A Project Study Report On “Advertisement Effectiveness” Submitted in partial fulfillment for the Award of degree of Master of Business Administration Submitted By: - Submitted To:- Purohit Chetan Kumar Mrs. Suhasini Varma MBAPart 2nd year HOD MBA 2011-2013 Rajasthan Institute of Engineering & Technology, Bhakrota Jaipur PREFACE Market provides a key to gain actual success only to those brands which match best to the current environment i.e. ”imperative” which can be delivered what are the people needs and they are ready to buy at the right time without any delay. It is perfectly true but this also depends on availability of good quality products and excellent taste and services which further attract and add a golden opportunity for huge sales. This also depends on the good planning approach and provide ample opportunity plus sufficient amount of products for sales in the coming next financial year. This survey report introduces study of consumer’s preferences for PEPSI. After going through a detail analysis of market behavior and future prospect, it may also provide an opportunity to PEPSI to frame a good future plan to satisfy maximum needs of the customers and established its guiding role in the market of Kanpur in particular and throughout the country as a whole. The study report will also provide an opportunity to delineate its market potential business areas, products & services are to be offered by the company to the customers. This study report also provides the various factors affecting the services. Marketing Division of PEPSI has to keep in mind various factors specially while preparing a plan for marketing its product or services. Details description along with analysis of surveyed data is being presented in this report. 2 Acknowledgement I express my sincere thanks to my project guide Dr. Suhasini Varma, HOD MBA., for guiding me right from the inception till the successful completion of the project. I sincerely acknowledge her for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support she had provided to me with all stages of this project. I would also like to thank the supporting staff ___________________________ Department, for their help and cooperation throughout our project. Purohit Chetan Kumar 3 Executive Summary PepsiCo is the world’s premier consumer Products Company focused on convenience food and beverages. We seek to produce healthy financial reward to investors a we provide opportunities for growth and enrichment to our employee. PepsiCo is a world leader in convenient foods and beverages, with 2011 revenues of more than $44 billion and 203,000 employees. The group has built an expansive beverage and foods business. To support its operations, PepsiCo has 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned PepsiCo’s a business based on its sustainability vision of making tomorrow better than today. PepsiCo’s commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers. The whole business of any FMCG ( Fast Moving Consumers Good ) company mainly depends on the retailers , so we can say that the retailers are the backbone of any FMCG organization .The whole project named as EDS (Each dealer survey) & Visi Report , in which the whole analysis based on current market position in Kanpur city. The project was undertaken under the guidelines of PepsiCo India Holding Pvt. Ltd. to comparative study between PepsiCo and coke in order to increase the sales of Pepsi and problems faced by distributor and retailers and recommend the company how to solve these problem. A detailed survey to the consumer was carried to find out their preferences for Soft Drinks. The details of the methodology are stated below. Area Jaipur City only, research design: Exploratory and descriptive. Sources of information are primary and secondary data. 4 Contents 1. Introduction to the Industry 2. Introduction to the Organization 3. Research Methodology 3.1 Title of the Study 3.2 Duration of the Project 3.3 Objective of Study 3.4 Type of Research 3.5 Sample Size and method of selecting sample 3.6 Scope of Study 3.7 Limitation of Study 4. Facts and Findings 5. Analysis and Interpretation 6. SWOT 7. Conclusion 8. Recommendation and Suggestions 9. Appendix 10. Bibliography 5 Introduction to the Industry Beverages Industry in India Indian Beverages industry's size is Rs. 8 thousand crores and it is dominated by two players viz Pepsi & Coke only. This high profile industry has lot of potential for growth as per capita consumption in India is 9 bottles per annum (year) as compared to 20 bottles in Sri Lanka, 14 in Pakistan, while 12 bottles a person in Nepal. The RKJ group is India's leading supplier of retailer brand Carbonated and Non-Carbonated soft drinks, with beverage manufacturing facilities in India and Nepal. Its experience in the beverage industry dates back to the sixties when it had the