It is about the Advertisement Strategy which have been adopted by the 2 Big MNC's i.e PepsiCo & Coca Cola

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EXECUTIVE SUMMARY
The existence of soft drinks and beverages can be said to be as old as the civilization of man.
Soft drinks are generally known as refreshers because a man feels the need of a refreshing drink
in order to quench his thirst, and overcome fatigue or boredom. People consume soft drinks like
Coca-Cola or Pepsi Cola not only to quench the thirst but because of the taste and ready
availability. The advertisement campaigns of the soft drink companied also play a significant
role in prompting the people’s preferences for soft drinks.
The conventional Indian soft drinks include lemonade, butter milk, lassi etc. With the
colonization by the British, India got westernized and synthetic soft drinks, which were part of
the dominant life style of the western world, got introduced into India.
The Study Report
The Study Report deals with Comparison of Advertising Strategy of Coca Cola & Pepsi in
Mumbai Suburb.
The Research has been carried out through a survey/questionnaire for obtaining the preferences
and consumption pattern of consumers in respect of Coca-Cola and Pepsi Cola. It has been found
that Coca-Cola has a good market potential in Mumbai city as compared to Pepsi Cola and that
consumers prefer Coca-Cola because of its superior taste and brand image.
It was, however, expressed by the consumers that they expect some improvements from Pepsi in
order to compete better with Coca-Cola. These two brands instill life to water by adding carbon
dioxide, a tasteless, odorless, natural gas, and other ingredients to cater to the taste buds of the
consumers.

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1.1 INTRODUCTION ABOUT TOPIC
Today's consumers are more demanding for an increasing level of fun and variety. Anything that
surrounds them for too long jades them. With the dawn of every fresh day, these modern-day
customers demand for quality and healthy food that is offered as per their convenience and
changing cultural needs. The survival of any food outlet or the industry is also highly dependent
on them; their palate can either make or break the existence of these companies. This has
wrought a great challenge on the marketers of the food industry who intentionally resort to
unethical practices that had sourced many lively international debates on ethical and marketing
practices of the food industry besides the intervention of regulatory authorities to implement
necessary legislation wherever required to reduce the ill-effects on the society.
Consumer research insights have long played an important role in managerial decision making in
many areas of marketing, for example, in the development of 2 advertising, pricing, and channel
strategies. Branding involves the process of endowing products and services with the advantages
that accrue to building a strong brand (e.g., enhanced loyalty, price premiums, etc.). Branding’s
emergence as a management priority has led to a similar need to inform practicing managers of
concepts, theories, and guidelines from consumer research to facilitate their brand stewardship
According to the American Marketing Association (AMA), a brand is a “name, term, sign,
symbol, or design, or a combination of them, intended to identify the goods and services of one
seller or group of sellers and to differentiate them from those of competition.”
 Water:
The simple sweetened soft drink contains about 90% of water, while in diet drinks; it
contains 95% of water.
 Flavor:
Flavor is of great importance in soft drink. Even water from different Places has different
taste. The flavor for taste added can be natural or artificial, Acidic, caffeine.

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 Artificial Flavor:
These are the flavors manufactured from natural extracts; this is used to give greater
choice, in taste to consumers.
 Acids:
Acids like citric acid & phosphoric acid are added to give refreshing tartness or bite &
help in preserving the quality of a drink.
 Natural Flavors:
These are the flavors, which are extracted from fruits, vegetables, nuts, barks, leaves etc.
in soft drink containing natural flavors & fruit juice.
 Caffeine:
Caffeine has special kind of taste makes the taste of soft drink a royal one. Caffeine was
added to soft drink from its introduction to a commercial market but now caffeine free
soft drinks are also available. Its quality is ¼ than compared with same amount of coffee.
 Carbon Dioxide:
Carbon Dioxide is a colorless & smells less gas, which is added to cold drink to get
bubble & it also help in keeping drink strong & fresh.
 Color:
Along with taste of soft drink is also of very important, the company tries to maintain
both taste & color of the soft drink everywhere in the world.
 Sugar:
Sugar syrup is added to the drink at around 75-degree C0 to the pure drinking water, this
is to make soft drink taste sweet. Even artificial sweetness is also used.

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Types of soft drinks i.e. Thums Up, Coca Cola, Pepsi, Mirinda, Maaza, Slice, Sprite and other
soft drinks. Most of the soft drink companies by offering different types of incentives.
Soft drink market of Pepsi-cola and Coca-Cola has a long and rich history as Multinational
companies. The PepsiCo cold drink is the invention of Caleb Bradham, a pharmacist and
drugstore owner in New Bern, North Carolina Historical background of soft drink. The summer
of 1898, as usual was hot and humid in New Bern, North Carolina, so a young Pharmacist named
Caleb Bradham began experimenting with combinations of spices, and syrup tiring to create a
refreshing new drink to serve his customers. He succeeded beyond all expectations because he
invented the beverage known around the world as Pepsi-Cola. 2 Caleb Bradham knew that to
keep people returning to his pharmacy, he would have to turn it into a gathering place.
He did so by contacting his own special beverage as a soft drink. His creations at unique mixture
of cola nut extract, Vanilla and raviolis, become so popular to his customers named it “Brands
Drink”. Caleb decided to rename it as “Pepsi cola”, and advertised his new soft drink. People
responded and sale of Pepsi cola. Started to grow convincing him that he should form a company
to market the new Beverage. Since then the Pepsi cola started growing at a speedy rate. But in
this age of globalization & worldwide increasing competition, every company needs to change or
modify its strategies so as to survive and keep pace with the cut-throat competition.

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ABOUT COCA COLA
The product that has given the world its best-known taste was born in Atlanta, Georgia, on May
8, 1886. Dr. John Stith Pemberton, a local pharmacist, produced the syrup for Coca-Cola, and
carried a jug of the new product down the street to Jacobs' Pharmacy, where it was sampled,
pronounced "excellent" and placed on sale for five cents a glass as a soda fountain drink.
Carbonated water was teamed with the new syrup to produce a drink that was at once "Delicious
and refreshing," a theme that continues to echo today wherever Coca-Cola is enjoyed.
Coco-Cola is a carbonated soft drink sold in stores, restaurant, and vending machines in more
than 200 countries. It is produced by The Coco-Cola Company of Atlanta, Georgia, & is often
referred to simply as Coke. Originally intended as patent medicines when it was invented in the
late 19th Century John Pemberton, Coca Cola was bought out by business man Asa Grigges
Candler, whose marketing tactics lead Coke to its dominance of the world Soft drink Market
throughout the 20th Century. Thinking that "the two Cs would look well in advertising," Dr.
Pemberton's partner and bookkeeper, Frank M. Robinson, suggested the name and penned the
now famous trademark "Coca-Cola" in his unique script. The first newspaper ad for Coca-Cola
soon appeared in The Atlanta Journal, inviting thirsty citizens to try "the new and popular soda
fountain drink." Hand-painted oilcloth signs reading "Coca-Cola" appeared on store awnings,
with the suggestion "Drink" added to inform passersby that the new beverage was for soda
fountain refreshment. During the first year, sales averaged a modest nine drinks per day.
Dr. Pemberton never realized the potential of the beverage he created. He gradually sold portions
of his business to various partners and, just prior to his death in 1888, sold his remaining interest
in Coca-Cola to Asa G. Candler. An Atlantan with great business acumen, Mr. Candler
proceeded to buy additional rights and acquire complete control.
After Pemberton's death, a man named Asa Griggs Candler rescued the business. In 1891, he
became the sole owner of Coca-Cola.

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THE HISTORY OF COCA-COLA
The first Coca-Cola recipe was invented in a drugstore in Columbus, Georgia by John
Pemberton, originally as a coca wine called Pemberton's French Wine Coca in 1885. He may
have been inspired by the formidable success of Vin Mariani, a European coca wine.
In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton responded
by developing Coca-Cola, essentially a non-alcoholic version of French Wine Cola. The first
sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886. It was initially sold as a
patent medicine for five cents a glass at soda fountains, which were popular in the United States
at the time due to the belief that carbonated water was good for the health. 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 the Atlanta Journal.
John Pemberton declared that the name "Coca-Cola" belonged to Charley, but the other two
manufacturers could continue to use the formula. So, in the summer of 1888, Candler sold his
beverage under the names Yum Yum and Koke.
After both of them failed to catch on, Candler set out to establish a legal claim to Coca-Cola in
late 1888, in order to force his two competitors out of the business. Candler purchased exclusive
rights to the formula from John Pemberton, Margaret Dozier and Woolfolk Walker. However, in
1914, Dozier came forward to claim her signature on the bill of sale had been forged, and
subsequent analysis has indicated John Pemberton's signature was most likely a forgery as well.
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 Georgia. The Cans of Coke first appeared
in 1955. The first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at the Biedenharn
Candy Company in 1891.
Candler never collected his dollar, but in 1899 Chattanooga became the site of the first Coca-
Cola bottling company. The loosely termed contract proved to be problematic for the company
for decades to come. Legal matters were not helped by the decision of the bottlers to subcontract
to other companies, effectively becoming parent bottlers.

