Competative study between coke vs. pepsi


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Competative study between coke vs. pepsi

  1. 1. SUMMER INTERNSHIP RESEARCH PROJECT ON “COMPETITIVE STUDY BETWEEN LEADING BRAND COKE V/S PEPSI” SUBMITTED TO GLA UNIVERSITY, MATHURA Towards Partial Fulfillment of Requirement for Masters in Business Administration DegreePROJECT GUIDE: SUBMITTED BY:Mr. DARSHAN SAXENA SALIL KUMAR SHARMATraining Manager MBA 2nd yearAgra sales & marketing services pvt. Ltd. GLA University, MATHURAAgra 1
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  6. 6. PREFACEMarket provides a key to gain actual success only to those brands which match bestto the current environment i.e." imperative" which can be delivered what are thepeople needs and they are ready to buy at the right time without any delay. It isperfectly true but this also depends on availability of good quality products andexcellent taste and services which further attract and add a golden opportunity forhuge sales.This also depends on the good planning approach and provide ample opportunityplus sufficient amount of products for sales in the coming next financial year.This survey report introduces study of consumer‘s preferences for COLA drinks. Aftergoing through a detail analysis of market behavior and future prospect, it may alsoprovide an opportunity to COCA COLA to frame a good future plan to satisfymaximum needs of the customers and established its guiding role in the market ofAgra city in particular and throughout the country as a whole. The study report willalso provide an opportunity to delineate its market potential business areas, products&services are to be offered by the company to the customers.This study report also provides the various factors affecting the services. MarketingDivision of COCA COLA has to keep in mind various factors specially while preparinga plan for marketing its product or services. Detail description along with analysis ofsurveyed data is being presented in this report. 6
  7. 7. ACKNOWLEDGEMENTApart from the efforts of me, the success of this project depends largely on theencouragement and guidelines of many others. I take this opportunity to express mygratitude to the people who have been instrumental in the successful completion of thisproject.I express my heartily respect and profound thanks to Mr. DARSHAN SAXENA TrainingManager Agra Sales & Marketing Services Pvt. Ltd for their enlightening andmeticulous guidance for the consummation and evaluating of this project.I am also very thank full to Mr. Aniil Kumar Singh Sir (HOD) Who was in the role of myGuide , left no stone unturned in guiding me along the course of my summer TrainingProject work.Finally, I give Special thanks to Mr. Utkal Khandelval Sir who gives their valuablesuggestion and guideline regarding summer training and project report and all my friendsfor their cooperation. SALIL KUMAR SHARMA 7
  8. 8. DECLARATIONI Salil Kumar Sharma declare that this project report titled “COMPETITIVE STUDYBETWEEN LEADING BRAND COKE V/S PEPSI” is an original work done by me underthe guidance of Mr. Darshan Saxena (Training manager) AGRA SALES & MARKETINGSERVICES PVT. LTD. . I further declare that it is my original work as a part of myacademic course. SALIL KUMAR SHARMA 8
  12. 12. INTRODUCTION1. INTRODUCTION1.1 INTRODUCTION ABOUT TOPICIn the modern culture consumption of soft drinks particularly among younger generationhas become very popular. Soft drinks in various flavors and tastes are widely patronizedby urbane population at various occasions like dinner parties, marriages, social getogether, birthday calibration etc. children of all ages and groups are especially attractedby the mere mention of the word soft drinks. With the growing popularity of soft drinks, thetechnology of its production, preservation, transportation and or marketing in the recentyears has witnessed phenomenal changes. The so-called competition for this product inthe market is from different other brands. Mass media, particularly the emergence oftelevision, has contribute to a large extent of the ever growing demand for soft drinks theattractive jingles and sport make the large audience remember this product at all times. 12
  13. 13. It is expected that with the sort of mass advertising, reaching almost the entire countryand offering various varieties annual demand for the product is expected to rise sharply inthe times to come.In any marketing situation, the behavioral / environmental variables relating to consumers,competition and environment are constantly influx. The competitors in a given industrymay be making many tactical maneuvers in market all the time. They may introduce orinitiate an aggressive promotion campaign or announce a price reduction. The marketingman of the firm has to meet all these maneuver and care of competitive position of hisfirm and his brand in the market. The only rout open to him for achieving this is themanipulation of his marketing tactics.In today‘s highly competitive market place, three players have dominated the industry;The New York based Pepsi Company Inc. The Atlanta based coca- cola and U.K. basedCadbury Schweppes. Through the globe, these major players have been battling it out fora bigger chunk of the ever –growing soft drink market. Now this battle has been evolvedup to India too with the arrival of these three giants. Soft drink industry is on amazinggrowth; ultimately these are only one person who will determine their fortunes. The Indianconsumer the real War to quench his thirst has just begun.The soft drink industry has been a profitable one in spite of the ―cola wars‖ between thetwo largest players. Several factors contribute to this profitability, and these factors alsohelp to show why the profitability of the concentrate production side of the industry hasbeen so much greater than the bottling side. Over the years the concentrate producershave experimented with different levels of vertical integration, and although it has notnecessarily been clear which have been more successful historically, some decisioncriteria can be developed to help determine if and when complete vertical integration isnecessary.The World most popular soft drinks is on duel! Pepsi and Coca Cola, it‘s the battlebetween the red can soft drinks and the blue can soft drinks! So this 2 drinks taste almostthe same, but which one of the soft drinks do you prefer?Coke and Pepsi have rolled out many celebrities during the past 20 years, and comedian 13
  14. 14. Dave Chapels promoted both drinks during the same year. The soft drink industry hasbeen a profitable one in spite of the ―cola wars‖ between the two largest players. Severalfactors contribute to this profitability, and these factors also help to show why theprofitability of the concentrate production side of the industry has been so much greaterthan the bottling side. Over the years the concentrate producers have experimented withdifferent levels of vertical integration, and although it has not necessarily been clear whichhave been more successful historically, some decision criteria can be developed to helpdetermine if and when complete vertical integration is necessary.The concentration in the industry (Coke and Pepsi have 73% in 1994) would suggest thatinternal rivalry is somewhat less than if there were many players of equal size. Althoughthe competition between Coke and Pepsi has become fiercer over time, they traditionallycompeted primarily on advertising, promotion and new products rather than price(although the explosion of new brands did eventually lead to some price competition). Theproducts are similar but not homogeneous and buyers are fairly brand loyal. Retail buyershave significant costs for switching from the major brands since those are responsible forbringing people into the store. Flattening and potentially declining U.S. demand may be afactor which increases internal rivalry and encourages more price competition and thuserosion of profits.The ultimate battle of two major players competing for the top spot in a massive globalmarket. The cola and carbonated beverage industry reaches to virtually all corners of theplanet, and the vast majority of the market share belongs to the two giants Coke andPepsi. With such a huge market and enormous revenue potential in an industry such asthis, it is no wonder that the Coke vs. Pepsi competition is so fierce.Coke vs. Pepsi, nearly everyone has a preference or an opinion about which one isbetter. There is really no arguing the fact that the two soft drinks are very similar in termsof flavor. The flavor difference between them is subtle at most, so it is interesting that somany people have such strong feelings about which one is superior.Global market analysis on the cola industry shows that Coca Cola typically has a slightadvantage over Pepsi in market share. In some regions Pepsi is winning the war,however overall it seems that more people are choosing Coke versus Pepsi. Looking at a 14
  15. 15. wide range of data shows that Coca Cola owns somewhere between60-63% of the Indianmarket, while Pepsi gets in the neighborhood of 30%. Of course different studies willproduce different results so it is difficult to get a truly accurate picture. The one thing thatis certain is that Coke and Pepsi continue to blow away any other form of competition.The cola wars are truly a two horse race..1.2 INTRODUCTION ABOUT COMPANYThe Coca-Cola Company exists to benefit and refresh everyone it touches. Type Public(NYSE:KO) Industry Beverage Founded 1886, USA 15
