SUMMER INTERNSHIP PROGRAM

(FINAL REPORT EVALUATION)

An Interim Report
On
DRIVING RETAIL INITIATIVES
In Ahmedabad city.

Submitted by: -
Tapan
Sharotri

Name of the organization : PEPSICO INDIA HOLDINGS PVT

LTD
Plot No 71-74,
GIDC, Naroda
Ahmedabad – 382330
Gujarat

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 Tel No - 22822918

DECLARATION
I, the students of ICFAI BUSINESS SCHOOL, AHMEDABAD here by declare that this project
report is aresult of culmination of my sincere efforts.

I here by declare that this submitted work is done solely by us and to the best of our knowledge no such work
has been submitted by any other person for the award of degree or diploma.

Tapan Sharotri

Acknowledgement

This report is a combined effort of many people. I am grateful to all

those people whose inspiration and wisdom helped me in
completing my project. To begin with Mr. Aditya Mittal (ADC,
Ahmedabad), who not only guided me during this project but also
made me feel the heat of the market whenever I went to meet him
in the office. I would also like to thank him for giving me their
precious time whenever I needed any help.

I am also thankful to my faculty guide Mr.Swaroop Dutta who

encouraged me to do my best every time. I am also thankful to him
for his able support, guidance, valuable suggestions and feedback
that helped me improve a lot.

For giving complete details about Sales and Distribution and getting
us acquainted with the market and the distributors, I am thankful to
Mr. Paritosh Shah, Mr. Manish Vaidya and Mr. Ravi Jetwani
(Customer Executives). for details that helped me to give out my
best during my project tenure till date.

This acknowledgement would not be complete without mention of

my teammate working with me on this project for their help and
support during the course of this project.

Finally, I would also like to thank all the distributors, retailers and
other people whom I met during the project, who directly or

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 indirectly, co-operated and provided me invaluable business
information of the Ahmedabad Beverage market.

Table of Content
Page No.
Declaration 2
Acknowledgement 3
Section1 Introduction
1.1 Company 5
1.2 Growth 5
Section2 Objectives
2.1 Objectives of the Project 6
2.2 Scope 7
2.3 Limitations 7
2.4 Methodology 7
2.5 Sources of Information 7
2.6 Project Duration 8
Section3 Gold Club Program 9
3.1 What is Gold Club 10
3.2 Why Company Started Gold Club 10
3.3 Role of Work Force in Gold Club
10
3.4 Market Segmentation Model 11
3.5 Benefits of Gold Club Project 12
3.6 Parameters for Gold Club Score
12
3.7 Why the Score is necessary 12
3.8 Role of Solutions Ltd. 12

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3.9 Benefit to the Retailers from Gold Club Project
12
Section4 Activities Undertaken in Gold Club
13
4.1 Client Serving 13
4.2 Elements required for Enrolment 14
4.3 Activities undertaken in Gold Club Enrolment
15
4.4 Charts 15
4.5 Results 15
4.6 Findings 16
4.7 Finding out Enrolment gap in Market 16
4.15 Problem Faced in Combo Boards 16
Section5 Pre & Post Analysis
5.1 AHMEDABAD 17
5.3.1 Year Wise 17
5.3.2 Pre & Post analysis of Gold Club Enrolment
18
Section6 Route Productivity 19
6.1 Route Riding 19
6.2 Process 20
6.3 Calculation Chart & Graphs 20
6.4 Findings 21
6.5 Finding Gaps in Route Mgt. 21
Section7 PITA Model 22
7.1 Introduction 23
7.2 Methodology 24
7.3 Limitations 25
7.4 Impact of PITA 25
7.5 Levels of PITA 26
7.6 Nature of work 26
7.7 Findings & Suggestions 26

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Section8 Cluster Analysis 27
8.1 In Ahmedabad 27
Section9 Brand Promotions 28
9.1 Twister promotion 28
9.2 Twister display 28
9.3 Activities Undertaken 28
9.4 Slice Pouring
9.5 MyCan Promotion 28
9.6 Mirinda Promotion 28
9.7 Pre & Post analysis of Slice
Section10 Activation in Medical Store
29
Section 11 Delivery and Distribution Problem 30
11.1 About the problem 31
11.2 Observation & Causes 31
11.3 Activities undertaken 32
11.4 Comparative Analysis 33
11.5 Solution 34

Glossary 35

Anexure I 36

Bibliography 45

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Introduction:

PEPSICO INDIA HOLDINGS PVT LTD.

PepsiCo India Holdings Pvt Ltd is a part of a $35 billion company. The parent
company consists of Frito-Lay North America, PepsiCo Beverages North
America, PepsiCo International and Quaker Foods North America. PepsiCo
brands are available in nearly 200 countries and territories and generate
sales at the retail level of about $92 billion.

The company has total 20 units all over India including 2 in Gujarat itself.
One of them is situated in Ahmedabad itself. As said previously that PepsiCo
in a No. 1 beverage brand in India, these 20 units help the company to live
up to its status.
Every unit has its specific task and specific market to cater. They can be said
self- sufficient in their requirements, but at the time of excessive demand
they definitely stand by each other.

PepsiCo‘s mission is “To be the world's premier consumer products company

focused on convenient foods and beverages. We seek to produce healthy
financial rewards to investors as we provide opportunities for growth and
enrichment to our employees, our business partners and the communities in
which we operate. And in everything we do, we strive for honesty, fairness
and integrity.”

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 PepsiCo’s vision is “PepsiCo’s responsibility is to continually improve all
aspects of the world in which we operate – environment, social, economic -
Creating better tomorrow than today.”