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ABOUT COCA-COLA IN INDIA
The Coca-Cola Company started operations in India in 1993 after an absence of 16 yrs. To reach
India’s 300 million soft drink consumers, the company distributes its products through over 7
Lakh retail outlets Coca-Cola India directly employs over 7000 workers. Over the past 9 yrs, the
company has invested over US $ 827 million in India with over US $ 800 million in its bottling
subsidiary. Significant growth has come from kinley, its package water brand, which claims to
have around 35% share of the packaged drinking water market.
NOW LET US UNDERDTAND ABOUT THE BRAND KNOWLEDGE
Consumer brand knowledge can be defined in terms of the personal meaning about a brand
stored in consumer memory, that all descriptive and evaluative brand-related information.
Researchers have studied consumer brand knowledge for decades, with different areas receiving
greater emphasis depending on the dominant research paradigm and thrust the time.
In the modern urban culture, consumption of Soft drinks particularly among the young
generations has become very popular. Soft drink in various flavors & tastes are widely
patronized by urban population at various occasions like dinner, parties, marriages, social get
together, birthday celebrations, etc. Children of all age groups are especially attracted by the
mere mention of the word Soft drink with the growing popularity of soft drinks.
A Soft Drink is a drink that typically contains carbonated water, a sweetener, and a natural or
artificial flavoring. The sweetener may be sugar, high-fructose corn syrup, fruit juice, sugar
substitutes (in the case of diet drinks), or some combination of these. Soft drinks may also
contain caffeine, colorings, preservatives, and other ingredients. Soft drink is alternative drink
for liquor product or drinks to the consumers. Most of the consumers from small child, women’s,
young men and old men and women are consuming soft drinks. Production of soft drinks can be
done at factories, or at home. Soft drinks can be made at home by mixing either syrup or dry
ingredients with carbonated water.
Soft drinks are mixed with other ingredients in several contexts. In Western countries, in bars
and other places where alcohol is served (e.g., airplanes, restaurants and nightclubs) many mixed

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drinks are made by blending a soft drink with hard liquor and serving the drink over ice. One
well-known example is the rum and coke which may also contain lime juice. Some
homemade fruit punch recipes, which may or may not contain alcohol, contain a mixture of
various fruit juices and soda pop (e.g., ginger ale). At ice cream parlors and 1950s-
themed diners, ice cream floats are often sold. Two popular ice cream floats are the coke float
and the root beer float, which consist of a scoop of ice cream placed in a tall glass of the
respectively named soft drinks.
Raw Materials used in Soft Drinks; there are different types of raw materials used in different
soft drinks. Most of the raw materials are as under:
In India, Coca- Cola was the leading soft drink till 1977 when government policies necessitated
its departure. Coca Cola made its return to the country in 1993 &B made significant investments
to ensure that the beverage is available to more and more people, even in the remote and
inaccessible parts of the nation. Coke had entered the Indian soft drinks market way back in the
1970’s.
The company was the market leader till 1977, when it had the exit the country following policy
changes regarding MNC’s operating in India over the next few years, a host of local brands
Emerged such as Campa Cola, Thums Up, Gold Spot & Limca, etc. However, with the entry of
Pepsi and Coke in the 1990’s, almost the entire market went under their control.

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PEPSI COMPANY PROFILE
Pepsi is a carbonated soft drink that is produced & manufactured by PepsiCo. Created and
developed in 1898 & introduced as “Brands drink”, it was later renamed as Pepsi-Cola on June
16, 1903, then to Pepsi in 1961.
It is one of the most well-known brands in the world today available in over 200 countries. It has
an extremely positive outlook for India. This reflects that India holds a central position in Pepsi’s
corporate strategy.
India is key market for Pepsi Co, and at the same time the company has added value to Indian
Agriculture and Industry. PepsiCo entered in India in 1989 & is concentrating in 3 focus areas
soft drink concentrate, snack food & vegetable & food processing.
Faced with the existing policy Framework at the time, the company entered the Indian market
through a joint venture with Volta’s and Punjab Agro Industries. With the introduction of the
liberalization policies since 1991, Pepsi took complete control of its operations
The government has approved more than US$ 400 million worth of investments of which over
US$ 330 million have already flown in. One of PepsiCo's key strategies was to develop a
completely local management team.
Pepsi has 19 company owned factories while the Indian bottling partners own 21. The company
has set up 8 Greenfield sites in backward regions of different states. PepsiCo intends to expand
its operation and is planning an investment of approximately US$ 150 million in the next 2 to 3
years.

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THE HISTORY OF PEPSI
Born in the Carolinas in 1898, Pepsi-Cola has a long and rich history. The drink is the invention
of Caleb Bradham, a pharmacist and drugstore owner in New Bern, North Carolina.
The summer of 1898, as usual, was hot and humid in New Bern, North Carolina. So a young
pharmacist named Caleb Bradham began experimenting with combinations of spices, juices, and
syrups trying to create a refreshing new drink to serve his customers. He succeeded beyond all
expectations because he invented the beverage known around the world as Pepsi-Cola.
Caleb Bradham knew that to keep people returning to his pharmacy, he would have to turn it into
a gathering place. He did so by concocting his own special beverage, a soft drink. His creation, a
unique mixture of kola nut extract, vanilla and rare oils, became so popular his customers named
it “Brad’s Drink.”Caleb decided to rename it “Pepsi-Cola” and advertised his new soft drink.
People responded, and sales of Pepsi-Cola started to grow, convincing him that he should form a
company to market the new beverage
In 1902, he launched the Pepsi-Cola Company in the back room of his pharmacy, and applied to
the U.S. Patent Office for a trademark. At first, he mixed the syrup himself and sold it
exclusively through soda fountains. But soon Caleb recognized that a greater opportunity existed
to bottle Pepsi so that people could drink it anywhere.
The business began to grow, and on June 16, 1903, “Pepsi-Cola” was officially registered with
the U.S. Patent Office. That year, Caleb sold 7,968 gallons of syrup, using the theme line
“Exhilarating, Invigorating, Aids Digestion” He also began awarding franchises to bottle Pepsi to
independent investors, whose number grew from just two in 1905, in the cities of Charlotte and
Durham, North Carolina, to 15 the following year, and 40 by 1907. By the end of 1910, there
were Pepsi-Cola franchises in 24 states.

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PEPSICO IN INDIA
PepsiCo entered India in 1989 and in a short period, has grown into one of the largest MNC food
and beverage businesses in the country. PepsiCo’s growth in India has been guided by
“Performance with Purpose”, its goal to deliver top-tier financial performance while creating
sustainable growth and shareholder value.
Large investor in India with strong brands: PepsiCo has been consistently investing in India, in
the areas of product innovation, increasing manufacturing capacity, ramping up market
infrastructure, strengthening supply chain and expanding company’s agriculture program. The
company has built an expansive beverage and snack food business supported by 62 plants across
the country.
PepsiCo entered India in 1989 and in a short period, has grown into one of the largest MNC food
and beverage businesses in the country. PepsiCo’s growth in India has been guided by
“Performance with Purpose”, its goal to deliver top-tier financial performance while creating
sustainable growth and shareholder value.
PepsiCo has been consistently investing in India, in the areas of product innovation, increasing
manufacturing capacity, ramping up market infrastructure, strengthening supply chain and
expanding company’s agriculture program. The company has built an expansive beverage and
snack food business supported by 62 plants across the country. In two decades, the company has
been able to organically grow eight brands each of which generate Rs. 1000 crores or more in
estimated annual retail sales and are household names, trusted across the country.
PepsiCo India provides direct and indirect employment to almost 2, 00,000 people. The company
believes in providing employment and growth opportunities to local talent. Its ‘College of
Leadership’, ensures early identification of talent, and employees’ focused development through
critical experiences. PepsiCo firmly believes that encouraging diversity means encouraging
policies and systems that respect people’s special needs.

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PepsiCo India is focused on reducing its carbon footprint. In 2015, PepsiCo’s India’s Food and
Beverage plants had a 78% and 41% share from renewable energy sources, respectively such as
bio mass and rice husk boilers and wind turbines. Initiatives such as reduction in use of
chemicals, eco-friendly packaging initiatives and efficient waste management help reduce load
on the environment.
In 2009, PepsiCo India achieved a significant milestone, by becoming the first business to
achieve ‘Positive Water Balance’ in the beverage world, and has been Water Positive since then.
In 2015, PepsiCo India saved 12.75 billion liters more that it consumed in its manufacturing
operations.
PepsiCo India has pioneered and established a model of partnership with farmers and now works
with over 24,000 happy farmers across nine states. More than 45 percent of these are small and
marginal farmers with a land holding of one acre or less. PepsiCo provides 360-degree support to
the farmer through assured buy back of their produce at pre-agreed prices, quality seeds,
extension services, disease control packages, bank loans, weather insurance, and the latest
technological practices.

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1.2 OBJECTIVE OF THE STUDY
The main objective is to find out the Advertising & promotional strategies that has been adopted
by these companies to increase their market shares and sales in order to promote their product.
Following are some of the objectives of the study.
 To find out the marketing strategies adopted by the either of the competitor to promote their
product.
 To see the rich history of the company in detail.
 To understand the target market.
 To create a brand image in the minds of the consumers.
 To make an effective advertising so that the customers are attracted towards the product and
decide to buy the product.
 To study the presence of Coca-Cola & Pepsi in India.
 To look at the 4 as well as the 7 P’s of Marketing mix for Coca-Cola & Pepsi in India.
 To understand the Porter’s five Forces analysis.
 To figure out the Positioning strategies of Coca-Cola & Pepsi in the world.
 To make a comparative study of advertising strategies of Coca-Cola as well as Pepsi in the
world.
 To find out the growth and popularity of Coca-Cola & Pepsi in market.
 To study the reason behind the exponential increase in this brand’s popularity and success.

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1.3 METHODOLOGY USED TO COLLECT DATA.
Marketing research is the function which links customers and public to marketer through
information.
A. RESEARCH METHODOLOGY
It is the procedure used in making systematic observation and obtaining data evidence on
information as a part of research process.
 AREA OF STUDY
The Study is conducted in Mumbai city.
 RESEARCH DESIGN
A Research Design is a systematic objective and scientific plan developed for directing a
Research study. It constitutes the overview for data, collection measurement and analysis of data.
B. NEED OF RESEARCH DESIGN
1) Ensuring Research process in Right Direction.
2) Minimizing time and cost of Research.
3) Encouraging Co-ordination and Effective Communication.
4) Minimizing bias and maximizing the reliability of the data collected and analyses.
C. DATA COLLECTION
The project consists of analysis of perception towards Coca-Cola & Pepsi of several Consumers
in Mumbai. In this Particular project, Fundamental Research was also carried Out which
attempted to explore Knowledge through methods like personal Interaction.

