Economic Advantages and Disadvantages of a One Global Currency

Economic Advantages and Disadvantages of a One Global Currency Introduction The recent history of currency exchange rates includes 3 huge changes starting from the end of the XIX to the end of the XX century. Pure gold standard has been the basis for trading between nations during 1879 and 1914 (Abdel-Monem, n.d.). At the beginning of World War I, this standard ceased to exist and in 1920 countries permitted greater exchange rate flexibility (Jereissati, 1999), which however, did not last long and after the end of the World War II the Bretton-Woods system has been implemented. This standard has been created as a result of numerous meetings between the World War II winning states with the final conference taking place at the Hotel in Bretton Woods, New Hampshire. The standard took the name of this last conferences venue (Grabbe, 1996, as cited in Tucker, 2008). In August 15, 1971 Richard Nixon in his speech announced that the price of dollar will be no longer fixed against gold. This has put an end to the Bretton-Woods system and has set-off a new era in international monetary system. The main feature of this new system is that it is neither a pure gold standard nor a pure exchange rate float, but rather a system in between these two extremes (Meese, 1990). This standard exists until today and has been strongly undermined during the latest financial crisis. In this respect, the idea of having a single global currency is widely discussed as an alternative monetary system. This literature review outlines advantages and disadvantages of a single global currency. The Single Global Currency The Concept of a Single Global Currency Single global currency, as one can see from the example of Euro, signifies that countries, where this currency would be implemented, should be the members of a monetary union with one central bank, common currency, a coherent and binding financial policy. Scandinavian Currency Union (SCU), which included Denmark, Norway and Sweden, established a common currency unit, although central banks in each of those countries retained control over monetary policy and did not experience significant loss of independence (Bergman, 1999). The single global currency is a much more complicated issue. History recognizes a lot of monetary unions of different size, both formal and informal. However the most successful example came from the European Union, which is the Economic Monetary Union (EMU). There are also two proposed single currencies, which potentially may come near the Euro. They are the GCC monetary union currency and the Asian Monetary Unit. Economic Advantages of a Single Global Currency The advantages of a global currency are as follows. First of all, single currency will eliminate transaction costs, which are linked to international financial operations. This will affect both: ordinary citizens who plan to spend money abroad and multinational corporations undertaking international transactions. Different currencies create a lot of inconveniences and barriers. Exchanging one currency for another always involves currency exchange fees, as banks, which provide such currency exchanges, require commissions for their services. In the scale of countries or even monetary unions such expenditures on currency exchange fees may reach high amounts. By eliminating the need for currency exchange the monetary unions may save resources (Buiter, 1999, as cited in Bonpasse, 2008). For instance, the European Commission (EC) has estimated that due to a single currency across the European Union 13 to 20 billion of Euro were saved per year (Grauwe, 2007). Moreover the difference between the currencies exchange rates becomes an obstacle for a free flow of trade. As the barrier of different currencies will disappear, the number of international transactions will increase. Bordo and James (2006) said that neighboring countries, which are members of a common monetary union, tend to trade more frequently with each other. In a study conducted by Micco, Stein, and Ordonez (2003) they found out that trade between EU members increased by 8 to 16%, after EMU was created (as cited in Lane, 2006) Currency risks nowadays are one of the major disadvantages of the modern international financial system. Everything, ranged from a natural disaster to terroristic attack, may affect the value of the currency and as a result cause loss. Foreign investors, as well as stock holders, have to hedge their risk, which also demands additional expenditures. Implementation of the single global currency will eliminate the risk of loss, due to currency fluctuations. Moreover Bonpasse (n.d.) points out that the adoption of a single global currency will save 400 billion of US dollars annually in foreign exchange transaction costs, which come from trading 3.8 trillion US dollars every trading day. Currency misalignment is a process when central bank increases or decreases the value of its currency against another for different purposes. The most known cases of currency manipulation are the cases of China and Japan. Both countries artificially undervalued their currencies, which made their exports more competitive. As the value of Yen and Yuan decreases, the prices on Japanese and Chinese products will consequently fall. This has created a great advantage for Japanese and Chinese products in the market. Today the low value of these currencies, which has nothing to do with the real situation, has created huge difficulties for the economies of Europe and USA. Japan and China, based on all criteria related to the IMF definition, have been persistently manipulating their currencies to gain an unfair competitive advantage (Preeg, n.d.). Obviously with a single global currency, currency manipulation by individual countries would be impossible. Moreover there will be no need of such k inds of unfair methods. It is easy to perceive that problems of contemporary monetary system are currency rate fluctuations. As most of the currencies are free and are not fixed to any value, there is a huge possibility for currency speculations. For instance, speculative opportunities of FOREX market may have a great impact on economics of countries and their financial situation. The speculative attack on the Swedish Krona in 1992 is a perfect example. The Central Bank of Sweden had to raise the interest rate of its currency which caused devaluation of the Krona. Receiving income from currency speculations is getting money out of nothing. The next benefit from implementing a single global currency will be the elimination of currency speculations existence. The single global currency will present a different choice for speculators: if they wish to speculate, they will need to choose another commodity, as the money of the people will no longer be for sale (Bonpasse, 2006). Another problem of todays financial system is international reserves or foreign exchange reserves. As the possibility of a currency crash is high, due to currency risks and currency speculations, every country holds assets in various foreign currencies, which are considered as reserve currencies. Mainly it is the US dollar, not so often it is the Euro or the UK pound. However after implementing the single global currency, this hedging method will be unnecessary. As the central bank will abandon the foreign exchange reserves, it will save a considerable amount of money. In 1992 the European Commission estimated that the future Eurozone members might be able to reduce their total international reserves by one-half or $200 billion (Bonapasse, 2008). Disadvantages of a Single Global Currency Turning to disadvantages of a Global Currency, the most negative side of it is that countries will lose the ability to control their financial policy. Today every country is able to determine their monetary policy independently. In order to have an influence on the economy, nowadays central banks of every country through influencing exchange rates and adjusting interest rates, may increase or decrease economic activity. However in case of a single global currency, changes in a local countrys finances, will demand changes in the global scale. So with the Global Currency countries will lose flexibility in their monetary policy. A uniform policy template to provide macroeconomic stability, will constrain a countrys ability to make independent interest rates and exchange rate policy (Bonpasse, as cited in Wenzel, 2007, p17). Another significant disadvantage of having a Global Currency is connected with the difference in economies of different countries. While there are only a few developed states with strong economies, the rest of the countries of the world have rather weak economies, for instance the majority of African countries or some South American countries. In the world with a common currency, the weak economies shall pull down the rest, more well off countries. If one of the members will face a crisis, the others will have to spend their resources in order to stabilize the situation. A perfect example could be the debt crisis, which recently has occurred in Greece. While the EU/IMF bailout package wasnt enough, Germany had to loan about 110 billion Euros in order to save the country from bankruptcy. In addition the crisis had a chance to spread to other countries, as it reduced confidence in the economies of other EU members. Conclusion: Is The Single Global Currency Implementable? Global Currency as a financial system has been first mentioned back in the end of XIX century. The reasons why this system still has not been implemented are rather social and political, than economical. The first obstacle is national identity. Most of the nations consider their currencies as a national symbol, equal to the flag and the anthem. Obviously people will hardly discard their own national symbol, their source of pride. Some people are tempted to view such symbols as they do their flags and national constitutional documents, and the loss of such symbols can be considered as a national loss (Bonpasse, 2008). Just imagine how hard it will be for Americans to abandon dollar and accept a currency with absolutely neutral name and with neutral images and signs. In case of a Global Currency it should be absolutely neutral, as Euro is. Political barriers also should be taken in to account. In the conditions where political tensions between two countries are possible, implementing a single currency is a huge problem. For instance, it is difficult to imagine how USA, Democratic Peoples Republic of Korea and Iran, countries which have experienced significant political tensions, would negotiate in order to accept a single currency. Or it is difficult to say how it is going to work between countries which are in state of war like North and South Korea. In addition, due to political discords, such issues as supply and printing of the Global Currency would be problematic. As an independent central bank is demanded, the first dispute within the countries would be about the location of the central bank. Every member of the global monetary union would try to pull the blanket over. It is hard to believe that after gaining membership to the global monetary union, countries would not start attempting to gain greater influence o n the central bank and hence the monetary policy. Though the process of globalization seems to be unstoppable, we are still far away from being even close to a Global Currency. In my point of view, implementation of the single global currency can be compared to the legends about Eldorado or dreams of Utopia. There is no doubt that Global Currency has more benefits than costs. The loss of control of the monetary policy is a really low price for the other advantages of this idea. Throughout the history mankind tried to give birth to a global government. League of Nations and UN could serve as examples. Esperanto as a worldwide language also has been a great proposal, which could simplify the understanding between nations. But both concepts were not successful up to this time. Unfortunately the single global currency is an idea of such type. Although globalization and the Internet did bring people around the world closer to each other, maybe we are still to different to buy food with the same money. Maybe social and cultural difference s play much bigger role in our life, than we think. USSR made an effort of erasing these differences, but where is the USSR now?

