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Amity International Business School
INTERNATIONAL BUSINESS
SUBMITTED BY:
BHANU PRATAP SINGH
MBA-IB (2007-2009)
Roll No. : A1802007F16
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ACKNOWLEDGEMENT
Signature
(Student)
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CERTIFICATE OF ORIGIN
Signature Signature
(Faculty Guide) (Student)
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Company Certificate
This is to certify that Mr. Bhanu Pratap Singh , student of Amity International
Business School, Noida , undertook a project on “ SHIFTING CONSUMER
CHOICE TOWARDS HEALTHIER DRINKS OF PEPSICO “ at
[VARUN BEVERAGES ] , PEPSI bottling plant , (Greater Noida , Noida
Depo. ) from 7th MAY 2008 to 7th JULY 2008.
Mr. BHANU PRATAP SINGH has successfully completed the project under
the guidance of Mr. SHARAD VATSS (MKt Development Manager). He is a
sincere and hard-working student with pleasant manners.
CONTENTS
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PART – A
INTRODUCTION
PepsiCo’s mission
Shareholders
Corporate Citizenship
PepsiCo Headquarters
ABOUT THE PEPSICO FAMILY
Bottling History of Pepsico
Stock of Pepsico
PART – B
INDUSTRY PROFILE
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Distributor
Retailer
PART – C
1-Product Information
Orange Juice
Grapefruit Juice
Orange Juice Blends
Fiber
Low Acid
Healthy Heart
Healthy Kids
Antioxidant Advantage
1 d. Tropicana Organics
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PART – D
RESEARCH METHODOLOGY
a. Objective
b. Methodology
c. Analysis of Data
d. Findings
e. Limitation
f. Suggestion
g. Conclusion
PART - E
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PART –F
a. Limitations
b. Suggestions
c. Conclusion
d. S. W. O. T. Analysis
Strength,
Weaknesses
Opportunities
Threats
PART – G
a. Learning Experience
b. BIBILIOGRAPHY
c. Case Study
d. Synopsis
Company Overview
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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 The 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
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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 Amsterdam, Chicago and Swiss stock exchanges.
PepsiCo has consistently paid cash dividends since the
corporation was founded.
Corporate Citizenship
At PepsiCo, we believe that as a corporate citizen, we have a
responsibility to contribute to the quality of life in our
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, economic -- creating a better tomorrow than
today.”
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PepsiCo Headquarters
(PepsiCo World Headquarters, Purchase, New York)
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PepsiCo's snack food operations had their start in 1932 when two
separate events took place. In San Antonio, Texas, Elmer Doolin bought
the recipe for an unknown food product – a corn chip – and started an
entirely new industry. The product was Fritos brand corn chips, and his
firm became the Frito Company.
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PEPSICO INTERNATIONAL
Pepsi-Cola began selling its products outside the United States and
Canada in the mid-1930s, Operations grew rapidly beginning in the
1950s. Today, PepsiCo beverages are available in more than 200
countries and territories. Brands include Aquafina, Gatorade and
Tropicana.
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The first major acquisition of the company was Aunt Jemima Mills
Company in 1926, which is today the leading manufacturer of
pancake mixes and syrup. Gatorade was acquired in 1983.
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Company History:
The Pepsi Bottling Group, Inc. (PBG) is the world's largest manufacturer,
seller, and distributor of Pepsi-Cola beverages. Separated from parent PepsiCo, Inc. in
1999, it accounted that year for 55 percent of Pepsi-Cola beverages sold in the United
States and 32 percent worldwide. Pepsi Bottling Group's strongest presence is in the
United States and Canada, but it also holds exclusive Pepsi franchises in Greece, Russia,
and Spain as well as in most U.S. states and Canadian provinces. The company delivers
its products directly to stores without using wholesalers or other middlemen. In addition
to its extensive production and distribution facilities, PBG leases and operates about
20,000 vehicles and owns more than 1.1 million soft drink dispensing and vending
machines. PepsiCo holds a controlling interest in the firm.
In March 1999, PepsiCo spun off its soft drink bottling and distribution operations--what
was known within the organization as Pepsi COBO (company-owned bottling
operations). The Pepsi Bottling Group Inc. In the fifth largest initial public offering in
U.S. stock market history, PepsiCo sold 100 million shares at $23 a share. Retaining a 40
percent interest in the newly public company, PepsiCo placed two senior officials on its
board of directors. In addition, PBG was required to submit its annual operating plan to
PepsiCo for its approval and was using only PepsiCo-approved vendors. In return, PBG
was expecting a high level of funded marketing support from PepsiCo.
Pepsi Bottling Group was focusing on enhancing the one-third of its business defined as
'cold drink' or single serve. This profitable area had been growing rapidly as consumers
increased their snacking. PBG doubled its spending on new coolers and vending
machines between 1997 and 1999, adding about 175,000 new pieces of equipment. The
company also was acquiring more bottlers in areas primarily contiguous to its existing
operations, in order to realize cost savings in raw materials, manufacturing, warehousing,
logistics, and general administration. Weatherup, who had been president and chief
executive officer of Pepsi-Cola North America (1990-96) and chairman and CEO of its
parent, Pepsi-Cola Co. (1996-99), and who then became the first chairman and CEO of
Pepsi Bottling Group, said the company intended to grow 1 to 2 percent a year by
acquisitions, averaging six to ten deals a year.
One pressing problem was to increase Pepsi Bottling Group's operations outside North
America, which were accounting for only 8 percent of total revenues. Russian operations
suffered a heavy blow in 1998, when the value of the ruble collapsed, leading to a $212
million restructuring asset writedown. But in its first year as an independent company,
PBG registered $7.51 billion in revenues--a 13 percent gain over the previous year. Net
income was $118 million. These figures improved to $7.98 billion and $229 million,
respectively, in 2000.
