1

CHAPTER 1

1. INTRODUCTION

The past year has been fairly eventful for the soft drinks industry.

Market segmentation, product proliferation network strengthening,

backward integration, high profile advertising and sales promotion the

industry saw it all.

With the entry of the competitor COCA-COLA, the market came under

pressure. However the indigenous manufactures knew full well that

they had no option but to complete in terms of quality, service, offers

and schemes and price to much with competitor.

Pepsi gives emphasis for rising customer expectation of its brands

along with stretching itself to satisfy the customer expectations. In

Madurai city Pepsi marked by several agencies, they are Naga

agencies, Friends agencies, Rainbow agencies etc.

The company feels that advertisement has a greater influence on

buying decisions. It is a major function to add value to its brands over

the long term, by building unique, relevant brand personalities that

occupies a strong image in customer mind and heart.

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HISTORY OF PEPSI

1898 Caleb Bradham, a New Bern, North Carolina, pharmacist,

renames "Brad's Drink," a carbonated soft drink he created to serve his

drugstore's fountain customers. The new name, Pepsi-Cola, is derived

from two of the principal ingredients, pepsin and kola nuts. It is first

used on August 28.

1902 Brad ham applies to the U.S. Patent Office for a trademark for the

Pepsi-Cola name.

1903 In keeping with its origin as a pharmacist's concoction, Brad

ham’s advertising praises his drink as "Exhilarating, invigorating, aids

digestion."

1905 A new logo appears, the first change from the original created in

1898.

1906 The logo is redesigned and a new slogan added: "The original

pure food drink." The trademark is registered in Canada.

1907 The Pepsi trademark is registered in Mexico.

1909 Automobile racing pioneer Barney Old-field becomes Pepsi's first

celebrity endorser when he appears in newspaper ads describing

Pepsi-Cola as "A bully drink...refreshing, invigorating, a fine bracer

 3

before a race." The theme "Delicious and Healthful" appears, and will

be used intermittently over the next two decades.

1920 Pepsi appeals to consumers with, "Drink Pepsi-Cola. It will satisfy

you."

1932 The trademark is registered in Argentina.

1934 Pepsi begins selling a 12-ounce bottle for five cents, the same

price charged by its competitors for six ounces.

1938 The trademark is registered in the Soviet Union.

1939 A newspaper cartoon strip, "Pepsi & Pete," introduces the theme

"Twice as Much for a Nickel" to increase consumer awareness of

Pepsi's value advantage.

1940 Pepsi makes advertising history with the first advertising jingle

ever broadcast nationwide. "Nickel, Nickel" will eventually become a hit

record and will be translated into 55 languages. A new, more modern

logo is adopted.

1941 In support of America's war effort, Pepsi changes the color of its

bottle crowns to red, white and blue. A Pepsi canteen in Times Square,

New York, operates throughout the war, enabling more than a million

families to record messages for armed services personnel overseas.

 4

1943 The "Twice as Much" advertising strategy expands to include the

theme, "Bigger Drink, Better Taste."

1949 "Why take less when Pepsi's best?" is added to "Twice as Much"

advertising.

1950 "More Bounce to the Ounce" becomes Pepsi's new theme as

changing soft drink economics force Pepsi to raise prices to

competitive levels. The logo is again updated.

1953 Americans become more weight conscious, and a new strategy

based on Pepsi's lower caloric content is implemented with "The Light

Refreshment" campaign.

1954 "The Light Refreshment" evolves to incorporate "Refreshing

without Filling."1958 Pepsi struggles to enhance its brand image.

Sometimes referred to as "the kitchen cola," as a consequence of its

long-time positioning as a bargain brand, Pepsi now identifies itself with

young, fashionable consumers with the "Be Sociable, Have a Pepsi"

theme. A distinctive "swirl" bottle replaces Pepsi's earlier straight-sided

bottle.

1959 Soviet Premier Nikita Khrushchev and U.S. Vice-President

Richard Nixon meet in the soon-to-be-famous "kitchen debate" at an

 5

international trade fair. The meeting, over Pepsi, is photo-captioned in

the U.S. as "Khrushchev Gets Sociable."

1961 Pepsi further refines its target audience, recognizing the

increasing importance of the younger, post-war generation. "Now its

Pepsi, for those who think Young" defines youth as a state of mind as

much as a chronological age, maintaining the brand's appeal to all

market segments.

History of Madurai PepsiCo

• This plant was commenced in May 1994 with 40 employees.

• This plant is located 8kms far away from Madurai city.

• The facility area of this plant is 4.74 acres of land.

• The production capacity of the plant is 22840 c/s/day.

• The warehouse capacity of this plant is 63000c/s.

• The number of employees currently working under this plant is

24 executives and 49 associates.

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1.1COMPANY PROFILE

Pepsi co operation at Madurai started during 1991 with franchise

operation under Mr. Adai kalaraj as franchise. In May 1994, Pepsi

Company took over the plant from the franchise to improve the quality

service and productivity of the product.

The current production capacity of Madurai plant is 425 BPM to

500 BPM with per day production capacity of 23000c. This plant

having only CSD (carbonated soft drinks) line products Pepsi, 7up,

Miranda, lemon, Lehar in bottles and slice is not manufactured in

Madurai unit but it is brought from Chennai for distribution. Similarly,

pet is bought from Bangalore and can is brought from Mumbai and

distributed in Madurai market.

