RESEARCH METHODOLOGIES CARDIFF METROPOLITAN UNIVERSITY
BUSINESS PERFORMANCE AND OPPERTUNITIES OF PEPSICO IN INDIA
SUBMITTED BY
: SAIDALAVI CHERNGODAN
COURCE
:
SEMESTER
: TWO
ID NO
MBA
:
0120DODO1011
LECTURER
:
Dr. KUI JUAN
MODULE TITLE
:
RESEARCH METHODOLOGIES
SUBMISSION DATE
: 15 - 08 - 2012
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Table of Contents 1.0 INTRODUCTION ............................................................................................................................ 4 1.1 BACKGROUND .......................................................................................................................... 4 INDUSTRY PROFILE .......................................................................................................................... 4 COMPANY PROFILE ......................................................................................................................... 6 1.2 PURPOSE AND PROBLEM STATEMENT ............................................................................... 8 2.0 RESEARCH QUESTIONS........................................................................................................... 8 3.0 RESEARCH OBJECTIVES ......................................................................................................... 9 3.0.1 RESEARCH FRAMEWORK OR MODEL ............................................................................ 10 3.0.2 EXPECTED OUTCOMES ...................................................................................................... 10 4.0 LITERATURE REVIEW ............................................................................................................... 12 4.1 PRODUCT DIFFRENCIATION ................................................................................................ 12 4.2 COMPETITION ......................................................................................................................... 14 4.3 CSR ACTIVITIES FOR SUSTAINABILITY ........................................................................... 17 4.3.1 PARTNERSHIP WITH FARMERS............................................................................................. 19 4.3.2 WATER REPLENISHING ......................................................................................................... 20 4.3.3 FOR ENVIRONMENT ............................................................................................................. 21 4.4 INNOVATIVE MARKETING PRACTICES ............................................................................ 24 ADVERTISMENT ............................................................................................................................. 25 5.0 RESEARCH METHODOLOGY .................................................................................................... 28 5.1 RESEARCH DESIGN ................................................................................................................ 28 5.2 SAMPLE DESIGN ..................................................................................................................... 30 5.3 DATA COLLECTION ............................................................................................................... 31 5.3.2 COLLECTION METHODS........................................................................................................ 32 SUMMARY OF RESEARCH DESIGN ................................................................................................ 33 5.4 DATA ANALYSIS ..................................................................................................................... 33 6.0 ETHICAL ISSUES ......................................................................................................................... 34 7.0: GANTT CHART ........................................................................................................................... 35 8.0 REFERENCES ............................................................................................................................... 36 9.0 APPENDIX ..................................................................................................................................... 40 QUESTIONNAIRE .......................................................................................................................... 40
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LIST OF TABLES SI NO 1.1 2.1 2.2 2.3.1 2.3.3 2.4.1 3.1.1
TABLE NAME MARKET SIZE AND ANNUAL GROWTH OF DIFFERENT BEVERAGES IN INDIA DIFFERENT BRAND PRODUCTS OF PEPSI IN INDIA ANALYSIS OF PEPSI COMPETITORS IN INDIA COMMUNITY WATER INITIATIVE PROGRAMME IN STATES PEPSICO INDIA CSR PARTNERS TOP 5 ADVERTISERS IN INDIA 2010 DIFFERENCE BETWEEN EXPLORATORY
PAGE NO 4 13 14 21 22 25 29
ANDCONCLUSIVE RESEARCH
LIST OF FIGURES SI NO 1 2 3 4 5 6 7 8
FIGURE NAME Market Growth Rates Of Indian Soft And Aerated Drinks FINANCIAL SNAPSHOT OF PEPSI PEPSI PRODUCTS IN INDIA PORTER’S 5 FORCE MODEL Top 5 brands In India 2010 THREE SPHERES OF SUSTAINABILITY Research Onion TYPE OF DATA COLLECTION
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PAGE NO 6 7 12 15 16 18 28 32
1.0 INTRODUCTION 1.1 BACKGROUND INDUSTRY PROFILE
The history of Indian soft drink industry go back to early 1990’s, during the time soft drinks industry was under domestic enterprises like Campa, Thums up, Limca and so on. In this period of time Indian government allowed multinational Companies to enter in Indian market as a part of globalisation. This policy led to enter major soft drinks players like PepsiCo In (1988) and re enter of Coca Cola in (1993) to Indian market. Now Approximate 125,000 employed in soft drink sector of India. According to the research (Research and Markets, 2012) in each year about 120 Billion litters of beverages buying Indians. 75% of customers prefer non alcoholic beverages like carbonated and other non carbonated such as fruit drinks, coffee and so on. In case of overall soft drink industry Cola drinks consumed almost 65% in Indian market. In 2010 total revenue of $3.8 billion generated by Indian soft drink industry, within the contribution of $1.9 billion by carbonated drinks. So it can say that sparkling and still beverages are the most selling beverages in India. It is estimated that by the end of 2015 it would be the market value of $5.9 Billion. Indian food and beverage industry is the targeting point of big players for huge revenue. Especially in the case of non alcoholic drink sector India achieving tremendous growth in past years. It s because mainly the growth of population especially middle class, it is evident that it is rising about 15% and it will become 850 million potential customers and quick urbanisation as well as the rising income of people. TABLE 1.1: MARKET SIZE AND ANNUAL GROWTH OF DIFFERENT BEVERAGES IN INDIA Beverages