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 DATA COLLECTION METHODS
i) Primary Data
ii) Secondary Data
1. PRIMARY DATA
Primary data is data that has not been previously published; the data is derived from a new or
original Research study and collected at the source. Primary data was gathered by carrying out a
market survey.
Tools used for market survey are: -
 Information provided by friends, relatives and colleagues.
 Through personnel interaction and with the help of a Questionnaire.
2. SECONDARY DATA
Secondary data are those data that are already in existence for some other purpose thus
answering the question in hand.
 Secondary data on the other hand are those which have already been collected by
someone else and which have already been passed through the statistical process.
 Information was gathered from the internet, media and print to obtain relevant
information such as industry background and also public perception of Coca cola &
Pepsi and other Coca cola & Pepsi products.
 Sampling plan
The sampling plan used for the study of this project is “Systematic Random Sampling”.
 Sample size
Sample size collected is 50.
 Data collection instrument
The data collection instrument used for this project is “Questionnaire”.
1.3.1 Types of primary data are as follows.
a. Questionnaire

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b. Check list
c. Interview
d. Observations
e. Survey method
1.3.2. Types of secondary data are as follows.
 INTERNAL SOURCES
Internal sources of secondary data are usually for marketing application-
 Sales Records
 Marketing Activity
 Cost Information
 Distributor reports and feedback
 Customer feedback
 EXTERNAL SOURCES
External sources of secondary data are usually for financial application-
 Journals
 Books
 Magazines
 Newspaper

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1.4 SCOPE OF THE STUDY
The scope of the study focuses on existing marketing condition for Coca-Cola & Pepsi in India.
Here the entire view of study is taken on the primary data collection from retail store sector and
consumers based on questionnaires and the secondary data is collected from marketing books,
internet sources like company website, company's past record. However the information
collected and analyzed is also from different retail shops in Mumbai city and nearby areas.
1.5 LIMITATIONS
As there is neck to neck competition between Coca Cola and PepsiCo brands the situation
demands a market analysis through Retailer and Customer which gives an over view of the
market in quantitative terms.
Statement of the problem is to know the competitive position of 7UP (Pepsi) with Sprite
(coca cola) and consumption pattern of Lemon flavor soft drink of consumers and also to study
Retailers expectation. Dealers are visiting to outlets 3 – 4 time every week, or depends upon the
area. The company must know the demands of the customers and their preferred flavor brand it
is done through by frequent visiting of Retailer, then came to know the needs of the customer.
This survey covers all the dimensions that dealers consider while carrying out their
business. The aim of the survey was to visit the outlets in a particular sub route and get as much
information as possible.

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CHAPTER 2
REVIEW OF LITERATURE
1) PepsiCo uses regional language labeling to attract the local consumers.
 This article says about the strategy that has been adopted by the company to promote
its product to the local consumers by using their regional languages that consumers
understand. Languages like Hindi, Marathi, Punjabi, Telgu, Gujarati, etc. the words
like “Bindas” & “Dhamal”. Prakash said the company has advantage to be setuped in
India because “the country has advantage of multiple languages & he wants to
leverage that connect with their consumers.”
2) PepsiCo launches Pepsi Black in India.
 Acc. to Prakash the company will roll out a new product every quarter to widen its
portfolio, with focus on lower sugar and functional beverage.
 The company is also launching the new 7up with 30% less sugar and plans to extend
the formulation to its other brands.
 At present Pepsi sells – Diet Pepsi, a low-calorie version of its flagship drink in India
that it had in 2010.
3) Coca-Cola Is About to Start Selling a New Protein-Packed Milk
Sabrina Toppa
Feb 03, 2015
 Coca-Cola announced plans Tuesday to distribute a premium protein-packed milk under
Minute Maid's Fair life brand across the U.S. next month.
 The lactose-free milk will contain half the sugar of regular milk, 50% additional protein
and 30% greater calcium, reports USA Today. Customers will be able to choose among
whole milk, fat-free, chocolate and reduced-fat options with prices ranging from $3.98 to
$4.20.
 "I hope it's Coke's next billion-dollar brand," said Fair life CEO Steve Jones.

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 Coca-Cola’s decision to increase the milk’s protein content corresponds with an
increased demand for protein among consumers. Data shows 71% of shoppers seek more
protein in their diet, according to findings from market-research firm NPD Group.
 Coca-Cola is hoping its premium milk will help boost sales, as fresh or pasteurized milk
retail volume sales declined by 3% last year. Sales of carbonated beverages are also
falling.
4) Coke and Pepsi Pledge to Cut Calories
Sam Frizell
Sep 23, 2014
 The country's three largest soda companies promised Tuesday to reduce the calories in
sugary drinks by 20% over the next decade, an unprecedented effort by the beverage
industry to fight obesity in the U.S.—and a tacit recognition of consumers' increasing
aversion for high-calorie soft drinks.
 Coca-Cola, PepsiCo and the Dr. Pepper Snapple will expand the presence of low- and
zero-calorie drinks and sell drinks in smaller portions, as well as provide calorie counts
and promote calorie awareness where their beverages are sold, the American Beverage
Association said in a statement.
 The commitment was announced at the 10th annual Clinton Global Initiative in New
York.
 "This is huge," former President Bill Clinton told the New York Times. "I’ve heard it
could mean a couple of pounds of weight lost each year in some cases."
5) Charts That Show Why No One Wins the Coke vs. Pepsi Fight
Jack Linshi
Feb 10, 2015
 It's a question that's been around about as long as the oldest human living on Earth: Coke
or Pepsi?

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Lately, the answer is "neither."
 Health-conscious consumers have been turning away from sugar-sweetened beverages,
and that's causing headaches for the country's top soda sellers. Coca-Cola reported a 55%
drop in quarterly profit Tuesday, while PepsiCo investors are also bracing for less than
stellar news when that company posts earnings Wednesday. Coke actually saw its first
rise in North American sales in four quarters, but that was thanks to price hikes rather
than increased demand.
 All told, nobody's really winning the soda wars. Soda sales have been in decline since
2005, falling 3% in 2013 alone, according to market research publication Beverage-
Digest. Coke and Pepsi have both posted negative yearly sales changes for the last 11
years, though Coke has better weathered the storm.
6) India Just Asked PepsiCo to Help Improve the Diet of the Nation's Children
Charlie Campbell
Aug 26, 2014
 India’s government is soliciting the help of an improbable partner in improving the
nutrition of millions of its hungriest children, reports Bloomberg. That partner is the
world’s largest snack producer, PepsiCo.
 Food Processing Minister Harsimrat Kaur Badal met PepsiCo CEO Indra Nooyi on
Tuesday to discuss the possibility of developing nutritious processed foods for use in
school lunches across the country, Bloomberg says. The move is part of Prime Minister
Narendra Modi's goal of upgrading the diet of the South Asian nation’s 1.2 billion people
— especially that of its 440 million children.
 “I suggested [that PepsiCo develop] products which will be healthy and will also contain
proteins,” Badal told reporters following her meeting. “As people are becoming busy, the
children will be immensely benefited if such products are launched.”

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7) PepsiCo to have 40% Women in Leadership
 Beyond the leadership level, the company is also looking at expanding the talent pool of
women in FMCG sector.
 “Getting the number is just one part. The second is to create the culture, and the third is to
have role models in the company. When women see women in the management team,
they aspire to be there”. Said D SHIVAKUMAR (PepsiCo India CEO)
 Beverages and snacks major PepsiCo India has more women in leadership roles than
most other companies and its gearing up to improve the numbers further.
 The company plans to have at least 40% women among its top 50 managers in India in
the near future, up from 23% currently.

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CHAPTER 3
CONCEPTIUAL FRAME WORK
Advertising: - Advertising is an audio or visual form of marketing communication that employs
an openly sponsored, no personal message to promote or sell a product, service or idea. Sponsors
of advertising are often businesses who wish to promote their products or services. Advertising is
differentiated from public relations in that an advertiser usually pays for and has control over the
message. It is differentiated from personal selling in that the message is no personal, i.e., not
directed to an individual. Advertising is communicated through various mass media, including
old media such as newspapers, magazines, Television, Radio, outdoor advertising or direct mail;
or new media such as search results, blogs, websites or text messages. The actual presentation of
the message in a medium is referred to as an advertisement or “ads”.
Advertisers pay for advertising to accomplish a wide array of goals. Ad objectives generally boil
down to long-term branding communication or short-term direct response advertising. Branding
is about building and maintaining a reputation for your company that distinguishes it in the
marketplace. Sales promos are short-term inducements to drive revenue or cash flow. Based on
your company's objectives, budget and target audience, you normally advertise through one or
more types of media. Calculating your return on investment in dollars is difficult, but you need to
establish measurable goals, such as a percentage increase in awareness, to evaluate success.
There are various types of advertising they are as follows: -
i. Broadcast media
ii. Print media
iii. Direct marketing
iv. Product placement
v. Internet
vi. Television
vii. Radio
viii. Newspaper
ix. Social media, etc.

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Let’s study each in detail.
i. Broadcast media: - Television and radio are two traditional broadcast media long used
in advertising. Television offers creative opportunities; a dynamic message and wide
audience reach. It is typically the most expensive medium to advertise through, though.
Because local affiliated stations normally serve a wide local audience, you also have to
deal with waste when trying to target a small-town marketplace. TV watchers normally
have a negative attitude toward commercials and many have DVRs at their fingertips.
ii. Print media: - Magazines and newspapers are the two traditional print media. Magazines
offer a highly selective audience who is generally interested in ads closely related to the
topic of the magazine. Visual imagery is also stronger in magazines than newspapers.
You have little wasted since magazines are very niche and you can target a narrow
customer segment. On the downside, magazines are costly and require long lead times,
which limit timely promotions. They also have limited audience reach. Newspapers are
very affordable for local businesses and allow you to target a geographic segment if you
have a universal product or service. Newspapers are also viewed as a credible medium,
which enhances ad acceptance. You can usually get an ad placed within a day or two of
purchase. Declining circulation, a short shelf life and limited visual creativity are
drawbacks.
iii. Direct marketing: - Direct marketing is an interactive approach to advertising that has
picked up in usage in the early 21st century. It includes direct mail, email and
telemarketing. These are direct response efforts to create an ongoing dialogue or
interaction with customers. Weekly or monthly email newsletters, for instance, allow you
to keep your brand, products and other messages in front of prospects and customers.
Telemarketing is a way to survey customers and offer new products, upgrades or
renewals. Direct mail is the most common format of direct marketing where you send
mailers or postcards to target customers promoting products, deals or promotions. Direct
marketing has become more prominent because it allows for ease in tracking customer
response rates and helps advertisers better measure return on investment.

