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Summer Project Essay This is to certify that Mr. Chandan Kumar (Reg. No. 11382017) a student of MBA – International Business, 2011 – 2013 batch has successfully completed his internship training at Lumbini Beverages Pvt Ltd. , HAJIPUR(BIHAR). His period of training was MARCH-APRIL. He has prepared the internship report titled â€Å"A Study on Sales Promotion at PepsiCo† for the requirement of the concern and for Master of Business Administration in International Business program in the Department of International Business, School of Management, Pondicherry University, Puducherry – 605 014. Dr. Bushan D. Sudhakar Reader, Dept. of Int’l Business, School of Management, Pondicherry University, Puducherry – 605 014. Dr. P. Sridharan Head of the Department, Dept. of Int’l Business, School of Management, Pondicherry University, Puducherry – 605 014 2|Page CERTIFICATE FROM THE GUIDE This is to certify that the Project Work entitled â€Å" A Study on Sales Promotion at PepsiCo† is a bonafide work of Mr. Chandan Kumar carried out in partial fulfilment for the award of degree of MBA (International Business) of Pondicherry University under my guidance. This project work is original and not submitted earlier for the award of any degree / diploma of any other University / Institution. Signature of the Guide (Name and Official address of the Guide) Place:†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Date:†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 3|Page STUDENT’S DECLARTION I, Mr. Chandan Kumar hereby declare that the Project Work entitled â€Å"A Study on Sales Promotion at PepsiCo† is the original work done by me and submitted to the Pondicherry university in partial fulfillment of requirements for the award of Master of Business Administration in International Business is a record of original work done by me under the supervision of Dr. Bushan D. Sudhakar, Reader, Department of International Business, School of Management. Signature of Student Date:†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 4|Page ACKNOWLEDGEMENT It is well established fact that behind every achievement lays on unfathomable sea of gratitude to those who have extended their support without whom the project would never have come into existence. I now take the opportunity to thank Mr. N. K. Prasad, HR Manager, Lumbini Beverages Pvt Ltd. , who granted me the permission to undergo training in this prestigious organization. I would extend special thanks to Mr. Anish Kumar, Sales Executive, under whose guidance and support I was able to complete this project. During the entire period of my training, I received endless held, support and cooperation from all the employees of the organization. I think my report would be incomplete if I do not convey my grateful thanks to them. I express my sincere thanks to Dr. Prahakar Raya, DEAN, School Of Management and along with him I express my humble and sincere thanks to our Department Head, Dr. P. SRIDHARAN, Department of International Business, School Of Management for their guidance and support throughout this project. With deep sense of gratitude, I acknowledge my sincere thanks to Dr. Bushan D. Sudhakar who has always been a source of inspiration to me and constantly implanted his useful guidelines, experience and provided his valuable time in the completion of this project. Although it is difficult to say that I have achieved what I wanted to present, but within the circumstances and various limiting factors, I have tried to give my best. 5|Page EXECUTIVE SUMMARY PepsiCo is a world leader in a convenient food and beverages with revenues of more than $45 billion and more than 1, 60, 000 employees. The 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 sells and the retail level of about $85 billion. PepsiCo is the world’s premier Consumer Products Company focused on convenient foods and beverages. This project work entitled â€Å"A study on sales promotion of PepsiCo†, was done to become familiar with the working of PepsiCo (LUMBINI BEVERAGES PVT LTD) and to know the strategies used by PepsiCo in the sales promotion. The important objectives of the project were to find out: what are the various types of promotional strategies used in marketing, in which way the strategies are implemented, what is the market share of the company, which promotional strategy is used most, what is the impact of sales promotion during off season, how retailers react to new sales promotions, what are the various tools that the company uses during sales promotion, and which type of promotional offers retailers prefer etc. The project is entirely based on my observations made during the two months spent at lumbini beverages pvt ltd and visits to various markets of Hajipur. Based on my learning and experience, I have made some suggestions to improve the sales promotion activity and services. 6|Page INDEX Chapter I. INTRODUCTION 1. 1 Introduction 1. 