01-06-2012, 05:44 PM
PARTNER RELATIONSHIP MANAGEMENT OF PEPSICO INDIA’S FOBO VARUN BEVERAGES LTD
PARTNER RELATIONSHIP MANAGEMENT.pdf (Size: 592.84 KB / Downloads: 48)
This study titled as above aims at exploring the strategies followed by PepsiCo India to
manage its various partners both internal as well as external since it started its operations
in India. This study will also explore what changes PepsiCo India is bringing in order to
increase its visibility and market presence to tackle the ever increasing hold of Coca Cola
on the Indian beverage market.
This study aims to explore the overall functioning and position of PepsiCo India in the
marketplace. It also aims to know customer perception regarding PepsiCo India. To know
about these facts this report will primarily focus on the partner relationship management
of PepsiCo India’s main carrying and forwarding agency Varun beverages limited.
To know the overall functioning of PepsiCo India is important in order to get an
understanding of the topic. It is also important because is will explore the sales and
distribution system of Pepsi India which is considered to be one of the strongest not only
in the country but also worldwide. This project also covers a detailed observation and
study of the VISI-PURITY campaign and the various retail initiatives specially related to
the Slim Diet Cans and their acceptance in the Trans-Yamuna and Agra markets both of
which are upmarket towns
LITERATURE REVIEW
PepsiCo is one of the oldest, largest and most successful beverage and snack food
companies in the world. PepsiCo was founded by Caleb Bradham in 1902 in USA. Today
PepsiCo and its affiliates operate in more than 140 countries in the world and generate
revenues in excess of $ 40 Billion. In its pursuit of never ending growth and expansion,
PepsiCo entered India in 1989 in a joint venture with Punjab Government. However,
PepsiCo India very soon started its beverage operations in collaboration with the R K
Jaipuria group.
CSD INDUSTRY OVERVIEW
The soda drink and bottled water industry includes more than 3,000 companies that
manufacture and distribute beverages. Only in the USA combined annual revenue is more
than $70 billion. Coca-Cola and PepsiCo hold more than 50 percent of the market,
following strong consolidation in the past decade. Only a few other companies have
annual revenue above $500 million. Most are local or regional manufacturing and
bottling operations with annual revenue under $100 million.
Competitive Landscape:
Demand for non-alcoholic beverages is driven by consumer tastes and demographics. The
profitability of individual companies depends on effective marketing. Large
manufacturers have economies of scale in production and distribution, with average
annual revenue per production worker close to $1 million. Small companies can compete
by producing new products, catering to local tastes, or selling at lower prices.
Products, Operations & Technology:
Nonalcoholic beverages include sodas (carbonated soft drinks, or CSD), bottled waters,
juices, and a large variety of mixtures. Sodas account for about 60 percent of the market.
The manufacture and distribution of most national soda brands, including Coke and
Pepsi, is a two-tiered process. The primary manufacturer produces a flavored syrup called
concentrate that is sold to local bottlers who manufacture and distribute the finished
product. In a typical bottling operation, the flavored syrup, corn syrup (sugar), and
filtered water are mixed in appropriate proportions, carbon dioxide gas is injected, and
the finished soda product is poured into bottles or cans, which are capped, labeled, and
packaged.
Sales & Marketing:
Beverage manufacturers, bottlers, and wholesalers sell products through a variety of
channels, such as food and convenience stores, restaurants, vending machines, mass
merchandisers, and institutions, including schools and colleges. Soda bottlers typically
own local vending machines. The marketing approach to each of these channels is quite
different and often includes promotional spending. Large manufacturers may also sell
directly to national accounts and usually advertise on national or regional TV and in print.