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iv. Product marketing: - Another newer advertising technique is product placement. This is
where you offer compensation to a TV show, movie, video game or theme park to use
your product while entertaining audiences. You could pay a TV show, for instance, to
depict your product being used and discussed positive in a particular scene. This ad
method is a way for companies to integrate ads with entertainment since customers have
found ways to avoid messages delivered through more conventional media.
v. Internet: - the Internet is used by online and offline companies to promote products or
services. Banner ads, pop up ads, text ads and paid search placements are common forms.
Banner, pop up and text ads are ways to present an image or message on a publisher's
website or on a number of websites through a third-party platform like Google's Adwords
program. Paid search placements, also known as cost-per-click advertising, is where you
bid a certain amount to present your link and text message to users of search engines like
Google and Yahoo!
vi. Television: - Television has an extensive reach and advertising this way is ideal if you
cater to a large market in a large area. Television advertisements have the advantage of
sight, sound, movement and color to persuade a customer to buy from you. They are
particularly useful if you need to demonstrate how your product or service works.
Producing a television advertisement and then buying an advertising slot is generally
expensive. Advertising is sold in units (e.g. 20, 30, 60 seconds) and costs vary according
to:
a) The time slots
b) The television programmed
c) Whether it is metro or regional
d) If you want to buy spots on multiple networks.
vii. Radio: - Advertising on the radio is a great way to reach your target audience. If your
target market listens to a station, then regular advertising can attract new customers.
However, sound has its limitations. Listeners can find it difficult to remember what they
have heard and sometimes the impact of radio advertising is lost. The best way to

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overcome this is to repeat your message regularly - which increases your costs
significantly. If you cannot afford to play your advertisement regularly, you may find that
radio advertising does not generate strong results.
viii. Newspaper: - Newspaper advertising can promote your business to a wide range of
customers. Display advertisements are placed throughout the paper, while classified
listings are under subject headings in a specific section. You may find that a combination
of advertising in your state/metropolitan newspaper and your local paper gives you the
best results
.
ix. Social media: - Social network advertising, also social media targeting, is a group of
terms that are used to describe forms of online advertising that focus on social
networking services. One of the major benefits of this type of advertising is that
advertisers can take advantage of the users' demographic information and target their ads
appropriately. Social media targeting combines current targeting options (such as geo
targeting, behavioral targeting, socio-psychographic targeting, etc.), to make detailed
target group identification possible. With social media targeting, advertisements are
distributed to users based on information gathered from target group profiles.

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NOW LET US UNDERSTAND WHAT “ADVERTISING STRATEGY” IS
Advertising Strategy
An advertising strategy is a plan to reach and persuade a customer to buy a product or a service.
The basic elements of the plan are
1) The product itself and its advantages,
2) The customer and his or her characteristics,
3) The relative advantages of alternative routes whereby the customer can be informed of the
product, and
4) The optimization of resulting choices given budgetary constraints.
In effect, this means that aims must be clear, the environment must be understood, the means
must be ranked, and choices must be made based on available resources. Effective product
assessment, market definition, media analysis, and budgetary choices result in an optimum plan
never the perfect plan because resources are always limited.
There are 4ps of marketing mix such as Product, Price, Place & Promotion (in case of product)
where as in service there are additional 3ps namely People, Physical Evidence & Process.
Promotion is one of the key elements of the marketing mix, and deals with any one or two-way
communication that takes place with the consumer. Through promotion the companies can sell
their product to the target audience.
Let’s see how develop a promotional strategy
Deciding on a marketing communications strategy is one of the primary roles of the marketing
manager and this process involves some key decisions about who the customer is, how to contact
them, and what the message should be. These questions can be answered using a three-stage
process, which is equally relevant for all elements of the marketing mix:

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Segmentation
dividing the marketing into distinct groups
Targeting
deciding which of these groups to communicate with, and how to talk to them
Positioning
how the product or brand should be perceived by the target groups
Messaging
delivering a specific message in order to influence the target groups
1) SEGMENTATION
Dividing potential customers into discrete groups is vital if you want to increase the success rate
of any communications message. If you don’t know who you are talking to, it’s unlikely you will
get much of a response. Who are the potential customers? How many sub-groups should you
divide them into? How do these groups differ? Hopefully, most of this information will be
readily available from your market research.
Once you have an idea of the customer, you should further drill down to explore them in more
detail.
What are their media consumption habits? What are their expectations and aspirations? What are
their priorities? How much disposable income do they have? What are their buying habits? Are
they likely to have children? How many holidays do they take a year? How much money do they
give to charity? How can you help them?
This information can be obtained in a variety of ways, from commissioning a specialist market
research agency, to examining sales patterns or social media interactions.
Commonly used market research methods include:
 Sales analysis and buying patterns
 Questionnaires

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 Desk research
 Website statistics, especially social media
 Focus groups
 Face-to-face interviews
 Specialist market research companies
Once you have built up an accurate picture of your customer, it’s time to get their attention.
2) TARGETING
For the purposes of advertising, targeting is the process of communicating with the right
segment(s) and ensuring the best possible response rate. The methods you use to target your
audience must relate to your marketing plan objectives – are you trying to generate awareness of
a new product, or attract business away from a competitor?
Methods of marketing communications
 Advertising – Mass media approach to promotion.
 Sales promotion – price/money related communications.
 Public relation – using your press to your advantage.
 Personal selling – one -to- one communication with a potential buyer.
 Direct marketing – taking the message directly to the consumer.
 Digital marketing – new channels are emerging constantly.
 Deciding which media channels to be used.
 Ensuring your message reflects the stage of the purchasing funnel.
 Integrated marketing communication (IMC).
 Getting best response.

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3) POSITIONING
Positioning is the process of developing an image for your company or product. This can be
achieved partially through branding, but it’s important to realize that all elements of the
marketing mix combine to provide the full picture. You must ensure that all areas of your
business live up to expectations to successfully position yourself in the way you hope.
Positioning also considers the competition, and you need to explain why you are unique in the
marketplace and better than the other products on the shelf.
Formal advertising strategies are based on a "positioning statement," a technical term the
meaning of which, simply, is what the company's product or service is, how it is differentiated
from competing products and services, and by which means it will reach the customer. The
positioning statement covers the first two items in the listing above.
The product concept will later guide the choice of copy, images, and message content to be used
in actual ads (the "copy platform"). The positioning statement must also implicitly include the
profile of the targeted customer and the reasons why he or she would buy this product or this
service. At a later stage, more data on the "target consumer" is then developed as the strategy is
fleshed out.
4) DEVELOPMENT OF THE ADVERTISING MESSAGE
Once you have determined the positioning for your brand, it’s time to develop the message in
order to influence your target groups. Advertising objectives should be directly linked to your
marketing plan, and tend to fit into the following generic categories:
o Inform – raising awareness of your brand & products, establishing a competitive
advantage
o Persuade – generating an instant response (usually driving sales)
o Remind – to maintain interest and enthusiasm for a product or service

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It’s a documented fact that creative, well branded, distinctive advertising generates the best
results so ensure you use the best possible creative team you can get your hands on, and give
them a detailed brief. Remember that a message will only be successful if it appeals to the target
audience, so constantly refer to the customer and tailor the ads to them.
History of Coca cola
The Coca-Cola’s advertisement started from 1943 & is still displayed in the small city of
Minden, Louisiana. Colonel John Pemberton was wounded in the Civil War, became addicted to
morphine, and began a quest to find a substitute to the dangerous opiate. The prototype Coca-
Cola recipe was formulated at Pemberton's Eagle Drug and Chemical House, a drugstore in
Columbus, Georgia, originally as a coca wine. He may have been inspired by the formidable
success of Vin Mariani, a European coca wine.
In 1885, Pemberton registered his French Wine Coca nerve tonic. In 1886, when Atlanta and
Fulton County passed prohibition legislation, Pemberton responded by developing Coca-Cola,
essentially a nonalcoholic version of French Wine Coca. The first sales were at Jacob's Pharmacy
in Atlanta, Georgia, on May 8, 1886. It was initially sold as a patent medicine for five cents a
glass at soda fountains, which were popular in the United States at the time due to the belief that
carbonated water was good for the health. 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 the Atlanta Journal.
By 1888, three versions of Coca-Cola – sold by three separate businesses – were on the market.
A co partnership had been formed on January 14, 1888 between Pemberton and four Atlanta
businessmen: J.C. Mayfield, A.O. Murphey; C.O. Mullah and E.H. Bloodworth. Not codified by
any signed document, a verbal statement given by Asa Candler years later asserted under
testimony that he had acquired a stake in Pemberton's company as early as 1887. John
Pemberton declared that the competition between PepsiCo and Coca-Cola brands name "Coca-
Cola" belonged to his son, Charley, but the other two manufacturers could continue to use the
formula.

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Charley Pemberton's record of control over the "Coca-Cola" name was the underlying factor that
allowed for him to participate as a major shareholder in the March 1888 Coca-Cola Company
incorporation filing made in his father's place. More so for Candler especially, Charley's position
holding exclusive control over the "Coca-Cola" name continued to be a thorn in his side.
Asa Candler's oldest son, Charles Howard Candler, authored a book in 1950 published by Emory
University. In this definitive biography about his father, Candler specifically states: "...on April
14, 1888, the young druggist [Asa Griggs Candler] purchased a one-third interest in the formula
of an almost completely unknown proprietary elixir known as Coca-Cola."
Old German Coca-Cola bottle opener. The deal was actually between John Pemberton's son
Charley and Walker, Candler & Co. - with John Pemberton acting as cosigner for his son. For
$50 down and $500 in 30 days, Walker, Candler & Co. obtained all of the one-third interest in
the Coca-Cola Company that Charley held, all while Charley still held on to the name. After the
April 14 deal, on April 17, 1888, one-half of the Walker/Dozier interest shares were acquired by
Candler for an additional $750.
The Coca-Cola Company In 1892, Candler set out to incorporate a second company; "The Coca-
Cola Company" (the current corporation). When Candler had the earliest records of the "Coca-
Cola Company" burned in 1910, the action was claimed to have been made during a move to
new corporation offices around this time.
After Candler had gained a better foothold of Coca-Cola in April 1888, he nevertheless was
forced to sell the beverage he produced with the recipe he had under the names "Yum Yum" and
"Koke". This was while Charley Pemberton was selling the elixir, although a cruder mixture,
under the name "Coca-Cola", all with his father's blessing. After both names failed to catch on
for Candler, by the summer of 1888, the Atlanta pharmacist was quite anxious to establish a
firmer legal claim to Coca- Cola, and hoped he could force his two competitors, Walker and
Dozier, completely out of the business, as well.
When Dr. John Stith Pemberton suddenly died on August 16, 1888, Asa G. Candler now sought
to move swiftly forward to attain his vision of taking full control of the whole Coca-Cola
operation.

