ANALYSIS OF MARKET SHARE GAPS of Pepsico

ANALYSIS OF MARKET SHARE GAPS
A STUDY CONDUCTED FOR
PEPSICO
A PROJECT REPORT
SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF
REQUIREMENTS OF THE TWO YEARS FULL TIME POST
GRADUATION DIPLOMA IN MANAGEMENT
SUBMITTED BY:
SAROJ KUMAR SINGH

2K81/IB/23
UNDER THE GUIDENCE OF
Prof. MURLI MOHAN
ASIA-PACIFIC INSTITUTE OF MANAGEMENT

3&4 INSTITUTIONAL AREA, JASOLA VIHAR
NEW DELHI
1
DECLARATION
I hereby declare that the project report entitled “ANALYSIS OF MARKET SHARE
GAPS OF PEPSICO” has been prepared by me as part of partially fulfillment of my
diploma degree.
The project report is my bonafide report. The results embodied in this project report have
not been submitted partially to any other university or college for the award of any
diploma degree.
SAROJ KUMAR SINGH

2K81/IB/23
2
ACKNOWLEDGEMENT
I owe deep sense of gratitude to my beloved institution, Asia pacific institute of
management, for molding me into a real management student.
I convey my wholehearted thanks to Mr. Arvind Rathore (Franchise General Manager,
PEPSICO) for enlightened guidance and inspiration during my project work.
It is with profound sense of gratitude that I wish to reveal my overwhelming thanks to
Prof. MURLI MOHAN my project guide who has rendered his valuable counsel and
guidance in completing this project. I would also like to thank all my faculty members
for their valuable suggestions.
Lastly, I put forth my due thanks to my parents, friends and all well wishers for their full
fledged and tremendous support in completing this project work successfully and to all
the respondents who have cooperated for the collection of data.
SAROJ KUMAR SINGH

2K81/IB/23
CONTENTS
3
PARTICULARS
PAGE NO.
1. Introduction to Organisation.………….……………………01-11
2. Review of literature..…………………... ...………………….12-15
3. Research Design………………………………………………16-20
4. Introduction to Data Analysis………………………………..21-62
Swot Analysis…………………………………………..63-67
5. Findings and Recommendation……………….……………..68-72
6. Conclusion………………………………………….. ………...73-74
7. Executive Summary……………….…………………………..75-78
8. Bibliography…………………………………………………... 79.
4
CHAPTER:-01
INTRODUCTION TO
ORGANISATION
5
Pepsi is a soft drink produced and manufactured by PepsiCo. It is sold in many places
such as retail stores, restaurants, schools, cinemas and from vending machines. The drink
was first made in the 1880s by pharmacist Caleb Bradham in New Bern, North Carolina.
The brand was trademarked on June 16, 1903. There have been many Pepsi variants
produced over the years since 1898.
In October 2008, Pepsi announced they would be redesigning its logo and re-branding
many of its products by early 2009. Countries such as Australia and Indontinue to use the
old design on all packaging.
PepsiCo entered India in 1989 and has grown to become one of the country’s leading
food and beverage companies. One of the largest multinational investors in the country,
PepsiCo has established a business which aims to serve the long term dynamic needs of
consumers in India.
PepsiCo India and its partners have invested more than U.S.$1 billion since the company
was established in the country. PepsiCo provides direct and indirect employment to
150,000 people including suppliers and distributors.
PepsiCo nourishes consumers with a range of products from treats to healthy eats, that
deliver joy as well as nutrition and always, good taste. PepsiCo India’s expansive
portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain
Dew,
6
in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages
such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana100% fruit
juices, and juice based drinks – Tropicana Nectars, Tropicana Twister and Slice. Local
brands – Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range
of brands.
PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty snack market and
all Frito Lay products are free of trans-fat and MSG. It manufactures Lay’s Potato Chips,
Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and
Lehar brands. The company’s high fibre breakfast cereal, Quaker Oats, and low fat and
roasted snack options enhance the healthful choices available to consumers. Frito Lay’s
core products, Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to
significantly reduce saturated fats and all of its products contain voluntary nutritional
labeling on their packets.
The group has built an expansive beverage and foods business. To support its operations,
PepsiCo has 43 bottling plants in India, of which 15 are company owned and 28 are
franchisee owned. In addition to this, PepsiCo’s Frito Lay foods division has 3 state-of-
the-art plants. PepsiCo’s business is based on its sustainability vision of making
tomorrow better than today. PepsiCo’s commitment to living by this vision every day is
visible in its contribution to the country, consumers and farmers.
7
MISSION STATEMENT:
"To be the world's premier consumer products company focused on convenience foods
and beverages. We seek to produce healthy financial rewards to investors as we provide
opportunities for growth and enrichment to our employees, our business partners and the
communities in which we operate. And in everything we do, we strive for honesty,
fairness and integrity."
VISION:
"PepsiCo's responsibility is to continually improve all aspects of the world in which we
operate – environment, social, economic – creating a better tomorrow than today."
Our vision is put into action through programs and a focus on environmental
stewardship, activities to benefit society, and a commitment to build shareholder value by
making PepsiCo a truly sustainable company
THE ORGANISATIONAL VALUE OF PEPSI:
8
PepsiCo values reflect its aspirations - the kind of company they want Pepsico to be.
Pepsi express their values in the form of a commitment. Pepsi’s commitment is :
Sustained Growth is fundamental to motivating and measuring our success. Our quest
for sustained growth stimulates innovation, places a value on results, and helps us
understand whether today's actions will contribute to our future. It is about growth of
people and company performance. It prioritizes making a difference and getting things
done.
Empowered People means we have the freedom to act and think in ways that we feel
will get the job done, while being consistent with the processes that ensure proper
governance and being mindful of the rest of the company's needs.
Responsibility and Trust form the foundation for healthy growth. It's about earning the
confidence that other people place in us as individuals and as a company. Our
responsibility means we take personal and corporate ownership for all we do, to be good
stewards of the resources entrusted to us. We build trust between ourselves and others by
walking the talk and being committed to succeeding together.
9
PRODUCTS
• Yedigun
Pepsi Mountain Dew
• Shani
• Pepsi • Mountain Dew • Fiesta
• Caffeine Free Pepsi • Diet Mountain Dew • D&G (License)
• Diet Pepsi • Caffeine Free • Mandarin (License)
• Caffeine Free Diet Mountain Dew • Radical Fruit
Pepsi • Mountain Dew Code
• Diet Pepsi Max Red
• Jazz Diet Pepsi • Diet Mountain Dew Lipton (Partnership)
• Diet Pepsi Lime Code Red

