Saturday, June 16, 2007
Thursday, February 1, 2007
surya kant mahatha
Residence:
House no.-89, Top Floor
Opp. Maharani Bagh,
Kilokri Village
New Delhi 110014
Phone – 9868494720 ,9350094902
Email: debumahatha1@gmail.com
Debu_mahatha1@yahoo.co.in
Blog:- http://debumahatha1.blogspot.com/
Objective:
To reach the apex of success in the corporate world through healthy competition and proportionate contribution towards growth.
Academics
B.sc(H) Physics from VBU,Hazaribagh
I.sc from CBSE,delhi
Matriculation from BSEB,patna
Technical Skills:
Operating Systems
· Windows Server 2000, Windows Professional 2000, Windows Server 2003 Windows XP, Windows 98.
Software known
HTML, c++, foxpro
Personal Traits:
· Traveling, Urge for Learning & Like to work in a group.
· Effective communication skill & learning ability.
Other Details
Father’s Name : Mr. J. L. Mahatha
Date of Birth : 05/02/1985
Age : 21 yrs
Marital Status : Single
Nationality : Indian
Language : English, Hindi
Hobbies : to see shahrukh khan`s film, cricket
Surya kant Mahatha
Date: / /200
Acknowledgement
PREFACE
IMPORTANCE
objective
ABOUT THE ORGANISATION
INDUSTARY PROFILE
vision of the organization
MISSION OF THE ORGANISATION
NATURE OF MARKET COMPETITION AND STRATEGY
MARKETING STRATEGIES.
ROUTE MARKETING AND PRODUCT DISTRIBUTION TO RETAILERS
Six steps method adopted at SMV BEVERAGES at Jamshedpur
The distribution channel
Functions of Channels of Distribution:
House no.-89, Top Floor
Opp. Maharani Bagh,
Kilokri Village
New Delhi 110014
Phone – 9868494720 ,9350094902
Email: debumahatha1@gmail.com
Debu_mahatha1@yahoo.co.in
Blog:- http://debumahatha1.blogspot.com/
Objective:
To reach the apex of success in the corporate world through healthy competition and proportionate contribution towards growth.
Academics
B.sc(H) Physics from VBU,Hazaribagh
I.sc from CBSE,delhi
Matriculation from BSEB,patna
Technical Skills:
Operating Systems
· Windows Server 2000, Windows Professional 2000, Windows Server 2003 Windows XP, Windows 98.
Software known
HTML, c++, foxpro
Personal Traits:
· Traveling, Urge for Learning & Like to work in a group.
· Effective communication skill & learning ability.
Other Details
Father’s Name : Mr. J. L. Mahatha
Date of Birth : 05/02/1985
Age : 21 yrs
Marital Status : Single
Nationality : Indian
Language : English, Hindi
Hobbies : to see shahrukh khan`s film, cricket
Surya kant Mahatha
Date: / /200
MY PROJECT IN SMV BEVERAGES , JAMSHEDPUR(PEPSICO)
DISTRIBUTION CHANNEL
OF
PEPSI
REPORT SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT
FOR
POST GRADUATE PROGRAMME IN MANAGEMENT
BY
SURYA KANT MAHATHA
PGPM4H094
UNDER THE GUIDANCE OF
SHARMISHTHA DAS
EIILM, Kolkata
&
ARBIND TIWARY
TDM in MARKETING at
SMV BEVERAGES, JAMSHEDPUR, JHARKHAND
Adityapur Kandra Road, Adityapur Industrial Area.Jamshedpur-832109
Contact-0657-2200354/ 2200388
EASTERN INSTITUTE FOR INTEGRATED LEARNING IN MANAGEMENT
6, WATERLOO STREET, KOLKATA – 700069.
18MAY TO 18JULY, 2009
DECLARATION
I here by declare that I have worked for two months (18nd May to 18th July) in S.M.V beverages a franchise of PEPSICO India Ltd. as a summer trainee. All the facts and information provided by me are true to my sense. I have done my work & market research in Mango area.
I am thankful to all of my guides & mentors in SMV Beverages & all the faculty members of my college. Without them the project is difficult to complete.
SURYA KANT MAHATHA
Acknowledgement
A successful can never be prepared by the singular efforts but I also demand the help and guardianship of some conversant person who under pin actively or passively in the completion of a successful project.
My project on “PEPSICO” would not have taken the present form in the absence of the invaluable guidance, inspiration and cooperation from many people.
I take this opportunity to express my deep gratitude to Prof. SARMISTHA DAS, Marketing faculty, EIILM, KOLKATA who have given me the opportunity to present this project and continuously monitored me to perform well.
In this context I would like to express my gratitude and thankfulness to Mr. S.K.BHAL, HR HEAD and Mr. Subroto Chakraborty, TDM of the company for providing me with his advice and support through my project session.
I also express our thanks to Mr. ARVIND TIWARY, MDC, distributor and retailer of different area of Jamshedpur for providing us with valuable data.
We are deeply indebted to the director, faculty members of our institute ,Eastern institute for integrated learning in management, Kolkata for helping us with their support and guidance that help a lot in successfully completing this project.
Finally we express our cordial thanks to our parents, friends for their unmatched support, guidance and love throughout the project preparation.
PREFACE
Practical training is considered to be an essential part of all the professional institutions and those who are aspiring for MASTER OF BUSINESS ADMINISTRATION. This project is done in the field of Marketing.
As aspect of management education, which is receiving attention the evaluation of the practical training, is to bring actual environment in touch of Business Management.
It is rigidly accepted that the theory widens one’s thinking viz., concepts of marketing philosophies, but practice indicates the modern marketing and used in wide variety of setting of products.
This project work has been done for S.M.V. Beverages is the franchisee of Pepsi Foods Ltd., and has its bottling plant situated at Adityapur industrial Area on Tata –Kandra Road.
We have done our training in MANGO-1, MANGO-2 and sakchi under the guidance of the Executives of S.M.V. Beverages Pvt. Ltd.
The report gives a true picture of the practical activities done by us within the jurisdiction. The study area was limited to Jamshedpur and this adjoining area. Hence, the result of study is particularly to Jamshedpur and general to the entire town in Jharkhand.
IMPORTANCE
The training in the organization is very important for a student who is undergoing with such course. This course is not the answer for all the problems, which arises in the practical field. There is no certain formula for any particular problem, but the aim of this study is to develop the ability of decision-making. Right decision at right time itself helps an organization to run smoothly.
This training in an organization gives a idea how decision are taken when any problems comes to an executive. So the way of problem solving right decisions making knowledge of different type of marketing activities give much importance to the study. Though in four months it was not possible to understand it in depth but an overall idea could be developed.