Madurai plant constantly puts the effective environment

production control and its effluent treatment plant has been recognized

as model plant. During 1996 it has been reorganized by Pepsi

international, as bottles can for its production of 7up with volume and

quality.
 7

During 1997 it has been recognized as gold standard in facility &

bronze standard in quality. It has been awarded Bronze standard by

Pepsi cola international (PCI). This Madurai unit becomes the first and

only plant in India to get over all standard awards this year.

Partnership with farmers

Through its major Agri-initiatives in Punjab, U.P, Maharastra and

West Bengal, PepsiCo has laid down the ground work for the long term

economic and social prosperity for farmers in the country. PepsiCo’s

pioneering contract farming initiatives across the country and

expansive citrus nursery in Punjab have generated sourcing tie-ups

with farmers and introduced them to new technologies in citrus farming.

Along with capacity building, knowledge sharing and emphasis

in value enhancement, the initiatives have led to better price realization

for thousands of farmers across the country, improved the prices and

enhanced the quality of their crops which include basmati, chili,

potatoes, peanuts and corn. PepsiCo India generates exports of more

than Rs2600 crore annually making it one of the largest MNC exporters

in India.

It export business consists of three categories:

 Agri business,
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 Commodities,

 Pepsi system sales,

Shareholders

PepsiCo (symbol: PEP) shares are traded principally on

the New York stock Exchanges in the United States. The company is

also listed on the Amsterdam, Chicago and Swiss stock exchange.

PepsiCo has consistently paid cash dividends until corporation was

founded.

PEPSICO PRODUCTS

1. 7 up

2. Pepsi

3. Diet Pepsi max

4. Wild cherry max

5. Mirinda Orange

6. Mirinda Lemon

7. Slice

8. Aquafina

9. Mountain Dew
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10. Everess soda

11. Twister

12. Lays

13. Tropicana

14. Kur kure

15. Cheetos

16. Quaker Oats

17. G2 from Gatorade

18. Nimbooz

19. Lipton

20. Crush

PRODUCTS PRODUCED AT MADURAI PLANT

1. 7 up

2. Pepsi

3. Mirinda Orange

4. Mirinda Lemon

5. Mountain dew
 10

6. Everess Soda

In India Pepsi & co have the following varieties:

Pepsi - cola flavor

Diet Pepsi - cola flavor

7up - clear flavor

Miranda lemon - cloudy lime

Miranda orange - orange flavor

Slice - mango flavor

Lehar soda - soda flavor

Quality report of Pepsi co products

Pepsi has reiterated with utmost confidence that all its products

meet all international standards and delivers only safe and world class

quality to consumer “specifically”, with regard to any kind of pollutants,

pesticides included all Pepsi products meet and indeed better the most

stringent testing standards”.

The regular testing and the stringent quality norms for all soft

drink products are what allow Pepsi to guarantee consistent quality and

purity, a company press release said these test methods require

 11

specialized equipment and highly trained and experienced personal to

accurately detect pesticide residue at 0.1 parts per billion levels, it

added, “to provide and idea of the stringency of these standards, this is

equivalent to measuring one second in 320 years”

The Indian government, the company said, has laid out

processes of accreditation that are carried out by the national

accreditation board for testing &calibration for laboratories (NABL) to

certify the capabilities of center to carry out such tests. “The centre for

science and environment (CSE) lab that has reported these results is

not so accredited or certified”.

All soft drink products of Pepsi are tested against several

stringent norms at the independent world- class VIMTA labs that are

duly NABL accredited under ISO/IEC 17025, to confirm that all brands

meet safely, purity and quality norms, the press release added. “These

test results are regularly verified at Holland by TNO Nutrition & Food

research labs, the major international referral point on such testing”.

These reports pertaining to all Pepsi plants including those from

where consumers receive products supply are available for scrutiny by

all, claimed Pepsi. “The suspect data that CSE has put forth has been

bench marked by them against Eu norms (that are yet to be

 12

implemented even in Europe). These have been presented as some

kind of poison Index with highly exaggerated claims of the damage that

can be caused by such trace presence”.

On a relative scale, Pepsi’s bottled water and soft drinks are the

safest among products of daily consumption, including regular drinking

water, milk, tea, coffee, vegetables and other Agri-based items from

the pesticide content perspective, the company said, “Bottled water

and soft drinks go through the most advanced world- class

manufacturing processes controlled by rigorous quality standards”.

Corporate citizenship

At PepsiCo, they believe that as a corporate citizen, they have

a responsibility to contribute to the quality of life in their communities.

This philosophy is expressed in our sustainability vision which states.

“PepsiCo’s responsibility is to continually improve all aspects of the

world in which we operate-environment, social and economic value

creating a better tomorrow than today”

Code of conduct

Each year, every PepsiCo associate is asked to review

PepsiCo’s worldwide code of conduct and recommit to living by it.

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Associates receive training in the code, which is available in 38

languages. In 2005, PepsiCo took additional steps to ensure that key

associates understood every aspect of the code by developing online

and written training and certification that all executives and associates

are required to complete.

PepsiCo’s commitment

 Sustained growth

 Empowered people

 Responsibility and trust

PepsiCo’s quality policy

“Make sell and deliver the beverage to the consumer as it was

designed, in order to derive preference”.

PepsiCo’s vision

Their vision “is to put in to 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”.
 14

PepsiCo’s mission

“To be the world’s premier consumer Products Company

focused on convenient foods and beverages, we seek to produce

healthy financial rewards to investor as we provide opportunities for

growth and enrichment to our employee, our business partners and the

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

for honesty, fairness and integrity”.

