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PROJECT REPORT

ON

“CONSTRAINTS AND ADHERENCE IN APPLYING


VISICOOLER PLANNOGRAM”

at
Lumbini Beverages Pvt Limited

SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE

DEGREE OF PGDM

Submitted to Submitted by
HR Of Vinay Kumar Mishra
LUMBINI BEVERAGES PGDM-15
Pvt LIMITED, HAJIPUR Roll No: 15043
Session: 2009-11

MAHARISHI INSTITUTE OF MANAGEMENT


Maharishi Nagar, Noida-Dadri Road- 201304
Tel: (0120) 2567603 Fax : 0120-2562652
Website:maharishiinstituteofmanagement.com

Maharishi Institute of Management , Noida


CERTIFICATE

This is to certify that the project work done on “Constraints and Adherence in applying

Visicooler Plannogram” submitted to Maharishi Institute of Management, Noida is in

partial fulfillment of the requirement for the award of Post Graduate Diploma in

Management, is a bonafide work carried out by me at Lumbini Beverages Pvt Limited,

HAJIPUR.

DATE: 21.07.2010 Vinay Kumar Mishra

PGDM -15

Roll No. -15043

Maharishi Institute of Management , Noida


PREFACE

Today the Soft Drinks market is flooded with different brands of soft drink resulting into
fierce competition. The companies have to adopt different marketing strategies in order to
compete in this era to cope in the prevailing situation. In order the companies always strive to
successfully introduce their products in the market with innovative ideas and pioneering strategies.

As soon as the Indian Economy opened up the economy, the cola giants, PEPSI &
COCA-COLA jumped in and then conquered the Indian soft drinks market with their aggressive
and ever changing strategies. They attacked almost all segments of the Indian consumer market
that has now resulted into multiphase expansion of the Indian soft drink market.

The amount of investment made by these companies in this short duration in India speaks
for itself. Both Coke as well as Pepsi has already made an investment of more than US$
700 million alone in the Indian market. Although these cola giants have worldwide presence but
their focus in the Indian market is phenomenal. With its effective and efficient distribution
network it is covering the need of entire population of the country.

With ever changing customer tastes and preferences, it is very difficult to develop an
effective programme. Proper sales promotion strategies should be set up in accordance to the
market location. Top-notch service and regular feedback also helps in keeping up the pace.
.

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ACKNOWLEDGEMENT

It was a great experience to be attached to such a reputed organization, which is a soft

drinks market leader in India. I express my deep sense of gratitude to LUMBINI

BEVERAGES PVT LIMITED, HAJIPUR for providing me an opportunity to complete

my summer training project.

I would like to thank Mr. Sanjay Kumar(Territory Development Manager) as well as

Project guider and Mr. Ajay Kumar (Customer Executive) for their constant support

and providing the itinerary at all stages of the project.

I also offer my sincere gratitude to Prof. Anubhav Tiwary Faculty of Maharishi

Institute of Management, for his useful suggestions, help and support.

With regards,

Vinay Kumar Mishra

PGDM -15

Roll no. - 15043

Session -2009-11

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CONTENTS

PARTICULARS PAGE NO.

⇒ Executive summary 05

⇒ Company Profile 06

⇒ Introduction of PepsiCo 07-08

⇒ Objective of the Study 09

⇒ History of Pepsi 10-11

⇒ Company name and Profile 12-13

⇒ PepsiCo in India 14-17

⇒ PepsiCo distribution system 18-20

⇒ Hierarchy of reporting system 21

⇒ Advertisement 22

⇒ Pepsi Products 27

⇒ Common Terms 28

⇒ Managing sales force 29

⇒ Product positioning 30

⇒ Competitor Analysis 31

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PARTICULARS PAGE NO.

⇒ SWOT analysis 32-33

⇒ PepsiCo Visicooler Plannogram 34-36

⇒ Field Work 37

⇒ Market surfing of PepsiCo Visicooler Plannogram 38-39

⇒ Research methodology 40-41

⇒ Questionnaire 42-45

⇒ Data analysis 46-52

⇒ Findings 53

⇒ Limitations 54

⇒ Suggestions 55

⇒ Conclusion 56

⇒ Bibliography 57

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EXECUTIVE SUMMARY

This project was undertaken for a period of eight weeks at Lumbini Beverages Pvt Ltd for the

partial fulfillment of the PGDM (Post Graduate Diploma in Management) course from Maharishi

Institute of Management, Noida. The objective of the project was to find out what are the constraints

and adherence in applying the “Visicooler plannogram” and how to tackle them. To make retailers

aware about the “PepsiCo Visicooler Plannogram” and ensure that they do follow it regularly to lure

more customers and to ultimately increase its market share and their profit (by 25%). To complete this

project, a survey was conducted on retailers with the help of a questionnaire in the region of Arrah

region. The sample size was decided by Mr. Sanjay Kumar which was of 50 retailers. All retailers

selected in the sample had been asked about “PepsiCo Visicooler Plannogram”. After the survey, it

was observed that “PepsiCo Visicooler Plannogram” has a vital role in increasing sales of the

company and that the same would directly have an impact on the market share of the company. In

Arrah region, a lot of sales promotion activities had been already initiated by the company. Among

these activities, “PepsiCo Visicooler Plannogram” was an absolutely new concept and it had an

innovative way to attract both retailers & customers.