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Pepsi-Cola Bottling Group had 67 production facilities (60 owned) and 320 distribution
facilities (258 owned) at the end of 2000 in parts of 41 states, the District of Columbia,
eight Canadian provinces, Spain, Greece, and Russia. PBG's brands included Pepsi Cola,
Diet Pepsi, Mountain Dew, Lipton Brisk, Lipton's Iced Tea, Pepsi One, Slice, Mug,
Aquafina (bottled water), Starbucks Frappaccino, Fruitworks, and, outside the United
States, 7UP, Pepsi Max, Mirinda, and Kas. PBG also had the right to manufacture, sell,
and distribute soft drink products of other companies in some territories. About 80
percent of PBG's volume in 2000 was sold in the United States. In 1999 Pepsi-Cola
brands held about 29 percent of the carbonated soft drink market in the United States,
compared with 40 percent for Coca-Cola Co. brands. The long-term debt was $3.27
billion at the end of 1999. PepsiCo owned 37.9 percent of PBG's outstanding common
stock in February 2001. It also held all of the outstanding Class B stock.
By the terms of Pepsi Bottling Group's master syrup agreement with PepsiCo, PBG had
the exclusive right to manufacture, sell, and distribute fountain syrup to local customers
in its territories and to act as a manufacturing and delivery agent for national accounts
within its territories that specifically requested direct delivery without using a middleman.
Also under this agreement, PBG had the exclusive right to service fountain equipment for
all of the national account customers within its territories. PBG was purchasing the
concentrates to
manufacture PepsiCo's soft drink products. Other raw materials were generally being
purchased from multiple suppliers, but with PepsiCo acting as the agent.
By the terms of Pepsi Bottling Group's master bottling agreement with PepsiCo
authorizing PBG to manufacture, package, sell, and distribute the cola beverages bearing
the Pepsi-Cola and Pepsi trademarks, PBG was required to pay the concentrate prices
determined by PepsiCo and to deploy the types of containers authorized by PepsiCo.
PepsiCo also had the right to approve PBG's annually presented three-year financial plan
but did not have the right to withhold approval unreasonably. Failure to carry out the
approved plan in all material respects could result in a termination of the agreement. PBG
had the right to determine the prices at which it sold its products. Although PBG had an
extensive distribution system in the United States and Canada, in Russia, Spain, and
Greece, it was using a combination of direct store distribution and distribution through
wholesalers.
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PepsiCo In India
PepsiCo entered India in 1989 and has grown to become one of the country’s
leading food and beverage companies. One of the largest multinational investors in the
country, PepsiCo has established a business which aims to serve the long term dynamic
needs of consumers in India.
PepsiCo India and its partners have invested more than U.S.$700 million since the
company was established in the country. PepsiCo provides direct employment to 4,000
people and indirect employment to 60,000 people including suppliers and distributors.
PepsiCo nourishes consumers with a range of products from treats to healthy eats, that
deliver joy as well as nutrition and always, good taste. PepsiCo India’s expansive
portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew,
in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages
such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana100% fruit
juices, and juice based drinks – Tropicana Nectars, Tropicana Twister and Slice. Local
brands – Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of
brands.
PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty snack market and
all Frito Lay products are free of trans-fat and MSG. It manufactures Lay’s Potato Chips,
Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and
Lehar brands. The company’s high fibre breakfast cereal, Quaker Oats, and low fat and
roasted snack options enhance the healthful choices available to consumers. Frito Lay’s
core products, Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to
significantly reduce saturated fats and all of its products contain voluntary nutritional
labeling on their packets.
The group has built an expansive beverage and foods business. To support its operations,
PepsiCo has 43 bottling plants in India, of which 15 are company owned and 28 are
franchisee owned. In addition to this, PepsiCo’s Frito Lay foods division has 3 state-of-
the-art plants. PepsiCo’s business is based on its sustainability vision of making
tomorrow better than today. PepsiCo’s commitment to living by this vision every day is
visible in its contribution to the country, consumers.
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Performance with Purpose articulates PepsiCo India's belief that its businesses
are intrinsically connected to the communities and world that surrounds it. Performance
with Purpose means delivering superior financial performance at the same time as we
improve the world.
To deliver on this commitment, PepsiCo India will build on the incredibly strong
foundation of achievement and scale up its initiatives while focusing on the following 4
critical areas that have a business link and where we believe that we can have the most
impact .
• PepsiCo India continues to replenish water and expand its expertise in water
conservation.
• PepsiCo India’s Agri-partnerships with farmers help farmers across the country
earn more
• PepsiCo India continues to convert Waste to Wealth, to make our cities cleaner.
This award winning initiative will establish Zero Solid Waste centres in districts
throughout the country
PepsiCo gained entry to India in 1988 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.
Others claim that 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 lifted, with Pepsi
arriving on the market shortly afterwards. These controversies are a reminder of "India's
sometimes acrimonious relationship with huge multinational companies." Indeed, some
argue that PepsiCo and The Coca-Cola Company have "been major targets in part
because they are well-known foreign companies that draw plenty of attention."
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found that the Indian-produced Pepsi's soft drink products had 36 times the level of
pesticide residues permitted under European Union regulations; Coca Cola's 30 times.
CSE said it had tested the same products in the US and found no such residues. However,
this was the European standard for water, not for other drinks. No law bans the presence
of pesticides in drinks in India.