FEATURES OF PEPSICO

1. Highly advanced technology sourced from the best in the world.

2. Large capacities which will yield economies of scales in the long

run.

3. Highly skilled and energetic work focus.

4. Pollution prevention measures like sewage water treatment

plant.

5. High safety standards to safeguard life and property.

6. High quality consciousness among the employees.

7. Water Conservation Projects association with Farmers.

QUALITY POLICY OF PEPSI

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We, the employees of PepsiCo India Holdings Limited, Madurai,

commit ourselves to attain total customer satisfaction through

dedicated team work by:

• Consistently meeting and exceeding PepsiCo quality

specifications

• Continuously improving in all spheres of operation

• Satisfied internal customer, external customer, business

associates and the society through excellence in quality of

products and services.

• Continuous improvement of technology and manpower skills

• Satisfied, motivated and committed employees

• Safe working conditions and eco friendly environment.

MAJOR ACHIEVEMENTS

• Certified as an ISO 9001 - 2000 company and HACCP & IQA

Gold.

• Twice Winner of Golden Peacock National Award for 7years

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• PepsiCo International IQA Silver Award for 2007

ORGANIZATION STRUCTURE

HUMAN RESOURCE MANAGEMENT

Human resource managers play important roles in industry.

They are influential because their activities and contributions are

relevant to all aspects of the organization and have a definite impact on

 17

various organizational processes. These professionals do more than

just keep records and create policies and procedures.

They are involved in the strategic aspects of the business as well as

the legal and operational aspects of managing an organization's most

valuable resource, the human resource. Their main goal is to maximize

the organization's potential through its human resources. Without the

activities they supervise, companies could not function successfully or

fulfill their goals.

ROLES OF A HR

1. Planning and organising for work, people and HRM

2. Strategic perspective

3. Organisation design

4. Change management

5. Corporate Wellness management

6. People acquisition and development

7. Staffing the organization

8. Training & development

9. Career Management
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10. Performance Management

11. Industrial relations

12. Administration of policies , programmes & practices

13. Compensation management

14. Information management

15. Administrative management

16. Financial management

SUPPLY CHAIN MANAGEMENT

Definition of SCM:

“Supply Chain Management includes the planning and

management of all activities involved in sourcing & procurement,

conversion, and all logistics management activities.

It also includes coordination and collaboration with channel

partners, which can be suppliers, intermediaries, third-party service

providers, and customers.”

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SUPPLY CHAIN MANAGEMENT PROCESS AT MADURAI

Supplier

Distributor

Factory gate

(Empty bottles)

(FG) (RM)

Shipping

Factory stores

(RM)

Production
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PRODUCTION PROCESS
Beverage Preparation

Crown receipt of CO2 receipt

inspection
Inspection of storage Dear ration under vacuum and
storage

Water pump
Syrup level

Syrup transfer uncarbonated beverages

Through proportioning

Booster pump

PHE – I
Bottle

Washer feeding
Carbonation pump
Recyclic conveyor

CO2 Injection ACF

Carbonator tank Ultra filler

PHE – II CO2 control panel

Filler (Temp 5 -12°C)

Warehousing Crowner elevator Crowner

Tagging Date coding

Preinspection

Palletizing Casing

Filled bottle inspection

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CHAPTER 2

SIGNIFICANCE OF THE STUDY

A study of this nature will make management of an

organization to derive the following benefits

A study of distribution channel tells how the product reaches

distributors and consumers. To know the in depth knowledge about soft

drinks. This study was mainly undertaken to identify the relationship

between distributors, retailers and consumers. And effectiveness of the

distribution channel can be evaluated.

This study determines the features of the product preferred

by the distributors and consumers.

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CHAPTER 3

REVIEW OF LITERATURE

3.1 DEFINING MARKETING

The social definition for marketing can be defined as a social

process by which individuals and groups obtain what they need and

want through creating, offering, and freely exchanging productions and

services of value with others.

For managerial definition, marketing is often been described as

“art of selling products”, but the most important of marketing is not

selling. Selling is a part of marketing. Marketing management takes

place when at least one party to a potential exchange thinks about the

means of achieving desired responses from other parties. Marketing

management is seen as the art and science of choosing target markets

and getting, keeping, and growing customers through creating,

delivering and communicating superior customer value.

Marketing (Management) is the process of planning and executing

the conception, pricing, promotion, distribution of ideas, goods,

services to create exchanges that satisfy individual and organizational

goals.

According to Philip Kottler, “Marketing is a social and managerial

process by which individuals and group obtain what they need and

want through creating, offering and exchanging and products of value

with others.
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3.2 DISTRIBUTION CHANNEL

The distribution channel is the movement of goods

and services between the production and the point of consumption

through organization that performs a variety of marketing activities. The

major participants in the distribution channel are: producers,

intermediaries and consumers.

According to A. W. Shaw, “Distribution is the application

of motion to materials as they move the times, places, forms and

conditions where they have no value, to the times, places, forms and

conditions where they have value.”

According to john A. Howard, “Marketing channel are the

combination of agencies through which the seller, who is often though

not necessarily the manufacturer, markets his products to the ultimate

user.”

3.3 FUNCTION OF DISTRIBUTION CHANNEL

3.3.1 Research: The gathering of information necessary for

planning and facilitating

exchange.

3.3.2 Promotion: The development and dissemination of

persuasive communication about the offer.

3.3.3 Contact: The searching out and communicating with

prospective buyers.