Growth:

According to Canadian 2006 Data, Indian consumers drink 120 billion litres of
beverages out of which only four billion litres are ready-to-drink packaged
beverages. This shows that there is tremendous scope for growth in India for
the entire packaged ready-to-drink segment. Carbonated beverage segment
is growing rapidly at about 30% annually. Based on the household
penetration in SEC A & B households studied by IMRB. The Pepsi brand
(including Pepsi and Diet Pepsi) made it into the top 100, reaching the
number 39 slot with a brand value of $15.4 billion, a 15 per cent rise on
2007.

2.1 Objective of the project

To understand the below line marketing activities in PepsiCo.

To understand the work culture & co-ordination b/w mkt. n sales

Department.

To learn about Merchandising at the point of sale.

To increase the incidence of purchase at the point of sale by

installation of merchandising elements.

Gold Club enrollment process of major outlets in Ahmedabad working

with CE’S, PSR’S and

Del. RD’S.

To learn the process of handling outlets as part of Gold Club project &
other sales promotion

activities.

To understand the impact of Gold Club Elements & branding on sales.

Maintenance of Enrolled outlets.

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 To understand the retailers & customers reaction to new promotional
schemes.

To understand the retailers reaction towards the change in company

policies.

Educating PSR’s as well as Merchandisers to develop their outlets

effectively.

Develop the route plans for the Merchandisers for execution.

Cross checking the outlets visited by the merchandisers.

Track the retailer complaints and forward it to the Customer

executives.

Track the volume targets of the outlets enrolled.

Conduct the audit of the retailers enrolled so as to get them their

rewards.

Understanding the whole process of branding communication in Gold

Club outlets.

To understand the market problems & finding out the best possible
solutions.

Identifying the loop holes in the clusters and fill in the gaps necessary.

2.2 Scope
Getting the actual feedback from retailers about Gold Club.
To check the increase in the incidence level and transactions per
outlet, by installation of various elements.
Learning the work done at various level i.e. CE, s, ADC’s.
Finding Ways to make distribution channel more effective.

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 2.3 Limitations

Quantifying the impact of enrolment done was not absolutely accurate

due to some external variables.
Resistance from the employees towards the change in company
policies.
Resistance shown by the retailers towards the change in company
policies.
Lack of awareness among retailers.
Role ambiguity among the employees working at ground level for
execution of the project.

2.4 Methodology

To achieve the objectives of project, first I visited the plant to

understand the work culture & market scenario.
I did the route riding with Merchandisers’, CE & Del. RD to understand
their responsibilities.
While doing the projects such as Promotions, Branding & PITA Model
we did the pre & post analysis of sales volume for different-2 outlets
which show the success of branding below the line.
While undergone these projects I also surveyed to retailers &
customers to understand the mind set & current position of Coke
products, which will be very helpful for Gold Club Project.
2.5 Sources of Information
While the completion of project we collected the information from
various sources which
are as followings:-
2.5.1) Primary:- For completion of project the primary resources are
as followings:-
Employees
Retailers
Customers
2.5.2) Secondary:- Only primary sources are not sufficient for
project, we will also depend on some secondary resources, are as
followings:-
Internet

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 Magazines
Journals
Company data
2.6 Project Duration
Time limit was 31/2 months.
Project will be done in Ahmedabad City.

Gold Club Program

3.1 What is Gold Club?
Gold Club is a promotional activity which satisfies the needs & wants of
the customer it believes in the Statement “Jo DIKHTA HAI, WOH BIKTA
HAI”.
This sales promotion programmed to help the organization to sell their
products in
bulk to retailers. “Gold Club” is all about checking the brand-wise and
pack-wise chilled
availability of PepsiCo products in model outlets.
The terminology “Gold Club” was introduced to make their secondary
sales more effective.
Company has got many elements and signage’s which are used for
designing the retail
outlets through which we can also Calculate “Gold Club Scores” on some
certain parameters
as per company Stds .The PepsiCo Company recently focusing on one of
trump card to maintain & expand its market share in Fast Moving
Consumer Goods (FMCG) beverages Sector.
3.2 “Why company started Gold Club Project”?
When we talk about market share of PepsiCo & compare it with other
players then we

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 can say that, PepsiCo is the no.1 company for whom customers are the
first priority.
They always think about how to attract & retain customers.
Before the introduction of the ‘Gold Club’ Company main focus was on
primary sales
rather than secondary sales. To focus on the secondary sales company
started ‘Project
Gold Club’, which has been successful in creating awareness about the
PepsiCo Products in
consumers mind. This project was very important from the company point
of view as, Cold
Drinks are an impulse product and you will have to force the customers to
come into the
shop and buy our products. It was tested by a pilot project termed as
“Space Club” for three months. The results were exceptionally good. So
Company decided to start ‘Gold Club Program” which works on the
Tagline “Jo Dikhta hai, Woh Bikta hai”. This program is a Pan India
Launch for the complete year starting Jan-08 barring two months of July &
Nov.

3.3 Role of CE’s, Merchandisers’ & PSR’s in Gold Club Project

Outlets enrolment with pre & post analysis.
For G.C Project, Company has employed Merchandisers’ whose work is to
develop the outlets, ensure the availability of PepsiCo products, stocking
the outlets with different elements & adding up new outlets in Gold Club
outlets list.
For proper execution of Merchandisers work, the company has decided to
judge their
work on the basis of Retail Initiatives score. This score is the criteria for
checking the performance of Merchandisers and even CE’s also to check
out whether the retailers are using our elements properly or not.

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MD ensures the followings responsibilities:-

Outlet Enrolment & Development

All marketing elements to be maintained
Promo POP to be put up at eye level,
To be sustained Rack headers to carry messaging

Visi-Cooler Management
Maintained at the best position
Decals are neat & clean
Cooler is pure, chilled & in working condition
Brand Order along with facings as per the Plano gram Norms

Merchandising
Warm Display on cooler top & shelf
Rack to be displayed at
Prominent location
Stock rotation of the warm stock
Facings to be as per the Plano gram.
Outlet should have SKU’s available as per requirement of the
Planogram.