Market size
Market growth (Annually)
Fruit beverages
180 million (Rs 5,000 30%
4
crore) Carbonated drinks
$1.5 Billion (Rs 6,000 10-12 per cent annually crore)
Juice based drinks
$.25 billion
35-40 per cent annually
Energy beverage industry
$230 million Rs 500 crore
grow at a CAGR of 25%
Beer market
7-8 %
Milk based beverages
2.7 %
Hot beverages
Rs 8,500 crore
1-2 per cent annually
(Standard, 2012)
According to ministry of food processing industry, it says that in annually soft drink industry increasing 6-7 % growth with the consumption of 5-6 bottles. It is evident that (Standard, 2012) India stands third biggest consumer market of beverages (10%) after USA and China. It shows that in between 2008 and 2012 sales growth became more than 60 percentages. In the case of per capita utilisation of packaged drinks became 2.6 litre (2000) to 8.7ltr in the year of 2012. So it can say that huge growth of Indian beverage industry. But per capita consumption of carbonated drinks (< 3 litre per annum) still remains low and need to improve. The major players of Indian soft drinks industry are PepsiCo, Coca Cola Company, Kraft food, Nestle, Apple Valley Group, Rasna international, Dabur India Ltd, Red Bull India Pvt Ltd and so on, with the brands of Thumps Up, Limca, Pepsi, Sprite, Coca Cola, Mirinda, 7UP, fanta and so on. (India, 2012)About 85 % Indian market domain under PepsiCo and Coca Cola directly and franchise with huge market share. However here is a research doing about the current business performance and future opportunity of PepsiCo in Indian context with the analysis of their competitors.
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FIGURE 1 Market Growth Rates Of Indian Soft And Aerated Drinks 10
Growth in percentage
9 8 7 6 5 4 3 2 1 0 1990-91 to 1996- 1996-97 to 2001- 2001-02 to 2006- 2004-05 to 2009- 2009-10 to 201497 02 07 10 15 Years
(MOFPI, 2012)
COMPANY PROFILE
PepsiCo is a multinational Company which operating in more than 200 countries head quarter purchase in USA. According to the Company they are one of the leading food and beverage Company with annual revenue of $60 billion and nearly 285,000 employees around the globe. Company founded by Donald M. Kendall in the year of 1965 in Chicago. Now Company has wide variety of global product portfolios includes 22 brands in food and beverage sector. In beverage industry their Major products are Pepsi and Diet Pepsi, 7UP, Mountain dew, Tropicana, slice, Aquafina, Nimbooz, Mirinda and so on. Global food businesses are Aliva, Quaker oats, Fritos, Lays, Doritos, Cheetos and kurkure and so on. This
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diversified products are the core strength of PepsiCo when compare with their competitors with present dynamic competitive business environment. (PepsiCo, 2012) FIGURE 2 FINANCIAL SNAPSHOT OF PEPSI Net revenue of PepsiCo 25000
Net Revenue in USD
20000 15000 2009
10000
2010
5000 0 QFNA
LAF
AMEA
EU
FLNA
PAB
Axis Title
Their mission focuses to become world’s first food and beverage Company with fairness and integrity. Their vision stands for create a healthier tomorrow than today and to be committed all aspect of world with global sustainability. (PepsiCo, 2012) PEPSICO IN INDIA
India had strict regulation for foreign direct investment before 1990. But later India allowed to foreign companies and lifted strict rule in order to invest in Indian market. In this same period of time PepsiCo first entered to Indian market with the joint venture between Voltas India Ltd and PAIC. But later 1994 Pepsi closed the agreement and became an independent enterprise here. In a short period of time they became principle and greatest booming food and beverage business in this market. PepsiCo India’s various portfolio consist of both carbonated and non carbonated popular beverage brands like Pepsi, slice, Gatorade, aquafina, 7UP, Mountain dew, Tropicana and Nimbooz. At same time PepsiCo
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came up with differentiated food products like Uncle chipps, Kurkure, Quaker Oats, Lay’s, Aliva and Lehar namkeen and so on. (PepsiCo India, 2012) In this present scenario Pepsi facing high competition from industry competitors like Coca Cola, Nestle, dabur and so on. Pepsi has dominating 31% of market share with annual revenue of 57.8 Billion. Even though Coke has 42% market share Pepsi’s multiple businesses generating more revenue than Coke (35.2B) in Indian market. (caspost, 2012) Now Pepsi India develop in to the countries major food and beverage business and also leading PepsiCo global growth with contribute the huge revenue from India. 1.2 PURPOSE AND PROBLEM STATEMENT Purpose: To study the business performance and opportunities of PepsiCo in Indian food and beverage industry. Problem Statement: An analysis of the business performance and opportunities of PepsiCo in India. 2.0 RESEARCH QUESTIONS
2.1 How product differentiation strategy helped Pepsi Co in order to increase market share in India 2.2 What are the strategies Pepsi is implementing in order to overcome the high competition from competitors in Indian beverage industry. 2.3 How CSR activities reflected positively to retain good relation with PepsiCo’s Indian stakeholders. 2.4 What are the innovative marketing practices and how technological changes helped business in India 2.5 How Pepsi reacted to wards environmental issues which formed due to their business practices.
