A Study on Marketing of Pepsico with

special reference to Chennai

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Chapterisation
Chapter 1:Introduction
Chapter 2:Profile and
Methodology
Chapter 3:Conceptual
Framework
Chapter 4:Analysis and
Interpretation
Chapter 5:Findings,Suggestions
and Conclusion

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Introduction:
Pepsi is a carbonated soft drink manufactured by PepsiCo.
Originally created and developed in 1893 by Caleb Bradham and
introduced as Brad's Drink, it was renamed as Pepsi-Cola in 1898  and
then shortened to Pepsi in 1961.
Pepsi was first introduced as "Brad's Drink" in New Bern, North
Carolina, United States, in 1893 by Caleb Bradham, who made it at his
drugstore where the drink was sold.
It was renamed Pepsi-Cola in 1898, "Pepsi" because it was advertised to
relieve dyspepsia (today more commonly known as indigestion or an
upset stomach) and "Cola" referring to the cola flavor. Some have also
suggested that "Pepsi" may have been a reference to the drink aiding
digestion like the digestive enzyme pepsin, but pepsin itself was never
used as an ingredient to Pepsi-Cola.
The original recipe also included sugar and vanilla. Bradham sought to
create a fountain drink that was appealing and would aid in digestion
and boost energy.

The original stylized Pepsi-Cola wordmark used from 1898 until 1905.
In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore
to a rented warehouse. That year, Bradham sold 7,968 gallons of syrup.
The next year, Pepsi was sold in six-ounce bottles, and sales increased to
19,848 gallons. In 1909, automobile race pioneer Barney Oldfield was
the first celebrity to endorse Pepsi-Cola, describing it as "A bully
drink...refreshing, invigorating, a fine bracer before a race." The
advertising theme "Delicious and Healthful" was then used over the next
two decades.

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A 1919 newspaper ad for Pepsi-Cola
In 1923, the Pepsi-Cola Company entered bankruptcy—in large part due
to financial losses incurred by speculating on the wildly fluctuating
sugar prices as a result of World War I. Assets were sold and Roy C.
Megargel bought the Pepsi trademark. Megargel was unsuccessful in
efforts to find funding to revive the brand and soon Pepsi's assets were
purchased by Charles Guth, the president of Loft, Inc. Loft was a candy
manufacturer with retail stores that contained soda fountains. He sought
to replace Coca-Cola at his stores' fountains after the Coca-Cola
Company refused to give him additional discounts on syrup. Guth then
had Loft's chemists reformulate the Pepsi-Cola syrup formula.
On three occasions between 1922 and 1933, the Coca-Cola Company
was offered the opportunity to purchase the Pepsi-Cola company, and it
declined on each occasion.

Definition
Philip Kotler "Defines marketing as the set of human activates
directed at facilitating and consummating exchanges. The essence of
marketing is exchanges of products and tractions to satisfy human wants
or needs. All business activities assisting and promoting exchange
function are including in marketing."

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 H.L.Hansen "Marketing is the process of discovering, and translating
consumer needs and wants in to product and service specification,
creating demand for those products and services and then in turn
expanding this demand."

Area of the study

The area of study is nothing but the critical evaluation of various
marketing functions. The function are necessary to determine consumer
wants and needs and to supply necessary goods and services to meet
those demands can be broadly classified.
1)Marketing research
Marketing research is the objective study of
product design, markets and such transfers activities as physical
distribution, warehousing , advertising and sales management, its main
aim is to provide management with factual information as a basis for
marketing decisions and actions.
2)Product planning and development
Product planning is the act of making out and supervision of
the search , screening development and commercialization of new
products , the modification of existing lines and discontinuance of
managerial products.
3)Standardization and grading
Standardization is the process of setting up standards, and
manufacturing products in conformity with those standards includes the
process by which this conformation is assured. Thus it ensures the
uniformity of size, shape, design, color and physical properties of the
product. Grading is a part of process of standardization. It helps not only
the producers but the sellers and consumers also.
4)Packaging
Packaging is also an important marketing function " a
package is used to contain, protect and identify a product. Besides it, are
important sales to which makes a product attractive and catchy.