The basic purpose of the sales promotion activities is to enhance the demand of products by

temporarily increasing their value to the purchaser. A major area of improvement that the company

should look at is retailer’s awareness about the new “Visicooler Plannogram”. The same came to

light during the survey, wherein it was observed that most of the retailers do not have proper

information even about retailer centric promotions (POG) being offered by the company. The

Customer Executives, Salesman and Merchandiser of the company need to act as a bridge between

retailers and company. They should be properly equipped by complete knowledge of the schemes so

that they can give proper knowledge to the retailers.

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Type Public (NYSE:PEP)

Founded New York, U.S.(1965)

Headquarters Purchase, New York , U.S.

Area Served Worldwide

Key people Indra Krishnamurthy Nooyi (Chairwoman),


(President) & (CEO)

Industry Food & Non-alcoholic beverage

Products Pepsi, Diet pepsi, Mountain Dew, Mirinda,

7UP, Nimbooz, Aquafina (mineral water),

Gatorade (sports drink), Slice, Tropicana

Products, Lehar (soda water), Quaker Oats,

Frito-Lay, Cheetos, Kurkure, Uncle Chipps

Revenue USD 43.251 Billion (2009)

Employees 2,00000 (2009)

Divisions PepsiCo America (PepsiCo Americas Food,


PepsiCo Americas Beverages ), PepsiCo
International

Website PepsiCo.com

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INTRODUCTION

PepsiCo is a world leader in convenient snacks, foods and beverages, with revenues of

more than $43 billion and over 2,00,000 employees. The company consists of PepsiCo

Americas Foods (PAF), PepsiCo Americas Beverages (PAB) and PepsiCo

International (PI).

PAF includes Frito-Lay North America, Quaker Foods North America and all Latin

America food and snack businesses . PAB includes PepsiCo Beverages North America

and all Latin American beverage businesses. PI includes all PepsiCo businesses in the

United Kingdom, Europe, Asia, Middle East and Africa. PepsiCo brands are available

in nearly 200 countries and generate sales at the retail level of more than $98 billion.

Some of PepsiCo's brand names are more than 100-years-old, but the corporation is

relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and

Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with Quaker Oats

Company, including Gatorade, in 2001.

PepsiCo offers product choices to meet a broad variety of needs and preference - from

fun-for-you items to product choices that contribute to healthier lifestyles.

PepsiCo’s mission is “To be the world's premier consumer products’ company focused

on convenient 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.”

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Shareholders

PepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange in

the United States. The company is also listed on the Chicago and Swiss stock exchanges.

PepsiCo has consistently paid cash dividends since the corporation was founded.

Corporate Citizenship

PepsiCo, as a corporate citizen, have a responsibility to contribute to the quality of life in

the communities. This philosophy is expressed in the sustainability vision which states:

“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.”

The 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.

PepsiCo Headquarters

PepsiCo World Headquarters is located in New York. The seven-building headquarters

complex was designed by Edward Durrell Stone, one of America's foremost architects.

The building occupies 10 acres of a 144-acre complex that includes the Donald M.

Kendall Sculpture Gardens, a world- acclaimed sculpture collection in a garden setting.

The collection of works is focused on major twentieth century art, and features works by

masters such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander Calder, Alberto

Giacometti, Arnaldo Pomodoro and Claes Oldenberg.

OBJECTIVE OF THE STUDY

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PRIMARY OBJECTIVE

⇒ Analysis of the promotional scheme “Visicooler Plannogram” of PepsiCo in Buxar

and Dumrawan.

⇒ To Align and convince retailer on his involvement in driving the ‘Plannogram’

activity.

⇒ To analyze the proper functioning of “PepsiCo Visicooler Plannogram”

⇒ To check out the display of PEPSI products.

⇒ To improve visibility of PEPSI products in the retail outlet where it was

disorganized.

SECONDARY OBJECTIVE

⇒ Impact of ‘Plannogram’ on sales.

⇒ To find out percentage facilities provided by companies e.g. – Rack, Fridge etc.

⇒ To study the factors which are important to attract customers.

⇒ Kind of Promotions adopted by company.

⇒ To know about Salesman’s and Merchandiser’s effectiveness & attitude.

RATIONALE

To hold the market share is major concern of any company while in the case of Soft

Drinks Company the market is between Pepsi and Coke. To grab the market share,

these companies are flooding the market with different types of sales promotion on

daily, weekly, monthly and annually basis. In this project the main purpose of the

study is to find out the effectiveness of “PepsiCo Visicooler Plannogram” and its

complete application for the retention and expansion of the market .

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HISTORY OF PEPSI

Caleb Bradham of New Bern, North Carolina was a pharmacist.

Like many pharmacists at the turn of the century he had a soda

fountain in his drugstore, where he served his customers refreshing

drinks, that he created himself. His most popular beverage was

something he called "Brad's drink" made of carbonated water,

sugar, vanilla, rare oils, pepsin and cola nuts.

"Brad's drink", created in the summer of 1893, was later renamed

Pepsi Cola in 1898 after the pepsin and cola nuts used in the recipe. In 1898, Caleb

Bradham wisely bought the trade name "Pepsi-Cola" for $100 from a competitor from

Newark, New Jersey that had gone broke.

In 1902, he launched the Pepsi-Cola Company in the back room of his pharmacy, and

applied to the U.S. Patent Office for a trademark. At first, he mixed the syrup himself and

sold it exclusively through soda fountains. But soon Caleb recognized that a greater

opportunity existed to bottle Pepsi so that people could drink it anywhere.

The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially registered

with the U.S. Patent Office. That year, Caleb sold 7,968 gallons of syrup, using the theme

line "Exhilarating, Invigorating, Aids Digestion." He also began awarding franchises to

bottle Pepsi to independent investors, whose number grew from just two in 1905, in the

cities of Charlotte and Durham, North Carolina, to 15 the following year, and 40 by 1907.