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3.0 RESEARCH OBJECTIVES
3.1 To identify the extent to which product differentiation strategy supported PepsiCo in terms of increase market dominance in India 3.2 To analyse the factors of competition and study about the actions they practicing in order to make competitive advantage in Indian soft drink industry 3.3 To find out PepsiCo’s CSR activities and analyse how far it reflected positively to the Indian community stakeholders. 3.4 To explore the strategies and practices regard innovative marketing concept of Pepsi 3.5 To investigate the environmental problems and analyse the risk management strategies of PepsiCo in Indian context.
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3.0.1 RESEARCH FRAMEWORK OR MODEL
DIFFRENCIATION
COMPETETION
BUSINESS PERFORMANCE AND OPPORTUNITIES OF PEPSICO IN INDIA CSR AND SUSTAINABILITY
ENVIRONMENTAL ISSUES
3.0.2 EXPECTED OUTCOMES
As a multinational Company’s research project, it would benefited both academic career and practically. In career side, it will contribute the skills in referencing and research, to create
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planning, skill for critical evaluation, to study the theories and its application and also to do survey research in many ways and so on. In practically, it will help support to forecast threats and opportunity on the light of current trends help to take quick decision making and problem solve, to craft strategic interventions on the basis of study.
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4.0 LITERATURE REVIEW
4.1 PRODUCT DIFFRENCIATION
According to (KOTLER, et al., 2009) product differentiation is a strategy that firm focus to make diverse products with particular features and marketing to current and diversified marketing segment. PepsiCo is the most recognisable brand in India and they have large number of product portfolio in both food and beverage segments. Product differentiation is a vital marketing strategy which Pepsi using as a core competence when compare to their competitors in Indian market. According to PepsiCo India (2011) due to the extension of product portfolio especially in to food sector, the past two year India give highest volume growth in globally. Due to the highest level of literacy Indian people now more concern about healthier food products, here Pepsi could catch the market share with their different range of healthier and fun products. Low growth of carbonated drinks persuaded PepsiCo in 1999 on words to turn to food related products like snacks; chips based products, oats, and cracker. In this category their differentiated products are lay’s, it is the leading salty snack branded product with low fact, and also lay’s potato chips, Cheetos extruded snacks, Quaker Oats and Uncle chips. Healthier products like fibre breakfast cereal, roasted snack category like aliva and traditional snacks from Kurkure and lehar brands. It was the big milestone of PepsiCo differentiated strategically interventions when compare with their competitors in this market. FIGURE 3 PEPSI PRODUCTS IN INDIA
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According to (PepsiCo India, 2012) due to the product diversification past two years Indian food and beverage sector gave highest volume growth to PepsiCo in globally. In the case of beverage products, due to the low growth of carbonated cola industry they diversified in to other ready to drink like fruit based juices, bottled water, and tea and so on. In this category they launched Tropicana, Gatorade, Aquafina, Slice, Nimbooz, mirinda and so on. (PepsiCo India, 2012) This innovative differentiation strategy actually led to the rapid growth of
revenue as well as market share in Indian food and beverage Industry. According to (Standard, 2012) PepsiCo Indian snacks and beverage businesses grew by dual digits volume in the last three month year ended 31 March 2012. Compared to previous year net revenue grew 12percent growth with a net revenue of $12.43 billion. So it can be inferred that Pepsi’s food business sector contributing a major income and it resulted to increase their market share in India. As per the research it can say that on the basis of their differentiation in the future Pepsi has optimistic opportunity here and it would be make huge revenue in coming years. TABLE: 2.1
DIFFERENT BRAND PRODUCTS OF PEPSI IN INDIA
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4.2 COMPETITION
In this present Of course Indian food and beverage industry also struggling with high competition among big players like PepsiCo, Coca Cola, Nestle, Rasna and so on. After the re-entry of Coke in to India, Pepsi faced neck to neck competition from Coke. Coke came up with the acquisition of major Indian brand Thums Up in order to compete with Pepsi. But Pepsi also took a great strategically turn through the acquisition of 7UP. It was the beginning of Cola battle in India. Now Pepsi and Coke is not only competing with their current products but also in the way of marketing, domination of new market, technological innovation and of course the for the long term sustainable growth in this huge market. TABLE: 2.2 ANALYSES OF PEPSI COMPETITORS IN INDIA
ANALYSIS OF COMPETITION 60 50 40 30 20 10 0
Rasna International Market share in Percentage 1 Sales revenue in Billion 2.6 Volume growth in Percentage 6
14
Nestle
PepsiCo India
2 6.55 12
44 28 17
Coca Cola India 51 16 8
According to the analysis, even though Coke has a prime market share in India over PepsiCo, but still they growing over Coke in terms of the revenue and volume growth. Here it can understand that Pepsi getting competitive advantage as the result of their multiple food and beverage products introduction. Pepsi’s strategically implementation includes product differentiation, local operation through bottling, local operation through bottling, heavy investment, focus of snack and food segment, low prize and so on. (BUSINESS STANDARD, 2012) FIGURE: 4 PORTER’S 5 FORCE MODEL Five force analysis of competition about PepsiCo will help to identify the force of competition NEW ENTRANTS Threat of entrants- LOW