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Charley Pemberton, an alcoholic, was the one obstacle who unnerved Asa Candler more than
anyone else. Candler is said to have quickly maneuvered to purchase the exclusive rights to the
name "Coca- Cola" from Pemberton's son Charley right after Dr. Pemberton's death. One of
several stories was that Candler bought the title to the name from Charley's mother for $300;
approaching her at Dr. Pemberton's funeral. Eventually, Charley Pemberton was found on June
23, 1894, unconscious, with a stick of opium by his side. Ten days later, Charley died at
Atlanta's Grady Hospital at the age of 40.
In Charles Howard Candler's 1950 book about his father, he stated: "On August 30th {1888}, he
{Asa Candler} became sole proprietor of Coca-Cola, a fact which was stated on letterheads,
invoice blanks and advertising copy."
With this action on August 30, 1888, Candler's sole control became technically all true. Candler
had negotiated with Margaret Dozier and her brother Woolfolk Walker a full payment amounting
to $1,000, which all agreed Candler could pay off with a series of notes over a specified time
span. By May 1, 1889, Candler was now claiming full ownership of the Coca-Cola beverage,
with a total investment outlay by Candler for the drink enterprise over the years amounting to
$2,300.
In 1914, Margaret Dozier, as co-owner of the original Coca-Cola Company in 1888, came
forward to claim that her signature on the 1888 Coca-Cola Company bill of sale had been forged.
Subsequent analysis of certain similar transfer documents had also indicated John Pemberton's
signature was most likely a forgery, as well, which some accounts claim was precipitated by his
son Charley.

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Origins of Bottling
The first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at the Biedenharn Candy
Company in 1891. The proprietor of the bottling works was Joseph A. Biedenharn. The original
bottles were Biedenharn bottles, very different from the much later hobble-skirt design of 1915
now so familiar.
It was then a few years later that two entrepreneurs from Chattanooga, Tennessee, namely;
Benjamin F. Thomas and Joseph B. Whitehead, proposed the idea of bottling and were so
persuasive that Candler signed a contract giving them control of the procedure for only one
dollar. Candler never collected his dollar, but in 1899, Chattanooga became the site of the first
Coca-Cola bottling company. Candler remained very content just selling his company's syrup.
The loosely termed contract proved to be problematic for The Coca-Cola Company for decades
to come. Legal matters were not helped by the decision of the bottlers to subcontract to other
companies, effectively becoming parent bottlers.
The first outdoor wall advertisement that promoted the Coca-Cola drink was painted in 1894 in
Cartersville, Georgia. Cola syrup is sold as an over-the-counter dietary supplement for upset
stomach.
Geographic spreads
Since it announced its intention to begin distribution in Burma in June 2012, Coca-Cola has been
officially available in every country in the world except Cuba and North Korea. However, it is
reported to be available in both countries as a grey import.
Coca-Cola has been a point of legal discussion in the Middle East. In the early 20th century, a
fatwa was created in Egypt to discuss the question of "whether Muslims were permitted to drink
Coca-Cola and Pepsi cola." The fatwa states: "According to the Muslim Hanefite, Shafi'ite, etc.,
the rule in Islamic law of forbidding or allowing foods and beverages is based on the
presumption that such things are permitted unless it can be shown that they are forbidden on the
basis of the Qur'an." The Muslim jurists stated that, unless the Qu'ran specifically prohibits the
consumption of a particular product, it is permissible to consume.

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Brand portfolio
This is a list of variants of Coca-Cola introduced around the world. In addition to the caffeine-
free version of the original, additional fruit flavors have been included over the years. Not
included here are versions of Diet Coke and Coca-Cola Zero; variant versions of those no-calorie
colas can be found at their respective articles.
Logo Design
The Coca-Cola logo was created by John Pemberton's bookkeeper, Frank Mason Robinson, in
1886. Robinson came up with the name and chose the logo's distinctive cursive script. The
typeface used, known as Spenserian script, was developed in the mid-19th century and was the
dominant form of formal handwriting in the United States during that period.
Robinson also played a significant role in early Coca-Cola advertising. His promotional
suggestions to Pemberton included giving away thousands of free drink coupons and plastering
the city of Atlanta with publicity banners and streetcar signs
History of Pepsi
Pepsi was first introduced as "Brad's Drink" in New Bern, North Carolina, United States, in 1893
by Caleb Bradham, who made it at his drugstore where the drink was sold. It was later labeled
Pepsi Cola, named after the digestive enzyme pepsin and kola nuts used in the recipe. Bradham
sought to create a fountain drink that was delicious and would aid in digestion and boost energy.
In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to a rented warehouse.
That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in six-ounce
bottles, and sales increased to 19,848 gallons. In 1909, automobile race pioneer Barney Oldfield
was the first celebrity to endorse Pepsi-Cola, describing it as "A bully drink...refreshing,
invigorating, a fine bracer before a race." The advertising theme "Delicious and Healthful" was
then used over the next two decades. In 1926, Pepsi received its first logo redesign since the
original design of 1905. In 1929, the logo was changed again.

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On three separate occasions between 1922 and 1933, The Coca-Cola Company was offered the
opportunity to purchase the Pepsi-Cola company, and it declined on each occasion.
Rise
During the Great Depression, Pepsi gained popularity following the introduction in 1936 of a 12-
ounce bottle. With a radio advertising campaign featuring the jingle "Pepsi-Cola hits the spot /
Twelve full ounces, that's a lot / Twice as much for a nickel, too / Pepsi-Cola is the drink for
you", arranged in such a way that the jingle never ends.
Pepsi encouraged price-watching consumers to switch, obliquely referring to the Coca-Cola
standard of 6.5 ounces per bottle for the price of five cents (a nickel), instead of the 12 ounces
Pepsi sold at the same price. Coming at a time of economic crisis, the campaign succeeded in
boosting Pepsi's status. From 1936 to 1938, Pepsi-Cola's profits doubled.
Pepsi's success under Guth came while the Loft Candy business was faltering. Since he had
initially used Loft's finances and facilities to establish the new Pepsi success, the near-bankrupt
Loft Company sued Guth for possession of the Pepsi-Cola company. A long legal battle, Guth v.
Loft, then ensued, with the case reaching the Delaware Supreme Court and ultimately ending in a
loss for Guth.
Marketing
From the 1930s through the late 1950s, "Pepsi-Cola Hits the Spot" was the most commonly used
slogan in the days of old radio, classic motion pictures, and later television. Its jingle (conceived
in the days when Pepsi cost only five cents) was used in many different forms with different
lyrics. With the rise of radio, Pepsi utilized the services of a young, up-and-coming actress
named Polly Bergen to promote products, oftentimes lending her singing talents to the classic
"...Hits the Spot" jingle.
The Buffalo Bisons, an American Hockey League team, were sponsored by Pepsi-Cola in its
later years; the team adopted the beverage's red, white and blue color scheme along with a

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modification of the Pepsi logo (with the word "Buffalo" in place of the Pepsi-Cola word mark).
The Bisons ceased operations in 1970 (making way for the Buffalo Sabres).
In 1975, Pepsi introduced the Pepsi Challenge marketing campaign where PepsiCo set up a blind
tasting between Pepsi-Cola and rival Coca-Cola. During these blind taste tests the majority of
participants picked Pepsi as the better tasting of the two soft drinks. PepsiCo took great
advantage of the campaign with television commercials reporting the results to the public.
In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy. By 2002, the
strategy was cited by Promo Magazine as one of 16 "Ageless Wonders" that "helped redefine
promotion marketing".
In 2007, PepsiCo redesigned its cans for the fourteenth time, and for the first time, included more
than thirty different backgrounds on each can, introducing a new background every three week.
One of its background designs includes a string of repetitive numbers, "73774". This is a
numerical expression from a telephone keypad of the word "Pepsi".
In late 2008, Pepsi overhauled its entire brand, simultaneously introducing a new logo and a
minimalist label design. The redesign was comparable to Coca-Cola's earlier simplification of its
can and bottle designs. Pepsi also teamed up with YouTube to produce its first daily
entertainment show called Pop tub. This show deals with pop culture, internet viral videos, and
celebrity gossip.
In 2009, "Bring Home the Cup" changed to "Team Up and Bring Home the Cup". The new
installment of the campaign asks for team involvement and an advocate to submit content on
behalf of their team for the chance to have the Stanley Cup delivered to the team's hometown by
Mark Messier.
Pepsi has official sponsorship deals with three of the four major North American professional
sports leagues: the National Football League, National Hockey League and Major League
Baseball. Pepsi also sponsors Major League Soccer. It also has the naming rights to Pepsi Center,
an indoor sports facility in Denver, Colorado. In 1997, after his sponsorship with Coca-Cola
ended, NASCAR driver Jeff Gordon signed a long-term contract with Pepsi, and he drives with

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the Pepsi logos on his car with various paint schemes for about 2 races each year, usually a
darker paint scheme during nighttime races. Pepsi has remained as one of his sponsors ever
since. Pepsi has also sponsored the NFL Rookie of the Year award since 2002.
Pepsi also has sponsorship deals in international cricket teams. The Pakistan cricket team is one
of the teams that the brand sponsors. The team wears the Pepsi logo on the front of their test and
ODI test match clothing.
In July 2009, Pepsi started marketing itself as Pepsi in Argentina in response to its name being
mispronounced by 25% of the population and as a way to connect more with all of the
population.
In October 2008, Pepsi announced that it would be redesigning its logo and re-branding many of
its products by early 2009. In 2009, Pepsi, Diet Pepsi and Pepsi Max began using all lower-case
fonts for name brands, and Diet Pepsi Max was re-branded as Pepsi Max. The brand's blue and
red globe trademark became a series of "smiles", with the central white band arcing at different
angles depending on the product until 2010. Pepsi released this logo in U.S. in late 2008, and
later it was released in 2009 in Canada (the first country outside of the United States for Pepsi's
new logo), Brazil, Bolivia, Guatemala, Nicaragua, Honduras, El Salvador, Colombia, Argentina,
Puerto Rico, Costa Rica, Panama, Chile, Dominican Republic, the Philippines and Australia. In
the rest of the world the new logo has been released in 2010.
The old logo is still used in several markets internationally, and has been phased out most
recently in France and Mexico. The UK started to use the new Pepsi logo on cans in an order
different from the US can. Starting in mid-2010, all Pepsi variants, regular, diet, and Pepsi Max,
have started using only the medium-sized "smile" Pepsi Globe.
Pepsi and Pepsi Max cans and bottles in Australia now carry the localized version of the new
Pepsi Logo. The word Pepsi and the logo are in the new style, while the word "Max" is still in
the previous style. Pepsi Wild Cherry finally received the 2008 Pepsi design in March 2010.
In 2011, for New York Fashion Week, Diet Pepsi introduced a "skinny" can that is taller and has
been described as a "sassier" version of the traditional can that Pepsi says was made in