3.3.4 Physical distribution: The transportation of the goods.

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3.4 IMPORTANCE OF DISTRIBUTION CHANNEL

Distribution channel is the route taken by the title to

goods as they move from the producer to the ultimate consumer. It

brings maximum profit to all institutions concerned. The channel of

distribution is very important to the producer and the consumer. The

consumers are scattered in many places. The producer is situated in

one place. There is a big gap between the producer and the consumer.
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CHAPTER 4

SCOPE FOR FURTHER STUDY

 The sample size taken for the study is only hundred; this

study can be extended to larger sample size.

 This study can be extended to ascertain the effective

utilization of human resources, desirable working condition

among all the employees.

 This study can be used to improve the standard of the

organization.
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CHAPTER 5

OBJECTIVES OF THE STUDY

 To know the relationship between channel members.

 To identify the factors to purchase the packaged soft drinks.

 To know the effectiveness of distribution channel.

 To identify the brand which is preferable by distributors and

consumers?

 To often suggestion to improve the volume of sales.

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CHAPTER 6

LIMITATIONS OF THE STUDY

 The conclusion and suggestion were formed based on

employee’s response which is subject to change.

 Some false information may be given by the respondents

regarding their expectation.

 The level of the respondent’s bias, so is calculated which might

have distorted the result.

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CHAPTER 7

RESEARCH METHODOLOGY

Research methodology is way to systematically solve the

research problem. It is a plan of action for a research project and

explains in detail how data are collected and analyzed. Research

Methodology may be understood as a science of studying how research

is done scientifically. It can cover a wide range of studies from simple

description and investigation to the construction of sophisticated

experiment.

A clear objective provides the basis of design of the project.

Since the main objective of this study is to identify the customers

preference, expectation and perception. It was decided to use

descriptive research design include, surveys and fact-findings enquires

of different kinds, which found out to be the most suitable design in

order to carry out the project.

7.1 MEANING OF RESEARCH

Research is an art of scientific investigation. The advanced

learner’s dictionaries of current English lay’s down the meaning of

research as, “a careful investigation (or) inquiry especially through

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search for new facts in any branch of knowledge”. Redmen and Mary

define research as a “systematic effort to gain knowledge”.

7.2 RESEARCH DESIGN

A Research design is plan that specifies the objectives of the

study, method to be adopted in the collection of the data, tools in

analysis of data and helpful to frame hypothesis. “A research design is

the arrangement of condition for collection and analysis of data in a

manner that aims to combine relevance to research purpose with

economy in procedure”.

Research design is needed because it facilitates the smooth

sailing of the various project operations, thereby making the project as

efficient as possible yielding maximal information with minimal

expenditure of effort time and money. Also it minimizes bias and

maximizes the reliability of the data collected.

7.3 NATURE AND SOURCE OF DATA

7.3.1 Primary data

The data which are collected afresh for the first time and thus

happen to be original in character is called primary data.

The primary data was collected from the customers and

distributors through a direct structured questionnaire. Respondent has

filled the questionnaire.

7.3.2 Secondary data

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The data which have already been collected and analyzed by

someone else is called secondary data.

The secondary data was used mainly to support primary data.

Company profiles, websites, magazines, articles were used widely.

7.4 SAMPLING SIZE AND TECHNIQUE

7.4.1 Type of universe

The first step in developing any sample is clearly defining the

set of objectives, technically called the universe, to be studied. Here the

universe is the customers and distributors.

7.4.2 Size of sample

It refers to the number if items to be selected from the universe

to constitute a sample. Here 100 customers and 50 distributors in

Puducherry were selected as size of sample.

7.4.3 Sample design

The technique in which each and every item of the population

has equal independent chance of being included in the sample it is

called simple random sampling method. This method is also known as

the method of chance selection.

7.5 Questionnaire construction

In constructing questionnaire, care was taken to investigate the

difficulties that the respondent may face while answering them. It was

prepared keeping in view the objective of the study. During the

constructing care was taken to avoid questions, which may lead to

 31

misinterpretation. The question thus constructed was a structured one

so as to collect all the relevant information. The questions were

arranged in a logical order/sensible sequence. The questionnaire

consists of a variety of questions presented to the employees for their

response. Dichotomous questions, multiple choice questions, open

ended and rating scale were used in constructing the questionnaire.

7.6 Pilot survey

A pilot survey was conducted in order to discover the

shortcoming schedules and corresponding changes were made before

journal survey. Based on this some of the questions are modified in

order to get the predictable response.

7.7 STATISTICAL TOOLS USED

To arrange and interpret the collected data the following

statistical tools were used.

i. Percentage Method.

ii. Weighted Average Method.

iii. Chi – square Analysis.

iv. Rank Correlation.

7.7.1 Percentage Method:

The percentage method was extensively used for findings

various details. It is used for making comparison between two or more

series of data. It can be generally calculated.

No. of respondents favorable

 32

Percentage of Respondents = X 00

Total no. of respondents

7.7.2 Weighted Average Method:

In the Weighted Average Method, the weighted average can

be calculated by the following formula

XW = ∑WX/ ∑X
Here

XW represents the weighted average

“X1, X 2, X3………..Xn” represents the value for variable values

“W1, W2, W3 ……….Wn” represents the weightage given to the

variable.

Steps

• Multiply the weights(W) by the variables(X) to obtain WX

• Add all WX to obtain ∑WX

• Divide ∑WX by sum of the weights (∑X) to get weighted

average.