  16. 16. Coca-Cola, the product that has given the world Headquarters Atlanta, Georgia , USAits best- known taste was born in Atlanta, Area served WorldwideGeorgia on May 8, 1886. Coca-Cola Companyis the world‘s leading manufacturer, Marketer Key People Muhtar Kentand distributor of non-alcoholic beverage (Chairman and CEO)concentrates and syrups, used to producenearly 400 beverage brands. The corporate Products Coca Colaheadquarters are in Atlanta, with local Carbonated Soft Drinksoperations in over 200 countries around theworld. The Coca-Cola Company began building Waterits global network in the 1920s.Coca-Cola Other non alcoholicsystem has successfully applied a formula on a beveragesglobal scale ―Provide a moment of refreshmentfor small amount of money a billion times a day‖. Employees 92,400 (October 2009) Website Coca-cola.comWhen launched Coca-Cola two key ingredientswere cocaine (benzoyl methyl ecgonine) and caffeine. The cocaine was derived from thecoca leaf and the caffeine from kola nut, leading to the name Coca-Cola (the "K" in Kolawas replaced with a "C" for marketing purposes Coca-Cola often referred to simply asCoke (a registered trademark of The Coca-Cola Company in the United States sinceMarch 27, 1944)was invented in May 1886 by Dr. John Stith Pemberton in Atlanta,Georgia. The name "Coca-Cola" was suggested by Dr. Pembertons bookkeeper, FrankRobinson. He penned the name Coca-Cola in the flowing script that is famous today.Coca-Cola was first sold at a soda fountain in Jacobs Pharmacy in Atlanta by WillisVenable. The first sales were at Jacobs Pharmacy in Atlanta, Georgia, on May 8, 1886. Itwas initially sold as a patent medicine for five cents a glass at soda fountains, which werepopular in the United States at the time due to the belief that carbonated water was goodfor the health. 16
  17. 17. Pemberton claimed Coca-Cola cured many diseases, including morphine addiction,dyspepsia, neurasthenia, headache, and impotence.Pemberton ran the first advertisement for the beverage on May 29 of the same year in theAtlanta Journal. The company was formed to sell three main products: PembertonsFrench Wine Cola (later known as Coca-Cola), Pembertons Indian Queen Hair Dye, andPembertons Globe Flower Cough Syrup.[The Coca-Cola formula and brand was boughtin 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892. In 1892 Candler incorporated a second company, The Coca-Cola Company (the current corporation), Coca-Cola was sold in bottles for the first time on March 12, 1894. The first Outdoor wall advertisement was painted in the same year as well in Cartersville, Georgia. CAN of Coke first appeared in 1955. On February 7, 2005, the Coca-Cola Company announced that in thesecond quarter of 2005 they planned to launch a Diet Coke product sweetened with theartificial sweetener sucralose, the same sweetener currently used in Pepsi One. OnMarch 21, 2005, it announced another diet product, Coca-Cola Zero, sweetened partlywith a blend of aspartame and acesulfame potassium. On July 5, 2005, it was revealedthat Coca-Cola would resume operations in Iraq for the first time since the Arab Leagueboycotted the company in 1968. In India, Coca-Cola ranked third behind the leader,Pepsi-Cola, and local drink Thums Up. The Coca-Cola Company purchased Thums Up in1993. As of 2004, Coca-Cola held a 60.9% market-share in India.Coca-Cola was the first commercial sponsor of the Olympic games, at the 1928 games inAmsterdam, and has been an Olympics sponsor ever since. Special aluminum bottledesigned exclusively for the Vancouver 2010 Olympic Winter Games Torch Relay. Thiscorporate sponsorship included the 1996 Summer Olympics hosted in Atlanta, whichallowed Coca-Cola to spotlight its hometown. 17
  18. 18. Since 1978, Coca-Cola has sponsored each FIFA World Cup, and other competitionsorganized by FIFA. In fact, one FIFA tournament trophy, the FIFA World YouthChampionship from Tunisia in 1977 to Malaysia in 1997, was called "FIFA — Coca ColaCup".In 2010 it was announced that Coca-Cola had become the first brand to top £1 billion inannual UK grocery salesIngredients Carbonated water Sugar (sucrose or high-fructose corn syrup depending on country of origin) Caffeine Phosphoric acid v. Caramel (E150d) Natural flavorings A Can of Coke (12 fl ounces/355ml) has 39 grams of carbohydrates (all from sugar, approximately 10 teaspoons), 50 mg of sodium, 0 grams fat, 0 grams potassium,140calorie. LOGOThe famous Coca-Cola logo was created by John Pembertons bookkeeper, Frank MasonRobinson, in 1885. Robinson came up with the name and chose the logos distinctivecursive script. The typeface used, known as Spenserian script, was developed in the mid19th century and was the dominant form of formal handwriting in the United States duringthat period. 18
  19. 19. Robinson also played a significant role in early Coca-Cola advertising. His promotionalsuggestions to Pemberton included giving away thousands of free drink coupons andplastering the city of Atlanta with publicity banners and streetcar signs.The World’s Most Powerful BrandInterbrain‘s Global Brand Scorecard for 2003 ranked Coca-Cola the #1 Brand in theWorld, estimated its brand value at $70.45 billion .The ranking‘s methodology determineda brand‘s valuation on the basis of how much it was likely to earn in the future, distillingthe percentage of revenues that could be credited to the brand, and assessing thebrand‘s strength to determine the risk of future earnings forecasts. Considerationsincluded market leadership, stability, and global reach, incorporating its ability to crossboth geographical and cultural borders.From the beginning, Coke understood the importance of branding and the creation of adistinct personality. Its catchy, well-liked slogans (―It‘s the real thing‖ (1942, 1969),―Things go better with Coke‖ (1963), ―Coke is it‖ (1982), ―Can‘t beat the Feeling‖ (1987),and a 1992 return to ―Can‘t beat the real thing‖) linked that personality to the core valuesof each generation and established Coke as the authentic, relevant, and trustedrefreshment of choice across the decades and around the globe.1.2.1 BUSINESS MODEL OF COMPANY 19
  20. 20. 1.3 SWOT ANALYSIS 20
  21. 21. SWOT analysis is the overall evaluation of the company or an individual.  Strength  Weaknesses  Opportunities  ThreatsSWOT analysis of the coca-cola company can be understood as follows:  STRENGTHS:  Coca-cola Company is the most famous brand name of the world.  Coca-cola has many stars endorsing its products.  Thumbs up is much stronger in taste compared to Pepsi.  Maintains high quality.  A wide range of different tastes.  People trust coca-cola.  Its new launched product AAM PANA which gives desi taste to Indians.  WEAKNESSES:  Coca-cola needs a proper planned route of operation. 21
  22. 22.  It has very low budget for promotion and advertisement of its products. Its name brand coke is not much popular among people. Proper quality control methods are not used. Retailers don‘t support its low budget schemes. OPPORTUNITIES: It has a large rural market to spread its products. Good semi urban market. Can launch new traditional Indian products. Can launch many new schemes to defeat Pepsi from the market (like a home delivery scheme was launched in Jaipur House area.) THREATS: 22
  23. 23.  It has an intense competition with Pepsi.  The research which is conducted by some institutes regarding pesticides in soft drinks.  Increase in the sales of other fruit juices or health drinks.1.4 OBJECTIVES OF STUDY 23
  24. 24.  To study the performance of coca cola.  To study the preference of the people for soft drinks.  To find out the factor(s) that influences the consumer(s) consumption of soft drinks.  To know which brand advertisement mostly liked by the target customers.1.5 NEED OF STUDY 24
  25. 25. The main aim of this research study is to analyze the preference of people (of differentage group) on consumption pattern of soft drink and consumer awareness about softdrinks.The need of the study arises because with the help of this study company can get theinformation about the brand awareness, position of its brand in the market, sales andpromotion policies . So that, after understandings the customers and retailers‘ opinionabout the company helps the company to change its marketing strategies to focus on thecustomers and helps to fight against the competitors. With the help of this study thecompany can improve its promotion policy and increase its market share and profit. 25