Need huge investment Required world-wide network Longer R&D process
Industry Competitors Suppliers Suppliers bargaining powerLOW -Pepsi Bottling partners Manufacturing raw materials themselves
Coca Cola Company Kraft foods Rasna India ltd Nestle Dr. Pepper Snapple other Local company
Buyers Buyers bargaining power-HIGH Many substitutes healthiness concern customers quality
Substitute
Beer Companies Water Coffee Tea snacks
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FIGURE: 5
Top 5 brands In India 2010
Market Share Coca Cola
Thums Up
Mountain Dew
Mirinda Orange
Pepsi
12% 35%
14%
14%
25%
(EXCHANGE4MEDIA, 2012)
According to the evident it can say that they doing their business in a high dynamic competitive business industry, especially because of high competition from Coca Cola, Nestle, Rasna and Kraft food. It is very essential to overcome the threat from rivalry and also need to implement innovative strategy in order to make market dominance and keep customers in a long term basis. When going through some research it can see that in India Pepsi successfully competing and have Competitive advantages over their base competitors Coca Cola. According to (caspost, 2012) Pepsi made increased growth in last year’s in regard drinking water, growth in RTD tea, increased sales in healthier beverages, growth in functional and Asian beverages. When make a Comparative study with Coke their beverage brands may not make much income, but it’s snack items helped to boom in Indian market. In food industry they only has a low competitive rivalry from Dabur, Parle Agro, HUL etc. According to business standard, in regards A&M study highlight that Pepsi is the fourth leading marketer in India than Coke(5th) PepsiCo could predict and react the trend changes of India and they cunningly move in to the different business catogary according to the taste and preference of Indian
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customers. (BUSINESS STANDARD, 2012) PepsiCo India ranked 5th on the basis of revenue $60 Billion from their snacks products and earns 30% income only from emerging market like India. Hence in the future it can see that there is a big opportunity for them due to the high population especially growth of middle class. According to the CEO Indra Nooyi, they are investing aggressively in India rather than coke, such like the investment of coke in China. Pepsi now started several new soft drink plants with their existing 40 plants. With those all factors and high demand of fruit based drinks, low cost pricing strategy, availability of skilled man power and managers in a competitive cost, infrastructure and technological development and all other optimistic factors would help Pepsi for develop in future.
4.3 CSR ACTIVITIES FOR SUSTAINABILITY In this 21st century in order to make a long term sustainable business growth Companies have to make sure right thing what they do. People are highly concern not only the business performance but also how companies intervention to keep the ethics side and add value to their practices by keep the demands of their stakeholders as the part of corporate social responsibility. It is the key drive to run business in a long term basis in this flexible business environment. The objective of CSR is to hold a commitment for the company’s practice and to encourage a favourable attitude through its actions on to environment, employees, customers, local community, government and also other dependence who related to the business (TRIPLEPUNDIT, 2012). So as we know Pepsi is a manufacturing based Company, water is the major ingredient (86-90%) and also water is using as a energy resource for the operation. So Pepsi has core relation with their environment in regards business activities. So they have to maintain a good relation with their community stakeholders like environmental activist, social community and government in order to create a smooth run for their business as well for a better environmental performance. Otherwise they might face high external pressure from both Pressure group and government. It would be result to the strategic drift and unsustainable in the Indian market.
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FIGURE: 6
(EDU, 2012)
According to PepsiCo, (PEPSICO INDIA, 2011)their Indian mission is that “performance with Purpose” which means (long term beneficial sustainable growth performance with provide value to the societal and environmental goals. As a manufacturing Company they utilizing a high amount of natural resources, but as the part of CSR activity Pepsi's continues effort to increase the environment performance overcome the problems to an extent. Their CSR activities are;
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4.3.1 PARTNERSHIP WITH FARMERS
Partnership in 9 states with over 22,000 farmers
Support the growth of them through more earnings.
Contact farming for agri-sustainability
Provide insurance service with the partnership of ICICI India
Huge help for potato farming
Give low interest loan with tie-up SBI
Providing 360 degree support through buy back, modern technological practices, high class seeds and also medical packages (PEPSICO INDIA, 2012)
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4.3.2 WATER REPLENISHING
Saved and recharged 10.1Billion Litre fresh water in 2010
$ 8 million for “water credit” around India
Reusing, replenishing and recharging water
Became first company to achieve “Positive Water Balance” in India
In 2010 Saved(30%) water through Paddy farming
Decreased water usage ( 2.26%) in beverage plant and (2.8%) food plant.