7.7.3 Chi – Square Analysis

Chi –square analysis in statistics to test the goodness of fit to

verify the distribution of observed data with assumed theoretical

distribution. Therefore, it is a measure to study the divergence of actual

and expected frequencies. It makes no assumptions about the

population being sampled. The quantity χ2 (chi- square) describes the

magnitude of discrepancy between theory and observation. If χ2 is

zero, it means that the observed and expected frequency completely

 33

coincides. The greater the value of χ2, the greater would be the

discrepancy between observed and expected frequencies.

The formula for computing Chi – Square (χ2) is as follows.

χ2 = ∑{(O-E)2 /E}

The calculated value of χ2 is compared with the table of χ2

for given degrees of freedom at specified level of significance. If the

calculated value of χ2 is greater than the table value then the difference

between theory and observation is considered to be significant. On the

other hand, if the calculated value of χ2 les than the table value then

the difference between theory and observation is not considered to be

significant. The degrees of freedom is (n – 1) where ‘n’ is number of

observed frequencies and in case of contingency table the degrees of

freedom is (C-1) (R-1) where C is number of columns and R is number

of rows

7.7.4 Rank Correlation

Rank Correlation is a measure to ascertain the degree of

association between two variables when the distribution is unknown.

Rank Correlation Coefficient is also known as Spearmen’s Rank

Correlation Coefficient. It is determined by the following formula.

R = 1-(6 ∑ D2 / N (N2 – 1))

 34

When there are equal ranks the Spearmen’s Rank Correlation

Coefficient gets modifies as follows.

CHAPETR 8
DATA ANALYSIS AND INTERPRETATION

Table8.1
TYPE OF CONSUMER

Type No of Respondents Percentage (%)

Travelers 36 36
Family Members 24 24
Foreigners 19 19
Hotels 15 15
Enterprises 3 3
Institution 3 3
Total 100 100

Inference:
1. 36% of the respondents are travelers.
2. 3% of the respondents are institution.

Chart8.1

TYPE OF CONSUMER
 35

80
70
60
50
40
30
20
10
0

ls
rs

es
s

n
er
er

te

tio
be

ris
ign
el

Ho
em

itu
rp
av

re

te

st
Tr

Fo

En

In
ily
m
Fa

Table 8.2

BRAND IN CONSUMER MIND

Brands No of Percentage
Respondents (%)
Pepsi Co (Pepsi-cola flavor, 26 52
7Up, Miranda (lemon,
orange), Slice, Mountain dew,
Tropicana…)
Coca Cola (Coca Cola, Sprite, 23 46
Mazaa, Franta….)
Others 1 2
Total 100 100

Inference:
1.52% of the customers are Pepsi Co.
2. 2% of the customers are others.

Chart 8.2
 36

BRAND IN CONSUMER MIND

60

50

40

30

20

10

0
Pepsi Co CocaCola Others

Table 8.3
PREFERENCE OF PACKAGES

Packaging Size No of Respondents Percentage (%)

200ml 35 35
500 ml 25 25
600 ml 20 20
1000 ml 10 10
1500 ml 8 8
2000ml 12 12

Inference:
1. 35% 0f the consumers prefers 200 ml.
2. 8% of the consumers prefer 1500ml.

Chart 8.3

PREFERENCE OF PACKAGES
 37

40
35

30
25

20

15
10

0
200ml 500ml 600ml 1000ml 1500ml 2000ml

Table8.4
OCCASIONS OF PURCHASE

Occasions of No of Respondents Percentage (%)

Purchase
Traveling 45 45
Function 20 20
Accommodation in 30 30
Hotels.
Daily usage 5 5
Total 100 100

Inference:
1. 41% of the customers prefer to buy on occasions of Travelers.
2. 5% of the customers are preferred to buy on the occasion of
daily usage.

Chart 8.4
 38

OCCASIONS OF PURCHASE

Travelers

Function

Accommodation
in Hotels
Daily Usage

Table8.5

SATISFACTORY LEVELOF SEREVICE PROVIDED BY

DISTRIBUTORS

Satisfactory level No of Respondents Percentage (%)

Highly Satisfied 12 12
Satisfied 45 45
O.k. 15 15
Dissatisfied 18 18
Highly Dissatisfied 10 10
Total 100 100

Inference:
1. 69 % of the customers are satisfied service provided by the
distributors.
2. 18% of the customers are dissatisfied.

Chart8.5
 39

SATISFACTORY LEVEL OF SERVICE PROVIDED BY

DISTRIBUTORS

50 45%
45
40
35
Percentage

30
25
20 15% 18%
15 12%
10%
10
5
0
Highly Satisfied O.k. Dissatisfied Highly
Satisfied Dissatisfied
Satisfactory level

Table 8.6

MODE OF PAYMENT

Mode of Payments No of Respondents Percentage (%)

Cash 74 74
Credit 26 26
Total 100 100

Inference:
1. 74% of the customer’s mode of payment is cash.
2. 26% of the customer’s mode is credit.

Chart 8.6

MODE OF PAYMENT
 40

250

200

Percentage 74%
150

100
26%
50

0
Cash Credit Total
Mode of Payment

Table 8.7

PRODUCT AT RIGHT TIME

Opinion No of Respondents Percentage (%)

Yes 65 65
No 35 35
Total 100 100

Inference:
1. 65% of the consumers are getting the product at the right time.
2. 35% of the consumers are not getting the product at the right time.