• Lipton Brisk
• Diet Pepsi Vanilla • Mountain Dew
• Pepsi Wild Cherry LiveWire • Lipton Iced Tea
• Diet Pepsi Wild • Mountain Dew Lipton Pure Leaf
Cherry Voltage
• Pepsi ONE
10
Sierra Mist AMP Energy
• Sierra Mist • AMP Energy
• Diet Sierra Mist • AMP Energy Sugar
• Sierra Mist Free
Cranberry Splash • AMP Energy
• Sierra Mist Free Overdrive
Cranberry Splash • AMP Energy Relaunch
• AMP Energy
SoBe
Tropicana
• SoBe juice drinks,

• Tropicana lemonade
dairy, and teas
and punches
• SoBe Lean diet juice
• Tropicana Light
drinks, dairy, and teas
lemonade and punches
• SoBe Life Water
• Tropicana Twister
• SoBe Adrenaline Rush
sodas
Aquafina
Ocean Spray (License)
• Aquafina
• Ocean Spray juices
• Aquafina FlavorSplash
11
• Ocean Spray juice • Aquafina Sparkling
drinks
Starbucks (Partnership)
More
• Frappuccino ready-to-
• Ethos Water drink coffee
(License) • Starbucks Doubleshot
• Manzanita Sol • Starbucks Doubleshot
• Slice Energy
• FruitWorks juice
• Starbucks Iced Coffee
drinks
• Mirinda
Directors
Shona Brown
Ian M. Cook
Dina Dublon
Victor J. Dzau
Ray L. Hunt
Alberto Ilarquen
Arthur C. Martinez
12
Indra K Nooyi
Sharon Percy Rockefeller
James J Schiro
Lloyed Trotter
Daniel Vasella
PARTNERS
PepsiCo partners with The Energy and Resources Institute (TERI) to implement
watershed management projects in Neelamangala and Uttaranchal
PepsiCo partners with the International Labor Organisation on creating and
implementing its HIV/AIDS Workplace Policy.
Partnership with Alternative Development Initiatives (ADI) on Watershed
Management Projects in Kerala, Punjab and Maharashtra
PepsiCo Partnership with Exnora in its award winning Waste To Wealth initiative
PepsiCo partners with CSMCRI for sustainable livelihood seaweed farming
project in coastal Tamil Nadu
Partnership with CAP Foundation to train and provide alternate livelihood
13
options for Tsunami affected communities in AP and Tamil Nadu.
PepsiCo partners with Project Healing Touch to provide ex-servicemen with
sustainable livelihoods.
PepsiCo partners with Swashrit Society to promote active and healthy lifestyles
among kids through the Get Active programme
FRANCHISE OF PEPSI IN DELHI:
Jai Drinks Pvt Ltd
E-32 Phase Ii, 110020, U.T
p: 26386472
14
It is mainly responsible for providing the service in the South and south-West part of
delhi.
PEARL DRINKS limited
K G MARG CONNAUGHT PLACE, NEW DELHI 110001, NEW DELHI
p: 23716782
The Pearl Drinks Limited provides services to the areas, which belongs to North and
North- west delhi.
Trans Yamuna
The Trans Yamuna covers mainly covers the Eastern and North-Eastern part of Delhi, in
these areas maximum number of distributor operations takes place.
15
CHAPTER 02
LITERATURE REVIEW
MARKETING:
Marketing is an integrated communications-based process through which individuals and
communities discover that existing and newly-identified needs and wants may be
satisfied by the products and services of others.
16
Marketing is defined by the American Marketing Association as the activity, set of
institutions, and processes for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large.The term
developed from the original meaning which referred literally to going to market, as in
shopping, or going to a market to buy or sell goods or services.
The Chartered Institute of Marketing, which is the world's largest marketing body,
defines marketing as "The management process responsible for identifying, anticipating
and satisfying customer requirements profitably.
Marketing practice tended to be seen as a creative industry in the past, which included
advertising, distribution and selling. However, because marketing makes extensive use of
social sciences, psychology, sociology, mathematics, economics, anthropology and
neuroscience, the profession is now widely recognised a science, allowing numerous
universities to offer Master-of-Science (MSc) programmes. The overall process starts
with marketing research and goes through market segmentation, business planning and
execution, ending with pre and post-sales promotional activities. It is also related to many
of the creative arts. The marketing literature is also infamous for re-inventing itself and
its vocabulary according to the times and the culture.
MARKET SHARE:
Market share, in strategic management and marketing is, according to Carlton O'Neal,
the percentage or proportion of the total available market or market segment that is being
serviced by a company. It can be expressed as a company's sales revenue (from that
17
market) divided by the total sales revenue available in that market. It can also be
expressed as a company's unit sales volume (in a market) divided by the total volume of
units sold in that market. It is generally necessary to commission market research
(generally desk/secondary research, although sometimes primary research) to estimate
the total market size and a company's market share.
MARKET SHARE ANALYSIS:
Market share analysis is an important part of market analysis and
indicates how well a firm is doing in the marketplace compared to its
competitors. It is a part of marketing research process.
Stages of marketing research process
Problem Definition
The first step in any marketing research project is to define the problem. In defining the
problem, the researcher should take into account the purpose of the study, the relevant
background information, what information is needed, and how it will be used in decision
making. Problem definition involves discussion with the decision makers, interviews
with industry experts, analysis of secondary data, and, perhaps, some qualitative
research, such
as focus groups. Once the problem has been precisely defined, the research can be
designed and conducted properly.
Development of an Approach to the Problem
18
Development of an approach to the problem includes formulating an objective or
theoretical framework, analytical models, research questions, hypotheses, and identifying
characteristics or factors that can influence the research design. This process is guided by
discussions with management and industry experts, case studies and simulations, analysis
of secondary data, qualitative research and pragmatic considerations.
Data Preparation and Analysis
Data preparation includes the editing, coding, transcription, and verification of data. Each
questionnaire or observation form is inspected, or edited, and, if necessary, corrected.
Number or letter codes are assigned to represent each response to each question in the
questionnaire. The data from the questionnaires are transcribed or key-punched on to
magnetic tape, or disks or input directly into the computer. Verification ensures that the
data from the original questionnaires have been accurately transcribed, while data
analysis, guided by the plan of data analysis, gives meaning to the data that have been
collected. Univariate techniques are used for analyzing data when there is a single
measurement of each element or unit in the sample, or, if there are several measurements
of each element, each RCH variable is analyzed in isolation. On the other hand,
multivariate techniques are used for analyzing data when there are two or more
measurements on each element and the variables are analyzed simultaneously
19
CHAPTER 03
RESEARCH DESIGN
20
INTRODUCTION TO THE STUDY:
This project has been done on Market Share Analysis of PEPSICO. In this project the
system and procedure of market share analysis has been presented in detail.
Title of the study: A project is complete study on market share analysis with reference to
“PEPSICO”.
STATEMENT OF THE PROBLEM:
In this period of globalization, where the whole world has become like a small market, it
is essential that organizations effort continuously to invest on time, money and skills of
their personnel to be able to meet customer’s demands in terms of qualitatively products.
crash by any organization to implement this will only bring death of such organization,
this has been witnessed in the recent time. Surely, amongst others the prime cause may to
have incomplete personnel incapable of giving qualitative output. Therefore finding out
the position of product to get the knowledge of current scenario and react to the findings
accordingly is the only way to remain in business.
21
OBJECTIVES OF STUDY:
The main purposes of study are to:
1) To gain complete information about the product from market.
2) To analyze the market share gaps of product.
3) To know the customer feedback about product.
4) To summarize the findings and offer suggestions.
TOOLS AND TECHNIQUES
For this report two kinds of data have been used: Primary data, Secondary data.
Primary data: It was collected through questionnaires further this data are processed and
tabulated using graphs. The tables were analyzed and the findings have been drawn
accordingly.
22
Secondary data: The secondary data refers to information provided to the trainees about
outlets, which worked as a guideline for survey. The secondary data collected for this
market research from company profile and internet.
SAMPLE TECHNIQUE
Sample size: A sample of 900 outlets has been taken who participated in the research
procedure.
Sample procedure: The samples were taken on the basis of guidelines provided by
PEPSICO.
Search instruments: A questionnaire was used for the survey. The questionnaire was only
close ended in order to extract only the required data from the analysis.
Plan of analysis: For the analysis of data in this study the tools used are percentage,
average and graphs. The feedback of customers is also used.
LIMITATION OF THE STUDY:
The limitation of this report is as follows:-
23
1. As the project is prepared for academic purpose it suffers for the limitation of the
time and due to which an analytical study into all the strategies adopted by the
organization was not possible.
2. There was no frequent availability of customers as they were busy within day to
day work.
CHAPTER SCHEME
Chapter 1. Introduction to marketing.
Introduction to Market Share Analysis.
Chapter 2. Research methodology deals with the various sub chapters like introduction
to the study statement of problem objectives of the study methodology, sampling
technique research instrument plan of analysis and limitation of the study.
Chapter 3. Company profile deals with the origin growth
Chapter 4. Deals with the details of the data analysis from the questionnaire filled by the
respondents.
Chapter 5. This chapter includes the survey of the findings.
24
Suggestion and conclusion.
CHAPTER- 4
INTRODUCTION TO
DATA ANALYSIS
25
This chapter deals with analysis and interpretation of all the data collected for PEPSICO,
by means of questionnaire for this research.
All the data collected is primary data, which was collected from hundreds of respondents
by different customers in three different zones of pepsico in Delhi. named as JAI
DRINKS PRIVATE LIMITED, PEARL DRINKS LIMITED AND TRANS YAMUNA.
All the data collected are tabulated for better understanding and also interpretation of
each table has given below.
Interpretation and inferences drawn for every question is summarize and also is presented
with help of bar diagram for understanding collected data in glance.
26
Areas covered in Franchise zones
Jai Drinks Pvt Ltd
-JAMIA NAGAR
-CHIRAG DELHI
-BHARAT NAGAR
-ALAKNANDA
-GAUTAM NAGAR
Peral drinks limited
-AZADPUR
-ASHOK VIHAR PHASE 1
27
-WAZIRPUR
Trans Yamuna
-JAFFRABAAD
-MAUJPUR
ZONE- JDPL
AREA- JAMIA NAGAR, CHIRAG DELHI, GAUTAM NAGAR, ALAKNANDA
1] TABLE SHOWING DISTRIBUTION OF OULETS ACCORDING
TO MARKET SHARE OF PEPSI IN PARTICULAR OUTLET.
MARKET SHARE NUMBER OF OUTLETS % IN MARKET