I hope the project will be very useful for the SMV beverages Jamshedpur it represents a true and real picture of prevailing marketing condition. It gives a clear view of the problem faced by the retailers what is their expectation.
objective
1. The objective of my study was to know in spite of having 58% soft drink in market in Jamshedpur why Pepsi is fails to do the same magic in MANGO market? What are the problems faced by Pepsi in MANGO, why the volume of the sales of Pepsi is not so high that it should be?
2. Estimate the per day sales of Pepsi brands and its competitor in Mango area.
3. To analysis the strengths and weaknesses of Pepsi in terms of soft drink.
4. To find out the problems of retailers.
5. To analysis retailers perception and expectation from company.
6. To analysis company`s expectation from retailer.
7. To estimate the needs of pepsi chilling equipment in market .
8. To estimate the percentage share of consumption of Pepsi brands and its competitors by various age group and gender.
P PEOPLE
E EQUIPMENT
P PROCESS
S SUPPLIERS
I INFORMATION
EVERY GOAL AT PEPSI HAS A SMART CRETERIA
S SPECIFIC
M MEASURABLE
A ATTAINABLE
R RELEVANT
T TIME BOUND
ABOUT THE ORGANISATION
Ø Profile of S.M.V. Beverages
Ø Structure of the organization
Ø Product profile
Ø Production process
PROFILE OF S.M.V. BEVERAGES
Former name of S.M.V. Beverages, Steel City Beverages was established in 1967 and production commenced in March 1969. S.C.B.L. Adityapur, Jamshedpur a medium sector enterprises, located amidst beautiful surrounding, on the Tata Kandra Road in the Adityapur Industrial Area and producing Pepsi range of bottled soft drinks viz., Pepsi, 7-up,Mirinda(Lemon and orange), Mountain Dew and Slice and had now become a household word in the Jharkhand today symbolizes and advancement in over the years. Today it symbolizes self-reliance in quality and technology, productivity and industrial relation since its inception over 35 years ago. At the very outset the company installed state art machines and technology, for the production and bottling of soft drinks. The bottling plant with a capacity to produce bottle 220 per minute is totally automatic and also had a modern state of the art inter mix machine for bringing for the right blend of flavors. The company continuously adopts innovative technology in keeping with its policy of constant quality improvement. With the advent Pepsi foods Ltd. for the production and sales of Pepsi range of soft drinks of Jharkhand.
The company has manpower of 110 ranked as the best bottling company in the country in terms of quality, efficiency, sales, productivity and HRD. Under the guidance of its chairperson, Smt. Kusum Kamani and the able stewardship of its Managing Director, Mr. Nakul KMin, the company has consistently baked on numerous occasions’ awards for quality assurance and productivity.
In 1993 it bagged top owners being the best quality conscious plant amongst all Pepsi bottling company in India.
The company’s highly sophisticated plant and quality control laboratory along with the dedication and enterprise of its employees is more than evenly matched by the management’s sense of understanding and compassion that has insured the company’s progress with every passing day.
Currently despite having a sale of more than 24 million bottles and paying handsomely to the state of and national exchequer by way of statutory duties and company enable to meet the growing demand of its products and consequently a plan to establish second production line of the Slice (PET bottles) with enhanced capacity is on the anvil.
Over the year the company had maintained and nurtured a vast network of distribution for its product in Jharkhand and currently holds way over more than 50% of the states consumer soft drinks market with an estimated growth annual turnover of over Rs. 10 corers the passing years ha with eased the company growing in excellence and management results the company is currently in pursuit of the coveted ISO 9002, which it is confident of achieving and would hence become the first food product factory in India to do so.
Steel City Beverages stands as a proud monument the great visionary its founder Late D. N. Kamani and strides forth towards progress and prosperity for the fulfillment of the ideas of its revered founder.
Jaipuria Group has the distinct honour of being the biggest bottler in India of the global giant Pepsi Co. It controls near about 60% of Pepsi’s bottling business in India. The Group has been managing a network of scores of distributors and simultaneously proving employment to thousands of people. With state–of–the-art technology and plants equipped with the latest machinery, the Jaipuria Group has occupied a remarkable position in the soft drink industry of India. The company has created a stronghold across the country.
STRUCTURE OF THE ORGANIZATION
For the every concern a structure is necessary on which the complete organization should be founded. The existence of a structure as obvious in every organization whether planned/unplanned or ill planned. To have a structure is not a choice of the organizer. The choice is only of the form the pattern of the organization. Planned organizational structure may be proved logical clear – cut and streamlined in order to meet the present requirements. Otherwise it will merely be a makeshift arrangement and the management is rendered difficult and ineffective because organizational structure affects everyone in the organization. A good organizational structure facilitates management’s management and the operation of enterprise and it encourages growth. It helps organization to reach its common goal. In order to make the organizational structure more effective one structure that can meet the demand of various factors namely environment, technology, size and people.
Following are the major consideration:-
F Clear lines of authority
F Adequate delegation of authority
F Minimum managerial level
F Unity of directors
F Application of ultimate responsibility
F Span of control
F Simplicity
F Flexibility
F Due consideration for tip groups
F Proper emphasized on shift activities
Steel City Beverages was taken over by Mr. S. K. Jaipuria in March 1999 from Mr. N.D.Kamani along with Rushab Marketing Limited, a marketing unit. M/s. S. K. Jaipuria is running this plant very successfully. He established another plant in the name S. M. V. Beverages Jamshedpur and increased production from this new plant is 600 bottles per minute.
S.M.V. Beverages Jamshedpur has a management boars headed by Mr. S.K.Jaipuria. He holds the top position but the overall policies regarding managerial decisions and all the executive function are performed and look after by the director Mr. P.S.Kumar. He has been given the power and authority to manage the company affaires. Therefore Mr. P.S.Kumar can be recognized as the chief executive. The director look after all the functional department like production, sales, accounts, personal, purchase etc. every department sends reports directly to the to the director and are responsible to him in sense of working. In spite of this all department are in direct control of the director. Plant superintendent is the head of the production department. He looks after production, i.e. bottling process, inspection, storage of new materials and though there is a quality control manager. Controller of accounts heads the accounts department.
Manager (Personal and administration) looks after the function of administration, industrial relation, legal job security and welfare .The purchase officer in-charge of all purchase activity of concern.
S.M.V. Beverages Jamshedpur is proud of winning many prizes, these are as follows:
1. PESICO Beverage International Gold Quality Award 2001.
2. PESICO Beverage International Bronze Quality Award 2002.
3. Outstanding Performance Award to Mr. P.S.Kumar for 2003.
4. East EMU Challenge Trophy for Chalo Bazaar Day 5th September 2003.
5. PESICO Beverage International Silver Quality Award 2004.
6. MU Based Plant Team Award 2004 to S.M.V. Beverages Jamshedpur.
7. Best Unit EAMU, for Chalo Bazaar Day 7th March 2005.
8. Outstanding performance of Mr. P.S.Kumar Jharkhand Team on 7th March 2005 CHALO BAZAAR DAY.
9. MU Best Manufacturing Team Award 2005 to S.M.V. Beverages Jamshedpur.
PRODUCT PROFILE
The products manufactured by SMV Beverages Pvt. Ltd, are very limited in range as it is not independent to diversify its product when required. This is because it is a unit of PEPSI FOODS LIMITED, which supplies the concentrates for different brands of soft drink.
