SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF POST GRADUATE DEGREE IN INTERNATIONAL BUSINESS

Extra Space In Standalone Modern Trade

SUBMITTED BY: ANKIT MOUR

MBA-IB (2009-20011) Roll No. : A1802009618

INDUSTRY GUIDE MR. AKHIL HARSH ASSISTENT MANAGER (SALES-MT) PEPSICO INDIA HOLDING PVT. LTD

FACULTY GUIDE RICHA GOEL MAM

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Index

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Chapter No. Ch. # 1.0

Subject

Page No.

Executive Summary. 08 1.1 Overview of the project..

1.2 My experience at the company..

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Ch. # 2.0 2.1 2.2 2.3 2.4 2.5 Ch. # 3.0 3.1 Ch. # 4.0 4.1 4.2 Ch. # 5.0 5.1 Ch. # 6.0 Ch. # 7.0 Ch. # 8.0 Ch. # 9.0 Ch. # 10.0 Ch. # 11.0
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Research Methodology 12 Primary Objective(s). Research Design Sample Design.. Scope of the Study Limitations. Critical Review of Literature Modern Trade. Company Profile . Industry Profile.. SWOT Analysis. Data.. Primary Data 13 13 16 17 18 19 21 24 39 42 45 46

Findings & Analysis. 47 Recommendations 64 Bibliography. 66 Annexure.. 68 Case Study.. Synopsis of the project. 72 78

Chapter 1

Executive Summary

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1.1

Overview of the project:

The Present business scenario is totally consumer oriented. Every company faces stiff competition from its competitors, each provides the best product at competitive rates. As a result customers have lot of choices to get the best with the least cost. To face this competition, it is very important to know customers behavior, there needs, preference and also the motivation factors. My Project was on Extra Space In Standalone Modern Trade Dealing in the FMCG product with in the Delhi NCR to know the Motivational & demotivational factors of the client so as to cater the needs in most appropriate manner. It will help business to expand its network & also its services. I had done my project under the guidance of My Guide Mr. Akhil Harsh (Assistant Manager-Sales MT) whose guidance helps me in completing my Project Work Successfully. Pepsico India Holding Pvt. Ltd (Fritolays Division) is a key player in Indian snacks industries with over 45% share of total industry. Company is a fully owned subsidiary of Pepsico Intl Ltd. At the time, when competition in Indian snacks industry is growing day by day, Fritolays is still maintaining its market share as well as steadily gaining market share and goodwill in the Market. Its strategies for marketing its products have given an edge over the other competitors. PepsiCo is a very flexible organization and its gives equal opportunity to its young and energetic staff to work so as to maintain as well as growing this organization among the top.

This project also throws lights on the working frame of Indian Modern Trade system. This industry is on the spree to adopt the latest technology and thus any player has to be dynamic in this industry. The comparative analysis done in this
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project show how Fritolays has built competitive edge on some ground. The Project helps you understand the strategies of this industry. I hope this project prove to be beneficial for the Company and also give the reader a through idea about the industry. I learnt a lot through out the process of undertaking this project report.

To fulfill my task I had to visit the client personally who are running Standalone outlets and dealing in pepsicos products as well as in competitors products.

For this project I was assign to collect data from outlets, for which I first generated the Questionnaire and start market surveys with sales personnel of company. for this I have to convince them and explain them about my project.

After going through the exercise I found that Fritolays is one of the companies in the Indian snacks industry, which actually leading the industry and it is enough capable to change the whole scenario of the industry.

It is having lots of scope to grow in the FMCG Market, and I wish it is having a shining future in the coming years.

Really it was so crystal clear that any one can see every product from some distance also. One thing we know that JO DIKHTA HAI, WO BIKTA HAI.

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1.2 My Experience at PepsiCo:

I was in Sales section under the guidance of Mr. Akhil Harsh(Assistant ManagerSales-MT). My job was to go to the Modern Trade Outlets with our companys sales Personals. I basically target those stores who are actually having good presence in their respective territories.

My job was to first explain them about my project at PepsiCo and telling them about, what is the right way to place products in Racks and their significance, then I have asked them about questionnaire survey and asking them, whether they are interested to being part of it, if they said Yes, then I have to collect data from the store on the basis of questionnaire. It help me lot in enhancing my communication skills and my relationship building attitude. It was totally a field job and I really enjoy working with boss and other employees who are also very cooperative.

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Chapter 2

Research Methodology

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RESEARCH METHODOLOGY
The way in which the data are collected for the research project. All of the techniques, methods and procedures adopted in terminology work to carry out terminology research.

2.1.

PRIMARY OBJECTIVES:
1. How to create extra space in SAMT considering the fact in mind that the retailers have limited space in their stores. 2. Prevent sales cannibalization of existing products with new products.