0% 8 4
1-30% 12 7
30-50% 61 34
MORE THAN 50% 99 55
28
4%
7%
0%
1-30%
55% 34% 30-50%
MORE THAN 50%
100 99
90
80
70
61
60
50
40
30
20
12
10 8
0
0% 1-30% 30-50% MORE
THAN50%
29
INTERPRETATION: In the above table 8 outlets fall under 0% category, 12 in 1-30%,
61 in 30-50% and the highest number 99 lies in more than 50% share outlets.
INFRENCES: From the above information majority 55% of outlets falls in more than
50% share outlets, where if we take 1-50% combine it also covers 73 outlets, there are
4% oulets are there which is having monopoly of coca-cola.
2] TABLE SHOWING OVERALL MARKET SHARE OF PEPSI AND COCA-
COLA
PRODUCT MARKET SHARE
PEPSI 53.6
COCA-COLA 46.4
30
46.4 PEPSI
53.6 COCA-COLA
INTERPRETATION: From the above Information it can be understood that 53.6% of
total market share of cold drinks market belongs to Pepsi and rest lies with coca-cola.
INFRENCES: So, it is very clear that market share of Pepsi is quite high in comparison
of coca-cola and the coca-cola is also providing healthy competition with almost 46% of
market share of cold drinks market.
31
3] TABLE SHOWING NUMBER OF COOLERS USED IN THE MARKET.
PRODUCT NUMBER
PEPSI COOLERS 73
COCA-COLA COOLERS 41
OWN COOLERS 86
37%
42% PEPSI COOLERS
COCA-COLA COOLERS
OWN COOLERS
21%
32
90 86
80
73
70
60
50
41
40
30
20
10
0
PEPSI COOLERS COCA-COLA OWNCOOLERS
COOLERS
INTERPRETATION: From the above Information it can be understood that 37% of
total market uses Pepsi coolers, 21% uses coca-cola coolers and rest uses own coolers.
INFRENCES: Since 42% of cooler market is still vacant and waiting for Pepsi or Coca-
cola to grab it as soon as possible, this 42% creates a very big opportunity to increase the
market share by repenetrating the market with coolers.
33
4] TABLE SHOWING THE CHANNEL TYPE SHARE IN THE MARKET.
CHANNEL TYPE NUMBER

GROCERY 120
CONVENIENCE 18
EATRY 40
22%
GROCERY
CONVENIENCE
10%
EATRY
68%
34
120 120
100
80
60
40
40
20 18
0
GROCERY CONVENIENCE EATRY
INTERPRETATION: In the above information its visible that there are 120 outlets
work as grocery, 18 outlets work as convenience and 40 eatry.
INFRENCES: The majority is grocery with 68% share of total market channel type and
the rest is enjoyed by convenience and eatry, which shows the market, is high populated
due to residential area.
35
5] TABLE SHOWING MONTHLY AVERAGE SALES OF PEPSI AND COCA-
COLA IN CARETS IN MARKET.
MONTHLY AVG. SALE PEPSI COCA-COLA

0 6 12
1-30 87 85
30-70 40 42
70-100 15 15
MORE THAN 100 32 26
90 87 85
80
70
60
50
40 40 42 PEPSI
32 COCA-COLA
30 26
20 15 15
12
10 6
0
0 1--30 30-70 70-100 MORE
THAN 100
INTERPRETATION: From the above Information it can be understood that PEPSI has
more monthly average sale.
INFRENCES: There are less outlets in compare of coca-cola which has 0 monthly
average sales, Pepsi has more shops which have monthly turnover of 1-30 carats of
Pepsi, but in the category 30-70carets of monthly average sale Pepsi is lagging behind in
comparison of coke. In more than 70 category Pepsi is still dominating.
36
6] TABLE SHOWING MODE OF SERVICE OF PEPSI AND COCA COLA
MODE OF SERVICE NO. OF PEPSI OUTLET NO. OF COCA-COLA OUTLET

DIRECT 56 75
DISTRBUTOR 80 58
WHOLESALER 43 47
PRESELL 01 00
80
80 75
70
60 56 58
50 47
43
40 PEPSI
30 COCA-COLA
20
10
1 0
0
DIRECT DISTRBUTOR WHOLESALER PRESELL
37
1%
24%
31%
DIRECT
DISTRBUTOR
WHOLESALER
PRESELL
44%
PIE CHART SHOWING PERCENTAGE OF MODE OF SERVICE OF PEPSI
0%
26%
DIRECT
42%
DISTRBUTOR
WHOLESALER
PRESELL
32%
PIE CHART SHOWING PERCENTAGE OF –COLA MODE OF SERVICE OF

COCA-COLA.
38
INTERPRETATION: From the above Information the mode of service of Pepsi and
coca-cola is clear. The Pepsi covers it maximum operation through distributor, where
coca-cola covers through direct operation through its tata 407.
INFRENCES: The 44% outlets are covered through distributors, direct Pepsi covers
31% and 24% through wholesaler and just 1% with the help of presell service. Where
Coca-cola covers 42% directly, 32% through distributor, and rest through its various
wholesalers. So Coca-cola believes more on direct service through company to
customers.
7] TABLE SHOWING SERVICE FREQUENCY OF PEPSI AND COCA-COLA:
SERVICE FREQUENCY NO. OF OUTLETS (PEPSI) NO. OF OUTLETS

(COCA-COLA)
DAILY 136 148
MORE THAN 3 TIMES 3 13
LESS THAN 3 TIMES 41 19
160 148
140 136
120
100
80
PEPSI
60
41 COCA-COLA
40
20 13 19
3
0
DAILY MORE THAN 3 LESS THAN 3
TIMES TIMES
39
INTERPRETATION: The above table shows the service frequency of Pepsi and Coca-
cola by various means of transportation.
INFRENCES: In both the cases maximum outlets gets daily service but coca-cola
covers more number of outlets, it also provides more than 3 times service in a week in
more number of outlets in comparison of Pepsi, so it can be easily said that coca-cola has
a better service frequency than Pepsi.
8] TABLE SHOWING THE VARIOUS FEEDBACK OF CUSTOMERS