Air Cargo Article Critique

China Airlines is facing a fine of up to $85,410 in US dollars for transporting 15 barrels of iridium 192, a class 7 radioactive material, without the proper permit.   In addition to the source cited here, this article can be found in a variety of publications and sources including Google Finance, since China Airlines (TPE:2610) is a publicly traded company.The barrels were kept in a warehouse from February 23rd to February 26th when the airline made application to and received approval to transport radioactive material from the Atomic Energy Council.Employees at the Taiwan Taoyuan International Airport found relatively low radioactive levels of the iridium isotope which was being transported to Singapore from the United States.  The destination and intended use of the material is not known.   Iridium 193 is used to detect weaknesses in metal pipes, in radiotherapy, and in radiation treatment of certain cancers.This article underscores the importance of airline industry regulat ion of hazardous material transportation.   The article also underscores the importance of consistency in inspection and detection techniques in international airports.Since levels of radioactivity were low, perhaps employees in U.S. airports found no cause for concern.   It was probably assumed that the airline had the proper permit for handling and transporting the iridium.It is reasonable and correct for the Atomic Energy Council to levy a fine for not having the proper transportation permit.   However, the Council needs to work with cargo carriers, international agencies, and airports to develop uniform inspection and detection protocols.Inspection techniques should have examining transport licensing and permits as an objective.   Detection techniques should have determining acceptable radioactivity levels as an objective.   The techniques should have safe and timely transport of materials as a common goal.ReferenceCAL TO BE FINED FOR TRANSPORTING RADIOACTIVE MATERIAL WITHOUT PERMIT. (March 6, 2009). AsiaPulse News. Retrieved March 10, 2009, from General OneFile via Gale.Google Finance.   China Airlines Ltd.(Public, TPE:2610) Retrieved March 10.   2009, from http://www.google.com/finance?q=TPE:2610

Resource Distribution and its Consequences

Resources are materials found in the environment that humans use for food, fuel, clothing, and shelter. These include water, soil, minerals, vegetation, animals, air, and sunlight. People require resources to survive and thrive. How are Resources Distributed and Why? Resource distribution refers to the geographic occurrence or spatial arrangement of resources on earth. In other words, where resources are located. Any particular place may be rich in the resources people desire and poor in others. Low latitudes (latitudes close to the equator) receive more of the suns energy and much precipitation, while higher latitudes (latitudes closer to the poles) receive less of the suns energy and too little precipitation. The temperate deciduous forest biome provides a more moderate climate, along with fertile soil, timber, and abundant wildlife. The plains offer flat landscapes and fertile soil for growing crops, while steep mountains and dry deserts are more challenging. Metallic minerals are most abundant in areas with strong tectonic activity, while fossil fuels are found in rocks formed by deposition (sedimentary rocks). These are just a few of the differences in the environment that result from different natural conditions. As a result, resources are distributed unevenly across the globe. What Are The Consequences of Uneven Resource Distribution? Human settlement and population distribution. People tend to settle and cluster in places that have the resources they need to survive and thrive. The geographic factors that most influence where humans settle are water, soil, vegetation, climate, and landscape. Because South America, Africa, and Australia have fewer of these geographic advantages, they have smaller populations than North America, Europe, and Asia. Human migration. Large groups of people often migrate (move) to a place that has the resources they need or want and migrate away from a place that lacks the resources they need. The Trail of Tears, Westward Movement, and the Gold Rush are examples of historical migrations related to the desire for land and mineral resources. Economic activities in a region related to the resources in that region. Economic activities that are directly related to resources include farming, fishing, ranching, timber processing, oil and gas production, mining, and tourism. Trade. Countries may not have the resources that are important to them, but trade enables them to acquire those resources from places that do. Japan is a country with very limited natural resources, and yet is one of the richest countries in Asia. Sony, Nintendo, Canon, Toyota, Honda, Sharp, Sanyo, Nissan are successful Japanese corporations that make products that are highly-desired in other countries. As a result of trade, Japan has enough wealth to buy the resources it needs. Conquest, conflict, and war. Many historical and present-day conflicts involve nations trying to control resource-rich territories. For example, the desire for diamond and oil resources has been the root of many armed conflicts in Africa. Wealth and quality of life. The well-being and wealth of a place are determined by the quality and quantity of goods and services available to people in that place. This measure is known as the standard of living. Because natural resources are a key component of goods and services, the standard of living also gives us an idea of how many resources the people in a place have. It is important to understand that while resources are VERY important, it is not the presence of or lack of natural resources within a country that makes a country prosperous. In fact, some of the wealthier countries lack natural resources, while many poorer countries have abundant natural resources! So what do wealth and prosperity depend on? Wealth and prosperity depend on: (1) what resources a country has access to (what resources they can get or end up with) and (2) what the country does with them (the efforts and skills of workers and the technology available for making the most of those resources). How has Industrialization Led to a Redistribution of Resources and Wealth? As nations began to industrialize in the late 19th century, their demand for resources increased and imperialism was the way they got them. Imperialism involved a stronger nation taking complete control of a weaker nation. Imperialists exploited and profited from the abundant natural resources of the acquired territories. Imperialism led to a major redistribution of world resources from Latin America, Africa and Asia to Europe, Japan, and the United States. This is how industrialized nations came to control and profit from most of the worlds resources. Since citizens of the industrialized nations of Europe, Japan, and the United States have access to so many goods and services, that means they consume more of the worlds resources (about 70%) and enjoy a higher standard of living and most of the worlds wealth (about 80%). Citizens of non-industrialized countries in Africa, Latin America, and Asia control and consume far fewer of the resources they need for survival and well-being. As a result, their lives are characterized by poverty  and a low standard of living. This unequal distribution of resources, the legacy of imperialism, is the result of human rather than natural conditions.