2.2

RESEARCH DESIGN:
TYPE OF RESEARCH:

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Descriptive study is a fact- finding investigation with adequate interpretation. It is the simplest type of research. It is more specific than an explanatory study, as it has focus on particular aspect of the problem studied. It is designed to get her descriptive information and provide information for formulating more sophisticated studies. Data are collected by using one or more appropriate method, observation, interviewing and mail questionnaire. Hence Descriptive type of research used.

DATA SOURCES:
The research is supported by interpretation of primary data and secondary data.

DATA COLLECTION METHOD:

Data collection method used is totally based on customer interaction. Individual meetings were conducted with different outlet owners. Every meeting was followed by taking inputs on the designed questionnaire, provided in the annexure and internet was the source of secondary data.

METHODOLOGY:

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Based on the responses of the questionnaire, analysis has been carried out. Statistical methods such as Percentage analysis have been used to uncover relationships among the variables.

DATA ANALYSIS:
1. This study strengthens the fact that competitors really affect companys position in market by offering various schemes to store owners as well as to customers.

2. The questionnaire consists of 10 questions to accomplish the objectives of the study.

TECHNIQUE USED FOR ANALYSIS & INTERPRETATION:

Pie Chart Percentage Analysis

PIE CHART:

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A circular graph having radii dividing the circle into sectors proportional in angle and area to the relative size of the quantities represented. Also called a Circled graph.

PERCENTAGE ANALYSIS:
Percentage Analysis is used for making comparison between two or more series of data. Percentage (%) = No. of respondents * 100 / Total No. of respondents.

2.3

SAMPLE DESIGN

POPULATION OF THE STUDY:

The population for the study included only the standalone outlet owners at NCR region only.

SAMPLING TECHNIQUES:

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Random sampling method is used for this empirical study as there was a huge no. of modern trade stores in NCR region. Simple random sampling for the clients.

Simple Random Sampling: Ensures that every member of the population has an equal chance of selection. Advantage: Simply to design and interpret; can calculate estimate of the population and the sampling error. Limitation: Need a complete and accurate population listing; may not be practical if the sample requires lots of small visits all over the country

SAMPLE SIZE:

Research has been carried out with a sample size of 30 stores with which one can easily represent the population properly.

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QUESTIONNAIRE:
Close Ended Question:Are structured ones with two or more alternative responses from which respondent can chose. They contain standardized answers and they are simple to administer and easy to compile and analyzes.

Dichotomous or two- choice questions:A dichotomous question can be answered in one of the two responses such as Yes or No. It is necessary to realized that in many two choices question there may be potential alternative beyond the stated two.

Multiple Choice questions:These questions contain more than two alternatives. Following points should be remembered before making this question: The list of alternative choice should be exhaustive. It Should not overlapping There should be fair balance in choice All alternative should be reasonable.

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2.4

SCOPE OF THE STUDY:

The study is totally based on buyers behavior and stores reaction. The biggest concern with the FMCG sector is the quality maintenance on sale and good offers. This research is on present market scenarios as it is supported by latest data. For the collection of data requires for the research, a questionnaire was drafted in order to get information from 30 SAMT outlets at NCR region. The survey has been conducted keeping the same number of respondents in each segment so that we get the unbiased results.

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2.5

LIMITATIONS TIME CONSTRAINT:

This research is performed in a period of more than 40 days, so time spent on the study might have an impact on actual findings.

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GEOGRAPHICAL LIMITATIONS:

This study is done in selective stores of Delhi & NCR regions.

LACK OF HOMOGENOUS DATA:

The data collected is not homogeneous. Different stores with different demographics with different perceptions are selected. So homogeneity is difficult to achieve.

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Chapter 3

Critical Review of the Literature

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Modern format retail is witnessing phenomenal growth, driven by the impact of increasing urbanization, the new well-travelled, knowledgeable Indian consumer and a youth-driven culture. In its official estimate for the current fiscal ending in March, the government said that the economy, Asia's fourth-largest, was expected to grow at 9.2 per cent. India once again topped the world in the ACNielsen Consumer Confidence Index for the third time in a row since the index was established in early 2005. Strong economic growth has brought with it new sets of Indian consumers. The booming young adult population with unprecedented levels of disposable income is more conscious of the latest trends and fashion. Enhanced media penetration and greater connectivity also are making consumers more knowledgeable and discerning. All these factors are rapidly changing the needs and aspirations of consumers. Schedules are also getting tighter, with the time for professional commitments and regular chores getting limited. Hence, the "convenience" factor has a major influence on purchase decisions. Modern trade, the characteristic of which is having everything under one roof and with a great array of products displayed in an uncluttered fashion where the touch and feel factor prevails, is providing an environment to access products driven by convenience and fashion.

