Final Report

1. DESIGNING AND EXECUTING
VARIOUS AVENUES THROUGH WHICH
PEPSICO INDIA CAN DRIVE
INCREMENTAL SALES THROUGH PO1
14BSPHH011206
PepsiCo India Holdings Pvt. Ltd.
“The Belvedere”, H.No.6-3-891 & 892, 2


A REPORT
ON

DESIGNING AND EXECUTING
VARIOUS AVENUES THROUGH WHICH
PEPSICO INDIA CAN DRIVE
INCREMENTAL SALES THROUGH PO1



By
Rishu Gupta
Enrollment No.
14BSPHH011206


PepsiCo India Holdings Pvt. Ltd.
891 & 892, 2
nd
Floor, Raj Bhavan Road, Somajiguda, Hyderabad
Tele: [phone]

1 | P a g e
DESIGNING AND EXECUTING
VARIOUS AVENUES THROUGH WHICH
PEPSICO INDIA CAN DRIVE
INCREMENTAL SALES THROUGH PO1
Floor, Raj Bhavan Road, Somajiguda, Hyderabad-500082

2. DESIGNING AND EXECUTING VARIOUS AVENUES THROUGH
WHICH PEPSICO INDIA
Enrollment No:
PepsiCo India Holdings Pvt. Ltd.
A Report submitted in partial fulfilment of
the requirements of MBA Program of
Mr. Aditya Ahuja
Dr. Surjit Kumar Kar (Faculty Guide)
Date of Submission: 20
A Constituent of the ICFAI Foundation for Higher Education
(A Deemed to be University under section 3 of UGC Act, 1956)

A REPORT
ON
DESIGNING AND EXECUTING VARIOUS AVENUES THROUGH
WHICH PEPSICO INDIA CAN DRIVE INCREMENTAL SALES
THROUGH PO1

By
Rishu Gupta
Enrollment No: 14BSPHH011206

PepsiCo India Holdings Pvt. Ltd.

A Report submitted in partial fulfilment of
the requirements of MBA Program of
IBS Hyderabad

Distribution List:
Mr. Aditya Ahuja (Company Guide)
Dr. Surjit Kumar Kar (Faculty Guide)

Date of Submission: 20
th May, 2015


A Constituent of the ICFAI Foundation for Higher Education
(A Deemed to be University under section 3 of UGC Act, 1956)

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DESIGNING AND EXECUTING VARIOUS AVENUES THROUGH
CAN DRIVE INCREMENTAL SALES
A Report submitted in partial fulfilment of

3. This is to certify that this report is submitted in partial fulfilment of the requirement of
program of IBS, Hyderabad. The report is submitted to my faculty guide Dr.
Kar (Faculty Member, IBS-Hyderabad).
This report document titled “
PepsiCo India can drive incremental sales through PO1” is made by Miss. Rishu Gupta
part of the completion of the study at “
internship program under the
Manager, PepsiCo) as the company guide.

This report has been verified and authenticated by:
Dr. Surjit Kumar Kar
Faculty Guide
IBS, Hyderabad.


Authorization
report is submitted in partial fulfilment of the requirement of
program of IBS, Hyderabad. The report is submitted to my faculty guide Dr.
Hyderabad).
This report document titled “Designing and executing various avenues through which
PepsiCo India can drive incremental sales through PO1” is made by Miss. Rishu Gupta
part of the completion of the study at “PepsiCo India Holdings Pvt. Ltd.” during her
the guidance of Mr. Aditya Ahuja (Market
the company guide.
This report has been verified and authenticated by:


3 | P a g e
report is submitted in partial fulfilment of the requirement of MBA
program of IBS, Hyderabad. The report is submitted to my faculty guide Dr. Surjit Kumar
Designing and executing various avenues through which
PepsiCo India can drive incremental sales through PO1” is made by Miss. Rishu Gupta as a
PepsiCo India Holdings Pvt. Ltd.” during her
Mr. Aditya Ahuja (Market Development

4. ACKNOWLEDGEMENT
“Too often we are so preoccupied with the

An understanding study like this is never an outcome of the efforts of a single person. The
satiation and euphoria that accompany the successful completion of this project would be
incomplete without the mention of the people who made it possible. I would like to express
a word of thanks to all those whose sincere advice, and information made my internship
period educative and informative.
I would like to take the opportunity to thank and
Company guide Mr Aditya Ahuja (Market Development Manager)
me this wonderful opportunity to work with PepsiCo India Holding and to gain
valuable learning experience from it. I am extr
sharing his vision, experiences &
supervision guided me at every stage of the project.
I am greatly indebted to my faculty guide
continuous guidance, insights and encouragement which acted as a continuous source of
support for me during this entire period.
Every endeavour requires an effort or contribution from many people and this is no
different. I wish to express my sincere thanks to Miss Harika Chappa (Management
Trainee, Mr Pavan Kumar Nomula (
Reddy who in spite of their busy schedule has co
their valuable contribution and guidance have been certainly indispensible for my project
work. Last but not the least
Customer Executives and the PSRs (Presales Representatives) for their cooperation and
assistance during the course of my project.
I hope that I can build upon the experience and knowledge th
valuable contribution towards this industry in coming future.

ACKNOWLEDGEMENT
“Too often we are so preoccupied with the destination, we forget the guiding light.”
An understanding study like this is never an outcome of the efforts of a single person. The
satiation and euphoria that accompany the successful completion of this project would be
the mention of the people who made it possible. I would like to express
a word of thanks to all those whose sincere advice, and information made my internship
period educative and informative.
I would like to take the opportunity to thank and express my deep sense of gratitude to my
Mr Aditya Ahuja (Market Development Manager)
me this wonderful opportunity to work with PepsiCo India Holding and to gain
valuable learning experience from it. I am extremely grateful to him for continuously
sharing his vision, experiences & for his unconditional support. His
supervision guided me at every stage of the project.
I am greatly indebted to my faculty guide Dr. Surjit Kumar Kar
continuous guidance, insights and encouragement which acted as a continuous source of
support for me during this entire period.
Every endeavour requires an effort or contribution from many people and this is no
ess my sincere thanks to Miss Harika Chappa (Management
Mr Pavan Kumar Nomula (Market Development Executive) and Mr. Srinivas
Reddy who in spite of their busy schedule has co-operated with me continuously and indeed,
luable contribution and guidance have been certainly indispensible for my project
Last but not the least I owe my whole hearted thanks and appreciation to all the
Customer Executives and the PSRs (Presales Representatives) for their cooperation and
ssistance during the course of my project.
I hope that I can build upon the experience and knowledge that I have gained
valuable contribution towards this industry in coming future.

4 | P a g e
destination, we forget the guiding light.” –
Anonymous
An understanding study like this is never an outcome of the efforts of a single person. The
satiation and euphoria that accompany the successful completion of this project would be
the mention of the people who made it possible. I would like to express
a word of thanks to all those whose sincere advice, and information made my internship
express my deep sense of gratitude to my
Mr Aditya Ahuja (Market Development Manager) for giving
me this wonderful opportunity to work with PepsiCo India Holding and to gain
emely grateful to him for continuously
his unconditional support. His patience and
for providing me
continuous guidance, insights and encouragement which acted as a continuous source of
Every endeavour requires an effort or contribution from many people and this is no
ess my sincere thanks to Miss Harika Chappa (Management
Market Development Executive) and Mr. Srinivas
operated with me continuously and indeed,
luable contribution and guidance have been certainly indispensible for my project
I owe my whole hearted thanks and appreciation to all the
Customer Executives and the PSRs (Presales Representatives) for their cooperation and
at I have gained and make a

5. PepsiCo Hyderabad is the only unit across world chos
begins with the unique ability to connect with consumers. According to an internal study of
the company, about 60 percent of the time people consume a salty snack along with a
refreshment beverage where as only 30 perce
snack and also buy a refreshment beverage. So PO1 is an initiative to leverage the existing
gap of 30 percent which we can capitalize on the leading positions of our iconic brands in
both categories to drive the
globally, this idea is more powerful than ever.
PepsiCo Hyderabad has initiated a small pilot in which we are offering PO1 combos in
certain bakery outlets and trying to understand its impact on tr
I have designed certain collaterals and tied up with some outlets to ensure the success of the
initiative. The outlets have been chosen on the basis of Sale and whether they are Mix or
Exclusive.
I will be tracking the sales of the outlet and design a Questionnaire to see the trend and gather
learning which can help the company to expand it to the rest of the unit.



ABSTRACT
PepsiCo Hyderabad is the only unit across world chosen for PO1 project.
begins with the unique ability to connect with consumers. According to an internal study of
the company, about 60 percent of the time people consume a salty snack along with a
refreshment beverage where as only 30 percent of the time it is when people buy a salty
snack and also buy a refreshment beverage. So PO1 is an initiative to leverage the existing
gap of 30 percent which we can capitalize on the leading positions of our iconic brands in
purchase of our snacks and beverages together. As we grow
globally, this idea is more powerful than ever.
PepsiCo Hyderabad has initiated a small pilot in which we are offering PO1 combos in
certain bakery outlets and trying to understand its impact on trade, shopper and the consumer.
I have designed certain collaterals and tied up with some outlets to ensure the success of the
initiative. The outlets have been chosen on the basis of Sale and whether they are Mix or
of the outlet and design a Questionnaire to see the trend and gather
learning which can help the company to expand it to the rest of the unit.


5 | P a g e
en for PO1 project. The Power of One
begins with the unique ability to connect with consumers. According to an internal study of
the company, about 60 percent of the time people consume a salty snack along with a
nt of the time it is when people buy a salty
snack and also buy a refreshment beverage. So PO1 is an initiative to leverage the existing
gap of 30 percent which we can capitalize on the leading positions of our iconic brands in
purchase of our snacks and beverages together. As we grow
PepsiCo Hyderabad has initiated a small pilot in which we are offering PO1 combos in
ade, shopper and the consumer.
I have designed certain collaterals and tied up with some outlets to ensure the success of the
initiative. The outlets have been chosen on the basis of Sale and whether they are Mix or
of the outlet and design a Questionnaire to see the trend and gather

6. I. Authorization
II. Acknowledgement
III. Abstract
1. Introduction
1.1 Background
1.2 Objective
1.3 Scope of the Study
1.4 Limitations
1.5 Methodology
2. Industry Analysis
2.1 Categories of Beverage
2.2 Categories of Snack
3. Company Analysis
3.1 Company Overview
3.2 Portfolio of PepsiCo
3.3 The Joint Venture
4. The Distribution Process
4.1 The different channels of PepsiCo
4.2 8 steps of a Sales Call
4.3 The Market Model
5. Traditional Trade
5.1 Modus Operandi
5.2 Classification of Routes
5.3 Customer Executive
5.4 Pre Sales Representative
5.5 SAMNA

Table of Content
Authorization
Acknowledgement
Introduction

Scope of the Study
Methodology
Industry Analysis
Categories of Beverage
Categories of Snack
Company Analysis
Company Overview
PepsiCo
The Joint Venture
The Distribution Process
The different channels of PepsiCo
8 steps of a Sales Call
The Market Model
Traditional Trade
Modus Operandi
Classification of Routes
Customer Executive
Pre Sales Representative

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3
4
5
10 - 12
10
10
11
11
12
13 - 15
14
15
16 - 27
16
17
26
27 - 31
28
28
31
32 - 36
32
32
32
32
33

7. 5.6 Pricing structure and Margin structure of beverage
5.7 Pricing structure and Margin structure of food SKU’s
6. Organised Trade
6.1 On Premise
6.2 Modern Trade
7. Difference between the different channels
8. Project specific Analysis
8.1 PO1
8.2 Background of the project
8.3 Considerations for selecting the Sample outlets
8.4 Survey to understand the choice of Combo
8.5 Designing of the Perfect combo
8.6 Designing of the Collaterals
8.7 Execution Phase
8.8 Spot Testing
8.9 Sales Analysis
9 Recommendations and Suggestions
10 Annexure
11 References
12 Glossary








Pricing structure and Margin structure of beverage
Pricing structure and Margin structure of food SKU’s
Organised Trade
Modern Trade
Difference between the different channels
Project specific Analysis
Background of the project
Considerations for selecting the Sample outlets
Survey to understand the choice of Combo
Designing of the Perfect combo
Designing of the Collaterals
Execution Phase
Spot Testing
Sales Analysis
Recommendations and Suggestions

7 | P a g e
34
Pricing structure and Margin structure of food SKU’s 36
39 - 40
39
40
41
42 - 64
42
43
43
46
51
53
57
58
64
65
66
69
70

8. Figure 1 Categories of Beverages
Figure 2 Categories of Snack
Figure 3 PepsiCo Overview
Figure 4 Different Channels of PepsiCo
Figure 5 Planogram of PepsiCo
Figure 6 Market Model
Figure 7 PSR with SAMNA
Figure 8 Categories of On
Figure 9 Categories of Modern Trade
Figure 10 Details of the 30 Sample Bakery Outlets
Figure 11 POS Message
Figure 12 Outlets with Banner
Figure 13 Outlets with Tent Cards on Table Top
Figure 14 Outlets with Live Display
Figure 15 Sample of Customer detail form and Manual Bill
Figure 16 Tally record during Pilot testing
Figure 17 Spot testing in a Small Outlet
Figure 18 Spot Testing in a Big Outlet









List of Figures
Categories of Beverages
Categories of Snack
PepsiCo Overview
Different Channels of PepsiCo
Planogram of PepsiCo
Market Model
PSR with SAMNA
Categories of On - Premise
Categories of Modern Trade
Details of the 30 Sample Bakery Outlets
POS Message
Outlets with Banner
Outlets with Tent Cards on Table Top
Outlets with Live Display
Sample of Customer detail form and Manual Bill
Tally record during Pilot testing
Spot testing in a Small Outlet
Spot Testing in a Big Outlet

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14
15
16
28
30
31
33
39
40
45
55
55
56
56
56
58
59
60

9. 1. INTRODUCTION

1.1. BACKGROUND

The Project comprises of designing and executing various avenues through which
PepsiCo India can drive incremental sales through PO1 that is integration of snacks and
beverages, with a major focus on bakery channel

The integration of drink and Snack is very much like Bundling of the product
Selling. This activity of cross selling
and behaviour and has traditionally been used to increase sales and consumer
about the company’s brand and product.
adopted by the companies for selling an additional product to an existing customer
Selling strategy is employed by companies in different industries and
of markets.


1.2. OBJECTIVE

 Study the Master
contribution to the company
 Design different combos for the outlet on a customized basis.
 To develop different marketing tools for the advertisement in the chosen
outlets.
 To monitor the sales, measure the outcome and take corrective measures there
by.