By the end of 1910, there were Pepsi-Cola franchises in 24 states.

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Pepsi-Cola's first bottling line resulted from some less-

than-sophisticated engineering in the back room of Caleb's

pharmacy. Building a strong franchise system was one of

Caleb's greatest achievements. Local Pepsi-Cola bottlers,

entrepreneurial in spirit and dedicated to the product's

success, provided a sturdy foundation. They were the cornerstone of the Pepsi-Cola

enterprise. By 1907, the new company was selling more than 100,000 gallons of syrup per

year.

Growth was phenomenal, and in 1909 Caleb erected a headquarters so spectacular that the

town of New Bern pictured it on a postcard. Famous racing car driver Barney Old field

endorsed Pepsi in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer

before a race."

After seventeen years of success, Caleb Bradham lost Pepsi Cola. He had gambled on the

fluctuations of sugar prices during W.W.I, believing that sugar prices would continue to

rise but they fell instead leaving Caleb Bradham with an overpriced sugar inventory. Pepsi

Cola went bankrupt in 1923.

In 1931, Pepsi Cola was bought by the Loft Candy Company Loft president, Charles G.

Guth who reformulated the popular soft drink. Guth struggled to make a success of Pepsi

and even offered to sell Pepsi to the Coca-Cola company, who refused to offer a bid.

In 1940, history was made when the first advertising jingle was broadcast nationally. The

jingle was "Nickel Nickel" an advertisement for Pepsi Cola that referred to the price of

Pepsi and the quantity for that price. "Nickel Nickel" became a hit record and was

recorded into fifty-five languages.

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Company’s Name & Profile
3.0 Lumbini beverages Pvt. Ltd.
3.1 Profile of LBPL

LUMBINI BEVERAGES PVT. LTD


Lumbini Beverages pvt. Ltd is franchisee of PepsiCo. India. Lumbini Beverages pvt. Ltd,
a rupees 25crores unit was promoted by the family of KHILANI in the year 1996 with
the proper infrastructure approved by PepsiCo Headquarter and the unit went into
production, subsequent and marketing operation from 1997. Mr. Ravi Khilani is MD of
this company. The plant has 57 production staff 30 executives and 32 team members
within marketing and seller functions during the pick session i.e. between April- July, the
no. of production staff at times is increased to take care of increased production functions.
The unit has capacity of bottling 400-600 bottles per minute or 3000 crates of 24 bottles
on a daily basis, i.e. when production schedule is on through out the day with three shift
production system. The plant follows international quality audit standard for the purpose
of maintaining quality controls in the quality of the product because the quality control
function, by far is the most important criteria for purpose of competing in terms of quality
in the contest of the market competition.
This bottling unit at Hajipur has created a source of employment for a large no. of
population residing in the Bihar and has also come out with quality/treated water
resources, which is now being thought of diverting in to near by agriculture sector as an
ongoing source to facilitate of management. This unit in the year to come will be one of
the most important industrial zones in this part of the country and this reality
manufacturing and marketing unit should be a set of attraction as far as commercial
activity are concerned.

Profile of LBPL
Company land area : 12 acres
Location and authority :EPIP, Industrial Area, Hajipur
Name of Director/Occupier : Mr. Charan Khilani
Name of the MD : Mr. Ravi Khilani
Name of CEO : Mr. G.P Singh
Name of FM : Mr. Dhawan
Name of HR manager : N.K Prasad
Industrial license no. : Regn. No. - H 12475(c)
Factory license no. – 66750/VLI
Date: 16.08.1997
F.P.O. License no. -10607/97
Capacity : 400-600
bottles per minute
Nature of product : Soft drinks, Pepsi, Mirinda

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Soda,Slice, 7up,Nimbooz,Aquafina etc
No. of employees : 200 +150 (max) seasonal labor
Control board : No. 1877. Date – 07.04.1997

BOARD OF DIRECTORS
1. Mr. Charan Khilani (Director)
2. Mr. Ravi Khilani (Managing Director)
3. Mr. Manoj Khilani (Plant Director)
4. Mr. G.P.Singh (CEO)
5. Mr. Sanjay Kumar (TDM, Gaya)

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Vision of PepsiCo

PepsiCo in India

PepsiCo is a world leader in convenience foods and beverages, with 2009 revenues of

more than $43 billion and more than 2,00,000 employees across the world. Its world

renowned brands are available in nearly 200 countries and territories. PepsiCo gained

entry to India in 1989 by creating a joint venture with the Punjab government-owned

Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture

marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed.

PepsiCo bought out its partners and ended the joint venture in 1994. Firstly Pepsi was

banned from import in India, in 1970, for having refused to release the list of its

ingredients and in 1993, the ban was uplifted, with Pepsi arriving on the market shortly

afterwards.

PepsiCo has grown to become the country’s largest selling food and beverage companies.

One of the largest multinational investors in the country, PepsiCo has established a

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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. $700 million since the

company was established in the country in 1989. In India, PepsiCo provides direct

employment to 4,000 people and indirect employment to 60,000 people including

suppliers and distributors.

The group has built an expansive beverage, snack food and exports business and to

support the operations are the group’s 43 bottling plants in India, of which 15 are

company owned and 28 are franchisee. In addition to this, PepsiCo’s Frito Lay

snack division has 3 state of the art plants. PepsiCo’s business is based on its

sustainability vision of making tomorrow better than today. Our commitment to living by

this vision every day is visible in our contribution to our country, consumers, farmers and

our people.