  27. 27. 2. REVIEW OF LITERATUREAccording to the Webster‘s dictionary, literature is ―the writings that pertains towardsparticular branch of learning and printed matter and review means to examine again, tostudy carefully.‖Therefore literature review is the printed matter which we study very carefully during ourwork. This project is also a collection of insight into the different printed material.The preference for Coke versus Pepsi is not only a matter for the tongue to decide,Samuel McClure and his colleagues have found. Brain scans of people tasting the softdrinks reveal that knowing which drink they taste affects their preference and activatesmemory-related brain regions that recall cultural influences.The knowledge about sales and promotion principles is gained from the book ―Theprinciple of marketing‖ written by Philip Kotler.There were many researches which were conducted to determine the awareness thecoca cola .In 2009 a research was conducted in Delhi region.. In this research it wasfound that people were aware of coca cola more than Pepsi.( Samuel, et, al. 2004)According to the ‘Product Insights: Soft Drinks in India’ report,The global soft drinks market grew at a compound annual growth rate (CAGR) of 3.45%from 2005 to 2009 and was valued at $494.5 billion in 2009. New product launches in theglobal soft drinks market increased by 8.59% in 2009. The US was the top country byretail sales as well as by number of new product launches, followed by Japan whichranked second in both categories. Globally, India ranked 25th in terms of retail sales and13th in terms of the number of new product launches in the soft drinks market in 2009.In spite of India‘s huge population and the fact that around 47% of the population iscomposed of persons below 30 years of age, the per-capita consumption of soft drinks inIndia remains very low, at approximately at 5.2 liters against the world average of nearly 27
  28. 28. 85.22 liters. Developed countries such as the US, Germany, Italy and Spain all have per-capita consumption in the range of 280-400 liters, showcasing the huge potential formarket growth in India. Coca-Cola remains the market leader in the carbonates categorywith a market share of more than 60% in the Indian market, followed by Pepsi with around35%. In the bottled water category, Parle‘s Bisleri andKinley from Coca-Cola are the leading players. The packaged juices market in Indiacontinues to be dominated by Maaza and Frooti, followed by brands such as Slice,Tropicana and Real which have registered good growths in their market shares in thepast few years. Red Bull with its strong dominance of the energy drinks‘ category, whichis the largest segment in the functional drinks category, is the market leader in thefunctional drinks market.Coca-Cola had built its reputation on the consumer-loving products it sells. This is whythey don‘t want its main rival, Pepsi, free-riding on that reputation. Coca-Cola made theaverage glass bottle famous. Now, Pepsi just wants to take advantage of Coca-Cola‘sgoodwill and reputation just to boost its own sales. Why else would Pepsi want to sell asimilar glass bottle? Although Pepsi makes a strong case, this fact alone could destroyPepsi‘s chances of a victory.2.1 A study of factors responsible for brand preference in FMCG sector.The purpose of this paper is the study of factors responsible for brand preference inFMCG products, increasing competition, more due to globalization, is motivating manycompanies to base their strategies almost entirely on building brands. Brand preferencemeans to compare the different brands and opt for the most preferred brand. This brandpreference is influenced by various factors.According to this study many factors were find out for preferring a brand like:Brand personaBrand constancyBrand loftinessBrand value. 28
  29. 29. In the identification of factors affecting the brand preference, it was concluded that brandpersona is the most effective factor that affects the brand preference. This brand personadeals with the personality aspects or the external attributes of brand, thus it can be saidthat consumer prefer any brand by looking at the external attributes of a brand.2.2 Bombarding the senses: StudyBy choosing to formulate a new beverage, the researchers noted that the new productwould need to be differentiated by improving the sensory characteristics. Four factorswere identified for the formulation: four color intensities), three flavorings, two label types(soft versus hard), and two pack sizes (standard versus oversize). By using bothquantitative (hedonic testing) and qualitative (focus groups) approaches, the researchersfound that the main factors which drive consumer preference for this concept are colorintensity and flavoring‖. Indeed, color intensity accounted for 43 per cent and flavor 32 percent of the consumers‗ overall liking. ―Pack size and label type are taken into account bythe consumer to a lesser extent, they added. This methodology of a qualitative screeningassociated to a conjoint analysis on relevant sensory attributes has shown goodperformances to fit consumers‗ expectation: it has now to be reproduced, as e very brand,concept and product is a unique combination designed for a specific consumer group,‖concluded the researchers.2.3. Taste or health: A study on consumer acceptance of cola drinksThis study examined the relative contributions of taste and health considerations onconsumer liking and purchase intent of cola drinks. Eight types of commercial cola drinkswere evaluated by 305 adult consumers who also completed a brief questionnaire on foodhabits. Data were analyzed using factor analysis. Results revealed that purchase intent ofcola drinks was strongly related to degree of liking and to several key sensory attributesincluding saltiness, drinks flavor and greasiness. These variables emerged as the firstfactor in the analysis, suggesting that consumers perceive these characteristics as beingmost important in their choice of cola drinks. Factor 2 described a health dimension andwas related to respondents attitudes toward fat in the diet. Factor 3 comprised two 29
  30. 30. remaining sensory attributes (color and crunchiness), which apparently were of minorimportance to the respondents. These data suggest that in spite of current concern aboutreducing dietary fat, health remains secondary to taste in the selection of cola drinks forconsumers in this population.2.4. Paired preference tests using placebo pairs and different responseOptions for cola drinks, orange juices: AbstractPreference tests were performed for varieties of cola drinks, orange juices and usingthree response protocols: the traditional paired preference test with the "no preference"option, a 9-point hedonic scale and a 6-point hybrid hedonic/purchase intent scale. Thedifferent stimuli to be assessed were presented in pairs, but putatively identical stimuliwere also presented as a "placebo" pair. Performance on the placebo pair with identicalstimuli provided a measure of the hidden demand characteristics of the test protocol. Thepresentation of the different pairs provided a measure of preference accompanied bysuch hidden demand effects. Comparison between the two allowed a better measure ofpreference per se. The order of presentation of the identical and different pairs did showoccasional slight evidence of contrast effects. For the placebo "identical" pairs, a majorityof consumers reported false preferences. Liking questions with the hedonic and hybridscales elicited fewer false preferences than preference questions with the pairedpreference protocol. Yet, the effects tended to be slight. The 6-point hedonic/purchaseintent scale exhibited the fewest false preferences in the placebo condition, and this wasbecause of its fewer categories rather than any cognitive strategy change elicited by itsdifferent labels. 30
  32. 32. 3.1 SOFT DRINK INDUSTRY: AN OVERVIEWIt all began in 1886, when a tree legged brass kettle in Hohn Styth pemberton‘s backyardin Atlanta was brewing the first P of marketing legeent Unaware the pharmacist has givenbirth to a caramel colored syrup, which is now the chief ingredient of the world‘s favoritedrink. The syrup combined with carbonated the soft drink market. It is estimated that thisdrink is served more than one thousand million times in a day.In 1894, this beverage got into bottle, courtesy a candy merchant from Mississippi. By the1950‘s Colas was a daily consumption item, stored in house hold fridges. Soon were bornother non- cola variants of this product like orange & Lemon.Now, the soft drink industry has been dominated by three major players –1. The New York based Pepsi co. Inc.2. The Atlanta based coca cola co.3. The United Kingdom based Cadbury Schweppes.Throughout the glove these major players have been battling it. Out of a big chunk of theever growing cold drink market, now this battle has begun in India too. India is now the 32
  33. 33. part of cold drink war. Gone are days of Ramesh Chauhan, India‘s one time cola king andhis bouts of pistol shooting. Expect now to hear the boon of cannons when the Coca Cola& Pepsi co. battles it out for, as the Jordon goes a bigger share of throat. By buying Overlocal competition, the two American Cola giants have cleared up the arena and arepacking all their power behind building the Indian franchisee of their globe girdling brands.The huge amount invested in fracture has never been seen before. Both players seen anenormous potential in his country where swigging a carbonated beverage is stillconsidered a treat, virtually a luxury. Consequently, by world standards India‘s per capitaconsumption of cold drinks as going by survey results is rock bottom, less than overNeighbors Pakistan & Bangladesh, where it is four times as much. Behind the hype, in aneffort invisible to consumer Pepsi pumps in Rs 3000 crores (1994) to add muscle to itsinfrastructure in bottling and distribution. This is apart from money that company‘sfranchised bottles spend in upgrading their plants all this has contributed to substantialgains in the market. In colas, Pepsi is already market leader and in certain cities likeBanaras, Pepsi outlets are on one side & all the other colas put together on the other.While coke executive scruff at Pepsi‘s claims as well as targets, industry observers are ofthe view that Pepsi has definitely stolen a march over its competitor coke.Apart from numbers, Pepsi has made qualitative gains. The foremost is its image. Thisimage turnaround is no small achievements, considering that since it was establishedin1989, taking the hardship route prior to liberalization and weighed down by exportcommitments.Now, at present as there are three major players coke, Pepsi and Cadbury and there isstiff competition between first two, both Pepsi and coke have started, sponsoring localevents and staging frequent consumer promotion campaigns. As the mega event of thiscentury has started, and the marketers are using this event – world cup football, cricketevents and many more other events. Like Pepsi, coke is picking up equity in its bottles toguarantee their financial support; one side coke is trying to increase its popularity througheat Food, enjoy Food. Drink only coca cola. Eat cricket, sleep cricket. Drink only cocacola. Eat movies, sleep movies. Drink only coca cola. 33