Chart 8.7

PRODUCT AT RIGHT TIME

 41

250

200

Percentage
150 65%

100
35%

50

0
Yes No Total
Product at right time

Table 8.8

TYPEOF CUSTOMER

Type No of Respondents Percentage (%)

Travelers 18 36
Family Members 8 16
Foreigners 12 24
Hotels 10 10
Enterprises 2 2
Total 50 100

Inference:
1. 18% of the respondents are travelers.
2. 2% of the respondents are Enterprises.

Chart 8.8

TYPEOF CUSTOMER
 42

50

40

30

20

10

0
Travelers Family Foreigners Hotels Enterprises
Mem

Table 8.9

BRAND KNOWLEDGE SOURCE FOR CONSUMER TO BUY

Knowledge Through No of Respondents Percentage (%)

Reasonable price 10 20
Quality 12 24
Advertisement 15 30
Availability 10 20
Promotional 3 6
Schemes
Total 50 100

Inference:
1. 30% of the consumer likes quality of packaged Soft drinks.
2. 6% of the consumers like availability of packaged Soft drinks.

Chart 8.9

BRAND KNOWLEDGE SOURCE FOR CONSUMER TO BUY

 43

70
60
50
40
30
20
10
0

y
t
y

ch
pr

en

ilit
lit

lS
le

m
ua

ib

na
nb

se

la
Q

io
ai
so

rti

Av

ot
Re

ve

om
Ad

Pr

Table 8.10

FACTORS STIMULATES TO PURCHASE FROM COMPANY

Factors No of Respondents Percentage (%)

Price 8 16
Quality 36 72
Delivery 0 0
Service 6 12
Total 50 100

Inference:
1. 72% of the distributors purchase for quality.
2. 12% of the distributors purchase for service.

Table 8.10

FACTORS STIMULATES TO PURCHASE FROM COMPANY

 44

120 72%

100

Percentage 80

60

40
16%
12%
20
0%
0
Price Quality Delivery Sevice
Factors

Table 8.11

SATISFACTORY LEVEL OF DELIVERY PROVIDED BY THE

COMPANY

Satisfactory level No of Respondents Percentage (%)

Highly Satisfied 10 20
Satisfied 15 30
O.k. 14 28
Dissatisfied 9 18
Highly Dissatisfied 2 4
Total 100 100

Inference:
1. 30% of the distributors are satisfied with delivery provided by the
company.
2. 18% of the distributors are dissatisfied with delivery provided by
the company.

Chart 8.11
 45

SATISFACTORY LEVEL OF DELIVERY PROVIDED BY THE

COMPANY

30% 28%
20% 18%

4%

Highly Satisfied O.k. Dissatisfied Highly

Satisfied Dissatisfied
Satisfactory Level

Table 8.12

SATISFACTION IN DEALING PACKAGED SOFT DRINKS

Satisfactory level No of Respondents Percentage (%)

Highly Satisfied 1 2
Satisfied 17 34
O.k. 27 54
Dissatisfied 5 10
Highly Dissatisfied 0 0
Total 50 100

Inference:
1. 34% of the distributors are satisfied.
2. 10% of the distributors are dissatisfied.

Chart 8.12

SATISFACTION IN DEALING PACKAGED SOFT DRINKS

 46

90 54%
80
70
60 34%
50
Percentage
40
30 10%
20
2% 0%
10
0
Highly O.k. Highly
Satisfied Dissatisfied
Satisfactory Level

Table 8.13

SATISFACTION IN BRAND SERVICE

Brands No of Respondents Percentage

(%)
Pepsi Co (Pepsi-cola flavor, 25 50
7Up, Mirinda (lemon,
orange), Slice, Moutain dew,
Tropicana…)
Coca Cola (Coca Cola, 22 44
Sprite, Mazaa, Franta….)
Others 3 6
Total 50 100

Inference:
1.20% of the distributors are satisfied with Pepsi Co.
2. 2% of the distributors are satisfied with others.

Chart 8.13

SATISFACTION IN BRAND SERVICE

 47

50
45
40
35
30
25
20
15
10
5
0
Pepsi Co Coca Cola Others

Table 8.14

COMMUNICATION WITH COMPANY

Effectiveness No of Respondents Percentage (%)

Not Effective 12 24
Effective 36 72
Very Effective 2 4
Total 50 100

Inference:
1. 72 % of distributor’s communication with company is effective.
2. 24% of the distributors’ communication with company is not
effective.

Chart 8.14

COMMUNICATION WITH COMPANY

 48

Percentage (%)

80 72%
70
60
Percentage

50
40
30 24%

20
10 4%
0
Not Effective Effective Very Effective
Effectiveness

Table 8.15

CREDIT FACILITY

Credit facility No of Respondents Percentage (%)

Yes 24 48
No 26 52
Total 50 100

Inference:
1. 52% of the distributors didn’t get credit facility.
2. 48% of the distributors got credit facility.

Chart 8.15

CREDIT FACILITY
 49

53
52%
52

51
Percentage
50

49
48%
48

47

46
Yes No
Credit Facility

ANALYSIS OF SATISFACTORY LEVEL OF THE SERVICE

PROVIDED BY THE DISTRIBUTORS { CHI-SQUARE}

TABLE 8.16

Satisfactory Level No of respondents

Highly satisfied 12
Satisfied 45
ok 14
Dissatisfied 18
Highly dissatisfied 10

CHI SQUARE TEST

NULL HYPOTHESIS:
 50

Ho: There is no significance difference in satisfactory level of

delivery of product provided by the distributors.
ALTERNATIVE HYPOTHESIS:
H1: There is significance difference in satisfactory level of
delivery of product provided by the distributors.