INTRODUCTION
BACKGROUND
The Project comprises of designing and executing various avenues through which
PepsiCo India can drive incremental sales through PO1 that is integration of snacks and
focus on bakery channel in the market of Hyderabad
The integration of drink and Snack is very much like Bundling of the product
cross selling the product aims at influencing consumer’s attitude
r and has traditionally been used to increase sales and consumer
about the company’s brand and product. Cross selling is a common marketing strategy
adopted by the companies for selling an additional product to an existing customer
strategy is employed by companies in different industries and

Master data and prioritize the outlets on the basis of their business
contribution to the company for the pilot testing.
Design different combos for the outlet on a customized basis.
different marketing tools for the advertisement in the chosen
To monitor the sales, measure the outcome and take corrective measures there

9 | P a g e
The Project comprises of designing and executing various avenues through which
PepsiCo India can drive incremental sales through PO1 that is integration of snacks and
in the market of Hyderabad.
The integration of drink and Snack is very much like Bundling of the product and Cross
the product aims at influencing consumer’s attitude
r and has traditionally been used to increase sales and consumers awareness
is a common marketing strategy
adopted by the companies for selling an additional product to an existing customer. Cross
strategy is employed by companies in different industries and on different kinds
data and prioritize the outlets on the basis of their business
Design different combos for the outlet on a customized basis.
different marketing tools for the advertisement in the chosen
To monitor the sales, measure the outcome and take corrective measures there

10. 1.3. SCOPE OF THE

It broadly contains certain avenues through which PepsiCo India
Po1, and design collaterals which is best suited for combo packs

The aim of this project is to find out the ways or the avenues through which PepsiCo India
can increment its sales through Power of One. Majorly it focuses on the factors tha
the sales parameters and also understand the impact of combos on the trade, shopper and the
consumer.
Understanding of the trend through tracking the sales of combo
Questionnaire in order to help the company to expand to
concern.


1.4. LIMITATIONS

Though I have put in all my earnest efforts in
project and I have received
helpful and cooperative in this regard. I would still like to
under which the study was conducted.

 Time was one of the major constraints that affected the study
 Not familiar with the local
 The Retailer’s survey covers only few parts of Hyderabad
analysis or regional analysis from any other part may vary with these findings.
 Tracking the Sale was one of the major challenge as we coul
beverage and the food packet as the beverage need to be charged on the
cooler.




SCOPE OF THE STUDY
certain avenues through which PepsiCo India can increment
design collaterals which is best suited for combo packs
The aim of this project is to find out the ways or the avenues through which PepsiCo India
can increment its sales through Power of One. Majorly it focuses on the factors tha
the sales parameters and also understand the impact of combos on the trade, shopper and the
Understanding of the trend through tracking the sales of combos and also maintaining a
Questionnaire in order to help the company to expand to the rest of the Unit is the main
LIMITATIONS
Though I have put in all my earnest efforts in the attempt to penetrate deep into the
received a lot of support from the company employees who were
helpful and cooperative in this regard. I would still like to list down certain limitations
under which the study was conducted.
Time was one of the major constraints that affected the study
Not familiar with the local language was one of the biggest challenge.
The Retailer’s survey covers only few parts of Hyderabad, so the national
analysis or regional analysis from any other part may vary with these findings.
Tracking the Sale was one of the major challenge as we coul
beverage and the food packet as the beverage need to be charged on the

10 | P a g e
can increment sales through
The aim of this project is to find out the ways or the avenues through which PepsiCo India
can increment its sales through Power of One. Majorly it focuses on the factors that influence
the sales parameters and also understand the impact of combos on the trade, shopper and the
s and also maintaining a
the rest of the Unit is the main
attempt to penetrate deep into the
employees who were very
list down certain limitations
Time was one of the major constraints that affected the study.
language was one of the biggest challenge.
, so the national
analysis or regional analysis from any other part may vary with these findings.
Tracking the Sale was one of the major challenge as we could not Bundle the
beverage and the food packet as the beverage need to be charged on the

11. 1.5. METHODOLOGY

The complete study of the market is based on the primary data i.e. the total business made by
the outlet by referring to the master datab
SKU details at each store by maintaining excel sheets, followed by d
collaterals for combo packs based on the maximum demanded SKU.
the combos the selling story,
outlet is to be designed. Once the pilot is imple
maintained to record the combo sales by the end of the pilot. A ceiling of 30% of the total
sales is kept for the combos in order to control the pilot.
The nature of this type of research is explorato
and collected the various required details from the store
observed the customers and t
influencing their sales. Parallel to it I was also
for the outlet. I was also asked to notice the SKU’S with maximum sale in a particular outlet
and along with it design different marketing tools for the particular outlet.

In the starting days I tried to understand the
operations in order to execute the pilot efficiently and effectively.
into 2 parts. Firstly ,I went to the market and
learning from the CE’s and PSR’s about various benchmarks on execution of Traditional
trade (TT) .This period was the longest
of the Beverages industry and the Food industry. Here, I
visits to the outlets.
In the second phase I was introduced to a whole new dimension of the business called
Organised Trade (OT). Organised trad
chains, Malls and 5 star hotels .There is a stark contrast in the way business is conducted in
both TT and MT.




METHODOLOGY
The complete study of the market is based on the primary data i.e. the total business made by
the outlet by referring to the master database of the company and collecting the sales and
SKU details at each store by maintaining excel sheets, followed by d
combo packs based on the maximum demanded SKU. After the designing of
the combos the selling story, the communication and advertisement material for the chosen
. Once the pilot is implemented, a manual bill with the outlet is
the combo sales by the end of the pilot. A ceiling of 30% of the total
the combos in order to control the pilot.
The nature of this type of research is exploratory. For this purpose, I visited different stores
and collected the various required details from the store owners. In the initial weeks I
observed the customers and their buying behaviour; analyzed the stores and the fac
influencing their sales. Parallel to it I was also studying and designing on various collaterals
also asked to notice the SKU’S with maximum sale in a particular outlet
ong with it design different marketing tools for the particular outlet.
tried to understand the functioning of the Customer Executives
in order to execute the pilot efficiently and effectively. This phase was d
went to the market and assessed the situation ,got the
learning from the CE’s and PSR’s about various benchmarks on execution of Traditional
trade (TT) .This period was the longest and the most edifying ,giving me the complete picture
and the Food industry. Here, I collected primary data from the
introduced to a whole new dimension of the business called
Organised Trade (OT). Organised trade meant dealing with big retailers like Super market
chains, Malls and 5 star hotels .There is a stark contrast in the way business is conducted in

11 | P a g e
The complete study of the market is based on the primary data i.e. the total business made by
ase of the company and collecting the sales and
SKU details at each store by maintaining excel sheets, followed by designing different
After the designing of
communication and advertisement material for the chosen
bill with the outlet is
the combo sales by the end of the pilot. A ceiling of 30% of the total
visited different stores
owners. In the initial weeks I
analyzed the stores and the factors
ing on various collaterals
also asked to notice the SKU’S with maximum sale in a particular outlet

functioning of the Customer Executives and their
This phase was divided
assessed the situation ,got the preliminary
learning from the CE’s and PSR’s about various benchmarks on execution of Traditional
the complete picture
collected primary data from the
introduced to a whole new dimension of the business called
e meant dealing with big retailers like Super market
chains, Malls and 5 star hotels .There is a stark contrast in the way business is conducted in

12. 2. INDUSTRY ANALYSIS
If we consider FMCG industry, selling a soap bar is completely
of Pepsi. The difference lies in how the particular product is sold and more importantly, how
it is distributed. So if we talk about food or beverage industry in particular it comes with an
expiry date which ranges from
other FMCG products have expiry date in years. Food and beverage products need extra
careful handling. A slight damage in packaging is enough for their rejection. Especially in
beverage industry where drinks are sold in glass bottles, proper handling is very
important due to fragile nature of the glass bottles. In recent time’s food and beverage
industry has undergone large scale transformation, huge advertisement spending,
awareness campaign about the products and brands. But the key factors to success remains
still the same as distribution and advertising. All the above factors have made sales and
distribution of food and beverages products very different from other FMC
sales person, the primary responsibility is to ensure optimal re
among the retailers in the assigned area. Simply, they must ensure that all the brand
all the products manufactured/marketed by the em
outlets as possible in their area. If stock exhaustion happens in any of the outlets,
company is likely to lose end
buy a product - he is likely to switch, and even if he is not inclined to do so, the retailer will
make them switch as he hates losing a customer to his competitor down the street. This
automatically means distributor should be stocked in sufficient quantity in
packs, allowing for seasonal fluctuations and production vagaries.
Majority of sales in beverage industry comes from Soft drinks
part and parcel of the Indian
Indian soft drinks are enjoyed by one and all in the country. Especially after the influx of a
number of fast food joints in India soft drinks have gained more popularity.
Consumer lifestyle has chang
almost every meal that one has outside his/her home.
The soft drink industry in India is categorized on the basis of
carbonated drinks. The carbonated drinks include flavours like cola, lemon and orange and
the non carbonated drinks segment includes mostly mango flavours along with fruit

INDUSTRY ANALYSIS
If we consider FMCG industry, selling a soap bar is completely different than selling a bottle
of Pepsi. The difference lies in how the particular product is sold and more importantly, how
it is distributed. So if we talk about food or beverage industry in particular it comes with an
expiry date which ranges from few days to few months (3 to 8 months), where as
other FMCG products have expiry date in years. Food and beverage products need extra
careful handling. A slight damage in packaging is enough for their rejection. Especially in
ry where drinks are sold in glass bottles, proper handling is very
important due to fragile nature of the glass bottles. In recent time’s food and beverage
industry has undergone large scale transformation, huge advertisement spending,
awareness campaign about the products and brands. But the key factors to success remains
still the same as distribution and advertising. All the above factors have made sales and
distribution of food and beverages products very different from other FMC
sales person, the primary responsibility is to ensure optimal re-distribution of the product
among the retailers in the assigned area. Simply, they must ensure that all the brand
all the products manufactured/marketed by the employer are available in as many retail
outlets as possible in their area. If stock exhaustion happens in any of the outlets,
company is likely to lose end-consumers. The Indian consumer rarely marches a mile to
s likely to switch, and even if he is not inclined to do so, the retailer will
make them switch as he hates losing a customer to his competitor down the street. This
automatically means distributor should be stocked in sufficient quantity in
packs, allowing for seasonal fluctuations and production vagaries.
Majority of sales in beverage industry comes from Soft drinks which has nowadays
f the Indian lifestyle. Be it children, the college kid or the mid
Indian soft drinks are enjoyed by one and all in the country. Especially after the influx of a
number of fast food joints in India soft drinks have gained more popularity.
Consumer lifestyle has changed significantly and now day’s soft drinks are enjoyed with
almost every meal that one has outside his/her home.
The soft drink industry in India is categorized on the basis of carbonated
. The carbonated drinks include flavours like cola, lemon and orange and
the non carbonated drinks segment includes mostly mango flavours along with fruit

12 | P a g e
different than selling a bottle
of Pepsi. The difference lies in how the particular product is sold and more importantly, how
it is distributed. So if we talk about food or beverage industry in particular it comes with an
few days to few months (3 to 8 months), where as
other FMCG products have expiry date in years. Food and beverage products need extra
careful handling. A slight damage in packaging is enough for their rejection. Especially in
ry where drinks are sold in glass bottles, proper handling is very
important due to fragile nature of the glass bottles. In recent time’s food and beverage
industry has undergone large scale transformation, huge advertisement spending,
awareness campaign about the products and brands. But the key factors to success remains
still the same as distribution and advertising. All the above factors have made sales and
distribution of food and beverages products very different from other FMCG products. So for
distribution of the product
among the retailers in the assigned area. Simply, they must ensure that all the brand-packs of
ployer are available in as many retail
outlets as possible in their area. If stock exhaustion happens in any of the outlets,
consumers. The Indian consumer rarely marches a mile to
s likely to switch, and even if he is not inclined to do so, the retailer will
make them switch as he hates losing a customer to his competitor down the street. This
automatically means distributor should be stocked in sufficient quantity in all brand-
which has nowadays become
ge kid or the middle aged
Indian soft drinks are enjoyed by one and all in the country. Especially after the influx of a
number of fast food joints in India soft drinks have gained more popularity.
t drinks are enjoyed with
carbonated and non
. The carbonated drinks include flavours like cola, lemon and orange and
the non carbonated drinks segment includes mostly mango flavours along with fruit

13. juices and squashes. The Top Soft Drink Brands in India are Coca
Up. The other popular soft drink brands in India include Mirinda, 7Up, F
etc. In order to cater to all the segments of the society these top soft drink brands are
available in numerous sizes starting from the age old 300 ml
ml ones and also the 500 ml and 1liter plastic bottles. Soft drinks are available in almost
every size desired by the consumer. Soft drinks do not only rule the urban markets they
have successfully managed to pene
ml are higher than the PET bottles.
Market is changing continuously due to consumer taste and preference and also due to rise of
competition by many new brands and local beverage manufacturers.

2.1. Categories of Beverage
Figure 1: Categories of Beverage



LRB
(Liquid
Refreshmnet
Beverage)

juices and squashes. The Top Soft Drink Brands in India are Coca-Cola, Pepsi and Thumps
Up. The other popular soft drink brands in India include Mirinda, 7Up, F
etc. In order to cater to all the segments of the society these top soft drink brands are
available in numerous sizes starting from the age old 300 ml glass bottles to the 200
ml ones and also the 500 ml and 1liter plastic bottles. Soft drinks are available in almost
consumer. Soft drinks do not only rule the urban markets they
have successfully managed to penetrate the rural areas as well where sale of 200 ml and 300
ml are higher than the PET bottles.
Market is changing continuously due to consumer taste and preference and also due to rise of
competition by many new brands and local beverage manufacturers.
Categories of Beverage
Figure 1: Categories of Beverage
BSD
(Bottled Soft
Drink)
CSD
(Carbonated
Soft Drink)
JBD
(Juice Based
Drink)Juices
Water

13 | P a g e
Cola, Pepsi and Thumps
Up. The other popular soft drink brands in India include Mirinda, 7Up, Fanta, Sprite, Limca
etc. In order to cater to all the segments of the society these top soft drink brands are
glass bottles to the 200
ml ones and also the 500 ml and 1liter plastic bottles. Soft drinks are available in almost
consumer. Soft drinks do not only rule the urban markets they
trate the rural areas as well where sale of 200 ml and 300
Market is changing continuously due to consumer taste and preference and also due to rise of

Cola
Lemon
Orange

14. 2.2. Categories of Snacks


















POTATO CHIPS

Categories of Snacks

Figure 2: Categories of Snack
SNACKS
COLLET
(Kurkure)
EXTRUDED
(Cheetos)
TRADITIONAL

14 | P a g e

TRADITIONAL OTHERS

15. 3. COMPANY ANALYSIS
PEPSICO INDIA

PepsiCo entered India in 1989 and has grown to become one of the largest food and beverage
businesses in India. PepsiCo India’s diverse portfolio includes iconic brands like Pepsi,
Lay’s, Kurkure, Tropicana 100%, Gatorade and Quaker.
Lay, is the leader in the branded salty snack market.