The Coca-Cola Company and PepsiCo angrily denied allegations that their
products manufactured in India contained toxin levels far above the norms permitted in
the developed world. But an Indian parliamentary committee, in 2004, backed up CSE's
findings and a government-appointed committee, is now trying to develop the world's
first pesticides standards for soft drinks. Coke and PepsiCo opposed the move, arguing
that lab tests aren't reliable enough to detect minute traces of pesticides in complex
drinks. On December 7, 2004, India's Supreme Court ruled that both PepsiCo and
competitor The Coca-Cola Company must label all cans and bottles of the respective soft
drinks with a consumer warning after tests showed unacceptable levels of residual
pesticides . Both companies continue to maintain that their products meet all international
safety standards without yet implementing the Supreme Court ruling. As of 2005, The
Coca-Cola Company and PepsiCo together hold 95% market share of soft-drink sales in
India. PepsiCo has also been alleged to practice "water piracy" due to its role in
exploitation of ground water resources resulting in scarcity of drinking water for the
natives of Puthussery panchayat in the Palakkad district in Kerala, India. Local residents
have been pressuring the government to close down the PepsiCo unit in the village.
In 2006, the CSE again found that soda drinks, including both Pepsi and
Coca-Cola, had high levels of pesticides in their drinks. Both PepsiCo and The Coca-Cola
Company maintain that their drinks are safe for consumption and have published
newspaper advertisements that say pesticide levels in their products are less than those in
other foods such as tea, fruit and dairy products. In the Indian state of Kerala, sale and
production of Pepsi-Cola, along with other soft drinks, was banned by the state
government in 2006[, but this was reversed by the Kerala High Court merely a month
later. Five other Indian states have announced partial bans on the drinks in schools,
colleges and hospitals.
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Ravi K Jaipuria (RKJ), one of PepsiCo India’s largest franchisee bottler, says that
despite a slump in Pepsi sales, he is going ahead with capacity expansion plans with an
investment of Rs 100 crore over a period of next six months.
The investment will see setting up of two new plants through Varun Beverages (a bottling
company of RKJ and part of the Rs 1,200-crore Jaipuria Group) at Bhiwadi and Jaipur in
Rajasthan and also a foray into the manufacture of crowns and plastic shells for glass
bottles, RKJ chairman Ravi Jaipuria told FE. One of the largest franchisee bottlers for
Pepsi, the Jaipuria group collectively forms about 45 per cent of Pepsi’s total franchisee
business.
According to Varun Beverages president-finance Mr RP Gandhi, the company is
spending Rs 60 crore to set up a new bottling plant at Bhiwadi, Rajasthan, with an
installed capacity of 80 lakh cases. A 15-acre plot has already been acquired by the
company and the plant—commissioned last month—is expected to come up by March
2004.
Additionally, the company plans to raise capacities at its Kosi plant in UP by 30
lakh cases, pumping in an investment of Rs 15 crore.
As part of its backward integration venture, Mr Jaipuria is setting up a new plant for
manufacture of crowns and plastic shells at Ajmer Road, Jaipur, with an investment of Rs
25 crore.
While admitting that Pepsi’s sales were hurt post-cola contamination controversy, Mr
Jaipuria, however, maintained that “it was difficult to assess whether the slump was due
to the controversy or a lean monsoon. Weather has played a spoilt sport, too, and the
season has been dull so we can’t really say whether sales have been hit by the pesticides
issue alone,” he said, adding that otherwise 2003 has been an excellent year for soft
drinks sales.
With the new initiatives, the RKJ group which operates through two companies—Varun
Beverages and Devyani Beverages—hopes to achieve a sales turnover of Rs 600 crore by
the end of 2004, and Rs 720 crore by 2004. The company posted a sales turnover of Rs
500 crore in 2002.
The RKJ group led by Mr Jaipuria has seven Pepsi bottling plants spread around the
country in Greater Noida and Kosi (UP), Alwar and Jodhpur (Rajasthan), Goa, Dharwar
(Karnataka) and Kathmandu. The total capacity at these units is about 220 lakh cases per
year or 5,000 bottles per minute.
Besides the soft drinks business, RKJ is also firmly entrenched in the foods and education
business. Part of the Rs 1,200-crore Jaipuria Group, which has interests in diverse fields
including Pepsi, Pizza Hut (he’s the sole franchisee of Pizza Hut in North India) and DPS
Schools, Mr Ravi Jaipuria has more recently set his eyes on the emerging dairy market.
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He has formed a joint venture company with brother Mr CK Jaipuria to bring in the
French dairy major Candia into the country. It recently launched a range of ice-creams
branded Cream Bell in the country.
Apart from Mr Ravi Jaipuria, Mr CK Jaipuria is Pepsi’s largest franchisee bottler and
owns Pepsi bottling units in Jammu, Vizag, Guntur and Delhi.
RA RA RA RA
CE CE CE
ADC AVC TC
MDM
UM
EXECUTIVE DIRECTOR
Before, we really go into individuals role and responsibilities we must be first clear about
hierarchy and reporting system which is being shown through under given chart.
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As per the client RA is the front line person of sales organization. As per chart.
PART – B
INDUSTRY PROFILE
F.M.C.G. Concept:
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the consumers at a regular interval. Some of the prime activities of FMCG industry are
selling, marketing, financing, purchasing, etc. The industry also engaged in operations,
supply chain, production and general management.
Some common FMCG product categories include food and dairy products, glassware,
paper products, pharmaceuticals, consumer electronics, packaged food products, plastic
goods, printing and stationery, household products, photography, drinks etc. and some of
the examples of FMCG products are coffee, tea, dry cells, greeting cards, gifts,
detergents, tobacco and cigarettes, watches, soaps etc.
