RESEARCH PROJECT REPORT ON

MARKET ANALYSIS OF COCA-COLA AS COMPARE TO PEPSI CO.

In the fulfillment For the Requirement of Two Year Full time Master of Business Administration
(SESSION 2011-2012)

SUBMITTED AT

(UNIVERSITY SCHOOL OF MANAGEMENT) SUBMITTED TO: Ms. NIRMALA CHAUDHARY ASSOCIATE PROFESSOR MBA USM, KUK. SUMBMITTED BY:JASBEER KUMAR ROLL N0: 90 M.B.A. (FINAL) 4th SEM. USM, KUK.
Page | 1

CERTIFICATE

This is to certify that the project study entitled Market Analysis Of Coca-Cola As Compare To PepsiCo. is a bonafied work carried out by Jasbeer Kumar, student of our two year full time MBA program, being run by the U.S.M., Kurukshetra University, Kurukshetra, under my supervision. This is further to certify that this project is an original piece of work, aside meeting the determined standards as warranted for a project study. I, therefore, recommend that the project report to be accepted and forwarded for its external evaluation.

Signature Ms. Sunidhi Jain Assistant Professor

Signature Dr. Nirmala Chaudhary Professor

Page | 2

PREFACE

Management ideas without any action based on them mean nothing that is why practical experience is vital for any management student. Theoretical studies in the classroom are not sufficient to understand the functioning climate & the real problems coming in the way of management of men, material, machine & money. So, practical exposure are indispensable to such course. Thus practical experience acts as a supplement to the classroom studies. It offers an exposure to real practical of management in various organizations. This dissertation deals with the various Foreign Direct Investment trends and analysis so as to find out the perspectives relating to that. It is my fortune to do dissertation. I learnt a lot of new things which could never been learnt from theory classes. This dissertation of my work is a presentation of my work. In the forth coming pages an attempt has been made to present a comprehensive report concerning different aspect of my work dissertation. The overall knowledge gained by me will reflect in the report itself.

Page | 3

DECLERATION

I Jasbeer Kumar, hereby declare that this project entitled Market Analysis Of

Coca-Cola As Compare To PepsiCo. submitted by me for award of MBA

degree of Kurukshetra University, Kurukshetra, is the original work conducted by me and data provided in the study is authentic to the best of my knowledge.

This report is not submitted to any other Institute or University for award of MBA Degree.

Jasbeer Kumar

Page | 4

ACKNOWLEDGEMENT
It is indeed a great pleasure and privilege for us to present MARKET ANALYSIS OF COCACOLA AS COMPARED TO PEPSI in KURUKSHETRA in year 2011 2012.

We take immense pleasure in thanking to Ms. Nirmala Chaudhary for giving us an opportunity to do this DISSERTAION REPORT and for their valuable suggestion and guidance. We also wish to thank library SIR for allowing us to use the library and for helping colleting books and magazines. We also extend our thanks to all those who directly or indirectly involved in our project completion. At last we would like to thanks once again to our faculty Ms. Nirmala Chaudhary whose sincere support has enable us at each and every step and his experience always give us the right direction to achieve our goal.

Ms Nirmala Chaudhary Associate Professor M.B.A. U.S.M. K.U.K.

Page | 5

TABLE OF CONTENTS

Declaration Acknowlgement Executive Summary CHAPTER 1: 1.Introduction To Project

1.2 Literature Review

CHAPTER 2: 2. Introduction To Soft Drinks Market

2.1 History Of Soft Drinks

CHAPTER 3:
3. Introduction To Soft Drinks Market In India

CHAPTER 4:
4. Company Profile (Coca-Cola) 4.1 About The Company 4.2 History Of The Company 4.3 Partners 4.4 Coca-Cola In India 4.5 Mission, Vision & Values 4.6 Product Profile Of The Company 4.7 Product Mix 4.8 Prices Of Products
Page | 6

 CHAPTER 5: 5. Company Profile (PepsiCo.)

5.1 About The Company 5.2 History Of The Company 5.3 PepsiCo. In India 5.4 Vision, Mission & Values 5.5 Products Profile Of The Company

CHAPTER 6:
6. Comparative Market Analysis Of Coca-Cola & PepsiCo. 6.1 Products 6.2 Coke & Pepsi In Indian Market 6.3 Changing logo Of Both Brands 6.4 Comparison Of Slogans 6.5 Market Strategy 6.6 Market Share 6.7 Brands Value 6.8 Advertisements 6.9 Distribution System 6.10 Rating On Brand Trust Rank 6.11 Growth Of Both Brands In India

CHAPTER 7:
7. Research Methodology 7.1Problem Defining 7.2 Statement Of The Problem 7.3 Research Design 7.4 Sample Design 7.5 Sample Unit
Page | 7

7.6 Sample Size 7.7 Location 7.8 Data Collection 7.9 Statistical Tool Used 7.10 Scope Of The Study

CHAPTER 8:
8. Data Analysis And Interpretation 8.1 SWOT Analysis

CHAPTER 9:
9. Findings And Recommendations Limitations Of The Study Conclusion Bibliography Annexure

Page | 8

EXECUTIVE SUMMARY
Market provides a key to gain actual success only to those brands which match best to the current environment i.e." imperative" which can be delivered what are the people needs and they are ready to buy at the right time without any delay. It is perfectly true but this also depends on availability of good quality products and excellent taste and services which further attract and add a golden opportunity for huge sales.

This also depends on the good planning approach and provide ample opportunity plus sufficient amount of products for sales in the coming next financial year.

This survey report introduces comparative study of consumers preferences for COCA COLA and PEPSI. After going through a detail analysis of market behavior and future prospect, it may also provide an opportunity to COCA COLA and PEPSI to frame a good future plan to satisfy maximum needs of the customers and established its guiding role in the market of Kurukshetra CITY in particular and through out the country as a whole. The study report will also provide an opportunity to delineate its market potential business areas, products & services are to be offered by the company to the customers.

This study report also provides the various factors affecting the services. Marketing Division of COCA COLA and PEPSI has to keep in mind various factors specially while preparing a plan for marketing its product or services. Detail description along with analysis of surveyed data is being presented in this report.
Page | 9

CHAPTER: 1

INTRODUCTION TO THE PROJECT

There is a huge fight between the two soft drinks giant Coca-Cola (Coke) and PepsiCo (Pepsi) to grab a large part of the Indian markets. The main reason, well the growing Indian middle class and the huge disposable income they have and also the increasing consumption of soft drinks by Indians. Pepsi and Coke both have brands attacking each other if Coke introduces one brand then Pepsi will bring another brand to fight it and vice a versa. Though Coke is this huge giant and Pepsi might be just a fly in front of it but the fly troubles and is much capable of fighting back and also winning. The main area where they can capture each others market is in the network of distribution channels they use with restaurant chains, pan walas, hotels and eateries to compete with each other. It is to these sellers where these two giants are vying for in order to capture a larger market share and trounce the other and that is why the project on the satisfaction of these members to see who is winning the competition. According to industry experts, the market for carbonated drinks in India is worth US$ 1.5 billion while the juice and juice-based drinks market accounts for US$ 0.25 billion. Growing at a rate of 25 per cent, the fruit-drinks category is one of the fastest growing in the beverages market. Sports and energy drinks, which currently have a low penetration in the Indian market, have sufficient potential to grow.

Page | 10

The market for alcoholic beverages has been growing consistently. 'The Future of Wine', a report on the state of the wine industry over 50 years, suggests that the market for wine in India was growing at over 25 per cent per year.

CHAPTER:2

INTRODUCTIONS TO THE SOFT DRINKS MARKET

Introduction To The Soft Drinks Market

The main production of soft drink was stored in 1830s & since then from those experimental beginning there was an evolution until in 1781, when the worlds first cola flavoured beverage was introduced. These drinks were called soft drinks, only to separate them from hard alcoholic drinks. This drinks do not contains alcohol & broadly specifying this beverages, includes a variety of regulated carbonated soft drinks, diet & caffeine free drinks, bottled water juices, juice drinks, sport drinks & even ready to drink tea/coffee packs. So we can say that soft drinks mean carbonated drinks. Today, soft drink is more favourite refreshment drink than tea, coffee, juice etc. It is said that where there is a consumer, there is a producer & this result into completion. Bigger the player, the harder it plays. In such situation broad identity is very strong. It takes long time to make broad famous. Coca Cola has its beginning in 1981 & since then has been one of the three most dominate players in this soft drink industry. The name soft drink was given by Americans as against hard drink, which is mainly alcoholic. So in general terms non-alcoholic drinks are considers as soft drink. Soft drink consists of flavour base, sweetener and carbonated water

2.1 History of Soft Drinks

1798 The term "soda water" first coined.

Page | 11

1810 First U.S. patent issued for the manufacture of imitation mineral waters. 1819 The "soda fountain" patented by Samuel Fahnestock. 1835 The first bottled soda water in the U.S. 1850 A manual hand & foot operated filling & corking device, first used for bottling soda water. 1851 Ginger ale created in Ireland. 1861 The term "pop" first coined. 1874 The first ice-cream soda sold. 1876 Root beer mass produced for public sale. 1881 The first cola-flavored beverage introduced. 1885 Charles Aderton invented "Dr Pepper" in Waco, Texas. 1886 Dr. John S. Pemberton invented "Coca-Cola" in Atlanta, Georgia. 1892 William Painter invented the crown bottle cap. 1898 "Pepsi-Cola" is invented by Caleb Bradham. 1899 The first patent issued for a glass blowing machine, used to produce glass bottles. 1913 Gas motored trucks replaced horse drawn carriages as delivery vehicles. 1919 The American Bottlers of Carbonated Beverages formed. 1920 The U.S. Census reported that more than 5,000 bottlers now exist. Early 1920's the first automatic vending machines dispensed sodas into cups. 1923 Six-pack soft drink cartons called "Hom-Paks" created. 1929 The Howdy Company debuted with its new drink "Bib-Label Lithiated Lemon-Lime Sodas" later called "7 up" Invented by Charles Leiper Grigg. 1934 Applied colour labels first used on soft drink bottles, the colouring was baked on the face of the bottle. 1952 The first diet soft drink sold called the "No-Cal Beverage" a ginger ale sold by Kirsch. 1955 Coke enters for the first time into Indian markets 1957 The first aluminium cans used.
Page | 12

1959 The first diet cola sold. 1962 The pull-ring tab first marketed by the Pittsburgh Brewing Company of Pittsburgh, PA. The pull-ring tab was invented by Alcoa. 1963 The Schlitz Brewing Company introduced the "Pop Top" beer can to the nation in March, invented by Ermal Fraze of Kettering, Ohio. 1965 Soft drinks in cans dispensed from vending machines. 1965 The reseal able top invented. 1966 The American Bottlers of Carbonated Beverages renamed The National Soft Drink Association. 1970 Plastic bottles are used for soft drinks. 1973 The PET (Polyethylene Terephthalate) bottle created. 1974 The stay-on tab invented Introduced by the Falls City Brewing Company of Louisville, KY. 1977 Coke leaves India in order to protect its secret about the ingredients used in its soft drink 1979 Mello Yellow soft drink is introduced by the Coca Cola Company as competition against Mountain Dew. 1981 The "talking" vending machine invented. 1989 Pepsi Enters into India 1993 Coca Cola re-enters into India after the easing of economic norms

Page | 13

CHAPTER:3
INTRODUCTION TO THE SOFT DRINK MARKET IN INDIA
Introduction To The Soft Drink Market In India
Although the beverage industry has been in existence for quite some time now, yet it is still at an infant stage considering its size and place in the market. India stands at third number in the consumption of beverage, behind United States and China. It accounts for almost 10 per cent of global beverage consumption. Today, it is being looked as a country that offers the greatest potential, even more so than China. This year, the beverage industry in India is being estimated to grow at 17% at Compounded Annual Growth Rate (CAGR).