PepsiCo India’s expensive portfolio

• Refreshment beverages

Sports drink

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• 100% Natural Fruit Juices and Juice Based Drinks

Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options– Diet Pepsi

and 7 UP Light, hydrating and nutritional beverages such as Aquafina drinking water,

isotonic sports drinks - Gatorade, and 100% natural fruit juices and juice based drinks –

Tropicana, Tropicana Twister and Slice ,also local brands – Lehar Evervess Soda, Dukes

Lemonade and Mangola complete our diverse spectrum of brand

PepsiCo’s snack food company

PepsiCo’s snack food company, Frito-Lay, is the leader in the branded potato chips

market and was amongst the first companies to eliminate the use of trans fats and MSG

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in its products. It manufactures Lay’s Potato Chips, Cheetos extruded snacks, Uncle

Chipps and traditional namkeen snacks under the Kurkure and Lehar brands. The

company’s high fibre breakfast cereal, Quaker Oats, along with Lehar Lites, low fat and

roasted snack options enhance the choices available to the growing health and wellness

needs of our 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 labelling on their packets.

PepsiCo SKUs

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PEPSICO DISTRIBUTION SYSTEM

Distribution of PepsiCo products mainly starts from bottling plant where company

mixes drink ingredients and fills up cans and bottles with the drink. There are different

channel and mode of distribution. All methods of distribution are same for both COBO

and FOBO

There are two type of bottling plant.

• Company Operated Bottling Operation (COBO)

These are owned and operated by PepsiCo. The Pepsi Bottling Group is the

world's largest bottler of Pepsi-Cola beverages. PBG has the exclusive right to

manufacture, sell and distribute Pepsi-Cola beverages.

• Franchisee Operated Bottling Operation (FOBO)

Franchising refers to the method of practicing and using another person's

philosophy of business. The "franchisor" that is PepsiCo authorizes the proven

methods and trademarks of his business to the "franchisee" . India for a fee and a

percentage of gross monthly sales. Various tangibles and intangibles such as

national or international advertising, training, and other support services are

commonly made available by the franchisor.

Type of distribution :

Direct in this method company supply products via direct routes.

Indirect in which company distributes through distributor.

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Method of Distribution

• Ready sale system

This was the traditional method of distribution in this method supply vehicles will be

loaded to their full capacity and then will move to their pre defined routes and will

deliver goods according to demand of retailers. Salesman carries ready stocks in

vehicles and sells it to retailers on his route.

• Pre sale booking system

A selling methodology in which the selling process has two distinct parts:

• pre-sale order booking

• Delivering the pre-booked order.

• Up to 10% adjustment of order.

• The Pre-sale booking process is a 2-day process. On day 1, the PSR takes

orders and on day 2, the delivery salesman delivers the orders.

Pre sale booking system and delivery process overview

Major components of pre sale booking system

• Logistic executive

• PSR (Booking Agent)

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• Delivery Team

Logistic executive

Logistic executive informs PSR about stock availability, stock outs, schemes,

discounts and other promotional offer.

PSR (Booking Agent)

PSR visits the pre decided route and carries out the order booking on route card

and compile the order sheet.

Delivery Team

After getting order sheet from PSR logistics executive load the required order

and hand over order sheet to delivery team. Then delivery team will deliver

goods according to the order booked.

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THE HIERARCHY OF MARKETING DEPARTMENT

MD
(MANAGING DIRECTOR)

D Sales D Finance
(Director of sales) (Director of Finance)

FM
CEO COO
( Finance Manager)
(Chief executive officer) (Chief operating officer)

Account Manager

VP Sales ‌ GM TRAINING SHIPPING MANAGER PRODUCTION


MANAGER

Account Clerk

TDM

COM. DEPOT MAJOR MARKET

ADC

CE

PSR

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VP Sales
ADVERTISING

Advertising is helpful to the consumer and also to the producers through the

advertisement producers provide information and create awareness about the products

among the consumers. There are different forms of advertisements - TV, radio, poster,

magazines, newspapers, banners, boards etc. Among these, the TV media is the most

popular. The great personalities of India are the brand ambassadors of the soft drinks.

Pepsi-Cola provides advertising, marketing, sales and promotional support to Pepsi-Cola

bottlers and food service customers. This includes some of the world's best-loved and

most-recognized advertising. New advertising and exciting promotions keep Pepsi-Cola

brands young. At the base of every beverage business lays the secret formula of success,

the concentrate. In India Pepsi Food Ltd prepares the concentrate. The plant is located at

village Channo in Punjab. The company manufactures and sells soft drink concentrate to

Pepsi-Cola bottlers. The company also provides fountain beverage products.

⇒ Pepsi has continuously focused on the current teen generation and their

advertisement reflects in every possible way.

⇒ The company changes its advertisement strategy and image to reflect the

target’s interests.

⇒ The advertisement strategy includes cool, hip promos to attract more of the

target audience.

⇒ The advertisement is mostly creative and has different elements like, music,

sports etc.

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PEPSI PRODUCTS

Pepsi makes carbonated soft drinks i.e. cola and non-cola flavor.

CORE BRANDS:

PEPSI

DIET PEPSI

TROPICANA

MIRINDA ORANGE

SLICE

MOUNTAIN DEW

7UP

NIMBOOZ

AQUAFINA

SODA

PACKAGES

Two Types: single serve and multi serve

67 packages sizes and types.

Materials: glass, plastic, cans.

Packages may be returnable or non-returnable.