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"celebration of beautiful, confident women". The company's equating of "skinny" and "beautiful"
and "confident" is drawing criticism from brand critics, consumers who do not back the "skinny
is better" ethos, and the National Eating Disorders Association, which said that it takes offense to
the can and the company's "thoughtless and irresponsible" comments. PepsiCo Inc. is a Fashion
Week sponsor. This new can was made available to consumers nationwide in March.
In April 2011, Pepsi announced that customers will be able to buy a stranger a soda at a new
"social" vending machine, and even record a video that the stranger would see when they pick up
the gift.
In March 2012, Pepsi introduced Pepsi Next, a cola with half the calories of regular Pepsi.
In March 2013, Pepsi for the first time in 17 years reshaped its 20-ounce bottle.
In November 2013, Pepsi issued an apology on their official Swedish Facebook page for using
pictures of Cristiano Ronaldo as a voodoo doll in various scenes before the Sweden v Portugal
2014 FIFA World Cup playoff game.
Pepsi’s Rivalry with Coca-Cola
According to Consumer Reports, in the 1970s, the rivalry continued to heat up the market. Pepsi
conducted blind taste tests in stores, in what was called the "Pepsi Challenge". These tests
suggested that more consumers preferred the taste of Pepsi (which is believed to have more
lemon oil, and less orange oil, and uses vanillin rather than vanilla) to Coke. The sales of Pepsi
started to climb, and Pepsi kicked off the "Challenge" across the nation. This became known as
the "Cola Wars".
In 1985, The Coca-Cola Company, amid much publicity, changed its formula. The theory has
been advanced that New Coke, as the reformulated drink came to be known, was invented
specifically in response to the Pepsi Challenge. However, a consumer backlash led to Coca-Cola
quickly reintroducing the original formula as Coke "Classic".
According to Beverage Digest's 2008 report on carbonated soft drinks, PepsiCo's U.S. market
share is 30.8 percent, while The Coca-Cola Company's is 42.7 percent. Coca-Cola outsells Pepsi

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in most parts of the U.S., notable exceptions being central Appalachia, North Dakota, and Utah.
In the city of Buffalo, New York, Pepsi outsells Coca-Cola by a two-to-one margin.
As of 2012, Pepsi is the third most popular carbonated drink in India with a 15% market share,
behind Sprite and Thums Up. In comparison, Coca-Cola is the fourth most popular carbonated
drink occupying a mere 8.8% of the Indian market share. By most accounts, Coca-Cola was
India's leading soft drink until 1977 when it left India after a new government ordered The Coca-
Cola Company to turn over its secret formula for Coke and dilute its stake in its Indian unit as
required by the Foreign Exchange Regulation Act (FERA).
In 1988, PepsiCo gained entry to India by creating a joint venture with the Punjab government-
owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture
marketed and sold Lehar Pepsi until 1991 when the use of foreign brands was allowed; PepsiCo
bought out its partners and ended the joint venture in 1994. In 1993, The Coca- Cola Company
returned in pursuance of India's Liberalization policy.
In Russia, Pepsi initially had a larger market share than Coke but it was undercut once the Cold
War ended. In 1972, PepsiCo Company struck a barter agreement with the then government of
the Soviet Union, in which PepsiCo was granted exportation and Western marketing rights to
Stolichnaya vodka in exchange for importation and Soviet marketing of Pepsi-Cola. This
exchange led to Pepsi-Cola being the first foreign product sanctioned for sale in the U.S.S.R.
Reminiscent of the way that Coca-Cola became a cultural icon and its global spread spawned
words like "coca colonization", Pepsi-Cola and its relation to the Soviet system turned it into an
icon. In the early 1990s, the term "Pepsi-stroika" began appearing as a pun on "perestroika", the
reform policy of the Soviet Union under Mikhail Gorbachev. Critics viewed the policy as an
attempt to usher in Western products in deals there with the old elites. Pepsi, as one of the first
American products in the Soviet Union, became a symbol of that relationship and the Soviet
policy. This was reflected in Russian author Victor Pelevin's book "Generation P".
In 1989, Billy Joel mentioned the rivalry between the two companies in the song "We Didn’t
Start the Fire". The line "Rock & Roller Cola Wars" refers to Pepsi and Coke's usage of various
musicians in advertising campaigns. Coke used Paula Abdul, while Pepsi used Michael Jackson.
Both companies then competed to get other musicians to advertise its beverages.

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In 1992, following the dissolution of the Soviet Union, Coca-Cola was introduced to the Russian
market. As it came to be associated with the new system and Pepsi to the old, Coca-Cola rapidly
captured a significant market share that might otherwise have required years to achieve. By July
2005, Coca-Cola enjoyed a market share of 19.4 percent, followed by Pepsi with 13 percent.
Pepsi did not sell soft drinks in Israel until 1991. Many Israelis and some American Jewish
organizations attributed Pepsi's previous reluctance to do battle to the Arab boycott. Pepsi, which
has a large and lucrative business in the Arab world, denied that, saying that economic, rather
than political, reasons kept it out of Israel.
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 Amsterdam, Chicago, Swiss and Tokyo stock
exchanges. PepsiCo has consistently paid cash dividends since the corporation was founded.
Various Collaborations of Coca-Cola and Pepsi

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COCA COLA
PEPSI
Mc'Dona
lds
Subway
Bugerkin
g
Wendy's
Chick-fil-
A
Sonic
Jack (in
the box)
Olive
Garden
Red
Lobster
Domino'
s Pizza
Taco Bell
Pizza Hut
Applebees
KFC
Golden
Corral
Panera
Arby's
IHope
Buffalo
Wild Wings
HOOTERS

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Various Takeovers by Coca Cola and Pepsi
COCA COLA HAS TAKEN OVER GIANTS LIKE
Coca cola, Coke diet, Fanta, Limca from Parle in 1993 for US$60 millions, coca cola re-entered
India that year after a prolonged absence, spurring a three-way cola war with Thumps up and
pepsi, Maza, Sprite, Thumps up, Kinley, Nesta, Schweppes,etc.
PEPSI HAS TAKEN OVER GIANTS LIKE
Pepsi, Lays, Tropicana, Quaker and Gatorade, this keeps PepsiCo back on track in the battle with
Coca cola.
Coca-Cola has more collaboration with popular fast-food restaurants worldwide but Pepsi has
focused on acquiring bigger but fewer deals. It just won the battle with Coca-Cola as they signed
a huge deal with Buffalo Wild Wings. The deal underscores the harsh realities of the $32.8
billion.
PepsiCo's Mountain Dew drinks may also be a good fit for Buffalo Wild Wings, which provides
customers with TV screens to watch sporting events. The restaurant chain hopes to benefit from
Pepsi's tie-ups with the NFL and Major League Baseball. In India, Pepsi and Coca-Cola have
almost equal tie-ups.
As seen above both the companies Coke & Pepsi have a number of products. Many of these
products are innovations but there are also many products which are brought out just as a
competitive product for the other companies. Some of these products that are brought in the
market by both the companies to compete against each other are as follows:
Coke – Price
Coke was a company ruling the markets before Pepsi entered. Earlier the price of coke was cost
based i.e. it was decided on the cost which was spent on making the product plus the profit &
other expenses. But after the emergence of other companies especially the likes of Pepsi, Coca-
Cola started with a pricing strategy based on the basis of competition. Nowadays more expenses
are spent on advertising my soft-drink companies rather than on manufacturing.

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Coke has brought in a revolution especially in Indian markets with the Rs. 5 pricing strategy
which was very famous. It was the first company to introduce the small bottle of Coke for just
Re.5. This campaign was very successful especially with the price conscious Indian consumers.
Pepsi – Price
Pepsi again decides it price on the basis of competition. The best think about the company Pepsi
is that it is very flexible & it can come down with the price very quickly. The company is
renowned to bring the price down even up to half if needed.
But this risk taking attitude has also earned Pepsi losses. Though lowering the price would attract
the customers but it would not help them cover up the cost incurred in production hence causing
them losses. This was the situation earlier but now Pepsi is a full-fledged & growing company. It
has covered all its losses & is now growing at a rapid rate.
Pepsi & coke place
Place is one of the four elements of marketing mix. Frequently there may be a chain of
intermediaries; each passing the product down the chain to the next organization, before it finally
reaches the consumer or end-user. This process is known as the 'distribution chain' or the
'channel’. So we say that a set of interdependent organizations involved in the process of making
a product available for the use or consumption is known as Distribution channel. Each of the
elements in these chains will have their own specific needs, which the producer must take into
account, along with those of the all-important end-user.
Promotion of Pepsi & Coke
Both the companies Pepsi & coke are famous for their promotions. The rivalry was first started
when Pepsi started with its blind taste tests known as the Pepsi Challenge. The challenge is
designed to be a direct response to critics who allege that Coca-Cola & Pepsi- Cola are identical
drinks, with no meaningful differences.
The challenge takes the form of a taste test. At malls, shopping centers & other public locations,
a Pepsi representative sets up a table with two blank cups, one containing Pepsi & one with
Coke. Shoppers are encouraged to taste both colas, & then select which drink they prefer. Then

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the representative reveals the two bottles so the taster can see whether they preferred Coke or
Pepsi.
The implication is that Pepsi tastes better than Coke, & thus consumers should purchase Pepsi. In
blind taste tests, more consumers prefer the taste of Pepsi to that of Coca-Cola. Because Coke
was the historical leader, more people expected that they'd prefer & select Coke. Their surprise at
picking Pepsi in the blind taste test (products were served in unmarked cups) helped change their
minds about which product they prefer. Capturing this on film, Pepsi turned this into a
memorable TV campaign that lasted many years. Also, ad-campaigns are put up on the television
by both the players. The following statistic just tells of much of share of ads on TV are captured
by these players.
“In India both Coca-Cola & PepsiCo have shown the door to older celebrity endorsers & are
betting big on emerging stars”
CELIBRITIES PLAYING PART IN TO THE SALES PROMOTION OF THE
PRODUCT:
CELIBRITIES OF PEPSI:
 AMITABH BACHHAN
 SHAHRUKH KHAN
 PRIETY ZINTA
 SACHIN TENDULKAR
 SAIF ALI KHAN
 SOURAV GANGULY
 RAHUL DRAVID