Channel Wise Outlet:- Company further divided the Outlets in channel

wise.

Category Criterion of Categorization

Convenience Selling pan, tobacco, beverages(Pan shops)
Eatery Selling eatables and beverages(restaurants)
Grocery Selling grocery items(provision, general stores)

3.5 BENEFITS OF THE PROJECT

Gold Club having many advantages while talking about either retailers or
consumers.
TO THE COMPANY
TO THE RETAILERS
TO THE CONSUMERS

3.5.1 TO THE COMPANY

The benefits which the company derives from this new concept are as
followings:-
Generate buying Impulse among the consumer.
Helps consumers to locate cold drink availability.
Helps to advertise at Point of Sales.
Reinforces brand awareness created by media advertisements.

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 Draws attention to on going promotions.
Increases the attractiveness and visibility of displays.

3.5.2 TO THE RETAILERS

Gold Club is a project which gives the benefit to everyone either he is

retailers,
customers or company. Through this G.C project retailers can get the more
profits, are as followings:-

Reward of Rs. 150 - 250 depending upon their G.C Score and Sales
Vol.Catagory.
Company has started the on the Spot Reward Scheme of 4 My cans
from May 2008 through which retailers can benefit by keeping their VISI’s &
Racks 100% Pure and charged at the time of Audit.

3.5.3 TO THE CONSUMERS

As part of Gold Club, talking about consumer’s point of view, by this project
company is
attracting the customers towards the Cold drinks through different sales
promotional activities & also through branding below the marketing line.

3.6 Parameters for Gold Score

Company divided the outlet channel wise, category wise but to know the
performance of
Merchandiser’s ,how they are working? It can be known by G.C score. It also
showing that how is the Market position?

3.6.1 “How the G.C Score is calculated”?

In G.C project there are some elements for the activation of outlets which
having
some points & helps while calculating G.C Score, are as followings:

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Type Elemen Elemen Element Elemen Element
t t t

Convenienc Visicoole Rack Air Volume Availability of

e r hanger/Tropicana 20 key sku’s
counter top

Grocery Visicoole Elements

Rack* Score
----------- Volume Availability of
r (20 pts) 20 key sku’s
Visicooler 40
Eatery Visicoole --------- Combo shot Volume Availability of
r Rack* 10 20 key sku’s

Combo Shot 20
Type Volume target Reward Points
Air hanger 10
A 45+ cases 250/month
Tropicana Countertop 10
B 30+ cases 150/month
Availability of 20 out of 20
The above 30 sku’s Reward points
are only applicable to
the outlet Volume sales 20 which scores
80+ points in Gold Club Score Card.

3.8 What is the role of Solutions Ltd.?

Company decided Solutions Ltd. for survey in outlets for whole month to
calculate
Gold Club Score which decides the performance of Retailers & Merchandisers
and other employees involved in the process.
For calculating G.C Score Solutions comes in the outlets within month which
can be
classify in three parts i.e. starting of the month, middle of the month &
ending of the month.
They ensure us whether retailers are proper utilizing our elements or not.
From this base Solutions Ltd. give G.C score to the company for particular
outlet & it
ensures that the report given by us is correct.

Activities performed under Gold Club Project

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Gold Club is a project which creates awareness about product in mind
of consumers. It is seen whether the shopkeepers have required
elements if yes, what is the condition of given elements? Every unit gets
point for their
performance. The performance of marketing department based on the
performance of
retailer how they are maintaining elements because from elements,
condition & availability decides the G.C score of retailer which decides
Merchandisers performance that they are working properly or not?

4.1 Client Serving:-

First, marketing people needs find out those G.C outlets where our
product sale is high and outlet is at prime location (on main road, or at
high income area).
Main objective is to Merchandising with high visibility.
Then they educate the client about the advantages of Merchandising.
After taking approval from the client they take measurement of that
place where we will put board.
Then designers make design according to the company standard
designs, given to them.
Then CE checks out the design, that, is it according to the company
parameters or not.
Final approval given by the outlet owner by showing him print of the
layout and
taking his sign. on the Gold Club Counterfoil.
Then signed print out sent to regional Office for final preparation.
This whole process takes time of ten to fifteen days.
Important and crucial steps in client serving are:-
When marketing people have to educate a client by showing him
benefits
To take final approval of the client.

Merchandising Right Location Points of

Elements Interruption

Brands Packages
Price Promotio
n
Consumer/
Shopper
Most Relevant Impactful
Product Communication

Flavours Message
15
Ideal In
Store
Display Permanent
Support
Assets
 FRAME WORK FOR GOLD CLUB

4.3 Activities Undertaken

Our nature of work was to activate the outlets through the same elements as
above
mentioned as per channel wise. Although we had to understand the
retailers the followings:-

Finding number of G.C outlets in City where activation is at priority?

What is the importance of Elements for particulars outlet?
What it means to retailers?
How it can be benefited to retailers?
Providing all the elements required in enrolling all the G.C outlets.
Supporting Merchandisers & PSR’s for keeping the focus in activating
outlets in City by handling their problems.

Type of Channel No. of Outlets

Eatery 77
Grocery 47
Convenience 185
The Outlets enrolled At Vishesh Distributor at one go.