  34. 34. On the other side of coin Pepsi has introduced AMITABH BACHHAN for capturing thelemon market through MIRINDA – Lemon with ―zor ka jhatka dhere se lage‖.But no doubt‘ that UK based Cadbury is also recognizing its presence. So there is a realcrush in the soft drink market. with launch of the carbonated organize drink Crush, fewyear ago in Banaras ., the first in a series of a launches , Cadbury Schweppes beverageIndia (CSBI) HAS PLANNED:- The world third largest soft drink marketers all over thecountry. CSBI wholly owned subsidiary of the London based $ 6.52billion. CadburySchweppes is hoping that crush is going well and well not suffer the same fate as theRs.175 crore Cadbury India‘s apple drink Apella. CSBI is now with orange (crush), andSchweppes soda in the market.As orange drinks are the smallest of non-cola categories that is Rs. 1100 crore marketswith 10% market share and cola heaving 50% is followed by Lemon segment with25%.The success of soft drink industry depends upon 4 major factors viz.  Availability  Visibility  Cooling  Range  AVAILABILITYAvailability means the presence of a particular brand at any outlet. If a product is nowavailable at any outlet and the competitor brand is available, the consumer will go for itbecause generally the consumption of any soft drink is an impulse decision and notpredetermined one.  VISIBILITYVisibility is the presence felt, if any outlet has a particular brand of soft drink say- Pepsicola and this brand is not displayed in the outlet, then its availability is of no use. The softdrink must be shown off properly and attractively so as to catch the attention of theconsumer immediately Pepsi achieves visibility by providing glow signboards, hoarding, 34
  35. 35. calendars etc. to the outlets. It also includes various stands to display Pepsi and other flavors of the company. COOLING As the soft drinks are consumed chilled so cooling them plays a vital role in boosting up the sales. The brand, which is available chilled, gets more sales then the one which is not, even if it is more preferred one. RANGE This is the last but not the least factor, which affects the sale of the products of a particular company. Range availability means the availability of all flavors in all sizes. 35
  36. 36. 3.2 COCA-COLA3.2.1 COCA-COLA IN INDIA―Coke would rather be long term wiser, than being short term smarter‖ Abhraham ninan Director External Affairs COCA-COLA INDIAIndia is home to one of the most ancient cultures in the world dating back over 5000years. At the beginning of the twenty-first century, twenty-six different languages werespoken across India, 30% of the population knew English, and greater than 40% wereilliterate. At this time, the nation was in the midst of great transition and the dichotomybetween the old India and the new was stark. Remnants of the caste system existedalongside the world‘s top engineering schools and growing metropolises as thehistorically agricultural economy shifted into the services sector. In the process, India hadcreated the world‘s largest middle class, second only to China. 36
  37. 37. A British colony since 1769 when the East India Company gained control of all Europeantrade in the nation, India gained its independence in 1947 under Mahatma Ghandi and hisprinciples of non-violence and self-reliance. In the decades that followed, self-reliancewas taken to the extreme as many Indians believed that economic independence wasnecessary to be truly independent. As a result, the economy was increasingly regulatedand many sectors were restricted to the public sector. This movement reached its peak in1977 when the Janta party government came to power and Coca-Cola was thrown out ofthe countryCoca-Cola was the leading soft drink brand in India until 1977 when it left rather thanreveals its formula to the government and reduces its equity stake as required under theForeign Exchange Regulation Act (FERA) which governed the operations of foreigncompanies in India. After a 16-year absence, Coca-Cola returned to India in 1993,cementing its presence with a deal that gave Coca-Cola ownership of the nations topsoft-drink brands and bottling network. Coke‘s acquisition of localPopular Indian brands including Thums Up (the most trusted brand in India21), Limca,Maaza, Citra and Gold Spot provided not only physical manufacturing, bottling, anddistribution assets but also strong consumer preference. This combination of local andglobal brands enabled Coca-Cola to exploit the benefits of global branding and globaltrends in tastes while also tapping into traditional domestic markets.Leading Indian brands joined the Companys international family of brands, includingCoca- Cola, diet Coke, Sprite and Fanta, plus the Schweppes product range. In 2000, thecompany launched the Kinley water brand and in 2001, Shock energy drink and thepowdered concentrate Sunfill hit the market. While The Coca-Cola Company is a globalcompany with some of the worlds most widely brands, the Coca-Cola business in India,as in each country where it operates, is a local business.After a 16-years absence, Coca-Cola returned to India in 1993. The Companys presencein India was cemented in November that year in a deal that gave Coca-Cola ownership ofthe nations top soft-drink brands and bottling network.Coca-Cola India has made significant investments to build and continually improve its 37
  38. 38. business in India, including new production facilities, wastewater treatment plants, anddistribution systems and marketing equipment  During the past decade, the Coca-Cola system has invested more than US$ 1 billion in India  Coca-Cola is one of the countrys top international investors by 2003; Coca-Cola India had won the prestigious Woodruff Cup from among 22 divisions of the Company based on three broad parameters of volume, profitability, and quality.  In 2003, Coca-Cola India pledged to invest a further US$100 million in its operations  In India, we indirectly create employment for more than 125,000 people in related industries through our vast procurement, supply and distribution system  Virtually all the goods and services required to produce and market Coca-Cola locally are made in India  The Coca-Cola system in India comprises 27 wholly-owned company-owned bottling operations and another 17 franchisee-owned bottling operations.  A network of 29 contract-packers also manufactures a range of products for the Company  The complexity of the Indian market is reflected in the distribution fleet, which includes 10-tonne trucks, open-bay three-wheelers that can navigate the narrow alleyways of Indian cities, and trademarked tricycles and pushcarts. 38
  39. 39.  The complete manufacturing process had a documented quality control and assurance program including over 400 tests performed throughout the process. We will collaborate creatively with those who sell our products in the marketplace, developing relationships built on mutual success, not only from our brands, but also from our services. Ranking: We own 4 of the world‘s top 5 non-alcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Sprite and Fanta. 39
  40. 40. Oct 1993 1993 - Pune 1996 Coke relaunched Concentrate Can, PET plant Plant started in Pune in Agra 1998 Sept 1997 First greenfield Acquired first bottling plant, Ahmedabad plant, Bareilly 1997 - 1999 2000 22 Acquired, 6 COBO regions, 4 bottling 7 Greenfield companies 1 FOBO operation 2010- 7000 local employees, 500 managers, over 60 manufacturing locations, 27 Company Owned Bottling Operations (COBO), 17 Franchisee Owned Bottling Operations (FOBO) and a network of 29 Contract Packers that facilitate the manufacture process of a range of products for the companyBeverage industry in India: a brief insight:-In India, beverages form an important part of the lives of people. It is an industry, in whichthe players constantly innovate, in order to come up with better products to gain moreconsumers and satisfy the existing consumers. 40
  41. 41. The soft-drink industry comprises companies that manufacture nonalcoholic beveragesand carbonated mineral waters or concentrates and syrups for the manufacture ofcarbonated beverages.Non-alcoholic soft drink beverage market can be divided into fruit drinks and soft drinks.Soft drinks can be further divided into carbonated and non-carbonated drinks. Cola,lemon and oranges are carbonated drinks while mango drinks come under noncarbonated category.Cola products account for over 60% of the total soft drink market and include popularbrands such as Coca-Cola, Pepsi, and Thumps up etc. Non-cola segment constitutes forover 35% of the market. 41