3.1. COMPANY OVERVIEW

Name PepsiCo
Industries Served Beverages, Food
Indian
Headquarters
Gurgaon, Haryana
Facilities 38 bottling plants and 3 food plants
Employees Presently employs 6400 people and provides indirect employment
almost 2
Main Competitor Coca-
Mission To be the world's premier consumer Products Company focused on
convenient foods and
Vision To continually improve all aspects of the world in which we operate
environmental, social, economic
today

COMPANY ANALYSIS
PepsiCo entered India in 1989 and has grown to become one of the largest food and beverage
businesses in India. PepsiCo India’s diverse portfolio includes iconic brands like Pepsi,
Lay’s, Kurkure, Tropicana 100%, Gatorade and Quaker. PepsiCo’s foods compan
Lay, is the leader in the branded salty snack market.
COMPANY OVERVIEW
PepsiCo
Beverages, Food
Gurgaon, Haryana
38 bottling plants and 3 food plants
Presently employs 6400 people and provides indirect employment
almost 200,000 people
-Cola Company, Parle and local brands
To be the world's premier consumer Products Company focused on
convenient foods and beverages.
To continually improve all aspects of the world in which we operate
environmental, social, economic – creating a better tomorrow than
today

Figure 3: PepsiCo Overview




15 | P a g e
PepsiCo entered India in 1989 and has grown to become one of the largest food and beverage
businesses in India. PepsiCo India’s diverse portfolio includes iconic brands like Pepsi,
PepsiCo’s foods company, Frito-
Presently employs 6400 people and provides indirect employment to
To be the world's premier consumer Products Company focused on
To continually improve all aspects of the world in which we operate –
creating a better tomorrow than

16. 3.2. THE PORTFOLIO OF PEPSICO

The diverse portfolio of brands include the flagship cola brand
Mirinda, Mountain Dew, Nimbooz, Slice fruit juices, Tropicana brand with their delight and
premium fruit juices ranges in various flavours, Aquafina packaged drinking
Lehar Soda.
The Big 3 rightly named by PepsiCo are Pepsi, 7up and Mirinda because of high volumes of
sales.
Besides all this, PepsiCo is in charge of the marketing of Lipton tea and Himalayan water.
PepsiCo is also a dominant player in th
company Frito-Lay is the leader in the branded potato chip market. It manufactures Lay's
Potato Chips, Cheetos, Uncle Chips, traditional snacks under the Kurkure and Lehar brands
and also Quaker Oats.

PEPSI
One of the largest selling soft drink brand in India which is more than
hundred-year-old which is loved by 200 million people worldwide.
Flagship brand of PepsiCo which has become an iconic youth brand as it
promotes its brand with help of
Indian youth very fast.
Segment For all people seeking a soft drink for regular occasions,
parties
Target group All age groups l
Positioning An iconic youth brand
USP The
Tagline Live it Abhi


THE PORTFOLIO OF PEPSICO
The diverse portfolio of brands include the flagship cola brand – Pepsi, Diet Pepsi, 7Up,
Mirinda, Mountain Dew, Nimbooz, Slice fruit juices, Tropicana brand with their delight and
premium fruit juices ranges in various flavours, Aquafina packaged drinking
The Big 3 rightly named by PepsiCo are Pepsi, 7up and Mirinda because of high volumes of
Besides all this, PepsiCo is in charge of the marketing of Lipton tea and Himalayan water.
PepsiCo is also a dominant player in the snack food segment in India. PepsiCo's snack food
Lay is the leader in the branded potato chip market. It manufactures Lay's
Potato Chips, Cheetos, Uncle Chips, traditional snacks under the Kurkure and Lehar brands
One of the largest selling soft drink brand in India which is more than
old which is loved by 200 million people worldwide.
Flagship brand of PepsiCo which has become an iconic youth brand as it
promotes its brand with help of famous celebrities which can connect to
For all people seeking a soft drink for regular occasions,
parties
All age groups lower, middle and upper class people
An iconic youth brand
The single largest selling soft drink brand
Live it Abhi

16 | P a g e
Pepsi, Diet Pepsi, 7Up,
Mirinda, Mountain Dew, Nimbooz, Slice fruit juices, Tropicana brand with their delight and
premium fruit juices ranges in various flavours, Aquafina packaged drinking water; Gatorade,
The Big 3 rightly named by PepsiCo are Pepsi, 7up and Mirinda because of high volumes of
Besides all this, PepsiCo is in charge of the marketing of Lipton tea and Himalayan water.
e snack food segment in India. PepsiCo's snack food
Lay is the leader in the branded potato chip market. It manufactures Lay's
Potato Chips, Cheetos, Uncle Chips, traditional snacks under the Kurkure and Lehar brands
One of the largest selling soft drink brand in India which is more than
old which is loved by 200 million people worldwide.
Flagship brand of PepsiCo which has become an iconic youth brand as it
famous celebrities which can connect to
For all people seeking a soft drink for regular occasions,
ower, middle and upper class people

17. 7UP
7UP was launched in India in 1990 and its international
mascot Fido Dido was used for advertising in 1992 to
position the brand as a cool drink for youngsters. 7up initially
started it’s marketing centred around the famous mascot
DIDO but then with time dropped the famous mascot and began
to concentrate on the lemon factor and came up with a new
tagline " The lemon drink' .
Segment For all people seeking a soft drink for regular occasions,
parties
Target Group All age
Positioning The cool Lemon Drink (Coolness factor)
USP Refreshing clear drink with a natural lemon and lime flavo
Tagline Dil Bole I Feel UP

MIRINDA
Mirinda is a brand of soft drink originally created in Spain which is owned by PepsiCo since
1970, and was launched in India in 1991.Mirinda
has always stood for great
encouraged one to be more carefree, spontaneous
and playful and occasionally give in to an
impulse of uninhibited fun
Segment For all people seeking a soft drink for regular occasions, parties
Target Group All age groups Lower, middle and upper class people
Positioning The carefree, spontaneous and playful soft drink
USP Orange based aerated soft drink
Tagline Pagal Panti bhi Zarrori Hai



7UP was launched in India in 1990 and its international
mascot Fido Dido was used for advertising in 1992 to
position the brand as a cool drink for youngsters. 7up initially
started it’s marketing centred around the famous mascot FIDO
DIDO but then with time dropped the famous mascot and began
to concentrate on the lemon factor and came up with a new
For all people seeking a soft drink for regular occasions,
parties
All age groups lower, middle and upper class people
The cool Lemon Drink (Coolness factor)
Refreshing clear drink with a natural lemon and lime flavo
Dil Bole I Feel UP
is a brand of soft drink originally created in Spain which is owned by PepsiCo since
1970, and was launched in India in 1991.Mirinda
has always stood for great bold taste that
encouraged one to be more carefree, spontaneous
ionally give in to an
For all people seeking a soft drink for regular occasions, parties
All age groups Lower, middle and upper class people
The carefree, spontaneous and playful soft drink
Orange based aerated soft drink
Pagal Panti bhi Zarrori Hai

17 | P a g e
For all people seeking a soft drink for regular occasions,
ower, middle and upper class people
Refreshing clear drink with a natural lemon and lime flavour
is a brand of soft drink originally created in Spain which is owned by PepsiCo since
For all people seeking a soft drink for regular occasions, parties
All age groups Lower, middle and upper class people

18. Mountain Dew
Original formula was invented in Virginia and drink was first sold in Tennessee in 1948. It
was launched in India in 2003
campaign ‘Cheetah Bhi Peeta Hai’.
always tried to portray bold, adventurous and
rebellious spirit of youth by showing high
adrenaline advertising and its connection to
outdoor adventure.

Segment Aerated beverages and soft
Target Group Young individuals from the upper
Positioning Celebrating the bold, adventurous and rebellious spirit of youth
USP High energy Extreme citrus taste
Tagline Darr ke Aage Jeet hai


Slice
Slice was launched in India in 1993 as a refreshing mango drink and
to become a leading player in
the category. While other
players have portrayed the
mango as a simple and
innocent fruit, Slice
celebrates the sheer
indulgence and sensuality
involved in consuming a mango
portfolio.

Original formula was invented in Virginia and drink was first sold in Tennessee in 1948. It
was launched in India in 2003 with ad
Peeta Hai’. Brand has
always tried to portray bold, adventurous and
rebellious spirit of youth by showing high-
adrenaline advertising and its connection to
Aerated beverages and soft drinks
Young individuals from the upper and middle class
Celebrating the bold, adventurous and rebellious spirit of youth
High energy Extreme citrus taste
Darr ke Aage Jeet hai
Slice was launched in India in 1993 as a refreshing mango drink and
to become a leading player in
the category. While other
players have portrayed the
mango as a simple and
innocent fruit, Slice
celebrates the sheer
indulgence and sensuality
involved in consuming a mango. It had recently added Tropicana Slice Alphonso to the

18 | P a g e
Original formula was invented in Virginia and drink was first sold in Tennessee in 1948. It
and middle class
Celebrating the bold, adventurous and rebellious spirit of youth
Slice was launched in India in 1993 as a refreshing mango drink and quickly went on
lice Alphonso to the

19. Segment For all people seeking fruit drink for regular occasions, parties
Target Group Youth in their late teens and twenties
Positioning Pure Mango Pleasure
USP Mango for all seasons
Tagline Alphonso


Nimbooz
Nimbooz was launched in India on the 28th of
as India’s first nationally ava
The product has been created to suit Indian tastes. Nimbooz
will be relevant and affordable offering for
go because of its ready-to
convenient and hygienic.


Segment For all people seeking a soft drink for regular occasions, parties
Target Group All age groups Lower, middle and upper class people
Positioning Lemon based freshness drink
USP Non aerated lemon drink
Tagline Ekdum Asli Indian







For all people seeking fruit drink for regular occasions, parties
Youth in their late teens and twenties
Pure Mango Pleasure
Mango for all seasons
Alphonso the king of Mangoes
Nimbooz was launched in India on the 28th of February 2009
available packaged Nimbu Pani.
The product has been created to suit Indian tastes. Nimbooz
affordable offering for consumers on the
to-drink format that is both
For all people seeking a soft drink for regular occasions, parties
All age groups Lower, middle and upper class people
Lemon based freshness drink
Non aerated lemon drink
Ekdum Asli Indian

19 | P a g e
For all people seeking fruit drink for regular occasions, parties
For all people seeking a soft drink for regular occasions, parties
All age groups Lower, middle and upper class people

20. Tropicana

Tropicana is the #1 brand in packaged 100% Juice* in the world in 2011 in off
It is committed to fostering
healthy lifestyles by ensuring
that its products are naturally
nutritious and provide the daily
benefits that one needs.
In India, Tropicana comes in
two categories: 100% Juices
(sold as Tropicana 100%) and
Juice Beverages (sold as
Tropicana).

Segment Fruit based beverage
Target Group Youth of middle income
Positioning Healthy fruit juice to give the nutrients required daily
USP High quality juice beverages and nectar
Tagline Let’s make breakfast 100%









Tropicana is the #1 brand in packaged 100% Juice* in the world in 2011 in off
It is committed to fostering
healthy lifestyles by ensuring
that its products are naturally
nutritious and provide the daily
In India, Tropicana comes in
two categories: 100% Juices
(sold as Tropicana 100%) and
ld as
Fruit based beverage
Youth of middle income
Healthy fruit juice to give the nutrients required daily
High quality juice beverages and nectar
Let’s make breakfast 100%

20 | P a g e
Tropicana is the #1 brand in packaged 100% Juice* in the world in 2011 in off-trade volume.

21. AQUAFINA
As soon as it was launched in the US in 1994 it became the bestselling brand in the
country due to its unique purification
system and great taste. In India it got
launched nationally by 2000 and became
one of India’s leading brands of bottled
water due to strength of its brand appeal
and distribution.

Segment For all people seeking hygienic drinking water
Target Group All age groups Lower, middle and upper class people
Positioning Pure and great taste of water
USP 5 step state
pure water and perfect taste
Tagline The purest part of you


GATORADE
Gatorade is World’s No.1 Sports Drink which was launched in India in 2004. It is an optimal
mix of water, carbohydrates and essential mineral salts
get absorbed instantly to rehydrate, replenish and refuel
like no other beverage can. It has become an integral part of
the kitbags of many leading sportspersons.

As soon as it was launched in the US in 1994 it became the bestselling brand in the
country due to its unique purification
system and great taste. In India it got
launched nationally by 2000 and became
nds of bottled
water due to strength of its brand appeal
For all people seeking hygienic drinking water
All age groups Lower, middle and upper class people
Pure and great taste of water
step state-of-the-art purification process to give consumers
pure water and perfect taste
The purest part of you
Gatorade is World’s No.1 Sports Drink which was launched in India in 2004. It is an optimal
mix of water, carbohydrates and essential mineral salts that
rehydrate, replenish and refuel
has become an integral part of
the kitbags of many leading sportspersons.

21 | P a g e
As soon as it was launched in the US in 1994 it became the bestselling brand in the
All age groups Lower, middle and upper class people
art purification process to give consumers
Gatorade is World’s No.1 Sports Drink which was launched in India in 2004. It is an optimal

22. Segment Sportsmen/Youngsters preferring flavo
Target Group Young sportsperson
Positioning Replenishes energy of a sportsman/athlete/young men and women
USP World’s No.1 Sports Drink
Tagline Rehydrate replenish refuel


Lays
Lay’s is the world’s largest
itself as an indispensable part of India’s snacking culture since its launch in 1995. Lay’s has
established itself as a youth brand and
continues to grow in the hearts and mind
of its consumers. Lay’s is made with
India’s best-quality fresh potatoes,
simply sliced and cooked in edible
vegetable oils, and then seasoned with
delicious flavours.
Segment Snack Food
Target Group Youth
Positioning Youth Brand
Tagline Pal Banaye Magical








Sportsmen/Youngsters preferring flavoured sports drink
Young sportsperson
Replenishes energy of a sportsman/athlete/young men and women
World’s No.1 Sports Drink
Rehydrate replenish refuel
largest and favourite snack food brand. It has steadily established
itself as an indispensable part of India’s snacking culture since its launch in 1995. Lay’s has
established itself as a youth brand and
continues to grow in the hearts and mind
of its consumers. Lay’s is made with
quality fresh potatoes,
simply sliced and cooked in edible
vegetable oils, and then seasoned with
Snack Food
Youth
Youth Brand
Pal Banaye Magical

22 | P a g e
red sports drink
Replenishes energy of a sportsman/athlete/young men and women
. It has steadily established
itself as an indispensable part of India’s snacking culture since its launch in 1995. Lay’s has

23. Kurkure
Kurkure is a crunchy new-age namkeen snack
brand which symbolizes light
Launched in 1999, its a perfect ‘namkeen’
snack, developed entirely in India, has come to
be identified with fun and lovable human
quirks.

Segment
Target Group
Tagline


Cheetos
Cheetos, a global brand, launched in India in 1995
has been positioned as a brand which inspires
imagination and a sense of adventure and fun.
Chester Cheetah is Cheetos’ brand mascot. Chester
Cheetah is the “Cool Cat” who accompanies kids
in their adventures.

Segment Snacks
Target Group Kids
Tagline Take a Cheetos break with Cheetos




age namkeen snack
brand which symbolizes light-hearted fun.
Launched in 1999, its a perfect ‘namkeen’
in India, has come to
be identified with fun and lovable human
Namkeen Snack
Youth
Tedha hai par mera hai
, a global brand, launched in India in 1995
has been positioned as a brand which inspires
imagination and a sense of adventure and fun.
Chester Cheetah is Cheetos’ brand mascot. Chester
Cheetah is the “Cool Cat” who accompanies kids

Take a Cheetos break with Cheetos

23 | P a g e

24. Uncle Chipps
Launched in 1992, Uncle Chipps
brand was acquired from Amrit
Agro Ltd. in 2000 by Frito-Lay
India.. Uncle Chipps is warm,
playful, lively, companionable
and traditional at heart, just like
the good-natured uncle.

Segment Potato Chips
Target Group All age group people
Tagline Bole mere Lips I love Uncle Chipps


Lehar
Lehar was launched in 1996
brand positioned itself by
emphasizing its irresistible taste and
using modern imagery. It promised
to deliver good taste through the use
of fresh oil in the manufacturing
process. They have 35 range of
varied namkeen.