Some of the merits of FMCG industry, which made this industry as a potential one are
low operational cost, strong distribution networks, presence of renowned FMCG
companies. Population growth is another factor which is responsible behind the success
of this industry.
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- Household care fabric wash including laundry soaps and synthetic detergents;
household cleaners, such as dish/utensil cleaners, floor cleaners, toilet cleaners, air
fresheners, insecticides and mosquito repellents, metal polish and furniture polish;
FMCG in 2006
The performance of the industry was inconsistent in terms of sales and growth for over 4
years. The investors in the sector were not gainers at par with other booming sectors.
After two years of sinking performance of FMCG sector, the year 2005 has witnessed the
FMCGs demand growing. Strong growth was seen across various segments in FY06.
With the rise in disposable income and the economy in good health, the urban consumers
continued with their shopping spree.
- Food and health beverages, branded flour, branded sugarcane, bakery products such as
bread, biscuits, etc., milk and dairy products, beverages such as tea, coffee, juices, bottled
water etc, snack food, chocolates, etc.
Strengths:
1. Low operational costs
2. Presence of established distribution networks in both urban and rural areas
3. Presence of well-known brands in FMCG sector
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Weaknesses:
1. Lower scope of investing in technology and achieving economies of scale, especially
in small sectors
2. Low exports levels
3. "Me-too" products, which illegally mimic the labels of the established brands. These
products narrow the scope of FMCG products in rural and semi-urban market.
Opportunities:
1. Untapped rural market
2. Rising income levels, i.e. increase in purchasing power of consumers
3. Large domestic market- a population of over one billion.
4. Export potential
5. High consumer goods spending
Threats:
1. Removal of import restrictions resulting in replacing of domestic brands
2. Slowdown in rural demand
Tax and regulatory structure
F.M.C.G. in India.
The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector
in the economy. A well-established distribution network, intense competition between the
organized and unorganized segments characterize the sector. FMCG Sector is expected to
grow by over 60% by 2010. That will translate into an annual growth of 10% over a 5-
year period. It has been estimated that FMCG sector will rise from around Rs 56,500
crores in 2005 to Rs 92,100 crores in 2010. Hair care, household care, male grooming,
female hygiene, and the chocolates and confectionery categories are estimated to be the
fastest growing segments, says an HSBC report. Though the sector witnessed a slower
growth in 2002-2004, it has been able to make a fine recovery since then. For example,
Hindustan Levers Limited (HLL) has shown a healthy growth in the last quarter. An
estimated double-digit growth over the next few years shows that the good times are
likely to continue.
Growth Prospects
With the presence of 12.2% of the world population in the villages of India, the Indian
rural FMCG market is something no one can overlook. Increased focus on farm sector
will boost rural incomes, hence providing better growth prospects to the FMCG
companies. Better infrastructure facilities will improve their supply chain. FMCG sector
is also likely to benefit from growing demand in the market. Because of the low per
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capita consumption for almost all the products in the country, FMCG companies have
immense possibilities for growth. And if the companies are able to change the mindset of
the consumers, i.e. if they are able to take the consumers to branded products and offer
new generation products, they would be able to generate higher growth in the near future.
It is expected that the rural income will rise in 2007, boosting purchasing power in the
countryside. However, the demand in urban areas would be the key growth driver over
the long term. Also, increase in the urban population, along with increase in income
levels and the availability of new categories, would help the urban areas maintain their
position in terms of consumption. At present, urban India accounts for 66% of total
FMCG consumption, with rural India accounting for the remaining 34%. However, rural
India accounts for more than 40% consumption in major FMCG categories such as
personal care, fabric care, and hot beverages. In urban areas, home and personal care
category, including skin care, household care and feminine hy it is estimated that
processed foods, bakery, and dairy are long-term growth categories in both rural and
urban areas. giene, will keep growing at relatively attractive rates. Within the foods
segment
Indian Competitiveness and Comparison with the World Markets
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Low cost labor gives India a competitive advantage. India's labor cost is amongst the
lowest in the world, after China & Indonesia. Low labor costs give the advantage of low
cost of production. Many MNC's have established their plants in India to outsource for
domestic and export markets.
S. NO. Companies
1. Hindustan Unilever Ltd.
ITC (Indian Tobacco
2.
Company)
3. Nestlé India
4. GCMMF (AMUL)
5. Dabur India
6. Asian Paints (India)
7. Cadbury India
8 Britannia Industries
Procter & Gamble Hygiene and
9.
Health Care
10. Marico Industries
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Tropicana History
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ADVERTISEMENT STRATEGY
The aim of advertising is to bring the advertised the product as well as features, uses and services
to notice of the consumer.
Advertising is any paid form of non-personal presentation or promotion of ideas, goods or
services by an identified sponsor.
Advertising aims at drawing attention to a product. It is the most visible marketing tool. Which
seeks to transmit an effective market from the marketer to a group of individuals. The marketers
paid responding the advertising activity.
Advertising: unlike salesman ship that interacts with buyer face to face is
non-personal. It is directed as a mass audience and not at individuals as in
personal setting.
In modern business as Indian Economy is opening up the competition is hooting up, Coke &
Pepsi have made forced entry in the soft drinks industries. Both have greatly affected the
advertising activities. There the new was cry if the Cola combatants as they continue these bottle
for the Rs. 3000 cr. Soft drink market.
That they have made the right choice. The advertising strategy of Pepsi has always been
aggressive where as the ad of Coke has been slow, artistic and straightforward. The goal of Pepsi
ad has always to attract teenagers as against Coke grave to all consumers’ attention. There have
been three motives of Coke ad
To make it acceptable to all.
Make it available to all arms where it’s required.
To fix up a very moderate and reasonable price.