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 MOHD. KAIF
 ZAHEER KHAN
 HARBHAJAN SINGH
 YUVRAJ SINGH
 RANBIR KAPOOR
 VINDHU DARA SUNGJ
 DEEPIKA PADUKONE
CELIBRITIES OF COKE:
 SALMAN KHAN
 AISHWARYA RAI
 AAMIR KHAN
 VIVEK OBEROI
 BIPASHA BASU
 AKSHAY KUMAR
 IMRAN KHAN
 KALKI

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Pepsi Paradox
The Sweet Sorrow Coke won the cola wars because great taste takes more than a single sip. The
inspired Pepsi Challenge marketing campaign of the 1980s was the introduction to one of the
fundamentals of scientific inquiry for many students of marketing: the double-blind experiment.
In a world beset with soft drink advertising, how could you really know which soda you liked
best? Clearly what made sense was to put prejudice and branding aside, don a blindfold, and
focus on pure flavor.
It was one of the greatest marketing coups of all time. In the late 1970s and early 1980s, Pepsi
steadily gained on Coke in terms of market share. Characters in the ads always picked Pepsi, of
course, but so did most people who tried it in real life—the sweeter taste was more appealing. By
1983, Pepsi was outselling Coke in supermarkets, leaving Coke dependent on its larger
infrastructure of soda machines and fast food tie-ins to preserve its lead. That was a success in its
own right. But even better, Pepsi forced Coke into an infamous business blunder. Faced with
eroding market share, Coke began a series of its own internal taste tests aimed at developing a
superior product. Thus was born the dread New Coke, a sweeter cola reformulated to best both
Pepsi and the classic formulation of Coke in blind taste tests.
The backlash was fast and furious, with over 400,000 letters of complaint pouring in to the
company. Despite declining market share, Coke was still by far the market leader over Pepsi—
and the company’s millions of loyal customers weren’t looking for a new flavor. Pepsi recorded
the fastest year-on-year sales growth in the company’s history during New Coke’s first month,
while a consortium of Coca-Cola bottlers decided to sue the company for changing the product.
But then Coca-Cola’s senior leadership did something tough: They admitted that they were
wrong. And they executed a strategic pivot that’s kept them on top of the rivalry ever since. They
reintroduced the original formula under the name “Coca-Cola Classic” and sold it in parallel with
New Coke for a while. Over time, the “new” Coke was phased out, and Coca-Cola Classic
became just, well, Coke once again—a product so culturally iconic that across a significant
swath of the United States it serves as a generic term for what decent people call “soda” and
Midwesterners call “pop.”

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For the past 25 years, Coke advertising has focused on the brand first and foremost. The soda is a
shared experience that’s supposed to remind you of friendship, family, adorable bears, and other
fuzzy associations. And it’s worked great. According to industry statistics compiled by Beverage
Digest, Coke owns 17 percent of the American market for carbonated soft drinks. The next most
popular choice is Diet Coke with 9.4 percent. Pepsi languishes in third place at 8.9 percent.
Though it’s the flagship brand of a diverse beverage and snack company with over $65 billion in
revenue, Pepsi is a definite loser in the popularity sweepstakes.
Pepsi is a quintessential example of a “challenger brand” that’s seeking an edge against a
dominant, iconic firm. Marketing has often emphasized the idea of Pepsi as newer or more
youthful—“the choice of a new generation”—as a way of turning its second-place status into an
advantage. But Pepsi works as such a great example of a challenge because despite decades of
efforts, none of its different slogans or logos or celebrity endorsements has ever put it in first
place. Works as such a great example of a challenge because despite decades of efforts, none of
its different slogans or logos or celebrity endorsements has ever put it in first place.
It’s a frustrating place for the company to be, because the Pepsi Challenge wasn’t just an ad
gimmick. It really is true that blind taste tests suggest that people like it better than Coke. Yet
people keep buying more Coke. One theory of this “Pepsi Paradox,” described by Lone Frank in
Scientific American, is that we should take the Pepsi Challenge at face value. Coke’s victory is a
triumph of branding over flavor, and a clear sign that consumer companies should invest lots of
money in advertising. Researchers intrigued by the paradox have suggested that Coke’s ads
actually rewire the human brain.
When Read Montague of Baylor College Medicine performed a version of the Pepsi Challenge
with subjects hooked up to an fMRI machine, he found something interesting. In blind taste tests,
most people preferred Pepsi, and Pepsi was associated with a higher level of activity in an area of
the brain known as the ventral putamen, which helps us evaluate different flavors. By contrast, in
a nonblind test, Coke was more popular and was also associated with increased activity in the
medial prefrontal cortex. Montague’s interpretation: This prefrontal activity represented the
higher-thinking functions of the brain associating the soda with ad campaigns and, in effect,
overriding the taste buds.

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But perhaps this is wrong. Felix Salmon notes that in blind taste tests of wine, people almost
invariably prefer sweeter varieties. This hardly means sweeter wines are always better—and
Pepsi is sweeter than Coke. On this view it’s actually Pepsi that scored the marketing triumph, by
convincing people that a blind taste test represents the true mark of soda flavor. Likewise, the
idea that Coke triumphs because of ads rather than flavor has trouble explaining the failure of
New Coke. New Coke had the same ads behind it as old Coke, but was specifically engineered to
beat Pepsi in taste tests.
Consumer Preferences
The consumer market amounts to a total of 6.3 billion people, and thus there is great demand for
an enormous variety of goods and services, especially as consumers differ from one another in
that of age, gender, income, education level, and tastes. The reason why consumers buy what
they do is often deeply rooted in their minds, consequently consumers do not truly know what
affects their purchases as “ninety-five percent of the thought, emotion, and learning [that drive
our purchases] occur in the unconscious mind- that is without our awareness” (Armstrong,
2005).Consumers’ purchase process is affected by a number of different factors, some of which
marketers cannot control, such as cultural, social, personal, and psychological factors. However,
these factors must be taken into consideration in order to reach target consumers effectively.
• Cultural factors
Each cultural group can be divided into groups consisting of people with common life
experiences and situations, also known as subcultures (Kotler et al. 2005), such as nationality,
racial groups, religion, and geographical areas. The third cultural factor is social class, which is
constituted upon among other variables: Occupation, income, education, and wealth (Blackwell,
2001)
• Social factors
Social grouping that is collected of family, communal roles and position, and small groups.
Some of these groups have a direct influence on a person, i.e. membership groups, groups that a

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person can belong to (Kotler et al. 2005), and reference groups which “serve as direct (face-to-
face) or not direct evaluation points or suggestion in shaping attitudes or beliefs of persons”
(Armstrong et al. 2005, p. 148). However, some people are affected by groups in which they do
not belong to; these reference groups include inspirational groups, groups that a person desires to
belong to and a fan’s admiration for an idol, etc. (Ibid).Finally, a wife, husband or a child have
strong influences on a consumer and thus the family is the most vital consumer buying
organization in society (Kotler et al. 2005).
• Personal factors
A person’s lifestyle forms his/her world and the way he/she decides to act, thus a person’s
activities, interests, and opinions constitute their lifestyle, as well as affecting the choice of
products (Armstrong et al. 2005). Moreover, all people are individual; hence have a unique
personality of different characteristics, which is often portrayed with traits, such as self-
confidence, dominance, sociability, autonomy, defensiveness, adaptability, and aggressiveness
(Blackwell et al. 2001).
• Psychological factors
Competition between PepsiCo and Coca-Cola brands As a matter of fact; when people
experience new things, changes take place in their behavior, i.e. they learn new things when they
take action. As a result, beliefs and attitudes are acquired and hence affect the buying behavior
(Armstrong et al. 2005).
Target Group
Companies must identify those parts of the market that they can best serve, and thus build the
right relationship with the right customers that this is also known as target marketing and is the
evaluation process marketplace segment’s pleasant appearance and choosing one or more
segments to go into (Armstrong et al. 2005).
Age
Seeing as consumers’ needs and interests for products vary depending on age, companies employ
age segmentation, offering dissimilar goods or by means of diverse marketing approaches for

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altered age groups(Armstrong, 2005). Blackwell et al. (2001) divide the dissimilar age groups
into the following: children, teenagers, young adults, and baby boomers, thus the thesis will
concentrate on teenagers, young adults, and baby boomers. Teenagers have a variety of needs,
such as a need for belonging, independence, approval, and responsibility, as well as having the
need for experimentation (Solomon, Bamossy, Askegaard, & Hogg, 2007).
Teenagers are increasingly given the task of buying products for the family since they not only
have more spare time but also enjoy shopping more than their parents do. As a result, marketers
are targeting their ads primarily at teenagers. In order to gain teenagers’ attention more
effectively, advertising campaigns must be honest, have clear messages, and use humour.
Moreover, teenagers tend to be fickle and are likely to switch brand preference quicker than any
other age group, as they have a high need to be accepted by their friends (Blackwell et al. 2001).
Finally, teenagers are “easier targets, because they have grown up in a culture of pure
consumerism. Because of this, they are way more tuned into media because there is so much
more media to be tuned into” (Bush, Martin, & Bush, 2004).Young adults who they are18 to 34-
year-olds are worry about “grown up” issues, and live their lives for the “moment” rather than
for “tomorrow” (Ibid).
Brand
Brand image takes place when brand associations held in the mind of consumers are conveyed
onto a consumer’s perception about a brand. These associations can either be developed from
direct experience with the product, from the information communicated by the company, or from
previous associations held about the company and origin, etc (Martinez & Pina, 2003).
• Brand Equity
A set of assets and liabilities to a brand’s name and symbol that adds to or subtracts from the
value provided by a product or service to a firm and/or a firm’s customers(Aaker, 2008). These
assets and liabilities can be grouped into four categories: brand loyalty, brand awareness,
perceived quality, and brand associations.
• Brand Loyalty