Family Relationships Role-Plays English Lesson

Using dialogues in class allows students to work on a wide range of skills. Asking students to write up their own role-plays can extend the activity to include written work, creative development, idiomatic expressions, and so on. This sort of activity is perfect for upper-intermediate to advanced level students. This family role-play lesson focuses on relationships between family members. If your students need help developing their family-related vocabulary you, use this exploring relationships vocabulary sheet to provide help. Aim: Consolidate skills through role-play creationActivity: Creation and in-class performance of role-plays related to family relationshipsLevel: Upper-intermediate to advanced Lesson Outline Use this activity as a larger theme-related objective focusing on vocabulary and communication skills related to family relationships.Quickly review the language of compromise. Write helpful phrases and expressions on the board so the students can reference these later in the activity.Pair up students. Ask them to imagine various scenarios that could lead to interesting discussions in the family.Hand out the role-play sheet and ask students to choose a scenario from those provided. If students are not interested in any of the provided role-play situations, ask them to use one of the scenarios they came up with in the warm-up activity.Have students write out their role-play.Assist students checking their grammar, suggesting alternate appropriate phrases and vocabulary.Allow students ample time to practice their role-play. If they can manage to memorize the role-play, the final performance will most likely be much more entertaining and instructive for all involved.Students perform thei r role-plays for the entire class.As a follow-up activity, ask students to choose one of the role-plays they were not involved in and write up a short summary of the conversation. Family Role-Plays Choose a role-play from one of the following scenarios. Write it up with your partner, and perform it for your classmates. Your writing will be checked for grammar, punctuation, spelling, etc., as will your participation, pronunciation, and interaction in the role-play. The role-play should last at least 2 minutes. You are a student at an English institute outside of your country. You’d like your parents to send you some more spending money. Telephone your father (your partner in the role-play) and ask for more money. Your father feels that you are spending too much money. Come to a compromise.You are visiting your cousin (your partner) whom you haven’t seen in a long time. Catch up on all the news from your two families, as well as from your own lives.You are a student who has improved at school, but your mother/father (your partner) doesn’t feel that you have done enough. Discuss together what you can do to improve your grades, but also recognize your increased efforts.You are the aunt/uncle of your partner. Your partner wants to ask you about what life was like with your brother (your partner’s father) when you were both teenagers. Have a discussion about the old times.You would like to get married to a man/woman your parents do not approve of. Have a discussion w ith your mother/father (your partner) about your plans. Try to break the news gently, while still maintaining your desire to get married.You are having a discussion with your husband/wife (your partner) about your son who is having problems at school. Accuse each other of not being a good parent, but try to come to a conclusion that will help your child.You are a technological wizard and have a new idea for a great startup on the internet. Try to convince your father to fund your business with a $100,000 loan. Your partner will be your father who is very skeptical about your idea because he thinks you should be a doctor.

Theology - 1156 Words

1) I agreed with Pope Paul that the world is sick. The sickness Pope Paul mentions is the disease of injustice. Injustice is seen in the those who face starvation, those without shelter, healthcare, those who are victims of war. The reading stated that injustice brings destruction and diminishment to millions and death to thousands. If those numbers continue in the future, I agree that it would be hard for the world to survive. It could be said that with this knowledge, its our job to make the world healthy again and help the many that are suffering. 2) Injustice is a failure of moral imagination because in order to move move from injustice to justice, we have to reimagine the world. The conversion to justice demands that we are†¦show more content†¦Interdependence suggests not only that we need and depend on one another, but also that the unity that exists between us is so penetrating and extensive that there is no way any one of us can exist apart from everyone else. 6) Christian theology of justice is the response to reimagining the world after the injustice of a failure of moral obligation. Christian theories about justice come from a story learned in the faith community of church and is found in the scriptures. In the scriptures, Christians not only hear, but are formed in stories of God who is passionate about justice, about the importance of doing justice for those who claim to know God, and especially passionate about justice to the poor and oppressed. This Bible reveals God as a lover of justice and a doer of justice. If Christians followed this theology in the marketplace, they would act as God and Jesus did in the Bible. As mentioned before, there would be a passionate for justice for everyone and especially the poor and oppressed. Perhaps we would be a more unified society and have a lesser amount of people who struggle with injustices. Perhaps there would be equal opportunity for everyone in the workplace and there would be less exploi tation for person gain at the expense of the common good for others. 7) The change of heart necessary for justice must go through people like a shock, reaching deep down into the direction their lives are taking, into their established systems of needs, andShow MoreRelated1. Overview Of The Theology Of The Pentateuch.. Theology1422 Words   |  6 PagesOverview of the Theology of the Pentateuch. Theology is the study of God, and further the Theology of the Pentateuch is defined as what is the Pentateuch teaching us about God today. The Pentateuch is another name for the Torah, which consists of the first five books of the Biblical canon. 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How is my life compared to living in the Dominican Republic Free Essays

Living in Jakarta is not that different than living in the Dominican Republic. For example, they both have similar geographic features, weather etc. Most people earn money in the same ways, and the types of homes people live in are probably the same. We will write a custom essay sample on How is my life compared to living in the Dominican Republic? or any similar topic only for you Order Now The Dominican Republic like Jakarta is situated around the north of the equator, making the weather hot and humid. This also means that both countries get convectional rain (a type of rain cycle, for countries around the equator). Since they are both situated near the equator, they have two main seasons, the rainy season and the dry season. The Geographic features in Jakarta are very similar to the geographic features in the Dominican Republic. Like Jakarta it has soaring Mountain Ranges and in places vast green fertile land and beautiful beaches. This influences the tourism rate for both of these countries, which means the pollution rate in both countries is very high. Due to this, both these countries are considered third world countries. Both these countries are in the ring of fire, meaning there are lots of volcanic eruptions. This influences people a lot, because they need to know what to do if a volcano explodes!!! Jakarta and the Dominican Republic, being both very poor countries, suffer from money problems. There are two main communities in these countries. Firstly the rich. These people have big, high up jobs, earn lots of money and live in big houses. The poor have small roadside stalls and live in mud houses and slums. They earn about 2months of the rich persons