties. s. The main main emphas emphasis is is on the distribution Channel aspect of the organization.

iii) iii)

What Whatev ever er the the subj subjec ectt taug taught ht in in the cla class ss roo room m of PGDM PGDM cou cours rsee that that is completely theoretical. So during the training period we compare how the marketing research (sales) activities (practical) of our organization with the theories.

iv)

Find Find the the dept depth h and and widt width h of dist distrribut ibutiion chan channe nell adop adoptted by Lumbini Beverages Pvt. Ltd. Hajipur and compare them with those followed by

competitors. v)

To asc ascer erta tain in the the cons consum umer er bran brand d perc percep epti tion on of of col cold d dri drinks nks with with resp respec ectt to to price, product, quantity and advertising.


IMPORTANCE AND RELEVANCE OF THE STUDY Cold drinks were started with the idea of quenching the thirst of the persons traveling. It was also felt that reliable good water was not available everywhere. So people would really on their packed bottle and with this idea its makers made these drinks available available mostly, at those places where water was not available available i.e. on highways and long distance trains. But slowly and slowly with its beautiful taste these become very popular and now they are available not only in the market and street corners, but also people have started keeping it in their house. The credit of popularizing the soft drink goes to Coca Cola. This was the drink which is liked by all ladies, gents and children. Now day’s soft drinks are quenching thirst looks more often; they are taken due to habits. Gold Sport is considered as the first branded soft drinks, established 53 years ago before all empowering Coca Cola faced competitions and its euphoric image built up in the western countries helped it get ready clientele and clamor. Parle Export Pvt. Ltd. is regarded as the first Indian Company introducing Limca a leman drink complementary to it this has also introduced Cola Pepone which was withdrawn in the face of tough competition from Coca Cola. When Coca Cola bid a Farwell Farwell in 1977, Indian market market was open for various new forward publishing different brands in the markets. Parle people introduced their Cola, Thums Up with a mighty saying “Happy days are here again” as if happy days went away with Coca Cola. Pure drinks of Delhi also without lasing much introduced pure drinks were producing and marketing Coca Cola earlier Campa Cola with Campa orange and Campa lemon. Modern Bakeries entered the market with Double Cola Seven, Mohan Makings with Merry & Plkup and McDowell with Thrill, Rush and Sprint. This is Indian market where there was no competition and high voltage advertising was on each one was trying their best to become number one company with ‘A’ class product in the field of Soft Drink business. Now after a long gap government of India had given permission 11 Academy of Management Studies, Dehradun

to Coca Cola, which joined with Parle to do business in India. They are trying their best to regain prestige which it had before. The much rival of Parle is Pepsi an American concern. It started business on the Indian soil just a few years ago. Today, it has occupied 62% shares of Soft Drinks market in India. Now Pepsi is going all out to prove that they are the best. But now due to some factors competition among them has become stiffen. So in this way the important activities have increased.


SCOPE OF THE STUDY The main scope of this study is to ascertain the effectiveness of channel of distribution and various methods to increase the sales volume of the concern. The

methods include regular information to the buyers creating a brand position in the market and taking measures to make the brand remain in its position. One of the important aspects of this study is also to increase the market segment for the product.


METHODOLOGY USED IN THE STUDY “Marketing Research is the systematic designing, collection, analysis, and reporting of data and finding relevant to a specific marketing situation facing the company.” The present study of Soft drinks markets in all over Patna is based on survey methods. In survey methods, there are two types of survey. One is Census Method and another is Sampling Method. In this sample survey methods I have taken only a small part of the whole and data collected from the small part are made applicable to the whole i.e. I have taken Patna and some adjacent area of Patna like Danapur, Patna City etc. Within the time limit, I tried my best to select the sample representative of the whole group. During my training, I maintained different chart for different routes during my dealer survey. I have collected data from the distributor of Patna. Data Sources

Primary data collection involved distributors, retailers and consumers Research Approaches

:

Survey

Research Instrument

:

Interview Schedule

Sampling Unit

:

Distributors

Retailers

Consumers

Sampling size

:

02

350

11 00

Sampling procedure

:

Purposive Selection

Contact Method

:

Personal Interview

Sampling Plan

In inte interv rvie iew w sched schedul ulee I used used mult multip iple le choi choice ce quest questio ion n and and rank rankin ing g syst system em questions.


LIMITATION OF THE STUDY As I was asked to carry on my vocational training I found the following limitations during my training period. So I could co uld not collect all information regarding my topic. i)

Shor Shorta tage ge of time time fact factor or was was one one of the the big bigge gest st cons constr trai aint nts. s.

ii) ii)

Most Mo st str stres esss was was give given n on the the prim primar ary y data data as it was was dif diffi ficu cult lt to to coll collec ectt secondary data from the organization and distribution since it is difficult to ascertain the authenticity of their statements.

iii) iii)

All All the obse observ rvat atio ion n and reco recomm mmen enda dati tion on will will be mad madee on the feed feed back back obtained from survey.


CHAPTER-2 INTRODUCTION TO THE SOFT DRINK IN INDIA 

History Of The Soft Drink In India



History Of Pepsi



Production Process



Product Manufacturing And Main Consumers


HISTORY OF THE SOFT DRINK IN INDIA Christopher Columbus as a traveler of world found a lot of new things which was not in the eye of the world community which is now in our history but now if any one does travel to whole part of world to get one thing in some form that is Pepsi. Travel to any corner of the globe you are sure to spot a label splashed in blazing blue, red and white becoming you to some “Sugared water”. This dark coloured drink WillyMilly has today become nothing but spot of an international anthem with young and old, rich and poor wants for a sip and saying “Yeh Dil Mange More.” Gold Spot is considered as the first branded soft drink established 53 years ago before all empowering Coca Cola entered the country to dominate the scene. It faced no competition and its euphoric imaged built up in the western countries helped it to get ready ready cliente clientele le and glamou glamour. r. Parle Parle Export Export Pvt. Pvt. Ltd. Ltd. is regard regarded ed as the first first Indian Indian company introducing Limca, a lemon drink complimentary to there well established Gold Spot in 1970 which got moderate success. However, before this, he had also introduced Cola Pepino which was withdrawn in face of tough competition from Coca Cola. When Coca Cola bid farewell in 1977, Indian market was open for various cold drinks several companies came forward publishing the different brands in the market. Parle people introduced their Cola Thumps Up with a mighty bang saying “Happy days are here again” as if happy days went away with Coca Cola.. Pure drinks of Delhi also without without losing much time introduced introduced pure drinks drinks were producing producing and marketing marketing Coca Cola earlier Campa Cola along with Campa orange and Campa lemon. Modern Bakeries entered in the market with the Double Seven. Moharn meakings with Merry Pikup and McDowell with Thrill, Rush and Sprint in Indian market where there was no competitio competition n previously previously.. A cut throat competition competition and heavy advertising was on. Each one was trying their best to become the number one company with ‘A’ class product in the field of soft drink business in India. Now after a long gape the govt. of India has given permission to the Coca Cola to start their business in India. Coca Cola has joined hands with Parle to the business on the Indian soil. They are trying best to regain its prestige which it has before. 17 Academy of Management Studies, Dehradun

The much rival of Parle is Pepsi an American concern. It started business the occupied nearly 50% share of soft drinks market in India. Now, Pepsi is going all out to prove that they are the best.