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DISTRIBUTION CHANNEL
There are two marketing channels that involves in the transfer of product from the
producer to customer. The two marketing channel intermediaries are known as
distributor and retailer.
PepsiCo distribution network had 6 lakhs outlets across the country during Eyoo
which its planning to increase to 7.5 lakhs by Eyoo on the other hand Coca- Cola
had 6.5 lakh outlets across the country in Eyoo which the company is planning to
increase 8 lakh by Eyoo.
Distributor
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Retailers
Retailers are sold particular soft drinks. The sale of B.S.D. depend a lot entirely on
retailers wish for instance if retailers does not keep Pepsi cola and if his shop is at
the prime location then certainly the customer with turn towards other cola drinks
etc. This all goes to prove that retailers are king. So retailer requires special focus
from the company.
PepsiCo not only sell the flavors but also tries to sell the glass bottles and carats to
the retailers. PepsiCo provides affair margin of Rs 24 per carats to the retailers so
that retailers can maintain adequate amount of ready stock and quick rotation of
glass bottle could be facilitated.
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Product Information
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Try Tropicana Pure Premium Sweet Grapefruit, Ruby Red Grapefruit and Golden Grapefruit
100% Juice.
Tropicana Pure Premium® Blends are the perfect balance of fresh tasting,
pure squeezed orange juice, with a splash of flavor.
• Orange Pineapple
• Orange Tangerine
• Orange Strawberry Banana
The newest addition to the Tropicana family, Tropicana Pure Premium with Fiber, can
help your family meet their daily fiber needs!
• A convenient and easy way to incorporate more fiber into your diet, with the fresh-
squeezed taste and quality of Tropicana
• Contains 3 grams of added fiber, the same amount of fiber as a whole orange, in every 8
oz. glass
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Rediscover your favorite part of the morning. Tropicana Pure Premium® Low Acid Orange
Juice is alive with the smooth taste of 100% pure squeezed orange juice, plus all the vitamins
and minerals you expect from Tropicana - with less acidity.
• Reduced acid
• 100% pure squeezed orange juice
• Smooth great taste
• Full day's supply of vitamin C and a good source of calcium
• All of the nutrients of regular orange juice
Tropicana Healthy Heart is the first national orange juice that is an excellent source of Omega-3
EPA & DHA* which help to promote cardiovascular health. In fact, health professionals
recommend eating a variety of foods containing Omega-3 fatty acids as part of a heart healthy
diet. And of course, Healthy Heart maintains that amazing straight-from-the-orange taste of
Tropicana Pure Premium with the natural nutrients found in 100% pure squeezed orange juice.
*Contains 50mg of EPA and DHA combined per serving, which is 30% of the
160mg Daily Value for a combination of EPA and DHA based on statements
from the institute of medicine.
Get your kids' day off to a great start with the natural taste and nutrition of Tropicana Pure
Premium® Healthy Kids Orange Juice. Here is a tasty way for your kids to get the important
vitamins they need. Tropicana Pure Premium® Healthy Kids Orange Juice is specially
formulated with a taste kids love. It has essential vitamins and minerals to support their growing
bodies.
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Tropicana Pure Premium Antioxidant Advantage Orange Juice gives you the essential nutrients
needed to maintain your body's first line of defense- a healthy immune system. In addition to
the nutrients found in 100% pure squeezed orange juice, Antioxidant Advantage contains 3
times the antioxidant nutrient content of regular orange juice* - and that's just one of the many
reasons to enjoy a glass today.
• It's an excellent source of essential antioxidants (vitamin C and E) and selenium to help
protect against free radicals to promote healthy cells and tissues.
• It helps reduce the effects of oxidation.
• It's naturally fat free, cholesterol free and sodium free.
Ingredients :
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: Filtered water, not from concentrate pasteurized orange juice, natural flavors, acesulfame
potassium and sucralose (Splenda); Vitamins & Minerals: Fruit Cal (calcium hydroxide. Malic
acid, citric acid), potassium citrate, ascorbic acid (vitamin C), beta-carotene, tocopherol
(vitamin E), magnesium phosphate, niacin amide (vitamin B3), thiamin hydrochloride (vitamin
B1), riboflavin (vitamin B2), and pyridoxine hydrochloride (vitamin B6)
½ Less Sugar & Calories Start your day off with great tasting Tropicana® Light 'n Healthy with
Pulp. It has one-half less sugar and calories than orange juice. Tropicana® Essentials Light 'n
Healthy with Pulp is a great way to get your vitamin C with the full taste of plump juicy pulp.
Ingredients:
Filtered water, not from concentrate pasteurized orange juice, modified food starch, citric acid,
malic acid, natural flavors, sucralose (Splenda), and acesulfame potassium; Vitamins &
Minerals: potassium citrate, ascorbic acid (vitamin C), beta-carotene, tocopherol (vitamin E),
magnesium phosphate, niacin amide (vitamin B3), thiamin hydrochloride (vitamin B1),
riboflavin (vitamin B2), and pyridoxine hydrochloride (vitamin B6)
Tropicana Organics
• Start your day right with the great taste of Tropicana Organic Orange Juice! Our orange
juice is made from delicious oranges grown on certified organic farms. Tropicana 100% pure &
natural organic orange juice contains a full day's supply of Vitamin C and is a good source of
Potassium.
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Ingredients:
Organic orange juice from concentrate (filtered water and concentrated organic orange juice) and
pure pasteurized organic orange juice.
