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“INITIAL REPORT of SIP” by Saurabh Srivastava (Reg No- 5116

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“INITIAL REPORT of SIP” by Saurabh Srivastava (Reg No- 5116 “INITIAL REPORT OF SIP” BY Saurabh Srivastava (Reg No- 5116) Of Vishwa Vishwani Institute of Systems and Management Under the guidance of (Mrs.Sunita Ratnamakar) Prof- Marketing A Project Report Submitted to the Faculty of Business Management In partial fulfillment of the requirements For the award of the Post Graduate Diploma in Management July 2010 Boston House, Thumkunta, Hakimpet(Via), Hyderabad 500078 Phone: 08418- 247222,247522,247622, Fax: 08418- 247166 www.vishwavishwani.ac.in ORIGIN OF A COMPANY:- It can be said with absolute certainty that the RKJ Group has carved out a special niche for itself. Its services touch different aspects of commercial and civilian domains like those of bottling, Food Chain and Education. Headed by Mr. R. K. Jaipuria, the group as on today can laid claim to expertise and leadership in the fields of education, food and beverages. The business of the company was started in 1991 with a tie-up with Pepsi Foods Limited to manufacture and market Pepsi brand of beverages in geographically pre-defined territories in which brand and technical support was provided by the Principals viz., Pepsi Foods Limited. The manufacturing facilities were restricted at Agra Plant only. Varun Beverages Ltd. is the flagship company of the group. The group also became the first franchisee for Yum Restaurants International [formerly PepsiCo Restaurants (India) Private Limited] in India. It has exclusive franchise rights for Northern & Eastern India. It has total 46 Pizza Hut Restaurants & 1 KFC Restaurant under its company. It diversified into education by opening our first school in Gurgaon under management of Delhi Public School Society. The schools of the group are run under a Registered Trust namely Champa Devi Jaipuria Charitable Trust. Companies are medium sized, professionally managed, unlisted and closely held between Indian Promoters and foreign collaborators. The group added another feather to its cap when the prestigious PepsiCo “International Bottler of the Year” award was presented to Mr. R. K. Jaipuria for the year 1998 at a glittering award ceremony at PepsiCo’s centennial year celebrations at Hawaii, USA. The award was presented by Mr. Donald M. Kendall, founder of PepsiCo Inc. in the presence of Mr. George Bush, the 41st President of USA, Mr. Roger A. Enrico, Chairman of the Board & C.E.O., PepsiCo Inc. and Mr. Craig Weatherup, President of Pepsi Cola Company. Vision:- Being the best in everything we touch and handle. Mission :- Continuously excel to achieve and maintain leadership position in the chosen businesses; and delight all stakeholders by making economic values in all corporate functions. Their Success :- Production of innovative, high quality retail branded beverages combined with world-class packaging. Driven by a management team with a relentless focus on achieving superior customer service, driving earnings improvement and increasing shareholder value. Their People :- At RKJ Group they are creating an environment where our employees enjoy a greater degree of empowerment both individually and in their work teams. Their employees are equipped with the necessary tools, training and management backup for strong performance and accountability, as well as in an environment of open communication and involvement. Different Product of PepsiCo :- Pepsi Diet Pepsi Pepsi Aha Slice Mirinda 7-Up Aquafina Mineral Water TYPES OF PRODUCTS: - Non-alcoholic soft drink beverage market can be divided into fruit drinks and soft drinks. Soft drinks can be further divided into carbonated and non-carbonated drinks. Cola, lemon and oranges are carbonated drinks while mango drinks come under non- carbonated category. The soft drinks market till early 1990s was in hands of domestic players like campa, thumps up, Limca etc but with opening up of economy and coming of MNC players Pepsi and Coke the market has come totally under their control. While worldwide Coke is the leader in carbonated drinks market in India it is Pepsi which scores over Coke but this difference is fast decreasing (courtesy huge ad-spending by both the players). Pepsi entered Indian market in 1991 coke re-entered (After they were thrown out in 1977, by the then central government) in 1993. Carbonated soft drinks major Pepsi India is now putting together a ‘cocktail’ to take a bigger ‘slice’ of the fruit juice market. Close on the heels of the launch of its global lemon drink Twist in an Indian avatar as Pepsi Aha, Pepsi, once again, is all set to roll out another global product—in a localized version. Come June 2002, and Pepsi will roll out the blends of its international fruit drink Twister in the country, albeit, with a difference. In India, Twister blends will be launched as mixed fruit cocktails