HISTORY OF PEPSI PepsiCo is a USA based company having its head quarters at New York with the net worth of $30-40 million. The average sales of the company are approx 90 million bottles per month. Pepsi made it first international move in Russia in 1959. During the Khrushchev era, within 32 years Pepsi emerged as the biggest competitor for Coca Cola. Pepsi is available in 155 countries. In any soft drink, on the globe Pepsi food is one of the largest soft drink companies in the world with its headquarters headqua rters in New York. It was invented by Pharmacist Culab D. Baradham in 1898 to cure the disease “Dyspepsia”. It is from this word that its name was related to Pepsi. Soon it entered the American market as soft drink, which at that time mostly dominated by Coca Cola, but soon Pepsi able to dominate the Cola market, and there after it never looked back. Pepsi and Coca Cola are engaged in ferocious cola war that has taken the whole world by storm. Pepsi entered the Indian soft drink in Kanpur in 1988 and began its production in May 1990 and soon it was giving the local contenders run for their money in soft drink market. It comes out with dazzling marketing innovation that rocked the cola market, like sell sellin ing g the the prod product uct thro through ugh func functi tion on Pepsi Pepsi outle outlets ts.. Its Its adver adverti tise seme ment nt agenc agency y was was “Hindustan Thomson Association” (HTA). Its advertisement budget for 1995-1996 was valued at Rs. 24 crores which is likely to be increased manifold in coming years. Pepsi food is one of the largest and best foreign investments in India. Till today it has invested Rs. 500 crores in India to develop the local market. Pepsi has distributed exclusive franchises in India to bottle its total product. There are 28 bottling plant of Pepsi Pepsi in Indi India. a. Some Some are are dire direct ctly ly cont contro roll lled ed by Peps Pepsii and rest rest is under under vario various us franchisees. Pepsi stands 51st position among the fortune 500 companies of the world. Its total capital is approx $3000 crores and total sales annually is worth $37 crores. Its total profit in the year 1996-97 was worth Rs. 458 crores approx. The total number of employees engaged in the business is 45.25 lakhs globally. 19 Academy of Management Studies, Dehradun

In April 1997 the Pepsi cola international decided that Steel City Beverage will cover south Bihar (now Muzaffarpur) only. In this accordance Pepsi cola international decided to open another bottling plant at Hajipur named Lumbini Beverages Pvt. Ltd. Hajipur which will distribute Pepsi product in whole Bihar. Ananda Marketing as a marketing division of Lumbini Beverages Pvt. Ltd. Hajipur started functioning in April 1997; Managing Director of Lumbini Beverages Pvt. Ltd. Hajipur is Mr. Charan Khelani. The director of this organization Mr. Ravi Khelani Kh elani and Mr. Manoj Khelani


PRODUCTION PROCESS The process of manufacture of Aerated water (soft drink) like Pepsi brand product is divided into mainly five parts such as 1. Wate Waterr Trea Treatm tmen entt 2. Syrup Making 3. Bott Bottle le Wash Washin ing g 4. Filling 5. Te Test stin ing g of Prod Produc uctt

(1) Water Treatment: - Water treatment is very essential in soft drinks plants as the nature and quality of water varies from place to place. To set uniform and standard water the process of treatment is carried on. The water taken out from bore well by the help of motor pump and pipe line are collected in storage tank where is pre chlorinated by chlorinators and by the help of pipe lines comes to treatment tank called coagulation tank where to this water solutions of different strength of bleaching powder, ferrous sulphate, hydrated lime are added through dosing pump to reduce alkalinity, hardness, kill the bacteria .The chemical are mixed mixed by mechan mechanica icall stripp stripper er and then then the suspend suspend mattress mattress settle settle down down as sludge and clear water passes to retention tank. From this tank, the water passes through sand filter containing fine sand and pebbles and carbon filter containing granular carbon and finely through water polisher, micron filter, and UV lamp to ensure clear and sanitary water for use. Further water used in bottle washer and boiler need softening .for this purpose ,the water from storage tank ,after passing through two filter filter beds contain fine sand and granular carbon respectively comes to pass through bad resin were it is softened .this soft water is essential to use in and bottle washer to reduce scale formation inside the machines.


particular brand, calculate calculate quantity quantity of (2) Syrup Making:- For syrup making of particular sugar water activated carbon and high flow super cell known as filter aid taken in to sugar to enter steam and also filled by a motor with agitator. Sugar syrup called raw-syrup is prepared by dissolving the sugar with continuous stirring and heating by steam supplied by fired boiler. This hot syrup by the help of pump is filtered through a filter press attached with a series of quality filter paper to separate out carbon particles. Clear hot syrup by the help of SS pipe lines passes through water P.H.E. for cooling and the then another P.H.E. circulated by glycol for further cooling. The chilled syrup comes to a mixing tank to use calculating of sugar quantity by Brix Hydrometer, concentrate added and mix thoroughly by a mechanical Stirrer fitted to the tank. This syrup is now finished syrup ready for use. use. Th Thee conc concent entra rate te main mainly ly,, the the liqui liquid d part part are are kept kept in a cold cold stor store, e, the the temper temperatu ature re of finish finished ed syrup syrup is also also maintai maintained ned by air-co air-condi nditio tioner ner.. All the containers used for syrup making are cleaned and sanitized by Soda-Bi-Crab, strong chlorine solution and hot caustic soda solution.

(3) Bottle Washing: Bottle washing is an important part in soft drink plant. The empty durable and returnable bottle used are returned from market in plastic carats are fed to a bottle washing machine (washer). The machine has double end syst system em with with circ circul ular ar chai chain n to carr carry y the the bott bottle les. s. Caus Causti ticc soda soda TriTri-So Sodi dium um Phosphate, Sodium Glausonate is adding to the caustic by the supplied. The Caustic tank filled in with water heated by steam supplied by the boiler. The empty bottles enter to the hot Caustic tank in one end and after being cleaned by hot Caustic solution and finally finally washed with water through spray jets fitted fitted are discharged in other end. The washed bottle proper inspections are SU 319 and SU 853 used for conveyor cleaned and smooth running of chain carrying bottles. SU 260 and SU 773 is used for bottle cleaning, shining, and mold removing.