Segment Traditional Namkeen
Target Group All age group people
Tagline Khushiyon ka khazana




Chipps was a pioneer in branded potato chips
brand was acquired from Amrit
Lay
Chipps is warm,
playful, lively, companionable
and traditional at heart, just like
Potato Chips
All age group people
Bole mere Lips I love Uncle Chipps
1996, with innovative small packs and traditional flavours. The
brand positioned itself by
emphasizing its irresistible taste and
using modern imagery. It promised
to deliver good taste through the use
of fresh oil in the manufacturing
nge of
Traditional Namkeen
All age group people
Khushiyon ka khazana

24 | P a g e
chips in India.The
innovative small packs and traditional flavours. The

25. Quaker Oats
The brand Quaker is more than 130 years old and is a world leader in the oatmeal segment.
Quaker Oats was launched in India in
and has a range of Quick Cooking Oats. Quaker Oats is a 100%
wholegrain and natural source of carbohydrates and dietary fibre

Segment Oatmeal
Target Group Person looking for balanced, active and healthy
lifestyle
Tagline For a healthier, happier you



3.3. THE JOINT VENTURES

PEPSI LIPTON INTERNATIONAL

It is a 50:50 joint venture between Pepsi and Unilever to manufacture and markets Lipton Ice
Tea variants in 67 countries.
product portfolio.

Lipton Ice Tea is a global product that offers a
combination of great taste and refreshment on
the go. It is available in two variants: Green Tea
in Mint & Lemon flavour; and Black Tea in
Lemon flavour.



The brand Quaker is more than 130 years old and is a world leader in the oatmeal segment.
Quaker Oats was launched in India in 2006. It has a national presence
and has a range of Quick Cooking Oats. Quaker Oats is a 100%
wholegrain and natural source of carbohydrates and dietary fibre
Oatmeal
Person looking for balanced, active and healthy
lifestyle
For a healthier, happier you
THE JOINT VENTURES
PEPSI LIPTON INTERNATIONAL
venture between Pepsi and Unilever to manufacture and markets Lipton Ice
Tea variants in 67 countries. The Lipton ice tea will add to PepsiCo's health and wellness
Lipton Ice Tea is a global product that offers a
combination of great taste and refreshment on
available in two variants: Green Tea
in Mint & Lemon flavour; and Black Tea in

25 | P a g e
The brand Quaker is more than 130 years old and is a world leader in the oatmeal segment.
venture between Pepsi and Unilever to manufacture and markets Lipton Ice
health and wellness

26. NOURISHCO

A joint venture between Tata Global Beverages Limited and PepsiCo India Holdings Private
Limited, NourishCo aims to provide meaningful hydration solutions in the non
ready-to-drink beverages segment in India and around the world. The
through a joint venture agreement between Tata and PepsiCo India. NourishCo has a vision
for growth and has tremendous potential with ‘good for you’ products.
NourishCo will be keenly focused on enhancing the hydration category in In
portfolio includes 3 Products which straddle the Top & Bottom End of the Pyramid in the
Beverages space:
Tata Gluco Plus, a glucose based drink in
an affordable cup format, Himalayan
Natural Mineral Water, pristine source
water and now Tata Water Plus, Nutrient
Water, an innovative product that seeks to
provide essential micronutrients. The
group has built an expansive pipeline of
innovations that will be used to fuel
growth and create newer hydration
solutions.







A joint venture between Tata Global Beverages Limited and PepsiCo India Holdings Private
Limited, NourishCo aims to provide meaningful hydration solutions in the non
drink beverages segment in India and around the world. The JV was formed in 2010
through a joint venture agreement between Tata and PepsiCo India. NourishCo has a vision
for growth and has tremendous potential with ‘good for you’ products.
NourishCo will be keenly focused on enhancing the hydration category in In
portfolio includes 3 Products which straddle the Top & Bottom End of the Pyramid in the
Tata Gluco Plus, a glucose based drink in
an affordable cup format, Himalayan
Natural Mineral Water, pristine source
r Plus, Nutrient
Water, an innovative product that seeks to
provide essential micronutrients. The
group has built an expansive pipeline of
innovations that will be used to fuel
growth and create newer hydration

26 | P a g e
A joint venture between Tata Global Beverages Limited and PepsiCo India Holdings Private
Limited, NourishCo aims to provide meaningful hydration solutions in the non-carbonated,
JV was formed in 2010
through a joint venture agreement between Tata and PepsiCo India. NourishCo has a vision
NourishCo will be keenly focused on enhancing the hydration category in India. The
portfolio includes 3 Products which straddle the Top & Bottom End of the Pyramid in the

27. 4. THE DISTRIBUTION PROCESS

4.1. The DIFFERENT CHANNELS OF PEPSICO

Figure 4: Different Channels of PepsiCo

4.2. 8 STEPS OF A SALES CALL
Pepsi follows a certain practice when it goes for its sales call. The PSR’s are taught to take
orders only in a certain manner. Now this is done for 2
 Increase Sales/call.
 Avoid any sort of damages as much as possible.
Since Pepsi is in the business of beverages, there needs to be attention given to spoilage
.Almost all the products under the
related to Slice brand has only 3 months. To avoid this they follow the FIFO method of
arranging the beverages.
Market
Channels

THE DISTRIBUTION PROCESS
e DIFFERENT CHANNELS OF PEPSICO

Figure 4: Different Channels of PepsiCo
8 STEPS OF A SALES CALL
Pepsi follows a certain practice when it goes for its sales call. The PSR’s are taught to take
orders only in a certain manner. Now this is done for 2 reasons:
Avoid any sort of damages as much as possible.
Since Pepsi is in the business of beverages, there needs to be attention given to spoilage
.Almost all the products under the Pepsi portfolio has a life of 6 months where in anyth
related to Slice brand has only 3 months. To avoid this they follow the FIFO method of
Market
Channels
Traditional
Trade
Convenience
Grocery
Eating &
Dining
Oganised
Trade
On-
Modern
Trade

27 | P a g e
THE DISTRIBUTION PROCESS

Pepsi follows a certain practice when it goes for its sales call. The PSR’s are taught to take
Since Pepsi is in the business of beverages, there needs to be attention given to spoilage
months where in anything
related to Slice brand has only 3 months. To avoid this they follow the FIFO method of
Convenience
Grocery
Eating &
Dining
-Premise
Modern
Trade

28. FIFO method of merchandising would mean last week’s stocks would be replaced from the
store room to the warm display and the following week
from the warm display into the cooler.

1) PREPERATION
This is when the PSR reaches the DB point. They are required to know the pending credit
bills. There is usually a Gate meeting wherein the CE addresses all his PSR’s for
targets and shops that require attention.

2) GREET THE CUSTOMER
The whole business model only works well if the relationship is maintained well throughout.
PSR’s are asked to always greet the customer by their name and talk to them regarding the
local happenings and build a good rapport with the shopkeeper.

3) STORE CHECKING
Store checking is very important while determining an order. The shop might have its
storeroom most of the times behind the outlet, hence the PSR needs to go to the storeroom
behind the shop in order to get an idea of the amount of stock the shop keeper has and
accordingly take orders.

4) MERCHANDISING
Merchandising is done on the cooler. During merchandising the Planogram is followed.
Merchandising is the process where coolers a
arranged and stacked in the cooler according to the Planogram. Now the second process is
replacing the warm display with stock from the store room.
This arrangement of the cooler is called the Planogram which
serves 3 purposes

FIFO method of merchandising would mean last week’s stocks would be replaced from the
store room to the warm display and the following week that same stock would be replaced
from the warm display into the cooler.
This is when the PSR reaches the DB point. They are required to know the pending credit
bills. There is usually a Gate meeting wherein the CE addresses all his PSR’s for
targets and shops that require attention.
GREET THE CUSTOMER
The whole business model only works well if the relationship is maintained well throughout.
PSR’s are asked to always greet the customer by their name and talk to them regarding the
cal happenings and build a good rapport with the shopkeeper.
STORE CHECKING
Store checking is very important while determining an order. The shop might have its
storeroom most of the times behind the outlet, hence the PSR needs to go to the storeroom
behind the shop in order to get an idea of the amount of stock the shop keeper has and
MERCHANDISING
Merchandising is done on the cooler. During merchandising the Planogram is followed.
Merchandising is the process where coolers are charged. The stock from the warm display is
arranged and stacked in the cooler according to the Planogram. Now the second process is
replacing the warm display with stock from the store room.
This arrangement of the cooler is called the Planogram which is given by the company. This

28 | P a g e
FIFO method of merchandising would mean last week’s stocks would be replaced from the
that same stock would be replaced
This is when the PSR reaches the DB point. They are required to know the pending credit
bills. There is usually a Gate meeting wherein the CE addresses all his PSR’s for the day’s
The whole business model only works well if the relationship is maintained well throughout.
PSR’s are asked to always greet the customer by their name and talk to them regarding the
Store checking is very important while determining an order. The shop might have its
storeroom most of the times behind the outlet, hence the PSR needs to go to the storeroom
behind the shop in order to get an idea of the amount of stock the shop keeper has and
Merchandising is done on the cooler. During merchandising the Planogram is followed.
re charged. The stock from the warm display is
arranged and stacked in the cooler according to the Planogram. Now the second process is
is given by the company. This

29.  It is easier to locate the flavour of your choice.
 Since it is easier to locate your flavour, there is quick opening and closing of the
cooler, thereby preventing any loss of cooling.
 Every product line gets


Figure 5: PLANOGRAM OF PEPSICO
5) DETERMINATION OF THE ORDER
Next step would be to check the amount of stock kept in the warm display and accordingly
ask the shop keepers for more
to make sure he gets the right orders. This step is called order determination. Here the PSR
would have to make sure the particular flavour asked for is in stock with the distributor.


6) PRESENTATION OF THE ORDER
The next step involves explaining the variable schemes available and cross checking with the
shop keeper .The orders that are taken cannot be mistaken and hence it is always cross
checked thereby preventing any chance of confusion.

It is easier to locate the flavour of your choice.
Since it is easier to locate your flavour, there is quick opening and closing of the
cooler, thereby preventing any loss of cooling.
Every product line gets its own shelf space, thereby not encroaching into other spaces.
Figure 5: PLANOGRAM OF PEPSICO

DETERMINATION OF THE ORDER
Next step would be to check the amount of stock kept in the warm display and accordingly
ask the shop keepers for more orders. The PSR here would have to check what is in the store
to make sure he gets the right orders. This step is called order determination. Here the PSR
would have to make sure the particular flavour asked for is in stock with the distributor.
TION OF THE ORDER
The next step involves explaining the variable schemes available and cross checking with the
shop keeper .The orders that are taken cannot be mistaken and hence it is always cross
checked thereby preventing any chance of confusion.

29 | P a g e
Since it is easier to locate your flavour, there is quick opening and closing of the
its own shelf space, thereby not encroaching into other spaces.

Next step would be to check the amount of stock kept in the warm display and accordingly
orders. The PSR here would have to check what is in the store
to make sure he gets the right orders. This step is called order determination. Here the PSR
would have to make sure the particular flavour asked for is in stock with the distributor.
The next step involves explaining the variable schemes available and cross checking with the
shop keeper .The orders that are taken cannot be mistaken and hence it is always cross

30. 7) KERBESIDE DEBRIEF
This stands for anything that needs to be done extra in order to satisfy the customer .It is
basically an assessment of what went wrong and how it could have been avoided.

8) ADMINISTRATION
In this step the PSR returns back to the DB, wherein he is required to print the bills for the
next day .The PSR’s once back, call up outlet owners who they missed on their routes and
collect orders on the phone.

4.3. THE MARKET MODEL
Primary Level


So, here lies the major difference between our business (beverages) and the other FMCG
business that cooling effect is very import
Cooler comes in between Retailer and the Consumer whereas in other FMCG business it
directly gets transferred from retailers to customers.

Plant
(Sangareddy)
Distributor
Point (DC)

IDE DEBRIEF
This stands for anything that needs to be done extra in order to satisfy the customer .It is
basically an assessment of what went wrong and how it could have been avoided.
ADMINISTRATION
In this step the PSR returns back to the DB, wherein he is required to print the bills for the
next day .The PSR’s once back, call up outlet owners who they missed on their routes and
THE MARKET MODEL
Secondary Level Tertiary Level
Figure 6: Market Model
So, here lies the major difference between our business (beverages) and the other FMCG
business that cooling effect is very important in beverages and hence, in the Value chain
Cooler comes in between Retailer and the Consumer whereas in other FMCG business it
directly gets transferred from retailers to customers.
Distributor
Point (DC)
Retailer Cooler

30 | P a g e
This stands for anything that needs to be done extra in order to satisfy the customer .It is
basically an assessment of what went wrong and how it could have been avoided.
In this step the PSR returns back to the DB, wherein he is required to print the bills for the
next day .The PSR’s once back, call up outlet owners who they missed on their routes and
Secondary Level Tertiary Level
So, here lies the major difference between our business (beverages) and the other FMCG
ant in beverages and hence, in the Value chain
Cooler comes in between Retailer and the Consumer whereas in other FMCG business it
Cooler Consumer

31. 5. TRADITIONAL TRADE

5.1. MODUS OPERANDI
It means the “Method of Operation”
Pepsi’s distribution systems is their approach. A PSR visits a shop one day and the very next
day the supply is delivered by the delivery team. Now this creates an everyday contact with
the retailer. Every day the retailers are in touch with either the PSR’s or the delivery people,
thereby addressing any sort of issues like damages etc.

5.2. CLASSIFICATION OF ROUTES
Every PSR follows a Route and there are sub
Now since it’s a 6 day week, every PSR visits an outlet twice in a week.

5.3. CE- CUSTOMER EXECUTIVE
CE Reports to the ASM and is in charge of the PSR’s. He is the person in charge of one
Distribution point. He is required to visit the market and accompany eve
routes. The PSR’s gives all the information to the CE first hand. If it’s an issue that can’t be
handled by the CE, then he/she can ask for assistance from the TDM or ASM.