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TYPE WISE SHARE OF OUTLETS BASED ON CHANNELS AND THEIR
TYPES A& B

4.5 Results

Only activation of outlets is not enough for company. Now the main work
comes here,
which are as followings:-
What is the impact of Elements on Gold Club Score?
What is the impact of sales after placing Elements?
Finding the list of all the elements required in new G.C outlets, for e.g.
elements are counter top for putting Tropicana TP’s on the counter,
hanging racks for displaying all the available pet bottles, price
communicators for communicating price of all the products of PepsiCo
Company, aerial hangers for hanging pet bottles.
Continuously finding requirements of the elements at all those outlets
where elements placed earlier but not present.

Now our work was to collect the G.C score to know the result of Elements
that whether it affects increasing the sales or not. After collecting the G.C

17
score where we did the activities, increased the G.C Score, which shows the
effectiveness of project.

4.6 Findings

After doing Elements Placing activities, it’s easy to deal with the retail
outlets.
In the period of three months, I all have done customized merchandizing of
around 167 outlets.

4.7 Finding Out The Activation Gaps In The Market:

Another work done by us was finding out the activation gaps in the market
and
reporting it to the Customer Executive. Our work was to check out the
missing
elements in the shops that we visited during our regular day work. These
activation
elements includes, Counter top, Hanging rack, Vinyl pasting, combo standee
combo communicator, etc. in my daily visit to these we listen to all their
problems especially problems related to marketing elements.

By our routine visits to these outlets the gap of communication between the
marketing
head and the outlet owners become less and their problems taken into
concern and those outlets where there was pending work then special
assurance was given to those outlets for filling up the activation gaps.

Because of this sort of effort all the pending works were given importance
and were solved in a very short period of time. What we tried to make the
merchandisers understand was that there should be no pending work in the
market, because if
any outlet wants to put the G.C elements, then it is good for us as he is doing
our advertising and that also free of cost.

There were many gaps related in the market like non availability of
elements, no
schemes, no Aerial hanger, no counter top etc. Visicooler purity was also a
major problem in the market which was given special importance from our
side; all the merchandisers were made understand and were told to try to
keep most of their areas

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Visicooler pure, because if one retail outlet always keeps our SGA impure,
then from
seeing him other outlets would start keeping their visicooler impure. So, this
kind of work was given special importance from our side.

4.8Problems faced in Combo Boards

While putting the Combo boards we face some problems, which are as
followings:-
Some places having space problem because Combo boards cover much
space but and also it will count in G.C Score, this problem will be solved by
reducing the size or making a dropdown Board.

5.3.2 Pre and Post analysis of Gold Club Implementation

We had also done before and after analysis of the retail outlets. Areas of
some Market
Developers from where the G.C score was continuously decreasing were
chosen by me.
What we did was we noted down the score of the outlets which we visited
during my
survey in these shops and this score we named as Pre score.

6 ROUTE PRODUCTIVITY

6.1 Route Riding

It includes finding out the productivity of a salesman in his route for
achieving target
sales and covering all the outlets.

6.2 Process
First, finding the number of outlets present in the route and the target
sale.
During route ridding noticing sale at every outlet and the number of
outlets with no
order.

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 After route ridding evaluating total sale of the day and number of
outlets missed.
Then evaluating probability of getting order from the outlets missed
Evaluating average sale of an outlet based on monthly sale of the
route by the
salesperson.
Loss of sale in the route has been evaluated, after finding average sale
of an outlet,
numbers of outlets missed and probability of getting order from outlet
missed.
From loss of sale and unit cases sold in the route, Route Productivity
will be
evaluated.

6.3 CALCULATION CHART OF ROUTE PRODUCTIVITY

Probability of Getting Order from Outlets not Visited in the Route

= 1-(No. of Outlets not given order / No. of Outlets Visited)
Average Sales of an Outlet in the Route:-
Average Weekly Sale = (Average Monthly Sale) / No. of weeks in a
Month
Average Daily Sale = Average Weekly Sales / No. of Days
Average Sale of an Outlet = Average Daily Sales / No. of Outlets
Loss of Sale = {[Outlets Missed (Probability of Getting Order from an
Outlet )] *Average Sales}.
Route Productivity = Unit Cases Sold / (Loss of Sales + Unit Cases
Sold)

Productivity Analysis during Ready Sale(Daily Sale)

Name Total Total Purchase Not Misse Productivit

Sale Outlet d Purchase d y
s s d
Vipin 95 40 13 9 18 77.86%
Sanjay 88 42 26 4 12 84.61%
D.K 80 55 25 10 10 80%
Patel
Ashok 141 60 12 28 20 74.60%
Darpan 156 60 28 17 15 82.97%

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 Pre-Sales
Score
Card(daily,we
ekly &
Monthly)

TERRITORY
SCOREBOARD
W
PSR Sales ee
Target k
1
Vipin
Parmar Targ Mo Tu WT Fri Sa Su Wk
et n e ed
h t n Tot
ur
112 16 16 16 16 16 16 16 11
Wk Wk Daily Sales 0 0 0 0 0 0 0 0 20
18 2_ Target

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 36 82
1
Sales 11 14 15 14 15 15 15 10
Wk Wk 6 3 1 9 3 5 9 26
31 4_
02 ___
6 _
Variance 44 17 9 11 7 5 1 94
Route Wk Mt +/-
Name 5__ h
Chandkh __ ___
eda __
840 67 69 71 69 69 68
83 69
Scheduled Calls 2
Completed 832 95 98 10 98 98 97 98 99.
Calls/Completion .7 .5 1.4 .5 .5 .14 .5 04
Rate (%)
Number of Orders 36 42 48 41 38 29 35 26
No. of Booked (Strike Calls) 9
outlets
98 Number of Orders 30 36 43 37 3324 28 34
Delivered 1
Strike Rate % 83 85 89 90 86 96 97 92.
.3 .7 .5 .2 .8 .6 .1 60
46 57 60 59 61 62 63 41
Total Lines Sold per 4 2 4 6 2 0 6 04
Day (TLSD)
15 15 14 16 18 22 18 12
Lines Per Sales Call .5 .9 .1 .5 .1 .7 4.2
(LPSC)
Number of bills 6 6 5 4 5 1 1 28
Undelivered
This scorecard is implemented only after the pre-sale process starts at a
particular distributor.