(4) Filling: - Finished syrup and treated water lime are commixed to a dosing pump which mixes syrup and water with ratio of 1:5 and the syrup mixed with water enters to carbonator tank to mix CO2 gas, which is preserved in cylinder for use. The cylind cylinders ers are connect connected ed through through CO2 mani manifo fold ld to tank tank to use use requisite quantity of gas. To control CO2 pressure and temperature of liquid; we used recording control (Taylor). The syrup passed through a P.H.E. which is called itself by circulation of chilled glycol supplied chilling F-22 gas used. The syrup being chilled easily mixed with CO2 gas and enters to filter for bottling. The filter is connected with filling valves and lift cylinders. The lift cylinder functions by pressure of air supplied by an air composer. The syrup is known as beverage in this stage is filled in the cleaned bottles which are durable in nature and returnable by buyer filling machine (filter) by a counter pressure of carbon dioxide gas. After beverage filled in bottle it goes to the crowner where with the help of crown crocks the bottles are sealed (crowned) to project the carbonation, flavor, outside contamination and spoilage. The finished products are coded by a coding machine and inspected properly by inspection light while passing through the conveyor where finished product are accumulated enters to carat washer machine and it is washed moves through the conveyor where finished product are accumulated. Then the products are kept in plastic carats which are durable in nature and returnable by buyer, put on palates and sent to shipping for shipment. The entire container in contact with syrup are properly cleaned and sanitized by Soda-BiCarbonate, hot water, caustic soda solution and strong chlorine does.

(5) Testing of product:- Finally the finished syrup during bottle is tested in laboratory to meet the parameters and also to get a standard and quality products to maintain the standard and information and uniformity in products the sugar contents and carbonation in the bottle are checked in regular intervals by Brixhydrometers, Refrectometer and pressure gauge. The dead weight tested is used to calculate calculate pressure gauge to know the correct pressure. pressure. TA & Ph are tested by 23 Academy of Management Studies, Dehradun

digit digital al Ph meter. meter. Electr Electroni onicc digita digitall balanc balanced ed is used used to weight weight chemic chemical al to conduct test in lab. The purity of CO 2 is checked by CO2 purity tester. The chlorine comparators. The microbiology test of the product and water used in syrup making and production are also done to ensure that the product is free from any bacter bacteriol iologi ogical cal contami contaminati nation. on. To conduct conduct the micro micro test test hot steril sterilize izer r incubator, autoclave, pads filter membranes, media are produced and used. The Diesel generator is operated in case of electricity failure for smooth operation of the plant. To drawn electricity for the State Electricity Board the transformer is used. The steps involved in the production process are:⇒

First the fork lift supplies the empty bottles which are collected from the distributions.

⇒

Then depalletising is done i.e. separating cases filled or empty bottles from the wooden planks.

⇒

Uncasing is done by separating empty bottles from the cases/carats.

⇒

Empty bottles are then fed into the bottle washer where stream with some chemical is used for washing.

⇒

Washed bottles are then send to the filler where premix (Composed of syrup, treated water bulk CO2) is filled in it.

⇒

The whole whole concent concentrat rated ed is chille chilled d with with glycol glycol before before filli filling ng and then then crowning is done.

⇒

The filled bottles are passed through inkjet coder for printing price and date.

⇒

Then again the filled bottles are send for final light inspection and from there they are collected on a table.

⇒

Lastl Lastly y the filled filled bottl bottles es are arrang arranged ed in the crates crates (casin (casing) g) and then then palletizing is done for storing it in the warehouse. PREPARATION OF SYRUP Treated water + Sugar = Flavour 24 Academy of Management Studies, Dehradun

PRODUCT MANUFACTURED MANUFACTURED The product manufactured by “Lumbini Beverages Pvt. Ltd. are very limited ranges as it is not independent to diversity its products. It is a unit of Pepsi food Pvt. Ltd. which supplies concentrates for drinks. They are:-

Products Pepsi

Quantity 300 ml, 200ml

Colour Brunt sugar

Flavour Cola

Mirinda

300 ml, 200ml

Sun-set

Orange

Mirinda

300 ml, 200ml

Tetrazine

Lime

Mirinda

300 ml, 200ml

Tetrazine

Mango

7 Up

300 ml, 200ml

Colorless

Lemon

Mountain Dew

300 ml, 200ml

Colorless

Lemon

Slice

300 ml

Sunset

Mango

Lehar soda

300 ml

Tetrazine

Lemon

Pet

1.5 lt.

Brunt sugar

Cola

Pet

2 lt.

Brunt sugar

Cola

Can

330 ml

Brunt sugar

Cola

Aquafina

1 lt.

Colorless

White

(Mineral Water)

CONSUMERS The main consumers of these products naturally are youth. Besides the direct consumer it is also used for the some purpose of providing it to the mass by hoteliers, restaurant owners and various other soft drink peddlers. These products are the choice of the new generation. Thus it can be said that it is a product of mass consumption.


CHAPTER 3.

ORGANIZATIONAL STRUCTURE 

Hist Histor ory y

and and

Orga Or gani niza zati tion onal al

Struc tructu ture re

Beverages Pvt. Ltd. Hajipur


of

Lum Lu mbini bini

HISTORY AND ORGANIZATIONAL STRUCTURE OF LUMBINI BEVERAGES PVT. LTD. HAJIPUR History of Lumbini Beverages Pvt. Ltd.