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3.1

Modern trade in India

Is an old saga in India with about 7.8 million retail stores, but most of those are traditional ones, which only recently started making way for hypermarkets, supermarkets and specialty stores, Standalone stores, etc. Modern trade in India is witnessing tremendous growth, especially in Tier I cities. It accounts for 4 per cent of urban FMCG sales but for the top 15 metros it is about 9.7 per cent of the total FMCG sales. For South Indian metros it touches about 16 per cent, because modern trade started there a little earlier. There are more than 3,430 modern trade stores in India now.

Impact on FMCG Looking at the kind of consumer patronage a modern trade format store has in terms of an urban population growing rich, there are a few segments in the FMCG range of products that have experienced good growth from the modern trade format. In the food segment, processed food products (23 per cent), impulse food products (32 per cent) and packaged grocery (38 per cent) are the segments that have witnessed immense growth from urban Indian modern stores. An increasing number of working women and nuclear families are some reasons behind the growth in the food categories. Packaged grocery is a very convenient product for people who are busy and hence we see it doing so well. Again the

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young adult population of India is ambitious and hard-working, and has the money to spend on lifestyle. They are brand-conscious and aware of what their counterparts in the West are wearing and buying. These consumers represent the target for manufacturers and retailers, who want to capture a share of the booming consumer markets in India. Manufacturers, on their part, are investing aggressively to capture the minds of today's and tomorrow's generations. With more modern format stores setting up shop in the country we are also witnessing an expansion in these segments in terms of availability of innovative packaging sizes, product innovation and overall ranges. Modern trade and food as a category: Food accounts for about 48 per cent of FMCG sales in the country and for modern trade the number is even higher, at 51.3 per cent. Like other Asia-Pacific markets, in India too, among the processed food segments, the breakfast cereals category is exhibiting a stupendous 40 per cent growth rate. Other growing categories are biscuits (26 per cent), vermicelli &

noodles (28 per cent), beverages (24 per cent) and ketchup and sauce (29 per cent). Indians have an old fascination for home-cooked food, especially when it comes to lunch and dinner. With the changed lifestyle, the trend is changing and people have started showing interest in ready-to-cook foods. However, even today a majority of these consumers are willing to restrict the experiment to packaged foods and accompaniments meant for breakfast and snack time.

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Chocolates (28 per cent) and namkeens (37 per cent) are two major categories of impulse food products showing good growth, along with packaged rice (92 per cent) in the packaged grocery segment. Modern trade brings with it a great shopping experience, with good product displays, making selection far easier. With the overall economy doing well and basic necessities mostly taken care of, people are now more keen to look and feel good and are ready to devote time and money on that.

Modern stores and their challenges It's a very competitive situation with more and more new players entering the market. There are Reliance, the Tatas, the Birlas, ITC, and foreign players like Wal-Mart now. India is a market where from time immemorial existed the mom and pop grocery stores and I don't see them going away so soon. Looking at our vast consumer profiles, both traditional grocery stores and modern format retail stores will exist side by side. People with low incomes will keep visiting local grocery stores for the credit facilities they get and the frequent top-up shopping they do whereas the middle and upper income households would love to do their monthly shopping from the modern format retail stores with occasional top-up shopping from the local grocer. Trade in India is being organized. However the traditional trade modes will co exist with the modern trading. Customer satisfaction is the key. As the economy

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grows it empowers the population to choose. Trading organizations which focus on customer dynamics will survive and thrive. So as economy growing day by day, the scope of modern trade also growing with a rapid speed at the time. Studies show that, there are lots of opportunities in Indian modern trade in near future and having a good carrier too.

Chapter 4

Company Profile

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Pepsi Company is a large conglomerate with interests in manufacturing, marketing and selling a wide variety of carbonated and non-carbonated beverages, as well as salty, sweet and grain-based snacks, and other foods. PepsiCo is a world leader in convenient snacks, foods and beverages, with revenues of more than $39 billion and over 185,000 employees. PepsiCo International (PI) PI includes all PepsiCo businesses in the United Kingdom, Europe, Asia, Middle East and Africa.

Shareholders PepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange in the United States. The company is also listed on the Chicago and Swiss stock exchanges. PepsiCo has consistently paid cash dividends since the corporation was founded.

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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: PepsiCos responsibility is to continually improve all aspects of the world in which we operate environment, social, economic -- creating a better tomorrow than today. Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

PepsiCo Headquarters PepsiCo World Headquarters is located in Purchase, New York, approximately 45 minutes from New York City. The seven-building headquarters complex was designed by Edward Durrell Stone, one of America's foremost architects. The building occupies 10 acres of a 144-acre complex that includes the Donald M. Kendall Sculpture Gardens, a world- acclaimed sculpture collection in a garden setting.