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COMMON TERMS USED IN PEPSI-COLA SYSTEM

RGB (refilled glass bottles): This term is generally used for the 300ml and 200ml glass
bottles.

Can: A still of aluminum container in which the beverages are packaged for sale.

Crate: A durable box made of durable plastic (thermostatic plastic) which is used to
contain the bottles.

Consumer: Someone who consumes the product.

Cooler: Mechanically refrigerated unit that cools the glass bottles and the pet bottles.

Crown: The steel closure, which seals the bottles.

Customer: A retailer or dealer who sells or serves products directly to the customer.

Route: The sequence of shops and the retail shops that the salesman has to cover every
day in order to complete his job.

Whole Seller: A business entity, which put products from the producers for resale to the
retailers. They have their own defined routes, the salesman from the company are not
allowed to cover them.

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MANAGING THE SALESFORCE

 MANAGING THE SALESFORCE

Sales Management involves managing people and getting results through them. It

involves sales planning that is based on market analysis. It involves setting sales goal and

try to achieve them. Sales management also involves organizing and motivating the sales

team in such a way that they achieve and surpass the goal. This involves appropriate

compensation plan and building sales organization to respond to market realities. Finally,

the sales manager needs to review the performance and assess productivity of his/her

team.

MAIN POINTS –

 The role of the sales manager is futurist, strategist, information management and
leadership.

 The sales management planning process involves analysis, goal setting, strategy
and tactics development, issues in implementation and finally controlling sales
effort.

 Sales budget are the financial aspects of the sales plan. Sales quotas are targets to
be achieved by individual salesperson or by the sales team.

 A sales team can be formed either on the basis of the product, or territory or
customer groups or combination of these.

 The compensation plans used by sales managers are straight salary, commissions
only or a combination of these two.

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PRODUCT POSITIONING

Pepsi prefers to position itself as the beverage choice of “NEW GENERATION”, or just

as the “PEPSI GENERATION”.

These terms adopted in Pepsi advertising campaigns are referring to the market that

marketers refer to as GENERATION X. The Generation X consumer is profiled to be

between the ages of 18 to 29. They have high expectations in life and are very mobile and

active. They adopt a life style of living for today and not worrying about long-term goals.

Though Pepsi’s main emphasis is on this segment but they also have a focus on the 12 to

18 year old age group.The rich deep blue coloring represents eternal youthfulness and

openness. Marketing plan like “YEH DIL MAANGE MORE”, “GOT ANOTHER

PEPSI”, “YEH PYASS HAI BADI” AND “YEH HAI YOUNGISTAN MERI JAAN”

and New Punch Line “YOUNGISTAN KA WOW” have made Pepsi one of the

coolest brands recognized among teens in the top five and the only beverage product in

this category.

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COMPETITOR ANALYSIS

The major competitor of Pepsi through out the world is Coca Cola. Following will give a
brief of the competition between the rivals:

 Although the goals of both the companies are the same, the two companies rely on
somewhat different marketing strategies. Pepsi has always taken the lead in
developing new products. Further, Pepsi has always taken more risks, acted
rapidly, and was always developing new advertising ideas.

 In the foreign markets, Coke has been more successful than Pepsi. However, in
certain countries, consumers wanted a soft drink that was low in sugar and Pepsi
responded to it by developing Pepsi Max.

 While Coke has been playing safe with advertisement featuring cute polar bears,
Pepsi stole away Generation X with the appropriately titled “The Choice of a
New Generation” and “Generation Next” marketing campaigns.

 Pepsi has positioned itself as a youth drink which is considered to be more modern
as compared to Coca Cola. Also, Pepsi has always played around innovations so as
to lead the market.

Conclusion:-

Pepsi and Coca Cola rivalry has always been a bitter one and to lead the market each has
to re-innovate themselves, as Indian customers are unique in their buying behavior and
special attention needs to be given.

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SWOT ANALYSIS

STRENGTHS: -

o Strong Brand name

o Pepsi has a broader product line and outstanding reputation

o Great brands ,strong distribution ,innovative capabilities

o High demand of the product

o Number one maker of snacks , such as corn chips & potato chips

o Wide and effective distribution network and well-built market

o Highly educated and well experienced Top Management

WEAKNESS: -

o Purity and quality of the products are estimated manually.

o Promotional activities in the rural market are not up to the mark as compared to
the urban market.

o Rude behavior of the salesman

o More emphasis is given on the big dealers.

o PEPSI has only one cola flavour where as its competitor has Coke and Thumps-
Up.

o Not all pepsico products bear the company name

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OPPURTUNITIES: -

o It should give more incentives to the dealers in the new areas, where there is a
huge market potential.

o There are increasing trend toward healthy foods.

o More lucrative schemes must be launched regularly, specially during off seasons
so as to attract more and more customers.

o Apart from sponsoring films, cricket and music it should also sponsor the different
fashion shows, quizzes and debates in schools and colleges.

o If improve the salesmanship it can attract more n more retailers.

THREATS: -

o Now the consumers are moving towards fruit juices.

o F & B industry is mature

o Big threat is from its rival Coke.

o Size of company will demand a varied marketing program ; social, cultural ,


economic , political and governmental constrains .

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ABOUT PEPSICO VISICOOLER PLANNOGRAM

 Target – All the retail outlets

 ONE umbrella programme – PepsiCo Visicooler Plannogram

 Covering all three channels


• Convenience
• Grocery
• Eatery

 Full Year Program

 100% CE Coverage

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PEPSICO VISICOOLER PLANNOGRAM

What is “PepsiCo Visicooler Plannogram”?