salary in one year. Both these countries are steadily growing, but help is needed for those who need help. The people who have no arms or legs, people with money issues etc. The roads in both these countries are of a poor standard. The big main roads have only a small amount of lanes, meaning that people drive on the line, meaning MASSIVE traffic jams. The smaller roads are full of pyholes, which is a massive danger to all motorcyclists, who like cutting the line. It can cause severe injuries or maybe even death. The drainage systems are extremely inefficient! Since these countries are next to the equator (this means they have two main seasons, the rainy season and the dry season) during the rainy season, roads would have floods, meaning people are stuck in traffic jams for 4-5 hours. The availability of water and electricity come in vast quantities to the rich. For the poor, they get electricity but it will go of or hours on end. This influences people because they have to get used to playing outside and entertaining themselves for the tome when there is no electricity. The water they get comes from the rain. That’s why on the roads many people pray that it rains. In Jakarta especially, people count on rice. They don’t consider it a meal, if there is no rice. In conclusion, both these countries have similar living styles, and are similar in many ways. Also both these countries, since they are poor need help, so they can thrive and live like most 1st world countries. How to cite How is my life compared to living in the Dominican Republic?, Essays

Pepsi Project Report Essay Example For Students

Pepsi Project Report Essay A SUMMER TRAINING PROJECT REPORT ON â€Å"ANALYSIS OF ANTI PEPSI BEHAVIOUR OF RETAIL OUTLETS† SUBMITED TOWARDS PARTIAL FULFILMENT OF POST GRADUATE DIPLOMA IN MANAGEMENT SUBMITTED BY- PRADEEP PANKAJ SINGH PGDM(2008-10) ENROLMENT NO-2029742128. FACULTY GUIDE INDUSTRY GUIDE MR. VISHAL AGGARWAL MR. RAVEND BIJLANI ASSOCIATE PROFESSOR C. E. SHUKLA SALES BLS INSTIUTE OF MANAGEMENT PEPSICO HOLDINGS INDIA LIMITED, LUCKNOW, BLS INSTITUTE OF MANAGEMENT Opposite Mohan Meakin Factory, Mohan Nagar, Ghaziabad. PREFACE The PGDM programme is well structured and integrated course of business studies. The main objective of practical training at PGDM level is to develop skill in student by supplement to the theoretical study of business management in general. Industrial training helps to gain real life knowledge about the industrial environment and business practices. The PGDM programme provides student with a fundamental knowledge of business and organizational functions and activities, as well as an exposure to strategic thinking of management. In every professional course, training is an important factor. Professors give us theoretical knowledge of various subjects in the college but we are practically exposed of such subjects when we get the training in the organization. It is only the training through which I come to know that what an industry is and how it works. I can learn about various departmental operations being performed in the industry, which would, in return, help me in the future when I will enter the practical field. Training is an integral part of PGDM and each and every student has to undergo the training for 2 months in a company and then prepare a project report on the same after the completion of training. During this whole training I got a lot of experience and came to know about the management practices in real that how it differs from those of theoretical knowledge and the practically in the real life. In today’s globalize world, where cutthroat competition is prevailing in the market, theoretical knowledge is not sufficient. Beside this one need to have practical knowledge, which would help an individual in his/her carrier activities and it is true that â€Å"Experience is the best teacher†. ACKNOWLEDGEMENT With immense pleasure, I would like to present this project report for Pepsico Holdings India Limited. It has been an enriching experience for me to undergo my summer training at PEPSI, which would not have possible without the goodwill and support of the people around. As a student of BLSIM I would like to express my sincere thanks too all those who helped me during my practical training programme. Words are insufficient to express my gratitude toward Mr. Ravend Bijlani, the Customer Executive of Shukla Sales, Lucknow, Mr. Vishal Aggarwal Project Guide and Mr. Kuldeep Kaul (Marketing Head of Department Of BLSIM) My heartfelt thanks go to all who helped me to gain knowledge about the actual working and the processes involved in various departments. However, I accept the sole responsibility for any possible error of omission and would be extremely grateful to the readers of this project report if they bring such mistakes to my notice. Thanking You Pradeep Pankaj Singh Enrollment No. 2029742128 DECLARATION I, Pradeep Pankaj Singh, do hereby declare that the summer internship project report submitted by me for the partial fulfillment of requirement for the Post Graduate Diploma in Management of BLS Institute of Management Ghaziabad. This has not been submitted to any other university/ institution for the reward of any degree/ diploma certificate. Pradeep Pankaj Singh INDEX | | | | |Sr. No. |Content |Page No. | | | | | |1. |Executive Summary |6 | | | | | |2. Objective of Summer Training |7 | | | | | |3. |Introduction of Project |8 | | | | | |4. History of Company |9-11 | | | | | |5. |Company Profile |11-41 | | | | | |6. Research Methodology |42-48 | | | | | |7. |Project Analysis |49-61 | | | | | |8. |Finding Suggestion |61-62 | | 9. Conclusion | 63 | | 10. | Questionnaire | 64 | | | | 65 | |11. |Bibliography | | EXECUTIVE SUMMARY I, Pradeep Pankaj Singh felt privileged to be a part of BLS Institute of Management Mohan Nagar, Ghaziabad. I did my summer internship training in Pepsico Holdings India Limited a FMCG sector company. My project title is â€Å"ANALYSIS OF ANTI PEPSI BEHAVIOUR OF RETAIL OUTLET†. The project’s basic objective is to analyzing the anti Pepsi behavior of retail outlets under the distributorship of Shukla Sales, sitapur road, lucknow. In this project I surveyed in areas of Shukla Sales and asked selected questions to the outlet owners who were either not selling pepsi products or selling in very less quantity. Out of my project I learnt these things: Pepsi should understand the expectations of people If one wants to grow in FMCG sector one should keep the following factors in mind that the products are easily available to the consumers, to improve the quality of products from time to time, competitive services should be provided to the retailers, the price of the product should be low and last but not the least the visibility and the promotional strategy should be such that it hits people’s mind. OBJECTIVE OF THE SUMMER TRAINING TOPIC : â€Å"Analysis of Anti Pepsi Behaviour of the Retail Outlets† During my summer training I have worked on the topic â€Å"Analysis of Anti Pepsi Behaviour of the Retail Outlets† In Pepsi Co India Holding Pvt. Ltd the work of Anti Pepsi Outlet Survey was given to me . I have done this survey keeping in mind the following objectives which I have mentioned below ? Study those outlets which are not promoting Pepsi products in the area covered in Shukla Sales, Lucknow ? To analyze the reasons of not selling Pepsi at retailers level. ? To study the retailers satisfaction. To find out the ways to enhance the sale of Pepsi. INTRODUCTION Beverage industry is one of the fast growing industries in India .it can be divided into two sections i. e. carbonated and non-carbonated. the carbonated drinks that can be further classified into cola, lemon orange, mango and apple segments. Marketing includes all the activities like promotion, distribution, advertising etc. To fulfill all the segments of consumers. Marketing is also to convert social needs into profitable opportunities. So this topic provides all the essentials to theoretical knowledge with practical knowledge and to inculcate the efficiency. t is also requirement for the company to improve their service and product quality for achieving their ultimate goal. As far as the soft drink market is concerned, it is facing the cut throat competition because of the availability of a large number