Enhanced water availability to 130,000 people
Water saving through drip irrigation for potato
Community water recharge and protection projects.
(PEPSICO INDIA, 2012)
(PEPSICO INDIA, 2011)
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4.3.3 FOR ENVIRONMENT
Rubbish collection from house holds
Education and training campaign for 859 community to recycle waste
Eco-friendly waste renewed to organic manure
Launched PET plastic, tetra packs for easy recycle
Awareness programme in house-to-house
Evolved a self sustaining model
Reduced carbon footprint and GHG for better climate
Waste to wealth campaign achieved 465,000 families (PEPSICOINDIA, 2012)
TABLE 2.3.1 COMMUNITY WATER INITIATIVE PROGRAMME IN STATES
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TABLE: 2.3.2 CSR ACTIVITIES OF PEPSICO IN ENVIRONMENTAL PROBLEMS
As per the analysis it can say that PepsiCo India care their community stakeholders by giving values throughout their each activities. Pepsi also provides numerous benefits to their employees, like healthier workplace condition and to customers through healthier and high quality beverage and food products and also community through various kinds of charities and so on. They are doing sustainable business practice with their four key areas of sustainability which is human, environmental, performance and talent sustainability. However Pepsi’s CSR activities helped to retain their customers and of course in future it will help to increase the market dominance just because of now people considering and analysing business not only the basis of their product but also how they meet and committed to their all stakeholders expectations in everything they do. TABLE 2.3.3
PEPSICO INDIA CSR PARTNERS
Name of Pepsi India CSR Partners The Energy and Resources Institute
Activity implementation of watershed management projects in Neelamangala and Uttaranchal
ADI-Alternative Development Initiative
Partner in Watershed Management Projects in Kerala, Punjab and Maharashtra
Exnora Green Pammal
Partner in Waste to Wealth Programmes
CAP Foundation
Partner in training and provide alternate livelihood options for Tsunami affected communities in Andhra Pradesh and Tamil Nadu.
Swashrit Society
Partner in Get Active programmes, to promote active and healthy lifestyles among kids
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Project Healing Touch
Programme to provide ex-servicemen with sustainable livelihoods
Youthreach India
Partner in People with Purpose programme
International Labor Organisation
Partner in creating and implementing its HIV/AIDS Workplace Policy
(PEPSICO INDIA, 2012)
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4.4 INNOVATIVE MARKETING PRACTICES
PepsiCo is one of the founding father of innovative marketing and advertisement in global as well as in India. In this high competitive business industry innovative marketing practices is a key driver of business in order to make a high position in customers mind. Inefficient marketing activities will led to the negative growth in the particular industry especially in this high dynamic macro business environment. Technology plays an important role which help Pepsi to bring innovation in what they do. Technology is changing very quickly with the changes of modern business world. Let’s have a look how Pepsi increasing their brand image through marketing techniques. VENDING MACHINES
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Free style vending machines is the new technological innovation which offers all Pepsi’s brand beverages according to the customer preference. According to (TECH2INDIA, 2012) vending machines provide 80 and more alternative customer options with one touch. This consumer preference strategy helped to increase the sector leadership in India. Web marketing strategies There are number of indirect marketing they are doing with the support of technology such like e-commerce, agreement with yahoo, quick information accessibility on demand. PepsiCo online stores make sure direct selling of the product. (DOCSTOC, 2012) ADVERTISMENT TABLE: 2.4.1
TOP 5 ADVERTISERS IN INDIA 2010
(EXCHANGE4MEDIA, 2012)
E- technology bring more innovative techniques in terms of promotional activities of PepsiCo India, such like adds through Music sites, e-relationship management, social networking, advertisement through online stores, design through electronic based incorporated marketing advertisement and also with the help of ERP Software. (media, 2012)
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Social Networking
According to (Ezinearticles, 2012) social networking is a form of relationship and connecting system among a group of people and it also helpful to create a community. For instance face book, twitter, Orkut and YouTube. Development of social networking is a big milestone of technology as well as it plays a crucial role in corporate business world especially in the field of promotion. In the case PepsiCo they have more than 100 Pepsi face book fan pages, they advertising in face book, twitter and My Space it help to make a mass advertisement people to people without any more effort. Through this advertisement people can see latest product and features and they also become the part of promotional activity both directly and indirectly.
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Partnership with celebrities
I think PepsiCo India’s core competence lie in the way they marketing especially their promotional methods. They also made big budget agreement with sports events like (2010 World Cup), Indian celebrities and also major national cricket players. For instance in film Shahrukh Khan, Saif ali Khan, kareena Kapoor and John Abraham and also from Cricket Sachin Tendulkar, Dhoni, Sehwag, Harbajan Singh who are the major sponsors of PepsiCo India. So as per the analysis it can inferred that PepsiCo using numerous innovative marketing and promotional activities for continues market dominance in future Indian food and beverage industry also (inspiration, 2012).