Stee Steell City City beve bevera rage gess Pvt. Pvt. Ltd. Ltd. is situ situat ated ed at Adit Aditya yapu purr Kand Kandra ra Road Road in Jamshedpur. “Rushabh Marketing Pvt. Ltd.” is the marketing division of Steel City beverages. Steel City beverages Pvt. Ltd. is a mother unit and its whole marketing activities are done through Rushabh Marketing Pvt. Ltd. Steel City beverages is one of the Pepsi foods Bottling plants in the country and one of the three in Eastern India. The other other two Calcut Calcutta ta and Guwahat Guwahati. i. But from from 01-0401-04-199 1997 7 “Pepsi “Pepsi Foods Foods Ltd. Ltd. India” India” determines to open another bottling plant which is situated at Hajipur namely “Lumbini Beverages Pvt. Ltd.” It is only for North Bihar. Steel Steel City City beverag beverages es Pvt. Pvt. Ltd. Ltd. was establ establish ished ed by Late Late Mr. Dharam Dharam Chand Chand Kamani in the month of June 1967. The machineries of its main plant were imported in 1968 and production started in March 1969. Before the establishment of Steel City beverages Pvt. Ltd. Coca Cola was not much popular among people of Bihar state as pure soft drink. Because at that time the bottles of Coca Cola was supplied by the outsiders who were unable to make Coca Cola popular in Bihar. So after considering the needs and desires of people Mr. Dharma Chand Kamani brought in Bihar. With this effort Coca Cola become popular among the people of Bihar. But in 1977 due to the sudden change I the policies of the Government the import license for the concentrate of Coca Cola was stopped. So Steel City beverages Pvt. Ltd. had to walk over to Indian Concentrate Companies. They were modem food industries supplied concentrate of double seven and non ice cream soda. In 1983 the company introduced a cola drink “THRILL” of Mc-Dowell & Co. Ltd. in the place of Double seven seven and and tria triangu ngula larr and and in the the very very next next year year two two soft soft drin drink k “RUS “RUSH” H” an orang orangee flavoured and “SPRINT” as lemon flavoured of Mc-Dowell & Co. Ltd were introduced.


Before some months “Ananda Marketing Pvt. Ltd. was the marketing division of Lumbini Beverages Pvt. Ltd. But at this time, Lumbini Beverages Pvt. Ltd. is doing marketing with its own name. Thus it can be seen that Lumbini Beverages Pvt. Ltd. has made tremendous move towards the introduction and development of soft drinks industries on the whole, and North Bihar in particular. It has made production of perfect hygiene and standard Soft Drink as main objective.


ORGANIZATIONAL ORGANIZATIONAL STRUCTURE OF LUMBINI BEVERAGES PVT. LTD. An ideal organizational structure facilities management and the operation of the enterprise and it help the organization in achieving its goal. In a simple term in various parts or component are interrelated or interconnected and this way it is the established pattern or relationship among various function of the organization in the established manner. The managing director holds the top position. At present, the managing director of Lumbini Beverages Pvt. Ltd. is Mr. Charan Khilani. But the overall policies regarding management decisions and all executives function or performance look after by the day to day decision and general administration as well as management. The MD has given the power of attorney and authority to director Mr. Ravi Khilani. Mr. Ravi Khilani who is well advised by the MD. The director Mr. Ravi Khilani looks after all functional departments that sales production, account, personnel and purchase. Though the manager all the functional departments has specially designated as head of personnel department. Ever Ev ery y depar departm tment ent has has to repo report rt dire direct ctly ly to the the mana managi ging ng dire direct ctor or and and is responsible to his only for working in spite of this all departments is under the control of the director Mr. Ravi Khilani. Because he is the Chief Executive of the company cited earlier. The overall organizational structure can be shown as:


OVERALL ORGANIZATIONAL STRUCTURE OF LUMBINI BEVERAGES PVT. LTD., HAJIPUR

BOARD OF DIRECTOR

MANAGING DIRECTOR

CEO

FINANCE MANAGER

A/C ASSISTANT

A/C CLERK ASSISTANT

PLANT MANAGER

P.A.M.

H.R. MANAGER

SHIPPING COORDINATOR

SHIFT ENGINEER

WORKER / OPERATOR

H.R. EXECUTIVE

H.R. CLERK ASSIS.

HOS

T.D.M. .

A.D.C.

C.E.

M.E.M.

M.D.M.

SENIOR TECHNICIAN TECHNICIAN

TECHNICIAN TECHNICIAN

Q.C.

M.D.C.EXECUTIVE M.D.C.EXECUTIVE

M.E. 30

Academy of Management Studies, Dehradun


The marketing manager is in charge of all marketing activities i.e. sales promotion, publicity and advertisement, marketing study and shipping. But the main function of the marketing is to exercise the control over ov er the channel of distribution.

The marketing manager is assisted by sales executives, city sales executives and rural sales executives and sales executive of shipping department as follows:-

DIRECTOR

MANAGING DIRECTOR

HEAD OF SALES

STATISTICIAN

CITY SALES

SALES

SALES

EXECUTIVES

EXECUTIVES

SUPERVISOR


CHAPTER 4.

A THEORETICAL FRAME WORK OF CHANNEL OF DISTRIBUTION


A THEORETICAL FRAME WORK OF CHANNEL OF DISTRIBUTION “Marke “Marketi ting ng channel channelss are sets sets of interd interdepe ependen ndentt organi organizat zation ion involv involved ed in the process of making a product or service available for use or consumption.” The main objective of the marketing process is to distribute the products to the actual users. This function involves a number of sub-functions to be performed by a producer or manufacturer. These two functions are most important first, the creation of demand is made through the process of advertising and sales promotion activities. On the other hand the distribution through the channels of distribution. The decision relating to the channel of distribution is a very important decision from the firm point of view becaus becausee the select selected ed channel channelss affect affect consid considera erable ble other other market marketing ing decisi decision. on. Such decisions are of long term nature and exercise their impact on the cost structure of the firm also. By channel distribution mean the intermediaries or the process through which the goods products are transferred from the producer to the ultimate users. Now a day any of the producers possibly do not sell their goods directly to the final users. There are a lot of intermediaries between producers and consumer, bearing a varie variety ty of name name perf perfor ormi ming ng vario various us kind kindss of func functi tion on.. Some Some inte interm rmedi ediar arie iess like like wholesalers and retailers buy and resale taking the bill. They are known as merchant middle men and other are brokers, representative sales agent who seeks or search for customers and negotiate on the behalf of the producer but do not take of goods. These are called as middlemen. The manufacturer and its distributive outlets share common objective to sell the manufactured products at a profit. No doubt its objective differs with the marketing circumstance. Even though many variation of specific objective fits into some categories. These are as follows:

To built distribution network loyalty



To stimulate distribution



To develop managerial efficiency in distribution organization 34 Academy of Management Studies, Dehradun



To identify the source of supply for the product line at the final buyers level

The channel of distribution is a structure which organized and presents a choice among alternative channels of distribution of the different marketing situations faced by retailers, whole sellers and producers with in the structure. It may be considered as a series of function which must be performed in order to make producers efficiency. To bearing maximum profits of all institutions concerned a channel of distribution should be treated as a unit of total system of action. The activities of the manufacturer need to be coordinated with these middlemen used in the distribution of given product. The important of middlemen in channel of distributional can be over emphasized. It is that who1. Collects Collects concent concentrates rates the output output of various various producers, producers, 2.