Non-alcoholic Drinks Company actually sees India as a potential market because of the kind of summer that India sees. The Coca-Cola Co reported its profit climbed 43 per cent in the second quarter to two billion dollar, getting a boost from double-digit unit case volume growth. The Indian CSD (carbonated soft drinks) market stands at 1.2 billion dollar and the fruit-based beverages and bottled water at 600 million dollar and 300 million dollar, respectively. The wine industry in India is one of the most sought after market at present and all eyes are on it. The budget announced by the finance minister is not being seen as very advantageous to the wine industry as it did not announce any significant or major benefits all round for it. It was expected to make wine sector a part of the food processing industry, which would lead to uniformity in the state-wise tax structures. The wine industry in India needs investment to grow to its rightful size of about 30 million cases and it is possible only with lower production and marketing costs, taxes. As far as the beer industry is concerned, age-old excise policy on liquor and multiform regulations are hitting the beer industry. The Punjab Excise Policy of 1995, which inadvertently discourages breweries, while encouraging distilleries, has put the brewers in the country in a total mess. The beer industry is clearly at a disadvantage. Repeated pleas have failed to bang the
Page | 14

governments deaf ear. Apart from this, the government needs to make a uniform age limit to consume alcohol. Its different in different states. While an 18-year old guy can consume alcohol in Goa, you need to be at least 21 to do the same in Mumbai. In Punjab, its even higher where it is kept at 25 years. The National law is 21 years. The budget was expected to cut down the taxes on beer that is more than most of the countries in the world. While the average global taxes on price of the beer are 33.6 per cent, in India its about 49 per cent and therefore, affordability of beer in the country is lowest compared to world standards.

However, the impact on non-alcoholic industry has been different. For e.g., packaged coconut water will be cheaper by rupees three for 200ml as the retail prices have been reduced from Rs 15 to Rs 12, thanks to the abolition of a 16 per cent excise duty. The finance minister has also totally withdrawn the 16 per cent excise duty on tea and coffee mixes and puffed rice. India (1002 Mn kgs), China (990 Mn kgs), Sri Lanka (318.7 Mn kgs) and Kenya (286.0 Mn kgs) accounts for 80 percent of the worlds tea production. In May, tea production in India rose to 71,374 tonnes from 70,267 tonnes a year before. However, output has declined to 215.84 million kg till May this year from 240.24 million kg last year.

The budget has also made dairy majors like Amul, Mother Dairy and Nestle happy because the customs duty on bactofuges, that separates bacteria from milk, and increases the Punjab Excise Policy of 1995 shelf life of milk, has been abolished. On a bactofuge that costs between Rs 1.5 two crore, the companies will benefit rupees eight to Rs 10 lakh a piece.

More and more companies are entering and creating niche for themselves in the Indian budget industry, the latest being the fast moving consumer goods (FMCG) company Dabur. It is coming up with a new fruit flavored beverage called Real Burst.

Indian soft drinks story is old since the time of Rajas Maharaja as they enjoyed several soft drink like lassie, jaljeera, sharbat and tea etc. Now the Indian people have changed their consumption pattern into soft drinks. According to Pepsi philosophy, its the madness that encourages executive to think, to conjure up those creative tactics to knock the fizz out. The warriors are face to face once again here in India with different strategies and tactics to attack the
Page | 15

rival. Coca cola is focusing upon the joint ventures with the existing bottlers to enhance its control on manufacturing in marketing of its products range and attain the equality standards of its class. Countering it Pepsi has taken the battle in its own hands by floating as investment of $95 billion to set Pepsi Co. India holdings as a subsidiary for company owned bottling operation (COBO). Both the companies are following different path to reach the same destiny i.e. fetch the bigger portion of aerated soft drink market in India. Serving annually against the world average of 80 bottles a month. Therefore, they are putting in their best effort to woe the Indian consumer who has tea, coffee etc. that is why water tea, coffee and nimbu pani are considered as the competitor of soft drinks. Cola is well set with its 53 bottling sites throughout the country giving it an edge, over competition by processing a well built and distribution set up. On the other hand Pepsi with 2 more years in India has been able to set an image of winner this time in India and get the pulse of Indian soft drink market. The soft drink giants are leaving no stone unturned and her for the long-terms. Coca Cola has been penetrating the market through its wide product range with a determination to change consumption pattern of soft drink in India. Firstly, they upgraded the whole industry by introducing 300 ml bottles, which in turn had given the industry a booming growth of 20% as compared to the earlier 5 % they want to develop a Coca culture and are working on a strategy of offer soft drink in every possible package. In Coca Cola camp, the idea of competition has not come from Pepsi, but from the other beverages such as Tea, Coffee, Nimbu Pani and Water etc. Pepsi is quite aggressive in its approach to Indian consumer. They are desperately working on the strategy to work for 1.5 hour to buy a bottle of soft drink in comparison to the international norms of 5 hour, a major hurdle to cross over for both the athletes for getting No. 1 position. India is one of the lowest soft drink consuming countries in the world. According to per capita in India is 5 bottles per year, while highest consumption in USA of 800 bottles per year. Lower, Lower middle & upper middle class consume 91% of soft drink market. The consumption diagram graph of soft drink has never, decrease. If once, it has increased. It is increasing at 24 25% per year. Even in India the market is constantly growing in 1993, the
Page | 16

people of India consume only 0.7 lt/head, while in 1995 it increased from 0.7 to 0.93 lt/head, in 1997 it was 1.14 lt/head & in 2001 it was 1.62 lt/ ahead.

Market Share in India

The two global majors Pepsi & Coca Cola dominate the soft drink industry market. Coca Cola, which had winded up its business from India during the introduction of IERA regime re-entered in India after 16 years letter in 1993. Coca Cola has acquired a major soft drink market by buying out local brands like Thums up, Limca & Gold Spot from Parle Beverages. Pepsi although started a couple of years before Coca Cola in 1991, right now it has lower market share. It has brought over Mumbai based Dukes range of soft drinks. Both Cola manufactures Pepsi & Coca Cola come up with their own market share & claim to have claimed to increase their share

Table 3.2: Market Share (in %) 2011

Brand Name Market Share (org figure)

Market Share (IMRB)

Pepsi Coca Cola Other Brands Source: Economic Times

35.6% 57.8% 6.6%

Page | 17

CHAPTER:4

COMPANY PROFILE

Page | 18

COMPANY PROFILE:
Founded Founder(s) Headquarters 1892 Asa Griggs Candler Coca-Cola headquarters, Atlanta, Georgia, U.S. Worldwide Muhtar Kent (Chairman & CEO) List of The Coca Cola Company products US$ 35.119 billion (2010) US$ 8.449 billion (2010) US$ 11.809 billion (2010) US$ 72.921 billion (2010) US$ 31.317 billion (2010) 139,600 (2010) List of The Coca Cola Company subsidiaries
Page | 19

Area served Key people

Products Revenue Operating income Net income Total assets Total equity Employees Subsidiaries

4.1 ABOUT COMPANY:

The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer and marketer of non-alcoholic beverage concentrates and syrups. The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers more than 500 brands in over 200 countries or territories and serves over 1.7 billion servings each day. The company operates a franchised distribution system dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company owns its anchor bottler in North America, Coca-Cola Refreshments. The Coca-Cola Company is headquartered in Atlanta, Georgia, United States. Its stock is listed on the NYSEand is part of DJIA, S&P 500 Index, the Russell 1000 Index and the Russell 1000 Growth Stock Index. Its current chairman and chief executive is Muhtar Kent.

4.2 COKE PARTNERS

The Coca-Cola Company works with a wide variety of organization to support health, fitness and good nutrition. The Coalition for Healthy and Active America (CHAA) CHAA was formed in 2003 by concerned organization and national leader to educate parents, children, schools and communities about the critical roles physical activity and nutrition education play in reversing the alarming trends of childhood obesity. As a non profit National grassroots coalition, CHAA is a various advocate for developing health and active lifestyle for Americas youth. CHAA is committed to working with schools to rededicate time for physical fitness giving parents the freedom to their children make their own nutritional choice, building school business model relationship that benefit our families by support healthy and active lifestyle and finding solution to the childhood obesity that are both responsible and realistic American Council for fitness and nutrition. The American Council for Fitness and Nutrition (ACFN) is a group of food, beverage and consumer products companies, non profit organization and trade association working
Page | 20

together to improve the health of Americans, particularly youth by encouraging a healthy balance between fitness and nutrition. The cornerstone of all ACFN initiative is the idea that lasting solution to the nations obesity problem must be based on sound science and behavioural research. Such policies are likely to help parents and their children develop eating and exercise habits that lead to a healthier life. Grocery Manufacture of America The Grocery Manufacture of America (GMA) represents the food ,beverage and consumer products industry on key issue that affect the ability of brand manufacture to market their products and deliver superior value to the consumer. International Food Information Council (IFIC) Foundation the IFIC Foundation is a public education foundation disseminating sound, science-based information on food safety nutrition and health. International Life Science Institute (ILSI) is a non profit worldwide foundation that seeks to improve the well being of the general public through the pursuit of balance science. Its goal to further to understanding of scientific issue relating to nutrition food safety toxicology risk assessment and industry.Kidnetic.com is a fun interactive website that emphasize healthy achieved through s balance of physical activity and responsibility eating habits The website gives young people and their parents the tools and idea to help change habits and plant the seeds for healthy families tomorrow.Kidnetic.com is a program of the International Food Information Council (IFIC) Foundation. National Association for Sport and Education Association for sport and Physical Education seeks to enhance knowledge and professional practice in sport and physical activity through scientific study and dissemination of research based and experimental knowledge to members and public. National Soft Drink Association (NSDA) is the trade association for America Soft Drink Industry serving the pup Cola have thus gained a status symbol mainly attributed to its standard and well penetrated, advertising and extensive distribution network. Total soft drink segment is growing at the rate of 10% per year still International standard area considered the per capita consumption of these serving in rock bottom, less than even our neighbour Pakistan and Bangladesh where it is four more as much. So with kind of a market potential coke entered in India in 1991. The government in Pune in 1992 allowed the plant to
Page | 21

establish its first bottling plant. Now the company has grown to about 59 bottling plants throughout India.

4.3 COCA-COLA IN INDIA

The Coca-Cola Company entered India in the early 1950s. It set up four bottling plants at Bombay, Calcutta, Kanpur and Delhi. In 1950 as there were negligible companies in Indian market therefore Coca-Cola did not face much competition and they were accepted in Indian market more easily. By the end of 1977 Coca-Cola had captured more than 45% of market share in India. Then CocaCola left India following public disputes over share holding structure and import permit. As per FERA REGULATION the company was required to India close operation by May 5, 1978 yet strongly enough the companys operation come to end in July 1977. In October 1993, Coca-Cola returned to India after 16 years of absence with the slogan Old waves have come to India again first launched in HATHRAS near AGRA HOME of the famous TAJ MAHAL. At this time Parle was the leader in soft drink market and had more than 60% of the total market share in soft drink Coca-Cola joined hand with Parle and strategic alliance with Parle export give the company instant ownership of the nation top soft drinks brands Thums-Up, Limca, Citra, Gold Spot and Maaza access to Parles extensive 62 plant bottling network and a base for the rapid introduction of the companys international brand by striking a $40 million deal with Parle Coke almost a clear sweep and made it goal as To become an all occasion drink not a special treat beverage.