‘Visicooler Plannogram’ is the right way of placing products inside the cooler that
enhances sales. It is a pictorial depiction of how to arrange each SKU in the cooler and is
a researched tool to help organize our products the best in the cooler. So PepsicCo has
made this Plannogram after years of research to enhance the sales and profits of retailers
which in turn helps company in achieving the goal.

The basis of making the plannogram is to stock the fast selling Pepsico products more
inside the cooler and making Emphasis on best selling range that accounts for 80% of the
sales. Visicooler is very much important from selling point of view because in Soft Drink
market only COLD is SOLD. So out products are finished only when they are cold and
that’s why the top three priorities for PepsiCo in 2010 are:
A) Cooler Purity
B) Cooler Charging &
C) Cooler Placement

Cooler Purity would be 100% when there should be no other items/products except
PepsiCo products.

Cooler Charging would be 100% when Visicooler is full with PepsiCo Beverages.

Cooler Placement should be in a way so that it can be easily visible to the customers.

The key or main benefits of executing the plannogram for the retailers are:

A) It maximizes the capacity of the visicooler by arranging products in the right way.
B) It allocates space based on what sells more in the unit.
C) Plannogram increases the sale and profit of the retailer.

The plannogram also helps the retailer by minimizing number of days of stock and by
minimizing out of stock situations.

CE and Merchandiser is responsible for successful execution of the Plannogram and to


train the shop boy on how to execute the Plannogram in his absence.

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The plannogram is also very useful because it brings the focus back on Glass bottles and
from company point of view it is very important that the consumption and demand of
glass bottles should be increase.

So from above mention facts we can understand the importance of ‘Visicooler


Plannogram’ as it is the main priority for PepsiCo in the year 2010.

“Visicooler Plannogram is very important and helpful Since the product which having
more shelf placement, better distribution network and more visibility in the eyes of the
consumers, people will prefer it more” and that gives it better positioning .

Plannogram is beneficial from every point of view for retailers as mention above it helps
in arranging the products in a better and more effective way. It also helps them in stock
rotation and save them from the stock out problem. Within a small span of time it also
helps in increase the sales by 30%. Customer can also benefit by it as if the cooler is
purely charged and prominently located customer can easily view the different products
and they have variety of products of different flavors and taste to choose from. Which in
turn help the retailer as well as the company in selling of wide range of products.

The main problem behind not following POG is the communication gap between the
retailers and the company. Retailers don’t have the proper and right knowledge about
POG so they are afraid in applying it. They take POG as wastage of time with no
benefits. So for the proper application of POG the C.E, Salesman and Merchandiser have
to connect with the retailers very well and they have to convince them about its uses and
benefits as during the project we have done so well that most of them were ready to apply
it and follow it on regular basis. So the awareness is another important factor behind
successful execution of POG.

We can say the “PepsiCo Visicooler Plannogram is very important, useful and beneficial
from all’s point of view and we have to make some concrete efforts for successful
execution of the plannogram to meet the company’s top priority this year.

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Field Work

Execution & Analysis of “PepsiCo Visicooler Plannogram” – Buxar and Dumrawan

The Pepsi Visicooler Plannogram is a promotional programme that was started for the

purpose of increasing the overall sales of Pepsi products and hence profit.

My job was to visit all the retail outlets in Buxar and Dumrawan which were covered by

Pepsi Visicooler Plannogram and check the level of awareness among the retailers about

the Plannogram.

During the initial stage of the project, I came to know about the tricks of the trade through

route riding. On visiting retailers on various routes, I realized how important a strong

distribution channel was for a company to be able to retain its position as an industry

leader. I used to visit all the retail outlets of a particular route each day and learnt how to

negotiate with retailers, how to tackle the various problems related to Visicoolers,

schemes, etc. Having done this, an overall market scenario of the distribution channel and

methods became clear.

In the process of increasing the level of awareness about the scheme, I also tried to make

the retailers understand how easy it is to apply the POG which will result into increase in

sales by 30% within a small span of time. In this way I tried to motivate them to purchase

more and more of the various products of PepsiCo. I also analyzed:

1. Whether the salesman and merchandiser is telling and applying about the schemes
to the retailer properly?

2. Whether the Visicooler is purely charged?

3. Whether the Visicooler, Visitop, Rack and Air Hanger have been properly
displayed to the eyesight of the consumers?

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Market Surfing of “PepsiCo Visicooler Plannogram”:

Buxar And Dumrawan

Sr. Cate Retailer Name / Size of Chargi Visi- Visi- Purity


Shelf
No. gory Address Cooler (ltrs.) ng (%) Top Location (%)

Vijayee,Station
1 C 220 3 80 No Yes 90
Road Buxar

Durga
2 C 400 4 80 Yes Yes 100
Cinema,Buxar

Rajbhog, Ramrekha
3 C 220 3 100 No Yes 100
ghat Road Buxar

Amul Vikas,
4 E Namak Gola Road 400 5 80 Yes Yes 100
Buxar

Amrit Sweets,
5 E 220 3 75 No Yes 80
Station Road Buxar

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Size of
Sr. Cate Retailer Name / Chargi Visi- Visi- Purity
Cooler Shelf
No. gory Address ng (%) Top Location (%)
(ltrs.)

Bandhan
6 E sweets,Station 400 4 75 No Partial 50
Road Buxar

Dilip Kr Pandey,
7 G Golamber Road 220 3 75 No Yes 60
Buxar

Ajay Gupta, Thana


8 G 220 3 60 No Yes 50
Road Dumrawan

Durga Prasad
9 G Chauriya, Station 400 4 90 No Yes 80
Road Dumrawan

Sudha Booth,
10 G station Road 220 3 70 No Yes 70
Dumrawan

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RESEARCH METHEDOLOGY

A market research survey has been conducted for the purpose of above study. The
research data has been collected through out this procedure.