These are:-
PEPSI (cola flavor)
MIRINDA (orange & lemon flavor)
7 UP
MOUNTAIN DEW
SLICE (mango flavor, having concentration of ALPHANSO,
TOTAPARI. Mango 30:70).
SODA EVERVESS
PEPSI BLUE
PEPSI GOLD
7 UP LIGHT
| | SKU |
| | SKU |
| | SKU |
| | SKU |
| | SKU |
The chief consumers are young masses. Beside direct consumer, hoteliers, restaurants owners and various other soft drinks peddlers also use them. Thus it can be said that these are the product for mass consumption.
PRODUCTION PROCESS:-
The production process being carried on the S.M.V. Beverages (Jamshedpur) in four batch type. The entire process is almost automatic and it requires huge amount of water and electricity. The production is divided into following steps:-
F water treatment
F Bottle washing
F Syrup preparation
F Filling
F Shipping
WATER TREATMENT:-
S.M.V. Beverages (Jamshedpur) gets water from Sitarampur Dam. This water being collected in huge tanks undergoes two different treatments resulting in soft water and treated water.
Before ensuring production, this raw water is being treated in the water treatment plant.
Soft water The municipal is passed through sand filter, carbon purified and salt charged softeners (to remove hardness). The water obtained after this treatment is called soft water. This soft water being kept with 2-4 PPM c12 in storage tank is used for bottle washing and the water being stored with c12 goes to the boiler.
TREATED WATER:
The municipal water is at first treated with Ferrous sulphate (FeSO4), Lime (CaOH) and Chlorine. This process involed is called coagulation and it takes place in the reaction tank. From reaction tank the water moves on to the intermediate tank to be stored in storage tank. From there it passes through the sand filter, carbon purifier, micropurifire and ultra-violet light. Water obtained after this much treatment is called treated water and is used preparation of drink.
BOTTLE WASHING:
Empty bottle coming back from market need to be washed before filling. Washing of bottles is a completely automatic process. This takes place in a machine having three chambers. Bottles are put on the conveyor and as they enter the machine they undergo three successive treatments. At first, they are treated with 4% caustic soda at 100-150oF. In the next chamber, they are treated with 2% caustic soda at 120 F and in the third chamber they are treated with soft water. The cleaned bottles are sent to inspection, where the upper and lower portions of the bottle are watching successively against strong light.
SYRUP PREPERATION:-
Syrup room is situated in the first floor. Here syrup is prepared from filtered water, sugar and the concentration. The room is well equipped with several tanks and filter press. The first one is “Heating Tank” in which syrup is actually prepared. Calculated amount of syrup along with concentrate and water are being heated up to 85 o C. Thus a saturated solution is being prepared. Next it is sent through a machine called “Filter Press” syrup is filtered here.
Filtered syrup is next passed through a para flow cooler, whereby recycling and glycol method, the temperature of the syrup is cooled down to 20-25oC cooled syrup is then stored in the syrup tanks.
PLANT FLOW CHART OR PLANT LAYOUT
The plant flow chart is given in next page WATER TREATMENT RAW SYRUP MIXING FINISHED SYRUP MIXING Sugar Carbon Hflo Salts Parts Concentrate BLOW MOLDING or BOTTLE WASHER PET BLOW BOTTLE or GLASS BOTTLE INTERMIX OR TRI-O-MATRIC FILLER CAPPER or CROWNER WARMER FOR PET LEBELLER FOR PET CASER Bottle Coder in GRB Bottle Coder in Pet CO2
FILLING:-
Syrup comes to the traumatic machine. Hare syrup is mixed with carbonated water under pressure in definite proportion. Inspected bottled gradually comes under the “Filtration Machine”. Carbonated syrup by this time fills the filler machine. From this machine, syrup is poured into the bottles in calculated amount. The exact rate of filling is 620bottles per minute.
SHIPPING:-
After the whole process of bottling is completed, filled bottles in cases (crates) are sent to the shipping department and it sends them to different destinations for sales.
INTRODUCTION TO PEPSICO.
Caleb D. Bradham was born in Chinquatin, North Carolina in 1866 to a well-to-do family. Caleb was a very well liked young man who was not only very smart, but very popular as well. Caleb wanted to become a doctor and after graduating the university of North Carolina he entered medical school at the university of Maryland. Caleb’s father failed in his business. Caleb had to quit school and take a job, so he moved to New Bern, North Carolina and took a job in a teaching school.
Sometime in the 1890s Caleb created one such drink that became quite popular at the Bradham Pharmacy and the patrons started calling it “Brad’s Drink” in Caleb’s honor. However, Caleb preferred another name for this drink, and he decided to call it Pepsi-cola.
There has been some dispute as to whether or not the original Pepsi-cola actually contains pepsin as an ingredient. The term “Pepsi” in its name is surely an indicator. One of Pepsi-cola’s earliest known advertisement is found in the Feb. 25th , 1903 New Bern Daily journal, and one of its claims was that it “Aids Digestion”—a popular claim for items containing pepsin. Lastly, another news paper ad produced in 1908 flat-out said “PEPSI-Cola is an absolutely pure combination of pepsin—that’s what your stomach needs these days—acid phosphate and the juices of fresh fruits.”
In 1903 Caleb filed for a trademark for Pepsi-Cola with the state of North Carolina, and the documents there indicate that Pepsi-Cola had been in continual use since August 8, 1898. However, in 1906 Caleb had to register “Pepsi-Cola” a second time with the U.S. patent office because there was already a product named “Pep-Kola” on the market. The patent office believed these two names were too similar and since Pep-Kola had been trademarked on Feb.15, 1896, Pepsi-Cola had to come up with a new trademark. Instead of changing the name of his product, Caleb bought the rights to the “Pep-Kola” trademark and reapplied for his trademark in 1906. On these papers he gave the date Feb. 15, 1896 as the earliest date Pepsi-cola or names thus derived were used by him. However, August 28, 1898 is the date most people set as the date that Pepsi-Cola came into being existing.
In any event, by 1902, Caleb had taken on an assistant named R.F.Butler, but better known as “Uncle Dick,” and while uncle Dick was put in charge of running the pharmacy, Caleb threw all of his energy into Pepsi-Cola. In his first three months Caleb sold 2,008 gallons of Pepsi-Cola syrup. By the end of his first year he had sold 7,968 gallons of syrup. By 1904 he was selling 19,848 gallons a year, and this is also the same year he started bottling Pepsi-Cola. A year later he also began selling Pepsi-Cola bottling franchises, and then he started expanding rapidly.