Page | 22

4.4 MISSION, VISION & VALUES OF COCA-COLA

The world is changing all around us. To continue to thrive as a business over the next ten years and beyond, Coke must look ahead, understand the trends and forces that will shape its business in the future and move swiftly to prepare for what's to come. Coca-Cola must get ready for tomorrow today. That's what Coke 2020 Vision is all about. It creates a long-term destination for our business and provides us with a "Road map" for winning together with its bottling partners.

Mission
Coca-Cola map starts with our mission, which is enduring. It declares our purpose as a Company and serves as the standard against which we weigh our actions and decisions. To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference

Our Vision

Coca-Cola vision serves as the framework for our Road map and guides every aspect of its business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.

People: Be a great place to work where people are inspired to be the best they can be. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy peoples desires and needs.

Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities.
Page | 23

Profit: Maximize long-term return to share owners while being mindful of our overall responsibilities. Productivity: Be a highly effective, lean and fast-moving organization

Winning Culture
Coke Winning Culture defines the attitudes and behaviors that will be required of us to make our 2020 Vision a reality.

Coca-Cola Values

It values serve as a compass for our actions and describe how we behave in the world.

Leadership: The courage to shape a better future. Collaboration: Leverage collective genius. Integrity: Be real. Accountability: If it is to be, its up to me. Passion: Committed in heart and mind. Diversity: As inclusive as our brands. Quality: What we do, we do well.

Focus on the Market

Focus on needs of our consumers, customers and franchise partners Get out into the market and listen, observe and learn Possess a world view Focus on execution in the marketplace every day Be insatiably curious

Page | 24

4.6 PRODUCT PROFILE OF COCA-COLA

The world's favorite drink. The world's most valuable brand. The most recognizable word across the world after OK. Coca-Cola has a truly remarkable heritage. From a humble beginning in 1886, it is now the flagship brand of the largest manufacturer, marketer and distributor of nonalcoholic beverages in the world. In India, Coca-Cola was the leading soft-drink till 1977 when govt. policies necessitated its departure. Coca-Cola made its return to the country in 1993 and 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. Coca-Cola returned to India in 1993 and over the past ten years has captured the imagination of the nation, building strong associations with cricket, the thriving cinema industry, music etc. Coca-Cola has been very strongly associated with cricket.

GLASS 200 ml, 300ml

PET 600ml, 1L, 1.2L, 2L, 2.25 L

CAN 330 Ml

Page | 25

Lime n Lemoni Limca, Derived from nimbu + jaisa.. Hence lime sa. Limca has been lived up to its promise refreshment and has been the original thirst choice of millions of consumers for over 3-decades. Born in 1971 has remained unchallenged as the No.1 Sparkling Drink in the cloudy lemon segement.

Today thums up is the largest selling soft drink brand in India. It is known for its strong, fizzy taste and confident, mature and uniquely masculine attitude. This brand clearly seeks to separate men from the boys. GLASS 200 ml, 300ml PET 600ml, 1L, 1.2L, 2L, 2.25 L CAN 330 Ml
Page | 26

FANTA ORNAGE, It is orange flavour & preferred by Children & Women. FANTAAPPLE, It is apple flavour preferred by Children & Man, Women .

GLASS 200 ml, 300ml

PET 600ml, 1L, 1.2L, 2L, 2.25 L

CAN 330 Ml

Page | 27

Since its inception is 1999, Sprite has not only established itself as a brand which successfully boasts it's 'cut-thru' perspective with an authentic, edgy, irreverent, urban and straight forward style, but has also achieved status of an undisputed youth 'badge' brand.

Today Sprite is the most preferred and fastest growing soft drink in India and has become the second largest soft drink in 2009, aiming for the No.1 spot. Sprite is the brand that gained most share in sparkling Beverages in the year 2010. Present in over 130 countries worldwide. In India sprite is the second largest brand of soft drinks.

GLASS 200 ml, 300ml

PET 600ml, 1L, 1.2L, 2L, 2.25 L

CAN 330 Ml

MAAZA MANGO, in Maaza cold drink no gas only based on juice. It is a non-aerated soft drink. It is preferred mostly Children & Women. Mango. Imagine this delicious fruit, bottled. This is what Maaza is all about. Maaza- the most loved beverage brand in India. It provides the most authentic experience of rich, juicy mangoesanytime, anywhere! GLASS 200ml, 300ml TETRA 200ml MOBILE 600 ml PET 1.25ml
Page | 28

The brand launched in its internationally successful minute maid pulpy Orange avatar is a naturally refreshing juice drink which offers an Unmatched taste experience to consumers due to the presence of real orange pulp This innovative consumer proposition is best explained by The brand tagline Refreshing orange, surprisingly pulpy. Minute maid Pulpy orange has been made available in two PET pack-sizes on the go1.25 liter bottle, priced at Rs.25 and 70 respectively.

MOBILE

PET

250 ml

1.1ml

Page | 29

JUST LIKE HOME-MADE LEMONADE

A lemon drink with no added preservative or colour, Minute Maid Nimbu Fresh offers a refreshing drinking experience as close to homemade Nimbu Paani as possible in a packaged format. Nostalgia in a bottle, Minute Maid Nimbu Fresh offers 'Ghar Ki Yaadon Ka Ras' (memories of home-made lemonade) in every sip

WATER YOU CAN TRUST AND BE TRULY SAFE AND PURE. Kinley water understands the importance and value of this life giving force. Kinley water thus promises water that is as pure as it is meant to be.

Page | 30

INDIA'S NO.1 NATIONAL SODA BRAND. With its unique taste and formula Kinley Soda packs quite a punch.

LEMONY LIGHT REFRESHER NESTEA ICED TEA Part of the Beverage Partners Worldwide (BPW) partner Ship between Nestle and Coca-Cola, One of the largest selling ready-to-drink tea brand sold in over 60 countries.

Page | 31

PREMIUM RANGE OF MIXERS Ever since its launch schweppes is recognized as a mixer that knows its drink the best.It is available in select towns and channels.

QUALITY COFFEE & TEA FROM THE COCACOLA COMPANY Come and explore our world. From Freshly Ground "Bean-to-cup" Coffee, Quality Tea, Refreshingly chilled Iced Teas and Cold Coffee

Page | 32

MOST SUCCESSFUL ENERGY DRINK BRAND WORLD OVER FROM THE COCA-COLA COMPANY. Burn is The Coca-Cola Company's most successful Energy Drink brand. Successful world over sold in over 80 countries across the world.

4.5 PRODUCT MIX Products

The group manufactures and markets Carbonated and Non-Carbonated Soft Drinks and Mineral Water under Coca Cola brand. The various flavors and sub-brands are- Coca Cola, Thums Up, Sprite, Limca,Fanta, Fanta Apple, Mazza, Pulpy Orange, Kinnley Soda, Kinnley Water.

CAN
Diet Coke, Coca Cola, Thums Up, Sprite.

Brand available in 200ml.

1. Coca Cola
Page | 33

2. 3. 4. 5. 6.

Thums Up Sprite Limca Mazza Mazza Tetra Pack

Brand available in 300ml. 1.Thums Up

2.Sprite 3.Limca 4.Kinley Soda

Brand Available in CAN (330ml)

1. Diet Coke 2. Coca Cola 3. Thums Up 4. Sprite

Brand Available in (350ml)

1. Coca Cola 2. Thums Up 3. Sprite

Page | 34

4. Mazza 5. Pulpy Orange

Brand Available in (500ml) 1. Mazza

2. Pulpy Orange 3. Kinley Water

Brand available in (600ml)

1. Coca Cola 2. Thums Up 3. Sprite 4. Limca

Brand Available in (1Ltr)

1. Kinley Water 2. Pulpy Orange

Brand Available in (1.2 Ltr)

1. 2. 3. 4. Coca Cola Thums Up Sprite Limca 5. Mazza

Brand available in (2 Ltr)

1. 2. 3. 4. Coca Cola Thums Up Sprite Limca

Page | 35

4.7 Price of the product

Product
200 ml
200 ml Mazza Tetra Pack 300 ml 250 ml Mazza 330 ml Can 350 ml Thumsup 500 ml Mazza 500 ml Pulpy Orange 600 ml Soda 600 ml PET 1Ltr. Kinnley 1Ltr. Pulpy Orange 1.2 Ltr Maaza 1.2 Ltr Pet 2 Ltr PET

Bottle in MT
24
24 24 24 24 24 24 24 24 24 12 12 12 12 9

Price
168
216 215 330 580 468 168 498 216 444 104 552 552 207 459

Page | 36

CHAPTER: 5

COMPANY PROFILE

Page | 37

COMPANY PROFILE:

PepsiCo Inc.

Type Traded as

Public NYSE: PEP NASDAQ: PEP S&P 500 Component Foods, Beverages North Carolina, U.S. (1965) Donald Kendall, Herman Lay

Industry Founded Founder(s)

Headquarters Purchase, New York, U.S. Area served Key people Worldwide Indra Nooyi (Chairman & CEO) Products Revenue See list of PepsiCo products US$ 57.838 billion(2010)

Page | 38

Operating income Net income Total assets Total equity Employees Divisions

US$ 8.332 billion (2010)

US$ 6.338 billion (2010) US$ 68.153 billion (2010) US$ 21.476 billion (2010) 294,000 (2010) PepsiCo Americas Foods; PepsiCo Americas Beverages; PepsiCo Europe; PepsiCo Asia, Middle East & Africa List of subsidiaries PepsiCo.com

Subsidiaries Website

5.1 ABOUT COMPANY:

PepsiCo Inc. is an American multinational corporation headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which include an acquisition of Tropicana in 1998 and a merger with Quaker Oatsin 2001 which added the Gatorade brand to its portfolio as well. As of 2009, 19 of PepsiCo's product lines generated retail sales of more than $1 billion each, and the companys products were distributed across more than 200 countries, resulting in annual net revenues of $43.3 billion. Based on net revenue, PepsiCo is the second largest food & beverage business in the world. Within North America, PepsiCo is ranked (by net revenue) as the largest food and beverage business. Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006, and the company employed approximately 285,000 people worldwide as of 2010. The companys
Page | 39

beverage distribution and bottling is conducted by PepsiCo as well as by licensed bottlers in certain regions. PepsiCo is a SIC 2080 (beverage) company.

5.2 PEPSI CO. IN INDIA

As Indias largest food and beverage business, PepsiCo India offers consumers a wide-ranging portfolio of enjoyable and wholesome products.

Key Facts
Indian headquarters: Gurgaon, Haryana Position: 3rd largest consumer Products Company in India Employment opportunities: Directly and indirectly employs about 150,000 people

Facilities:

36 bottling plants (13 company-owned; 23 franchisee-owned) 3 food plants Chairman & CEO: Manu Anand

Company History
PepsiCo entered India in 1989 and has grown to become the countrys largest food and beverage business. One of the largest multinational investors in the country with an investment of over $1 billion, PepsiCo India has built an expansive beverage and snack food business supported by 36 beverage bottling plants and 3 state-of-the-art food plants. PepsiCo Indias extensive portfolio includes iconic brands like Pepsi, Lays, Kurkure, Tropicana 100%, Gatorade, Quaker and young but immensely popular and fast growing brands such as Nimbooz and Aliva.