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5)Product pricing
Pricing is a very important and crucial decision as it affects
all the parties involves in the production, distribution and consumption
of goods. Price of the product affects the volume of production and the
amount of profit.
6)Advertising and sales promotion
Advertising is a method of business communication to
prospective customers, such communication includes information about
business institution, it’s products , product quality, the time and place of
availability of the product etc. The main objective of advertising is to
promote the sales of the product.
7)Distribution management
Distribution of product is also an important function of
marketing management it involves the decision relating to channels of
distribution and their management.
8)Management of sales force
Personal is very important component of marketing
activities .the success of a business concern depends considerably upon
the performance of its sales man. Sales man plays a crucial role in
communicating company and product information to customers.

Scope of the study

The Customer is King! This credo is more powerful, relevant and
true today than ever before. In a truly customer driven economy, success
depends on a company’s ability to be with the customer on a round the
clock basis satisfying all their product and service specific needs. Simply
stated, Sales and Distribution is about finding, getting, and retaining
customers. Sales and Distribution is one of the hottest and most talked
about topics in the industry today and for good reason sales and
distribution is an information industry term for methodologies, software
and usually Internet capabilities that help an enterprise manage customer
relationships and to increase product value in an organized way. Simply

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stated, Sales and Distribution is about finding, getting, and retaining
customers. S&D is at the core of any International Journal of Pure and
Applied Mathematics Special Issue 4022 organization- focused business
strategy and includes the people, processes, and technology questions
associated with marketing, sales, and service. In today’s
hyper-competitive world, organizations looking to implement successful
S&D strategies need to focus on a common view of the customer using
integrated information systems and contact center implementations that
allow the customer to communicate via any desired communication
channel. S&D is all about building long term business relationships with
your customers and to increase current position. It is best described as
the blending of internal business processes: Sales, Marketing and
Customer support with technology. S&D is to meet and exceed customer
expectations, create a positive customer experience and build customer
loyalty. Solutions empower businesses to more efficiently and
effectively manage the activities that affect their relationship with their
customers. The ultimate goal of S&D changes all of this and represents a
continuing evolution in managing front office operations. With S&D,
traditional departmental applications for sales, marketing and customer
service are consolidated into a single unified system capable of
managing the entire customer life cycle. This approach allows
employees throughout an organization to have immediate access to a
complete profile of important customer information. Organizations who
are implementing S&D solutions feel confident that providing access to
this level of information will assist their sales and support staff in better
understanding the needs and buying patterns of their customers.

Need for the study

The most important task of a marketer is to get the right product at
the right place with the right price to the right person. Besides, it was
also necessary to go back and find whether consumer is getting optimum

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satisfaction, so that consumer remains loyal. These aspects made it
imperative for the marketers to conduct marketing research.
1)Identifying problem and opportunities in the market.

2)Formulating market strategies.

3)Determining consumer needs and wants.

4)Effective communication mix.

5)Improving selling activities.

6)For sales forecasting.

7)To revitalize brands.
8)To facilitate smooth introduction of new products.
9)Determine export potentials.
10)Managerial decision-making.

Objectives of the study

1)To care and contact with the working of an organization and to see
the different types of marketing activities. The main emphasis is on the
Distribution aspect of the organization.
2)Find the depth and width of distribution channel.
3)Compare them with those followed by competitor.
4) To ascertain the consumer brand perception of cold drinks with
respect to price, product, quantity and advertising.
5)Improving the marketing performance of middleman and sales
people.
6)To attract new customers.
7) Simulating demand for a product.
8)To increase impulse buying.
9) Supplement advertising and personal selling.

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 10) To get retailored cooperation.
11) To induce brand switching.
12)To protect market share in the areas of competition.
13)To earn the benefits of economies of scale.
14)To develop favorable consumer experience.
15)To expand the target market.

Limitations of the study

1) Findings are based on the views expressed by the consumers. So it
may suffer from biased prejudices.
2) Weather conditions were not favorable.
3) Some of the respondents were not co-operative & many seem to
be having no interest.
4) The study has not been intended on a very large scale, have the
possibility of errors, which cannot be ruled out.
5) It is extremely difficult to persuade retailer to respond to
questionnaire.
6) The retailer knows us as people from Pepsi there by the responses
could have been biased.
7)The retailers in many cases reluctant to answered many questions.
8)The respondents may be biased on influenced by some other
factors.
9)Time and money were the greatest limitation in carrying out the
survey.
10)A number of retailers (pan-shop) being illiterate, it took us lot of
time in collecting information.
11)The mere information which we get from the retailers is not
sufficient to arrive at a conclusion.
12)The seasonal changes affect the sell.