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Company leadership

PepsiCo's History Timeline

PepsiCo, Inc. is founded by Donald M. Kendall, President and Chief Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay, through the merger of the two companies. Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist. Frito-Lay, Inc. was formed by the 1961 merger of the Frito Company, founded by Elmer Doolin in 1932, and the H. W. Lay Company, founded by Herman W.Lay, also in 1932. Herman Lay is chairman of the Board of Directors of the new company; Donald

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M. Kendall is president and chief executive officer. The new company reports sales of $510 million and has 19,000 employees. PepsiCo brands are available in nearly 200 countries and generate sales at the retail level of more than $98 billion. Some of PepsiCo's brand names are more than 100years-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 Headquartered in Purchase, New York, with Research and Development Headquarters in Valhalla, NY, The Pepsi Cola Company began in 1898, but it only became known as PepsiCo when it merged with Frito Lay in 1965. Until 1997, it also owned KFC, Pizza Hut, and Taco Bell, but these fast-food restaurants were spun off into Tricon Global Restaurants, now Yum! Brands, Inc. PepsiCo purchased Tropicana in 1998 and Quaker Oats in 2001.PepsiCos mission is To be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.

The company consists of PepsiCo Americas Foods (PAF)

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PAF includes Frito-Lay North America, Quaker Foods North America and all Latin America food and snack businesses, including Sabritas and Gamesa businesses in Mexico.

Frito-Lay and Pepsi Join In February 1965, the Board of Directors for Frito-lay, Inc. and Pepsi-Cola announced a plan for the merger of the two companies. On June 8, 1965, the merger of Frito-Lay and Pepsi-Cola Company was approved by shareholders of both companies, and a new company called PepsiCo, Inc. was formed. At the time of the merger, Frito-Lay owned 46 manufacturing plants nationwide, had more than 150 distribution centers across the United States, and was listed on the New York Stock Exchange.

Frito-Lay North America and Frito-Lay International 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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That same year in Nashville, Tennessee, Herman W. Lay started his own business distributing potato chips. Mr. Lay later bought the company that supplied him with product and changed its name to H.W. Lay Company. The Frito Company and H.W. Lay Company merged in 1961 to become Frito-Lay, Inc. Today, Frito-Lay brands account more than half of the U.S. snack chip industry. PepsiCo began its international snack food operations in 1966. Today, with operations in more than 40 countries, it is the leading multinational snack chip company, accounting for more than one quarter of international retail snack chip sales. Products are available in some 120 countries. Frito-Lay North America includes Canada and the United States. Major Frito-Lay International markets include Australia, Brazil, Mexico, the Netherlands, South Africa, the United Kingdom and Spain. Often Frito-Lay products are known by local names. These names include Matutano in Spain, Sabritas and Gamesa in Mexico, Elma Chips in Brazil, Walkers in the United Kingdom and others. The company markets Frito-Lay brands on a global level, and introduces unique products for local tastes. Major Frito-Lay products include Ruffles, Lay's and Doritos brands snack chips. Other major brands include Cheetos cheese flavored snacks,Tostitos tortilla chips, Santitas tortilla chips, Rold Gold pretzels and SunChips multigrain snacks. FritoLay also sells a variety of snack dips and cookies, nuts and crackers.

Quaker Foods North America

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The Quaker Oats Company was formed in 1901 when several American pioneers in oat milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour and William Heston had established the Quaker Mill Company and registered the now famous trademark. Seymour wanted his product to be a symbol of honesty, integrity and strength. The figures of a man in Quaker clothes became the first registered trademark for breakfast cereal and remain the hallmark for Quaker Oats today. In Cedar Rapids, Iowa, John Stuart and his son, Robert, and their partner, George Douglas, operated the largest cereal mill of the time. Ferdinand Schumacher, known as "The Oatmeal King," had founded German Mills American Oatmeal Company in 1856. Combining The Quaker Mill Company with the Stuart and Schumacher businesses brought together the top oats milling expertise in the country as The Quaker Oats Company. The first major acquisition of the company was Aunt Jemina Mills Company in 1926, which is today the leading manufacturer of pancake mixes and syrup.

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In 1986, The Quaker Oats Company acquired the Golden Grain Company, producers of Rice-A-Roni. PepsiCo merged with The Quaker Oats Company in 2001. Its products still have the eminence of wholesome, good-for-you food, as envisioned by the company over a century ago.

PepsiCo Americas Beverages (PAB) PAB includes PepsiCo Beverages North America and all Latin American beverage businesses