Commitment to Sustainable Growth

PepsiCo Indias employees are driven by the companys global commitment to sustainable growth, Performance with Purpose (PWP), which works on four planks: replenishing water, partnering with farmers, converting waste to wealth and nurturing healthy kids. In 2009, PepsiCo India achieved a significant milestone, by becoming the first business in the PepsiCo global system to achieve Positive Water Balance (PWB), a fact validated by Deloitte Consulting.
Page | 40

Brand Facts
PepsiCo nourishes consumers with a range of products from tasty treats to healthy eats that deliver enjoyment, nutrition, convenience as well as affordability. Our brands stand for quality and are respected household names.

5.2 VISION, MISSION & VALUES

Mission
Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors even as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.

Vision
PepsiCo's responsibility is to continually improve all aspects of the world in which we operate environmental, social, economic creating a better tomorrow than today. Our vision is put into action through programmes and a focus on environmental stewardship, activities to benefit society and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

Pepsico Values & Philosophy

Our values and philosophy are a reflection of the socially and environmentally responsible company we aspire to be. They are the foundation for every business decision we make.

Our Commitment
We

are committed to delivering sustained growth through empowered people acting responsibly and building trust.

Page | 41

Guiding Principles
We uphold our commitment with six guiding principles. We must always strive to: 1. Care for our customers, our consumers and the world we live in. We are driven by the competitive spirit of the marketplace, but we direct this spirit toward solutions that benefit both our company and our constituents. Our success depends on a thorough understanding of our customers, consumers and communities. To foster this spirit of generosity, we go the extra mile to show we care.

2. Sell only products we can be proud of. The true test of our standards is that we are able, without reservation, to consume and personally endorse the products we sell. Our absolute endorsement extends to every part of the business, from the purchase of ingredients to the point where our products reach consumers. 3. Speak with truth and candour. We tell the whole story, not just what is convenient to our individual goals. In addition to being clear, honest and accurate, we take responsibility for ensuring that our communications are understood. 4. Balance the short term and long term. In every decision, we weigh both short-term and long-term risks and benefits. Maintaining this balance helps sustain our growth and ensures that our ideas and solutions are relevant both now and in the future. 5. Win with diversity and inclusion. We embrace people with diverse backgrounds, traits and ways of thinking. Our diversity brings new perspectives into the workplace and encourages innovation, helps us identify new market
Page | 42

opportunities, develop new products and sustain our commitment to growth through empowered people. 6. Respect others and succeed together. We depend on people who can work together, whether in structured teams or through informal collaboration. Mutual success depends on mutual respect, for both those within and outside the company. While our company is built on individual excellence, the value we attach to teamwork and mutual respect turns our goals into accomplishments.

5.4 PRODUCTS PROFILE UNDER PEPSI CO.

In the ranking of soft drinks, Pepsi Cola comes at the second number. Pepsi Cola is best soft drink and stands in the list of top ten soft drinks.

Page | 43

7UP, the refreshing clear drink with a natural lemon and lime flavour was created in 1929. 7UP was launched in India in 1990 and its international mascot Fido Dido was used for advertising in 1992 to position the brand as a cool drink for youngsters. Fido became an instant hit with his trendy look, laid-back attitude and unconventional take on life. During the brands early years in India, 7UP gained market leader status in the lemon lime category by being one of the first to be nationally distributed besides being marketed as a healthier alternative to other soft drinks.

The main formula of Mountain Dew was invented in Virginia. The drink was named and first marketed in Johnson City, Tennessee and Knoxville, Tennessee in 1948. In India, Mountain Dew set the soft drink category ablaze in 2003 with its iconic launch campaign Cheetah Bhi Peeta Hai.

Page | 44

Aquafina was first launched in the US in 1994. With its unique purification system and great taste, Aquafina soon became the bestselling brand in the country. In India, Aquafinas journey began with its launch in Bombay in 1999 and it was rolled out nationally by 2000. On the strength of its brand appeal and distribution, Aquafina has become one of Indias leading brands of bottled water in a relatively short span of time.

Nimbooz was launched in India on the 28th of February 2009. It is the latest addition to the Pepsi beverages portfolio.

Page | 45

Mirinda is an international soft drink brand from Spain that was launched in India in 1991. Mirinda has always been about the irresistible taste of oranges that is now synonymous with the brand. The message was successfully communicated through our 1996 Mirinda Men campaign, the 2000 Taste Pe Atka, Mirindaaaa campaign and the Taste Aisa Chaye Character Fisla Jaye campaign of 2003. Mirinda evolved to evoke not just great taste but a lot of fun as well. This was conveyed through another spate of memorable campaigns Fun Ka Naya Mantra, Mirindaaaaa starring Asin and Zayed Khan in 2007 and the Pagalpanti Bhi Zaroori Hai campaign with Asin in 2008.

Slice was launched in India in 1993 as a refreshing mango drink and quickly went on to become a leading player in the category.
Page | 46

In 2008, Slice was relaunched with a winning product formulation that made consumers fall in love with its taste. With new pack graphics and clutter-breaking advertising, Slice has built a powerful appeal.

Tropicana was founded in Bradenton, Florida, USA, in 1947. It is now enjoyed almost everywhere in the world. Carefully nurtured for over 50 years, Tropicana has matured into one of the most respected beverage brands. Widely regarded as the world's no. 1 juice brand, it is today available in 63 countries. Since 1998, Tropicana has been owned by PepsiCo, Inc.Tropicana Premium Gold was re-launched as Tropicana 100% in 2008.Ii was launched in India 2004.

Page | 47

CHAPTER: 6

COMPARATIVE MARKET ANALYSIS OF COCA-COLA & PEPSICO.

6.1 PRODUCT PROFILE
Products:
It was Pepsi first which understood varied needs of Indian taste and introduced various India centric products like Kukure and Lays with Indian flavours . On the other hand Coca Cola considered India as a regional outpost until last year , but after the economy toppled else where they should take India seriously from now on. Now there are two other sections where they both are competing- energy drinks and Lemon water/mango juice/other juice. Pepsi entered into market with Nimbooz which was success, and hence Coke is planning to launch Minute Maid Nimbu Fresh this year. But in Mango drinks they both have strong market presence, Mazaa and Slice compete with Parles Frooti in this segment. Coke is also launched its energy drink Burn last year to enter into the Rs 250 crore energy drinks market. This whole thing proves that Coke is finally getting its act right to become the number 1 Beverage player in India.

Table 6.1
Flavour Cola Ingredients Cola carbonated sugar Pack Flavour 200Ml. water 300Ml. 500Ml. 1 Litre 1.5 Litre Pepsi Product Coke, Thumsup

Company Coca-Cola

Pepsi
Page | 48

2 Litre Orange Orange Flavour + 200Ml. Carbonated Water+ 300Ml. Sugar 500Ml. 1 Litre 1.5 Litre 2 Litre Mirinda Fanta

Coca-Cola

Pepsi

Fruit Juice

Mango Pulp+ Treated 250 ML water+ sugar

Maaza

Coca-Cola

Slice Cloudy Lemon Lemon Flavour + 200Ml. Carbonated Water+ 300Ml. Sugar 500Ml. 1 Litre 1.5 Litre 2 Litre Clear Lemon Lemon Flavour+ 200Ml. Carbonated Water + 300Ml. Sugar 500Ml. 1 Litre 1.5 Litre 2 Litre 7Up Dew Sprite Mirinda Lemon Limca

Pepsi Coca-Cola

Pepsi Coca-Cola

Pepsi

Page | 49

6.2 Coca-Cola and Pepsi in Indian Market

Myers in Beverage Digest July 1985 The history, the romance, the struggle, the courage, the endurance, the confidence and the competition characterizes the presence of an industry which no one in their wildest imagination had dreamt would last so long. Beginning in 1886, when a tumultuous, inventive, clamorous and neurotic new America got a taste of a nerve tonic invented by an obsessive chemist in the pursuit of the perfect medicine, to late 1890s when a worthy adversary was born, and to the present; change, aggression and controversy have been the order of the day. That nerve tonic was Coca-Cola, the obsessive chemist John Pemberton and the worthy adversary Pepsi and the adversity has not decreased an iota even after 100 years.

Indian Soft Drinks Market

1970s and early 80sthe entry and exit of Coke India has proved to be perhaps the toughest battle ground for the Cola giants. Coca-Cola was the 1st international soft drinks brand to enter India in early 1970s. Indian market was dominated by domestic brands, with Limca being the largest selling brand. Cola was the largest selling flavor with market share of 40%, Lemon drinks 31% and orange drinks only 19%. Up till 1977, Coca-cola was the leading soft drink brand in India. But due to norms set by the Foreign Exchange Regulation Act (FERA), Coca-Cola left India and did not return till 1993 after a 16 year absence from the Indian beverage market. FERA needed Coca-Cola to reveal its secret concentrate formula as well as reduce its equity stake which was not acceptable. Pure drinks, Delhi launched Campa-Cola, to take advantage of Cokes exit and by the end of 70s, was the only Cola drink in the Indian market. In 1980, Parle, another major Indian player launched ThumsUp, the drink which till date is most popular soft-drink in India. Pure Drinks strongly objected to ThumsUp being called a soft drink as it felt its taste is too strong. For over a decade, Parle led the Indian soft-drinks market, with its market share reaching a peak of 70% in1990. Late 80s and early 90s Pepsis struggle to enter India Pepsi saw the exit of Coke as a God send opportunity to capture then estimated 900 crore market of India. India was then a highly regulated market with International trade constituting only 6% of GDP in 1985. Foreign trade was subject to import tariffs, export tariffs and quantitative restrictions. Foreign direct investment (FDI) was restricted by barriers like upper limit equity participation, restrictions on technology transfer, export obligations and government approvals. Any foreign investment had a lot of political sensitivity to it. By the time PepsiCo began its
Page | 50

negotiations, the upper cap for equity holding in Indian companies was 40%. PepsiCo realized itll have to be creative to enter the Indian markets.

6.3 CHANGING OF LOGOS DESIGN OVER PERIOD OF TIME

Page | 51

6.4 Comparison of the Slogans of the two Major Brands

The slogans are very important for the advertising purpose. The slogans will attract the customers a lot. The slogans will give the views and the intentions of the company that what they want to share with the customers. We can say slogan is an appeal to the customers about the products of the company. Pepsi and Coke have very different targeting strategies. Pepsi is promoting itself as something new , young and hip, which seems a little odd aver 100 years. Coke is tuning itself as the original, the authentic and appealing to a sense of traditional one. Pepsi has always targeted the youth market more aggressively than Coke. The companies have been changing their Logos continuously to attract the new customers. They are trying to create the new image and look to their Companies through changing the Advertisements taglines.