By 1910 he had 280 bottling franchises and covered at least 24 states. By 1907 he was selling over 100,000 gallons of syrup a year, and in 1915 Pepsi-Cola corporation had assets of over $1,000,000.
During World War I sugar prices to fluctuate wildly, and that was assuming one could get their hands on a supply of sugar at all. Eventually the Government implemented price controls to stabilize the costs of sugar, but even that didn’t help with the erratic supply side of the sugar market. It was believed that once the war ended that things would return to normal. However, once the war ended and the price controls were lifted, sugar quickly jumped in price. To make matters worse, it appeared that the cost of sugar was going to keep going up. Caleb and many other soft drink manufacturers decided to buy huge amounts of sugar now, and thus protect themselves from even higher sugar prices. Bad decision! Sugar prices peaked at 26? Per pound then the prices collapsed and within a few months sugar was selling bellow 2? Per pound. During the previous couple of years, Pepsi-Cola had been operating at a loss because of fluctuating sugar prices and supplies, but now they faced a loss so large that it was unlikely they would be able to recover.
By March 2, 1923 “The Pepsi-Cola Corporation” was bankrupt, and two years later “The Pepsi-Cola Corporation” was allowed to die for nonpayment of taxes. In 1934, at the age of 67, Caleb Bradham died not even able to hold onto his original drug store.
In 1923, when Pepsi-Cola went bankrupt, its creditors had formed a corporation named “Craven Holding Corporation.” Once the bankruptcy tooks place this new corporation paid $30,000 for all of “The Pepsi-Cola Corporation’s” assets including the trademark to Pepsi-Cola. This was a pretty common practice for creditors as it made handling the bankruptcy easier. In July of 1923, and man named Roy megargel formed the “Pepsi-Cola Corporation” in Virginia and purchased all of the assets of Pepsi-cola from the craven Holding Corporation for $35,000.
Loft owned and directly operated about 200 candy stores, and most of these had soda fountains. In 1931, these Loft candy stores had sold over 30,000 gallons of Coca-cola, and Guth believed that since this was Wholesale quantity he warranted a jobbers (middleman) discount. Coca-cola disagreed with Guth, and repeatedly turned down Guth’s discount request. Now Guth was ticked, and Guth wasn’t the kind of guy you wanted to get mad. Guth didn’t just switch from buying coca-cola to buying a competitor’s product, but instead he bought Pepsi-Cola and became Coca-Col’s worst nightmare.
Megargel had contacted Guth and told him of the troubles he was having with Pepsi-Cola. Guth then made an agreement with Megargel and this is how it worked. Guth “borrowed” money from Loft Inc. (he was short of case since his money was tied up in Loft stock) and gave it to Megargel to buy Pepsi-Cola at the bankruptcy auction. Guth then formed the “Pepsi-Cola company”, a Delaware corporation with 300,000 shares of stock. After Megargel purchased Pepsi-Cola at the auction for $ 10,500, Megargel then owned 100,000 shares of the new company, Guth owned 100,000 shares (actually the Grace Company owned the shares but Guth owned the Grace Company), and 100,000 shares would be kept by the new Pepsi-Cola company to raise money in the future. Megargel was also promised a salary of $ 25,000 a year for six years, and after the six were up, a2?? Royalty for each gallon of Pepsi-cola sold.
PepsiCo in India
PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. [5] Others claim that firstly Pepsi was banned from import in India, in 1970, for having refused to release the list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on the market shortly afterwards. These controversies are a reminder of "India's sometimes acrimonious relationship with huge multinational companies." Indeed, some argue that PepsiCo and The Coca-Cola Company have "been major targets in part because they are well-known foreign companies that draw plenty of attention." [6]
In 2003, the Centre for Science and Environment (CSE), a non-governmental organization in New Delhi, said aerated waters produced by soft drinks manufacturers in India, including multinational giants PepsiCo and The Coca-Cola Company, contained toxins, including lindane, DDT, malathion and chlorpyrifos — pesticides that can contribute to cancer, a breakdown of the immune system and cause birth defects. Tested products included Coke, Pepsi, 7 Up, Mirinda, Fanta, Thums Up, Limca, and Sprite. CSE found that the Indian-produced Pepsi's soft drink products had 36 times the level of pesticide residues permitted under European Union regulations; Coca Cola's 30 times. [7]CSE said it had tested the same products in the US and found no such residues. However, this was the European standard for water, not for other drinks. No law bans the presence of pesticides in drinks in India.
INDUSTARY PROFILE
MARKET UNIVERSE
SOFT DRINK INDUSTRIES IN INDIA
A soft drink is a non-alcoholic beverage. It is artificially flavored and contains no fruit or pulp. India with population of more than 100 crores is potentially one of the largest consumer markets in the world after china. The consumer market can be defined as the market for products and services that are purchased by individuals as households goods for their personal consumption. Soft drink is a typical consumer product purchased by individuals to quench thirst and secondly for refreshment.
Searching for the point of Indian soft drink we first document on Gold Spot, this was the first brand soft drink in India. It was introduced by PARLE during later part of 40’s.
Cola giant, Coca-Cola was the first foreign soft drink to be introduced India in 1965, Coca-Cola make a very good beginning and dominated the whole scheme right from the word go. It (Coca-Cola) faced no competition at that time. COCA-COLA entered India in the year 1993 in collaboration with PARLE INDIA LIMITED.
The marketing people did not even receive to publicize Coca-Cola for it sold first like probability not-cakes. This extra ordinary success of soft drinks can be attributed to the following factors:
Absence of contemporary competitive brand.
Euphoric image build up in the western countries proceeded the entry into Indian market, and
Indians are very found by nature of foreign goods, services etc. due to prolonged foreign rules.
Parle Exports Pvt. Ltd. Later in 1970 introduced Limca , Lemoney soft drinks. Before Limca introduced, they had tentatively introduced Cola, Pepino, which they had to soon withdraw in the face of battering confrontation with Coca-Cola.
Three of four groups of Indians companies who had the required production capacity started their own brands of Cola, Lemon, Orange, but failed to achieve their goal on a National basis.
India always has love and hate relationships with MNC’s which gave a significant opportunities to soft drinks industries in India when Coca-Cola decided to windup its operation in 1977 rather then bowing to the Indian govt. insisting on:-
Dilution of equity, as the govt. felt that lots of foreign currency was being wasted.
Manufacturing of the top-secret concentration in India.
Disclose of the chemical composition of the essence.