Subdivides Subdivides these these into lot lot desired desired by the customer customerss gathers various various items togethe together r in the assortment wanted and

3. Disperses Disperses the assort assortment ment to to consumer consumer indust industrial rial buyers. buyers. The role of middlemen that of specialist in concentration equalization and dispersion besides he side in the creation of the time from and procession utilities.


DECISION MAKING FOR CHANNEL OF DISTRIBUTION The marketing executive must undertake to following steps in order to establish the channel of distribution for a company. c ompany. 1. He/She must must understa understand nd the retail retail and wholesa wholesales les market market and type type of middlemen middlemen available in both. 2. He/She must must understan understand d the various various conflict conflictss which continual continually ly exist exist between between and within the channel. 3. He/She He/She must must select select the genera generall channel channel to be used keepin keeping g in mind the goals goals of the company marketing programme and the job to be done by distribution system. 4. He/S He/She he must must take take deci decisi sion on rega regard rdin ing g be inte intens nsit ity y of the the dist distri ribu buti tion on (i.e (i.e.. the the number of middlemen) to be used each level and each market. 5. He/She He/She must selec selectt the specific specific firms firms which which will handle handle his product product and then then manage the day to day working relationship with them. 6. He/She He/She must determ determine ine the methods methods and the proced procedure ure in firms firms (i.e. (i.e. use of the transportation and warehouse facilities and services in firms making programme) in the physical distribution of the product.

Types of Marketing Channels 1. Direct Direct marketing marketing channel channel : A marketing marketing channel channel that that has no intermedi intermediaries aries level level 2. Indirect Indirect marketing marketing channel channel : Channels Channels containi containing ng one or more more intermediar intermediaries ies

Customer Marketing Channels Channe Channell 1.

Manu Manufac factur turer er……… ……………… ……………… ……………… ……………… …………… ……….. …..…Co …Consu nsume merr

Channe Channell 2.

Manu Manufac factur turer er……… ……………R ……Reta etaile iler… r………… …………… …………… ……………C ……Con onsum sumer er

Channel Channel 3.

Manufac Manufacture turer……. r……...Who ..Wholesa lesaler ler………… ………….Ret .Retaile ailer……… r…………Co …Consum nsumer er

Channel Channel 4.

Manufac Manufacture ture…….W …….Whole holesale saler……J r……Jobbe obber……R r……Retai etailer… ler…….Co ….Consum nsumer er


CHANNEL DYNAMICS Distribution channel do not stand still. New wholesaling and retailing institution emerge and new channel system evolves. There are four types of marketing chan nels.

1. Convent Convention ional al Distrib Distributio ution n Channel Channel

A Channel consist one or more independent wholesaler and retailers. Each is a separate business seeking to maximize its own profits even if this goal reduces profit for the system as a whole. No. of channel members has complete or substantial control over the other members.

2. Verti Vertica call Mark Marketi eting ng Cha Channe nnell

This Th is is most most rece recent nt mark market etin ing g chann channel el.. A dist distri ribut butio ion n chann channel el syst system em as producers, wholesaler and retailers act as unified systems. One channel member, the channel captain owns the others or franchises them or has so much power that they all co-operate. The channel captain can be the producer, the wholesaler or the retailer.

3. Hori Horizo zonta ntall Marke Marketin ting g Chann Channel el

A distribution channel system in which two or more unrelated companies put together resources or programmes to exploit an emerging marketing opportunity.

4. Multi Multi Chann Channel el Mark Marketi eting ng

In the past, many companies sold to single market through a single channel. Multi chan channel nel mark market etin ing g occur occurss when when a singl singlee firm firm uses uses two two or more more mark market etin ing g channels to reach one or more customer segments.


RETAILING Includes all the activities involved in selling goods or services directly to final consume consumers rs for person personal al non-bus non-busine iness ss use. use. A retail retailer er or retail retail store store is any busine business ss enterprise whose sales volume comes primarily from retailing. Retailers are the last but not the least in the marketing channel through whom the eventual transfer of ownership of goods take place. The use of retailer boils down to their superior efficiency in making goods widely available and accessible to target markets. In most of the cases the retailers performs the important functions mentioned as under. 1. Infor nform matio ation n 2. Promotion 3. Nego Negoti tiat atio ion n 4. Ordering 5. Financing 6. Risk Taking 7. Phys Physic ical al Poss Posses essi sion on 8. Payment 9. Title

The major types of retailer are as following:1. Specialty Store: - They sell narrow product line with deep assortment. 2. Departmental stores: - They sell several product line with each line operated as separate department managed by specialist buyers or merchandisers. 3. Super market: - They are relatively large, low cost, low margin, high volume self service operation designed to serve total needs for food, laundry and household maintenance product. 4. Convenience Convenience Store: - These are relatively small store located near residential areas, open long hours, seven days a week and carrying an united lines of high turn over convenience products at slightly higher prices. 38 Academy of Management Studies, Dehradun

5. Discount Store: - These sell standard merchandise at lower prices with lower margins and higher volumes. 6. Off price Retailers: - These sell the merchandise which are bought at less than regular wholesale prices and sold as less than retail. These may be of three types mentioned as under: a) Fact Factor ory y orde orders rs b) Indepen Independent dent off price price retail retailers ers c) Warehou Warehouse se clubs clubs ( Wholes Wholesale ale clubs clubs )


Chapter 5.

CHANNEL OF DISTRIBUTION OF LUMBINI BEVERAGES PVT. LTD.


Channel of Distribution of Lumbini Beverages Pvt. Ltd. Hajipur, in Patna To make its products available at the right places at the right time in the market, the sales department of the company pays major attention on controlling the channels of distribution. Single type of markets channel is maintained by the company right from its pioneering stage. The nature of the channel is as follows:Company

Distributors

Dealers

Different Outlet Owners

Consumers At first the soft drinks supplied to the distributors directly. Retailers or owners of any outlet can not take the delivery from company. They have to take the products from their respective or nearest distributor. There are about 50 distributors and innumerable number of retail outlets operating with with the company company in its entire entire market market areas which contain containss total total Bihar. Bihar. In all the important places of entire territory this company has its distributors. These distributors selected on the basis of assurance given by them regarding the minimum sales which they have to maintain annually. The selection is also done on the basis of the financial position and reputation of distributor in the market. As for example in appointing a distributor first engaged in soft drink business second priority is given to those people who are in cigarette selling business. Depending upon the market, each distributor in the initial stage has to deposit some security money.