5.4. PSR- PRE SALES REPRESENTATIVE
PSR’s reports directly to their
company as they are the ones who sell the products, and are responsible for acquiring new
customers, and in retaining the old ones. Their job requires them to be Street
many orders as possible. Their work includes informing the retailers about the promotions
and any new schemes launched if any. They are also required to push for the sale of any new
product launched in the market and make sure that the retailers are following the com
guidelines regarding the launch and the maintenance of Coolers. They basically deal with:

TRADITIONAL TRADE
MODUS OPERANDI
It means the “Method of Operation” followed. PepsiCo follow Pre Sales Method. The USP of
Pepsi’s distribution systems is their approach. A PSR visits a shop one day and the very next
day the supply is delivered by the delivery team. Now this creates an everyday contact with
ery day the retailers are in touch with either the PSR’s or the delivery people,
thereby addressing any sort of issues like damages etc.
CLASSIFICATION OF ROUTES
Every PSR follows a Route and there are sub-routes in every person’s route i.e. A, B, C.
w since it’s a 6 day week, every PSR visits an outlet twice in a week.
CUSTOMER EXECUTIVE
CE Reports to the ASM and is in charge of the PSR’s. He is the person in charge of one
Distribution point. He is required to visit the market and accompany eve
routes. The PSR’s gives all the information to the CE first hand. If it’s an issue that can’t be
handled by the CE, then he/she can ask for assistance from the TDM or ASM.
PRE SALES REPRESENTATIVE
directly to their respective CE’s. They are the most important asset for the
company as they are the ones who sell the products, and are responsible for acquiring new
customers, and in retaining the old ones. Their job requires them to be Street
as possible. Their work includes informing the retailers about the promotions
and any new schemes launched if any. They are also required to push for the sale of any new
product launched in the market and make sure that the retailers are following the com
guidelines regarding the launch and the maintenance of Coolers. They basically deal with:

31 | P a g e
followed. PepsiCo follow Pre Sales Method. The USP of
Pepsi’s distribution systems is their approach. A PSR visits a shop one day and the very next
day the supply is delivered by the delivery team. Now this creates an everyday contact with
ery day the retailers are in touch with either the PSR’s or the delivery people,
routes in every person’s route i.e. A, B, C.
CE Reports to the ASM and is in charge of the PSR’s. He is the person in charge of one
Distribution point. He is required to visit the market and accompany every PSR’s on their
routes. The PSR’s gives all the information to the CE first hand. If it’s an issue that can’t be
handled by the CE, then he/she can ask for assistance from the TDM or ASM.
respective CE’s. They are the most important asset for the
company as they are the ones who sell the products, and are responsible for acquiring new
customers, and in retaining the old ones. Their job requires them to be Street-smart and get as
as possible. Their work includes informing the retailers about the promotions
and any new schemes launched if any. They are also required to push for the sale of any new
product launched in the market and make sure that the retailers are following the company
guidelines regarding the launch and the maintenance of Coolers. They basically deal with:

32.  Order Booking
 Charging i.e. placing stock into cooler


Figure 7:
PSR I worked with having SAMNA on his hand






5.5. SAMNA
The FMCG industry generally faces a
SAMNA (Sales Automation Management for the New Age) is used to track consignments.
With the help of SAMNA, PSR’s could find out stock available with the distributor, helps to
check various schemes available.









Order Booking
Charging i.e. placing stock into cooler
Figure 7:
PSR I worked with having SAMNA on his hand
The FMCG industry generally faces a hurdle in the sales and distribution side of the business.
SAMNA (Sales Automation Management for the New Age) is used to track consignments.
With the help of SAMNA, PSR’s could find out stock available with the distributor, helps to
s available.

32 | P a g e
hurdle in the sales and distribution side of the business.
SAMNA (Sales Automation Management for the New Age) is used to track consignments.
With the help of SAMNA, PSR’s could find out stock available with the distributor, helps to

33. 5.6. ANALYSIS OF THE ENTIRE BEVERAGE PRODUCT RANGE, PRICING
STRUCTURE, AND THE MARGIN STRUCTURE

The beverage in PepsiCo is divided into three categories:
 GRB
 PET
 Aquafina
The study of is done under Raj Mohan Enterprises which is one of the stable depot of
beverages in Hyderabad.

GRB (Glass Returnable Bottle)

SKU's MRP
200ml(GRB)
PEPSI 10
MIRINDA 10
7UP 10
MOUNTAIN DEW 9
SLICE 10
250ml(GRB)
SLICE 16
300ml(GRB)
PEPSI 16
MIRINDA 16
7UP 16





ANALYSIS OF THE ENTIRE BEVERAGE PRODUCT RANGE, PRICING
STRUCTURE, AND THE MARGIN STRUCTURE
The beverage in PepsiCo is divided into three categories:
GRB – Glass Refillable Bottle
PET – Polyethylene Terephthalate
Aquafina
is done under Raj Mohan Enterprises which is one of the stable depot of
GRB (Glass Returnable Bottle)
Case CapacityTrade PriceReatilers Profit
24 214 26
24 214 26
24 214 26
24 193 23
24 214 26
24 349 35
24 346 38
24 346 38
24 346 38

33 | P a g e
ANALYSIS OF THE ENTIRE BEVERAGE PRODUCT RANGE, PRICING
is done under Raj Mohan Enterprises which is one of the stable depot of
Reatilers Profit Reatilers Margin (%)
10.83
10.83
10.83
10.65
10.83
9.11
9.90
9.90
9.90

34. PET(Polyethylene Terephtholate)

SKU's MRP
250ml(PET)
PEPSI 15
7UP 15
500ml(PET)
PEPSI 25
MIRINDA 25
7UP 25
MOUNTAIN DEW 25
600ml(PET)
PEPSI 36
MIRINDA 36
7UP 36
MOUNTAIN DEW 36
SLICE 35
LEHAR SODA 12
1L(PET)
PEPSI 40
MIRINDA 40
7UP 40
LEHAR SODA 22
1.2L(PET)
SLICE 62
2.25L(PET)
PEPSI 80
MIRINDA 80
7UP 80

SKU's MRP
250ml(CANS)
PEPSI 25
DIET PEPSI 25
MIRINDA 25
7UP 25
MOUNTAIN DEW 25
NIMBOOZ
350ml(PET) 20



PET(Polyethylene Terephtholate)
Case CapacityTrade PriceReatilers Profit
24 312 48
24 312 48
24 560 40
24 560 40
24 560 40
24 560 40
24 817 47
24 817 47
24 817 47
24 817 47
24 773 67
24 216 72
12 442 38
12 442 38
12 442 38
12 234 30
12 683 61
9 670 50
9 670 50
9 670 50
Case CapacityTrade PriceReatilers Profit
24 555 45
24 555 45
24 555 45
24 555 45
24 555 45
24 440 40

34 | P a g e
Reatilers Profit Reatilers Margin (%)
48 13.33
48 13.33
40 6.67
40 6.67
40 6.67
40 6.67
47 5.44
47 5.44
47 5.44
47 5.44
67 7.98
72 25.00
38 7.92
38 7.92
38 7.92
30 11.36
61 8.20
50 6.94
50 6.94
50 6.94
Reatilers Profit Reatilers Margin (%)
7.50
7.50
7.50
7.50
7.50
8.33

35. AQUAFINA

SKU's MRP
AQUAFINA
500ml 10
1L 20
2L 32


5.7. ANALYSIS OF THE ENTIRE FOOD PRODUCT RANGE, PRICING
STRUCTURE AND THE MARGIN STRUCTURE

The study of food is done under Gayathri Enterprises which is one of the stable depot of food
in Hyderabad.
Here everyday PSR’s cover different routes in a week, and hence they visit one store once a
week which makes 4 visits in a month.
The entire product range of food is as follow:

Lays
Chile Lemon
French Salt and Cracked Pepper
Classic Salted
American Style Cream & Onion
Magic Masala
Spanish Tomato Tango
West Indies Hot n Sweet Chill



Case CapacityTrade PriceReatilers Profit
24 204 36
12 215 25
9 256 32
ANALYSIS OF THE ENTIRE FOOD PRODUCT RANGE, PRICING
STRUCTURE AND THE MARGIN STRUCTURE
The study of food is done under Gayathri Enterprises which is one of the stable depot of food
everyday PSR’s cover different routes in a week, and hence they visit one store once a
week which makes 4 visits in a month.
The entire product range of food is as follow:
Lays Baked
Original Salted
French Salt and Cracked PepperSunkissed Tomato
Cream Herb & Onion
American Style Cream & OnionLay's Flat Thi Sweet Chill
Lay's Flat Swiss Grilled Cheese
West Indies Hot n Sweet Chill

35 | P a g e
Reatilers Profit Reatilers Margin (%)
15.00
10.42
11.11
ANALYSIS OF THE ENTIRE FOOD PRODUCT RANGE, PRICING
The study of food is done under Gayathri Enterprises which is one of the stable depot of food
everyday PSR’s cover different routes in a week, and hence they visit one store once a

36. Kurkure
Papad O Nutz Jeera Hing
Papad O Nutz Chilli Masala
Masala Munch
Green Chutney Rajasthani Style
Naughty Tomato
Hyderabad Hungama
Chilli Chatka


Uncle Chipps
Krunchy Tangles Mango Pickle
Krazy Twists Chatpata Masala
Plain Salted
Spicy Treat
Bombaat Chilli Masala
Jhakaas Tomato Twist


Quaker Original Flavour Quaker Flavoured Oats
200g Refill Classic Elaichi & Raisins
400g Refill Mild Pepper & Dal
500g Jar Homestyle Masala with Vegetables
600g Refill Strawberry Flavour with Apple
1kg Refill Kesar flavour with Kishmish
1kg Jar Lemony Veggie Mix with Capsicum
1.5Kg Refill

Kurkure-Puffed Range Kurkure Solid Masti
KK ZigZag Mad Masala Masala
KK ZigZag Yummy CheeseTeekha Meetha Khatta
KK Corn Cups Yummy Cheese
Green Chutney Rajasthani StyleKK Monster Smileez
KK Puffcorn Yummy Cheese
KK Puffcorn Mad Masala
Monster Paws Mad Masala
Monster Paws Funky Tomato
Kurkure Crunchy Rings
Cheetos Lehar
Krunchy Tangles Mango PickleCheesy Krunchy Aloo Bhujia
Krazy Twists Chatpata MasalaCheez Puffs Shahi Mix
Cheese Balls Chatpata Mix
Masala Balls Moong Dal
Tangy Loops Bikaneri Bhujia
Karare Peanuts
Navratan Mix
Khatta Meetha
Nut Cracker
Quaker Flavoured Oats
Classic Elaichi & Raisins
Mild Pepper & Dal
Homestyle Masala with Vegetables
Strawberry Flavour with Apple
Kesar flavour with Kishmish
Lemony Veggie Mix with Capsicum


36 | P a g e
Kurkure Solid Masti
Teekha Meetha Khatta
Aloo Bhujia
Chatpata Mix
Moong Dal
Bikaneri Bhujia
Karare Peanuts
Navratan Mix
Khatta Meetha
Nut Cracker

37. The details on the pricing, capacity and the margin structure is as follow:












SKU's Marked Price
Lays 5
10
15
20
35
60
Kurkure 5
10
15
20
Uncle Chipps 5
10
20
Cheetos 5
10
Quaker Oats 15
41
62
68
158
198

The details on the pricing, capacity and the margin structure is as follow:
Marked Price Trade Price Capacity Retailers Profit
4.55 224 0.45
9.09 120 0.91
13.64 80 1.36
18.18 64 1.82
31.82 48 3.18
54.55 28 5.45
4.55 225 0.45
9.09 128 0.91
13.64 80 1.36
18.18 60 1.82
4.17 164 0.83
9.09 120 0.91
18.18 80 1.82
4.17 164 0.83
9.09 120 0.91
13.64 1.36
37.27 3.73
56.36 5.64
61.82 6.18
143.64 14.36
171.43 26.57

37 | P a g e
Retailers Profit Retailers Margin
9.0
9.1
9.1
9.1
9.1
9.1
9.0
9.1
9.1
9.1
16.6
9.1
9.1
16.6
9.1
9.1
9.1
9.1
9.1
9.1
13.4

38. 6. ORGANISED TRADE

6.1. ON PREMISE

These include outlets like KFC’s, Pizza Hut where in the product is consumed on premise
and there is no taking home generally they enjoy Monopoly in On
like 2l and 1.5l will be absent. Here is where BIBS (Bag in Box/Concentrated
the beverage) comes into play. Here the BIBS is mixed with water and CO2 to create
what’s called the Fountain Pepsi in PMX machines(Post mixture machine).

The different categories are:
Figure 8:
Quick Serving Restaurants
(QSR)
Entertainment
Hotels
Fine Dine and Restaurant
Travel and Transport
Institutions

ORGANISED TRADE
These include outlets like KFC’s, Pizza Hut where in the product is consumed on premise
and there is no taking home generally they enjoy Monopoly in On-Premise. Hence SKU’s
like 2l and 1.5l will be absent. Here is where BIBS (Bag in Box/Concentrated
the beverage) comes into play. Here the BIBS is mixed with water and CO2 to create
what’s called the Fountain Pepsi in PMX machines(Post mixture machine).
Figure 8: Categories of On-Premise




•Pizza Hut
•KFC
•Big Cinemas
•PVR
•TAJ
•Green Park
•Urban Asia
•Cuba Libre
•Airport
•Railways
•Google
•Microsoft

38 | P a g e
These include outlets like KFC’s, Pizza Hut where in the product is consumed on premise
Premise. Hence SKU’s
like 2l and 1.5l will be absent. Here is where BIBS (Bag in Box/Concentrated syrup of
the beverage) comes into play. Here the BIBS is mixed with water and CO2 to create
what’s called the Fountain Pepsi in PMX machines(Post mixture machine).

39. 6.2. MODERN TRADE

Modern trade is working with big hyper markets such as the Big Bazaar, D Mart etc. In these
retail setups, wherein footfall is going to be very high, the game takes a whole new
dimension. If the rule of the game in TT was to create a glitch
wherein the company is in constant touch with the shop keepers, the game plan in modern
trade is to ‘get as much attention as possible’ and coupled with this scheme like BOGO.
Modern trade focuses on festive seasons, during these se
Modern trade focuses on putting up displays during these festive seasons by giving an offer
or two, Hence not only creating awareness but also getting sales.30% of the consumption in
urban areas come from Modern Trade. It
everyone’s attention. In modern trade most of the outlets are high sales outlets compared to
traditional trade. The different categories in modern trade are:

Figure 9: Categories of Modern Trade
FIVE STEPS CALL PROCESS OF MODERN TRADE
 Win Cold
 Win Display
 Win Shelf
 Win POSM (Point of Sale Material)
 Win PO1(Power of One i.e. both snacks and beverages)
•Big Bazaar
•Spencers
National Modern
Trade
•Ratnadeep
Regional Modern
Trade
Stand Alone Modern
Trade(SAMT)


Modern trade is working with big hyper markets such as the Big Bazaar, D Mart etc. In these
retail setups, wherein footfall is going to be very high, the game takes a whole new
dimension. If the rule of the game in TT was to create a glitch-free distribution system
wherein the company is in constant touch with the shop keepers, the game plan in modern
trade is to ‘get as much attention as possible’ and coupled with this scheme like BOGO.
Modern trade focuses on festive seasons, during these seasons people purchase a lot more.
Modern trade focuses on putting up displays during these festive seasons by giving an offer
or two, Hence not only creating awareness but also getting sales.30% of the consumption in
urban areas come from Modern Trade. It is about creating awareness in the outlet and get
everyone’s attention. In modern trade most of the outlets are high sales outlets compared to
traditional trade. The different categories in modern trade are:

Figure 9: Categories of Modern Trade

STEPS CALL PROCESS OF MODERN TRADE
Win Display

Win POSM (Point of Sale Material)
Win PO1(Power of One i.e. both snacks and beverages)
Big Bazaar
Spencers
Ratnadeep

39 | P a g e
Modern trade is working with big hyper markets such as the Big Bazaar, D Mart etc. In these
retail setups, wherein footfall is going to be very high, the game takes a whole new
ree distribution system
wherein the company is in constant touch with the shop keepers, the game plan in modern
trade is to ‘get as much attention as possible’ and coupled with this scheme like BOGO.
asons people purchase a lot more.
Modern trade focuses on putting up displays during these festive seasons by giving an offer
or two, Hence not only creating awareness but also getting sales.30% of the consumption in
is about creating awareness in the outlet and get
everyone’s attention. In modern trade most of the outlets are high sales outlets compared to
Win PO1(Power of One i.e. both snacks and beverages)