Pepsi-Cola North America and PepsiCo Beverages International

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Caleb Bradham, a New Bern, North Carolina druggist, who first formulated PepsiCola, founded PepsiCos beverage business at the turn of the century. Today consumers spend about $33 billion on Pepsi-Cola beverages. Brand Pepsi and other Pepsi-Cola products including Diet Pepsi, Pepsi-One, Mountain Dew, Slice, Sierra Mist and Mug brands account for nearly one-third of total soft drink sales in the United States, a consumer market totaling about $60 billion. Pepsi-Cola also offers a variety of non-carbonated beverages, including Aquafina bottled water, Fruitworks and All Sport. In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today Lipton is the biggest selling ready-to-drink tea brand in the United States. Pepsi-Cola also markets Frappuccino ready-to-drink coffee through a partnership with Starbucks. In 2001 SoBe became a part of Pepsi-Cola. SoBe manufactures and markets an innovative line of beverages including fruit blends, energy drinks, dairy-based drinks, exotic teas and other beverages with herbal ingredients. Outside the United States, Pepsi-Cola soft drink operations include the business of Seven-Up International. Pepsi-Cola beverages are available in about 160 countries and territories. Pepsi-Cola began selling its products internationally in 1934 with its operations in Canada. Operations grew rapidly beginning in the 1950s. In addition to brands marketed in the United States, major products include Mirinda and Pepsi Max. Pepsi-Cola North America includes the United States and Canada. Key international markets include Argentina, Brazil, China, India, Mexico, Philippines, Saudi Arabia, Spain, Thailand and the United Kingdom. PepsiCo Beverages

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International also produces, sells and distributes Gatorade sports drinks as well as Tropicana and other juices internationally. Pepsi-Cola provides advertising, marketing, sales and promotional support to Pepsi-Cola bottlers and food service customers. This includes some of the world's best-loved and most-recognized advertising. New advertising and exciting promotions keep Pepsi-Cola brands young. The company manufactures and sells soft drink concentrate to Pepsi-Cola bottlers. The company also provides fountain beverage products.

Gatorade/Tropicana North America

Anthony Rossi as a Florida fruit packaging business founded Tropicana in 1947. The company entered the concentrate orange juice business in 1949, registering Tropicana as a trademark.

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In 1954 Rossi pioneered a pasteurization process for orange juice. For the first time, consumers could enjoy the fresh taste of pure not-from-concentrate 100% Florida orange juice in a ready-to-serve package. The juice, Tropicana Pure Premium, became the companys flagship product. In 1957 the name of the company was changed to Tropicana Products, headquartered in Bradenton, Florida. The company went public in 1957, was purchased by Beatrice Foods Co. in 1978, acquired by Kohlberg Kravis & Roberts in 1986 and sold to The Seagram Company Ltd. in 1988. Seagram purchased the Dole global juice business in 1995. PepsiCo acquired Tropicana, including the Dole juice business, in August 1998. Today the Tropicana brand is available in 63 countries. Principal brands in North America are Tropicana Pure Premium, Tropicana Seasons Best, Dole Juices and Tropicana Twister. Internationally, principal brands include Tropicana Pure Premium and Dole juices along with Frui'Vita, Loza and Copella. Tropicana Pure Premium is the third largest brand of all food products sold in grocery stores in the United States. Gatorade sports drinks were acquired by the Quaker Oats Company in 1983 and became a part of PepsiCo with the merger in 2001. Gatorade is the first isotonic sports drink. Created in 1965 by researchers at the University of Florida for the school's football team, "The Gators," Gatorade is now the world's leading sports drink

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Vision of PepsiCo

PepsiCo Mission "To be the world's premier consumer Products Company focused on convenience foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our

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business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity."

PepsiCo in India
PepsiCo is a world leader in convenience foods and beverages, with 2007 revenues of more than $39 billion and more than 185,000 employees across the world. Its world renowned brands are available in nearly 200 countries and territories. PepsiCo gained entry to India in 1989 by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. Firstly Pepsi was banned from import in India, in 1970, for having refused to release the list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on the market shortly afterwards. PepsiCo has grown to become the countrys largest selling 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 in 1989. In India, PepsiCo provides direct employment to 4,000 people and indirect employment to 60,000 people including suppliers and distributors.

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The group has built an expansive beverage, snack food and exports business and to support the operations are the groups 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. In addition to this, Pe psiCos Frito Lay snack division has 3 state of the art plants. PepsiCos business is based on its sustainability vision of making tomorrow better than today. Our commitment to living by this vision every day is visible in our contribution to our country, consumers, farmers and our people.

PepsiCo Indias expansive portfolio Refreshment beverages

Sports drinks

100% natural fruit juices and juice based drinks

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Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options Diet Pepsi and 7Up Light; hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, and 100% natural fruit juices and juice based drinks Tropicana, Tropicana Twister and Slice. Our local brands Lehar Evervess Soda, Dukes Lemonade and Mangola complete our diverse spectrum of brand. PepsiCos snack food company

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PepsiCos snack food company, Frito-Lay, is the leader in the branded potato chip market and was amongst the first companies to eliminate the use of trans fats and MSG in its products. It manufactures Lays Potato Chips; Cheetos extruded snacks, Uncle Chipps and traditional namkeen snacks under the Kurkure and Lehar brands. The companys high fiber breakfast cereal, Quaker Oats, along with Lehar Lites, low fat and roasted snack options enhance the choices available to the growing health and wellness needs of our consumers. Frito Lays core products, Lays, 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.