The retailers are selected by the distributor fixed criteria for the selection or appoi appoint ntme ment nt or reta retail iler erss from from the the side side of the the dist distri ribut butor or.. Any one like like Panwa Panwala la,, Cigarettewala or any other shopkeeper can have the stall for the sale of soft drinks and they are called retailers retailers or outlet owners. They have to give assurance assurance to the concerning concerning distributor for better sale and at the time of taking delivery they have to deposit the security i.e. the charges if the empty bottles with specified retailers purchasing price. The charges if the empty bottles with specified retailers purchasing price. The distributor at first has to seek the permission of sales department for the number of cases of soft drinks required by them. After getting the proper authority from sales department paying the requisite amount either cash or demand draft.


WAREHOUSING Every company has to store its finished goods until they sold. A strong facility is necessary because production and consumption cycles rarely match. Warehousing is not a simply storing activity but a package of services that enables the smooth running of the industry. The stores must be in constant touch with the use department in order to provide uninterrupted services to the manufacture and its decision since working capital is locked up in the warehousing stores in equal to money. The stores functions can be organized in the following manner:a) To receive receive raw material material compone components nts equipments equipments etc. b) To meet the demand demand of use departm department ent by issuing issuing the order c) Account Accounting ing the the trans transact action ion prop properl erly. y. d) Minimi Minimizin zing g obsole obsolesce scence nce surplus surplus and scrap scrap by right identif identificat ication ion and using correct preservation method. The company supply finished products frequently to different distributors as per the demand. Every distributor keeps a minimum stock of different products of the product line so that the uninterrupted supply could not affect. In the industrial sector service of optimization where boils down to any exercise of optimization where limited available resources are to be distributed equitably. The problem arises from the material that are in stock the form of capital cost, storage loss, pilferage obsolescence, insurance, handling, documentation etc. Services level that can be maintained and hence the concept stores in money should be understood by every body in the organization.


INVENTORY DECISION

(1)

Branding and Packaging Out Out of the the tota totall mark market et acti activi viti ties es some some are are dire direct ctly ly perf perfor orme med d and and controlled by “Lumbi “Lumbini ni Beverag Beverages es Pvt. Pvt. Ltd.” Ltd.” itself itself some some are follow followed ed accord according ing to the standing instruction of “Pepsi Foods Pvt. Ltd.

So far far as the the proc proces esss of bran brandi ding ng and packa packagi ging ng is conce concern rned ed the the “Lumbini Beverages Pvt. Ltd.” Along with the authorized bottle in India adopt the same pattern.

(2)

Wholesaling Whol Wholes esal alin ing g incl includ udes es all all the the activ activit itie iess invol involve ved d in sell sellin ing g good goodss or serv servic ices es to thos thosee who who buy buy for for resa resale le or busi busine ness ss use. use. Manu Manufa fact ctur ures es use use wholes wholesale alers rs becaus becausee wholes wholesale alers rs can perfor perform m functi function on better better and more more cost cost effectively than the manufacture can. These functions are not limited to selling and promot promoting ing,, buy buying ing and assort assortmen mentt buildi building ng bulk bulk barkin barking, g, warehou warehousin sing, g, transporting financial risk bearing dissemination of marketing information and provision of management services and consulting. Like retailers wholesaler must decide on target market, product assortment and services promotion and place. The most successful wholesalers are those who adopt their services to meet and target customer’s needs, recognizing that existing to add value to the channel.


(3) (3) Reta Retail ilin ing g Retailing includes all the activities involved in selling goods or services directly to find consumer for their personal non-business use. A retailer or retail store is any enterprise which sales volume comes primarily form retailing.

All marketer retailers must prepare marketing plans that include decision on target market.

So the marketing channels can be viewed as a set of interdependent organization with high potential for conflict. Then why would any business chosen to become part of channel system.


TRANSPORTATION Transportation is life blood of business management and commerce. The purchase office’s job in incomplete until and unless he ensures that the material is shipped from the vendo vendor’ r’ss prem premis ises es loca locate ted d in diff differ eren entt area areass to his his orga organi nizat zatio ion. n. Purcha Purchasi sing ng the the transportation is a key element in his job particularly in the context of the transportation cost.

In deciding to transporting models shippers can choose from private contract and common carriers.

Tran Transp spor ortt deci decisi sion onss must must cons consid ider er the the comp comple lex x trad tradee off off betw between een vari variou ouss transp transport ortati ation on mode mode and their their implic implicati ations ons for other other distri distribut bution ion elemen elements ts such such as warehousing and inventory.


DISTRIBUTION OF PEPSI

Here there are four systems of distribution channels.

Chann Channel el 1.

Manu Manufa fact ctur urer er…… ………… ………… ………… ………… ………… ………… ………… ………… ………C …Con onsu sume mer r

Chann Channel el 2.

Manu Manufa fact ctur urer er…… ………… ………R …Ret etai aile ler… r……… ………… ………… ………… ………. …..C .Cons onsum umer er

Channel Channel 3.

Manufa Manufactu cturer rer…… ………Wh …Wholes olesale aler…… r…………. …….Ret Retail ailer… er………… ………Con Consum sumer er

Channel Channel 4.

Manufa Manufactu cture… re…….W ….Whole holesal saler… er……Jo …Jobber bber……R ……Reta etaile iler…… r……..C ..Cons onsume umer r

Channel of distribution of Lumbini Beverages Pvt. Ltd.

By Lorry or Truck

Distributor

Dealers of customer


PERFORMANCE OF PATNA Patna has a significant role for Pepsi, in products are supplied by “Lumbini Beverages Pvt. Ltd., Hajipur.’ There are more than eight hundred including exclusive and nonexclusive outlets of Pepsi in proper Patna. The highest sale of this year __________ cases was in the month of May and total sale of this year was……………..cases so far. Hierarchy is also necessary to understand the capacity of Pa tna town. HIERARCHY OF PATNA Distributor Consumer Executive Sales Man Accountant Vehicle Loader and Unloader


STUDY ON PRODUCTS Product line is a group of product, that are closely related because they satisfy a class of needs or used together or sole to the same customer groups or marketed through the same types of outlets or fall within given price range. Lumbini Beverages Pvt. Ltd., has the following product line:

Name

Colour

Flavour

Pepsi Mirinda Mirinda Slice 7’Up Dew Lehar Soda

Brunti Sunset Tetrazine Sunset Colourless Colourless Tetrazine

Cola Orange Lemon Mango Lime Lime Lemon


PRICE SHEET OUTLET RATE FLAVOUR

PACK SIZE

PCS RATE

PEPSI COLA PEPSI COLA PEPSI COLA PEPSI COLA MIRINDA ORANGE MIRINDA ORANGE MIRINDA ORANGE MIRINDA ORANGE MIRINDA LEMON MIRINDA LEMON 7UP 7UP 7UP 7UP MOUNTAIN DEW MOUNTAIN DEW MOUNTAIN DEW SLICE SLICE SLICE MY CAN PEPSI DIAT SLICE TETRAPACK LEHER SODA LEHER SODA