Brandwise Sales by various Salesmen(Ready Delivery

Situation)

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 6.4 FINDINGS
Difference of retail outlets between the numbers given by the
distributor and the
salesman
Salesperson is not able to cover all outlets in their route, due to which
route
productivity decreases and loss in sales occurred.
Route productivity of all the six routes is as mentioned below:
Dumping of goods on outlets creates leads to shortage of flavors for
other outlets.
Salesperson does not have any journey plan.
Daily target is set and after achieving it, salesperson does not try to
sale more.
More concentration on selling major product like Pepsi.

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 6.5 Corrections:
Above findings lead to some bold corrective measures from the
management. Primarily Pre-sales was introduced and implemented very
strictly. This concept is a primary requirement of an FMCG company and
Giants like HUL are following the same for some years. This was a move
which intends to plug many gaps in distribution and plug certain leakages
happening at the ready delivery stage. This change would effect for some
time, the attitude of salesmen and ofcourse the delivery efficiency as it
needs a very strong distribution system. Lately but it is a concrete step
towards increasing efficiency and overall customer satisfaction due to
more transparent nature of this system.

6.5 Finding gaps in Route Management:-

During route ridding, we found out few gaps in Route Management. These
gaps are
following:-
a. Need to find out the demand of an outlet on a particular time:-
For e.g. If a salesman has completed an order of an outlet in evening or at
last is his route, and then on the next day if he start his route from the same
outlet then there will be less chance that salesman will get order from the
outlet. Because the outlet may not sale the stock during this short period.

b. At times stock loaded is not according to the demand in the market.

For eg. If 3 cases of 2lt. Mirinda have been loaded and all the 3 cases is sold
then there
must be chances that few outlets with 2lt. Mirinda demand may not fulfilled.

PITA Model

7.1 Introduction

The objective of this project is to calculate the potential incidence and the
actual
Incidence of purchase at the different channels of sale at a given stretch.
PITA stands
For

PITA= Population * Incidence of Purchase * Transaction Amount *

Frequency of
Purchase

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7.2 Methodology
Collected information from outlets viz. customer footfall, incidence of
purchase, daily revenue, daily revenue from pepsi etc.
Calculated daily revenue for an outlet from pepsi
Calculated the average footfalls in an outlet.
Calculated average incidence of an outlet.
Calculated growth of sales in selected outlets due of Gold club
program.

7.3 Limitation
Frequency of purchase by a customer cannot be calculated because for
that
continuous observation has to be done and questions has to be asked
from the
consumers which was not possible in the given time
Inadequate data to calculate PITA because most of the retailers do not
give bills
or receipts to the consumer.
Outlets have no system to maintain proper records for their footfalls
and
revenue.
The analysis was restricted to one stretch.

Population( (2) Amount (4) =

1) Incidence per Frequencey Total
No. of % of transacti No. of trips Sales
Shoppers People on(3) per year
visiting purchasing Amount
Stores at the spent per
store trip

7.4 Influencing any of 4 –Pita levels will impact on Total

sales
The focus is to work on the above stated four PITA levels. Influencing anyone
of the
level of PITA model, results in increase in sales. Proper procedure has to be
following
Order to make the PITA model work. Each level has some specified elements
&
activities, which are necessary to achieve the objective.

7.5 Levels of PITA

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7.5.1 POPULATION

Objective:-
To pulling shoppers in outlet
Soft Drink is impulse product; no one comes in the market to purchase
Colddrinks. They need to induce to have cold drink. The urge can be created
through-
Outside the outlet activation by Display Board and other elements.
Linking products with high traffic items(population in category)
For ex.:- “Pepsi & Puff”

7.5.2 INCIDENCE

Objective:-Converting shoppers into customers

Once the shoppers get in to shop, they need to induce to buy soft drink. If
the
person comes to outlet to purchase some necessity items e.g. bread etc. He
will
then visit whole outlet at that time activities like in-store displays at multiple
point
of interruption can induce shoppers to convert into customers. Followings are
the ways to increase the percentage of people shopping in store:-
Chilled availability
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 Impulse diving displays/coolers
Combo deals
Combo displays with other fast moving categories(for ex. Pepsi &
Bread)
Merchandising standards
Convenient location
Additional display & multiple point of interruption
No stock outs
Proper POP(point of purchase)
Special sale activations(weekend promos,festivals,sampling)

7.5.3 TRANSACTION AMOUNT

Objective:- To increase the transaction size.

Gold Club also focus towards the transaction size i.e. amount spent by
the
consumers per trip. When consumers comes to outlet to purchase the
soft
drink at that time if he is exposed to some benefit than he might be
end
purchasing more. The ultimate objective is to increase the bill size of
the
customer. Here by using various ways we can induce the Consumer for
buying more. Followings are some ways to increase the transaction
size of
Consumer.
Move consumer up to large transaction size.
Promote multi packs
Improving the mix to PET
Price Increase
Home delivery services
Displays
POP/Merchandising
Sampling
Bundling offers(Pepsi & Pizza)
Special emphasis CANS activation
Special emphasis Diet Pepsi.

27
 7.5.4 FREQUENCY

Objective:-To increase the number of visit made by consumer in a year of

a
particular outlet.
Last step of PITA model suggest increasing the number of visits of a
consumers
to visit the outlet again & again by giving certain schemes & offers on
purchasing the soft drink. The ultimate objective is to increase the visit
of
consumer to an outlet to increase the sales. This can be generated
through
followings ways :

Coupons
Leaflets
Weekend Promos
Loyalty promos

Total Sales Projected using elements.