REGARDING THE SEVICES PROVIDED BY PEPSI:
FEEDBACK NO. OF OULET

SATISFIED 83
SERVICE ISSUE 27
SCHEME ISSUE 70
39%
SATISFIED
46%
SERVICE ISSUE
SCHEMEISSUE
15%
40
90
83
80
70
70
60
50
40
PEPSI
30 27
20
10
0
SATISFIED SERVICE SCHEME
ISSUE ISSUE
INTERPRETATION: The above table shows the satisfaction level of customer of
Pepsi, The customer feedback is categorized in three different area, the first area directly
belongs to the group of satisfied customer, in second category customer with service
issue falls and in the last category customers with scheme issue comes.
INFRENCES: According to the pie chart 46% customers are satisfied and says that they
are pleased with the service provided by the Pepsi, 15% customers are having service
issue and rest all falls in scheme issue. It directly reflects the better service and better
market share of Pepsi
ZONE- PDL
41
AREA- AZADPUR, ASHOK VIHAR AND WAJIRPUR

0% 132 26
1-30% 81 16
30-50% 128 26
MORE THAN 50% 159 32
26%
32%
0%
1-30%
30-50%
MORE THAN 50%
16%
26%
42
160 159
140 132 128

120
100
81
80
60
40
20
0
0% 1-30% 30-50% MORE
THAN 50%
INTERPRETATION: In the above table 132 outlets fall under 0% category, 81 in 1-
30%, 128 in 30-50% and the highest number 159 lies in more than 50% share outlets.
INFRENCES: From the above information majority 32% of outlets falls in more than
50% share outlets, where if we take 1-50% combine it also covers 42% outlets, there are
26% oulets are there which is having monopoly of coca-cola.
43
COLA
PEPSI 36.2
COCA-COLA 63.8
36.2
PEPSI
COCA-COLA
63.8
44
total market share of cold drinks market in belongs to Pepsi and rest lies with coca-cola.
INFRENCES: So, it is very clear that market share of Coca-cola is quite high in
comparison of Pepsi and the Pepsi is also providing healthy competition with almost
36% of market share of cold drinks market.
PRODUCT NUMBER
PEPSI COOLERS 87
OWN COOLERS 347
16%
PEPSI COOLERS
22% COCA-COLA COOLERS
OWN COOLERS
62%
45
350 347
300
250
200
150
122
100 87
50
0
COOLERS
INTERPRETATION: From the above Information it can be understood that only 16%
of total market uses Pepsi coolers, 22% uses coca-cola coolers and rest uses own coolers.
46
CHANNEL TYPE NUMBER

GROCERY 301
CONVENIENCE 147
EATRY 52
10%
GROCERY
29% CONVENIENCE
61% EATRY
47
350
301
300
250
200
147
150
100
52
50
0
48

0 122 22
1-30 253 251
30-70 92 179
70-100 14 32
MORE THAN 100 19 16
300
253251
250
200
179
150
122 PEPSI
100 92 COCA-COLA
50 32
22 14 19 16
0
0 1--30 30-70 70-100 MORE
THAN 100
less monthly average sale.
INFRENCES: There are more outlets in compare of coca-cola which has 0 monthly
comparison of coke. In more than 70 category Pepsi is again lagging behind.
49

DIRECT 120 181
DISTRBUTOR 188 218
WHOLESALER 87 82
PRESELL 01 00
250
218
200
188
181
150
120 PEPSI
100 COCA-COLA
8782
50
0 1 0
DIRECT WHOLESALER
50
0%
22%
30%
DIRECT
DISTRBUTOR
WHOLESALER
PRESELL
48%
0%
17%
38% DIRECT
DISTRBUTOR
WHOLESALER
PRESELL
45%

COCA-COLA.
51
coca-cola covers through direct operation through its tata 407.
INFRENCES: The 48% outlets are covered through distributors, Pepsi covers direct
30% and 22% through wholesaler and just 0% with the help of presell service. Where
Coca-cola covers 38% directly, 45% through distributor, and rest through its various
wholesalers.

(COCA-COLA)
DAILY 262 396
400 396
350
300
262
250 233
200
PEPSI
150
COCA-COLA
100
55 49
50
5
0
DAILY MORE THAN 3 LESSTHAN 3
TIMES TIMES
52
INFRENCES: In both the cases maximum outlets gets daily service but coca-cola
covers more number of outlets, it also provides more than 3 times service in a week in
more number of outlets in comparison of Pepsi, so it can be easily said that coca-cola has
a better service frequency than Pepsi.
8] TABLE SHOWING THE VARIOUS FEEDBACK OF CUSTOMERS


SATISFIED 216
SERVICE ISSUE 276
SCHEME ISSUE 08
2%
43% SATISFIED
SERVICE ISSUE
55% SCHEME ISSUE
53
300
276
250
216
200
150
PEPSI
100
50
8
0
ISSUE ISSUE
issue and rest all falls in scheme issue. It directly reflects the poor service and poor
market share of Pepsi.
54
ZONE- TY
AREA- MAUJPUR AND JAFFRABAAD