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A “form of repeat purchasing behavior reflecting a conscious decision to continue buying the
same brand” is brand loyalty (Solomon, et al., 2007). Moreover, in order for brand loyalty to take
place, customers must have a positive attitude towards a brand, as well as being involved in
repeated buying.
• Brand Awareness
Brand awareness entails that recognition is communicated onto a brand, which allows consumers
to identify with the brand product, and thus providing companies with constant competitive
advantage (Aaker, 2008).
• Brand Association
Brand association can either be linked directly or indirectly with a customer’s thought about a
brand. Those associations that have the clearest significance are built upon product attributes,
such as physical product characteristics and non-material product characteristics (Armstrong et
al. 2005), and customer benefits - “the desirable consequences consumers seek when buying and
using products and brands” (Peter & cop., 1994) which provide customers with a motive to buy
the product, consequently resulting in brand loyalty (Aaker, 2008)
• Brand positioning
Positioning refers to “consumers’ perception of a brand as compared with that of competitors’
brands, that is, the mental image that a brand, or the company as a whole, evokes” (CZINKOTA,
DICKSON, & DUNNE, 2001).
The language used in advertising campaigns
When advertising across borders, advertisers have to decide upon whether or not to use the
native language in the campaign. There are several reasons that drive companies to use foreign
languages in advertisements, such as financial- and image-related reasons. Advertising costs are
reduced when using existing foreign language television commercials rather than producing new
commercials into the native language. Furthermore, in some situations, a product’s image

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benefits from using a foreign language as it is more effective (Wang, 2006).
In non-English speaking countries, English is the most frequently used foreign language in
advertisements. A global marketing company can deploy an English-language advertisement in
numerous countries worldwide seeing as most countries regard English as their first foreign
language. Additionally, as a translation of English to a local language is not absolutely required,
as money is saved when using English in a global campaign (Ibid).
Sponsorship
Previous research has shown that although various definitions of sponsorship exist, they all
certify that sponsorship is primarily a commercial activity, where the sponsoring company
attains the right to promote an association with the sponsored object in return for benefit
(Polonsky, 2001). More specifically, (Javalgi, 1994)claimed that “sponsorship is the
underwriting of a special event to support corporate objectives by enhancing corporate image,
increasing awareness of brands, or directly stimulating sales of products and services”.
Sponsorship activities are used for a number of reasons, but three of the most common objectives
comprehend overall corporate communications, which include building and strengthening brand
awareness, brand image, and corporate image(Gwinner, 1999). More specifically, strategies that
are aimed at increasing brand recognition, are typically employed using a wide range of
advertising tools which are designed to expose the sponsoring brand to as many potential
customers as possible(Cornwell, 2001).
However, certain factors such as the sponsor industry and company size influence the choice of
sponsorship activity and thus the objectives vary between companies. For example,
manufacturers often look for extensive publicity opportunities and media coverage, whereas
service sponsors are more motivated to enhance employees’ morale (Bjorn, 2003).

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Celebrity Endorsement
Celebrity endorsement has developed tremendously in the past decades and has been acclaimed
as “a ubiquitous feature of modern marketing” (Hsu, 2002).According to (McCracken, 1989) a
celebrity endorser is “any individual who uses his or her public recognition on behalf of a
consumer good by appearing with it in an advertisement”.
Based on the notion that celebrities are successful spokespersons for a company’s brand or
product, in that they deliver a company’s advertising message and persuade consumers to
purchase the sponsored brand, a substantial amount of money is annually spent on celebrity
endorsement. Accordingly, it has been confirmed by scholars and marketers that celebrity
endorsement is a very effective marketing tool, as celebrities have considerable influence on
consumers’ attitudes and purchase intentions (Hsu et al. 2002).
Advantages of celebrity endorsement include its ability to differentiate an advertisement from
surrounding advertisement clutter by providing the product(s) with instant character and appeal.
Furthermore, celebrities who are particular popular and recognized worldwide, have the capacity
to enter international markets, and thus go beyond cultural border (Erdogan, 1999).
However, a risk with celebrity endorsement is that a celebrity’s image may have a negative
impact on the brand or product that he/she endorses as a result of negative news or publicity, or
simply not appealing to everyone, seeing as a celebrity’s image often transmits itself to the
endorsed brand, and accordingly the brand’s image transmits itself to the endorser (Till, 1998).
Overview of Indian Market- Past
• In the year 1991, the Indian Government adopted Economic Liberalization Policy
• “Cold Drinks” as popularly known in India were an Urban phenomenon and the favorites (soda
based) were Campa Cola, Gold Spot, Limca and Thums Up
• Pepsi entered in the Indian Market as Pepsi Foods Ltd. and was known as Lehar Pepsi
• Coke tried to re-enter* in 1990 by merging with Godrej but was denied; merged with Britannia

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Industries India Ltd.
• July 1993 Parle sold its brands and plants to Coke *Coke was present in India from 1970’s, but
was banned in 1977 under FERA.
Overview of Indian Market- Present
•Today the Indian Market for Carbonated Drinks is worth more than Rs.17000 crores.
•The present scenario of the carbonated drinks market is duopoly* situation.
•Although in every place there are local competitors and there is a huge unorganized flavored
water market.
•As far as the carbonated drinks are concerned there are only two brands (as per the Market
Share). – Coke (57.8%) – Pepsi (35.6%).
• A duopoly is a competitive situation where there are two competitors, normally of roughly
equal size.
Coca- Cola Milestones
•1886: Founded by John Pemberton
•1887: Registered as trademark.
•1895: Sold in every state & territory in US.
•2003: Headquartered in Atlanta with divisions & local operations in over 200 countries
worldwide i.e. 70% income from outside US.
•1970s: Entered Indian Market for the 1st time
•1977: Exited the Indian Market
•1993: Re-entry in India
•1993-2003: Invested more than US $1b in India- top international investor.
•2003-2008: No. 1 soft drink Company in India.

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Pepsi Co. Milestones
• 1899: Founded by Caleb Bradham
• 1902: Applied for trademark in US
• 1923: Declared bankrupt & assets sold
• 1985: Gained entry in India
• 1988* - Succeeded with Pepsi Food India Limited Project as a joint Venture with Punjab Agro
Industrial Corporation & Voltas India Limited.
• 1991: Marketed & sold as Lehar Pepsi.
• 1994: Bought out its partner and become a fully owned subsidiary.
• Today it is the No. 2 soft drink company in India.
Coca- Cola Products in India
• Coke
• Diet Coke
• Thums Up
• Sprite
• Limca
• Maaza
• Fanta
• Georgia (Coffee)
• Kinley (Drinking Water)

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Pepsi Co. Products in India
• Pepsi
• Diet Pepsi
• 7 Up
• Miranda
• Mountain Dew
• Tropicana Juices
• Lays, Cheetos & Ruffles (Snacks)
• Quaker Oats
• Aquafina (Drinking Water)

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SWOT Analysis: Coke
STRENGTHS
•Well established Global Brand
•Prior knowledge of Indian market (1958-1977)
•Tie up with local players (Britannia Ltd)
•Strong Fiscals to acquire local business (bottling plants/local brands).
WEAKNESS
•Improper appreciation of existing Indian Laws at entry time (in case of acquisition, 49% sale of
equity to local partners mandatory)
OPPORTUNITIES
• Many successful brands to pursue
•Advertise its less popular products
•Buy out competition.
•More Brand recognition
THREATS
• Strong Competition from Pepsi and other local brands due to late entry
• Stricter legal framework (49% equity to Indian Investors)
• Decreasing popularity of carbonated drinks in India.

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SWOT Analysis: Pepsi Co.
STRENGTHS
•International Brand and Global Experience
•Benefitted by learning from Coca-Cola mistakes in India pre 1977
•Willingness to comply with stringent Indian Laws
WEAKNESS
•Lack of Experience in Indian market
OPPURTUNITIES
•Food division should expand
•Noncarbonated drinks are the fastest-growing part of the industry
•There are increasing trend toward healthy foods
•Focus on most important customer trend - "Convenience".
THREATS
•Unfriendly political environment and Indian legal framework
•Competition from local manufacturers
•Low demand in Indian market for carbonated drinks
•Poor infrastructure especially in rural India.

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CHAPTER 4
4.1 RESEARCH METHODOLY
Research Method
The research method used for the research is:
Survey Method
According to Kotler, Armstrong, Ang, Leong, Tan, Tse, (2005, page 119), Survey research is the
most widely used method to collect primary data; this approach is best suited for gathering
detailed information. Survey research is very flexible; it can help to obtain many different kinds
of information in many different situations. Researchers can select target groups for asking
questions about their knowledge, attitudes, preferences and behavior.
In order to gather information regarding the marketing strategy of Coca Cola and Pepsi in India,
a survey questionnaire will be used to collect data due to its flexible property of providing
different kinds of data i.e. both qualitative and quantitative.
 Define Universe
Population is a whole set of universe. It refers to collection of human beings and a group of
individuals or items that share one or more characteristics from which data can be gathered and
analyzed.
For this study I have taken survey of 50 people from – Mumbai city.
 Defining Sample
A sample is a subset of population. A small proportion of population was selected for analysis.
By observing the characteristics of sample, one can make certain interferences about the
characteristics of population from which it is drawn.

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Data collection methods: -
There are many methods that are used to select samples.
 Questionnaire
 Checklist
 Interview
 Aptitude test
 Achievement test
 Intelligence test
 Personality test
 Rating scale
 Attitude test
The data collection method used for gathering data for this research of Market research regarding
Coca Cola and Pepsi in the Indian market was a questionnaire (It is a survey method in which a
set of questions are given to the respondents to fill in, in order to collect data)form. A
questionnaire in a web based form is being used, (Google forms) containing of all close ended
questions with set responses is being used.
Perks of using a questionnaire in a web based form are that it is relatively cheap, covers a large
geographical area and takes comparatively less time than other data collection methods.
Questionnaire design
The questionnaire mainly consisted of all close ended questions to find the responses suiting the
respondents from the given choices in order to find the exact information required and to
minimize the time required to fill in the survey, with one rating scale question with rating
ranging from (1 to 5), in order to collect quantitative data associated with the research along with
qualitative, also rating scales helps to find the respondents perceptions related to the questions
asked.
Sample size
The sample size chosen for this research consist of 50 people. The questionnaire consisted of
19 questions which was checked by the guide.