Table 6.2 Slogans of Pepsi Company 1903 Exhilarating, invigorating, Aids Digestion. 1907 Original Pure Food Drink 1909 Delicious and Healthful 1915 For All Thirst-Pepsi-Cola 1919 Pepsi-Cola-it makes you Scintillate 1920 Drink Pepsi-Cola. It will satisfy you 1928 Pepsi you Up! 1932 Sparkling, Delicious. 1934 Refreshing and Healthful 1939 Twice As Much For A nickel Too 1943 Bigger Drinks, Better taste. 1949 Why taken less When Pepsi is best? 1950 more Bounce to the Ounce Slogans of Coke Company 1886 Drink Coca-Cola 1904 Delicious and Refreshing 1905 Good All the Way Down 1906 The Drink of Quality 1906 The great National Temperance 1907 Delicious Coca-Cola, Sustain, Refreshes, Invigorates. 1908 Sparkling-Harmless as Water and Crisp as Frost. 1909 Delicious, wholesome, Refreshing 1910 It Satisfies 1911 Its time to Drink Coca-Cola 1912 Demand the Genuine-Refuse Substitutes.
Page | 52

1950 The light Refreshment 1954 Refreshing without Filling 1958 Be Sociable, have a Pepsi 1961 Now Its Pepsi, for those who think Young. 1963 Come Alive! Youve in the Pepsi Generation. 1967 Pepsi Pours it on 1969 You got a lot to live and Pepsi got a Lot to give. 1973 Join the Pepsi People, feeling free 1975 Have a Pepsi Day 1978 Catch the Pepsi Spirit 1981 Pepsi Got your Taste for life. 1983 Pepsi now! 1984 Pepsi, the choice of a new Generation. 1992 Pepsi, Have it! 1993 Be Young, Have Fun, Drink Pepsi 1995 Nothing else is a Pepsi 1999 The joy of Cola. 2012- Change The Game

1913 The Best beverage Under the Sun 1914 - Demand the Genuine by Full Name 1916 just One Glass Will Tell You 1917 Three Million A Day 1919 Quality Tells the Difference 1920 Drink Coca-Cola with Soda 1922 Thirst knows no Season 1923 Refresh Yourself 1924 Pause and Refresh Yourself 1925 The Sociable Drink 1926 Stop at the Red Sign 1927 Around the Corner from Anywhere 1928 A Pure Drink of National Flavours 1929 The Pause that Refreshes 1930 Meet Me At the Soda Fountain 1932 Ice-Cold Sunshine 1933 Dont Wear A Tired, Tired Face 1934 Carry a Small Back to Work 1935 All Trails Lead to Ice-Cold Coca-Cola 1936 What Refreshment Ought to be 1938 The Best Friend Thirst Ever had 1939 Make Travel more Pleasant 1940 Bring in Your Thirst and Go Away
Page | 53

Without it. 1941 Completely Refreshing 1942 Refreshment that Cant be Duplicated. 1943 The only think like Coca-Cola is Coca-Cola itself. Its the real thing. 1944 How About A Coke 1945 Passport to Refreshment 1947 Coke knows no season 1949 Coca-Cola. Along the highway to Anywhere. 1951 Good food and Coca-Cola just Naturally go together. 1954 For people on the go 1956 Feel the difference 1957 Sign of a Good Taste 1958 The cold, Crisp taste of Coke 1959 be really refreshed listen to Connie Francis 1960 Relax with Coke 1961 Coke and food-Refreshing new feel. 1962 Coca-Cola Refreshes you best. 1965 Something more than a soft drink 1966 CokeAfter CokeAfter Coke
Page | 54

1970 its the real thing listen to the Carpenters 1971 Id like to buy the world a Coke 1976 Coke Adds life 1979 Have a Coke and Smile 1984 Just for the taste of it (Diet Coke) 1985 Weve got a taste for you (new Coke) 1986 Catch the Wave (New Coke) 1987 You cant beet the real thing 1989 Cant beat the feeling 1990 Cant beat the real thing 1993 Always Coca-Cola 2001 - Thanda Matalab Coca-Cola 2003 Coca-Coal Enjoy 2012- Open Happiness

Page | 55

6.5 MARKET STRATEGY

MARKETING STATEGIES OF COCA- COLA a) PRODUCT

Coke was launched in India in Agra, October 24, in '93', soon after its traditional all Indian launch of its Cola. At the sparking new bottling plants at Hathra near Agra. Coke was back with a bang after its exit in 1977. Coke was planning to launch in next summer the orange drink, Fanta-with the clear lemon drink, sprite, following later in the year. Coke's product line includes, Coca-Cola, Thumps Up, Fanta, Maaza, Sprite, Club soda, 7-up,Limca,Fanta apple, Diet Coke. b) PACKAGING Coca-Cola India Limited (CCIL) has bottled its Cola drink in different sizes and different packaging i.e., 200 ml bottle, 300 ml. Bottle, 330 ml. Cans, 500 ml. And bottles of 1 and 2 litre.

c) PRODUCT POSITIONIN One important thing must be noticed that Thumps Up is a strong brand in western and southern India, while Coca Cola is strong in Northern and Eastern India. With volumes of Thumps up being low in the capital, there are likely chances of Coca Cola slashing the prices of Thumps Up to Rs. 5 and continue to sell Coca Cola at the same rate. Analysts feel that this strategy may help Coke since it has 2 Cola brands in comparison to Pepsi which has just one.

Thumps Up accounts for 40% of Coca Cola Companys turn over, followed by Coca Cola which has a 23% share and Limca which accounts for 17% of the turn over of the company. We will sell whatever consumers want us to". Coca Cola India has positioned Thumps up as a beverage associated with adventure because of its strong taste and also making it compete with Pepsi as even Pepsi is associated with adventure youth. d) PRICE

Page | 56

The price being fixed by industry, leaving very little role for the players to play in the setting of the price, in turn making it difficult for competitors to compete on the basis of price. The fixed cost structure in Carbonated Soft Drinks Industry, and the intense competition make it very difficult to change or alter the prices. The various costs incurred by the individual companies are almost unavoidable. These being the costs of concentrates, standard bottling operations, distributor and bottlers commissions, distribution expenses and the promotional and advertising expenditure (As far as Coke is concerned, it had to incur a little more than Pepsi as Pepsi paved its way to India in 1989 while Coke made a comeback in 1993.) Currently a 300 ml. Coke bottle is available for Rs10 the 330 can was initially available for Rs. 15 and now Rs.20. The prices of 500 ml, 1 litre. And 2ltr being Rs20 Rs.35 and Rs.50 respectively (according to the current survey). e) PLACE Coke may have gained an early advantage over Pepsi since it took over Parle in 1994. Hence, it had ready access to over 2, 00,000 retailer outlets and 60 bottlers. Coke was had a better distribution network, owing to the wide network of Parley drinks all over India. Coke has further expanded its distribution network. Coke and its product were available in over 3, 00,000 outlets (in contrast with Pepsi's 2, 75,000). Coke has a greater advantage in terms of geographical coverage. Coke and Pepsi have devised strategies to get rid of middlemen in the distribution network. However, 50% of the industry unfortunately depends on these middlemen. As of now, around 100 agents are present in Delhi. Bottlers of the 2 multinationals have strongly felt the need to remove these middlemen from the distribution system, but very little success has been achieved in doing so. d) PROMOTION It must be remembered that soft drinks purchases are an "impulse buy low involvement products" which makes promotion and advertising an important marketing tool. The 2 arch rivals have spent a lot on advertising and on promotional activities. According to Paul Stobart, Advertising encourages customers to recognize the quality the company offers. Price promotions often produce short-term sales increases. Coca Cola has entered new markets and also developing market economics (like India) with much-needed jobs.

Page | 57

PEPSIS MARKETING STRATEGIES

Pepsis approach is

radically different from that of Coke; Pepsi has gone in for concentration segmentation. Pepsi has targeted the youth segment instead of trying to be something to all segments. Pepsi has since beginning strove to achieve its international position as `a drink for the new generation in India. Helped by HTAs forceful visuals and creative, Pepsi has been successful in positioning itself for the younger generation. SELLING PROCESS Pepsi has a very well managed selling system. It takes as lot of care to ensure that the products (Pepsi bottles) are available to the consumers. Pepsi soft drinks are produced in our plant in different SKUs (Stock keeping units) and distributed to our distributor and they further supply to the retailer. Sahibabad (GZB) has been divided around 14 routes which are called direct routes. For every route there is a Routs Agent. Route Agent moves with the company owned truck and ensure that maximum shops are covered each day, so that regular supply of Pepsi soft drinks is made. Routs agents take the order from the shopkeepers and then with the help of loaders they give the required number of crates to the retailer or shopkeeper & then move to next. Our plants also have some agency in each rout. They supply in the areas where Pepsis trucks are not able to reach. These areas are called indirect-routes.

Page | 58

6.6 MARKET SHARE OF COCA-COLA & PEPSI

Figure 6.1: Market Share of Indian Beverage Companies [Market Share (in %) 2010]

Market Share Other Indian Companies, 6.60%

PepsiCo India, 35.60% Coca-Cola India , 57.80%

Coca-Cola India PepsiCo India Other Indian Companies

Source: Economic Times, org figure

The Pi Chart Shows That Coke has a major lead in India Capturing the huge Chunk of the market share while Pepsi on the other hand has very less Market share compared to coke but it is growing.

Table 6.3: Market Share of the Respective Companies [Market Share (in %) 2010]

PepsiCo (2009-10)

Coca-Cola (2009-10)

Page | 59

Pepsi 13.1 % 7 UP 5.8% Mirinda Lemon 0.4% Mirinda Orange 8.9% Mountain Dew 5.8%

Coca Cola 8.2% Thums Up 16.4% Sprite 12.2 % Limca 10.9% Fanta 10%

Source: Economic Times

The above table shows the dominance of Coca-Cola in India. Coke had used a good strategy in buying of established Indian drinks Like Thumbs-up and Limca from Parle Agro group of companies which now consist of 26% of the market share and thus grabbing a huge piece of the market. Pepsi on the other hand is mostly surviving on its Pepsi cola brand of drinks which consist of 13.1% which has the second largest market share after Thumbs-up. Pepsi has a reason to smile as the 7-up and mountain dew brands are growing fast and capturing the market share slowly but steadily.

6.7 BRANDS VALUE

Indira Nooyi has made tremendous efforts to make Pepsi a brand for young generation in India. From sponsoring Cricket World Cups to hiring young Brand Ambassadors and making youth specific slogans, they have done a lot to make Pepsi a true brand. Coke on the other hand is still confused how to promote a single brand. They actually fail to unite brands like Thums Up and Coca Cola and these brands actually compete with each other. Coke needs to do a lot more to make people brand its other successful products like Pulpy Orange . Until that happens Coke will struggle in India.

Table 6.4

BRAND

VALUE

% BRAND VALUE
Page | 60

(IN $ MILLION) COCA-COLA PEPSI 73,752 12,931 SOURCE: BUSINESS STANTARD

CHANGE IN 2011 VS 2010 8% 1%

6.8 Advertisements:
It started with Fantas Holi ad for Coke, where Genelia De Souza was seen in a retro look. The ad was fresh and sent a clear message. For some reasons I had not been a Fan of Cola ads but this was unique and cool. Just after this ad Cokes another ad appeared on screens promoting Coca Cola and featuring Imran Khan. This ad really takes all the points away for its brilliant execution- be it the concept, the background score or the super cute looks of both Imran and the western lady. Pepsi also started showing its new Ranbir Kapoor ad on TV, but with the same Youngistan concept. I didnt like it, ad is good but concept is too clich now for Pepsi. The ad concept worked earlier as it was new and Coke didnt have anything competitive. Coke Marketing usually focuses on: Coca Cola - Redefining Itself, Rejuvenation, Refreshment, Health and Nutrition, Replenishment Pepsi advertising focuses on: Slandering Coke, Youth, Market Segment

Top 5 brands contributed to 73% share of the total ad volumes in print by Aerated Soft Drink brands with Pepsi taking the lead at 26% share.

6.9 DISTRIBUTION SYSTEM: Pepsi's Distribution:

1) Exclusive contracts with franchise bottlers and independent distributors and retailers like Walmart.
Page | 61

2) Agreements with its competitors like Unilever with Lipton, Starbucks for Frappuccino.

Coke's Distribution:
1) Independent bottlers with exclusive contracts. 2) Coca- cola enterprises. Moreover, PepsiCo has a number of products in the Food segment like potato chips, Quaker oatmeal etc. as opposed to Coke which deals mainly in the Beverages, this provides PepsiCo more range and thus a deeper penetration into the Markets.