TABLE 8.16.1
CHI-SQUARE TABLE
Oi Ei (Oi-Ei)2 / Ei
12 20 3.2
45 20 31.25
15 20 1.25
18 20 0.2
10 20 5

Ei = (12+45+15+18+10)/5 = 20

Calculated value = ∑ (Oi-Ei)2 / Ei = 3.2+31.5+1.25+0.2+5= 40.9

Degrees of freedom = n-1 = 5-1 = 4

Tabulated value for 4 degrees of freedom at 5% level of significance is

9.488

INFERENCE
The calculated value is less than the table value, therefore Ho is
accepted
The satisfactory level of delivery of service provided by the
distributors is same
 51

ANALYSIS OF SATISFACTORY LEVEL OF DELIVERY OF

PRODUCT PROVIDED BY COMPANY {USING CHI-SQUARE}

TABLE 8.17

Satisfactory level No of respondent

Highly satisfied 10
Satisfied 15
ok 14
Dissatisfied /Highly 11
dissatisfied
Total 50

CHI SQUARE TEST

NULL HYPOTHESIS:
Ho: There is no significance difference in satisfactory level of the
delivery of product provided by the company.
 52

ALTERNATIVE HYPOTHESIS:
H1: There is significance difference in satisfactory level of the
delivery of product provided by the company.

TABLE 8.17.1
CHI-SQUARE TABLE
Oi Ei (Oi-Ei)2/Ei
10 12.5 0.5
15 12.5 0.5
14 12.5 0.18
11 12.5 0.18

Ei = (10+15+14+11)/4 = 12.5

Calculated value = ∑ (Oi-Ei)2 / Ei = 0.5+0.5+).18+0.18 = 1.36

Degrees of freedom = n-1 = 4-1 = 3

Tabulated value for 3 degrees of freedom at 5% level of significance is

7.815

INFERENCE
The calculated value is less than the table value, therefore Ho is
accepted.
The satisfactory level of delivery of product provided by the
company is same.
 53

Table 8.18
TABLE SHOWING THE RANK FOR FEATURES PREFRRED BY
THE
CONSUMERS

RANK 1 2 3 4

FEATURES
QUALITY 42 30 13 15
PRICE 15 20 39 26
SIZE 15 21 26 38
AVAILABILITY 28 29 22 21

Table 8.18.1

TO FIND RANK FEATURES RANKED BY CONSUMERS

(USING WEIGHTED AVERAGE METHOD)

RANK WEIGHTS PRICE QUALITY SIZE AVAILABILITY

X1 X2 WX2 X3 WX3 X4 WX4

WX1
1 4 42 15 60 15 60 28 112
168
2 3 30 90 20 60 21 63 29 58
3 2 13 26 39 78 26 52 22 44
4 1 15 15 26 26 38 38 21 28
TOTAL 100 299 100 100 100 235
 54

224 213
C.W 2.99 2.24 2.13 2.35
RANK 1 3 4 2

Inference:

From the above table it inferred that consumer’s ranks quality as

first followed by availability.

Table 8.18.2

TABLE SHOWING THE RANK OF FEATURES AFTER USING

WEIGHTED AVERAGE METHOD

FEATURES WEIGHTED RANK

AVERAGE

QUALITY 2.99 1

AVAILABILITY
2.35 2
PRICE

SIZE 2.24 3

2.13 4
 55

Table 8.19

TABLE SHOWING THE RANK FOR FEATURES PREFRRED BY

THE
DISTRIBUTORS

RANK 1 2 3 4

FEATURES
QUALITY 18 18 9 5
PRICE 13 8 15 14
SIZE 3 12 13 22
AVAILABILITY 16 12 13 9

Table 8.19.1

TO FIND RANK FEATURES RANKED BY DISTRIBUTORS

(USING WEIGHTED AVERAGE METHOD

RANK WEIGHTS PRICE QUALITY SIZE AVAILABILITY

X1 X2 WX2 X3 WX3 X4 WX4

WX1
1 4 18 72 13 52 3 12 16 64
2 3 18 54 8 24 12 36 12 36
3 2 9 18 15 30 13 26 13 26
4 1 5 5 14 14 22 22 9 9
TOTAL 50 149 50 50 98 50 139

120
C.W 2.98 2.4 1.96 2.7
RANK 1 3 4 2
 56

Inference:
From the above table it inferred that distributor’s ranks quality as
first followed by availability.

Table 8.19.2

TABLE SHOWING THE RANK OF FEATURES AFTER USING

WEIGHTED AVERAGE METHOD

FEATURES WEIGHTED RANK

AVERAGE

QUALITY 2.98 1

AVAILABILITY

2.7 2

PRICE

SIZE 2.4 3

1.96 4
 57

Table 8.20

TO FIND THE RANK CORRELATION BETWEEN THE RANKS

GIVEN BY CONSUMERS AND DISTRBUTORS FOR FEATURES

RANK RANKING BY RANKING BY

CONSUMERS DISTRIBUTORS D2 = (R1-

FEATURES (R1) (R2) R2) 2

QUALITY 2.99 2.98 0.0001
AVAILABILITY 2.35 2.7 0.1225
PRICE 2.24 2.4 0.0256
SIZE 2.13 1.96 0.289

D2 = ∑ (R1-R2) 2

= 0.18

R= 1- 6{∑D2 + (1/12) (m3-m) + (1/12) (m3-m) + ……………

 58

N3 - N

= 0.884

= 0.9

Inference: Rank correlation coefficient is positive and nearer to 1.