40. 7. THE MAJOR DIFFFERENCES
BETWEEN DIFFERENT CHANNELS
OF TRADE
TRADITIONAL TRADE
•It involves planned
buying
•Consumers might
touch and feel the
good or might not
•The goods are sold
to consumers at
Marked Price
•It is managed on
personal relation
•The onus of
service is on sales
person
•The consumer
might get credit
purchase
•No membership
facilities
•The product is sold
in original form
•Company give very
low credit period
to TT
•Promotions are
done seasonally
•Just the visibility
is ensured
•Sales are high
during the
season/festive

MAJOR DIFFFERENCES
BETWEEN DIFFERENT CHANNELS
OF TRADE
MODERN TRADE
•Impulse purchase
•consumers can
touch and feel
•Sold at price lower
than MP
•No personal relation
exist
•Self service by the
consumers
•Credit purchase is not
entertained
•Membership facility
•In original form
•Credit duration is
longer
•Promotions are done
monthly or weekly
basis
•Innovative
merchandising is
ensured
•Sales are high
throughout
ON-PREMISE
•Planned purchase
•cannot touch and
feel
•sold at a
premium price
•personal relation
might exist
•served by the
house keeping
person
•No credit
Purchase
•The original form
of the product
might get changed
•Credit duration is
longer compared
to TT
•Promotions are
rarely done
•Merchandising is
not importnat
•Seasonality does
not effect the sale

40 | P a g e
MAJOR DIFFFERENCES
BETWEEN DIFFERENT CHANNELS

Planned purchase
cannot touch and
sold at a
premium price
personal relation
might exist
served by the
house keeping
person
No credit
Purchase
The original form
of the product
might get changed
Credit duration is
longer compared
Promotions are
rarely done
Merchandising is
not importnat
Seasonality does
not effect the sale

41. 8. PROJECT SPECIFIC ANALYSIS
8.1. PO1
The Power of One begins with the unique ability to connect with consumers.
the first and the only unit across world chosen for PO1 project.
According to an internal study of the company, about 60 percent of the time people consume
a salty snack along with a refreshment beverage where as only 30 percent of the time it is
when people buy both of it together. So PO1 is an initiative to leverage the existing gap of 30
percent which we can capitalize on the leading positions of our iconic brands in
categories to drive the purchase of our snacks and beverages together. As we grow globally,
this idea is more powerful than ever.
This project of Power of One in Hyderabad has been allocated a total fund of 800 Cr, the
breakup of which is 450 Cr for
expenses.
Andhra Pradesh and Telangana is the state with largest category market for beverage, where
as PepsiCo has the lowest beverage share in the state compared to other states in the country.
Talking about the food, the state enjoys the strongest food market across country. And these
are the sole reasons why Hyderabad has been chosen for the Power of One Project.
There are thousand plus employees working towards the power of one initiative in
Hyderabad. A total of 60,000 and plus beverage and food retailers individually are under the
purview of this project amongst which 30% of the outlet are the common outlets know as
PO1 outlets having both beverage and food and there by affecting a total of 10,0
channel partners.
Considering all, there are two benefit synergies for selecting this area for the Power of One
project i.e.
 The beverages rides on food in the Urban
 The foods rides on Beverage in Rural
And there by providing a platform to

8. PROJECT SPECIFIC ANALYSIS
The Power of One begins with the unique ability to connect with consumers.
the first and the only unit across world chosen for PO1 project.
According to an internal study of the company, about 60 percent of the time people consume
ck along with a refreshment beverage where as only 30 percent of the time it is
when people buy both of it together. So PO1 is an initiative to leverage the existing gap of 30
percent which we can capitalize on the leading positions of our iconic brands in
categories to drive the purchase of our snacks and beverages together. As we grow globally,
this idea is more powerful than ever.
This project of Power of One in Hyderabad has been allocated a total fund of 800 Cr, the
breakup of which is 450 Cr for beverage, 250 Cr for food and remaining 100 Cr for other
Andhra Pradesh and Telangana is the state with largest category market for beverage, where
as PepsiCo has the lowest beverage share in the state compared to other states in the country.
king about the food, the state enjoys the strongest food market across country. And these
are the sole reasons why Hyderabad has been chosen for the Power of One Project.
There are thousand plus employees working towards the power of one initiative in
rabad. A total of 60,000 and plus beverage and food retailers individually are under the
purview of this project amongst which 30% of the outlet are the common outlets know as
PO1 outlets having both beverage and food and there by affecting a total of 10,0
there are two benefit synergies for selecting this area for the Power of One
The beverages rides on food in the Urban
The foods rides on Beverage in Rural
And there by providing a platform to leverage both the Urban and the rural effectively

41 | P a g e
8. PROJECT SPECIFIC ANALYSIS
The Power of One begins with the unique ability to connect with consumers. Hyderabad is
According to an internal study of the company, about 60 percent of the time people consume
ck along with a refreshment beverage where as only 30 percent of the time it is
when people buy both of it together. So PO1 is an initiative to leverage the existing gap of 30
percent which we can capitalize on the leading positions of our iconic brands in both
categories to drive the purchase of our snacks and beverages together. As we grow globally,
This project of Power of One in Hyderabad has been allocated a total fund of 800 Cr, the
beverage, 250 Cr for food and remaining 100 Cr for other
Andhra Pradesh and Telangana is the state with largest category market for beverage, where
as PepsiCo has the lowest beverage share in the state compared to other states in the country.
king about the food, the state enjoys the strongest food market across country. And these
are the sole reasons why Hyderabad has been chosen for the Power of One Project.
There are thousand plus employees working towards the power of one initiative in
rabad. A total of 60,000 and plus beverage and food retailers individually are under the
purview of this project amongst which 30% of the outlet are the common outlets know as
PO1 outlets having both beverage and food and there by affecting a total of 10,000 and plus
there are two benefit synergies for selecting this area for the Power of One
ural effectively.

42. 8.2. BACKGROUND OF THE PROJECT
The Project comprises of designing combos
to understand its impact on the trade, shopper and the consumer. The 30 outle
the basis of Sale amongst which there
Coke and few Pepsi Exclusive outlets.
CROSS SELLING
The combos are integration of beverage and Snack which is very much like
The Cross selling is the activity or practice of selling an additional product to an existing
customer. In cross-selling complimentary products
It is a tactics that allow grabbing a larger share of wallet (SOW) of the customers.
This activity of Cross selling
behaviour and has traditionally been used to increase sales and consumers awareness about
the company’s brand and product. It is a very common marketing strategy adopted
companies, where two or more products are sold together.

8.3. CONSIDERATIONS FOR SELECTING THE SAMPLE OUTLETS
In the initial days the master database was studied and the outlets were prioritized on the
basis of their contribution. The Outlets
Thereby the prioritized outlets were given a visit in order to develop the relation and the deal
in order to run the combo which required a great support from the retailers end.
The basic considerations for selecting the outlet for Perfect Combo were:

Outlet
with
Touch
Points

BACKGROUND OF THE PROJECT
The Project comprises of designing combos, and executing them in 30 bakery outlets in order
to understand its impact on the trade, shopper and the consumer. The 30 outle
e basis of Sale amongst which there are few mixed account that is having both Peps
Pepsi Exclusive outlets.
The combos are integration of beverage and Snack which is very much like
is the activity or practice of selling an additional product to an existing
complimentary products are sold to a customer.
grabbing a larger share of wallet (SOW) of the customers.
This activity of Cross selling the product aims at influencing consumer’s attitude and
r and has traditionally been used to increase sales and consumers awareness about
the company’s brand and product. It is a very common marketing strategy adopted
companies, where two or more products are sold together.
8.3. CONSIDERATIONS FOR SELECTING THE SAMPLE OUTLETS
In the initial days the master database was studied and the outlets were prioritized on the
basis of their contribution. The Outlets with maximum contribution were given preference.
Thereby the prioritized outlets were given a visit in order to develop the relation and the deal
in order to run the combo which required a great support from the retailers end.
selecting the outlet for Perfect Combo were:
PO1
Outlet
Location
Outlet
Type

42 | P a g e
and executing them in 30 bakery outlets in order
to understand its impact on the trade, shopper and the consumer. The 30 outlets are chosen on
mixed account that is having both Pepsi and
The combos are integration of beverage and Snack which is very much like Cross Selling.
is the activity or practice of selling an additional product to an existing
are sold to a customer.
grabbing a larger share of wallet (SOW) of the customers.
s at influencing consumer’s attitude and
r and has traditionally been used to increase sales and consumers awareness about
the company’s brand and product. It is a very common marketing strategy adopted by the
8.3. CONSIDERATIONS FOR SELECTING THE SAMPLE OUTLETS
In the initial days the master database was studied and the outlets were prioritized on the
with maximum contribution were given preference.
Thereby the prioritized outlets were given a visit in order to develop the relation and the deal
in order to run the combo which required a great support from the retailers end.

Outlet
Type

43.  Outlets with touch points
Touch points are our brand’s points of customer contact.
potential customer or customer comes in contact with the brand.
The outlets with touch points
decision.

 PO1 outlet
By PO1 outlet we mean an outlet having PepsiCo SKU’s of both Bev and Snacks in order to
ensure the execution of combo successfully.

 Outlet type
By outlet type we mean whether
in both kinds on equal proportion.

 Location
An outlet in a good location was given the priority. It was done to ensure that the entrants
become the prospective consumers of the combo repeatedly.

 Many prospective bakery outlets fall under UBC account which has tie up with Coke
for CBD
 In Nearly 7 outlets the food supply needed to be started.
 The Credit in the Food was stopped by the distributor which was one of the major
fight in many outlets
 The Market instability was one of the major cons

CHALLENGES

Outlets with touch points
Touch points are our brand’s points of customer contact. A touch point is any time a
potential customer or customer comes in contact with the brand.
The outlets with touch points were essential in order to influence the consumers buying
By PO1 outlet we mean an outlet having PepsiCo SKU’s of both Bev and Snacks in order to
ensure the execution of combo successfully.
By outlet type we mean whether an outlet is Mixed or PI as the combo needed to be executed
in both kinds on equal proportion.
An outlet in a good location was given the priority. It was done to ensure that the entrants
become the prospective consumers of the combo repeatedly.

Many prospective bakery outlets fall under UBC account which has tie up with Coke
In Nearly 7 outlets the food supply needed to be started.
The Credit in the Food was stopped by the distributor which was one of the major
The Market instability was one of the major constraint.

43 | P a g e
point is any time a
were essential in order to influence the consumers buying
By PO1 outlet we mean an outlet having PepsiCo SKU’s of both Bev and Snacks in order to
an outlet is Mixed or PI as the combo needed to be executed
An outlet in a good location was given the priority. It was done to ensure that the entrants
Many prospective bakery outlets fall under UBC account which has tie up with Coke
The Credit in the Food was stopped by the distributor which was one of the major

44. Below is the list of 30 bakery outlets selected for the execution of Combos. It covers 6
Distributors and 7 Beverage Customer Executives. All the outlets have an Unique
Identification Number which he

Figure 10: Details of the 30 Sample Bakery Outlet




Below is the list of 30 bakery outlets selected for the execution of Combos. It covers 6
Distributors and 7 Beverage Customer Executives. All the outlets have an Unique
Identification Number which helps us to track the Sales of that particular outlet.
: Details of the 30 Sample Bakery Outlet

44 | P a g e
Below is the list of 30 bakery outlets selected for the execution of Combos. It covers 6
Distributors and 7 Beverage Customer Executives. All the outlets have an Unique
lps us to track the Sales of that particular outlet.

: Details of the 30 Sample Bakery Outlet

45. 8.4. SURVEY TO UNDERSTAND THE CHOICE OF COMBO PACKS ON
CONSUMER BUYING DECISION
MAIN OBJECTIVE OF THE SURVEY
 To know the consumers preference
order to design the combo.

 To study the awareness of the consumers regarding the different brands of PepsiCo
To know of how many people are aware that Frito


 To study whether the Combo promotion in any particular outlet will influence the
buying decision of a prospective customer.

ANALYSIS OF THE SURVEY
Our prime focus is to understand how a consumer is influence by cross selling offers and
how this influence the buyi
http://goo.gl/forms/3ewqi1hyWa
During the whole research study, approach was taken to indulge the sample
to fill a questionnaire. The total
consumers.
Out of the Sample size following are the demographic information.
55%45%
GENDER RATIO

8.4. SURVEY TO UNDERSTAND THE CHOICE OF COMBO PACKS ON
CONSUMER BUYING DECISION
MAIN OBJECTIVE OF THE SURVEY
To know the consumers preference towards a particular brand of CSD and Snack in
order to design the combo.
To study the awareness of the consumers regarding the different brands of PepsiCo
To know of how many people are aware that Frito-Lay comes from PepsiCo stable.
the Combo promotion in any particular outlet will influence the
ision of a prospective customer.
ANALYSIS OF THE SURVEY
Our prime focus is to understand how a consumer is influence by cross selling offers and
how this influence the buyi ng pattern and perception of the consumer.
http://goo.gl/forms/3ewqi1hyWa is the link of the Google form.
During the whole research study, approach was taken to indulge the sample
to fill a questionnaire. The total sample size was 105 number of different age group
Out of the Sample size following are the demographic information.
GENDER RATIO
Male
Female
6%
71%
18%
5%
AGE GROUP

45 | P a g e
8.4. SURVEY TO UNDERSTAND THE CHOICE OF COMBO PACKS ON
towards a particular brand of CSD and Snack in
To study the awareness of the consumers regarding the different brands of PepsiCo.
Lay comes from PepsiCo stable.
the Combo promotion in any particular outlet will influence the
Our prime focus is to understand how a consumer is influence by cross selling offers and
ng pattern and perception of the consumer.
During the whole research study, approach was taken to indulge the sample population
different age group

AGE GROUP
Below 18
18 -25
26 -35
Above 35

46. More or less there is an equal distribution of Male and Female in the sample po
The sample mostly consists of student and employed people of 18
As PepsiCo doesn’t market its product to kids they were given less emphasis and the youth
were given importance during the analysis.
RESULTS
The people were asked of which brand of Cold drink they like amongst Pepsi and Coke. 57%
of the sample people said that they prefer Coke over Pepsi and nearly 43% of the sample said
that they prefer Pepsi over Coke.
The Questionnaire was designed to get a better understanding on the consumers brand
preference of Pepsi’s portfolio so as to design Perfect combo.
Pepsi Mirinda
35%
Which brand of PepsiCo Cold drink you prefer

More or less there is an equal distribution of Male and Female in the sample po
The sample mostly consists of student and employed people of 18 – 35 age group.
As PepsiCo doesn’t market its product to kids they were given less emphasis and the youth
were given importance during the analysis.
d of which brand of Cold drink they like amongst Pepsi and Coke. 57%
of the sample people said that they prefer Coke over Pepsi and nearly 43% of the sample said
that they prefer Pepsi over Coke.
The Questionnaire was designed to get a better understanding on the consumers brand
preference of Pepsi’s portfolio so as to design Perfect combo.
8%
25%
61%
6%
OCCUPATION
Business
Employed
Student
Housewife
Mirinda 7Up Mountain
Dew
Slice
14%
8%
33%
10%
Which brand of PepsiCo Cold drink you prefer
the most

46 | P a g e
More or less there is an equal distribution of Male and Female in the sample population.
35 age group.