4.1 INDUSTRY PROFILE:

The snack food industry in India is highly fragmented, with the market dominated by made-at-home snacks or savories sold by local vendors. Because of expanding nuclear families and an increase in the number of female professionals, India has witnessed a significant rise in the demand for ready-to-eat snacks. Today, Indian consumers [want] snack foods that are portable, hygienic and a ready substitute for hot snacks, comments Sujit Das Munshi, executive director of AC Nielsen South Asia. Snacks are a part of Consumer Convenience/ Packaged Foods Segment . Snack is described as a small quantity of food eaten between meals or in place of a meal. Snack food generally comprises bakery products, ready-to-eat mixes, chips, namkeen and other light processed foods According to the ministry
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of food processing, the snack food industry is worth Rs 100 billion in value and over 4,00,000 tones in terms of volume. Though very large and diverse, the snacks industry is dominated by the unorganized sector According to an Apeda survey almost 1,000 snack items and 300 types of savories are sold across India. The branded snacks are sold at least 25% higher than the unbranded products Savory snacks have been a part of Indian food habit, since almost ages. Though there is no particular time for snacks, normally they are consumed at teatime. The variety is almost mind-boggling with specialties from all regions, which have gained national acceptance industry. he been growing around 10% for the last three years, while the branded segments growing around 25% per annum to stand at Rs 5,000-Rs 5,500 crore, due to various reasons like Multiplex culture, snacking at home while watching TV, pubs and bars (where they are served free). AC Nielsen's retail audit shows that the large sales volumes are due to a marked preference for ethnic foods, regional bias towards indigenous snacks and good value-for-money perception. Of course the branded segment is much smaller at Rs 2,200 crore, which is what makes it so attractive to food companies that are looking at bigger shares and in the branded snacks market.

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Market share

Lay's Haldiram ITC Others

To get down to basics, Frito Lay commands a share of 45%, followed by Haldirams at 27% and ITC at 16%. Rest is divided between a handful of new entrants, wannabes and many regional players Of the wide range of snacks available, potato chips constitute a sizeable segment of the Indian snack food industry, according to India Info line. The potato chip market is generally an unorganized industry. Nearly all potato chip snack products are manufactured and sold locally. There is also no uniform standard for packaging, as there is in Europe, the United States and other more developed regions. Many snack foods are sold loose or packaged in poly- pouches, which may only be folded, or in some cases, stapled closed. As the Indian economy continues to grow, and production standards improve, many snack food companies are making significant investments into plant equipment and packaging machinery. According to a study by McKinsey&Co, the Indian food market will grow two fold by 2025 with the rapidly growing Indian economy and improving lifestyles of Indians contributing in a big way to this growth. Quoting the study by
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McKinsey&Co, a report by the US Department of Agriculture stated "The market size for the food consumption category in India is expected to grow from US$ 155 billion in 2005 to US$ 344 billion in 2025 at a compound annual growth rate of 4.1 per cent." The Indian snacks market is worth around US$ 3 billion, with the organized segment taking half the market share, and has an annual growth rate of 15-20 per cent. The unorganized snacks market is worth US$ 1.56 billion, with a growth rate of 7-8 per cent per year. There are approximately 1,000 types of snacks and another 300 types of savories being sold in the Indian market today. Potato chips and potato-based items are the most popular products with more than 85 per cent share of the salty snack market, the report said. In the organized potato chips market, Pepsi and Haldiram's are some of the leading players. There is a big market for snacks in India as urban Indian consumers eat readymade snacks 10 times more than their rural counterparts. Indians in the western regions eat the maximum amount of snacks, followed by the people in northern region. "Consumers are willing to pay a premium for both value-added private and branded products, creating immense opportunities for manufacturers and retailers,' the report stated. "There is a widespread recognition in India that consumers are likely to replace light meals with snacks", it further added.

4.2

SWOT ANALYSIS:

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STRENGHTS:

Outstanding Reputation. Broader Product line-creates synergy beyond the board. Large charge less banknote flow- New Acquisition Great brands, able distribution, avant-garde capabilities PepsiCo sells three articles through the aforementioned administration channel.

Huge Advertising Budget. Able Marketing Intelligence. Strong market position. Strong revenue growth. Economies of scale. Cooperative and Progressive Corporate Culture.

WEAKNESSES:

Difficult to affect Vision and Direction for Large Global Company. Non Uniform Company name for some PepsiCo products. PepsiCo Lags baton Coca-cola in the all-embracing bazaar - Highly Elastic Demand.

Big Health Issues - Fat and Sugar. Falling Behind in All-embracing Markets, namely Russia, Venezuela, and South America.

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Health Issue in the Indian bazaar with baptize - independent pesticides.

OPPORTUNITIES:

Expanding Food Division in the all-embracing market. Avant-garde Customized articles technology Concentration on advantageous another articles as per the barter needs. Acquisitions & alliances.