28
7.6 Nature of work
In this project we took 15 outlets for survey in which I did analysis on
the given
questionnaire.
Then we analyze its Pre & Post activation for the given outlets

7.6 Finding & Suggestion

Incidence for purchase of coke as a percentage of average footfall is

the highest in Eateries and lowest in Convenience outlets.
The reason for incidence of Pepsi being low in Grocery is the
substitutes like
Buttermilk available, which also create an impulse impact on the
consumer.
Incidence for PepsiCo can be increased in Grocery outlets by promoting
Slice and Twister in Grocery outlets.
Frequency of visit by a consumer is more in Grocery and Convenience
outlet as
compared to Eateries.
Incidence in Grocery and Convenience outlets can be increased by
launching
sales promotion schemes on PET, which is considered as in home
consumption.
Most people likely to have there food outside on weekends.
Mostly students gathered at convenience shop.
Mostly people prefer Pepsi before chewing pan at convenience shop.
Frequency of visit by a consumer is more in Eateries.

29
S Name of Cha Ty Foot Foot Avg incid Incide Incide
r Outlet nnel pe fall ball Daily ence nce P nce %
%age
week week footfa outle purchas
ends days lls t Pepsi e
Bikaner eate
1 sweets ry A 600 800 771 500 200 40
om namah eate
2 sai sneks ry B 350 450 436 400 150 38
eate
3 kabir res ry B 400 500 486 300 170 57
eate
4 katak res ry B 300 400 386 350 126 36
mahasakti eate
5 dairy parlour ry B 350 425 414 450 243 54
groc
6 amba store ery B 200 300 286 300 123 41
groc
7 anil gen ery A 300 450 429 400 149 37
chetanya groc
8 kirana ery B 190 210 207 200 105 53
padmavati groc
9 gen ery A 300 400 386 350 152 43
1 rajshree groc
0 kirana ery B 100 200 186 190 101 53
1 sanjay groc
1 kirana ery B 150 250 236 250 122 49
1 groc
2 varahi gen ery B 100 200 186 300 126 42
1 Conv
3 khodal pan . B 300 400 386 390 150 38
1 Conv
4 khodal cold . A 600 800 771 500 200 40
1 khodiar pan Conv
5 par . A 500 750 714 600 167 28

30
 Questionnaire of PITA Model & Other Assessments

Outlet Name: -
………………………………………………………………………………
Owner Name:-..................................................Contact No:-
………………….

Q1) How many Crates Of PepsiCo Products you sale in a year?

a) 0-200 crates b) 200-499 crates
c) 500-799 crates d) >799 crates

Q2) How many Crates Of Coca Cola Products you sale in a year?
a) 0-200 crates b) 200-499 crates
c) 500-799 crates d) >799 crates

Q3) what is your daily income (Gross revenue) from all Products?
a) Rs. 200- Rs. 500
b) Rs. 500-1000
c) > Rs.1000

Q4) What is the average no. of people come in your shop daily?
…………………………………………………………………………………………

Q5) How many purchase (Bill Cuts) any item?

…………………………………………………………………………………………

Q6) Average size of bill?

……………………………………………………………………………….

Q7) PepsiCo Bill cuts?

………………………………………………………………………………………….

Q8) Coca-Cola Bill cuts?

……………………………………………………………………………………………

Q9) Revenue from PepsiCo?

…………………………………………………………………………………………

Q10) Revenue from Coca-Cola?

31
 ………………………………………………………………………………………….

Q11) What is income comes from PepsiCo Products?

…………………………………………………………………………………………..

Q12) What is frequency of re-order for PepsiCo or Coca-Cola Products?

…………………………………………………………………………………………….
…………………………………………………

32
Cluster Analysis:

9.1 Clusters representing Ahmedabad(Vishesh):

Bodakdev – Judges Bungalow-Premchand Nagar
Mansi – Vastrapur – Drive In
Murlidhar – Karnavati
Jodhpur-Satellite – Fun Republic-Bopal
Vegelpur
Sarkhej-Gandhinagar Highway

9.1.1 Overall Analysis of the Clusters:

The analysis part has been done on the following parameters:
To extract the Market Share of both the companies in the clusters
Channel Wise Split
Category Wise Split
Contribution of each channel in volume
Outlet Wise Split
% of Gold Club Promotion Done by both the companies

33
9.1.7 Findings From overall clusters

Market Share of PepsiCo is 30%, Coca Cola However commands a

greater market share but shares 28 % on mix accounts
These 06 clusters have 286 outlets, from which 42% outlets are coke
monopoly, 31% are Pepsi monopoly Outlet and 27% are Shared
outlets.
From the data, we can easily figure out that 31% PepsiCo exclusive
outlets
contributing 43% of the overall clusters volume, 42% Coke monopoly
outlets
contributed 57% of the total cluster volume.
There are 65% convenience outlets,19% are Eateries and 16% grocery
outlets..
I have done the market share analysis channel wise and we found that
65%
of the total volume is coming from convenience outlets, Eateries are
contributing
19% of the total volume and 16% is being contributed by grocery
outlets.
Presence of Gold club elements has been achieved 86% G.C
Outlets.Viz.56%.16%, 14% conv. eatery& Grocery respectively.

10 Brand Promotions:

10.1 Renew Brand Promotions

During our Project we were very much privileged to be able to re-launch

three brands for the company. These were launched keeping the summer

34
season in mind and also delivering the people a change in taste of their
favorite drinks. Being shifting it’s paradigm towards a wellness products
company Mirinda and Slice were re-launched in new flavors and the artificial
contents were replaced by the natural one. This hinted a Point of difference
yet displaying the point of parity among the existing brands.