  42. 42. 3.2.2 MISSION AND VISIONMISSIONEverything we do is inspired by our enduring……  To Refresh the World body, mind, and spirit.  To Inspire Moments of Optimism...through our brands and our actions.  To Create Value and Make a Difference...everywhere we engage.VISIONTo achieve sustainable growth, we have established a Vision with clear goals:  People: Being a great place to work where people are inspired to be the best they can be.  Planet: Being a responsible global citizen that makes a difference.  Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples desires and needs.  Partners: Nurturing a winning network of partners and building mutual loyalty.  Profit: Maximizing return to shareowners while being mindful of our overall responsibilities. 42
  43. 43. 3.2.4 BRANDS OF COKECoca-colaCoca cola is the most popular and highest selling soft drinks in the history, as well as thebest known product in the world. Coca-Cola has a truly remarkable heritage. From thehumble beginning in 1886, it‘s now a flagship brand of the largest manufacturer, marketerand distributor of the non-alcoholic beverages in the world.Diet cokeWorlds Third Largest Selling Soft DrinkDiet Coke is for those who want plenty of taste but no calories. Diet coke is also known asCoke light in some countries.Thums upToday it is the largest selling soft drink brand in India.Thums Up is known for its strong, fizzy taste and its confident, mature and uniquelymasculine attitude. This brand clearly seeks to separate the men from the boys.SpriteSprite is the brand that gained most share in sparkling beverages in the year 2010.Present in over 130 countries worldwide. In India, sprite is the second largest brand ofsoft drinks. Sprite is a good product at cola and contains at lemon flavor. And preferred byall age of people.FantaFanta the orange drink 43
  44. 44. Over the years Fanta has occupied a strong market place and is identified as the "TheFun Catalyst".LimcaLimcas freshness is like no other- lime n lemoniLime n lemoni Limca can cast a tangy refreshing spell on anyone, anywhere. Derivedfrom Nimbu + jaisa hence Lime Sa, Limca has lived up to its promise of refreshmentand has been the original thirst choice of millions of consumers for over 3 decade.MaazaMaaza – the wholesome family fun Mango. Imagine this delicious fruit, bottled. This iswhat Maaza is all about. Maaza- the most loved beverage brand in India. It provides themost authentic experience of rich, juicy mangoes—anytime, anywhere!Minute Maid NimbuJust Like Home-made LemonadeA lemon drink with no added preservative or colour, Minute Maid Nimbu Fresh offers arefreshing drinking experience as close to homemade NimbuPaani as possible in apackaged format. Nostalgia in a bottle, Minute Maid Nimbu Fresh offers Ghar Ki YaadonKa Ras (memories of home-made lemonade) in every sip.Minute MaidRefreshingly Orange Surprisingly Pulpy!Minute Maid – one of the worlds largest juice and juice drink brands.KinleyWater you can trust and be truly safe and pure.Kinley water understands the importance and value of this life giving force. Kinley waterthus promises water that is as pure as it is meant to be. 44
  45. 45. Kinley SodaIndias no.1 National Soda brand.With its unique taste and formula Kinley Soda packs quite a punch 45
  46. 46. 3.2.4 COKE: BRANDS IN INDIA 46
  47. 47. 3.2.5 SLOGANS OF COCA-COLA1886 "Coca-Cola-Delicious, Refreshing, Exhilarating"1904 - Delicious and refreshing.1905 - Coca-Cola revives and sustains.1906 - The great national temperance beverage.1908 - Good till the last drop1917 - Three million a day.1922 - Thirst knows no season.1923 - Enjoy life.1924 - Refresh yourself.1925 - Six million a day.1926 - It had to be good to get where it is.1927 - Pure as Sunlight1927 - Around the corner from anywhere.1928 - Coca-Cola ... pure drink of natural flavors.1929 - The pause that refreshes.1932 - Ice-cold sunshine.1937 - Americas favorite moment.1938 - The best friend thirst ever had.1938 - Thirst asks nothing more. 47
  48. 48. 1939 - Coca-Cola goes along.1939 - Coca-Cola has the taste thirst goes for.1939 - Whoever you are, whatever you do, wherever you may be, when you think ofrefreshment, think of ice cold Coca-Cola.1941 - Coca-Cola is Coke!1942 - The only thing like Coca-Cola is Coca-Cola itself.1944 - How about a Coke?1945 - Coke means Coca-Cola.1945 - Passport to refreshment.1947 - Coke knows no season.1948 - Where theres Coke theres hospitality.1949 - Coca-Cola ... along the highway to anywhere.1952 - What you want is a Coke.1954 - For people on the go.1956 - Coca-Cola ... makes good things taste better.1957 - The sign of good taste.1958 - The Cold, Crisp Taste of Coke1959 - Be really refreshed.1963 - Things go better with Coke.1966 - Coke ... after Coke ... after Coke.1969 - Its the real thing. 48
  49. 49. 1971 - Id like to buy the world a Coke. (basis for the song Id Like to Teach the World toSing)1974 - Look for the real things.1976 - Coke adds life.1979 - Have a Coke and a smile1982 - Coke is it!1985 - Americas Real Choice1986 - Red White & You (for Coca-Cola Classic)1986 - Catch the Wave (for New Coke)1989 - Cant Beat the Feeling. (also used in the UK)1993 - Always Coca-Cola.2000 - Enjoy.2001 - Life tastes good. (also used in the UK)2003 - Real.2005 - Make It Real.2006 - The Coke Side of Life (used also in the UK)2007 - Live on the Coke Side of Life (also used in the UK)2009 - Open Happiness2010 - Twist The Cap To Refreshment2011 - Life Begins Here 49
  50. 50. India"Thanda matlab Coca-Cola!" ("Cold means Coca-Cola!") (2000s)"Pio sar utha ke" ("Drink with pride")"Jo chaho ho jaye, Coca-Cola enjoy!" ("Whatever you wish will come true, enjoy Coca-Cola!") 50
  51. 51. 3.3 PEPSICOPepsiCo is one the largest companies in the U.S. It figures amongst the largest15companies worldwide according to the number of employees hired. It has a U.S.Fortune rank of 50.The company profits for 1997 were $2.14 billion on revenues of $20.92billion and Pepsi is bottled in nearly 190 countries. PepsiCo is a world leader inconvenient snacks, foods and beverages with revenues of more than $43 billion and over198,000employees. Take a journey through our past and see the key milestones thatdefine PepsiCo. PepsiCo is a world leader in the food chain business. It consists of manycompanies amongst which the prominent once are Pepsi-Cola, Frito-Lay and Pepsi FoodInternational. The group is presently into two of the most profitable and profitable andgrowing industriesnamely, beverages and snack foods. It has scores of big brandsavailable in nearly 150 51
  52. 52. countries across the globe. The group has established for itself once of the strongestbrands in various segments of its operations.The beverages segment primarily markets its Pepsi, Diet Pepsi, Mountain Dew andother brands worldwide and 7-UP outside the U.S. markets. These are positioned in closecompetition with Coca-Cola Inc. of USA. A point which is worth a mention is that Coca-Cola gets 80% of its profits for International operations while the same figure for PepsiCostands at 6%. The segment is also in the bottling plants and distribution facilities and alsodistributes the ready to drink tea products of Lipton in North America. In a joint-venturewith orient spray juice products PepsiCo also manufactures and distributes fruit juices.The snack food division manufactures and distributes and markets chips and othersnacks worldwide. The international operations of this segment extend to the markets ofMexico, the UK and Canada. Frito-Lay represents this segment of PepsiCo. Therestaurant segment earlier primarily consists of the operations of the worldwide Pizza Hut,Taco Bell and KFC chains, PFS. Pepsi company‘s restaurant distribution operation,supplies company owned and franchise restaurants in the U.S. The company venturedinto restaurant business with Taco Bell, KFC, Pizza Hut ended last year when they werespanned off from the company. A packaged goods company comprised of Pepsi-ColaCompany and Frito-Lay will continue to bear the PepsiCo name. The move shouldenhance both corporations ability to prosper with their own fully dedicated structure andmanagement team. 52
  53. 53. 3.3.1PEPSICO IN INDIAPepsiCo gained entry to India in 1988 by creating a joint venture with the Punjabgovernment-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited.This joint venture marketed and sold Lehar Pepsi until 1991, when the use offoreign brands was allowed; PepsiCo bought out its partners and ended the joint venturein 1994.Others claim that firstly Pepsi was banned from import in India, in 1970, forhaving refused to release the list of its ingredients and in 1993, the ban was lifted, withPepsi arriving on the market shortly afterwards. These controversies are a reminder of"Indias sometimes acrimonious relationship with huge multinational companies." Indeed,some argue that PepsiCo and The Coca-Cola Company have "been major targets inpart because they are well-known foreign companies that draw plenty of attention."In2003, the Centre for Science and Environment (CSE), a non-governmental organizationin New Delhi, said aerated waters produced by soft drinks manufacturers in India,including multinational giants PepsiCo and The Coca-Cola Company, contained Toxins,including linden , DDT, marathon and chlorpyrifos — pesticides that can contribute to 53