6.10 Coca-Cola camp VS Pepsi camp on Brand Trust Rank

Pepsi reverses a global trend in India, beating its main rival Coca-Cola in market share. In terms of Brand Trust too, Pepsi at rank 36 is at 160% higher than its closest cola competitor, CocaCola at 60th rank. However the Coke camp has 5 brands among the top 300, as compared to the Pepsi-camp which is only represented by 3 brands among the 300 Most Trusted Brands of India. Colas naturally have fans for taste and thirst-quenching properties, but apart from these the Composite Attributes of Shared Interestsand Empathy also contribute significantly in this category(interestingly, the colas too seem to recognize this instinctively because a web search of these brands along with Empathy throws up direct initiatives that both the cola brands have initiated or funded).

Page | 62

The average of the Brand Trust Indices of all Pepsi camp brands(including Mirinda and Slice), is also higher than that of the Coke camp(including Limca, Fanta, Thums-Up and Sprite) by about 180%, almost mimicking the camps own Brand Trust.

6.11 GROWTH OF BOTH BRANDS IN INDIA

Taste the Thunder may be Coca-Cola's tagline for Thums Up, but global rival PepsiCo seems to be stealing the thunder in India, having increased its sales at double the pace of the soft drinks market leader in the first half of the year. In the Rs 11,000-crore soft drinks market, where volume growth is significantly lower than two years back in any case, PepsiCo reported 17% volume growth during April-June while CocaCola grew 8%. This is the biggest gap in growth between the two cola rivals in the past threefour years when they were growing neck-to-neck.

Page | 63

CHAPTER:7
RESEARCH METHODOLOGY

7.1 PROBLEM DEFINED:

This research is going to conduct to know market share of Coca-Cola as compare to its major competitors.

7.2 STATEMENT OF THE PROBLEM:

Marketing analysis of Coca-Cola as compare to Pepsi co.

7.3 RESEARCH OBJECTIVES Major Objectives

To study the satisfaction level of retailers. To study the distribution channel of Pepsi and coke Find out the limitation and strength of both companies To study the overview of Pepsi and coca cola Company. To know the consumer perception about Coca- Cola and Pepsi. To know and compare the merchandising of Pepsi and Coke in retail outlets.
Page | 64

 To identify the retailers opinion towards Pepsi products when compared to coke products. To offer some finding and suggestions to the company for the improvement of its performance.

7.4 RESEARCH DESIGN

We have done Descriptive research to find out our objectives. In descriptive research we use the primary and secondary data. Research methodology is the way to systematically solve the research problem. The method used for the research is Descriptive Research to find out our objectives.

7.5 SAMPLE DESIGN

In descriptive research we use the primary and secondary both data, Sample Design for primary data have been collected through probability sampling. In which I have used convenient sampling.

7.6 SAMPLE UNIT

A sample unit of retailers of soft drink is choosen.

7.7 SAMLE SIZE

A sample size of 100 retailers is taken.

7.8 LOCATION
Kurukshetra city.

7.9 DATA COLLECTION

Two methods of data collection is used in this survey

Page | 65

PRIMARY DATA COLLECTION : Primary data will be collected

direct interaction of different retailers through Questionnaire.

by

SECONDARY DATA COLLECTION : It is collected through Internet,

Magazines and Newspaper, getting views of different authors in their books.

7.10 STASTISTAL TOOS USED : Mainly graphs are selected to show the
findings.

CHAPTER 8
DATA ANALYSIS AND DATA INTERPRETATION
8.1 Analysis of the Questionnaire

1) Which soft drinks company products do you sell?

Coke

Pepsi

Both

Table 8.1: Retailers of Coke & Pepsi

Company Coke Pepsi Both

Retailers 72 25 3

Figure 8.1: Graph of Number of retailers Of Coke and Pepsi

Page | 66

Retailers

Both

Company

Pepsi

25 Retailers 72

Coke

0%

10%

20%

30%

40% Percentage

50%

60%

70%

80%

It was a rare sight to see a restaurant selling both the products. And if you see one then he might be the most hassled person on earth but the retailers of Pepsi are quite few compared to coke in Kurukshetra.

2) Does the soft drink company provide you with refrigeration facilities?

Coke Pepsi

Yes Yes

No No

Yes the company does provide refrigeration facilities to the retailer who has to be an exclusive seller of either Coke or Pepsi. If the person id selling both he might have to purchase the fridge or use his own fridge to sell the product. This is one of the main reasons that there are extremely less retailers who sell both.

Page | 67

3) Dose the company provide you with mechanics for the repair and maintenance of fridges?

Coke Pepsi

Yes Yes

No No

The company does provide mechanics and maintenance facilities free of cost to the retailer here no discrimination is done when it comes to the repair and maintenance of the fridges among retailers. The Maintenance and repair of the fridges are done free of cost.

4) What are the conditions of bottles provided by the company?

Coke Pepsi Excellent Excellent Good Good Neutral Neutral Bad Bad Worse Worse

COKE
Table 8.2: Conditions of Bottles of Coke rated by Retailers

Conditions EXCELLENT GOOD NEUTRAL BAD WORSE

Coke 24 36 14 16 10

Page | 68

Fig 8.2: Graph of Conditions of bottles in Coke

Coke 40 35 30 25 20 15 10 5 0 EXCELLENT GOOD NEUTRAL Condition BAD WORSE 14 24 Coke 10

36

16

Table 8.3 Weighted Mean of the Conditions of bottles of Coke

Conditions Coke EXCELLENT 24 GOOD 36 NEUTRAL 14 BAD 16 WORSE 10

100

Rank 1 2 3 4 5

W.A 24 72 42 64 50 252

Weighted MEAN 2.52

Here the mean after taking out the weighted average is 2.52 which is exactly the middle mark for coke where the retailers are neither satisfied nor dissatisfied with the quality of bottles that come from coke. They find the quality ok thus that means there is room for improvement for the quality of bottles provided by coke.

PEPSI
Page | 69

Table 8.4: Conditions of Bottles of Pepsi rated by Retailers

Conditions Pepsi EXCELLENT 22 GOOD 22 NEUTRAL 32 BAD 14 WORSE 10

Figure 8.3: Graph of the Conditions Of bottles Of Pepsi

Pepsi 35 30 25 20 15 10 5 0 EXCELLENT GOOD NEUTRAL Conditions BAD WORSE 14 10 Pepsi 22 22

32

Page | 70

Table 8.6: Weighted Mean of Conditions Of bottles Of Pepsi

Conditions Pepsi Rank W.A EXCELLENT 22 1 22 GOOD 22 2 44 Weighted NEUTRAL 32 3 96 Mean BAD 14 4 56 2.68 WORSE 10 5 50
100 268

Here the weighted mean average is lower in pepsi than in coke signalling that the quality is a bit less than compared to coke when it comes to bottles. Both the companies have certain rules and regulations considering the refilling of old bottles and then using new bottles. Both the companies sterilises the bottles before reusing them. Here the retailers are more satisfied with the conditions of the bottles of Coke.

5) If the bottles are broken in transit or in the shop due to natural causes or calamities then does the company bear the loss for you?
Coke Pepsi Yes Yes No No

Here both the companies follow same policy of cap in the bottle. If the bottle is broken in transit the company replaces the bottle and yes the company replaces the bottle any time when it is broken provided the cap of the bottle is still intact.

6) If the products have crossed their expiry dates then dose the company replace the products for you?
Coke Pepsi Yes Yes No No Page | 71

7) If yes then Coke Replace at your own cost Pepsi Replace at your own cost Buy Back Buy Back Replace products free of charge Replace products free of charge

The expiration of bottles or people not consuming the drinks is a rare case. But just in case both the companies replace their products if it has crossed the expiration date free of charge.

8) When do you replenish your stock? Weekly Fortnightly Monthly Quarterly

Table 8.7: Time of Replenishing of Stock By retailers Time Replenish WEEKLY 85 FORTNIGHTLY 15 MONTHLY 0 QUATERLY 0

Figure 8.4: Graph of Replenishment of Stock by Retailers

Page | 72

Replinhment

QUATERLY

0%

MONTHLY

0% 15

FORTNIGHTLY

WEEKLY

85

Time 0 10 20 30 40 50 60 70 80 90

The retailers who replenish fortnightly are mostly users of wending machines where they replenish their stock fortnightly

10) What is the quantity you usually order?

The quantity is usually ordered with depending on the demand or the amount the retailers thinks he can sell. Usually the pan walas order 2 to 3 crates. But there were other retailers ordering more or less than the above specified quantity.

10) Are you satisfied with your replenishment you get?

Coke Very Satisfied Dissatisfied Pepsi Very Satisfied Dissatisfied

Satisfied

Neutral

Dissatisfied

Very

Satisfied

Neutral

Dissatisfied

Very
Page | 73

COKE

Table 8.8: Satisfaction level of Replenishment of coke

Satisfaction Level Very satisfied Satisfied Neutral Dissatisfied very dissatisfied

Replenishment of Coke 23 17 34 24 2

Table 8.9: Weighted average mean of replenishment satisfaction level

Satisfaction Level Very satisfied satisfied Neutral dissatisfied very dissatisfied

Replenishment of Coke 23 17 34 24 2
100

Rank 1 2 3 4 5

W.A 23 34 102 96 10 265

Weighted Mean 2.65

Fig 8.5 Graph of Satisfaction level of Replenishment of coke

Page | 74

Replenishment of Coke

very dissatisfied dissatisfied

24 34 Replenishment of Coke 17

Neutral satisfied Very satisfied 0 5 10 15 20

23 25 30 35

The retailers are not satisfied with the replenishment of Coke as retailers who mostly want to sell Thumbs-up or Sprite only are the ones who are unsatisfied with the replenishment of coke as 1 to 2 crates of Coke bottles are pushed along together with thumbs-up or Sprite for the retailers to sell.
PEPSI
Table 8.10: Satisfaction level of Replenishment of pepsi

Satisfaction Level Very satisfied satisfied Neutral dissatisfied very dissatisfied

Replenishment of Pepsi 12 37 34 17 0

Table 8.11: Weighted average mean of replenishment satisfaction level

Satisfaction Level

Replenishment of Pepsi

Rank

W.A

Page | 75

Very satisfied satisfied Neutral dissatisfied very dissatisfied

12 37 34 17 0
100

1 2 3 4 5

12 74 102 68 0 256

Weighted Mean 2.56

Fig 8.5 Graph of Satisfaction level of Replenishment of pepsi

Replenishment of Pepsi

very dissatisfied dissatisfied

0 17 34 Replenishment of Pepsi 37 12 0 5 10 15 20 25 30 35 40

Neutral satisfied Very satisfied

The Retailers of pepsi are more satisfied with the retailers of coke as there is no pushing incidence when it comes to pepsi. The market for Pepsi is 13% which is the second highest in the country after thumbs-up. They give with retailer whatever replenishment they need The retailers are more satisfied with the replenishment of Pepsi rather than coke because the people of Ahmedabad generally favour Thumbs-Up rather than coke and thus the preference of coke is low compared to thumbs-up so sometimes 1 to 2 cerates are sometimes pushed to the retailer to sell coke unlike Pepsi where it sells the products which the retailer desire.

11) What is the lead time?

Page | 76

The lead time is one day from the order given. If Order is given on Monday the product ordered arrives at the doorstep of the retailer on the very next day i.e. Tuesday

12) Are you satisfied with the lead time?