0% 36 17
1-30% 26 12
30-50% 86 40
MORE THAN 50% 67 31
17%
31%
0%
12% 1-30%
30-50%
MORE THAN 50%
40%
55
90 86
80
70 67
60
50
40 36
30 26
20
10
0
0% 1-30% 30-50% MORE
THAN 50%
INTERPRETATION: In the above table 36 outlets fall under 0% category, 26 in 1-
30%, 86 in 30-50% and the highest number 67 lies in more than 50% share outlets.
INFRENCES: From the above information 31% of outlets falls in more than 50% share
outlets, where if we take 1-50% combine it also covers 52% outlets, there are 17% oulets
are there which is having monopoly of coca-cola.
56
COLA
PEPSI 41.6
COCA-COLA 58.4
41.6
PEPSI
COCA-COLA
58.4
57
total market share of cold drinks market in belongs to Pepsi and rest lies with coca-cola.
INFRENCES: So, it is very clear that market share of Coca-cola is quite high in
comparison of Pepsi and the Pepsi is also providing healthy competition with almost
41.6% of market share of cold drinks market.
PRODUCT NUMBER
PEPSI COOLERS 53
OWN COOLERS 135
23%
PEPSI COOLERS
COCA-COLA COOLERS
59% OWN COOLERS
18%
58
140 135
120
100
80
60 53
41
40
20
0
COOLERS
INTERPRETATION: From the above Information it can be understood that only 23%
of total market uses Pepsi coolers, 18% uses coca-cola coolers and rest uses own coolers.
59
CHANNEL TYPE NUMBER

GROCERY 111
CONVENIENCE 82
EATRY 22
10%
GROCERY
52% CONVENIENCE
38% EATRY
60
120
111
100
82
80
60
40
22
20
0
61

0 30 07
1-30 69 45
30-70 87 124
70-100 26 33
MORE THAN 100 03 06
140
124
120
100
87
80
69
60 PEPSI
45 COCA-COLA
40 33
30 26
20
7 3 6
0
0 1--30 30-70 70-100 MORE
THAN 100
less monthly average sale.
INFRENCES: There are more outlets in compare of coca-cola which has 0 monthly
comparison of coke. In more than 70 category Pepsi is again lagging behind.
62

DIRECT 15 5
DISTRBUTOR 134 5
WHOLESALER 56 205
PRESELL 0 0
250
205
200
150
134
PEPSI
100 COCA-COLA
56
50
15
5 5 0 0
0
DIRECT WHOLESALER
63
0% 7%
27%
DIRECT
DISTRBUTOR
WHOLESALER
PRESELL
66%
0%
2%2%
DIRECT
DISTRBUTOR
WHOLESALER
PRESELL
96%

COCA-COLA.
64
coca-cola covers through wholesalers.
INFRENCES: The 66% outlets are covered through distributors, Pepsi covers direct 7%
and 27% through wholesaler and just 0% with the help of presell service. Where Coca-
cola covers 96% through wholesalers.

(COCA-COLA)
DAILY 146 1
250
214
200
150 146
PEPSI
100
69 COCA-COLA
50
1 0 0
0
DAILY MORE THAN 3 LESSTHAN 3
TIMES TIMES
65
INFRENCES: In these areas Pepsi has daily visit in maximum number of shops, where
as coca-cola does not provide daily service at all.
8] TABLE SHOWING THE VARIOUS FEEDBACKS OF CUSTOMERS