  54. 54. cancer, a breakdown of the immune system and cause birth defects. Tested productsincluded Coke, Pepsi, 7 Up, Miranda, Fanta, Thums Up, Limca, and Sprite.CSE foundthat the Indian-produced Pepsis soft drink products had 36 times the level of pesticideresidues permitted under European Union regulations; Coca Colas 30 times.CSE said ithad tested the same products in the US and found no such residues. However, this wasthe European standard for water, not for other drinks. No law bans the presence ofpesticides in drinks in India. The Coca-Cola Company and PepsiCo angrily deniedallegations that their products manufactured in India contained toxin levels far above thenorms permitted in the developed world. But an Indian parliamentary committee, in 2004,backed up CSEs findings and a government-appointed committee, is now trying todevelop the worlds first pesticides standards for soft drinks. Coke and PepsiCoopposed the move, arguing that lab tests arent reliable enough to detect minute traces ofpesticides in complex drinks. As of 2005, The Coca-Cola Company and PepsiCo togetherhold 95% market share of soft-drink sales in India. PepsiCo has also been accused by thePuthussery panchayat in the Palakkad district in Kerala, India, of practicing "water piracy"due to its role in exploitation of ground water resources resulting in scarcity of drinkingwater for the panchayat resident who have been pressuring the government to closedown the PepsiCo unit in the village. In 2006, the CSE again found that soda drinks,including both Pepsi and Coca-Cola, had high levels of pesticides in their drinks. BothPepsiCo and The Coca-Cola Company maintain that their drinks are safe for consumptionand have published newspaper advertisements that say pesticide levels in their productsare less than those in other foods such as tea, fruit and dairy products. In the Indian stateof Kerala, sale and production of Pepsi-Cola, along with other soft drinks, was banned bythe state government in 2006, but this was reversed by the Kerala High Court merely amonth later. Five other Indians tates have announced partial bans on the drinks inschools, colleges and hospitals.Brand FactsPepsiCo nourishes consumers with a range of products from tasty treats to healthy eatsthat deliver enjoyment, nutrition, convenience as well as affordability The group has builtan expansive beverage and foods business. To support its operations, PepsiCo has 42 54
  55. 55. bottling plants in India, of which 13 are company owned and 29 are franchisee owned. Inaddition to this, PepsiCo‘s Frito Lay division has 3 state-of-the-art plants. PepsiCo‘sbusiness is based on its sustainability vision of making tomorrow better than today.PepsiCo‘s commitment to living by this vision every day is visible in its contribution to thecountry, consumers and farmers.BeveragesPepsiCo India‘s expansive portfolio includes iconic refreshment beverages Pepsi, 7UP, Nimbooz, Miranda and Mountain Dew, in addition to low calorie options such as DietPepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonicsports drinks - Gatorade, Tropicana100% fruit juices, and juice based Drinks – TropicanaNectars, Tropicana Twister and Slice. Local brands – Lehar EvervessSoda, DukesLemonade and Mangola add to the diverse range of brands 55
  56. 56. FoodsPepsiCo‘s food division, Frito-Lay, is the leader in the branded salty snack market and allFrito Lay products are free of trans-fat and MSG. It manufactures Lay‘s Potato Chips;Cheetos extruded snacks, Uncle Chips and traditional snacks under the Kurkure andLehar brands. The company‘s high fiber breakfast cereal, Quaker Oats, and low fat androasted snack options enhance the healthful choices available to consumers. Frito Lay‘score products, Lay‘s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil tosignificantly reduce saturated fats and all of its products contain voluntary nutritionallabeling on their packets.QUICK FACTS  PepsiCo established its business operations in India in 1989.  Invested more than USD 1 Billion since inception.  Well known and loved global brands that delight and nourish consumers.  It provides direct and indirect employment to 150,000 people in India. 56
  57. 57.  It has more than 42 bottling plants in India, of which 13 are company owned & 29franchisee owned. 3 State-of-the-art food plants in Punjab, Maharashtra and West Bengal. 57
  58. 58. 3.3.2 PEPSICO INDIA: A FORTUNE 500 COMPANY IN INDIAPepsiCo, which ranks among the world‘s five largest food and beverage companies with16 brands, and its partners have invested more than US$ 700 million in India - buildingbusinesses, which today provide direct or indirect employment to more than 60,000people. Since Pepsi‘s entry into the Indian market in 1989, several brands fromits portfolio have become established category leaders. Brand Pepsi is now the 2ndbiggest brand in the country. PepsiCo‘s portfolio of beverage brands in India includes theflagship cola brand Pepsi; Diet Pepsi; two flavors of Mirinda – Orange and Lemon; 7UP;Mountain Dew; packaged drinking water - Aquafina; variants of the fruit drink brand Slice;the 100 per cent fruit juice brand Tropicana in several variants and the world‘s leadingsports drink Gatorade. 58
  59. 59. Pepsi - Yeh Hai Youngistan Meri Jaan 3.3.3 BRAND HISTORY Pepsi is a hundred year old brand loved by over 200 million people worldwide. The largest single selling soft drink brand in India is the ubiquitous socialite at every occasion. Youngistan loves it. 200 million people worldwide love it. But what has made Pepsi the single largest selling soft drink brand in India is actually a formula concocted a century ago in a far away continent. 1886, United States of America. Caleb Brad man, the man with a plan, got on to formulate a blockbuster digestive drink and decided to call it Brad‘s drink. It was this doctor‘s potion that was to become Pepsi Cola in 1898, and eventually, Pepsi in 1903. Pepsi has always played on the front foot and since its inception has come out with revolutionary concepts like Diet, 2L bottles, recyclable plastic cola bottles and the enviable My Can. 59
  60. 60. 3.3.4 PEPSICO: Brand Advantage  Pepsi has become a friend to the youth and has led many youth cultures. Youngsters over the generations have grown up with Pepsi and share an emotional connect with it, unlike any other cola brand. Be it parties, hangouts, or just another day at home, a day is never complete without the fizz of Pepsi!  Pepsi, Cricket and bollywood have been joined at the hip since the beginning. Shahrukh Khan, Sachin Tendulkar, Saif Ali Khan, Amitabh Bachchan, Kareena Kapoor, Priyanka Chopra, Virender Sehwag, M. S. Dhoni, John Abraham, Ranbir Kapoor and Deepika Padukone are a few celebrities who will go any length for a chilled Pepsi.  The Pepsi My Can is undoubtedly the most popular cola pack of all times. It is not just a pack but a style statement for today‘s youth. 60
  61. 61. 3.3.5 PEPSICO PRODUCT IN INDIA 61
  62. 62. 3.3.6 SLOGANS OF PEPSI1939–1950: "Twice as Much for a Nickel"1950: "More Bounce to the Ounce"1950–1957: "Any Weather is Pepsi Weather"1957–1958: "Say Pepsi, Please"1958–1960: "Be Sociable, Have a Pepsi"1961–1964: "Now Its Pepsi for Those Who Think Young" (jingle sung by JoanieSommers)1964–1967: "Come Alive, Youre in the Pepsi Generation" (jingle sung by JoanieSommers)1967–1969: "(Taste that beats the others cold) Pepsi Pours It On".1969–1975: "Youve Got a Lot to Live, and Pepsis Got a Lot to Give"1975–1977: "Have a Pepsi Day"1977–1980: "Join the Pepsi People (Feeling Free)"1980–1981: "Catch That Pepsi Spirit" (David Lucas, composer)1981–1983: "Pepsis got your taste for life"1983: "It‘s cheaper than Coke!"1983–1984: "Pepsi Now! Take the Challenge!"1984–1991: "Pepsi. The Choice of a New Generation" (commercial with MichaelJackson and The Jacksons, featuring the Pepsi version of "Billie Jean", "Bad" and "Blackor White". "Black of White"s was promoting the Dangerous World Tour.) 62
  63. 63. 1984–1988: "Diet Pepsi. The Choice of a New Generation"1988–1989: "Diet Pepsi. The Taste Thats Generations Ahead"1989–1990: "Diet Pepsi. The Right One"1989–1992: "Diet Pepsi. The Taste That Beats Diet Coke"1986–1987: "Weve Got the Taste" (commercial with Tina Turner)1987–1990: "Pepsis Cool" (commercial with Michael Jackson, featuring Pepsi versionof Bad)1990–1991: "You got the right one Baby UH HUH" (sung by Ray Charles for Diet Pepsi)1990–1991: "Yehi hai right choice Baby UH HUH" (Hindi - meaning "This is the rightchoice Baby UH HUH") (India)1991–1992: "Chill Out"1992–1993: "Be Young, Have Fun, Drink Pepsi"1993–1994: "Right Now" (Van Halen song for the Crystal Pepsi advertisement)1995: "Nothing Else is a Pepsi"1995–1996: "Drink Pepsi. Get Stuff." Pepsi Stuff campaign1996–1997: "Pepsi: Theres nothing official about it" (During the Wills World Cup (cricket)held in India/Pakistan/Sri Lanka)1997–1998: "Generation Next" (with the Spice Girls)1998–1999: "It‘s the cola" (100th anniversary commercial)1999–2000: "For Those Who Think Young"/"The Joy of Pepsi-Cola" (commercialwith Britney Spears/commercial with Mary J. Blige)1999–2006: "Yeh Dil Maange More!" (Hindi - meaning "This heart asks for more") (India) 63