Coke Very Satisfied Dissatisfied Pepsi Very Satisfied Dissatisfied

Satisfied

Neutral

Dissatisfied

Very

Satisfied

Neutral

Dissatisfied

Very

Here the retailers are very satisfied with the lead time and have no negativity about it.

13) Any schemes or discounts in bulk buying?

Coke Pepsi

Yes Yes

No No

The company dose gives discounts or gifts in bulk buying. For example the company sometimes give an extra crate of coke depending on the amount of order. Sometimes it may not be in margins or crates of coke but in gifts like a handbag or wall clock or items to or associative needed by the shop 14) What are the payment conditions of the company?

Coke pay in advance Pepsi pay in advance

pays on arrival of the product pay on arrival of the product

pay to the salesman later pay to the salesman later

Page | 77

Here in both the companies the retailers have to pay check to the sales man on arrival of the product.

15) Are you satisfied with the payment conditions?

Coke Very Satisfied Dissatisfied Pepsi Very Satisfied Dissatisfied

Satisfied

Neutral

Dissatisfied

Very

Satisfied

Neutral

Dissatisfied

Very

Here the retailers of both the companies are extremely satisfied by the company norms of payment and dont have any negativities about it.

16) Are you satisfied with the margins given to you by the company?

Coke

Very Satisfied

Satisfied

Neutral Neutral

Dissatisfied Dissatisfied

Very Dissatisfied Very Dissatisfied

Pepsi Very SatisfiedSatisfied

COKE
Table 8.14: Satisfaction Level in Margin of Coke

Satisfaction level Very satisfied Satisfied Neutral Dissatisfied

Margin of Coke 0 17 49 28 Page | 78

very dissatisfied

Table 8.15: Weighted Average Mean of Satisfaction Level Coke

Satisfaction level Very satisfied satisfied Neutral dissatisfied very dissatisfied

Margin of Coke 0 17 49 28 6
100

Rank 1 2 3 4 5

W.A 0 34 147 112 30 323

Weighted Mean 3.23

Table 8.8: Graph Satisfaction Level in Coke

Margin of Coke Margin of Coke

very dissatisfied dissatisfied

6 28 49 17 0 0 10 20 30 40 50

Neutral satisfied Very satisfied

Page | 79

Here the retailers are more dissatisfied with the margin available of coke as they are given maximum Rs 1 to Rs 1.5 and in which they have to pay their own refrigeration electricity. The retailers always came up with the answer that that coke can give more margins to them.

PEPSI
Table 8.16: Satisfaction Level in Margin of Pepsi

Satisfaction level Very satisfied Satisfied Neutral Dissatisfied very dissatisfied

Margin of Pepsi 0 11 60 25 4

Table 8.17: Weighted Average Mean of Satisfaction Level Pepsi

Satisfaction level Very satisfied satisfied Neutral dissatisfied very dissatisfied

Margin of Pepsi 0 11 60 25 4
100

Rank 1 2 3 4 5

W.A 0 22 180 100 20 322

Weighted Mean 3.22

Figure 8.8: Graph Satisfaction Level in Pepsi

Page | 80

Margin of Pepsi Margin of Pepsi

very dissatisfied dissatisfied Neutral satisfied Very satisfied 0 0

4 25 60 11

10

20

30 %

40

50

60

Here also the retailers feel the same about Pepsi as they feel that they can receive more margins from the company. Here the retailers are more dissatisfied than satisfied.

17) According to you which factor plays a major role in achieving sales for Coke or Pepsi? (Rank 1-6)

Coke

Pepsi

Page | 81

Brand Name

Price

Availability

Loyalty

Quality

Packaging

(Here to solve the above question we used SPSS instead of Excel to solve the question)

Page | 82

COKE

Table 8.18: Ranked Brand Name Coke

Brand name Cumulative Frequency Valid 1.00 2.00 3.00 4.00 Total 34 19 35 12 100 Percent 34.0 19.0 35.0 12.0 100.0 Valid Percent 34.0 19.0 35.0 12.0 100.0 Percent 34.0 53.0 88.0 100.0

Figure 8.9: Graph Ranked brand name Of Coke

Page | 83

The brand name of coke is given a mean of 2.25 to coke stating it to be one of the important factors for the sales of coke it has given the least mean to the brand name.
Table 8.19: Ranked Price of Coke

Price Cumulative Frequency Valid 2.00 3.00 4.00 5.00 6.00 6 15 21 28 30 Percent 6.0 15.0 21.0 28.0 30.0 Valid Percent 6.0 15.0 21.0 28.0 30.0 Percent 6.0 21.0 42.0 70.0 100.0

Page | 84

Price Cumulative Frequency Valid 2.00 3.00 4.00 5.00 6.00 Total 6 15 21 28 30 100 Percent 6.0 15.0 21.0 28.0 30.0 100.0 Valid Percent 6.0 15.0 21.0 28.0 30.0 100.0 Percent 6.0 21.0 42.0 70.0 100.0

Figure 8.10: Graph Price of Coke

The retailers have ranked the price of the coke brand which is the second least a mean of 4.61 stating that price is not a major factor when it comes to bottled beverages of Coke.
Page | 85

People do not see the price of the product and buy it. They buy it usually out of thirst or taste of the product
Table 8.19: Ranked Availability Coke

Availability Cumulative Frequency Valid 1.00 2.00 3.00 4.00 5.00 Total 20 30 11 25 14 100 Percent 20.0 30.0 11.0 25.0 14.0 100.0 Valid Percent 20.0 30.0 11.0 25.0 14.0 100.0 Percent 20.0 50.0 61.0 86.0 100.0

Figure 8.11: Graph Ranked Availability of Coke

Page | 86

The Availability of coke is a third major contributor to the sales of coke since it is evident that retailers of coke are more than pepsi. So even though a person may be loyal to pepsi but if the availability of retailers of pepsi is less then he will surely sift to coke for the time being. Thus more number of retailers means more sales of coke.
Table 8.20: Ranked Loyalty Coke

Loyalty Cumulative Frequency Valid 1.00 2.00 3.00 4.00 6.00 Total 30 23 16 17 14 100 Percent 30.0 23.0 16.0 17.0 14.0 100.0 Valid Percent 30.0 23.0 16.0 17.0 14.0 100.0 Percent 30.0 53.0 69.0 86.0 100.0

Figure 8.12: Graph Ranked Loyalty of Coke

Page | 87

Loyalty is another factor contributing to the sales of coke as a lot of people are loyal to the thumbs-up brand and also the sprite and Limca brands of coke as there is a major fan following for some of the brands of coke in India it is able to hold a major part of the market share in India.
Table 8.21: Ranked Quality Coke

Quality Cumulative Frequency Valid 1.00 2.00 3.00 4.00 5.00 6.00 Total 16 22 23 11 22 6 100 Percent 16.0 22.0 23.0 11.0 22.0 6.0 100.0 Valid Percent 16.0 22.0 23.0 11.0 22.0 6.0 100.0 Percent 16.0 38.0 61.0 72.0 94.0 100.0

Page | 88

Figure 8.13: Graph Ranked Quality of Coke

Here quality is another important factor in the sales of coke after the pesticide issue and the later enrolment of brand Ambassador Amir Khan for coke the people have again jumped the Coke band wagon. The increasing sales of Coca- Cola are the presence of a legible and a strong brand ambassador and the great improvement in the quality of the products of Coca-cola. It could also be that the pesticide issue was a blessing in disguise of coca-cola.

Page | 89

Table 8.22: Ranked Packaging Coke

Packaging Cumulative Frequency Valid 4.00 5.00 6.00 Total 14 36 50 100 Percent 14.0 36.0 50.0 100.0 Valid Percent 14.0 36.0 50.0 100.0 Percent 14.0 50.0 100.0

Figure 8.14: Graph Ranked Packaging of Coke

Page | 90

Packaging is the least important when it comes to the sales of the bottled products as they do not effect sales at all. People are not induced by packaging at all they just buy the product for the taste brand name and loyalty towards the product

Page | 91

Over all you can see the least meaned attribute is Brand name loyalty and then quality which is a big factor that plays a role in the sales of coke. The retailers say that the packaging or the price dose not matter to the customers but they should get the product that they liked. And also coke is available almost everywhere it has got more retail chains compared to that of Pepsi The Shopkeepers also told the story of thumbs-up which is has the highest market share in the soft drinks market and coke has got success mainly due to thumbs-up and also mentioned that cokes advertisements are much better than compared to Pepsi.

PEPSI
Table 8.23: Ranked Brand Name Pepsi

Brand name Cumulative Frequency Valid 1.00 2.00 3.00 4.00 5.00 6.00 Total 26 21 27 17 5 4 100 Percent 26.0 21.0 27.0 17.0 5.0 4.0 100.0 Valid Percent 26.0 21.0 27.0 17.0 5.0 4.0 100.0 Percent 26.0 47.0 74.0 91.0 96.0 100.0

Page | 92

Figure 8.15: Graph Ranked Brand name of Pepsi

The brand name of Pepsi is given a mean of 2.66 stating it to be one of the important factors for the sales of the brand; it has given the least mean to the brand name. Compared to coke the brand rating for pepsi is less
Table 8.24: Ranked Price Pepsi

Price Cumulative Frequency Valid 1.00 2.00 3.00 4.00 5.00 6.00 11 17 11 20 10 31 Percent 11.0 17.0 11.0 20.0 10.0 31.0 Valid Percent 11.0 17.0 11.0 20.0 10.0 31.0 Percent 11.0 28.0 39.0 59.0 69.0 100.0

Page | 93

Price Cumulative Frequency Valid 1.00 2.00 3.00 4.00 5.00 6.00 Total 11 17 11 20 10 31 100 Percent 11.0 17.0 11.0 20.0 10.0 31.0 100.0 Valid Percent 11.0 17.0 11.0 20.0 10.0 31.0 100.0 Percent 11.0 28.0 39.0 59.0 69.0 100.0

Figure 8.16: Graph Ranked Price Pepsi

The retailers have ranked the price of the PepsiCo brand which is the second least a mean of 4.61 stating that price is not a major factor when it comes to bottled beverages of Coke. People do not see the price of the product and buy it. They buy it usually out of thirst or taste of the product Page | 94

Table 8.25: Ranked Availability Pepsi

Availability Cumulative Frequency Valid 2.00 3.00 4.00 5.00 6.00 Total 10 26 27 31 6 100 Percent 10.0 26.0 27.0 31.0 6.0 100.0 Valid Percent 10.0 26.0 27.0 31.0 6.0 100.0 Percent 10.0 36.0 63.0 94.0 100.0

Figure 8.17: Graph Ranked Availability Pepsi

Page | 95

The Availability rating of Pepsi is much less compared to coke the coke rating is 2.88 while the rating of PepsiCo is 3.97 which are much less compared Coke. Maybe the reasons for less market share is the less availability of pepsi compared to coke

Table 8.26: Ranked Loyalty Pepsi

Page | 96

Loyalty Cumulative Frequency Valid 1.00 2.00 3.00 4.00 5.00 6.00 Total 33 21 17 9 15 5 100 Percent 33.0 21.0 17.0 9.0 15.0 5.0 100.0 Valid Percent 33.0 21.0 17.0 9.0 15.0 5.0 100.0 Percent 33.0 54.0 71.0 80.0 95.0 100.0

Figure 8.18: Graph Ranked Loyalty Pepsi

Loyalty is a major factor for the sales of PepsiCo as the retailers suggest that many people like pepsi and stick to it and thats why the presence of pepsi is there in the Indian market there is a huge fan following of the mountain dew brand. The retailers have given a mean rank of loyalty 2.67 Page | 97

to pepsi which is more or less as same as the loyalty rating of coke sometimes bettering the loyalty of coke