Ingredients: Filtered water, organic pear juice concentrate, organic apple juice concentrate, natural
flavors and ascorbic acid (vitamin C)
You know Tropicana makes delicious, pure squeezed orange juice, but did you know Tropicana
brings you other high quality juices and juice beverages as well? And because it's Tropicana, you
know it is made from the best fruits to bring you delicious flavor. Plus Tropicana® juices in the
chilled aisle at your grocer are kept cold to preserve the nutrients and fresh taste. Once you try
them, you'll never want to drink anything else.
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e- Grape
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4. (Tropicana Pure)
Innocent fruit can feel like a guilty pleasure with Tropicana Pure™ - 100% juice in 4 flavors. We
begin by hand selecting the finest produce of the season. Then our juice blenders artfully craft
vibrant flavor pairings that will give your taste buds a lift and your body a boost.
Available in:
• Pomegranate Blueberry
• Mango Orange
• Triple Berry
• Valencia Orange
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7. (Tropicana Twister®)
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RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY
Research methodology is a procedure designed to the extent to which it is planned and evaluated
before conducting the inquiry and the extent to which the method for making decisions is
evaluated before conducting the inquiry and the extent to which the method for making decisions
is evaluated. The research methodology if scientifically developed enables the research to
establish with high degree of confidence, cause and effect relationship between the research
between the research activities and observed outcomes.
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Several journals and newspapers related to economic market like economic times and
brand equity came into use in this phase. Previous reports related to the subject helped in
understanding the scenario.
2. The distribution of Tropicana should be more efficient than that of Real Juice.
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4. The promotional schemes of Tropicana are more efficient than Other Brand of Juices.
Based on these hypotheses, the researcher has defined the research type
and others parts of research methodology which play a vital role in research.
A research design is the overall plan or programmed of research. It includes an outline of what
the investigator will do from writing the hypothesis and their operational implications to the final
analysis of data.
Various uses of having a research design are as follows:
• It provides answers to various questions.
• It acts as a standard guidepost
• It helps in carrying out research validity, objectively, accurately and economically.
The research problem having been formulated in clear cut terms, the research will be required to
prepare a research design, i.e., he will have to state the conceptual structure within which the
research should be conducted. The preparation of such a design facilitates research to be as
efficient as possible yielding maximal information. In other words, the function of research
design is to provide for the collection of relevant evidence with minimal expenditure of effort,
time and money.
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3 Is there any other more reliable and economical way to get the required data?
i. Type of universe: The first step in developing any sample design is to clearly
define the set of objects, technically called the universe, to be studied. The universe can
be finite or infinite. In finite universe the number of items is certain, but in case of an
infinite universe the number of items is infinite, i.e., one cannot have any idea about the
total number of items.
Sampling unit: A decision has to be taken concerning a sampling unit before selecting
sample. Sampling units may be a geographical one such as state, district, village, etc., or a
construction unit such as house, flat, etc., or it may be a social unit such as family, club,
school, etc., or it may be an individual.
ii. Source list: It is also known as ‘sampling frame’ from which sample is to be drawn.
It contains the names of all items of a universe (in case of finite universe only). If
source list is not available, researcher has to prepare it.
iii. Size of sample: This refers to the number of items to be selected from the universe
to constitute a sample. This is a major problem before a researcher. The size of sample
should neither be excessively large, nor too small. It should be optimum.
In case of my research project the sample size was 30- (number of outlets) and
100 (consumers) in NOIDA.
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In dealing with any real life problem it is often found that data at hand are inadequate, and hence,
it becomes necessary to collect data that are appropriate.
There are several ways of collecting the appropriate data, which differ considerably in context of
money costs, time and other resources at the disposal of the researcher.
2. Through personal interview: A rigid procedure has been followed and answers to
a set of preconceived questions have been sought through personal interview. This
method of collecting data is usually carried out in a structured way where output depends
upon the ability of the interviewer to a large extent
Through schedule: Under this method the enumerators are appointed and given training.
They are provided with schedules containing relevant questions. These enumerators go to
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respondents with the schedules. Data is collected by filling up the schedules by enumerators
on the basis of replies given by respondents.
Analysis of data:
After the data have been collected, the researcher turns to the task of analyzing them. The
analysis of data requires a number of closely related operations such as establishment of
categories, the application of these categories to raw data through coding, editing, classifying and
finally tabulating the collected data.
c) Main report: The main body of the report has been presented in logical sequence and
broken-down into readily identifiable sections.
d) Conclusion: towards the end of the main text, conclusion of whole research is
underlined.
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Fast moving
Mango, orange, guavas , mixed fruit
Slow moving
Grape, peach , pine apple , litchi .
Quality order
1. Premium gold
2. Premium
3. Nectar (juicy)
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QUISTIONNIARE
Please attention for a while, there are some interesting question given below to get your opinion
about your health consciousness.
Ques: Do you think a natural fruit juice is the best option to get remedy from weakness?
Ans: yes no
Ques: Do you think fullproof scientific packing is more reliable than open glass juice?
Ans: yes no
Ques: Which reliable branded juice you prefer for good health?
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Ques: Do you feel that packed juices are cost effect in term nutrition & hygiene concern?
Ans: Yes No
Ques: Do you think a natural fruit juice is the best option to get remedy from weakness?
Ans:
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Ques: Do you think foolproof scientific packing is more reliable than open glass juice?
Ans:
Ques: Which reliable branded juice you prefer for good health?
Ans:
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Ans:
Ans
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Ans:
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Ans:
Ques: Do you feel that packed juices are cost effect in term nutrition & hygiene concern?
Ans:
Limitations
Since the project was completed with zeal and enthusiasm yet the project
suffered certain limitation.
Following are the limitations, which were faced by me during survey:
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1. The main problem to get the market for Tropicana is- there are a less number of high-
income consumers.
2. Sometimes the retailer had no time, as they were busy. So they were reluctant to provide
the information.