200 ML 300 ML 600 ML 2000 ML 200 ML

24 24 24 9 24

300 ML

C.RATE

168 214 454 459 168

PER PCS RATE 7 9 19 51 7

RATE

192 240 480 495 1 92

PER PCS RATE 8 10 20 55 8

24

214

9

2 40

10

600 ML

24

454

19

480

20

2000 ML

9

459

51

495

55

200 ML

24

168

7

1 92

8

600 ML

24

214

9

2 40

10

200 ML 300 ML 600 ML 2000 ML 200 ML

24 24 24 9 24

168 214 454 459 168

7 9 19 51 7

192 240 48 0 49 5 1 92

8 10 20 55 8

600 ML

24

454

19

480

20

2000 ML

9

459

51

495

55

250 ML 500 ML 1200 ML 250 ML 330 ML 200 ML

24 24 12 24 24 30

21 4 49 8 532 330 564 285

9 21 44 14 23.5 10

24 0 552 576 360 600 360

10 23 48 15 25 12

300 ML 600 ML

24 24

214 454

9 19

240 480

10 20


STUDY ON RETAILERS Retail Shop type

I. Monopoly Retail Shop II. Mix Shop

: :

The shop selling only one company’s Products The shop selling many company’s Products

The retailers can build a great deal of goodwill for the firm. The marketing strength depends on the strengths of retail dealers. Research has conduct survey on different types of outlet like bakeries, cold drink parlor, Booth and general stores etc. According to his survey, the major reasons for selling Pepsi produc ts are: (1) (2) (3) (4) (5) (6) (7)

Brand Image Customer Demand Profit Margin Advertisement Good Quality Sa Sales Promotion for Retailers Sa Sales Promotion for Consumers

18 % 20 % 05 % 30 % 10 % 07 % 10 %


BRAND PREFRENCE Pepsi products are most popular brand but Coke products are very dear brand of consumers due to advertisement.

Afte Afterr the the coll collec ecti tion on of diff differ eren entt view viewss from from cons consum umer er whic which h incl includ udes es,, servicemen, students, and businessman and observing the sale of Pepsi products. The research has calculated the preference consumption of different Pepsi products by the people of PATNA

Brand Preference of Consumers Flavour

% Consumption

Cola Orange Lemon Lime Mango

49% 16% 12% 07% 17%

15%

17%

49%

7% 12%


STUDYING THE MARKET POTENTIAL The market potential is an estimate of the maximum possible sales opportunities present in a particular market segment and open to all sellers of a good and service or during a stated future period. A market potential indicates how much of a particular product can be sold to a particular market segment. Market potential can be determined by measuring the sales in different areas. The data has collected from 100 outlets, which are situated in different areas of Patna. According to that, the per day sale of Pepsi Products is 154 carats and the per day sale of sale of Coke Products is 148 crates.

Per Day Sales in Crate of Products

Coca Cola 48%

Pepsi Coca Cola

Pepsi 52%


Chapter 7.

Conclusion and Suggestions


Conclusion and Suggestion In the earlier chapters of this report on various aspects of soft drinks industry with p par arti ticu cula larr refe refere renc ncee to esta establ blis ishm hmen entt of ‘’Lu ‘’Lumb mbin inii Beve Bevera rage gess Pvt. Pvt. Ltd. Ltd.’’ ’’ Its Its organizational structure and channel of Distribution Lumbini Beverage Pvt. Ltd. etc have been studied Present chapter is an attempt to summaries the whole report and present a view suggestion. From the data analysis and survey conducted by me, I arrived at the following conclusions:(1) Pepsi psi ha has th the ent entiire fl flavor vor i.e i.e.. Co Cola, Le Leman, Or Orange, Ma Mango ngo in in th the ma market and it its market share is comparatively more than Coke. (2) The ma majority of the re retailers de deal in al all bra brands of Pep Pepsi and Coc Cocaa-Cola. (3) One of of th the ma major dr drawbacks of of Pe Pepsi pr produc ducts is is th that al all th the fl flavors do do not not reach at each and every retail outlets but competitors products do reach that is why competitor enters in to Pepsi exclusive outlets . (4) Thee maj Th major or prob probllem faced aced by the dist distri ribu buto torr is the short hortag agee of of suppl upply y part partiicula cularl rly y pets. (5) Distributor functions just as order takes; they should contribute me and communicate to the retailers. (6) It sh shoul ould be be che checcked th that wh whether our pr produc ducts is is re reaching to to th the out outllets ti timely and regularly or not. (7) Although th the Vi Visi-coo cooler, Si Sign boa boarrd/Display ra rack an and Gl Glass st strength pr provided ded by Pepsi are more than Coke but still there are number of retailers, who are either not having these or others have provided them . (8) There is is ir irregular in in th the sup supp ply of of Vi Visi-cooler, er, so some re retailers, wh which se sell mo more are not provided Visi-cooler which some retailers, which sell less, are provided visicooler. (9) Some of the Visi-cooler provided by Pepsi is not functioning properly, complaints regularly, are entertained after a long time. (10) Most of of the the ret retailers are are in ne need of bo board but but not not pro provided by th the Pep Pepsi Company. (11) 11) Most Mo st of the retai etaile lerr’s esp espec eciiall ally sma smalll ret retai aile lerrs hav havee com compl plai aine ned d tha thatt the the sales ales man does not inform about any sales promotional scheme. (12) The big big ret retailers of Pe Pepsi do no not mai maintain the the pur purity in th the Vis Visi-cooler and and dictate their own terms and conditions.

.


Suggestions Lumbini Beverages Pvt. Ltd. should introduce some change in its marketing function and advertising to market more rational. The following factors to be worthy of consideration:-