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5.0 RESEARCH METHODOLOGY 5.1 RESEARCH DESIGN
According (Geoffrey Marczyk, 2005) Research is an assessment of upshot of single or more dependent variable on single or more independent variables. This figure shows that information about a research study with various layers that should access. FIGURE 7: Research Onion
(Saunders, et al., 2006) Research design can be divided in to two category they are; 1. Exploratory Research:
It is developed to examine the possibilities and issues to tell the result about chosen investigation. It is mainly helpful to identify qualitative data than a quantitative research. It
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focuses to get secondary information from existing resources. For instance it will help to get “Pepsi’s” qualitative analysis through observations. (Collis & Hussey, 2009)
2. Conclusive Research:
It is a type of research which design to get a conclusion from exact hypothesis in order to make a better decision making. It can say that it focus to get quantitative datas of PepsiCo than qualitative data. For instance it mainly finds the information from statistical evidence through formal measurement. (Geoffrey Marczyk, 2005). TABLE: 3.1.1 DIFFERENCE BETWEEN EXPLORATORY AND CONCLUSIVE RESEARCH
(Courses, 2012) Let’s start to prepare a conclusive research on PepsiCo; here I want to gather quantitative data than qualitative in order to take a decision. However there are two type of Conclusive research. They are,
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A. Descriptive Research This is one of the most famous sorts of research method. It is a type of study based on the position, and analyse the industry and competition. For Instance, to investigate the number of competitors PEPSI has in Indian Industry. (DJS Research, 2011) B. Causal Research This type of research helpful to identify what variable is reasoned for another problem or issue. It is actually the source and consequence between variables. For instance high competition causes fall down of PepsiCo’s market share In India. (MJ Research, 2008) 5.2 SAMPLE DESIGN It is about the decision of which sample should chose for the particular survey or study. Sample design is a plan or procedure construct before data gathering to find a sample from a available people. (OECD, 2006) Advantages of sample survey are;
cost efficiency
more realistic
deep study
time efficient
SAMPLING METHODS Sampling methods are used to acquire a lesser quantity within a whole group of population. It is useful to cost control, time efficiency in sample collecting etc (Cramster, 2012) sampling methods are classified in to Probability and non probability sampling; PROBABILITY SAMPLING A probability sampling is that to get equivalent opportunity for being included. This kind sample enable researchers to approximate the number of sampling mistake is in current research. Probability sampling is classified in to three; stratified sampling, systematic sampling and multi stage sampling.
NON PROBABILITY SAMPLING:
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Non probability samples system is in order to take information from target population. It normally do through a form of questioners, for example questionnaire provided to the community who are the neighboring residents of PepsiCo manufacturing plant in India. (media.wiley, 2008) It further subdivided in to three, such as Judgment sampling, Convenience sampling and quota sampling. Here I prefer quota sampling for PepsiCo through a sample of customers who represent the whole customers of a particular state. It easy to get customer feedback without see each and every customers.
5.3 DATA COLLECTION Data collection is a vital part of all type of research. It usually do after the issue identification and research design. This data can be primary data and secondary data. Primary Data Primary data are the fresh information which gathers through straight relationship in b/w respondent and researcher. The ways of this collection is mainly surveys, interviews and so on. For instance collect information from Pepsi’s employees through a survey. Secondary Data Secondary data are the second hand information which previously did some others it exists in printed and web sources. For instance access the financial analysis of Pepsi
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FIGURE: 8 TYPE OF DATA COLLECTION
Data to be collected from two type of research; DATA REQUIRMENTS
QUALITATIVE
QUANTITATIVE
PRIMARY
SECONDARY
Interview
Questionnaire
Published Sources
5.3.2 COLLECTION METHODS The methodology of my study is mainly on the basis of primary data research which focuses qualitative type analysis. It will help to get direct information in more practical and
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timely from the current Pepsi customers and it would help to know the future opportunity in India. These qualitative methods are also useful to get direct information, such like through Pilot study and focus group interview. SUMMARY OF RESEARCH DESIGN SAMPLE UNIT: All the current Customers of PepsiCo who preferring their brand products METHOD OF SAMPLE: Non Probability sampling- Quota sampling SURVEY LOCATION: India SAMPLE SIZE: 150 COLLECTION TYPE: Self Administrated Questionnaire Survey DATA MEASUREMENT (performance/ opportunity) PROBLEM: To study on Business Performances and opportunities of PepsiCo India. FACTORS: PRODUCT DIFFERENCIATION COMPETETION CSR ACTIVITIES MARKETING PRACTICES 5.4 DATA ANALYSIS
It is an important step which highlights the data like financial, statistical and subject issues for the research. Here study focus with a number of tables, figures and diagrams used for the analysis and comparison. (Geoffrey Marczyk, 2005)
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6.0 ETHICAL ISSUES Ethics is a certain code of conduct and policy that direct our activities and decide the intention our life right thing what do. (Resnik, 2011) When conduct a research we should follow some ethical behaviour like privacy and discretion, right of rejection, informed sanction, do not discriminate partiality and plagiarism.