This left a large vaccum in the soft drink market, and a vista opened to any company with the requisite, technical, marketing and organizational skills. The exit of Coca-Cola from India in 1977 accelerated the growth of several Indian soft drinks. New soft drink in the form of Tetra pack entered the market among Frooti, Jump-In and Treetop were the prominent once. Till1 1977 their equipped bottling plants and the distribution network a longing to be of no use. It took them one year to develop new formula to survive and gradually came up with Campa, Lemon, Orange and Cola that order.
However Parle, the pioneer in the sot drinks, blazed its way to national prominent with their product “Thumps up” bearing the slogan “Happy Days Are Here Again”. This particular slogan helped to win over the loyalist or addicts to Coca-Cola, who was in the state of “Cola Shock” or Cola Depression. Soon the Indian soft drink industry started at a phenomenal rate, and all Parle product Gold Spot, Limca and Thumps up became the brand in their own segment.
Inspite of all these, the drink market still has large gap, as claim by soft drink manufactures. To fill these gaps there are many soft drink concentrate and squashes flooded the market. The Indian soft market basically offered three flavours i.e., Orange, Lemon and Cola.
1990 saw the comings of the multinational company PEPSI entering the Indian market. 11 years after the exit of Coca-Cola. It had name, fame and edge of being one of the best in the game and it also offered stiff competition to Parle and Coke. Pepsi Cola Company founded by CALEB BRADHAM in 1890 at North Carolina in USA. Now it is ranked 86th (1998) in the world with the asset of around $ 25,000 million, having its headquarter at ATLANTA. Its CEO is ROGER ENRICO and PepsiCo.
vision of the organization
First of all it is important to know that “WHAT IS VISION”?
“Description of something (an organization corporate culture, a business, a technology, an activity) in the future”.
-Philip Kotler.
In other words, we can say that vision is defined as a mental image or foresight.
S.M.V. Beverages Pvt. Ltd. says its vision “S.M.V. Beverages Pvt. Ltd. enters the next few years with the confidence of a learning knowledge based and happy organization”.
We will establish ourselves as a supplier of choice by delighting our customers with our service and our products. In the coming decade, we will become the most cost competitive Beverages plant and so serve the community and the nation.
MISSION OF THE ORGANISATION
WHAT IS MISSION?
”Essential purpose of the organization ,concerning particularly why it is in existence ,the nature of the business it in ,and the customers it seeks to serve and satisfy”. Thomson
S.M.V. Beverages Pvt. Ltd. derive their mission statement from a particular set of tasks. They are called upon to perform in the light of their individual, national and global priorities.
GOAL SETTING OF THE ORGANISATION
Goals denote what an organization hopes to accomplish in a future period of time. They represent a future state or an outcome of the effort put in now. A broad category of financial and non financial issues is addressed by the goals that a firm sets for it. P.S Kumar ,Director of S.M.V. Beverages Pvt. Ltd. expressed the purpose of the organization as “ Our goal is to be the most competitive and progressive institution in our(i.e Beverages) industry” .The company stated goals were “growth ,innovativeness ,high profits as a barometer of efficiency ,highly involved employees distinctively charged with pride….”.
The main goals of S.M.V Beverages Pvt. Ltd. is as follows:-
1. Growth had been achieved in terms of customers and average business per employee , Good product quality and service.
2. Innovativeness was reflected in a number of new schemes.
3. A high profit between its competitors and become industry leader.
4. Employee involvement had been sought through the delegation of authority and devolution of power to grassroots level through a change in administrative structure and the creation of circle.
NATURE OF MARKET COMPETITION AND STRATEGY
PEPSI-THE INDIAN EXPERIENCE
Previously there were three ads. Tags “Yehi Hai Right Choice Baby”, “ Nothing Official About It” , “Yeh Dil Mange More”, and “Yeh Pyas Hai Badi” which immediately ring a Bell-its to be a Pepsi. But today this ad. Tag has been changed and now it’s “Yeh Hai Youngistan Meri Jaan.
Pepsi is a short span of its operations in India has found a place in hearts and minds of the Indian consumers. The success has primarily been due to the innovate and passionate Indian team which has been built over the years. Pepsi is a trendsetter managed and run by Indians, where important decisions are taken locally.
Pepsi started its operations in India in 1989 and since PepsiCo. has setup a fully integrated operation India viz. manufacturing, research and development, marketing, distributing and franchising covering fruit / vegetable processing, export, snack foods and beverages. In 1993 PepsiCo setup a hold company to further accelerate growth the future through new initiatives and joint ventures. PepsiCo. fully committed to India and the national objective of development of technology and accelerating exports and employment. It has brought in over $ 500 million in foreign exchange as well as technology, which is used for its global network by way of royalty, know how dividends.
PepsiCo. has a turn over $ 25 billion, half of which comes from beverages and the other half from the snacks foods divisions. The beverages arm of the PepsiCo. is Pepsi Cola company and the snacks foods company is called Frito-Lays Inc. The year 1998 is the centennial year of Pepsi.
BEVERAGES
Pepsi has set up a concentrate plant in 1989 at Channo, District Sangpur, Punjab, with an investment of $ 5 million the state of the art Plant houses a world – class laboratory where soft drinks from all over the world are tested. This concentrate plant supplies Pepsi, 7UP, Team, Mirinda, Orange, Apple and Lemon flavors to all the Pepsi Bottling plant in South Asia.
Pepsi has 40 bottling plant in India, out of which 16 are company owned and 24 are owned by Indian franchisees, Pepsi Co. has invested heavily on up gradation of these bottling plants and put 5 green fields projects in backward areas such as jaipur and Bazpur in U.P. Bharuch in Gujarat, Sonarpur in west Bengal and Naclamangala in Karnataka. New project are coming up in Maharastra and Tamilnadu. In addition to the Company’s own Bottling Operations (COBO), Pepsi has 24 Franchisee Owned Bottling Units in India. These franchisee manufacturers are also planning to install
substantial additional capacities. In last two year pepsi Co.’s franchisee have put new bottling plant at Jaipur, Bhopal, Hajipur (Bihar), Guntur (A.P) and Gawahati(Assam), with further investments. Pepsi Co.’s franchisees were chosen for being the Bottler of the Year amongst all international Bottlers.
JUICES
Pepsi Co. plans to launch juices in a bog way in India, there by helping the farmer in fruit procurement. Pepsi Co. Agriculture Scientist has undertaken research on Mango, Guava and Oranges and these fruits would be the priority area for the juice launch in India. Presently Pepsi has one juice brands Slice, which are presently mango juice brands. Pepsi Co. also has bottling lines in most of the plants.
