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PepsiCo & Coke Comparative Study
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PepsiCo & Coke Comparative Study

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PepsiCo & Coke Comparative Study Presentation Transcript

  • 1. Brand Comparison Strategy between Pepsi and Coke GROUP # 2 Karan Bhagatwala : Roll No. 09 Aishwarya Bhavsar : Roll No. 11 Harshit Bhinde : Roll No. 12 Varun Gheewala : Roll No. 33 Sheetal Jangid : Roll No. 47
  • 2. Soft drink Industry in India – An Overview 1. A 50 Billion Rs industry, growing at 6%-7% annually. 2. It employs around 1,25,000 people. 3. Supports growth of industries like glass, refrigeration, transportation, paper and sugar. 4. Industry contributes over Rs 12 billion to the exchequer and exports goods worth Rs 2 billion. 5. 91% soft drink sales are made to the lower, middle and upper middle classes. Region wise Sales in India Area wise Sales in India South North Rural 26% 24% 30% West Urban 32% East 70% 18%
  • 3. Industrial Feasibility1. Market Growth Rates: – 2001-02 - 2006-07 : 6.5% – 2004-05 - 2009-10 : 5.4% – 2009-10 - 2014-15 : 4.5%2. Changing Retail Scenario in India helping the Soft drink players to push their brands.3. Increased Availability and strong distribution network.4. Favorable Population demographics of India.5. Rising consumer focus on health and wellness leading to demand for health drinks.6. Untapped Rural Market.
  • 4. Top brands in the Indian Market Market ShareOverall Market Share: 17%1. Pepsi Brands: 37% Thums Up 42% Sprite2. Coke Brands: 60% 17% Pepsi3. Others: 3% Coke 15% Other Brands 9% Brand Trust Report Results - 20101. Pepsi was ranked 36 / 3002. Coca – Cola was ranked 60 / 300
  • 5. Comparison between Pepsi & CokeSr. No. Pepsi Coca - Cola 1 Brand Image: Brand Image: 1. Sporty 1. Refreshing 2. Youth Centric 2. Family friendly 3. Fashionable & “In” with society 3. Happiness & Well-being 2 Frequently changing logos Frequently changing slogans 3 Focusing on becoming a F & B Focusing on Beverages only company
  • 6. SWOT Analysis Strength Weakness Opportunity Threat• Established • Overdepende • New product • Decline In name nce on US easy carbonated• Branding markets penetration drinks(Substi-• Diversification • Low • Broadening of tutes)• Vast productivity product base • Intense distribution • Targets only • International competition channel young expansion • Potential customers for • Growing disruption promotions savory snack due to labour • Competitor and bottled unrest Coca Cola- water • Rising cost in more market raw materials share and travel expenses
  • 7. PESTL Analysis • Regulated by FDA. Political • Effect of inflation. • Restructure sales and marketing. Economic • Downsizing. • Remain in line with cultures. Social • Global Brand. • Social media. Technological • Helps to introduce new product. • Accused of contaminated water. Legal • Product testing cost. Sustainable Competitive Advantage1. Strong Research and Innovation.2. Brand Equity & Corporate Reputation.3. High volume production.4. Effective manufacturing and distribution systems.
  • 8. Key Concerns & MethodologiesConcern: Loopholes in Supply Chain: Lack of control over distributors & inadequacy in monitoring company owned godowns.Cure: Revamping the supply chain and enforcing strict control over distributors and company owned godowns with surprise audits & software based control.Concern: Prevalence of traces of pesticides in Pepsi in India.Cure: Invest in bringing in the technology used internationally to India before India enforces stringent standards.
  • 9. How to increase sales by 10%Strategy 1: CSR Initiative. For every PepsiCo product sold, PepsiCo will donate 1% of the MRP to ‘Make A Wish Foundation’ or ‘CRY’ or any other NGO working for the underprivileged.Strategy 2: Festive Offer. Run a campaign during the end of October wherein customer can win a chance to celebrate Diwali with Ranbir Kapoor who is the current brand ambassador.Strategy 3: Price Reduction. Reduce the price & earn on basis of volume of sales.
  • 10. Net Revenues – 5 Year Analysis All statistics are in Million DollarsPARTICULARS 2011 2010 2009 2008 2007 FLNA 13,322 12,573 13,224 12,507 11,586 QFNA 2,656 2,656 1,884 1,902 1,860 LAF 7,156 6,315 5,703 5,895 4,872 PAB 22,418 20,401 10,116 10,937 11,070 EUROPE 13,560 9,602 6,727 6,891 5,896 AMEA 7,392 6,291 5,578 5,119 4,170 TOTAL 66,504 57,838 43,232 43,251 39,474
  • 11. Operating Profit – 5 Year Analysis All statistics are in Million DollarsPARTICULARS 2011 2010 2009 2008 2007 FLNA 3,621 3,376 3,105 2,959 2,845 QFNA 797 741 781 582 568 LAF 1,078 1,004 904 897 714 PAB 3,273 2,776 2,172 2,026 2,487 EUROPE 1,210 1,054 948 910 855 AMEA 887 708 700 592 466 TOTAL 10,886 9,659 8,610 6,959 7,182
  • 12. The Way Forward1. Focus on Bottling & Logistics operations.2. Pepsico should introduce an arena of products present in other global markets.3. Maintain the stock price.4. Overemphasis on “Good For You” products is not financially beneficial.5. Maintain the global position.