3. Responsive were hesitant to give the information under misapprehension.
4. Remote areas remained uncovered because it was not possible to cover them without
vehicles.
In spite of all above limitation, all efforts have been made to present the
actual scenario of market.
Suggestions
After the analysis of research area, the researcher came to know conclusion and the
basis of these conclusions the researcher give the suggestions to the company,
which is helpful for the establishment in the market.
• Though PepsiCo takes the main marketing of Tropicana but it should also
concern for a separate department of promotion and selling at local market
like NOIDA for better result.
• Area sales manager should listen the complaint of retailer and should take
remedial action.
• Distribution channel should make the prompt
• Company should improve its relation with local persons to achieve publicity.
• Company should frame effective credit policy for every retailer to overcome
the ‘price objection ‘of retailer.
• Company should introduce the scheme of extra incentive for the sales person
on the target quota basis.
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“If the company takes care of the staff, the staff will take
care of the customers”
Conclusion
Tropicana is world no. 1 selling company among all the fruit juice
products but in India like developing countries with low income
level, there is not so easy to create a market immediately, but
due to some financial boom there is a hope to get a good industry
in near future.
Company has to take care of retailer because they can sell
anything if they are promoted. But due to indifference of the
company towards retailer the Tropicana is losing its sales and the
company has to take measure to overcome the problem of
retailer to increase the sales of Tropicana.
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SWOT Analysis
S. W. O. T. ANALYSIS OF ORGANISATION
Strength:
1. Strong brand image
Tropicana is a world no. 1 juice industry. It in fiercely competitive
beverage industry. It is highest spoken word after OK worldwide.
This relationship in turn helps in increasing sale and maintains its
number one position as a global brand. Strong brands also helps
the sale peoples associated with Tropicana to have an edge over
competitor’s associates in the market.
1. Variety in flavors.
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Weaknesses:
1. Service is not up to the mark.
2. Unable to break up the monopoly of Real juice.
3. Company not concentrates on the advertisement.
Opportunities:
Juice markets : Research has shown that juice market has been
growing at 20 percent whereas soft drink industry is growing at 6-
8%. This needs offers new opportunity for the company to extend
and have biggest profit margin. But still it can use this segment to
increase the sale. People getting more and health conscious it’s
also a factor for juice being the next big thing.
Threats :
1. Increased Competition.
2. Local juice companies have sets very low prices.
3. People’s mind set-up for open glass juice.
4. Different offers and schemes provided by the other Fruit Juice companies.
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LEARNING EXPERIENCE
I spent around seventy days in city of NOIDA for PepsiCo India Ltd. The
output of this engagement knew the distribution system and market share of
Tropicana in outlets. During my research period I realize that shops are
connected with the PepsiCo brand but rarely for the new juice.
This is the quality by virtue of which the rarely of Tropicana are so deep in India,
but in my view some patience, some dedication, some projection, some
marketing art, some application is also still needed in urban areas, city area. In
few areas some improvisation is must. Transportation facility is good in
NOIDA but in some outer area’s facility is not good. In this area are suffering
strong position of Pepsi product but in some areas there are shortage of Pepsi
product. So retailer procures to sale another brand of soft drink’s product.
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BIBILIOGRAPHY
Magazines
Business Today
Business World
Web sites
www.goggle.com
www.tropicana.com & www.tropicana.com/TRP_ProductInformation/
Www.pepsiworld.com
www.indiajuice.com
Www.pepsiworld-pepsibrand.com
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CASE STUDY
Abstract:
The case discusses the strategies adopted by the soft drinks and snack foods major
PepsiCo to enter India in the late 1980s. To enter the highly regulated Indian
economy, the company had to struggle hard to 'sell' itself to the Indian government.
PepsiCo promised to work towards uplifting the rural economy of the terrorism
affected north Indian state of Punjab by getting involved in agricultural activities.
In addition, it made a host of other promises that made its proposal very attractive
to the regulatory authorities. The case also discusses the criticisms levelled against
the company, in particular, criticism of its failure to honour many of its
commitments after it started operations in the country and after the liberalization of
the Indian economy.
Finally, the case takes a look at the contract farming initiatives undertaken by Pepsi
since the 1990s and seeks to critically analyze the strategies used by the company
to enter India.
Issues:
» appreciate how and why a company changes its strategies in tune with
changes in the regulatory environment of a foreign country
» understand the role big private sector corporations can play in the
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development of the economies in which they operate, and the financial and
social implications (reputation, goodwill) of doing so. The case is aimed at
MBA/PGDBA students, and is intended to be part of the strategy and
general management curriculum.
Contents:
A Letter to Pepsi
The Promises That Helped Pepsi Enter
Pepsi's Promises - Keep Some, Break Some!
India Liberalizes - A Boon For Pepsi
Pepsi Goes Farming - Finally
Doing Business on its Own Terms
Keywords:
Pepsi, PepsiCo, Indian soft drink market, Globalisation, Entry strategy, Mega-
marketing, Lobbying, Contract farming, Political environment, India's
liberalisation, Business environment .
"Convincing India that it needs Western junk has not been easy." 1
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A Letter to Pepsi
In 1988, the New York office of the President of the multi-billion cola company
PepsiCo received a letter from India. The company had been trying for some time
to enter the Indian market - without much success.
The letter was written by George Fernandes (Fernandes), the General Secretary of
one of the country's leading political parties, Janata Dal. He wrote, "I learned that
you are coming here. I am the one that threw Coca-Cola out, and we are soon
going to come back into the government. If you come into the country, you have to
remember that the same fate awaits you as Coca-Cola."2 This development did not
seem to be a matter that could be ignored. PepsiCo's arch-rival and the world's
number one cola company, Coca-Cola, had indeed been forced to close operations
and leave India in 1977 after the Janata Dal came to power.3 Even in the late
1980s, India had a closed economy and government intervention in the corporate
sector was quite high.