DEVELOPING SPORTS
Pepsi today is one of the main sponsor’s related activities in India and has counted to promote upcoming new players, Cricket, Hockey and Football. In Mohali, Pepsi has developed a Pepsi Cricket Academy, which would develop over 500 Young Cricket enthusiasts in next five years. Similarly Pepsi cricket coaching camps an clinics are held to coach young boys in North and South
COMMUNITY RELATION
Most of the bottling plants are located in backward areas, thereby giving huge employment opportunities in these areas. Pepsi is responsible company undertakes social projects in an around the bottling plants. These include supports to the education centers, sponsors, inoculation camps, providing free health checkup, initiating sanitation, drives, promoting literacy drives and helping village to put up bus shelter etc.
MARKETING STRATEGIES.
INTRODUCTION
Marketing needs a framework that begins and ends with the customer. Marketing tools by themselves do not achieve marketing objectives. There is an intermediate step between the deployment of marketing tools and achievement of marketing objectives. A marketing network consists of the company and its supporting stakeholders (customers, suppliers, distributors, retailers, ad-agencies and others). The operating principle is simple: build and effective network of relationship with key stakeholders, and profit will follow.
A set of marketing tools the firm uses to pursue its marketing objectives are called marketing-mix. These tools can be classified into four groups which are called the four P’s of marketing.
MARKETING MIX TARGET MARKET PRODUCT PRICE PLACE PROMOTION
However some academician feels that the four P’s of marketing have become redundant and need to be replaced by the four A’s or four C’s of marketing .
FOUR A’S ACCEPTABILITY AFFORDABILITY AWARNESS ACCESSIBILITY
FOUR C’S CUSTOMER VALUE CUSTOMER COST CUSTOMER COMMUNICATION CUSTOMER SOLUTION
Soft drink is a FMCG product which has a wide and scattered market. Thus in order to succeed companies needs to break down their marketing activities into sub-parts to effectively meet the customer needs.
The entire marketing in this case is divided into three parts:
Root marketing
Home marketing
At work marketing
ROUTE MARKETING
Outlets coming under this market cater to the needs of those customers who are engaged in shopping, eating out in restraunts, going to and from work, in amusement centers etc. In simpler words this marketing is what we call the bazaar
ROUTE MARKETING AND PRODUCT DISTRIBUTION TO RETAILERS
AREACODE: - Jamshedpur
Routes:
1. Main Road Mango-ii
2. Zakhir Nagar
3. Azad Nagar
4. Dimna Road, Mango-i
5. Post Office Road
6. Transport Nagar
7. Aastha Space Town
8. Madhusudan Complex
9. Dimna Chowk
10. Sakchi
Area covered: Mango area-
Mango 1
Mango 2
Boutique visited
Mango 2
1. Ajay general store(main road)
2. Sindhi hotel(main road)
3. Dutta sweets(main road)
4. World voice STD (main road)
5. Altamash general store(main road)
6. Sony cycle store(main road)
7. Indian bakery (main road)
8. Sourav variety store (main road)
9. Anwar beetle shop(main road)
10. Akhtar beetel shop(main road)
11. Richa gift corner(main road)
12. Gopal store(main road)
13. R C traders(main road)
14. Nizami snacks general store(main road)
15. Maya variety store (main road)
17. Taz general store(main road)
18. Flash cleaners(main road)
19. Bhartiya jalpan(main road)
20. Mahesh general store(main road)
21. Tuntun general store(main road)
22. Khan store(zakhir nagar)
23. Shahan general store(zakhir nagar)
24. Farhan store(zakhir nagar)
25. Javed general store(zakhir nagar)
26. Aslam betel shop(azad nagar)
27. A to z general store(azad nagar)
28. Bhaiya milk(azad nagar)
MANGO 1
1. Prince store
2. Tulsi general store
3. Jaya variety store
4. Darbhanga dairy
5. New darbhanga dairy
6. Health store
7. Bharat hotel
8. Ashirbad store
9. Aradhana general store
10. Manoj general sore
11. Mukesh auto agency
12. Bhola jalpan
13. Suraj communication
14. A to Z general store
15. Singh store
16. Baba da dhaba
17. Raj gift corner
18. Sonu general store
19. Sadhana sweet
20.Suraj communication
21. Sudha milk corner
22. Rahul store
SAKCHI
1. S.N AGRAWAL
2. G.D.AGRAWAL
3. Hari Bhandar
4. Stamp House
5. Har Gouri sweets
6. Kisan hotel
7. Sachdeva Juice Centre
8. Sarkar store
9. Vishwa Nath STD
10. Xerox Zone
11. Govind Corner
12. Lakhi Veg. Restaurant
13. Chandan Store
14. Siv Pan Shop
15. Harsh Communication
16. Diamond Xerox
17. Chilling Point
FREEZE COMPLAINS:-
OUTLETS ADDERESS
1. APNA BACKERY ZAKIR NAGAR
2. SINDHI HOTEL MANGO CHOWK
3. SAHAN GENERAL STORE ZAKIR NAGAR
4. ASLAM BETAL SHOP AZAD NAGAR
5. BHARAT HOTEL P.O ROAD
6. ATO Z DEPT. STORE MADHUSUDAN COMPLEX
7. TAJ GEN STORE MOTI MAHAL.
Result:-Problem Solved.
UMBRELLA & DISPLAY REQUIREMENT:-
OUTLETS ADDRESS
1. FARHAN STORE ZAKIR NAGAR MANGO
2. DUTTA SWEETS G3 AKASH GANGA
3. TUN TUN GEN. STORE PARDIH
4. BHARDWAJ NASTA MANGO CHOWK
5. PRINCE BAKERY MANGO CHOWK
6. BHOLA BHOJNALAYA DIMNA ROAD
7. KHUSHI STORE DIMNA
8. RAJ GIFT CORNER DIMNA
9. MANOJ STORE DIMNA ROAD
10. GUPTA STORE DIMNA ROAD
11. ITC STORE POST OFFICE ROAD
P-O-G (plannogram):-To increase sale Pepsi started on new idea and this is P-O-G. It is a arrangement of bottles in visicooler with a systematic way. In this we mainly concentrate on charging of visicooler, SKU (stock keeping unit) and purity.
Cooler execution process
P-O-G first time
Step 1 : empty the cooler
Step 2 : clean the cooler
Step 3 : clean the bottles by duster
Step 4 : puts the products in lower shelve
Step 5 : keep 2 inch distance between bottle and upper shelve
Step 6 : charge accordance to P-O-G
POG second time
Step 1 : inspect the cooler properly and and insert bottle in shelve accordance to SKU
Step 2 : clean the bottles and put to cooler
Step 3 : ensure that cooler is 100% charged
Step 4 : charge according to P-O-G
Six steps method adopted at SMV BEVERAGES at Jamshedpur
1) Define key drives
2) Quantify opportunities
3) Establish goals
4) Fill performance gap
5) Calanderised improvement
6) Link reward to result
The distribution channel
Frequently there may be a chain of intermediaries; each passing the product down the chain to the chain to the next organization before it finally reaches the consumer or end user. This process is known as the ‘distribution channel’ or the channel. Each of the elements in this chain will have their own specific needs, which the producer must take into account, along with those of the all important end user.