  64. 64. 2003: "It‘s the Cola"/"Dare for More" (Pepsi Commercial)2006–2007: "Why You Doggin Me"/"Taste the one thats forever young" (Mary J. Blige)2007–2008: "More Happy"/"Taste the once thats forever young" (Michael Alexander)2000–present: "pepsi ye pyaas heh bari" ((Urdu) meaning "There is a lot of thirst"2009–present: "Refresh Everything"/"Every Generation Refreshes the World"2009–present: "Yeh hai youngistaan meri jaan" (Hindi - meaning "This is our youngcountry my baby")2009– "My Pepsi My Way"(India)2010– "Every Pepsi Refreshes The World"2010–2011 "Badal Do Zamana" (Urdu - meaning "Change The World" by CALL)2011–present: "Change the game" (Bangladesh, India for the 2011 Cricket World Cup) 64
  65. 65. 3.4 THE RIVARLY BEGINS:3.4.1 Coke Come in IndiaCoca cola comes to India with fanfare in the fifties. For a number of days, The HindustanTimes and other newspapers of New Banaras carried full page advertisement showing abig boy in uniform with a soft-drink crown as the cap. There was no indication of theproduct. After a few days, Coke was introduced. It was an entirely new drink whichfascinated people. It soon became the national drink. For the first time, a soft-drink wasavailable from one corner of the country to another. The person who brought Coca-Colato India was the father of late Sardar Charanjit Singh, Sardar Mohan Singh. A practicalman Mohan Singh realized that to popularize Coca-Cola, and make it a bestseller it wasnecessary to ―catch them young.‖ So he focused on youngsters in the society. Thecompany realized that to become a mass consumption product, one has to go to thevillage. They gave much importance to the distributive network. The company truckssupplied coke to even the remotest village. Few products appears to be more similar thansoft drinks, yet the Cola wars that mark the competition between Coke and Pepsi showhow even organizations with highly similar product can be differentiated by their businessstrategies. Then comes battles over the issue of bottle size standardization. Coke thearch rival tried to offering more Cola at a lower price. Pepsi which had some of it‘s earlyinvestment tied up in 250ml bottles, went the fountain way. The General bottle size freedhas settled at 300 ml. 100 ml more than the pre MNC standard. Fountain mix dispensers,carry home bottles, even 1.50 plastic bottle with caps good enough to keep them lyingdown and still preserve the fizz. It poured in vast sums to whip up its visibility at the retaillevel, so that consumers were greeted virtually at every street corner by Pepsi‘s blue, redand white colors, because they have perception ―the thing on display Sells more.‖ Coca-Cola is, finally, redoing the real thing to the replicate the success that it‘s arch-rival,PepsiCo. Has achieved with its fast and furious marketing. But to win them, Coke iscopying Pepsi. 65
  66. 66. 3.4.2 MARKETING STATEGIES OF COKE AND PEPSIPepsi and Coca-Cola focused on the following controllable aspects:-PriceCoca-Cola reduced prices nationwide by 15-25% to make them affordable and easy toget access to. Pepsi introduced returnable glass bottles for customers to recoup costs.ProductCoca-Cola and Pepsi launched different product lines to appeal to the Indian consumertastes. They started with product lines that were already available, such as cola, fruitdrinks, and carbonated water. Then, when the market was ―ready‖, they launched otherlines, such as bottled water (Coke- Kinley and Pepsi-Aquafina) and clear lime sodas(Coke-Sprite, Pepsi-7 Up).PromotionBoth Coca-Cola and Pepsi adapted to the local market with promotions. They promotedheavily during the Navrarti festival. Pepsi gave away a kilo of Basmati rice with every refillof a case of Pepsi. This is an effective strategy to blend the old (rice) with the new(Pepsi). Coca-Cola gave away vacations to Goa, a famous resort in India.Further, they teamed up with influential figures in Indian pop-culture to promote theirproducts. Pepsi launched an ambitious marketing campaign sponsoring Cricketcelebrities and athletes from the World Cup. Coca-Cola launched its Lifestyle AdvertisingCampaign as a method of building brand loyalty among its target markets: ―India A‖ (18-24 year old urban youth) and ―India B‖ (rural youth). They used a music director and anactor to promote the project. Most importantly, they tried to create a connection betweenlocal idioms and their products so that they would stick. The use of celebrities is apowerful marketing tool across cultures to promote products. 66
  67. 67. Channels of distributionProduction plants and bottling centers were strategically placed in large cities all aroundIndia. More were added as demand grew, along with new product lines. In Coca-Cola‘scase, the JV with Parle provided access to its bottling plants and its products. By formingpartnerships, both Coca-Cola and Pepsi were able to get initial access into the market.ResearchIt seems that prior research into general market demand may have been the mostoverlooked aspect by Coca-Cola and Pepsi. India has not ever been considered alucrative market for the soft drink industry. In 1989, Indians per capita were consumingonly three bottles per year. One might question the risk-reward analysis that bothcompanies partook in. Why enter a high-risk political/economic market where there is avery little proven track record of success in beverages? 67
  68. 68. 3.4.3 PRODUCT COMPARISION IN INDIAS. NO. Coca-cola product Pepsi product1 Coke Pepsi2 Diet Coke Pepsi Diet3 Thums-up Pepsi4 Limca Mirinda lemon5 Fanta Mirinda orange6 Maaza Slice7 Sprite 7up8 Sprite Mountain Dew9 Minute Made Tropicana10 Kinley Mineral Water Aquifinna Mineral Water11 Kinley Club Soda --------12 Georgia coffee --------13 ------ Lays product14 ------ Lehar product 68
  69. 69. 3.4.4 STRATEGY ADOPTED BY COKE AND PEPSIThe Pepsi ProcessDespite being a global brand, Pepsi has built its success on meeting the Indianconsumer‘s need particularly in terms of making the brand synchronize with localizedevents and traditions. Instead of harping on its global lineage, ergo, it tries to plug intoethnic festivals, use the vernacular indifferent part of the country, and blend into the localfabric. Pepsi is using both national campaigns-such as the Drink Pepsi, Get Stuff scheme,which offers large discounts on other products to Pepsi-buyers as well as local.The Coke CopyInstead of creating a bond with the customers through small but high-impact events,Coca-Cola chose to associate itself with national and international mega events like theworld cup Cricket, 1996 and World cup Football 1998. But now coke is also entering intolocal action. Coke is also trying to make their brand synchronize with localize eventtradition and festivals. Coca-Cola new tag line in this advertisement is ―Real shopping,real refresher‖. In this way Coke is copy Pepsi.EMPOWERMENTThe Pepsi ProcessOnce of the strongest weapons in Pepsi‘s armory is the flexibility. it has empowered itspeople with. Every manager and salesperson has the authority to take whatever steps he,or she, feels will make consumers aware of the brand and increase its consumption. 69
  70. 70. The Coke CopyFlexibility is the weapon that Coca-Cola, fettered as it is by the need for approvals fromAtlanta for almost everything. In the past, this has shown up in its stubborn insistence onjunking the franchisee network it had acquired from Parle; in its dependence on its ownfeedback mechanism over that of its bottlers; and on its headquarters approaches.PRICEThe Pepsi processPepsi has consistently wielded its pricing strategy as in invitation to sample, aiming to turntrial into addiction. It launched the 500 ml bottle in 1994 at Rs. 8 versus Thumps Up‘s Rs.9, in April, 1996, its 1.5 liters bottle followed Coke into the marketplace at Rs. 30 – Rs 5less than Coke‘s .But it couldn‘t continue the lower price positioning for long.The Coke CopyInitially, coke carbon-copied the strategy by introducing its 330mlcans in January 1996, atan invitation price of Rs. 15 before raising it to Rs 18. By this time,it had realized that theCoca-Cola brand did not hold enough attraction for customers to fork out a premium. The200ml Coke, launched so far in parts of eastern, western, and northern India, is priced atRs. 5, lowering the entry-barriers. Too really drive the market, as Coke wants to you mustgo down to Rs. 3. 70
  72. 72. 3.4.6 PRICEMaximum retail price of 300 ml bottles is controlled by the Central Government. The othersize and packs are priced keeping factors like competition, internal costs, external costs,and the corporate objective of the company in the mindProducts Selling price(per caret) Max selling price(per caret)300 ml bottle 240 264500ml bottle 364 3881 litter 500 520Soda 300 ml 164 188Cans 332 3521.5 litter PET bottle 50* 55*Price per bottles the empty bottles are priced at Rs 120 per crate and the shell at Rs100. 72