THREATS:

Bottled Baptize Bazaar Faces Competition. Comply with All-embracing & Domestic Standards. Continuously increases in the amount of awkward oil and raw materialsaffect the amount of accomplished products.

Companies like parley, ITC, Haldirams, etc. growth in Indian snacks industry.

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Chapter 5

DATA

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5.1 PRIMARY DATA

The primary data are those which are collected afresh and for the first time, and thus happen to be original in character. We collect primary data during the course of doing experiments in an experimental research but in case we do research of the descriptive type and perform surveys, whether sample surveys or census surveys, then we can obtain primary data either through observation or through direct communication with respondents in one form or another or through personal interviews.

In my research I personally organized the meetings & interviews with individual customer and gathered the inputs in a questionnaire designed for the same purpose. The questionnaire used for the purpose is shown in the ANNEXURE.

5.2 SECONDARY DATA

The secondary data, on the other hand, are those which have already been collected by someone else and which have already been passed through the statistical process.

Secondary data used in the report is based on initial search on internet for various similar empirical studies and is being highlighted in the ANNEXURE.

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Chapter 6

Findings & Analysis

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DETAILED ANALYSIS OF THE SURVEY: According to you, which brand has the highest sales volume in your store? Brand Frito-Lays ITC Haldiram Others Responses 14 9 5 2 30 Percentage 46.66% 30% 16.66% 6.67%

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Market Share

Frito-Lays ITC Haldiram Others

On the basis of above diagram, we can see that, Frito-Lays lead market by more than 46% share, followed by ITC at 30% market share, Haldirams at 16.66% market share, and others at 6.67% market share at NCR region.

Inferences:

Frito-Lays is highest selling brand at NCR region.

How the new product does contribute in your sales?

Effect on sales Additional sale

Responses 18

Percentage 60%

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Sales cannibalize No change Total

6 6 30

20% 20%

Effect on sales on sales

Additional sales Sales cannibalize No change

On the basis of above diagram, we can see that, new product effect sales as per 60% of outlets owner said, that they record Additional Sales, 20% Said that, existing product Sales Cannibalize with new product sales and 20% out of them said, that they felt No Change.

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Inferences:

From the above survey most of the respondents felt that new products effect sales in a positive manner.

What is the effect on the sales of existing product by new product?

Effect on sales Sales Increases Sales Decreases Remain constraint Total

Responses 21 0 9 30

Percentage 70% ---30%

Effect on Existing Product

Sales Increases Sales Decreases Remain Constraint

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On the basis of above diagram, we can see that, new product effect the existing product range in a positive manner, as in 70% stores, its increase total sales of the stores, followed by 30% with no change, and new products dont have any bad effect on sales as showing in diagram that 0% of stores owners record negatives effect on sales by new products.

Inferences:

From the above survey most of the respondents felt that new products also boost sales of the existing products.

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How would you prevent losses in the sales of the existing product after the launch of new product?

Desired Action Increase In Space Combos By Comp. Own Method Total

Responses 8 16 6 30

Percentage 26.66% 53.34% 20%

Desired Action

Increase in space Combo's by Comp. Own Method

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On the basis of above Diagram, it is shown that outlets owner expect much more from company. As More than 50% of outlet owner said that, they will only advertise the exclusive offers gave by the company to stop sales cannibalization as well as decreases in sales of existing product range.

Inferences:

From the above survey most of the respondents felt that the company should do something to increase the sales of the new product without harming the sales of the existing products.

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Where do you prefer to place the new product?

Options At Eye Level At End Cape Near to Beverage Total

Responses 15 10 5 30

Percentage 50% 33.33% 16.67%

Preferred place for new products

At Eye Level At End Cape Near To Beverage

On the basis of above Diagram, it is shown that 50% outlet owner would prefer to place the new product at eye level of customer or at 2nd. Shelf of the rack followed by the 33% stores owner who said that they would prefer to place the new product at End Cape, then 17% would prefer to place at near to beverage section.

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Inferences:
From the above survey, it is shown that the 2nd. Shelf of the rack or eye level of customers having direct relationship with sales.

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Does new product add value to your brand?

Option Yes No Total

Responses 25 5 30

Percentage 83.33% 16.67%

Brand Value

17% Yes No

83%

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On the basis of above Diagram, it is shown that 83% of the responded said that, new product does increases brand value, while 17% of them said, that there is no significance change in brand value.

Inferences:

From the above survey, it is shown that in most of the cases, new product actually help outlets to attract customers.

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Does customer takes interest in trying new product?

Option Yes No Total

Responses 23 7 30

Percentage 76.66 23.34

Customers Responce

23% Yes No

77%

On the basis of above Diagram, it is shown that 77% of the responded said that, customers takes interest in trying new product, while 23% of them said, Customers dont take interest in trying new product.

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Inferences:

From the above survey, it is shown that Generally peoples waiting for new products to consume.

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Whats the customers feedback on new product?