SATISFIED 174
SERVICE ISSUE 41
SCHEME ISSUE 0
0%
19%
SATISFIED
SERVICE ISSUE
SCHEME ISSUE
81%
66
180 174
160
140
120
100
80
PEPSI
60
41
40
20
0
0
ISSUE ISSUE
issue. It directly reflects the good service and good market share of Pepsi.
67
SWOT ANALYSIS
68
STRENGTHS
 COOLERS IN JDPL & TY- There are more coolers of Pepsi in the area of JDPL
and TRANS YAMUNA. Which provides a very better chance to enhance the
market share of Pepsi in these areas.
 > 50% - MAXIMUM NUMBER- In all areas Pepsi market share is all most 50%
or more than that, which shows that Pepsi is giving very tough competition to its
competitors.
 PRESELL METHOD- It is one of the important tool that Pepsi is having for
increasing its market share, this system is beneficiary for both customer and
business, it helps business to provide effective delivery and less time consuming,
where as it provides long hours for small vendors to arrange cash.
 AQUAFINA- This is the worlds Largest selling water, which gives a strong
backup to other beverages of Pepsico.
 PRICE DIFFERENCE- The price difference between 500ml pet bottles of Pepsi
provides a strong edge to Pepsico.
69
WEAKNESSES
 DAMAGED COOLERS- Maximum coolers used by retailers which belong to
Pepsi are very old and not in the Proper condition, Which create a sense of
negligence in the mind of retailers, due to which retailers wants to switch to coca-
cola.
 FLAVOUR- According to customers Pepsi does not have flavors like coca-cola.
 NO CUSTOMER RELATIONSHIP MANAGEMENT- Customers highly
believes that there is no customer relationship management in Pepsi.
 CARET DESIGN- The caret design of Pepsi does not protect the whole bottle
like coca-cola caret, which results in damaged bottles and increased number of
replacements
 DIFFERENCE IN COMPANY’S RATE AND WHOLESALER’S RATE- This is
a common problem in any FMCG sector, but in the case of Pepsi the rates differs
more
 NO FIX SCHEME- Pepsi company does not provides a fix scheme in a single
market, due to which they are loosing customer loyalty towards Pepsi
 NO SERVICE IN INNER STREATS- Pepsi does not provides service in inner
street like coca-cola, which is one of the important reason of fall in market share
of Pepsi.
70
OPPORTUNITIES
 OUTLETS USING OWN COOLERS- .There is a big chance for Pepsi to reenter
market with coolers to increase the market share as more than 50% outlets are
using their own coolers.
 7UP NIMBOOZ- It is the one of the highly demanded cold drinks, which has
capacity to enhance the market share of Pepsi by double.
 ROADSIDE MOBILE BOOTH- Though Pepsi has mobile booths but they should
increase the numbers, which will help the Pepsi a lot, in increasing its market
share.
71
THREATS
 COKE PENETRATION IN MARKET WITH COOLERS- Coke is penetrating
the market with high number of coolers, by which they can pressurized the
retailers for not keeping Pepsi product.
 SCARCITY OF PRODUCT- There is a high scarcity of product in warehouse of
Pepsi , which always creates a image of vanishing company in the mind of
retailers.
 SMALL AGENCIES- coca-cola is doing tie-ups with small agency, which helps
Coca-cola to reach untouched places.
 DUPLICITY OF PEPSI- Duplicity of Pepsi in comparison coca-cola is very high
and it just only spoiling the name of Pepsi.
 IMPURE DISTRIBUTORS- The Pepsi have very few number of pure distributor
due to large number of demand of limca in the Delhi market.
72
CHAPTER- 5
SUMMARY , FINDINGS
& RECOMMENDATIONS
73
This Market survey has been done to find out the current market scenario of Pepsi, which
considers the market share of Pepsi, mode of service, frequency of service, share of Pepsi
in particular shop and the most important from the Business point of view is the
satisfaction level of customer. The survey provides very much important information,
which is necessary to know for a firm to sustain in cut throat competition.
• The data was collected from the RETAILERS PRESENT IN MARKET. Data is
collected with the help of questionnaire.
• The respondent are basically the owner of the shop or his/her relative, who was
currently handling the shop at the time of survey
• The survey reports, which are provided to the organization by the trainees, will
help the Pepsi to improve their market share in the beverages market.
• According to the survey Pepsi has decreasing market share.
• The service of Pepsi is very poor in several areas and the company is neglecting
the customer relationship management, due to which retailers are switching to
other brands.
74
• According to the survey Pepsi does not have flavors like coca-cola, especially
there is no drinks available in Pepsi which can compete with limca and thums up.
• Pepsi is not capable to meet the demand, as the demand of 7up nimbooz is very
high in the market which is capable of increasing the market share of Pepsi, but
Pepsi fails to meet the demand.
• The coolers available in the market, which belongs to Pepsi are very old and
damaged on which Pepsi does not pay any kind of attention, which helps coca-
cola to convert the outlets from Pepsi to Coca-cola.
• In maximum areas Pepsi does not provide daily servicing, The
Company’s vehicle visits the area 5 times in a month. The coca-cola
gets the advantage of this negligence and try to cover the area more
than Pepsi.
RECOMMENDATION
75
 STOP DUPLICITY- The very first thing on which Pepsi should work upon is it
should try to stop duplicity, because it does not only decreases the company’s
sales it also spoils the health of customers and Pepsi gets blamed for the damage.
 BETTER CUSTOMER RELATIONSHIP MANAGEMENT- Pepsi customers
reports about misbehavior and misconduct by company, according to survey
Pepsi does not care about customers, so increase the market share Pepsi have to
strengthen its relation with customers and fix a better customer relationship
management.
 DISTRBUTOR SHOULD HAVE PROPER INFORMATION OF AREA- To
increase the market share Pepsi distributors should have the proper knowledge
about the areas in which they have to work, maximum distributors of Pepsi do not
know there area only.
 PROPER AUDIT OF DISTRIBUTORS- As it is earlier mentioned in the report