As PepsiCo doesn’t market its product to kids they were given less emphasis and the youth
d of which brand of Cold drink they like amongst Pepsi and Coke. 57%
of the sample people said that they prefer Coke over Pepsi and nearly 43% of the sample said
The Questionnaire was designed to get a better understanding on the consumers brand

Business
Employed
Student
Housewife
Which brand of PepsiCo Cold drink you prefer

47. Across sample the population shows more liking towards Pepsi the flagship brand and
Mountain Dew.
When asked about the SKU they prefer buying, across sample nearly 33% of the population
voted for 500ml or 600ml PET bottles which has got the maximum vote amongst all.
In order to design a perfect Combo the preference of Snacks along with the Cold drink were
being asked.

Around 63% of the people across sample voted for Lays as the best combination for Perfect
Combo.
2.25L PET
1L PET
500ml or 600ml PET
250ml Cans
200ml Glass
What size of packaging do you generally
Lays
Chipps
63%
What do you prefer having with the cold

Across sample the population shows more liking towards Pepsi the flagship brand and

asked about the SKU they prefer buying, across sample nearly 33% of the population
voted for 500ml or 600ml PET bottles which has got the maximum vote amongst all.
In order to design a perfect Combo the preference of Snacks along with the Cold drink were
Around 63% of the people across sample voted for Lays as the best combination for Perfect
6%
8%
22%
What size of packaging do you generally
prefer
Uncle
Chipps
KurkureKurkure
Puffed
Corn
Cheetos
14%
18%
5%
1%
What do you prefer having with the cold
drink you have chosen

47 | P a g e
Across sample the population shows more liking towards Pepsi the flagship brand and

asked about the SKU they prefer buying, across sample nearly 33% of the population
voted for 500ml or 600ml PET bottles which has got the maximum vote amongst all.
In order to design a perfect Combo the preference of Snacks along with the Cold drink were

Around 63% of the people across sample voted for Lays as the best combination for Perfect
33%
31%
What size of packaging do you generally
What do you prefer having with the cold

48. Across the sample, more than 50% of the population are in common consensus regarding the
Rs 10 SKU of Snack as the best combination with the Cold drink.

The consumer awareness about the company’s brand and product
the total population of the sample were not aware about the fact that Frito Lay comes from
the PepsiCo stable.


Rs 5
4%
Which pack of the food preferred above
Did you know Pepsi and Frito
Puffed Corn, Uncle Chipps, Cheetos) come from the

Across the sample, more than 50% of the population are in common consensus regarding the
10 SKU of Snack as the best combination with the Cold drink.
awareness about the company’s brand and product were tested. Nearly 53% of
the total population of the sample were not aware about the fact that Frito Lay comes from
Rs 10 Rs 15 Rs 20 Rs 35
53%
7%
33%
3%
Which pack of the food preferred above
you generally buy
39%
61%
Did you know Pepsi and Frito -Lay (Lays, Kurkure, KK
Puffed Corn, Uncle Chipps, Cheetos) come from the
same Company ' PepsiCo '

48 | P a g e

Across the sample, more than 50% of the population are in common consensus regarding the

were tested. Nearly 53% of
the total population of the sample were not aware about the fact that Frito Lay comes from
Which pack of the food preferred above
Lay (Lays, Kurkure, KK
Puffed Corn, Uncle Chipps, Cheetos) come from the
Yes
No

49. Across the sample the combo deal has been appreciated by more than 50% of the total
population. It seems the perfect combo can generate an aspiration amongst the prospective
consumers.

FINDINGS
 The best combination for the Perfect Combo would
with a pack of Snack of Rs 10.
 The most demanded brand in the perfect combo would be Pepsi, Mountain Dew along
with Lays.
 The Company might even consider 250ml Cans for the Perfect Combo as it is highly
preferred amongst the co
 Though GRB is demanded, it should not be considered for Combo because the
consumers who prefer GRB’s are generally price sensitive and may not afford an
extra amount for combo.

To make sure the survey is an
we will “pilot test” the outcomes in the 30 chosen bakery outlets.



Will the above kind of offer in the outlet
induce you to make an unplanned purchase

Across the sample the combo deal has been appreciated by more than 50% of the total
population. It seems the perfect combo can generate an aspiration amongst the prospective
The best combination for the Perfect Combo would be 500ml or 600ml PET along
with a pack of Snack of Rs 10.
The most demanded brand in the perfect combo would be Pepsi, Mountain Dew along
The Company might even consider 250ml Cans for the Perfect Combo as it is highly
preferred amongst the consumers after 500ml PET
Though GRB is demanded, it should not be considered for Combo because the
consumers who prefer GRB’s are generally price sensitive and may not afford an
extra amount for combo.
survey is an appropriate length and that the outcomes are clear
we will “pilot test” the outcomes in the 30 chosen bakery outlets.
58%
42%
Will the above kind of offer in the outlet
induce you to make an unplanned purchase

49 | P a g e

Across the sample the combo deal has been appreciated by more than 50% of the total
population. It seems the perfect combo can generate an aspiration amongst the prospective
be 500ml or 600ml PET along
The most demanded brand in the perfect combo would be Pepsi, Mountain Dew along
The Company might even consider 250ml Cans for the Perfect Combo as it is highly
Though GRB is demanded, it should not be considered for Combo because the
consumers who prefer GRB’s are generally price sensitive and may not afford an
are clear and certain,
Will the above kind of offer in the outlet
induce you to make an unplanned purchase
Yes
No

50. 8.5. DESIGNING OF THE PERFECT COMBO
During the designing of the combos following perspectives were taken care of in order to
develop a right and an appropriate combo for the outlets.

 Win-Win situation:
The combo should be designed in such that it should benefit the customer to the
utmost and should also favor the retailer and the Company and thereby making a win
-win situation for all the part

 Opportunity:
Combos should offer new channel opportunities and exposure to new
customers; as it include products from different categories

 Volume:
Combos typically should increase
bundled together. And as the survey just 500ml or 600ml PET along with pack of Rs
10 Snacks will be a best combination to increase the sales volume.

 Margins:
Combo reduces the margin as it usually includes the discount

 Risk:
If not executed in a proper way, combo
lower contribution margins and potential channel conflict.

 Round Price:
Research has shown that consumers see products that use round prices as higher
quality. Another reason to use round prices goes back to the “lazy subtractor”
argument as it consumes less time of both retailer and the consumer.
A consumer who has come to bu
order to obtain the Round Price purchase.


DESIGNING OF THE PERFECT COMBO
During the designing of the combos following perspectives were taken care of in order to
nd an appropriate combo for the outlets.

The combo should be designed in such that it should benefit the customer to the
utmost and should also favor the retailer and the Company and thereby making a win
win situation for all the parties involved.
offer new channel opportunities and exposure to new
include products from different categories.
should increase unit sales volume as there are two products
bundled together. And as the survey just 500ml or 600ml PET along with pack of Rs
10 Snacks will be a best combination to increase the sales volume.
Combo reduces the margin as it usually includes the discounting.
ecuted in a proper way, combo may eat up more profitable sales, resulting in
lower contribution margins and potential channel conflict.
Research has shown that consumers see products that use round prices as higher
quality. Another reason to use round prices goes back to the “lazy subtractor”
argument as it consumes less time of both retailer and the consumer.
A consumer who has come to buy Cold drink lands up buying a pack of Snack in
order to obtain the Round Price purchase.

50 | P a g e
During the designing of the combos following perspectives were taken care of in order to
The combo should be designed in such that it should benefit the customer to the
utmost and should also favor the retailer and the Company and thereby making a win
offer new channel opportunities and exposure to new potential
volume as there are two products
bundled together. And as the survey just 500ml or 600ml PET along with pack of Rs
10 Snacks will be a best combination to increase the sales volume.
may eat up more profitable sales, resulting in
Research has shown that consumers see products that use round prices as higher
quality. Another reason to use round prices goes back to the “lazy subtractor”
argument as it consumes less time of both retailer and the consumer.
y Cold drink lands up buying a pack of Snack in

51. Taking above parameters into consideration the following two Combos were designed for the
30 sample Bakery Outlets.

The above combo designed is of 500ml PET bottl
the SKU contributes to the maximum movement compared to the other SKU. In this
particular design the consumer saves Rs 5 on grabbing the combo.

The above combo designed is of 1L PET along with a pack of Snack
the Combo the consumer saves Rs 5.

Rs 25
500ML/600ML
(CSD)
Rs 10
(LAYS/
KK)
Rs.40
1L
(CSD)
Rs. 15
(LAYS/KK)

Taking above parameters into consideration the following two Combos were designed for the
The above combo designed is of 500ml PET bottle along with a pack of Snack of Rs 10. Both
the SKU contributes to the maximum movement compared to the other SKU. In this
particular design the consumer saves Rs 5 on grabbing the combo.
The above combo designed is of 1L PET along with a pack of Snack of Rs 15. On grabbing
the Combo the consumer saves Rs 5.
Rs 30
SAVE
Rs.5
Rs.50
SAVE Rs.5

51 | P a g e
Taking above parameters into consideration the following two Combos were designed for the

e along with a pack of Snack of Rs 10. Both
the SKU contributes to the maximum movement compared to the other SKU. In this

of Rs 15. On grabbing

52. 8.6. DESIGNING OF THE COLLATERALS
Advertising is a form of communication whose purpose is to inform potential customer about
the product. Many advertisements are also designed to generate
through some promotion or offer.
Central goal of advertising is to convince the consumer and persuade them to purchase. The
ultimate objective of advertising is:
 To some how attract consumer to the market offering of the Company.
 Generating positive attitude.
 Reinforce positive association and ultimately generate sales.
The A.I.D.A Model
The most often cited model was developed by Lavidge
the process by which advertising works for decades. The consumers go through a variety of
stages in responding to advertising and other persuasive marketing message. Advertising is
an investment in a long term process
stages beginning with product unawareness and ending with an actual purchase.
If you've ever been motivated to take action due to an advertisement, you've likely been
influenced by a technique called A.I.D
action."




8.6. DESIGNING OF THE COLLATERALS
Advertising is a form of communication whose purpose is to inform potential customer about
the product. Many advertisements are also designed to generate increased consumption
through some promotion or offer.
Central goal of advertising is to convince the consumer and persuade them to purchase. The
ultimate objective of advertising is:
To some how attract consumer to the market offering of the Company.
rating positive attitude.
Reinforce positive association and ultimately generate sales.
The most often cited model was developed by Lavidge and Steiner, and has been regarded as
the process by which advertising works for decades. The consumers go through a variety of
stages in responding to advertising and other persuasive marketing message. Advertising is
an investment in a long term process that move consumers over time through a series of
stages beginning with product unawareness and ending with an actual purchase.
If you've ever been motivated to take action due to an advertisement, you've likely been
influenced by a technique called A.I.D.A, which stands for "attention, interest, desire,
ATTENTION
INTEREST
DESIRE
ACTION

52 | P a g e
Advertising is a form of communication whose purpose is to inform potential customer about
increased consumption
Central goal of advertising is to convince the consumer and persuade them to purchase. The
To some how attract consumer to the market offering of the Company.
and Steiner, and has been regarded as
the process by which advertising works for decades. The consumers go through a variety of
stages in responding to advertising and other persuasive marketing message. Advertising is
that move consumers over time through a series of
stages beginning with product unawareness and ending with an actual purchase.
If you've ever been motivated to take action due to an advertisement, you've likely been
.A, which stands for "attention, interest, desire,

53. ATTENTION
The attention portion of the marketing message occurs at the beginning and is designed to
give the prospects a reason to take notice.
This was ensured in all the sample outlets
designed to ensure the attention of the entrants in a particular outlet were
 Live Display
 3D Display
 Tent Cards
 Dangler
 Banner
 Foam Board

INTEREST

Once we have gained the prospects' attention, the next step is to maintain the interest in the
product or the offering to keep the recipients engaged.
So as the POSM have Pepsi and Lays, the
develop interest amongst the prospects towards the offering.



DESIRE

In the desire stage, our objective is to show the prospects how our product or offering can be
beneficial for them.
“Save Rs 5/-” was the message in all the POS to develop interest
for purchase.





The attention portion of the marketing message occurs at the beginning and is designed to
give the prospects a reason to take notice.
This was ensured in all the sample outlets through innovative ideas. The different POS
designed to ensure the attention of the entrants in a particular outlet were
Once we have gained the prospects' attention, the next step is to maintain the interest in the
product or the offering to keep the recipients engaged.
as the POSM have Pepsi and Lays, the two brands together for the first time
develop interest amongst the prospects towards the offering.
In the desire stage, our objective is to show the prospects how our product or offering can be
was the message in all the POS to develop interest and desire in the

53 | P a g e
The attention portion of the marketing message occurs at the beginning and is designed to
through innovative ideas. The different POS
Once we have gained the prospects' attention, the next step is to maintain the interest in the
two brands together for the first time it might
In the desire stage, our objective is to show the prospects how our product or offering can be
and desire in the prospects

54. ACTION

Now that we have created the desire to make a purchase, the prospect is persuaded to take
immediate action.
Below is the message of the POS put on the
Below are some of the Perfect Combo Outlets:

Now that we have created the desire to make a purchase, the prospect is persuaded to take
Below is the message of the POS put on the Outlets.
Figure 11: POS message
Below are some of the Perfect Combo Outlets:

Figure 12: Outlets with Banner

54 | P a g e
Now that we have created the desire to make a purchase, the prospect is persuaded to take

55. Figure 13:
Figure 14:

Figure 13: Outlets with Tent Cards on Table Top

Figure 14: Outlets with Live display

55 | P a g e

56. 8.7. EXECUTION PHASE
 1
st
Week
Redemption at the month end
In the initial week we had
Perfect Combo Outlet.
We had made an agreement with the outlet stating that we would reimburse them the
amount by the month end
In this method of execution the response was very dull as the retailers did not want to
bear the burden. And therefore from the second week the execution method was
changed.

 2
nd
Week
From the very next week in order to motivate the retailers we gave the
separately to the Outlet. Nearly 30% of the total order was generated as Combo for
the initial phase and further the Combo Stock was given as per Sale.
We tried maintaining a Customer Detail Form and a Manual bill in the Outlets in
order to keep a strong Vigil.
Figure 15:

8.7. EXECUTION PHASE
the month end
week we had tried maintaining a Customer Details Form in
Perfect Combo Outlet.
We had made an agreement with the outlet stating that we would reimburse them the
amount by the month end according to the combo sale done.
In this method of execution the response was very dull as the retailers did not want to
bear the burden. And therefore from the second week the execution method was
From the very next week in order to motivate the retailers we gave the
separately to the Outlet. Nearly 30% of the total order was generated as Combo for
the initial phase and further the Combo Stock was given as per Sale.
We tried maintaining a Customer Detail Form and a Manual bill in the Outlets in
ep a strong Vigil.
Figure 15: Sample of Customer Detail Form and Manual Bill

56 | P a g e
Customer Details Form in all the
We had made an agreement with the outlet stating that we would reimburse them the
In this method of execution the response was very dull as the retailers did not want to
bear the burden. And therefore from the second week the execution method was
From the very next week in order to motivate the retailers we gave the Combo stock
separately to the Outlet. Nearly 30% of the total order was generated as Combo for
the initial phase and further the Combo Stock was given as per Sale.
We tried maintaining a Customer Detail Form and a Manual bill in the Outlets in
Sample of Customer Detail Form and Manual Bill

57.  Retailers can be asked to stop keeping 400 ml of Coke and we built an agreement to
supply 100% PI 500ml Combo stock.