These drinks were also one of the most effective weapons used by the
company to deal with the competition. The company also managed to get
good incremental sales from these products. The sales were such good that
the targets given for two months were achieved in just one month. We also
got chance to work for the successful visit of PepsiCo heads in Ahmedabad
market and enjoyed the heat of work as and when it needed to be done to
the best level of perfection.

10.2 The New Brand Promotions Included –

New Twister
New Mirinda with natural Flavor.
New Slice.
Pepsi Youngistan Campaign.
My can campaign.
Twister Campaign:

Twister was launched at a very specific time of the season i.e. month of
February.
The launch was a reply to the archrival Coca-Cola for its Minute-Maid Juice.
The campaign was very successful. It involves placement of twister Gates,
Air Hangers, countertops, Posters and free samples for the outlet owners.
Special show windows, Visi windows and vehicles were prepared to kick start
the campaign effectively. Shelves were developed to occupy eye level space
at certain outlets. It followed the visit of PepsiCo India head Mr. Sanjeev
Chadha. The visit was very successful and all the activities were praised by
Mr. Chadha himself.

Mirinda Natural Flavor

35
A sudden change in the taste of Mirinda and its launch in a fridge Fit pack
called for a re-launch of the same product which was successful;

New Slice.
Pepsi Youngistan Campaign.
My can campaign.

Campaign like Youngistan and see under the crown were very much
appreciated by the outlet owners.

These promotions were done with the help of Posters, Stickers and Free
Samples. Elements of the Promotions as displayed above. Using the brand
management strategies in real life was a great experience to be cherished in
future as well.

10.3 Problems faced

The problems faced by us in this work are as followings:

Some of retailers were asking about Twister gate whether according to

company list they are entitled for double payment..
Some of retailers were asking about after displaying the Twister Gate
in the last month they did not get anything.
Some of retailers were having no space for gate after company allotted
them Gate.
Some of retailers were having problems that it will cover my front
portion of Shop.

36
 Some of Retailers were asking about after putting this Gate what will
they get.

10.3.6.1 Results
After taking the feedback of around 10 outlets for My Can & new Mirinda, I
noted down the followings
I covered around 10 outlets in which only eight outlets having display.
In Some case retailers having display but mix. Bottles.
Some of the retailers do not about display scheme.
Some of them not having display due to improper supply.

11.1 Problematic Situation:

11 Delivery & distribution Problem.

This problem was given to us by our Company Guide Mr. Mittal.

About the problem:

The problem was regarding the no. of non delivery in the route of PSR Mr.
Vipin Parmar.

11.2 Observation & Causes:

I observed that shift from Ready sell to Presale in the peak season period
had created this chaos. The shift in company policies is not easy to adapt to
and same was the issue this time. Most of the salesmen in PepsiCo are
experienced salesmen with work experience ranging from 10-15 years. Pre
sell was considered waste of time by these experienced salespeople.
Secondly presale was aimed to plug in the leakages which were reported at
intervals by the outlets.
Thirdly it was in line to FMCG industry standard to Increase the SL(service
Level).

11.3Reasons:
1. Salesman
2. Route jump
3. Load delay
4. Wrong time of order
5. Not going to same outlet at different intervals
6. Change in policy
7. Wrong order punching
8. Vehicle capacity

11.4 Solution:
1. Helping PSR to understand presale.

37
 2. Route optimization Using Vogel’s software.
3. Loading to be done at Night
4. Feeder vehicle.
5. Tracing PSR
6. Warning PSR regarding wrong order punching
7. Serving major volume accounts first.
8. Creating a scorecard which can be used to overcome all presale
problems.

TERRITORY
SCOREBOAR
D
We
Sales Target ek
2
Vipin
Parmar Targ M Tu We Th Fri Sa Su Wk
et on e d ur t n Tot
1120 16 16 16 16 1 16 1 112
Wk1 Wk2_ Daily 0 0 0 0 60 0 60 0
836 821 Sales
Targe
t
Sales 10 11 125 12 13 11 11 821
Wk3 Wk4__ 4 2 5 0 5 0
1026 ___
Varia 54 48 35 35 30 45 50 297
Wk5_ Mth nce
___ _____ +/-
Chandkh
eda
840 67 69 71 69 69 68 69 83
Scheduled Calls 2
Completed 832 95 98 10 98 9 97 9 99.
Calls/Completion .7 .5 1.4 .5 8. .14 8. 04
Rate (%) 5 5
Number of Orders 37 42 48 43 3 32 3 275
Booked (Strike Calls) 8 5

38
98 Number of Orders 25 31 39 32 29 21 27 24
Delivered 1
Strike Rate % 77. 73.
81. 74. 8 76. 77 65.
14 8 2 4 6. 3 .1 8
8
41 44 500 50 52 46 44 32
Total Lines Sold per 6 8 0 0 0 0 84
Day (TLSD)
16. 14. 12. 15. 1 17. 16 12
Lines Per Sales Call 64 45 8 65 8. 9 .3 4.2
(LPSC) 5
Number of bills 12 11 9 11 9 11 8 71
Undelivered

Pre-Sales
Score
Card(daily,w
eekly &
Monthly)

TERRITORY
SCOREBOAR
D
PSR Sales Target We
ek
3
Vipin Targe Mo Tu We Th Fri Sat Su Wk
Parmar t n e d ur n Tot
Wk1 Wk2_Daily 1120 16 16 16 160 16 16 16 112
836 821 Sales 0 0 0 0 0 0 0
Targe
t
Wk3 Wk4__ Sales 11 14 15 149 15 15 15 102
1026 ___ 6 3 1 3 5 9 6

Route Wk5_ Mth Varia 44 17 9 11 7 5 1 94

Name ___ _____ nce
Chandkh +/-
eda

39
 Scheduled Calls 840 67 69 71 69 69 68 69 832

Completed 832 95 98 10 98.5 98 97. 98 99.