of indirect as well as direct competitors. Single company offers the soft drink to the market in different taste and flavors. In this industry entire range of flavors are produced by other competitors also. More often it becomes impossible to differentiate between the same flavors of two different brands, when served in plane container, range also. All these factors together make the situation complicated. besides both corresponding brands have the similar price. COMPANY’S HISTORY BEVERAGES Pepsi Cola Company Caleb Bradham, a New Bern, N. C. druggist who first formulated Pepsi-cola, founded Pepsi Co. ’s beverage business at the turn of the century i. e. in the year 1890. A young phannacist Called Bradham began experimenting in 1890 as a cure for dyspepsia (indigestion) with combination of spices, 1 juices and syrups and created a refreshing new drink to serve his customer. He succeeded beyond all expectations as he invented the new beverage now known around the world as PEPSICOLE In 1902, he launched the Pepsi Cola Company in the back room of pharmacy, and applied to U. S. patient office for Trade Mark. The business began to grow and on June 16,1993, Pepsi-Cola trademark was officially registered with U. S. office. Bradham believed marketing would e the key to PEPSI-COLA prosperity and in his first year of business he spent $1900 on advertising when he sold 40,000 liters of syrup. In 1905 he built Pepsi fits bottling plant. Three more plants followed soon and in 1907, he was selling 50,000 liters year. Troubles started at the end of the First World War when Bradham over stocked sugar at high price, which subsequently dipped in 1920. By 1922, the company was insolvent by 1923, it went bankrupt and Bradham returned to pharmacy. In 1931, the company went bankrupt for the second time. At this time charless Groth, president of a giant candy company both the trademark. His success came when he offered a 12-ounce bottle at 5 cent while other colas were sold at the same price in 6 ounce bottles. In 1936, Pepsi has a $2 million net profit. Today consumers spend about $31 billion on Pepsi-Cola beverages. Brand Pepsi and other Pepsi-Cola products-including Diet Pepsi, 7UP Pepsi Blue, Mountain Dew, slice and Mugvrands- Account for nearly one third of total soft drink sales in the United States, a consumer marker totaling about $56 billion. In 1992 Pepsi-Cola formed a partnership with Thomas J. Liption Co. Today Liption is the biggest selling ready to drink tea brand in the United States. Outside the United States, Pepsi-Cola Companys soft drink operations include the business of even- up International; Pepsi-Cola beverages are available in about 170 countries. Pepsi-Cola began selling it products internationally in 1934 with its operations in Canada. Operations grew rapidly beginning in the 1950s. Today Pepsi-Cola products account for about a quarter of all soft drinks sold internationally. In addition to brands marketed in the United States, Major products include Mirinda and Pepsi Max. Pepsi-Cola provides advertising, marketing, sales and promotional support to Pepsi-Cola bottles and food service customers. This includes some of the world loved and most recognized advertising. New advertising and exciting promotions keep Pepsi-Cola brands young. In 1940, history was made when the first advertising jingle was broadcast nationally. The jingle was Nickel Nickel an advertisement for Pepsi Cola that referred to the price of Pepsi and the quantity for that price. Nickel Nickel became a hit record and was recorded into fifty-five languages. In 1964, Diet Pepsi was introduced. THE BUSINESS PepsiCo. Has a worldwide operation in 3 fields ? Non Alcoholic beverage ? Snack Foods. ? Fruit Juices Pepsi company profile PepsiCo is a world leader in convenient snacks, foods and beverages, with revenues of more than $39 billion and over 185,000 employees. PepsiCo is a world leader in convenient snacks, foods and beverages, with revenues of more than $39 billion and over 185,000 employees. The company consists of PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB) and PepsiCo International (PI). PAF includes Frito-Lay North America, Quaker Foods North America and all Latin America food and snack businesses, including Sabritas and Gamesa businesses in Mexico. PAB includes PepsiCo Beverages North America and all Latin American beverage businesses. PI includes all PepsiCo businesses in the United Kingdom, Europe, Asia, Middle East and Africa. PepsiCo brands are available in nearly 200 countries and generate sales at the retail level of more than $98 billion. Some of PepsiCos brand names are more than 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001. PepsiCo offers product choices to meet a broad variety of needs and preference from fun-for-you items to product choices that contribute to healthier lifestyles. PepsiCo’s mission is â€Å"To be the worlds 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. † Shareholders PepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange in the United States. The company is also listed on the Chicago and Swiss stock exchanges. PepsiCo has consistently paid cash dividends since the corporation was founded. Corporate Citizenship At PepsiCo, we believe that as a corporate citizen, we have a responsibility to contribute to the quality of life in our communities. This philosophy is expressed in our sustainability vision which states: â€Å"PepsiCo’s responsibility is to continually improve all aspects of the world in which we operate – environment, social, economic creating a better tomorrow than today. † Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company. PepsiCo Headquarters PepsiCo World Headquarters is located in Purchase, New York, approximately 45 minutes from New York City. The seven-building headquarters complex was designed by Edward Durrell Stone, one of Americas foremost architects. The building occupies 10 acres of a 144-acre complex that includes the Donald M. Kendall Sculpture Gardens, a world- acclaimed sculpture collection in a garden setting. The collection of works is focused on major twentieth century art, and features works by masters such s Auguste Rodin, Henri Laurens, Henry Moore, Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenberg. The gardens originally were designed by the world famous garden planner, Russell Page, and have been extended by Francois Goffinet. The grounds are open to the public, and a visitors booth is in operation during the spring and summer. PEPSICO BEVERAGES NORTH AMERICA (PBNA) PepsiCo’s beverage business was founded 1898 by Caleb Bradham, a New Bern, North Carolina druggist, who first formulated Pepsi-Cola. Today, Brand Pepsi is part of a portfolio of beverage brands that includes carbonated soft drinks, juices and juice drinks, ready-to-drink teas and coffee drinks, isotonic sports drinks, bottled water and enhanced waters. PBNA has well known brand such as Mountain Dew, Diet Pepsi, Gatorade, Tropicana Pure Premium, Aquafina water, Sierra Mist, Mug, Tropicana juice drinks, Propel, SoBe, Slice, Dole, Tropicana Twister and Tropicana Season’s Best. PBNA manufactures and sells concentrate for some of these brands to licensed bottlers, who sell the branded products to independent distributors and retailers. PBNA provides advertising, marketing, sales and promotional support for its brands. This includes some of the worlds best-loved and most-recognized advertising. In 1992 PBNA formed a partnership with Thomas J. Lipton Co. to selling ready-to-drink tea brands in the United States. Pepsi-Cola also markets Frappuccino ready-to-drink coffee through a partnership with Starbucks. Tropicana was founded in 1947 by Anthony Rossi as a Florida fruit packaging business. In 1954 Rossi pioneered a pasteurization process for orange juice. For the first time, consumers could enjoy the fresh taste of pure not-from-concentrate 100% Florida orange juice in a ready-to-serve package. The juice, Tropicana Pure Premium, became the company’s flagship product. PepsiCo acquired Tropicana, including the Dole juice business, in August 1998. SoBe became a part of PBNA in 2001. SoBe manufactures and markets an innovative line of beverages including fruit blends, energy drinks, dairy-based drinks, exotic teas and other beverages with herbal