2 Statement of problem 1. 3 Objectives of the study 1. 4 Scope of the study 1. 5 Need of the study 1. 6 Research methodology 1. 7 Limitation of study Chapter – 2. 1 . COMPANY AND INDUSTRY PROFILE 9-10 10 11 11 12 12-14 15 16-40 41-49 51-66 68 69-70 71 72 73-75 2. 2. REVIEW OF LITERATURE Chapter-III. ANALYSIS INTERPRETAION Chapter-IV. 4. 1. FINDINS 4. 2. B. SUGGESTIONS 4. 3CONCLUSION 4. 4 BIBLIOGRAPHY APPENDIX:QUESTIONAIRE 7|Page CHAPTER- 1 1. 1 Introduction 1. 2 Statement of problem 1. 3 Objectives of the study 1. 4 Scope of the study 1. 5 Need of the study 1. 6 Research methodology 1. 7 Limitation of study 8|Page 1. 1 Introduction: In the present day world, either there is mass production or ill anticipation of demand, there is always a pressing need for intermediaries of one type or the other, for enabling the goods to reach the ultimate consumer. The purpose is to sell everything that is produced. However, it is really difficult for the producer to undertake the sales or distribution of goods directly to the consumers all by themselves. There for, the responsibility or distribution is undertaken by a number of intermediaries who are often termed as channel or distribution. Sales transfer for ownership from the company within the customers, exchange of goods and services. Sales and distribution is a part of marketing and product design according to the need of customers. Sales and distribution is a primary involvement of transfer of goods and services from the company to the customers. Selling emphasizes in selling the securable surplus available with company i. e. selling quantity convert Product into Cost using trend and techniques of shifting customer to part with the cost. Thus, a salesman introduces the goods to the customer, Interest and persuades them to purchase the goods and finalize the deals of the product. So, the primary objective of sales and distribution is to assist the producer in marketing the goods and services one hand and to satisfy the demand of the consumers on the others. Channel of distribution helps the consumer in providing good of right quantity at the right time, right place and at the right price. 9|Page SourcesThe main sources of the Sales and Distribution is to reach through the channel. Every channel contains one or more transfer point where there is either an institution or a final buyer. In other words, legal ownership of the product changes hands at least once or the producer sales directly to the final buyer and there is no intervening of middlemen Selecting a channel for sales and distribution for their product is one of the important problems faced by manufacturers of PEPSICO It is quite difficult to identity a specific channel which can be considered as the best. There for, each producer most carefully select a channel which will suit his requirement and bring the best result to the firm. The channel of distribution can broadly be divided into two categories i. e. Direct and Indirect. Under direct channel of sales and distribution, manufacturer sells directly to the consumers, without any middlemen, whereas under indirect channel of sales and distribution, producer sells through various middlemen like wholesalers, agents, retailers, etc. This is the shortest channel a producer can adopt for sales and distribution of goods and services. In this system, goods move directly from the producer to the consumers without any middlemen or a merchant. 1. 2 Statement of Problem: The first and foremost step in the problem identification in Sales Promotion. research process consists of Here statement of problem is to know the Sales Promotion activities towards brands. 10 | P a g e 1. 3 OBJECTIVE OF STUDY This study was conducted on â€Å"A study of â€Å"Sales Promotion’ activities of PEPSICO for different retail outlets of Hajipur†. The specific objectives of the study are1. To find out the promotional activities of PEPSICO. 2. To know the distribution channel of PEPSICO. 3. To find out the market share of PEPSICO. against its competitor. 4. To find out the influence of medium of advertisements of PEPSICO. on different age group 1. 4 SCOPE OF THE STUDY This study was done in Hajipur at LUMBINI BEVERAGES PVT LTD. The geographical scope of my survey was limited to Hajipur only. Study aims at relationship between Company Executives and retailers and why any retailer sold particular brand only. The survey covers a wide range of activities and factors, which influence the retailers to sell PEPSICO. Products. The sample of 80 respondents is taken to represent total retails of Hajipur Zone. The validity of the findings of this survey is limited to the period during which the field survey was conducted i. e. eight weeks. 11 | P a g e 1. 5 NEED OF STUDY The eight weeks Summer Training is very important for a student of MBA. This type of study gives some practical knowledge to MBA students and practical knowledge is more useful than theoretical knowledge for any one.