 We develop Perfect Combo Outlet where we provide 100%
cases and above every week.

 Outlets can be supplied with Combo Stock separately. It can be a special net
packaging with locks so as to bundle the product safely.


8.8. SPOT TESTING
It is a test limited to a few key or sample
A test conducted on the spot to yield immediate results.
Spot testing was done in two of the outlets, both belonging to the Mixed account one being a big
outlet and the other being a small outlet in
The testing was done for 4 hrs in each of the outlet and records were maintained through tally. One of
the sample of the tally recording is as follow.







Figure 16: Sample of Tally record of Pilot Test
SUGGESTIONS


Retailers can be asked to stop keeping 400 ml of Coke and we built an agreement to
supply 100% PI 500ml Combo stock.
We develop Perfect Combo Outlet where we provide 100% Combo on an order of 5
cases and above every week.
Outlets can be supplied with Combo Stock separately. It can be a special net
packaging with locks so as to bundle the product safely.
limited to a few key or sample points or a relatively small percentage of random
to yield immediate results.
Spot testing was done in two of the outlets, both belonging to the Mixed account one being a big
outlet and the other being a small outlet in order to derive the Combo Sale and draw insights on it.
The testing was done for 4 hrs in each of the outlet and records were maintained through tally. One of
the sample of the tally recording is as follow.
Figure 16: Sample of Tally record of Pilot Test

57 | P a g e
Retailers can be asked to stop keeping 400 ml of Coke and we built an agreement to
Combo on an order of 5
Outlets can be supplied with Combo Stock separately. It can be a special net
points or a relatively small percentage of random spots.
Spot testing was done in two of the outlets, both belonging to the Mixed account one being a big
order to derive the Combo Sale and draw insights on it.
The testing was done for 4 hrs in each of the outlet and records were maintained through tally. One of

58. The results driven from the Spot testing has been attached below and further the analysis has
been done for the big outlet and the Small outlet individually.
Figure 17:

The results driven from the Spot testing has been attached below and further the analysis has
been done for the big outlet and the Small outlet individually.

Figure 17: Spot Testing in a Small Outlet



58 | P a g e
The results driven from the Spot testing has been attached below and further the analysis has

59. Figure 18:





gure 18: Spot testing in a Big Outlet

59 | P a g e

60. ANALYSIS OF THE SPOT TESTING
In a big outlet as there are many variants of fast food the movement of packed food is less.
In such outlets the PI food can be pushed to the PI bev
instance we can initially leverage the difference between the Bev and the Food that is 5% in
this case.
Where as in case of Small Outlet the sale
have very less variants of fast food.
And therefore a person willing to spend for food will be unwilling to grab the Combo as it
requires a larger share of Wallet.
ENTRANTS
Series1 100%
0%
20%
40%
60%
80%
100%
120%
ENTRANTS
Series1 100%
0%
20%
40%
60%
80%
100%
120%

ANALYSIS OF THE SPOT TESTING
In a big outlet as there are many variants of fast food the movement of packed food is less.
In such outlets the PI food can be pushed to the PI bev customers through Combo. For
instance we can initially leverage the difference between the Bev and the Food that is 5% in
Where as in case of Small Outlet the sale of food is higher than bev unlike a big outlet as they
s of fast food.
And therefore a person willing to spend for food will be unwilling to grab the Combo as it
quires a larger share of Wallet.
ENTRANTS % OF PI SNACKS % of PI Bev
100% 13%
BIG OUTLET
ENTRANTS % OF PI SNACKS % of PI Bev
48%
SMALL OUTLET

60 | P a g e

In a big outlet as there are many variants of fast food the movement of packed food is less.
customers through Combo. For
instance we can initially leverage the difference between the Bev and the Food that is 5% in

ev unlike a big outlet as they
And therefore a person willing to spend for food will be unwilling to grab the Combo as it
% of PI Bev
18%
% of PI Bev
38%

61. In a small outlet there are chances of winning over Coke through offering Combo. The
consumers prefer Combo as they are benefited more by a smaller share of wallet.
The testing was further done in the outlet to see the Cases where the Combo has won over the
Coke’s share.
Sales Initially
Sales after Combo Implementation

The above data was collected from the outlet and was even backed by
therefore it implies that there are cases where PI combo wins over Coke.
The Combo sale against the sale of PI 500ml is as follow

The combo sale in the big outlet during the Spot testing was 8 bottles when extrapolated fo
10 hrs should come to nearly 20 bottles.
But the daily sale of Combo in this outlet is
did not push much of the combo after the spot testing. And therefore in order to encourage
retailer to drive Combo he should be given some incentiv
36%
29%
0% 20% 40%
COMBO SALE IN BIG OUTLET

In a small outlet there are chances of winning over Coke through offering Combo. The
hey are benefited more by a smaller share of wallet.
The testing was further done in the outlet to see the Cases where the Combo has won over the
Regular
72 bottles 24
Sales after Combo Implementation 72 bottles 10
Total
PI 500ml/600ml Sales
The above data was collected from the outlet and was even backed by the sales data. And
therefore it implies that there are cases where PI combo wins over Coke.
The Combo sale against the sale of PI 500ml is as follow
the big outlet during the Spot testing was 8 bottles when extrapolated fo
20 bottles.
But the daily sale of Combo in this outlet is nearly 10 bottles, which implies that the Retailers
did not push much of the combo after the spot testing. And therefore in order to encourage
should be given some incentive or 100 % stock on Combo.
60% 80% 100% 120%
COMBO SALE IN BIG OUTLET
Combo Sale during Spot Test
combo sale
Bought PI 500 ml

61 | P a g e
In a small outlet there are chances of winning over Coke through offering Combo. The
hey are benefited more by a smaller share of wallet.
The testing was further done in the outlet to see the Cases where the Combo has won over the
Combo
48
24 38
PI 500ml/600ml Sales
Coke
the sales data. And

the big outlet during the Spot testing was 8 bottles when extrapolated for
hich implies that the Retailers
did not push much of the combo after the spot testing. And therefore in order to encourage
e or 100 % stock on Combo.
Combo Sale during Spot Test
combo sale
Bought PI 500 ml

62. A Small outlet does not need any
Sales.
In order to analyse if we can do a packaging and sale the Combos, we have tried analysing
the on premise and off premise consumption of combo. And as the result shows the company
might think of special net packaging as the off premise consumption is very high.

82%
32%
0 0.2 0.4 0.6
COMBO SALE IN SMALL OUTLET
On Premise Consumption
Off Premise Consumption
100%
On Premise and Off Premise Consumption

any incentive, as they drive combo in order to generate high
In order to analyse if we can do a packaging and sale the Combos, we have tried analysing
premise and off premise consumption of combo. And as the result shows the company
might think of special net packaging as the off premise consumption is very high.


82%
0.6 0.8 1 1.2
COMBO SALE IN SMALL OUTLET
Combo Sale during Spot Test
combo sale
Bought PI 500 ml
Big Outlet
On Premise Consumption 12% 11%
Off Premise Consumption 88% 89%
0%
20%
40%
60%
80%
100%
On Premise and Off Premise Consumption

62 | P a g e

, as they drive combo in order to generate high
In order to analyse if we can do a packaging and sale the Combos, we have tried analysing
premise and off premise consumption of combo. And as the result shows the company
might think of special net packaging as the off premise consumption is very high.

Combo Sale during Spot Test
Bought PI 500 ml
On Premise and Off Premise Consumption

63. 8.9. SALES ANALYSIS

 In nearly 70% of the outlet it lead to increase in the Sales
 In 7 Outlets the beverage
 We started with the food supply in nearly 8 outlets
 An agreement was built in an outlet
100% Combo Stock








In nearly 70% of the outlet it lead to increase in the Sales of more than 30%
erage built was created through Combo
ood supply in nearly 8 outlets
was built in an outlet to stop 400ml Coke Supply and we give them


63 | P a g e
of more than 30%
and we give them

64. 9. RECOMMENDATIONS AND
 The combo should be designed so as to obtain a round price. It has been observed that
consumer who has come to buy Cold drink lands up buying a pack of Snack in order
to obtain the Round Price purchase.

 Live Display and Tent Card were the
Pilot. And Tent Card if at all considered further should be re
tape on the bottom.

 The best combination for the Perfect Combo would be 500ml or 600ml PET along
with a pack of Snack of

 The Company might even consider 250ml Cans for the Perfect Combo as it is highly
preferred amongst the consumers after 500ml PET


 Though GRB is demanded, it should not be considered for Combo because the
consumers who prefer GRB’s are generally p
extra amount for combo.

 Bottle tags and cooler stickers are the other suggestions that can be thought of as
POSM.

 If at all company wants to push beverage sale through combo it will have to design



Rs 15/-
250ml
PET

9. RECOMMENDATIONS AND SUGGESTIONS
The combo should be designed so as to obtain a round price. It has been observed that
consumer who has come to buy Cold drink lands up buying a pack of Snack in order
to obtain the Round Price purchase.
Live Display and Tent Card were the most successful marketing collateral during the
Pilot. And Tent Card if at all considered further should be re-designed with a double
The best combination for the Perfect Combo would be 500ml or 600ml PET along
with a pack of Snack of Rs 10.
The Company might even consider 250ml Cans for the Perfect Combo as it is highly
preferred amongst the consumers after 500ml PET
Though GRB is demanded, it should not be considered for Combo because the
consumers who prefer GRB’s are generally price sensitive and may not afford an
extra amount for combo.
Bottle tags and cooler stickers are the other suggestions that can be thought of as
If at all company wants to push beverage sale through combo it will have to design
Rs20/-
Snack
Rs 30/-
Perfect
Combo

64 | P a g e
The combo should be designed so as to obtain a round price. It has been observed that
consumer who has come to buy Cold drink lands up buying a pack of Snack in order
most successful marketing collateral during the
designed with a double
The best combination for the Perfect Combo would be 500ml or 600ml PET along
The Company might even consider 250ml Cans for the Perfect Combo as it is highly
Though GRB is demanded, it should not be considered for Combo because the
rice sensitive and may not afford an
Bottle tags and cooler stickers are the other suggestions that can be thought of as
If at all company wants to push beverage sale through combo it will have to design

65. 10. ANNEXURE
QUESTIONNAIRE
Understanding the choice of Combo Packs on Consumer Buying Decision
The questionnaire has been prepared to understand the consumers buying behaviour and preference
towards the brand.
You are requested to kindly answer all the
a brand.
DEMOGRAPHIC INFORMATION
Name

Age
Below 18
18 - 25
26 - 35
Above 35
Gender
Male
Female
Occupational Status
Student
Housewife
Employed
Business
BEVERAGE SPECIFIC INFORMATION
Which Brand of Cold drink do you like?

Which brand of Pepsi Cold drink you prefer the most
Pepsi
Mountain Dew
7Up
Mirinda
Slice


Understanding the choice of Combo Packs on Consumer Buying Decision
The questionnaire has been prepared to understand the consumers buying behaviour and preference
You are requested to kindly answer all the questions purely on your personal liking and preference towards
DEMOGRAPHIC INFORMATION


INFORMATION
Which Brand of Cold drink do you like?
Which brand of Pepsi Cold drink you prefer the most
Mountain Dew

65 | P a g e
Understanding the choice of Combo Packs on Consumer Buying Decision
The questionnaire has been prepared to understand the consumers buying behaviour and preference
questions purely on your personal liking and preference towards

66. How often do you consume Cold drink
Once a week
Twice a week
Once in 15 days
Once in a month
What size of packaging do you generally prefer
200ml Glass
250ml Cans
500ml or 600ml PET
1L PET
2.25L PET
SNACKS SPECIFIC INFORMATION
What do you prefer having with the cold drink you have chosen
Lays
Kurkure
Kurkure Puffed Corn
Cheetos
Uncle Chipps
Any Particular Flavour if preferrred


Which pack of food preferred above you generally buy
Rs 5
Rs 10
Rs 15
Rs 20
Rs 35

Did you know Pepsi and Frito
Cheetos) come from the same
Yes
No

How often do you consume Cold drink
Once a week
Twice a week
Once in 15 days
Once in a month
What size of packaging do you generally prefer
200ml Glass
250ml Cans
500ml or 600ml PET

SNACKS SPECIFIC INFORMATION
What do you prefer having with the cold drink you have chosen
Kurkure Puffed Corn
Uncle Chipps
Any Particular Flavour if preferrred
Which pack of food preferred above you generally buy
Did you know Pepsi and Frito - Lay (Lays, Kurkure, KK Puffed Corn, Uncle Chipps,
Cheetos) come from the same Company ' PepsiCo '

66 | P a g e
Lay (Lays, Kurkure, KK Puffed Corn, Uncle Chipps,

67. Perfect Combo Promotion
Will the above kind of offer in the outlet induce you to make an unplanned purchase
Yes
No













Perfect Combo Promotion - You Save Rs 5 on the purchase
Will the above kind of offer in the outlet induce you to make an unplanned purchase

67 | P a g e
You Save Rs 5 on the purchase

Will the above kind of offer in the outlet induce you to make an unplanned purchase

68. 11. REFERENCES
Websites:
 www.pepsico.com/annual11/modules/module6.html
 www.cirkle.com/campaigns/
 www.pepsiindia.co.in
 www.investopedia.com/terms/c/
 www.beverageindustry.in
 www.learnmarketing.net/


Books:
 “Principles of Marketing” by Dr. Philip Kotler
 “Competitive strategies for analyzing the industry and competitor”
by Micheal E.Porter










.com/annual11/modules/module6.html
www.cirkle.com/campaigns/pepsico-power-of-one
.co.in
www.investopedia.com/terms/c/cross-sell.asp
www.beverageindustry.in
www.learnmarketing.net/AIDA.html
“Principles of Marketing” by Dr. Philip Kotler
“Competitive strategies for analyzing the industry and competitor”
by Micheal E.Porter

68 | P a g e

“Competitive strategies for analyzing the industry and competitor”

69. 12. GLOSSARY
POG Planogram
SKU Stock Keeping Unit
GRB Glass Refillable/Returnable bottles
CSD Carbonated Soft drinks
BSD Bottled Soft drinks
AF Aquafina
FMO Focus Month Objective
MT Modern Trade
TT Traditional Trade
OP On Premises
SAMT Standalone Modern
E&D Eat and Dine
TSB Territory Score Board
BIB Bag in Box (Concentrated Syrup)
COBO Company owned bottling operations
FOBO Franchise owned bottling Operations
YAGO Year Ago
PAGO Previous Ago
PSR Pre Sales Representatives





Planogram
Stock Keeping Unit
Glass Refillable/Returnable bottles
Carbonated Soft drinks
Bottled Soft drinks
Aquafina
Focus Month Objective
Modern Trade
Traditional Trade
On Premises
Standalone Modern trade
Eat and Dine
Territory Score Board
Bag in Box (Concentrated Syrup)
Company owned bottling operations
Franchise owned bottling Operations
Year Ago
Previous Ago
Pre Sales Representatives

69 | P a g e