ingredients. Gatorade thirst quencher sport drinks was acquired by The Quaker Oats Company in 1983 and became a part of PepsiCo with the merger in 001. Gatorade is the first isotonic sports drink. Created in 1965 by researchers at the University of Florida for the schools football team, The Gators, Gatorade is now the worlds leading sports drink. PepsiCo Beverages North America includes the United States and Canada. LATIN AMERICA BEVERAGES The Latin Americas Beverage business features a pow erful suite of powerhouse brands and distinct products tailored for the market. Gatorade outsells the nearest competitor more than five to one and, in Sao Paulo7UP H2Oh! a lightly carbonated, is dominating the competition in its lead market. PepsiCo Americas Foods FRITO-LAY NORTH AMERICA PepsiCos snack food operations had their start in 1932 when two separate events took place. In San Antonio, Texas, Elmer Doolin bought the recipe for an unknown food product – a corn chip – and started an entirely new industry. The product was Fritos brand corn chips, and his firm became the Frito Company. That same year in Nashville, Tennessee, Herman W. Lay started a business distributing potato chips. Mr. Lay later bought the company that supplied him with product and changed its name to H. W. Lay Company. The Frito Company and H. W. Lay Company merged in 1961 to become Frito-Lay, Inc. Major Frito-Lay products include Lay’s potato chips, Doritos flavored tortilla chips, Tostitos tortilla chips, Cheetos cheese flavored snacks, Fritos corn chips, Ruffles potato chips, Rold Gold pretzels, Sun Chips multigrain snacks, Munchies snack mix, Lay’s Stax potato crisps, Cracker Jack candy coated popcorn and Go Snacks. Frito-Lay also sells a variety of branded dips, Quaker Fruit Oatmeal bars, Quaker Quakes corn and rice snacks, Grandma’s cookies, nuts and crackers. Frito-Lay North America includes Canada and the United States QUAKER FOODS NORTH AMERICA The Quaker Oats Company was formed in 1901 when several American pioneers in oat milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour and William Heston had established the Quaker Mill Company. The figure of a man in Quaker clothes became the first registered trademark for breakfast cereal and remains the hallmark for Quaker Oats today. In Cedar Rapids, Iowa, John Stuart and his son, Robert, and their partner, George Douglas, operated the largest cereal mill of the time. Ferdinand Schumacher, known as The Oatmeal King, had founded German Mills American Oatmeal Company in 1856. Combining The Quaker Mill Company with the Stuart and Schumacher businesses brought together the top oats milling expertise in the country as The Quaker Oats Company. The first major acquisition of the company was Aunt Jemima Mills Company in 1926, which is today the leading manufacturer of pancake mixes and syrup. Gatorade was acquired in 1983. In 1986, The Quaker Oats Company acquired the Golden Grain Company, producers of Rice-A-Roni. PepsiCo merged with The Quaker Oats Company in 2001. LATIN AMERICA BEVERAGES The Latin Americas Foods business includes operations in Brazil, Argentina, Colombia, Peru and Venezuela. This business continues to grow organically and through acquisitions like the Lucky snacks business in Brazil. PEPSICO INTERNATIONAL PepsiCo International includes all PepsiCo businesses in the United Kingdom, Europe, Asia, Middle East and Africa. Pepsi-Cola began selling its products outside the United States and Canada in the mid-1930s, opening in the United Kingdom in 1936. Operations grew rapidly beginning in the 1950s. Today, PepsiCo beverages are available in more than 170 countries and territories. Brands include Aquafina, Gatorade and Tropicana. In addition to brands marketed in the United States, PepsiCo International brands include Mirinda, Seven-Up and many local brands. PepsiCo began its international snack food operations in 1966. Today, products are available in nearly 170 countries. Often PepsiCo snack food products are known by local names. These names include Gamesa and Sabritas in Mexico, Walkers in the United Kingdom, Simths in Australia, Matutano in Spain, Elma Chips in Brazil, and others. The company markets Frito-Lay brands on a global level, and introduces unique products for local tastes. PepsiCo. Has a worldwide operation in 3 fields ? Non Alcoholic beverage ? Snack Foods. ? Fruit Juices PepsiCo India Holdings Private Limited PepsiCo, the world leader in convenient foods and beverages, welcomes you to a community of over 157,000 employees spread over more than 200 countries and territories across the globe with annual revenues in excess of $33 billion. As part of its sustainable development initiatives, PepsiCo India has been a committed leader in the promotion of rain water harvesting, water conservation recycling and the reduction of effluent discharge. My Granny EssayThey have been formulated to ensure that we attain our core value of diversity as a competitive advantage. ? Dedicated executives for managing diversity within our operating divisions. ? Multi-year strategic plans for diversity are developed with the same vigor and goal setting process as other business issues. Goals include diverse recruitment, improved retention and fostering a more inclusive culture. ? External Diversity Advisory Boards consisting of educators, politicians, practitioners and customers to advise PepsiCo senior management on a variety of issues relating to diverse audiences. Annual employee performance reviews incorporating inclusion-related goals for all managers. ? Mandatory annual Affirmative Action Planning process. ? Bi-annual organizational health survey incorporating diversity questions and requiring analysis at the minority and female level. Senior management is held accountable for results. ? Corporate-sponsored multi-level program for tra ining employees to work and manage in an inclusive environment. ? Employee networks to mentor and support diverse employees. SUSTAINABLE ADVANTAGE Three major sustainable advantages give PepsiCo a competitive edge as we operate in the global marketplace. Three major sustainable advantages give PepsiCo a competitive edge as we operate in the global marketplace: 1. Big, muscular brands; 2. Proven ability to innovate and create differentiated products; and 3. Powerful go-to-market systems. Making it all work are our extraordinarily talented and dedicated people. When we take these competitive advantages and invest in them with dollars generated from top-line growth and cost-saving initiatives, we sustain a value cycle for our shareholders. In essence, investing in innovation fuels the building of our brands. This in turn drives top-line growth. Dollars from that top-line growth are strategically reinvested back into new products and other innovation, along with cost-savings projects. Thus, the cycle continues. Indra Nooyi is Chairman and Chief Executive Officer of PepsiCo. Mrs. Nooyi leads one of the world’s largest convenient food and beverage companies, with 2007 annual revenues of more than $39 billion. The company operates in nearly 200 countries, and employs more than 185,000 people worldwide. Its principal businesses include: Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. The PepsiCo portfolio includes 18 brands that generate $1 billion or more each in annualretailsales. PepsiCo’s commitment to sustainable growth, defined by Mrs. Nooyi as Performance with Purpose is focused on generating healthy financial returns while giving back to communities the company serves. This includes meeting consumer needs for a spectrum of convenient foods and beverages, replenishing the environment through water, energy and packaging initiatives, and supporting its employees through a diverse and inclusive environment that recruits and retains world-class talent. The company is listed on the Dow Jones North America Sustainability Index. Mrs. Nooyi was named President and CEO on October 1, 2006, and assumed the role of Chairman on May 2, 2007. She has directed the companys global strategy for over a decade and was the primary architect of PepsiCos restructuring, including the divestiture of its restaurants into the successful YUM! Brands, Inc. , the spin-off and public offering of company-owned bottling operations into anchor bottler Pepsi Bottling Group (PBG), acquiring Tropicana, and the merger with Quaker Oats that brought the vital Quaker and Gatorade businesses to PepsiCo. Recently, she has been driving critical cross-business initiatives to enhance operations and enable PepsiCo to meet the changing needs of consumers and retailers. Prior to becoming CEO, Mrs. Nooyi served as President and Chief Financial Officer since 2001, when she was also named to PepsiCos board of directors. In this position, she was responsible for PepsiCo’s corporate functions, including finance, strategy, business process optimization, corporate platforms and innovation, procurement, investor relations and information technology. Between February 2000 and April 2001, Mrs. Nooyi was Senior Vice President and Chief Financial Officer of PepsiCo. Between 1996 and 1999, Mrs. Nooyi was Senior Vice President of Corporate Strategy and Development. Before joining PepsiCo in 1994, Mrs. Nooyi spent four years as Senior Vice President of Strategy, and Strategic Marketing for Asea Brown Boveri. She was part of the top management team responsible for the companys U. S. business as well as its worldwide industrial businesses, generating about one-third of ABBs $30 billion in global sales. Between 1986 and 1990, Mrs. Nooyi worked for Motorola, where she was Vice President and Director of Corporate Strategy and Planning, having joined the company in 1986 as the business development executive for its automotive and industrial electronic group. Prior to Motorola, she spent six years directing international corporate strategy projects at the Boston Consulting Group. Her clients ranged from textiles and consumer goods companies to retailers and specialty chemicals producers. Mrs. Nooyi began her career in India, where she held product manager positions at Johnson Johnson and at Mettur Beardsell, Ltd. a textile firm. In addition to being a member of the PepsiCo board of directors, Mrs. Nooyi serves as a member of the boards of the Federal Reserve Bank of New York, the International Rescue Committee and Lincoln Center for the Performing Arts in New York City. She is a Successor Fellow of Yale Corporation, member of the Board of Trustees of Eisenhower Fellowships, a member of the Executive Committee of the Trilateral Commission and currently serves as Chairman of the US-India Business Council. She holds a BS from Madras Christian College in Madras, an MBA from the Indian Institute of Management in Calcutta and a Master of Public and Private Management from Yale University. Mrs. Nooyi is married and has two daughters. 27-April-08 Massimo F. d’Amore was named Chief Executive Officer of PepsiCo Americas Beverages in November 2007. PepsiCo Americas Beverages has a beverage portfolio including Pepsi-Cola North America, Gatorade, Tropicana, all of PepsiCo’s Latin American beverage businesses, and its North America PepsiCo Food Service division. Previously, Mr. ’Amore was Executive Vice President Commercial for PepsiCo International, a position he assumed in November, 2005, after serving as President, Latin America Region for 4 years and SVP, Corporate Strategy Development for PepsiCo for 2 years. Mr. d’Amore was also Senior Vice President and Chief Marketing Officer for Pepsi-Cola International (PCI), a position he assumed in 1998 and Business Unit G eneral Manager (BUGM), Turkey/Central Asia since 1999. Prior to PepsiCo, Mr. d’Amore had a 15-year international career with Procter Gamble in Operations, Marketing and General Management in Europe and North Africa. Mr. d’Amore is a native of Italy and an engineering graduate from the Swiss Polytechnic Institute in Lausanne, where he also earned a Master of Science Degree. He has lived in Italy, Switzerland, Germany, Belgium, Morocco, France and for the last 13 years in the U. S. He is fluent in English, Italian and French; and has a working command of Spanish and German. He has three children and resides in Westchester. PepsiCo is one of the world’s largest convenient food and beverage companies, with 2007 revenues of more than $39 billion. The company operates in nearly 200 countries, and employs more than 185,000 people worldwide. The PepsiCo portfolio includes 18 brands that generate $1 billion or more each in annual retail sales. PepsiCo India’s commitment to Performance with Purpose Performance with Purpose articulates PepsiCo Indias belief that its businesses are intrinsically connected to the community and world that surrounds it. Performance with Purpose is about delivering more than financial performance, it’s about staying committed to continuously giving back to the community and helping enrich society. To deliver on this commitment, PepsiCo continues to build on its strong foundation of achievements and scale up its initiatives while focusing on the following 4 critical areas that are linked to its business and where it can have the most impact. Replenishing water PepsiCo India continues to replenish water and aims to achieve positive water balance by 2009, which means it is committed to saving and recharging more water than it uses in its beverage plants Waste to Wealth PepsiCo India continues to  convert Waste to Wealth, to make cities cleaner. This award winning initiative has   established Zero Solid Waste centres that benefit more than 2,00,000 community members throughout the country Partnership with Farmers PepsiCo India’s Agri-partnerships with farmers help more than 15,000 farmers across the country earn more Healthy Kids PepsiCo India   stays committed to the health and well-being of kids. It will continue to provide children with a diverse, healthful and fun portfolio, while simultaneously encouraging active lifestyle by expanding its Get Active programme for kids, especially for school going children . THE INDIAN SOFT DRINK HISTORY Gold Spot is considered as the first branded soft drink in India it was introduced by Parle in early forties. Coca-Cola was the foreign soft drink to be introduced in Indian markets. The Coca-Cola Company entered India in the early fifties, when four bottling plants were set up at Mumbai, Kolkotta, Delhi, and Kanpur. Coca-Cola enjoyed a good beginning and dominated the market. Parle exports private limited, the major domestic player, and later in 1970 introduced â€Å"Limca† lemon soft drink. Before Limca’s they had attentively introduced â€Å"cola Pepino† which was soon withdrawn from the market following the confrontation with Coca- Cola. In July 1977 Coca-Cola left India following a public dispute over shareholding Structure and imports permits. Coca-Cola left a big gap, which was filled by several companies who came forward pushing different brands in market. Parle Products introduced their Cola â€Å"Thumps Up†, pure drinks introduced â€Å"Double Seven† â€Å"Thrill†, â€Å"Rush†, â€Å"Sprint†. At the same time various regional soft brands played an independent role in their respective territories like â€Å"Duke†, â€Å"mangola†. After coke was asked to leave India Pepsi began to lay plans to enter this huge market. Pepsi started its operations in April 1989 for beverages snack foods and export business. In 1990 first Pepsi Cola was produced in India. In the next year 1991, production of Mirinda and 7up started, the production of Slice Teem, Fountain Pepsi started in 1993. Coca-Cola came back again in India in October 1993 and was launched in Agra. It joined hands with Parle Exports Pvt. Ltd. To enter India and gradually took over the same company. The nineties also saw a new foreign entrant Cadbury Schweppes that rolled out Canada dry and Crush in metropolitan cities. Pepsi entered the cloudy lemon market category by launching its Mirinda lemon in 1998. In May 1999 a notification, presented the prevention of food adulteration (fourth amendment) Rules 1999, allowed the use of the artificial Sweeteners, aspartame and acesulfame potassium in The formulation of soft drinks-which was what made the entry of Diet Pepsi and Diet Coke. Coca-Cola also rolled out its popular clear lemon drink Sprite in India in the same year 1999. Soft drinks can trace their history back to the mineral water found in springs. Soft drinks can trace their history back to the mineral water found in natural springs. Bathing in natural springs has long been considered a healthy thing to do; and mineral water was said to have curative