CHANNEL
A number of alternate channels of distribution may be available:
F Selling direct, such as with an outbound salesforce or via mail order, internet or telephone sale.
F Agent who typically sells direct on behalf of the producer.
F Distributor (also called wholesaler), who sells to retailer.
F Retailer (also called dealer or reseller), who sells to customers.
F Advertisement typically used for consumption goods.
Distribution channels may not be restricted to physical product alone. They may be just as important for moving a service from producer to consumer in certain sectors, since both direct and indirect channels may be used. Hotels for example, may sell their services (typically rooms) directly or through travel agent, tour operator, airlines, tourist boards, centralized reservation system etc.
There have also been some innovations in the distribution of services. For example, there has been an increase in franchising and in rental services- the latter offering anything from televisions through tools. There has also been evidence of service integration, with services linking together, particularly in the travel and tourism sector. For example, links now existing between airlines hotel and car service sector. Outlets such as estate agencies and building society offices are crowding out traditional grocers from major shopping area.
Channel members:-
Distribution channel can thus have a number of levels. Kotler defines the simplest level that of a direct contact with no intermediaries involved, as the ‘zero level’ channel.
The next level, the ‘one level’ channel, features just one intermediaries; in consumer goods a retailer, for industrial goods a distributors. In small market(such as small countries) it is practical to reach the whole market using just one- and zero level channel.
In large market(such as large countries) a second level, a wholesaler for example, is now mainly is used to extend distribution to the large number of small, neighborhood retailer or dealers.
In japan the chain of distribution is often complex and further levels are used, even for the simplest of consumer goods.
Channel decision:-
1. Channel strategy
2. Product or service cost, consumer location
Managerial concern:-
The channel decision is very important. There is a form of trade off: the cost of using intermediaries to achieve wider distribution is supposedly lower. Indeed, most consumer goods manufacturers could never justify the cost of selling direct to their consumers, except by mail order.
Assume that once their product has been sold into the channel, at the beginning of the distribution chain, their job is finished. Yet that distribution chain is merely assuming a part of the supplier’s responsibility; and if they have any aspiration to be market oriented, their job should really be extended to managing all the processes involved in that chain, until the product or service arrives with the end user.
This may involve a number of decisions on part of supplier:
F Channel membership
F Channel motivation
F Monitoring and managing channels
Channel membership:-
1. Intensive distribution- where the majority of resellers stock the product (with convenience product, for example, and particularity the brand leaders in consumer goods markets) price competition may be evident.
2. Selective distribution- This is the normal pattern(in both consumer and industrial markets) where suitable resellers stock the product.
3. Exclusive distribution- Only specific selected resellers or authorized dealers (typically one per geographical area) are allowed to sell the product.
Channel motivation:-
It is difficult enough to motivate direct employees to provide the necessary sales and service support. Motivating the owners and employees of the independent organization in a distribution chain requires even greater effort. There are many devices for achieving such motivation. Perhaps the most usual is incentive. The suppliers offer a better margin to tempt the owners in the channel to push the product rather than its competitors; or a competition is offered to the distributors, sales personnel, so that they are tempted to push the product. Dent defines this incentive as a channel value proposition or business case, with which the suppliers sells the channel member on the commercial merit of doing business together. He describes this as selling business model not product.
Monitoring and managing channel:-
In much the same way that the organizations own sales and distribution activities need to be monitored and managed, so will those of the distribution chain.
In practice, many organizations use a mix of different channels; particularly, they may complement a direct sales force, calling on the larger accounts, with agents, covering the smaller customer and prospects.
QUANTITY PRICE/CARET
1. 200ML 168/-
2. 250ML(SLICE) 214/-
3.600ML 456/- per petti
4. 2L 432/- per petti
5.AQUAFINA WATER 119/- per petti
1Caret:24Bottles
(Pepsi Products viz.Pepsi,Mirinda,7UP,Slice,MountainDew)
1Petti:12petjars(600ml)
1Petti:9petjars(2L)
1Caret:20Bottles(Aquafina Water)
Cost of per 200ml bottles to Retailer:- 7/- through Dealer
Reach to consumer hand:-8/- per bottles
Profit to Retailer:1/- per bottle.
NOTE:- The rates of PEPSI PRODUCTS is not stagnate. It should be varied due to
Market conditions.
PROBLEMS:
1. Less supply of product in remote/small areas.
2. Lack of offers/schemes in rainy seasons.
3. Poor transportation medium.
4. Lack of demand due to seasonal fluctuations.
5. Less supply of more demand products like 7UP, SLICE.
6. Poor product loading.
7. Demand of slice is high but supply is not upto the mark.
8. 300ml products have not reached to small retailers.
BIG INCIDENT DURING DISTRIBUTION:-
Found germs in SLICE Product in very renowned shop in Mango area. There were lots of disputes between consumers and me. I tried to assure them that SLICE soft drink is safe and free of germs by my ethics and smooth consumer value treatment. After inspection of the store I found that there were 5 to 6 bottles containing insects due to bad storage by shop members. Although the mfg. date of those bottles were not more than 10 days. After due to my convincing power and my communication I solved that great problem.
DETAILED PRODUCT LINE & CHRACTERISTICS
| PRODUCT | PEPSI | COCO-COLA |
| COLA | PEPSI | THUMPS-UP |
| ------- | ------ | COCO-COLA |
| | MIRINDA | FANTA |
| LIME | 7UP | SPRITE |
| -------- | MOUNTAIN DEW | ---------- |
| LEMON | ----------- | LIMCA |
| FRUIT JUICE (MANGO) | SLICE | MAAZA |
| SODA | EVERVESS | KINLEY |
| MINERAL WATER | AQUAFINA | KINLEY |
DISTRIBUTION CHANNEL OF PEPSI:
Theoretical Aspect Of Channel Of Distribution:
Physical distribution is a process of reaching a product to consumer.
It consist of all the activities in the physical transfer of goods from manufacturer to the ultimate consumer. Distribution is one of the 4P's of marketing mix. The other 3 being product, price and promotion.
Theoretical Aspect:
Main problem of a manufacturer can broadly be divided in to two parts, production and distribution. After production the next main problem faced by producer is that selling distributing because the production is made to safety the needs of consumers, so it must reach the consumer for whom it is made. Thus a way through which goods flows from the producer to the consumer is called "Channel of Distribution".
The term "Channel Distribution" has been defined by many eminent authors as follows:-
"Every producer seeks to line together the set of marketing intermediaries that about fulfill the firm's objectives. This set of marketing intermediaries is called the marketing channel also trade channel of distribution".