that Pepsi have very few pure distributors, impure distributors not only spoils the
Pepsi image but they also increases the market share of coca-cola.
 SOME DIRECT DISCOUNTS TO RETAILERS INSTEADE OF
WHOLESALERS- To increase the market share Pepsi should provide a little
discount to the retailers, who directly takes the product from company. The
retailers which takes Pepsi product from wholesaler gets some discount, but in
76
direct operation retailers do not enjoy any type of discount, which de motivates
the retailers and they start buying from wholesaler who compels retailers to take
coca-cola product also , which directly decreases the market share of Pepsi.
 ONE AREA ONE SCHEME- There should be one scheme in one area, In
different scheme one retailers enjoy heavy scheme and another suffers with low
scheme or do not get only, for good market share there should be one scheme in
one area.
 SPECIAL BRANCH FOR COOLER MAINTENANCE- Though Pepsi has more
coolers in some areas but customers not happy with the performance of coolers;
maximum number of coolers is old and not working properly, so to increase the
market share Pepsi should establish a special branch for cooler maintenance.
 SPECIAL GIFTS FOR RETAILERS WHO BUYS SOME EXTRA- To
encourage the market share Pepsi should encourage customers first; it can be
done through appraisal of customers with some special gifts who buys large
amount.
 COVER THE SINGLE SHOP- As it is mentioned in report that Pepsi is failing to
cover the inner streets shops, so to increase the market share Pepsi have to cover
the single shop present in the market.
77
 NEW SHAPED CARETS- The half covered carets of Pepsi results in damaged
bottles, so Pepsi should also launch a new caret like coca-cola, which helps in
decreasing the number of replacements.
 BRINGING NIMBOOZ AS SOON AS POSSIBLE- According to survey Pepsi
do not have flavors like coca-cola, but the 7up nimbooz is highly demanded in
the market, so proper supply of nimbooz in market will certainly increase the
market share of Pepsi.
CONCLUSION
78
Market research is an important tool in development of an organization. Every
organization conducts market research for development of its share in the market.
The market survey done for Pepsi clears the scenario going in the market.
According to the survey Pepsi is loosing its Market share due to bad service, lack of
stock, bad customer relationship management, old flavors, poor maintenance of
equipments in market which belongs to Pepsi and duplicity.
Though Pepsi is loosing its Market share in some markets but still it has various strengths
which will help Pepsi to recover, there are lots of opportunity available in the market,
which Pepsi should utilize in a proper manner to gain its market share back.
79
Pepsi should work on some sectors like customer relationship management, duplicity,
adding new flavors, availability of stock, proper service and market audit.
80
EXECUTIVE
SUMMARY
Pepsi is a soft drink produced and manufactured by PepsiCo. The drink was first made in
the 1880s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was
trademarked on June 16, 1903. There have been many Pepsi variants produced over the
years since 1898.
PepsiCo entered India in 1989 and has grown to become one of the country’s leading
food and beverage companies. One of the largest multinational investors in the country,
81
PepsiCo has established a business which aims to serve the long term dynamic needs of
consumers in India.
PepsiCo India and its partners have invested more than U.S.$1 billion since the company
was established in the country. PepsiCo provides direct and indirect employment to
150,000 people including suppliers and distributors.PepsiCo India’s expansive portfolio
includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in
addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages
such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana100% fruit
juices, and juice based drinks – Tropicana Nectars, Tropicana Twister and Slice. Local
brands – Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range
of brands.
Directors
Shona Brown Ian M. Cook Dina Dublon Victor J. DzauRay L. Hunt
Alberto Ilarquen ArthurC.Martinez Indra K Nooyi Sharon Percy
RockefellerJames J SchiroLloyed TrotterDaniel Vasella
MARKET SHARE
Market share, in strategic management and marketing is, according to Carlton O'Neal,
the percentage or proportion of the total available market or market segment that is being
82
serviced by a company. It can be expressed as a company's sales revenue (from that
market) divided by the total sales revenue available in that market. It can also be
expressed as a company's unit sales volume (in a market) divided by the total volume of
units sold in that market. It is generally necessary to commission market research to
estimate the total market size and a company's market share.
MARKET SHARE ANALYSIS
Market share analysis is an important part of market analysis and indicates how well a
firm is doing in the marketplace compared to its competitors.
Scope of the Project:
The topic of project is to analyze the market share of Pepsi in different markets.
The data for this Project has been collected through market survey, which comprise of
more than 900 shops situated in different location and different franchise zones of
Pepsico.
After getting the data from survey, report reflects that Pepsi has good market share but it
has also lost its share in various important market. Pepsi has poor delivery of product to
retailers and its coolers which all are present in market are old and not in good condition.
Pepsi has also failed to establish a good relation which is making the retailers to switch to
its competitors.
83
This project throws lights on the current scenario and position of Pepsi and its various
strength and weaknesses, this project also briefs various steps which is very necessary for
Pepsi to take for getting the sustained growth and survival in beverage market.
BIBLIOGRAPHY:
1. www.pepsi.com
2. www.pepsi.co.in
3. www.wikipedia.org
4. Marketing Management by Appanaiah and Readdy.
84