A. Data collection :

The success of any research project depends critically on data. So data collection is the
most important aspect of a research project. Primary and secondary data are used in this
project.

B. Sample survey:

Survey has been conducted after preparing the questionnaire and the focus was to know
the effectiveness of program.

C. Sampling:

a) Nature of Universe

The research was carried on distributors and retailers of cold drink.

b) Sample Size

Sample size has been 150 retailers of various places in East Delhi.

c) Secondary Information

Companies documents, various journals, pamphlets and companies portals were studied
for relevant information regarding the subject of the projects. These documents were very
useful for theoretical, conceptual and organizational background. Detailed analysis of
information and data collection was carried on and then it has been possible to complete
the task.

d) Question Design

The question was designed keeping in mind the need of the project. The questions were
simple and concise. Questions were prepared for retailers.

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PRIMARY DATA:

Primary data is collected through retailers, questionnaire, and personal interviews of retailers

and different employees of Pepsi (salesman, etc.).

For example:

Category of shops i.e.

G = Grossary shops;

C = Convenience shops;

E = Eatery shop

Visicooler i.e

Freeze of pepsi or others and the capacity of the freeze.

QUESTIONNAIRE

The Questionnaire is defined as such to find out:

1. The proper implementation of the Plannogram.

2. The proper functioning of the Plannogram.

3. Successful completion of the Plannogram.

4. Problem faced in its application.

QUESTIONNAIRE

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Name : ________________
Location of Retailer : ________________
Phone No. : ________________

Q
1. Does retailer have knowledge about POG?
( ) YES
( ) NO
( ) Partially

If yes then continue

2. POG has been explained to the retailer by?

( ) PSR
( ) CE
( ) Space warriors
( ) other retailers

3. Does salesman help you in arranging the products according to the


Plannogram?

( ) Always
( ) Rarely
( ) Never

4. What extent POG has been followed?

( ) 1ST Shelf according to POG


( ) 2ND Shelf according to POG
( ) 3RD Shelf according to POG
( ) 4th Shelf according to POG
( ) 5th Shelf according to POG
( ) all the shelves
( ) none of the shelves

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5. Does retailer think that POG is beneficial for him?
{Rate it on the scale of 1 to5}

1----------2-----------3-----------4------------5
Agree disagree

6. Does retailer thinks that POG provides convenience to the customer while
purchasing the product ?

( ) completely agree
( ) partially agree
( ) does not know
( ) partially disagree
( ) completely disagree

7. Does retailer thinks that POG enhances visual appeal of visi cooler?

( ) completely agree
( ) partially agree
( ) does not know
( ) partially disagree
( ) completely disagree

8. Does retailer think that POG helps in increasing sales?

( ) completely agree
( ) partially agree
( ) partially disagree
( ) completely disagree
( ) does not know

9. Does retailer think that POG helps in maintaining inventory?

( ) completely agree
( ) partially agree
( ) partially disagree
( ) completely disagree
( ) does not know

10. Does retailer think that POG helps in liquidate old stock?

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( ) completely agree
( ) partially agree
( ) partially disagree
( ) completely disagree
( ) does not know

11. Does retailer think that following POG maintains optimum cooling of
Visicooler?

( ) completely agree
( ) partially agree
( ) partially disagree
( ) completely disagree
( ) does not know

12. Does retailer think that POG helps proper utilization of space?

( ) completely agree
( ) partially agree
( ) partially disagree
( ) completely disagree
( ) does not know

13. Does retailer think that implementing POG is difficult as it is “Time


consuming”?

( ) completely agree
( ) partially agree
( ) partially disagree
( ) completely disagree
( ) does not know

14. Does retailer think that implementing POG is difficult as “products are out
of stock” ?

( ) completely agree
( ) partially agree
( ) partially disagree
( ) completely disagree
( ) does not know

15. Does retailer think that implementing POG is difficult as he/she doesn’t have
a helper?

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( ) completely agree
( ) partially agree
( ) partially disagree
( ) completely disagree
( ) does not know

16. Does retailer finds it difficult to understand POG?

( ) completely agree
( ) partially agree
( ) partially disagree
( ) completely disagree

17. Does retailer think that implementing POG is difficult as there is no proper
assistance given to him/her by company personnel ?

( ) completely agree
( ) partially agree
( ) partially disagree
( ) completely disagree
( ) does not know

18. Retailer’s feedback -


…………………………………………………………………………………………
…………………………………………………………………………………………

DATA ANALYSIS

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Q1. Are you aware of “POG” (PepsiCo Visicooler Plannogram)?

RETAILER'S AWARENESS ABOUT THE PROGRAM

20%

80%

NO YES

Q2. POG has been explained to the retailer by ?

30%
40% C.E
PSR
S.W
OTHERS
15%
15%

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Q3. Does salesman help you in arranging the products according to the
plannogram?

35%
44% rarely
alw ays
never

21%

Q4. Does retailer think that POG is beneficial for him?

44%
YES
NO
56%

Q5. Do you think that POG enhances visual appeal of visicooler?

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26%

46% YES
NO
CAN'T SAY

28%

Q6. Do you think that POG helps in increasing sales?

32%
40% YES
NO
CAN'T SAY

28%

Q7. Do you think that POG helps in maintaining inventory?