  74. 74. 4.1 METHODS OF DATA COLLECTIONThe task of data collection begins after a research problem has been defined andresearch design chalked out. While deciding about the method of data collection to beused for the study, the researcher should keep in the mind two types of data viz., primaryand secondary. The primary data are those which are collected afresh and for the firsttime, and thus happen to be original in character. The secondary data on the other hand,are those which have already been collected by someone else and which have alreadypassed through the statistical process. The method of collecting primary and secondarydata differ since primary data are to be originally collected, while in the case of secondarydata the nature collection work is merely that of competition.There are four Tools which are used to collect the data. Questionnaire Observation InterviewAll these methods of data collection have some merits and demerits. The adaptation ofthe method of data collection depends on the nature of the research work to beconducted. I used the questionnaire method to collect the data. For that I prepared aprinted questionnaire which was filled by the interviewer.COLLECTION OF DATA THROUGH QUESTIONNAIRES-This method of data collection is quite popular, particularly in case of big enquiries. It isbeing adopted by private individuals, research workers, private and public organizationsand even by governments. In this method a questionnaire is sent to the person concerned 74
  75. 75. with the request to answer the questions. A questionnaire consists of a number ofquestions printed or typed in a definite order on a form or set of formsThe method of collecting data by the questionnaire is most extensively employed invarious economic and business surveys. The merits claimed on behalf of this method areas follows. There is low cost even when the universe is large and is widely spread geographically. It is free from the bias of the interviewer; answers are respondents‘ own words. Respondents have adequate time to give well thought out answers. Respondents, who are not easily approachable, can also be reached conveniently. Large samples can be made use of and thus results can be made more dependable and reliable. 75
  76. 76. 4.2 SAMPLING DESIGNA sample design is a definite plan for obtaining a sample from the given population. Itrefers to the technique or the procedure the researcher would adopt in selecting items forthe sample. Sample design may as well lay down the number of items to be included inthe sample i.e., the size of the sample. Sample design is determined before data arecollected. There are many sample designs from which a researcher can choose. Somedesigns are relatively more precise and easier to apply than others. Researcher mustselect a sample design which should be reliable and appropriate for his research study.This research design is simply the framework for a study that guides the collection andanalysis of data by the survey of 80 consumers and 20 retailers in the different areas ofAgra. The sampling method used is simple random sampling.RESEARCH METHODOLOGY:Research methodology helps us to know what type of research we want to conduct, toknow the size of the sample, to know the methods involved in the Research.SAMPLE DESIGN:In this research the research conducted is Descriptive Research because it is depends onnew findings. 76
  77. 77. 4.3 SAMPLE SIZE:The sample size for the research based on the customer opinion was 80 and the size ofthe sample based on the opinion and experiences of the Retailers was 20. This research involved a study, which was descriptive as well as explorative in nature it basically aims at gathering data about consumer preference for cola drinks. Source of data collection Two source are used for data collection  Primary data- Questionnaire , Direct interview.  Secondary data- Websites, Company record. SAMPLING AREA - Agra City. SAMPLE SIZE- 100 consumers SAMPLING TECHNIQUE - Simple Random Sampling. DURATION OF RESEARCH-45 Days 77
  79. 79. GENDER OF CONSUMER MALE 80% FEMALE 20% FEMALE 20% MALE 80%In this research 80% respondent are male and 20% respondent are female. 79
  80. 80. AGE GROUP OF CONSUMERBelow 20 25%21-30 40%31-50 25%ABOVE 10% 0-20 21-30 31-50 ABOVE 10% 25% 25% 40% 80
  81. 81. During research 40% respondent are between 21-30year old,25% respondent arebelow 20 year, 25% respondent are between 31-50 year and 10% respondent isabove 50 year PREFERENCE OF SOFT DRINKS Yes 96% No 4% NO 4% YES 96% Most of the respondent like the soft drinks that is 96% 81
  82. 82. FREQUENCY OF CONSUMPTION IN A WEAK Daily 18% 2-3 times 41% 4-5times 26% Once in a week 15% 30% 26% 25% 24% 20% 18% 15% 15% 10% 5% 0% Daily 2-3 Times 4-6 Times Once in a weekMost of the respondent drunk a cola drink 4-6 time in a weak that is 26%. 82
  83. 83. PREFERENCE TO THE BRAND Pepsi 40% Coke 60% 60.00% 40.00% Pepsi CokeMost of respondent prefers coke brand for cola drink that is 60% 83
  84. 84. FACTOR TO GIVE THE PREFERENCE Taste 75% Price 10% Packaging 5% More Popular 10% 75.00% 10.00% 10.00% 5.00% Taste Price Packaging More popular75 % respondent select cola drink due to the taste 84
  85. 85. MARKETING STRATEGIES OF COMPANY AFFECT THE SALES Yes 70% No 30% 30.00% 70.00%70% respondent think marketing strategy of company affects the sales. 85
  86. 86. FORM OF MARKETING STRATEGIES Television advertisement 50% News paper advertisement 5% Sales promotion 25% Outdoor advertisement 20% telivision adv. Newspaper adv. Sales promotion Outdoor adv. 20% 50% 25% 5%Television advertisement is more affective followed by sales promotion. 86
  87. 87. CHANGE THE BRAND ON THE BASIS OF PRICEREDUCTION YES 20% NO 80% 20.00% Yes No 80.00%Most of the respondent remains with brand if price will get reduced that is 80%. 87
  88. 88. MORE EFFECTIVE ADVERTISMENT PEPSICO 40% COKE 60% COKE CO. PEPSI CO. 40.00% 60.00%Most of respondent think coke advertisement is more effective than Pepsi that is60%. 88
  89. 89. INNOVATIVE AND EXCITING OFFER COKE CO. 40% PEPSI CO. 60% COKE CO. PEPSI CO. 40% 60%PepsiCo provide innovative and exciting offer than coke that is 60%. 89
  91. 91. 6.1 FINDINGS AND ANALYSIS In this research 80% consumer are male and 20% consumers are female of Agra city. They are different age groups. 25% consumer is below 20 years, 40% consumers are 21-30 years, 25% consumers are 31-50 years and 10% consumers are above 50 years. By the questionnaire and personal interview the followings results are found: Most of the people like to drink cola drinks. Thums up is the most preferable product into the soft drink which is available in market. The main factor is Taste to choosing the soft drink. 75% consumer select soft drink on the basis of Taste. Most of consumer thinks marketing strategy of company affects the sales of product. 20% people may change the brand on the basis of price reduction. Celebrities have a great effect on people consuming cold drinks. In terms of innovative and exciting offers Pepsi co leads coca-cola. Television came out to be most effective for aid campaigns as respondent of all age groups watch TV. . 91
  92. 92. 6.2RECOMMENDATIONSSoft drinks are an impulse product. When a person is thirsty, he would first think ofwater or tea. The Indian population is the largest in the world today, there can be no othercountry in the world, which provides so much of an opportunity for the soft-drinkmanufacturers. The variousIn accordance with the findings of the research I would like to give some suggestions tothe company to improve its position in the market and to increase its market share. new schemes should be given to the retailers to promote its products There should be direct communication with the consumer. Proper budget should be allowed to promote the products of coca-cola. It should maintain its quality because it wins the consumer trust. Rural area should also be given proper consideration. It should also start home delivery system in the full area. companies should increase brand extinction with different flavor because Indian consumer mainly give the value to the taste Celebrities playing a main role for marketing of cola drinks. 92
  93. 93. 6.3 LIMITATIONS Some of the respondent refused to fill the questioner. During the time of interview some respondent are confused to come up with real answer. Small sample size. Limitation of time. The survey is conducted in few area of Agra city; hence the result may vary in other parts of the city. The finding is based on the survey conducted in the month of July and August. 93
  94. 94. REFERENCES Journals 1. Samuel M. McClure, Jian Li, Damon Tomlin, Kim S. Cypert, Latané M. Montague, and P. Read Montague: "popularity of coca cola vs. Pepsi.‖ Published in Neuron, Volume 44, Number 2, October 14, 2004, pages 379– 387. 2. Food Quality and Preference Volume 19, Issue 8, Pages 719-726By Stephen Daniells, 07-Oct-2008 3. Beverly J. Tepper and Amy C. Trail Journal of Food Science and Technology,15 September 1998. 4. Davis Woman‟ s Journal of Food Science and Technology, July 31, 2007 5. Journal of IMS, Vol. 5 no.1, Jan-June 2008Books: 1. Marketing management- By Philip Kotler 2. Research-methodology- By C R Kothari 3. Research Methodology: A Step-by-Step Guide for Beginners-By Ranjit KumarWEBSITES: 1. 2. 3. 94
  95. 95. 4. www.pepsico.com5. ANNEXURE 95
  96. 96. QUESTIONNAIREName________________________ Age___________Address_____________________ Contact no_________ A. DO YOU LIKE A COLA DRINK? Yes No B. FREQUENCY OF CONSUMPTION OF COLA DRINK IN A WEEK? Daily 2-3 Times 4-5 Times Once in a Week C. WHICH BRAND ARE YOU PREFERANCE TO THE BRAND Coke Pepsi D. WHICH PARTICULAR RATE TO GIVE THE PREFERANCE? Taste Price Packaging More Popular 96
  98. 98. J. WHICH BRAND HAVING THE INNOVATIVE AND EXCITING OFFERS? Coke co. Pepsi co. ANY SUGGESTION (IF ANY)We assure you that the above information will be kept confidential and will be used foracademic purpose of our MBA summer training project report. 98
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