under Pepsi’s existing juice brand Slice. Pepsi spokesperson, when contacted, confirmed the launch but said the products will be launched on an ‘experimental basis’ for three to four months beginning June 2002. However, confirmed sources said that the product has been test-launched and is ready for a formal launch in June. Globally, the proposed Slice fruit blends exist under Twister brand and are available in over 10 flavors and in various packaging options. However, in India, while the blends will be decided as per local tastes and as per the availability of fruit pulp, packaging will be restricted to cartons only. Among the four to five flavors planned, strawberry-peach and kiwi-guava are some of them. However, the new product could be priced a little higher than Slice since Twister—originally—is believed to have more than 15 per cent juice content. Slice, on the other hand, is a 15 per cent juice drink positioned at the mass-end; against the 100 per cent fruit juice Tropicana, which is at the top-end. Pepsi’s decision to launch Twister flavors as Slice variants rather than the original brand itself follows the company’s decision to make slice the mother juice brand in India. The company had at one time contemplated bringing Twister in its original self to India but the plan was later shelved. “Internally we have been debating whether to go ahead with Twister or keep Slice as a mother brand for juices,” the Pepsi spokesperson said. The move, point out industry observers, is clearly aimed at saving costs of launching an altogether new brand and instead cash in on the potential of a existing juice brand. A Rs 200-crore brand, Slice was originally launched as a mango drink in returnable glass bottles. Last year, in fact, Pepsi launched a new advertising campaign to rejuvenate the brand’s mango positioning. And early this year, it was launched in cartons and more recently—three new flavors—orange, leechi and guava—were added to the brand. Burdened by high cost of production of returnable glass bottles, Pepsi India has decided to look at the most sought after packaging alternative—flexible packaging—more seriously. The company through one of its prime bottler Mr. Ravi Jaipuria of Varun Beverages Ltd is now setting up a new carton line (tetrapack) at its existing bottling plant at Noida in Uttar Pradesh. The plant with a capacity of 5,000 to 7,000 cases per day will be used to pack Pepsi’s juice drink Slice and its new variants in 200-ml cartons. The product is currently being packaged at Varun Beverages at Boranada Road Jodhpur.The Noida slim line carton plant—which is expected to take off shortly—will cater to the north market and will help the company cut huge transportation costs. COMPANY PROFILE:- Since the entry of Pepsi co. to India in 1987, the soft drink Industry has undergone a radical change. When Pepsi entered parley was the leader with ‘Thumps UP’ being its flagship brand. Other product offerings by parley included Limca & Gold Spot. Another upcoming player in the market was the erstwhile bottle of Coca-Cola, Pure Drinks. Its offerings included Campa Cola, Camps Lemon and Campa Orange. With the re-entry of Coca-Cola in the Indian market, Pepsi had to go in for more aggressive marketing to sustain its market share. The chronology the initial phase of the “Coal Wars” in India was July 1986 An application for soft drinks-cum-snack food joint venture by Pepsi, Voltas and Punjab Agro is submitted to the government after an earlier proposed alliance- 1985, between Pepsi and Duncan’s of the Goenkas fails to take off. Sept.1988 Final approval for the Pepsi Foods Limited (P.F.L) project granted by the Cabinet Committee on Economic Affairs of the Rajeev Gandhi Government. March 1990 Pepsi Cola and Seven up Launched in limited market in North India. May 1990 The government clears the Pepsi project again but with a change in brand name to Lehar Pepsi. Simultaneously it rejects the Coca-Cola application. Citra form the Parle stable hits the market. Dec 1991 Pepsi extends its soft drinks reach on national scale. Products launched Delhi and Bombay. Jan 1992 Brito Foods application cleared by the FTPB. Pepsi and Parle start initial negotiations for strategic alliance but talks break off after a while. Jan 1993 Pepsi launches Teem and Slice. Captures about 25.30% of the soft drinks market in about two years. July 1993 Volta’s pulls out of PFL joint venture. Pepsi decides to raise equity to 92% Reports of coke – Parle negotiations gain strength. July 1994 Pepsi brought Dukes& Sons July 1995 Pepsi launched Cans having capacity of 330 ml in various flavors. 1997 Pepsi brought Mirinda Orange opposite to Fanta. 1998 Pepsi launched Lemon Mirinda to give taught competition to Limca. 1999 Pepsi has launched its Diet Pepsi Can and 1.5 Liters pet battles for health conscious people. 1997 Refusing to dilute its equity state Coca-Coal winds up operations in the country.
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