Table 8.27: Ranked Quality Pepsi

Quality

Frequency Valid 1.00 2.00 3.00 4.00 5.00 6.00 Total 21 21 19 16 11 12 100

Percent 21.0 21.0 19.0 16.0 11.0 12.0 100.0

Valid Percent 21.0 21.0 19.0 16.0 11.0 12.0 100.0

Cumulative Percent 21.0 42.0 61.0 77.0 88.0 100.0

Page | 98

Figure 8.19: Graph Ranked Quality Pepsi

The quality of pepsi was never in doubt but here the quality rating of pepsi is given here more ranking compared to coke. The coke quality ranking was given less due to the pesticide issue. Here the mean rank is 3.11 given by the retailers to the brand Pepsi

Page | 99

Table 8.18: Ranked Packaging Pepsi

Packaging Cumulative Frequency Valid 1.00 2.00 4.00 5.00 6.00 Total 9 10 11 28 42 100 Percent 9.0 10.0 11.0 28.0 42.0 100.0 Valid Percent 9.0 10.0 11.0 28.0 42.0 100.0 Percent 9.0 19.0 30.0 58.0 100.0

Figure 8.9: Graph Ranked Packaging Pepsi

Page | 100

Packaging is the least important when it comes to the sales of the bottled products. The retailers have given a mean rank of 4.65 to the packaging of the product, as they do not affect sales at all. People are not induced by packaging at all they just buy the product for the taste brand name and loyalty towards the product

Over all you can see above that the brand name and loyalty being the lowest mean thus we can say that its due to mostly the loyalty that people have for Pepsi And the brand name are the main reasons for the sale of Pepsi brand. The retailers have given a 4 mean for availability stating that the availability of Pepsi is vey less compared to that of coke. This is much evident in the first question that about 72% retailers sell coke while only 25%sell the Pepsi brand. The Packaging has never mattered in the bottled sales of pepsi and coke and also the price. The Main Factors are Availability, Brand Name, Quality and the most important the retention of customers of either particular brands i.e. Loyalty

Page | 101

8.2 SWOT ANALYSIS

SWOT OF COKE

STRENGTH:

1. Coca-cola potential brands position in the market. 2. Good quality and innovation of product for long term customer relationship. 3. Good advertising campaign, and brand ambassador. 4. Advertisement campaign more effective and change of punch line make an Emotional touch with customer and retail. 5. High investment in research and development. 6. Coca-cola has a good market share. 7. Segment of coke product to every age group.

WEAKNESS:
1. Lack availability 1 it & 1.5 it product pack. 2. Lack supply of Kinley water in the market. 3. Retailers are unhappy with schemes at any time.

OPPORTUNITY:
1. Coke is able to grab large market share as the Indian consumer base is growing. 2. More monopoly counters of coke brand.
Page | 102

3. To improve market mix (product, price, promotion, place) 4. To increase the sale of Kinley.

THREATS:
1. Pepsi is the major competitors. 2. Pepsi has captured major market of 500ml, 1.5 & 2 it. 3. Retailers divert to Pepsi because they are getting good schemes and SGA signage.

SWOT OF PEPSI

STRENGTH:
1. Pepsi has a good brand image. 2. Good quality and innovation of product for long term customer relationship. 3. High investment in research and development. 4. Segment of Pepsi product to every age group.

WEAKNESS:
1. Lack of proper distribution in many areas. 2. Lack Of retailers in the market. 3. No of distributors enough to retailers.

Page | 103

OPPORTUNITY:
1. Pepsi has a growing market share and can capture new consumers as the Indian middle class is growing 2. To improve market mix (product, price, promotion, place) 3. To increase the no of retailers who sell the Pepsi brand 4. To capture the growing clout of mountain dew and to hold on to its new followers

THREATS:
1. Coke is the major competitor. 2. The Brand of Thumbs-up and Sprite have a major fan following in India which belongs to coke 3. Coke has higher retailers compared to Pepsi meaning increasing availability of coke

Page | 104

CHAPTER 9
FINDINGS AND RECOMMENDATIONS

Findings The Key Findings in the project are given below

The product availability is a major concern for Pepsi in Kurukshetra as there are few retailers of Pepsi compared to coke There are extremely low retailers selling both the brands as proper service is not given to those who are not exclusive outlets of the company. Recently the fast food outlet Red Rose stopped selling coke due to the companies and the food chain disagreements The retailers selling both brands are big restaurants or rich dairies who can afford to bear the electricity and the cost of their own fridge and sell both the products at the same time The margins given to the retailers are extremely less and the electricity that the fridges consume are also paid by the pockets of the retailers Major change in Cokes Distribution Process by Having their own exclusive Carrying and Forwarding Agents and slowly removing the middle man and directly servicing the retailers Special focus on thumbs-up and sprite by the company Pushing of the coke brand on to the retailers to sell along with Thumbs-up or sprite No credit period offered by the company and on the spot collection of check or cash by the salesman

Page | 105

The Matching policies of both the companies in terms of expiry refrigeration, service and damage of bottles.

Shift of the cola brands to fresh juices due to the growing market and users of fresh juice Sometimes coke promises freebees to the retailer in turn for the sale of coke bottles but it is not passed on to the retailers after promising them the same

Coke has about 59 processing units around the country and are planning to increase 12 more processing units while pepsi has only 42 processing units in the country

Intensive distribution in the rural chain as coke defeats pepsi like anything the use of local language by coke advertisements and the cost of a small bottle of coke comes down to Rs5 in the villages where the people of the village can afford it but pepsi is known less in the villages and dose not have a strong intensive rural distribution as compared to coke

Packaging and price do not matter to consumers as long as the quality and availability is there. And the brand name is the first and the foremost that is important in results of sales according to the retailers

Recommendations to Coke
Though coke has a strong distribution channel there are still some flaws in its channel and we would like to recommend them some changes which could benefit them in the future Remove the middle man completely and deal directly with the retailer Direct dealings will bring down cost and thus the retailer can be given more margins and the drink could also become cheaper for the consumer Not to push products which he doe not want to sell as it will decrease his satisfaction and may shift to rival brands To fulfil the promises given to the retailer as little gifts do matter

Recommendations to Pepsi
Page | 106

Pepsi has a relatively weaker distribution system than compared to Coke. But the retailers are absolutely satisfied with Pepsi in the sense that they not only fulfil all their promises but also no pushing of products or bullying is done to the retailers by them. Increase the number of retailers selling Pepsi hence the availability of the product increases Slowly but steadily remove the middle man and go for direct dealings with the retailer Better advertisements are required as adds play a major role in brand recall and brand imagery

Page | 107

Limitations of The Study

One of the biggest limitations with this project work is the time factor. As I did my project in Kurukshetra, which is not well known to me. So it become difficult to conduct survey in Kurukshetra.

The sample size of 100 respondents is too small to find out the consumer perception. Because I was covering Pepsi & Coke both. There might have been tendencies among the respondents to amplifying or filter their responses under the testing. In some cases, the respondent was not giving me the proper reply. He/she might think that this is only wastage of time or this might create some problem etc. And as a result he/she has given some fake answers and fills the questionnaire very casually. The area of study is limited and confined to certain limitation. It is possible that some potential source might have remained untapped. Since the result has been drawn on the basis of the information provided by the respondents therefore there is a chance of error. The questioners were in English so many people were avoiding to fill the questioners.

Page | 108

Conclusion

After the completion of this research I came to know that in Kurukshetra coke is the market leader with 54% market share. Pepsi is having only 46% market share. I come to know that Pepsi is the leading brand of Pepsi co. with 29% market share of its total market share and Thums up is the leading brand of coke with 28% market share of itself. Through this research I also come to know that young generation is the potential market for beverage industry, taste is the 1st preference to choosing the product.

Page | 109

Bibliography
1. Naresh Malhotra. (2009):Marketing Research an Applied Orientation, 5th Edition, prentice hall of India.

2. Phillip Kotler (2010): Marketing Management, 13th edition Pearson Education

3.http://economictimes.indiatimes.com/news/news-by-industry/consproducts/food/Fizzier-Pepsilooks-to-steal-Thums-Ups-thunder/articleshow/4302283.cms retrieved on 31st Jan 2010

4. http://www.pepsiindia.co.in/brands.aspx retrieved on 31st Jan 2011 5. http://www.pepsiindia.co.in/ retrieved on 31st Jan 2011 6. http://www.coca-colaindia.com/ retrieved on 31st Jan 2011

7. http://www.coca-colaindia.com/brands/brands_home.aspx retrieved on 31st Jan 2012 8. http://www.scribd.com/doc/19814374/Coke-vs-Pepsi retrieved on 23rd Feb. 2012

Page | 110

ANNEXTURE
Questionnaire
Retailers Name: ___________________________________________________________ Shop Name: _______________________________________________________________ Type of Retail: _____________________________________________________________ Area: ______________________________________________________________________ .

1) Which soft drinks company products do you sell?

Coke

Pepsi

Both

2) Does the soft drink company provide you with refrigeration facilities?

Coke Pepsi

Yes Yes

No No

3) Dose the company provide you with mechanics for the repair and maintenance of fridges?

Coke Pepsi

Yes Yes

No No

4) What are the conditions of bottles provided by the company?

Page | 111

Coke Pepsi

Excellent Excellent

Good Good

Neutral Neutral

Bad Bad

Worse Worse

5) If the bottles are broken in transit or in the shop due to natural causes or calamities then does the company bear the loss for you? Coke Pepsi Yes Yes No No

6) If the products have crossed their expiry dates then dose the company replace the products for you? Coke Pepsi Yes Yes No No

7) If yes then

Coke Pepsi

Replace at your own cost Replace at your own cost

Buy Back Buy Back

Replace products free of charge Replace products free of charge

8) When do you replenish your stock? Weekly Fortnightly Monthly Quarterly

9) What is the quantity you usually order?

10) Are you satisfied with your replenishment you get?

Coke

Very Satisfied Dissatisfied

Satisfied

Neutral

Dissatisfied

Very
Page | 112

Pepsi Very Satisfied Dissatisfied

Satisfied

Neutral

Dissatisfied

Very

11) Does the company give you products you require or they follow their own rules and regulations?

Coke Pepsi

Yes Yes

No No

12) Do you place order with the dealer or directly with the company?

Coke Pepsi

Dealer Dealer

Company Company

13) Does the products you order comes from the dealers godown or directly come from the company itself?

Coke Pepsi

Dealer Dealer

Company Company

14) How much time does it take to process an order? Coke Pepsi 0-2 0-2 2-4 2-4 4-6 4-6 more than 6 more than 6 (days) (days)

15) Any schemes or discounts in bulk buying?

Coke

Yes

No
Page | 113

Pepsi

Yes

No

16) Are you satisfied with the margins given to you by the company?

Coke

Very Satisfied Dissatisfied

Satisfied Satisfied

Neutral Neutral

Dissatisfied Dissatisfied

Very Very

Pepsi Very Satisfied Dissatisfied

17) Rank the company from 1 to 5 in the terms of the best margin giver? (1 is the lowest and 5 the highest)

1 Coke Pepsi

18) Which company are you more satisfied with?

Coke

Pepsi

None

19) Which products does the consumer prefers buying?

Coke

Pepsi

None

Page | 114

20) According to you which factor plays a major role in achieving sales for Coke or Pepsi? (Rank 1-7)

Coke

Pepsi

Brand Name

Price

Availability

Loyalty

Quality

Packaging

Page | 115