Option Generally Good Occasionally Good Satisfying Unsatisfying Total

Responses 12 10 5 3 30

Percentage 40% 33.33% 16.67% 10%

Degree of satisfaction

Generally Good Occasionally Good Satisfying Unsatisfying

On the basis of above Diagram, it is shown that 40% of the stores customers are happy with new product, followed by 33% of the customers are occasionally happy while

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trying new product, 17% are just satisfy and 10% of them, are not satisfy while trying new product.

Inferences:

From the above survey, it is shown that, there is a mix response of people while trying new product.

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You are preferred customer for us and during new product launch we prioritize your store, do you feel good about it?

Option Yes No Total

Responses 26 4 30

Percentage 86.66% 13.34%

Owner's Responce
13% Yes No

87%

On the basis of above Diagram, it is shown that 87% of the total store owners feel proud, when Frito-Lays prioritize them as a loyal customers, while 13% of them said,
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its a normal thing, because company need us to sell its product and for being rapid growth in sales of the new product.

Inferences:

From the above survey, it is shown that, store owners actually like to sell PepsiCo product and feel proud, when they are associated with PepsiCo.

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: FINDINGS BASED ON THE SURVEY:

Market rapidly takes the new products of PepsiCo after its launch. Brand image of PepsiCo is bigger than any other brand in Indian Snacks Industry. There are no. of innovators in Indian snacks industry as they adopt products quickly. The company should do something to increase the sales of the new product without harming the sales of the existing products as customers of the company expect much more services regarding to boost sales. New products also increases total sales of the stores, not only in the particular section, but also other household products, as people come to buy the new products, they also made unintentional purchases. new

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SEGGESTIONS GIVEN BY STORE OWNERS

Here are the some suggestions for the company given by the store owner, which are included and not included in market survey:

The owner of Honey Money Cosmetics suggest that, company need to improve on its back up system as sometimes we didnt get the product to which customers demanded. The company should keep advertise the existing products, so that their sales do not cannibalize with new products. The company should introduce new schemes regarding existing products. i.e.; making combo packs of newly launched products with the existing one. The company should market the new products separately, so that negative effects can be minimized. Some of the respondents said that they were very happy with the services which are being provided by the food giant.

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Other respondents were like they have no comments or in other words they would not like to see any changes in the services of company. I didnt get many responses when it came to this question; these were the only responses I got.

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Chapter-7

RECOMMENDATIONS

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The survey analysis helped us to find out the opportunities that PepsiCo could improve upon. These opportunities are explained in terms of the recommendations that I suggest for PepsiCo based on the market research.

Some of the important suggestions for PepsiCo are: They need to work on their tracking system, some customers were complaining about the tracking system.

The company should make it policies more flexible.

PepsiCo need to improve its back up system as customer of the company said that they do not provide with the products which in demand, therefore sometimes they losses prospect customers.

At current, PepsiCo is facing tuff competition in snacks industry as ITC, Haldiram shows rapid growth, so PepsiCo need to overcome from the competition by introducing various schemes for customers as well as for consumers.

One of the customers said that they need to work on customer relationship management (CRM).
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Chapter-8

BIBLIOGRAPHY

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Internet References: http://www.pepsico.com http://www.pepsiindia.co.in http://www.scribd.com http://www.asiafoodjournal.com http://www.indianetzone.com http://www.wikipedia.com

Book References: Research Methodology by Kothari C. R. 2nd Edition, New Age International Publishers.

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Chapter 9

Annexure

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Questionnaire
1. According to you, which brand has the highest sales volume in your store? A. Frito-Lays B. ITC C. Haldiram D. Others

2. How does the new product contributes in your sales? A. Additional Sales B. Sales Cannibalize with Existing product C. No Change

3. What is the effect on the sales of the existing product? A. Sales Increases B. Sales Decreases C. Remain Constraint

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4. How would you prevent losses in the sales of the existing product after the launch of new product? A. By Increasing The Space For The Existing Product. B. By Advertising The Super Saver Combos Launched By The Company Proficiently. C. The method, whichever increase sales of the existing products.

5. Where do you prefer to place the new product? A. At Eye Level Of Customer In Category Or 2nd. Shelf Of Rack B. At End Cap Or Near Cash Counter C. Adjoining To Beverage Section

6. Does new product add value to your brand? A. Yes B. No

7. Does customer takes interest in trying new product? A. Yes B. No

8. Whats the customers feedback on new product? A. Generally Good

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B. Occasionally Good C. Satisfying D. Unsatisfying

9. What steps should company takes during launch of new product, so that it doesnt cannibalize sales of existing product?

10. Keeping the fact in mind that the space constraint with your store, how can we place new product without losing space of existing product range?

11. You are preferred customer for us and during new product launch we prioritize your store, do you feel good about it? A. Yes B. No

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Respondent Name: -----------------------------------------------Outlet: -----------------------------------------------Area: -------------------------------------------------

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