first franchise at Mathura. The family manufactures and markets Carbonated and Non-Carbonated Soft Drinks and Minerals Water under PEPSI brand. The various flavors and sub- brands are PEPSI, Miranda Orange, Miranda Lemon, Mountain Dew, and 7UP, Slice Orange, Everest Soda and Aquafina. It has the license to supply beverages in the territories of Western U.P., part of M.P., half of the Haryana, whole of Rajasthan, Goa 3 districts of Maharashtra, and 13 districts of Karnataka and whole of Nepal. The group has in total 18 bottling plants in India & Nepal and is responsible for producing and marketing 44% of PEPSI requirement in India. The major ingredient in a soft drink is water. It constitutes close to 90% of the soft drink content. Added to this, the drink also contains sweeteners, Carbon dioxide, Citric Acid/Malic acid, Colors, Preservatives, Anti Oxidants and other emulsifying agents, etc. The major players in the soft drinks market in India are PepsiCo and Coca-Cola Co, like elsewhere in the world. Coca-Cola acquired a number of local brands like Limca, Gold Spot and Thumps Up when it entered Indian market for the second time. PepsiCo’s soft drink portfolio also consists of Miranda and 7Up along with Pepsi. The market share of each of the company is more or less the same, though there is a conflict in the estimates quoted by different sources. 6 Pepsi Bottling Plant in India. 1. Goa, Salcete 2. Karnataka, Dharwad 3. Rajasthan, Bhiwadi 4. Rajasthan, Jodhpur 5. Rajasthan, Jaipur 6. Rajasthan, Alwar 7. Uttar Pradesh, Greater Noida 8. Uttar Pradesh, Kosi 9. Kathmandu, Nepal Introduction to the Organization Type : Food & Non-alcoholic beverage Manufacturer : PepsiCo. Country of Origin : United States Founded : New Bern N.C, U.S. (1890) Founder(s) : Caleb Bradham, Donald M. Kendall and Herman W. Lay Headquarters : Purchase, New York, U.S. R & D headquarters in Valhalla Key People : Indra Nooyi ( Chairperson and CEO ) Products : Pepsi, Diet Pepsi, Mountain Dew, AMP Energy, Aquafina, 7 Sierra, IST, SoBe, Starbucks Frappuccino, Lipton Iced Tea, 7up, Miranda, Izze, Tropicana Products, Copella, Naked Juice, Gatorade, Propel Fitness Water, Quaker Oats Company, Lay's, Doritos, Cheetos, Kurkure, Fritos, Rold Gold, Ruffles, Tostitos, Slice. Revenue : US $ 44.3 billion Operating Income : US $ 7.3 billion Net Income : US $ 6.24 billion Employees : 203,000 (2012) Divisions : PepsiCo Americas, PepsiCo International Web Site : PepsiCo.com Pepsi Cola Company now produces and markets nearly 200 refreshment beverages to retail, restaurants and food service customers in more than 190 countries and territories around the world. PepsiCo World Headquarters is located in Purchase, New York. Pepsi Co. is the world leader in the food chain business. It consists of many companies amongst which the prominent ones are Pepsi Cola, Frito-lay, Pepsi food international, and Pizza-hut, KFC and Taco bell. The group is presently into three most profitable businesses namely, Beverages Snacks foods and Restaurants. The beverages segment primarily market it Pepsi diet, Pepsi Mountain Dew and other brands worldwide and 7UP outside the U.S. market. They are positioned in close competition with Coca Cola inc. of USA. 8 The Snacks food divisions manufacture and distribute and markets others snacks worldwide. The restaurant segment primarily consists of the operations of the worldwide Pizza-Hut, Taco bell, PepsiCo’s restaurant distribution operation; supplies to Company owned and Franchise restaurants in the U.S. When Coca Cola changed its formula in 1985, Pepsi Stepped up its competition with its long time archrival claiming victory in the Cola-wars. Coke and Pepsi expended their rivalry to tea in 1991 when Pepsi formed a venture with No.1 Lipton in response to Coke’s announced venture with Nestle (Nestea). “PepsiCo is going blue”. This was the new color adopted by the company to strengthen its brand globally. Also the company is changed colors from Generation X to GENERATION NEXT. Although Pepsi holdings over the years have become diverse in such fields as the Snacks industry and Restaurants industry, this portfolio will discuss its core business and its highly successful business of Beverages. The soft drink industry customer base is probably the widest and deepest base in a world that is flooded with some many categories. According to Beverage Digest the customer base for soft drinks is a whopping 95% of regular users in the United States. This represents a large field of potential customers for Pepsi Cola. Pepsi prefers to segment itself as the beverage choice of the “New Generation”, “Generation Next”, or just as the “Pepsi Generation”. These terms adopted in Pepsi’s advertising campaigns are referring to the markets that marketers refer to as Generation X. The Generation X consumer is profiled to be between the ages of 18 to 29.