Calls/Completion .7 .5 1.4 .5 14 .5 04
Rate (%)
No. of Number of Orders 36 42 48 41 38 29 35 269
outlets Booked (Strike
Calls)
98 Number of Orders 30 36 43 37 33 28 34 241
Delivered
Strike Rate % 83 85 89. 90.2 86 96. 97 92.
.3 .7 5 .8 6 .1 60

Total Lines Sold 46 57 60 596 61 62 63 410

per Day (TLSD) 4 2 4 2 0 6 4
Lines Per Sales Call 15 15 14 16.1 18 22. 18 124
(LPSC) .5 .9 .5 1 .7 .2

Number of bills 6 6 5 4 5 1 1 28
Undelivered

11.1 Activation in Medical Store:

One of the Ideas implemented at PepsiCo was to activate a medical store.

Diet range was a very attractive. What I did was we created a new
Distribution channel for our products in Medical Stores. Initiation was done
by introduction of diet products and lately Tropicana and other juice products
can be pushed.

Primarily this activity was done at Arihant Medicals and later it can be
planned at others. The response was good.

11.2 Area Covered during My project.

40
Observations and Learning

1. Manufacturing and sales process initiating from PepsiCo.

2. Sales and Distribution of PepsiCo products.
3. Components of Primary Sales, Secondary Sales and Tertiary Sales.
4. Co-ordination among the various sales divisions viz. primary, secondary
and tertiary.
4. Challenges and opportunities in the FMCG sector from the perspective of
PepsiCo.
5. Implication of various Models like Transportation, Transshipment, PITA,
Porter’s Generic Strategies like; overall cost leadership, differentiation and
Focus.
6. We also came to know about current market trends, offerings, target
customers and critical issues in the field of sales and distribution.
7. Product offering based on different distribution channel e.g. Gatorade will
not sell well through regular Gold club channels but will do well if pushed
through hyper marts or the sports activities channel.
8. Probable use of product or brand management.
9. Evaluation and control to analyze their warehousing and distribution costs,
to analyze the causes of returned merchandise, to conduct formal
evaluations of advertising effectiveness, and to review their sales forces' call
reports.
10. Tracking of sales force efficiency, sales promotion efficiency, and
distribution efficiency.

The project has till date provided me with an immense knowledge and
insight to the FMCG industry and helped to develop a mindset to look at it

41
from a different perspective. It is providing me with amazing insights to see
the real world implication of fundamentals proposed by great Guru’s Like
Kotler, Drucker and Porter coming into play. I feel the enlightenment due to
the pool of learning and knowledge I’ll gain from the above listed concepts.

Audit Results:

First Audit for Ahmedabad has been completed. The results is 77% .
Second audit result is expected soon.

Glossary:

Monopoly outlets

Monopoly outlets refers to those outlets where only and only PepsiCo
drinks are
sold or we can say that monopoly outlets are those outlets where no other
company
beverages are sold except PepsiCo.

Monopoly Discount

Monopoly Discount refers to that amount which gives by the company to

those
retail outlets who sells only and only PepsiCo beverages. Alternatively,
we can say to those outlets where coke monopoly is there and no other
beverage
drink sold. Monopoly discount varies from one outlet to other. Mainly
Monopoly
discount is based on the sales of that particular outlet. If the sale volume is
high, the
monopoly discount will surely will be high or we can say that high sales
generating
outlets are given discount.

Anexure-I

Products Packs Numbers Required

42
Pepsi, Mirinda, 7Up 200 ml / 300 ml 6 Bottles each

Pepsi, Mirinda, 7Up 600 ml (pet) 6 Bottles each

Pepsi, Mirinda, 7Up 1.5 Ltr (pet) 6 Bottles each

Pepsi, Mirinda, 7Up 2 Ltr (pet) 4 Bottles each

Slice 500 ml (pet) 6 Bottles each

Slice 1.2 Ltr (pet) 4 Bottles each

Various Elements of Gold Club Program.

43
 Air Hanger Visi-Cooler Rack Combo-
Shot

Products Packs Numbers Required

Pepsi, Mirinda, 7Up 200 ml / 300 ml 6 Bottles each

Pepsi, Mirinda, 7Up 600 ml (pet) 6 Bottles each

Pepsi, Mirinda, 7Up 1.5 Ltr (pet) 6 Bottles each

Pepsi, Mirinda, 7Up 2 Ltr (pet) 4 Bottles each

44
 Slice 500 ml (pet) 6 Bottles each

Slice 1.2 Ltr (pet) 4 Bottles each

Elements of the Program

Menu Boards Combo Standee

Waiter Badges Napkin Holders

Elements of the program

45
 Counter Top Standees

46
Posters

PepsiCo’s Regional hierarchy

47
 Unit Manager

Territory Development Marketing Development

Manager Manager

Assistant Sales and Marketing Development

Development Manager Coordinator

Customer Executives

Sales Trainees

THE DISTRIBUTION METHODOLOGY OF PEPSICO

48
 PepsiCo Plant

Key Accounts Home Delivery Distributor

(Big Bazaar, Subhiksha, etc)

Main Distributor

Retailers

(Grocers, Convenience and eateries)

End User

(Customers)

Bibliography:
1. pepsico.com

49
 2. FnFBnews.com

3. Company documents

4. Food and beverages, magazine- March - April

edition

5. Food and Beverages releases

6. Google.com

7. Marketing Management by Philip Kotler.

8. The Daily Drucker.

9. Porter’s five Forces-HBR-March

10. Harvard business Review

50