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30%
38%
YES
NO
CAN'T SAY

32%

Q8. Do you think that POG helps in liquidate old stock?

21%

38%
YES
NO
CAN'T SAY

41%

Q9. Does retailer think that following POG maintains optimum cooling of Visicooler

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22%

47% YES
NO
CAN'T SAY

31%

Q10. Does retailer think that POG helps proper utilization of space?

20%
34%
YES
NO
CAN'T SAY

46%

Q11. Does retailer think that implementing POG is difficult as it is “Time


consuming” ?

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18%

YES
NO
CAN'T SAY
56%
26%

Q12. Does retailer think that implementing POG is difficult as “products are
out of stock” ?

11%

YES
26%
NO
CAN'T SAY

63%

Q13. Does retailer finds it difficult to understand POG?

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41%

YES
NO
59%

Q14. Does retailer think that implementing POG is difficult as he/she doesn’t have
a helper ?

37%

YES
NO

63%

FINDINGS

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• A large part of population consumes soft drink with the food items. This shows
the immense potential for selling soft drinks in different shops.

• A large number of retailers told that they don’t have proper knowledge about
’POG’ and after understanding it they feel that this is good and will motivate
them to sell more PepsiCo products.

• Salesman did not give the proper information of the schemes on different
products to the retailers as it was changed daily.

• Most of the retailers demand for bigger fridge.

• Retail outlets also demand for advertising material –Banner, Glow Sign Board
and Night Cover for Visi cooler.

• Retailers are unsatisfied with the replacement of expired products.

• Retailers complaint about short supply during these two months especially of
Mountain Dew and Diet Pepsi.

• Many visicooler had developed technical snags and service personnel took so
much time to rectify them.

• Most of the retailers were agreed on applying ‘POG’ but they told that they
can apply it properly only when the company man will supply demanded
products on time. So regular and proper delivery of products are required

• Most of the shops did not have Racks, Visi top and Air hanger
LIMITATIONS

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During the training period we were working as a part of S.K. traders we tried our best to the

successful completion of “PepsiCo Visicooler Plannogram”. When we trainees start surfing

retail shops for making them aware about the benefits and applying ‘POG’ we found many of

the retailers were asking for Visicoolers (freeze). Those who have low capacity cooler they

want high capacity cooler and some of those also wants to change their high capacity cooler

to low ones but these numbers are less than the previous ones so because of the imbalance we

were unable to fulfill all’s demand immediately.

Some have also said that the Visicooler that company presently have is not cooling good or

the cooling is low. They often compared it with other brand’s cooler especially with ‘Coke’

but many times after checking the cooling system it found that this was just their illusion and

it is very hard to make them understand that. So all the time it is not possible to make every

retailer happy even we are doing our best to address all of their needs or requirements.

There were many small shops where the sales was not high but they also demanded for

Visicoolers and some of them said that they want aluminum or steel cover doors not the one

company presently have (glass door coolers) because steel door cooler cools better than the

glass door cooler but again it is not possible from the promotion and selling point of view

because if the customer wound not be able to see company’s product inside the cooler, he can

ask for any drink including rivals (Coke) whatever comes to his/her mind that time.

So it is very hard to fulfill each and every wish of the retailers and the cooler problem was our

limitation because we can’t provide freeze to everyone.

SUGGESTIONS

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• The most important thing is that the company must keep an eye on whether
the salesman or responsible personnel are telling and applying about the
scheme to the retailers and if they are in fault, punitive action must be
taken because if any retailer come to know about the scheme from a third
party on a particular day then it creates a negative impact about the
company.

• Damaged Visicooler must be repaired within a time frame so that company


does not lose it sales. As in the market of Soft Drinks only ‘COLD IS
SOLD’ so the products should be cold in order to increase the selling.

• Racks, Air hanger and Visi top should be distributed as soon as possible
for better promotion of products.

• Orders by the retailers should be executed in a proper manner to avoid


irregular availability.

• Company personnel should keep contact with the retailers on regular basis
and try to empathically listen to their problem and provide the feasible
solutions to them on an immediate basis as many retailers complaint that
no body provide them even proper guideline about their problems.

• Diet pepsi, Mountain Dew and Slice 1.2lt., and Tetra pack needs some
effective marketing strategy in order to increase its sale.

CONCLUSION

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Without any hesitation we can say that the unit is doing tremendously well and the sales
are increasing. Launching and applying such program like “PepsiCo Visicooler
Plannogram”, works like a panacea for increasing the sales of the company.

As the company has also started providing points and rewards for those who are applying
the ‘POG’ in the right and prescribed manner it has boosted the speed of ‘POG’
application and more retailers have been attracted and are applying the ‘POG’ in the right
form. So by this way the unit is making sure that the maximum retailers do follow ‘POG’.

But today looking at the competition of the market there is an immense scope of
improvement. If we have to compete with our rivals then we have to make concrete
marketing strategy and follow it strictly. We also have to keep a keen watch on our rival’s
strategy and take steps according to them.

We should create new ideas, and new promotional schemes, offers, prizes, flavors that can
add to our sales. Besides these we also have to work on other possible areas like mineral
water, flavored water that can strengthen our sales.

BIBLIOGRAPHY

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 BOOKS

1. PRINCIPLES OF MARKETING
By Philip Kotler
2. MARKETING RESEARCH
By N.K. Malhotra
3. STATISTICS
By S.K. Gupta

 WEBSITES

1. www.pepsico.in
2. www.wikipedia.org
3. www.google.com
4. www.indiatimes.com.

And Last But Not The Least…………

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PEPSI ….. YOUNGISTAN KA
WOW

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