ANALYSIS OF MARKET SHARE GAPS of Pepsico

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ANALYSIS OF MARKET SHARE GAPS

A STUDY CONDUCTED FOR

SAROJ KUMAR SINGH

UNDER THE GUIDENCE OF

Prof. MURLI MOHAN

ASIA-PACIFIC INSTITUTE OF MANAGEMENT

GAPS OF PEPSICO” has been prepared by me as part of partially fulfillment of my

SAROJ KUMAR SINGH

I owe deep sense of gratitude to my beloved institution, Asia pacific institute of

management, for molding me into a real management student.

I convey my wholehearted thanks to Mr. Arvind Rathore (Franchise General Manager,

PEPSICO) for enlightened guidance and inspiration during my project work.

It is with profound sense of gratitude that I wish to reveal my overwhelming thanks to

for their valuable suggestions.

the respondents who have cooperated for the collection of data.

SAROJ KUMAR SINGH

2. Review of literature..…………………... ...………………….12-15

4. Introduction to Data Analysis………………………………..21-62

5. Findings and Recommendation……………….……………..68-72

produced over the years since 1898.

old design on all packaging.

150,000 people including suppliers and distributors.

labeling on their packets.

the-art plants. PepsiCo’s business is based on its sustainability vision of making

visible in its contribution to the country, consumers and farmers.

and beverages. We seek to produce healthy financial rewards to investors as we provide

communities in which we operate. And in everything we do, we strive for honesty,

fairness and integrity."

"PepsiCo's responsibility is to continually improve all aspects of the world in which we

operate – environment, social, economic – creating a better tomorrow than today."

stewardship, activities to benefit society, and a commitment to build shareholder value by

making PepsiCo a truly sustainable company

THE ORGANISATIONAL VALUE OF PEPSI:

Pepsi express their values in the form of a commitment. Pepsi’s commitment is :

governance and being mindful of the rest of the company's needs.

confidence that other people place in us as individuals and as a company. Our

walking the talk and being committed to succeeding together.

• Pepsi • Mountain Dew • Fiesta

• Caffeine Free Pepsi • Diet Mountain Dew • D&G (License)

• Diet Pepsi • Caffeine Free • Mandarin (License)

• Caffeine Free Diet Mountain Dew • Radical Fruit

Pepsi • Mountain Dew Code

• Diet Pepsi Max Red

• Jazz Diet Pepsi • Diet Mountain Dew Lipton (Partnership)

• Diet Pepsi Lime Code Red

• Pepsi Wild Cherry LiveWire • Lipton Iced Tea

• Diet Pepsi Wild • Mountain Dew Lipton Pure Leaf

• Sierra Mist • AMP Energy

• Diet Sierra Mist • AMP Energy Sugar

• Sierra Mist Free

Cranberry Splash • AMP Energy

• Sierra Mist Free Overdrive

Cranberry Splash • AMP Energy Relaunch

• SoBe juice drinks,

• Ethos Water drink coffee

(License) • Starbucks Doubleshot

• Manzanita Sol • Starbucks Doubleshot

Sharon Percy Rockefeller

watershed management projects in Neelamangala and Uttaranchal

PepsiCo partners with the International Labor Organisation on creating and

implementing its HIV/AIDS Workplace Policy.

Partnership with Alternative Development Initiatives (ADI) on Watershed