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7.0: GANTT CHART
NO
TASKS
OCTOBAR W1
1 2
3
W2
W3
W4
NOVEMBER W1
W2
W3
RESEARCH PROPOSAL SUBMISSIO N PROPOSAL CONFIRMA TION AND APPROVAL LITERATU RE REVIEW
4
RESEARCH DESIGN
5
QUESTION NAIRE DESIGN
6
DATA COLLECTI ON
7
REFEREN CES AND FINALISA TION
8
REPORT WRITING AND SUBMISSIO N
BUDJET (In Rupees)
Travelling cost - 250
Electricity bill-180
Food and accommodation- 550
Miscellaneous cost- 350
Paper Cost- 100
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W4
DECEMBER W1
W2
W3
W4
JANUARY W1
W2
W3
W4
8.0 REFERENCES Adfoster, 2010. Primary and Secondary data-What's the difference?. [Online] Available at: http://www.adfoster.com/primary_secondary_data_what_s_the_difference [Accessed 10 April 2012]. AECT, 2012. The Handbook of Research. [Online] Available at: http://www.aect.org/edtech/ed1/41/41-01.html [Accessed 9 April 2012]. BUSINESS STANDARD, 2012. Consumers thumbs-up to Coke, Pepsi. [Online] Available at: http://www.business-standard.com/india/news/consumers%5C-thumbs-up-to-cokepepsi/469321/ [Accessed 11 AUGUST 2012]. BUSINESS STANDARD, 2012. THE NEW FRONTIER. [Online] Available at: http://www.business-standard.com/india/news/the-new-frontier/472228/ [Accessed 12 AUGUST 2012]. caspost, 2012. Coke vs Pepsi Cola war. [Online] Available at: http://caspost.com/coke-vs-pepsi-115-years-of-the-infamous-cola-wars/3/ [Accessed 04 August 2012]. Castillo, J. J., 2009. Probability Sampling and Randomization. [Online] Available at: http://www.experiment-resources.com/probability-sampling.html [Accessed 9 April 2012]. Collis, J. & Hussey, R., 2009. Business Research. 3 rd edition ed. United States: Palgrave Macmillan. Courses, 2012. Difference between Exploratory and Conclusive Research?. [Online] Available at: http://engineering-courses.com/difference-between-exploratory-conclusive-research2673.html#ixzz1r5AOK6Rc [Accessed 2 August 2012]. Cramster, 2012. Definition of Sampling Methods. [Online] Available at: http://www.cramster.com/definitions/sampling-methods/880 [Accessed 10 August 2012]. DJS Research, 2011. What is Descriptive Research. [Online] Available at: http://www.marketresearchworld.net/index.php?option=com_content&task=view&id=800&Itemid= 64 [Accessed 04 August 2012]. DOCSTOC, 2012. Marketing. [Online] Available at: http://www.docstoc.com/docs/74980198/PEPSI-COLA [Accessed 11 August 2012].
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EDU, V., 2012. WHAT IS SUSTAINABILITY. [Online] Available at: http://www.vanderbilt.edu/sustainvu/who-we-are/what-is-sustainability/ [Accessed 12 AUGUST 2012]. ETHICS TRAINING RESOURCE GROUP, 2007. ETHICAL ISSUES IN HEALTH RESEARCH. [Online] Available at: http://epi.berkeley.edu/Ethics%20Training%20Manual.pdf [Accessed 6 April 2012]. EXCHANGE4MEDIA, 2012. EXCHANGE FOR MEDIA. [Online] Available at: http://www.exchange4media.com/News/Analysis.aspx?AnalysisID=29 [Accessed 11 AUGUST 2012]. Ezinearticles, 2012. social marketing. [Online] Available at: http://ezinearticles.com/?What-Every-Financial-Institution-Should-Know-About-SocialNetworking&id=4227199 [Accessed 07 August 2012]. Geoffrey Marczyk, D. D. D. F., 2005. Essantials of Research Disign and Methodology. 2nd ed. s.l.:s.n. India, m. o., 2012. Top soft drinks brand in India. [Online] Available at: http://business.mapsofindia.com/top-brands-india/top-soft-drink-brands-in-india.html [Accessed 02 August 2012]. inspiration, T., 2012. Pepsi advertising. [Online] Available at: http://theinspirationroom.com/daily/2011/pepsi-change-the-game-of-world-cupcricket/ [Accessed 13 August 2012]. Kothari, C., 2004. Research Methodology Methods and Techniques. 2nd ed. s.l.:New Age International Puplishers. KOTLER, P., KELLER, K. L., KOSHY, A. & JHA, M., 2009. MARKETING MANAGEMENT. 13TH ed. NOIDA: PEARSON EDUCATION. media.wiley, 2008. problem definition,exploratory research, and the research process. [Online] Available at: http://media.wiley.com/product_data/excerpt/86/EHEP0001/EHEP000186-2.pdf [Accessed 05 August 2012]. media, s., 2012. Pepsico and uniliver connect with customers. [Online] Available at: http://www.just-food.com/management-briefing/social-media-pepsico-and-unileveraim-to-connect-with-consumers_id115810.aspx [Accessed 08 August 2012]. MJ Research, 2008. Causal Research. [Online] Available at: http://www.htm.uoguelph.ca/MJResearch/ResearchProcess/CausalResearch.htm [Accessed 7 AUGUST 2012].