powers. Scientists soon discovered that gas carbonium or carbon dioxide was behind the bubbles in natural mineral water. The first marketed soft drinks (non-carbonated) appeared in the 17th century. They were made from water and lemon juice sweetened with honey. In 1676, the Compagnie de Limonadiers of Paris were granted a monopoly for the sale of lemonade soft drinks. Vendors would carry tanks of lemonade on their backs and dispensed cups of the soft drink to thirsty Parisians. Joseph Priestley In 1767, the first drinkable man-made glass of carbonated water was created by Englishmen Doctor Joseph Priestley. Three years later, Swedish chemist Torbern Bergman invented a generating apparatus that made carbonated water from chalk by the use of sulfuric acid. Bergmans apparatus allowed imitation mineral water to be produced in large amounts. John Mathews In 1810, the first United States patent was issued for the means of mass manufacture of imitation mineral waters to Simons and Rundell of Charleston, South Carolina. However, carbonated beverages did not achieve great popularity in America until 1832, when John Mathews invented his apparatus for the making carbonated water. John Mathews then mass-manufactured his apparatus for sale to soda fountain owners. Health Properties of Mineral Water The drinking of either natural or artificial mineral water was considered a healthy practice. The American pharmacists selling mineral waters began to add medicinal and flavorful herbs to unflavored mineral water. They used birch bark, dandelion, sarsaparilla, and fruit extracts. Some historians consider that the first flavored carbonated soft drink was that made in 1807 by Doctor Philip Syng Physick of Philadelphia. Early American pharmacies with soda fountains became a popular part of culture. The customers soon wanted to take their health drinks home with them and a soft drink bottling industry grew from consumer demand. The Soft Drink Bottling Industry Over 1,500 U. S. patents were filed for either a cork, cap, or lid for the carbonated drink bottle tops during the early days of the bottling industry. Carbonated drink bottles are under a lot of pressure from the gas. Inventors were trying to find the best way to prevent the carbon dioxide or bubbles from escaping. In 1892, the Crown Cork Bottle Seal was patented by William Painter, a Baltimore machine shop operator. It was the first very successful method of keeping the bubbles in the bottle. Automatic Production of Glass Bottles In 1899, the first patent was issued for a glass-blowing machine for the automatic production of glass bottles. Earlier glass bottles had all been hand-blown. Four years later, the new bottle-blowing machine was in operation. It was first operated by the inventor, Michael Owens, an employee of Libby Glass Company. Within a few years, glass bottle production increased from 1,500 bottles a day to 57,000 bottles a day. Ninety years after the invention of what become one of the most favored drinks globally in 1988. Pepsi entered India flanged with heavy resources and riding the winds of change of a newly opened economy. First, Pepsi has only franchise unit. Pepsi gave his concentrate to small factory and they make beverage. In 1988, Pepsi set up its offices in India. In this company Pepsi operates as PEPSI Foods Pepsi Co. India Holdings and Pepsi India marketing. The mission was to change the tastes and life style of a common Indian, who identified soft drinks and beverages as a few available cold drinks, squashes and concentrates. When it came to a refreshing drink conservative consumers would back to traditional nimboo pani, jaljeeram lassi etc. Although India has a per capita consumption as low as 3 per person as compared to 400 in USm India has one of the largest number of potential consumers in a world with a population of an arab, Every Indian guzzles 27 bottles of soft drink every year, an increase of one bottle per capita consumption would mean stating 900 bottles extra. India soft drink is of worth RS. 1800 crores with annual growth at the rate of20% to 25%. All the activities of Pepsi Foods Pepsi Co, India Holdings and Pepsi India Marketing Company are controlled by business Unit (BU) located at GURGAON. This BU is divided into various marketing units (MUs). All except the North and Market Units have common borders with states comprising them. The market units demarcate the areas, which are Coboised i. e. Have Company owned bottling operations(COBO). In these units there are company owned bottling plants while in other areas the operations are run by a franchisee these areas are referred to as Fanchisee Owned Bottling Operations (FOBOS) and some and in some others Joint Venture operate. COBO In the COBO, the company has total control of the decisions and implementations undertaken, but for this the company has to invest its own money. FOBO The FOBO’S are independent to take their own marketing and operational decisions with no major interference form the company. The FOBOs are supplied the concentrate from the company and they have to run the show, there after. Pepsi maintains ownership of the trademarks and is primarily responsible for ownership in a local bottling operation. This helps Pepsi maintain strong trademark on the other partys resource and expertise. The PCI workflow concentrates on Selling, Making and Delivering Pepsi- Cola. Pepsi -Cola is a company with a Low margin, high volume business Pepsi Co. deals in the carbonated Soft Drinks (CSDs) Market. CSDs fall in two categories-Cola and flavors. Coals concentrate on Pepsi whereas flavors deal with orange and Lemon. In India the flavors are Mirinda Orange and Lime. Slice is a fruit Juice concentrate based Drink. Starting out in 1989, with that name of Lehar Pepsi, the company has grown leaps and bounds ever since with competition increasing with reentry of coke a few years ago. Thanks to an early lead and a better understanding of the market, India remains amounts the handful of markets worldwide where Pepsi is ahead of its archival Coke. Despite being the global Pepsi has build its success on meeting out the Indian customers needs. Pepsi has made its brand synchronize with localized events and traditions. Pepsi maintained its top of mind awareness with roadside signage and reminders. The partner type relationship with bottles, FOBOs as well as COBOs cover most of the company adequacy. One of the strongest weapons in Pepsis armory is the flexibility it has empowered its people with. Ht Pepsi every employee, may be a manager of a salesman, have an authority to take whatever steps he or she feels will make the consumers aware of the brand and increase its consumption. Thus Pepsi believed in establishing and nurturing creditability of the salesman and making the joint commitment to grow business in accounts, All these factors together led to a high froth in the Indian market and constantly increasing market share. Product wise comparison of Pepsi with competitor Coca-Cola †¢ Pepsi Coke, Thumps Up †¢ Pepsi Aha †¢ Mirinda ( orange+lemon+apple) Fanta(orange),Limca Teem Soda †¢ Slice Maaja †¢ 7UP Sprite †¢ Mountain dew Kinley(soda) †¢ Diet Pepsi Diet Coke †¢ Aquafina(mineral water) Kinley (mineral water) Distribution Channel and strategies â€Å"Marketing channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption† Philip Kotler Distribution (Pl ace) Strategies Product availability where and when customers want them. ? Involves all activities from raw materials to finished products Basic Channels of Distribution Distribution Objective ? Minimize total distribution costs for a given service output ? Determine the target segments and the best channels for each segment ? Objectives may vary with product characteristics ? e. g. perishables, bulky products, non-standard items, products requiring installation maintenance DISTRIBUTION CHANNELS (Pepsi) There are two marketing channels that involve in the transfer of product from the producer to the consumer. The intermediaries involved in the transfer are distributors and retailers. DISTRIBUTORS Distributors are appointed agents of the company who make orders to the company by paying in advance through drafts, stock the products in their godowns and supply them to outlets through their fleet of delivery was and a team of salesmen a