1. A complain complain Regist Register er should should be provided provided by the compan company y to every distr distribu ibutor tor in every route so that, retailers/customers can write their problems. The complain register should be checked by consumer executive and depot in charge at time to time. 2. A clear notifi notificat cation ion should should be given given to teach distri distribut butor or and each route route agent agent to give give cash cash memo memo (wit (with h prin printe ted d numb number er)) and and main mainta tain in rout routee card card for for every every transaction. 3. Prop Proper er care care shoul should d be given given the the comp compan any’ y’ss empl employ oyee eess at the time time of schem schemee close. Signature of scheme receiving on the cash memo should be taken and it should be also maintained in route card. Claim Claim of scheme scheme should be passed after the deeply stud y of above three points i.e. difference between opening stock and closing, signature of scheme receiving on the cash memo and sells maintained in the route card. 4. Some Some reta retail iler erss keep keep othe otherr compan companie iess produ product ctss in the Pepsi Pepsi’s ’s fridge fridge,, whil whilee is provided provided by the company. To check additional additional scheme be given in every month, in the peak seasons seasons After the checking checking of Pepsi’s Fridge Fridge (3or 4 times in every month ) if It It is found that retailer does not keep other other companies products in the Peps Pepsi’ i’ss Pepsi Pepsi frid fridge ge the the clai claim m of sche scheme me shou should ld be passe passed d . Th Thus us we can can improve/increase its sell and employee’s activities. 5. There is is no electri electricity city problem problem in the whole whole area area of Patna. Patna. For chill chilled ed soft drink, ice ice box whic which h is comp compul ulso sory ry and and dred dredge ge both both shou should ld be prov provid ided ed by the the company. 6. The numbers numbers of outlet outletss are too much. much. So it is is required required to short short the the route and and extra vehicles/tricycles provide in this route. 7. Facili Facilitie tiess provid provided ed by the company company should should be increase increased. d. Faciliti Facilities es requirem requirement entss should be fulfilled in all the rural and urban area properly after deeply study for various aspects or retailers by the help of company employee and depot incharge. 8. Number Number of tricyc tricycle le can be install installed ed at various various place place like public public during during the peal hours i.e. evening and busy roads and chowks near the town`s commercial


centers. Care should be taken to install these tricycles under a shady tree where providing relief from h eat to the prospective customers as well as the vendor. 9. All these these tricyc tricycles les target targeted ed the tired tired and thirsty thirsty consum consumer er or the road and other other place, care should be taken that soft drinks in the ice box are always chilled and ice readily available. 10. The vendo vendors rs must must be taug taught ht to be be polite polite to to the consu consumer mers. s. 11. The vendors vendors can also also be provid provided ed with with uniform uniform by by the company company in order order to to give them visibility.

12. 12. An appr approp opri riat atee nam name shoul hould d be give given n to thes hese tricy ricycl cles es and and prop proper erlly advertisement thus giving giving them some sort sort of identity. 13. In winters, winters, as as the sales sales from from these these tricycles tricycles may may be very very low because because of seasonal seasonal factors factors Beverages Beverages Pvt. Ltd. should think think of introducing introducing such packs Beaver its various brands b rands of beverages . 14. It is vital take for “Lumbini “Lumbini Beverages Beverages Pvt. Pvt. Ltd. that maintain maintain the perfor performance mance of Pepsi in future therefore performance of soft drink was very good in this year in comparison of coke. 15. Now a day with with the intro introduc ductio tion n of tetra tetra packs such such as fruit fruity, y, Tree Tree Top etc. So Lumbini Beverages Pvt. Ltd. should think of introducing such packs of its various brands of beverages. 16. Lumbini Lumbini beverages beverages Pvt. Ltd. Ltd. should should be provided provided it’s it’s the the rural rural area area also. also. 17. Coke is the only only competitor competitor of Pepsi. Pepsi. So we should should try to keep every every informati information on about Coke i.e. prices scheme, policy etc. always it will help in Decision making. At last only this can be said that these suggestions are mot totally but even partially can be used by the Lumbini Beverages Pvt. Ltd. it would be pleasure for me and is certain that if these are carried out by management management , it will helpful in establishi establishing ng the Lumbini Beverages Pvt. Ltd. Ltd. on a more stronger footing. footing.


QUESTIONNAIRE Name: - ………………………………………………………………………………….. Address: - ……………………………………………………………………………….. …………………………………………………………………....................... Contact No: - ……………………………………………………………………………

(1)

(2)

(3)

(4)

(5)

Monthly sales (in Rs.) (a) Less than 5000

(b) Between 5000 to 10,000

(c) 10,000 to 15,000

(d) Above 15,000

Number of carets sold per month of soft drinks. (a) 0 - 50 carets

(b) 50 to 100 carets

(c) 100 to 150 carets

(d) 150 to 200 carets

Which type of outlet? (a) General Store

(b) Grocery

(c) Betel Shop

(d) Sweet Shop

Which brands of soft drinks are available in the outlet? (a) Pepsi Cola

(b) Mirinda (O)

(c) Mirinda (L)

(d) 7’Up

(e) Slice

(f) Mountain Dew

When a customer co comes to yo your shop wh which br brand of of soft drinks do does he he/she demands? (Rank them) (a) Pepsi

(b) Coca Cola

(c) Others (6)

Do yo you kn know ab about al all fl flavours pa pack (s (size) an and re respective wh wholesale pr price Pe Pepsi soft drinks. (a) Yes

(7)

(8)

(b) No

Which company’s soft drink is demanded most? (a) 0 - 50 carets

(b) 50 to 100 carets

(c) 100 to 150 carets

(d) 150 to 200 carets

What is the position delivery of Pepsi products? (a) Very Good (c) Bad

(b) Good (d) Worse 58

Academy of Management Studies, Dehradun

(9)

What is the frequency of the visit of Pepsi executive?

(10) (10)

(11) (11)

(12) (12)

(a) Daily

(b) Alternate Day

(c) Weekly

(d) Fortnightly

Whic Which h fac facto tors rs affe affect ct the the sale sale most most?? (a) Advertisement

(b) Scheme

(c) Presence

(d) Taste

(e) Price

(f) Others

Whic Which h com compa pany ny Visi Visi-C -Coo oole lerr do do you you have? have? (a) Pepsi

(b) Coca Cola

(c) Both

(d) Own

What What is the posit positio ion n of main mainte tena nance nce work of refr refrig iger erat ator or done done by Pepsi Pepsi Company?

(13) (13)

(a) Highly satisfactory

(b) satisfactory

(c) Less satisfactory

(d) Not satisfactory

Have Have you been prov provide ided d with with sign sign board board/di /displ splay ay rack rack by Coke Coke Comp Company any?? (a) Yes

(14) (14)

(b) No

Have Have you you any any type type of dissat dissatisf isfact action ion regard regarding ing the produc product. t. It It yes yes then then why? why? ………………………………………………………………………………

(15) (15)

Please Please give any sugges suggestio tion n for improve improvemen mentt regard regarding ing distrib distributi ution, on, brand, brand,

bottling bottling etc. …………………… ……………………………… …………………… …………………… …………………… …………………… ……………… …… ………………………………………………………… …………………………… …………………………………………………... ……………………... ……………………………………………………………………………………… (16)

What is your opinion about Pepsi products? …………………………………………………………………………………… …………………………………………………………………………………… Thank You

Place:-…………………… Date:- ……………………

Surveyed by



Project on Distribution Channel of Pepsi

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