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MOFPI, 2012. soft and aerated drinks. [Online] Available at: http://mofpi.nic.in/ContentPage.aspx?CategoryId=548 [Accessed 03 August 2012]. OECD, 2006. Sample Design. [Online] Available at: http://stats.oecd.org/glossary/detail.asp?ID=3852 [Accessed 8 August 2012]. PEPSICO INDIA, 2011. CORPORATE CITIZENSHIP REPORT 2010-2011. STATEMENT FROM INDRA NOOYI, 13(13), p. 02. PepsiCo India, 2012. Brands. [Online] Available at: http://pepsicoindia.co.in/Company/about-Pepsico.html) [Accessed 05 August 2012]. PEPSICO INDIA, 2012. ENVIRONMENTAL SUSTAINABILITY. [Online] Available at: http://pepsicoindia.co.in/purpose/environmental-sustainability/partnership-withfarmers.html [Accessed 12 AUGUST 2012]. PEPSICO INDIA, 2012. ENVIRONMENTAL SUSTAINABILITY. [Online] Available at: http://pepsicoindia.co.in/purpose/environmental-sustainability/replenishingwater.html [Accessed 10 AUGUST 2012]. PEPSICO INDIA, 2012. PARTNERS IN CSR. [Online] Available at: http://pepsicoindia.co.in/purpose/partnersincsr.html [Accessed 10 AUGUST 2012]. PepsiCo, 2012. Our Global Business. PepsiCo Annual report 2011, XIII(13), p. 10. PepsiCo, 2012. Our vision and mission. [Online] Available at: http://www.pepsico.com/Company/Our-Mission-and-Vision.html [Accessed 06 August 2012]. PEPSICOINDIA, 2012. WASTE TO WEALTH. [Online] Available at: http://pepsicoindia.co.in/purpose/environmental-sustainability/waste-to-wealth.html [Accessed 27 JULY 2012]. Research and Markets, 2012. Indian Soft Drink Industry. [Online] Available at: http://www.researchandsdmarkets.com/reports/314390/soft_drinks_in_india.pdf [Accessed 27 July 2012]. Resnik, D. B., 2011. What is Ethics in Research and Why is it Impotant. [Online] Available at: http://www.niehs.nih.gov/research/resources/bioethics/whatis/ [Accessed 11 AUGUST 2012]. Saunders M, Lewis,P.& Thornhill, 2003. Research Methods for Business Students. 3 ed. england: s.n.
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Saunders, M., Lewis, P. & Thornhil, A., 2006. Research Onion. In: Research Methods in Business. 4th ed. s.l.:Pearson. Standard, B., 2012. PepsiCo rides on India's growth, 27 April, p. 2. Standard, B., 2012. Non-alcoholic beverage market in India. 28 July, p. 1. TECH2INDIA, 2012. Pepsi introduces social vending machines. [Online] Available at: http://tech2.in.com/news/social-networking/pepsi-introduces-a-social-vendingmachine/215942 [Accessed 09 August 2012]. TRIPLEPUNDIT, 2012. CORPORATE SOCIAL RESPONSIBILITY. [Online] Available at: http://www.triplepundit.com/topic/csr/ [Accessed 12 AUGUST 2012]. Ursula Wheeler, 2010. What is a Pilot Study?. [Online] Available at: http://ursula-wheeler.suite101.com/what-is-a-pilot-study-a266739 [Accessed 11 April 2012].
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9.0 APPENDIX QUESTIONNAIRE
1. NAME
…………………………………………………………
2. GENDER:
[
] MALE
[
] FEMALE
3 .AGE:
[ ] 15-25 [ ] 25-35 [ ] Above 35
4 .STATUS:
[ ] SINGLE
5. OCCUPATION:
[
] MARRIED
[
]
6. EDUCTION LEVEL:
[
] SCHOOL
[
] DEGREE HOLDER
[
] MASTER LEVEL
7. Do you prefer soft drinks daily? [
] yes
[
] No
[
] Never
8. Do you use PepsiCo brand products? [
] Yes [
] No
9. Are you satisfied with PepsiCo Products? [
] satisfied [
] Dissatisfied [
] Neutral
10. Have you ever faced any quality issues of Pepsi? 11. Which kind of Pepsi products you prefer more?
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[
] Cola Beverages [
] Fruit based beverages [
] Snack food products
12. Why do you like Pepsi Products? [
] prize [
] Quality [
] Taste
13. Do you think PepsiCo plants exploiting natural resources of India? [
] Agree
[
] Disagree [
] Neutral
14. Is Pepsi committed to the local community and environment? [
] Yes
[
] No
15. Do you satisfied with PepsiCo’s CSR activities? [
] satisfied [
] Dissatisfied
16. Your valuable comments and recommendation
.................................................................................................................................................................. ............................................................................................................................................................... .................................................................................................................................................................. ............................................................................................................................................................... .................................................................................................................................................................. ............................................................................................................................................................... .......... ...................
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