However, multinational companies such as PepsiCo had been eyeing the Indian
market for a long time for a host of reasons. As the major market for PepsiCo, the
US, seemed to be reaching saturation levels, the option to expand on a global scale
seemed to have become inevitable for the company.
India was a lucrative destination since its vast population offered a huge, untapped
customer base. During the late 1980s, the per capita consumption of soft drinks in
India was only three bottles per annum as against 63 and 38 for Egypt and Thailand
respectively. Even its neighbor Pakistan boasted of a per capita soft drink
consumption of 13 bottles. PepsiCo was also encouraged by the fact that increasing
urbanization had already familiarized Indians with leading global brands. Given
these circumstances, PepsiCo officials had been involved in hectic lobbying with
the Indian government to obtain permission to begin operations in the country.
However, the company could not deny that many political parties and factions were
opposed to its entry into the country. It had therefore become imperative for
PepsiCo to come up with a package attractive enough for the Indian government.
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In May 1985, PepsiCo had joined hands with one of India's leading business
houses, the R P Goenka (RPG) group, to begin operations in the country. The
company, along with the RPG group company Agro Product Export Ltd., planned
to import the cola concentrate and sell soft drinks under the Pepsi label.
To make its proposal attractive to the Indian government, PepsiCo said that the
import of cola concentrate would essentially be in return for exporting juice
concentrate from operations to be established in the north Indian state of Punjab. In
its proposal submitted to the Ministry of Industrial Development, company sources
said that the objectives of PepsiCo's entry into India revolved around 'promoting
and developing the export of Indian agro-based products and introducing and
developing PepsiCo's products in the country.' However, the government rejected
this proposal primarily on two grounds: one, the government did not accept the
clause regarding the import of the cola concentrate and, two, the use of a foreign
brand name (Pepsi) was not allowed as per the regulatory framework.
The association with the RPG group too ended at this juncture. Not willing to sit
quietly on the issue, PepsiCo put forward another proposal to the government a few
months later.
The company knew that the political and social problems4 that plagued
Punjab were an extremely sensitive issue for India in the 1980s. PepsiCo's
decision to link its entry with the development and welfare of the state was
thus a conscious one, aimed at winning the government over. The fact that
Punjab boasted a healthy agricultural sector (with good crop yields in the
past) also played a role in PepsiCo's decision. Reportedly, the new proposal
gave a lot of emphasis to the effects of PepsiCo's entry on agriculture and
employment in Punjab. The company claimed that it would play a central
role in bringing about an agricultural revolution in the state and would
create many employment opportunities. To make its proposal even more
lucrative, PepsiCo claimed that these new employment opportunities would
tempt many of the terrorists to return to society...
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CONCLUSION
The company entered into agreements with a few big farmers (well-off
farmers with large land holdings) and began growing tomatoes through the
contract farming route (though the agro-climatic profile of Punjab was not
exactly suitable for a crop like tomato, Pepsi had chosen the state because
its farmers were progressive, their landholdings were on the larger side,
and water availability was sufficient). Initially, Pepsi had a tough time
convincing farmers to work for the company. Its experts from the US had to
interact extensively with the farmers to explain how they could benefit from
working with the company. Another problem, although a minor one, was
regarding financial transactions with the farmers. When the company
insisted on payments by cheque, it found out that as many as 80% of the
farmers did not even have a bank account..!
Organizations like the International Monetary Fund agreed to help the Indian
government deal with the financial crisis, on condition that it liberalized the Indian
economy. As a result, the government decided to liberalize the economy. The
removal of the numerous restrictions on foreign trade and the increased role of
private equity in Indian markets were the two most prominent features of the
government's new economic policy. Pepsi benefited from the economic changes in
many ways. The removal of various restrictions meant that it no longer had to
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fulfill many of the commitments it had made at the time of its entry. The
government removed the restrictions that bound Pepsi's investments in the soft
drinks business to 25% of the overall investments and required it to export 50% of
its production...
Production increased from 4.24 million tonnes in 1991-92 to 5.44 million tones in
1995-96. The company's use of high yielding seeds was regarded as one of the
reasons for the increase in productivity in tomato cultivation during the same
period. Commenting on the above issue, Abhiram Seth, [Seth, the company's
Executive Director (Exports and External Affairs)] said, "When we set up our
tomato paste plant in 1989, Punjab's tomato crop was just 28,000 tonnes, whereas
our own requirement alone was 40,000 tonnes. Today, the state produces 250,000
tonnes. Per hectare yields, which used to be 16 tonnes, have crossed 50 tonnes."
Pepsi was, however, not as successful in the chili contract farming venture that was
started soon after the tomato venture stabilized...
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concentrate. Though the company did not make the figures public, in all
probability, the portion of soft drink concentrate in its exports was much higher
than that of any other product. In fact, the company met the soft drink concentrate
requirements of many of its plants worldwide through its Indian operations. Even
by 2000, of its annual requirement of 25,000 tonnes of potatoes per annum, Pepsi
got only 3,000 tonnes from its contract farmers. Given these figures, it would be
interesting to see how it planned to achieve its objectives of meeting its complete
requirement of potatoes through the contract farming route by 2004…
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SYNOPSIS
PEPSICO
TROPICANA
OBJECTIVE :
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FINDINGS:
RECOMMENDATIONS:
• Should have more options in bottling packs for various need of the
customer .
IMPLICATIONS:
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