-Philip Kotler
"A channel of distribution (sometimes called trade channel) for a product is the route taken by the title of the goods as they move from the producer to the ultimate consumer or industrial users".
-Whilom J. Stanton
"Distribution channel are the system of the economics institution through which producer of goods deliver them in to the hands of the user". Channel of distribution are the management tools used to move goods from producer to the consumer or industrial users. They are the means by which the title of the goods are transferred from the seller or producer the buyers.
-Richard Buskink
TYPES OF CHANNEL OF DISTRIBUTION MANUFACTURER MANUFACTURER MANUFACTURER WHOLESELLER WHOLESELLER JOBBER RETAILER RETAILER RETAILER CONSUMER CONSUMER CONSUMER
CHANNEL OF DISTRIBUTION FOR CONSUMER GOODS
0-LEVEL 1-LEVEL 2-LEVEL 3-LEVEL
Functions of Channels of Distribution:
The following are certain function, which generally are performance by different channel of distribution or middleman.
Helpful in Price Determination:
Channel of distribution are very helpful in determining the price of the product because they are in direct touch of consumer. They can estimate paying capacity of the middleman while determining the price of his product.
To manage finance
All the manufacturers have limited financial resources.Middleman helps manufacturers in adequate financial resources available.
To manage the process of distribution easy
It is not possible for a producer particularly a producer of consumer good to be in direct touch of all consumers. Therefore, it is not very practical for the producer to distribute the goods produced by the producer at the right time and at right place to the right consumer.
Promotional activities
Channel of distribution help the producer not only in the distribution of goods and service but also in promoting the sales of these producers. Wholesalers advertised for the goods dealt by them and retailers help in increasing the sales by adopting the method of sales promotion.
Helpful In Communication:
It is the time of changes. Habits, taste, nature and attitude of the consumers keep on changing frequently. In the light of these changes it becomes imperative for every producer to make necessary changes in this product. Channel of distribution helps producer by communicating the changes in the product to the consumer and also communicating the changes in habits, taste, liking and preferences of the manufacturers.
Matching the demand and supply
Most important function of the middleman is to collect and services from many producers so that consumer may select from a large number of alternatives. In the words of WOREALDERSON-
"The goal of marketing is the matching of demand and supply. Thus the middleman plays the game of matching demand and supply of goods and services in the market".
Other Functions:
To stabilize the price.
To help in forecasting the demand for a product.
To help in market research.
To help in production activities.
Factors Affecting The Choice Of The Channel Of Distribution:
There are number of channel and company is to choice any one of them that makes best in the marketing strategy followed by the company. The channel chosen achieves ideal market exposure and should meet target consumer's need and preferences. In choosing an ideal channel, the producer always has to struggle between what is ideal and what is available what available need is not necessarily be ideal because here are number of factor limit the choices, ideally, the west cost channel may be considered to be the best but it not always so. The main consideration in selecting the channel must be satisfaction of customer there for, sometimes relatively high cost channel may prove profitable.
Various factor which effect the choice of channel of distribution may be classified as factor relating to:
1. Factor relating to product characteristics
Purchase frequency
Perish ability
Light and technicality of the product
Selling price per unit
Standardized product
2.Market factor or consumers factors
Number of purchasers
Geographical distribution of customers
Size of orders
3. Companies or Enterprise factors
financial resources
Size of the company
Product mix
Attitude of company
Marketing policy
4. Middlemen considerations
Services provided by middlemen
Middleman attitude
Availability of middleman
Sales volume potential
Cost of channel usage
5. Environment factors
Economical condition
Legal restriction
Social & ethical consideration
CHANNEL OF DISTRIBUTION IN S.M.V. BEVERAGES PVT. LTD.
To make its products available at the right place, at the right time in the market, the sales department of the company plays major attention towards controlling the channel of distribution.
The company right from its beginning stage maintains single type of marketing channel. The name of channel is as follows;-
COMPANY
|
DISTRIBUTOR OR WHOLESELLER
|
RETAILER OR DEALER
|
CONSUMER
At first soft drink is supplied to distributors directly. Retailers cannot take the delivery directly from the company. they have to take it from their respective or nearest distributors. The distributors selected on the basis of assurance given by them regarding minimum sales, which they have mention annually. The selection is also done on the basis of the financial position and reputation of distributing in the market. As for the example, in appointing distributors first priority is given to those people who are in cigarette business. Depending upon market each distributor in the initial stage deposit some security money. This varies between five thousand and ten thousand.
The distributors select the retailers. There is no relation between the company and its retailers. On the other hand there are no definite and fixed criteria for the selection of appointment of retailers from the side of distributors. Any one like "Panwala", "cigarette shop" or any other shopkeepers can have the stall for the sale of soft drinks and they are called retailers or dealers.
They have to give assurance to the concerning distributors for better sales and time of taking delivery they have to deposit the security that is the change for the empty bottle with specified purchasing price.
The distributor at first has to seek the permission of the sales department for the number of cases of soft-drinks required by them. After getting the proper authority from the sales department, they take the delivery form the shipping department paying the requisite either in cash or as demand draft.
Generally there is no compulsion on that part of distributors to provide the transportation facilities to their retailers. But the distributors of the big areas like Ranchi, Jamshedpur and Bokaro. Provide the transportation facilities to their respective retailers. The distributor and retailers are independent to sell as they want but are controlled to some extent by the company also, as they have to give some assurance regarding minimum sales. It happens to because they are given some incentives also. They are fully independent to gear up the market, as they want. The company does the gearing job itself also and times it advises them to the gearing up in a way, which is more profitable for all of them.
The distributors can be dropped if they fail to achieve the required the target of sales. They can be also dropped when they don't follow the instruction given by the company or when they charge high price or when they are engaged in black marketing, loading etc. But the company has not dropped any of its distributors till now.
The supply of soft-drinks, to the distributors depends upon the ups and downs in sales. But, in the initial stages the distributors have to sell up to a minimum target set by the company or as decided by an agreement between the company and the distributors. In the later stages soft drink is supplied as and when demanded by the distributors.
Sales building blocks:
1.Distribution
2.Space
3.Location
4.Appearance
5.Freshness
6.Range
7.Scheme/POS
8.Service
RESEARCH METHODOLOGY
The methodology used for collecting the data is considerd to the primary for any report.
The research design of this report is exploratory i.e. formulating a problem from more precise investigation. The main emphasis is on the discovering of ideas and insights. The formulate research design is characterized by great amount of flexibility. It contains of the characterized by great amount of provide opportunities for considering different aspect of a problem undertaken in the study.
COLLECTION OF DATA:-
Data was collected on the basis of primary and secondary.
Primary Data:
The data, which is being collected for the first, is known as primary data.
Secondary Data:
The data, which is already assembled, is the secondary data i.e. magzines, websites and organization report.
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