So there is higher positive correlation between the ranking given by

consumer and distributors.

This shows that the features preferred by the consumers and

distributors are same.

CHAPTER 9

FINDINGS OF THE STUDY

From the analysis it is found that the current market situation

for packaged Soft drinks is highly competitive, as there exits many

market players. It is highly crucial for manufacture and to stand to be

this distinguish and differentiate the product from that of other brands

on the value addition and the competitive product future.

The following are some of the findings of the study.

 Majority of the consumers are travelers.

 Most of the consumers are using PepsiCo Product.

 455 of the consumers are satisfied with delivery provided by the

distributors.

 Most of the consumer’s mode of payment is cash.

 Travelers are the majority customers to packaged Soft drinks.

 59

 Most of the consumers knowledge source buy is advertisement.

 Most of distributor’s factors to buy packaged Soft drinks are

quality.

 345 of the distributors are satisfied with dealing packaged Soft

drinks.

 45% of distributors are satisfied with PepsiCo Product.

CHAPTER 10

SUGGESTIONS

Based on the analyzed results and the general observations

made during the interaction with the respondents during the collection

of data the following suggestions are offered for toning up the

distribution channel.

The company should build a proper relationship with

retailers because they can definitely influence brand position because

distribution network is very important for the success of the product.

It is suggested that the company should concentrated on the

brand image side because most of the consumer are aware of the

products mostly through brand image.

 60

Since most of the consumers are given more weight age and

the products feature is quality. So the company can provide the product

to the consumer with good quality.

CHAPTER 11

CONCLUSION

This study on distribution channel of packaged soft drinks is

a study undertakes with care and special efforts have been taken to

make the study as specific as possible. The methodology typical proof

to show that the study is scientific.

From this study it is clear that the marketing effort should be

focused on retailer development to enhance the sale to appreciable

level.

The consumer prefers a brand with good quality. The

consumer is also giving importance to brand image.

 61

ANNEXURE I

INTERVIEW SCHEDULE FOR CONSUMERS

1. Name:

2. Address: -------------------------------------
------------------------------------
3. Which type of customer you are?

(a). Travelers (b). Family members (c). Foreigners (d).

Hotels
(e). Enterprises (f). Hospital (g). Others

4. Please name the brand of packaged Soft drinks that comes to

your mind.

S.No Brand names

 62

5. Which package would you prefer?

Packages 
200ml
500ml
600ml
1000ml
1500ml
2000ml

6. How many packages do you buy per month?

(a) Below 3 (b) 4 (c) 5 (d) 6 (e) above 6

7. In which occasion would you buy the packaged Soft drinks?

(a) Traveling (b) Function (c) Hospitalized Persons (d)

Accommodation in hotels

(e) Daily usage.

8. What are the features that you prefer while purchasing the
packaged Soft drinks from the distributor?

Features Rank
Quality
Price
Size
Availability
Others
 63

9. Are you getting the product at the right time from your
distributor?
(a) Yes (b) No

10. Satisfactory level of the service provided by the distributor?

a) Highly satisfied (b) satisfied (c) ok (d) dissatisfied (e) highly

dissatisfied

11. Do you get any discount/offer for regular purchase?

(a) Yes (b) No

12. What is your mode of payment?

Cash---------- Credit---------

13. If credit then how many days will you take to make the
payment-----------------

14. Factors to be improve

Factors
 64

INTERVIEW
SCHEDULE FOR DISTRIBUTORS AND RETAILERS

1. Name and address of the outlet:

-------------------------------------------------------------------
------------------------------------------------------------------
--------------------------------------------------------------------

2. Type of customer:

(a). Travelers (b). Family members (c). Foreigners (d). Hotels

(e).Enterprises
(f). Hospital (g). Others

3. In your opinion what could be the reason for a customer to buy

packaging Soft drinks?

(a) Reasonable price (b) Quality (c) Advertisement (d)

Availability

(e) Promotional schemes.

4. Which factor stimulates to purchase the product from the

company?

(a) Price (b). Quality (c). Delivery (d). Service

5. Satisfactory level of delivery provided by the company?

 65

(a) Highly satisfied (b) Satisfied (c) Ok (d) Dissatisfied (e) Highly
dissatisfied

6. Is your company provides any offer/ discount?

(a). Yes (b). No

7. Please indicate your level of satisfaction in dealing packaged Soft

drinks.

(a) Highly satisfied (b) Satisfied (c ok (d) Dissatisfied (e) highly

dissatisfied

8. What are the features that you prefer while purchasing the
packaged Soft drinks from the company?

Features Ran
k
Quality
Price
Size
Availability
Others

9. From which brand service are you satisfied?

Brand names 
Pepsi
Coca Cola
Others
 66

10. How about your communication system to your company?

(a) Not effective (b) effective (c) very effective

11. Whether the credit facility is provided by the company?

(a) Yes (b) No

12. Factors to be improve

Factors
 67

ANNEXURE II

BIBLIOGRAPHY

BOOKS

1. Philip Kotler (2003), ‘Marketing Management’, Published by

Pearson Education (Singapore) Pvt.Ltd, 11th Edition.

2. Kothari C.R., Research methodology, published by New Age

International (p) Ltd.,

2nd Edition, 1985.

2. S.P. Gupta and M.P Gupta (!989), ‘Business Statistics,

Published by Sultan Chand & Sons, 7th Edition, 1989

WEBSITE

1. www.PepsiCo.com

.
68